The World Bank Report No: ISR11327 Implementation Status & Results Bhutan BT: Urban Development II (P090157) Public Disclosure Copy Operation Name: BT: Urban Development II (P090157) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 19-Nov-2013 Country: Bhutan Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 29-Apr-2010 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 20-May-2013 Last Archived ISR Date 17-May-2013 Effectiveness Date 24-Aug-2010 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 21-May-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) 13. The proposed project development objectives are to: (i) support Bhutan#s municipal reform program by strengthening municipal management systems in Thimphu and Phuentsholing; and (ii) improve infrastructure services in northern Thimphu where no formal services are currently available. The first objective supports RGOB#s municipal reform agenda and helps implement the Bhutan#s new Local Government Act of 2009 through a series of technical assistance, policy support, training programs, and studies. The project also aims to help establish an effective intergovernmental fiscal transfer system. The second objective addresses an urgent need for serviced urban land in rapidly growing Thimphu City, given the already substantial and increasing migrant population settling in the peripheries of Thimphu. The process of attaining these objectives would help develop models and capacity for broader urban management in Bhutan. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Municipal Finance & Management 1.50 Thimphu Northern Area Development 9.30 Capacity Building 1.20 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The mid-term review mission concluded that the PDO remains relevant, and is likely to be achieved by the closing date, subject to the agreed critical actions being achieved. Page 1 of 5 The World Bank Report No: ISR11327 Nonetheless, the project components are still in early stages of implementation and thus there has been only limited progress that can be reported in achieving targets -- for example, percentage increase in property tax revenue, number of new piped water and sewerage connections, and access to all-season roads. More measurable progress has been achieved in issuing building permits for serviced plots. As agreed during the MTR, the project's results framework will be revised through a Level Two restructuring based on a formal request from the Government to revise or drop some of the original outcome and intermediate indicators to better reflect the project components and to allow more meaningful measurement Public Disclosure Copy of project results. For some indicators, the restructuring will introduce more realistic targets for the fourth and fifth year of project implementation. Locations Country First Administrative Division Location Planned Actual Bhutan Thimphu Dzongkhag Thimphu Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target New piped household water connections that Number Value 0.00 0.00 600.00 are resulting from the project intervention Date 29-Apr-2010 23-Oct-2013 31-Dec-2015 Comments Construction yet to start. 250 for Dechencholing and 350 for Langjophakha Percentage increase in property tax revenue Percentage Value 0.00 0.00 90.00 (land tax and urban house tax only) Date 29-Apr-2010 01-Oct-2013 31-Dec-2015 Comments Data not yet available 50 for Thimphu and 40 for Phuensholing Number of households with new sewerage Number Value 0.00 0.00 600.00 connections Sub Type Supplemental Number of building permits issued for serviced Number Value 75.00 75.00 175.00 plots Date 29-Apr-2010 23-Oct-2013 31-Dec-2015 Comments 30 for Dechencholing and 45 75 for Dechencholing and 65 100 for Dechencholing and 75 Public Disclosure Copy for Labgjophakha for Langjophakha for Langjophakha Number of people in urban areas provided with Number Value access to all-season roads within a 500 meter Date 01-Oct-2013 31-Dec-2015 range under the project Comments Not available yet Not yet available Not available Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR11327 Indicator Name Core Unit of Measure Baseline Current End Target Roads constructed, non-rural Kilometers Value 0.00 4.00 12.10 Date 29-Apr-2010 25-Oct-2013 31-Dec-2015 Public Disclosure Copy Comments Construction nearing 6.3km in Dechencholing and completion in Dechencholing 5.8km in Langjophakha LAP but yet to be fully completed and handed over. Number of Serviced Plots for Construction Number Value 0.00 179.00 300.00 Date 29-Apr-2010 25-Oct-2012 31-Dec-2015 Comments 179 in Dechencholing nearing 179 in Dechencholing and completion; works yet to start 121 in Langjophakha. at Langjophakha. Number of Property Tax Records Number Value 0.00 6000.00 7000.00 Computerized Date 29-Apr-2010 25-Oct-2012 31-Dec-2015 Comments 4500 in Thimphu and 1500 in 5000 in Thimphu and 2000 in Phuentsholing (Draft report on Phuentsholing Digitization of Tax and non- Tax Records and Assets Register submitted byconsultants Number of Staff at TCC and PCC Trained Number Value 0.00 85.00 100.00 Date 29-Apr-2010 25-Oct-2013 31-Dec-2015 Comments 75 of which 25 received 60 for TCC and 40 for PCC training in Municipal Finance and the rest received technical and general training. New road side footpaths constructed Kilometers Value 0.00 10.00 16.50 Date 04-Apr-2010 25-Oct-2013 31-Dec-2015 Comments 10 Kilometers in 10 Kilometers in Dechencholing Dechencholing and 6.5 in Public Disclosure Copy Langjophakha Off-road footpaths constructed Kilometers Value 0.00 0.40 1.90 Date 29-Apr-2010 25-Oct-2013 31-Dec-2015 Comments 0.4 Kilometers in 0.4 Kilometers in Dechencholing Dechencholing and 1.5 in Langjophakha Roadside drains Kilometers Value 0.00 6.00 10.30 Date 29-Apr-2010 23-Oct-2013 31-Dec-2015 Page 3 of 5 The World Bank Report No: ISR11327 Comments 6 Kilometers in 6 Kilometers in Dechencholing Dechencholing and 4.3 in Langjophakha Public Disclosure Copy Water pipelines Kilometers Value 0.00 5.00 9.00 Date 29-Apr-2010 23-Oct-2013 31-Dec-2015 Comments 5 Kilometers in 5 Kilometers in Dechencholing Dechencholing and 4 Kilometers in Langjophakha Sewage Pipelines Kilometers Value 0.00 8.75 13.05 Date 29-Apr-2010 23-Oct-2013 Comments 8.75 Kilometers in 8.75 Kilometers in Dechencholing Dechencholing and 4.3 Kilometers in Langjophakha Data on Financial Performance (as of 17-Sep-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P090157 IDA-47440 Effective 29-Apr-2010 13-Jul-2010 24-Aug-2010 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090157 IDA-47440 Effective XDR 7.75 7.75 0.00 3.87 3.88 50.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR11327 Public Disclosure Copy Key Decisions Regarding Implementation Following the mid-term review, the Borrower has agreed to the revisions of the outcome and intermediate indicators. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5