FOR OFFICIAL USE ONLY Report No: RES46275 INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF RESULTS-BASED SCALING UP RURAL SANITATION AND WATER SUPPLY PROGRAM APPROVED ON NOVEMBER 12, 2015 TO THE SOCIALIST REPUBLIC OF VIETNAM Water Global Practice East Asia And Pacific Region Regional Vice President: Victoria Kwakwa Country Director: Carolyn Turk The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Regional Director: Benoit Bosquet Practice Manager: Sudipto Sarkar Task Team Leaders: Lilian Pena Pereira Weiss, Hang Diem Nguyen The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) ABBREVIATIONS AND ACRONYMS BCC Behavior Change Communication CEMA Committee for Ethnic Minority Affairs CFCD Citizen Feedback, Complaints and Denunciation CORWSP Coordination Office for Rural Water Supply and Sanitation Program CWS Commune-wide sanitation CY Calendar year DLIs Disbursement-linked indicators EAP East Asia and Pacific EM Ethnic Minority E&S Environmental and social FWSC Functioning household water supply connection GoV Government of Vietnam GRM Grievance Redress Mechanism IDA International Development Association IEC Information – Education - Communication ISR Implementation Status and Results MARD Ministry of Agriculture and Rural Development MOH Ministry of Health MOF Ministry of Finance MS Moderately Satisfactory MU Moderately Unsatisfactory NCERWASS National Center for Rural Water Supply and Sanitation NTP National Target Program ODA Official Development Assistance PAP Program Action Plan PDO Program Development Objective PPC Provincial People’s Committee RB-SupRSWS PforR The Results-based Scaling up Rural Sanitation and Water Supply Program SDR Special Drawing Rights US$ United States Dollar VND Vietnamese Dong VIHEMA Vietnam Health Environment Management Agency WASH Water, sanitation and hygiene The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) DATA SHEET (Results-based Scaling Up Rural Sanitation and Water Supply Program - P152693) BASIC DATA Project ID Financing Instrument IPF Component P152693 Program-for-Results Financing No Approval Date Current Closing Date 12-Nov-2015 31-Jul-2021 Organizations Borrower Responsible Agency State Audit of Vietnam,PIU under VIHEMA,NCERWASS,Rural Water Supply and Sanitation Partnership Coordination Socialist Republic of Vietnam Unit,Coordination Office for Rural Water Supply and Sanitation Program (CORWSP) Program Development Objective(s) The proposed Program objective is to improve hygiene behavior, increase and sustain access to rural sanitation and water supply inrural areas in the Participating Provinces. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date 12-Nov- IDA-57390 10-Mar-2016 08-Jun-2016 31-Jul-2021 200.00 134.40 66.67 2015 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING A. Program status 1. Background. An SDR142.5 million, or US$200 million (equivalent) credit from the International Development Association (IDA) for the Results-based Scaling up Rural Sanitation and Water Supply Program (RB-SupRSWS PforR or the Program) was approved by the Executive Directors of IDA on November 12, 2015. The Financing Agreement was signed on March 10, 2016 and made effective on June 8, 2016. This Restructuring Paper (RP) proposes the first restructuring of the Program, which includes extension of the Closing Date by two years, partial cancellation of some IDA funding and changes to the Results Framework, among other changes. 2. The RB-SupRSWS Program Development Objective (PDO) is to improve hygiene behavior, increase and sustain access to rural sanitation and water supply in rural areas in the Participating Provinces1. This PforR covers 21 geographically clustered provinces in the Northern Mountains and Central Highlands2 regions, and it comprises the following activities: (a) Rural water supply: (a) provision, operation and maintenance of hygienic sanitation, hand washing facilities and water supply in schools; (b) provision, operation, and maintenance of water supply facilities in communities; and (c) provision of technical assistance for, inter alia, operation and maintenance procedures, tariff collection and accounting procedures at village/commune levels. (b) Rural sanitation and hygiene: (a) provision, operation, and maintenance of hygienic sanitation, hand washing facilities, and water supply in health clinics; and (b) scaling up hygiene and sanitation, through demand and supply interventions and latrine construction. (c) Capacity building and implementation support: capacity building, communication, supervision, monitoring, evaluation, and verification of Program results. 3. The Program was designed as part of the National Target Program for Rural Water Supply and Sanitation (NTP-RWSS), the national program to support water supply and sanitation in the rural areas of Vietnam. The NTP-RWSS ended in 2016 and the successor program is the NTP for New Rural Development (NTP-NRD), which supports water supply and sanitation, among other sectors. The NTP-NRDended its first phase in December 2020. Its second phase, for the next 5 years (2021-2025), is now under consideration by the National Assembly and is expected to be approved by the beginning of August 2021 and start implementation in the fourth quarter of 2021. The second phase is designed as a continuation of the first phase, including improvement in water supply and sanitation. 4. The Program’s activities are organized around three Program Results Areas, which have the following Disbursement- Linked Indicators (DLIs): 1Twenty-one provinces in the Northern Mountains and Central Highlands regions of Vietnam. 