The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Modernization of Water Supply and Sanitation Services (P157043) LATIN AMERICA AND CARIBBEAN | Peru | Water Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 13 | ARCHIVED on 14-Sep-2023 | ISR57641 | Implementing Agencies: Republic of Peru, Technical Organization for the Administration of WSS Services (OTASS) Key Dates Key Project Dates Bank Approval Date: 26-Jul-2018 Effectiveness Date: 16-May-2019 Planned Mid Term Review Date: 28-Feb-2022 Actual Mid-Term Review Date: 24-Feb-2022 Original Closing Date: 31-Dec-2023 Revised Closing Date: 31-Aug-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Development Objective is to increase access to, and quality of, water and sanitation services in selected areas, and develop the Borrower’s sectoral institutions and participating EPS management capacity to provide efficient water and sanitation services. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving Governance of Water Supply and Sanitation Service Providers:(Cost $35.82 M) Improving and Expanding Water Supply and Sanitation Services in the Participating EPS:(Cost $151.52 M) General Project Administration:(Cost $12.66 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This ISR covers the January 2023 to August 2023 period, also conveying the main messages that have come forth from the Supervision Mission held between August 14-17: The IP rating will remain unchanged at moderately unsatisfactory due to the slow disbursements. The rating is expected to be upgraded once the following projects are awarded by the end of the 2023 calendar year (December 2023): three works contracts in Cusco, including the subprojects Margin Derecha del Rio Huatanay and Agua y Alcantarillado in the city of Cusco, as well as subprojects N-31 and N-39 in Arequipa. Overall, by the end of 2023, the program aims to commit 61% of the loan value (BIRF funds). The Project continues to be on track to achieve the PDO targets by the closing date. Among others, this is attributable to a strong technical team. The task team has observed improvements in program coordination, especially in Component 1. The formal appointment of focal points under each of the participating institutions (SUNASS, OTASS, MVCS) has been instrumental and is essential to ensure the effective implementation of the project up to its closure date in August 2025. Additionally, high-level meetings with the Vice MVCS, PROMOTASS, and the new focal point from 9/14/2023 Page 1 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) MVCS have been agreed upon every two months to monitor the progress of the activity plan. The mission agreed that in the event of changes in the focal points, replacements will be promptly designated to ensure continuity. The World Bank continues to actively support gender-related initiatives to complement activities under Component 1, integrating a gender-equity perspective in various consultancies. This includes establishing a gender quota in the Advanced Program in Water and Sanitation Management (PADAS), integrating gender equity into SUNASS's Customer Satisfaction Surveys, and promoting gender equality in the communication plans of the six participating EPSs, among other actions. The task team also organized a Human Resources Training Program in collaboration with the Global Water Unit's Equal Aqua platform to emphasize the importance of gender equity within utilities. The project framework incorporates a gender indicator, and in response to demand from utilities during the mission and training program, the task team is collaborating with the PIU to include Gender Equity technical assistance and training for Communication staff in the program's budget under Component 1. This is pivotal in achieving the project's gender indicator (Number of utilities (EPS) supported by the Project that use gender-sensitive messages in their sanitary education activities). The World Bank continues to provide technical assistance to promote the digital transformation of participating utilities. In collaboration with the Global Water team on Digital Transformation and the international firm IDRICA, SEDACUSCO has initiated the implementation of the Digital Maturity methodology. This approach involved conducting a diagnostic assessment and planning the path forward to enhance its digital transformation through the elaboration of a comprehensive Digital Transformation Strategy for SEDACUSCO. Similar digital maturity diagnostics are also underway with SEDAPAR and EPS Lima Norte. These activities are reinforcing ten consultancies under Component 1, which all include at least one element related to digitalization. In this context, a Digital Transformation event was organized during the mission, targeting Peru’s water sector. It featured international experts from the World Bank and Japan who shared insights on how utilities worldwide are strengthening their digital maturity, as well as presented the advancements being made in Peru through the WSS Modernization Program. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial Substantial Macroeconomic Low Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Low Low Institutional Capacity for Implementation and High Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Substantial Substantial Stakeholders High Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve access to water and sanitation services in selected areas IN01335561 9/14/2023 Page 2 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) ►People provided with access to improved water sources (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 65,586.