The World Bank Report No: ISR6895 Implementation Status & Results Nepal Urban Government and Development Program: Emerging Towns Project (P120265) Public Disclosure Copy Operation Name: Urban Government and Development Program: Emerging Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 21-Dec-2011 Towns Project (P120265) Country: Nepal Approval FY: 2011 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Department of Urban Development and Building Construction (DUDBC), Ministry of Local Development, Ministry of Physical Planning and Works, Town Development Fund Key Dates Board Approval Date 10-May-2011 Original Closing Date 31-Jul-2016 Planned Mid Term Review Date 31-Jul-2014 Last Archived ISR Date 21-Dec-2011 Effectiveness Date 02-Oct-2011 Revised Closing Date 31-Jul-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to improve delivery and sustainable provision of basic services and priority infrastructure in the participating municipalities. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Service Delivery Improvement 5.00 Socio-economic Infrastructure Development 23.50 Institutional Development 6.62 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview There has been significant progress in resolving four of the six critical issues identified during the previous IDA mission in February 2012 thanks to the efforts of the Ministry of Finance (MOF), the Ministry of Physical Planning and Works (MPPW), the Ministry of Local Development (MLD), the Project Coordination Office (PCO), the Department of Urban Development and Building Construction (DUDBC) and the Town Development Fund (TDF). As a result, the MLD has been able to disburse the first year Municipal Grants to the participating municipalities. Substantial progress has been made with the first year sub-projects. The Municipal Support Team (MST) is now working closely with the six municipalities to strengthen core municipal systems and capacities and to finalize the next set of sub-projects. Page 1 of 5 The World Bank Report No: ISR6895 With most of the issues with regard to operationalizing the project at the central level addressed, the action now shifts to the implementing agencies, including the municipalities. In this regard, however, the progress remains less than optimal A number of actions identified during the previous review remain to be met while new ones have also cropped up. Chief among the current issues are lack of continuity in staffing in key implementing agencies, finalizing Grievance Redress Mechanisms (GRMs) in the remaining 2 municipalities, Public Disclosure Copy finalizing the designs of the first year sub-projects and notifying the list of authorized project account signatories to IDA. Finally, a number of procurement actions which are currently pending need speedy resolution. Locations Country First Administrative Division Location Planned Actual Nepal Eastern Region Sunsari Nepal Western Region Palpa Nepal Western Region Kaski Nepal Eastern Region Jhapa Nepal Eastern Region Dhankuta Nepal Western Region Baglung Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Total number of people benefited from urban Number Value 0.00 100000.00 services and infrastructure improvements, of Date 02-Oct-2011 24-May-2012 31-Jul-2016 which females and from disadvantaged groups. Comments Not yet due for measurement. Total number of female beneficiaries Percentage Value 0.00 10.00 Sub Type Supplemental Public Disclosure Copy Total number of beneficiaries from Percentage Value 10.00 disadvantage groups Sub Type Supplemental Percentage increase in citizens who report that Percentage Value 0.00 10.00 they have participated in planning meetings at Date 02-Oct-2011 24-May-2012 31-Jul-2016 ward level. Comments On average, 24.88% citizens Not yet due for measurement. reported participating in planning meetings at ward level in 6 municipalities. For Page 2 of 5 The World Bank Report No: ISR6895 two control municipalities, it was 25.65%. Source: baseline survey Percentage increase in the citizens who report Percentage Value 0.00 10.00 Public Disclosure Copy that the infrastructure services offered by the Date 02-Oct-2011 24-May-2012 31-Jul-2016 municipality better meet their needsthan the Comments Not yet due for measurement. previous year Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target TDFs key financial ratios meet prescribed Number Value thresholds (D/E, DSCR, collection rate) Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Noted below. TDF collection ratiio meets prescribed Number Value 75.00 76.60 90.00 thresholds. Sub Type Date 02-Oct-2011 24-May-2012 31-Jul-2016 Breakdown Comments TDF Debt Service Coverage Ratio meets Number Value 0.56 2.89 1.20 prescribed thresholds Sub Type Date 02-Oct-2011 24-May-2012 31-Jul-2016 Breakdown Comments TDF Debt-Equity Ratio meets prescribed Number Value 8.00 0.15 6.00 thresholds Sub Type Date 02-Oct-2011 24-May-2012 31-Jul-2016 Breakdown Comments Rapid change due to one time debt-equity swap. Number of municipalities with funded O&M Number Value 0.00 0.00 6.00 plans. Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Municipalities are working with MST to develop O&M plans. Public Disclosure Copy Increase in municipal own-source revenues Percentage Value 15.00 25.00 Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Not yet due for measurement. Systems and guidelines for fiscal transfers to Text Value No Yes (systems and guidelines municipalities revised based on good practice revised and implemented) standards and implemented. Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Revision of the guidelines being done by MLD under a Page 3 of 5 The World Bank Report No: ISR6895 separate program. Bank financing will complement. Guidelines for enforcement of planning Text Value No Yes (guidelines approved and byelaws and building codes approved by applied) Public Disclosure Copy MPPW and implemented by DUDBC in the Date 02-Oct-2011 24-May-2012 31-Jul-2016 participating municipalities. Comments Preparation of guidelines is under progress and is expected to be completed by end-2012. Standard project appraisal systems established Text Value N0 Yes Yes (systems established and and applied to all TDF sub-projects. applied) Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Standard sub-project appraisal systems have been established at TDF and will be used for sub-project appraisals. Direct beneficiaries of capital projects financed Number Value 0.00 50000.00 by the municipal grants Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Not yet due for measurement. Municipal grant allocated to programs targeting Percentage Value 0.00 35.00 women, children and disadvantaged groups Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Not yet due for measurement. Approved social and utility sub-projects with Percentage Value 0.00 20.00 beneficiaries contributions Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Not yet due for measurement. Approved sub-projects that are on track in Percentage Value 0.00 90.00 meeting their infrastructure objectives Date 02-Oct-2011 24-May-2012 31-Jul-2016 Comments Not yet due for measurement. Public Disclosure Copy Data on Financial Performance (as of 07-Mar-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120265 IDA-49050 Effective 10-May-2011 30-Jun-2011 02-Oct-2011 31-Jul-2016 31-Jul-2016 P120265 IDA-H6610 Effective 10-May-2011 30-Jun-2011 02-Oct-2011 31-Jul-2016 31-Jul-2016 Disbursements (in Millions) Page 4 of 5 The World Bank Report No: ISR6895 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120265 IDA-49050 Effective XDR 8.80 8.80 0.00 0.00 8.80 0.00 P120265 IDA-H6610 Effective XDR 7.20 7.20 0.00 0.04 7.16 1.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation (1) GIZ will support the PCO in monitoring the Results Framework of the project using the results of the baseline study. (2) The Project Implementation Manual (PIM) will be updated to provide greater clarity on certain implementation issues. Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects There are no related projects. Page 5 of 5