$ Report No: RES00388 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Integrated Water Management and Development Project APPROVED ON 14-Jun-2018 TO Republic of Uganda Water Eastern And Southern Africa Regional Vice President: Victoria Kwakwa Regional Director: Iain G. Shuker Country Director: Qimiao Fan Practice Manager: Francis Ghesquiere Task Team Leader(s): Lillian Muhebwa, Fook Chuan Eng The World Bank Integrated Water Management and Development Project (P163782) ABBREVIATIONS AND ACRONYMS AHA Anti-Homosexuality Act (2003) BOD Biological Oxygen Demand ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FSTP Faecal Sludge Treatment Plant GOU Government of Uganda IA Implementing Agency IDA 18 RW IDA 18 Sub-window for Refugees and Host Communities IWRM Integrated Water Resources Management MTR Mid-term review MWE Ministry of Water and Environment NGO Non-governmental Organization NRW Non-revenue Water NWSC National Water and Sewerage Corporation PIM Project Implementation Manual RGC Rural Growth Center UA Umbrella Authorities WRM Water Resources Management WSS Water Supply and Sanitation The World Bank Integrated Water Management and Development Project (P163782) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name Integrated Water Management and Development P163782 Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Uganda Approval Date Current Closing Date 14-Jun-2018 02-Dec-2024 Original EA Category Partial Assessment (B) (PAD Approval Package-14 Jun 2018) Organizations Borrower Responsible Agency Ministry of Water and Environment, National Water And Republic of Uganda Sewerage Corporation @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The PDO is to improve access to water supply and sanitation services, integrated water resources management, and operational performance of water and sanitation service providers in Project areas. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Balance % Disbursed IBRD -- -- -- 0 i The World Bank Integrated Water Management and Development Project (P163782) IDA 280.00 160.36 119.64 57.27 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Integrated Water Management and Development Project (P163782) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................5 III. PROPOSED CHANGES ..............................................................................................................................................12 IV. DETAILED CHANGE(S) .............................................................................................................................................12 The World Bank Integrated Water Management and Development Project (P163782) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Integrated Water Management and Development Project (IWMDP) was approved by the Board on June 14, 2018 and became effective on June 27, 2019. Financing for the project includes World Bank (WB) funding of XDR 194.9 million (US$280 million equivalent at the time of appraisal) and US$25 million parallel financing1 from KfW Development Bank of Germany. The US$280 million WB funding comprised (i) an IDA PBA2 Credit of US$222 million, (ii) an IDA Credit of US$29 million from the IDA 18 Sub-window for Refugees and Host Communities (IDA 18 RW), and (ii) an IDA Grant of US$29 million from the IDA 18 RW. The Recipient contributes counterpart financing to cover a portion of project implementation costs, the acquisition of land, and compensation due to people affected by the project. To date, the project has disbursed US$152.3 million (54 percent) of the total IDA financing, with the share of funds committed at 71 percent. The project is scheduled to close on December 2, 2024. 2. The Project Development Objective (PDO) is to improve access to water supply and sanitation services, integrated water resources management, and operational performance of water and sanitation service providers in Project areas. No changes to the PDO have been made to date since project approval. 3. IWMDP is in its sixth year of implementation and the ratings for both overall implementation progress (IP) and progress towards achieving the PDO are currently Moderately Satisfactory (MS). Throughout its implementation, the overall IP and PDO ratings were satisfactory or moderately satisfactory, except for a 17-month period (October 2021 - March 2023) when the IP rating was rated Moderately Unsatisfactory (MU). The IP rating was upgraded after the completion of a project turnaround action plan (see paragraph 5) to address bottlenecks impeding implementation3 and after a suitable monitoring period to assure that implementation improvements were sustained. The Overall Safeguards, Procurement, Financial Management, and other project implementation ratings are MS or Satisfactory (S). 