The World Bank Municipal Services Improvement Project (P169996) REPORT NO.: RES59668 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MUNICIPAL SERVICES IMPROVEMENT PROJECT APPROVED ON MARCH 31, 2020 TO ILLER BANKASI ANONIM SIRKETI (ILBANK) WATER EUROPE AND CENTRAL ASIA Regional Vice President: Antonella Bassani Country Director: J. Humberto Lopez Regional Director: Sameh Naguib Wahba Tadros Practice Manager/Manager: Winston Yu Task Team Leader(s): Sudipto Sarkar, Verena Schaidreiter The World Bank Municipal Services Improvement Project (P169996) ABBREVIATIONS AND ACRONYMS AA Administration Agreement COVID-19 Coronavirus Disease 2019 EC European Commission ECDF European Commission Development Fund EDD End Disbursement Date EU European Union C&V Communications and Visibility DLP Defect Liability Period FRIT Facility for Refugees in Turkiye IBRD International Bank for Reconstruction and Development ILBANK Iller Bankasi Anonim Sirketi IRI Intermediate Results Indicator M&E Monitoring and Evaluation MoTF Ministry of Treasury and Finance MSIP Municipal Services Improvement Project MTR Mid-Term Review PDO Project Development Objective SKI Su ve Kanalizasyon Idaresi (Water and Wastewater Utility) WS Water Supply WTP Water Treatment Plant WW Wastewater WWTP Wastewater Treatment Plant The World Bank Municipal Services Improvement Project (P169996) BASIC DATA Product Information Project ID Financing Instrument P169996 Investment Project Financing Environmental and Social Risk Classification (ESRC) Substantial Approval Date Current Closing Date 31-Mar-2020 31-Dec-2024 Organizations Borrower Responsible Agency ILLER BANKASI ANONIM SIRKETI (ILBANK) Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-90770 31-Mar-2020 17-Mar-2021 13-May-2021 31-Dec-2024 148.80 21.40 127.21 TF-B4957 03-Mar-2021 17-Mar-2021 13-May-2021 31-Dec-2024 145.25 59.18 88.36 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Municipal Services Improvement Project (P169996) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This restructuring paper for the Türkiye Municipal Services Improvement Project (P169996) proposes: (a) a twenty-four-month extension of the closing date of the Loan Agreement (9077-TR) to December 31, 2026, (b) an eleven- month extension of the European Union (EU) Grant Closing date (TF0B4957) to November 30, 2025, and (c) a revision of the Results Framework; and (d) revisions in the disbursement projections due to changes in the scope of work and implementation delays. The extensions of the loan and grant closing dates are necessary to implement activities to allow the Project to achieve its intended results and meet the Project Development Objectives (PDOs). This will be the first extension of the loan closing date and the second extension of the grant closing date, which will lead to a cumulative extension period of two years beyond the original MSIP closing date and will bring the cumulative Project age at the IBRD loan closing to 6.8 years (or 81 months). A. PROJECT CONTEXT 2. The Municipal Services Improvement Project (MSIP) is financed from an IBRD loan in the amount of EUR 135.35 million (USD 148.8 million equivalent) and co-financed by an EU grant in the amount of EUR 133.63 million (USD 143.4 million equivalent) from the European Commission Development Fund (ECDP) under the Municipal Infrastructure Window of the Facility for Refugees in Turkey (FRIT) administered by the World Bank. The Project funds are channeled through a public, national-level financial intermediary banking institution, ILBANK, which is the signatory to the IBRD Loan Agreement and Grant Agreement (for the EU funds) with the World Bank. ILBANK provides the loan and grant proceeds to eligible municipalities or water and wastewater utilities (SKIs), participating in the project. 3. The PDO is to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Türkiye. The Project consists of three components: Component 1 “Environmental Infrastructure Investments” for construction and rehabilitation works for water supply, sanitation, and solid waste management infrastructure to achieve improvements in access, service quality and continuity of municipal services; Component 2 “Technical Assistance for Project Management and Supervision, Capacity Building, Communication and Citizen Engagement”; and Component 3 “Monitoring and Evaluation (M&E) of Trust Fund financed activities” which is fully financed by the EU. 4. The IBRD loan for the Project was approved by the World Bank's Board on March 31, 2020. The IBRD Loan Agreement and the EU Grant Agreement between the World Bank and ILBANK were signed together on March 17, 2021 and the Project was declared effective on May 13, 2021. The EU funding is channeled under the EC-World Bank Partnership on Europe and Central Asia (EEPP) Part II and under the trustee TF072780. An Administrative Agreement (AA) is