The World Bank Report No: ISR13770 Implementation Status & Results Honduras HN Water and Sanitation Sector Modernization Project (P103881) Public Disclosure Copy Operation Name: HN Water and Sanitation Sector Modernization Project Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 06-Mar-2014 (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 19-Aug-2013 Effectiveness Date 22-Feb-2008 Revised Closing Date 31-Dec-2016 Actual Mid Term Review Date 05-May-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) Revised project development objective: to support the Recipient to improve: (a) the sustainability, efficiency, and reliability of its WSS services in Eligible Municipalities; (b) the performance of its national WSS sector institutions in the exercise of their respective roles in accordance with the WSS Sector Framework Law; and (c) its capacity to respond promptly and effectively to an Eligible Emergency. 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 Public Disclosure Copy Component 4: Project management 1.60 Component 5: IRM Contingent Component 0.00 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 Page 1 of 6 The World Bank Report No: ISR13770 This ISR presents the project situation as of February 12, 2014 and reports on the main activities and project related events occurred from August 2013 to January 2014. The Project's progress towards the achievement of its Development Objectives and the implementation pace continue to be moderately satisfactory. The Financing Agreement relative to the US$10 million Additional Financing Credit (AF) approved for the Project became effective on October 9, 2013. To date, all original Project funds have been allocated/ Public Disclosure Copy committed and US$18.3M ( 92.5% of Project funds) has been disbursed. Regarding the AF, to date US$1M have been allocated/committed and US$ 1M ( 9.71% of AF Project funds) has been disbursed. From October 7 to October 11, 2013 a World Bank mission was carried with the objective to support the implementation of the project and follow up the progress of its activities. Component 1: The project has continued to strengthen the capacities of the six municipal service providers and the regional water utility (Mancomunidad) to improve service quality and financial viability. As a result of implementation and follow some of the recommendations from the Technical Assistance Service Provider the majority of the municipalities have laid the necessary foundations to achieve improvements in performance indicators. Overall the beneficiary utilities remain engaged at the technical and managerial level to improve their operational and commercial processes with the aim to recover their costs and supply safe water during longer periods to their customers. Given that the expected improvements depend on the execution of the works and on the implementation of the recommendations of the hydraulic modeling indicators show at present only marginal improvements; the completion works planned over the coming months will enable improved service continuity and reduced operating costs. Following consultations with local authorities and national water sector institutions the Government of Honduras selected the two new beneficiary municipalities of PROMOSAS. Both municipalities are among the country’s poorest and less developed (Categories C and D). Component 2: Physical contract works are completed 96% and 94% business. This phase was extended by 3 months and ends on October 31. It is contemplated that all activities are completed within planned. Following the completion of the micrometers installation and replacement campaign the NRW indicators have shown clear improvements and the goal of continuity under the contract seems within reach. For the purpose of determining the performance bonuses SANAA and the contractor agreed two periods (February 3 to September 2, 2013 and September 3, 2013 to April 2, 2014) to calculate the result on the basis of the weighted average of metered flows for the registered users in the given period. Component 3: Under the Institutional Strengthening component (Component 3) the main national water sector institutions (ERSAPS, CONASA and SANAA) reached an agreement on the scope and activities that will be financed with resources from the AF. ERSAPS benchmarking activities will be supported through capacity building facilitated by WSP with the objective to facilitate the publication of indicators of PROMOSAS utilities on IBNet. A final draft Sector Financing Policy for the WSS sector was completed by CONASA however the likelihood of its adoption remains unclear. Under the TA for the transfer/decentralization in Tegucigalpa the completion of the last consultancy is ongoing, although the date, modality and financing of an actual transfer are still unclear. Locations Country First Administrative Division Location Planned Actual Honduras Departmento de Francisco Morazan