Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Kabul Municipal Development Program (P125597) SOUTH ASIA | Afghanistan | Social, Urban, Rural and Resilience Global Practice Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2014 | Seq No: 4 | ARCHIVED on 20-Dec-2015 | ISR21865 | Implementing Agencies: Kabul Municipality (KM) Key Dates Key Project Dates Bank Approval Date:03-Apr-2014 Effectiveness Date:11-Apr-2014 Planned Mid Term Review Date:15-Mar-2016 Actual Mid-Term Review Date:18-Nov-2014 Original Closing Date:31-Dec-2019 Revised Closing Date:31-Dec-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives are to: (i) Increase access to basic municipal services in selected residential areas of Kabul city; (ii) Redesign KM’s Financial Management system to support better service delivery; and (iii) Enable early response in the event of an eligible emergency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Infrastructure Upgrading Program (US$85 million):(Cost $85.00 M) Redesign KM’s Financial Management System (US$3.0 million):(Cost $3.00 M) Studies (US$5 million):(Cost $5.00 M) Project Management, Works Design and Supervision (US$17 million):(Cost $17.00 M) Contingency Emergency Response Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Satisfactory  Moderately Satisfactory 12/20/2015 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Overall Risk Rating  High  High Implementation Status and Key Decisions Project implementation is progressing reasonably well, and the Grant is expected to achieve the end of project indicator targets for physical improvements and the outcomes. Completion of the study for the redesign of the study for Kabul Municipality's FM system could be at risk, both because of the difficulties in attracting the required international experts, and because of the lack of support provided to the International Municipal Finance Advisor through the deployment of short term IOC staff. Grant disbursements (as of December 5, 2015) stand at US$19.9 million, or 18% of the Grant amount. Project level commitments stand at US$36.49 million (33 % of the Grant amount). Cumulative expenditures by the Grant are expected to be US$30.0 million (27.2% of the Grant) Component A: Infrastructure Upgrading Program (US$85 million): 38 contracts for works valued at US$30.5 million have been awarded by October 31st, 2015. ** 31 of these 38 Works contracts (US$26.27 million) are for "upgrading" or the delivery of basic economic infrastructure services in 31 "gozars" that occupy 990.8 hectares of land. Residents in these gozars have benefitted from the delivery of 132.96 kms. of paved community roads, 223.19 kms of community drains, as well as small parks and public open spaces. The total number of direct beneficiries in these gozars are 209,000 people. ** 6 Works contracts (US$4.484 million) have rehabilitated 14.59 kilometers of main or connector roads that link gozars to the main city fabric. 13.7 kms are complete, and work is underway on 1.4 kms. ** 1 Works contract was awarded for the emergency cleaning of about 2kms. of the Wazir Abad Kanal (US$0.098) to reduce the risk of flooding. Civil works executed by KMDP continue to be of high technical design and construction quality. A total of 359,128 people have benefited directly from the upgrading works in gozars and the rehabilitation of trunk roads. Over 70% of the beneficiries are women and children. In addition there are 137,537 indirect beneficiaries including students, teachers and staff of several schools and institutions of higher education that are located in the upgraded areas. 11,300 tree saplings have been planted in 13 gozars with community contributions. Community solid waste collection mechanisms are functioning in most of the gozars. About 1,059,224 man-days of temporary employment has been generated through the execution of Works contracts so far. KMDP's cost effective methodology for urban area upgrading is enabling equitable service delivery, strengthening the social capital of the beneficiary communities, and continues to entrench a culture of community participation in decision making over public expenditures that directly impact the community. There is a well functioning grievance redress mechanism. Of the 120 grievances recieved so far, all have been resolved, including the removal of obstacles in the rights-of-way of neighborhood roads, e.g. fences, containers, slabs, and septic tanks on the side walks. KMDP continues to deliver training for staff of contractors to ensure smooth implementation of Works subprojects, and distributes a monthly newsletter in 10 KM District offices, to the 10 KM departments, the Upgrading depoartment of the Ministry of Urban Development Affairs, and the gozars. Component B: Redesign of KM's Financial Management System (US$3.0 million). An international Municipal Finance Advisor mobilized in March 2015. The following