The World Bank Report No: ISR15060 Implementation Status & Results West Bank and Gaza Northern Gaza Emergency Sewage Treatment (NGEST) Project (P074595) Public Disclosure Copy Operation Name: Northern Gaza Emergency Sewage Treatment (NGEST) Project Stage: Implementation Seq.No: 21 Status: ARCHIVED Archive Date: 09-Jun-2014 Project (P074595) Country: West Bank and Gaza Approval FY: 2005 Product Line: Special Financing Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Key Dates Board Approval Date 07-Sep-2004 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date Last Archived ISR Date 09-Dec-2013 Effectiveness Date 17-Nov-2004 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project objectives are to: (i) mitigate the immediate gathering health and environmental safety threats to the communities surrounding the effluent lake at BLWTP; and (ii) Provide a satisfactory long-term solution to the treatment of wastewater for the Northern Government in Gaza. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost EFFLUENT TRANSFER 21.46 TECHNICAL ASSISTANCE TO EFFLUENT TRANSFER COMPONENT 3.37 CONSTRUCTION OF TREATMENT PLANT 45.98 TECHNICAL ASSISTANCE TO CONSTRUCTION OF TREATMENT PLANT 3.71 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Implementation Status Overview Part A of the Northern Gaza Emergency Sewage Treatment Project (NGEST) was completed in 2011 and the immediate objective to mitigate the health and environmental safety threats to communities surrounding the effluent lake at Beit Lahiya has been largely achieved. The lake is drained and most effluent from the old treatment plant is being pumped to new infiltration ponds at the site for Part B. The key issue now is timely implementation of Part B (construction of the North Gaza wastewater treatment plant, wastewater recovery Page 1 of 6 The World Bank Report No: ISR15060 scheme, and remedial activities at the former Beit Lahiya effluent ponds). Maintaining close coordination with the Israeli Defense Force's (IDF's) Coordinator of Govt. Activities in the Territories (COGAT), along with our donor partners, is critical for ensuring predictable and timely delivery of goods, materials, and consultants across the Israeli border in order to avoid the serious delays and cost overruns that plagued implementation of Public Disclosure Copy Part A. An IDF-required work stoppage on very short notice for more than a week shortly after the contract commenced is a case in point. Currently, coordination through COGAT is moderately satisfactory. Constraints to entry of goods for the project continue to significantly impede implementation. However, lately after more than two years of delay they allowed the entry of the wheel loader and anti-freeze chemical to the site, which are both needed during the operation phase of the plant.. There is a critical need for a reliable supply of electricity (3 mega watt) for the treatment plant. The Gaza Electricity Supply Company is unable to provide needed power for the plant due to chronic and increasing fuel shortages, increasing overall demand in Gaza, and deteriorated power infrastructure. Negotiations have been underway with Israel for two years to secure a dedicated supply of electricity for the treatment plant and nor results yet. A feasibility study on using renewable energy sources (solar) to generate the 3 MW is under implementation by the energy team and in cooperation with the water team. The work progress was exceptionally slow and at times static during the last five months for several reasons. The principal reason was the frequent and unannounced departure from site of the international contractor staff and result was because the international contractor had "opened file at court for possible insolvency on February 19, 2014. Works effectively stopped for the last two months, since all remaining works are electro/mechanical, which are managed by international contractor. As per the activities evaluated financially up to this report the overall progress is 96.27% against planned 100%. Civil works are at 99% while the mechanical and electrical works have stopped at 98.44% and 77.14%, respectively. Despite the apparent progress financially, the physical works remaining to be done are extensive