$ Report No: RES00350 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT APPROVED ON 27-Jun-2019 TO REPUBLIC OF HONDURAS Water Latin America And Caribbean Regional Vice President: Carlos Felipe Jaramillo Regional Director: Benoit Bosquet Country Director: Michel Kerf Practice Manager: David Michaud Task Team Leader(s): Chloe Oliver Viola, Jose Antonio Silva Gomez The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) ABBREVIATIONS AND ACRONYMS AMDC Alcaldia Municipal del Distrito Central, Municipality of Tegucigalpa DLI Disbursement Linked Indicators DMA District Metering Area ESCP Environmental and Social Commitment Plan HEIS Hands on Expanded Implementation Support IP Implementation Progress IPF Investment Project Financing MTR Mid Term Review MU Moderately Unsatisfactory NRW Non-Revenue Water PCU Project Coordination Unit PDO Project Development Objective PMC Project Management Consultancy SANAA Servicio Autónomo Nacional de Acueductos y Alcantarillados SEFIN Secretaria de Finanzas, Ministry of Finance UMAPS Unidad Municipal de Agua Potable y Saneamiento WTP Water Treatment Plant The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name TEGUCIGALPA: WATER SUPPLY STRENGTHENING P170469 PROJECT Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Honduras Approval Date Current Closing Date 27-Jun-2019 15-Jan-2025 Environmental and Social Risk Classification (ESRC) Substantial Organizations Borrower Responsible Agency Ministry of Finance (SEFIN) Municipality of Tegucigalpa (AMDC) @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The Project Development Objective (PDO) is to increase the efficiency and reliability of water services in selected areas of Tegucigalpa. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 IDA 50.00 27.59 22.41 55.18 i The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) 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 TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................4 III. PROPOSED CHANGES ................................................................................................................................................5 IV. DETAILED CHANGE(S) ...............................................................................................................................................6 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction 1. This Restructuring Paper seeks the Country Director’s approval for a Level 2 restructuring to (i) extend the Closing Date of the Tegucigalpa Water Supply Strengthening Project (P170469) (the Project) by 23 months, from January 15, 2025 to December 15, 2026, (ii) adjust the Results Framework to reflect new Closing Date only and (iii) revise the disbursement projections. It is anticipated that the proposed extension will allow for the achievement of the Project Development Objective (PDO). This is the Project’s second restructuring. 2. Approved in June 2019, the Project aims to enhance Tegucigalpa’s water supply services. However, significant delays arose due to the COVID-19 pandemic shortly after approval, followed by a government change in February 2022, which shifted priorities and disrupted the implementation timeline. This second project restructuring was requested by the Government of Honduras through a letter with reference number DGCP-FEMS-770/2024 from the Ministry of Finance (SEFIN) dated November 7, 2024.1 All other elements of the Project—such as the Project Development Objective (PDO), scope, project components, and institutional arrangements—would be left unchanged. 3. This restructuring fully complies with the Bank Directive for Investment Project Financing as (i) the performance of the Recipient remains satisfactory, (ii) the PDO remains relevant, (iii) the Bank and the Recipient agreed on actions to be undertaken by the Recipient to complete the Project and achieve its objective, (iv) the Project is not subject to suspension of disbursements, and (v) the Recipient does not have any outstanding audit reports nor are there audit reports deemed unsatisfactory to the Bank. B. Project Background 4. The Tegucigalpa Water Supply Strengthening Project was approved by the Board of Executive Directors on June 27, 2019, and became effective on March 4, 2020, for an IDA credit of US$50 million (IDA-6460-HN). The PDO of this Investment Project Financing (IPF) operation, which includes disbursement-linked indicators (DLIs) is to increase the efficiency and reliability of water services in selected areas of Tegucigalpa. The Project has three components: a. Component 1. Operationalization of UMAPS (US$18 million)—supports the establishment of the new water service provider through the achievement of DLIs. This component is complete, including achievement of all DLIs. b. Component 2: Improved Water Production Capacity and Distribution Network Efficiency (US$27 million)— aims to enhance the resilience of the city’s water services to climate related risks by increasing water availability and reliability, while