Policy

World Bank approves $250 million for dam safety project in India

The World Bank has approved a $250 million project designed to improve the safety and performance of existing dams across various states of India.

The Second Dam Rehabilitation and Improvement Project (DRIP-2), described as the world’s largest dam management programme, is expected to strengthen dam safety by building dam safety guidelines as well as bring in global experience and newer technologies.

A major innovation envisaged under the project is the introduction of a risk-based approach to dam asset management that will help to effectively allocate financial resources towards dam safety needs.

The project will be implemented in about 120 dams across Chhattisgarh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Odisha, Rajasthan and Tamil Nadu and at the national level through the Central Water Commission (CWC). Other states or agencies may also be added to the project during project implementation.

India is home to over 5000 large dams with a storage capacity of more than 300 billion cubic meters. Rainfall, which occurs mainly in intense and unpredictable downpours within short monsoon seasons, is of high temporal and spatial variability and does not meet year-round irrigation and other water demands. Considering this, storage of water in dams is essential for the country’s economic growth and for the millions of people who rely on their waters to sustain livelihoods. With average annual cost of floods in India estimated at $7.4 billion, many dams are critical in mitigating floods. Their failure could pose serious risks to downstream communities.

“This is the world’s largest dam management programme. Its objective is to break the costly cycle of ‘build-neglect-rebuild’ which characterizes the operations and maintenance of infrastructure across sectors,” said World Bank Country Director in India Junaid Ahmad.

“The expected outcomes will be game-changing: sustaining the livelihoods and food security of millions of Indians who depend on irrigated agriculture and enabling farmers to shift out of pumping groundwater, thereby, reducing energy consumption and greenhouse gas emissions. This program can act as a lighthouse for other countries tackling the challenge of managing hydraulic infrastructure:, said Ahmad.

India has been implementing the World Bank-supported DRIP-1 ($279 million) and has received additional financing to the tune of $62 million. This project has improved the safety and sustainable performance of 223 dams in six states of India and one central agency.

“The ongoing DRIP-1 project is helping to set-up institutions, build capacity, and put in place procedures for dam safety. To build on these achievements, further measures are needed to channel scarce funds towards the dams at highest risk,” said Chabungbam Rajagopal Singh, Senior Water Resources Management Specialist and Halla Maher Qaddumi, Senior Water Economist and the task team leaders for DRIP-2. “The project will introduce risk-informed dam safety management, establish sustainable mechanisms for financing dam safety, and enhance the capabilities of institutions to manage dam assets.”

Other important measures that DRIP-2 will support include flood forecasting systems and integrated reservoir operations that will contribute to building climate resilience; the preparation and implementation of Emergency Action Plans to enable vulnerable downstream communities to prepare for and enhance resilience against the possible negative impacts and risks of climate change; and the piloting of supplemental revenue generation schemes such as floating solar panels.

The $250 million loan from the International Bank for Reconstruction and Development (IBRD), has a maturity of 13 years, including a grace period of six years.

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