REPORT NO.: RES57259 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SECOND WATER SECTOR INSTITUTIONAL DEVELOPMENT PROJECT APPROVED ON MARCH 10, 2017 TO REPUBLIC OF ANGOLA Water Global Practice Eastern and Southern Africa Region Regional Vice President: Victoria Kwakwa Country Director: Albert G. Zeufack Regional Director: Iian Shuker Practice Manager: Soma Ghosh Moulik Task Team Leaders: Marco Antonio Aguero, Berta Adelaide Da Silva Macheve The World Bank Second Water Sector Institutional Development Project (P151224) ABBREVIATIONS AND ACRONYMS AF Additional Financing AFD Agence Française de Développement (French Development Agency) AKZ Angolan Kwanza CND Centro Nacional de Desminagem (National Demining Center) DNA Direção Nacional de Águas (National Directorate for Water) EIB European Investment Bank EPAL Empresa Publica de Água de Luanda (Luanda Water Utility) FM Financial Management GoA Government of Angola IBRD International Bank for Reconstruction and Development (World Bank) INRH Instituto Nacional de Recursos Hídricos (National Institute for Water Resources) IRSEA Instituto Regulador dos Serviços de Electricidade e Água e Saneamento de Águas Residuais (National Regulator for Electricity, Water Supply and Sanitation) PAD Project Appraisal Document PAP Project-Affected Person PDO Project Development Objective PPP Public-Private Partnership PWSU Provincial Water and Sanitation Utilities TA Technical Assistance TdC Tribunal de Contas (Court of Audits) WSIDP2 Second Water Sector Institutional Development Project 2 The World Bank Second Water Sector Institutional Development Project (P151224) BASIC DATA Product Information Project ID Financing Instrument P151224 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 10-Mar-2017 31-Dec-2025 Organizations Borrower Responsible Agency Republic of Angola Project Development Objective (PDO) Original PDO The Project Development Objective is to strengthen the institutional capacity of selected water sector agencies and increase water service coverage in target cities. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed COFN-C1560 21-Jun-2018 14-Sep-2018 14-Sep-2018 31-Dec-2025 150.00 54.82 98.15 IBRD-88760 21-Jun-2018 19-Jul-2018 12-Oct-2018 31-Dec-2025 150.00 58.48 91.52 IBRD-87020 10-Mar-2017 14-Jul-2017 17-May-2018 31-Dec-2025 200.00 78.67 121.33 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No 3 The World Bank Second Water Sector Institutional Development Project (P151224) 4 The World Bank Second Water Sector Institutional Development Project (P151224) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Original and Restructured Project Objectives and Design 1. The Second Water Sector Institutional Development Project ([WSIDP2], P151224), supported by an IBRD loan in the amount of US$200 million, was approved on March 10, 2017, signed on July 14, 2017, and became effective on May 17, 2018. Original closing date - prior the first extension - was March 31, 2024, and the current closing date - after the first 22 month extension - is December 31, 2025. The total agreed project financing design was US$600 million, including counterpart funding of US$100 million and bilateral co-financing from the Agence Française de Développement (AFD) of US$150 million. To cover for the counterpart funding of almost US$100 million, the Government of Angola (GoA) pursued parallel financing with the European Investment Bank (EIB), with the objective of covering the financing gap by the end of the second year of the project. It was understood that, if the financing gap were not filled, the project would be restructured, and the activities realigned. 2. The Project Development Objective (PDO) is to strengthen the institutional capacity of selected water sector agencies and increase water service coverage in target cities. The selected water sector agencies include: nine Provincial Water and Sanitation Utilities (PWSUs), the Luanda Water Utility (Empresa Publica de Água de Luanda [EPAL]), the National Institute for Water Resources (Instituto Nacional de Recursos Hidricos [INRH]), the National Regulator for Electricity, Water Supply and Sanitation (Instituto Regulador dos Serviços de Electricidade e Água e Saneamento de Águas Residuais [IRSEA]), and the National Directorate for Water (Direcção Nacional de Águas [DNA]) under the Ministry of Energy and Water (MINEA). 3. The original project included four components: a) Water Supply Institutional Strengthening and Capacity Development; b) Water Resources Management; c) Rehabilitation and Expansion of Water Supply Production and Distribution; and d) Management and Engineering Support. The first component provides for technical assistance (TA) and operational support to the PWSUs; capacity building and development of new instruments and systems for IRSEA; and a study to understand the scope for possible PPPs in the sector. The second component supports INRH capacity building, expansion of the Borrower’s hydro- meteorological monitoring network, INRH’s development of river basin plans, and a national dam safety plan. The third component funds the rehabilitation and expansion of water supply production and distribution facilities in the nine targeted provincial capitals. And the fourth component provides support for project management, technical oversight, financial management (FM), monitoring and evaluation, environmental and social oversight, as well as the carrying out of engineering studies and the updating of the Sanitation Master Plans for the nine targeted cities. 