The World Bank Report No: ISR12283 Implementation Status & Results Ukraine Urban Infrastructure Project (P095337) Public Disclosure Copy Operation Name: Urban Infrastructure Project (P095337) Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 24-Nov-2013 Country: Ukraine Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 28-Aug-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 01-Jun-2011 Last Archived ISR Date 26-Apr-2013 Effectiveness Date 10-Nov-2008 Revised Closing Date 30-Sep-2014 Actual Mid Term Review Date 31-May-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The revised Project objective is to improve the quality of water and wastewater services and increase energy efficiency of select water and sanitation utilities. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost INSTITUTIONAL CAPACITY 1.15 REHABILITATION INVESTMENTS 61.53 ENERGY EFFICIENCY 76.47 PROJECT MANAGEMENT 2.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview Almost five years after effectiveness the project continues making implementation progress, with disbursements reaching over US$ 93 million (67% of the total loan amount). Total commitments to date represent around 97% of the loan amount. Forty-nine out of 85 major contracts have been completed for US$ 45.1 million. All planned procurement processes have been initiated, with the exception of one contract in Odessa (for Pumping Station 8). Out of 14 participating cities, five completed implementation of planned subprojects and exceeded the target of 15% energy efficiency gain: Cherkassy - 30%, Drogobych - 25%, Kamyanets-Podilskyi - 21%, Kolomya - 35%, and Nova Kakhovka -20%. Some continue to Page 1 of 6 The World Bank Report No: ISR12283 have minor procurement packages under accumulated savings, as agreed with the Bank. Four cities – Kharkiv, Boryspil, Chernihiv and Slovyansk are moving towards completion of all works by December, 2013. Implementation of ongoing contracts requires additional time in five cities - Ivano-Frankivsk, Kalush, Kremenchuk, Novograd-Volynskii and Odessa. Therefore government requested Public Disclosure Copy extension of the project closing date till September 2014 to ensure completion of all subprojects, full disbursement of the loan, and achievement of project objectives. The detailed project implementation plan till the proposed closing date has been developed by the counterpart and agreed with the Bank. Closing date was extended by nine (9) months till September 30, 2014 (approved by CD on October 17, 2013). There is steady progress under the Sida UIP Grant. The disbursement level is still low, but two major assignments started recently and disbursement is expected to pick up quickly. Under the Bank executed component, the Water Sector note has been completed, the Solid Waste Management Study and the Poverty and Social Impact Analysis Study in District Heating are underway and are expected to be completed by December 2013. Under the recipient executed component of the Grant the assignment for feasibility studies related to investments proposed under the Urban Infrastructure Project 2 is underway (US $ 0.8 million), with a planned completion date in December 2013. Selection of the Corporate and Capacity Development consulting assignment (US$ 1.3 million) was signed on October 2, 2013 and implementation requires eight months. Per government's request Grant closing date was extended till June 20, 2014 to ensure completion of ongoing assignments, full disbursement of the Grant, and achievement of its development objectives (extension was approved by the CD on October 17, 2013). Fiduciary and safeguard arrangements for the UIP and the Grant are satisfactory to the Bank. There are no outstanding audits. Locations Country First Administrative Division Location Planned Actual Ukraine Not Entered Ukraine Ukraine Donets'ka Oblast' Sloviansk ✔ ✔ Ukraine Not Entered Odessa Not Entered Not Entered Odessa ✔ ✔ Not Entered Not Entered Odessa ✔ ✔ Not Entered Not Entered Odessa ✔ ✔ Ukraine Zhytomyrs'ka Oblast' Novohrad-Volyns'kyy ✔ ✔ Public Disclosure Copy Ukraine Kherson Nova Kakhovka ✔ ✔ Ukraine Poltava Kremenchuk ✔ ✔ Ukraine Ivano-Frankivs'ka Oblast' Kolomyya ✔ ✔ Ukraine Kharkivs'ka Oblast' Kharkiv ✔ ✔ Ukraine Khmel'nyts'ka Oblast' Kamieniec Podolski ✔ ✔ Ukraine Ivano-Frankivs'ka Oblast' Kalush ✔ ✔ Page 2 of 6 The World Bank Report No: ISR12283 Country First Administrative Division Location Planned Actual Ukraine Not Entered Ivano-Frankivs'k Public Disclosure Copy Not Entered Not Entered Ivano-Frankivs'k ✔ ✔ Not Entered Not Entered Ivano-Frankivs'k ✔ ✔ Not Entered Not Entered Ivano-Frankivs'k ✔ ✔ Ukraine L'vivs'ka Oblast' Drogobych ✔ ✔ Ukraine Not Entered Donets'k Not Entered Not Entered Donets'k ✔ Ukraine Not Entered Chernihiv Not Entered Not Entered Chernihiv ✔ ✔ Not Entered Not Entered Chernihiv ✔ ✔ Not Entered Not Entered Chernihiv ✔ ✔ Ukraine Cherkas'ka Oblast' Cherkasy ✔ ✔ Ukraine Kiev Boryspil' ✔ ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduced discharge of untreated wastewater Cubic Meter(m3) Value 