in place under the European Commission–World Bank Partnership Program for Europe and Central Asia. This AA is dated September 29, 2020 and it provides, among other activities, financing to the MSIP. The AA was amended first on December 14, 2022 to extend the End Disbursement Date (EDD) by two years from June 30, 2023, to June 30, 2025. Subsequently, the closing date for the corresponding EU Grant Agreement between the World Bank and ILBANK for the Project was extended from December 31, 2022, to December 31, 2024, to cover the delayed implementation for grant-financed activities. A second amendment of the AA was signed on March 21, 2024, through which the EDD has been revised to December 31, 2025. B. PROJECT STATUS 5. Progress towards PDO achievement and Implementation Progress are both rated “Moderately Unsatisfactory” since the MSIP Mid-Term Review (MTR) conducted by the World Bank in April 2023. In particular, the MTR confirmed The World Bank Municipal Services Improvement Project (P169996) that although the works had begun through the signing of contracts, the PDO and most of the outcome results targets would not be achievable within the remaining Project implementation period until December 2024, due to previously accumulated delays, requiring an additional time to complete all planned contracts and achieve the PDO. However, due to the recent implementation in project implementation and with the proposed restructuring, the ratings of the project are expected to be upgraded. 6. Reasons for the delay are mainly attributed to: (i) delayed effectiveness (one year after the Board approval); (ii) the impact of the Coronavirus Disease 2019 (COVID-19) which delayed contracting of the consultancy firms responsible for design review, preparation of technical and tender documents and construction site supervision; (iii) changes to proposed works designs that were needed to be processed in the course of the Project implementation to address the updated Turkish regulations for earthquake resilience; and (iv) the impact of major earthquakes which occurred in Türkiye in February 2023, affecting 11 provinces, including three of the targeted municipalities under the Project, Osmaniye, Kahramanmaraş and Adana. Additional information is provided below. 7. There were significant cost increases in contracts. Contract costs increased due to the impact of COVID as supply chains for materials were disrupted and due to difficulty in finding personnel to carry out the works. Furthermore, the prices increased due to the February 2023 earthquake that resulted in shortage of materials and increase in labor. For instance, between 2021 and June 2024, the daily rate of expert labor (concrete specialist) increased 104 percent. In the same period, the price of cement increased by 88 percent. In three signed contracts in the earthquake zone, works were suspended, and an arbitration process had to be carried out to agree on a new bid price. Additionally, for tenders issued after the earthquake, contract prices were higher compared to the appraisal estimates which led to the revision of scope to fit the available budget. Taking into account the increase in the contract prices, the target values in the Results Framework have to be adjusted minimizing the risk of the PDO not being met, with the extended project closing date. 8. The implementation of the Project has improved recently. The implementation of the Project has recently improved due to efforts made by the participating municipalities and ILBANK. The activities under the Project are now being closely monitored and regular meetings between the Bank and counterparts are taking place that have contributed towards increasing the pace of implementation, as seen through increases in disbursements and commitments of the loan and grant through signed contracts. The counterparts have committed to complete the Project activities under a realistic schedule, recognizing the delays and the challenging environment in which this Project is operating post-earthquake. ILBANK has prepared a detailed action plan agreed with the Bank, and the procurement of all the remaining contracts is well advanced (details below). All contracts are expected to be signed by September 30, 2024. There are no high safeguard risks and current implementation ratings on environmental and social safeguards are Satisfactory. The restructuring does not involve changes to project design that impact the Bank’s disclosed environmental and social (E&S) due diligence. 