Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00004474 INTERIM IMPLEMENTATION COMPLETION AND RESULTS REPORT TF094792 ON A GRANT IN THE AMOUNT OF US$ 74.4 MILLION TO THE REPUBLIC OF INDONESIA FOR A PAMSIMAS SUPPORT TRUST FUND June 14, 2018 Water Global Practice East Asia And Pacific Region CURRENCY EQUIVALENTS Exchange Rate Effective June 14, 2018 Currency Unit = Rupiah IDR 13,942 = US$1 FISCAL YEAR July 1 - June 30 Regional Vice President: Victoria Kwakwa Country Director: Rodrigo A. Chaves Senior Global Practice Director: Guang Zhe Chen Practice Manager: Sudipto Sarkar Task Team Leader(s): George Soraya/Dea Widyastuty ICR Main Contributor: Berta Macheve/Dea Widyastuty/Ariel Glenesk Shepherd ABBREVIATIONS AF Additional Funding APBD Anggaran Pendapatan dan Belanja Daerah (Local Government Revenue and Expenditure) BETF Bank Executed Trust Fund BAPPENAS Badan Perencanaan Pembangunan Nasional (National Planning Board) BP-SPAM Badan Pengelola–Sistem Penyediaan Air Minum (Management Board– Drinking Water Supply System) CAP Community Action Plan CDD Community Driven Development CLTS Community-Led Total Sanitation CPMU Central Project Management Unit CPS Country Partnership Strategy DFAT Department of Foreign Affairs and Trade DG Director General DID Disability Inclusive Development EIRR Economic Internal rate of return FY Fiscal Year GA Grant Agreement GoA Government of Australia GoI Government of Indonesia IBRD The International Bank for Reconstruction and Development ISR Implementation Status and Results IDR Indonesian Rupiah ISR Implementation Status Report JMP Joint Monitoring Program KPS Sub-village user groups KKM Kelompok Keswadayaan Masyarakat (Village Implementation Team) LG Local Government KSM Kelompok Swadaya Masyarakat (community group) M&E Monitoring and Evaluation MDG Millennium Development Goal MIS Management Information System MoHA Ministry of Home Affairs MPA Methodology for Participatory Assessment MPWH Ministry of Public Works and Housing ODF Open-defecation Free PAD Project Appraisal Document PAMSIMAS Penyediaan Air Minum dan Sanitasi Berbasis Masyarakat (Community Based Water Supply and Sanitation) PDAM Perusahaan Daerah Air Minum (local government water utility) PDO Project Development Objective RPJM-N Rencana Pembangunan Jangka Menengah-Nasional (National Medium Term Development Plan) UPP Urban Poverty Project USD United States Dollar PHAST Participatory Health and Sanitation Transformation POKJA Working Group RETF Recipient Executed Trust Fund RWSS Regional Water Sanitation Sector STBM Sanitasi Total Berbasis Masyarakat (Community-Led Total Sanitation) SUSNES National Socio-Economic Survey TF Trust Fund WASH Water, Sanitation and Health WSES Water Supply and Environmental Sanitation WSS Water Supply and Sanitation WS(S)LIC Water (Supply) and Sanitation for Low-Income Communities TABLE OF CONTENTS ABBREVIATIONS ...................................................................................................................... DATA SHEET ...........................................................................................................................1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) ..................................... 13 II. OUTCOME .................................................................................................................... 14 A. RELEVANCE OF PDOs ............................................................................................................ 14 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 16 C. EFFICIENCY ........................................................................................................................... 21 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 22 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 23 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 25 A. KEY FACTORS DURING PREPARATION ................................................................................... 25 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 27 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 28 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 28 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 29 C. BANK PERFORMANCE ........................................................................................................... 31 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 33 V. LESSONS AND RECOMMENDATIONS ............................................................................. 34 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 36 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 45 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 47 ANNEX 4: SUMMARY OF RAPID BENEFICIARY STUDY (INITIAL RESULTS) ............................... 49 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 52 ANNEX 6: PROJECT AND GRANT COMPONENTS ................................................................... 53 ANNEX 7. SUPPORTING DOCUMENTS .................................................................................. 60 The World Bank PAMSIMAS Support Trust Fund (P116236) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P116236 PAMSIMAS Support Trust Fund Country Financing Instrument Indonesia Specific Investment Loan Original EA Category Revised EA Category Partial Assessment (B) Related Projects Relationship Project Approval Product Line Additional Financing P147365-Additional 23-Apr-2014 Recipient Executed Activities Financing PAMSIMAS Support Trust Fund Organizations Borrower Implementing Agency DG Disease Control and Environmental Health, Ministry of DG Human Settlements, Ministry of Public Works Health, DG Regional Development, Ministry of Home Affairs, DG Village Government, Ministry of Home Affairs Project Development Objective (PDO) Original PDO To increase the number of low-income rural and peri-urban populations accessing improved water and sanitation facilities and practicing improved hygiene behaviors as part of the Borrower's efforts to achieve WSS-MDGs, through programmatic mainstreaming and scaling-up of a nationwide community-driven approach. Page 1 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Revised PDO To increase the number of under-served and low income rural and peri-urban populations accessing improved and sustained water andsanitation services and practicing improved hygiene behaviors as part of the Borrower’s efforts to achieve WSS-MDG Targets, throughprogrammatic mainstreaming and scaling-up of a nationwide community- driven approach. FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 74,383,614 66,292,145 66,292,145 TF-94792 Total 74,383,614 66,292,145 66,292,145 Non-World Bank Financing Borrower 0 0 0 Total 0 0 0 Total Project Cost 74,383,614 66,292,145 66,292,145 KEY DATES FIN_TABLE_DAT Approval Effectiveness MTR Review Original Closing Actual Closing A 26-May-2009 10-Sep-2009 27-Sep-2010 31-Dec-2012 30-Sep-2017 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial Page 2 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 29-Mar-2011 Moderately Satisfactory Moderately Satisfactory 5.10 02 13-Apr-2012 Satisfactory Satisfactory 22.03 03 28-Mar-2013 Satisfactory Satisfactory 32.43 04 23-Oct-2013 Satisfactory Satisfactory 39.35 05 27-Jun-2014 Satisfactory Moderately Satisfactory 43.90 06 25-Dec-2014 Satisfactory Moderately Satisfactory 55.45 07 18-Jun-2015 Satisfactory Satisfactory 56.20 08 17-Dec-2015 Satisfactory Satisfactory 62.67 09 18-Jun-2016 Satisfactory Moderately Satisfactory 64.02 10 23-Dec-2016 Satisfactory Moderately Satisfactory 69.02 11 02-Jun-2017 Satisfactory Moderately Satisfactory 69.02 SECTORS AND THEMES Sectors Major Sector/Sector (%) Water, Sanitation and Waste Management 100 Sanitation 40 Water Supply 40 Public Administration - Water, Sanitation and Waste 20 Management Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Social Development and Protection 33 Social Inclusion 33 Participation and Civic Engagement 33 Page 3 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Human Development and Gender 17 Health Systems and Policies 17 Health Service Delivery 9 Adolescent Health 4 Child Health 4 Urban and Rural Development 50 Urban Development 17 Urban Infrastructure and Service Delivery 17 Rural Development 33 Rural Infrastructure and service delivery 33 ADM STAFF Role At Approval At ICR Regional Vice President: Jeffrey S. Gutman Victoria Kwakwa Country Director: Joachim von Amsberg Rodrigo A. Chaves Senior Global Practice Director: Tamar Manuelyan Atinc Guang Zhe Chen Practice Manager: Sonia Hammam Sudipto Sarkar Task Team Leader(s): George Soraya, Dea Widyastuty George Soraya Berta Adelaide Da Silva ICR Contributing Author: Macheve Page 4 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. Water Supply and Sanitation for Low Income Communities (WSSLIC) 1. In 1990, about 70% of the population of Indonesia had access to an improved source of drinking water, as defined by WHO-UNICEF Joint Monitoring Program (JMP)1. Access was substantially lower in rural areas (61%) than in urban areas (91%). Moreover, only 2% of the rural population had access to a piped water connection on their premises. The remaining 59% had access to other sources that were classified as “improved”, but that would not necessarily provide safe drinking water (such as protected dug wells, boreholes, rainwater collection and standpipes). In the same year, about 21% of the rural population had access to some form of improved sanitation, which was substantially lower than access in urban areas (56%). The economic cost of limited access to improved water supply and sanitation (WSS) facilities largely consist of: (i) the monetary costs of water purchases and, (ii) the value of time needed to fetch water, and (iii) health costs. These costs were deemed substantial and, more importantly, were disproportionately borne by the poor. In 1992, the Government of Indonesia (GoI) requested the World Bank (hereinafter also referred to as “the Bank”) to help prepare and finance a project aimed at providing access to water supply and sanitation facilities to poor communities in rural and peri-urban areas. This project was called the Water Supply and Sanitation for Low Income Communities Project (P003990) (WSSLIC-1). It was implemented during 1993- 1999 with the Ministry of Health and the National Planning Board (BAPPENAS) as implementing agencies, and covered about 2,000 villages in six of Indonesia’s 27 provinces that existed at the time. 2. WSLIC-2. Upon completion of WSSLIC-1 in 1999, the political landscape in Indonesia had changed considerably. The country was recovering from the financial crisis that affected most of Southeast Asia, and the newly democratically elected Government had issued a national development program (Program Pembangunan Nasional or PROPENAS 2000-2004) that aimed at economic recovery, improved governance and increased public participation. To help achieve these objectives in the water supply and sanitation sector, the Bank assisted GoI with the implementation of the Second Water and Sanitation for Low Income Communities Project (P059477) (WSLIC-2). Previous community-driven development (CDD) projects in Indonesia such as Kampung Improvement Project (KIP), PNPM, the Kecamatan Development Projects (P092019) (KDP) I, II and III and Urban Poverty Project (P055821) (UPP) I and II were praised for delivering a high economic rate of return and a positive impact on the quality of life of beneficiaries2. In the second phase, WSLIC was explicitly based on a community-driven development (CDD) approach, adopting a decentralized, community demand-responsive model that channeled financial resources and technical assistance directly to village management structures. At the same time, the Community-Led Total 1 WHO-UNICEF Joint Monitoring Program (JMP) definition of Access to safe drinking water is the percentage of the population using “improved” water supply services, which implies the availability of at least 20 liters per person per day from an “improved” source, within 1 Kilometer of the user’s dwelling. “Improved” water sources are: Household connection/ Public standpipe/ Borehole/ Protected dug well/ Protected spring/ Rainwater collection. 2 Based on the last World Bank Implementation Supervision Rating (ISR) at the time, ratings for these projects was as follows: WSLIC “satisfactory”, Village Infrastructure Project “highly satisfactory” and Kecamatan Development Project “satisfactory”. Page 5 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Sanitation (CLTS) approach which focused on behavior change rather than infrastructure, popular in other Asian countries at the time, was also adopted by WSLIC-2. The geographical scope of the project was also expanded to over 2,800 villages in eight provinces. The implementing agency was the Ministry of Health. 3. PAMSIMAS. The Third Water Supply and Sanitation for Low Income Communities Project is better known by its Indonesian acronym PAMSIMAS (Penyediaan Air Minum dan Sanitasi Berbasis Masyarakat, which means “community-based provision of drinking water and sanitation”). PAMSIMAS is referred to in this report as the (parent) “Project”. Building on WSLIC-2, PAMSIMAS was a vehicle to help scale-up the operationalization of national sector Policy Framework for community-based supply and sanitation (WSS) and, at the same time, help to achieve the Millennium Development Goal (MDG) targets, specifically Target 7C: “By 2015, halve the proportion of people without access to safe drinking water and basic sanitation” as outlined in the National Medium-Term Development Plan (RPJMN 2010-2014). In 2008, the GoI launched a parallel national program targeting sanitation, Sanitasi Total Berbasis Masyarakat (STBM)3, aiming at improved environmental health by integrating behavioral change with provision of adequate sanitation and water supply and health-related interventions that includes the whole community. The PAMSIMAS Project, as a continuation of WSLIC-2, initially covered almost 4,000 additional villages in 15 provinces in the period 2006-2014 (Table 1). The Ministry of Public Works and Housing (MPWH) was appointed as the implementing agency, primarily because of its responsibility for the strategic development of the WSS sectors but also because of its considerable experience with implementing other CDD programs (notably UPP I and II). PAMSIMAS did not only address GoI’s development objectives, but was also fully consistent with the Bank’s Country Assistance Strategy (CAS) for 2004-2007, which aimed at sustaining economic recovery, promoting broad-based growth, and delivering better public services for the poor. PAMSIMAS was also closely aligned with the World Bank’s Country Partnership Strategy (CPS) for 2008-2012, in particular improved access to water and sanitation, Community-Driven Development (CDD), support to strengthening local government in WSS sector management and poverty inclusive implementation approaches are strongly aligned with the Pro-Poor pillar. In Year 2013, PAMSIMAS was expanded under a First Additional Financing for the Third Water Supply and Sanitation for Low Income Communities (P129486), or later known as PAMSIMAS II, targeting 5,456 additional villages and was scaled up to 32 provinces (Table 1). PAMSIMAS II will be closing in November 2018. 4. PAMSIMAS III (P154780). The National Medium-Term Development Plan (RPJMN 2015-2019) aims to achieve universal access to water and sanitation by year 2019. This constitutes about 9.7 million additional house connections for water in rural areas and about 45,000 villages adopting behavior change through the STBM approach. In December 2016, to support the achievement of RPJMN for rural water and sanitation, the Government of Indonesia requested the Bank to develop a Second Additional Financing to support the Third Water Supply and Sanitation for Low Income Communities, or PAMSIMAS III covering almost 15,000 additional villages in 33 provinces until December 31, 2021. Table 1 - PAMSIMAS History 3 Sanitasi Total Berbasis Masyarakat (STBM) program (in English Community-Led Total Sanitation or CLTS) was developed in accordance with the Ministerial Decree of the Minister of Health, Republic of Indonesia No 852/Menkes/SK/IX/2008, dated 9 September 2008. This program is comprised of five pillars that aim to: (i) end Open Defecation; (ii) promote hand washing with Soap; (iii) address household safe water management; (iv) address household wastewater management; and (v) address solid waste management. Page 6 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) PAMSIMAS (P085375) WSSLIC-1 WSLIC-2 Key Feature PAMSIMAS PAMSIMAS II PAMSIMAS III (Ln. 3629) (Cr. 3382) (CR 4204) (IBRD 8259) (IBRD 8578) Total Implementation 1993-1999 2000-2009 2006-2014 2013-2018 2016-2021 1993-2021 # Provinces covered 6 8 15 32 33 33 (cumulative) # Districts covered N/A 37 110 219 365 365 (cumulative) # Villages covered 2,000 2,854 6,800 12,256 27,000 27,000 (cumulative) 5. PAMSIMAS Support Trust Fund (P116236/TF094792). The PAMSIMAS Support Trust Fund is referred to in this report as “the Grant”. In August 2009, the Department of Foreign Affairs and Trade (DFAT, formerly AusAID) provided a grant to co-finance investments in PAMSIMAS in the amount of US$46.4 million. This grant was disbursed in several tranches up to December 2012, with the World Bank acting as administrator of the Grant funds (Table 2). In 2013, as part of the preparation of PAMSIMAS II, DFAT provided an additional Grant in the amount of US$44 million to support this new operation. Thus, the total Grant amount became US$90.4 million with a closing date of September 30, 2017. As of the closing date, the total expenditure from the Grant was US$66.29 million, with a remaining balance of US$18.2 million. The downturn of exchange rates between AUD and USD during the disbursement period led to a financial gap of US$5.9 million (90.4 – 66.29 - 18.2 = 5.9). Table 3 outlines the activities financed by the Grant and a detailed breakdown of the outcomes of the Grant within the (parent) Project can be found in Annex 6. 