Federal Democratic Republic of Ethiopia Regional Horn of Africa Groundwater for Resilience Project (P174867) Aide Memoire for Implementation Review and Support Mission – May 20-24, 2024 I. Introduction 1. A World Bank (WB) Implementation Review and Support Mission for the Ethiopia’s Horn of Africa Groundwater for Resilience Project (HoA GW4R) was conducted from May 20 to 24, 2024. This Project is part of the regional HoA GW4R project, which brings together the Intergovernmental Authority on Development (IGAD) and member countries in the HoA (Ethiopia, Kenya, and Somalia) as part of phase I of the Project. The Project was approved by the Board on June 1, 2022, and declared effective on August 2, 2022. The main objective of the mission was to review implementation progress of the Project since the last mission in December 2023 with the main focus on reviewing the implementation status of the 22 Rural Piped Schemes (RPSs) and associated challenges and provide support to implementing agencies. 2. During the mission, the WB team discussed the implementation progress with the Ministry of Water and Energy (MoWE), and Ministry of Irrigation and Lowlands (MILLs), and the National Ground Water Management Steering Committee (NGWMSC). From May 22 to 23rd, the mission team conducted a field visit to Harare (See Annex 4 for more details). The mission would like to express its sincere appreciation for H.E. Ambassador Asfaw Dingamo (state Minister for WSS under MoWE), H.E. Dr. Abraha Adugna (State Minister for WRM under MoWE), Ato Motuma Mekassa (Special Advisor to the Minister at MoWE), H.E. Dr Berhanu Megerisa (State Minister for Irrigation Development Projects at MILLs for the constructive discussion and guidance provided. We would also like to express our appreciation to all members of the project team for their extensive contribution and support in the process (see Annex 5 for the list of people met during the mission). 3. The main findings of the mission were discussed and agreed with H.E. Ambassador Asfaw Dingamo State Minister for MoWE and H.E Ato Motuma Mekassa in a wrap up meeting organized by PMCU and attended by irrigation and water supply PITs on May 24, 2024. Comments provided by the MoWE and MILLs have been incorporated in this AM. Key project information and performance rating are summarized in Annex 1 II.Mission Findings 4. Summary of key Issues: The WB team acknowledges the progress made since the last mission (December 2023). Most of the agreed actions are completed (See Annex 3). During this fiscal year, contracts were signed for 13 Rural Piped Systems (RPS) (US$ 12.72 million), the procurement of 13 supervision consultants reached the negotiation step, the deputy program coordinator was hired, and the source for 129 hectares of irrigation have been confirmed. The Annual workplan and budget for FY 2024/25 was prepared and approved by NGWMSC, and the preparation of several Terms of Reference (ToRs), review and appraisal of feasibility study and detail design documents, preparation of Request for Proposals (RFPs) and Expression of Interest (EOIs) are ongoing. 5. Despite the progress made and the acceleration plan developed, there are delays in the procurement of key activities. Among other factors, these delays are related to lack of agreed standard delivery time and accountability mechanism for delays, introduction of an additional layer of approval (NOB committee), low quality of procurement documents and prolonged exchange before approval, and inefficient coordination between procurement and technical experts. During the mission, specific actions to unlock these challenges were identified, and an acceleration plan was developed for both ministries. It must be noted that with only one month remaining before end of the FY only US$ 11.89 million was disbursed (29% of the annual budget) and only 3% of the grant is spent and documented. In addition, there are a series of lessons learned from the review of site specific characteristics of the RPSs and a general detected price escalation that may imply reviewing the targets of some project indicators, leading to a restructuring. A consequent analysis will be conducted in the following months to come up with an updated Results Framework. A similar exercise is expected in the other two projects of the regional program in Somalia and Kenya. Component 1: Groundwater Potential Assessment and Infrastructure Development 1 6. Sub-Component 1.1 Groundwater Potential Assessment and Aquifer recharge : The RFP for MAR study and design supervision consultancy was issued to the shortlisted consultant. The PMCU evaluated the technical proposal and submitted it to EC for approval. Additionally, the MAR E&S screening had been conducted by E&S specialists, preparation of RFP for ESIA for MAR was completed, dispatched for shortlisted consultants, technical evaluation of the submitted proposals was completed, and currently technical evaluation report has been sent to EC for approval. It was discussed that the MAR ESIA activities could proceed by hiring the firm, with consideration to delays the ESIA activities until the sites are identified by the MAR consultant. Concerns were raised regarding the budget allocated for implementing the cascade dams for MAR. It was recommended that the team, along with the bank experts, conduct a cost analysis and review the result indicators. 7. The groundwater potential assessment covering 67 woredas has been divided into three groups. The mission reviewed the progress of Group I, which is planned to be done in 5 areas through the drilling of 55 test wells. The EOI from potential consulting firms were evaluated and approved by the EC and the WB. Subsequently, RFP has been issued for the shortlisted consultants, and technical proposals are expected to be received by June 4. For Group II, of the groundwater potential assessment (covering 5 areas and involving the drilling of 37 test wells), the TOR have been prepared and are ready to be uploaded on the STEP, with the RFP already prepared. Group III, which will cover 5 areas through the drilling of 34 test wells, has not yet commenced and it will be initiated following the completion of Group II. 8. Sub-Component 1.2 Increasing Rural and Pastoral access to Water Supply services & Enhancing Service Delivery management capacity: Since the last mission the procurement processes for the 22 RPS have advanced. 