reducing the risk of dam failure in the city’s two main reservoirs, Los Laureles and La Concepción. c. Component 3: Project Management and Technical Assistance (US$5 million)—finances goods, operating costs, technical assistance, capacity building, and consulting services to support overall project management and oversight, including compliance with the DLIs. 1SEFIN requested an extension until April 15, 2027, which includes the four-month grace period. Therefore, this Restructuring Paper proposes extending the project by 23 months, setting the new end date to December 15, 2026. The grace period will conclude on April 15, 2027. Page 1 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) 5. The Project has disbursed US$27.59 million (55%) and committed US$39.7 (79%). Currently, the Project is rated Moderately Unsatisfactory for progress towards achievement of the PDO and Moderately Satisfactory for overall Implementation Progress (IP). With an extension of 23 months, it is anticipated that the indicators could all be met, that the Project’s performance could further improve, and the PDO rating could be upgraded in Q3 of FY25. 6. Activities under Components 1 and 2 are critical to achieving the PDO. Component 1 focused on transferring Tegucigalpa’s water and sanitation system from the national provider, Servicio Autónomo Nacional de Acueductos y Alcantarillados (SANAA), to the new municipal provider, Unidad Municipal de Agua Potable y Saneamiento (UMAPS), as mandated by the 2003 Water and Sanitation Framework Law. Component 2 aims to enhance water production capacity and distribution efficiency through: (i) rehabilitating Tegucigalpa’s three main water treatment plants (WTPs); (ii) implementing district metering areas (DMAs) in targeted areas; (iii) improving the efficiency of the gravity-fed distribution network by reducing non-revenue water (NRW) in the DMAs; and (iv) strengthening the safety of La Concepción and Los Laureles dams through instruments, plans, and minor works. 7. This is the Project’s second restructuring. The first restructuring—approved in June 2023—reflected changes in Government priorities and involved modifying the initially targeted DMAs based on the priorities of the AMDC and UMAPS, revising the Results Framework, and adjusting disbursement estimates. The Environmental and Social Commitment Plan (ESCP) was also updated following the restructuring. This proposed restructuring includes a first extension of closing date (and corresponding adjustments to disbursement projections and the Results Framework to reflect the new closing date only) and addresses an official request from SEFIN dated November 7, 2024, to accommodate the delays and ensure the project’s successful completion. C. Overall Project Status 8. Since the Project’s June 2019 Board approval, its implementation progress has been mixed. While Component 1, which focused on the transfer of Tegucigalpa’s water and sanitation services from the national provider (SANAA) to the new municipal service provider (UMAPS) was completed ahead of the scheduled three-year deadline, the implementation of the other two components faced significant delays. These setbacks were primarily due to the COVID-19 pandemic and the change in government in February 2022, which shifted government priorities and disrupted the Project’s timeline. As a result, the PDO and overall Implementation Progress (IP) ratings were downgraded to Moderately Unsatisfactory (MU) in December 2021. Progress towards the PDO has remained at the level since; overall IP was upgraded to Moderately Satisfactory in the last Implementation Status Report, dated November 4, 2024.2 There are no salient environmental, social, or fiduciary issues. 9. The Mid-Term Review (MTR), carried out in September 2022, assessed the situation and developed an Action Plan to set the Project back on track. While external factors like the pandemic, tropical storms, and price increases due to international conflicts contributed to the delays, the MTR also highlighted internal issues such as weak project management, slow decision-making within the municipal government, and high turnover in the Project Coordination Unit (PCU) as key hurdles that were negatively affecting implementation. Furthermore, the failed procurement process for a 2 The ISR emphasizes that implementation progress has shown significant improvements, warranting an upgrade to MS. This was justified because of: (i) enhanced coordination and oversight; (ii) procurement and commitment milestones—the PIU and UMAPS have actively worked to streamline and accelerate procurement processes, resulting in reaching the 75% commitments threshold required by the Government to be eligible for an extension; and (iii) substantial progress under Component 2 in works underway (El Picacho) and reaching notification of intention to award for Los Laureles and La Concepcion, where historically we did not see much traction; and (iv) substantial increase in disbursements and commitments. Page 2 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) Project Management Consultancy (PMC) firm deprived the PCU and UMAPS of essential support during a critical institutional transition. 