The World Bank Tunisia Urban Water Supply (P064836) REPORT NO.: RES29173 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TUNISIA URBAN WATER SUPPLY APPROVED ON NOVEMBER 17, 2005 TO SOCIETE NATIONALE D'EXPLOITATION ET DE DISTRIBUTION DES EAUX (SONEDE) WATER MIDDLE EAST AND NORTH AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Marie Francoise Marie-Nelly Senior Global Practice Director: Guang Zhe Chen Practice Manager/Manager: Steven N. Schonberger Task Team Leader: Esther Illouz The World Bank Tunisia Urban Water Supply (P064836) ABBREVIATIONS AND ACRONYMS AF Additional Financing CSM Commission supérieure des marchés INS Institut National de la Statistique (national statistics office) ONAS Office National de l’Assainissement (national sewerage utility) PDO Project Development Objective PPIAF Public-Private Infrastructure Advisory Facility MDCI Ministère du dévelopment et de la cooperation internationale (Ministry of Investment and International Cooperation) SIC Système d’Information Commercial (customer billing system) SOE State-Owned Enterprise SONEDE Société Nationale d'Exploitation et de Distribution des Eaux (national water utility) ST1 Station de traitement n. 1, Ghdir El Golla (water treatment station 1) ST2 Station de traitement n. 2, Ghdir El Golla (water treatment station 2) ST4 Station de traitement n. 4, Ghdir El Golla (water treatment station 4) STB1 Station de traitement n. 1, Belli (water treatment station 1) WPP Water Partnership Program The World Bank Tunisia Urban Water Supply (P064836) BASIC DATA Product Information Project ID Financing Instrument P064836 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 17-Nov-2005 30-Jun-2018 Organizations Borrower Responsible Agency Societe Nationale d'Exploitation et de Distribution des Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE) Eaux (SONEDE) Project Development Objective (PDO) Original PDO The Project development objectives are to: - Sustain the reliability and quality of water service in Greater Tunis and selectedurban centers, through augmentation, upgrade and renewal of water supply infrastructure. - Enhance the competitiveness andsustainabilityof SONEDE operations, through modernization of management practices and information systems, for better costcontrol, enhanced revenue and more responsive customer service. Current PDO Revised project development objective: To ensure the continuity of water service (twenty four (24) hours per day, seven (7) days a week) to the population in Greater Tunis and other targeted cities; and (ii) improve the financial viability of SONEDE. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83950 09-Jun-2014 19-Aug-2014 17-Jul-2015 30-Jun-2018 26.20 5.65 19.18 IBRD-73390 17-Nov-2005 05-Dec-2005 21-Mar-2006 30-Jun-2018 38.03 37.82 3.81 The World Bank Tunisia Urban Water Supply (P064836) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING . BACKGROUND The Urban Water Supply Project (P064836, IBRD 7339-TN) was approved in November 2005 to the benefit of the national water utility, Société Nationale d'Exploitation et de Distribution des Eaux (SONEDE) in the amount of €31.0 million (US$38.03 million equivalent) with two infrastructure components (Component 1: Improvements to the Greater Tunis water supply system; and Component 2: Infrastructure works to improve water systems in urban centers in the North and Center of the country), and an institutional component (Component 3: Management Capacity Building, with the main activity being the installation of a new customer billing system (Système d’Information Commercial or “SIC”) to be operated jointly with the national sewerage utility (Office National de l’Assainissement - ONAS), and co-financed by the Tunis North Sewerage Project). The first restructuring involving reallocation and extension of the closing date by 22 months (from June 2012 to April 2014) was approved with the aim to support SONEDE and ONAS in the implementation of the SIC as a strategic tool to improve financial performance of the sector. The second restructuring extended the project by 14 months (from April 2014 to June 2015) to allow for the SIC installation, align the closing date with the related ONAS project for joint activities, and allow for extra time for the Additional Financing that was under preparation at that time. The Additional Financing (IBRD 8395- TN) in the amount of €19 million (US$26.2 million equivalent) with a new closing date of June 2018 was approved in 2014 with the main objective to fill the financing gap to increase the capacity of the new modern water treatment station n. 4 (ST4) at SONEDE’s water supply complex for the Greater Tunis area, adding one cubic meter per second (m3/s), as well as to rehabilitate older water treatment facilities in Greater Tunis and Belli. In addition, the Additional Financing included the replacement of 70,000 customer water meters. PROJECT STATUS Progress to date (as of November 2017) Component 1: Improvements to the Greater Tunis Water Supply System  Ras Tabia, Mornag, Borj Touil, La Gazelle, Bir El Kassa areas: Civil works pertaining to the construction, rehabilitation and upgrade of pumping and sludge treatment stations, storage facilities, and distribution networks, have been completed and commissioned, and are operational in all planned project areas.  