9. Commitments and disbursements have increased recently. The Bank team informed the counterparts that, since the total amounts of the IBRD loan and EU grant cannot be increased, the municipalities may have to contribute more resources than originally planned. The counterparts have also been informed that if any contracts are not completed by the closing date of the IBRD loan or the EU grant, the municipalities or water and sewerage administrations (SKIs) will have to finance the costs after the loan and grant closure to bring contracts to completion. To date, 27 percent of the Project funds (grant and loan combined) have been disbursed. At the same time, about 73 percent of the combined loan and grant resources have been committed through signed contracts and these numbers are expected to increase due to current efforts to increase pace of implementation. Commitments increased from 48 to 73 percent between February 29, 2024 and June 5, 2024. Similarly, the disbursements increased between 17 to 27 percent in the same period. 10. Under Component 1 “Environmental Infrastructure Investments”, there is progress on all activities: a) Consultancy: All seven consultancy services contract packages are under implementation or completed, enabling for the execution of the planned civil works. These consultancy contracts are for the design review, the The World Bank Municipal Services Improvement Project (P169996) preparation of the tender documents, and technical assistance during the bidding process (“Phase 1”), and for the construction site supervision for the water supply (WS), wastewater (WW), storm water and solid waste infrastructure investment works (“Phase 2”). b) Works: Out of the fifteen (15) works contracts, only four (4) remain to be signed and they are all expected to be signed by September 2024 (see Table 1). There are six (6) EU grant-financed contracts (contract numbers 1, 7, 10, 12, 13, and 15 in Table 1 below) where the Defects Liability Period (DLP) will go beyond the EDD of November 30, 2025 for the grant. Other EU grant-financed contracts could face a similar issue with the DLP if there are delays in implementation. The EU is aware of the issue and is considering an additional extension of the EDD. If the additional extension comes through, another Project restructuring will have to be carried out to reflect the revised EDD. For IBRD loan-financed civil work contracts, the DLP can go beyond the MSIP closing date, with an arrangement where the contractor submits a commercial guarantee to the municipality. c) Goods: There are two (2) contracts that are left to be signed (both contracts in Kayseri for procurement of water meters and other goods (water trucks, excavator, and combined canal cleaning equipment). These contracts are already awarded and expected to be signed in July 2024. Table 1. Status of the works contracts Contract Description Financing Value Contract Contract End of DLP2 No. (US$ Signing Closing million)1 Date 1 Adana Kozan İmamoğlu Yedigöze Grant 26.2 28-Jul-23 07-Aug-25 07-Aug-26 Transmission Line Project 2 Adana Yedigöze Drinking WTP* Loan 24.8 05-Oct-23 13-Oct-25 13-Oct-26 Project 3 Adana Kozan Pınargözü Drinking Loan 14.7 04-Mar-24 11-Mar-26 11-Mar-27 Water Transmission Line & Network Project 4 Konya Akşehir WS Project Grant 4.4 01-Dec-22 15-Nov-24 15-Nov-25 5 Konya Ilgın WWTP** Project Grant 8.2 31-Aug-23 08-Nov-24 08-Nov-25 6 Konya Çumra WWTP Project Grant 11.3 31-Aug-23 08-Nov-24 08-Nov-25 7 Kahramanmaraş Northern Districts Grant 18.8 8-May-24 17-Sep-25 17-Sep-26 Integrated Solid Waste Project 8 Kahramanmaraş Elbistan Water Grant+Loan 26.1 27-Jun-24 27-Dec-24 27-Dec-25 Network Project (Grant) (Grant) 27-Oct- 27-Oct- 25(Loan) 26(Loan) 9 Kahramanmaraş Central Water, WW Loan 21.2 21-Aug-24 21-Feb-26 21-Feb-27 and Stormwater Project Lot-1 10 Kahramanmaraş Central Water, WW Grant 15.9 09-Jan-24 18-Jan-25 18-Jan-26 and Stormwater Project Lot-2 11 Kahramanmaraş Ekinözü WWTP Loan 5.4 18-Jan-24 01-Mar-25 01-Mar-26 Project 1 EUR 1 = US$1.08 (exchange rate as of May 30, 2024) 2 The DLP will not be covered for works contracts financed from the EU Grant. The World Bank Municipal Services Improvement Project (P169996) Contract Description Financing Value Contract Contract End of DLP2 No. (US$ Signing Closing million)1 Date 12 Kahramanmaraş Çağlayancerit- Grant+Loan 13.3 18-Jan-24 01-Mar-25 01-Mar-26 Andırın WWTP Project 13 Kayseri Central WWTP Electro- Grant 9.1 23-Jul-24 23-May-25 23-May-26 Mechanical Rehabilitation 14 Kayseri Eastern Region 1st Stage Loan 8.9 13-Sep-24 13-Jan-26 13-Jan-27 Drinking Water Supply Project 15 Osmaniye Central Drinking Water Grant+Loan 74.1 26-Oct-22 31-Mar-25 31-Mar-26 and WW Network Project Lot-2 * WTP = water treatment plant **WWTP = wastewater treatment plant 11. Component 2 “Technical Assistance for Project Management and Supervision, Capacity Building, Communication and Citizen Engagement” is also progressing as per schedule. Activities under this component include overall project management and Communications and Visibility (C&V) aspects of the Project, in line with the EU requirements. The C&V strategy was approved in January 2022. The contract for visual design and web/social media management was signed on July 17, 2023. Since then, the first version of the Project’s website has been developed. The communication strategy for social media has also been prepared and social media accounts of the Project are being launched. 