The World Bank MA-Rural Water Supply (P145529) REPORT NO.: RES54048 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MA-RURAL WATER SUPPLY APPROVED ON APRIL 29, 2014 TO OFFICE NATIONAL DE L'ELECTRICITE ET DE L'EAU POTABLE (ONEE) WATER MIDDLE EAST AND NORTH AFRICA Regional Vice President: Ferid Belhaj Country Director: Jesko S. Hentschel Regional Director: Paul Noumba Um Practice Manager/Manager: Michael Haney Task Team Leader(s): Carolina Dominguez Torres The World Bank MA-Rural Water Supply (P145529) I. BASIC DATA Product Information Project ID Financing Instrument P145529 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 29-Apr-2014 31-Dec-2022 Organizations Borrower Responsible Agency Office National de l'Electricite et de l'Eau Potable (ONEE) Office National de l'Electricité et de l'Eau Potable (ONEE) Project Development Objective (PDO) Original PDO The project development objective (PDO) is to provide access to safe and reliable drinking water supply for rural communities in targeted underserved areas in the Project area. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83970 29-Apr-2014 27-May-2014 18-Dec-2014 31-Dec-2022 158.62 129.88 6.94 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank MA-Rural Water Supply (P145529) As per the latest ISR No. 17, the Project is satisfactory in its key ratings, namely: Progress towards achievement of PDO, Overall Implementation Progress (IP), Component 1: Extension of access to water supply through standpipes in selected provinces within the Project area, Component 2: Supporting the shift towards water service delivery through house connections in the Project area, and Component 3: Implementation Support and Capacity Building. The Project has advanced satisfactorily to meet its Project development objective (PDO). As of the end of November 2022, 91% of the project beneficiaries' target has been achieved, with a total of 1,000,980 beneficiaries (or 91 percent of the PDO target). The sustainability of the investments made by the Project continued to be at the core of implementation, as demonstrated by the designation of standpipe operators (gardant gerant) in 1,991 of the standpoints built by the Project. The designation of the standpipe operator is key for the sustainability of the constructed standpipes as it allows for recovering water fees for operation and maintenance. Progress toward other PDO indicators (beneficiaries of standpipes constructed under the Project, beneficiaries of new household connections installed under the Project, and beneficiaries of water production enhancements made under the Project) is also substantial, with more than 86% of the project target achieved. Overall implementation progress is satisfactory, despite some delays experienced in Component 1. The completion of most of the remaining works under Component 1 and Component 2 is expected by December 31, 2022. However, due to the post-Covid recovery inflationary pressures, there have been some delays in the completion of some works under Component 1, as several contractors have experienced significant increases in the costs of materials and equipment and have requested ONEE to revise their contracts to adjust prices accordingly. This is the case of the Tiznit water treatment station, which was expected to be completed by early December 2022, and is now expected to be completed by March 2023. Also, there has been a slow-down in the tests (all works are already completed) in the Rif Transport Pipeline (Adduction du Rif), which in turn has impacted the scheduling of tests for the systems that depend on the Rif Transport Pipeline (Adduction du Rif) to be made operational. Once the test in the pipeline is completed by February 2023, the Rif Transport Pipeline will be put in service to provide bulk water to the access systems financed by the Project. Concerning the access systems, most of the works associated with all the systems (except for S2 and S8) are expected to be completed by February 2023. Still, they will only be operational once the water from the Rif Transport Pipeline is made available.. The implementation of Component 2 advanced as planned. The first subcomponent related to individual household connections was already achieved in 2021, with the overachievement of the project target related to the number of beneficiaries from individual household connections (109,380 vs. a targeted number of 71,000). For the subcomponent related to the reinforcement of production facilities and reservoirs, most works are already completed, and the final reception of the seven contracts (out of 23 for these contracts for this component) is planned by the end of December 2022. The remaining indicator on additional reservoir capacity is currently at 98%. The project disbursement rate as of December 2022 is 96%, thanks to a withdrawal application processed in November 2022 for US$6.3 million. There are still US$5.3 million to be disbursed, which are expected to be consumed during the 3-month extension and the grace period. In November 2022, the Bank and ONEE teams held a series of technical meetings to evaluate the impacts of a potential extension of the closing date on the project results. A three-month extension is justified to allow time to complete some of the delayed works (Tiznit treatment stations and Rif Transport Pipeline) and the designation of standpipe operators. The additional results that can be achieved with a three (3) month extension (from December 31, 2022, to March 31, 2023) as per the action plan agreed upon between the Task Team and the ONEE, as follows: The World Bank MA-Rural Water Supply (P145529) (1) The extension will allow for the reception of the Tiznit Treatment Station and the Rif Transport Pipeline. (2) ONEE will reinforce its efforts in the Sidi-Bennour, Driouch-Nador, and Rhamna provinces to designate standpipe operators for standpipes that are currently able to provide service (mise en service industrielle, i.e., that all the works and required test had been performed and that have availability of water supply at the standpoint). (3) The improvement of the disbursement rate to close to 100%, as the remaining balance will be withdrawn for the payment of the remaining works during the grace period. Under a revisited closing date of March 31, 2023, additional 80,000 people could be receiving access to improved water services, which would increase the beneficiaries to a total of 1,081,320 or 98 percent of the PDO target. No other changes are introduced through this project restructuring. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-83970 Effective 30-Sep-2021 31-Dec-2022 31-Mar-2023 31-Jul-2023