Ghdir El Golla: As regard ST4’s capacity expansion, after procurement delays, works have started and are progressing well with the completion expected on August 31, 2018, after which the contractor will operate the station for 12 months (“first stage of commissioning”). The physical works will be 90% completed by the project closing date in June 2018. Provided that any construction defect is corrected, the operationalization of the station The World Bank Tunisia Urban Water Supply (P064836) will be transferred to SONEDE in August 2019 (“second stage of commissioning”). To avoid any environmental safeguard-related risk during the first phase of operationalization under the responsibility of the contractor, the Bank will ensure that contractor staff is well aware of the Bank guidelines and of best practice to properly implement the project environmental management plan (EMP) as approved by the Bank, with adequate support from SONEDE. A training of SONEDE’s designated staff has been scheduled so as to prepare for the effective monitoring of ST4’s EMP after the project has closed. More broadly, SONEDE’s responsibility in ensuring adequate operationalization of ST4 is highly likely given its mandate of delivering drinking water to citizens, and the fact that it is committed to continue working with the Bank in the water sector. Component 2: Improvements to Water Supply Systems in Urban Centers of the Eastern, Northern and Central Regions  Civil works for secondary infrastructure improvements in urban centers of the Eastern, Northern, and Central regions are fully completed and operational. The only remaining activity pertains to the installation of a ductile iron pipe at the Belli water treatment plant with the planned completion early 2018. Component 3: Management Capacity Building SIC: SONEDE launched a tender for the installation of the SIC in 2009. Since there was no prior experience in Tunisia in tendering and executing a turnkey contract for a major information technology system under a Bank project, the procurement process was lengthy and the contract was signed only in February 2011. The start of the SIC installation was delayed until March 2013 due to a combination of political turmoil, administrative bottlenecks in relation to the national tender board (Commission supérieure des marchés or CSM), difficulties for the provider to meet the requirements, and contract management deficiencies. After further delays, the installation of the SIC resumed in July 2017 with the following progress to date: o The new and improved version of the software package has been validated by SONEDE. o The updates to the customer database for the pilot site (Ariana District in the Greater Tunis area with 42,000 customers) were successful with accuracy in the accounting information and customer data. o The SIC supplier trained SONEDE staff responsible for the full deployment of the SIC, i.e. installation of the new software in 38 districts and the migration of the full customer database (2 million customers) into the new system. It is expected that Phase 3 involving full SIC deployment and operationalization in all regions and each utility will be achieved by the closing date, representing 90% of physical installation, and directly contributing to the achievement of PDO #2 – achievement of financial viability of SONEDE. Technically, this level of realization (Phase 3) will be sufficient to conduct the essential commercial functions assigned to the new system. No further delay is expected as evidenced by SONEDE’s stronger monitoring of the contract, the revised planning, and the contractor’s re-engagement. The Bank will monitor the start of the effective operationalization of the SIC in February 2018 as per plan. SONEDE has committed to pay the contractor the remaining portion of the SIC installation (about 30% of the contract value) that will span beyond the project closing date. Phase 4 corresponds to the final acceptance of the entire system, fully integrated within both utilities SONEDE-ONAS, i.e. the activation of the interface between SONEDE and ONAS allowing flawless exchange of information between both utilities, and is expected to take place by August 31, 2018. In terms of sustainability, the SIC contract includes provisions to ensure maintenance and software updates, and technical troubleshooting. The World Bank Tunisia Urban Water Supply (P064836) Purchase and installation of 70,000 household meters to replace the malfunctioning ones. Thanks to lower costs than originally budgeted for, 93,800 meters were purchased and installed instead of the 70,000 planned. The quality of the purchased meters and the installation effectiveness (between May and November 2015) in SONEDE’s four regional offices was confirmed by an independent technical audit carried out in August 2017. This achievement has positive impact on the PDO#2. Development of a technical and financial model. The technical and financial model was developed as part of a more relevant activity that was implemented and completed in parallel to the project under a separate grant from the Water Partnership Program (WPP) and the Public-Private