12. Under Component 3 “M&E of Trust Fund financed activities”, the consultant selection process is underway and the contract is expected to be signed by the end of June 2024. The consultant will monitor the progress of the project to ensure that the PDO is being met. The reports of the consultant will be used to take corrective actions on implementation as needed. 13. The Results Framework also needs to be adjusted, mainly due to cost increase and the revised priorities that emerged after the February 2023 earthquake. The combined effect of the COVID-19 pandemic and the February 2023 earthquake in the Project areas led to significant price increases due to shortage of labor and materials. Also, some municipalities under the Project were directly impacted by the earthquake and subprojects needed to be re-designed to make the infrastructure more earthquake resilient. Furthermore, some municipalities had to re-prioritize their infrastructure development plans given various competing demands after the earthquake. Also, after the earthquake, the contractors were not able to carry out the proposed works in some areas that were not considered safe for construction (i.e., Osmaniye – Central Drinking Water and Wastewater Network). Due to these effects mentioned above, some of the tenders had to be cancelled and then re-launched after revising the scope of investments and available budget. Consequently, the proposed Project restructuring will also include the revision of the Results Framework to reflect the changes in the sub-projects scope. The original indicators and their baselines are not being revised but the end-targets of selected PDO and intermediate results (IRI) indicators are being adjusted, including: reduction of around 25 percent in the target to “Access to Water” indicator; increase of around 1 percent in the target of “Access to Sanitation” indicator; and an increase of around 2 percent for “Access to Solid Waste Services” indicator. The revision in the targets for the water infrastructure subprojects are mainly due to the reduction in scope of planned water subprojects in Adana, Kahramanmaraş, and Osmaniye due to the above-mentioned events. The refugee beneficiaries have reduced for the water investments mainly due to the water sub-project in Kayseri. The location of the sub-project, after it was adjusted from the plans at appraisal, is such where there are limited number of refugees. This has resulted in a reduction of total number of beneficiaries, which is accepted by the municipality, Ilbank, and the EUD. The World Bank Municipal Services Improvement Project (P169996) 14. The Project is fully compliant with all relevant fiduciary, environmental and social safeguards. It is also compliant with legal covenants, including audit and financial management reporting requirements. There are no overdue audits under the Project, and previous audits were found acceptable by the Bank. II. DESCRIPTION OF PROPOSED CHANGES C. RATIONALE FOR RESTRUCTURING 15. The Ministry of Treasury and Finance (MoTF) has requested the closing date extension of the Loan Agreement through a letter dated June 26, 2024. The proposed duration of extensions is driven by the time needed to complete Project activities, allowing the MSIP to fully achieve its PDO. The works to be financed by the IBRD loan will be completed by the proposed new loan closing date of December 31, 2026. The AA between the Bank and the EU has already been revised to reflect that the End Disbursement Date (EDD) of the EU Grant will be December 31, 2025. However, to ensure that there is sufficient time to close the accounts, the closing date of the Grant Agreement will be November 30, 2025. At the same time, the EU is considering another extension of the grant. Once the EU grant is extended, another restructuring will be carried out to reflect the new closing date of the EU grant that will include the DLP, in line with the EU procedures that do not consider a contract complete until its DLP is over. On January 11, 2024, ILBANK requested that the EU grant be extended to December 31, 2026. However, this request can only be considered once the above-mentioned AA is revised again to reflect a new EDD of December 31, 2026. 