The World Bank
Urban Water and Sanitation Project (P117365)
REPORT NO.: RES41193
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
URBAN WATER AND SANITATION PROJECT
APPROVED ON APRIL 26, 2011
TO
REPUBLIC OF NIGER, MINISTRY OF PLANNING
May 11, 2020
WATER
AFRICA
Regional Vice President: Hafez M. H. Ghanem
Country Director: Soukeyna Kane
Regional Director: Simeon Kacou Ehui
Practice Manager/Manager: Yogita Mumssen
Task Team Leader(s): Taibou Adamou Maiga
The World Bank
Urban Water and Sanitation Project (P117365)
ABBREVIATIONS AND ACRONYMS
CD Country Director
DPL Development Policy Lending
EA Environmental Assessment
ESIA Environmental and Social Impact Assessment
IDA International Development Association
PDO Project Development Objective
PEAMU Projet Eau et Assainissement en Milieu Urbain
SEEN Societe d’Exploitation des Eaux du Niger
SPEN Societe de Patrimoine des Eaux du Niger
The World Bank
Urban Water and Sanitation Project (P117365)
BASIC DATA
Product Information
Project ID Financing Instrument
P117365 Investment Project Financing
Original EA Category Current EA Category
Partial Assessment (B) Partial Assessment (B)
Approval Date Current Closing Date
26-Apr-2011 30-Jun-2020
Organizations
Borrower Responsible Agency
Ministry of Hydraulic and Sanitation,Cellule de
Republic of Niger, Ministry of Planning Coordination du PEAMU,Societe de Patrimoine des Eaux
du Niger (SPEN)
Project Development Objective (PDO)
Original PDO
The Objective of the Project is to increase access to sustainable water supply services and to improved sanitation
services in some urban areas in the recipient' s territory.
OPS_TABLE_PDO_CURRENTPDO
Summary Status of Financing
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IDA-58810 30-Jun-2016 27-Jul-2016 02-Feb-2017 30-Jun-2020 10.00 4.21 5.51
IDA-D1280 30-Jun-2016 27-Jul-2016 02-Feb-2017 30-Jun-2020 60.00 40.21 18.35
IDA-48930 26-Apr-2011 12-May-2011 01-Sep-2011 30-Jun-2020 90.00 83.79 0
The World Bank
Urban Water and Sanitation Project (P117365)
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING
SUMMARY OF PROJECT STATUS
1. The purpose of the restructuring is: (i) to revise the closing date of the project by extending for six additional months, (ii) to
revise the results framework by changing one PDO indicator and considering indicators related to COVID-19 response supported
by the project. Consequently, disbursement estimates and project implementation schedule have been adjusted to reflect the
proposed new closing date.
2. The project is rated “moderately satisfactory” for Project Development Objective (PDO) and “satisfactory” for
implementation progress (IP), with all the contracts awarded and under implementation and solid progress on "urban
sanitation” and “urban water supply” components. Achievement of PDO indicators is also showing positive trend. However,
due to the recent COVID pandemic, there have been delays on the supply of materials as discussed in more detail below. The
project was on a good track to restore the financial equilibrium because it has financed the necessary studies needed to support
the prior actions and triggers of water reform supported by the 2019 and 2020 Development Policy Lending (DPO). This DPO
supports water sector reform to restore financial stability and to strengthen the institutional framework of the water sector.
The institutional framework (i.e. the setup of the independent regulation body and the appointment of its director) and the
financial stability of the sector (i.e. arrears payment according to the arrears clearance plan and tariff adjustment plan) were on
good track to improve even after the project closure as the DPO would continue to support the water sector reform. Yet the
financial equilibrium of the urban water sector is not fully restored and the COVID response has further exacerbated financial
pressure on both the Government and water utilities. The full restoration of its the financial equilibrium is unlikely to happen
before the project current closure date. The disbursement rate is 85% and the project is expected to fully disburse.
Progress by component:
3. Component 1: Urban Water Supply: The project has surpassed the outcome indicators under this component, including
providing 893,500 additional people with access to water supply, against a target of 849,250 additional people originally
planned. All contracts for planned activities have been awarded and are under implementation, and all civil works are expected
to be delivered before the proposed new project closing date of December 31, 2020. . Civil works on the sites of Agadez, Tillabery
and Zinder are expected to end by June 30, 2020. However, works involving large supply of steel pipes, electromechanical
equipment and spare parts will be delayed and expected to be delivered by end June or early July 2020.
4. Component 2: Urban Sanitation: all contracts under this component are awarded. The civil works for school latrines faced
implementation issues due to the security problems in the region of Tillabery. The former sites were changed to places where
security can allow works implementation. The completion of the second fecal sludge treatment plant is delayed on
The World Bank
Urban Water and Sanitation Project (P117365)
implementation but can be achieved with additional time. The project’s result targets are on track to be achieved or even
exceeded by June 2020.