4. An additional financing (AF) was approved on June 21, 2018, in the amount of US$150 million, and became effective on October 12, 2018. As part of the AF, US$55 million was committed to a new Component 5: Piloting Small- Scale Sanitation Service Delivery in Peri-Urban Areas. There were no changes to the PDO or original closing date. At that time, it was still expected that the US$100 million financing gap identified in the original parent project would be filled by financing being prepared by the GoA and the EIB. To date the financial gap was not filled and no counterpart resources have been allocated. B. Performance of the Parent Project and AF 5. WSIDP2 became effective on May 17, 2018. The effectiveness deadline was extended three times due to GoA delays in processing the required counterpart contribution of AKZ 250 million (US$1.5 million), meeting the AFD effectiveness conditions and the associated cross-effectiveness condition under the IBRD loan.1 It took the GoA over 14 months to meet the effectiveness conditions, resulting in a significant delay in the Project’s initial implementation phase. 6. In addition to this initial delay, the implementation of the project has been slower than expected, with disbursements lagging expectations. To date, with over 90 percent of the project’s financing committed through contracts 1After effectiveness, the fall in global oil prices resulted in serious downgrading of the GoA’s fiscal situation, and the request to the World Bank to replace the allocated counterpart contribution with additional financing from IBRD. 5 The World Bank Second Water Sector Institutional Development Project (P151224) already procured, the GoA has requested the extension of the closing date2 to allow these contracts already procured and signed, to be fully implemented, thereby fully delivering the expected benefits to the target populations and enabling the achievement of the development objectives. 7. Disbursement and Implementation Status: While the disbursement ratio is currently 36 percent,3commitments are high, at 91 percent of the IBRD loan and AFD amounts. This consists of over US$454 million in procured and committed contracts, with US$45 million remaining, to be utilized to cover operational costs, among other planned activities. From now to June 2024, the project expects to disburse an additional US$70 million, resulting in an overall disbursement ratio of approximately 53 percent. 8. Overall Project Management is rated Satisfactory, with Progress towards achieving the PDO and Overall Implementation Progress rated as Moderately Satisfactory. Procurement, Financial Management and Safeguards are rated Moderately Satisfactory, Component 1 (Water Supply Institutional Strengthening and Capacity Development) is rated Satisfactory, Componente 2 (Water Resource Management) rated Moderately Unsatisfactory, and all other components rated Moderately Satisfactory. There are no outstanding audits. 9. The Project has achieved significant benefits across all components. Under Component 1, PWUSs advance in their professionalization process through technical assistance (TA) contracts that operates under results-based management mechanisms for the 6 targeted PWSUs. Under the water resources management in Component 2, the INRH is being strengthened through technical and training support. Recent changes in INRH authorities have slowed down the implementation of water resources management plans in prioritized basins; however, the PIU and the new appointed Director are working closely together, and procurements are now well advanced. Complementing the support to PWSUSs, through the Component 3, the Project develops key infrastructure in 6 beneficiary provincial cities to increase the production and distribution of water supply in peri-urban areas. To date, utilities are experiencing improvements in services and revenues. As a result, more than 250 thousand households have been connected to water supply services. In relation to sanitation, under the component 5, all targeted utilities have prepared Sanitation Urban Master Plans, and the Project has started piloting sanitation infrastructure in 2 cities using a city-wide inclusive sanitation approach. 