10. Since the MTR, the Bank has implemented a series of targeted measures to overcome challenges and accelerate progress. These include procurement capacity-building initiatives, Hands on Expanded Implementation Support (HEIS), weekly meetings with the PCU, and deeper engagement with UMAPS. A key milestone was the establishment of a Project Steering Committee in 2024, which has proven instrumental in enhancing accountability and expediting decision-making among stakeholders. 11. Notable progress has been made in the procurement of essential activities. Specifically, the works and supervision contracts for all three water treatment plants—El Picacho, La Concepcion, and Los Laureles—are expected to be contracted by the end of December 2024. For El Picacho, both contracts are signed, and the works are well underway. For La Concepción and Los Laureles, the contracts for works and supervision contracts have reached the “Notification of Intention to Award” stage (the furthest possible point in the procurement process under Honduran law without a project extension). 12. Progress on the DMAs and NRW reduction has also advanced significantly. A pilot project in Loarque is underway, and the design of the first five DMAs is expected to be completed by the end of November 2024, with contracts for works signed by February 2025. The designs for an additional nine DMAs will follow. While these initial 14 designs will be completed within the current project timeframe, the project must be extended to allow for the implementation of the five DMAs and full achievement of the NRW reduction targets. 13. With a Panel of Experts in place for dam safety, and the bidding process for a dam safety consultancy in advance stages (work expected to begin in February 2025), significant progress has been made on the dam safety sub-component. The consultancy, which will span approximately 12 months, will focus on reviewing the safety of the two dams and defining necessary interventions to ensure structural safety in line with international best practices. This includes feasibility studies for the interventions, as well as detailed studies for the rehabilitation of dam surveillance systems, bottom outfall gates, and other minor but urgent works, which must be prioritized for completion before the Project’s close (that is, between February 2025 and December 2026). 14. Project management has seen notable improvements. The PCU has been fully staffed with key positions and a dedicated office space, changes that have significantly streamlined decision-making and accelerated the pace of implementation, ensuring closer adherence to the project timelines and improving overall efficiency in managing both technical and procurement processes. D. Rationale for Project Restructuring 15. To ensure the basis for a full achievement of the PDO, an extension of the Project by 23 months is critical. Without this extension, significant ongoing activities—such as the rehabilitation of Tegucigalpa’s WTPs, the DMA implementation, and dam safety measures—cannot be completed. Many of these interventions are essential for improving the city’s water supply reliability and efficiency, reducing non-revenue water, and safeguarding the infrastructure, particularly the dams. This proposed extension is expected to allow the project to close without any outstanding safeguard issues. 16. Additionally, with 45% of the funds yet to be disbursed and major contracts still in the bidding or early implementation phases, the Project will fall short of its objectives without additional time. Extending the Project would allow these Page 3 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) critical activities to be finalized and provide sufficient time for the newly implemented strategies and support systems to take full effect. Given the current progress and projected commitments, this extension is necessary to ensure that the Project can achieve its development goals and secure sustainable improvements in Tegucigalpa’s water services. II. DESCRIPTION OF PROPOSED CHANGES E. Change in Grant Closing Date 17. The proposed Level 2 restructuring introduces the following changes to the Project: (1) the Closing Date is extended by 23 months, from January 15, 2025, to December 15, 2026, to ensure sufficient time to complete the Project’s activities and (2) revised the disbursement projections to reflect new closing date, and (3) revises the Results Framework to reflect new closing date only—no other changes are proposed to the Results Framework. Summary of Performance of E&S Risk Compliance The Project’s Environmental and Social Risk Rating is Substantial and the performance rating for the relevant Environmental and Social Standards (ESSs) is Satisfactory. It is worth noting that significant progress has been made on