Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) HN Water and Sanitation Sector Modernization Project (P103881) LATIN AMERICA AND CARIBBEAN | Honduras | Water Global Practice | IBRD/IDA | Specific Investment Loan | FY 2007 | Seq No: 17 | ARCHIVED on 29-Mar-2015 | ISR18481 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:21-Jun-2007 Effectiveness Date:22-Feb-2008 Planned Mid Term Review Date:31-May-2011 Actual Mid-Term Review Date:05-May-2011 Original Closing Date:31-Dec-2013 Revised Closing Date:31-Dec-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed project development objective is to improve the sustainability, efficiency and reliability of Honduras’s water supply and sanitation (WSS) services in the participating municipalities through implementing the Strategic Plan to Modernize the WSS Sector (PEMAPS). Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL 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. Components Name Component 1: Support to medium-size municipalities to create autonomous service providers and invest in efficiency, rehabilitation,:(Cost $21.20 M) Component 2: Tegucigalpa Non-Revenue Water Reduction:(Cost $4.50 M) Component 3: Institutional strengthening of national and regional sector institutions:(Cost $7.20 M) Component 4: Project management:(Cost $1.60 M) Component 5: IRM Contingent Component Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory 3/29/2015 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Unsatisfactory Overall Risk Rating  --  Moderate Implementation Status and Key Decisions This ISR presents the general project situation as of March 9, 2015 and reports on the main activities and project related events occurred from September 2014 to date. During this period, the World Bank team conducted one supervision mission (between September 20-24, 2014) that included visits to the municipalities of Tegucigalpa, Choloma, Siguatepeque, Villanueva, Pimienta, San Manuel, Danli, San Pedro Tutule and Teupacenti. The team held meetings with mayors, council members and officers from the municipal utilities supported by PROMOSAS as well as with the senior officers of ERSAPS, CONASA and SANAA. During the period the WB also participated in technical discussions to support and provide strategic advice to the AMDC for the transfer of the water supply and sanitation systems of the Tegucigalpa Central District. The Project's progress towards the achievement of its Development Objectives and the implementation pace continue to be moderately satisfactory. To date 99% of the original Project funds (IDA – 4335-HN) have been disbursed. Regarding the Additional Finance (IDA 5270-HN) approximately US$2.5M have been committed. Component 1: The Project continues to strengthen the capacities of the six municipal service WSS providers and the regional water utility (Prestador Mancomunado) to improve service quality and financial viability. Project activities are underway in the two selected new municipalities (San Pedro Tutule and Teupasenti) with the design of their offices. During this period, the utilities have continued to implement the recommendations of the Technical Assistance. In Choloma and Siguatepeque the utilities have initiated the construction of the investments activities included in the Immediate Action Plans prepared by the TA consortium. As agreed during the last mission the PIU has carried out a detailed revision of the cost estimates and technical specifications of the capital works proposed by the TA. In parallel the PIU has been following the environmental permitting process (Licencia Ambiental) that the national authority (SERNA) must issue prior to the execution of some specific projects. In addition to the TA on commercial management, client and network cadaster and network sectorization the WB has coordinated through WSP training events on energy efficiency and general management to the Heads of EPS. Also WSP has effectively supported the creation of the Honduran Association of WSS utilities. Representatives of the Honduran utilities participated on a study trip to Mexico coordinated with Mexican association ANEAS and supported by the LAC WOP Program. To strengthen the capacity of PROMOSAS utilities in the fields of transparency claim management the Bank has supported the development and adoption of a common platform for the register of service claims that is publicly accesible. The WSS Regulator ERSAPS has intervened in the design of the interphase, databasea and redresement process. Subject to the results of the ongoing pilot the tool may be scaled up to WSS utilities beyond those supported by PROMOSAS. ERSAPS developed and applied in Siguatepeque a survey methodology to register and map the continuity of service of WSS providers through a combination of field visits and phone surveys. The methodology will be applied in other PROMOSAS municipalities and will support the determination of the water supply continuity indicator (Indicator No. 2) Component 2: The NRW ended on September 2014. All commercial activities and physical works planned under Phase II of the contract, including the provision of a water meter test station, were satisfactorily concluded. The contract results showed significant improvements in service continuity and commercial efficiency in the contract service area. The target set for continuity was only achieved in 93%, while the indicator on revenues/m3 was overachieved. A report on the lessons obtained from the performance based contract was prepared by the Supervision and a video of the pilot experience was produced by the PIU. Component 3: The execution of the activities for the institutional strengthening of the national WSS sector entities (ERSAPS, CONASA and SANAA) are ongoing. In the context of the benchmarking activities led by ERSAPS, PROMOSAS funded a high-level consulting for review and reform of regulations and methodology for calculating fees, for which the ERSAPS elaborated a new regulation which is already in application. Following the workshops and activities carried out by WSP a total of 10 utilities started to report indicators to IBNET. With the assistance of WSP, a final draft of the Financing Policy for the WSS sector was completed by CONASA and it is being build up with the analysis and proposal of alternative financial mechanisms. Under the TA for the transfer/decentralization in Tegucigalpa the consultancy and strategic advisory services were carried out with direct support from WB budget. SANAA and Municipal authorities have prepared the key documents required to complete the transfer of Tegucigalpa’s WS system to the Municipality, the creation of the municipal provider and the strengthening of SANAA as a technical assistance institution. The final dates, modality and financing of the transfer are being discussed at both political and technical levels, among the key actors. The Tegucigalpa Municipal WSS Committee defined the service model scheme, submitted the application for approval to ERSAPS and was granted the authorization to proceed. As agreed during the last mission the PIU prepared a comprehensive and updated register of the studies funded by the program that has been shared with national authorities, SANAA's management, the Municipality of Tegucigalpa and has served the municipal authorities to carry out dialogue with other donors (eg JICA) relative to funding of capital projects and additional institutional strengthening. Overall the Project is in satisfactory compliance with safeguard policies. Regarding fiduciary aspects, the Project Procurement performance was downgraded to Moderately Satisfactory. 