The World Bank Public Disclosure Copy Overview and Performance Operation Name:: MX Oaxaca WSS Sector Modernization (P145578) Project Stage:: Implementation Seq No. 1 Status: ARCHIVED Team Leader: Charles Delfieux Requesting Unit: LCC1C Created by: Blanca Lopez-Alascio Granero on 14-Aug-2014 Product Line: IBRD/IDA Responsible Unit: GWADR Modified by: Blanca Lopez-Alascio Granero on 25-Aug-2014 Country: Mexico Approval FY: 2014 Region: LATIN AMERICA AND Lending Instrument: Program-for-Results CARIBBEAN Program Development Objectives Program Development Objective (from Program-for-Results Appraisal Document) The Program Development Objective is to support the improvement of the institutional framework of the water supply and sanitation sector of the State of Oaxaca, and to improve the quality and sustainability of water supply service in selected urban areas. Summary Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Overall Implementation Progress (IP) Satisfactory Overall Risk Rating High Program Status for Public Disclosure Implementation Status Overview Public Disclosure Copy This is the first ISR of the Oaxaca Water and Sanitation Sector Modernization Operation covering the period corresponding to the first three months of implementation since the Board approval of the Loan on June 6, 2014. During this period, a first supervision mission took place from June 27 to July 4, 2014, including field visits to the municipalities of the Istmo Region participating in the Program. During the period covered by the ISR, the Loan to BANOBRAS was signed on June 13, 2014 and the subsidiary agreement between Page 1 of 7 The World Bank Public Disclosure Copy BANOBRAS and the State of Oaxaca was signed on August 14, 2014. The Effectiveness of the Loan is expected to materialize within the 90- day timeframe following Board approval. Since the approval of the Loan, some progresses on implementation have been recorded: (i) activities pertaining to each of the four Results Areas of the PforR have been initiated, (ii) the Terms of Reference of the key contracts financed by the TA Component have been finalized, (iii) the preparation of the Environmental and Social Manual has been launched. Key Decisions for Disclosure - This is the first ISR of the Oaxaca Water and Sanitation Sector Modernization Operation covering the period corresponding to the first three months of implementation since the Board approval of the Loan on June 6, 2014. During this period, a first supervision mission took place from June 27 to July 4, 2014, including field visits to the municipalities of the Istmo Region participating in the Program. - The Loan to BANOBRAS was signed on June 13, 2014 and the subsidiary agreement between BANOBRAS and the State of Oaxaca was signed on August 14, 2014. The Effectiveness of the Loan is expected to materialize within the 90-day timeframe following Board approval. The team is in the process of collecting the legal opinions to proceed with the effectiveness of the Operation. - Since the Bank approval, some progresses on implementation have been recorded: (i) activities pertaining to each of the four Results Areas of the PforR have been initiated, including the revision of the TdRs for the new sector law (Result Area 1), the bidding process for the realization of the engineering and design studies underpinning the investments in SAPAO (Result Area 2), the bidding process for the preparation of the programs of actions of immediate impacts (Result Area 3), and the formal adhesion to the SIASAR system (Result Area 4); (ii) the Terms of Reference of the two key contracts financed by the TA Component have been finalized (TA to the participating utilities and Independent Verification Agent); and (iii) the preparation of the Environmental and Social Manual has been launched, as per the first agreed action under the PAP. - As expected, the implementation of the Operation requires a close support and monitoring from the Bank team. During the first year of the Public Disclosure Copy Operation, the team is expecting to carry out full supervision missions every three months. The next supervision mission is expected to occur at the end of September/ early October 2014. - In June 2014, the Bank financed through the SSKE TF, and facilitated a knowledge exchange between a delegation of Oaxaca and the State of Ceara, in Brazil. This exchange will be extended as an official of the State of Ceara will visit the State of Oaxaca during the month of September to support the implementation of a pilot to create a RWSS users committees’ association consistent with the model visited in Brazil. Financing ( as of 24-Jun-2014 ) Page 2 of 7 The World Bank Public Disclosure Copy Key Dates Effectiveness Program Loans Status Approval Date Signing Date Closing Date Date P145578 IBRD-83860 Not Effective 06-Jun-2014 13-Jun-2014 31-Dec-2019 Disbursements (in Millions) Program Loans Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P145578 IBRD-83860 Not Effective USD 55.00 55.00 0.00 0.00 55.00 0.00 DLIs Disbursement Linked Indicators (DLI) DLI Scalable Unit of Measure DLI Baseline Actual(Previous) Actual(Current) Disbursement DLI 1.1: New State Water and Yes/No Value N N Sanitation Law submitted to Congress Sub Type Date 06-Jun-2014 31-Aug-2014 Comments DLI 1.2: Regulation of State Water Yes/No Value N N and Sanitation Law prepared and