2The provinces covered are: Dak Lak, Dak Nong, Gia Lai, Kon Tum, Lam Dong, Bac Can, Bac Giang, Cao Bang, Dien Bien, Ha Giang, Hoa Binh, Lai Chau, Lang Son, Lao Cai, Phu Tho, Son La, Thai Nguyen, Tuyen Quang, Yen Bai, Binh Thuan and Ninh Thuan. The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Table 1: Results areas and respective Disbursement-Linked Indicators Results Areas Disbursement-Linked Indicators (DLIs) 1.1. Number of Behavior Change Communication Plans implemented by Participating Provinces3 1. Behavior change and 1.2. Number of new Communes achieving Commune-Wide Sanitation in the Participating Provinces infrastructure 1.3. Number of new or rehabilitated Functioning Water Supply Connections to households in the Participating Provinces 2.1. Number of households in the Participating Provinces with Sustainable Water Systems 2. Sustainability of 2.2. Number of Communes in the Participating Provinces, which have achieved Commune-Wide infrastructure Sanitation two calendar years (CY) ago, where all public kindergarten, primary and secondary schools and health centers maintain Hygienic Status 3. Capacity for 3.1. Number of Annual Program Plans and Program Reports disclosed implementation 3.2. Number of approved Annual Capacity Development Plans implemented 5. Current performance and achievements. The Program’s current Implementation Progress is rated Moderately Satisfactory (MS) in the latest Implementation Status and Results (ISR) report (May 2021). Since 2018, the Program has been making steady progress toward achieving the targeted results. The table below summarizes the DLI achievements4 to date. The DLIs related to institutional strengthening (1.1, 3.1 and 3.2) have been largely achieved (82 percent, 100 percent and 87 percent respectively). Infrastructure DLIs (1.2 and 1.3) have been moderately achieved (57 percent and 49 percent respectively). The sustainability-related DLIs (2.1 and 2.2) were verified for the first time in 2019, since, as per the Financing Agreement, these DLIs were to be measured only two years after the commune-wide sanitation (CWS) communes and functional water connections were achieved. The relatively low achievements of these two DLIs relate to the lower level of implementation in 2017 (see below), but the results improved substantially in 2020 and are expected to improve further in 2021. The Program has disbursed 67 percent of the IDA funds to date. 3 The BCC Plan includes demand generation and supply for hygiene and sanitation. 4 The DLI targets achievements presented refer to fully verified results from 2017 to 2019, and partially verified results in 2020. The 2020 verification of results is currently behind schedule due to an on-going COVID-19 outbreak in Vietnam. Fourteen provinces are fully verified, and the remaining 7 provinces had a paper audit verification for water DLIs and Government reporting for the sanitation DLIs. The final verification for these 7 provinces is expected by end-July, subject to COVID-related conditions. Only verified results of institutional DLIs has been submitted in the World Bank system as reflected in table 2. Based on the partially verified 2020 results, the achievement toward infrastructure development is 85 percent, and the achievement toward sustainable target is 45 percent. The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Table 2: Disbursement-Linked Indicators Achievements4 Program Achieved Achieved Achieved Achieved Achieved Total results % achievement DLI Target 2016 Results 2017 Results 2018 Results 2019 Results 2020 results achieved to date vs target (original) # of Behavior Change DLI Communication Plans 105 12 13 21 20 20 86 82% 1.1 implemented DLI # of new commune 680 0 27 134 229 n/a 390 57% 1.2 achieving CWS # of new or rehabilitated DLI Functioning Water Supply 255,000 0 9,495 53,342 60,873 n/a 123,710 49% 1.3 Connections to HHs DLI # of HHs with Sustainable 105,000 0 0 0 8912 n/a 8,912 8% 2.1 Water Systems # of Communes which DLI have maintained CWS 340 0 0 0 26 n/a 26 8% 2.2 (from 2 CY ago) # of Annual Program DLI Plans and Program 215 43 43 43 43 43 215 100% 3.1 Reports disclosed # Annual Capacity DLI Development Plans 105 18 13 21 19 20 91 87% 3.2 implemented 6. The PDO indicators follow a similar trend as the DLIs. The indicators related to infrastructure development (PDO indicators 1 and 3) are respectively 85 percent and 57 percent achieved; and the PDO indicators related to sustainable WSS services are lagging behind (only 8 percent achieved); while the indicator related to mainstreaming good hygiene behaviors change practices from the program into the broader sector was achieved in 2019. As such, the PDO performance rating is Moderately Unsatisfactory (MU) to reflect the inability of the Program to reach all of its targets (and its PDO) by the current closing date (see explanation in the following paragraphs). However, with the extension proposed in this Restructuring Paper, if implementation maintains a satisfactory pace as per recent years, the PDO rating is expected to be upgraded to MS based on the likelihood of the Program objectives (including DLIs and PDO indicators) being met. Table 3: PDO Indicators Achievements Used Program target Current achievement % of Results Indicators Unit Baseline as DLI (original) (2016-2019) achievement PDO Indicator 1: Direct Program number 5,100,000 4,340,762 85% Beneficiaries PDO Indicator 2: Households with access X number 0 105,000 8,912 8% to sustainable water supply services PDO Indicator 3: Communes achieving X number 0 680 390 57% commune-wide sanitation PDO Indicator 4: Communes where schools and health clinics have X number 0 340 26 8% maintained hygienic status PDO Indicator 5: New approaches for BCC and supply chain activities are included in No/Yes No yes yes 100% the successor program to the NTP3 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 7. Prior Program implementation delays. Program implementation was delayed in 2016 and 