Infrastructure Advisory Facility (PPIAF). SONEDE and the Bank decided to include the model in the “SONEDE Financial Equilibrium Study” financed by the Bank in 2015. SONEDE’s financial department (Central Directorate of Accounting and Finance – Direction centrale comptable et financière) will be able to apply its new financial model once it has undertaken recommendations of the study and action plan, specifically reforms in its financial management, including the implementation of analytical accounting procedures. This “substitution” has no effect on PDO#2, and the longer-term measures outlined in the study will contribute positively to SONEDE’s financial sustainability. Disbursement. Disbursements of the original project have reached 90% of the loan amount, and 27% for the additional loan, with 56% of commitment in signed contracts, which are expected to be completed by project closing. Procurement. In December 2016, SONEDE issued an invitation to bid for water treatment station 1 (ST1), and a sole tender for the rehabilitation of the water treatment station 2 of Ghedir El Golla (ST2) and of the water treatment station 1 of Belli (STB1). Both tenders attracted little interest with only two firms making proposals for each bid, and all of them were found non-conforming with the tender specifications. Given that the amount of the non-conforming parts of the bids were relatively low proportional to the total bid value, the Bank recommended to negotiate with the lowest qualified bidder to bring its proposal to full conformity with the technical specifications. This option did not materialize as an authorization to negotiate could not be secured from CSM which SONEDE had to respect. Given that SONEDE does not have the capital budget to cover the remaining cost of these contracts to be paid after the loan closing date in the event of late start of the works, SONEDE has requested to postpone the rehabilitation works until these can be financed at a later stage, effectively cancelling these activities (ST1, ST2, STB 1) from the project scope at this point in time, with the view that the required investments will be initiated soonest so as to continue to provide continuous potable water services to Tunisian citizens. Project ratings. Following the January 2017 and May 2017 missions, PDO and Implementation Progress, as well as all three component ratings were downgraded to “Unsatisfactory”. Since then, based on the significant progress on the SIC which is a major step forward, as well as SONEDE's agreement to pursue a pragmatic approach to the pending bids, the rating for PDO and Component 3 were upgraded to “Moderately Satisfactory”, and the Implementation Progress, Components 1 and 2 and Procurement were upgraded to “Moderately Unsatisfactory”. PDO achievement. Current and expected achievements of the original project and the Additional Financing show that the project objectives are likely to be reached, as follows: PDO#1 - To ensure the continuity of water service to the population in Greater Tunis and other targeted cities. Potable water has been provided in the Greater Tunis area and other targeted areas in a continuous manner since 2009. In Greater Tunis, this is thanks to the construction of a new modern station, ST4 which was operational since 2013, combined with mitigation measures undertaken by SONEDE during the summer peaks. ST4 will continue to allow continuous water delivery until 2018 when its 1 m3/s expansion becomes operational in September 2018 and thereafter, meeting the water demand until 2022. In sum, although the expansion works will be 90% completed in June 2018, as the remainder of the works will be completed on August 31, 2018 and hence the station will become fully operational at that time, this delay The World Bank Tunisia Urban Water Supply (P064836) does not affect the capacity of SONEDE to continue producing potable water and connecting new households, with positive impacts on service delivery and public health for the entire population of the targeted areas. It must be noted that ST1, ST2 and STB1 stations are currently in operation by SONEDE and have been providing uninterrupted services in the targeted areas since 2014. These three stations are however complicated to operate owing to the difficulty to obtain spare parts and are expensive to operate because all operations are done manually and require more manpower than fully-automated modern stations. As such, rehabilitation remains a priority, especially in Belli where the stations operate at full capacity with no margin to increase water production. PDO#2 – Financial viability of SONEDE. Positive influence on SONEDE's water sales from the new meters installed has been confirmed by a recent verification of 100 meters which showed that there was an 54% increase of household consumption actually billed during the year following the replacement of a household meter thanks to more accurate reading of water consumption. The Bank will continue to monitor the effect of meter replacement on water sales by analyzing a larger sample of meters, as well as billing and customer records at SONEDE regional offices to obtain statistically significant data on water sale increase. Furthermore, SONEDE is making