13 RPSs with a contract value of US$ 12.72 million have been signed. Bid evaluation report for 4 RPS is submitted for the approval of the endorsing committee, two RPSs under bid opening and the remaining three are pending to recheck the water quality test and to link the O&M of the proposed RO system with closer urban water utilities. While the contract for hiring of supervision consultant for the signed RPSs is currently under negotiation, the process is still delayed and needs to accelerate to avoid mobilization and commencement of work without a supervision consultant. A visit to existing solar powered water supply scheme revealed community reluctance to properly collect service charge and save it for future maintenance as the day to day running cost is minimal, the tariff structure needs to be properly monitored to ensure sustainability of schemes Water quality issues were found in the appraisal of 3 sites in Somali Region out of the 22 WS schemes, suggesting the need for further studies on alternative water sources. The ToRs for new water supply study and construction supervision are being revised based on WB's comments. 9. The mission confirmed from the awarded RPS contracts the cost escalation compared to the original estimates and going forward the need to assess potential impacts in the project scope (number of schemes and beneficiaries) at midterm. It was agreed to proceed in two phases with the procurement of construction lots, leaving the second phase as a buffer to reassess once the first one is awarded. WaSHCOMs need to be established in completed sites, with clear bylaws and O&M arrangements. Woredas and WaSHCOMs should continue to be informed of these arrangements through workshops and trainings. ToRs for hiring the Woreda Technical Support Team are being prepared by the WS PIT and should be finalized promptly. 10. Sub-Component 1.3 Utilization of Groundwater for Small scale irrigation : This subcomponent has been divided into two phases based on assessment of existing boreholes and infrastructure. The first phase includes 238 ha and the second phase will include 145 ha. MILLs have negotiated with Oromia water bureau and secured the sources for development under the project. The Sub-component has made slow progress in last months. The primary challenge is the postponed procurement and contracting for the consultancy to update feasibility studies and detailed designs, as well as supervise Borena Pressurized Irrigation System construction. The Mission strongly advises accelerating all remaining procurement for adequate irrigation system delivery timeframes and proceed ESIA review updates at the same time, following the procurement recommendations that were agreed for the broader project context and summarized in this AM. 11. The mission noted the need of improved coordination with Ministry of Agriculture for IR PIT as regional and local counterpart engagement is critical for participation and eventual infrastructure ownership. It was noted that the PIT is facing challenges in regard to the roadmap to be developed for the second phase. As such, a ToR for 2 a technical consultant has been prepared and will be shared with the WB for review and approval. Borehole prioritization issues have also been revealed. As a priority in this subcomponent, it was agreed that during feasibility studies, the consultant(s) will conduct a cost benefit analysis of various options for energy source as there might be cost and feasibility associated with grid installation. It was also agreed to hold a technical session on irrigation prior to the next mission, potentially to be held in September 2024 once the consultant for the Feasibility Study of phase I produces an inception report. Component 2: Ground Water (GW) Information and Institutions 12. Component 2 continues to lag behind. The ToR for the consultancy service of GW-IMS development has been finalized to design and implement tools for groundwater monitoring systems and integration with the current web- based groundwater data. This ToR was developed by the PIT and approved by the Bank. The additional activity within this component includes a consultancy for assessing the national-level groundwater monitoring system. The evaluation of EOI has been finalized and submitted for approval by the EC. A discussion about advancements in IT equipment procurement was raised, but the procurement was canceled to update the specification to be aligned with overall MoWE IT infrastructure. The bid document is currently being prepared for retendering. Additionally, the servers acquired by IGAD are currently undergoing IT inspection. Other activities of this component related to groundwater national policy/guidelines need to start as soon as possible. Component 3: Project Management, Knowledge, and Operational support 13. The NGWMSC endorsed the 2017 FY (FY25) physical and financial plan . Despite the improvements over the past few months, the communication gap has been observed specifically with the water supply PIT that requires further attention to ensure progress and smooth implementation. This would include regular team meetings. 14. Training and capacity building in the context of the regional program. The mission is pleased to acknowledge the implementation of the capacity building plan both in abroad and locally (including project staffs training on project management and procurement management, financial management; and social and environmental as well as gender mainstreaming). However, recently because of the government’s new direction, the training and experience sharing that was planned on Environmental and social safeguard was cancelled, s the participation of 14 key staff members in the regional event taking place in Nairobi by end of May where all other project countries are attending. The team is concerned about the risk to implement the capacity building plan . It is strongly recommended that the leadership considers an exception for this regional project, which necessitates cross- learning opportunities. 15. Online training materials on water resources management and groundwater. As a result, it was suggested to incorporate and customize this online material after necessary updates to align with the Ethiopian context. In response, the PMCU appointed a focal person to spearhead this initiative. The next steps involve reviewing the materials, identifying necessary modifications, customizing them to suit Ethiopia's needs, and nominating potential trainees. The Bank has also committed to providing support in revising and securing hosting arrangements, such as through CapNet, if needed. 