2017 due to the late signing of the sub-loan agreements between the Ministry of Finance (MOF) and each of the 21 provinces. The delay was related to the Government of Vietnam’s Official Development Assistance (ODA) debt ceiling policy that was introduced at that time, which resulted in no budget allocation to the Program in 2016 and insufficient5 budget allocation in 2017. The debt ceiling policy was a portfolio-wide issue, that was beyond the control of the implementing agencies, but budget allocations for the Program improved starting in 2018. Since 2018, budget allocations to the Program have increased and progress has been made in meeting the targets of all DLIs. 8. Program Action Plan (PAP). The Program has been largely in compliance with its PAP, including social, environmental, fiduciary and other aspects. The Program received two procurement-related complaints in 2020, which were investigated by the government and resolved. There is no outstanding Program financial audit. However, there are issues with: (i) the reporting of environmental and social (E&S) actions on an adequate scale; and (ii) timely and sufficient budget allocation to provinces, including both investment and recurrent fund allocation (as counterpart funds), as follows: (a) Regarding E&S aspects, the Program is of overall Moderate risk and its compliance with the regulations has been in the Satisfactory range. However, some provinces are weak in reporting, especially in terms of sanitation E&S aspects. The Ministry of Agriculture and Rural Development (MARD) and the Ministry of Health (MoH) have agreed to step up their support to the provinces in order to achieve complete monitoring by the end of July 2021. Particularly the E&S report has recently been submitted with much improvement and final touches are being made to the report by the Ministries. For the social aspects, the Program will continue the implementation and supervision of ethnic minority engagement and gender inclusion guidelines for new civil works, implementation of the Grievance Redress Mechanism (GRM) for affected people, and ensure that no one is worse-off due to land acquisition. All these issues are included in the second quarterly social report submitted to the World Bank. (b) In terms of budget allocation, although the situation has improved substantially since 2018, to date, only eleven provinces have their 2021 investment and counterpart fund allocation approved and the remaining provinces have submitted budget requests to the Provincial People’s Committees (PPCs) for their consideration. Out of these remaining provinces, four provinces are also working toward the approval of the investment budget. Following the trends observed in previous years, the provinces should have budget available by the third quarter of 2021. (c) In terms of counterpart allocations, which are meant to finance ‘institutional and sustainability-related’ activities (such as Behavior Change Communication (BCC), Information – Education – Communication (IEC), technical assistance, capacity building), seven provinces approved their counterpart fund allocation, and the rest have submitted their counterpart funding request to the PPCs for consideration. All PPCs in the program have expressed their commitment to provide sufficient counterpart funds for Program activities and MARD has been working closely with all provinces to expedite and increase counterpart allocations. 9. Compliance. The Program’s annual financial statements are audited by the State Audit of Vietnam. The audit reports have been submitted to the World Bank annually on time, with clean audit opinion and acceptable quality. The 5 In 2017, the Government of Vietnam (GoV) approved only VND101 billion (US$4.3 million) for investment budget for 7 provinces, which were transferred to the provinces by the end of November 2017 due to newly established (and lengthy) funds flow procedures. The GoV later approved an additional budget allocation of VND210 billion as investment budget for 14 provinces, however, due to the complexity and novelty of funds flow procedures, most provinces could not access this allocation on time. The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Program also is not subject to suspension of disbursements. Hence, the Program complies with the World Bank’s Policy on PforRs regarding the conditions needed for extension of the Program closing date. 10. The Program is also compliant with all legal covenants. B. Rationale for Restructuring 11. This proposed restructuring would include the following modifications to the Financing Agreement for the Program: (i) extending the closing date of the Program from July 31, 2021 to July 31, 2023 (this is the first closing date extension for this Program); (ii) canceling SDR 6.1 million, or US$8.84 million (equivalent) in IDA funds; (iii) revising the definition of ‘sustainable water systems’ to reflect the current operational conditions of water supply systems on the ground; (iv) adjusting some of the DLIs targets and unit values, including in the Results Framework, to reflect the partial fund cancellation and the extended implementation period; and other related changes. An official request from the MOF to carry out these modifications to the Financing Agreement for the Program was received on August 2, 2021. 