6. Support Trust Fund for PAMSIMAS III (P085375/TF0A6336). During preparation of PAMSIMAS III the GoI, DFAT and the Bank agreed to utilize the remaining US$18.2 million of the existing TF to co-finance the PAMSIMAS III activities. In addition, DFAT has agreed to provide US$5.9 million of additional financing to meet the US$90.4 million equivalent as previously committed. This makes a total of US$24.1 million available to be used under PAMSIMAS III. However, due to DFAT administrative procedures, this US$5.9 million will be processed as a new Grant (TF0A6336), instead of adding to the existing TF. Consequently, all remaining funds in the TF094792 will be transferred to the new TF (TF0A6336). The Grant Agreement for the new TF, in the amount of US$ 24.1 million, is currently being finalized by the Government of Indonesia (GoI) and is expected to be signed/approved by the end of July 2018. Table 2 - PAMSIMAS Financing PAMSIMAS (P085375) Key Feature PAMSIMAS PAMSIMAS II PAMSIMAS III Total: (CR 4204) (IBRD 8259) (IBRD 8578) Implementation 2006-2014 2013-2018 2016-2021 2006-2021 Bank financing (U$ million) 137.5 99 300 536.5 Page 7 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) DFAT financing (U$ million) 46.4 44 5.9* 90.4** GoI (U$ million) 137.1 115 769 1021.1 Total Project Costs (U$ million): 321 258 1.069 1.648 Remarks: (*) The Grant Agreement is still being prepared. US$ 5.9 million will be added by DFAT to cover the losses due to the exchange rate (**) The total grant amount should be U$96.3 million (46.4+44+5.9), however, due to the exchange rate, there was a loss of U$ 5.9 million, between years 2009 and 2017, which is now being covered by adding this amount to the new TF 7. Scope of this ICR. This ICR covers activities financed by the Grant for the period of September 2009 to September 2017, with a total expenditure of US$66.29 million (see Table 3). A final ICR covering activities for the Project and the Grant will be completed within six months of the new Grant agreement closing date, which is expected on June 30, 2021. Page 8 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Theory of Change (Results Chain) 8. To address the issue of low access to water supply and sanitation, the Project aims at increasing and sustaining water supply and sanitation service levels in rural and peri-urban areas in Indonesia using a CDD approach. To achieve its objectives, the Project main features include: i) empowering the local communities and providing local institutional development by training community facilitators and provide technical training on behavior change and community action plan (CAP) preparation for water and sanitation; ii) provision of incentive grants and technical support in implementation of the CAP to provide services and increase coverage; and iii) supporting central government agencies in provision of a monitoring and evaluation system for collection of information regarding the Project activities as well as complaints from beneficiaries. 9. To address the issue of low access to water supply and sanitation, the Project aims at increasing and sustaining water supply and sanitation service levels in rural and peri-urban areas in Indonesia using a CDD approach. Funds from the Grant were used to co-finance the PAMSIMAS parent Project activities and therefore the theory of change will discuss the contribution of the Grant in the context of the parent Project. Activities Intermediate Outcomes High level results (PDO) Outcomes Training to community facilitators on preparation of community action plans to improve water and sanitation Number of villages developing in the community Community Action Plan Technical training to trainers in (CAPS) Methodology Participatory of % of villages with improved Assessment (MPA) water supply systems that are /Community Led Total functioning to the satisfaction Sanitation (CLTS) of most of targeted community Percentage of village with Increase number of Training to stakeholders under-served and low committee at the district level improved water supply systems that are effectively managed income rural and peri- on selection and monitoring of urban population and financed accessing improved and Improved health sustained water and condition of the sanitation services rural and low- income population Technical assistance and Percentage of districts that have capacity building to the central project monitoring structure and agencies and stakeholder in tools that provide regular monitoring and evaluation, information on project implementation and O&M Increase human management of information system and implementation of Grievances related to delivery development and CDD of projects benefits registered earning capacity and addressed Increase the number of under-served and low income rural and peri- urban population practicing improved hygiene and behavior Technical support for change preparation/implementation of Number of villages & districts activities under CAP exceeding project performance Financial support in design, criteria and receiving construction and supervision of supplementary grants water and sanitation Percentage communities free infrastructures of open defecation Provision of grants for villages Percentage schools that have that meet or exceed the improved water supply and predetermined project sanitation facilities and hygiene performance criteria programs Page 9 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) 10. As a central government Project, the PAMSIMAS delivery mechanism is based on a programmatic approach, providing assistance directly to selected villages in districts that meet or exceed the Project’s targeting and selection criteria4. Under this mode of delivery, Project funds go directly to the participating villages for activities defined in CAP proposals. Participating district governments are required to contribute 10% (approx. IDR 27.5 million or US$39 million) of the total cost of the community grants, while benefiting communities are required to contribute at least 20% (4% cash and 16% in-kind) of the total CAP costs. The CAPs comprise of two parts with assistance from Community Facilitation Teams; one part for water infrastructure, community and school water supply and capacity building for Project implementation (CAP-1) and a second part for improving school sanitation, hygiene behavior change, and strengthening community management (CAP-2). 11. The Project provides funds and technical support to enable communities to implement the physical components of their CAP including constructing water supply systems and communal sanitation facilities. In addition, it seeks to empower local communities and support local institutional development by establishing representative and accountable community organizations and providing training in carrying out consultation processes, and for preparation of CAPs for water and sanitation at provincial, district and village levels. 12. Raising awareness for hygiene and sanitation behavior change towards the overall wellbeing of the community is an important issue addressed by the Project. The STBM approach is employed to stop open defecation practice, improve household sanitation and safe disposal of child feces. The community facilitators, trained under the Project, assist the communities in preparing CAP-2s for improved sanitation behavior using the Participatory Health and Sanitation Transformation (PHAST) approach, which focuses on education and behavior change such as handwashing with soap, water storage, food hygiene, solid waste management, school sanitation and school hygiene promotion. 13. The Project includes district and village incentive grants to reward performance. Participating villages and districts are eligible to receive supplementary grants provided they meet or exceed pre- agreed performance criteria5. In view of program expansion, these incentive grants are at the district level to replicate the Project activities in villages not covered by the Project, and at the community level to support continued implementation of behavior change promotion and education, extension of water supply networks, increased number of sanitation facilities in schools etc. 14. For sustainability of water and sanitation services, the project addresses the issue in two dimensions. The first dimension relates to the long-term operation and maintenance of the PAMSIMAS- financed water supply systems and to the permanence of the intended beneficiaries’ behavior change. In this regard the Project supports the communities in establishing functional community-based institutions capable to effectively manage and finance the systems and facilities, and provides capacity building to local governments in maintaining engagement post project implementation. The second dimension relates to the sustained adoption and propagation of the PAMSIMAS approach among 4 The selection criteria for villages defined as per the PAD are: (i) poverty, (ii) low level of water supply and sanitation facilities, (iii) high incidence of diarrhea, and (iv) not a recipient of similar assistance in the last 2 years. 5 The performance criteria for villages defined as per the PAD are: (i) the achievement of component specific objectives of hygiene, community mobilization and community contribution, and (ii) water supply and sanitation coverage under a replication program. Page 10 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Indonesia’s villages across the country. It is expected that by the end of the Project, local government and the association of BP-SPAMs will continue the support community-based organizations for management of the water supply systems, and central government will continue to provide financial incentives and technical standards to local governments to ensure the sustainability of the support system, through DAK (specific allocation grant) currently in place. 15. The Project includes technical assistance and support to the relevant government institutions responsible for monitoring and evaluation, complaints handling, project management, long-term operation and maintenance and quality control. 16. Ultimately, as a long-term effect, the increasing number of people accessing improved water and sanitation facilities and practicing improved hygiene behavior is expected to result in improved health conditions among the rural and peri-urban populations (as measured by a reduction in the incidence of water and hygiene related diseases), and enhanced human and economic development brought about by time savings. Project Development Objectives 17. The original Project Development Objective (PDO) of the Grant is “to increase the number of low- income rural and peri-urban populations accessing improved water and sanitation facilities and practicing improved hygiene behaviors as part of the Recipient’s efforts to achieve WSS-MDGs targets, through programmatic mainstreaming and scaling-up of a nationwide community-driven approach”. Given the co- financing arrangements, the PDO of the Grant is the same as for Project. Key Expected Outcomes and Outcome Indicators 18. The Grant is expected to contribute to the following PAMSIMAS outcome indicators:  Outcome indicator #1: Number of additional people with sustainable access to improved water facilities, differentiated by socioeconomic status  Outcome indicator #2: Number of additional people with sustainable access to improved sanitation facilities, differentiated by socioeconomic status 19. This ICR covers activities financed by the Grant which closed on September 30, 2017. The Grant funds were used to co-finance PAMSIMAS activities. The financed activities and outputs supported by the Grant are recorded in the MIS and separated from the Project. However, given the integrated way the activities of the Grant and Bank Project were designed, it is not possible to fully separate the outcomes of the Grant from those of the Project. Only outcomes under Component 2 of the Grant can directly be attributed to the Grant due to geographical separation, whereas Components 1 and 3 provide input to the overall outcomes of the Project (see more details on the component section, paragraphs 23 to 26). Thus, results from the assessments done for the previous Interim ICR, carried out in 2015, such as efficacy, economic analysis, M&E, among others were used in the current ICR as they are still relevant and fully applicable for this Grant. Page 11 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Components 20. The Grant components combine a distinct (although complementary) set of activities as compared to the parent Project components although the names of components were similar as presented in the parent Project PAD (PAMSIMAS, P085375). Annex 6 provides an overview of the clustering of activities funded by the Project and by the Grant respectively, and also describes funding allocation and activities financed by the Grant supporting each component of the Project. Table 3 provides the summary of the grant funds allocation and expenditures per component. The Grant components as presented in the Grant Agreement are: 21. Grant Component 1 – Community Empowerment and Local Institutional Development: Component 1 of the Grant funds (a) program-specific training to about 990 community facilitators in the field, to support interventions at local community, district and provincial levels on CDD planning and management of WSS facilities, and (b) the provision of technical training expertise to support the training of trainers in Methodology for Participatory Assessment/Participatory Health and Sanitation Transformation (MPA/PHAST) approach and the STBM Program. 22. Grant Component 2 – Village Incentive Grants: This component of the Grant provides village grants to finance community water improvement subprojects based on a menu of possible options. Both water supply and communal sanitation infrastructure provision is based on Community Action Plans (CAPs) that are prepared using the CDD approach. The Grant financed 104 out of 1060 villages under the parent Project. Grant-funded locations were selected in predetermined districts as agreed between the Government, DFAT and the Bank at preparation of the PAMSIMAS Support Trust Fund. Village incentive grants are also allocated to villages that demonstrate good practice and exceeded the hygiene improvement, community mobilization, and WSS access targets identified in their CAP. The proceeds of village incentive grants are to be used for further improvement of the community environment. 23. Grant Component 3 – Implementation Support and Program Management: This Grant Component supports provision of technical assistance and capacity building for quality assurance of PAMSIMAS including: (a) a PAMSIMAS implementation adviser; (b) a procurement and safeguards adviser; (c) a monitoring and evaluation baseline survey and impact evaluation consultant; (d) a community hygiene and sanitation behavior change specialist; (e) a management information systems/knowledge management specialist; (f) a MPA/PHAST specialist; (g) 3 CLTS program specialists; and (h) community facilitators. Table 3 – Allocation and Actual Expenditures per Grant component Total Expenditures Remaining Grant Component Grant Allocation (as of Sep’ 2017) Funds (*) (U$ million) (U$ million) (U$ million) 1. Community Empowerment and 26.34 18.51 7.83 Local Institutional Development 2. Village Incentive Grants 54.79 43.96 10.83 3. Implementation Support and 9.27 3.82 5.44 Project Management Total: 90.40 66.29 24.11 Page 12 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Source: World Bank (2017). December 31, 2017 (*) Currently a new Grant agreement is being prepared between the Bank and GoI under a new Trust Fund (TF0A6336) B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) Revised PDOs and Outcome Targets 24. In March 2013, the Borrower submitted a request for restructuring of the Project, which included a request for an adjustment of the PDO. On October 30, 2013, the Bank approved the proposed restructuring and amended the financing agreement accordingly. The revised PDO for both the Project and the Grant is: “to increase the number of under-served and low income rural and peri-urban populations accessing improved and sustained water and sanitation services and practicing improved hygiene behaviors as part of the Recipient’s efforts to achieve WSS-MDG Targets, through programmatic mainstreaming and scaling-up of a nationwide community-driven approach” (emphasis added). Revised PDO Indicators 25. The PDO indicators of the Grant remained unchanged throughout project implementation, as did the PDO indicators of Project. However, changes in the PDO targets of the Grant6 were revised as follows:  Outcome indicator #1: “number of additional people with sustainable access to improved water facilities, differentiated by socio-economic status” was increased from 1.01 million to 1.77 million.  Outcome indicator #2: “number of additional people with sustainable access to improved sanitation facilities, differentiated by socio-economic status” was increased from 0.36 million to 0.75 million.  Change in target year. The year in which the revised targets should be achieved was moved from 2013 to 2016 Revised Components 26. The components remained unchanged during project implementation, but their scope was expanded and costs and financing increased as the project evolved from PAMSIMAS to PAMSIMAS II. Rationale for Changes and Their Implication on the Original Theory of Change 27. The changes to the PDO, PDO targets, indicators and revised indicators were made to include the following terms: i) under-served to better align with the GoI’s own policy objectives of universal access, ii) sustained to emphasize that the services financed by the Project would need to be institutionally, financially and technically sustainable and iii) targets to clarify that the Project would support the achievement of the MDG target 7C (by 2015, halve the proportion of people without sustainable access 6 The outcome targets #1 and #2 under the Project were revised with the Additional Financing for PAMSIMAS II. The Project target for outcome indicator #1 was increased from 6 million to 11.6 million and for outcome indicator #2 from 3.4 to 7.4 million. The project coverage scaled up to 12,000 villages. The year in which the revised target should be achieved was moved from 2013 to 2016. Page 13 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) to safe drinking water and basic sanitation) instead of MDG #7 itself (“Ensure environmental sustainability”). The PDO change was mostly to reflect what was already being done in practice, and did not affect the implementation of the Project which, from the outset, aimed to provide improved water and sanitation services to persons without adequate access to such services (for instance people with a source of water supply that provides insufficient water during the dry season, even when they are not poor) and had already included definitions of institutional, technical and financial sustainability in the PAD. 28. In addition, the changes were aligned with i) district-wide implementation of Community-based Total Sanitation (STBM) approach, ii) the GoI Master Plan for “Acceleration and Expansion of Indonesia’s Economic Development 2011-20257”, which sought to accelerate development through a pro-growth, pro-poor and pro-green strategy, and iii) the Country Partnership Strategy (CPS) for Indonesia, issued in December 2012 for FY2011-2015 that called for World Bank Group support on the Master plan. 29. These changes did not affect the overall project implementation nor trigger additional safeguards. In addition, the risks remained the same. II. OUTCOME A. RELEVANCE OF PDOs 30. The National Medium-Term Development Plan (RPJMN 2015-2019) targets the achievement of universal access to water and sanitation by year 2019. The strategic plan of the implementing agency MPWH, lists PAMSIMAS as the national platform for rural water supply and sanitation delivery to support achievement of universal access, and strongly supports the use of community-led total sanitation to achieve its objectives in the sanitation sector8. The PDO “increase the number of under-served and low income rural and peri-urban populations accessing improved and sustained water and sanitation services and practicing improved hygiene behavior as part of the Recipients efforts to achieve WSS-MDG targets, through programmatic mainstreaming and scaling up of a nation-wide community-driven approach” remains highly relevant and resulted in approval of PAMSIMAS III, in December 2016, with Additional Bank Financing of US$300 million to accelerate achieving the goals set by the GoI to provide universal and sustainable water supply and sanitation services. 