16. The proposed extension of the loan closing date meets all three requirements specified in the paragraph 51 of the World Bank’s Directive for Investment Project Financing, as follows: (i) the project objectives will be achieved with (a) the extension of the loan closing date to December 31, 2026, with the extension of the EU grant to cover the DLP to ensure that financing is in place to complete the project activities; and (b) revision of the targets in the Results Indicators; (ii) the performance of the Borrower (Project Management rating) is Moderately Satisfactory; and (iii) the Bank and ILBANK have agreed on actions that will be undertaken by ILBANK and the participating municipalities to complete the project activities in a timely manner. Moreover, the proposed restructuring does not entail new activities nor change in the project scope and nature. Thus, a Paris Alignment assessment is not required. The restructuring does not involve changes to project design that impact the Bank’s disclosed environmental and social (E&S) due diligence. Therefore, no change is to be made to the Bank's disclosed E&S documents. 17. The proposed restructuring will represent the third Project restructuring (processed as a Level-2). The MSIP was first restructured on February 8, 2021, to allow for: (a) inclusion of an additional Component for M&E of the Trust Fund (EU grant) financed activities; and (b) a reallocation between disbursement categories. The second restructuring was approved by the World Bank on December 19, 2022, to extend the closing date of the Grant Agreement from December 31, 2022, to December 31, 2024, allowing time to cover the implementation period for the grant-financed activities and aligning the loan and grant closing dates. The total amount of grant and loan allocated for each municipality was defined earlier and no changes are foreseen in these amounts. Plans are in place to utilize these funds for each municipality through ongoing and proposed contracts and no further reallocation of resources is planned. For contracts to be signed, if the values exceed the available grant or loans, the municipalities will finance the extra cost. D. PROPOSED CHANGES 18. The proposed changes through this restructuring are: (i) Extension of closing dates of the IBRD loan and EU grant. The closing date of the IBRD Loan will be extended by 24 months from December 31, 2024, to December 31, 2026. The closing date of EU grant will also be extended by 11 months to November 30, 2025, as explained above. In accordance with the World Bank’s The World Bank Municipal Services Improvement Project (P169996) current practice, disbursements from the above-referred Loan 9077-TR and Grant TF0B4957 will be made for withdrawal applications received by the World Bank by close of business on April 30, 2027, and on November 30, 2025. (ii) Revisions to the project implementation schedule and disbursement estimates. The Project implementation schedule and the disbursement estimates will be revised accordingly, to reflect the closing date extension. (iii) Revisions to the Results Framework. The Results Framework will be revised to reflect the reduced scope for some of the subprojects. The indicators and their baseline values are not being revised but the end-targets of the selected PDO and IRI indicators are being adjusted to reflect the change in the scope of works. These changes are summarized in Table 2 and detailed in the Results Framework Annex. Table 2. Summary of changes in the target of indicators3 Current Proposed Baseline Actual target target Indicator [16 Jan [4 Dec [31 Dec [31 Dec 2020] 2023] 2024] 2026] PDO Indicators Objective: To improve host and refugee communities access to environmental infrastructure services People benefitting from safely managed drinking water 0 75,662 1,950,193 1,471,954 services in the selected municipalities as a result of the project [Number] Out of which female [Percentage] 0 49 51 49 Out of which host community [Number] 0 67,047 1,728,142 1,345,343 Out of which refugees [Number] 0 8,615 222,051 112,811 People benefitting from safely managed sanitation services in 0 63,083 2,402,023 2,437,785 the selected municipalities as a result of the project Out of which female [Percentage] 0 49 50 48 Out of which host community [Number] 0 56,880 2,165,834 2,251,053 Out of which refugees [Number] 0 6,203 236,189 186,732 People benefitting from safely managed solid waste services in 0 0 320,685 327,131 the selected municipalities as a result of the project Out of which female [Percentage] 0 0 49 49 Out of which host community [Number] 0 0 288,616 294,418 Out of which refugees [Number] 0 0 32,069 32,713 Intermediate Results indicators Component 1: Environmental Infrastructure Investments Water supply network constructed, rehabilitated and/or 0 80.30 2,062 781 extended [Kilometers] Water treatment plants constructed or rehabilitated [Number] 0 0 1 1 Water reservoirs constructed or rehabilitated [Number] 0 0 43 41 Water pumping stations constructed or rehabilitated [Number] 0 0 16 14 3It should be noted that the end target value has not been revised for all indicators, but the end target date has been changed to match the new project closing date. The World Bank Municipal Services Improvement