changes towards institutional and financial performance according to its “Institutional Reform Strategy” (“Stratégie de renforcement de la capacité de gestion de l’entreprise et d’amélioration des performances”) developed in 2017 with Bank support, and that was validated by SONEDE’s Board. This document includes a roadmap of key reforms that SONEDE needs to undertake, and is fully aligned with the broader reform agenda of State Owned Enterprises (SOEs) that the Government has launched. The strategy recommends improving utility performance and efficiency through increasing revenues through adjusted tariffs, commercial management, efficacy of the water distribution network, and institutional reorganization. SONEDE management has already taken critical steps such as designating heads of commercial management in regional offices. However, reforms will take time to implement in the current political context. In particular, delays in revising the tariff policy providing for an indexation to operational costs will continue to undermine SONEDE’s financial situation. For the original PDO#2, which was formulated as “to enhance the competitiveness and sustainability of SONEDE operations, through modernization of management practices and information systems, for better cost control, enhanced revenue and more responsive customer service”, the Bank recognizes that it took a long time to revise its formulation. However, as explained above, the ultimate outcome is not jeopardized –under both the revised formulation and the original one (including for the expression “SONEDE’s competitiveness”)—, based on an improvement of the overall financial position of SONEDE thanks to the new billing system that will be operational by the project closing date, and the development of the utility’s strategic plan to get back to financial equilibrium, as “Cascade-enabling” actions. PDO indicators. The PDO indicators are on track as follows:  Working ratio: The value has consistently been above 100% over the period 2014-2017 (116% in 2016, 114% in 2017), showing that SONEDE covers operational costs through its revenues. Although the value was 121% in 2006, it has been relatively stable in the last few years – around 115%.  Number of beneficiaries: The number of beneficiaries has remained above the target value over the period 2014- 2017. By project closing, 2 million additional customers would be served 24/7 compared to the situation of 2005.  Continuity of service: In the Greater Tunis region, SONEDE has been providing 24/7 service to all customers including during the peak seasons since 2013, thanks to the construction of the new ST4. The World Bank Tunisia Urban Water Supply (P064836) For the four urban centers served by the Belli water complex (Monastir, Sousse, Mahdia, Sfax) while there were water restrictions in the summers of 2016 and 2017 when the demand is highest, these were not infrastructure- related, but rather caused by climate-related drought events that decreased the availability of water storage at the Neghana dam and of local groundwater resources, which forced SONEDE to schedule water service interruptions during a few hours at night for about 30 days. Such interruptions are managed, temporary service restrictions to allow the recharge of reservoirs and to reduce water loss, and are considered best practice. The interruptions hence do not pertain to the definition of the project document which is “unscheduled interruptions due to water supply constraints (not scheduled interruptions in the network, e.g. for repair purpose).” For the Sahel urban centers targeted under the original project (regions of Nasrallah, Kalaa Kbira, Jammel, and Ouerdanine), the project has financed upgrades of reservoirs and transportation pipes that have increased the availability of water (these upgrades did not focus on water production). Finally, as regard the Belli plant, it is well managed by competent staff of SONEDE, and the technical audit of November 2017 has verified that will be able to maintain reliability, efficiency and sustainability of water production, and stability of operational costs for another two or three years. RATIONALE FOR RESTRUCTURING Given the progress to date and the delays encountered with the implementation of certain activities, SONEDE requested the World Bank on October 12, 2017 to restructure the project, in consultation with the Ministry of Investment and International Cooperation (MDCI). The restructuring will allow to focus on completing those activities which are critical to achievement of the PDO by the project closing date, and to cancel those that cannot be completed at that date, namely the rehabilitation works of ST1, ST2 and STB1 – with a view to initiate these rehabilitations, under alternative financing, as soon as practical. To reflect this change, adjustments to the project design are proposed to be made to reflect the revised scope, targets and financing allocation, as described below. Thus, the loan amount of the Additional Financing would be scaled down to realistic project funding needs, cancelling the uncommitted amount that could not be utilized under the project before the closing date. Key project targets are retained, while some indicators are