The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) Water and Sanitation Development Project (P156634) EASTERN AND SOUTHERN AFRICA | Kenya | IBRD/IDA | Investment Project Financing (IPF) | FY 2017 | Seq No: 16 | Archived on 18-Feb-2025 | ISR03244 Implementing Agencies: Coast Water Works Development Agency, Garissa Water and Saniation Company, Kilifi - Mariakani Water and Sewerage Company Ltd, Kwale Water and Sewerage Company Ltd., Malindi Water and Sewerage Company Ltd, Ministry of Water, Sanitation and Irrigation, Mombasa Water and Sanitation Services Company, Northern Water Works Development Agency, Tavevo Water and Sewerage Company Ltd, Wajir Water and Sewerage Company, Water Sector Trust Fund, Water Services Regulatory Board 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 26-Apr-2017) The Project Development Objective (PDO) is to improve water supply and sanitation services in select coastal and northeastern regions in Kenya and improve the financial performance of water service providers affected by the COVID- 19 pandemic. Has the Development Objective been changed since Board Approval of the Project Objective? Yes Current Development Objective (Approved as part of Restructuring package Seq. 2 on 08-Sep-2020) The Project Development Objective (PDO) is to improve water supply and sanitation services in select coastal and northeastern regions in Kenya and improve the financial performance of water service providers affected by the COVID- 19 pandemic. 2. COMPONENTS Name Component 1: Rehabilitation and expansion of urban water supply and sanitation services in the coastal region (US$165 of which IDA-SUF US$150 million).:(Cost 184,400,000.00) Component 2: Expansion of water supply and sanitation services in underserved northeastern counties of Kenya (US$73.7 of which IDA US$67 million).:(Cost 33,000,000.00) Component 3: National performance-based financing (US$82.5 of which IDA-SUF US$75 million).:(Cost 83,600,000.00) Component 4: Project management (US$8.8 million of which IDA-SUF US$8 million).:(Cost 7,700,000.00) Feb 18, 2025 Page 1 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions This ISR is done following an Implementation Support Mission conducted between January 14 to February 6, 2025. The overall progress has revealed marked improvement, with the mission noting that many contracts were in the close-out stages. Of a total of 45 contracts, 12 of them are now complete and intended populations have started to benefit. Some of these completed works already benefitting the people include sewer connections in Mombasa, water kiosks in Garissa, ablution blocks in Ukunda and Kwale town, and the office blocks in Kwale and Wajir counties that are providing improved working environment for staff and customer experience for the public. A further 25 works contracts are expected to be completed by August 2025. Some counties, however, posted mixed results. Construction of Fecal Sludge Treatment Facilities in Wajir and Kilifi and other contracts with a completion rate of less than 50 per cent are being closely monitored to ensure results are achieved within the project timeline. Due to delays in fund flows over the past three years and the limited financial capacity of some contractors, several Implementing Agencies have faced challenges resulting in slow progress of works and abandoned project sites. The County Government Additional Allocation Bill (CGAAB) for Financial Year 24/25 is yet to re-introduced for debate in Parliament as of February 10, 2024. Should the impasse continue, and funds not flow to the counties before April 2025, then the Project will be at very high risk of not completing works. The project completion date remains October 31, 2025, with no anticipated extension of the Project completion date. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 015 - 19 Aug Proposed Rating 26 Apr 2017 2024 Political and Governance Substantial Substantial Substantial Feb 18, 2025 Page 2 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Moderate Moderate Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and High Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Low Moderate Stakeholders Substantial Moderate Moderate Overall Substantial Moderate Moderate Feb 18, 2025 Page 3 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes is to improve water supply and sanitation services in select coastal and northeastern regions in Ken Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year People in urban areas 0.00 Apr/2017 13,440.00 31-May-2024 24,000.00 30-Jan-2025 74,300.00 Aug/2024 provided with access to Comments on The target will be achieved once ongoing water distribution contracts are completed, at Improved Water Sources achieving targets diverse times and by August 2025. under the project (Number) People benefiting under the 0.00 Apr/2017 0.00 31-May-2024 6,600.00 30-Jan-2025 130,000.00 Aug/2024 project from a connection to Comments on Reconnections to the system are currently ongoing and will be completed by August 2025 the sewage system or from achieving targets improved septic sludge management. (Number) People with existing 0.00 Apr/2017 1,930,000.00 31-May-2024 1,930,000.00 30-Jan-2025 1,930,000.00 Aug/2024 connections benefiting from Comments on Achieved more hours per day of water achieving targets services. (Number) 0.00 Apr/2017 1,930,000.00 31-May-2024 2,019,300.00 30-Jan-2025 1,985,550.00 Oct/2025 Direct project beneficiaries Comments on Target exceeded. More beneficiaries expected when all contracts are completed. (Number) achieving targets Female beneficiaries 0.00 50.00 50.00 50.00 (Percentage) To improve financial performance of Water Service Providers affected by COVID-19 pandemic Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Feb 18, 2025 Page 4 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) WSPs benefiting from CLSG 1 0.00 Jun/2020 77.00 31-May-2024 77.00 30-Jan-2025 77.00 Aug/2024 that demonstrate an increase Comments on Finalization of analysis ongoing by WASREB in their OCCR by 2022 achieving targets compared with 2019 (annual average). (Number) WSPs benefiting from the 0.00 Dec/2023 0.00 31-May-2024 0.00 30-Jan-2025 22.00 Oct/2025 CLSG 2 that demonstrate an Comments on Implementation of CLSG 2 ongoing increase in their OCCR by achieving targets 2025 compared with 2023 (annual average). (Number) 6.2 Intermediate Results Indicators by Components Component 1: Rehabilitation and expansion of urban water supply and sanitation services in the coastal region (US$165 of which IDA-SUF US$150 million). Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Piped household water 0.00 Apr/2017 2,933.00 31-May-2024 3,500.00 30-Jan-2025 15,500.00 Aug/2024 connections that are Comments on Results will be achieved once rehabilitation and expansion works ongoing in the coastal region benefiting from rehabilitation achieving targets are completed by August 2025. works undertaken under the project. (Number) 0.00 Apr/2017 48.00 31-May-2024 2,100.00 30-Jan-2025 11,900.00 Aug/2024 New piped household water Comments on Water distribution contracts that will generate new customer connections are advanced. The connections under the achieving targets target is on course to be achieved by August 2025 project. (Number) Additional Water delivered 39.30 Apr/2017 43.90 31-May-2024 44.50 30-Jan-2025 44.50 Aug/2024 by WSPs to customers due to Comments on Targets expected to be exceeded once contracts bringing new water from Kwale are project interventions (as achieving targets completed Feb 18, 2025 Page 5 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) reflected in water bills) (Cubic meters/year) People provided with access 0.00 Apr/2017 3,750.00 31-May-2024 4,000.00 30-Jan-2025 4,800.00 Aug/2024 to improved shared Comments on Public ablution blocks completed in Kwale County and Malindi counties. Significant progress sanitation facilities under the achieving targets made in construction in other coastal counties, to be completed by August 2025 project. (Number) Volume of biological oxygen 0.00 Apr/2017 0.00 31-May-2024 0.00 30-Jan-2025 1,600.00 Aug/2024 demand pollution loads Comments on Rehabilitation of the Kipevu WWTP is ongoing. Target will be achieved once works are removed by treatment plants achieving targets completed by September 2025. supported under the project. (Tones/year) Hours of service per day 10.00 Apr/2017 13.00 31-May-2024 14.00 30-Jan-2025 12.00 Aug/2024 provided by coastal WSPs Comments on works to augment access still ongoing, to be completed by December 2025 benefiting from the project. achieving