The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) AFRICA EAST | Kenya | Water Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 12 | ARCHIVED on 26-Nov-2020 | ISR44252 | Implementing Agencies: Water Services Trust Fund, Republic of Kenya Key Dates Key Project Dates Bank Approval Date: 13-Nov-2014 Effectiveness Date: 03-Dec-2014 Planned Mid Term Review Date: 31-Mar-2017 Actual Mid-Term Review Date: 02-Mar-2017 Original Closing Date: 30-Jun-2018 Revised Closing Date: 30-Nov-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to increase the number of people in low income areas with access to improved water supply and sanitation services in Kenyan towns and cities. This objective will be realized by incentivizing urban Water Services Providers to invest in water supply and sanitation improvement subprojects to benefit households in low income areas by applying one-off Output-Based Aid subsidies to make water and sanitation access affordable. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Implementation Support for project management, subproject preparation and supervision, and to contract an independent verification agent:(Cost $2.55 M) Output-Based Aid subsidies for water and sanitation subprojects:(Cost $8.56 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions A. Background. The Kenya Water and Sanitation OBA Fund for Low-Income Areas incentivizes Kenyan water service providers (WSPs) to extend water and sanitation services to low-income areas using a blended financing model of commercial loans from domestic lenders on market terms and results-based grants from the World Bank. WSPs also receive technical assistance to support sub-project preparation and implementation, including development of bankable proposals to secure commercial loans. B. Status. Under Component 1, the project has helped nine WSPs to prepare bankable proposals for financing, providing US$2.5 million for technical assistance (TA) and project management activities, including the hiring of an independent verification agent. Under Component 2, eight WSPs signed loan agreements with three commercial banks to finance nine sub-projects, and US$14.3 million of commercial loans were utilized by 11/26/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) the WSPs to implement the subprojects. The project is an important example of maximizing finance for development in the water sector. It has helped improve the enabling environment for private finance by blending output-based subsidies with commercial loan finance from domestic lenders, assisting the Government of Kenya in achieving its Vision 2030 goals. The project has completed works across all subprojects and achieved total connections of 23,238 household water and sanitation connections and 40 public water connections. These represent 104 percent and 100 percent of end of project targets, respectively. These cumulative connections are providing 124,763 people with access to clean water and sanitation (104 percent of end of project target). The project is expected to reimburse the WSPs results-based grants of US$8.6 million based on outputs achieved. The implementing agencies were quick to respond to the COVID-19 crisis, putting in place enhanced health and safety measures including through the provision of appropriate personal protection equipment for workers and installation of handwashing stations on all subproject sites. Verification protocols were adopted to the COVID situation through the use of remote verification techniques, relying on project engineer site reports and contacting beneficiaries by telephone. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Substantial Moderate Environment and Social -- Substantial Moderate Stakeholders -- Substantial Substantial Other -- High Moderate Overall -- Substantial Moderate Results PDO Indicators by Objectives / Outcomes Number of people in urban areas provided with access to Improved Water Sources under the project IN00916960 ►People provided with access to improved water sources (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 54,573.00 84,408.00 81,000.00 11/26/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Date 05-Sep-2014 02-Apr-2020 13-Nov-2020 30-Nov-2020 IN00916966 People provided with access to improved water sources - Female (RMS requirement) (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 27,287.00 42,204.00 40,500.00 IN00916969 People provided with access to improved water sources - urban (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 54,573.00 84,408.00 81,000.00 Number of people in urban areas provided with access to Improved Sanitation under the project IN00916967 ►People provided with access to improved sanitation services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 40,355.00 39,500.00 Date 05-Sep-2014 07-Dec-2018 13-Nov-2020 30-Nov-2020 IN00916970 People provided with access to improved sanitation services - Female (RMS requirement) (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20,178.00 19,750.00 IN00916972 People provided with access to improved sanitation services - urban (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 40,355.00 39,500.00 Overall Comments PDO The project ended up surpassing its revised targets (revised due to dropped subprojects for which funds were cancelled). In total, the project achieved 23,238 household water / and or sewer connections and 40 public water connections (104 percent and 100 percent of end of project targets, respectively). These are providing 124,763 people with access to clean water and sanitation (104 percent of end of project target). Intermediate Results Indicators by Components Output-Based Aid subsidies for water and sanitation subprojects IN00916973 ►New household sewer connections constructed under the project (Number, Custom) 11/26/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 8,071.00 7,906.00 Date 15-Jul-2013 07-Dec-2018 13-Nov-2020 30-Nov-2020 IN00916975 ►New piped household water connections that are resulting from the project intervention (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9,200.00 15,167.00 14,500.00 Date 15-May-2014 02-Apr-2020 13-Nov-2020 30-Nov-2020 IN00916977 ►Improved community water points constructed or rehabilitated under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 40.00 40.00 Date 15-May-2014 07-Dec-2018 07-Dec-2018 30-Nov-2020 Implementation Support for project management, subproject preparation and supervision, and to contract an independent verification agent IN00916974 ►Number of water utilities that the project is supporting (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 8.00 Date 15-Jul-2013 07-Dec-2018 07-Dec-2018 31-May-2020 IN00916976 ►Local private capital mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.50 12.50 12.50 Date 15-Jul-2013 02-May-2019 02-May-2019 31-May-2020 IN00916978 ►Number of utilities accessing commercial loans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 9.00 Date 15-Jul-2013 02-Apr-2020 02-Apr-2020 31-May-2020 Performance-Based Conditions 11/26/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P132979 TF-16395 Effective USD 11.84 11.11 0.73 8.39 2.71 76% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132979 TF-16395 Effective 05-Sep-2014 05-Sep-2014 03-Dec-2014 30-Jun-2018 30-Nov-2020 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 11/26/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Restructuring History Level 2 Approved on 16-Feb-2018 ,Level 2 Approved on 29-Oct-2019 ,Level 2 Approved on 19-May-2020 Related Project(s) There are no related projects. 11/26/2020 Page 6 of 6