SINT MAARTEN: Sint Maarten Wastewater Management Project May 12-16, 2025 Aide Memoire I. INTRODUCTION 1. A World Bank (WB) implementation support mission for the Sint Maarten Wastewater Management Project (P179067) was conducted between May 12-16, 2025, in Sint Maarten. The objective was to (i) review and accelerate project activities implementation, (ii) review procurement, financial management and environmental and social aspects, (iii) discuss beautification program and additional financing, (iv) identify activities to be undertaken to ensure expansion and sustainability of the sanitation service, and (v) participate in the sanitation workshop on May 15 and 16. 2. The mission was led by Mr. Christophe Prevost (incoming TTL, Senior Water Supply and Sanitation Specialist), Ms. Ana Cecilia Escalera Rodriguez (Water Resources Management Specialist), Ms. Erica Piber (Senior Social Development Specialist), Mr. Michael Hall (Senior Environmental Specialist), Ms. Nancy Bikondo-Omosa (Senior Procurement Specialist), Ms. Rina Meutia (Operations Officer), Martin Gambrill (Consultant, Senior Water Supply and Sanitation Specialist), Andy Peal (Consultant) and Ms. Natalia Cecilia Bavio (Consultant, Financial Management Specialist who participated remotely). The complete list of government officials from the Ministry of Public Housing, Spatial Planning, Environment, and Infrastructure (VROMI) and personnel from National Recovery Program Bureau (NRPB) that participated in the mission can be found in Annex 1. 3. The mission would like to extend its sincere gratitude to the minister of VROMI and its staff and to the NRPB, for their active cooperation and commitment to ensuring a productive mission. This Aide Memoire (AM) summarizes the key findings of the mission and agreed actions. The AM will not be subject to public disclosure. II. PROPOSED PROJECT DATA AND MILESTONES Table 1: Key Project Data Government Request, date Financing, source & amount Proposed Implementation Period, years The Steering Committee of the - Sint Maarten: Hurricane Irma 3.5 years Sint Maarten Recovery Recon., Rec., & Res. Prg TF – Reconstruction and Resilience US$10 Milions Trust Fund agreed on March 9, - 2022, to allocate US$10 Million - Govenrment of Sint Maarten – for improvement of wastewater US$15 Millions services (remaining amount to be co-financed by GoSM). - On May 23, 2025, the Project disbursed US$715.000 i.e. 7% of the US$10 million TF financing. Project Development Objective (PDO) (i) Increase access to safely managed sanitation services (ii) Improve sustainability and resilience of wastewater management Project Components 1. Wastewater Infrastructure Investment (US$20 million) 1 2. Technical assistance for sustainable and resilient wastewater management (US$3 million) 3. Project Management (US$2 million) Table 2: Project Milestones Preparation Appraisal Negotiations VP Signing Effectiveness Project closing approval 12/20/22 12/30/23 07/06/24 08/08/2024 08/16/24 09/11/24 06/30/2028 III. IMPLEMENTATION PROGRESS 4. Main Findings of the Mission. The following are the main conclusions from the mission and meetings held: • The Project is progressing according to schedule and all activities are expected to be completed before the closing date of June 30, 2028, based on the updated work plan (see Annex 2). To maintain momentum, it will be important to expedite both the technical design and, subsequently, the procurement process for the upgrading of the wastewater treatment plant and the construction of the sewerage system, which is scheduled to be launched in January 2026. It is recommended that NRPB proactively share any documents requiring Bank review or approval to help keep the project on track. Additionally, strong and sustained commitment from VROMI will be vital to achieving the Project’s development objectives and maximizing its overall impact. • The Project presents a critical opportunity to develop an enabling environment to address the challenging sanitation situation. The extent of the sewer network is limited and connected to only around 11% of the population. The balance (89%) uses onsite sanitation – mainly septic tanks (of some kind) and soakaways. Overall, it is estimated that around three-quarters (74%) of the population’s excreta are unsafely managed, resulting in a significant risk of exposure of both the public and local marine ecosystems to raw, hazardous wastewater and fecal sludges. A blend of both sewered and onsite sanitation technical and non-technical interventions are recommended. • Priority interventions for the next 6-12 months requiring timely decision-making by VROMI have been discussed and are presented below: o Establishing a robust enabling environment by developing and adopting the necessary policy, legal, institutional, financing, and regulatory frameworks to support the development of safely managed sanitation services. This will require VROMI leadership to build consensus amongst key stakeholders and adopt quickly critical guidelines and legislation, including a levy and dedicated fund for sanitation. o Maximizing sanitation infrastructure impacts through the design and implementation of a pragmatic sewerage connection