12. Closing date extension. As mentioned in the previous section, the Program suffered from a low ODA budget allocation from 2016 to 2017, and consequently Program activities were not implemented as planned over that period. An extension of the closing date by 24 months is justified for the following reasons: (i) the extension will compensate for two years of insufficient budget allocation, thus allowing the Program to have five full implementation periods, as originally envisaged at appraisal; (ii) the Program has consistently performed well over the past two and a half years and if extended, is expected to achieve substantially all DLIs and its PDO. The Bank team has carried out a projection of results for 2021 and 2022 based on the updated provincial investment and funding plans, and it is likely that all DLIs and PDO indicators targets will be satisfactorily achieved; (iii) the issue of budget allocation has improved considerably which will allow the provinces to have the counterpart funds available for the 2021 and 2022 activities. Specifically, all PPCs have sent formal commitment letters to MARD confirming that counterpart fund would be considered and arranged. Currently 11 out of the 21 provinces have the counterpart funds in place for 2021. It is expected that when the Program is formally extended, the remaining provinces will make the counterpart funds available. 13. The Program supports COVID-19 prevention efforts through specific DLIs that incentivize improved water, sanitation and hygiene (WASH) services. With the Program extension, it is estimated that approximately an additional one million people will improve their hygiene habits and gain access to water and sanitation services (achieving the final target of 5 million people). A Satisfactory or Moderately Satisfactorily Outcome rating could be reached by the extended closing date, which would be difficult to achieve without the extension. The need for the restructuring due to the lack of counterpart funds was identified in the midterm-review of the program and reflected in the Bank’s aide memoire of October 2018. However, following the procedures in Vietnam, the government approved restructuring of the Program issued on February 3, 20216. 14. Cancellation of SDR6.1 million (US$8.84 million equivalent) in IDA funds. According to the Directive 18/CT-TTg dated June 29, 2019, ODA funds cannot be used any longer to finance ‘recurrent-tagged’ expenses such as capacity building, consultants, communication activities and materials etc. These activities are now meant to be covered by counterpart funds. In response to this new regulation, PPCs in the Program have expressed their commitment to allocate sufficient counterpart funds to finance the recurrent expenses for the Program activities. As a result, there is about SDR6.1 6The government approved the restructure of the program through Prime Minister decision approving adjustment of the Program investment policy dated February 3, 2021. The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) million (US$8.84 million equivalent) in IDA funds that would not be utilized by the provinces or the national implementation agencies. MOF has requested the Bank to cancel this amount from the Program IDA allocation, and such cancellation would be effective as August 2, 2021. The respective DLIs from which these funds will be cancelled are described in the next section. 15. Revision of ‘sustainable water systems’ definition. As per the Financing Agreement Appendix, Section I. Definitions, paragraph 34, ‘sustainable water systems’ is defined7 as: ‘at least 80 percent of the number of planned systems connections are Functional Water Supply Connections’. The definition of ‘sustainable water systems’ is the basis of DLI 2.1. In practical terms, this definition requires that at least 80 percent of the design capacity water users of a particular water scheme be connected to the network and be receiving their water bills. The experience from the Vietnam: Results-Based Rural Water Supply and Sanitation under the National Target Program (P127435, which is the PforR that precedes the current RB-SupRSWS PforR, and closed in 2020) shows that users usually take about two years after the system’s commissioning to reach a level of 70 percent connections. A similar rate of connection is being currently observed in the RB-SupRSWS completed schemes. To be consistent with the reality on the ground and past experience, the ‘sustainable water systems’ definition will be revised to reduce the requirement from ‘at least 80 percent’ to ‘at least 70 percent’. The experience from the past PforR also shows that a sufficient level of operation and maintenance cost recovery can be achieved with a level of 70 percent connections if additional efficiency measures are also in place, such as non-revenue water below 25 percent, a system-wide billing and collection arrangement, supply of potable water at least 20 hours/day. These requirements are embedded within the ‘sustainable water systems’ DLI definition and will not being changed. 16. Adjustments of DLIs targets and unit values. The DLIs 1.1 and 3.2 (Implementation of BCC plans and Capacity Building (CB) plans, respectively) were partially achieved. MARD intends to use the additional two-years extension to achieve the remaining targets (19 plans) and to claim the remaining balance allocated to these two DLIs. However, the requirement of submission of annual plans by all participating provinces will be retained but no additional IDA funds will be allocated for disbursement beyond the existing undisbursed balance that corresponds to the remaining target of 19 plans. While these two DLIs will be considered as fully achieved upon receipt the verified achievement of results of 19 plans by 2022, the preparation of plans by all participating provinces is important to promote WASH activities and to sustain the capacity building process related to the sustainability of water schemes and CWS, among others. The unit value of these two DLIs (amount to be disbursed per plan) will not be changed. 17. The unit value of DLI 1.3 (functional water connections) and DLI 2.1 (water sustainability) will be adjusted due to the partial cancelation8 of the IDA resources. The adjustment of unit values for these two DLIs is needed in order to be consistent with the accounting entries in the Bank system, before and after the restructuring. 