Project (P169996) Current Proposed Baseline Actual target target Indicator [16 Jan [4 Dec [31 Dec [31 Dec 2020] 2023] 2024] 2026] Sewerage network constructed, rehabilitated and/or extended 0 13 495 329 [Kilometers] Wastewater treatment plants constructed or rehabilitated 0 0 7 6 [Number] Landfills constructed or rehabilitated [Number] 0 0 1 1 Satisfaction rate of female users of environmental 0 0 70 70 infrastructure services and facilities provided by the project [Percentage] Component 2: Technical assistance Municipal authorities and SKIs provided with capacity building 0 0 5 6 support through the Project (Number] Municipal authorities and SKIs that have prepared a 0 2 4 2 Performance Improvement Action Plan through the project [Number] Grievances registered related to delivery of municipal services 0 100 90 90 that are actually addressed and recorded Percentage of women’s needs and investment choices that 0 0 70 70 were implemented by selected municipalities and SKIs III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ The World Bank Municipal Services Improvement Project (P169996) Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-90770 Effective 31-Dec-2024 31-Dec-2026 30-Apr-2027 TF-B4957 Effective 31-Dec-2022 31-Dec-2024 30-Nov-2025 30-Nov-2025 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2020 0.00 0.00 2021 8,300,000.00 0.00 2022 15,000,000.00 3,904,230.00 2023 25,000,000.00 8,416,800.00 2024 40,000,000.00 8,670,400.00 The World Bank Municipal Services Improvement Project (P169996) 2025 60,500,000.00 20,035,000.00 2026 0.00 45,374,000.00 2027 0.00 62,399,570.00 . The World Bank Municipal Services Improvement Project (P169996) . Results framework COUNTRY: Turkiye Municipal Services Improvement Project Project Development Objectives(s) The Project Development Objective (PDO) is to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target To improve host and refugee communities access to environmental infrastructure services People benefitting from safely managed drinking water services 0.00 1,471,954.00 in the selected municipalities as a result of the project (Number) Rationale: 2026 Target value decreases due to scope changes in Adana, Kmaras , Osmaniye. No scope change in Konya and increase in Action: This indicator has been Revised beneficiaries in Kayseri. This also incorporates correction of previous 2024 Target value in PAD that counted Elbistan population twice. The end target date has been changed to match the new project closing date. People benefitting from safely managed drinking water services in the selected municipalities (out of which female) 0.00 49.00 (Percentage) The World Bank Municipal Services Improvement Project (P169996) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: Action: This indicator has been Revised Change based on demographic data obtained by ILBANK from statistics institute. People benefitting from safely managed drinking water services in the selected municipalities (out of which host 0.00 1,345,343.00 community) (Number) Rationale: Action: This indicator has been Revised Change based on demographic data obtained by ILBANK from statistics institute. People benefitting from safely managed drinking water services in the selected municipalities (out of which refugees) 0.00 112,811.00 (Number) Action: This indicator has been Revised People benefitting from safely managed sanitation services in the 0.00 2,437,785.00 selected municipalities as a result of the project (Number) Rationale: Increase explained by population growth projection applied to new 2026 target year. The end target date has been Action: This indicator has been Revised changed to match the new project closing date. People benefitting from safely managed sanitation services in 0.00 48.00 the selected municipalities (out of which female) (Percentage) The World Bank Municipal Services Improvement Project (P169996) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: Action: This indicator has been Revised Change based on demographic data obtained by ILBANK from statistics institute. People benefitting from safely managed sanitation services in the selected municipalities (out of which host community) 0.00 2,251,053.00 (Number) Rationale: Action: This indicator has been Revised Change based on demographic data obtained by ILBANK from statistics institute. People benefitting from safely managed sanitation services in 0.00 186,732.00 the selected municipalities (out of which refugees) (Number) Action: This indicator has been Revised People benefitting from safely managed solid waste services in 0.00 327,131.00 the selected municipalities as a result of the project (Number) Rationale: Slight increase explained mainly by population growth projection to new target year (2026). Change in scope of project is Action: This indicator has been Revised minimal. The end target date has been