10. The most significant implementation delays currently are due to (i) the outstanding payment of compensation to project-affected persons (PAPs), as the original project design did not include compensation for PAPs4, the GoA has been unable to pay compensation due to the deterioration of the national fiscal situation; (ii) delays in the demining in project areas (which is a vital but externally managed process), is slowing down the implementation of related investments contracts in 2 major cities5 and iii) the change in the country’s review process for public contracts procedure, now requiring all public contracts with values over 0.8 million, to be cleared by the Court of Audits (Tribunal de Contas -TdC), resulting in most contracts subject now to TdC’s prior review. Additional factors, include the delays resulting in constraints with respect to the convertibility of the local currency that became an issue just after effectiveness, with the introduction of new foreign exchange regulations and the COVID-19 pandemic resulting sometimes in serious delays in the 2 The extension will allow for the full implementation of at least 10 contracts already procured, between works and technical assistances to utilities, Basin Water Plans and groundwater assessment etc. that have a direct impact in the PDO and the results framework. Furthermore, it will secure activities to allow the launch of the PPP in Cabinda and an additional technical assistance to support the Bita Guarantee process. 3 As of ISR 14, dated July 16, 2023, total disbursements were US$111.89 million, with a remaining commitment of US$238.11 million. 4 This lack of funds for compensation is affecting implementation of two key construction contracts – Contract 14W3, for the water supply system in the city of N’Dalatando, and Contract 74W3, for the water supply system in the city of Uige. As per the Government’s request through the Ministry of Energy and Water (MINEA) notification # 1062 received in June 2023, and after internal assessments, the present restructuring includes the allocation of US$500,000 into the relevant category to cover necessary resettlement expenses. Allocating this amount, which represents 0.1 percent of the total budget for the Project, puts neither the implementation of current and planned activities nor the achievement of the PDO at risk. 5 Two cities affected: N’dalatando, where contracts for new bulk water supply and for the expansion of water treatment are delayed, and Uíge, were contracts for bulk water supply and for network expansion. 6 The World Bank Second Water Sector Institutional Development Project (P151224) implementation of subprojects due to travel and entry restrictions that lasted through 2021, preventing the physical presence of foreign consultants, contractors and supervisors. 11. Recognizing the past delays, including COVID-19 restrictions, the closing date was extended in February 2022 from March 31, 2024, to December 31, 2025. Based on the findings of a recent implementation support mission that concluded on November, 2023, a further extension of the closing date is needed. 12. Progress toward Achievement of the PDO: The lates ISR rates progress toward achievement of the PDO as Moderately Satisfactory. Despite the delays, the PDO remains achievable, and the task team recognizes the significant progress on implementation. 13. The selected PDO and intermediate indicators are consistent with implementation progress: while institutional strengthening has made significant progress, the delays in core activities intended to benefit the target populations, as a results of the lengthy processing times within the TdC, are reflected in moderate achievement in, for example: (i) water supply network (468 km out of a target of 1,675 km) and (ii) increased water treatment capacity (3,000 m3 out of a target of 48,000 m3). 14. The following key steps constitute the Action Plan agreed with the PMU to ensure project objectives and disbursements are met by closing date: N Agreed Action Monitoring Process Timeline & Expected Results Project’s Performance and Disbursements 1 Follow up on all US$ 450 million in Monthly updates of the By June 2024: minimum contracts under implementation and Integrated Framework disbursement Target for conclude the remaining procurement and for portfolio monitoring IBRD FY 23 is US$ 70 M clearances from the TdC to ensure the in Angola reports, as per revised targets in the Project’s results guidelines agreed By October 2027: All framework are met and the PDO is between Country infrastructure works achieved before the closing date. This Management Unit (CMU) completed. includes monitoring the disbursements and and PIUs. taking proactive action liaising with the World Bank and AFD to have all designated accounts continuously replenished and timely payments made to contractors. Monitoring of Contracts in the ‘Tribunal de Contas’ (TdC) 2 Streamline the certified translation process Progress report on By April 2024: all for the remaining approved contract packages as part of the packages will have packages to be submitted to the TdC. weekly meetings undergone a certified between TTLs and PIU. translation to Portuguese and been officially submitted to the TdC. 3 The TdC appoints a focal point to Monthly meetings By July 2024: all queries streamline procurement processes and between World Bank from TdC clarified to discussion related to the contracts to be Procurement, TTLs, TdC proceed with review and held with the World Bank Project and PIU to clarify commencement procurement specialist. procedures and authorization. inconsistencies in the contract’s packages. 