The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) Urban Water Supply Strengthening Project (P173125) LATIN AMERICA AND CARIBBEAN | Honduras | IBRD/IDA | Investment Project Financing (IPF) | FY 2020 | Seq No: 9 | Archived on 17-Dec-2024 | ISR02259 Implementing Agencies: Secretaría de Agricultura y Ganadería (SAG) 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 22-Jun-2020) To improve the quality and efficiency of water supply services delivered by Participating Urban Water Providers and support urban municipalities to respond to water supply and sanitation emergency needs. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component 1. Improving Water Supply Services Provision in Urban Areas :(Cost 41,500,000.00) Component 2. Institutional Strengthening of ERSAPS:(Cost 1,500,000.00) Component 3. Project Management, Communication, Outreach, Monitoring and Evaluation:(Cost 3,500,000.00) Component 4. Contingency Emergency Response (CER) Component:(Cost 0.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating --- Moderate 4. KEY ISSUES & STATUS Dec 17, 2024 Page 1 of 9 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) 4.1 Implementation Status and Key Decisions The Project was approved by the Board on June 22, 2020, and subsequently became effective on September 24th, 2021. To commence the implementation of key project activities, the Project Management Unit was established with appropriate fiduciary systems and implementation arrangements in place. Due to the decision to close the original implementing entity, Inversión Estratégica/MCC-Honduras (INVEST-H), the Government opted to transfer the Project to a new implementing entity, the Ministry of Agriculture and Livestock (SAG). To provide legal ground for this transition, an amendment to the Legal Agreement was approved, and became effective on May 4th, 2023.The Project's Grievance Redress Mechanism (GRM) is anticipated to become fully operational once on-ground activities are initiated. Its functionality will allow for the proper handling and resolution of grievances related to the Project. In May 2024, the project was restructured to extend the implementation period to March 2027. Additionally, minor adjustments were made to the activities of the project. New Procurement Strategy has significantly boosted market participation. Procurement processes for works have been launched, alongside two consultancy processes for the supervision of these works, with contracts for these activities expected to be signed between January and early February 2025. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - RP Seq. 02 - 17 Jul Proposed Rating 22 Jun 2020 2024 Political and Governance Substantial  Substantial Macroeconomic Substantial  Substantial Sector Strategies and Policies Moderate  Moderate Technical Design of Project or Program Substantial  Substantial Institutional Capacity for Implementation and Substantial  Substantial Sustainability Fiduciary Moderate  Substantial Environment and Social Moderate  Moderate Stakeholders Moderate  Moderate Overall Substantial  Moderate Dec 17, 2024 Page 2 of 9 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Financial and Commercial Efficiency Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Participating UWPs that 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 50.00 Mar/2027 increase micro metering as a basis for billing by 10 percent (commercial efficiency - Climate Informed) (Percentage) Participating UWPs that reach 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 80.00 Mar/2027 operating cost recovery ratio greater than one (financial efficiency) (Percentage) Quality of services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Participating UWPs that 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 50.00 Mar/2027 increase hours of water service provision above 21 hours per week (service quality/ reliability - Climate Informed) (Percentage) Page 3 of 10 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) Participating UWPs that meet 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 90.00 Mar/2027 national water quality standards (quality of water) (Percentage) (Percentage) Responding to COVID-19 emergency needs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Participating urban 0.00 Oct/2020 0.00 30-May-2024 0.00 22-Nov-2024 90.00 Mar/2027 municipalities that have implemented water supply and hygiene activities prioritized in the emergency intervention plans to address COVID-19 (Percentage) 6.2 Intermediate Results Indicators by Components Component 1. Improving Water Supply Services Provision in Urban Areas Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Participating municipalities 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 70.00 Mar/2027 that applied for the Project and created a deconcentrated provider (Percentage) Participating UWPs that 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 70.00 Mar/2027 elaborated a RIRP (Climate Page 4 of 10 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) Informed) (Percentage) Participating UWPs created 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 70.00 Mar/2027 within a 5 year-timeframe that are operating satisfactorially (Percentage) Participating UWPs that 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 50.00 Mar/2027 increased micro metering coverage at least 15 percentual points (Climate Informed) (Percentage) 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 