adjusted to better capture project outcomes. II. DESCRIPTION OF PROPOSED CHANGES (i) Restructuring comprises the following changes: (i) revision of the project scope; (ii) adjustment of implementation schedule; (iii) utilization of unallocated funds to purchase household water meters; (iv) revision of the Results Framework to better capture results at the PDO and intermediate level expected by the project closing; and (v) partial cancellation of the loan amount, reallocation between the disbursement categories and corresponding revision of the disbursement The World Bank Tunisia Urban Water Supply (P064836) estimates. The two Loan Agreements (Loan No. 7339-TN and No. 8395-TN) will be amended accordingly to reflect the above changes. (i) Revision of the project scope. Given the procurement delays in tendering ST1, ST2, and STB1, insufficient time to procure these and lack of financing capacity by SONEDE to assume responsibility for the contracts post-closing date, these activities will be canceled from the project. (ii) Adjustment of implementation schedule. The implementation schedule of the Additional Financing has been affected by national procurement procedures. For the ST4 expansion works, achievement of the works is expected in August 2018, five months later than the estimation at appraisal. In Belli, the procurement and layout of the pipe for the treatment complex will be achieved in early 2018, against mid-2016 in the initial planning. Under the original project, the implementation of the SIC suffered most of the delays. Initially scheduled to be implemented from April 2006 to March 2009, the contract with the provider was signed in 2011. The development of the SIC is underway as noted above with most of the deployment expected to be effectively operational by the project closing date, i.e. completion of 90% of the installation. SONEDE has committed to pay the contractor the remaining of the installation that would occur after the project closing date (30% of the contract value or around US$815,000). (iii) Utilization of unallocated funds to purchase household water meters. The unallocated funds (Category (5) of eligible expenditures) in the amount of €452,500 will be used to pay for 33,000 water meters (Category (1)) under an ongoing contract to purchase 150,000 meters with SONEDE’s own funds (this would be in addition to the 93,800 meters already purchased and installed). The objective is to contribute to the replacement program for the backlog of malfunctioning meters currently negatively affecting the company’s water sales and revenues. SONEDE has updated the procurement plan accordingly, and will prepare an amendment to the existing contract to include an increase of 20% of the contract value (as authorized by the contract), and the new payment modality. (iv) Revision of PDO indicators and intermediate indicators to better capture results expected by project closing. The PDO indicators and most of the intermediate indicators remain achievable. Some limited revisions are proposed (Annex 1) to reflect the revised project scope. (v) Partial cancellation of the loan amount, reallocation between the disbursement categories and corresponding revision of the disbursement estimates. For the Additional Financing (Loan 8395-TN), the proposed cancellation from requested by the Borrower is €8.4 million, including the cancellation of the rehabilitation works of ST1, ST2, and STB1 and the amount to be disbursed for the expansion works of ST4. Overall, by the project closing date, €10.6 million are expected to be disbursed under the Additional Financing (this includes physical work contracts already signed and the purchase of new water meters). For the original project (Loan 7339-TN), the allocations as requested by the Borrower to match the current allocation, are €205,000 for Category (2) Works and €912,000 for Category (3) Goods. Some adjustments in the amounts for Categories (1) and (4) are also included based on current disbursements, commitments, and projected disbursements by June 30, 2018. Table: Fund reallocation and cancellation for the Additional Financing (Loan 8395-TN) The World Bank Tunisia Urban Water Supply (P064836) Original amount of Amount of the Loan Amount to be the Loan Allocated allocated under the cancelled (Euro) Category (Euro) restructuring (Euro) (1) Goods, works and non-consulting 10,000,000 6,000,000 4,452,000 services for Parts A.1 and C of the Project (2) Goods, works and non-consulting 5,300,000 3,000,000 2,300,000 services for Part A.2 of the Project (3) Goods, works and non-consulting 3,200,000 1,600,000 1,600,000 services for Part B of the Project (4) Front-end Fee 47,500 47,500 0 (5) Unallocated 452,500 0 0 TOTAL AMOUNT 19,000,000 10,647,000 8,352,000 Table: Fund reallocation and cancellation for the Additional Financing (Loan 7339-TN) Original amount of the Loan Amount reallocated under Category Allocated (Euro) the restructuring (1) Treatment works 11,616,300 11,600,000 (2) Works 8,195,000 8,400,000 (3) Goods 7,488,000 8,400,000 (4) Technical assistance and training 3,623,200 2,522,500 (5) Front end fee 77,500 77,500 TOTAL AMOUNT 31,000,000 31,000,000 ANNEX 1: Results Framework and Monitoring Proposed changes to the Results Framework