No, $-11011/5/2016-SEM Government of India Mistry of Drinking Water and Sanitation ‘Swachh Bharat Mission (Gramin) 12% Floor, Paryavaran Bhawan (CGO Comptes, Lodhi Read ‘New Dethi- 10.003 Dated 01082016 Secretary Seseary, in-charge of Rural Saitatca, Al States UTS Subject: - Guidelines for World Bank Support to Swachh Bharat Mission (Gram) — Introduction of Performance-based Incentive Grant Scheme ~ regarding. Madan Si ‘You are avate that the Government hes approved a project of World Bank Support to Swachh Bharat Mission (Granin), comprising. incetivisation of States on the basis of performance against outcomes of SBM (G). Accordingly, guidelines for “Performance-based Incentive gant scheme" have bee drawn wp and annexed wih this eter. 3. The Stte/UT Governments are requested to implement the Performance base Incentive Gant Scheme in eeordance with these guidelines. These guidlines be demand a pat of SBM (G) guidelines. Enel As above Yours thy, Sx, cone Under Secretary (SBM) Ph: - 011-2436 9654 Copy t:- 1) SBM (G) State condinato, all States 2) TD (NIC) for esting in website inversion wil fllow tb18 for World Bank Support to Swachh Bharat Mi iroduction of Pertormanc: jon (Gramin) ~ sed Incentive Grant Scheme, ‘Background ‘The Swachh Bharat Mission (Gramin) [SBM (G)] was launched on 2"! October 2014 as the new rural sanitation scheme, with a goal to achieve Swachh Bharat by 2"! October, 2019, ‘The Mission emphasizes behaviour change intervention; strengthening implementation and delivery mechanisms down tothe vilage level, and giving States flexibility to take into account local cultures, practices, sensibilities and {demands. The SBM (G) aso provides for incentivzation of States onthe basis of their, performance. Beskles outputs, outcomes are to be measured and rewarded, 2. An incentive framework was required to reorient the SBM (G) efforts towards achievement of desirable o.tputs and outcomes of SBM (G), such as reduction in open defecation, sustainable achievement of open defecation free (ODF) villages and improvement in solid and quid waste management (SLWN), Further, these outeomes have tobe reliably measured through an independent and crecible verification agency. There was also a need to further strengthen the implementation capacities in terms of inter alia strengthening of behaviour change communication, capacity building and programme management et. 3. In this background, Government of india has approved theproject of World Bank Support fo Swachh Bharat Mission’ (called "Projeot”hereatter for incentivsing States ‘on the basis of their perfomance in the ongoing SBM-G, The performance is to be ‘gauged through certain performance indicators, tobe called the Disbursement-Linked Indicators (DLs). 4. These guidelines explain in detail the Project design, the DLls and the incentive funding mechanism. Those guidelines will be par of the SBM(G) guidelines. Project design 5. The World Bank Suppot Project is to putin place a mechanism for incentiviing States on the basis of certain speciic outcomes of SBM (G) programme, to be measured through the CLis, as detailed belowln other words, ‘Performance. based incentive Grant Scheme’, as part of SBM (G), is proposed to be launched ‘through this Project. The jropased Project is, therefore, not a new scheme, but part of the existing SBM (G) and provides partfunding to SBM (G) as Extemally Aided Project (EAP) credit to support incentnsation of States. he World Bank Support is boeing provided through a performance-based funding using ‘Program for Results financing instrument 6. The total World Bank Project Support isto the tune of US $ 1500 milion (Rs. 9000 crore @ US § 1=Rs. 60), of which US $ 1475 milion (Rs 8860 crore) is for providing incentive grant to the States and US$. 25 millon (Rs 150 crore) is for providing programme management and capacity support Page Lot 67. The overall Project objective is to reduce open defecation in sural areas and to Strengthen capacty towards SUM (G) mplementalion.The specific objectives of he Project are: |. Reduced open cefecation in rural areas ii, Open defecation tree vilagos i, Improved sold and iquid waste management iv. Strengthened implementation capacity 8. The proposed duration of the Projects five years ie. fram April 2016 to April 2021 8. The Project wil cover rural areas of all the States/UTs, where SBM (G) programme is being implemented, Disbursement Linked Indicators (DLIs 10. The Project envisages introduction of certain Disbursement Linked Indicators (Die). 11. The three DLs, on the basis of which incentive grants willbe released to the States are as folows: i Reduction in the prevalence of open defecation: The funds under this result area shail be released to tie States on the basis of reduction in prevalence of open defecation amongst rural households inthe State, compared tothe previous year. This is a household level indicator. The prevalence of open defecation will be measured based on household level questions on access, usage and safely of toilets, G Sustaining ODF status in Villages: The funds under this result area, shall be released on the basis of estimated population residing in ODF villages in a given year. This wil include the vilages that alained the ODF status in previous years and have sustained the ODF status, ry Rural population served by SLWM: The funds under this OLI will be based ‘on the basis of population served wih acceptable level of SLM services, 412. The details of the DLis are given at Annexure 4 ‘National Annual Rural Sanitation Suvey (NARS) 13. There will be a Nationa Annual Rural Sanitation Survey conducted every year to measure the performanceo' the States/UTS in respect of the above three DLs. Each round of survey will have components Uial will generate Information on’ open defecation, sustaining OD= status, and on sold and liquid waste management (SLN), This will be a thie-party sample survey cartied out by the MDWS, through fan Independent Verification Agency (IVA),as per the guidelines of the Ministry of Statistics &Programme implementation (MoSPI} dated 31.10.2011, regarding conduct of statistical surveys, 14, The first NARS will prevde baseline values forthe DLs Page 2016Incentive grant 415. The incentive grant to the States will be in addition tothe funds released to States for the Annual Implementation Plans (AIP) and wil bein the form of 100% grant from the Cente tothe States, 46. The Goverment of India will roleaso the incentive amount to the States for the fist year on tha basis of baseline results, From the second year onwards, the funds will be released to the Siales on the basis of progress against the three DLIs ‘mentioned in para 11 above. 