TERM PAPER

OF

PROJECT MANAGEMENT

SUBMITTED TO: SUBMITTED

BY:
M.S ASHIMA KALIA ISHAN
BHANOT
(L.H.S.B.) R.NO- 37
TOPIC:- U.P Water Sector Restructuring
Project.

ABOUT : UP Water Sector

Restructuring Project.
Uttar Pradesh is situated in northern part of India having a
Population of 166 Million when area of 241 Th. Sq. Kms. which makes
it one of the highest density ranking state. This state though having the
most fertile Indo-Gangetic plains and rivers like Ganga, Yamuna,
Ghaghra, Gomti, Betwa, Ken, Rapti etc. which caters major surface
irrigation even then the increasing population keeps it in tug of war for
filling the demand and supply gaps. The major source of income for its
population is mainly agriculture. The main crops grown are rice, wheat,
maize, pearl-millet, sorghum, pulses and oil seeds, but due to smaller
average land holdings the production is not upto the mark as well as the
mechanization of agriculture is also affected. Sugarcane and potato are
the main cash crops. There are number of sugar mills situated in the state
and utilizing most of the sugarcane grown for manufacturer of sugar and
other by-products. Sarda Sahayak System of Ghaghara- Gomati basin is
a major surface irrigation project. A pilot project as U.P. Water Sector
Restructuring Project is being implemented in Sai-Gomati sub-basin of
Ghaghara-Gomati basin covering five districts namely Barabanki,
Raebareli, Sultanpur, Pratapgarh and Jaunpur.UP Water Sector
Restructuring Project (UPWSRP) is being implemented with following
objectives:

• To set up an enabling institutional and policy framework for water

sector reform in the State for integrated water resources
management to implement the provisions of State Water Policy.

• To initiate irrigation and drainage sub-sector reforms in the State to

increase and sustain water and agricultural productivity.

The project is to be implemented in four phases spanning from 12

to 15 years and is estimated to cost about 1300 m US$ (Approx Rs. 6000
crore). The project is to be implemented in Ghagra-Gomti Basin
covering about 3600 Th.Ha. of irrigated command area of Sarda
Sahayak Projects.

PRE REQUISITES OF THE PROJECT

The Pre requisites of U.P water sector restructing project provides a
statement of how and when a project's objectives are to be achieved, by
showing the major products, milestones, activities and resources
required on the project. It is used as a baseline against which to monitor
project progress and cost stage by stage. It provides the business case
with planned project costs and it identifies the management stages and
other major control points. In construction projects the Project Execution
Plan is equivalent to the project initiation document plus the updated
Project Plan.
Fitness for purpose checklist:

• Is the plan achievable?

• Does it support the rest of the Project Initiation Document?

The project plan contain the following:

• Plan description, giving a brief description of what the plan covers

• Project prerequisites, containing any fundamental aspects that must
be in place at the start of the project and any that must remain in
place for the project to succeed.
• External dependencies, identifying the products that must be
provided to the project so that it can continue but which the Project
Management Team has no authority over and so cannot ensure
delivery fits the project requirements.
• Planning assumptions concerning availability of resources,
skills/competency requirements etc.
• Project level Gantt chart or bar chart with identified management
stages, e.g. milestones and control points.
• Project level product breakdown structure.
• Product descriptions, defining what the project will deliver
including the required quality level.
• Project level activity network and product dependencies.
• Project level table of resource requirement.
• Requested/assigned specific resources.
 • Project change budget (if appropriate).
• Project level tolerance, for both time and budget as triggers for
contingency plans and escalation processes.
• Contingency plans, explaining how it is intended to deal with the
consequences of any risks that materialize.
 Refference:-
http://www.ogc.gov.uk/documentation_and_templates_project_pla
n_.asp

FINANCIAL ANALYSIS
The purpose of the financial analysis is to assess the
financial viability of the proposed project, i.e., if the proposed project is
financially attractive or not from the entity’s viewpoint. This analysis is
done for the chosen least cost alternative which is identified following:-

• In the financial analysis, the unit of analysis is the U.P WATER

RESTRUCTING PROJECT and not the entire economy nor the
entire water utility. Therefore, a focus on the additional financial
benefits and costs to the water utility, attributable to the project, is
maintained.
• In contrast, the economic benefit-cost analysis evaluates the
project from the viewpoint of the entire economy whereas the
financial analysis evaluates the entire water utility by
providing projected balance, income, and sources and applications
of fund analysis.

The financial analysis includes the following eight Steps:-

• Determine annual project revenues.

• Determine project costs.
• Calculate annual project net benefits.
 • Determine the appropriate discount rate (i.e., weighted average
cost of capital serving as proxy for the financial opportunity cost
of capital)
• Calculate the average incremental financial cost.
• Calculate the financial net present value.
• Calculate the financial internal rate of return
• Risk and sensitivity analysis.
• Original authorized budget
• New budget authorizations (giving justification for changes)

(Each section on budgets and expenditure should address the original

base estimates and risk allowances for each element)

• Commitments
• Agreed variations (giving justification for variations)
• potential/expected claims or disputes awaiting resolution (if the
project is going well, this area should be small)
• Commitments required to complete
• Orders yet to be placed
• Variations pending
• Future changes anticipated.

