The World Bank Kenya Water Security and Climate Resilience Project (P117635) REPORT NO.: RES26900 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT APPROVED ON JUNE 18, 2013 TO REPUBLIC OF KENYA WATER AFRICA Regional Vice President: Makhtar Diop Country Director: Diarietou Gaye Senior Global Practice Director: Guang Zhe Chen Practice Manager/Manager: Jonathan S. Kamkwalala Task Team Leader: Xiaokai Li, Berina Uwimbabazi The World Bank Kenya Water Security and Climate Resilience Project (P117635) CURRENCY EQUIVALENTS (Exchange Rate Effective as of May 31, 2017) Currency Unit = Kenya Shilling (KES) KES 103.40 = US$1 US$1.39 = SDR 1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AF Additional Financing IA Implementing Agency ASCV Agricultural Support and Chain Value BWRC Basin Water Resource Committee CF Conversion Factor DMA District Metering Area EA Executing Agency EFA Economic and Financial Analysis EIRR Economic Internal Rate of Return ERR Economic Rate of Return FEWs Flood Early Warning System FRR Financial Rate of Return FM Financial Management GoK Government of Kenya HVC Higher-value Crop KMD Kenya Metrology Department IF Investment Framework ISC Implementation Support Consultant IWUA Irrigation Water User Association KWPF Korea World Bank Group Partnership Facility KWSCRP-1 Kenya Water Security and Climate Resilience Program - Phase 1 KWSCRP-2 Kenya Water Security and Climate Resilience Program - Phase 2 (Coastal Region Water Security and Climate Resilience Project) LNIP Lower Nzoia Irrigation Project LNIS Lower Nzoia Irrigation Scheme M&E Monitoring and Evaluation MOWASCO Mombasa Water and Sewerage Company MOWI Ministry of Water and Irrigation MTR Midterm review NIB National Irrigation Board NPV Net Present Value NRW Non-revenue Water O&M Operation and Maintenance PDO Project Development Objective The World Bank Kenya Water Security and Climate Resilience Project (P117635) PIU Project Implementation Unit PMU Project Management Unit PS Permanent Secretary PSC Project Steering Committee SCMPs Sub Catchment Management Plans SRI System for Rice Intensification TF Trust Fund WRMA Water Resources Management Authority The World Bank Kenya Water Security and Climate Resilience Project (P117635) Processing (this section will be automatically removed by the system before the paper is disclosed) Form Type Based on the proposed changes this Restructuring type is Full Restructuring Paper Level 2 Decision Authority CD Decision I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. Project Background: This project was approved by the Board of Executive Directors on June 18, 2013, in the amount of US$155 million. The project became effective on October 24, 2013. An additional financing (AF) of US$58 million (P151660), a US$3.5million grant from the Korea World Bank Partnership Facility (KWPF) Trust Fund (TF), and a level one project restructuring were approved by the Board of Executive Directors on June 4, 2015. The AF was prepared at the request of the Government of Kenya (GoK) to finance new activities that were not envisioned in the original project, specifically, support for improved and new flood control infrastructure on the Lower Nzoia River providing enhanced flood protection for 66,700 people as well as new watershed management activities in the Nzoia Watershed. The additional grant from the KWPF was to support an improved flood early warning system. The restructuring was required to amend the development objective to narrow the geographic scope of the project from the entire country to certain agreed areas of the country. In addition, the restructuring reallocated funds to add a program of support for improved water services and management in Mombasa County, to be implemented by Mombasa Water and Sewerage Company (MOWASCO), and to enable it to prepare for the major investments proposed in the Coastal Water Security and Climate Resilience Project (P145559). Finally, small adjustments and reallocations were made to specific subcomponents and the project closing date was extended by two years to December 30, 2022. 2. Current implementation status: The project’s progress to date has been slower than expected, mainly because of extensive delays in procurement of major contracts, inefficient Project Management Unit (PMU) coordination, and a very centralized implementation structure that has not properly aligned accountabilities with the existing structures inside the GoK. Current project disbursements for the two credits stand at 8.7 percent after more than three and a half years of implementation and the disbursement ratio registered 2.5 percent for FY17. Only less than 30% of the US$182.8 million in undisbursed balance has been committed. The Project has been in problem status for a year and is rated unsatisfactory for implementation progress and project development objective achievement. Despite the setbacks, there are now some tangible signs of progress. Both