The World Bank Report No: ISR16683 Implementation Status & Results Paraguay PY Water & Sanitation Sector Modernization (P095235) Public Disclosure Copy Operation Name: PY Water & Sanitation Sector Modernization (P095235) Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 22-Nov-2014 Country: Paraguay Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 14-Apr-2009 Original Closing Date 15-Mar-2015 Planned Mid Term Review Date Last Archived ISR Date 01-Jun-2014 Effectiveness Date 29-Jan-2010 Revised Closing Date 31-Mar-2015 Actual Mid Term Review Date 15-Oct-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to increase the efficiency, coverage, and sustainability of water supply and sanitation services in Paraguay by (a) improving the governance of the sector, (b) improving water services and increasing access to sewerage services in the Asunción metropolitan area, and (c) increasing access to sustainable water and sanitation services in rural areas. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Support to the Modernization of the Sector - Governance and Institutional Strengthening 4.00 Urban water supply and sanitation and institutional strengthening of the 50.50 Sanitary Services Company of Paraguay (ESSAP) Rural water supply, sanitation, and hygiene education#and institutional strengthening of the National 9.50 Environmental Sanitation Servi ce Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Water and Sanitation Sector Modernization Project have made important progress over the last months. Page 1 of 7 The World Bank Report No: ISR16683 Component 1, there is progress in the implementation of the Governance Action Plan to improve communication, participation, transparency and accountability in the sector. Each sector institution has developed its own website to make public all ongoing activities and works, including contracting processes information. However, little progress have been made in the preparation of the national water and sanitation sector policy and the development of a monitoring system which are two important expected results form the project. Public Disclosure Copy Negotiations for the concession contract of ESSAP are still on going. SEAM is doing a good job with the development of a framework to improve water resources monitoring and management in 5 water basins. The SEAM is also revising environmental licensing procedures for the water and sanitation infrastructures in relation with the new Decree 453/13. ERSAN has recently started an important study to improve the regulatory framework and the tariff structure. Under component 2, ESSAP has developed a framework to monitor key management and service delivery indicators to improve transparency and technical and commercial efficiency. Progress have been made in increasing accounted water and collection. The installation of 110.000 water meters to start in December 2014 will further contribute to ESSAP's technical and commercial efficiency. On another hand, works contracts for a total amount of US$ 25 million are under execution to improve environmental sanitation and water services for 285.000 people in the Asunción Metropolitan Area. These works include the rehabilitation of 57 Km of secondary distribution water network (80 percent executed), the construction of 8,4 km of sanitation network (15 percent executed) and the construction of 33 Km of primary sanitation collectors in the watershed of Itay and their related supervision contracts. The Environmental and Social Impact Assessment and the Resettlement Plan associated with the construction of the Bella Vista Wasted Water Treatment Plant (WWTP) have been completed. The implementation of the Resettlement Plan that started in June 2014 is fully satisfactory. Under Component 3, SENASA completed in December 2013 the construction of 30 rural water supply systems serving 12.000 beneficiaries. Technical studies and community mobilization activities for the construction of an additional 30 water supply and sanitation systems in indigenous communities in Chaco benefiting about 6.000 indigenous people are underway. SENASA has installed 1,200 latrines in indigenous communities in Chaco providing basic sanitation to 6.190 beneficiaries. Communities, Municipalities and civil society will be closely involved in planning and project execution. Locations Country First Administrative Division Location Planned Actual Paraguay Not Entered Arroyo Ytay Paraguay Not Entered Villa Elisa Paraguay Not Entered San Lorenzo Paraguay Not Entered Patiño Paraguay Not Entered Río Paraguay Paraguay Not Entered Nemby Public Disclosure Copy Paraguay Not Entered Luque Paraguay Not Entered Limpio Paraguay Not Entered Lambaré Paraguay Not Entered Fernando de la Mora Paraguay Not Entered Colonia Mariano Roque Alonso Paraguay Not Entered Asunción Page 2 of 7 The World Bank Report No: ISR16683 Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Water and Sewerage Services Unit within the Text Value No yes Yes MOPC staffed and equipped, defining the Date 14-May-2009 23-Oct-2014 15-Mar-2015 policies for the sector Comments Unit created, staffed and equipped. Water and sanitation policies are under finalization Timely availability of ESSAP's external auditing Text Value No yes Yes of financial and performance data published Date 14-May-2009 23-Oct-2014 15-Apr-2015 through an annual report in ESSAP's website Comments ESSAP has set up a framework to monitor the key management and service delivery indicators. This indicators have been monitored forthe last year showing improvements in non revenue water. Number of