80.00 Mar/2027 Comments on Within the terms of reference for the selection of an international consulting firm, which is set achieving targets to be contracted in the second quarter of 2025 calendar year, there is a provision for technical Participating UWPs with assistance to be provided to urban water providers. One of the key activities outlined in this user´s attention and provision is to support the establishment and/or implementation of a Customer Service information office (Citizen Unit/Office. The primary objective of this unit will be to ensure the efficient and timely engagement contribution) handling of user requests, complaints, and claims. It is worth noting that some of the urban (Percentage) water service providers involved in the Project already have a user service unit in place. Through the implementation of technical assistance, it is expected that these existing units will be strengthened further. The customer service unit are expected to be in place and strengthen through the TA by the end of Q4 2025. Participating UWPs that 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 80.00 Mar/2027 implemented social outreach and communication plans to incentivize rational water and WASH practices (Climate informed) (Percentage) Participating UWPs that 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 60.00 Mar/2027 installed macro metering in all the producing units Page 5 of 10 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) (Percentage) Participating UWPs with 0.00 Aug/2020 0.00 30-May-2024 0.00 22-Nov-2024 60.00 Mar/2027 electrical energy costs greater than 30% of their operating costs, which reduce their Kwh consumption per m3 of water produced by at least 5% (Climate informed) (Percentage) Participating urban 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 90.00 Mar/2027 municipalities that have implemented water supply and hygiene activities prioritized in the emergency intervention plan approved by the Municipal Corporation (Percentage) Participating UWPs that meet 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 50.00 Mar/2027 national water quality E1 standards (quality of water) (Percentage) People provided with water, 0 May/2024 0 21-May-2024 0 22-Nov-2024 30,168 Mar/2027 of which (%) is safely managed (Number) Component 2. Institutional Strengthening of ERSAPS Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Participating UWPs 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 80.00 Mar/2027 reporting/sharing the information to ERSAPS Page 6 of 10 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) (Percentage) “Improvement Agreements” 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 80.00 Mar/2027 signed and monitored by ERSAPS (Climate Informed) (Percentage) Volumetric tariff structure 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 80.00 Mar/2027 reviewed and endorsed by ERSAPS (Percentage) Component 3. Project Management, Communication, Outreach, Monitoring and Evaluation Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Participating UWPs with 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 90.00 Mar/2027 independent annual audits reports, in compliance with international standards, submitted by SAG to ERSAPS and the Bank (Percentage) Applicantions of UWPs 0.00 Sep/2020 100.00 30-May-2024 100.00 22-Nov-2024 90.00 Mar/2027 received and analized by SAG (Percentage) Participating UWPs (with 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 70.00 Mar/2027 more than 20,000 connections) with gender policy implemented through a phased approach (elaborated, endorsed, and launched)- (Gender) (Percentage) Participating UWPs (more 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 70.00 Mar/2027 than 20,000 connections) with at least 10% female Page 7 of 10 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) representation in leadership and technical positions (Gender) (Percentage) 0.00 Sep/2020 0.00 30-May-2024 0.00 22-Nov-2024 80.00 Mar/2027 Share of grievances Comments on No grievances have been received to date. The project has not financed any civil works yet. satisfactorily addressed and achieving targets The GM for project stakeholders is set up and ready to be activated in areas where the project resolved within the agreed will finance sub-projects. The GM for workers has also been designed and ready to be timeframe (Citizen activated for contract workers before works. The GM for direct workers (e.g., PIU staff and engagement) (Percentage) consultants) is in place. Data on this indicator will be reported once grievances are received by the PIU (expected once civil works begin). Page 8 of 10 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed Historical Disbursed IDA-66960 Effective 45.00 45.00 0.00 2.07 42.93 4.61% 45.00 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-66960 Effective 22-Jun-2020 03-Jun-2021 24-Sep-2021 30-Dec-2025 31-Mar-2027 8. KEY DATES Dec 17, 2024 Page 8 of 9 The World Bank Implementation Status & Results Report Urban Water Supply Strengthening Project (P173125) Key Events Planned Actual Approval 22-Jun-2020 22-Jun-2020 Effectiveness 24-Sep-2021 24-Sep-2021 Mid-Term Review No. 01 04-Dec-2023 04-Dec-2023 Operation Closing/Cancellation 31-Mar-2027 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 01-Feb-2023 Restructuring Level 2 Approved on 10-Jun-2024 10. ASSOCIATED OPERATION(S) There are no associated operations Dec 17, 2024 Page 9 of 9