4. The project had experienced previous implementation challenges during the first few years of implementation which led to implementation delays. IWMDP is a complex infrastructure project that includes many standalone subprojects geographically spread throughout the country (including the more challenging refugee-hosting districts and refugee settlements) encompassing water supply, sanitation and water resources management subsectors. The preparation and procurement of multiple consultants and works contracts, which involved multiple departmental and multi-sectoral teams, with relatively weak capacity and varying experience in Bank projects, weighed on implementation during the first few years of implementation. Technical reviews of some existing designs of the planned first batch of works revealed a number of issues including change of water resources availability over time. The required design updates meant that pre-designed subprojects meant to anchor physical progress during the initial period of the project could not commence on time. Implementation delays were further exacerbated by the Covid-19 pandemic, which saw government shutdowns, restriction of movements nationally and internationally, and the disruption to supply chains4. 1 KfW finances the production and storage components of new water supply scheme in Gulu, while the Bank is financing the transmission system. 2 IDA National Performance-Based Allocations (PBA). 3 Including delays in procurement processing, concluding detailed engineering designs and safeguards instruments for planned works and payment processing. 4 The global Covid-19 pandemic is estimated to have caused at least a one-year loss of implementation time due to national lockdowns and related restrictions during calendar years 2020 and 2021. In Uganda, the internal movement of people was restricted for about 5 months (March – August Page 1 The World Bank Integrated Water Management and Development Project (P163782) 5. A project turnaround action plan was put in place and following sustained efforts, implementation turnaround was observed from the beginning of the fourth year of implementation. During the project mid-term review5 undertaken in November 2021, a set of 20 key actions and milestones were agreed, the achievements of which would be key criteria to determine a successful implementation turnaround. These key actions were all achieved, albeit a number taking longer than expected. A significant increase in commitments and disbursement from the fourth year of project implementation onwards, with a pace that has been sustained until the present, signaled the project implementation getting back to the satisfactory status6. Presently, water catchment management and protection measures have been implemented in various districts, with livelihoods improvements activities benefitting 13,904 people in these catchment areas. Water Supply and Sanitation (WSS) services from project supported infrastructure have commenced including in Busia district, increasing access for 216,604 additional customers. The remaining catchment management measures and WSS construction works are expected to be completed and commissioned in stages during the next 15 months. 6. The project consists of four components as described below. Table 1 provides details of the project cost estimates and financial performance. (a) Component 1: Water supply and sanitation (WSS) in Small Towns and Rural Growth Centers (RGCs) and Support to Districts Hosting Refugees: This component supports activities to improve WSS services in selected small towns and Rural communities (including refugee settlements) located across Uganda’s different geographic regions and in nine7 of the thirteen districts hosting refugees. Activities worth US$109.3 million (US$32.9 million for scope in Refugee Hosting Districts) have been committed and WSS works are ongoing at different levels of physical progress. Procurement for the remaining WSS works in rural centers is ongoing and all remaining physical works are expected to have commenced by October 2024 after the relevant government approvals. Stakeholder engagement consultancies to address E&S risk management within the beneficiary communities are also ongoing. The component also supports utility turnaround interventions including network extensions to improve commercial viability, and an institutional and capacity development assessment with hands-on support to Umbrella Authorities (nascent service providers managing systems in small towns and RGCs). (b) Component 2: WSS in Large Towns and Support to District Hosting Refugee: This component supports activities to improve WSS in 3 select large towns including one in a refugee hosting district (Adjumani), as well as select water supply system source protection activities in