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K.V. Kurmanath

While the State Government is expected to chip in $40 million for the project, the beneficiaries will contribute $10 million.

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Hyderabad Jan. 28 The International Bank for Reconstruction and Development has proposed to give a loan of $435 million for reforming irrigation service delivery and management in Nagarjuna Sagar Scheme.

The loan will signal a long-term thorough reform of water sector in Andhra Pradesh. "The proposed project (which is pegged at $485 million) is expected to be the first operation of a long-term (12-18 years) engagement and partnership with Andhra Pradesh on water sector reform," a World Bank proposal said.

Institutional Restructuring

Besides funding the Nagarjuna Sagar Scheme, the Andhra Pradesh Water Sector Improvement Project would also support water sector institutional restructuring and capacity building activities. The project would include pilots on user-centric aquifer level ground water management and water efficient technologies.

While the State Government is expected to chip in $40 million for the project, the beneficiaries would contribute $10 million. "It aims to initiate some fundamental and bold sector reform initiatives, which could potentially have a substantial impact on the approach to water sector management in the State," the proposal said.

It is the Nagarjuna Sagar Scheme that would get a major portion (91.5 per cent) of the total funds, the proposal said. This comprises six major components that envisaged active participation of water users associations in modernisation of the irrigation system. The project is aimed at strengthening and building capacities of these associations at all levels of the Nagarjuna Sagar Scheme system. Implementation of improved water management practices — such as benchmarking, administration of water entitlements and bulk supply of water to users — is one of the components of the project.

Regulatory Framework

The other important component, which would cost $24.5 million, is water sector restructuring and capacity building.

This component envisages strengthening of Water and Land Management Training Institute and establishment of an integrated computerised information system. About $7.3 million would be spent on establishment of a State-level project preparation and management unit.

More Stories on : Financial Institutions | Water | Andhra Pradesh

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