31. BAPPENAS launched PAMSIMAS III as a National Platform for Rural Water and Sanitation in February 2017, encouraging multi-stakeholders to utilize PAMSIMAS III as the platform of collaboration for delivering water and sanitation in rural areas. Recently, the GoI issued a minimum service standard for water supply and sanitation (PP No. 2/2018). PAMSIMAS III supports local governments to fulfill this minimum standard for water supply and sanitation for rural areas via community empowerment. Therefore, PAMSIMAS remains highly relevant to the objectives of the Government of Indonesia. 32. PAMSIMAS III is aligned with the World Bank Indonesia Country Partnership Framework (CPF) FY16 – FY20 in two key engagement areas: The Delivery of National Infrastructure, Engagement Area 1, 7By Coordinating Ministry for Economic Affairs, 2011 8Rencana Strategis Kementrian Pekerjaan Umum dan Perumahan Rakyat 2015-2019 (see also Rancangan Teknokratik RPJMN 2015-2019). Page 14 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) and the Delivery of Local Infrastructure and Services, Engagement Area 4. Under Engagement Area 1, the Bank has a coordinated response to support the ambitious target of eliminating slums and providing universal access to water and sanitation (100-0-100 target), including ending open defecation by 2019 as set out in the RPJMN. Operating as a national platform for rural water and sanitation, PAMSIMAS will be instrumental in bringing together various programs, funding, and stakeholders. Under Engagement Area 4, the Project directly supports the first pillar that aims to strengthen the decentralization framework to improve local service delivery. Furthermore, the gender and governance approach under PAMSIMAS II and III will contribute significantly to the Bank's cross cutting engagements under CPF i.e. shared prosperity, equality and inclusion (see details on para 68). 33. Relevance of CDD. The design of the Project has been restructured overtime to provide beneficiaries and institutions financial incentives to support the program and increased ownership. Districts have developed greater ownership over their rural water and sanitation systems by being responsible for the staffing and non-salary operational cost of the District Project Management Units (DPMU) and the establishment of their own Local Government Revenue and Expenditure (APBD) to fund CDD water, sanitation and hygiene improvement programs. Communities have developed greater ownership through various capacity building activities, decision making, and collective management of services at the local level. Considering the existing weak capacity of many local governments in Indonesia, and vast geographic coverage, the national CDD approach adopted in the PAMSIMAS remains relevant to achieve universal access to water and sanitation. 34. Relevance of Sustained access. Based on the PAMSIMAS III PAD, a communal based WSS systems is expected to provide sustainable access to community members if i) the service is functioning at more than 80% of designed capacity, ii) tariff levels are sufficient to cover operation and maintenance costs and iii) the community-based organizations for management of the water supply systems (BP-SPAMs) have been established by decree of the village head or by other means with an Annual Work Plan available for water supply. This overlaps with the CDD approach where communities are involved in regular operation and management of the water supply infrastructures thus having greater ownership and participation in the management of their water and sanitation systems. In Indonesia, a significant percentage of WSS infrastructure in small towns (sub-district level or IKK) becomes non-functional after some years of construction, requiring re-investment9. Therefore, the PAMSIMAS approach remains relevant to improve sustainability by ensuring that beneficiaries remain involved in maintaining the service provision. Available data indicates that community participation and good quality facilitation are cost effective financially and economically - and provide an efficient option for achieving sustainable WSS services. The beneficiary communities contribute at least 20% of the investment cost of their community action plans. They bear the cost of maintaining constructed water systems, while the Local Governments (LGs) absorb into the local education and health budgets the cost of replenishing the health materials (small amount), as called for by the Project’s entry conditions for district participation (PAD PAMSIMAS page 12). Assessment of Relevance of PDOs and Rating Rating: High 9 There is no immediate figure available for IKK, however several studies (such as from JICA 2010, and ADB) show that above 50% of investments in IKK stopped functioning or become partially functioning after some time for various reasons. Page 15 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) 35. This rating is justified based on the current relevance of the PDO under the current GoI policies and its alignment with the CPF FY16 – FY20, which frames the Bank support to rural water supply and sanitation around two areas of engagement that are supported by PAMSIMAS, namely, Engagement Area 1 aimed at Delivery of National Infrastructures and Engagement Area 4, aimed at Delivery of Local Infrastructures and Services. The rating is also justified by the fact that PAMSIMAS has been scaled up to the entire country and gathering other sources of funds towards achieving the outcomes set by the GoI. B. ACHIEVEMENT OF PDOs (EFFICACY) 36. The efficacy of the Grant is measured against the achievement of KPIs that have been agreed upon (see table 4). As mentioned earlier, the Grant financed specific geographic areas under component 2 of the Grant, and achievements can be attributed directly to the Grant funds, whereas component 1 and 3 of the Grant which support the overall parent Project, efficacy will be assessed against both the KPI of the Grant and the assessment of the Grant contribution to the overall Project. 37. The (formally revised) PDO of the Project and the Grant is “to increase the number of under- served and low income rural and peri-urban populations accessing improved and sustained water and sanitation services and practicing improved hygiene behaviors as part of the Recipient’s efforts to achieve WSS-MDG Targets, through programmatic mainstreaming and scaling-up of a nationwide community- driven approach”.10 By September 2017, according to the MIS, PAMSIMAS had substantially achieved these objectives. 38. Targeting the low and underserved. PAMSIMAS program was developed to especially target the 11 poor . Based on the results reported in the MIS, 44% of targeted beneficiaries water supply and sanitation service provided by the Project were poor people12. A Rapid beneficiary survey conducted in 2017, carried out in 40 villages including Grant funded areas (see Annex 4), 38% of the beneficiaries were reported to be poor and 8% living just above the poverty line but with larger family size13. It is estimated that 14.6% of residents in rural areas live below the poverty line14 suggesting efficient targeting by the project. 39. The targets and achievement for the overall parent Project, and the Grant villages are summarized below in Table 4. 10 As described in Section IB, the changes to the wording of the PDO did not affect the implementation of the project. 11 Refer to original PAMSIMAS PAD, page 13. Poverty is one of the selection criteria for districts and villages. Although the water supply is distributed throughout the village regardless of social status, PAMSIMAS promotes a participatory approach to planning, and construction, in setting maintenance fee rates and operation of improved water supply systems to ensure equity among all segments of the community, in particular women and the poor 12 For the purpose of this ICR, the results reported are based on the MIS that is being implemented under the Project 13 People considered poor, and living below the poverty line are those living with less than US$2 per person per day. The results from this survey are preliminary, as the assessment has not been finalized. Final report is expected by June 30, 2018. 14 March 2016, National Statistics Agency (SUSENAS) Page 16 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Table 4 – Key performance indicators, Targets and achievements as of February 6, 2017 Overall Project DFAT TF villages only # KPI Unit Target Achieved Target Achieved 1 Improved15 water supply access No. of people 12 m 10.4 m(*) 1.772 m 1.870 m (million) 2 Improved16 sanitation access No. of people 9.1 m 11.6 m (**) 0.755 m 1.825 m (million) 3 Number of villages developing CAPs # Villages 18,000 17,769 2,215 2,251 4 % of communities achieving open % 60% 56% 50% 56% defecation free status 5 % of targeted schools that have improved sanitation facilities and % 95% 71% 95% 87% hygiene program 6 % of village with improved water supply systems that are effectively % 90% 76% 90% 75% managed and financed Remarks: (*) 5000 additional villages are under construction. By end of 2018, this is expected to be more than 13 million beneficiaries (**) For KPI #2, as the target for basic and improved sanitation was exceeded, the Bank and the Government will discuss a revised target based on the current trend during the Project mid-term review (scheduled for September 2018). 40. During the period 2008-2014, the Interim ICR prepared for PAMSIMAS III additional financing concluded that the Project made a significant contribution to achieving WSS-MDG Target #717. According to the survey developed at the time of the Interim ICR (2015), and confirmed later by a Rapid Beneficiary survey in 2017 (see Annex 4), all villages where PAMSIMAS has been implemented, access to water supply and sanitation increased to meet MDG target 7C. 41. Objective #1 Increase sustainable access to improved water facilities. By September 2017, the Grant had provided 1.87 million persons with sustainable access to improved water supply systems, of which 50% were women and 44% were poor. The overall Project provided 10.4 million people with access to water supply. A sample household survey (see Annex 4) was carried out in 2017 in 40 Project villages (of which 20 are targeted by the DFAT program). Initial results show that PAMSIMAS has increased access to water in these 40 villages from 38% to 80%. 42. The Grant provided financial incentives to selected districts and villages to meet targets stated in 15 Refer to original PAMSIMSAS PAD, PAMSIMAS adopts the global definitions currently used for monitoring progress towards the MDG targets, i.e. those of the WHO-UNICEF Joint Monitoring Program (JMP). 16 Refer to original PAMSIMAS PAD: JMP defines access to adequate sanitation as the percentage of the population using “improved” sanitation, when “improved sanitation” means: Connection to a public sewer, Connection to a septic system, Pour - flush latrine, Simple pit latrine, or Ventilated improved pit latrine. For PAMSIMAS, “improved sanitation” also includes changes in hygiene behavior and continuous usage of improved sanitation facilities, measured by number of households with ODF status. 17 The Interim ICR PAMSIMAS 2015 concluded that during the period 2008-2014 PAMSIMAS provided about 32 percent of the total increase in access to improved water supply in Indonesia, and 31 percent of the total increase in access to improved sanitation. Page 17 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) their community action plans. By September 2017, the Grant had financed 270,504 individual house connections, 7,089 public taps and 2,622 public hydrants. Table 5 summarizes the water facilities financed by the parent Project and the proportion financed by the Grant. Note that the Grant doesn’t have set target for outputs. Table 5 – Total outputs of the Project and proportion attributed to the Grant PAMSIMAS (Total) Attributed to Water Facilities (Units) DFAT TF (Units) Public taps 34,483 7,089 Public Hydrants/facilities 19,712 2,622 Household connections 1,348,402 270,504 Shallow dug-well 9,652 0 Rain-water harvesting 625 0 43. The Grant financed provision and training facilitators to help communities build infrastructure using community contracting, and provided capacity building to district governments for oversight, administration, and monitoring and evaluation. The activities performed by the facilitators contributed in increasing sustainable access to water and sanitation infrastructures, as per defined in the PDO. 44. The Project considers a water supply system sustainable if it meets the following criteria: i) technical sustainability: the service is functioning at more than 80% of designed capacity, ii) financial sustainability: tariff levels are sufficient to cover operation and maintenance costs, and iii) institutional sustainability: the BP-SPAM has been established by decree of the village head or by other means with an Annual Work Plan available for water supply. Two indicators in the results framework are used to measure sustainability of water supply according to the definition18. Technical sustainability is currently positive with about 76% (target is 90%) of the systems functioning at more than 80% of design capacity, another 18% are functioning at 40-80% capacity and 6% are not functional19. Financial sustainability is continuously improving, with 75% of BP-SPAMs regularly collecting tariffs (target is 90%), of which 42% collect tariffs equal or beyond operation and maintenance cost and 33% collect lower than operation and maintenance or only when the system is damaged. About 25% of the villages do not applying tariffs for various reasons including: the community considers water as free of charge (especially when the water source is a spring), sees the new service as lower quality, feels too poor to pay, or feels as a government program it should be free 20. The achievement of the target has in fact reduced from 81% in February 2017 to 75% in September 201721 due to project expansion to new and remote areas where there the communities are not familiar with tariff 18 Project Paper PAMSIMAS III ANNEX 7. Percentage of villages with improved water supply systems that are functioning to the satisfaction of the majority of targeted community. The service satisfaction covers continuity, reliability and water quality and quantity, collected through a survey. Percentage of villages with improved water supply systems that are effectively managed and financed. Under this indicator, tariff levels and system functionality are disaggregated in the MIS. Management of rural water supply and communal sanitation services is evaluated by the establishment of an organization acknowledged by communities to manage the system, namely the BP-SPAM. 19 The main causes of the partially functioning and broken systems among others are: natural disaster, social conflict, inadequate design or design complexity, water-source depletion, lower quality and quantity of water, and other technical issues. 20 It should be noted however, that there are many schemes for the community to collect money for infrastructure maintenance and rehabilitation in the village which are not always recorded, for example, villages in which the community gathers funds for maintenance of all infrastructure, including water. 21 Based on ISR recording, from April 2016 to February 2017 the tariff collection was continuously kept at 81% Page 18 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) payment for water. However, since the Project and the Grant will continue until 2021, it is expected that the target will still be achieved considering significant capacity building programs that are in place. Furthermore, over 41% of the districts increased their budgets towards meeting the requirements to maintain existing WSS systems and achieving MDG Targets. While there is no set target for institutional sustainability, 70% of Districts have established an association of BP-SPAMs and developed district work plans (or Rencana Aksi Daerah/RAD AMPL) for water supply, which is remarkable and will ensure institutional sustainability over time. The Grant funds have been instrumental in providing capacity building and technical assistance by supporting the implementing agencies at central level in selection, recruitment and training a cadre of trainers on CDD for WSS that were responsible for training facilitators at the district level. The grant also financed technical assistance for the strengthening of the BP-SPAM association. 45. The vast majority of water systems in Grant funded areas are fully-functioning as designed (76%), effectively managed and financed (at 75% as compared to the target of 90%) and functioning to the satisfaction22 of the majority of the targeted communities (at 83% as compared to the target of 90%). 46. Objective #2 Increase sustainable access to improved sanitation facilities. By September 2017, the Grant had provided 1.8 million persons with sustainable access to improved sanitation facilities, of which 50% were women and 44% were poor. This achievement far exceeded the target because during the course of implementation, the STBM approach under the Project operated and impacted overall village level, whereas the target was set at sub-village level. The overall Project provided 11.6 million people with access to improved sanitation compared to the target of 9.1 million people. 47. The Grant provided financial incentives23 to selected districts and villages to meet targets stated in their community action plans. By September 2017, the Grant had financed 1,692 communal toilets and 6,516 sanitary facilities in schools. Table 6 summarizes the sanitary facilities financed by the parent Project and the proportion financed by the Grant. Similar to water supply access, under the Grant there are no set targets for outputs. Table 6 – Total outputs of the Project and proportion attributed to the Grant PAMSIMAS (Total) Attributed to Sanitation Facilities (Units) DFAT TF (Units) School toilets 13,315 1,692 Hand-washing facilities 58,541 6,516 48. In addition, the Grant provided significant technical assistance for the overall project in this the component benefitting about 120,000 people in various training and other capacity building activities on sustainability aspects of water supply, hygiene behaviors, community planning, etc. The Project also triggered the construction of over 217,000 private toilets. Although the sub-component aimed at improving the ability of local markets to respond to increased demand for improved sanitation facilities did not perform 22 According to the Rapid Beneficiary Survey 2017. See Annex 4. The survey explores several aspects of satisfaction related to improved water and sanitation facilities and services, including water adequacy, continuity, quality, facility safety, distance from home, water tariff, and operation and maintenance services performed by BP-SPAM. 23 Additional grant provided to the districts or villages that meets good performance criteria Page 19 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) as expected it didn’t affect the achievement of PDO outcome #2. In addition, under the PAMSIMAS III this subcomponent is currently being redesigned. 49. In addition, as per the PAD, the Project considers the sanitation interventions sustainable if: i) ODF status is achieved and maintained, and if ii) Communities adopt hand-washing practices. Two indicators in the results framework are used to monitor sustainability of sanitation according to the definition24. According to the MIS, of the targeted communities by the Project, 70% (target 60%) have adopted hand washing programs. However, the Rapid Beneficiary Survey conducted in December 2017 found a higher result, that 84% of households interviewed practice regular hand-washing. Of the targeted communities financed by the Grant, about 57% have reached ODF status exceeding the target of 50%, and more than 87.5% (75% target) of targeted schools have improved sanitation facilities and hygiene programs. 