areas under the mandate of the National Water and Sewerage Corporation (NWSC). Total commitments under this component amount to US$75.6 million and works are underway in Adjumani, Gulu and Mbale. (c) Component 3: Water Resources Management: This component supports catchment management and restoration measures in selected sub-catchments, including soil and water conservation, riverbank protection and restoration, and providing alternative livelihoods for affected communities. Support is also given to undertake various water resources management studies to develop strategies and plans, as well as to develop a water in 2020) and about 3 months (June – July in 2021) during the first and second Covid waves respectively. Procurements were suspended by the Government for a large part of these periods and Government offices were closed for a large part of the second wave. 5 The MTR concluded that the PDO remains relevant, proposing it remained unchanged. This continues to be the case. 6 Overall, the project turnaround continued to be sustained. Signed contracts reached US$100.6 million (36%) and disbursement US$55.8 million (20%) as of November 8, 2022. These were at US$67.1 million (24%) and US$35.1 million (12.5%) respectively in June 2022. 7 Arua, Kiryandongo, Kyegegwa, Koboko, Lamwo, Madi-Okollo, Obongi, Terego and Yumbe. Page 2 The World Bank Integrated Water Management and Development Project (P163782) information system and strengthen monitoring and water quality control systems. Total commitments to-date are US$31.3 million, including US$9.5 million that was allocated to emergency flood management related works in the River Nyamwamba catchment. (d) Component 4: Project Implementation and Institutional Strengthening: This component supports institutional strengthening activities and provides financing for project implementation and coordination support activities. Table 1. Project Financial performance in US$ million (as of September 15, 2024) Total IDA Amount Disbursement Total Total Project Description (at Appraisal) category Disbursement Commitments Component 1: WSS in Small Towns and RGCs and Support to Districts 157.5 56.7 109.3 Hosting Refugees 1.1 Support to Small Towns and 105.5 Category 1 40.4 76.4 RGCs 1.2 Support to Districts Hosting 52 Category 4 16.3 32.9 Refugees Component 2: WSS in Large Towns and Support to Districts Hosting 92.5 60.1 75.6 Refugee 2.1 WSS in Urban Large Towns 74.5 Category 3 52.6 60.3 2.2 Support to Districts Hosting 18 Category 5 7.5 15.3 Refugees Component 3: Water Resources 25 Category 1 30.7 31.3 Management Component 4: Project Implementation and Institutional 5 Category 1 4.8 4.8 Strengthening Total Project Costs 280 152.3 221.0 Percentage of Appraisal value (US$280 million) 54.4% 78.9% Percentage of Current value (US$262.9 million as of September 15, 2024) 57.9% 84.0% 7. In alignment with sector institutional mandates, the IWMDP is implemented by two implementing agencies (IAs). NWSC is implementing Component 2 in accordance with its responsibility to provide WSS services to large towns. All other components are implemented by MWE. Both IA project teams are currently fully staffed per the updated Project Implementation Manual (PIM) and are supported by a project support team of six experts financed by the project. B. Rationale for Restructuring 8. The project needs additional implementation time to ensure that all project activities that will be undertaken with project funds are completed. Final works to be completed include all those targeted at refugee and host community beneficiaries (under Sub-components 1.2 and 2.2 per Table 1), the non-completion of which will lead to the failure to meet Bank obligations under the IDA 18 RW. In a letter dated December 5, 2023, the Recipient requested the Closing Date to be amended from December 2, 2024 to December 31, 2025 (a 13-months extension). An assessment of all Page 3 The World Bank Integrated Water Management and Development Project (P163782) works contracts (detailed in Table 2 below) that are expected to require additional time indicates that the requested extension will be sufficient for them to reach substantial completion. In order to facilitate a smooth administrative closure, a revised closing date of January 31, 2026 is proposed8. This is the first restructuring under the project. 9. The granting of the extension will also remove financial uncertainties that are impacting construction works, including contractors’ work schedules, construction resources planning and the pace of implementation of the affected works. The Recipient is already committed to ongoing contracts and may not have sufficient funding to meet its remaining obligations (estimated at over US$80 million) after the current closing date without IDA funding. 