Public Disclosure Copy The World Bank Implementation Status & Results Report Metro Manila Wastewater Management Project (P113844) Metro Manila Wastewater Management Project (P113844) EAST ASIA AND PACIFIC | Philippines | Water Global Practice | IBRD/IDA | Investment Project Financing | FY 2012 | Seq No: 12 | ARCHIVED on 13-Jun-2018 | ISR32436 | Implementing Agencies: Land Bank of the Philippines, Maynilad Water Services, Manila Water Key Dates Key Project Dates Bank Approval Date:15-May-2012 Effectiveness Date:19-Oct-2012 Planned Mid Term Review Date:22-Jan-2014 Actual Mid-Term Review Date:30-Jan-2014 Original Closing Date:30-Jun-2017 Revised Closing Date:30-Jun-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve wastewater services in selected sub-catchments of Metro Manila and surrounding areas. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Investments in Wastewater Services by MWCI:(Cost $193.42 M) Investments in Wastewater Services by Maynilad:(Cost $178.33 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The project became effective on October 19, 2012, and the closing date was extended for two years until June 30, 2019. As of May 10, 2018, the overall 6/13/2018 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Metro Manila Wastewater Management Project (P113844) physical accomplishment is 68%, of which, MWCI is 60% and MWSI is 76%. Disbursement as of May 24, 2018, is 64% (52% and 75% for MWCI and MWSI, respectively). The overall results were adjusted to exclude dropped sub-projects and include newly enrolled MWCI sub-projects. While contract signed exceeded the Project’s loan amount, the result of the sub-project assessments during the technical mission conducted in February 2018 revealed that not all previously enrolled sub-projects could be completed by June 30, 2019. In compliance with NEDA recommendation to optimize the loan and following the agreements made in the last implementation support mission, MWCI enrolled additional conveyance sub-projects from the Marikina and U.P. Sewerage Systems to replace the four dropped conveyance contracts in the Ilugin Sewerage System on November 6, 2017. The replacement of delayed conveyance sub-projects of MWCI with fast-moving conveyance sub-projects will allow the full utilization of the loan and the achievement of project development objectives by treating wastewater in line with the PDO. The replacement included conveying the wastewater to STPs through conveyance systems (7 contracts) in the UP/Marikina area. However, close supervision and monitoring of MWCI and MWSI in collaboration with LBP on the conveyance sub-projects will still be conducted on a regular basis to manage project risks or issues that may arise. LBP in collaboration with the Bank’s team proactively conducted technical due diligence in February 2018 on the newly enrolled conveyance sub- projects submitted by MWCI. LBP approved the inclusion of these sub-projects on May 25, 2018. The next steps are for LBP to formally notify and submit requirements to NEDA on June 15, 2018 and for the Bank to confirm that the safeguards are in line with the Bank policies. A meeting was held on May 15, 2018, with NEDA, LBP, WB, MWSI and MWCI to have a better understanding of the documentary requirements and processing the sub-project changes. Based on initial assessment, NEDA clarified that the request is likely seen to go through Investment Coordination Committee (ICC) notation which normally takes a month to complete from the receipt of letter request from LBP. The NEDA representative reiterated that their concerns are mainly the: (a) full utilization of the loan, and (b) completion of sub-projects as targeted, including the sub-project replacements. The MWSS-RO was also notified on the project delays in Valenzuela’s conveyance networks on May 18, 2018. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Substantial Stakeholders  --  Substantial  Substantial Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Reduction of BOD in the collected wastewater in MWCI (Tones/year, Custom) 6/13/2018 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Metro Manila Wastewater Management Project (P113844) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 620.20 1,708.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDPDOTBL  Reduction of BOD in the collected wastewater in Maynilad (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,028.00 908.90 1,848.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDPDOTBL  Population Equivalent in the catchment area that would benefit from the project in MWCI (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 400,000.00 1,200,000.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDPDOTBL  Population Equivalent in the catchment area that would benefit from the project in Maynilad (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 800,000.00 600,000.00 1,300,000.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDPDOTBL  Private Capital mobilized by MWCI (Amount(USD), Custom) 6/13/2018 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Metro Manila Wastewater Management Project (P113844) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 17.52 11.72 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDPDOTBL  Private Capital mobilized by Maynilad (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 63.32 41.26 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 Overall Comments Intermediate Results Indicators PHINDIRITBL  Progress in construction for MWCI (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 52.00 60.00 100.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDIRITBL  Progress in construction for Maynilad (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 85.00 76.00 100.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 6/13/2018 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Metro Manila Wastewater Management Project (P113844) PHINDIRITBL  Increase in wastewater treatment capacity in MWCI (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 165,000.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDIRITBL  Increase in wastewater treatment capacity in Maynilad (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 142,000.00 81,500.00 187,500.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 PHINDIRITBL  Increase in septage treatment before disposal in Maynilad (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 250.00 250.00 250.00 Date 31-May-2012 31-Oct-2017 30-Apr-2018 30-Jun-2019 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P113844 IBRD-81620 Effective USD 275.00 275.00 0.00 175.14 99.86 64% Key Dates (by loan) 6/13/2018 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Metro Manila Wastewater Management Project (P113844) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P113844 IBRD-81620 Effective 15-May-2012 31-May-2012 19-Oct-2012 30-Jun-2017 30-Jun-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 14-Jun-2017 Related Project(s) P145661-FS for Sewerage System Improvement in Caloocan, Malabon and Navotas 6/13/2018 Page 6 of 6 Public Disclosure Copy