137.00 137.00 0.00 during dry weather conditions - Odessa Date 01-Jan-2008 11-Oct-2013 31-Dec-2013 (Arkadia) Comments Newly introduced indicator. Public Disclosure Copy Works in Progress. The current value is same as basleline. Not yet due. Improved energy efficiency of water and Percentage Value 0.00 22.00 15.00 sewerage pumping systems Date 01-Jan-2008 11-Oct-2013 31-Dec-2012 Comments Target value is % reduction in Five subprojects completed Every utility shall achieve at energy use from current level and exceeding the target of least 15% energy energy use (measured in kWh per m3 15% energy efficiency from current level (measured pumped). Baseline is gain: Cherkassy - 30%, in kWh per m3 pumped) available for every utility but Drogobych - 25%, Page 3 of 6 The World Bank Report No: ISR12283 can not be reported in this Kamyanets-Podilskyi - format. 21%, Kolomya - 35%, and Nova Kakhovka -20%. Public Disclosure Copy Improved bacteriological quality of treated Percentage Value 24.00 5.00 drinking water- Ivano-Frankivsk Date 01-Jan-2008 11-Oct-2013 31-Dec-2012 Comments Percentage of Noncomplying Works are in Progress. Not water samples yet due. Reduction of pollution loads discharged to the Percentage Value 35.00 12.00 5.00 environment from WWTP - Ivano-Frankivsk Date 01-Jan-2008 11-Oct-2013 31-Dec-2013 Comments Works are in progress. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of utilities which completed business Number Value 0.00 2.00 3.00 plans and update annually performance targets Date 01-Jan-2008 11-Oct-2013 31-Dec-2012 Comments Number of Utilities Ivano-Frankivsk and Chernihiv submitted updated business plans in September 2013. Number of km of water and sewerage pipelines Kilometers Value 0.00 laid/replaced Date 01-Jan-2008 11-Oct-2013 31-Dec-2013 Comments 0 km replaced pipeline in 3,6 3,5 each of the cities: 5,2 5,0 Borispyl 4,8 4,8 Chernihiv 5,8 6,6 Drohobych 7,0 4,7 Kamyanets-Podylskiy 0,64 0,6 Kolomiya 2,05 5,7 Nova-Kakhovka 8,5 11,0 Public Disclosure Copy Novorhad-Volynskyy Very good progress. Number Slovyansk of utilities already achieved target values. Will be updated in January 2014 Water losses reduction in city water distribution Percentage Value 0.00 3.00 3.00 network - Chernihiv Date 01-Jan-2008 11-Oct-2013 31-Dec-2013 Comments Work in Progress but target already achieved. Page 4 of 6 The World Bank Report No: ISR12283 Number of pumping/booster stations Number Value 0.00 rehabilitated Date 01-Jan-2008 11-Oct-2013 31-Dec-2013 Comments 0 rehabilitated stations in Will be updated in January 30 Public Disclosure Copy each of the cities: 2014 12 Borispyl 12 Cherkassy 28 Chernihiv 25 Drohobych 31 Kalush 25 Kamyanets-Podylskiy 10 Kharkiv 32 Kolomiya 30 Kremenchuk 21 Nova-Kakhovka 28 Novorhad-Volynskyy Slov y ansk Number of utilities which completed energy Number Value 0.00 2.00 12.00 efficiency investment subprojects Date 01-Feb-2008 11-Oct-2013 31-Dec-2013 Comments Five cities completed subprojects and exceeded expected results. At least three more cities are expected to complete subprojects by end of 2013. Number of blockages in sewers eliminated per Number Value 0.00 2.00 2.00 month in Odessa Date 01-Jan-2008 11-Oct-2013 31-Dec-2013 Comments Works in progress but target achieved already. Data on Financial Performance (as of 18-Oct-2013) Public Disclosure Copy Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P095337 IBRD-48690 Effective 28-Aug-2007 26-May-2008 10-Nov-2008 31-Dec-2012 30-Sep-2014 P095337 TF-91769 Effective 22-Oct-2008 22-Oct-2008 22-Oct-2008 30-Jun-2012 20-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095337 IBRD-48690 Effective USD 140.00 140.00 0.00 93.46 46.54 67.00 Page 5 of 6 The World Bank Report No: ISR12283 P095337 TF-91769 Effective USD 5.46 5.46 0.00 1.25 4.30 23.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation It is critical to continue intensive monitoring and regular implementation support for investment sub-projects in all participating cities to avoid delays in project implementation and full compliance with the agreed milestones, as provided in the detailed Project Implementation Plan. Special attention will be given to progress monitoring in five cities with relatively slow implementation progress, with particular focus on Odessa, which is the largest and technically most complex subproject. Timely commencement of activities on the Pumping Station 8 (PS8) in Odessa is critical. In April 2013, UIP sub-borrower utilities and cities commenced loan repayment according to schedule. However, as tariff levels have not been adjusted sub-borrowers are already facing difficulties with repayment and some have accumulated arrears. Adjusting tariff levels, reducing operational cost, and setting up appropriate financing mechanisms for capital investments are critical to the sustainability of these investments and more generally of the sector. The Bank team is engaged in an active dialogue with the government on this Public Disclosure Copy important issue. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 6 of 6