10. A project funding gap has occurred due to two factors (i) the reduction of the US Dollar value of the financing resulting from exchange losses, and (ii) construction cost increase. At Appraisal, a total financing of US$70 million9 equivalent was earmarked for refugees and host communities in refugee hosting districts, and the remaining US$210 million equivalent earmarked for non-refugee hosting districts. Due to a strengthened US Dollar vis-à-vis the financing currency (XDR), the equivalent values earmarked are now about US$65 million and US$195 million, respectively. In addition, the project has also been impacted by the significant rise of the cost of construction inputs - particularly over the last two years. It is now clear that given the reduced resources and increased costs, the scope of project activities will have to be reduced, whereby some originally planned subprojects can no longer be constructed under the project. 11. Within the respective financing envelopes earmarked for the refugee and non-refugee hosting districts, the Recipient’s implementing agencies have established separate lists of subprojects from each envelope that will no longer be constructed under the project. The lists took into account several factors, including costs, required construction time and GoU priorities. Under the refugee envelope, WSS systems in four RGCs in Refugee Hosting Districts and micro-catchment plan implementation in some refugee hosting communities will no longer be implemented. These refugee envelope subprojects are currently estimated to cost about US$8 million. Under the non- refugee envelope, the large Kyegegwa WSS system, WSS systems in 10 RGCs, and some priority town sanitation actions will not be implemented. These non-refugee envelope subprojects are currently estimated to cost about US$36 million. Table 5 below provides the details of subprojects that will no longer be constructed under the project. 12. Some results indicators and their targets will be adjusted to align them with the final scope of activities and the actual final infrastructure designs. Where possible, the IAs have made efforts to align the design of each subproject to emphasize end-user distribution systems and maximize the number of targeted beneficiaries to the extent possible. Based on the final detailed designs of subprojects that will be undertaken by the project, at the PDO level, the number of overall beneficiaries will be increased. Final targets for water supply services for all categories of beneficiaries will be substantially increased. However, the final target numbers for sanitation services for all beneficiaries will be reduced10. At the intermediate level, targets for indicators that directly measure the number of infrastructure subprojects are impacted, necessitating their final targets to be revised. Some intermediate indicators will be refined to align with the actual design and service provision arrangements adopted under the project. Table 5 provides the details of proposed revisions to results indicators and targets. 8 Proposed date agreed with the Recipient via an exchange of letters. 9 Comprising US$12 million from IDA PBA Credit, US$29 million Credit from IDA 18 RW, and US$29 million Grant from IDA 18 RW. 10 Budget constraints necessitated dropping a Fecal Sludge Treatment Plants (FTSPs) associated with sanitation services in a refugee hosting district. Furthermore, delays in completion of other FSTPs will also reduce the number of sanitation beneficiaries at project close cut-off date. Page 4 The World Bank Integrated Water Management and Development Project (P163782) 13. The Bank team confirms that the requirements of paragraph 50 of the IPF Directive regarding extension of closing date have been met. These requirements include: (i) the PDO is achievable within the extended period; (ii) the performance of MWE and NWSC as implementing agencies remain satisfactory; (iii) MWE and NWSC have prepared plans acceptable to the World Bank to have substantial completion of all activities by the revised closing date; and (iv) there are no outstanding or unsatisfactory project audits. The project is in compliance with key loan covenants, including audit and financial management reporting requirements. The restructuring will not involve any changes to safeguards requirements and arrangements. However, the enactment of the Uganda Anti Homosexuality Act (AHA) 2023, introduced the need for enhanced social risk management measures. Therefore, in line with other ongoing Bank portfolio in Uganda, the Environment and Social Management Framework (ESMF) for the project has been updated11 and adopted by the Recipient. This document has been disclosed by the Recipient and the Bank on July 18, 2024. II. DESCRIPTION OF PROPOSED CHANGES 14. In alignment with the