with explanations Current Proposed Explanation PDO 1.To ensure the continuity of water service (24 1. Unchanged hours / 7 days) for the population of Greater Tunis and other cities 2.To improve the financial viability of SONEDE The World Bank Tunisia Urban Water Supply (P064836) 2. Unchanged PDO-level indicators 1. Working ratio (target ≥ 100%) Calculated as 1. Unchanged (net operational revenues) divided by (net operational costs minus depreciation plus interest charges) 2. Direct project beneficiaries of which female 2. Unchanged 3. Water shortage events 3. Unchanged Intermediate Indicators Component 1: Improvements to the Greater Tunis water supply system Volume of water sold Unchanged The increased volumes of water sold in Greater Tunis is related to the expansion of the production capacity of GEG (ST4) financed under the project. Original Project: Completion rate of expansion Unchanged works of ST4 potable water plant in Greater Tunis (2 m3/s) AF 1.a Completion rate of expansion works of Unchanged The project execution period is 18 ST4 potable water plant in Greater Tunis (1 m3/s months, starting January 2017. expansion) Contractual delivery date of the work is August 31, 2018. AF 1.b Completion rate of rehabilitation and To be dropped Cancellation of this bid by SONEDE. upgrade works at Greater Tunis potable water plant Completion rate of reinforcement of power Unchanged supply (sludge treatment plant, ST4) Completion rate of replacement of raw water Unchanged intake pumps Component 2: Improvements to water supply systems in urban centers of the Eastern, Northern and Central Regions North and Center: Piped household water Unchanged connections that are benefiting from rehabilitation works North and Center: Volume of water sold Unchanged targeted cities Belli: Completion rate of rehabilitation works To be dropped Cancellation of the Belli station rehabilitation bid by SONEDE. The World Bank Tunisia Urban Water Supply (P064836) Belli: Piped household water connections that To be dropped Cancellation of the Belli station are benefiting from rehabilitation works rehabilitation bid by SONEDE. Center-East cities: Volume of water sold in To be dropped Cancellation of the Belli station targeted cities rehabilitation bid by SONEDE. Component 3: Management capacity building Rate of completion of (i) customer management (ii) financial planning (ii) The model was developed under system (joint SONEDE-ONAS), (ii) technical and model is dropped the Financial Equilibrium Study financial planning model, (iii) HR system, (iv) (iv) Corporate Plan and financed by PPIAF and WPP, and acquisition of rolling equipment Organizational Audit is which was completed in 2016. dropped (iv) The Corporate Plan and Organizational Audit was developed under the Organizational Audit for SONEDE financed by the European Union in 2016. Number of meters purchased and installed Unchanged Rate of completion of rolling equipment Unchanged purchase The World Bank Tunisia Urban Water Supply (P064836) ANNEX 2: Proposed changes to activities with explanations Activities financed under Activities financed under Activities unchanged, cancelled, or Loan 7339-TN Loan 8395-TN adjusted Component 1: Improvements to the Component 1: Improvements to the Greater Tunis water supply system Greater Tunis water supply system Ghdir El Golla (GEG) water treatment Unchanged plant expansion: A fourth water treatment unit, with a 2m3/sec treatment capacity; sludge treatment plant for the new and the existing water treatment units GEG storage: storage tank for treated water (10 000 m3) Ghdir El Golla-Ras Tabia transmission line: Rehabilitation and/or renewal o f 10 km of 119Omm pipeline. Mornag: 5 km of polyethylene mains and a pumping station of 15 kW with electromechanical equipment. Borj Touil: 15 km o f polyethylene mains with a diameter less than 200 mm, a pumping station o f 14 kW with electromechanical equipment and a 2,500m3 storage tank. L a Gazelle: 500m3 storage tank Ghdir El Golla and Bir El Kassa 72- meter pressure stage: Two water storage tanks of 5 000 m3. Power supply of Ghdir El Golla (intra Added due to positive financing and extramuros) balance from the original project Rehabilitaion of pumping station #1 (GEG) Purchase of construction machinery Expansion of ST4 treatment facility Unchanged (Phase 2) Rehabilitation and upgrade of Cancelled Greater Tunis treatment plant (GEG) Component 2: Improvements to Component 2: Improvements to water supply systems in urban water supply systems in urban The World Bank Tunisia Urban Water Supply (P064836) centers of the Eastern, Northern and centers of the Eastern, Northern and Central Regions Central Regions Ai'n Draham: 1,000 m3 storage tank Unchanged Ghardimaou : 1, 000 m3 storage tank; 1 new borehole; rehabilitation of existing borehole; electromechanical equipment; and 12km of cast iron and polyethylene mains Rouhia: Two 500 m3 storage tanks, two250 m3 storage tanks; 21 km of cast iron transmission pipelines 300- 400 mm in diameter; a 200m-deep borehole; two pumping stations Nasrallah : One 500 m3 storage tank, 6.9 km o f 200mm cast iron pipeline; retrofit of existing borehole with new power supply and electro- mechanical systems. Kalaa Kbira: 7.5 km of cast iron