7 The World Bank Second Water Sector Institutional Development Project (P151224) 4 Work closely with the TdC and the World Monthly report on the By October 2024: all Bank fiduciary team to continue monitoring status of the contracts remaining contracts the review and approval of the pending under review by TdC. under review by TdC contracts. with commencement authorized. 5 Initiate the commencement of works on the Progress report as part of By December 2024: all ground, including supervision. the weekly meetings remaining contracts with between TTLs and PIU. works are under implementation, including supervision. Safeguards Resettlement Policy 6 In close coordination with the World Bank Progress updates as part By June 2024: Payment Safeguards team, update the project’s of the PIU’s quarterly of affected people in the resettlement policy and action plan, and semi-annual reports city of Ndalatando, establishing a clear mechanism to expedite on Safeguards. enabling infrastructure the compensation of PAPs. All works in works to proceed. affected areas will remain on hold until Progress report as part of compensation is completed in accordance the weekly meetings By April 2024: with World Bank standards between TTLs and PIU Resettlement Policy and and field visits to confirm Action Plan updated. PAP payments and progress of works. Coordination with other Partners 7 Continue to coordinate closely with the Semestral meetings with In coordination with EIB technical counterparts of the EIB project to EIB’s PIU and a brief task managers, ensure that interventions in the cities of summary of progress, implement field visits Moxico, Namibe, and Lunda-Norte consider reported in the WB regularly to the cities of the lessons learned from WSIPD 1 and 2 to Supervision Mission Aide Moxico, Namibe, and help reach the targets regarding access to Memoires. Lunda-Norte. water supply services. 8 The World Bank Second Water Sector Institutional Development Project (P151224) C. Rationale for proposed restructuring and extension 15. The project, including the associated AF, was approved with a financing gap of US$100 million, with the assumption that US$100 million equivalent loan would be negotiated between the GoA and the EIB and incorporated into WSIDP2. While the government was successful in negotiating the EIB loan, the funding was not incorporated into the WSIDP2 due to differences in fiduciary, environmental and social requirements that could not be reconciled. As a result, three WSIDP2 cities – Moxico, Namibe, and Lunda-Norte – are receiving independent support from the EIB financing and have been removed from WSIDP2 investment planning. While it has been recognized that these three cities would not be supported under the project, EIB is working closely to complement actions on the ground, considering the lessons learned in WSIDP1 and 2. The proposed restructuring formally recognizes the removal of the interventions in the three cities from the project scope and is reflected in the restructured PDO targets and Intermediate Results Indicators. 16. Reallocations between categories are also required as per GoA request, to ensure that enough resources are allocated to those categories that are financing key activities such as infrastructure works and technical assistance to utilities, besides the extension of project management activities to allow adequate supervision until the project’s closure. 17. Furthermore, the GoA has requested to include the payment of compensation to PAPs, which is a constraint to project implementation and which the GoA is no longer able to fund. Management approval of Bank financing to be used for cash compensation of Project affected persons was received on March 6, 2024. 18. The extension will allow for additional strategic activities for the Project and the WSS sector in Angola to be fully implemented, including: a) the launching of the Public-Private Partnership (PPP) in water supply in Cabinda (an affermage PPP model) – considered as the first water PPP in Angola - where the remaining funds of WSIDP2 will be allocated to ensure the implementation of the first phase of the PPP, which corresponds to the hiring of the Management Contract to be led by a private company and b) support to Luanda’s Water Utility (EPAL) through technical assistance to increase the utilities capacity to manage and operate the water supply investments financed by the GoA with support from the BITA Guarantee. II. DESCRIPTION OF PROPOSED CHANGES 9 The World Bank Second Water Sector Institutional Development Project (P151224) 19. A 24-month extension of the closing date from December 31, 2025 to December 31, 2027 is proposed. The GoA requested a 12-month extension of the closing date, from December 31, 2025, to December 31, 2026, in a letter to the World Bank dated October 16, 2023. However, following the implementation support mission on November 2023, it was determined that a longer extension would be necessary to ensure full project implementation and completion of contracts. 