rationale for restructuring discussed above, the following changes to the IWMDP are proposed: (a) Change in Closing Date: The Closing Date is extended by 14 months from December 2, 2024, to January 31, 2026. (b) Changes in project results indicators. The changes include (i) increasing the end target values for three PDO indicators, four PDO sub-indicators and two intermediate indicators, (ii) reducing the end target value for one PDO indicator, two PDO sub-indicators and one intermediate indicator, (iii) dropping one intermediate indicator related to water user committees that is no longer relevant given the actual service provision arrangements adopted, (iv) replacing an intermediate indicator measuring service coverage in refugee hosting districts with two intermediate indicators to enable distinguishing the coverage between refugees and host community citizens, and (v) adding a new indicator on the volume of sludge collected at faecal sludge treatment plants12 (FSTPs). All end target dates are revised to the extended closing date. These changes are summarized in Table 3 and Table 4. (c) Changes in project scope: Due to project funds shortfall, several activities estimated at about US$44 million will not be financed. These are detailed in Table 5. (d) Changes to the Risks: The overall risks for the operation continue to be rated as substantial. This is consistent with the overall risk rating at the time of project approval and, in the latest (May 2024) Implementation Status and Report (ISR) ratings. Following the enactment of the AHA a series of stakeholder engagements and consultations, including with the GOU, CSOs/NGOs, and development partners, have been undertaken. The proposed mitigation measures to strengthen non-discrimination and inclusion has been reflected in the updated ESMF. The project implementation manual (PIM) is being updated to align with the updated ESMF. Mitigation measures embedded in the relevant Environmental and Social instruments (ESMPs, Project Briefs, Contractor and consultant contracts, etc.) prior to any activities. Retrofitting for ongoing activities is also being undertaken. 11 The updated measures took into account feedback from GoU led consultations with civil society and the World Bank. Participants, mostly from Civil Society Organizations (CSOs), provided feedback on the proposed measures that ensure that project benefits reach all targeted individuals and groups without exception. 12 This will complement the existing indicator of pollution load reduction, which is more suitable to measure operations of sewerage treatment plants as opposed to FSTPs. Page 5 The World Bank Integrated Water Management and Development Project (P163782) Table 2: Contracts expected to overrun the current closing date (December 2, 2024) Expected Sub- # Sub-project Estimated Cost Signing Date Substantial Component (USD) Completion Date 1 1.1a Construction of Kaliro-Namungalwe WSS 5,391,659 13-Apr-2023 28-Feb-2025 Construction of Tirinyi, Kibuku, Kadama 2 1.1a 8,327,022 23-Aug-2023 15-Mar-2025 and Budaka WSS – Lot 1 Construction of Butaleja and Busolwe WSS 3 1.1a 6,083,705 23-Aug-2023 2-Apr-2025 – Lot 2 Nyamugasani Water Supply and Sanitation 4 1.1b 13,844,912 6-Mar-2024 31-Jul-2025 System – Lot 1 and 2 4 RGCs (Kikoora and Mwitanzige in 6 1.1b Kakumiro district, and Kasese and 4,404,347 15-Feb-2024 30-Apr-2025 Lwentulege in Rakai district) 2 RGCs (Bugwara and Kabamba in Kagadi 30-Aug-2024 7 1.1b 1,385,730 30-Jul-2025 district) –retendered (expected) 9 RGCs (Bukizibu-Bumwena and Lugala in Mayuge and Namayingo districts, Kitenga in Kaliro district, Kidera and Igwaya in 30-Aug-2024 8 1.1b Buyende district, Bugomolwa and 10,604,265 31-Aug-2025 (expected) Kikonge-Nakasero in Kyankwanzi district, and Kikooge and Lubaali in Nakasongola & Kassanda districts) Ala-Ora Water Supply and Sanitation 9 1.2 19,374,000 5-Jul-2024 30-Sep-2025 Systems 3 RGCs in Kiryandongo district (Gaspa, 10 1.2 3,714,254 28-Apr-2023 20-Dec-2024 Mutunda and Nyakabale) 5 RGCs in Adjumani and Lamwo refugee hosting districts (Gulinya and Arinyapi in 30-Aug-2024 11 1.2 5,750,000 31-Nov-2025 Adjumani and Agoro, Pangira, and Padibe (expected) West in Lamwo) 5 RGCs in Yumbe and Moyo refugee hosting districts (Gwere (Lefori) & Laropi 30-Oct-2024 12 1.2 9,922,060 31-Nov-2025 in Moyo; Lomunga, Lobe and Goboro in (expected) Yumbe District) Construction of Mbale Water Supply and 13 2.1 17,321,728 21-Dec-2023 31-Dec-2025 Sewerage Systems - Lot 1 Construction of Mbale Water Supply and 14 2.1 6,613,228 21-Aug-2024 31-Dec-2025 Sewerage Systems – Lot 2 Source Protection for Gulu, Arua and 25-Sep-2024 15 2.1 3,088,147 30-Sep-2025 Mbale (expected) 30-Dec-2024 16 2.1 Source Protection for Bushenyi 585,000 31-Oct-2025 (expected) 17 2.2 Construction of Adjumani WSS 13,717,145 