50. Objective #3. Increase practicing of improved hygiene and sanitation behavior. The Project has trained about 6,900 government officials and facilitators, who in turn trained 927,600 persons to improve hygiene behavior, of whom over 499,000 were women (these two indicators were both core indicators)25. Training, awareness creation and education, coupled with the availability of newly constructed public sanitation facilities, helped increase the share of participating communities financed by the Project to adopt proper hand-washing techniques26 from less than 20% in 2008 to 70% in September 2017. In the same period, the number of open-defecation free (ODF) communities covered by the Grant increased from virtually zero to 57%. 51. Based on the initial findings of the Rapid Beneficiary Survey conducted in 2017 (see Annex 4), it was found 33% of households have been able to build or renew their latrines after provision of water supply house connections from PAMSIMAS. Provision of water by PAMSIMAS has significantly changed the behavior of using toilets at household level. This is supported by evidence from the beneficiary survey, that 90% of the sanitary facilities now have water available at the toilet, and more than 80% of toilets now have adjacent hand washing facilities and soap. In 90% of the sample villages, PAMSIMAS has contributed to the installation of hand-washing facilities in schools by using the community block grants. The study showed that 84% of households now demonstrate regular hand washing practices using soap, especially before meals and cooking, and after meals, work, and after using the toilet. Promotion of handwashing practices has been channeled mostly under the STBM activities through health officers, midwives and health cadres and schools. 52. CDD approach was mainstreamed throughout the project implementation. This can be seen by the fact that community-based organizations for management of the water supply systems (BP-SPAMS) have been formally established in virtually all Project locations and that 75% of Districts have developed capacity 24 Project Paper PAMSIMAS III ANNEX 7 % of target villages free of open defecation. This indicator measures the number of communities that practice open defecation free (ODF—collected by MIS). % of target communities adopting hand-washing. This indicator measures the number of communities adopting hand-washing practices. Both ODF and hand-washing practice are monitored regularly by a sanitarian (sub-district health staff), and reported to district health agency through a text message. At district level, the report is uploaded into MIS. 25 Due to the co-financing nature of the Grant, the activities and outputs achieved for this objective can’t be separated 26 The main hand washing data is collected by the village sanitarians and Cadres doing household visits. In addition, some additional rapid surveys were carried out. Page 20 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) building plans to support the adoption and mainstreaming of the PAMSIMAS approach. From 2010 to 2012, the Grant supported the recruitment of about 330 sustainability facilitators, 116 village incentive facilitators and 1,187 regular facilitators, which worked with the local government and communities in development and implementation of Community Action Plans (CAPs) for water and sanitation infrastructures and improvement of hygiene and sanitation behaviors. From 2013 onwards, the Government funded the facilitators activities from its budget. In 2016 the Government has expanded the CDD Project to 27,000 villages, and established a national platform for rural water supply, of which majority of funding come from Government and community own resources. 53. The Grant funds were also used to strengthen capacity building, supervision and monitoring, and complaint handling system. The Grant also funded 5 workshops and training sessions in 2017 at the Development Unit-the Ministry of Home Affairs (MoHA) with the objective to encourage local governments to prepare strategic and investment plans for water and sanitation, obtain commitments by local governments and parliaments to fulfill a minimum service standard and increase local spending on water and sanitation towards achievement of universal access in year 2019. These workshops were attended by about 1,300 local government and parliament officials from over 365 participating districts. Between 2010- 2017, it is estimated that 5,300 local government officials have benefitted from workshops and trainings under the Grant. Furthermore, in 2017, 104 districts established BP-SPAM associations under the Project and included Grant funded districts, adding to the already active 110 district associations established in 2015 and 2016. Under PAMSIMAS III these associations will continue to receive Project support to ensure sustainability. Development of these association was substantially supported by the Grant funding. 54. Given the achievement of the targets set out in the PDO elements, evidenced the corresponding full achievement of the PDO indicators on water supply and sanitation access, substantial achievement of the elements for sustainability of water schemes and improved hygiene and sanitation behaviors indicators, the overall efficacy can be rated as ‘Substantial’. C. EFFICIENCY 55. There have been several studies conducted to evaluate PAMSIMAS such as an Impact Study conducted in 2012, an economic analysis conducted in 2015, and a Rapid Beneficiary Study in December 2017. Because of the co-financing nature of the Grant, and the complementary nature of the Grant and Project outcomes, evaluation of results for the overall Project can also be applied to the Grant, therefore a separate economic analysis was not conducted for Grant funded activities as the type of interventions are exactly the same. 56. The results from the most recent economic analysis conducted in 2015, concluded that the Economic Internal Rate of Return (EIRR) for PAMSIMAS was estimated at 44%27. The EIRR of the adjusted benefit and cost streams was estimated at 36.1%, taking into consideration partly and non-functioning sub- projects, and comparable to EIRRs observed for piped water supply systems financed by other CDD 27 At appraisal, no EIRR was estimated for PAMSIMAS. The economic analysis was only done for the water supply component which is more the 90% of the project costs Page 21 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) programs in Indonesia28. Because the cost per capita of water supply has decreased (see para 57), and the benefits remain the same, the EIRR is expected to be the same if not better. 57. Efficiency of unit costs. Investments in community-based piped water supply systems accounted for 70% of the total Project cost, (of which 10% was financed by the Grant TF). The average cost of a piped water supply connection was about US$150, or US$200 after adding 36% for facilitation and project overheads. This is less than 35% of the average cost of a connection provided by a water utility, or by the central government unit cost for contractor-based investment, which is estimated at about US$60029. Based on 2015 information collected in the MIS system, the cost per capita of the water supply system reduced from US$36/cap to US$32/cap (11% reduction) in part due to community procurement, use of local material, stringent supervision by the project team, contribution of labor by the community (community based implementation), and continuous monitoring and analysis of unit costs. 58. Administrative Efficiency. The co-financing arrangement allowed for efficiency gains because existing institutional arrangements for the Project were used for Grant implementation. In fact, the Grant funds were used to support the implementation arrangements of PAMSIMAS and further strengthen the institutions by supporting capacity building and training activities that benefitted both the Grant activities as well as the PAMSIMAS as whole. In terms of implementation timeline, the overall outcome achievements are satisfactory and there has been no significant delay. Furthermore, the total cost of the Implementation Support and Project Management component dropped from 19% of the total Project cost (the share envisaged at appraisal) to 12%. These achievements can also be attributed to the strong partnership between the GoI, the Bank and the DFAT. Assessment of Efficiency and Rating 59. Considering the robust EIRR results from the 2015 assessment, enhanced by the fact that the Unit construction costs have actually decreased, the efficiency in the administrative costs of project implementation, and finally, the overall timely project implementation, the overall efficiency is rated substantial. D. JUSTIFICATION OF OVERALL OUTCOME RATING 60. Even though the PDO was revised, a split evaluation is not conducted since (i) the PDO was adjusted by adding a few complementing aspects but it did not change materially the project objectives or scope; and (ii) the targets were revised upwards. Thus, a pre and post-restructuring PDO assessment would have no differentiated implication on the overall outcome rating. Based on the above-mentioned assessments and ratings—relevance of the PDO rated as High, efficacy of the PDO achievement rated as Substantial, and efficiency rated as Substantial—the overall outcome rating is ‘Satisfactory’. 28 See for example, Laporan Akhir Studi Skala Kecil Analisis Manfaat Ekonomi Proyek Infrastruktur PNPM Mandiri Perdesaan. PNPM Support Facility. July 2012. 29 From ICR (P085375/P129486). It may be argued that a water utility provides a much better service than community-based systems, which do not provide potable water and are usually not operating 24 hours, but this is not necessarily the case; in 2012, 48 percent of water utilities in Indonesia provided water fewer than 20 hours per day, and no utility produced potable water. The unit prices may not be fully comparable, however contractor-based water supply is the only other option available in the government for provision of water. Page 22 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) E. OTHER OUTCOMES AND IMPACTS (IF ANY) 61. Health benefits. In the results of the survey carried out in 2017, it was also demonstrated that diarrhea incidents have decreased by 26% per year in the sampled villages. Although multiple factors can be attributed to this trend, the high rate of participation of households (66%) and women (54%) in the hygiene and sanitation behavior change program is an indication that the program has been instrumental in the reduction of incidences of diarrhea. 62. Beneficiary satisfaction. The majority of beneficiaries are satisfied with the results of the Project. In a Rapid Beneficiary Survey conducted in December 2017 (see Annex 4), the average level of satisfaction reached 82.7%, exceeding the targeted KPI. The highest satisfaction score is rated by beneficiaries using house connections (above 92%). 63. Beneficiary earning capacity. Initial results from the survey carried out in 2017, in 40 Project villages (of which 20 are targeted by the DFAT program), show that PAMSIMAS has increased access to water in these 40 villages from 38% to 80%, and 85% of households use water supplied through PAMSIMAS for drinking and cooking. The survey found that in 88% of households, women are the largest consumers of water. Fifty five percent of female respondents reported that they contribute to the family income by home- based work, mostly in either agriculture or home-based business. Most home-based businesses are run by women, such as food processing, crafting, and as subcontractors of mass-scale factory production. Provision of access to water by PAMSIMAS has had significant impacts in terms of time savings as well as security and convenience of having water available at home. Women interviewed have indicated that they now have more opportunities to do additional work such as running small shops, making and selling snacks, or making crafts to supply larger businesses in town since provision of house connections. 64. Institutional strengthening. The Project financed investments in training and capacity building to strengthen institutions in the water supply and sanitation sector in the long run, especially district health departments, local health clinics, and BP-SPAMs and their regional associations. The regional associations were designed, established and trained as an institutional back-up system for BP-SPAMs, to help ensure that these continue to manage their water supply services adequately in the long term. Gender 65. Gender mainstreaming is in the core of the success of PAMSIMAS during all phases of implementation. A gender gap action plan (GAP) has been developed and adopted through a series of instruments, including among others a gender balance in the composition of technical assistance and facilitator teams, a minimum requirement for female participation in community planning, implementation, operation and maintenance, and a minimum of 30% females in community institutions such as the Village level community based water supply and sanitation management units and implementation team (BP- SPAMs and KKM respectively). The initial findings from the survey carried out in 2017, which included gender involvement (see annex 4), are summarized below: Page 23 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236)  Distance and time saving appears to have more of an impact on woman than on men. Forty five percent of women reported a reduction in distance to water sources (ranging between 100 meters and 5 kilometer), whereas the same reduction in distance applies to only 26.4% men. Similarly, where 56.6% of women experience time savings between 30 and 300 minutes, only 27.4% of men have the similar time savings. Time saving is used by 18% of men and 3.2% of women to find additional work such as agricultural work, or finding other casual jobs to earn more income, and used by 6.7% of women versus 2.5% of men for household chores. Women reported having more opportunities to do additional income earning home-based work as a result of house connections and water continuity.  Participation in BP-SPAMS. Female members in BP-SPAMS currently reaches 35%. Female members are generally involved in management of KPS (sub-village user groups), collection of monthly fees and bookkeeping.  Participation in planning. Fifty five percent of households participated in the planning, implementation and maintenance phases. Twenty seven percent of the participants were women, with the largest role in the problem identification, situational analysis and construction phases, followed by water tariff setting. Mobilizing Private Sector Financing 66. Micro-credits with commercial banks. In collaboration with Water.org, an international NGO, PAMSIMAS facilitated the participation and expansion of the micro-credit program into the water sector in rural and peri-urban areas, whereby 250 BP-SPAMS were able to access loans from private or commercial banks for service expansion. In Year 2017, Water.org established a memorandum of understanding with the MPWH. In parallel, the expansion of the water supply service allowed participation of the local private sector. As of December 2017, a total number of 5,718 small local entrepreneurs have benefitted from the Project by supplying pipes and accessories, and construction of deep-wells. 67. The Sanitation Marketing activities have also allowed participation of local entrepreneurs to participate in the sector. Although no target was set, the scale of the results was not as expected and has not yet been replicated. About 1,777 people were trained in sanitation marketing under the Project, and among those trained people, only about 10% are still active as sanitation entrepreneurs (about 185 persons). Poverty Reduction and Shared Prosperity 68. PAMSIMAS was developed to target the poor and underserved population in rural and peri-urban areas of the country. Because of the time savings on water collection and the reduction of diarrhea incidence, most beneficiaries are currently more engaged in economic activities which allows an increase of their income. Moreover, less incidents in diarrhea also results in more disposable income for the beneficiaries because of savings on healthcare expenditures. As the Project aims at Open Defecation Free (ODF) status at community level, this contributes to shared prosperity as there is less probability of epidemic occurrences resulting from water related diseases. Page 24 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Other Unintended Outcomes and Impacts 69. Progress on Disability Inclusive Development (DID). On December 4, 2016, the Project launched the adoption of DID. In 2016, supported by Grant funds, DID was implemented in 35 villages. This pilot triggered the CPMU to issue operational guidelines, and commit that DID will be mandatory in all public facilities funded by PAMSIMAS starting in Year 2018. By Year 2020, it is expected that about 10,000 villages will have disabled-inclusive facilities including public taps/hydrants, school toilets and hand-washing with soap facilities. To date, about 59,000 people with disabilities have been recorded in all locations covered by the PAMSIMAS, of whom 25,000 have received benefits from the Project. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME 70. As previously mentioned, the Grant funds were used to co-finance most of the components of the PAMSIMAS Project, thus the PAMSIMAS context is used for assessment of key factors that affected preparation and implementation. A. KEY FACTORS DURING PREPARATION 71. Soundness of background analysis and lessons learned from previous projects. The Grant was designed to be fully aligned with the PAMSIMAS approach, procedures and mechanisms, which has benefitted from a long experience of WSLIC-2. The Grant had included modifications to reflect lessons learned from the implementation of its predecessor projects. The most important of these lessons were the following: (i) the inclusion of the CDD approach to providing villages with water supply works has significant benefits (ownership, sustainability and efficiency) compared to a traditional top-down approach, (ii) the economic returns of improved WSS facilities are substantial, (iii) the importance of inter-sectoral cooperation to ensure sustainability of WSS facilities, and (iv) the need for national framework, attention to advocacy and the recognition of WSS as a development priority to mainstreaming of PAMSIMAS as well as incentives for local government ownership of the Project and dissemination of the CDD approach for WSS beyond participating districts. 