the World Bank and the client teams have been intensively focusing on implementation for the past 12 months, and the task management of the project has been given to a country office-based task team leader, which has significantly accelerated progress on the ground. The project has been able to bring on board most of the implementation support consultants (ISCs) that will be critical for progress on the major infrastructure components of the project. The main designs for the Lower Nzoia Irrigation Project (LNIP) and improvement of flood mitigation structures (IFMS) are at an advanced stage with the final designs and bid documents completed. The awarding of these contracts, valued at approximately US$74 million, is expected by August 2017 as per the signed contract with the ISC supporting this The World Bank Kenya Water Security and Climate Resilience Project (P117635) activity. Given the size of the contracts that are at advanced stages of preparation, around US$10 million is expected to be disbursed in the first half of FY2018. 3. Rationale for restructuring: A midterm review (MTR), carried out from April 19 to May 4, 2017, provided an opportunity for the client and the World Bank teams to make a comprehensive and realistic assessment of the project status to date and the scope for achieving project targets and results by 2022. The MTR revealed that the project and development objective remain highly relevant to the country’s development needs and well in line with investment priorities. The review and discussions reinforced the Borrower’s commitment to the project, given the importance of improving water resource management to address the urgent need for water security in Kenya even as the sub region suffers a major drought. While there are early positive signs of progress, the MTR was also a candid exercise in which it became clear that the targets and results, as initially planned, were overly ambitious. As such, this restructuring proposes to rationalize the Results Framework by fine-tuning and clarifying several indicators to align to current realities, adding and subtracting some indicators, and updating the timeline for different targets. In addition, given the critical inefficiencies associated with implementation to date, the restructuring realigns implementation arrangements to speed up implementation. Finally, the restructuring reallocates costs across several components to more accurately reflect project needs. 4. Summary of main changes: The major changes in this restructuring paper are: (i) implementation arrangements: full delegation of implementation responsibility from the Ministry of Water and Irrigation (MoWI), the Implementing Agency to the two main executing agencies, the Water Resources Management Authority (WRMA) and National Irrigation Board (NIB) for their respective components, which will be reflected in the updated project implementation manual (PIM); (ii) the Project Steering Committee (PSC) composition to include the key implementation agencies such as NIB, WRMA and National Land Commission (NLC); (iii) results framework (RF) rationalization and revision (indicators and targets), revised RF to be included in the updated PIM; and (iv) changes in project costs, financing and disbursement, in line with the MTR mission agreement. A total of SDR10 million will be cancelled from the first IDA credit, namely, Cr. no. 52680-KE (mainly from consultancy costs of the 'reform support' and ‘investment pipeline’ sub- components). II. DESCRIPTION OF PROPOSED CHANGES 5. The proposed Level 2 restructuring will amend project implementation arrangement and key indicators and targets in the Results Framework, realign implementation arrangements, and reallocate costs between components to improve project performance and better reflect the project needs: (a) Results Framework. A detailed revised Results Framework is attached as Annex 1. Major changes are listed below: (i) Target dates for several indicators are adjusted to accommodate the implementation delays and better reflect the status in the field. These are PDO-level indicators 1, 3, 5 and intermediate-level indicator 1. (ii) Cancelled Indicators- Four Intermediate-level indicators on ‘Number of villages receiving increased flood protection’; ‘Number of organizations receiving “just in time” legal and operational support to sector reform process’; ‘Procurement undertaken as per procurement plan’; and ‘Reports produced on time and with adequate quality’ were cancelled as they were repetitive. The World Bank Kenya Water Security and Climate Resilience Project (P117635) (iii) New Indicators - Three new intermediate-level indicators were added considering the importance of these results for project sustainability. These are ‘Operational IWUAs created or strengthened’, ‘Revenue collection efficiency’, and ‘Number of Sub Catchment Management Plans (SCMPs) revised/developed and implemented’. (iv) PDO-level