and polyethylene pipelines for transmission and distribution purposes Jammel: One 25kW pumping station including power supply and electromechanical equipment; 15 km of various transmission and distribution pipelines (various diameters and materials, cast iron, concrete, polyethylene). Ouerdanine: One 2500 m3 storage tank; one pressure regulation tank. Intake pipe of Bellin treatment plant Unchanged Rehabilitation and upgrade of Belli Cancelled treatment plant Component 3: Management capacity Component 3: Management capacity building building Corporate Plan and Organizational Subsituted as part of an Audit Organizational Audit for SONEDE financed by the European Union in 2016 Technical and financial model Completed as part of parallel study The World Bank Tunisia Urban Water Supply (P064836) Customer service information system Unchanged Human resources management Unchanged information system Monitoring of the Environment Unchanged Management Plan (EMP) Purchase and installation of 70,000 Unchanged (93,800 meters water meters purchased and installed) III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursement Estimates ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Loan Closing Date(s) ✔ Change in Disbursements Arrangements ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ The World Bank Tunisia Urban Water Supply (P064836) Change in Procurement ✔ Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Events of intermittent supply due to water shortage in the distribution systems covered by the project Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 0.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 Working ratio Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 121.00 114.00 100.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 Direct project beneficiaries of which females Unit of Measure: Number Indicator Type: Custom The World Bank Tunisia Urban Water Supply (P064836) Baseline Actual (Current) End Target Action Valu 5.00 6.82 6.98 Revised e Date 13-May-2014 02-Nov-2017 29-Jun-2018 Intermediate Indicators IO_IND_TABLE [Original project] Completion rate of construction works of ST4 potable water plant in Greater Tunis (2 m3/s): Component 1 - Improvements to the Greater Tunis water supply Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 100.00 100.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Additional Financing] Completion rate of expansion works of ST4 potable water plant in Greater Tunis (1 m3/s expansion) - Intermediate Result 1: Component 1- Improvements to the Greater Tunis wate Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 30.00 90.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original Project and Additional Financing] Number of connections in areas in Greater Tunis covered by the project - Intermediate Result 1: Component 1- Improvements to the Greater Tunis water suppl Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 760000.00 780000.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Additional Financing] Completion rate of rehabilitation and upgrading works at Greater Tunis water plant - Intermediate Result 1: Component 1- Improvements to the Greater Tunis water supply The World Bank Tunisia Urban Water Supply (P064836) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 100.00 Marked for Deletion e Date 30-Jun-2006 31-Aug-2017 30-Jun-2018 [Original project] Completion rate of reinforcement of power supply: Intermediate Result 1: Component 1- Improvements to the Greater Tunis water supply Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 100.00 100.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original project] Completion rate of replacement of raw water intake pumps - Intermediate Result 1: Component 1: Improvements to the Greater Tunis water supply Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 100.00 100.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original Project and Additional Financing] Volume of water sold m3/year: Component 1 - Improvements to the Greater Tunis water supply Unit of Measure: Cubic meters/year Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 104.00 138.00 141.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original Project] Piped household water connections that are benefiting from rehabilitation and upgrading works: Component 2 - Improvements to water supply systems in urban cen Unit of Measure: Number The World Bank Tunisia Urban Water Supply (P064836) Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 450000.00 480000.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original Project] Volume of water sold in targeted cities (North and Center) M m3/year: Component 2 - Improvements to water supply systems in urban centers (other cities) - Un Unit of Measure: Cubic meters/year Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 44.90 68.50 72.20 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original Project] Completion rate of works in other cities of the North and Center: Intermediate Result 2: Component 2- Improvements to water supply systems in urban centers (other cities) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 100.00 100.