Each of the following cost elements should be covered:

• in-house costs and expenses (including all central support services,

administration, overheads etc)
• consultancy fees and expenses (design, feasibility, client advice,
legal, construction management, site supervision etc)
• Operating costs
• Disposal costs
• Insurance costs
• All other costs relating to the project not listed above.
• All prices need to be discounted to a common base.
 Refference:-
 http://www.dgmarket.com/tenders/SearchResult.do~feasibility-study-
79314000~in~~

MARKET ANALYSIS.
The “effective market” analysis for water is the quantity of water
demanded of a given quality at a specified price. The analysis of market
for water, including realistically forecasting future levels of demand, is
an important and critical step in the economic analysis of water supply
projects. The results of demand analysis will enable the project team to:-

• Determine the size and timing of investments;

• Estimate the financial and economic benefits of the project; and
Assess the ability and willingness to pay of the project beneficiaries
It is useful to note the difference between “effective demand” for water
and “actual consumption” of water. Water consumption is the actual
quantity of water consumed whereas effective demand relates that
quantity to the price of water. For example, a low level of water
consumption may not represent effective demand but may instead
indicate a constraint in the existing supply of water
• The demand for water is rising rapidly, resulting in water becoming
increasingly scarce. At the same time, the unit cost of water is
increasing, as water utilities shift to water sources farther away from
the demand centers. Water from more distant sources may also be of
lower quality. The costs of transporting water from the source to the
consumer and that of water treatment necessary to meet potable
water standards are becoming significant components of the unit cost
of water.

 Market analysis can be done easily by using the formula:-

Percentage change in quantity of water demanded
Ei = ---------------------------------------------------------------------
Percentage change in price per unit of water
 TECHNICAL ANALYSIS

• Technical Analysis is done to make shure that whether the Water

.
sector restructuring project is technically feasible or not
• To ensure optimum formulation of project in terms of technology.
• To ensure whether the technology utilizes local raw material or not.
• To make shure that whether the technology utilizes local man power
• To ensure that whether the technology protects the ecological
balance or not.
• To ensure that whether the technology is harmonious with the social
and cultural conditions or not .
• Manufacturing process/technology
• Technical arrangements
• Material and inputs
• Plant capacity
• Location & site
• Machinery and equipment’s
• Structure and civil works
• Environmental aspects
• Project chart & layout
• Project implementation schedule
• Need for considering alternatives

Referrence:-
http://www.scribd.com/doc/17090326/Concepts-and-Technical-
Steps-for-water-Restructuring

SOCIAL COST BENEFIT ANALYSIS.

This Social Assessment (SOA) identified stakeholders, likely to share
the development benefits of the Uttar Pradesh Water Sector
Restructuring Project, to understand the social dimensions as these
become affected by the impact of irrigated agriculture issues, and, of
course as these impact the livelihoods of local people. Based on a
household survey, village profile, and group discussions focused on
farmers' needs, an extensive quantitative, and qualitative data supports
the analysis for this SOA. The areas of critical influence in the
assessment include operational problems in irrigation systems,
conducive to poor water delivery, and drainage problems resulting in
water logging, i.e., giving rise to problems in public health, and crop
production, as a result of increased soil salinity. Additionally, the high
groundwater costs affects farmers' profitability, which in turn creates
bottlenecks in marketing their agricultural produce, while access to
credit remains a critical issue in their ability to invest. Although the SOA
stipulates no separate tribal development strategy is required, nor are
there any negative, social impacts expected from the project, a sector
policy on resettlement, and land acquisition issues, has been prepared.
Participatory planning with water users is recommended, to be based on
improved technology, and diversified agriculture, by mapping surface,
and groundwater resources; analyzing water logged areas; and, planning
with irrigation engineers the canal water irrigation schedules on the basis
of water availability, and flood situation. Resources management, and
allocation of responsibilities based on cost sharing is strongly
emphasized.
 Refference:-http://web.worldbank.org/external/projects/main?
pagePK=104231&piPK=73230&theSitePK=40941&menuPK=228
424&Projectid=P050647
 CHALLENGES AND

OPPORTUNITES.
The Uttar Pradesh Water Sector Restructuring Project will seek to

develop an integrated, water resources planning and management, and,

improve the institutional and physical arrangements for irrigated

agriculture. The project's key environmental issues, and mitigation

measures address institutional, irrigation reforms/reform options, and

preparation levels as follows. Environmental capacity building for

river basin planning, and regulation will be developed, along with

significant environmental knowledge-base, and analytical capacity at

the State level, particularly for the Ghaghra-Gomti basin . Data

sharing, and institutional mechanisms will be built for inter-agency

coordination, and, a strategic basin environmental, and social

assessment will be conducted. Environmental awareness will be

promoted through multi-media events. Training, expertise, and

partnerships development will be supported to strengthen the Uttar

Pradesh Irrigation Department, to mainstream environmental issues,

and build environmental knowledge for integration in the spatial

Decision Support Systems, to be developed. A decentralized approach

to basin irrigation, and drainage networks will be established, and,

environmental capacity building at the Janpur/Imamganj sub-basin

will be conducted. Environmental reform options will be piloted, to

improve land and water management, integrated pest management, and

nutrient management. Performance indicators will be established to

evaluate environmental management practices.

 Refference:-http://web.worldbank.org/external/projects/main?
pagePK=104231&piPK=73230&theSitePK=40941&menuPK=228
424&Projectid=P050647

REASON FOR SUCCESS AND

FAILURE:-

 Factors found in successful projects are:

• User Involvement
• Executive Management Support

• Clear Statement of Requirements

• Proper Planning

• Realistic Expectations

 Factors found in failed projects are:

• Incomplete Requirements

• Lack of user involvement

• Lack of Resources

• Unrealistic Expectations

• .Lace of Executive Support

• Changing Requirements & Specifications

• Lack of Planning

• Didn’t Need it Any Longer

• Lack of IT management

• Technical Illiteracy

 Refference:-

http://www.umsl.edu/~sauterv/analysis/6840_f03_papers/frese/