5. Component 3: Institutional Strengthening and Capacity Building: the project has supported the arrears audit to provide
the government, Societé d’Exploitation des Eaux du Niger (SEEN), and Societé de Patrimoine des Eaux du Niger (SPEN) an action
plan to clear the arrears by November 2021. It has also maintained constant dialogue with, and financed investments planned
in the SPEN performance contract with the government. The arrears clearance plan was implemented correctly from September
2019 to March 2020. The Government pays every month 230 million XOF to SEEN, that in turn pays SPEN. Regarding the tariff
adjustment, the project is financing a study to update the 2012 tariff study and to conduct a poverty and social impact
assessment (PSIA) to provide the new regulation body with key elements for decision making to establish tariff adjustment plan
based on a cost-coverage approach methodology. These two studies are complementing the DPO support to reinforce the water
sector reform in Niger. The project is also financing capacity building activities and rehabilitation works to reduce the
Government’s water bill. This will allow on time payment and substantial reduction of the Government’s monthly water bills.
RATIONALE FOR RESTRUCTURING
6. COVID-19 related delays and the need for extension of the implementation period. The project is experiencing material
supply shortages in five out of ten contracts due to the COVID-19 pandemic. Steel pipes, spare parts and fittings are ordered in
Europe, China and India, depending on contractors, and their supply was delayed due to pandemic related disruptions. During
the virtual implementation support mission that took place from March 23 to April 3, 2020, the team was informed that suppliers
continue working but at limited capacity, therefore contractors and suppliers agreed on new supply schedules. It is anticipated
that all pipes, spare parts and electronic equipment will be delivered in Niamey by end June or early July 2020. Based on the
mission assessment, it will require an additional six months to implement these contracts, therefore an extension of the closing
date is being sought.
7. Niger is exposed to multiple challenges adversely impacting its development. These challenges include: (i) regional
insecurity and violent extremist groups that threaten stability, fuel pre-existing tensions and cause population displacement
including refugees; (ii) high population growth and a large population of youth with few economic opportunities; (iii) an
economy which, despite an improved macro-fiscal situation, remains exposed to multiple external shocks due to dependency
on agriculture and extractives; (iv) increasing poverty, especially in rural areas; and (v) deep inequalities, particularly gender
inequalities. On the other hand, in addition to the security situation in the country which swallows up a large part of the
government available resources, the COVID-19 crisis further complicates the already precarious financial and economic
situation. Niger is also preparing to organize elections during the year 2021. In these rather complicated circumstances, it is not
realistic to make a tariff adjustment necessary to restore the financial balance of the sector.
Project’s Critical support to the Government of Niger to combat COVID-19. To support WASH-related activities for the
country's COVID-19 contingency plan, the Project will use some savings made as a result of favorable US dollar exchange rate
and competitive bidding undertaken throughout the project’s life. With these savings, the project is undertaking the following
additional activities, which are consistent with the project’s existing design:
(i) under Component 1, support to water utilities, SPEN/SEEN, to ensure the continuity of service by financing
necessary pipes, fittings and works implantation for the management of water shortage plan to prioritize peripheral
areas with poor access to utilities network;
(ii) under Components 1 and 2, supply water and hygiene facilities in health centers to support the Ministry of Health
to complement the COVID project (P173846); and,
The World Bank
Urban Water and Sanitation Project (P117365)
(iii) under Components 2 and 3, support the Ministry of Water and Sanitation to help with hygiene kits and
communication in line with the government strategy.
8. As these activities fall within the allowable activities of the project’s scope, and because of the savings available within the
project, no restructuring of the project design is needed. However, these additional activities will be captured under the revised
targets for existing indicators and a couple of new indicators. The project has delivered the audit report as per the requirements
every year, and there is currently no outstanding report under the project.
DESCRIPTION OF PROPOSED CHANGES
9. Extension of the closing date. To retrofit for the materials delay as discussed above, the project closing date will be
extended by six months from June 30, 2020 to December 31, 2020.
10. Revised project’s results framework. To capture the COVID-19 response and to realistically capture achievable progress on
the financial situation of the sector, it is proposed to revise the project’s results framework as follows:
(i) Revision of one PDO indicator: the indicator “Restoration of the financial equilibrium of the urban water sector” is
revised as “Water sector financial equilibrium improved”. The reason of this change is that the “restoration of the
financial equilibrium of the urban water sector” requires tariff adjustment which is not achievable in the shorter
terms knowing the difficult country context. However, the water sector financial equilibrium can be improved. For
the year 2020, it is expected 5.55 billion XOF payment to water utilities from the government; this payment
represents the arrears clearance according to the clearance plan and payment of active water bills. The baseline is
25% and the target is 80% of the total amount. In comparison, full restoration of the financial equilibrium presumed
13.5% as original target.
(ii) Addition of two intermediate outcome indicators to capture COVID-19 response: (a) Health centers provided with
water connections (25); and (b) number of hygiene packages delivered in schools, health centers and refugees’
sites (15,000).