targets (Hours) Non-revenue water (% of 50.00 Apr/2017 50.00 31-May-2024 43.00 30-Jan-2025 43.00 Aug/2024 water that a service provider supplies to its distribution system that is not reflected in revenues). (Percentage) Operations and maintenance 90.00 Apr/2017 65.00 31-May-2024 83.00 30-Jan-2025 100.00 Aug/2024 costs of coastal WSPs Comments on Support for WSS interventions and UTF ongoing, expected to be completed by August 2025. benefiting from the project achieving targets WSPs have started to recover from the impact of Covid recovered from customers. (Percentage) 0.00 Apr/2017 0.00 31-May-2024 0.00 30-Jan-2025 4.00 Oct/2025 Septic sludge treatment Comments on Two FSTPs are under construction in Malindi. Another two have commenced in Kilifi. Target facilities constructed under achieving targets will be achieved by project closing date. the project (Number) Component 2: Expansion of water supply and sanitation services in underserved northeastern counties of Kenya (US$73.7 of which IDA US$67 million). Feb 18, 2025 Page 6 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Improved community water 0.00 Apr/2017 33.00 31-May-2024 22.00 30-Jan-2025 37.00 Aug/2024 points constructed or Comments on Actual figure from previous reporting erroneously included water points from coastal rehabilitated under the achieving targets counties. project (Number) New water supplied to 0.00 Apr/2017 3,176.00 31-May-2024 3,176.00 30-Jan-2025 7,600.00 Aug/2024 northeastern WSPs under the Comments on Additional source identification and drilling works ongoing, to be completed by August 2025 project (m3/day). (Number) achieving targets Gender action plans 0.00 Apr/2017 1.00 31-May-2024 2.00 30-Jan-2025 2.00 Aug/2024 developed and under Comments on Garissa and Wajir Action Plan developed. implementation. (Number) achieving targets People provided with access 0.00 Jul/2016 3,750.00 31-May-2024 11,850.00 30-Jan-2025 13,650.00 Aug/2024 to improved shared Comments on Most facilities in Wajir complete and in use, those in Garissa to be completed by August sanitation facilities achieving targets 2025 (Number) Component 3: National performance-based financing (US$82.5 of which IDA-SUF US$75 million). Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year No Apr/2017 Yes 31-May-2024 Yes 30-Jan-2025 Yes Aug/2024 Comments on The GoK adopted the National Water and Sanitation Investment Plan (NAWASIP) which Guidelines for results-based achieving targets promotes results-based financing. The first ever results-based project in the sector, K-WASH financing adopted (Yes/No) which is co-financed by the Government and IDA was approved in December 2023. Complaints handling system 0.00 Apr/2017 0.00 31-May-2024 2.00 30-Jan-2025 2.00 Aug/2024 (Maji Voice) established in Comments on WSPs supported under the achieving targets project. (Number) Feb 18, 2025 Page 7 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) 0.00 Jun/2020 0.00 31-May-2024 51.00 30-Jan-2025 51.00 Aug/2024 Average performance score Comments on This applies only to CLSG 1. CLSG-2 is still ongoing. An assessment will be undertaken after for WSPs receiving the CLSG achieving targets CLSG-2, by August 2025 (Percentage) Feb 18, 2025 Page 8 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-60300 Effective 263.00 258.10 0.00 231.43 42.64 84.44% IDA-60290 Effective 37.00 16.94 19.23 2.65 14.52 15.43% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-60290 Effective 26-Apr-2017 21-Jun-2017 09-Mar-2018 31-Oct-2022 31-Oct-2025 Feb 18, 2025 Page 9 of 10 The World Bank Implementation Status & Results Report Water and Sanitation Development Project (P156634) IDA-60300 Effective 26-Apr-2017 21-Jun-2017 09-Mar-2018 31-Oct-2022 31-Oct-2025 8. KEY DATES Key Events Planned Actual Approval 26-Apr-2017 26-Apr-2017 Effectiveness 09-Mar-2018 09-Mar-2018 Mid-Term Review No. 01 28-Sep-2020 28-Sep-2020 Operation Closing/Cancellation 31-Oct-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 06-Dec-2019 Restructuring Level 2 Approved on 06-Apr-2021 Restructuring Level 2 Approved on 06-May-2022 Restructuring Level 2 Approved on 13-Oct-2022 Restructuring Level 2 Approved on 24-Apr-2024 Restructuring Level 2 Approved on 28-Jul-2020 10. ASSOCIATED OPERATION(S) There are no associated operations Feb 18, 2025 Page 10 of 10