even if low value according to Tender. Additionally it should be stressed that without this relatively minor expenditure, and not inconsiderable efforts by the Contractor, the installed plant is unusable in its current form, despite claims by the Contractor as being ready for pre-commissioning. The Contractor referred six cases to the Adjudicator. (i) Ventilation system, (ii) Workshop drawings, (iii) External road handing over, (iv) Disclaim of responsibility of facilities, (v) Commencement of works delay, and (vi) Validity of Memorandum of Agreement. To date, the Adjudicator gave his decisions in favor of the Contractor for the first three cases which PWA disputed and issued notices of intention to refer to arbitration. The fourth case in overall was awarded in the favor of PWA, however, there are two very critical points were judged against PWA. The fifth and the sixth case are still to be decided. The project is at a critical stage, and PWA is anticipating huge challenges to ensure project completion, which is both very important, but also essential for future projects in Gaza. PWA has contracted a legal advisory service to provide them with legal advice on the insolvency matters and its effects on the existing contract. Due to the above mentioned obstacles, the completion date (which was intended on 10 Jan 2014 and the intended Operational Acceptance date was April 10, 2014) may be delayed for a year or so. A detailed design study for effluent recovery and reuse, which will provide long-term protection for the underlying aquifer as well as irrigation water for about 1500 hectares of agricultural land, has been completed. The total cost for fully implementing the schemes is estimated at $30 million. The first phase of the reuse scheme is estimated at $12 million which is expected to prevent long-term impacts on aquifer water quality. Currently $7.1 million is available for the first phase, leaving a financing gap of about US$4.9 million. A third Public Disclosure Copy additional financing grant of US$10.5 million has been approved. The Bank provided an additional financing of US$3 million and Belgium through a trust fund provided 2 million Euros to cover a part of this gap and US$ 5.00 million the Partnership for Infrastructure Development Multi-donor Trust Fund. The project will need to be extended for an additional four years to allow for support for operations and maintenance capacity building, which is part of the third additional financing. An updated Environmental and Social Impact Assessment and RAP studies have been prepared for the recovery and reuse component. Locations Country First Administrative Division Location Planned Actual WEST BANK& GAZA Not Entered Jabalya Page 2 of 6 The World Bank Report No: ISR15060 Country First Administrative Division Location Planned Actual WEST BANK& GAZA Not Entered Bayt La'iya Public Disclosure Copy WEST BANK& GAZA Not Entered Bayt Hanun WEST BANK& GAZA Not Entered Umm an Nasr WEST BANK& GAZA Not Entered North Gaza WEST BANK& GAZA Not Entered Beit Lahiya sewage treatment plant Not Entered Not Entered Beit Lahiya sewage treatment plant ✔ WEST BANK& GAZA Not Entered Al Jadīdah ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Effluent lake is drained and no longer a threat Text Value Effluent lake is full and is an Achieved in December, 2010. The construction of the to the surrounding communities at Beit-Lahia environmental and health infiltration basins and effluent WWTP threat to surrounding transfer scheme (pipes and communities. pumping station) is completed. Date 29-Oct-2004 23-May-2014 06-Nov-2008 Comments remedial work on dried ponds need to be done. Increase in quantities of wastewater treated Text Value 12000 cubic meters per day treatment/infiltration being 35000 cubic meters per day and properly disposed of sewage are poorly treated. maintained at 9,000 wastewater treated properly. Date 29-Oct-2004 23-May-2014 31-Dec-2013 Comments Ponds will need some rehabilitation to regain Public Disclosure Copy infiltration efficiency following completion of WWTP. Intermediate Results Indicators Page 3 of 6 The World Bank Report No: ISR15060 Indicator Name Core Unit of Measure Baseline Current End Target EIA, EMP and remedial works studies are Text