II. SUMMARY OF CHANGES
Changed Not Changed
Results Framework ✔
Loan Closing Date(s) ✔
Disbursement Estimates ✔
Implementation Schedule ✔
Implementing Agency ✔
The World Bank
Urban Water and Sanitation Project (P117365)
DDO Status ✔
Project's Development Objectives ✔
PBCs ✔
Components and Cost ✔
Cancellations Proposed ✔
Reallocation between Disbursement Categories ✔
Disbursements Arrangements ✔
Overall Risk Rating ✔
Safeguard Policies Triggered ✔
EA category ✔
Legal Covenants ✔
Institutional Arrangements ✔
Financial Management ✔
Procurement ✔
Other Change(s) ✔
Economic and Financial Analysis ✔
Technical Analysis ✔
Social Analysis ✔
Environmental Analysis ✔
IV. DETAILED CHANGE(S)
OPS_DETAILEDCHANGES_LOANCLOSING_TABLE
LOAN CLOSING DATE(S)
Original Revised Proposed Proposed Deadline
Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal
Applications
31-Dec-2016, 30-
IDA-48930 Effective 31-Dec-2015 30-Jun-2020 30-Oct-2020
Jun-2020
IDA-58810 Effective 30-Jun-2020 31-Dec-2020 30-Apr-2021
IDA-D1280 Effective 30-Jun-2020 31-Dec-2020 30-Apr-2021
The World Bank
Urban Water and Sanitation Project (P117365)
OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE
DISBURSEMENT ESTIMATES
Change in Disbursement Estimates
Yes
Year Current Proposed
2011 0.00 0.00
2012 7,828,600.48 7,828,600.48
2013 5,014,647.70 5,014,647.70
2014 15,749,323.43 15,749,323.43
2015 25,772,162.36 25,772,162.36
2016 21,121,995.47 21,121,995.47
2017 17,905,380.31 17,905,308.31
2018 34,315,424.60 10,379,825.76
2019 28,856,152.54 15,232,997.36
2020 10,646,018.45 34,995,140.00
.
The World Bank
Urban Water and Sanitation Project (P117365)
.
Results framework
COUNTRY: Niger
Urban Water and Sanitation Project
Project Development Objectives(s)
The Objective of the Project is to increase access to sustainable water supply services and to improved sanitation services in some urban areas in the
recipient' s territory.
Project Development Objective Indicators by Objectives/ Outcomes
RESULT_FRAME_TBL_PDO
Indicator Name PBC Baseline End Target
Increase access to sustainable water services in some urban areas in the recipient's territory
Number of people in urban areas provided with access to
0.00 849,250.00
Improved Water Sources under the project (Number)
Direct project beneficiaries (Number) 0.00 949,250.00
Female beneficiaries (Percentage) 0.00 52.00
Water sector financial equilibrium improved (Percentage) 25.00 80.00
Rationale:
Revision of one PDO indicator: the indicator “Restoration of the financial equilibrium of the urban water sector” is revised
as “Water sector financial equilibrium improved”. The reason of this change is that the “restoration of the financial
equilibrium of the urban water sector” requires tariff adjustment which is not achievable in the shorter terms knowing the
Action: This indicator has been Revised difficult country context. However, the water sector financial equilibrium can be improved. For the year 2020, it is expected
5.55 billion XOF payment to water utilities from the government; this payment represents the arrears clearance according
to the clearance plan and payment of active water bills. The baseline is 25% and the target is 80% of the total amount. In
comparison, full restoration of the financial equilibrium presumed 13.5% as original target.
Increase access to improved sanitation services in some urban areas in the recipienté territory
The World Bank
Urban Water and Sanitation Project (P117365)
RESULT_FRAME_TBL_PDO
Indicator Name PBC Baseline End Target
Number of students provided with access to appropriate
0.00 86,940.00
sanitation facilities in their schools under the project (Number)
PDO Table SPACE
Intermediate Results Indicators by Components
RESULT_FRAME_TBL_IO
Indicator Name PBC Baseline End Target
Urban water supply
Improved community water points constructed or rehabilitated
0.00 953.00
under the project (Number)
New piped household water connections that are resulting from
0.00 61,100.00
the project intervention (Number)
People with access to enhanced water supply services under the
0.00 100,000.00
project (Number)
Health centers provided with water connections (Number)
0.00 25.00
(Number)
Rationale:
New water points will be provider in the health center to reinforce hygiene. these water points/connection are part of the
Action: This indicator is New
covid response.
Urban Sanitation
New school latrines constructed under the project (Number) 0.00 3,164.00
Public sanitation facilities constructed under the project
0.00 20.00
(Number)
The World Bank
Urban Water and Sanitation Project (P117365)
RESULT_FRAME_TBL_IO
Indicator Name PBC Baseline End Target
Hygiene packages delivered in schools, health centers and
0.00 15,000.00
refugees’ sites (Number)
Rationale:
This indicator measure the number of hygiene packages delivered in health centers, refugees sites and schools to respond to
Action: This indicator is New
COVID crisis.
Institutional strengthening and capacity building
Satisfactory complaints resolution by the service provider
80.00 98.00
(Percentage)
Beneficiaries who know at least two of their responsibilities
0.00 75.00
regarding their access to water (Percentage)
IO Table SPACE
The World Bank
Urban Water and Sanitation Project (P117365)