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335569 Of which female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 32,859.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335572 ►People provided with access to improved sanitation services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 52,409.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335577 Of which female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 26,257.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 Increase quality of water services IN01335563 ►Number of participating EPSs that meet their water continuity goals (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 2.00 6.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335567 Continuity increased in SEDAPAR (Hours, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 23.13 23.30 23.25 23.27 IN01335571 Continuity increased in SEDACUSCO (Hours, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 20.01 19.80 19.24 21.37 9/14/2023 Page 3 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) IN01335575 Continuity increased in EMAPACOP (Hours, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 17.72 19.70 19.04 19.34 IN01335579 Continuity increased in EPS Barranca (Hours, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 15.68 21.50 20.55 19.99 IN01335582 Continuity increased in EMAPA Huaral (Hours, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 10.68 17.60 17.87 16.33 IN01335585 Continuity increased in EPS Aguas de Lima Norte (Hours, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 13.61 14.00 13.38 14.31 Increase the quality of sanitation services IN01335562 ►Number of participating EPSs that meet their sewer line blockages goals (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 6.00 6.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335568 Number of sewer line blockages reduced in SEDAPAR (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.87 1.95 2.41 IN01335570 Number of sewer line blockages reduced in SEDACUSCO (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.11 1.07 3.11 IN01335574 Number of sewer line blockages reduced in EMAPACOP (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.26 1.44 2.89 IN01335578 9/14/2023 Page 4 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Number of sewer line blockages reduced in EPS Barranca (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.05 0.61 2.51 IN01335581 Number of sewer line blockages reduced in EMAPA Huaral (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.08 4.35 8.71 IN01335584 Number of sewer line blockages reduced in EPS Aguas de Lima Norte (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.22 0.06 15.73 Develop the Borrower's sectoral institutions' management capacity to provide efficient WSS services IN01335564 ►Number of instruments validated that improve the management and governance capacity of SUNASS, PNSU, MVCS, and OTASS to increase WSS service efficiency (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 Develop the participating service providers' management capacity to provide efficient WSS services IN01335565 ►Nonrevenue water reduction achieved in selected utilities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 0.00 6.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335566 Nonrevenue water reduction achieved in SEDAPAR (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 34.13 30.00 31.70 27.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335573 Nonrevenue water reduction achieved in SEDACUSCO (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 37.81 42.00 43.11 32.00 9/14/2023 Page 5 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335576 Nonrevenue water reduction achieved in EMAPACOP (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 45.98 43.00 44.20 35.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335580 Nonrevenue water reduction achieved in SEMAPA Barranca (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 60.04 59.00 44.63 40.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335583 Nonrevenue water reduction achieved in EMAPA Huaral (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 38.60 32.00 35.30 32.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335586 Nonrevenue water reduction achieved in EPS Aguas de Lima Norte (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 34.02 35.00 34.81 29.00 Date 15-Feb-2018 30-Sep-2022 31-May-2023 29-Aug-2025 Intermediate Results Indicators by Components Improving Governance of Water Supply and Sanitation Service Providers IN01335590 ►Number of utilities (EPS) supported by the Project that use gender-sensitive messages in their sanitary education activities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335592 ►SUNASS: Information management system for coordination and regulation of sanitation service providers developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/14/2023 Page 6 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Value No No No Yes Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335594 ►MVCS: Number of policy management instruments (regulatory, administrative, and technical) developed for the WSS sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335596 ►PNSU: Number of processes, platforms and instruments to improve the management of WSS investment projects developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335598 ►OTASS: Norms developed for service providers’ comprehensive salary systems, performance evaluation systems, career development plans and incentive plans for voluntary retirement (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335600 ►Numbers of participating EPSs with updated optimized master plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335602 ►Number of participating EPSs with an Integrated Management System implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335604 ►Number of participating EPSs with commercial and technical cadasters migrated to GIS platform (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 9/14/2023 Page 7 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335605 ►Number of participating EPSs with a technical assistance plan adapted to improve their business management implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 Improving and Expanding Water Supply and Sanitation Services in the participating EPS IN01335587 ►New piped household water connections that are resulting from the Project intervention (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15,460.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335588 ►New household sewerage connections that are resulting from the Project intervention (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 13,460.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335589 ►Piped household water connections that are benefiting from rehabilitation works undertaken by the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 152.00 152.00 1,601.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335591 ►Household sewerage connections that are benefiting from rehabilitation works undertaken by the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 797.00 Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335593 ►Customer satisfaction increased in selected utilities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 6.00 9/14/2023 Page 8 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Date 13-Mar-2018 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335595 Customer satisfaction in SEDAPAR (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 68.00 62.00 62.00 85.00 Date 13-Mar-2018 30-Sep-2022 30-Sep-2022 29-Aug-2025 IN01335597 Customer satisfaction in SEDACUSCO (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 78.00 67.00 67.00 85.00 Date 13-Mar-2018 30-Sep-2022 30-Sep-2022 29-Aug-2025 IN01335599 Customer satisfaction in EMAPACOP (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 66.00 68.00 68.00 75.00 Date 13-Mar-2018 30-Sep-2022 30-Sep-2022 29-Aug-2025 IN01335601 Customer satisfaction in SEMAPA BARRANCA (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 64.00 75.00 75.00 75.00 Date 13-Mar-2018 30-Sep-2022 30-Sep-2022 29-Aug-2025 IN01335603 Customer satisfaction in EMAPA HUARAL (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 67.00 61.00 61.00 75.00 Date 13-Mar-2018 30-Sep-2022 30-Sep-2022 29-Aug-2025 IN01335606 Customer satisfaction in EPS Aguas de Lima Norte (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 61.00 76.00 76.00 75.00 Date 13-Mar-2018 30-Sep-2022 30-Sep-2022 29-Aug-2025 IN01335607 ►Kilometers of the new drinking water network built in the Project area (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/14/2023 Page 9 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Value 0.00 1.50 1.50 177.50 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335608 ►Increase in the volume of potable water storage in the Project area (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 13,750.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335609 ►Number of micrometers installed in the Project area (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15,460.00 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335610 ►Kilometers of new sewerage network built in the Project area (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 25.00 150.30 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335611 ►Kilometers of rehabilitated water network in the Project area (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.80 1.80 21.20 Date 31-Mar-2022 30-Sep-2022 31-May-2023 29-Aug-2025 IN01335612 ►Kilometers of sewerage network rehabilitated in the Project area (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.60 Date 31-Mar-2022 30-Sep-2022 31-May-2023 31-Mar-2022 IN01335613 ►Volume of treated wastewater (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 21,843,382.00 65,288,276.00 36,447,411.47 80,637,679.00 9/14/2023 Page 10 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Date 22-Jun-2022 30-Sep-2022 31-May-2023 29-Aug-2025 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P157043 IBRD-88990 Effective USD 70.00 70.00 0.00 12.79 57.21 18% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157043 IBRD-88990 Effective 26-Jul-2018 28-Jan-2019 16-May-2019 31-Dec-2023 31-Aug-2025 Cumulative Disbursements 9/14/2023 Page 11 of 12 The World Bank Implementation Status & Results Report Modernization of Water Supply and Sanitation Services (P157043) Restructuring History Level 2 Approved on 13-Jul-2022 Related Project(s) There are no related projects. 9/14/2023 Page 12 of 12