Value No Study was in place Suppplementary ESIA and Remedial works study completed and recommendations adequately EMP approved by the Bank finalized, EIA and EMP Public Disclosure Copy implemented implementation in progress. Date 29-Oct-2004 23-May-2014 31-Oct-2009 Comments Original ESIA and EMP completed 3/30/2006. Sufficient funds available to implement 2nd phase works. Effluent Transfer facilities : Terminal Pumping Text Value No facility Effluent transfer facilities are Construction of Part A - station, Pressure pipe and Infiltration basins completed and functioning effluent transfer faciliteis are completed and operational (Termeinal pumping station, pressure pipeline and Nine infiltration basins) are completed and operational. Date 29-Oct-2004 23-May-2014 12-Nov-2008 Comments indicator achieved in late 2010. North Gaza WWTP with a capacity of 35,000 Text Value No facility Construction is nearing Construction of North Gaza cubic meters per days is constructed and completion with Wastewater treatment plant is operational completed and operational. Date 29-Oct-2004 23-May-2014 31-Dec-2013 Comments Based on contractor's original work plan, construction is about 20% behind schedule due to security issues and some limited redesign requirements. Dute to insolvency case of the contractor and some disputes between the PWA and the contractor the completion may Public Disclosure Copy bedelayed to another year or so. Risk Managemnet Facilities is constructed and Text Value No facility Construction of Risk operational management facilities is completed and operational. Date 29-Oct-2004 04-Nov-2013 31-Dec-2013 Comments Volume(mass) of BOD pollution load removed Tones/year Value 1000.00 4000.00 7000.00 by treatment plant under the project Date 29-Oct-2004 04-Nov-2013 30-Jun-2014 Page 4 of 6 The World Bank Report No: ISR15060 Comments The original (existing)WWTP About 6,800 cubic meters of New wastewater treatment is designed to treat 5,000 partially treated wastewater is plant will be treating 35,000 cubic meters of wastewater being infiltrated in new cubic meters of wastewater daily. This corresponds to a infiltration ponds. daily to BOD level of 20 mg/l Public Disclosure Copy population of about81,000 or less. The projected people. At the time the population served is 550,000. project began, the connected population was about 226,000 people (85% of the service area population) Data on Financial Performance (as of 15-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P074595 TF-54208 Effective 27-Oct-2004 27-Oct-2004 17-Nov-2004 30-Jun-2010 30-Jun-2014 P074595 TF-56186 Closed 18-Jan-2006 18-Jan-2006 18-Jan-2006 31-Dec-2009 31-Dec-2013 P074595 TF-57109 Effective 02-Oct-2006 02-Oct-2006 02-Oct-2006 31-Dec-2013 31-Dec-2014 P074595 TF-57595 Closed 07-Dec-2006 07-Dec-2006 07-Dec-2006 31-Dec-2009 07-Apr-2014 P074595 TF-92196 Effective 30-Jun-2008 30-Jun-2008 30-Jun-2008 30-Jun-2012 30-Jun-2014 P074595 TF-97081 Effective 25-Oct-2010 25-Oct-2010 10-Nov-2010 30-Jun-2013 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P074595 TF-54208 Effective USD 7.80 7.80 0.00 7.80 0.00 100.00 P074595 TF-56186 Closed USD 6.85 6.85 0.00 6.42 0.00 94.00 P074595 TF-57109 Effective USD 5.35 5.35 0.00 5.17 0.00 97.00 P074595 TF-57595 Closed USD 8.09 8.09 0.00 6.36 1.49 79.00 P074595 TF-92196 Effective USD 12.00 12.00 0.00 4.37 7.63 36.00 P074595 TF-97081 Effective USD 7.00 7.00 0.00 5.63 1.37 80.00 Public Disclosure Copy Disbursement Graph Page 5 of 6 The World Bank Report No: ISR15060 Public Disclosure Copy Key Decisions Regarding Implementation The Government of Belgium has signed Administrative Agreement with the World bank of two million Euros in additional financing for the NGEST Project, in addition to their previous contribution of four million Euros. Restructuring History Level two Approved on 29-Jun-2012, Level 2 RVP Decision on 24-Dec-2013 Related Projects P091314-GZ-NORTH GAZA SEWERAGE TREATMENT PLANT ADDITIONAL FINANCING, P117446-GZ-North Gaza Emergency Sewage Treatment Project Additional Financing 2, P146037-North Gaza Emergency Sewage Treatment (NGEST) Project - Belgian Additional Financing, P146065-North Gaza Emergency Sewage Treatment Project - Third Additional Financing Public Disclosure Copy Page 6 of 6