indicator 2 is revised to read as ‘Agriculture production per cubic meter of water used’ and the unit of measurement has also changed to kg/m3. (v) PDO-level indicator 4 is revised to read as ‘Decrease in non-revenue water for MOWASCO’. Target values are also revised to reflect realistic figures. (vi) PDO-level indicator 7 is revised to read as ‘Establishment and operationalization of 6 basin water resource committees (BWRCs)’. Target values are also revised to reflect the change on the name of the indicator. PDO-level indicators 6 and 7 have been fine-tuned to be more specific and reflect the various phases of the process of water policy reform and the creation of the basin water resource committees. (vii) Target for intermediate-level indicator 5 has been revised to a more realistic projection. (viii) Intermediate-level indicator 6 (Household water connections: new and rehabilitated) has been fine- tuned to be more specific and have a realistic target. (ix) Intermediate-level indicators 10 and 11 have been fine-tuned to read as follows ‘Institutions mandated by the Water Act established’ and ‘Six basin plans developed and adopted’, respectively. (x) The description, target values, monitoring frequency, data source, and responsibility for a number of indicators have been revised for clarity, easy measurement, and realism. (b) Implementation arrangements (i) Given the integrated and complex nature of the Project and critical needs for direct involvement and oversight by the management of implementation entities, of project implementation, the high-level Project Steering Committee (PS) Chaired by the Permanent Secretary, State Department of Water, MoWI (PS Water), will be restructured to include as members, the Permanent Secretary, State Department of Irrigation (PS Irrigation), heads of all the executing agencies including WRMA and NIB, and a senior official of the National Land Commission (NLC). The PSC will meet quarterly to review project performance, address bottleneck issues, and provide strategic and policy directions. (ii) Also, it was agreed that the PS Water would delegate the implementation accountabilities to the WRMA and NIB. While the MoWI will still handle the main procurement and accounting responsibilities, this additional delegation to the heads of the key executing agencies (WRMA and NIB) is necessary so as to enhance their ownership and accountability for the performance and results of the respective components of the Project. (iii) In addition, it was agreed that World Bank would finance the construction supervision of non-revenue water (NRW) reduction works and implementation of MOWASCO management turnaround activities within the Mombasa Component of the Project, without increasing the overall IDA credit allocation for the component (US$25 million). The consultancy funded through the Government of Netherlands The World Bank Kenya Water Security and Climate Resilience Project (P117635) cooperation program will continue to serve as the implementation support consultant for the Mombasa Component except the NRW reduction works construction supervision. (c) Changes to Project Costs and Financing Plan: The project costs and financing plan will need to be revised to reflect the agreed changes and the cancellation of SDR 10 million from the IDA credit funds. (i) The changes in project costs are mainly due to changes in infrastructure costs as a result of detailed studies and designs; need to scale down some project activities such as support to water sector transition and reforms, and water investment pipeline owing to delays in implementation; increase in operating costs; and depreciation of SDR and Euro against US Dollar since project appraisal. The resultant project costs decreased from US$236.60 million to US$223.13 million, a difference of SDR 10 million of IDA credit, as shown in Table 2.1 below. Table 2.1. Current and Proposed Project Costs At Approval Current Proposed (US$ '000) (US$ '000) (US$ '000) A. Com ponent 1: Water Resources Developm ent 1. Water Security in the Nzoia River: Irrigation (SC 1.1.1.1) 54,500 46,900 81,284 2. Low er Nzoia Flood Protection (SC 1.1.1.2) - 54,000 25,000 3. Low er Nzoia EWS (SC 1.1.1.2) - 3,500 3,500 4. Nzoia Watershed Managem ent (SC 1.1.1.3) - 4,000 5,180 5. Program for Im provem ent of Water Services in Mom basa County (SC 1.1.2) - 25,000 25,000 6. Water Investm ent Pipeline (SC 1.2) 50,000 30,000 20,000 Subtotal 104,500 163,400 159,964 B. Com ponent 2: Effective Water Sector Institutions 1. Support for Water Sector Transition and Reform s (SC 2.1) 26,100 21,100 5,000 2. Strengthening Water Managem ent and Planning (SC 2.2) 30,200 30,200 27,499 Subtotal 56,300 51,300 32,499 C. Com ponent 3: Support for Project Im plem entation (PMU) 15,200 15,200 30,000 D. Com ponent 4: Project Preparation Advance 3,000 3,000 667 Total BASELINE COSTS 179,000 232,900 223,130 Unallocated 3,700 3,700 - Total PROJECT