additional families using sanitation Text Value 0 0 Indicator to be revised to systems in YR5 of the project in the Asuncion better reflect project progress metropolitan area Date 14-May-2009 23-Oct-2014 15-Mar-2015 Comments Indicator to be revised Number of additional beneficiaries using water Text Value 0 12.000 28,000 - Need to be revised systems in YR5 of the project in rural and as project financing has been indigenous communities that were targetedin reduced after project design YR1 of the project Date 14-May-2009 23-Oct-2014 15-Mar-2015 Comments Rural Water systems were end target will be revised to completed in December 2013 18.000 given actual resource Public Disclosure Copy by SENASA providing 12.000 available. people with safe and sustainable water Intermediate Results Indicators Page 3 of 7 The World Bank Report No: ISR16683 Indicator Name Core Unit of Measure Baseline Current End Target SIAPS developed and generating reports Text Value No No Yes according to the "Conceptual Framework for Date 14-May-2009 23-Oct-2014 15-Mar-2015 Public Disclosure Copy the SIAPS" Comments No progress recorded. Indicator requested to change Characterization of Service Providers (Service Text Value No ongoing Yes Provider Mapping) developed and published in Date 14-May-2009 23-Oct-2014 15-Mar-2015 ERSSAN's homepage Comments Contract awarded by ERSSAN to carry out the consultancy services Environmental classification standards Text Value No on progress Yes reviewed by SEAM Water Resources Date 14-May-2009 23-Oct-2014 15-Mar-2015 Directorate Comments Environmental licensing is under review with Bank support ESSAP's concession agreement signed Text Value No discusion under progress Yes Date 14-May-2009 23-Oct-2014 15-Mar-2015 Comments Sector stakeholders are discussing an advanced draft of the contract. ESSAP's Board of Directors established Text Value No ogoing Yes Date 14-May-2009 23-Oct-2014 15-Mar-2015 Comments During last supervision mission, ESSAP's president introduced two people working with him at the director level. Information Management System developed Text Value No Yes. Yes and generating reports for managerial Date 14-May-2009 23-Oct-2014 15-Mar-2015 Public Disclosure Copy decisions Comments ESSAP has developed a management system with a control board. A set of performance indicators (including financial an technical) have been selected and are being monitored since 2013. These is being used for decision making. Page 4 of 7 The World Bank Report No: ISR16683 Percentage of water connections with working Text Value 10% 64 % 50% micrometers (less than five years of Date 14-May-2009 23-Oct-2014 15-Mar-2015 installation) Comments Contract for 150.000 water Public Disclosure Copy meters adjudicated in April 2014. Installation of new meter will start in July 2014. New target will be set at 82% Volume of wastewater of Asuncion properly Text Value TBD after baseline study 1m3/s discharged to the Paraguay River Date 14-May-2009 15-Apr-2014 15-Mar-2015 Comments modeling of Paraguay water flow study completed. Proper discharge will be in place once the WWTP is constructed and operational Kilometers of sewerage collectors rehabilitated Text Value 0 8 10 from the sewerage system of Asuncion Date 14-May-2009 23-Oct-2014 15-Mar-2015 Comments The reported value includes the 60% progress on the rehabilitation contract for the sanitarion network and 10% progress on the primary collectors being built in the Watershed of Itay. Procurement unit strengthened and publishing Text Value No yes Yes procurement plans in SEPA Date 14-May-2009 23-Oct-2014 03-Jan-2011 Comments the project's procurement plan has been published in SEPA Environmental unit created within SENASA and Text Value No yes Yes processing environmental licences Date 14-May-2009 23-Oct-2014 03-Jan-2011 Comments The unit was re-established in Public Disclosure Copy May 2011. Number of new systems providing access to Text Value 0 0 30 water supply services to indigenous Date 14-May-2009 23-Oct-2014 15-Mar-2015 communities Comments in order to gurantee sustainability of teh systems a new institutional organization has been desing by SENASA, this has caused somedelays but will increase the success Page 5 of 7 The World Bank Report No: ISR16683 of the implementation of the systems. Number of installed latrines for indigenous Text Value 0 1.090 700 communities Public Disclosure Copy Date 14-May-2009 23-Oct-2014 15-Mar-2015 Comments All latrines installed Number of new systems providing access to Text Value 0 30 70 sustainable water supply services to rural Date 14-May-2009 23-Oct-2014 15-Mar-2015 communities Comments Target needs to be revised as financing is available in the project only to construct 30 systems Number of sanitation on-site solutions (Menu Text Value 0 0 4,900 - de Opciones) in use in rural communities Date 14-May-2009 23-Oct-2014 15-Mar-2015 Comments indicator to be revised as per the restructuring request Construction and/or expansion of services Text Value 0 0 4 implemented using minimum subsidy schemes Date 14-May-2009 15-Apr-2014 15-Mar-2015 Comments indicator to be revised as per the restructuring request Data on Financial Performance (as of 05-Nov-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P095235 IBRD-77100 Effective 14-Apr-2009 27-Apr-2009 29-Jan-2010 15-Mar-2015 31-Mar-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095235 IBRD-77100 Effective USD 64.00 64.00 0.00 16.19 47.81 25.00 Public Disclosure Copy Disbursement Graph Page 6 of 7 The World Bank Report No: ISR16683 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7