16. Regional Activities: The mission discussed the progress achieved on key areas related to IGAD’s regional GW4R project. Capacity-building sessions on Groundwater (GW) Data Management and resilient Borehole (BH) drilling were delivered to 45 project staff and members of National Focus Group (NFG) from February 15 to 29, 2024, in Adama Town, in collaboration with the IGAD. These NFGs, established by the three MSs, convene regularly to enhance and fortify the institutional capacity of the MSs and harmonize efforts towards groundwater development and management in the region. The Ethiopian team represented by 11 people including the PMCU coordinator, deputy coordinator, PIT coordinators, NFG members and selected staffs have participated on the regional workshop held in Nairobi (May 27-31st, 2024). However, travel for some technical staff has not been approved by the Ministry. Regarding continuous engagement in various regional activities, in a meeting organized by IGAD, WB and the PMCU, it was agreed that there will be a focal person within the PMCU who will act as a coordinator and will facilitate discussions and engagements related to all regional activities with IGAD. Task force members for the Joint Regional Study and transboundary feasibility studies will continue participating in all regional activities and support the program. The WB emphasized the importance of continued participation in the NFG 3 discussions organized by IGAD on a biweekly basis, as a key mechanism for coordination and regional project updates. During the mission, the Third-Party Monitoring Agent team were introduced, and their work program was presented for the upcoming months. For National Groundwater Center, the Ethiopian team will coordinate with IGAD for the delivery of the equipment to get it operational in July 2024. 17. Procurement and Contract Management: The mission reviewed the progress of planned activities, agreed actions of the last mission and procurement and contract management staffing. 99 activities from each procurement category with estimated amount USD 49.9 million are planned by the two implementing agencies (MoWE and MILLs). Contract signed for 34 activities, 34 activities are under implementations, 30 activities are under Pending Implementation and 1 activity is under review by the Bank. The persistent delays in the past in the evaluation of bids/proposals and approval process is improved though it requires much improvement. Among the initiated activities, a contract is signed for the construction of RFPs with a contract value of more than USD 10 million. The procurement of 110 units of motorbikes is delivered. Regarding staffing, there are two procurement specialists in the MoWE but the procurement specialist in MoIL is left and the position is vacant. The recruitment of contract management expert is also not completed, which is highly required for the Project. The mission also noted that most of the agreed actions of the last mission are implemented. The mission noted discrepancy on the progress extracted from STEP and the progress reported by the project office. The progress reported by project office shows good performance. This is because the information in STEP is not updated timely. The project office is required to regularly update STEP to avoid discrepancy. 18. The mission noted that almost all planned activities are very small value, goods, works and consultancy services contracts in which significant progress was expected at this Stage. However, the performance is not as anticipated due to various challenges. Some of the key challenges are: (i) miscommunication, lack of team spirit and clarity on roles and responsibilities among those project staff teams. Delays in submission of complete and updated ToR, specifications, BoQ and drawing by the technical team, not forwarding Bank comments to the technical team, the technical team would not be well informed about the process and are not fully involved in the procurement process, etc. 19. The mission recommends (i) information sharing and procurement performance monitoring meeting on a weekly basis to improve communication among the technical and procurement team . (ii) lack of accountability and monitoring mechanism for any delays at each stage of the procurement process. It is recommended to develop business standard for each unit and staff involved in the process and establish a clear performance monitoring and control mechanism and take remedial measure including contract extension of staffs is based on the performance of the staff involved in the process. (iii) Inadequate procurement planning which is exhibited that many works contracts are planned and approved without having detail design, spec, BoQ, and drawing. It is recommended to cancel the activities with no complete documentation, and the PP should include those contracts with complete documentation and ready for construction. (iv) one technical person from the Bank side is required to closely support the technical team of the project and closely work and monitor the progress of the planned activities from the technical point of view. (v) evaluation of bids and proposals and review and approval of procurement documents took much time. The mission recommends maximum of 10 days for evaluation of bids and proposals and max of 10 days for review and endorsing of the procurement documents to complete the whole process in less than 3 weeks. Performance on Procurement is rated Moderately Satisfactory. 20. Financial Management (FM): FM review was carried out as part of the project JRIS. Based on the review, the FM ISR rating is Moderately satisfactory (MS) and the overall inherent and control risks of the project FM remain Substantial Risk. The noted positive progresses include (a) timely preparation and submission of AWP&B – EFY 2017 plan/budget submitted and obtained the Bank’s no objection before the due date; (b) IFMIS setup completed for the project and FM rollout at MILLs ensured; (c) all IFRs submitted timely with the required quality standards; and (d) financial statements audit submitted timely and with unqualified (clean audit opinion) and no instances of internal control weaknesses/audit findings. The project FM implementations gaps that require closer attention from the project management include (i) lack of transaction level budget control system; (ii) absence of action to amend the EFY 2016 proclaimed budget as AfDB financing rather than IDA; (iii) low disbursement performance (only 7% of the allocation has so far been disbursed), (iv) low budget utilization – nine months utilization being only 3% of 4 the approved fiscal year budget with no any spending on the main components except on component 3 (Project management); and (v) the continued lack of internal audit review support for the project. All these issues should be addressed in a timely manner. 