COSTS 182,700 236,600 223,130 (ii) With the above reduction in project costs, the financing plan will need to be adjusted as well, with IDA credit decreasing from US$213 million to US$181.3 million equivalent (after the partial cancellation), KfW loan decreasing from US$20.1 million to US$16.4 million equivalent, and the contributions from the government and beneficiaries’ contributions increasing to US$21.0 million and US$0.9 million, respectively (See Table 2.2 below). This is because that with the variation of the exchange rates since credits approval (US Dollar against SDR and Euro), the U.S. Dollar equivalent funds available under the original financing plan of the Project were reduced in about US$20.1 million: US$15 million from IDA 52680, US$1.5 million from IDA 56740, and US$3.6 million from KfW. Table 2.2. Current and Proposed Project Financing The World Bank Kenya Water Security and Climate Resilience Project (P117635) CURRENT FINANCING ('000 US$) PROPOSED FINANCING ('000 US$) IDA KfW TF-KWPF GO VT Total IDA KfW TF-KWPFBe ne ficiarie s GO VT Total 1. Compone nt 1: Wate r Re source s De ve lopme nt 1.1.1.1. Wate r Se curity in the Nz oia Rive r: Irrigation (SC 1.1.1.1) A. Irrigation and Drainage Infrastructure 43,718 14,062 - - - 57,780 B. Agricultural Support and Value Chain 3,334 495 - - 2,458 6,287 C.. Participatory Irrigation Manage me nt 2,000 1,761 - - 1,669 5,430 D. Proje ct Manage me nt 480 118 - 900 10,290 11,787 Subtotal 26,800 20,100 46,900 49,532 16,435 - 900 14,416 81,284 1.1.1.2. A. Water Sector Investments: Lower Nzoia Flood Protection (SC 1.1.1.2) 54,000 54,000 25,000 - - - - 25,000 B. Water Sector Investments: Lower Nzoia EWS (SC 1.1.1.2) 3,500 3,500 - - 3,500 - - 3,500 1.1.1.3. Water Sector Investments: Nzoia Watershed Management (SC 1.1.1.3) 4,000 4,000 3,885 - - - 1,295 5,180 1.1.2. Program for Improvement of Water Services in Mombasa County (SC 1.1.2) 25,000 25,000 25,000 25,000 1.2. Water Investment Pipeline (SC 1.2) 30,000 30,000 20,000 - - - - 20,000 Subtotal 139,800 20,100 3,500 - 163,400 123,418 16,435 3,500 900 15,711 159,964 2. Compone nt 2: Effe ctive Wate r Se ctor Institutions 2.1. Support for Water Sector T ransition and Reforms (SC 2.1) 21,100 21,100 5,000 - - - - 5,000 2.2. Strengthening Water Management and Planning (SC 2.2) 30,200 30,200 25,718 - - - 1,781 27,499 Subtotal 51,300 51,300 30,718 - - - 1,781 32,499 3. Component 3: Support for Project Implementation (PMU) 15,200 15,200 26,515 - - - 3,485 30,000 4. Component 4: Project Preparation Advance 3,000 3,000 667 - - - - 667 3,700 3,700 Total PRO JECT CO STS 213,000 20,100 3,500 - 236,600 181,317 16,435 3,500 900 20,978 223,130 (d) Change in Disbursement Arrangements (i) Under IDA Credit 52680, there will be a reallocation of funds among different disbursement categories and a cancellation of SDR 10 million while allocations for IDA Credit 56740 remain unchanged (See Table 2.3 and 2.4). The cancellation comes mainly from the consultancy costs of the support for water sector transition and reforms and water investment pipeline sub-components. Table 2.3. Proposed Reallocation for IDA Cr. 52680 LN/Cr/TF Category Allocation IDA-52680 Original Revised Disbursement (SDR) (SDR) (IDA %) (1) Goods Goods under Part 1(a) (i) 0.000 0.000 100 Goods excluded under Part 1(a) (i) 30,342 287,221 100 (2) Works Works under Part 1(a) (i) 0.000 0.000 100 Works under Part 2(c) (iv) 0.000 0.000 100 (3) Consultants Consultants Serv. under Part 0.000 100 0.000 Services 1(a) (i) Consultants Serv. excluded 1,072,303 100 2,522,899 under Part 1(a) (i) (4) Operating Costs 8,220,000 6,388,000 100 (5) Refund of preparation Adv. 666,850 666,850 100 (6) Unallocated 2,410,000 0 100 (7) Goods, works, consulting serves and training 91,000,505 83,535,030 100 Total Amount 103,400,000 93,400,000 100 The World Bank Kenya Water Security and Climate Resilience Project (P117635) Table 2.4. Proposed Reallocation for IDA Credit 56740 LN/Cr/TF Allocation Original Revised Disbursement IDA-56740 Category (million SDR) (million SDR) (IDA %) Goods 2.136 2.136 100 Works 35.959 35.959 100 Consultants Services 2.136 2.136 100 Operating Cost 1.068 1.068 100 Total Amount 41.300 41.300 100 (ii) The disbursement projection has also been revised to reflect the adjusted implementation schedule and funding needs (See Table 2.5 below). Table 2.5. Revised Disbursement Projection of IDA Funding Explanation: Given the disbursement lag relative to current disbursement estimates and considering the cancellation of SDR 10 million, the disbursement projection is revised as follows. Fiscal Year Current (US$, millions) Proposed (US$, millions) 2014 19.26 2.68 2015 32.96 5.48 2016 29.03 4.55 2017 23.57 7.78 2018 17.40 25.95 2019 15.01 39.82 2020 14.22 38.18 2021 3.55 36.00 2022 — 17.93 2023 — 2.96 Total 155.00 181.33 (e) Change in economic and financial analysis (EFA) The World Bank Kenya Water Security and Climate Resilience Project (P117635) (i) The economic and financial analysis was updated to account for the cost changes resulting from the detailed design new cost estimations completed recently, with respect to those estimated when the AF was approved in 2015, as well as for the delays in project implementation. The EFA presented in the Project Paper prepared at the AF approval quantified the costs and benefits of the joint investments for enhanced flood protection and for the LNIP, including its two phases: LNIP I with 4,022 ha of net irrigated area in the left bank of the river (construction to be started in 2018 and financed under the Kenya Water Security and Climate Resilience Project and LNIP II with additional 3,622 ha of irrigated area in the right bank, assuming its construction would start in 2022. Given these changes in the project costs and the implementation delays, a review of the economic viability of these investments needed to be reassessed. (ii) Total investments in flood protection and for enhancing water security and productivity of irrigation water in the Lower Nzoia area considered for the previous analysis had been estimated at U$S162.4 million and are now estimated at US$160.7 million. Totals are similar, but significant differences are found among the different investment components, e.g. the costs of flood protection works and non- structural measures that were estimated at US$57.5 million are now estimated less than half of that value. The direct benefits of the proposed flood control investments considered the expected avoided material and nonmaterial damages that the improved structures and early warning system will bring about in the project area. The following benefits were quantified: value of avoided material flood losses; value of avoided nonmaterial losses (lives, health-related costs, economic activity disruptions, and so on); and value of benefits from irrigation investments, incl. LNIP I and LNIP II. (iii) The economic analysis demonstrates that the main investment from the restructured project continues to be economically viable (see more details in annex 2). The updated analysis shows an economic rate of return (EIRR) of 14 percent, and a net present value (NPV) of KES 4.32 billion (with 10 percent discount rate), equivalent to US$45 million. This represents a slight improvement in comparison with the EIRR of 13.8 percent expected at the time of the AF appraisal. The project remains robust against major risks but highly sensitive to the effective transformation of the existing traditional-subsistence agriculture into very efficient production systems of high-value crops. Farmers need to be properly organized to manage their business and supporting services with a highly professional team providing adequate management skills, orientation on what to produce, technical assistance, and intense training and support for producing high-quality products, as well as for an efficient post-harvest handling and marketing of products adding value to their products. (f) Legal Agreements. The Financing Agreements will be amended to reflect the partial credit cancellation, credit reallocation among different disbursement categories, and other changes agreed. (g) Procurement and Financial Management. The current procurement arrangements will not change. Procurement for the Project will be carried out in accordance with the “World Bank Procurement for Borrowers under Investment Project Financing”, dated July 1, 2016. The project will also be subject to the Bank’s Anticorruption Guidelines, dated July 1, 2016. The procurement processing under the project will be done using Systematic Tracking of Exchanges in Procurement (STEP), a planning and tracking system, which will provide data on procurement activities, establish benchmarks, monitor delays and measure procurement performance. The financial management arrangements will not be affected. Standard IDA credit disbursement procedures already in use under the project will be maintained, and the financial management practices currently being observed under the credit will be continued. The World Bank Kenya Water Security and Climate Resilience Project (P117635) (h) Safeguards. The Project Environmental Assessment Category for the original project was “A”, and will not change given the potential significant impacts associated with the project. As the sites and works had not been finalized when the original project was prepared, an Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) were prepared, consulted upon, and disclosed. To date, safeguards instruments – Environmental and Social Impact Assessments (ESIAs) and Resettlement Action Plans (RAPs) – have been prepared, consulted upon and disclosed. These instruments will continue to provide the overall guidance needed for safeguards monitoring during project implementation. Click here to enter text. III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursement Estimates ✔ Change in Institutional Arrangements ✔ Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Loan Closing Date(s) ✔ Change in Disbursements Arrangements ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Financial Management ✔ Change in Procurement ✔ The World Bank Kenya Water Security and Climate Resilience Project (P117635) Change in Implementation Schedule ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Area provided with new/improved irrigation or drainage services Unit of Measure: Hectare(Ha) Indicator Type: Corporate Baseline Actual (Current) End Target Action Valu 0.00 0.00 4043.