Sub Type Date 06-Jun-2014 31-Aug-2014 published in the Official Gazette of the State Comments - Standard regulation for prov DLI 2.1.1: Preparation of the Yes/No Value N N Expendientes Tecnicos for the Sub Type Date 06-Jun-2014 31-Aug-2014 Public Disclosure Copy rehabilitation and/or construction of the selected sector’s macro and micro Comments distribution sy DLI 2.1.2: Construction of the Yes/No Value N N selected sector’s macro distribution Sub Type Date 06-Jun-2014 31-Aug-2014 Comments Page 3 of 7 The World Bank Public Disclosure Copy DLI 2.1.3: Percentage of active users Percentage Value 0.00 0.00 with continuous service in the Sub Type Date 06-Jun-2014 31-Aug-2014 selected sector Comments DLI 3.1: Number Value 0.00 0.00 Number of selected water utilities Sub Type Date 06-Jun-2014 31-Aug-2014 with an approved program of interventions of immediate impact Comments DLI 3.2: Number Value 0.00 0.00 Number of selected water utilities Sub Type Date 06-Jun-2014 31-Aug-2014 with improved service continuity Comments DLI 3.3: Number of selected water Number Value 0.00 0.00 utilities whose service revenue is Sub Type Date 06-Jun-2014 31-Aug-2014 greater than their operating expenses Comments DLI 4.1: Percentage Value 0.00 0.00 Percentage of localities in selected Sub Type Date 06-Jun-2014 31-Aug-2014 segment with information integrated in Rural Water and Sanitation Comments Information System Results Program Development Objectives Indicators Indicator Name Key DLI Unit of Measure Baseline Actual (Previous) Actual (Current) End Target Modernized institutional Text Value 0 0 water utilities 7 water utilities framework of the WSS decentralized, no tools decentralized, lall egal Public Disclosure Copy sector prepared or in place tools prepared, and all monitoring tools in place and being used Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 Comments Page 4 of 7 The World Bank Public Disclosure Copy People in urban areas Number Value 0.00 0.00 650000.00 provided with sustainable Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 and improved water service quality under the Comments Program Direct Program Number Value 0.00 0.00 650000.00 beneficiaries Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 Comments Of whom are female Percentage Value 0.00 0.00 52.00 Sub Type Supplemental Water utilities that the Number Value 0.00 0.00 19.00 Program is supporting Date 06-Jun-2014 31-Aug-2014 31-Dec-2014 Comments Intermediate Results Indicators 1. Modernization of the legal and regulatory framework of the WSS sector in the State Indicator Name Key DLI Unit of Measure Baseline Actual (Previous) Actual (Current) End Target New State Water and Yes/No Value No No Yes Sanitation Law submitted Date 06-Jun-2014 31-Aug-2014 31-Dec-2015 to Congress Comments Rural and Urban Strategy Yes/No Value No No Yes and Public Expenditure Date 06-Jun-2014 31-Aug-2014 31-Dec-2016 Review for the WSS Public Disclosure Copy sector successfully Comments completed 2. Improvement of water services in Oaxaca Metropolitan Area Indicator Name Key DLI Unit of Measure Baseline Actual (Previous) Actual (Current) End Target Percentage of active users Percentage Value 0.00 0.00 100.00 with continuous service in Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 the selected sector Comments Page 5 of 7 The World Bank Public Disclosure Copy Commercial efficiency in Percentage Value 49.00 49.00 90.00 the selected sector Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 Comments Percentage of samples Percentage Value 0.00 0.00 100.00 tested complying with Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 bacteriological, residual chlorine, iron, manganese, Comments color parameters of the drinking water norm in the selected sector 3. Improvement of water services in secondary towns Indicator Name Key DLI Unit of Measure Baseline Actual (Previous) Actual (Current) End Target Number of selected water Number Value 0.00 0.00 18.00 utilities with an approved Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 program of interventions of immediate impact Comments Number of selected water Number Value 0.00 0.00 18.00 utilities with improved Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 service continuity Comments Number of selected water Number Value 0.00 0.00 18.00 utilities whose service Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 revenue is greater than their operating expenses Comments 4. Improvement of WSS information in rural areas Public Disclosure Copy Indicator Name Key DLI Unit of Measure Baseline Actual (Previous) Actual (Current) End Target Percentage of localities in Percentage Value 0.00 0.00 100.00 priority segment with Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 information integrated in Rural Water and Comments Sanitation Information System Page 6 of 7 The World Bank Public Disclosure Copy Pilot approaches to Yes/No Value No No Yes providing sustainable Date 06-Jun-2014 31-Aug-2014 31-Dec-2018 rural WSS implementation and Comments support services designed Organizations Organization Name Type Contact Title Office Phone Email BANOBRAS Borrower/Recipient Ricardo Canavati Sudirector de 5255-5270-1200 ricardo. Planeacion canavati@banobras. gob.mx Ministry of Finance of Implementing Agency Francisco Madrazo Asesor 5219515016900 ozardam76@hotmail. the State of Oaxaca com Public Disclosure Copy Page 7 of 7