The World Bank Report No: ISR9245 Implementation Status & Results Honduras Honduras Water and Sanitation Sector Modernization Project (P103881) Public Disclosure Copy Operation Name: Honduras Water and Sanitation Sector Modernization Project Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 08-Mar-2013 (P103881) Country: Honduras Approval FY: 2007 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Jun-2007 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 31-May-2011 Last Archived ISR Date 27-Sep-2012 Effectiveness Date 22-Feb-2008 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 05-May-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objectives are: (a) to improve the sustainability, efficiency, and reliability o f the Recipient's WSS services in eligible municipalities; and (b) to improve the performance of the Recipient's national WSS sector institutions in the exercise of their respective roles in conformity with the WSS Sector Framework Law. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Support to medium-size municipalities to create autonomous service providers and 21.20 invest in efficiency, rehabilitation, Component 2: Tegucigalpa Non-Revenue Water Reduction 4.50 Component 3: Institutional strengthening of national and regional sector institutions 7.20 Component 4: Project management 1.60 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The Project's progress towards the PDO and the implementation pace continues to be generally satisfactory. Up to date, all Project funds have been allocated/committed and US $21M have been disbursed. During the current year, disbursements are expected to accelerate significantly, considering that most of the activities are already contracted and Page 1 of 5 The World Bank Report No: ISR9245 committed. Special attention is also being provided on the financial sustainability and service quality of municipal utilities. The Project is currently supporting six municipal utilities and a regional water utility (Mancomunidad) is expected to become operational soon. Significant works have finalized in Siguatepeque, Comayagua, Choloma and Puerto Cortes and efforts have continued in strengthening municipal service providers. Besides, technical assistance for the municipalities Public Disclosure Copy continues progressing with a specific focus on strengthening the governance and managerial capacity of municipal providers and consolidating activities already executed and existing instruments (leak detection and reduction, metering and water balances). The execution of the second phase of the performance-based contract for Tegucigalpa Non-Revenue Water Reduction has started, focusing on the implementation of micro and macro metering installation and tanks renovation. The first phase of the contract is finished. The works (second phase) are expected to finish in June 2013, and the operation and monitoring phase (phase III of the contract) is expected to finish in December 2013. Under the Institutional Strengthening component, ERSAPS continues working on the reform of the tariff regulation and benchmarking activities for the utilities, while CONASA has already presented a final draft of the Financial Policy for the WSS sector (which is being discussed and validated among relevant WSS institutions); most consultancies under the TA for the transfer/decentralization in Tegucigalpa are completed, although the date, modality and financing of an actual transfer are still unclear. In terms of compliance with safeguard policies, no social or environmental issues were identified. Locations Country First Administrative Division Location Planned Actual Honduras Departmento de Francisco Morazan Tegucigalpa Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target 6 of the WSS utilities reach cost recovery (ratio Number Value 4.00 3.00 6.00 total revenue / total operative cost equal to Date 31-Dec-2006 30-Nov-2012 30-Oct-2013 one). Comments Baseline's date ranges from 2008 to 2009. At least 5 of the WSS utilities increase their Number Value 0.00 0.00 5.00 service continuity rating by one category Date 31-Dec-2009 30-Nov-2012 30-Oct-2013 Public Disclosure Copy defined by ERSAP#s performance indicators Comments (note: definition on the Category A, B, C, and D on service continuit At least 50% of the SANAA systems financed Percentage Value 0.00 100.00 50.00 under the Project are transferred to the Date 18-May-2007 30-Nov-2012 30-Oct-2013 municipalities. Comments CONASA issues the new financial policy of the Text Value No No Yes sector. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Page 2 of 5 The World Bank Report No: ISR9245 Comments The Financing Policy is under review by CONASA Number of other water service providers that Number Value 0.00 6.00 Public Disclosure Copy the project is supporting Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Piped household water connections that are Number Value 0.00 1508.00 2000.00 benefiting from rehabilitation works undertaken Date 18-May-2007 30-Nov-2012 30-Oct-2013 by the project Comments At least 6 design proposals of autonomous Number Value 0.00 7.00 6.00 service providers approved by ERSAPS. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments 5 of the WSS utilities increase by 20% the ratio Number Value 0.00 5.00 5.00 of revenues per volumetric unit of water Date 18-May-2007 30-Nov-2012 30-Oct-2013 produced. Comments Number of active connections in service area. Number Value 28328.00 26694.00 37750.00 Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments Some areas of works were changed and the number of connections decreased Percentage increase of collection per cubic Percentage Value 0.00 15.00 20.00 meter of supplied water to the project area. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments SANAA / Tegucigalpa has complied with legal Text Value No No Yes requirements for transfer to municipality. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Public Disclosure Copy Comments SANAA has at least one regional unit operating Text Value No No Yes under the new model. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments Indicators regarding utilities' performance are Text Value No Yes Yes published by ERSPAS. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments Page 3 of 5 The World Bank Report No: ISR9245 At leat 5 utilities have published their financial Number Value 7.00 5.00 statements in a Website. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments Not available. Public Disclosure Copy Cumulative percentage of disbursement Percentage Value 0.00 63.00 100.00 targeted according to disbursement plan is met. Date 18-May-2007 30-Nov-2012 30-Oct-2013 Comments Number of people in urban areas (covering Number Value 0.00 1536.00 10000.00 semi-urban or small urban areas) provided with Date 18-May-2007 30-Nov-2012 30-Oct-2013 access to improved sanitation under the Comments project. Data on Financial Performance (as of 14-Feb-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P103881 IDA-43350 Effective 21-Jun-2007 16-Nov-2007 22-Feb-2008 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P103881 IDA-43350 Effective XDR 19.80 19.80 0.00 14.24 5.56 72.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR9245 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History There has been no restructuring to date. Related Projects P144357-HN WSS Modernization Additional Finan. Public Disclosure Copy Page 5 of 5