417. The States/UTs will pass on a substantial portion (more than 95 percent) of the Performance Incentive Grant Funds received from the MDWNS, to the appropriate implementing levels of districts, Blocks, GPs etc. itis important that the States/UTS. pass on the incentives to the right level of implementation to provide incentive for ‘sustaining behaviour change at the village level. Since, DLI2 incentvises sustainabiliy ff ODF status atthe vilago level, the States/UTS will ensure that the incentive grant received against his DLI reaches the respective vilages and are spent in accordance with the decision atthe village level, 18, The States will hve flxbilly to utlise incentive funds for activities pertaining to ‘sanitation sector, such as making the vilages open defecation-ree through individual household latrines, communiy sanitary complexes, schooVanganwadi toilets, rural ‘sanitary merts and IECloapacity building/tiggering, proving water for sanitation, ‘sold and liquid waste management actives including collection, segregation and safe disposal of household gartage, decentralised systems lke household composting and biogas plants, safe disposal of menstrual waste, low cost drainage, soak pits ete. “The incentive grant cannolbe used as corresponding Stale share for SBM (G) or SBM (Urban) or any other Centtally Sponsored Scheme. ‘Accountabilly for spending Incentive grant 10. The Project will be covered by the audit requirements (CAG auelt and audit by ‘empanelied Chartered Accountant of the CAG) as provided under the SBM (G) scheme, The revised formats for audit will be provided to the States by the MDWS. 20. The States will mainiain details of the projects/activties. undertaken at the Stateldistric/blaci/vilage vel out of Incentive grants and catty that these grants are Utiised only for activiles permissiblefsuggested as per these guidelines, The: projects/actvities undertaken will aso be captured in the Inlograted Management Information System af SBM (G). Page 3016Annexure 1 Disbursom: cod Indicators (DLs The World Bank Suppert Project entails certain Disbursement Linked Indicators (OLIs). These are mean! to trigger disbursement of incentive grants from the World Bank to the Ministry of Dinking Water and Sanitation (MDWS) and from the MDWS to the States, 2. As far as disbursemen: from the MDWS to the States is concerned, there are three Dus, |. DLI 1; Reduction inthe prevalence of open defecation ¥. DLI2: Sustaining Open Defecation Free (ODF) status in Vilages 'w. DLS: Percentage of rural population served by SLWM 3. For disbursement from the Wold Bank to the MDWS, however, in adklition to these three DLs, there is a fourth DLI called ‘Operationaization of the Performance Based Incentive Grant Scheme. 4. The three DLs to trigger disbursement of incentive grants tothe States are detailed below. DLL: Reduction in the prevalence of epen defecation ©. The funds under this OLI shall be released to the States on the basis of reduction In prevalence of open defecation amongst rural households in the Stale, compared {9 {the previous year. The open defecation will be measured based on household level questions on access, usage and safety of tots, 6. The National Annual Rural Sanitation Survey will report on this prevalence based fon a household level questionnaire. A household willbe considered as practic open ‘defecation uniess all the members of that household use the tole 100% of the tos, 7. The States will be divided into two calegories for he purpose of incentvisation. The: States which register a reduction of 0-3 percent in OD prevalence will be incentivised @Rs. 360 per capita reduction. For States reporting more than 3 percent reduction in OD prevalence, an incentive of Rs, 540 per capita reduction willbe provided. DLL2: Sustaining ODF status in Villages Page ao8. The funds under ths result area, shall be released on the basis of estimated Population reiting in ODE (open deleoation fee) vilayes 8. The assessment of ODF willbe based on the definition of ODF provided by the MOWS, which is as follows: “ODF fs the tommation of faecatoral transmission, defined by 9} no visible faeces found inthe environmenthillage; and P) every housohold as well as publizcommunly instiutions using safe tochnology ‘option for disposal of faeces (Ti: Sate technology option means no contamination of surface soil, ground water or Surface water; excrota inaccossible to fhe or animals; no handlog of fresh excreta, ‘and freedom from odour and unsightly condition)” £0. The incentive amourt will be calcuated on the basis of rural population residing in ODF vilages in the States, multiplied by Rs. 240 per capi DLS: Percentage of rural population served by SLM ‘11, Based on the National Annual Rural Sanitation Survey, for each State/UT, tho Population served with acceptable level of SLWM services. shall be estimated and rowarded. {2. The incentive amount will be calculated on the basis of rural population residing in vilages with acceptable level of SLWM, multiplied by Rs. 30 per capita, 413, The above mentioxed three DLis have a fived per capita amount, The clsbursement will however, be dependent on actual performanceachioved as shown by the National Annual Rural Sanitation survey. DLL 4: Operationalzation ofthe Performance Incentive Grant Scheme 14. The baseline data pertaining to the above mentioned throe Dis will be captured Uwough the first National Annual Rural Sanitation Survey. In order to tigger clsbursement from the World Bank tothe MDW in the fist year, there vl be a fourth LI 4, which wil be operationalzation of the ‘Performance-based Incentive Grant Scheme’. This will be applicable only forthe fist year to set in motion those actions that make the incentive scheme possible and credible. Page sof 6Abbreviations MWS Ministry of Drinking Water and Sanitation same) ‘wach Bharat Mission (Gramin) 05a NNN | Oooh Dciconr ras Solid Liquid Waste Management ‘National Annual Rural Sanitation Survey | Disbursement Linked indicator ~ {Independent Verification Agency | Page 6016