the dam safety sub- component. During the second site visit of the panel of experts (PoE) in December 2023, the panel confirmed that the Los Laureles and La Concepción dams operate normally and that there are no deficiencies that could affect their operation under normal load conditions. To improve the long-term integrity and safety of the dams to meet modern standards, consultants to undertake the dam safety review are being contracted and start of activities is expected to take place in February 2025, with an estimated duration of 12 months. The Consultant will be responsible for all activities related to the safety review of both dams, as well as the definition of the necessary interventions to ensure adequate safety of the structures, due in part to the threat they pose to the densely populated downstream areas. This includes conducting studies in the feasibility design phase for the necessary interventions. In addition, detailed studies will been carried out and tender documents will be prepared for the rehabilitation of dam surveillance systems, bottom outlet gates and other minor but urgent works. These activities should be prioritized for implementation within the project and completed by July 2026. The Consultant will also be responsible for finalizing the dam safety plans in accordance with Bank requirements, as well as formulating a plan for institutional strengthening of the UMAPS. The ESMPs for the improvements to the El Picacho and La Concepción WTPs have been approved by the WB and are published on the AMDC website. The works at the El Picacho WTP are currently underway and the Contractor is implementing its Contractor ESMP prepared based on the ESMP prepared by the AMDC. The ESMP for the Los Laureles WTP is in the process of being adjusted by the UCP/AMDC in response to the latest comments made by the WB E&S team. It is expected that works, and related ESMPs, can be completed within the timeframe of the restructured project. The Project's Grievance Mechanisms are in operation. Describe any E&S issues and impacts associated with the change in project design. Identify and describe any potential large scale, significant and/or irreversible impacts. Given that the proposed restructuring only involves the extension of the project closing date to ensure the completion of planned interventions and does not encompass new activities nor a change in the Project’s geographic area, there are no material changes in Project environmental and social risks or impacts. Describe any potential indirect and/or long-term impacts due to anticipated future activities in the project areas. Page 4 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) No indirect and/or long-term impacts are expected as a result from future activities in project areas. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The proposed restructuring will not require compliance with new E&S standards, or preparation of new Project ESF instruments. Ongoing mitigation measures and instruments remain valid. Describe measures taken by the borrower to address E&S policy issues. Provide an assessment of borrower capacity to plan and implement the measure described. E&S policy issues are being addressed by the borrower through compliance with the updated ESCP. The PCU is adequately resourced to support planned activities with a full complement of E&S specialists. Identify key stakeholders and describe the mechanism for consultation and disclosure on E&S policies, with an emphasis of potentially affected people. Besides project beneficiaries and communities near the WTPs, key stakeholders include the Municipal Water and Sanitation Management Unit, Municipal Environmental Management Unit, Municipal Development Institute, "Patronatos" (neighborhood councils), Juntas de Agua (water boards), women's organizations, and NGOs. The Stakeholder Implementation Plan is being implemented and the ESMPs for the WTPs include provisions to consult with local communities during works. Consultations and information campaigns have also been carried out with residents in neighborhoods covered by project activities to improve the efficiency of the gravity-fed distribution network by reducing non-revenue water in the district metering areas. @#&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 Disbursements Estimates Yes Implementation Schedule Yes Development Objective No Loan Cancellations No Summary Description No Reallocations No (Operation Abstract) Legal Operational Policies No Financial Management No MFD/PCE No Procurement No Risks No Institutional Arrangement No Legal Covenants No Conditions No Implementation Modalities No Page 5 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) 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 Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications IDA-64600-001 Effective 15-Jan-2025 15-Jan-2025 15-Dec-2026 15-Apr-2027 DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Implementation Start Date Operation Closing Date 27-Jun-2019 