The World Bank Report No: ISR11511 Implementation Status & Results Honduras HN Water and Sanitation Sector Modernization Project (P103881) Public Disclosure Copy Operation Name: HN Water and Sanitation Sector Modernization Project Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Archive Date: 19-Aug-2013 (P103881) Country: Honduras Approval FY: 2007 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Jun-2007 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 31-May-2011 Last Archived ISR Date 08-Mar-2013 Effectiveness Date 22-Feb-2008 Revised Closing Date 31-Dec-2016 Actual Mid Term Review Date 05-May-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) Revised project development objective: to support the Recipient to improve: (a) the sustainability, efficiency, and reliability of its WSS services in Eligible Municipalities; (b) the performance of its national WSS sector institutions in the exercise of their respective roles in accordance with the WSS Sector Framework Law; and (c) its capacity to respond promptly and effectively to an Eligible Emergency. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Component 1: Support to medium-size municipalities to create autonomous service providers and 21.20 invest in efficiency, rehabilitation, Component 2: Tegucigalpa Non-Revenue Water Reduction 4.50 Component 3: Institutional strengthening of national and regional sector institutions 7.20 Public Disclosure Copy Component 4: Project management 1.60 Component 5: IRM Contingent Component 0.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Page 1 of 5 The World Bank Report No: ISR11511 The Project's progress towards the PDO and the implementation pace continue to be generally satisfactory and are expected to be strengthened as a result of the approval of the Additional Financing (AF) for the Project in the amount of US$10 million. The AF was approved by the Bank on June 19, 2013 and was duly countersigned by the Ministry of Finance of Honduras on July 12, 2013. This AF focuses on improving service quality and financial sustainability of the municipal utilities supported by the Project and will allow the Project to achieve the PDO and its original targets and key indicators. To date, all original Project funds have been allocated/committed and US$24M (80.5% of Project funds) have been Public Disclosure Copy disbursed. During the current year, disbursements have been accelerating steadily since most of the activities originally planned are already contracted. Component 1: The Project is currently supporting six municipal utilities and a regional water utility (Mancomunidad), which is expected to become operational in the coming months, and two new municipalities are being included in the project as part of the Additional Financing to enhance the ongoing decentralization process. Significant efforts have continued in strengthening municipal service providers, with special focus on service quality and sustainability through the provision of technical assistance to municipalities. Some positive results have been obtained, which are registered in the Project indicators. Component 2: Following a longer than expected network assessment phase that was required to align the investment plan with the budget, the execution of the second phase of the performance-based contract for Tegucigalpa Non-Revenue Water Reduction is ongoing. SEFIN, SANAA and the contractor are working on a plan to minimize risks of delays and are assessing the need to extend the duration of Phase 2. Component 3: Under the Institutional Strengthening component (Component 3), ERSAPS continues working on the reform of the tariff regulation and benchmarking activities for the utilities, while CONASA is still finalizing the draft Sector Financing Policy for the WSS sector; almost all consultancies under the TA for the transfer/decentralization in Tegucigalpa are completed, although the date, modality and financing of an actual transfer are still unclear. Locations Country First Administrative Division Location Planned Actual Honduras Departmento de Francisco Morazan Tegucigalpa Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target 7 of the WSS utilities reach cost recovery (ratio Number Value 4.00 4.00 7.00 total revenue / total operative cost equal to Date 31-Dec-2006 31-Jul-2013 31-Dec-2016 one). Comments Baseline's date ranges from 2008 to 2009. Public Disclosure Copy At least 5 of the WSS utilities increase their Number Value 0.00 0.00 5.00 service continuity rating by one category Date 31-Dec-2009 31-Jul-2013 31-Dec-2016 defined by ERSAP#s performance indicators Comments (note: definition on the Category A, B, C, and D on service continuit At least 50% of the SANAA systems financed Percentage Value 0.00 100.00 50.00 under the Project are transferred to the Date 18-May-2007 31-Jul-2013 31-Dec-2016 municipalities. Comments Page 2 of 5 The World Bank Report No: ISR11511 At least 50% of municipal service providers Percentage Value 0.00 50.00 50.00 (non-SANAA WSS systems that are operated Date 31-Jul-2013 31-Jul-2013 31-Dec-2016 directly by municipalities) supported by the Comments Project are converted into autonomous Public Disclosure Copy municipal service providers. CONASA issues the new financial policy of the Text Value No No Yes sector. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments The Financing Policy is under review by CONASA Number of other water service providers that Number Value 0.00 7.00 9.00 the project is supporting Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments Time taken to disburse funds requested by Weeks Value 0.00 0.00 4.00 Government for an eligible emergency Date 31-Jul-2013 31-Jul-2013 31-Dec-2016 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of people in urban areas (covering Number Value 0.00 3786.00 3700.00 semi-urban or small urban areas) provided with Date 18-May-2007 31-Jul-2013 31-Dec-2016 access to improved sanitation under the Comments project. Piped household water connections that are Number Value 0.00 1508.00 2000.00 benefiting from rehabilitation works undertaken Date 18-May-2007 31-Jul-2013 31-Dec-2016 by the project Comments At least 9 design proposals of autonomous Number Value 0.00 7.00 9.00 service providers approved by ERSAPS. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments Public Disclosure Copy 6 of the WSS utilities increase by 20% the ratio Number Value 0.00 5.00 6.00 of revenues per volumetric unit of water Date 18-May-2007 31-Jul-2013 31-Dec-2016 produced. Comments People trained to improve hygiene behavior/ Number Value 0.00 0.00 5000.00 sanitation practices under the proj Date 31-Jul-2013 31-Jul-2013 31-Dec-2016 Comments Page 3 of 5 The World Bank Report No: ISR11511 People trained to improve hygiene behavior/ Number Value 0.00 0.00 3000.00 sanitation practices - female Sub Type Date 31-Jul-2013 31-Jul-2013 31-Dec-2016 Breakdown Comments Public Disclosure Copy Percentage of grievances redressed Percentage Value 0.00 0.00 75.00 satisfactorily by utilities per year Date 31-Jul-2013 31-Jul-2013 31-Dec-2016 Comments At least 6 of the WSS utilities share indicators Number Value 0.00 0.00 6.00 in the regional benchmarking database of Date 31-Jul-2013 31-Jul-2013 31-Dec-2016 IBNET according to their protocols Comments Urban areas covered by the contract increase Text Value C B service continuity by one category Date 31-Jul-2013 31-Jul-2013 31-Dec-2016 Comments Percentage increase of collection per cubic Percentage Value 0.00 18.00 20.00 meter of supplied water to the project area. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments SANAA has at least one regional unit operating Text Value No No Yes under the new model. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments Indicators regarding utilities' performance are Text Value No Yes Yes published by ERSPAS. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments At leat 9 utilities have published their financial Number Value 7.00 9.00 statements in a Website. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments Not available. SANAA / Tegucigalpa has complied with legal Text Value No No Yes requirements for transfer to municipality. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Public Disclosure Copy Comments Cumulative percentage of disbursement Percentage Value 0.00 80.50 100.00 targeted according to disbursement plan is met. Date 18-May-2007 31-Jul-2013 31-Dec-2016 Comments IRM established and ready to provide access Number Value to financial resources to Honduras in case of Date an eligible emergency Comments Data on Financial Performance (as of 16-Jul-2013) Page 4 of 5 The World Bank Report No: ISR11511 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P103881 IDA-43350 Effective 21-Jun-2007 16-Nov-2007 22-Feb-2008 31-Dec-2013 31-Dec-2016 Public Disclosure Copy P103881 IDA-52700 Not Effective 19-Jun-2013 12-Jul-2013 31-Dec-2016 31-Dec-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P103881 IDA-43350 Effective XDR 19.80 19.80 0.00 15.92 3.88 80.00 P103881 IDA-52700 Not Effective XDR 6.70 6.70 0.00 0.00 6.70 0.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History There has been no restructuring to date. Related Projects P144357-HN AF WSS Modernization Page 5 of 5