strategy that ensures optimal use of both existing and future sewerage infrastructure, thereby enhancing service coverage and operational efficiency. o Clarifying the institutional arrangements for the future management, operation, and maintenance of the wastewater collection and treatment infrastructure on the island is a key priority for the sustainability of the Project investment. This includes clearly defining the respective roles and responsibilities of government institutions and the 2 private sector in overseeing and managing the Project’s infrastructure investments. This will have to be discussed and agreed on during the next supervision mission. o Strengthening fecal sludge management countrywide by enhancing policies and regulations for on-site sanitation to ensure the safe containment, collection, and treatment of septage from septic tanks—the primary sanitation solution for 89% of Sint Maarten’s population— to safeguard public health and protect critical marine ecosystems. 5. Project status and progress of project activities. The progress toward achieving the PDO is rated Satisfactory, indicating that the objectives are attainable by the closing date, provided that the project activities continue to be implemented as scheduled. The Implementation Progress (IP) rating is Satisfactory considering i) the setting up of an experienced PIU team; (ii) a clear action plan is in place, and (iii) noteworthy progress in implementing critical activities that form the backbone of the project. To date the Project has disbursed US$715.000 i.e. 7% of the US$10 million of TF financing. 6. The implementation of the activities under Component 1 is progressing as planned. Component 1 aims to: (i) rehabilitate and upgrade the existing A.T. Illidge Wastewater Treatment Plant, including enhancements to wastewater and sludge treatment processes, improved energy efficiency, and the upgrading of equipment for more accurate measurement and in-depth analysis of wastewater influent and effluent; (ii) expand the sewerage network to cover areas currently not served by wastewater collection; and (iii) rehabilitate the existing sewage system to improve its resilience to climate-related challenges and enhance overall operational efficiency. The NRPB has demonstrated a proactive approach in anticipating potential bottlenecks and identifying opportunities to accelerate the implementation of activities under this component, which is of particular importance as these are the backbone of the project. The World Bank is fully supportive of these efforts and will provide all necessary assistance. 7. In line with the approved work plan, the consultancy contract for design and supervision of civil works in the WWTP and sewerage network was awarded in March 2025. The consultancy firm is expected to carry out its first visit to the country in June, with the inception report to be delivered at the beginning of that month. The first deliverable— a technical and financial assessment that will inform the scope, prioritization, and costing of the infrastructure investments to be undertaken— is expected by September 2025. Given the critical role of this assessment in guiding implementation, the firm will be asked to present its findings by September 15, 2025, to VROMI, NRPB and the World Bank team to jointly review and discuss the proposed options early on, to ensure that the proposed option is the most suitable to achieve the intended impact of the project interventions. 8. The activities under Component 2 Technical assistance for sustainable and resilient wastewater management, are progressing at a steady pace. Component 2 aims to: (i) strengthen the capacity of VROMI (the Ministry of Public Housing, Environment, Spatial Planning, and Infrastructure) in planning, regulation, and oversight of wastewater services; (ii) enhance the policy, legal, and regulatory framework to ensure the safe and sustainable management of sanitation services; (iii) review and develop locally appropriate standards for the safe containment, collection, and treatment of fecal sludge; (iv) develop a national sanitation strategy for Sint Maarten; and (v) create a conceptual design and baseline for surface and seawater quality monitoring. A summary is presented below. 9. VROMI Institutional Strengthening. As part of this activity, a consultant has been engaged to provide strategic and technical support to VROMI in the implementation of the various project activities. The consultant will work in close coordination with NRPB. In parallel, NRPB has prepared Terms of Reference (ToR) for the implementation of a capacity strengthening program, which have been shared with VROMI for review. A meeting between VROMI and NRPB is planned 3 in the coming weeks to discuss and reach agreement on the ToR. Once finalized, the agreed version will be submitted to the World Bank team for review and no objection. 