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Additional Financing] Completion rate of rehabilitation works of the Belli water treatment facility - Intermediate Result 2: Component 2: Improvements to water supply systems in urban centers Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 100.00 Marked for Deletion e Date 19-Jun-2014 31-Aug-2017 30-Jun-2018 [Additional Financing] Piped household water connections that are benefiting from rehabilitation and upgrading works undertaken under the project - AF: Belli water complex (Center-East cities) Unit of Measure: Amount(USD) Indicator Type: Custom The World Bank Tunisia Urban Water Supply (P064836) Baseline Actual (Current) End Target Action Valu 0.00 630000.00 490000.00 Marked for Deletion e Date 09-Jun-2014 31-Aug-2017 29-Jun-2018 [Additional Financing] Volume of water sold in targeted cities (Center-East) (m3/year) - Intermediate Result 2: Component 2- Improvements to water supply systems in urban centers (other cities) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 98.20 79.00 Marked for Deletion e Date 31-Dec-2006 31-Aug-2017 30-Jun-2018 [Original Project] Rate of completion of financial planning model - Intermediate Result 3- Management Capacity Building Unit of Measure: Amount(USD) Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 0.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original Project] Implementation of a joint customer management system (SIC) - SONEDE and ONAS - Intermediate Result 3: Management Capacity Building Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 50.00 90.00 Revised e Date 31-Dec-2006 02-Nov-2017 30-Jun-2018 [Original Project] Rate of completion of HR system - Intermediate Result 3- Management Capacity Building Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action The World Bank Tunisia Urban Water Supply (P064836) Valu 0.00 100.00 100.00 No Change e Date 31-Dec-2006 31-Aug-2017 30-Jun-2018 Rate of completion of rolling equipment purchase - - Intermediate Result 3- Management Capacity Building Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 100.00 100.00 No Change e Date 31-Dec-2006 31-Aug-2017 30-Jun-2018 [Additional Financing] Number of meters purchased and installed (cumulative) - Intermediate Result 3: Management Capacity Building Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 93800.00 126800.00 Revised e Date 09-Jun-2014 02-Nov-2017 30-Jun-2018 Rate of completion of the Corporate Plan and Organizational Audit Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 0.00 New e Date 29-Dec-2006 02-Nov-2017 30-Jun-2018 COMPONENTS Current Proposed Current Proposed Cost Action Cost Component Name Component Name (US$M) (US$M) Component 3: Management Component 3: Management 6.70 Revised 7.22 capacity building capacity building Physical contingencies 4.50 Revised Physical contingencies 4.50 The World Bank Tunisia Urban Water Supply (P064836) Component 1: Improvements to Component 1: Improvements to the Greater Tunis water supply 43.10 Revised the Greater Tunis water supply 39.75 system system Component 2: Improvements to Component 2: Improvements to water supply systems in other 13.20 Revised water supply systems in other 11.48 urban centers urban centers Financial contingencies (incl. Financial contingencies (incl. 5.90 Revised 0.47 front-end fees) front-end fees) TOTAL 73.40 63.42 CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation Disburs IBRD-73390- ing&Re EUR 31,000,000.00 0.00 31,000,000.00 001 paying UNDISBURSE IBRD-83950- Disburs EUR 19,000,000.00 8,352,500.00 13-Oct-2017 10,647,500.00 D BALANCE 001 ing AT CLOSING REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-73390-001 | Currency: EUR iLap Category Sequence No: 1 Current Expenditure Category: IBRD73390 TREATMENT WORKS 11,616,300.00 11,161,717.84 11,600,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: IBRD73390 WORKS 8,195,000.00 8,383,469.57 8,400,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: IBRD73390 GOODS 7,488,000.00 7,789,613.04 8,400,000.00 100.00 100.00 The World Bank Tunisia Urban Water Supply (P064836) iLap Category Sequence No: 4 Current Expenditure Category: IBRD73390 T A & TRAINING 3,623,200.00 485,416.32 2,522,500.00 100.00 100.00 iLap Category Sequence No: 6 Current Expenditure Category: PREMIUM FOR CAPS/COLLARS 0.00 0.00 0.00 Total 30,922,500.00 27,820,216.77 30,922,500.00 IBRD-83950-001 | Currency: EUR iLap Category Sequence No: 1 Current Expenditure Category: GD, WRK, Non CS of Parts A.1 & C 10,000,000.00 3,163,283.95 6,000,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: GD, WRK, Non CS of Part A.2 5,300,000.00 1,714,883.84 3,000,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: GD, WRK, Non CS of Part B 3,200,000.00 1,217,771.61 1,600,000.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: UNALLOCATED 452,500.00 0.00 0.00 Total 18,952,500.00 6,095,939.40 10,600,000.00 DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2006 94395.00 94395.00 2007 1117838.88 1117838.88 2008 1067493.41 1067493.41 The World Bank Tunisia Urban Water Supply (P064836) 2009 3352540.99 3352540.99 2010 9676741.54 9676741.42 2011 11084427.34 11084427.34 2012 5634666.84 6174666.84 2013 2121235.50 2121235.50 2014 791896.29 791896.29 2015 723567.14 723567.14 2016 2474888.33 2474888.33 2017 3475670.93 3475670.33 2018 21574329.07 13006850.00