The World Bank Report No: ISR13258 Implementation Status & Results Brazil BR Pernambuco Sustainable Water (P108654) Public Disclosure Copy Operation Name: BR Pernambuco Sustainable Water (P108654) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 06-Mar-2014 Country: Brazil Approval FY: 2010 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 14-Jan-2010 Original Closing Date 30-Nov-2015 Planned Mid Term Review Date 01-Aug-2013 Last Archived ISR Date 09-Jul-2013 Effectiveness Date 15-Jun-2010 Revised Closing Date 30-Nov-2015 Actual Mid Term Review Date 08-Apr-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project development objective is to improve sustainable water supply and sanitation services for the population residing in the Capibaribe river basin and MRR. The proposed key indicators of achievement of Project objectives are: (a) Reduction in the percentage of served population subject to water rationing in the MRR from X% in 2008 to X% in 2014; and (b) Reduction of pollution load discharged by the municipalities targeted by the project#s wastewater investments from X tons of BOD/year in 2008 to X tons of BOD/year in 2014 Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost 1 - Water Sector Management and Institutional Development 29.00 Public Disclosure Copy 2 - Improving Efficiency in the Provision of Water Supply and Sanitation Services 52.00 3 - Water Supply and Sanitation Service Expansion 320.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Page 1 of 6 The World Bank Report No: ISR13258 Implementation Status Overview A supervision mission was carried out from November 4-6 and 25-27 , 2013. The Project implementation has improved since last supervision mission, with about 46% of the LA funds committed (US$86.7 million). About 23% of the LA is under procurement processes (US$45 million), under Bank's assessment. It is expected that another 36% of the LA funds to be procured and contracted before June 2014 (US$69 million). It should be noted that the project is considering the use of results-based approach for non-revenue water and a turn-key Public Disclosure Copy contract for wastewater, which brings higher risks to the bidding processes. The PMU and the PIU have been considerably strengthened, with several 14 qualified staff in the team. Special support is needed in procurement processes for components 2 and 3, for which a new special procurement commission is established. The Pernambuco Water and Climate Agency - APAC is now consolidated and fully functional. In addition to its inherent roles APAC is now co-leading a process to set a drought monitor for the Northeast Region. During the current and severe drought the State of Pernambuco has been able to better manage water shortage and reduce drought social and economic impacts. The Stare Government has restructured its organizational chart, with a reduction in number of secretariats. As a result of that change process the State Secretariat of Water and Energy Resources was merged with the State Secretariat of Transport, resulting in the new State Secretariat of Infrastructure. The merger did neither affect APAC nor COMPESA. The new State Secretary for Infrastructure is the former Secretary f Water Resources during project preparation. The project implementation will need additional time for completion, and an extension of the closing date may be necessary. A LA amendment and a level 2 project restructuring will be necessary to adjust implementation arrangements to the new state organization chart, to reflect minor changes in project scope and to extend the closing date. The Bank team continues to expect that major procurement processes using turn-key and results-based approach to be launched in the first quarter of 2014. Locations Country First Administrative Division Location Planned Actual Brazil Not Entered Vitória de Santo Antão Brazil Not Entered Toritama Brazil Not Entered Salgadinho Brazil Not Entered Estado de Pernambuco Brazil Not Entered Paudalho Public Disclosure Copy Brazil Not Entered Limoeiro Results Project Development Objective Indicators Page 2 of 6 The World Bank Report No: ISR13258 Indicator Name Core Unit of Measure Baseline Current End Target 1. Reduction in the percentage of Percentage Value 88.00 62.00 10.00 population subject to water rationing in the Date 31-Dec-2009 31-Jan-2013 30-Nov-2015 Public Disclosure Copy MRR from 88% in 2008 to 10% in 2015 Comments 2. Reduction in