72. Assessment of Grant design. The Grant development objectives, in line with the parent Project PAMSIMAS were highly relevant and corresponded to the Government’s own plans and priorities. The implementation arrangements are considered practical as they were largely adopted from proven approaches developed under WSLIC-2, PAMSIMAS and other Bank-financed CDD projects in Indonesia that were being implemented at the time of appraisal. The components were designed to result in the achievement of the PDO. Flexibility was introduced to ensure that the Grant could be allocated where the funding was required within the framework of the Project. The Annual Work Plan (AWP) of GOI was used as a mechanism to adjust fund allocation based on the needs of the project. Of the PAMSIMAS components, the Grant provided financial incentives to participating districts and villages to meet their targets and also capacity building and oversight aimed at improving local governance conditions to ensure that the services would be provided in a cost-effective and sustainable manner, including capacity building for mainstreaming and scaling-up of a nationwide community-driven approach. The Grant funded provision of block grants (see Page 25 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) para 22) in 2,251 villages. 73. Adequacy of Government commitment, stakeholder involvement, and participatory processes. GoI’s commitment to the Grant was strong at central as well as local level, providing adequate counterpart funding during implementation, and expansion of the Project in 2016 under PAMSIMAS III. Committed funds between different agencies were also increased, furthermore, most of the facilitators were financed by Government budgets, and a multiyear contract for facilitators has been introduced. The Grant was designed to fully support the overall Project to improve access to WSS facilities through participatory processes and involving multiple stakeholders at the local level (communities, district governments, local health clinics, NGOs and community-based organizations). During the Grant implementation all implementing agencies, from central government to communities remained committed to improve and sustain the service provision. To effectively provide adequate guidance and training to the communities, the provincial and district implementing agencies hired district level facilitators who carried out regular visits and provided support to the community facilitators. A district level facilitator also collected information on water and sanitation at the communities that is input in the Monitoring and Information System (MIS), a national web-based platform that is updated on a yearly basis. The district and village grants provided an extra incentive to scale up and extend the services in the communities or in other villages not yet covered by the Grant or Project. As such, communities owned and remained committed to managing the water supply schemes and to maintain its ODF status. 74. Assessment of risks and risk mitigation measures. The Grant risks were closely linked to the risks of the Project it supported. PAMSIMAS PAD identified a series of risks to the successful implementation of the Project, the most critical of which were: (i) complex institutional arrangements arising from the multi-sectoral nature of the Project, (ii) diversion of funds to uses other than intended, and (iii) inconsistent government policy on subsidies for household latrines. The overall Project risk was rated “moderate” after mitigation. The risk assessment and mitigation measures were generally on target. For example, risks such as low quality of infrastructure developed by the communities and favoritism to the well-off districts for implementation were successfully mitigated. However, mitigation of the institutional complexity issues were less successful, especially related to the coordination between central government agencies30. There were no unanticipated risks or missed opportunities for mitigation that seriously limited achievement of Project outcomes, although the quality of some achievements was slightly affected by delays in consultant and facilitator recruitment. 75. Sustainability. The design of the Project has been structured to provide districts with greater ownership (e.g. responsibility for the staffing and non-salary operational cost of the DPMU) and the incentives to establish their own Local Government Revenue and Expenditure (APBD) to fund CDD water, sanitation and hygiene improvement programs through replication. The creation of a community-based committees was included in the CAPs, which are responsible for regular operation and maintenance and collection of funds for repairs be it through tariff collection, forms of collection of funds commonly used in the community or self-help maintenance. Monitoring of sustainability for water and sanitation is done via multiple result indicators through the established MIS. 30During the early stages of Program implementation, due to the institutional arrangement complexity, there was a conflict between MPWT and MOH in terms of responsibilities for financing the facilitators for sanitation activities. The MOH expected that financing of facilitators would be through other sources and not from the MOH funds. This issue was later resolved and MOH financed all facilitators that were responsible for sanitation activities. In addition, this didn’t affect the implementation progress. Page 26 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) B. KEY FACTORS DURING IMPLEMENTATION 76. Start-up. The first Grant agreement was signed on September 10, 2009 and the first disbursement was only in the second quarter of 2010. This slight delay was due to administrative processes in the Ministry of Public Work to accommodate the Grant TF within the larger PAMSIMAS Project. Nonetheless, the implementation started right after Grant agreement signing. The schedule of implementation was not largely affected and the initial Grant funds supported capacity building, institutional strengthening and Project management aspects. 77. Changes to implementation arrangements. These consisted of: (i) the establishment of a Training Development Service to support strategic planning of capacity development, delivery of training and capacity building, (ii) the establishment of seven Regional Oversight Management Services (ROMS) teams to replace management advisory consultants at the provincial and district level, and (iii) The reduction of community facilitator teams at the village level to two teams of two members each (formerly three) and the addition of one senior mentor. 78. A key institutional change was a transition from the Provincial and District Coordination Committees to the POKJA AMPL (Water and Sanitation working groups), which are multi-agency working groups responsible for water supply and sanitation at the respective levels, and are already established in many provinces and districts. This change combines the project management and sector management responsibilities within a single organization. An additional change at the district level is the mandatory establishment of a stakeholder committee within or under the POKJA, which includes civil society representatives empowered to make many of the key Project decisions including the selection of participating villages, evaluation of CAPS, allocation of funds to villages, and the appointment of facilitators, thereby improving transparency and governance. 79. Flexibility in implementation. From the start of implementation, the implementing agency and the Bank were willing to modify the design of the Project in response to changing circumstances by, for example, creating additional block grant windows for expansion of existing systems and optimization of underperforming systems, by providing additional facilitator support, and by rapidly expanding incentive grants in response to a higher-than-expected number of well-performing villages. The CDD design of the block grant component and flexibility in its implementation also allowed the communities to allocate available funds where it mattered most to them, within the context of the Project. GoI and the Bank also prepared and approved the AF to help scale up the Project and modify the design to enhance its effectiveness. In addition, the Annual Work Plan mechanism allowed for the adjustment of allocation based on the need of the Project in subsequent years which the Grant filled in. 80. Sustainability. The Grant addresses the issue of sustainability in two dimensions: (1) long term operation and maintenance of services and permanence of intended beneficiaries’ behavior change, and (2) propagation of the PAMSIMAS approach among Indonesia’s villages across the country. During implementation the government added the definition of sustainability by measuring technical, financial and institutional sustainability. The Project developed design features during implementation to enhance sustained operations and maintenance by the beneficiary communities and also allocated adequate resources for advocacy, coalition formation and capacity building activities to support PAMSIMAS expansion beyond its immediate target areas. This included strengthening of the associations of BP-SPAMs and Page 27 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) provision of special facilitators for post construction support, under the coordination of local government and the community-based organizations. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 81. M&E of the Grant was fully based on a results framework of the Project that consisted of a series of well-defined and realistic outcome and intermediate results indicators, with plausible time-bound targets for each indicator. For the Grant, six key performance indicators (KPIs) were defined to measure the achievement of the Grant funds (see table 4). However, the KPIs only measure the results achieved under the Village Incentive Grant component. The results from other components are measured in the results framework of the overall Project. As such, the discussion on this section will cover the achievements of the Project. 82. At appraisal, it was envisaged that Central Management Advisory Consultants would help the implementing agency establish and maintain a comprehensive computerized management information system (MIS) to monitor the achievement of each indicator. Definition of all PDO elements were clearly presented in the PAD and monitored in the MIS. CDD mainstreaming is measured by the percentage of plans that led to implementation of water supply and sanitation infrastructures and the number of districts that replicated the PAMSIMAS approach. Sustained service delivery of water is measured by the percentage of villages that have improved water supply systems that are functioning to the satisfaction of the majority of the target community, and the number of villages with improved water supply systems that are effectively managed and financed. Sustained service delivery of sanitation is measured by the % of communities adopting hand-washing practices and the % of communities that are declared OD free. 83. In addition, the PAMSIMAS PAD listed a series of surveys that would be undertaken during Project implementation to complement the data to be collected by the MIS, and evaluate the outcomes of the Project which also covers the Grant supported areas. M&E Implementation 84. In general, the monitoring of the Grant was well implemented through the MIS, spot-checking by consultants, and by the complaints handling system (complaints could be submitted via the Project website, by phone, text message or in writing). Although the MIS had been developed in the initial stages of Project implementation, Grant funds were used to upgrade from a manual paper-based system to a web-based platform that was later integrated into a mobile system. The funds from the Grant also allowed for gradual and sustained evolvement of the MIS, which is now an integrated information system and user-friendly (also recording, inter alia, payment advice from the State Treasury office, detailed BP-SPAM performance records, and audit findings). Page 28 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) 85. Sustainability Monitoring. Monitoring is carried out quarterly through the community level implementation processes to measure progress towards Project outcomes. Sustainability measures are color categorized as red, orange and green, providing a clear indication of where further action is required by associations of BP-SPAMS and local governments working in partnership. MIS data collection and independent verification is systematic and institutionalized in the Project. User satisfaction is measured using household surveys. The first survey was completed in 2012, the second was completed in 2015, the third is planned to be completed in late 2018 (currently in progress), and the final planned for 2021. 86. M&E of Hygiene and Sanitation. Data is supposed to be updated every 3 months, however data on the STBM website, managed by MOH has a slightly low updating rate of once every year. The Bank has advised MOH to improve data collection and verification mechanism. M&E Utilization 87. The data collected by the MIS and the monitoring of progress helped the Grant to: (i) identify and remedy quality problems and incorporate better controls as the Project progressed, (ii) fine-tune the targeting of resources to the areas with the greatest needs and to help achieve the greatest impacts, and (iii) ensure transparency and openness of the Project. Significantly, the Bank and the implementing agency agreed to only consider data which entered the MIS as relevant for monitoring and evaluation purposes. For several years, the implementing agency has been using similar systems to monitor other CDD programs under its management, notably the National Community Empowerment Program in urban areas, which strongly suggests that the system will be sustainable in the long term. Justification of Overall Rating of Quality of M&E 88. Considering the thorough design, usefulness, ease of use, comprehensiveness of the M&E system and its effective use by the client for decision making, the overall rating of quality of M&E is ‘Substantial’. The MIS has proven to be an essential tool to be used beyond the Project implementation by the GoI to monitor the progress and as a tool for decision making. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 89. The main safeguards triggered are Environmental Assessment (OP/BP/GP 4.01) and Indigenous Peoples (IP) (OD 4.20). The Grant was classified Category B because it is unlikely to lead to significant adverse social and environmental impacts, given a community based approach to the provision of water supply and sanitation. The safeguards assessment was done for PAMSIMAS and it also applies to the Grant funded components. Given the small size the subprojects financed by the Project (the cost of which usually did not exceed US$30,000 equivalent), it was a priori expected that any adverse social and environmental impacts of such subprojects would be small or negligible. The safeguards frameworks documents were disclosed in Bahasa Indonesia and English. Following negotiations, the Project Integrated Safeguard Data Sheet was updated and sent to InfoShop for disclosure on March 27, 2013. 90. The Grant fully applied the framework of PAMSIMAS, which has put in place a comprehensive safeguards framework, monitored by CPMU and the Bank. Included under Component 3 of the Grant, a Page 29 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) procurement and safeguards adviser provided technical assistance and capacity building for quality assurance of PAMSIMAS. Implementation of the social and environmental management framework was built into the Project oversight structures, guidelines and tools, as well as the terms of reference for the Central Project Management Unit, District Management Units and technical and community facilitators. 91. Environmental Risks. Environmental Risks were likely to be associated primarily with the community water supply component and, to a lesser extent, the district and village development grant. Although some Grant activities triggered safeguards related to environmental assessment (OP/BP 4.01), none of these activities caused significant adverse impacts. The PAMSIMAS did not trigger additional safeguards related to environmental assessment. The Project did not finance land acquisition, but did receive voluntary land donations (VLDs). The recording of potential social and environmental impacts was initially poor, especially with regards to voluntary land donations, but improved in later stages of Project/Grant implementation. 92. Indigenous peoples. Since the Project has a nationwide scope and there was a possibility of entering locations where IP are present, a framework was prepared at appraisal to ensure that IP are included in the decision-making process and they get equal benefit in accordance with OP 4.10 (see Annex 10b of PAD PAMSIMAS). The AF did not trigger additional safeguards related to Indigenous Peoples. The Indigenous Peoples Plan of this Project was disclosed in country on December 19, 2012 and sent to InfoShop on December 28, 2012. The framework has been operationalized in various Project manuals whose purpose is to ensure that Project activities provide culturally appropriate benefits through informed participation. In addition, district consultants and communities were trained in the application of these manuals. 93. Social Risks. Inclusion of vulnerable/disadvantaged people in all Project cycles and in Project benefits. Inclusion of the vulnerable group concept in project implementation, has been operationalized and detailed in the Project manuals (in the Terms of Reference and manual for facilitators and community group decision making process/consultation meetings). Specialized training for district consultants and community facilitators was carried out to promote female participation and greater transparency in the planning and decision-making process at the village level which resulted in 35% of participants reported as female. 94. The Bank has been continuously reviewing the Project’s compliance with safeguards, and the assessment shows that the Grant has been generally complying with the safeguard requirements except for the minor deficiencies in the recording of VLDs, mentioned in paragraph 91. Supervision missions have confirmed that safeguards are followed and the rating has always been satisfactory. Fiduciary Compliance 95. Financial management. The Grant encountered minor shortcoming in terms of financial management throughout implementation, primarily because of delays in issuance of budget documents and problems with the introduction of a new public financial management system. These problems were exacerbated by difficulties in finding qualified facilitators. However, these shortcomings have not negatively affected the outcome of the Project. In fact, the Project received an unqualified opinion from an external auditor in all years from 2009 to 2016 and the Project’s financial management was generally acceptable throughout implementation. Also, the implementing agency ensured that provincial and district government followed up on audit findings. Page 30 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) 96. Procurement. To date, the Grant has generally complied with the Bank’s procurement guidelines. Also, community contracting worked well. Nonetheless, procurement remained moderately satisfactory throughout Project implementation, mainly because of avoidable delays in the recruitment of consultants. These delays slightly affected the quality of the Grant implementation, such as mobilization of consultants and facilitators, delayed salary payments, delayed distribution of socialization and training materials, and resulted in delays in the training of facilitators and consultants. Nevertheless, the grant was timely and efficiently implemented. 