21. Environmental and Social Risk Management (ESRM): The mission noted that E&S risk management activities have shown progress since the last mission. These include capacity building trainings for relevant regional and woreda project workers, E&S screening of water supply, irrigation, and Managed Aquifer Recharge (MAR) subprojects including approval by regulatory bodies, preparation of ESIA ToRs for irrigation and MAR subprojects and also incorporating E&S requirements in assessment/study and design ToRs, preparation of Environmental and Social Management Plans (ESMPs) and where required Resettlement Plans (RPs) for the first batch of water supply subprojects, gender mainstreaming activities including the provision of capacity building training, stakeholder consultations, and establishment of Grievance Redress Mechanism (GRM) at project woredas including mechanism to manage grievances related to SEA/SH cases. 22. However, some gaps were observed on E&S screening (including exclusions and risk ratings); water quality assessment, ensuring sustainable borehole yield/extraction and rangeland management; and proper resettlement planning for temporary and/or permanent land acquisition and access restriction; ensuring the functionality of the grievance mechanism at project sites; considering of social inclusions and health and safety awareness sessions for the community. To bridge these gaps, the mission agreed to conduct further capacity building training with support from the World Bank. The mission also agreed that ESMPs shall be prepared for all test and production borehole drilling activities, and this should be reflected in the EFY 2017 annual work plan. Further, site-specific instruments such as ESMPs and RPs shall be prepared for the planned small dams (< 15m high) under the Managed Aquifer Recharge (MAR) activity, prepare and supervise a generic Dam Safety Plan by qualified engineers, as well as the design and construction of the small dams. Moreover, the mission agreed to establish gender mainstreaming and SEA/SH committee within the general GRM by assigning female focal person from Woreda Women affairs Office. In addition, the structure of the reporting style should reconsider environmental and social standards having comprehensive evidence based on the ESCP. The report should also be all-inclusive. The proposed timeline for completion of the main outstanding activities is summarized in the agreed action table. At this stage, the E&S performance of the project is Moderately Satisfactory. 23. Monitoring and Evaluation: The mission recognized: (i) the client’s effort including timely submission of quarterly, as well as the 2016 FY plan and the 2017 FY budget and physical plan endorsed by the GWMSC; (ii) active participation in biweekly meeting for reviewing the progress and addressing the key challenges regardless of delays in implementation particularly for the 22 RPSs; and (iii) initiation of site registry for irrigation activities. It is agreed that i) the PMCU and PITs to continue the site registration including site eligibility and next stages of form 3, 4; ii) closely follow up implementation of the 2017 FY plan in accordance to the schedule using the task tracker, agreed actions from the biweekly meetings, and other measures; (iii) revise/update the project result Framework jointly with the Bank; and (iv) Facilitate the work by national GW center to feed into the MoWE’s Central Water Resource Information System. Regarding the projects result framework, it was agreed that the WB team will review it based on lessons from the procurement of first batch of RPS, cost escalation and other factors related to demand projections, and will and re-scope the cost budget to ensure alignment of activities and current budget allocation. III.Next Steps 24. The mission has agreed on steps to address the key issues found in this AM, including reinforcing training for regional offices to set expectations on eligibility criteria and quality of designs, reducing the role of the endorsement committee to two stages, prioritizing the project in higher-level messages, and developing a realistic acceleration plan to meet the disbursement target (See Annex 2 for details). As part of a regional HoA project, participation of staff in regional workshops and training needs to be reinforced and approved by management. The WB team reemphasized the commitment of the Project coordinator and the need of acceleration on Component 1 and 2. The next mission is to be scheduled between November and December 2024 in coordination with ISM for the next four countries under this regional project. 5 Annex 1. Key project information and performance ratings Project Development Objective (PDO): To increase the sustainable access and management of groundwater in the Horn of Africa's borderlands. Key Project Project Performance Ratings Data IDA E0120 (Grant) Credit Amount: US$210 million Previous Current Approval date: 1st June 2022 Progress towards PDO MS MS Effectiveness date: August 2, 2022 Overall implementation MS MS Closing date: 31st December 2028 Component 1 MS MS Mid Term Review: 10th March 2026 Component 2 MU MU Net Commitment: US$ millions Component 3 MS MS Disbursement amount (As of May): US$ 14.9 million – 7.1% Financial Management MS MS Project Management MU MS Procurement MS MS Safeguards / ESF MS MS Monitoring and Evaluation MS MS Rating: HS=Highly Satisfactory; S=Satisfactory; MS= Moderately Satisfactory; U=Unsatisfactory; HU=Highly Unsatisfactory Annex 2 List of Agreed Actions N0. Agreed action Responsible Timeline A Components & Sub Components A-1 Component 1.1 Groundwater potential assessment (GWP Assessment) -Group 1: Notification of 1 PMCU June 26th , 2024 technical report and invitation of financial opening MAR design and supervision: Kick of June 28th , 2024 2 PMCU Meeting + Commencement ESIA for MAR: approval