10. National Sanitation Strategy for Sint Maarten. The mission underscored the importance of establishing a robust enabling environment to expand and sustain sanitation services in Sint Maarten. This involves discussing and clarifying several strategic, operational, legal, financial, institutional, and regulatory aspects for the development of both sewered and onsite sanitation services. This endeavor will be led by VROMI and supported by the consultant currently supporting VROMI, with the possibility of engaging in additional required expertise as the work progresses. The first document to be delivered is a draft ordinance to establish a levy to finance the operation and maintenance cost of the sanitation infrastructure, as well as to create a dedicated sanitation fund. This ordinance will be submitted for approval to the Government of Sint Maarten (GoSXM). The second document is the sewerage connection strategy to ensure that existing and future sanitation infrastructure investments translate into actual service delivery for communities. These document drafts are expected to be prepared by September 30, 2025. The outcomes of this work will directly inform the development of the National Sanitation Strategy. 11. Countrywide Fecal Sludge Management Strategy. During the mission, it was suggested to hire an individual consultant to review and enhance existing on-site sanitation policies and regulations. The objective is to ensure the safe containment, collection, and treatment of septage from septic tanks in Sint Maarten. Currently, there is little oversight of septic tank construction and a lack of data on the onsite sanitation systems in use. The evidence available indicates their construction and management vary widely, with many poorly constructed, undersized, connected directly to open drains and/or leaking to local groundwaters. Tank emptying services are provided by private operators, but the service is not adequately regulated or monitored and is costly for local households. As a result, tank owners take steps to avoid emptying, for example ignoring the problem and allowing tanks to overflow, connecting their tanks to open drains and/or “flushing out” t heir tanks during rainstorm events. It is therefore critical to address these challenges to achieve safely managed sanitation in Sint Maarten. To support this effort, the World Bank has shared a draft ToR with NRPB and VROMI, which may serve as a reference for developing the final ToR for this assignment. The procurement process is anticipated to be launched in the first half of 2026. The outcomes of this work will also serve as a critical input to the National Sanitation Strategy. 12. Wastewater Treatment Plant Sludge Management. A consultant has been hired in April 2025 to prepare an independent assessment and ex-post review on the sludge management from the wastewater treatment Plant aspects of the ESA and ESMP. The consultant will work closely with the Design consultant and shall prepare a stand-alone report on sludge management whose findings shall be integrated into the draft ESA and ESMP. 13. Water Quality Monitoring: The contract for the water quality baseline study was awarded in January 2025. Although there were initial delays in starting the work due to logistical challenges with transporting equipment to Sint Maarten, implementation is now underway and progressing well. The study is expected to be completed by mid-June 2025. The water samples will be taken from 6 locations and the WWTP to test for bacteria, nutrients, and pollutants as well as heavy metals in sediments and sludge from the WWTP. The results will form baseline information for the Design and Environmental Assessment Consultant and any future long-term monitoring. 14. Communication. The ToR for implementing the project's communication strategy are currently being prepared. The strategy aims to generate public support and promote community engagement to ensure the successful implementation and long-term sustainability of the wastewater infrastructure and services under the project. The ToR will be shared with the World Bank team in the coming weeks for review. The mission strongly recommended that communication activities are aligned with stakeholder engagement activities included in the SEP and begin without delay to enable early engagement with both beneficiaries and potentially affected communities, fostering transparency, building trust, and encouraging active participation from the outset. 4 15. Beautification Works. The Mission discussed the suggestion of the SXM Trust Fund Steering Committee to integrate beautification activities into the Project aiming at improving the aesthetics of areas surrounding project intervention sites. It was agreed to explore the feasibility of integrating these works. A final decision is expected by November 2025, once the scope of the civil works has been discussed and agreed. 