97. Governance. Individuals and independent organizations in beneficiary communities used channels of communication established by the Project (such as the complaints handling unit or individual facilitators) to report incidences of suspected corruption. Follow-up actions, including local government coordination and withholding of funds, proved effective in combating corruption. As of September 2017, CPMU had resolved 2,827 of 3,327 reported complaints, including 499 complaints about misuse of funds. Of the US$1,375,984 misused funds, about US$1,247,670 equivalent has been recovered. Particularly for DFAT funded areas, there were 59 complaints of misuse of funds, and CPMU had recovered about US$ 101,979 of the misused Grant funds. CPMU expects to recover most of the remainder funds within six months of Project closing. The very low level of misuse of funds—equivalent to about 1 percent of the total Project cost—was confirmed by external audits of the Project. At the same time, the number of complaints filed in the MIS is relatively low (about 350 per year) compared to other CDD projects under the management of the implementing agency, which is a potential cause of concern. C. BANK PERFORMANCE Quality at Entry 98. The Bank performance is measured against the strengths and weaknesses of the original Project and Grant design, which are as follows: 99. Strategic relevance. During Project and Grant design and preparation, the Bank team successfully included elements that contributed to the achievement GoI targets, and the Bank’s strategy for engagement with communities, as outlined in the CPF at the time. 100. Relevance to beneficiaries. The Grant provided village grants for a menu of technical options that were highly appropriate to the beneficiaries. The Project and Grant design included provision of simple but affordable options to keep cost-recovery tariffs low. This in turn, resulted in very high satisfaction levels. 101. Robustness. The design of the Grant was based on the design of PAMSIMAS, which also benefitted from previous projects, with minor modifications to reflect lessons learned from these projects31 but 31Notably the need for establishing inter-sectoral cooperation, the development of a national framework for delivery of WSS facilities in rural and peri-urban areas and for providing incentives for local government ownership of the program Page 31 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) otherwise using similar implementation arrangements. The Bank deliberately kept design changes to a minimum yet strategic aspects (see next paragraph), as good results were being achieved and PAMSIMAS was in the path to be consolidated as a full-fledged nationwide program. 102. Reduction in costs. With Bank support and advise, the implementing agency decentralized operations and optimized the composition of facilitator teams. As a result, the total cost of the Implementation Support and Project Management component dropped from 19% of the total Project cost (the share envisaged at appraisal) to 12%. Despite higher costs for facilitators, mainly because the Grant was expanded into areas that were more geographically isolated, the average cost of water supply and sanitation systems remained substantially lower than systems provided through ordinary (i.e. non-CDD) channels (see para 57). In addition, districts were responsible for identification of the target villages and the ones with more beneficiaries per water scheme were selected for investment (as opposed to village targeting being done by the national level). 103. Strategic use of information and communication technology (ICT). With the progress on the ICT, the Bank promoted the introduction and use of a web-based platform for planning, implementation, and monitoring and evaluation, not only to be able to manage investments in a very large number of locations, but also to maintain a high level of transparency in all aspects of the project cycle. 104. The Grant components are fully supportive to the achievement of the objectives of the parent Project. However, due to the clustering into three grant components, while the parent Project had a total of five components (refer to Annex 6), this resulted in an over complexity of monitoring. Fortunately, this was mitigated by a robust MIS. Despite most of the KPIs were met, the Bank’s performance in ensuring quality at entry was rated “satisfactory”. Quality of Supervision 105. The Bank mobilized a multi-disciplinary supervision team with expertise in project management, financial management, procurement, monitoring, and safeguards. Intensive supervision enabled the Bank to identify and proactively address key issues adversely affecting achievement of the PDOs in an early stage, notably problems with delays in budget execution and revision, consultant mobilization and compliance with safeguard policies (see para 91 and 96). The Bank typically had two full supervision missions per year, in addition to many shorter site visits between such missions (locations to be supervised were selected using the MIS). In addition, the Bank team also carried out several technical missions, visiting about 150 villages per year, supported pilot programs, and mobilized technical expertise to support the Government such as water services in peat areas. Virtually all team members were based in the country office, which allowed for close and continuous supervision. The Project and Grant restructuring were timely and incorporated the elements that reflected the evolvement of the sector in Indonesia. The Bank team also worked in close collaboration with the Government to fill in the gap of capacity at various levels. Because of these supervision efforts, performance in these areas improved over time and also helped ensure that good quality data was available for monitoring and evaluation. The Bank also responded with flexibility to requests for Project Additional Financing (and the Grant funds are used to co-financed the Project Additional Financing) and was effective in helping the Government scale-up the Project to a nationwide community-based water and Page 32 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) sanitation program. Finally, trust and partnership between the Bank, GoI and DFAT were essential to successful implementation of a multi-sectoral CDD project. PAMSIMAS, boosted by the Grant funds was developed, implemented and scaled up in a truly enthusiastic collaborative and hands-on spirit between the implementing agencies and the Bank. All this increased supervision was possible because of the additional Grant financing. Justification of Overall Rating of Bank Performance 106. Considering the strategic relevance, the robustness and cost reduction elements that the Bank team included in the project design and preparation, as well as intensive supervision and timely flexibility in responding to the client’s needs, the Bank’s overall performance was rated “satisfactory.” D. RISK TO DEVELOPMENT OUTCOME 107. The “Risk to Development Outcome” is defined as the risk that the (expected) development outcomes of the Project (of which the Grant is co-financing) will not be maintained or realized. The most important constituent risks can be summarized as follows:  Technical risk. This are rated “moderate”, because the Project’s investments were concentrated in physical infrastructure for water and sanitation services that is relatively inexpensive to maintain and not technically complex. To mitigate the risk of inadequate O&M, the Project required the establishment of dedicated management units for water supply systems (BP-SPAM) and community groups were mobilized for O&M of public sanitation facilities. In spite of the risk mitigation measures taken, 24% of PAMSIMAS-financed water supply systems are functioning at less than 80% of design capacity, partly because of design errors or the lack of technical capacity of BP-SPAM staff to repair the systems.  Financial risk. BP-SPAM are expected to implement full cost-recovery tariffs, and in fact 75% of BP- SPAMs reported to be collecting tariffs, of which about 42% of the villages collect tariffs that are sufficient to cover the costs of operations and routine maintenance32. In many locations, the costs of minor incidental capital investments are collected on an as-needed basis, and this arrangement generally works well (partly because of high levels of social cohesion). In the long-term, the enactment of Village Law33 gives the village governments the financial authority to support systems’ replacement. The financial risk was therefore rated “moderate”.  Institutional risk. The institutional risk is rated as “low”. BP-SPAM has been established in most villages and district work plans (or Rencana Aksi Daerah/RAD AMPL) for water supply been developed, which formalize the institutional set up for long term O&M of the systems. If the central and local governments would withdraw their support for community-driven development plans, especially investments in training for community continuous capacity building, a portion of the Project’s 32 In all villages were PAMSIMAS operates, water services were previously free of charge, but of lesser quality and continuity. Therefore, the introduction of monthly tariffs to the community takes considerable time to become successful because it entails a change of mindset and culture. The project will continue to work until 2021 to promote financial sustainability. 33 Under this law village will get annual grant to support village development program and maintenance of existing facilities, including rehabilitation of WSS facilities Page 33 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) investment could eventually become dysfunctional,. However, the likelihood of this happening in the near future is considered low given: (i) GoI’s long-term commitment to PAMSIMAS, which is now explicitly mentioned in MPWH’s strategic plan for 2015-2019 as the primary platform for improving access to water supply and sanitation in rural and peri-urban areas; and (ii) the increased awareness of communities built through the Project (including the Grant), where the villagers now consider piped water supply and public health of paramount importance, thus demanding from the Government continuous attention to this agenda.  Political risk. This risk was rated “low” given the fact that the central government and most local governments have shown a strong and long-term commitment to the financing of PAMSIMAS and strengthened the institutions. 108. The overall “risk to development outcome” is rated “moderate”. Although the financial sustainability of the water and sanitation infrastructures is still a work in progress, in its upward trend to be fully secured, the other sustainability dimensions (institutional, technical and political) are well consolidated, particularly through the establishment of PAMSIMAS as the primary platform for improving access to water supply and sanitation in rural and peri-urban areas. V. LESSONS AND RECOMMENDATIONS 109. Trust and partnership amongst all stakeholders are essential to the successful implementation of such a large-scale program. PAMSIMAS, boosted by the Grant funds, was developed, implemented and scaled-up in a truly enthusiastic, collaborative and hands-on spirit between the implementing agencies and the Bank. PAMSIMAS was developed into a collaborative platform with instruments to facilitate collaboration between ministries, governments and community level. The instruments developed under the program include: institutional (collaborative task force), planning (single plans for all), single information systems (web-based MIS) and system of support (facilitators). Such instruments helped the Project to resolve unanticipated problems, coordinate various financing sources and programs, and made it easier to make necessary implementation changes that would not have been possible under more formal legalistic working relationships. For example, the Ministry of Public Works was willing to take over some of the activities when the financing was not available in the Ministry of Health. 110. The intensive use of ICT helps to maintain a high level of transparency in all aspects of the Project cycle. The implementing agency instituted the policy to make all information about the Project available on the Project website, including payment advice from the State Treasury office, BP-SPAM performance records, and audit findings. This policy of transparency and openness aimed at creating public trust and confidence in the Project’s fairness. 111. In order to have sustainable services it is necessary to clearly define the separate elements that need to be in place (institutional, financial, and technical) and support their establishment. Pragmatic sustainability metrics attached to these elements are also needed, so the pathway to sustainable services can be drawn, tracked and achieved. Under the Project, technical, financial and institutional sustainability were clearly defined and measured for all water and sanitation services provided in the Project areas. To that end, during community planning the sustainability factors are considered as one of the key requirements. Page 34 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) 112. To secure the benefits of hygiene and sanitation behavior programs in CDD projects, these need to be accompanied by investments in sanitation infrastructure. People in the villages were not always able or willing to invest in private sanitary facilities. Therefore, the Project provided communal sanitation infrastructure in schools and public locations, so that everybody would have access to sanitary facilities and the entire village could aim at Open Defecation Free status. 113. The availability of the Grant Fund has been critical for the success of such a large operation. The Grant was instrumental in financing various pilot projects such as disability-inclusive infrastructure, simple technology for peat-areas, and ICT applications. It would have been administratively difficult to carry out these additional activities under rigid normal government financing. 114. The partnership between the Bank, GoI and DFAT has been strengthened during the 12 years of project implementation, mainly because Bank task team has remained the same, which allowed for strong and continuous engagement. As such, there is strong commitment from the Bank and DFAT to continue to support the GoI in achievement of universal access to water and sanitation and improvement in hygiene and sanitation behaviors, as per the SDG’s, by 2021 (expected Project closing date). This is highly unusual for most Bank financed projects where changes in the task team is common, disrupting the engagement with the client and the smooth project implementation. . Page 35 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Increase the number of low-income rural and peri-urban populations accessing improved water and sanitation facilities and practicing improved hygiene behaviors Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of additional people Number 0.00 550000.00 1772000.00 1870067.00 with sustainable access to improved water facilities, 10-Sep-2009 31-Dec-2012 30-Sep-2017 01-Sep-2017 differentiated by socioeconomic status Number of female Number 0.00 275000.00 886000.00 1002712.00 beneficiaries with sustainable access to 10-Sep-2009 31-Dec-2012 30-Sep-2017 01-Sep-2017 improved water facilities Comments (achievements against targets): The target achievement was 105% due to more villages covered than originally planned. Based on data collected and reported on MIS, about 44% of beneficiaries are poor and it corresponds to 822,830 beneficiaries. In November 2015 the target was revised due to additional financing. Page 36 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Due to limited character count, the PDO/Outcome was shortened. The complete Grant PDO/Outcome is to increase the number of low-income rural and peri-urban populations accessing improved water and sanitation facilities and practicing improved hygiene and behaviors as part of the Borrower's efforts to achieve WSS-MDGs through programmatic mainstreaming and scaling up of nationwide community-drive approach. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of additional people Number 0.00 160000.00 755000.00 1825904.00 with sustainable access to improved sanitation facilities, 10-Sep-2009 31-Dec-2012 30-Sep-2017 01-Feb-2017 differentiated by socioeconomic status Number of female Number 0.00 80000.00 378000.00 867150.00 beneficiaries with sustainable access to 10-Sep-2009 31-Dec-2012 30-Sep-2017 01-Sep-2017 improved sanitation Comments (achievements against targets): The target achievement was 240% due to the change level of intervention. Based on data collected and reported on MIS, about 44% of beneficiaries are poor and it corresponds to 803,400 beneficiaries. The target was estimated at sub-village level, but during implementation, it was understood that the impact of the STBM intervention and activities could be expanded at the village level, thus enabling an overachievement. Considering this very large operation and the remoteness of some areas, this figure for sanitation also needs further refinement, and it is currently being carried out under continuation of this Grant in PAMSIMAS III. In addition, the revised target was due to additional financing. In November 2015, the target was revised due to additional financing. A.2 Intermediate Results Indicators Component: Component 1 - Community Empowerment and Local Institutional Development. Page 37 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Provision of technical assistance to support the implementation of Parts A.2 and A.3 of the Original Project Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of villages Number 0.00 460.00 2215.00 2251.00 developing community action plans 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 Number of people Number 0.00 0.00 0.00 387660.00 participated in the village pleno meeting for 10-Sep-2009 30-Sep-2017 preparing community action plan (CAP) Comments (achievements against targets): The target achievement was 100%. Revised target was due to additional financing. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of districts that Percentage 0.00 90.00 90.00 95.00 have project monitoring structure and tools provides 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 regular information on project implementation quality Comments (achievements against targets): The target achievement was 105%. The central government built a strong MIS system that facilitated the flow of information. Page 38 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion % of actual community Percentage 0.00 20.00 20.00 20.00 contribution (in cash and inkind) to the total project 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 cost Comments (achievements against targets): Component: Component 2 - Village Incentive Grants Support for the implementation of Part D.2 of the Original Project through the provision of grants to Participating Villages that meet or exceed performance Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of villages & districts Number 0.00 500.00 1649.00 1669.00 exceeding project performance criteria and 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 receiving supplementary grants Comments (achievements against targets): The target achievement was 101% because the Grant was utilized for more villages than originally anticipated. In addition, the target was revised due to additional financing Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Page 39 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Percentage of target Percentage 0.00 60.00 50.00 56.00 communities free of open defecation 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 Comments (achievements against targets): The target achievement was 112% mainly because the Government gained more experience during the course of implementation and was able to reach more ODF villages. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of village with Percentage 0.00 75.00 90.00 75.00 improved water supply systems that are effectively 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 managed and financed Comments (achievements against targets): The target achievement was 75%. This is because as the project expanded to new areas, several villages are still in the process of mainstreaming the application of cost recovery tariffs. However, since the project will continue and the Grant will continue until 2021, it is expected that the target will still be achieved considering significant capacity building programs are in place. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion % of villages with improved Percentage 0.00 90.00 90.00 83.00 water supply systems that are functioning to the 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 satisfaction of the majority of targeted community Page 40 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Comments (achievements against targets): The target achievement was 83% and this is mainly because of: demand higher continuity, lower tariff and in some better quality. Many of the villages have always had free water although they have to collect at farther sources, therefore introducing tariff has not been welcome. In the remaining period of the program capacity building programs will be intensified to enhance the community engagement. Component: Component 3 - Implementation Support and Program Management Support the implementation of Part E of the Original Project through the provision of technical assistance and capacity building Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of districts that Percentage 0.00 90.00 90.00 95.00 have project monitoring structure and tools provides 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 regular information on project implementation quality Comments (achievements against targets): The target achievement was 105%. The central government built a strong MIS system that facilitated the flow of information. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Grievances registered related Percentage 0.00 95.00 95.00 92.00 to delivery of projects benefits that are actually 20-Oct-2014 31-Dec-2012 30-Sep-2017 30-Sep-2017 addressed Page 41 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Comments (achievements against targets): The target achievement was 97% as some of the complaints in late 2016 and 2017 still in the process of resolution. Unlinked Indicators Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion percentage of target schools Percentage 0.00 75.00 95.00 87.00 that have improved water supply and sanitation 10-Sep-2009 31-Dec-2012 30-Sep-2017 30-Sep-2017 facilities and hygiene programs Comments (achievements against targets): The target achievement was 92%. The BP-SPAMs has not been able to built the facilities in all schools due some institutional and also administrative reasons and also coordination. Not all villages also need new facilities from Pamsimas and thus this schools are not included in the list. Page 42 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1 1. Number of additional people with sustainable access to improved water facilities, differentiated by socioeconomic status Outcome Indicators 2. Number of female beneficiaries with sustainable access to improved water facilities 1. Number of villages developing CAPS 2. % of villages with improved water supply systems that are functioning to the Intermediate Results Indicators satisfaction of most of targeted community 3. Percentage of village with improved water supply systems that are effectively managed and financed 1. Training of 1,187 community facilitators on preparation of community action plans to improve water and sanitation in the community Key Outputs by Component 2. Training to stakeholders committee for 365 districts on selection and monitoring (linked to the achievement of the Objective/Outcome 1) of villages 3. Construction and/or rehabilitation of water schemes in the villages 4. Consultation actions in the district and villages Objective/Outcome 2 1. Number of additional people with sustainable access to improved sanitation facilities, differentiated by socioeconomic status Outcome Indicators 2. Number of female beneficiaries with sustainable access to improved water facilities 1. Percentage communities free of open defecation Intermediate Results Indicators 2. Percentage schools that have improved water supply and sanitation facilities and hygiene programs Page 43 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) 1. Technical support for 2,251 villages in preparation/implementation of activities under CAP 2. Support in design, construction and supervision of water and sanitation Key Outputs by Component infrastructures (linked to the achievement of the Objective/Outcome 2) 3. Provision of grants for 1,669 villages that meet or exceed the predetermined project performance criteria 4. Technical training to trainers in MPA/CLTS Page 44 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Supervision/ICR George Soraya Task Team Leader(s) Budi Permana Procurement Specialist(s) Christina I. Donna Financial Management Specialist Ahsan Ali Team Member Dea Widyastuty Team Member Ninin Kania Dewi Social Safeguards Specialist Deviariandy Setiawan Team Member Pratibha Mistry Team Member Gisella Lokopessy Team Member Angelia B. Nurwihapsari .S Team Member Agustina Parwitosari Environmental Safeguards Specialist B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation Total 0.00 0.00 Supervision/ICR FY10 90.337 173,386.82 Page 45 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) FY11 172.621 515,305.47 FY12 173.795 656,876.01 FY13 98.856 741,621.87 FY14 79.200 459,355.48 FY15 59.715 354,298.48 FY16 43.175 362,260.22 FY17 57.445 319,638.01 FY18 47.350 528,775.45 Total 822.49 4,111,517.81 The cost of supervision is combined for the overall Project (PAMSIMAS) and not only for this Grant. The above supervision cost reflects total supervision for the Grant. This also includes significant additional technical missions and technical inputs, workshops that supports for the overall Project (PAMSIMAS), including additional Implementation support agreed upon by DFAT and GOI for PAMSIMAS. As this cannot be fully disaggregated, the estimate cost that could be directly associated with the implementation of the Grant is about 20% of the above. Page 46 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) ANNEX 3. PROJECT COST BY COMPONENT Table 1 Project Cost by Component (in US$ million equivalent) Appraisal Actual/Latest Percentage of Components Estimate Estimate Appraisal (US$ million) (US$ million)* Community Empowerment and 45.7 104.5 229 Local Institutional Development District and Village Incentive Grants 216.7 447.6 207 Implementation Support and Project Management 59.1 93.9 159 Unallocated - - - Total Baseline Cost 321.5 646.0 201 Physical Contingencies 0.0 - - Price Contingencies - - - Total Project Costs 321.5 646.0 201 Front-end fees - - - Total Financing Required 321.5 646.0 201 *As of December 31, 2017 Table 2 Financing (in US$ million equivalent) Appraisal Actual/Latest Percentage of Source of Funds Estimate Estimate Appraisal (US$ million) (US$ million)* Borrower 101.1 265.8 263 Communities 36.5 84.8 232 International Development Association (IDA) 137.5 141.5 103 International Bank for Reconstruction - 87.6 - and Development (IBRD) DFAT (formerly AusAid) 46.4 66.3 143 Total 321.5 646.0 201 *As of December 31, 2017 Page 47 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Table 3 Project Cost of the Grant at the Appraisal (Plan) (in US$ million equivalent) Financing Component GOI funds Grant Total supporting TF 1. Community Empowerment and 26.34 25.83 50.77 Local Institutional Development 2. Village Grant 54.79 31.72 129.26 3. Implementation Support and Project 9.26 7.57 43.07 Management TOTAL 90.4 65.12 223.1 Table 4 Actual expenditure of the Grant as of September 30, 2017 (in US$ million equivalent) Financing Component GOI funds Grant supporting TF Total (*) 1. Community Empowerment and 18.51 28.36 46.87 Local Institutional Development 2. Village Grant 43.96 32.84 76.2 3. Implementation Support and 3.82 3.90 7.72 Project Management TOTAL 66.29 65.10 131.39 (*) This estimated counterpart funding relates to the Grant activities. As some of the Grant activities are applied to the entire project (Pamsimas), the counterpart funding amount is a proxy of total, proportional to the Grant amount. Page 48 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) ANNEX 4: SUMMARY OF RAPID BENEFICIARY STUDY (INITIAL RESULTS) 1. The World Bank team carried out a beneficiary study in 20 selected districts (50% of which were DFAT funded areas). The study was started in December 2017, and will be completed by end of June 2018. It aims to examine implementation of gender equality approach in the project, and impacts of the project to the targeted communities including behavioral changes related to sanitation and hygiene practice. Up to mid-January 2018, the survey has been partially completed in 9 districts, covering samples of 18 villages and 180 households as respondents. In this context, the summary presented in this annex is considered an interim result. A complete report will be provided by late 2018. In addition, CPMU will undertake mid- term review during this year. 2. Methodology. The study applies a combination of survey, group interviews and secondary data analysis. Twenty districts have been selected representing western, middle and eastern part of Indonesia. Two villages are selected in each district, based on several criteria: female participation in BP-SPAMS, KKM and community trainings, characteristics of livelihoods, functionality of WSS system and tariffs, and incidence of diarrhea. In each village, 10 households are randomly selected from the latest list of PAMSIMAS users provided by BP-SPAMS. Interim results 3. The survey suggests that PAMSIMAS has improved its targeting at the village and household level. Since 2008, access to water in the sample villages increased from 38% to 79%, with PAMSIMAS contributing to 76.5% of the beneficiaries. Within 48% of the sample villages, access to water has reached 80-100%, furthermore 20% of the villages with access to water less than 30% before PAMSIMAS now have 80-100% access. At the household level, 46.2% of beneficiaries of PAMSIMAS are considered as poor (less than $2/day/person). 4. Combining water sources for robust access. In 70% of sample villages, PAMSIMAS complements the existing water sources seen by the fact that half of the beneficiaries combine PAMSIMAS with their previous sources. In drought effected villages where water is difficult to access or nonexistent during the dry seasons (about 40% of sample villages), or where water is not safe to drink during the wet/rainy season, or in the event that PAMSIMAS facilities stop functioning, it is very useful for the people to have multiple sources. Maintaining multiple sources is even more necessary for poor households, particularly those with an unstable monthly income (constituting about 70% of total sample households), because they have to purchase water with cash which is sometimes not available. The survey suggests that people prefer to combine PAMSIMAS with their existing sources to increase their water security against environmental and economic shocks. 5. From the perspective of beneficiaries, PAMSIMAS has significantly improved quality, continuity and adequacy of water at home, as well as safety for women, children and elderly. Page 49 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) a. Eighty five percent households consume PAMSIMAS water for drinking and cooking, feel safer because it has been tested by the program and the physical appearance is quite convincing (colorless, odorless, tasteless). b. Eighty four percent households have water running at home on daily basis through house connections, 77.3% of which are from PAMSIMAS. Though distance and time saving appears to be less significant (55.3% and 58% households have no or less changes in terms of distance and time saving), the house connection allows much less effort to collect and store water for daily consumption and the people reported having more time when they collected water from a household water tap compared to collecting from a source outside the household. This factor is especially essential for women who formerly had to draw water manually from wells and carry it to home by bucket for several trips per day (about 35%). Even though the well is located nearby, the physical burden is significant for women, children and elderly. 6. BP-SPAMS appear to be effective in the maintenance of water services but lacking in sanitation promotion in most sample villages. For maintenance of water services, both users and BP-SPAMS were equally proactive to maintain the facilities. Minor damages are typically repaired by the users, either individually or in group and for larger damages, responses by BP-SPAMS or KPS in the sub-village level usually happens within three days. Of the 63.6% of users which experienced damage to their water facilities, half of them paid no additional fees for the fixing the facilities, outside of the monthly tariffs. For sanitation, the involvement of BP-SPAMS is mostly in the initial process of collecting baseline data, but few are involved in the triggering stage, promotion of hand-washing practice in schools, and health training. In post construction phase, sanitation and health promotion is mostly done by village midwives and community cadres, but they seem to have lack of understanding about role of PAMSIMAS in the sanitation and health intervention. 7. Access to sanitation facilities in the sample villages has improved by 35% (from 47% to 82%). However, monitoring of sanitation data is poorly managed (about 10% has never updated the data), and the definition used to measure access is varied across villages, which affects the quality of data collected and reported. Despite the lack of regular monitoring, village midwives and community cadres are quite active in collecting and monitoring the sanitation and health data. 8. From the perspective of beneficiaries, there has been significant improvement in behavioral practices in health and sanitation: a. Ninety two percent households have access to latrines, which consist of 87% with improved latrines and 5% with basic latrines. Eighty one percent of households have private latrines, and 78% have built latrines by their own money, whereas 6.7% got subsidy from village governments or other sanitation program (not PAMSIMAS). From direct observation to the facilities, the survey found: 100% facilities have adequate water available, 99% have a septic tank connected and functioning, 93% have hand-washing facilities available in the washroom, and 73% are provided with soap. b. Of the total sample households, about 8% still have all family members practicing OD, but of 92% of households having access to latrines, only 1% still have family members practicing OD (partially). Those partially practicing OD are usually adult men and women working in agricultural field/estate, who use Page 50 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) open space or waterways during work, baby and children below 5 years old disposing of diapers before cleaning. c. Eighty percent of households have continuously practiced hand-washing at home on daily basis. Promotion of hand-washing practice has been mostly delivered by sanitarian, midwives and community cadres and through media especially the television commercial and posters in Posyandu, school and village government offices. d. Sanitation and health promotion events have been actively conducted by Puskesmas and Posyandu, supported by community cadres, village midwives, and sanitarian. Information about diarrhea and other waterborne related diseases have been disseminated through these events. Based on the available data, incidence of diarrhea in the sample villages has been reduced by 26% per year due to multiple factors. 9. Satisfaction of beneficiaries. The survey explores several aspects of satisfaction related to improved water and sanitation facilities and services, including water adequacy, continuity, quality, facility safety, distance from home, water tariff, and operation and maintenance services performed by BP- SPAMS. Overall, the average level of satisfaction reaches 82.7%, exceeding the targeted KPI. The highest satisfaction score is rated by beneficiaries using house connections (above 92%). 