15-Jan-2025 Projected Date for Full Disbursement 15-Jun-2027 Page 6 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 16 Jun 2020) FY2019 0.00 0.00 0.00 FY2020 19,000,000.00 20,000.00 19,072.35 FY2021 8,000,000.00 700,000.00 712,534.00 FY2022 13,000,000.00 19,000,000.00 18,981,515.00 FY2023 6,000,000.00 1,500,000.00 1,476,339.00 FY2024 3,000,000.00 4,000,000.00 4,000,000.00 FY2025 1,000,000.00 12,000,000.00 2,400,000.00 FY2026 0.00 12,000,000.00 0.00 FY2027 0.00 780,000.00 0.00 ENVIRONMENTAL & SOCIAL Environmental & Social Assessment According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Page 7 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) RESULTS COUNTRY: Honduras TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Operationalization of the UMAPS Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year UMAPS is not Jan/2020 UMAPS is 16-Oct-2024 UMAPS is 16-Oct-2024 UMAPS operational Dec/2026 operational operational operational Revise Comments on achieving targets The UMAPS' organizational and governance structures have been approved by the AMDC council, the general A new Municipal Water and manager and assistant managers have been appointed (administrative/financial, commercial and operations), Sanitation Provider (UMAPS) the Service Performance Agreement has been signed, the UMAPS gender policy and action plan has been operational (Text) PBC implemented. In addition, the administrative, financial, and commercial functions, as well as El Picacho, Laureles, and la Concepcion water supply subsystems and the sanitation system have been transferred from SANAA to UMAPS. Improve the reliability and efficiency of water services in selected areas Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise People receiving at least 8 hours 0.00 Jan/2020 0.00 16-Oct-2024 0.00 16-Oct-2024 70,302.00 Dec/2026 of water per day in targeted areas under the Project (Number) Revise Priority WTPs operating at 95 0.00 Jan/2020 0.00 16-Oct-2024 0.00 16-Oct-2024 3.00 Dec/2026 percent capacity or higher in Comments on achieving targets Works for El Picacho WTP are underway; contracts for works to upgrade La Concepcion and Los Laureles have compliance with internal process reached the "Notification of Intent to Award" stage, and will be signed should an extension be approved. standards (Number) 0.00 Jan/2020 0.00 29-Feb-2024 0.00 29-Feb-2024 5.00 Dec/2026 Page 8 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) ReviseNumber of hydraulic sectors Comments on achieving targets Five DMAs with calibrated models and initial hydraulic balance, as well as a demand and consumption study in (District Metered Areas) complying each sector have been completed. DMA works are expected to begin in February 2025 should an extension be with physical losses reduction targets approved. (Number) Intermediate Results Indicators by Components Component 1. Operationalization of the UMAPS Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year UMAPS is not Jan/2020 The UMAPS 16-Oct-2024 The UMAPS 16-Oct-2024 UMAPS New Dec/2026 operational organizational organizational governance structure was structure was structure in place, approved by the approved by the organizational AMDC’s council in AMDC’s council in structure approved, January 2021, the January 2021, the Managerial Team managerial team managerial team appointed,the has been appointed has been appointed Service Performance (general, (general, Agreement has been administrative/finan administrative/finan signed and the Revise Adoption of Governance cial, commercial and cial, commercial and UMAPS gender Arrangements and Gender Policy operational operational policy adopted and (Text) managers), the managers), the its first actions Service Performance Service Performance implemented Agreement has been Agreement has been signed and the signed and the UMAPS gender UMAPS gender policy and its action policy and its action plan have been plan have been implemented. implemented. Comments on achieving targets The UMAPS new governance structure has been adopted by the Recipient and the Project Implementing Entity, the UMAPS organizational structure has been approved by the AMDC’s council, the managerial team has been Page 9 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) appointed (general, administrative/financial, commercial and operational managers), the Service Performance Agreement has been signed and the UMAPS gender policy adopted and its first actions implemented. Component 2. Improved water production capacity and efficiency of the distribution network Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Staff per thousand connections 10.40 Jan/2020 7.97 16-Oct-2024 7.97 16-Oct-2024 5.00 Dec/2026 (Number) Revise A risk assessment (including 0.00 Jan/2020 0.00 16-Oct-2024 0.00 16-Oct-2024 2.00 Dec/2026 potential climate hazards) and emergency preparedness plan for Los Laureles and Concepción approved by the Panel of Experts (Number) Revise Instruments to improve 0.00 Jan/2020 0.00 16-Oct-2024 0.00 16-Oct-2024 2.00 Dec/2026 watershed and climate risk Comments on achieving targets The consultancy for the evaluation and updating of Watershed Management Plans for Guacerique and San Jose management approved by the de Rio Grande river basis is underway, and about 50% complete. The consultancy on climate resilience is 90% Tegucigalpa Municipal Corporation complete. (Number) Revise Number of dams operating in 0.00 Jan/2020 0.00 16-Oct-2024 0.00 16-Oct-2024 2.00 Dec/2026 compliance with a dam safety action Comments on achieving targets The independent Panel of Experts on dam safety has been hired. The consultants are expected to begin on the plan (Number) Dam Safety Consultancy in February 2025 should an extension be approved. 