The World Bank Report No: ISR14955 Implementation Status & Results Afghanistan Afghanistan Urban Water Sector Project (P087860) Public Disclosure Copy Operation Name: Afghanistan Urban Water Sector Project (P087860) Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Archive Date: 14-Jun-2014 Country: Afghanistan Approval FY: 2006 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Key Dates Board Approval Date 25-May-2006 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date Last Archived ISR Date 22-Dec-2013 Effectiveness Date 27-Dec-2006 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 02-Nov-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the restructured project is to assist the Recipient to develop the capacity of the AUWSSC for operational management and investment planning and implementation. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Institutional development of AUWSSC 11.00 Financial support to AUWSSC operations 7.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The project development objectives to develop the capacity of the Afghanistan Urban Water Supply and Sewerage Corporation (AUWSSC) for (i) operational management and (ii) investment planning and implementation, have been substantially achieved. Operational management has improved since the project was restructured; AUWSSC was declared an independent entity on March 21, 2011; the utility has been fully corporatized; after a prolonged initial period when AUWSSC HQ Team consisted of just a couple of managers, a full management team for AUWSSC Head Quarters is in place, as is leadership in all the six Strategic Business Units (SBUs). Unfortunately in the last six months or so, there has been turnover of staff holding key positions, e.g. Technical manager, Executive Assistant to DG. With the Government approved increase in the water tariffs of over 200% that took effect Page 1 of 5 The World Bank Report No: ISR14955 from 5/2/1391 (April 24, 2012), AUWSSC is on a more sustainable financial trajectory. Revenues per connection had increased by 55% by the end of the second quarter of 2013, when compared to the end of 2011, and this will be reviewed and updated in June before closing of the project. Locations Public Disclosure Copy Country First Administrative Division Location Planned Actual Afghanistan Kabul Kabul Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of water utilities that the project is Number Value 1.00 1.00 1.00 supporting Date 10-Oct-2011 15-Oct-2013 30-Jun-2014 Comments After restructuring of the Since corporatization, The target, to support project in 2011, AUWSSC, AUWSSC's operations have AUWSSC has already been the only urban water utility in expanded from 14 towns to achieved. Afg which is being supported 32 towns between 2010 and by the project. Its creation 2012, and AUWSSC is was approved through a currently operating in 42 Presidential decree in 2006, towns through its six Strategic and the articles of Business Units (SBUs) and incorporation approved by the sub-SBUs. Cabinet and published in the Official Gazette in 2007. AUWSSC was officially incorporated and registered with the Afghanistan Investment Support Agency on 11 Aug2007. Upon its creation, it assumed operations in 16 towns. AUWSSC is fully corporatized and took over Date Value Public Disclosure Copy operations in urban areas. Date 10-Oct-2011 Comments Presidential Decree to create The corporatized AUWSSC is AUWSSC corporatized and AUWSSC was signed on Jan operational as an operational. 25, 2006. independent budget entity since March 2011. Number of household connections in Kabul Number Value 200.00 312200.00 provided by small scale local providers Date 10-Oct-2011 15-Jun-2015 Comments This baseline number was A study completed by No end target was arbitrary as there was little AImplementation of one established, as only a study Page 2 of 5 The World Bank Report No: ISR14955 information available - the Min community water scheme in financed by AuSAid was in of Urb Dev is responsible for Kabul by AUWSSC financed the work plan. The issuing licenses to private from this project are expected procurement plan was operators. to augment the water supply amended in December 2013 Public Disclosure Copy for 1000 connections with the to include implementation of a potential to increase the community water number of connection by 300. augmentation scheme - this is Implementation of a second under implementation. scheme planned had to be dropped due to delays in procurement. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Average per connection collections per year Amount(USD) Value 1179.00 1822.00 Date 01-Oct-2010 15-Jun-2015 30-Jun-2014 Comments 142,691 connections were No new data since last ISR. No end target was provided by AUWSSC and established, as multiple AFA 228.4 million revenues donors are investing in capital earned in SY1390 (2011). works that they will execute The average revenue per themselves, and the timeline connection at the end of 2011 of these investments was was Afs 1179. - Afs1822. unpredictable Financial statements of AUWSSC is produced Yes/No Value Yes Yes Yes and audited Date 01-Oct-2010 15-Jun-2015 30-Jun-2014 Comments At the time of project Corporate financial Audits of Corporate Financial restructuring, corporate statements for AUWSSC Statements for 2011, 2012, financial statements prepared have been prepared for 2011 and 2013 are to be completed by another donor, could not and 2012 and are being by May end. be certified by the donorfor audited. There has been a audit, and had to be re-done. delay in theaudits, due to a AUWSSC then re-prepared delay in the appointment of Public Disclosure Copy the Corporate Financial the external auditor. Statements for 1388 (2009) and 1389 (2010). Auditsof these were completed mid year 2012. Accounts Receivable Number Value 3.50 3.00 2.00 Date 01-Oct-2010 15-Oct-2013 30-Jun-2014 Comments No progress since the previous ISR. Target will not be met. Page 3 of 5 The World Bank Report No: ISR14955 Working ratio Amount(USD) Value 1.17 1.00 1.00 Sub Type Supplemental Public Disclosure Copy Average per connection collection Amount(USD) Value 988.00 0.00 Sub Type Supplemental Percentage of samples tested meeting residual Number Value 0.00 0.00 0.00 chlorine standards Date 01-Oct-2010 15-Jun-2015 30-Jun-2014 Comments Data was available for the Procurement of chlorine No end target was number of water quality included in the revised established. samples tested in 2009 (668 procurement plan had to be samples), 2010 (668 dropped due to delays. In samples), and 2011 (533 addition the Grant funds are samples.All SBUs except 100% committed. Kandahar undertook sample tests and a total of 1869 tests were undertaken over this period. However, no data is available on the percentage of this sample that met residual chlorine standards. Data on Financial Performance (as of 21-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P087860 IDA-H2250 Effective 25-May-2006 05-Jul-2006 27-Dec-2006 30-Jun-2010 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P087860 IDA-H2250 Effective XDR 27.90 12.24 15.66 6.99 5.25 57.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR14955 Public Disclosure Copy Key Decisions Regarding Implementation The Grant was restructured for a third time on 25 March 2014 to create a single disbursement category and eliminate monetary thresholds without changing the percentages allocated for disbursements for operating costs. Restructuring History Level one Approved on 01-Oct-2010, Level two Approved on 28-Jun-2012, Level 2 CD Decision on 10-Mar-2014 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5