of technical 3 PMCU May 30th , 2024 proposal by EC Groundwater potential assessment (GWP Assessment) -Group 2: Upload PP and no PMCU July 9th, 2024 4 objection from WB A-2 Component 2 GW-IMS: preparation of RFP approves by 1 EC and WB PMCU June 5th , 2024 IT Equipment procurement: negotiation and June 25th , 2024 2 PMCU award National GW monitoring system assessment: July 8th , 2024 3 Notification of technical report and invitation PMCU of financial opening ESF 6 Prepare ESMPs for drilling of test boreholes Prior to under Subcomponent 1.1 groundwater launching PMCU and Water 1 potential assessment and production procurement for Supply PIT boreholes under Subcomponent 1.2 borehole drilling utilization of groundwater for water supply. contractors Prior to launching procurement for Prepare ESMPs and RPs for the planned small dams small dams (< 15m high) under 2 PMCU construction Subcomponent 1.1 Managed Aquifer contractors and Recharge (MAR) activity, during construction of the small dams Prior to launching procurement for Prepare and supervise a generic Dam Safety small dams 3 Plan by qualified engineers as well as the PMCU construction design and construction of the small dams. contractors and during construction of the small dams Conduct capacity building training on Tentatively 31 4 environmental and social risk management PMCU July 2024 (ESRM) including GRM Strengthen the GRM at the project sites to 5 ensure functionality. PMCU. PIT Immediately Submit a comprehensive ESRM 6 implementation and monitoring reports based PMCU. PIT Quarterly on proper reporting template Procurement 1 Preparation of customized TOR for MoWE WS PIT May 31,2024 Procurement of consultants for feasibility Study, Detail Engineering design and contract administration and supervision in QCBS methods (For 24 emergency and 18 Non- emergency sites) 2 Finalization of appraised document for New MoWE WS PIT August 30,2024 20 RPS and submitting final specification and TOR to Procurement section 3 Recruitment of #1 Contract Management MoWE,WS PIT July 30,2024 Individual consultant through open Market 4 Recruitment of #1 Procurement Management MoWE, WS PIT July 30,2024 Individual consultant through open Market Recruitment of #1 Procurement Management July 30,2024 Individual consultant through open Market for MILLS Irrigation PIT 7 5 Seeing other existing experience and design MoWE/WB May 30, 2024 the way for Procurement of drilling work and Study & design Consultancy service by bundling for Two sites of Miyo and Moyale Woredas 6 Completing the chemical test of and MoWE June 6,2023 submitting to bank Lot 2. Rural water supply system Construction (Civil work, Pipe laying, EM supply and installation, water point construction) for Derwanaje RPS & Maygagle RPS 7 Completing Due diligence for Construction of MoWE May 31,2024 Civil Works, Supply & Installation of Pipes, Fittings and Electro-Mechanical Equipment for “Gabla site” Rural Water Supply Project of Amhara Region 8 Completing Evaluation of bids and proposals MoWE Continuous including review and Endorsement for any procurement activity within 20 days at MoWE 9 Organize information sharing and MoWE and MILLS Continuous on procurement performance monitoring meeting weekly basis on weekly basis to build team spirit and improve communication among the technical and procurement team chaired by the project coordinator and submit the minutes of meeting to the Bank 10 Develop a business standard and MoWE/MIILs continuous accountability and monitoring mechanism for each unit and staff involved in the process and establish a clear performance monitoring and control mechanism and take remedial measure including contract extension of staffs is based on the performance of the staff involved in the process 11 Review the approved procurement plan and MoWE/MIIL Before end of cancel those works contracts with no FS, DD, May for these BoQ, Drawing, Spec and not ready to activities construction in next 12 months and the approved and procurement plan should include those works continues for the contracts with complete documentation and new activities. ready for construction 12 Complete the Contract negotiation for MoWE May 30,2024 Supervision and CA of the signed RPSs Contract and if in case the Mobilization of Contractor not sync with that of the consultant the ministry sends CVs of the assigned Engineers for supervision 13 Training /capacity building on Basic MoWE ,WB and August 30,2024 Procurement for Technical and Procurement MILLS Staff 8 FM Put in place transaction-level budget control PMCU/MoWE Immediate 1 tracking/system. Amend the project budget wrongly proclaimed as AfDB financing to IDA 2 financing MoWE/MoF By July 07,2024 Improve disbursement and utilization 3 performances PMCU/MoWE Ongoing Ongoing (starting 4th Cause the Regular internal audits to plan and quarter of EFY 4 review the project accounts regularly. PMCU/MoWE 2016) 9 Annex 3-Status of Agreed Actions during the last mission Responsi Detail Progress No. Agreed action Timeline ble A Components & Sub Components A-1 Component 1.1 Finalize EoI evaluation and issue RFP for Groundwater RFP is issued st 1 potential assessment (GWP Assessment) -LoT 1 (15 PMCU Dec 31 2022 Woredas) (US$2.3M) MAR design and supervision: Evaluation of EoI for RFP technical evaluation report 2 Shortlisting to be resubmitted to the WB for no objection PMCU Dec 31st, 2023 completed and sent to EC. and issuance of RfP (US$0.6M) RFP technical evaluation report 3 ESIA for MAR, RFP PMCU Jan 15th, 2024 completed and sent to EC. Submit revised ToR for consultancy service to assess the EoI evaluation report completed existing GW monitoring system at the national level and and submitted to EC PMCU 31-Jan-24 identify strategic locations for GW monitoring and installation of data loggers Revise PP A-2 Component 1.2 FS and detailed design for construction of 7 WS RPS: 11 subprojects contract signed st 1 Sent to WB for clearance and advertise bidding by mid WS PIT Dec 31 2023 and 5 projects ready for of Jan 2024 contract signing and 3 bid evaluations completed 2 under Advertise for the construction of 12 sites with confirmed evaluation 2 WS PIT Dec 31st 2023 and safe water sources and finalized designs Under negotiation for 10 sites, Advertise for supervision consultants for 19 sites of st 3 WS PIT Dec 31 2023 invitations issued for 6 projects RPSs and EoI is under process for 6. Advertise EoIs for 89 water supply feasibility