the pollution load of Metric ton Value 0.00 0.00 3160.00 3.160 tons of BOD/year discharged the Date 12-Jul-2011 31-Dec-2013 30-Nov-2015 municipalities targeted by the project#s Comments wastewater investments by 2015 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target State water regulatory agency (APAC) is fully Yes/No Value No Yes Yes operational. Date 12-Jul-2009 26-Mar-2010 30-Nov-2015 Comments Proposed Bill of Law APAC Law has been Instruments for water published. The agency is allocation, charges and already operational with all monitoring consolidated and directors and key positions used by APAC filled. Selection process for new technical staff is under way. The agency is increasingly becoming fully operational. Bulk water charges implemented Yes/No Value No No Yes Date 12-Jul-2011 31-Dec-2013 30-Nov-2015 Comments Selection process is under Bulk water charging way implemented Model for private participation in the Canal do Yes/No Value No Sertão Pernambucano defined Date 12-Jul-2011 31-Dec-2013 30-Nov-2014 Comments Feasibility Studies This activity is being carried Bidding Documents for PPP Public Disclosure Copy by the Federal Government, for the Canal do Sertão outside of the Project, and Pernambucano published may be removed from the project scope in a future project restructuring. 6. Water losses in the areas targeted by Cubic Meter(m3) Value 975.00 557.00 565.00 the project#s non-revenue water program are Date 31-Dec-2009 31-Dec-2013 30-Nov-2015 reduced from 975 l/connection/d in 2008 to Comments liter/connections/day This number may be rather a liter/connections/day 565l/connection/day in 2015. result of water rationing in the Recife Metropolitan Region Page 3 of 6 The World Bank Report No: ISR13258 from February-May, 2013, resulted of a prolonged drought. The figure may increase again as rationing is Public Disclosure Copy over, and NRW activities are not yet implemented. COMPESA’s index of cash flow sufficiency Percentage Value 103.80 110.10 115.00 improves from 103.8% in2008 to <115.0% in Date 31-Dec-2008 31-Dec-2013 30-Nov-2015 2015. Comments Calculated from the COMPESA 2011 Audited Balance Sheet Increase the number of residential connections Number Value 8169.00 0.00 30060.00 to wastewater collection services from 8169 in Date 31-Dec-2008 31-Dec-2013 30-Nov-2015 2008 to 33060 in 2015 in the municipalities of Comments the Capibaribe river basin targeted by the project. Number of masterplans for water supplyand Number Value 0.00 0.00 10.00 wastewatercompleted. Date 31-Dec-2013 30-Nov-2015 Comments This indicator may be revised 10 master plans, comprising 5 during a likely restructuring of for water supply and 5 for the project. A wastewater wastewater masterplan for the Recife Metro Region wasprepared outside of the project during the preparation of the PPP contract, which is already awarded. Engineering designs for watersupply and wastewater in selected cities are being developed under the project. An additional 5.13 m3/s are supplied to the Cubic Meter(m3) Value 0.00 4.50 5.13 Public Disclosure Copy MRR from the Pirapama Water Supply System Date 31-Dec-2009 31-Dec-2013 30-Nov-2015 by the end of 2011. Comments Prolonged drought resulted in a water supply rationing for the Recife Metropolitan Region from February-May, 2013, affecting the production capacity of the Pirapama System. Page 4 of 6 The World Bank Report No: ISR13258 Number of water utilities that the project is Number Value 1.00 1.00 1.00 supporting Date 31-Dec-2009 31-Dec-2013 30-Nov-2015 Comments Public Disclosure Copy Data on Financial Performance (as of 18-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P108654 IBRD-77780 Effective 14-Jan-2010 18-Mar-2010 15-Jun-2010 30-Nov-2015 30-Nov-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P108654 IBRD-77780 Effective USD 190.00 190.00 0.00 35.62 154.38 19.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Implementation performance improved in 2013. A project implementation improvement action plan agreed in mid-2013 was significantly implemented, and 46% of the LA funds has been committed. A revised procurement plan comprising changes agreed during the supervisionmission had been submitted and approved by the Bank in January. Restructuring History Page 5 of 6 The World Bank Report No: ISR13258 There has been no restructuring to date. Related Projects Public Disclosure Copy There are no related projects. Public Disclosure Copy Page 6 of 6