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Area provided with improved irrigation or drainage services Unit of Measure: Hectare(Ha) Indicator Type: Corporate Breakdown Baseline Actual (Current) End Target Action Value 0.00 0.00 777.00 Revised Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 2. Agriculture Production Per Cubic Meter of Water Used Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.20 13.00 0.60 Revised e The World Bank Kenya Water Security and Climate Resilience Project (P117635) Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 3. Number of people with increased flood protection Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 66700.00 Revised e Date 15-Apr-2015 21-Dec-2016 30-Dec-2022 4. Decrease in Non-Revenue Water for MOWASCO Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 61.00 0.00 40.00 Revised e Date 15-Apr-2015 21-Dec-2016 30-Dec-2022 Direct project beneficiaries Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 425000.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Female beneficiaries Unit of Measure: Percentage Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 0.00 0.00 48.00 Revised 6. Water Act Sector Policy and Transition Plan Adopted Unit of Measure: Text Indicator Type: Custom The World Bank Kenya Water Security and Climate Resilience Project (P117635) Baseline Actual (Current) End Target Action Valu Water Policy and bill in Water Act adopted and Water Policy and Bill Revised e draft form policy updating launched. adopted Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 7. Establishment and Operationalization of 6 Basin Water Resources Committees (BWRC) Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action BWRCs operational Scores of “fair” or higher Valu and included in WRMA N/A across key water sector Revised e CEO performance institutions contract Date 01-Oct-2013 13-Jun-2016 30-Dec-2022 Intermediate Indicators IO_IND_TABLE 1. Cropping Intensity Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 77.00 77.00 170.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 2. Value of scheme Agricultural Products marketed Unit of Measure: Amount(USD) Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 5.34 5.34 11.37 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Water users provided with new/improved irrigation and drainage services (number) Unit of Measure: Number The World Bank Kenya Water Security and Climate Resilience Project (P117635) Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 2100.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Water users provided with irrigation and drainage services - female (number) Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 0.00 0.00 1008.00 Revised Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Number of Villages Receiving Increased Flood Protection Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 180.00 Marked for Deletion e Date 06-Apr-2015 21-Dec-2016 30-Dec-2022 5. Number of People Consulted Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 1250.00 4000.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 6. Household Water Connections New and Rehabilitated Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 10500.00 Revised e The World Bank Kenya Water Security and Climate Resilience Project (P117635) Date 06-Apr-2015 21-Dec-2016 30-Dec-2022 8. Development and use of Investment Framework (IF) Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action shortlisting for Valu Initial IF has been consultants to develop IF applied for all water Revised e developed detailed investment sector investments framework is under way Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 9. Studies completed to advance investment pipeline Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 6.00 12.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Compliance with water sector transition plan Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 100.00 100.00 100.00 Marked for Deletion e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Number of organizations receiving “just in time” legal and operational support in sector reform process Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 17.00 18.00 Marked for Deletion e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 The World Bank Kenya Water Security and Climate Resilience Project (P117635) 11. Six Basin Plans Developed and Adopted Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 6.