18. DLI 3.1 (Annual Program Plans and Program Reports Disclosed) was fully achieved in 2020. This DLI will not be extended. However, the requirement that all provinces and MARD submit an annual program plan and disclose all program reports will be maintained. This requirement will be included in the Program Operations Manual as an eligibility criterion for any province to have their overall results verified. It was agreed with MARD that revision of the Program Operation Manual to reflect this requirement will be made expectedly in the third quarter of 2021. 19. Risk Ratings. The current Systematic Operations Risk-Rating Tool (SORT) reflects an overall Moderate risk. However, the fiduciary risk is Substantial due to the risks of limited allocation of counterpart funds by the provinces. The team 7 The ‘sustainable water systems’ definition also includes other criteria (such as provision of clean water, cost recovery, etc.), which are not being modified. 8 The unit values per water connection for DLIs 1.3 and 2.1 are reduced from SDR 203.9 to SDR 179.5 and from SDR 170 to SDR 138 respectively. The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) is monitoring this issue very closely and MARD has stepped up its advocacy work with the PPCs. The delays of Program implementation during the last year came from: (i) the original plan in which Program activities in provinces would be ended by December 2020, and for this reason some provinces were waiting for the formal extension of the Program; (ii) it is expected that once the proposed extension is approved, the budget allocation process will be accelerated in the provinces. This rating will be further assessed in the next five months. The changes processed through this restructuring paper will enhance the probability of the PDO being achieved. Thus, the overall risk will remain Moderate once the program is extended. 20. Once this proposed restructuring is approved, the PDO performance rating could be considered for upgrading to Moderately Satisfactory at the time of the next implementation support review of the Bank, provided the current pace of implementation progress is maintained. II. DESCRIPTION OF PROPOSED CHANGES 21. As mentioned above, the proposed Level 2 restructuring includes: (i) extension of the closing date of the Program from July 31, 2021 to July 31, 2023; (ii) cancellation of SDR6.1 million, or US$8.84 million (equivalent) in IDA funds; (iii) revision of the definition of ‘sustainable water systems’ to reflect the current operational conditions of the water supply systems on the ground; (iv) adjustments to some DLI targets and unit values in the Results Framework to reflect changed circumstances, including the partial funds cancellation and extended implementation period. 22. Section III of this restructuring paper notes proposed changes to the results framework, closing date, DLI allocations, disbursement estimates, and implementation schedule. Annex 2 of this restructuring paper is also revised to reflect reconciliations of some minor information in the Program Action Plan. 23. Closing date extension. As explained in the previous section, the Program’s closing date would be extended by 24 months, from July 31, 2021 to July 31, 2023. Due to the extended implementation period, appropriate modifications are proposed to the financing agreement for consistency, particularly to add the revised implementation periods (calendar years 2021, 2022 and 2023) in the relevant sections. 24. Cancellation of SDR 6.1 million (US$8.84 million equivalent) in IDA funds. Following the rationale provided in the previous section, US$8.84 million equivalent funds will now be provided via counterpart funds by the provinces or the national implementation agencies, and will be cancelled. This cancelled amount would be deducted from DLI 1.3 (Functional water supply connections) and DLI 2.1 (Sustainable water systems). The impact of such cancellation on these DLIs is assessed to be minimal, as the required funds will be provided as counterpart funding. DLI 1.3 has an original allocation of US$73 million, and the proposed reduction by US$4 million represents just 5 percent of its original allocation. This DLI is projected to be overachieved, despite the funding reduction. DLI 2.1 has an original allocation of US$25 million and the proposed reduction by US$4.84 million represents 19 percent of its original allocation. This DLI is on track to be substantially achieved. Its achievement will depend significantly on the allocation of counterpart funds to the Program and, thus, the reduced allocation of IDA funds for the DLI is expected to have a minimal impact. Due to the higher relevance of sanitation and hygiene activities in the Program, the allocation to the respective DLIs will not change. The Program targets will not change. The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Table 4: Revised DLI allocation due to cancellation of IDA funds DLI category Original Proposed Revised balance allocation (US$) cancellation amount after proposed (US$) cancellation (US$) 1.1 Number of Behavior Change Communication Plans implemented 20,000,000 20,000,000 1.2 Number of new Communes achieving Commune-Wide Sanitation 47,000,000 47,000,000 1.3 Number of new or rehabilitated Functioning Water Supply Connections to households 73,000,000 4,000,000 69,000,000 2.1 Number of households in the Participating Provinces with Sustainable Water Systems 25,000,000 4,840,000 20,160,000 2.2 Number of Communes which have achieved Commune- Wide Sanitation two CYs ago, where all public kindergarten, primary and secondary schools and health centers maintain Hygienic Status 15,000,000 15,000,000 3.1 Number of Annual Program Plans and Program Reports disclosed 5,000,000 5,000,000 3.2 Number of approved Annual Capacity Development Plans implemented 15,000,000 15,000,000 25. Revision of ‘sustainable water systems’ definition. The financing agreement Appendix, Section I. Definitions, paragraph 34 (iii) will be modified from: ‘at least 80 percentage of the number of planned systems connections are Functional Water Supply Connections’ to read as ‘‘at least 70 percentage of the number of planned systems connections are Functional Water Supply Connections’. 