studies, Generic ToR got NO from the 4 and design, and construction supervision for the new WS PIT Dec. 31st 2023 Bank and grouping of RPS and sites as per the WB comment adjustment of ToR is underway Finalize ToR and advertising EoIs for engaging TA Preparation of ToR completed and 5 support consultant to support Woredas on sustainable WS PIT th Jan. 15 2024 PP uploaded onto STEP service delivery Training of Regional Offices and related Woredas on Training was provided in Feb 2024 Before next 6 lessons learned from the first batch of bidding documents WS PIT ISM (ToRs, FS, Engineering designs) A-3 Comp. 1.3 Issue RFP for the feasibility study and detailed design MILLS/P Dec. 31 st, RFP evaluation completed and 1 submitted to EC (375ha) IT 2023 10 Responsi Detail Progress No. Agreed action Timeline ble Issue EoI for ESIA study and get the consultants on- MILLS/P Under revision to incorporate the 2 Dec 31st 2023 newly confirmed water sources board. IT As per MILLs report signing a MoU is not necessary as they MILLs/P 3 MoU between MILLs and MoA signed Jan 31st , 2024 have been executing their IT collaborative mandate in various projects. Confirm the WB coordination mechanisms including the Focal persons are assigned MILLs/P Dec 31 st, 4 nomination of focal points at pertinent regional bureaus IT 2022 and woreda levels Complete and submit to the WB a FLID diagnostic jointly Under Progress with MoA, including opportunities and constraints MILLs/P Before next 5 aligned with similar activities under the Ethiopia Food IT ISM Systems Resilience Project. It will be established after Establishing/strengthening of Irrigation Water Users MILLs/P 6 15-Feb-24 completing the S&D and Associations (IWUA) IT identification of beneficiaries Confirmation by MILLs and Oromia region, sent to WB, MILLs received a confirmation MILLs/P 7 on selected wells and use for irrigation are available for Jan 31, 2024 letter. IT the project A-4 Component 2 Submit the rapid assessment report to WB on alignment The assessment report was 1 PMCU 30-Dec-23 between GW-IMS with the data center of MoWE. submitted to the WB The revised ToR approved by 2 Submit revised TOR for GW-IMS to the WB for review PMCU 30-Dec-23 the Bank EoI is floated and received the 3 Issue RFP for GW-IMS IT PMCU 15-Jan-24 EoI documents After the new Planned for EFY 2017 4 Draft ToR for GW strategy sent to the WB PMCU water policy endorsement Review the annual work plan and ensure that the Capacity building plan is Dec 31st, 5 Capacity Building Plan is properly included and revise PMCU included in the crushed plan 2023 accordingly B FM Budget EFY 2017 plan will be Put in place transaction-level budget control PMCU By the next proclaimed in the name of WB tracking/system. Amend the project budget wrongly Supplementar 11 Responsi Detail Progress No. Agreed action Timeline ble proclaimed as AfDB financing to IDA financing, and y budget confirm these actions completed to the WB proclamation FM rollout at PIT/MIIL Resolve IFMIS setup issues and rollout the FM PIU/ Resolved 2 Dec 31, 2024 implementation at the MILL MILLs Accounting, staffing, and Internal Control Inform the WB about improvements in the project filing The file is well done; regular and documentation system and cause Regular internal PMCU/ Before next project auditing is not yet kept 3 audits to plan and review the project accounts on a MoWE ISM in the plan for this fiscal year regular basis. Audit Submit the EFY 2015 accounts audit report by the due PMCU/ The report was submitted to 4 Jan 07, 2024 date. MoWE the WB C ESRM Prepare Environmental and Social Management Plans ESMP has prepared for all 22 (ESMPs) for the 19 screened water supply subprojects PMCU & WS sub-projects 1 14-Jan-24 and submit the ESMPs to the World Bank for review and PIT clearance Conduct capacity building training, including on OHS Training was provided for 132 2 and Emergency Preparedness and Response, as indicated PMCU 29-Feb-24 participants (16 female) in the ESCP Prior to the Under procurement process for Develop proportionate resettlement plans for sub- PMCU & commenceme ESIA of MAR and Irr 3 projects that involve land acquisition (eg. MAR, WS, and PIT nt of civil Subproject and ESMP Irrigation sub-projects) works completed for WS sub-projects Ensure the establishment of workers’ GRM and Established for 22 WS sub- PMCU & Prior to any 4 operationalization of GRM to be accessible by all types of projects PIT civil works project workers as per the requirement of ESS2 and LMP Establish accessible GRCs at the Kebele level; and Established for 22 WS sub- strengthen the functionality of all the established GRM to projects PMCU & 5 effectively record and resolve any project-related 28-Feb-24 PIT grievances, as described in SEP, for the 19 sites for construction, reporting on this to the WB Ensure E&S focal person delegation exists in the It will be delegated after the 6 Irr PIT 15-Feb-24 established IWUAs and reports to WB. establishment of IWUA 12 Responsi Detail Progress No. Agreed action Timeline ble Submit to the Bank regular monitoring reports on the The 3rd quarter ESHS report PMCU & 7 environmental, social, health, and safety (ESHS) 28-Feb was prepared and sent to WB PIT performance of the project Provide training for established WaSHCOs in 19 sites, Training was provided for 132 8 MoWE Jan 31, 2024 and report to the WB participants (16 female) D M&E Training was provided for Organize training on GEMS for the region and Woreda MoWE 1 Feb 1, 2024 Woreda and Regional focal focal persons for the 19 sites and WB persons from Feb 16- 28, 2024 2 Complete site eligibility for the 19 sites MoWE Jan 31, 2024 Completed for 22 sites E Procurement Prepare crush plan for procurement activities requiring MoWE The crushed plan was prepared 1 revision in scope, timeline, packaging, and estimated PMCU/P Dec31 st, 2023 and approved by the WB. amount, and submit to the WB IT Confirm to WB on mandated shortened standard bid Two ECs were established, and evaluation and approval time ( 5-10 days suggested MoWE the ministry decided to 2 depending on the complexity) of the procurement 31-Dec-23 complete the evaluation in the & MILLs documents by endorsing and evaluation committees given duration by providing the necessary composition, instruction, and resources Confirm to WB one of two proposed options to reduce Two endorsing Committee was the number of documents to be reviewed and cleared by established at