20. Extension of Closing Date. This is the second extension of the closing date for the parent operation for a cumulative extension period of 46 months. The extension is needed to allow ongoing infrastructure contracts - key to achieving the PDO - to be concluded as well as implementing strategic activities for the water sector in Angola including the launching of the PPP in water supply in Cabinda and the TA to Luanda’s Water Utility (EPAL) to increase the utilities capacity to manage and operate the water supply investments under the Bita project. Furthermore, the extension will enable the conclusion of infrastructure works in two cities – N’dalatando and Uíge, where contracts for bulk water supply and for network expansion were delayed due to the conclusion of demining process. 21. Changes to Component Funding and Reallocation of Proceeds. To date, with over 90 percent of the project’s budget committed through contracts already procured, the GoA has requested the extension of the closing date to allow these contracts already procured and signed to be fully implemented. Furthermore, the GoA has requested changes to the component funding allocation and to associated results indicators. The following table summarizes the original (incorporating the AF) and the proposed component financing and change in disbursement allocations. Table 1: Original and Proposed Component Funding Allocations US$ million Original (plus AF) Proposed Component Comments Allocation Allocation 1. Water Supply Institutional Increase due to extension of Strengthening and Capacity 74.0 91.9 two institutional strengthening Development contracts. 2. Water Resources Reducing the scope of several Management 35.2 12.5 activities (neither of which put the PDO at risk) 3. Rehabilitation and Reduction of target cities from Expansion of Water Supply nine to six; Include World Bank 324.0 259.8 Production funding of compensation to PAPs. 4. Management and Allow supervision until new 62.3 64.6 Engineering Support closing date 5. Piloting Small-Scale Reduction of scope, including Sanitation Service Delivery in 55.0 35.2 the reduction of planned Peri-Urban Areas outputs. Contingencies and Fees Necessary funds have been adjusted to ensure contingency, 49.5 36 particularly for component 3 to mitigate price escalation. Total 600.0 500.0 22. The Loan Agreements under the Project will be amended by adding Compensation Costs in Component 3 as well under Category of Expenses (5) “Goods, Works, consulting services, Compensation Costs and Operating Costs”. Moreover, 10 The World Bank Second Water Sector Institutional Development Project (P151224) categories of expenses related to infrastructure, particularly for component 3 will be increased to allow financing of new activities in the Provinces of Cabinda, among others. 23. Revision of Results Framework. a. At the PDO level indicators, a reduction in the number of PWSUs supported by the project moving from nine to six utilities. The three cities removed will be supported through other donor led interventions6. b. As the related activities for Component 5 were originally designed as a pilot approach, the proposed restructuring includes the revision of the intermediate indicator limiting the scope to the design of the Sanitation Master Plans and pilot investments in targeted cities. c. Since the Ministry of Water and Energy has been strongly advocating for an inclusive approach through the WSIPD2 Young Professional Program (YPP), enabling and encouraging sector institutions and utilities to bring YPs to join and train their staff, the PIU and task team agreed these efforts should be recognized as a key result of the project. An intermediate indicator is being proposed to reflect the results of the YP Program. 