Tegucigalpa Public Disclosure Copy Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target 7 of the WSS utilities reach cost recovery (ratio Number Value 4.00 5.00 7.00 total revenue / total operative cost equal to Date 31-Dec-2006 12-Feb-2014 31-Dec-2016 one). Comments Baseline's date ranges from 2008 to 2009. Page 2 of 6 The World Bank Report No: ISR13770 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 12-Feb-2014 31-Dec-2016 defined by ERSAP#s performance indicators Comments (note: definition on the Category A, B, C, and D Public Disclosure Copy 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 12-Feb-2014 31-Dec-2016 municipalities. Comments At least 50% of municipal service providers Percentage Value 0.00 67.00 50.00 (non-SANAA WSS systems that are operated Date 31-Jul-2013 12-Feb-2014 31-Dec-2016 directly by municipalities) supported by the Comments Project are converted into autonomous municipal service providers. CONASA issues the new financial policy of the Text Value No No Yes sector. Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments The Financing Policy is under review by CONASA Number of other water service providers that Number Value 0.00 7.00 9.00 the project is supporting Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments Time taken to disburse funds requested by Weeks Value 0.00 0.00 4.00 Government for an eligible emergency Date 31-Jul-2013 12-Feb-2014 31-Dec-2016 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of people in urban areas (covering Number Value 0.00 3786.00 3700.00 semi-urban or small urban areas) provided with Date 18-May-2007 12-Feb-2014 31-Dec-2016 Public Disclosure Copy access to improved sanitation under the Comments project. Piped household water connections that are Number Value 0.00 1907.00 2000.00 benefiting from rehabilitation works undertaken Date 18-May-2007 12-Feb-2014 31-Dec-2016 by the project Comments At least 6 design proposals of autonomous Number Value 0.00 7.00 9.00 service providers approved by ERSAPS. Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments Page 3 of 6 The World Bank Report No: ISR13770 5 of the WSS utilities increase by 20% the ratio Number Value 0.00 5.00 6.00 of revenues per volumetric unit of water Date 18-May-2007 12-Feb-2014 31-Dec-2016 produced. Comments Public Disclosure Copy People trained to improve hygiene behavior/ Number Value 0.00 600.00 5000.00 sanitation practices under the proj Date 31-Jul-2013 12-Feb-2014 31-Dec-2016 Comments People trained to improve hygiene behavior/ Number Value 0.00 200.00 3000.00 sanitation practices - female Sub Type Date 31-Jul-2013 12-Feb-2014 31-Dec-2016 Breakdown Comments Percentage of grievances redressed Percentage Value 0.00 0.00 75.00 satisfactorily by utilities per year Date 31-Jul-2013 12-Feb-2014 31-Dec-2016 Comments At least 6 of the WSS utilities share indicators Number Value 0.00 0.00 6.00 in the regional benchmarking database of Date 31-Jul-2013 12-Feb-2014 31-Dec-2016 IBNET according to their protocols Comments Urban areas covered by the contract increase Text Value C B service continuity by one category Date 31-Jul-2013 12-Feb-2014 31-Dec-2016 Comments Percentage increase of collection per cubic Percentage Value 0.00 18.00 20.00 meter of supplied water to the project area. Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments SANAA has at least one regional unit operating Text Value No No Yes under the new model. Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments Indicators regarding utilities' performance are Text Value No Yes Yes published by ERSAPS Date 18-May-2007 12-Feb-2014 31-Dec-2016 Public Disclosure Copy Comments At leat 5 utilities have published their financial Number Value 7.00 9.00 statements in a Website. Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments Not available. SANAA / Tegucigalpa has complied with legal Text Value No No Yes requirements for transfer to municipality. Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments Page 4 of 6 The World Bank Report No: ISR13770 Cumulative percentage of disbursement Percentage Value 0.00 92.00 100.00 targeted according to disbursement plan is met. Date 18-May-2007 12-Feb-2014 31-Dec-2016 Comments Public Disclosure Copy IRM established and ready to provide access Number Value 0.00 to financial resources to Honduras in case of Date 12-Feb-2014 an eligible emergency Comments Data on Financial Performance (as of 23-Dec-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-2016 P103881 IDA-52700 Effective 19-Jun-2013 12-Jul-2013 09-Oct-2013 31-Dec-2016 31-Dec-2016 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 18.31 1.49 92.00 P103881 IDA-52700 Effective XDR 6.70 6.70 0.00 0.65 6.05 10.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR13770 Key Decisions Regarding Implementation None Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects P144357-HN AF WSS Modernization Public Disclosure Copy Page 6 of 6