10. Highlights of gender aspects in the program. a. Distance and time saving appears to have more of an impact on woman than men. Forty five percent of women have reduced distance to water sources (ranging between 100 meter and 5 kilometer), whereas the same reduction in distance applies to only 26.4% men. Similarly, where 56.6% of women experience time saving between 30 to 300 minutes, only 27.4% men have the similar saving. Time saving is used by 18% of men and 3.2% of women to find additional work such as agricultural field, or finding other casual jobs to earn more income, and used by 6.7% of women versus 2.5% of men for household chores. Women reported having more opportunities to do additional work such as running small shops, making and selling snacks, making crafts to supply the larger business in town as a result of house connections and water continuity. b. Participation in BSPAMS. Female members in BP-SPAMS currently reaches 35%. Female members are generally in the management of KPS (sub-village user groups), collection of monthly fee and bookkeeping. c. Participation in planning. Fifty five percent of households participated in the planning, implementation and maintenance phases. Twenty seven percent of the participants were women, with the largest role tends in the problem identification and situational analysis (IMAS) and construction phases, followed by water tariff setting. Page 51 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS The ICR team submitted the draft ICR for borrower’s comments on the Grant implementation covering the period from September 2009 to September 2017 and the letter submitted to the is copied below: Page 52 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Annex 6: Project and Grant components The DFAT Grant components combine a distinct set of activities as compared to the parent PAMSIMAS Project components although the names of components are similar to those presented in the parent Project PAD (PAMSIMAS, P085375). The names of the five components of the parent PAMSIMAS Project are: 1. Community Empowerment and Local Institutional Development 2. Improving Hygiene and Sanitation Behavior and Services 3. Water Supply and Sanitation Infrastructure 4. District or Village Incentive Grants 5. Implementation Support and Program Management The names of the three components of the DFAT Grant are: 1. Community Empowerment and Local Institutional Development 2. Village Incentive Grants 3. Implementation Support and Program Management The following matrix provides an overview of the clustering of activities funded by the parent Project and by the DFAT Grant respectively Funded by the Project Components and activities Funded by the DFAT funds Grant funds A1: Provision of technical advisory services and training for Not funded by the DFAT both governmental and non-governmental organizations Grant and low income communities to support the preparation and implementation of Community Action Plans (CAPs), consisting of: (a) CAPs focusing on informed choice, design and costs of community and school water supply and peri- urban sanitation (CAP-1); and (b) CAPs focusing on community and school hygiene behavior change activities, school sanitation facilities and post-construction Component 1: management and sustainability (CAP-2). Community A2: Provision of technical advisory services and training to Empowerment strengthen interagency cooperation at the Province and and Local Institutional District level, and develop the institutional capacity of the Development units, teams and related personnel involved in the implementation of the Project, including development of guidelines and manuals, and training materials to ensure compliance with the relevant rules and procedures. A3: Implementation of a program of activities designed to support capacity building and advocacy activities for local governments and civil society to improve overall WSS delivery, encourage increases or reallocations in overall local government budgets in favor of community-driven Page 53 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) development WSS efforts, and promote post-construction innovations to enhance the sustainability of WSS services. B1: Provision of technical advisory services and training to support implementation of a phased program of community behavior change, consisting of the promotion of the Community-Led Total Sanitation (CLTS) approach to safe excreta management, hand-washing and other locally relevant environment sanitation practices, including water storing and handling, food hygiene, solid waste and Component 1: wastewater management, and water quality surveillance. Community Component 2: B2: Provision of technical advisory services and training, Empowerment Improving Hygiene and carrying out studies, to support a sanitation and and Local Institutional and Sanitation hygiene marketing program designed generate consumer Development Behavior and Services demand for improved sanitation, facilitate the ability of local markets to respond to this demand, and promote improved hygiene behavior. B3: Provision of technical advisory services and training to support school based hygiene promotion training and facilitation, and facilitate workshops designed to incorporate and integrate school-based hygiene promotion program into routine curricula and health education programs. B4: Provision of technical advisory services and training to strengthen the capacity of the units responsible for Environmental Health and Hygiene Promotion in participating provinces and participating districts to monitor progress in meeting their WSS-MDG targets, assess performance of the sanitation and hygiene programs and evaluate their impact on hygiene behavior. Component 3: Water C1: Provision of technical advisory services and training to Supply and Sanitation support the design, construction, and commissioning and Infrastructure operation of water supply infrastructure at the community- level, based on a menu of technical options, including: rapid technical assessments and community WSS situation analysis to determine water demand and system options; informed water system technology choice; technical surveys and development of the detailed engineering designs; construction, supervision and quality control; operations, maintenance and repair training. C2: Provision of grants to support: (a) activities under CAP- Component 2: Village 1; and (b) activities under CAP-2. Incentive Grants D2: Provision of grants to participating villages that meet or exceed predetermined project performance criteria based on the achievement of component specific objectives of hygiene, community mobilization and contribution, and Page 54 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Component 4: District WSS coverage under a replication program, to be applied to or Village Incentive support complementary activities in view of the scaling up Grants and expansion of such replication program. D1: Provision of grants to participating districts that meet Not funded by the DFAT or exceed predetermined Incentive grant project Grant performance criteria under an agreed WSS replication program involving a predetermined number of participating villages, using their own funds and applying the same methodology and approach as under the Project, to be applied to support complementary activities in view of the scaling up and expansion of such replication program. E1: Provision of technical advisory services and training, through the recruitment and Project Management of Central Management Advisory consultants (CMAC) to provide support, for the benefit of Central Project Management Unit (CPMU), in terms of overall Project management, monitoring of implementation and outcomes, expansion of the national WSS program, and technical and financial reporting, as well as in the fields of sustainable WSS, hygiene promotion, capacity building, institutional strengthening, social and environmental safeguards and community empowerment E2: Provision of technical advisory services and training, Component 3: through the recruitment of Provincial Management Implementation Support Advisory Consultants (PMAC) to provide support, for the and Project Component 5: benefit of PPMU, in terms of day-to-day Project Management Implementation management, technical support, implementation of Support and Project community-driven processes, institutional capacity Management building, social inclusion and environmental safeguards, monitoring of implementation and sustainability of outcomes, and technical and financial reporting at the Province and District level. E3: Provision of technical advisory services and training, through the recruitment of District Management Advisory Consultants (DMAC) to provide support DPMU in terms of day-to-day Project management support, technical support, monitoring of implementation, technical and financial reporting at the District level, and, through the recruitment of Community Facilitator Teams, to facilitate community empowerment and institution building at the Village level. E4: Provision of technical advisory services and training, through the recruitment of Independent Project Evaluation Consultants, to evaluate Project performance, having regard to the performance indicators in the Credit Page 55 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Financing Agreement. E5: Provision of technical advisory services and training to support preparations for a sector-wide program for the WSS sector. The following provides the breakdown and outputs of the DFAT Grant support for each component and outcome of the overall PAMSIMAS Project. Table 1 – Actual Grant Expenditures per Grant component in million US$ Grant Expenditures as of Sept’ Grant Component 2017 1 Community Empowerment and Local Institutional 18.51 Development 2 Village Incentive Grants 43,96 3 Implementation Support and Program Management 3,82 Total : 66,29 Table 2 – Actual Grant Expenditures per PAMSIMAS component in million US$ Grant Expenditures as of Sept’ PAMSIMAS Component 2017 1 Community Empowerment and Local Institutional 13.19 Development 2 Improving Hygiene and Sanitation Behaviour and Services 5.13 3 Water Supply and Sanitation Infrastructure 41.80 4 District or Village Incentive Grants 2.17 5 Implementation Support and Program Management 4.00 Total : 66,29 PAMSIMAS Component 1. Community Empowerment and Local Institutional Development (DFAT Grant Disbursement up to September 30, 2017: US$ 13.19 Million) This first PAMSIMAS component supports training of facilitators, capacity building of central, provincial and district government agencies, stakeholder commitment building and other related activities in relation to CDD planning and management of WSS facilities and hygiene improvement programs at the local community, district and provincial levels. Table 3 - Capacity Building for Communities and BP-SPAMS PAMSIMAS (Total Persons) DFAT-funded Locations (Persons)(*) Capacity Building Activities Total Female Total Female Health promotion activities/training 376,852 186,490 77,693 33,290 Page 56 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) Technical operation and 121,800 36,825 14,675 4,191 maintenance Financial management 120,821 45,204 14,326 5,025 Management operational and 115,980 39,553 13,625 4,174 maintenance Total: 735,453 308,972 (42%) 120,409 46,680 (39%) 1. Under PAMSIMAS Component 1, the project recruited about 330 sustainability facilitators (2010- 2012); 116 village incentive facilitators (2010-2012); and 1,187 regular facilitators (2011-2012). Since year 2013, the Government has funded the facilitators from its own budget and utilized the Grant to strengthen capacity building, supervision and monitoring, and complaint handling. For Year 2016, the funding for facilitators came from the loan with as reason ensuring multi-years facilitation and to strengthen the operation and maintenance during the post-construction phase and consolidate behavior change. Capacity Building for Local Governments and other project stakeholders 2. PAMSIMAS Component 1 also financed a series of workshops and training for local governments and other project stakeholders. In year 2017, about five workshops were held by the Regional Development Unit of the Ministry of Home Affairs (MOHA). The objective of the workshops was to encourage local governments to prepare strategic and investment plans for water and sanitation (or in Bahasa: RAD AMPL-Rencana Aksi Daerah Air Minum dan Penyehatan Lingkungan), obtain commitments by local governments and parliaments to fulfill a minimum service standard and increase local spending on water and sanitation towards achievement of universal access in year 2019. These workshops were attended by about 1,300 local government and parliament officials from over 365 participating districts. Between 2010-2017 it is estimated that 5,300 local government officials have benefitted from these workshops and trainings provided under PAMSIMAS Component 1. Support to the District Associations 3. In 2017, 104 districts established BP-SPAM associations, in addition to 110 district associations established in 2015 and 2016. These associations will receive support from the Project to ensure sustainability of BP-SPAMS. The Central Project Management Unit (CPMU) is in the proses of updating guidelines and standard operating procedures for the BP-SPAMS and the associations. Support for the district associations was initially provided through the Trust Fund, and is being expanded through the IBRD loan until 2020. PAMSIMAS Component 2. Improving Hygiene and Sanitation Behavior and Services (DFAT Grant Disbursement up to September 30, 2017: US$ 5.13 Million) This second PAMSIMAS component ensures increased access to chosen improved sanitation facilities for targeted households, effective use of WSS infrastructure and adoption of key hygiene practices. The Grant under this PAMSIMAS component was used to finance capacity building and technical support. Up to Year 2016, PAMSIMAS Component 2 financed national technical specialists under MOH (3 persons 2010-2016: CLTS, Sanitation Marketing, and Demand Creation); and Regional Oversight Management Services (ROMS)-STBM to mobilize provincial coordination and district STBM facilitators (2010-2016). In 2017, Page 57 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) there was no spending under the Grant. This component also financed trainings for sanitarians, district health agencies, district STBM facilitators, and provincial coordinators. By December 31, 2016 about 6,900 people had benefitted from the training and workshops under Component 2. 4. In 2017, as the Grant for supporting PAMSIMAS III was still being prepared, the Ministry of Health (MOH) used its own financing and utilized the health special allocation fund (or DAK Kesehatan) to implement PAMSIMAS Component 2. About 352 out of 365 districts have district facilitators funded through DAK, and 20 out of 33 provinces recruited provincial coordinators for STBM funded through the deconcentrated fund (or Dana Dekonsentrasi). For provinces without coordinators and districts without facilitators, Provincial and District Health Unit (DHU) staff were assigned to take over the tasks. Meanwhile, STBM activities at the village level are funded by DAK Kesehatan. PAMSIMAS Component 3. Water Supply and Public Sanitation Infrastructure (DFAT Grant Disbursement up to September 30, 2017: US$ 41.8 Million) This third PAMSIMAS component provides grants to finance community water improvement subprojects. Subprojects are selected based on a menu of technical (environmentally friendly) options, with support from facilitators hired by the project. Both water supply and public sanitation infrastructure is implemented based on Community Action Plans (CAPs) prepared using the CDD approach. Communities received block grants and contributed a minimum of 20 percent of sub-project costs, while district governments contributed 10 percent. 5. During Year 2010-2015, DFAT has funded community block grants for about 2,251 villages. In Year 2016 and 2017, the project did not allocate grants for the community block grants, thus no additional outputs directly related to the Grant were recorded in Year 2017. 6. Villages were still able to expand their outputs and services through various sources of financing, including community contributions despite a lack of grants or additional funding. In Year 2017 60,000 additional household connections, 3 school toilets, and 50 school hand-washing facilities were expanded in these 2,251 villages. Table 4 - Outputs of the Project Outputs PAMSIMAS (Total) DFAT-funded Locations (Units) (Units) Water Facilities Public tap 34,483 7,089 Public Hydrants/facilities 19,712 2,622 Household connections 1,348,402 270,504 Shallow dug-well 9,652 - Rain-water harvesting 625 - Sanitation Facilities School toilets 13,315 1,692 Hand-washing facilities 58,541 6,516 Page 58 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) PAMSIMAS Component 4. Village Incentive Grants (DFAT Grant Disbursement up to September 30, 2107: US$ 2.17 Million) PAMSIMAS component 4 provides incentive grants to villages that demonstrate good practice and exceeded the hygiene improvement, community mobilization, and WSS access targets identified in their CAPs. It is required that the proceeds of village incentive grants are used for further improvement of the community environment. This component financed incentive grants to 104 villages in 2010-2011, awarding the best-performance during post-construction. Starting in 2012, the Government continued the incentive mechanism through their own financing (APBN). Up to December 31, 2016 PAMSIMAS has funded 1,576 villages using the village incentive grant (VIG) mechanism, and about 40 districts (with 884 villages) using the district incentive grant (DIG) mechanism. 7. In PAMSIMAS III, the incentive program (VIG and DIG) under Component 4 was transformed to a Rural Water Supply Grant (RWSG) Program. Since it was introduced, it has been rapidly growing from only 4,100 house connections with an investment of IDR 8.2 Billion (US$ 600,000) in Year 2016 to about 29,000 house connections in 2017. The total RWSG investment for Year 2017 is IDR 58 Billion (or US$ 4,350,000). It is estimated that the RWSG has benefitted about 139,000 people with improved water supply services. PAMSIMAS Component 5. Implementation Support and Project Management (DFAT Grant Disbursement up to September 30, 2017: US$ 4 Million) The Project is managed by the Central Project Management Unit (CPMU) in MPWH. The CPMU hires advisory teams to support the CPMU itself and hires consultants to assist in project implementation, as well as the Central Project Implementation Units (CPIUs) in the Ministries of Health and Home Affairs. Technical assistance is provided through Central Management Advisory Consultant (CMAC) at the central level, with offices at the provincial and district government level. In addition, this component finances the project’s monitoring and evaluation program, a complaint handling system, and technical advisory services and training. 8. Under this fifth component, PAMSIMAS recruited a Program Implementation Advisor under MPWH (1 person, 2010-2013, and 2015-2017); a Program Sustainability Advisor under MPWH (1 person, 2014-2017); a LG Advisor under MOHA (1 person, 2010-2013); and a Training Development Service Advisor (TDS) (2011-2016). Overall about US$ 4 Million of the Grant was spent under this component. Page 59 of 61 The World Bank PAMSIMAS Support Trust Fund (P116236) ANNEX 7. SUPPORTING DOCUMENTS  Project Appraisal Document. World Bank. June 2006.  Aide Memoires (various). World Bank. 2007-2017.  Project Paper on a Proposed Grant for Additional Financing for the Third Water Supply and Sanitation for Low Income Communities Project. World Bank. March 2009.  Implementation Completion Results Report of the Third Water Supply and Sanitation for Low Income Communities (PAMSIMAS) Project. World Bank. June 2015  Implementation Status Reports (various). World Bank. 2006-2015.  Credit agreement. World Bank. 2006.  Loan agreement. World Bank. 2013.  DFAT grant agreement (including amendments). 2009-2014.  Project Paper on a Proposed Additional Loan and a Restructuring for a Third Water Supply and Sanitation for Low Income Communities Project. World Bank. March 2013.  Country Assistance Strategy for Indonesia 2004-2007. World Bank. August 2008.  Mid-Term Review (MTR) Aide Memoire for Third Water Supply and Sanitation for Low Income Communities Project. World Bank. November 2010.  Mid-Term Review Report - Third Water Supply and Sanitation for Low Income Communities Project / WSSLIC-III. Central Project Management Unit. December 2010.  Implementation Completion Results Report of Second Water & Sanitation for Low Income Communities Project. World Bank. June 2011,  Infrastructure Technical Mission for the Third Water Supply and Sanitation for Low Income Communities Project. World Bank. March 2012.  Country Partnership Strategy for Indonesia 2013-2015. World Bank. December 2012.  Laporan Akhir Studi Skala Kecil Analisis Manfaat Ekonomi Proyek Infrastruktur PNPM Mandiri Perdesaan. PNPM Support Facility. July 2012.  PAMSIMAS 2010-2012 - Report of the Impact Study. WASH2gether. August 2013.  Restructuring Paper on a Proposed Project Restructuring of the Third Water Supply and Sanitation for Low Income Communities (PAMSIMAS). World Bank. December 2013.  Support for the Third Water Supply and Sanitation for Low Income Communities Project (PAMSIMAS). Final Report PAMSIMAS I, Trust Fund 071266 (2010-2014). World Bank. September 2014.  Technical Mission Report for the Third Water Supply and Sanitation for Low Income Communities Project. World Bank. March 2015.  Partner Performance Assessment of the Third Water Supply and Sanitation for Low Income Communities. DFAT. April 2015.  Safeguards Performance Review of the Indonesia Portfolio. World Bank. April 2015. Page 60 of 61