21-Dec-2023 30-Sep-2025 Page 6 The World Bank Integrated Water Management and Development Project (P163782) Table 3: Summary table of original and proposed revised PDO level targets PDO Level Indicator Original Current Proposed Target Rationale for Change Target Status To improve • Based on final designs of access to water new water supply supply and subprojects. sanitation • Additional beneficiaries services and from support to UAs to Direct Project integrated 1,403,000 230,508 1,602,753 extend existing schemes Beneficiaries WRM to new water users. • Additional catchment protection measure activity at River Nyamwamba. No change, except end of which female 51% 51% 51% target date of which No change, except end 7% 0% 7% refugees target date To improve Area under integrated IWRM in Additional catchment water selected protection measure 47,209 3,250 47,789 resources catchments activity at River management supported by Nyamwamba. the project To improve the Percent of the operational service areas performance of achieve cost No change, except end water and 80% 60% 80% recovery ratio of target date sanitation 1.1 under the service project providers To improve People provided • Based on final designs of access to water with access to new water supply 1,151,862 216,604 1,358,095 supply and improved water subprojects sanitation sources (note a) • Additional beneficiaries services from support to UAs to of which female 587,450 110,468 691,900 extend existing schemes to new water users. of which • No. of additional 98,886 0 117,639 refugees that can refugees benefit from new water supply (beyond initial of which citizens project target) is limited of host 173,212 0 307,163 due to the existence of communities water supply schemes already provided by Page 7 The World Bank Integrated Water Management and Development Project (P163782) UNHCR in refugee settlements. People provided • Knock-on effects from with access to delays in construction improved 294,489 1,190 183,088 and completion of FSTPs sanitation (reduced initial service services uptake) of which female 150,189 1,015 93,375 • One FSTP at Palorinya (Refugee Hosting of which District) dropped due to 21,087 0 15,054 cost and construction refugees time constraints (reducing service of which citizens coverage to the of host 47,136 0 26,241 associated refugees and communities host communities). Note a: ”improved water sources” is expected to be revised to “at least basic water services” during a future exercise to align indicator with the World Bank Corporate Scorecard indicators. No change in definition. Page 8 The World Bank Integrated Water Management and Development Project (P163782) Table 4: Summary table of original and proposed revised Intermediate level targets Intermediate Indicator Original Current Proposed Rationale for Change Level Target Status Target WSS in Small Piped household water connections • Reduction in scope Towns, RGCs, (constructed or rehabilitated) resulting 88,129 11,228 59,720 (Number of Large Towns & from the project interventions systems and Support to connections) to fit Districts Improved community water points available funds. Hosting (constructed or rehabilitated) under the 7,780 58 1,655 • Fewer realistic Refugees project connections for (Components 1 rural scope & 2) Indicator no longer relevant given actual management Percent of water and sanitations To be arrangements under committees with women in key position 95% NA dropped project scope i.e., in project areas service through utilities rather than water committees To be replaced with People within 200m (0.2km) of an distinct indicators for To be improved water source benefitted in 70% 3% service coverage in replaced refugees hosting districts refugee communities and host communities Distinct measure of Percent of refugees benefitting from service coverage for improved water sources in refugees NA NA 74% refugees in refugees hosting districts hosting districts Updated demographic of which women NA NA 52% information Distinct measure of service coverage for Percent of citizens benefitting from non-refugees in improved water sources in refugees NA NA 36% refugees hosting hosting districts districts (note: “citizens” refer to host community members) Updated demographic of which women NA NA 52% information Achievable connections New sewerage connections resulting 384 0 222 to match time and from the project interventions resource constraints Number of service areas that reduce No change, except end NRW to 20% under the project 10 2 10 target date Customer satisfaction Index for services No change, except end 85% 81 85% supported under the project target date Page 9 The World Bank Integrated Water Management and Development Project (P163782) Selected service providers achieve > 80 No change, except end percent