0.00 Jan/2020 0.00 16-Oct-2024 0.00 16-Oct-2024 50.00 Dec/2026 Revise Percentage of homes receiving Comments on achieving targets The consultancy for the design, accompaniment, and monitoring of the Project's Communication Strategy began information about reductions in in November 2023 and the contract is expected to end in December 2024. To date, it is 72% complete, with a household water losses and rational public consultation survey carried out, the Communication Strategy and the Media Plan prepared, and the water use (survey in priority hydraulic Campaign 1 Proposal and the draft of Campaign 2 delivered. The Pilot Information Campaign began in August sectors) (Percentage) (Percentage) 2024, and is expected to end in November 2024. Revise Number of Hydraulic sectors 0.00 Jan/2020 0.00 16-Aug-2024 0.00 16-Aug-2024 5.00 Dec/2026 complying with target of Percentage increase of billed volume. based on meter readings (m3/year) (Cubic meters/year) Component 3. Project Management and Technical Assistance Page 10 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Reports on UMAPS’ 0.00 Jan/2019 0.00 16-Oct-2024 0.00 16-Oct-2024 1.00 Dec/2026 performance as a WSS operator in Tegucigalpa, backed by the Performance Review Committee (Comité de Revisión del Desempeño - CRD) and published yearly by the Regulator and IBNET (Number) Revise Public consultations on 0.00 Jan/2020 1 16-Oct-2024 1 16-Oct-2024 1.00 Dec/2026 planning, service standards and Comments on achieving targets Under the consultancy of the communication strategy, 1,687 surveys were conducted in 75 neighborhoods of funding sources carried out as the 14 hydraulic sectors, with questions related to service standards, distribution, measurement, and billing. required by Service Performance Agreement (Number) Revise Stakeholder consultation and No Jan/2020 Yes 16-Oct-2024 Yes 16-Oct-2024 Yes Dec/2026 engagement plan implemented Comments on achieving targets The Stakeholder Consultation and Engagement Plan (SEP) was updated in August 2021 and published in AMDC's (Yes/No) website. The SEP is being implemented. Revise Grievances addressed and 0.00 Jan/2020 100 16-Oct-2024 100 16-Oct-2024 90.00 Dec/2026 resolved within the agreed timeframe Comments on achieving targets To date, 28 grievances have been received, of which 5 were considered project related. All five were resolved (Number) satisfactorily. Performance-based Conditions (PBC) Actual (Previous) Actual (Current) PBC Name Baseline End Target Result Date Result Date Revise 1 A new Municipal UMAPS is not Value Water and Sanitation operational UMAPS is 29-Sep-2023 UMAPS is operational 29-Sep-2023 Provider (UMAPS) Allocated operational operational (Text) 0.00 0.00 Amount Page 11 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) Total Allocation:3,000,000.00 2 A new Municipal Water UMAPS is not Value and Sanitation Provider operational (UMAPS) operational UMAPS is (Text) 29-Sep-2023 UMAPS is operational 29-Sep-2023 Allocated operational Total 0.00 0.00 Amount Allocation:5,000,000.00 3 A new Municipal Water UMAPS is not Value and Sanitation Provider operational (UMAPS) operational UMAPS is (Text) 29-Sep-2023 UMAPS is operational 29-Sep-2023 Allocated operational Total 0.00 0.00 Amount Allocation:5,000,000.00 4 A new Municipal Water UMAPS is not Value and Sanitation Provider operational (UMAPS) operational UMAPS is (Text) 29-Sep-2023 UMAPS is operational 29-Sep-2023 Allocated operational Total 0.00 0.00 Amount Allocation:1,000,000.00 5 A new Municipal Water UMAPS is not Value and Sanitation Provider operational (UMAPS) operational UMAPS is (Text) 29-Sep-2023 UMAPS is operational 29-Sep-2023 Allocated operational Total 0.00 0.00 Amount Allocation:1,500,000.00 6 A new Municipal Water UMAPS is not Value and Sanitation Provider operational (UMAPS) operational UMAPS is (Text) 29-Sep-2023 UMAPS is operational 29-Sep-2023 Allocated operational Total 0.00 0.00 Amount Allocation:1,500,000.00 Page 12 The World Bank TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT (P170469) 7 A new Municipal Water UMAPS is not Value and Sanitation Provider operational (UMAPS) operational UMAPS is (Text) 29-Sep-2023 UMAPS is operational 29-Sep-2023 Allocated operational Total 0.00 0.00 Amount Allocation:1,000,000.00 Page 13