changed to match the new project closing date. People benefitting from safely managed solid waste services in the selected municipalities (out of which female) 0.00 49.00 (Percentage) The World Bank Municipal Services Improvement Project (P169996) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: Action: This indicator has been Revised The end target date has been changed to match the new project closing date. People benefitting from safely managed solid waste services in the selected municipalities (out of which host community) 0.00 294,418.00 (Number) Rationale: Action: This indicator has been Revised Change based on demographic data obtained by ILBANK from statistics institute. People benefitting from safely managed solid waste services in the selected municipalities (out of which refugees) 0.00 32,713.00 (Number) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Environmental Infrastructure Investments Water supply network constructed, rehabilitated and/or 0.00 781.00 extended (Kilometers) Rationale: Action: This indicator has been Revised Target value decreased due to scope changes in Adana, Kmaras, Osmaniye. The end target date has been changed to match the new project closing date. The World Bank Municipal Services Improvement Project (P169996) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Water treatment plants constructed or rehabilitated (Number) 0.00 1.00 Rationale: Action: This indicator has been Revised The end target date has been changed to match the new project closing date. Water reservoirs constructed or rehabilitated (Number) 0.00 41.00 Rationale: Target value decreased due to scope changes in Adana, Kmaras, Osmaniye. The end target date has been changed to match Action: This indicator has been Revised the new project closing date. Water pumping stations constructed or rehabilitated (Number) 0.00 14.00 Rationale: Target value decreased due to scope changes in Adana, Kmaras, Osmaniye. The end target date has been changed to match Action: This indicator has been Revised the new project closing date. Sewerage network constructed, rehabilitated and/or extended 0.00 329.00 (Kilometers) Rationale: Target value decreased due to scope changes in Osmaniye. The end target date has been changed to match the new project Action: This indicator has been Revised closing date. Wastewater treatment plants constructed or rehabilitated 0.00 6.00 (Number) Action: This indicator has been Revised Rationale: The World Bank Municipal Services Improvement Project (P169996) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Target value decreased due to scope changes in Kmaras (Goksun WWTP). The end target date has been changed to match the new project closing date. Landfills constructed or rehabilitated (Number) 0.00 1.00 Rationale: Action: This indicator has been Revised The end target date has been changed to match the new project closing date. Satisfaction rate of female users of environmental infrastructure 0.00 70.00 services and facilities provided by the project (Percentage) Action: This indicator has been Revised Technical Assistance Number of municipal authorities and SKIs provided with capacity 0.00 6.00 building support through the Project (Number) Rationale: Revision of target from 5 to 6 accounts for one municipality that has both a SKI (utility) and a municipal authority that are Action: This indicator has been Revised part of the project and thus benefiting from capacity building activities under the MSIP project. The end target date has been changed to match the new project closing date. Number of municipal authorities and SKIs that have prepared a Performance Improvement Action Plan through the project 0.00 2.00 (Number) Rationale: Action: This indicator has been Revised To date, two SKI have completed their performance improvement plans. Moving forward trainings to improve the performance of participating authorities and SKI will be undertaken under the broader capacity building support The World Bank Municipal Services Improvement Project (P169996) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target component of the project, and not necessarily reflected in the output of a Performance Improvement Plan. The end target date has been changed to match the new project closing date. Grievances registered related to delivery of municipal services 0.00 90.00 that are actually addressed and recorded (Percentage) Rationale: Action: This indicator has been Revised The end target date has been changed to match the new project closing date. Percentage of women’s needs and investment choices that were 0.00 70.00 implemented by selected municipalities and SKIs (Percentage) Rationale: Action: This indicator has been Revised The end target date has been changed to match the new project closing date. IO Table SPACE . The World Bank Municipal Services Improvement Project (P169996)