3/29/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Substantial Macroeconomic  --  --  Substantial Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Substantial Fiduciary  --  --  Moderate Environment and Social  --  --  Moderate Stakeholders  --  --  Moderate Other  --  --  -- Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  6 of the WSS utilities reach cost recovery (ratio total revenue / total operative cost equal to one). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 4.00 4.00 7.00 Date 31-Dec-2006 31-Aug-2014 31-Aug-2014 31-Dec-2016 3/29/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) PHINDPDOTBL  At least 5 of the WSS utilities increase their service continuity rating by one category defined by ERSAP#s performance indicators (note: definition on the Category A, B, C, and D on service continuit (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Dec-2009 31-Aug-2014 31-Aug-2014 31-Dec-2016 PHINDPDOTBL  At least 50% of the SANAA systems financed under the Project are transferred to the municipalities. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 50.00 Date 18-May-2007 31-Aug-2014 31-Aug-2014 31-Dec-2016 PHINDPDOTBL  At least 50% of municipal service providers (non-SANAA WSS systems that are operated directly by municipalities) supported by the Project are converted into autonomous municipal service providers. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 67.00 67.00 50.00 Date 31-Jul-2013 31-Aug-2014 31-Aug-2014 31-Dec-2016 PHINDPDOTBL  CONASA issues the new financial policy of the sector. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDPDOTBL  Number of other water service providers that the project is supporting (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 9.00 3/29/2015 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDPDOTBL  Time taken to disburse funds requested by Government for an eligible emergency (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Jul-2013 31-Aug-2014 09-Mar-2015 31-Dec-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Number of people in urban areas (covering semi-urban or small urban areas) provided with access to improved sanitation under the project. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3786.00 3786.00 3700.00 Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  Piped household water connections that are benefiting from rehabilitation works undertaken by the project (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1907.00 1907.00 2000.00 Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 3/29/2015 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) PHINDIRITBL  At least 6 design proposals of autonomous service providers approved by ERSAPS. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 9.00 Date 18-May-2007 31-Aug-2014 31-Aug-2014 31-Dec-2016 PHINDIRITBL  5 of the WSS utilities increase by 20% the ratio of revenues per volumetric unit of water produced. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 6.00 Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  People trained to improve hygiene behavior/sanitation practices under the proj (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 710.00 3879.00 5000.00 Date 31-Jul-2013 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  People trained to improve hygiene behavior/sanitation practices - female (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 245.00 1916.00 3500.00 Date 31-Jul-2013 31-Aug-2014 31-Aug-2014 31-Dec-2016 3/29/2015 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) PHINDIRITBL  Percentage of grievances redressed satisfactorily by utilities per year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 75.00 Date 31-Jul-2013 31-Aug-2014 31-Aug-2014 31-Dec-2016 PHINDIRITBL  At least 6 of the WSS utilities share indicators in the regional benchmarking database of IBNET according to their protocols (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 10.00 6.00 Date 31-Jul-2013 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  Urban areas covered by the contract increase service continuity by one category (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- C C B Date 31-Jul-2013 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  Percentage increase of collection per cubic meter of supplied water to the project area. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 25.00 20.00 Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 3/29/2015 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) PHINDIRITBL  SANAA has at least one regional unit operating under the new model. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  Indicators regarding utilities' performance are published by ERSAPS. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  At leat 5 utilities have published their financial statements in a Website. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 7.00 7.00 9.00 Date 18-May-2007 31-Aug-2014 31-Aug-2014 31-Dec-2016 PHINDIRITBL  SANAA / Tegucigalpa has complied with legal requirements for transfer to municipality. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes, the AMDC has Value No No Yes complied Date 18-May-2007 31-Aug-2014 31-Aug-2014 31-Dec-2016 3/29/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) PHINDIRITBL  Cumulative percentage of disbursement targeted according to disbursement plan is met. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.80 99.00 100.00 Date 18-May-2007 31-Aug-2014 09-Mar-2015 31-Dec-2016 PHINDIRITBL  IRM established and ready to provide access to financial resources to Honduras in case of an eligible emergency (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 0.00 0.00 -- Date -- 31-Aug-2014 09-Mar-2015 -- Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P103881 IDA-43350 Effective XDR 19.80 19.80 0.00 19.56 0.24 99% P103881 IDA-52700 Effective XDR 6.70 6.70 0.00 0.65 6.05 10% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P103881 IDA-43350 Effective 21-Jun-2007 16-Nov-2007 22-Feb-2008 31-Dec-2013 31-Dec-2016 P103881 IDA-52700 Effective 19-Jun-2013 12-Jul-2013 09-Oct-2013 31-Dec-2016 31-Dec-2016 Cumulative Disbursements 3/29/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report HN Water and Sanitation Sector Modernization Project (P103881) Restructuring History There has been no restructuring to date. Related Project(s) P144357-HN AF WSS Modernization 3/29/2015 Page 10 of 10 Public Disclosure Copy