16. Workshop on Sanitation and Marine Ecosystems. The Project in collaboration with VROMI and the World Bank successfully hosted a workshop on Citywide Inclusive Sanitation and marine ecosystem protection on May 15–16, 2025, The event was opened by the VROMI minister and brought together about 35 national stakeholders and international experts to advance an integrated approach to urban sanitation and coastal environmental management on the island. The two-day workshop provided a platform for dialogue, learning, and strategy development, by focusing on (i) the links between inadequate sanitation, marine ecosystems & related impacts; (ii) reviewing solutions for both sewered and onsite sanitation service provision, (iii) discussing financing strategies, policy and regulatory instruments and institutional strengthening that support inclusive and sustainable infrastructure; and (iv) outlining a roadmap to improve safely managed sanitation tailored to Sint Maarten. This workshop forms part of a broader technical assistance program led by the World Bank to strengthen national capacity in delivering inclusive, resilient, and sustainable sanitation services—aligned with marine protection priorities. 17. Procurement. There are 18 activities in the procurement plan for an estimated total value of US$ 21.8 million, representing 87% of project funds. Seven contracts have been signed. They amount to US$ 618,976. The procurement process for contracting the design and supervision consultant has been completed and the contract has been signed. The main outputs of this consultancy are (i) the final design and bidding documents for the construction and operation of sewage network and WWTP, (ii) the ESA, and (iii) the supervision of the construction works. The largest project’s contract is the construction and operation of the sewage network and wastewater treatment plant (WWTP), estimated at US$18 million in the current Procurement Plan. Procurement of this contract depends on the inputs from the design and supervision consultancy, which will provide the final design of the sewage network and WWTP and the corresponding bidding documents. To keep the project on track, the procurement process and award for this contract should be expedited to ensure that the contract is completed six months prior to the Project closing date of June 30, 2028. STEP shows that 7 activities are delayed for an average of 48 days and NRPB needs to update those activities in STEP. 18. Financial Management. NRPB continues to maintain adequate FM arrangements that function effectively and provide timely, reliable information necessary for managing and monitoring Project implementation. The Project remains compliant with the FM covenants of the Financing Agreement, and no FM issues were identified during the review. The IFR due on May 15 has been timely submitted by NRPB and it is under Bank’s review. The FM team has requested minor revisions to the 2025 annual budget format and figures, which NRPB will address. Given the limited project expenditures in FY 2024, NRPB requested an exception to the standard audit requirement, which the Bank has approved. This exception allows for a combined audit of FY 2024 and FY 2025, due on June 30, 2026. NRPB will continue to oversee arrangements for the external audit, including the renewal of the current external auditor’s contract, which will include provisions for the Project audit. This process is expected to be completed by August 31, 2025. 19. Environmental and Social (E&S) risk management. The mission discussed the status of the Project and the next steps with respect to managing the E&S risks of the project and E&S instruments. There have been no incidents or accidents, a functioning GRM is in place and no grievances have been reported. Commensurate with the stage of the Project, the requirements of the Environmental and Social Commitment Plan (ESCP) are being met: 5 • E&S staffing are in place and diligently carrying out their tasks (ESCP 1.1) • Stakeholder Engagement Plan (SEP) was cleared on Dec 20, 2024, and disclosed by the NRPB and the WB on Jan 8, 2025. • Labor Management Procedures (LMP) was cleared by the WB on Dec 6, 2024, and disclosed by the NRPB and the WB on Dec 11, 2024. • The preliminary Environmental and Social Management Plan (ESMP) for the expansion of the sewerage network was cleared by the WB and subsequently disclosed by the NRPB and WB on Nov 4 and 5, 2024 respectively. The NRPB will update the ESMP once the technical designs are available, conduct additional consultations if required, and submit it for the WB’s prior review and no objection. Once cleared, the NRPB will disclose the final ESMP before launching the bidding process for the sewer network civil works. The E&S measures in the final ESMP will inform the Technical and ES Specifications of the works tender. If the proposed "beautification" part of the scope of works is confirmed, assessment of related E&S risks and impact as well as mitigation measures would be added to this ESMP. • Environmental and Social Assessment (ESA) of the improvement of WWTP. It will be carried out by the selected Consulting Firm and finalized before completing the design phase. • ESMP for the WWTP. The table of contents of the ESMP was cleared for appraisal. The ESMP will be developed by NRPB based on the ESA findings and WWTP design. It will be reviewed and cleared by the WB, consulted on, finalized, and disclosed before launching the civil works tender. The findings of the ESA and ESMP will be used to inform the technical and ES specifications of the bidding documents. • Independent sludge management study. The NRPB already engaged a consultant to conduct an independent assessment review, as an annex to WWTP ESA and ESMP. The role is to independently review and