6The cities of Moxico, Namibe and Lunda Norte are being dropped from the scope. The remaining cities to be supported by the project are: Lubango, Malanje, N’Dalatando, Huambo, Cuito and Uige. 11 The World Bank Second Water Sector Institutional Development Project (P151224) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) 12 The World Bank Second Water Sector Institutional Development Project (P151224) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Water Supply Institutional Water Supply Institutional Strengthening and Capacity 74.00 Strengthening and Capacity 74.00 Development Development Water Resource Management 35.20 Water Resource Management 35.20 Rehabilitation and Expansion of Rehabilitation and Expansion Water Supply Production and 373.50 of Water Supply Production 373.50 Distribution and Distribution Management and Engineering Management and Engineering 62.30 62.30 Support Support Piloting Small-Scale Sanitation Piloting Small-Scale Sanitation Service Delivery in Peri-Urban 55.00 Service Delivery in Peri-Urban 55.00 Areas Areas TOTAL 600.00 600.00 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications COFN-C1560 Effective 31-Mar-2024 31-Dec-2025 31-Dec-2027 30-Apr-2028 IBRD-87020 Effective 31-Mar-2024 31-Dec-2025 31-Dec-2027 30-Apr-2028 IBRD-88760 Effective 31-Mar-2024 31-Dec-2025 31-Dec-2027 30-Apr-2028 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed COFN-C1560-001 | Currency: EUR iLap Category Sequence No: 1 Current Expenditure Category: Gds,NCS,CS,OC,Trg P1(a) 13 The World Bank Second Water Sector Institutional Development Project (P151224) 11,736,365.28 6,910,909.25 21,567,182.06 30.00 30.00 iLap Category Sequence No: 10 Current Expenditure Category: Gds,CS,OC,Trg 15,533,728.96 100,431.09 9,942,179.00 30.00 30.00 iLap Category Sequence No: 11 Current Expenditure Category: DISB - OTHER 352,740.00 0.00 352,740.00 30.00 30.00 iLap Category Sequence No: 2 Current Expenditure Category: Gds, NCS, CS, OC, Tr P1(b)(c) 5,397,392.32 1,564,444.83 3,394,185.92 30.00 30.00 iLap Category Sequence No: 3 Current Expenditure Category: Gds,CS,OC,TrP2(a)(b)(c)(e)(f) 7,531,704.48 963,751.65 2,830,510.11 30.00 30.00 iLap Category Sequence No: 4 Current Expenditure Category: Gds,Wks,CS,OC,Tr P2(d) 1,254,813.76 0.00 705,480.00 30.00 30.00 iLap Category Sequence No: 5 Current Expenditure Category: Gds,Wks,CS, Cash Compensation and OC P3 82,217,579.84 26,689,555.41 83,454,887.06 30.00 30.00 iLap Category Sequence No: 6 Current Expenditure Category: Gds,CS(Aud),Tr, OC P4 15,690,815.84 6,304,822.43 17,891,358.39 30.00 30.00 iLap Category Sequence No: 7 Current Expenditure Category: Performance Payment 1,380,859.52 0.00 957,477.46 30.00 30.00 iLap Category Sequence No: 9 Current Expenditure Category: Interest Rate Cap 0.00 0.00 0.00 0.00 0.00 Total 141,096,000.00 42,533,914.66 141,096,000.00 14 The World Bank Second Water Sector Institutional Development Project (P151224) IBRD-87020-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: Gds, NCS, OC, Tr P1(a) 16,636,000.00 11,309,477.80 30,571,000.00 40.00 40.00 iLap Category Sequence No: 10 Current Expenditure Category: GD, WK, NCS, CS, OC, TR PART 5 22,018,000.00 270,006.45 14,093,000.00 40.00 40.00 iLap Category Sequence No: 2 Current Expenditure Category: Gds, NCS, CS, OC, Tr P1(b)(c) 7,651,000.00 2,666,605.52 4,811,000.00 40.00 40.00 iLap Category Sequence No: 3 Current Expenditure Category: Gds,CS,OC,TrP2(a)(b)(c)(e)(f) 10,676,000.00 1,399,345.53 4,012,000.00 40.00 40.00 iLap Category Sequence No: 4 Current Expenditure Category: Gds,Wks,CS,OC,Tr P2(d) 1,779,000.00 0.00 1,000,000.00 40.00 40.00 iLap Category Sequence No: 5 Current Expenditure Category: Gds,Wks,CS, Cash Compensations and OC P3 116,542,000.00 44,084,685.51 118,295,000.00 40.00 40.00 iLap Category Sequence No: 6 Current Expenditure Category: Gds,CS(Aud),Tr, OC P4 22,241,000.00 10,254,242.11 25,361,000.00 40.00 40.00 iLap Category Sequence No: 7 Current Expenditure Category: Performance Payment 1,957,000.00 0.00 1,357,000.00 40.00 40.00 iLap Category Sequence No: 9 Current Expenditure Category: Interest Rate Cap 0.00 0.00 0.00 0.00 0.00 15 The World Bank Second Water Sector Institutional Development Project (P151224) iLap Category Sequence No: FEF Current Expenditure Category: FRONT END FEE 500,000.00 500,000.00 500,000.00 Total 200,000,000.00 70,484,362.92 200,000,000.00 IBRD-88760-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: Gds,NCS,CS,OC,Trg P1(a) 12,477,000.00 8,216,329.81 22,928,000.00 30.00 30.00 iLap Category Sequence No: 10 Current Expenditure Category: GD, WK, NCS, CS, OC, TR PART 5 16,514,000.00 203,040.34 10,570,000.00 30.00 30.00 iLap Category Sequence No: 2 Current Expenditure Category: Gds, NCS, CS, OC, Tr P1(b)(c) 5,738,000.00 2,000,137.89 3,608,000.00 30.00 30.00 iLap Category Sequence No: 3 Current Expenditure Category: Gds,CS,OC,TrP2(a)(b)(c)(e)(f) 8,007,000.00 1,050,431.49 3,009,000.00 30.00 30.00 iLap Category Sequence No: 4 Current Expenditure Category: Gds,Wks,CS,OC,Tr P2(d) 1,334,000.00 140,690.31 750,000.00 30.00 30.00 iLap Category Sequence No: 5 Current Expenditure Category: Gds,Wks,CS,Cash Compensation and OC P3 87,406,000.00 31,385,062.42 88,721,000.00 30.00 30.00 iLap Category Sequence No: 6 Current Expenditure Category: Gds,CS(Aud),Tr, OC P4 16,681,000.00 7,559,265.53 19,021,000.00 30.00 30.00 iLap Category Sequence No: 7 Current Expenditure Category: Performance Payment 16 The World Bank Second Water Sector Institutional Development Project (P151224) 1,468,000.00 0.00 1,018,000.00 30.00 30.00 iLap Category Sequence No: 9 Current Expenditure Category: Interest Rate Cap 0.00 0.00 0.00 0.00 0.00 iLap Category Sequence No: FEF Current Expenditure Category: FRONT END FEE 375,000.00 375,000.00 375,000.00 Total 150,000,000.00 50,929,957.79 150,000,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 0.00 0.00 2018 0.00 0.00 2019 20,290,000.00 0.00 2020 14,870,000.00 0.00 2021 21,000,000.00 0.00 2022 139,000,000.00 0.00 2023 154,840,000.00 0.00 . 