activities have been completed: (I) Advocacy paper for KM Leadership discussing limitations of current system to build support for a comprehensive budget; (ii) Model of an integrated comprehensive report by services in keeping with international standards; (iii) A report assessing the current IFMIS operations and the changes needed to ensure the needed hierarchy/authority and independence from line departments. (iv) Computerization of KM's database on registration of Transfers of Ownership of Real estate - 4 staff have been contracted to undertake data entry. The following work is underway ; (I) Empirical analysis of KM's financial performance; (ii) Report on the efficiency of collection of vehicle tax (KM collects 55% of what it could collect - could enhance revenues by US$7million per year); (iii) A proposal for the collection of safayee tax through the bi-monthly electricity bill; (iv) Report on Safayee Tax performance and Administration. (iv) Report on the impact of GPSs (financed by KMDP) on fuel consumption and budgetary savings. The recruitment of a consulting firm is well advanced, but given market conditions in Kabul, the actual date of mobilization remains unclear, as suitable substitutions for key experts unwilling to come to Kabul, may have to be found. Component C: Studies. Both planned studies have been dropped - the HH survey and the master plan for drainage. A German firm is preparing studies whose scope includes drainage in Kabul. Reallocation of funds earmarked for these studies will be done during the Mid Term Review planned for Spring 2016. Component D: Project Implementation, Design and Supervision: There has been turn over of key staff in KMDP (procurement) and a decline in the momentum of implementation. Component E: Contingency Emergency Response: Not Applicable as this is not triggerred until there is an emergency. 12/20/2015 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) 12/20/2015 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  High  High Sector Strategies and Policies  --  High  High Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Moderate  High Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  High  High Other  --  High  -- Overall  --  High  High Results Project Development Objective Indicators 12/20/2015 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) PHINDPDOTBL  Number of beneficiaries from upgrading in both planned and unplanned areas that are upgraded. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 102995.00 209032.00 775000.00 Date 14-Feb-2014 09-Apr-2015 31-Oct-2015 31-Dec-2019 PHINDPDOTBL  Number of people in urban areas provided with access to all season roads within a 500 meter range under the project. (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 313885.00 359128.00 775000.00 Overall Comments The Grant is expected to achieve the end of project targets for physical improvements and outcomes. Completion of the study for the redesign of Kabul Municipality's Financial management System could be at risk, because of the difficulties in attracting the required international experts. Intermediate Results Indicators PHINDIRITBL  Area Upgraded (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 618.90 990.81 1773.00 Date 14-Feb-2014 09-Apr-2015 31-Oct-2015 31-Dec-2019 PHINDIRITBL  Kilometers of community roads paved (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 76.90 132.96 -- Date 14-Feb-2014 09-Apr-2015 31-Oct-2015 31-Dec-2019 12/20/2015 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) PHINDIRITBL  Kilometers of trunk road paved (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 13.17 14.59 -- Date 14-Feb-2014 09-Apr-2015 09-Apr-2015 31-Dec-2019 PHINDIRITBL  Kilometers of community drains lined (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 121.30 223.19 -- Date 14-Feb-2014 09-Apr-2015 09-Apr-2015 31-Dec-2019 PHINDIRITBL  Kilometers of trunk drains lined (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.17 13.17 -- Date 14-Feb-2014 09-Apr-2015 09-Apr-2015 31-Dec-2019 Overall Comments The prospects of achieving the end of the project target of providing basic services (upgrading) in 1773 hectares of residential settlements, both planned and unplanned, are good. While the end of the project target area in which infrastructure is to be provided is known, the actual lengths of community roads and drains etc. (the intermediate results) are determined only when annual upgrading plans are developed and detailed surveys and engineering undertaken. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P125597 TF-17016 Effective USD 110.00 110.00 0.00 23.01 86.99 21% Key Dates (by loan) 12/20/2015 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P125597 TF-17016 Effective 11-Apr-2014 11-Apr-2014 11-Apr-2014 31-Dec-2019 31-Dec-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/20/2015 Page 7 of 7 Public Disclosure Copy