26. Adjustments of Program’s results framework and DLIs targets. The Program’s results framework and DLI matrix need to be modified to accommodate: (i) the actual achievements for the previous years of Program implementation, and (ii) the extended closing date. While all the PDO and the intermediate targets that have been set to be reached by the Program’s end remain unchanged, the annual targets need to be revised. The DLI Matrix will be revised to reflect the allocation of Credit proceeds corresponding to the actual achievements for the previous years (years 2016-2020), partial cancellation of the credit proceeds (for DLI 1.3 and DLI 2.1) and the new targets for the extended years of Program implementation (years 2021,2022 DLI 1.1 and DLI 3.2). The table below summarizes the changes of the DLI targets and allocations of credit proceeds. The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Table 5: Revised DLIs Allocation of Credit Proceeds and Disbursement per DLIs (as of July 21, 2021) Original Program Original Credit Revised Credit DLI Disbursed (SDR) Target Allocation (SDR) Allocation (SDR) DLI # of Behavior Change Communication 105 14,250,000 14,250,000 11,671,429 1.1 Plans implemented DLI # of new commune achieving CWS 680 33,480,000 33,480,000 19,201,764 1.2 DLI # of new or rehabilitated Functioning 255,000 52,000,000 49,260,000 25,318,901 1.3 Water Supply Connections to HHs DLI 1,511,645 # of HHs with Sustainable Water Systems 105,000 17,810,000 14,450,000 2.1 DLI # of Communes which have maintained 818,235 340 10,700,000 10,700,000 2.2 CWS (from 2 CY ago) DLI # of Annual Program Plans and Program 3,560,000 215 3,560,000 3,560,000 3.1 Reports disclosed DLI # Annual Capacity Development Plans 9,273,333 105 10,700,000 10,700,000 3.2 implemented III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Change in Cancellations Proposed ✔ Reallocation between and/or Change in DLI ✔ Change in Disbursement Estimates ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Program Scope ✔ The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Change in Disbursements Arrangements ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Technical Method ✔ Change in Fiduciary ✔ Change in Environmental and Social Aspects ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/TF Status Closing Date Closing(s) Date Closing Date for Withdrawal Applications IDA-57390 Closed 31-Jul-2021 31-Jul-2023 31-Jan-2024 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS PROPOSED Value Current Cancellation New Reason for Ln/Cr/TF Status Currency Date of Amount Amount Amount Cancellation Cancellation BORROWER'S Disburs IDA-57390- 142,500,000.0 136,400,000. REQUEST FOR ing&Re XDR 6,100,000.00 31-Jul-2021 001 0 00 COUNTRY paying REASONS OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Year Current Proposed 2016 3,873,000.00 0.00 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 2017 17,904,400.00 0.00 2018 29,077,400.00 12,929,941.00 2019 41,882,000.00 41,700,347.00 2020 50,396,400.00 36,832,622.00 2021 44,033,800.00 42,941,972.00 2022 12,833,000.00 30,000,000.00 2023 0.00 25,000,000.00 2024 0.00 10,595,118.00 OPS_DETAILEDCHANGES_EA_TABLE . The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) The proposed Program objective is to improve hygiene behavior, increase and sustain access to rural sanitation and water supply inrural areas in the Participating Provinces. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Improve hygiene behavior in participating provinces PDO Indicator 4: Communes where schools and health clinics 0.00 340.00 have maintained hygiene status (Number) Action: This indicator has been Revised PDO 5: New approached for BCC and supply chain activities are No Yes included in the successor program to the NTP3 (Yes/No) Action: This indicator has been Revised Increase and sustain access to sanitation in participating provinces Page 13 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target PDO Indicator 1: Direct Program Beneficiaries (Diseggregated by: % female, % female headed household; % EM household) 0.00 5,100,000.00 (Number) Action: This indicator has been Revised PDO Indicator 3: Communes achieving commune wide sanitation 0.00 680.00 (Number) Action: This indicator has been Revised Increase and sustain access to water supply in participating provinces PDO Indicator 2: Households with access to sustainable water supply services (gender disaggregated by head of household) 0.00 105,000.00 (Number) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Intermediate Results Area 1: Key hygienic behaviours changed amongst the population and increased access to basic services Intermediate Results Indicator 1: Development and implementation of behavior change communication (BCC) plans, 0.00 105.00 at the provincial, district and commune levels (Number) Action: This indicator has been Revised Page 14 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Intermediate Results Indicator 2: Schools reached through 0.00 1,360.00 targeted BCC campaigns (Number) Action: This indicator has been Revised Intermediate Results Indicator 3: Clinics with antenatal programs 0.00 340.00 which are covered by BCC (Number) Action: This indicator has been Revised Intermediate Results Indicator 4: National BCC program is No Yes launched (Yes/No) Action: This indicator has been Revised Intermediate Results Indicator 5: Increase in hand washing with soap after using the latrine increased among the target 0.00 20.00 population compared to non-program communes (Percentage) Action: This indicator has been Revised Intermediate Results Area 2: Adequate water and sanitation infrastructures in place and in working condition Intermediate Results Indicators 6: New and rehabilitated functioning household water supply connection (FWSC) 0.00 255,000.00 (Number) Action: This indicator has been Revised Intermediate Results Indicator 7: Schools and health centers with new and rehabilitated water supply and sanitation facilities 0.00 2,720.00 (Number) Action: This indicator has been Revised Intermediate Results Area 3: Improved capacity for program implementation Page 15 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Intermediate Results Indicator 8: Annual Program Plans and 0.00 215.00 Reports disclosed (Number) Action: This indicator has been Revised Intermediate Results Indicator 9: Reports on beneficiary 0.00 72.00 feedback received and feedback has been used (Number) Action: This indicator has been Revised Intermediate Results Indicator 10: Approved Annual Capacity 0.00 105.00 Development Plan for Provinces implemented (Number) Action: This indicator has been Revised Intermediate Results Indicator 11: Systems are in place and being used to monitor and support sustainability of commune-wide 0.00 256.00 sanitation (Number) Action: This indicator has been Revised IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01017678 ACTION DLI 1 DLI 1.1: Number of Behavior Change Communication Plans implemented by Participants Provinces Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Number 14,250,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Page 16 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 2016 21.00 2,850,000.00 2017 42.00 2,850,000.00 2018 63.00 2,850,000.00 2019 84.00 2,850,000.00 2020 105.00 2,850,000.00 2021-2022 0.00 Action: This DLI has been Revised. See below. DLI IN01021664 ACTION DLI 1 DLI 1.1: Number of Behavior Change Communication Plans implemented by Participants Provinces Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Number 20,000,000.00 44.79 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 12.00 2,285,714.29 2017 25.00 2,476,190.48 2018 46.00 4,000,000.00 2019 66.00 3,809,523.81 2020 86.00 3,809,523.81 Page 17 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 2021-2022 105.00 3,619,047.61 DLI IN01017677 ACTION DLI 2 DLI 1.2: Number of new Communes achieving Commune-Wide Sanitation in the Participating Provinces Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 33,480,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 50.00 2,461,765.00 2017 200.00 7,385,294.00 2018 400.00 9,847,059.00 2019 540.00 6,892,941.00 2020 680.00 6,892,941.00 2021-2022 0.00 Action: This DLI has been Revised. See below. DLI IN01022245 ACTION DLI 2 DLI 1.2: Number of new Communes achieving Commune-Wide Sanitation in the Participating Provinces Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 47,000,000.00 40.85 Period Value Allocated Amount (USD) Formula Page 18 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Baseline 0.00 2016 0.00 0.00 2017 27.00 1,866,176.47 2018 161.00 9,261,764.71 2019 390.00 15,827,941.18 2020 606.00 14,928,526.30 2021-2022 680.00 5,115,591.34 DLI IN01017676 ACTION DLI 2 DLI 1.3: Number of new or rehabilitated Functioning Water Supply Connections to households in the Participating Provinces Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 52,000,003.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 0.00 0.00 2017 25,000.00 5,098,039.00 2018 105,000.00 16,313,725.00 2019 195,000.00 18,352,942.00 2020 255,000.00 12,235,297.00 Page 19 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 2021-2022 0.00 Action: This DLI has been Revised. See below. DLI IN01021648 ACTION DLI 3 DLI 1.3: Number of new or rehabilitated Functioning Water Supply Connections to households in the Participating Provinces Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 69,000,000.00 36.69 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 0.00 0.00 2017 9,495.00 2,718,176.47 2018 62,837.00 15,270,454.90 2019 123,710.00 17,426,388.24 2020 202,641.00 20,281,878.00 2021-2022 255,000.00 13,303,102.39 DLI IN01017675 ACTION DLI 3 DLI 2.1: Number of households in the Participating Provinces with Sustainable Water Systems Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 17,810,000.00 0.00 Period Value Allocated Amount (USD) Formula Page 20 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Baseline 0.00 2016 0.00 0.00 2017 0.00 0.00 2018 0.00 0.00 2019 25,000.00 4,240,476.00 2020 105,000.00 13,569,524.00 2021-2022 0.00 Action: This DLI has been Revised. See below. DLI IN01021687 ACTION DLI 4 DLI 2.1: Number of households in the Participating Provinces with Sustainable Water Systems Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 20,160,000.00 7.50 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 0.00 0.00 2017 0.00 0.00 2018 0.00 0.00 2019 8,912.00 2,121,904.76 Page 21 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 2020 55,626.00 11,192,652.00 2021-2022 105,000.00 6,845,443.24 DLI IN01017674 ACTION DLI 2.2: Number of Communes in the Participating Provinces, which have achieved Commune-Wide Sanitation two CY ago, DLI 4 where all public kindergarten, primary and secondary schools and health centers main Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 10,700,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 0.00 0.00 2017 0.00 0.00 2018 45.00 1,416,176.00 2019 170.00 