in collection efficiency under 3 6 6 target date the project Volume of BOD pollution loads removed No change, except end by treatment plants as result of project 352 6 352 target date interventions (Tons per year) Volume of faecal sludge received at the Adding an indicator for treatment plants constructed by the 0 0 540 measuring the project (m³ per year) functioning of FSTPs Water Reflecting protection Resource Catchment and source protection plans plans now prepared for 16 66 66 Management developed all sub-projects as part (Component 3) of design Refinement of indicator No. of Water Management Zones where to reflect the the National Water and Environment 1 0 4 decentralized information systems (WEIS) established management structure and operationalized under the project of information system Updated to reflect State of water resources reports 3 0 1 remaining time on the produced to inform decision making project Page 10 The World Bank Integrated Water Management and Development Project (P163782) Table 5: List of activities that will not be financed under the project Estimated Costa Item Water Supply and Sanitation System (with list of locations served) (US$) 1 Kyegegwa-Mpara-Ruyonza-Kyaka WSS 27,000,000 Non - Refugee and Hosting Communities Solar Powered water systems 4 RGCs- works (in 2 lots) a. Lot 1: 2 No. RGCs of Kasaba and Rwentuha in Kyenjojo and Kyegegwa districts a. 1,450,000 2 respectively b. 2,470,000 b. Lot 2: 2 No. RGCs of Bubanda and Nankondo in Mubende and Sembabule Districts districts Solar Powered water systems 6 RGCs- works (in 3 lots) a. 2,520,000 3 a. Lot 1: 2 No. RGCs of Bulange and Nango in Namutumba and Mayuge districts b. 1,270,000 b. Lot 2: 2 No. RGCs of Kagumba and Bubugo/Itanda in Kamuli and Jinja districts c. 1,120,000 c. Lot 3: 2 No. RGCs of Nyamushojwa and Kyampangara in Kazo district Current estimated costs for activities dropped from non-refugee hosting 35,830,000 districts Solar powered water systems. 4 Nos. RGCs in Refugee Hosting Districts Refugee and Hosting Communities a. Lot 1: Ewanga & Edrayo in Madi Okollo & Terego districts a. 2,370,000 4 b. Lot 2: Rodo and Nyori in Yumbe district b. 2,730,000 Districts Implementation of Micro-Catchment Management and Source Protection Plans 5 and Implementation of Priority Management and Livelihood Improvement 3,000,000 Measures Current estimated costs for activities dropped from refugee hosting districts 8,100,000 (refugees and host communities) a excludes supervision costs Page 11 The World Bank Integrated Water Management and Development Project (P163782) @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Loan Closing Date Extension Yes Risks Yes Implementation Schedule Yes Disbursements Estimates Yes Loan Cancellations No Development Objective No Reallocations No Safeguard Policies Triggered No Financial Management No ISDS No Procurement No MFD/PCE No Institutional Arrangement No Legal Covenants No Conditions No Implementation Modalities No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Page 12 The World Bank Integrated Water Management and Development Project (P163782) Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications IDA-62760-001 Effective 02-Dec-2024 02-Dec-2024 31-Jan-2026 31-May-2026 IDA-D3380-001 Effective 02-Dec-2024 02-Dec-2024 31-Jan-2026 31-May-2026 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Last Approved Risk Category Proposed (ISR Seq. 012) - 09 May 2024 Political and Governance Moderate Moderate Macroeconomic Substantial Substantial Sector Strategies and Policies Moderate Moderate Technical Design of Project or Moderate Moderate Program Institutional Capacity for Moderate Moderate Implementation and Sustainability Fiduciary Moderate Moderate Environment and Social Substantial Substantial Stakeholders Moderate Moderate Overall Moderate Moderate DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Change in Pace of Implementation Implementation Start Date Operation Closing Date 14-Jun-2018 02-Dec-2024 Projected Date for Full Disbursement 31-May-2026 Expected Disbursements (in US $) (Absolute) Page 13 The World Bank Integrated Water Management and Development Project (P163782) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 14 Jun 2018) FY2018 0.00 0.00 0.00 FY2019 8,000,000.00 0.00 0.00 FY2020 30,000,000.00 10,344,181.00 10,344,180.61 FY2021 50,500,000.00 9,722,613.00 9,722,612.57 FY2022 58,000,000.00 15,041,655.00 15,041,655.00 FY2023 62,500,000.00 52,901,900.00 52,901,900.00 FY2024 47,000,000.00 64,480,355.00 64,480,355.08 FY2025 24,000,000.00 76,505,578.00 7,866,387.31 FY2026 0.00 51,003,718.00 0.00 Page 14 The World Bank Integrated Water Management and Development Project (P163782) RESULTS COUNTRY: Uganda Integrated Water Management and Development Project @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes To improve access to water supply and sanitation services and integrated WRM Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Direct Project Beneficiaries 0.00 Jun/2018 221,274.00 01-Apr-2024 230,508.00 30-Aug-2024 1,602,753 Jan/2026 (Number) Revise of which female 0.00 Jan/2019 51.00 51.00 51.00 Dec/2025 (Percentage) Revise of which refugees 0.00 Jan/2019 0.00 0.00 7.00 Dec/2025 (Percentage) To improve integrated water resources management; Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Area under integrated water 0.00 Jun/2018 3,250.00 01-Apr-2024 3,250.00 30-Aug-2024 47,789 Jan/2026 resources management in selected catchments supported by the project (Hectare(Ha)) To improve the operational performance of water and sanitation service providers Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Percent of the service areas 38.00 Jun/2018 60.00 01-Apr-2024 60.00 30-Aug-2024 80.00 Jan/2026 achieve cost recovery ratio of 1.1 Page 15 The World Bank Integrated Water Management and Development Project (P163782) (110%) under the project (Percentage) To improve access to water supply and sanitation services Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise People provided with access to 0.00 Jun/2018 207,370.00 01-Apr-2024 216,604 30-Aug-2024 1,358,095 Jan/2026 improved water sources (Number) Revise People provided with 0.00 Jun/2018 105,759.00 24-Sep-2018 110,468 24-Sep-2018 691,900 Dec/2025 access to improved water sources - Female (RMS requirement) (Number) Revise of which refugees 0.00 Jan/2019 0.00 0.00 117,639 Dec/2025 (Number) Revise of which citizens in host 0.00 Jan/2019 0.00 0.00 307,163 Dec/2025 communities (Number) Revise People provided with access to 0.00 Jun/2018 1,190.00 01-Apr-2024 1,190.00 30-Aug-2024 183,088 Jan/2026 improved sanitation services (Number) Revise People provided with 0.00 Jun/2018 1,015.00 24-Sep-2018 1,015.00 24-Sep-2018 93,375 Dec/2025 access to improved sanitation services - Female (RMS requirement) (Number) Revise of which refugees 0.00 Jan/2019 0.00 0.00 15,054 Dec/2025 (Number) Revise of which citizens in host 0.00 Jan/2019 0.00 0.00 26,241 Dec/2025 communities (Number) Intermediate Results Indicators by Components Component 1: WSS in Small Towns and RGCs and Support to Districts Hosting Refugees Page 16 The World Bank Integrated Water Management and Development Project (P163782) Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Piped household water 0.00 Mar/2020 10,715.00 01-Apr-2024 11,228 30-Aug-2024 59,720 Jan/2026 connections (constructed or rehabilitated) resulting from the project interventions (Number) Revise Improved community water 0.00 Jun/2018 58.00 01-Apr-2024 58 30-Aug-2024 1,655 Jan/2026 points (constructed or rehabilitated) under the project (Number) Revise New sewerage connections 0.00 Jun/2018 0.00 01-Apr-2024 0.00 30-Aug-2024 222 Jan/2026 resulting from the project interventions (Number) Revise Number of service areas that 3.00 Jun/2018 2.00 01-Apr-2024 2.00 30-Aug-2024 10.00 Jan/2026 reduce NRW to 20% under the project (Number) Revise Customer satisfaction Index for 0.00 Jun/2018 81.00 01-Apr-2024 81.00 30-Aug-2024 85.00 Jan/2026 services supported under the project (Percentage) ReviseSelected service providers 3.00 Jun/2018 6.00 01-Apr-2024 6.00 30-Aug-2024 6.00 Jan/2026 achieve > 80 percent in collection efficiency under the project (Number) New Percent of refugees benefitting 0 Jun/2018 0 30-Aug-2024 74 Jan/2026 from improved water sources in refugees hosting districts (Percentage) New of which women 0 Jun/2018 0 30-Aug-2024 52 Jan/2026 (Percentage) Revise Volume of BOD pollution loads 221.00 Jun/2018 0.00 29-Feb-2024 0.00 30-Aug-2024 352 Jan/2026 removed by treatment plants as result of project interventions (Tons per year) (Number) Page 17 The World Bank Integrated Water Management and Development Project (P163782) New Percent of citizens benefitting 0 Jun/2018 0 30-Aug-2024 36 Jan/2026 from improved water sources in refugees hosting districts (Percentage) New of which women 0 Jun/2018 0 30-Aug-2024 52 Jan/2026 (Percentage) New Volume of faecal sludge received 0 Jun/2018 0 30-Aug-2024 540 Jan/2026 at the treat¬ment plants constructed by the project (m³ per month) (Cubic meters/year) Component 3: Water Resource Management Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year NewNo. of Water Management Zones 0 Jun/2018 0 30-Aug-2024 4 Jan/2026 where the National Water and Environment information systems (WEIS) established and operationalized under the project. (Number) Revise Catchment and source 5.00 Jun/2018 40.00 01-Apr-2024 66 30-Aug-2024 66 Jan/2026 protection plans developed (Number) Revise State of water resources reports 0.00 Jun/2018 0.00 01-Apr-2024 0.00 30-Aug-2024 1 Jan/2026 produced to inform decision making (Number) Page 18