discuss the options for the treatment of sludge and thereby assist with finalization of the ESA and WWTP upgrade design. • Water quality monitoring consultant (ESCP 3.3) has been appointed and began works • Market outreach in preparation for the procurement of works contractors is planned and will draw attention to key issues, such as traffic management and public safety during pipe installation (ESCP 4.1 & 4.2), and the need for C-ESMP, key personnel and other requirements • NRPB is developing knowledge and skills in Safety and Health, and are actively participating in training opportunities provided by the Bank and other sources (ESCP CS1) Over the next few months, tasks that NRPB will be undertaking include: • Managing the program for the design development to integrate timely E&S aspects, and to ensure as far as possible E&S mitigation is incorporated into the design • Overseeing the Water Quality monitoring program and ensure results are shared with the design and ESA consultants • Organizing stakeholder consultations in line with the SEP, and undertaking them with the assistance of the design and ESA consultants as necessary • Assisting the ESA consultant to prepare a fit-for-purpose ESA, for submission for WB review • Developing the communication strategy in line with the SEP • Updating the ESMPs as the technical designs and findings of the ESA become available, and conducting additional consultations where required • Once ready, the ESMPs will be submitted for the WB’s review and no objection, before being disclosed. The information from the ESMPs will be used by NRPB during the preparation of the E&S Requirements of the Works bidding documents • Maintaining the institutional GRM • Reviewing any proposed Beautification measures that may be proposed and advising on any E&S implications 6 IV. NEXT STEPS AND AGREED ACTIONS 20. The following agreed actions have been agreed during the mission: Table 1: Agreed Actions Actions Responsible Due Date Update of Project’s Work Plan NRPB September 30, 2025 ToR for the institutional capacity strengthening NRPB/ June 30, 2025 program shared with the World Bank Presentation of the draft ordinance to establish VROMI, September 30, 2025 a levy and fund to finance sanitation. Presentation of the sewerage connection VROMI September 30, 2025 strategy Presentation of the preliminary results from the NRPB, September 15,2025 technical and financial assessment for the design of the civil works to the World Bank team Organize a meeting to discuss how WORLD BANK/ July 15, 2025 condominial sewerage system will be NRPB incorporate in the infrastructure design Presentation of the institutional arrangements VROMI/ Next supervision for future management, operation, and NRPB mission (November maintenance of the wastewater collection and 2025) treatment infrastructure FM: Renewal of the current external auditor’s NRPB August 31, 2025. contract, which will include provisions for the Project audit. This process is expected Presentation of the TOR for development of a NRPB Next supervision countrywide fecal sludge management mission (November Strategy. 2025) Presentation of the first sewerage connection NRPB Next supervision pilot program mission (November 2025) Procurement: update activities in STEP NRPB By June 30 2025 Next implementation support mission. NRPB/VROMI/WB November 10 to 14, 2025 7 ANNEX 1: LIST OF MISSION PARTICIPANTS Table 2 List of mission participants INSTITUTION NAME POSITION Claret Connor Director Abel Knottnerus Director of Operations Olivia Lake Senior Program Manager Alvaro Vadillo Project Manager SWMP Joan May Head of Financial Management Team Sean Joseph Project Officer Rueben J. Thompson Head of Environmental and Social Team NRPB Yiannis Roussos Environmental Specialist Ursel Biabiany Stakeholder Engagement Coordinator Jo-Ann George Social Specialist Santiago Ibarguen Head of Procurement Team Eduardo Araujo Procurement Specialist Giselle York Head Communications Glenicia Mitchell, Community Outreach Officer Patrice Gumbs Minister of VROMI Kurt Ruan Department Head of New Projects VROMI Project Manager at the New Projects Natalie Parotte Department SWAMP Project Implementation Support Johan Vanteeffelen (Consultant) Christophe Prevost Senior Water Supply and Sanitation World Bank Specialist Ana Cecilia Escalera Water Resources Management Specialist Rodriguez Nancy Bikondo-Omosa Senior Procurement Specialist Erica Piber Senior Social Development Specialist Michael Hall Senior Environmental Specialist Rina Meutia Operations Officer Farah Dorval Water Supply and Sanitation Specialist Natalia Cecilia Bavio Consultant – Financial Management (online) 8 ANNEX 2 : Update Project Work plan (Contract execution in green) 2025 2026 2027 2028 A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Activity Implementation Timeline Water quality testing of six (6) areas Design of sewerage network & WWTP Supervision of sewerage network & WWTP Sludge management assessment Civil works sewage network & WWTP Private connections contracts Capacity strengthening plan of VROMI Wastewater legal framework Water and wastewater strategies Seawater quality monitoring system Communication campaign countrywide 9