MoWE the endorsing committee: (option 1) draft shortlisting MoWE criteria, REOI, shortlisting report, and RFP to be & MILLs 3 reviewed and cleared by State Minister or its delegated. PMCU/P 31-Dec-23 (Option 2) establish a separate endorsing committee for ITs the Bank-financed projects unless it is prohibited by the procurement laws of the FDRE. Confirmation to WB that the procurement team commits According to the MoWE/ to complete the preparation of bidding documents and recommendation, the project MILLs 4 RFPs within 4 days after receipt of complete and PMCU/P 31-Dec-23 BDs have been prepared and comprehensive requirements and documents from the will continue. ITs technical team through the project coordinator Recruit additional staff to reinforce PIUs (deputy project All are on board except the coordinator -PMCU, water engineer, electromechanical MoWE contract management specialist 5 engineer, and contract management expert) to closely PMCU/P 28-Feb-24 follow up on the implementation of signed contracts and IT monitor the progress through STEP, 13 Responsi Detail Progress No. Agreed action Timeline ble Provide the required facility for keeping all procurement MoWE Secured office arranged 6 records in secured and safe places, and inform the WB PMCU/P 31-Jan-24 by the due date. IT The project officers are to regularly update STEP for all The STEP is under regular MoWE initiated contracts and the PIU is to prepare and submit update 7 PMCU/P Continuous procurement and contract management performance IT reports on a quarterly basis, WB/Mo Through biweekly meetings, Conduct a joint procurement and contract management WE Before next performance is under regular 8 performance review starting from mid-January 2024 and PMCU/P ISM review inform the WB of results by due date IT Annex 4. Field Visit Summary The brief field visit findings of the two woredas are presented below. I. Sukul Kebele of Dire Teyera woreda: This woreda is one of the 55 GW4R participating woredas selected for the water supply sub-project. The mission visited Sukul site where there is an existing borehole and the pumping station is going to be constructed to serve the community. There are several villages under Sukul kebele such as Ganda Gara, Addus, Shirota, Safara, Magles tulle and Ganda Ibrahim. Currently, these communities do not have access to clean and safe water. As presented by the woreda and regional water office, the community is currently using unsafe water collected in a pond which does not meet health standards. The site is ready to sign contract and start construction with confirmed water source from the borehole which was drilled in last year by the regional office. The borehole has a yield of 3 l/s and as per the physio-chemical analysis it meets the WHO standards. The activities to be implemented for this site include: construction of pressure and distribution pipe lining, 100m3 reservoir, seven water points, construction of control room, guard house, and supply and installation of pumps. It is mentioned, as per the design document of the project, this is intended to serve approximately 3,000 people. After discussion, it was noted that the current number of the kebele population is above that (~3,500). However, the capacity of the borehole can accommodate a larger size of community. Furthermore, during the discussion it was mentioned that the proposed water supply is also intended to serve the school, but the number of beneficiaries mentioned above still stand low. As such it is required to review design document. WaSHCOM was presented at the site and provided a brief introduction. This WashCOM was established a few months ago and it consists of 7 members (4 female and 3 male) who were elected by a voting system and it is chaired by a male representative. Following the ToT training, which was provided by the federal PMCU and Water Supply PIT, it was then brought to the WaSHCOM. However, at the current stage, grievance committee is not established at kebele level. The mission understood that the source of power is from grid line. However, the pump was not working during the visit as it was raining. It was noted that no back up source of energy has been considered for this facility and as such the design document needs to be revisited. 14 It was concluded that during design, more accurate data on the population size of the community, including projection of growth, accurate estimation of budget, and detailed technical design considering various aspects such as energy source, must be considered and included. II. Burka village of Sofi woreda: With the objective to draw lessons from similar type of investment, the mission visited one of the rural water supply schemes which was constructed under OWNP-CWA project. This water supply scheme was constructed about 3 years ago. The capacity of borehole is 5 liter/second with depth of 67m, and it is currently serving more than 4 villages. The scheme has 9 water points in different areas and the team visited one of the water points and the borehole source. The regional people mentioned that in each woreda there are maintenance teams who are able to conduct major maintenances beyond the capacity of the WaSHCOM. However, during the filed visit the mission observed that around the source area there was leakages on the distribution line which needs immediate maintenance. As such, it is important to check the functionality of the WaSHCOM in regards to maintenance either by their own or reporting to the woreda to ensure continuous and sustainable access of water to the community. The main objective of the visit was to drew lessons learned from the already existing scheme. The scheme has an established WaSHCOM which is elected for a period of three years and a maximum term a committee can serve is two times. However, what was lacking was the existence of bylaws or similar system outlining the roles and responsibilities of the committee and their linkage to the kebele and woreda. It seems tariff structures are put in place (1 ETB per 20 liter of water). In all the 9 water points the WaSHCOM hired fee collectors with agreement 10% for the collector and 90% for the committee. However, there are some flexibilities given to certain users and there is a lack of records, proper bookkeeping, and fee collection schedule. The justification given by the community and the local office was that not having water meter reading and clear fee collection is due to low cost associated with running solar pumps. As a lesson learned for the project and the team, special attention must be given to setting up a proper tariff system for a sustainable water scheme. 