The World Bank AO-Water Sector Institutional Development (P096360) REPORT NO.: RES33451 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AO-WATER SECTOR INSTITUTIONAL DEVELOPMENT APPROVED ON JULY 31, 2008 TO REPUBLIC OF ANGOLA WATER AFRICA Regional Vice President: Makhtar Diop Country Director: Elisabeth Huybens Senior Global Practice Director: Guang Zhe Chen Practice Manager/Manager: Maria Angelica Sotomayor Araujo Task Team Leader: Camilo Lombana Cordoba The World Bank AO-Water Sector Institutional Development (P096360) I. BASIC DATA Product Information Project ID Financing Instrument P096360 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 31-Jul-2008 30-Jun-2019 Organizations Borrower Responsible Agency Republic of Angola Ministry of Energy and Water Project Development Objective (PDO) Original PDO The project development objective is to strengthen the institutional capacity and efficiency of agencies in the water sector toimprove access and reliability of water service delivery. Current PDO The project development objective is to strengthen the institutional capacity and efficiency of the Recipient's agencies in the water sector to improve access to water service delivery. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-49700 30-Jun-2011 31-Oct-2012 08-Jan-2013 30-Jun-2019 120.00 102.22 1.85 IDA-45010 31-Jul-2008 25-Feb-2010 30-Aug-2010 30-Jun-2019 57.00 33.34 17.34 The World Bank AO-Water Sector Institutional Development (P096360) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The project is advancing satisfactorily towards the achievement of the Project Development Objectives. Implementation of the project is ongoing as described below: Component 1: Institutional Development: In total 16 utilities (Provincial Water and Sanitation Utilities [PWSUs]) have been authorized to be created, of which seven are being supported under the project through infrastructure investments and five through management contracts. Six supported PWSUs can be considered operational at this time—i.e., administrative boards have been put in place and management technical assistance has begun. The Institute of Water and Electricity Regulation (Instituto Regulador dos Serviços de Electricidade e Água e Saneamento de Aguas Residuais [IRSEA]) was formally created in 2016 through the addition of a water office into the institute of electricity regulation. Component 2: Water Resource Management: The National Institute of Water Resources (Instituto Nacional de Recursos Hidricos [INRH]) has been created and is operational. Sixty hydrometric stations have been re-built or rehabilitated; thirty of which have been financed under the project. Component 3: Rehabilitation of Water Supply Systems: All civil works supported through the project are under contract. Approximately 926 kilometers of networks in seven provincial cities have been installed, as well as 84,000 metered household connections. Component 4: Capacity Building and Change Management: This component supports the National Directorate of Water (Direcção Nacional de Águas [DNA]) in the implementation of WSIDP I as well as of other investment projects in the sector. Through the support from WSIDP I and other financiers, the Financial and Contract Management Unit (FCMU) has shown increasing capacity to manage large sector investments. Due to the declining value of SDR relative to USD, and ongoing Government of Angola (GoA) financial constraints linked to the decline in global oil prices, the GoA has requested this restructuring to reallocate funds across disbursement categories. The reallocation will allow for disbursements to continue more smoothly without potential delays due to GoA payments, as part of the existing pari-passu arrangements. III. DETAILED CHANGES The World Bank AO-Water Sector Institutional Development (P096360) REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-45010- Civil Works 19,800,000.00 14,361,728.91 25,433,528.35 50.00 100 001 Currency: Goods and XDR 2,900,000.00 1,067,453.09 1,567,410.37 50.00 100 Operating Costs Cons Serv, TRG Part A.2 & D.3 - 1,000,000.00 0.00 0.00 50.00 100 Prj Cons Serv, TRG Part A.3 & B.1 - 800,000.00 0.00 0.00 50.00 50.00 Prj CS TR Pt A.1,B.2,C.2,D.1(a 6,700,000.00 6,629,933.44 7,500,000.00 50.00 50.00 ),D.2,D.4 Performance 300,000.00 0.00 0.00 50.00 50.00 Payments PPF 500,000.00 499,061.28 499,061.28 REFINANCING UNALLOCATED 0.00 0.00 0.00 Non Consulting 3,000,000.00 0.00 0.00 50.00 50.00 Services Total 35,000,000.00 22,558,176.72 35,000,000.00