The World Bank Implementation Status & Results Report Second Ho Chi Minh City Environmental Sanitation Project (P127978) Second Ho Chi Minh City Environmental Sanitation Project (P127978) EAST ASIA AND PACIFIC | Vietnam | Water Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 11 | ARCHIVED on 07-Mar-2020 | ISR40683 | Implementing Agencies: Socialist Republic of Vietnam, URBAN INFRASTRUCTURE CONSTRUCTION INVESTMENT PROJECTS MANAGEMENT UNIT Key Dates Key Project Dates Bank Approval Date: 23-Dec-2014 Effectiveness Date: 10-Jul-2015 Planned Mid Term Review Date: 14-Jun-2019 Actual Mid-Term Review Date: 17-May-2019 Original Closing Date: 30-Jun-2021 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve wastewater services in a sustainable manner in selected areas of Ho Chi Minh City (HCMC) and increase awareness on sanitation. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Interceptor (Base Cost):(Cost $63.00 M) Component 2: Wastewater Treatment Plant (Base Cost):(Cost $220.00 M) Component 3: Sewerage in District 2 Area (Base Cost):(Cost $45.00 M) Component 4A: Construction and Supervision and Project Management (Base Cost):(Cost $29.00 M) Component 4B: Land Acquisition and Operating Cost of Investment Management Authority (Base Cost):(Cost $41.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Project implementation improved over the reporting period with several positive developments, including accelerated progress of critical infrastructure for the interceptor tunnel, secondary and tertiary sewer lines in the District 2, along with the advancement of activities for updating of the city’s drainage and wastewater masterplan. In addition, the wastewater treatment plant (WWTP) contract, to be implemented on a design, build and operate basis, became effective in January 2020 and is under implementation. As such, all originally planned activities are now ongoing - completion of which will ensure the project development objectives are achieved with project benefits directly extending to more than 1.1 million residents of Ho Chi Minh City. However due to start-up delays, intermediate results have not been realized as planned, as the infrastructure 3/7/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Second Ho Chi Minh City Environmental Sanitation Project (P127978) developments are yet to be completed and operational. Moreover, it is now clear that an extension of the project closing date will be required to ensure successful completion of the WWTP which is critical to achievement of project results, enabling a more sustainable development trajectory for the City. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and -- Substantial Substantial Sustainability Fiduciary -- Substantial Substantial Environment and Social -- High High Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve wastewater services in a sustainable manner in selected areas of Ho Chi Minh City (HCMC) IN00808588 ►Volume(mass) of BOD pollution load removed by treatment plant under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,883.00 Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 This indicator will only be met once the wastewater treatment plant supported under the project is completed and operational. Originally targeted for June 2020, a delay in the procurement of the DBO contract for the wastewater treatment plant has pushed achievement of this indicator to about June 2024 Comments: (a formal request to extend the project Closing Date to allow for construction completion of this plant has been discussed and is expected from the Borrower). IN00808590 3/7/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Second Ho Chi Minh City Environmental Sanitation Project (P127978) ►Direct project beneficiaries (number), of which female (percentage) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,125,000.00 Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 Similar comment to the main indicator above. Comments: IN00808621 Percentage female beneficiaries (%) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 31-Dec-2014 30-Apr-2019 30-Apr-2019 30-Jun-2021 IN00808622 ►Maintaining cost recovery for wastewater management in HCMC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37.00 37.00 100.00 Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 A proposal to adopt an increased tariff schedule and related tariff implementation roadmap for wastewater and drainage services using the cost recovery approach set forth in Decree 80 (2014) had been submitted to the City’s People’s Committee. Following several rounds of internal comments by all relevant HCMC line agencies and completion of the poverty and social impact assessment, the updated report and proposals are now in the final stages of review and public consultations. The improvement in cost recovery ratio for wastewater management is expected to be seen after an increased tariff schedule Comments: commence implementation (around January 2021). The MTR report recommended adjustments to this indicator to clarify that this indicator will measure cost recovery from consumer tariff i.e., excluding any subsidy or budget support from HCMC, to better measure improving trend in financial sustainability. After adjustments, the end target is likely to be about 50% (also taking into account that the project only covers a portion of the total wastewater management area of the Steering Committee for Flood Control (SCFC). Increase awareness on sanitation IN00808589 ►Percentage of respondents demonstrating an increase in awareness on sanitation issues (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.50 98.50 50.00 Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 The baseline survey conducted by the IEC consultant in the areas covered by the project asked a series of questions related to sanitation. Findings indicate that that most people are aware of sanitation issues. In particular, almost all are cognizant of the benefits of sewer connections, citing reasons related Comments: to reducing pollution of groundwater/water sources and to water bodies, roads and nearby areas, as well as reducing odor. This indicator appears to be very broad. Intermediate Results Indicators by Components 3/7/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Second Ho Chi Minh City Environmental Sanitation Project (P127978) Component 1: Interceptor IN00808623 ►Length of interceptor installed (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.17 3.60 8.00 Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 The interceptor design originally had a total of 21 shafts locations (S0 to S20). But shaft 17 was removed, due to land acquisition and site access issues. Total progress under this contract is around 56% with pipe jacking between S0-S10 now largely complete along with the construction of 13 shafts. Works are on- Comments: going for the second section, including shaft construction and preparation for the complex river crossing between S10 and S11. Component 2: Wastewater Treatment Plant IN00808624 ►DBO Contractor activities in place (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 The WWTP DBO contract was signed in March 2019 and became effective January 3, 2020. The contractor has commenced initial contract activities, including design submittals and site preparatory Comments: works. Component 3: Sewerage in District 2 Area IN00808625 ►District 2 sewers operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 Construction works for all project supported District 2 sewer lines are ongoing, under five civil works Comments: contracts with cumulative physical progress greater than 50%. IN00808627 ►New household sewer connections constructed under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7,153.00 3/7/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Second Ho Chi Minh City Environmental Sanitation Project (P127978) Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 Surveys of households in the District 2 areas covered by the project has been done. Household connections will only be made in tandem with the completion of the associated secondary and tertiary sewer lines, currently under construction. Comments: The MTR recommended that the description of this indicator be adjusted to include households served by the sewer lines directly or indirectly. The sewer lines are designed to include interceptors that will serve to collect wastewater and thus indirectly serve households not directly connected to houses. IN00808628 ►Number of poor people in the D2 area connected to the sewerage network (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,318.00 Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 The MTR recommended that the description of this indicator be revised to clarify that it includes poor Comments: people served directly and indirectly by the sewer lines. Component 4A: Construction and Supervision and Project Management IN00808626 ►Survey and IEC activities conducted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2014 30-Apr-2019 26-Feb-2020 30-Jun-2021 Baseline survey has been completed. Several IEC activities (including posters, videos, IEC promoters' manual) have been completed. A motivators' training workshops have been conducted along with house- Comments: to-house communications which are expected to be further rolled out in tandem with the sewer lines construction work. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127978 IBRD-84600 Effective USD 250.00 250.00 0.00 39.18 210.82 16% P127978 IDA-55680 Effective USD 200.00 200.00 0.00 61.24 126.02 33% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 3/7/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Second Ho Chi Minh City Environmental Sanitation Project (P127978) P127978 IBRD-84600 Effective 23-Dec-2014 12-Mar-2015 10-Jul-2015 30-Jun-2021 30-Jun-2021 P127978 IDA-55680 Effective 23-Dec-2014 12-Mar-2015 10-Jul-2015 30-Jun-2021 30-Jun-2021 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/7/2020 Page 6 of 6