15 16 Annex 5: List of persons met during the mission Organiza o No Name Title Email n H.E. Ambassador Asfaw 1 MoWE State Minister MoWE asfawdingamo@yahoo.com Dingamo 2 H.E Dr Berhanu Megerisa MILLs State Minister b.lenjiso@gmail.com Advisor to the 3 H.E Ato Motuma Mekassa MoWE Minister Deputy project 4 Dr. Kebede Gera MoWE garbaabaa@gmail.com coordinator Project coordinator 5 Kassahun Beyene MoWE Kasbey65@gmail.com for WS PIT M&E consultant from 6 Habtamu Ayele MoWE hbtaymk@gmail.com PMCU FM specialist from 7 Ketema Beressa MoWE Kebelsa4@gmail.com PMCU Procurement 8 Jagama Kebeta MoWE danjag.kebeta@gmail.com specialist from PMCU Procurement 9 Adamu Mengesha MoWE specialist from WS washadamu@gmail.com PIT Hydrogeologist from 10 Fisseha Teka MoWE WS PIT WS engineer from 11 Tadele Mamo MoWE WS PIT Financial 12 Asfaw Dinsa MoWE Management Specialist Social Specialist from jagamakebeta@gmail.co 13 Samuel Tolosa MoWE PMCU m Gender Specialist 14 Hizbayesh Getahun MoWE hizget16@yahoo.com from PMCU 15 Solomon Kenea MoWE sollankoken@gmail.com Senior Adviser to the 16 Tewodross Desalegn MILLs teddymillmail@gmail.com state Minister Project Coordinator 17 Taye Aduna MILLs taduna@gmail.com for IR PIT Environmental 18 Wokeneh Gasie MoWE Specialist from WS wgashie2003@gmail.com PIT M&E consultant from 19 Sintayehu Getachew MoWE sintayehug@gmail.com WS PIT FM specialist for WS 20 Anteneh Taye MoWE A t2007@gmai.com PIT FMs specialist from 21 Berihun Tassew MILLS btaberihun@gamil.com IR PIT 17 Organiza o No Name Title Email n Gender Specialist 22 Derjew Alemayehu MILLS degemehac@yahoo.com from IR PIT Environmental 23 Awoke Gulilat MILLS awekegulilate@gmail.com Specialist from IR PIT Social Safeguard from 24 Nigus Agonafir MILLS Agoabe2005@gmail.com IR PIT M&E specialist for 25 Betelhem Tsegaye MoWE the WS PIT 18 Annex 6. Project Result Framework Progres s as of No Result Indicators Baseline End Target Yr. 2 plan May Remark 15, 2024 PDO To increase the sustainable access and management of groundwater in the Horn of Africa's borderlands 1 Beneficiaries provided with access 0 1,481,500 243,428 0 Delayed to improved water supply (Number) implementation Due to delayed Water points constructed or implementation, so far 2 rehabilitated under the Project that 0 90 90 0 no measurement of its are functioning. (Percentage) functionality is made Regional groundwater institutions with increased access to improved 3 0 1 0 The plan is for year 4 information critical for sustainable GW management. (Number) Comp. 1. Delivering inclusive groundwater services to priority areas 11 projects contract Water supply schemes constructed signed 5 projects ready or rehabilitated under the project in for contract signing 4 0 110 18 0 drought-prone areas with reliable and 4 bid evaluations groundwater resources (Number) completed and 2 under evaluation Investment projects prepared for the 5 pre-feasibility stage, including 0 110 18 22 analysis related to gender (Number) Nature-based infrastructure built or Not planned for this 6 rehabilitated under the project 0 15 0 year and this needs (Number) revision Community institutions, committees, and/or Water Resources Users Associations (WRUAs) 7 established for operation and 0 117 18 22 maintenance (O&M) of groundwater infrastructure (Number) So far, there is no WS Number of hours per week women scheme constructed 8 and girls spend collecting water 23 7 7 that can enable to (Number) decrease in women’s time for collecting 19 Progres s as of No Result Indicators Baseline End Target Yr. 2 plan May Remark 15, 2024 water due to the reason mentioned above Women’s share of leadership positions in community 9 9 50 50 56 groundwater organizations (Percentage) Hectares with sustainable water 10 supply for irrigation provided by the 0 375 0 0 The plan is for year 3 project (Hectare (Ha)) Comp. 2. Generating groundwater information and strengthening regional and national groundwater New policies, bylaws, regulations, guidelines, or regional agreements Under preparation of 11 prepared or adopted for sustainable 0 3 1 0 data sharing protocol groundwater management and use in participating countries (Number) Participating countries that have The plan is for year 6 prepared and/or endorsed a National 12 No Yes Groundwater Strategy or Master Plan (Yes/No) People trained in sustainable Training provided for groundwater management practices 30 people in GW data 13 0 100 40 30 in national and regional water management and resources entities. (Number) resilient BH drilling Professional Unit established within government (National or Federal level), or within a regional entity, 14 No Yes The plan is for year 3 with the capacity to develop and manage groundwater resources (Yes/No) Women’s share of leadership positions in agencies governing One female is a leader 15 12 25 15 25 groundwater management in MoWE GW LEO (Percentage) Groundwater quantity or quality monitoring points are established 16 0 59 12 0 and monitored at least quarterly. (Number) 20 Progres s as of No Result Indicators Baseline End Target Yr. 2 plan May Remark 15, 2024 Plans and studies conducted for groundwater development (in the 22 WS sub-project 17 short, medium, and/or long term) 0 56 12 22 studies were conducted with community engagement. (Number) Groundwater information accessible 18 to beneficiaries/groundwater users No Yes - The plan is for year 3 and institutions (Yes/No) Country / regional groundwater 19 mapping or assessment completed No Yes - The plan is for year 3 (Yes/No) The Horn of Africa Groundwater Information System (GWIS) was 20 No Yes - The plan is for year 3 established and operational. (Yes/No) Regional Platform for Groundwater Collaboration (PGWC) functioning 21 No Yes The plan is for year 3 among participating countries. (Yes/No) Comp. 3. Support to Project Management, Knowledge, and Operations Grievances that have been So far, no grievance is 22 satisfactorily resolved at the GRM 0 85 85 reported level (Percentage) Grievances submitted by women 23 satisfactory resolved at the GRM- 0 85 85 100 Same above level (Percentage) Assessment on Environmental and Social Risk Management Capacity 24 conducted and main No Yes Yes Yes recommendations involving Project entities implemented (Yes/No) 21