17 The World Bank Second Water Sector Institutional Development Project (P151224) . Results framework COUNTRY: Angola Second Water Sector Institutional Development Project Project Development Objectives(s) The Project Development Objective is to strengthen the institutional capacity of selected water sector agencies and increase water service coverage in target cities. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Strengthen the institutional capacity of selected water sector agencies Percentage of hydrometric stations supported by the project, 0.00 0.00 50.00 50.00 60.00 70.00 80.00 80.00 providing information to INRH (Percentage) Action: This indicator has been Revised Number of PWSU with independent financial statements documenting 0.00 2.00 4.00 4.00 4.00 4.00 4.00 6.00 financial performance (Number) Action: This indicator has been Revised 18 The World Bank Second Water Sector Institutional Development Project (P151224) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Regulatory framework for water and sanitation No No No No No Yes Yes Yes services in place (Yes/No) Action: This indicator has been Revised Increase water service coverage in target cities Number of people in urban areas provided with access to Improved 0.00 0.00 0.00 150,000.00 410,000.00 690,000.00 734,000.00 734,000.00 Water Supply under the project (Direct project beneficiaries) (Number) Action: This indicator has been Revised Female beneficiaries 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 (Percentage) Number of people in urban areas provided with access to Improved 0.00 0.00 0.00 150,000.00 410,000.00 690,000.00 951,150.00 951,150.00 Water Sources under the project (Number) Rationale: Action: This indicator has After carefully assessing the original project design, including the result's framework, the client and Task Team identified redundancy in this indicator with the been Marked for "direct beneficiaries" one. It was agree to remove it. Deletion PDO Table SPACE 19 The World Bank Second Water Sector Institutional Development Project (P151224) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Water Supply Institutional Strengthening and Capacity Development Average audited cost- recovery ratio for 2 0.00 0.00 20.00 35.00 50.00 70.00 80.00 80.00 PWSUs to be supported by WSDIP II (Percentage) Action: This indicator has Rationale: been Marked for The client decided to remove 2 targeted utilities as these utilities are being supported by other multilateral financiers. Deletion Average audited cost- recovery ratio for the 5 0.00 40.00 60.00 80.00 80.00 80.00 80.00 80.00 PWSUs supported by WSDIP I (Percentage) Average audited cost- recovery ratio for 6 0.00 0.00 0.00 10.00 35.00 50.00 70.00 70.00 PWSUs to be supported by WSDIP II (Percentage) Action: This indicator has been Revised Number of water utilities that the project is 0.00 0.00 2.00 8.00 8.00 8.00 8.00 8.00 supporting (Number) Rationale: Action: This indicator has 2 utilities are being removed as they are supported through other projects/financiers. been Revised In total the Project is supporting 8 utilities - 6 with infrastructure and TA 20 The World Bank Second Water Sector Institutional Development Project (P151224) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 - EPAL - Luanda with TA and logistics - Cabinda through the preparation of the affermage Systems to receive and respond to customer 0.00 0.00 0.00 2.00 4.00 6.00 6.00 6.00 complaints at the PWSU level in place (Number) Action: This indicator has been Revised Percentage of registered grievances related to 0.00 0.00 0.00 30.00 50.00 60.00 60.00 60.00 service delivery that are resolved (Percentage) Action: This indicator has been Revised Millions of people provided with water, sanitation, and hygiene, 0.00 0.73 of which (%) is safely managed (Number) Rationale: This indicator is being added to respond the the WBs Corporate Indicators retrofitting exercise carried out in March 2024. Action: This indicator is The final number under this indicator will take into account the PDO indicator regarding beneficiaries with access to safe water supply sources and the indicator New under component 5 regarding beneficiaries with sanitation and hygiene services. 