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: 18 | ARCHIVED on 12-Oct-2015 | ISR20860 | 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 10/12/2015 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 Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions This ISR presents the general project situation as of September 21, 2015 and reports on the main activities and project related events occurred from April 2015 to date. During this period, the World Bank team conducted one supervision mission (between April 27-30, 2015) that included visits to the municipalities of Tegucigalpa, Choloma, Siguatepeque, Villanueva, Pimienta, San Manuel, Danli, San Pedro Tutule and Comayagua. 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$4.1M have been committed. A project implementation support mission is currently being carried out (as of September 21). During the ongoing mission the WB team carry out a comprehensive review of project progress in all components, including site visits to five municipalities and progress review meetings with all the beneficiary institutions. The mission findings and plan of action that team expects to agree with the Government of Honduras by the mission end date will be documented in the Aide Memoire and will be documened in an updated ISR. 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 support from the the Technical Assistance 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. The improvements to SANAA's training center in Siguatepeque, financed under the Project, were completed thus allowing SANAA and other sector institutions to carry out capacity building activities at the center. As of September 25, 2015 the Project is in satisfactory compliance with safeguard policies and has interesting potential and plans for socio- environmental value added during the remaining implementation period. Regarding fiduciary aspects, the Project Procurement performance maintains the Satisfactory rating.Regarding fiduciary aspects, the Project Procurement performance maintains the Satisfactory rating. 10/12/2015 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  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators 10/12/2015 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  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 5.00 7.00 Date 31-Dec-2006 31-Aug-2014 21-Sep-2015 31-Dec-2016 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 21-Sep-2015 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 21-Sep-2015 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 21-Sep-2015 31-Dec-2016 PHINDPDOTBL  CONASA issues the new financial policy of the sector. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- Y Y 10/12/2015 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 09-Mar-2015 21-Sep-2015 31-Dec-2016 Comments As reported in the Aide Memooir of the April 2015 mission the Executive Secretariat of CONASA completed the WSS Sector Financial Policy prepared through a participatory process. The proposed Financial Policy was submitted for approval of CONASA's Steering Commitee (Consejo Directivo). The Consejo Directivo is expected to meet October 20, 2015 to formalize the Policy's Approval. 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 Date 18-May-2007 09-Mar-2015 21-Sep-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 09-Mar-2015 21-Sep-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 09-Mar-2015 21-Sep-2015 31-Dec-2016 10/12/2015 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  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 09-Mar-2015 21-Sep-2015 31-Dec-2016 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 10.00 9.00 Date 18-May-2007 31-Aug-2014 21-Sep-2015 31-Dec-2016 Comments The number of water utilities that have a Dictamen of its management model (Modelo de Gestion) approved by the Regulator (ERSAPS) is 10 (9 EPS beneficiaries of PROMOSAS + 1 Alcaldia Muncipal del Distrito Central/Tegucigalpa) The dictamen granted to the AMDC is attributable to PROMOSAS. 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 09-Mar-2015 21-Sep-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 3879.00 12757.00 5000.00 Date 31-Jul-2013 09-Mar-2015 21-Sep-2015 31-Dec-2016 10/12/2015 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  People trained to improve hygiene behavior/sanitation practices - female (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1916.00 6328.00 3500.00 Date 31-Jul-2013 31-Aug-2014 21-Sep-2015 31-Dec-2016 PHINDIRITBL  Percentage of grievances redressed satisfactorily by utilities per year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 86.40 75.00 Date 31-Jul-2013 31-Aug-2014 21-Sep-2015 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 10.00 6.00 6.00 Date 31-Jul-2013 09-Mar-2015 21-Sep-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 B B Date 31-Jul-2013 09-Mar-2015 21-Sep-2015 31-Dec-2016 Comments El Programa de reduccion de agua que no genera ingresos (ANI) en Tegucigalpa finalizo en 2014 10/12/2015 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  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 09-Mar-2015 09-Mar-2015 31-Dec-2016 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 Yes Yes Date 18-May-2007 09-Mar-2015 21-Sep-2015 31-Dec-2016 Comments As of September 2015 SANAA was providing Technical Assistance under the new model, as part of the PROMOSAS activitivies, through its Technical Division to the Municipalities of Taulabe, Villa de San Antonio and Danli. 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 09-Mar-2015 21-Sep-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 21-Sep-2015 31-Dec-2016 10/12/2015 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  SANAA / Tegucigalpa has complied with legal requirements for transfer to municipality. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes, the AMDC has Yes, the AMDC has Value No Yes complied complied Date 18-May-2007 31-Aug-2014 21-Sep-2015 31-Dec-2016 PHINDIRITBL  Cumulative percentage of disbursement targeted according to disbursement plan is met. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 99.00 99.00 100.00 Date 18-May-2007 09-Mar-2015 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 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- -- Y Y Date -- 09-Mar-2015 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 19.80 0.00 100% P103881 IDA-52700 Effective XDR 6.70 6.70 0.00 1.03 5.67 15% Key Dates (by loan) 10/12/2015 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) 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 Restructuring History There has been no restructuring to date. Related Project(s) P144357-HN AF WSS Modernization 10/12/2015 Page 10 of 10 Public Disclosure Copy