The World Bank Report No: ISR5514 Implementation Status & Results Armenia Municipal Water and Wastewater Project (P063398) Public Disclosure Copy Operation Name: Municipal Water and Wastewater Project (P063398) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 29-Jun-2011 Country: Armenia Approval FY: 2004 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Sector Investment and Maintenance Loan Implementing Agency(ies): Contract Monitoring Unit, Armenia Water and Wastewater Company Key Dates Board Approval Date 04-May-2004 Original Closing Date 28-Feb-2009 Planned Mid Term Review Date 31-Oct-2006 Last Archived ISR Date 29-Jun-2011 Effectiveness Date 11-Nov-2004 Revised Closing Date 31-Dec-2011 Actual Mid Term Review Date 02-May-2007 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve (i) the quality of services provided to cusotmers in AWSC's service area; and (ii) the sustainability of AWSC. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost AWSC MANAGEMENT STRENGTHENING 8.00 AWSC INVESTMENTS 6.60 INVESTMENTS IN BRANCH SYSTEMS 12.20 Overall Ratings Previous Rating Current Rating Satisfactory Satisfactory Public Disclosure Copy Progress towards achievement of PDO Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview 1. The Project has made a good progress during the recent six months. The overall implementation of the Project is assessed by the team as satisfactory. Disbursements as of December 9, 2011 amounted to US$18.14 million, out of the US$ 20 million Additional Financing, which represented 91% of the credit amount. All activities are expected to be completed on-time. The ongoing activities and the remaining amounts to be paid under the contracts are presented below. Total amount to be paid: $1.86million - Improvement of the Water Supply and Wastewater Removal Systems of Hrazdan town - $1,065,824 Page 1 of 7 The World Bank Report No: ISR5514 - Management Fee for the months of Oct-Dec, 2011 - $296,400 - Technical Audit - $186,449 - Financial Audit of the Project – (after completion) - $123,771 - Inventories and Cadastral Registration of Assets - $81,792 Public Disclosure Copy - Renovation/Construction of Administrative buildings of AWSC Branches - $40,912 - Technical Supervision for civil works contracts - $35,524 - Operating costs - $29,328 - Proposed feasibility study and designs for Masis town and Ayintap - $120,000 (this activity is discussed in detailed in paragraphs below). 2. Major performance indicators reveal continued progress. In particular, most of the key performance indicators have met the end-project target, some have exceeded the target. - The average duration of water supply increased from 6h at the baseline to 14.96 h (with the end of project target: 15h). - Bacteriological safety compliance increased from 93% (baseline) to 98.2 % now (which has already met the target value). - Billing on the basis of metered consumption increased from 40% (baseline) to 81.2% now (with the end of project target: 77%). - Percentage of cities with minimal daily hours of water supply service increased from 68% (baseline) to 94% now (with the end of project target: 90%). 3. There are 22 indicators in total in the management contract that are being monitored. During the life of the Project these indicators have been showing good progress. According to the Quarterly Report issued by the Operator, as of September 30, 2011, all performance indicators met the end-of-Project target values; moreover, most of them have exceeded the targets. This progress indicates that the Project Development Objective will be met by the closing date. 4. The independent technical auditor assesses the operator's annual performance upon completion of the contract year (October 2011). The independent review is in progress, and the Government and the Bank expect to receive the independent technical auditor's report in end-December 2011. This assessment will enable the counterparts and the Bank to track the performance of the management contractor during the seventh year of the contract. 5. There are some unallocated funds under the Municipal Water & Wastewater Project (Credit No. 3893 AM) and its Additional Financing (Credit No. 4514 AM), and the counterparts have requested reallocation of funds to provide more resources mainly to the consultant services category to allow for: (i) preparation of the feasibility study and designs for the rehabilitation of water networks in the town of Masis and the village of Ayintap. This will be the first civil works package to be financed under the proposed Municipal Water Project, a repeater Project under preparation; and (ii) utilization of savings generated from SDR/USD currency exchange to cover the management fee for the operator (SAUR) for the period of October 19, 2011 through December 31, 2011. Furthermore, the counterparts have requested a two-months extension of the closing date of the Additional Financing (Credit No. 4514 AM) to allow completion of the feasibility study and detailed designs, as highlighted above. The team has conceded to this request and is currently processing a second level restructuring of the Project. Locations Country First Administrative Division Location Planned Actual Armenia Vayots' Dzori Marz Yeghegnadzor Public Disclosure Copy Armenia Vayots' Dzori Marz Vayk' Armenia K'aghak' Yerevan Yerevan Armenia Aragatsotni Marz Talin Armenia Geghark'unik'i Marz Martuni Results Page 2 of 7 The World Bank Report No: ISR5514 Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased weighted average of the daily hours Text Value 6.04 hours (measured value) 14.96 15.00 hours Public Disclosure Copy of drinking water service. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Target almost met. The progress will be re-assessed by the technical auditor and the figure will be reported in the next ISR Increased weighted average water Text Value 93.8% (measured value) 98.2% 98.1% bacteriological safety compliance. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Increased percent of individual subscribers Text Value 40.2% (measured value) 81.2% 77.8% billed on the basis of metered consumption. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Decreased company working capital. Text Value 194.9% (measured value) 96.9% 118% Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased percentage of cities with minimal Text Value 68.1% 94% 90% daily hours of water supply service. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Public Disclosure Copy Comments Exceeded end-of-project target Increased percentage of block apartment Text Value 38.6% 82% 75.0% buildings with individual or common block meters. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Page 3 of 7 The World Bank Report No: ISR5514 Indicator Name Core Unit of Measure Baseline Current End Target Increased revenue collected from domestic Text Value 166 524 260 subscribers per registered inhabitant (dram per Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Public Disclosure Copy month). Comments Exceeded end-of-project target Increased collection ratio excluding budget Text Value 47.9% 93.6% 80.0% organizations. Date 30-Nov-2005 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Decreased percentage of subscribers with Text Value 79.5% 27.7% 78.0% more than 4 months debt. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Increased average domestic metered Text Value 81 l/c/d 120 l/c/d 70 l/c/d consumption per metered registered inhabitant (in liters per capita per day (l/c/d). Date 30-Nov-2005 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Increased average price of m3 metered and Text Value 100.41 AMD/m3 179.8 AMD/m3 180.00 AMD/m3 billed to domestic subscribers. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments End-of-project target met Growth of total collected revenue from base Text Value 114.568 183.8% 200% year excluding budget organizations (in 1000 AMD per month). Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Close to the target Increased ratio of water volume billed on the Text Value 25.0% 87.9% 65% basis of metering to the total metered and Public Disclosure Copy normative billed volume. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Increased average daily production per Text Value 668 l/c/d 752 l/c/d 670 l/c/d equivalent registered inhabitant (in l/c/d). Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Page 4 of 7 The World Bank Report No: ISR5514 Increased ratio of metered final consumption Text Value 6.8% 15.2% 7.8% (m3) to water production at water catchments levels. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project Public Disclosure Copy target Decreased working ratio for branches with Text Value 89.7% 56.8% 80.0% gravity systems. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Decreased working ratio for branches with Text Value 223.3% 99.9% 120% pumping stations or treatment plants. Date 30-Nov-2004 01-Apr-2011 31-Dec-2011 Comments Exceeded end-of-project target Decreased electricity costs as % of revenue Text Value 72.6% 22.7% 40.0% collected in systems with pumping or treatment plants. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Increased percentage of water disinfected. Text Value 60.9% 92.9% 95.0% Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments The disinfection indicator is maintained at a good level from the start of the Project. The re-assessed value will be reported in the next ISR. Decreased total staff per 1000 individual Text Value 9.45 6.0 6.80 subscribers. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project Public Disclosure Copy target Decreased total cost of regular and contracted Text Value 70.2% 45.2% 60.0% staff as % of collected revenues. Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Comments Exceeded end-of-project target Decreased electricity consumption in KWH/m3 Text Value 0.43 KWH/m3 0.23 KWH/m3 0.30 KWH/m3 (efficiency). Date 30-Nov-2004 30-Sep-2011 31-Dec-2011 Page 5 of 7 The World Bank Report No: ISR5514 Comments Exceeded end-of-project target Improved community water points constructed Number Value 0.00 258780.00 259505.00 Public Disclosure Copy or rehabilitated under the project Date 03-Jan-2005 30-Sep-2011 31-Dec-2011 Comments connections connections connections Piped household water connections that are Number Value 0.00 99938.00 99938.00 benefiting from rehabilitation works undertaken by the project Date 03-Jan-2005 30-Sep-2011 31-Dec-2011 Comments connections connections connections Number of water utilities that the project is Number Value 0.00 1.00 1.00 supporting Date 03-Jan-2005 30-Sep-2011 31-Dec-2011 Comments AWSC AWSC AWSC Number of people in rural areas provided with Number Value 0.00 34748.00 34748.00 access to Improved Water Sources under the project Date 03-Jan-2005 30-Sep-2011 31-Dec-2011 Comments inhabitant inhabitants inhabitants Number of people in urban areas provided with Number Value 0.00 280000.00 285055.00 access to Improved Water Sources under the project Date 03-Jan-2005 30-Sep-2011 31-Dec-2011 Comments inhabitant inhabitants inhabitants Data on Financial Performance (as of 07-Dec-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P063398 IDA-38930 Effective 04-May-2004 14-Jun-2004 11-Nov-2004 31-Dec-2011 P063398 IDA-45140 Effective 30-Oct-2008 24-Nov-2008 20-Apr-2009 31-Dec-2011 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P063398 IDA-38930 Effective XDR 15.40 15.40 0.00 15.37 0.03 100.00 P063398 IDA-45140 Effective XDR 12.80 12.80 0.00 11.67 1.13 91.00 Disbursement Graph Page 6 of 7 The World Bank Report No: ISR5514 Public Disclosure Copy Key Decisions Regarding Implementation The Project is making a good progress. The overall implementation of the Project is assessed by the team as satisfactory. Major investments under the Project are for improvements in the water supply and wastewater collection/disposal system in Hrazdan city. All works in the city of Hrazdan are expected to be completed by December 20, 2011. The Project is scheduled to close in end-December 2011, however, in response to the Government request the team is processing an extension to the original closing date by two months and reallocating funds among the categories, to allow for an effective utilization of unallocated funds. Restructuring History Level two Approved on 27-Jan-2011 Related Projects P107614-ADDITIONAL FINANCING FOR THE MUNICIPAL WATER AND WASTEWATER PROJECT Public Disclosure Copy Page 7 of 7