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 13. New or Upgraded Monitoring stations (Hydrologic, hydro-meterological and groundwater) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 1.00 494.00 Revised e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 14. Project M&E Established and Operational Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action Valu M&E System is partially NA Fully Operational Revised e operational Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Procurement undertaken as per procurement plan Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Valu Yes Yes Yes Marked for Deletion e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 Reports produced on time and with adequate quality (project physical and financial progress); annual (audit, training, monitoring), mid-term and final evaluation Unit of Measure: Yes/No Indicator Type: Custom The World Bank Kenya Water Security and Climate Resilience Project (P117635) Baseline Actual (Current) End Target Action Valu Yes Yes Yes Marked for Deletion e Date 01-Oct-2013 21-Dec-2016 30-Dec-2022 7. Revenue Collection Efficiency Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 97.00 New e Date 12-Mar-2014 20-Oct-2020 3. Operational IWUAs Created or Strengthened Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 14.00 New e Date 24-Jul-2013 30-Dec-2022 COMPONENTS Current Proposed Current Proposed Cost Action Cost Component Name Component Name (US$M) (US$M) C1: Water Resources C1: Water Resources 163.40 Revised 159964.00 Development Development C2: Effective Water Sector C2: Effective Water Sector 51.30 Revised 32499.00 Institutions Institutions C3: Support for Project C3: Support for Project 15.20 Revised 30000.00 Implementation Implementation Project Preparation Advance 3.00 Revised Project Preparation Advance 667.00 Unallocated 3.67 Revised Unallocated 0.00 TOTAL 236.57 223,130.00 The World Bank Kenya Water Security and Climate Resilience Project (P117635) CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation LOAN IDA-52680- Disburs 103,400,000.0 10,000,000.0 RESTRUCTU XDR 03-May-2017 93,400,000.00 001 ing 0 0 RING, COST SAVINGS IDA-56740- Effectiv XDR 41,300,000.00 0.00 41,300,000.00 001 e REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-52680-001 | Currency: XDR iLap Category Sequence No: 1(A) Current Expenditure Category: Goods under Pt1a(i) 0.00 0.00 1,556,000.00 0.01 100 iLap Category Sequence No: 1(B) Current Expenditure Category: Gds excl under Pt 1a(i) 30,342.00 287,220.73 287,220.73 100.00 100 iLap Category Sequence No: 2(A) Current Expenditure Category: Works under Pt 1a(i) 0.00 0.00 12,840,000.00 0.01 100 iLap Category Sequence No: 2(B) Current Expenditure Category: Works under Pt 2c(iv) 0.00 0.00 4,665,000.00 0.01 100 iLap Category Sequence No: 3(A) Current Expenditure Category: Cons Svcs Pt 1a(i) 0.00 0.00 3,059,000.00 0.01 100 iLap Category Sequence No: 3(B) Current Expenditure Category: Cons Svcs exc Pt1a(i) 1,072,303.00 2,522,898.39 2,522,898.39 100.00 100 The World Bank Kenya Water Security and Climate Resilience Project (P117635) iLap Category Sequence No: 4 Current Expenditure Category: Operating Costs 8,220,000.00 1,500,331.26 6,388,000.00 100.00 100 iLap Category Sequence No: 5 Current Expenditure Category: PPF REFINANCING 666,850.00 666,849.13 666,850.00 iLap Category Sequence No: 6 Current Expenditure Category: UNALLOCATED 2,410,000.00 0.00 0.00 iLap Category Sequence No: 7 Current Expenditure Category: GDS,WKS,CS,TRN 91,000,505.00 5,178,596.65 61,415,030.88 100.00 100.00 Total 103,400,000.00 10,155,896.16 93,400,000.00 IDA-56740-001 | Currency: XDR iLap Category Sequence No: 1(A) Current Expenditure Category: Goods under Pt1a(i) 0.00 0.00 0.00 0.01 100 iLap Category Sequence No: 1(B) Current Expenditure Category: Gds excl under Pt 1a(i) 0.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 2(A) Current Expenditure Category: Works under Pt 1a(i) 0.00 0.00 0.00 0.01 100 iLap Category Sequence No: 2(B) Current Expenditure Category: Works under Pt 2c(iv) 0.00 0.00 0.00 0.01 100 iLap Category Sequence No: 3(A) Current Expenditure Category: Cons Svcs Pt 1a(i) 0.00 0.00 0.00 0.01 100 iLap Category Sequence No: 3(B) Current Expenditure Category: Cons Svcs exc Pt1a(i) The World Bank Kenya Water Security and Climate Resilience Project (P117635) 0.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Operating Costs 0.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 6 Current Expenditure Category: UNALLOCATED 0.00 0.00 0.00 iLap Category Sequence No: 7 Current Expenditure Category: GD,WK,CS,TRN 41,300,000.00 0.00 41,300,000.00 100.00 100.00 Total 41,300,000.00 0.00 41,300,000.00 DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 0 2.68 2015 0 5.48 2016 0 4.55 2017 0 7.78 2018 0 25.95 2019 0 39.82 2020 0 38.18 2021 0 36.00