21 The World Bank Second Water Sector Institutional Development Project (P151224) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Millions of people provided with water 0.00 0.73 of which (%) is safely managed (Number) Rationale: Action: This indicator This indicator was introduced to respond to the Corporate Indicator Retrofitting exercise. is New 1 PPP - Affermage for Cabinda's utility transaction completed 0.00 1.00 and ready to launch (Number) Rationale: Action: This indicator is The aim is to support the government to have the transaction ready to be launched. However the final commitment to finance partially the PPP from the public New side corresponds to MINFIN and MINEA Management and Engineering Support Percentage of network expansion contracts that carry out information and 0.00 0.00 100.00 100.00 100.00 100.00 100.00 100.00 consultation sessions (Percentage) Action: This indicator has been Revised Percentage of network expansion contracts that 0.00 0.00 100.00 100.00 100.00 100.00 100.00 100.00 carry out information and 22 The World Bank Second Water Sector Institutional Development Project (P151224) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 consultation sessions specifically for women (Percentage) Action: This indicator has been Revised At least number of young professionals hired and trained (learn by doing) 0.00 20.00 within different sector agencies (Number) Rationale: Action: This indicator is Significant efforts to ensure the success fo this program which is unique and innovative. It deserves more visibility. New Number of utilities benefitted from the Project registered and 0.00 8.00 uploading information to the New IBNET on a yearly basis (Number) Rationale: All benefited utilities will register and share their performance data in the NewIBNET platform www.newibnet.org, on a yearly basis, including KPIs and Action: This indicator is Management Practices. This data, is aligned to the data points requested under the National WSS system (SISAS), specifically the module overseen by the New National Regulator. There is total complementarity between SISAS and NewIBNET. The NewIBNET is implemented in Angola as a mean to monitor the impact of the Project in the utilities supported by the same project. It is not to be considered to replace the role of SISAS or any other country system. Water Resource Management 23 The World Bank Second Water Sector Institutional Development Project (P151224) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Integrated River Basin Management Plans 0.00 0.00 0.00 0.00 0.00 1.00 1.00 supported by the Project (Number) Action: This indicator has been Revised Assessment of the safety status of prioritized dam 0.00 0.00 0.00 2.00 4.00 6.00 6.00 6.00 carried out by a panel of experts (Number) Action: This indicator has been Revised Number of studies carried out to confirm the availability of water 0.00 0.00 1.00 1.00 1.00 2.00 2.00 2.00 resources with adequate quality (Number) Action: This indicator has been Revised Rehabilitation and Expansion of Water Supply Production and Distribution New piped household water connections that are resulting from the 0.00 0.00 0.00 30,000.00 80,000.00 135,000.00 144,000.00 144,000.00 project intervention (Number) Action: This indicator has been Revised 24 The World Bank Second Water Sector Institutional Development Project (P151224) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Length of water supply network laid under the 0.00 0.00 200.00 500.00 900.00 1,300.00 1,440.00 1,440.00 project (Kilometers) Action: This indicator has been Revised Increased capacity of water treatment 0.00 0.00 0.00 6,000.00 6,000.00 30,000.00 30,000.00 30,000.00 (production) (Cubic Meter(m3)) Rationale: Action: This indicator has Well fields in Huila were not developed due to the financing gap (100 M) been Revised Piloting Small-Scale Sanitation Service Delivery in Peri-Urban Areas Approval of guidelines for participatory urban sanitation master No No No Yes Yes Yes Yes Yes planning with a CWIS approach (Yes/No) Rationale: Action: This indicator has CWIS: City Wide Iinclusive Sanitation Approach been Revised Number of sanitation master plans updated 0.00 0.00 3.00 7.00 7.00 7.00 7.00 7.00 using a CWIS approach (Number) 25 The World Bank Second Water Sector Institutional Development Project (P151224) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Rationale: Action: This indicator has The total number of master plan supported by the project are 7, originally were 9, additional provinces were removed as they are already being supported by been Revised other project/financiers. At least Number of people provided with safely managed 0.00 0.00 0.00 0.00 0.00 0.00 5,000.00 5,000.00 sanitation and hygiene services delivery under the project (Number) Rationale: As this is a pilot, the project's objective is to test the approach that will serve to inform future projects/programs. The total number of beneficiaries is very modest Action: This indicator has as this is not the primary intention for now. This indicator will add to the Corporate Indicator been Revised Development of a national strategy for No No No No No No Yes Yes urban sanitation using a CWIS approach (Yes/No) Action: This indicator has been Revised IO Table SPACE 26 The World Bank Second Water Sector Institutional Development Project (P151224)