The World Bank Report No: ISR15489 Implementation Status & Results Afghanistan Afghanistan Urban Water Sector Project (P087860) Public Disclosure Copy Operation Name: Afghanistan Urban Water Sector Project (P087860) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 30-Jun-2014 Country: Afghanistan Approval FY: 2006 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Key Dates Board Approval Date 25-May-2006 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date Last Archived ISR Date 14-Jun-2014 Effectiveness Date 27-Dec-2006 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 02-Nov-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the restructured project is to assist the Recipient to develop the capacity of the AUWSSC for operational management and investment planning and implementation. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Institutional development of AUWSSC 11.00 Financial support to AUWSSC operations 7.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The project development objectives to develop the capacity of the Afghanistan Urban Water Supply and Sewerage Corporation (AUWSSC) for (i) operational management and (ii) investment planning and implementation, have been substantially achieved. Operational management has improved since the project was restructured; AUWSSC was declared an independent entity on March 21, 2011; the utility has been fully corporatized; after a prolonged initial period when AUWSSC HQ Team consisted of just a couple of managers, a full management team for AUWSSC Head Quarters is in place, as is leadership in all the six Strategic Business Units (SBUs). Unfortunately in the last six months or so, there has been turnover of staff holding key positions, e.g. Technical manager, Executive Assistant to DG. With the Government approved increase in the water tariffs of over 200% that took effect Page 1 of 5 The World Bank Report No: ISR15489 from 5/2/1391 (April 24, 2012), AUWSSC is on a more sustainable financial trajectory. Revenues per connection had increased by 103% by the end of 2013, when compared to the end of 2011. Locations Public Disclosure Copy Country First Administrative Division Location Planned Actual Afghanistan Kabul Kabul Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of water utilities that the project is Number Value 1.00 1.00 1.00 supporting Date 10-Oct-2011 15-Oct-2013 30-Jun-2014 Comments After restructuring of the Since corporatization, The target, to support project in 2011, AUWSSC, AUWSSC's operations have AUWSSC has already been the only urban water utility in expanded from 14 towns to achieved. Afg which is being supported 32 towns between 2010 and by the project. Its creation 2012, and AUWSSC is was approved through a currently operating in 42 Presidential decree in 2006, towns through its six Strategic and the articles of Business Units (SBUs) and incorporation approved by the sub-SBUs. Cabinet and published in the Official Gazette in 2007. AUWSSC was officially incorporated and registered with the Afghanistan Investment Support Agency on 11 Aug2007. Upon its creation, it assumed operations in 16 towns. AUWSSC is fully corporatized and took over Date Value Public Disclosure Copy operations in urban areas. Date 10-Oct-2011 Comments Presidential Decree to create AUWSSC corporatized and AUWSSC was signed on Jan operational. 25, 2006. Number of household connections in Kabul Number Value 200.00 31000.00 500.00 provided by small scale local providers Date 10-Oct-2011 15-Jun-2014 30-Jun-2014 Comments This baseline number was A study completed by No end target was arbitrary as there was little AImplementation of one established, as only a study information available - the Min community water scheme in financed by AuSAid was in Page 2 of 5 The World Bank Report No: ISR15489 of Urb Dev is responsible for Kabul by AUWSSC financed the work plan. The issuing licenses to private from this project are expected procurement plan was operators. to augment the water supply amended in December 2013 for 1000 connections with the to include implementation of a Public Disclosure Copy potential to increase the community water number of connection by 300. augmentation scheme - this is Implementation of a second under implementation. scheme planned had to be dropped due to delays in procurement. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Average per connection collections per year Amount(USD) Value 1179.00 2363.00 Date 01-Oct-2010 15-Jun-2014 30-Jun-2014 Comments 142,691 connections were No end target was provided by AUWSSC and established, as multiple AFA 228.4 million revenues donors are investing in capital earned in SY1390 (2011). works that they will execute The average revenue per themselves, and the timeline connection at the end of 2011 of these investments was was Afs 1179. - Afs1822. unpredictable Financial statements of AUWSSC is produced Yes/No Value Yes Yes Yes and audited Date 01-Oct-2010 15-Jun-2014 30-Jun-2014 Comments At the time of project Corporate financial Verification of expenditures restructuring, corporate statements for AUWSSC has been completed by the financial statements prepared have been prepared for 2011 auditors for 2011, 2012, and by another donor, could not and 2012 and are being 2013. This verification was on be certified by the donorfor audited. There has been a the critical path of audit, and had to be re-done. delay in theaudits, due to a disbursements and the AUWSSC then re-prepared delay in the appointment of auditors contract was the Corporate Financial the external auditor. amended to bring the Public Disclosure Copy Statements for 1388 (2009) verification forward for the and 1389 (2010). Auditsof years in question, with the these were completed mid preparation of reports to year 2012. follow. The audit reports will therefore be now done in due course. Accounts Receivable Number Value 3.50 3.00 2.00 Date 01-Oct-2010 15-Oct-2013 17-Jun-2014 Comments No progress since the During the closing mission, data was used to compute the Page 3 of 5 The World Bank Report No: ISR15489 previous ISR. Target will not progress AUWSSC has made be met. in terms of the revenues owed to it divided by the revenues for the year, multiplied by 12 Public Disclosure Copy months to get the number of months for which revenues were outstanding in any given year. In 2009, it was 7.4 months, 2010 7.3 months, 2011 it was 7.19 months, and 2012 it was 4.48 months - highlighting a consistent improvement in the Accounts Receivable. Working ratio Amount(USD) Value 1.17 0.68 1.00 Sub Type Supplemental Average per connection collection Amount(USD) Value 988.00 2363.00 Sub Type Supplemental Percentage of samples tested meeting residual Percentage Value 0.00 80.00 0.00 chlorine standards Date 01-Oct-2010 15-Jun-2014 30-Jun-2014 Comments Data was available for the Procurement of chlorine No end target was number of water quality included in the revised established. samples tested in 2009 (668 procurement plan had to be samples), 2010 (668 dropped due to delays. In samples), and 2011 (533 addition the Grant funds are samples.All SBUs except 100% committed. Kandahar undertook sample tests and a total of 1869 tests were undertaken over this period. However, no data is Public Disclosure Copy available on the percentage of this sample that met residual chlorine standards. Data on Financial Performance (as of 04-Jun-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P087860 IDA-H2250 Effective 25-May-2006 05-Jul-2006 27-Dec-2006 30-Jun-2010 30-Jun-2014 Page 4 of 5 The World Bank Report No: ISR15489 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P087860 IDA-H2250 Effective XDR 27.90 12.24 15.66 7.72 4.52 63.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation The Grant was restructured for a third time on 25 March 2014 to create a single disbursement category and eliminate monetary thresholds without changing the percentages allocated for disbursements for operating costs. Restructuring History Level one Approved on 01-Oct-2010, Level two Approved on 28-Jun-2012, Level 2 CD Decision on 10-Mar-2014 Public Disclosure Copy Related Projects There are no related projects. Page 5 of 5