3,933,824.00 2020 340.00 5,350,000.00 2021-2022 0.00 Action: This DLI has been Revised. See below. Page 22 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) DLI IN01021684 ACTION DLI 2.2: Number of Communes in the Participating Provinces, which have achieved Commune-Wide Sanitation two CY ago, DLI 5 where all public kindergarten, primary and secondary schools and health centers main Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 15,000,000.00 5.45 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 0.00 0.00 2017 0.00 0.00 2018 0.00 0.00 2019 26.00 1,147,058.82 2020 152.00 6,292,270.50 2021-2022 340.00 7,560,670.68 DLI IN01017673 ACTION DLI 5 DLI 3.1: Number of Annual Program Plans and Program Reports disclosed (Number) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 3,560,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Page 23 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 2016 43.00 712,000.00 2017 86.00 712,000.00 2018 129.00 712,000.00 2019 172.00 712,000.00 2020 215.00 712,000.00 2021-2022 0.00 Action: This DLI has been Revised. See below. DLI IN01021754 ACTION DLI 2 DLI 3.1: Number of Annual Program Plans and Program Reports disclosed (Number) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 5,000,000.00 56.96 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 43.00 1,000,000.00 2017 86.00 1,000,000.00 2018 129.00 1,000,000.00 2019 172.00 1,000,000.00 2020 215.00 1,000,000.00 Page 24 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) 2021-2022 0.00 0.00 DLI IN01017672 ACTION DLI 6 DLI 3.2: Number of approved Annual Capacity Development Plans implemented (Number) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 10,700,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 2016 21.00 2,140,000.00 2017 42.00 2,140,000.00 2018 63.00 2,140,000.00 2019 84.00 2,140,000.00 2020 105.00 2,140,000.00 2021-2022 0.00 Action: This DLI has been Revised. See below. DLI IN01021753 ACTION DLI 1 DLI 3.2: Number of approved Annual Capacity Development Plans implemented (Number) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 15,000,000.00 48.23 Period Value Allocated Amount (USD) Formula Page 25 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) Baseline 0.00 2016 18.00 2,571,428.57 2017 31.00 1,857,142.86 2018 52.00 3,000,000.00 2019 71.00 2,714,285.71 2020 91.00 2,857,142.86 2021-2022 105.00 2,000,000.00 Page 26 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) ANNEX 2: PROGRAM ACTION PLAN . . PAP_CHANGE_TBL Action Completion Description Source DLI# Responsibility Timing Measurement Action 1. Participating Other Client Recurrent Semi-Annually by Government Revised Provinces will systems, such as enhance The National transparency by database for maintaining Citizen Feedback, databases on a) Complaints and complaints and Denunciation responses to (CFCD) which those complaints; stablished nation- and b) beneficiary wide, with feedback to District-level data implementing collection and a agencies and hotline set up by responses to such MARD for the feedback. SupS provinces. Proposed 1. Participating Fiduciary Systems Client Recurren Semi-Annually by Government Provinces will t systems, such as enhance The National transparency by database for maintaining Citizen Feedback, databases on a) Complaints and complaints and Denunciation responses to (CFCD) which those complaints; stablished nation- and b) beneficiary wide, with feedback to District-level data implementing collection and a agencies and hotline set up by responses to such MARD for the feedback. SupS provinces. 2a. Competitive Fiduciary Systems Client Recurrent Continuous reports and plans No Change procurement from MARD applied as per new Government regulations. 2b. All proposals Fiduciary Systems Client Recurrent Continuous MARD reports. No Change for detailed design, construction supervision and bids for civil Page 27 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) works, whether below or above cost estimates shall be evaluated; proposals and bids shall not be rejected only on the basis of minor, non- substantive deviations 2c. State-owned Fiduciary Systems Client Recurrent Continuous MARD reports No Change enterprises dependent on Program ministries/provinc es/departments will not be allowed to participate 2d. Firms and Fiduciary Systems Client Recurrent Continuous MARD reports No Change individuals on the local, national or Bank debarment/suspe nsion lists will not be allowed to participate 3a. Annual Plans Other Client Recurrent Yearly reports and plans Revised and budgets will from MARD be approved at all levels with timely transfer of funds to the Province level as allocated. Proposed 3a. Annual Plans Fiduciary Systems Client Recurren Yearly reports and plans and budgets will t from MARD be approved at all levels with timely transfer of funds to the Province level as allocated. 3b. PPCs allocate Other Client Recurrent Yearly MARD reports. No Change budget to implementing agencies in accordance with inter-ministerial Page 28 of 29 The World Bank Results-based Scaling Up Rural Sanitation and Water Supply Program (P152693) guidance 3c. PPCs fund Other Client Recurrent Yearly MARD reports. No Change allocation should specifically address the under-allocation of funds to sanitation and IEC activities 4. MARD and the Environmental and Social Client Recurrent Continuous MARD and CEMA No Change participating Systems reports. Provinces will jointly develop and implement guidelines to ensure the effective participation of and consultation with local people, including EMs and vulnerable groups. 5. The GoV and Technical Client Recurrent Yearly MARD and No Change the Program VIHEMA reports implementing agencies will implement the BCC component of the Program as per the Program Operational Manual. . Page 29 of 29