The World Bank Report No: ISR11990 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: 13 Status: ARCHIVED Archive Date: 22-Dec-2013 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 12-Jun-2013 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 Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Implementation Status Overview The project development objectives to develop the capacity of the Afghanistan Urban Water Supply and Sewerage Corporation for (i) operational management and (ii) investment planning and implementation, have been 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; a full management team for AUWSSC Head Quarters is in place, as is leadership in all the six Strategic Business Units (SBUs). With the the Government approved increase in the water tariffs of over 200% that took effect from 5/2/1391 (April 24, 2012), AUWSSC is on a more sustainable financial trajectory. Revenues per connection have increased by 55% by the end of the second quarter of 2013, when compared to the end of 2011. Page 1 of 6 The World Bank Report No: ISR11990 (i) OPERATIONAL MANAGEMENT: Select empirical indicators for operational management as measured by the expansion of operations as well as by improved efficiency of operations achieved by AUWSSC are: (i) expansion of operations from 16 to 42 towns (162% increase); (ii) reduction in water production and distribution costs by 25%; (iii) reduction in system water losses from 60% to 35%; and (iv) reduction in the number of staff per water connection from 8.6 to 5.9; (v) increase in total AUWSSC operational revenues by 3rd Quarter 2013 over end of 2011 by 67%; and (vi) increase in the number of water connections by 2nd Quarter 2013 by 8%. A system of internal monitoring and monthly reporting Public Disclosure Copy between AUWSSC HQ and SBUs is in place providing both physical and financial data (e.g. number of metered connections and revenues from connections). (ii) INVESTMENT PLANNING AND IMPLEMENTATION: AUWSSC has completed in-house, designs for Government-financed water supply projects in Andhoki, Farah and Ayback that are now under implementation - the construction in Andhoki is complete, construction in Aybak is underway, and the construction in Farah is to commence. It has also completed in house designs for community water systems in Kabul which is expected to increase water connections by 3000, and the bidding process is underway. AUWSSC has also developed the capacity to collaborate with other Government agencies and Ministries, and has embarked on the preparation of a country-wide investment plan for urban water supply. Locations 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. Public Disclosure Copy 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. Page 2 of 6 The World Bank Report No: ISR11990 AUWSSC is fully corporatized and took over Date Value Empty 15-Oct-2013 Empty operations in urban areas. Date 10-Oct-2011 Comments A Presidential Decree to Since 2012, AUWSSC's Public Disclosure Copy create AUWSSC was signed operations have expanded to on Jan 25 2006. Articles for an additional 12 towns, incorporation were approved bringing the total to 42 towns. by the Cabinet in July 2007 AUWSSC revised its water and published in the official tariffs on April 24, 2012 by Gazette. AUWSSC was over 200%. AUWSSC's total officially incorporated and revenues by end of 3rd registered in Afg Inv Support quarter as compared to 2011, Agency on 11 Aug 2007. The have increased from Afs project was restructured in 228,802,289 to Afs Oct 2010. AUWSSC 313,147,998, a 37% increase Management Team and since 2011. The total number Heads of SBUs were hired of water connections have from May 2009. By Oct 2010 increased from 142,691 at the AUWSSC started functioning end of 2011 to 154,238 by the as an independent utility with end of the 2nd Quarter of its leadership reporting 2013, marking a 8% increase. directly to a Board, and the DG being appointed by the President. In 2010 AUWSSC took over operations in 16 towns. It was declared an independent budget entity on March 21, 2011. Since then, its operations expanded to 30 towns in 2012. Its operational revenue at the end of 2011 was Afs 168,243,864; other revenue was Afs 60,558,425, with total revenues for AUWSSC at the end of 2011 Public Disclosure Copy being Afs 228,802,289. Total registered connections with AUWSSc stood at 142,691 at the end of 2011. Number of household connections in Kabul Number Value 200.00 312200.00 provided by small scale local providers Date 10-Oct-2011 15-Oct-2013 Comments This baseline number was A study completed by AusAid arbitrary as there was little support in Kabul estimated information available - the Min that private water operators of Urb Dev is responsible for were providing 312,200 Page 3 of 6 The World Bank Report No: ISR11990 issuing licenses to private household connections. The operators. number of Hh connections provided by small scale providers is not updated since Public Disclosure Copy the completion of the study, as licenses are provided by MUDA. However, implementation of two community water schemes in Kabul by AUWSSC financed from this project are expected to increase the number of connections in Kabul by approximately 3000 connections. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Average per connection collections per year Amount(USD) Value 1179.00 1822.00 Date 01-Oct-2010 15-Oct-2013 30-Jun-2014 Comments 142,691 connections were Average revenue per The end target cannot be provided by AUWSSC and connection has increased by established, as multiple AFA 228.4 million revenues 55% by the end of 2nd donors are investing in capital earned in SY1390 (2011). quarter 2013, as compared to works that they will execute The average revenue per the average revenue per themselves, and the timeline connection at the end of 2011 connection at the end of 2011. of these investments is was Afs 1179. - Afs1822. unpredicatble. Financial statements of AUWSSC is produced Yes/No Value Yes Yes Yes and audited Date 01-Oct-2010 15-Oct-2013 30-Jun-2014 Comments At the time of project Corporate financial restructuring, corporate statements for AUWSSC financial statements prepared have been prepared for 2011 Public Disclosure Copy by another donor, could not and 2012 and are being be certified by the donorfor audited. There has been a audit, and had to be re-done. delay in theaudits, due to a AUWSSC then re-prepared delay in the appointment of the Corporate Financial the external auditor. Statements for 1388 (2009) and 1389 (2010). Auditsof these were completed mid year 2012. Accounts Receivable Number Value 3.50 3.00 2.00 Page 4 of 6 The World Bank Report No: ISR11990 Date 01-Oct-2010 15-Oct-2013 30-Jun-2014 Comments The Technical Assistance recruited to support Public Disclosure Copy AUWSSC's institutional development was supposed to deliver the Billing and CollectionSystem. The Consultants did not deliver. An automated billing and collection system is unlikely to be in place by close of Grant. Itis unclear how the baselines were established at restructuring. Working ratio Amount(USD) Value 1.17 1.00 1.00 Sub Type Supplemental Average per connection collection Amount(USD) Value 988.00 1127.00 Sub Type Supplemental Percentage of samples tested meeting residual Number Value 0.00 0.00 0.00 chlorine standards Date 01-Oct-2010 15-Oct-2013 30-Jun-2014 Comments Data was available for the Due to the lack of a regular number of water quality supply chain of chlorine samples tested in 2009 (668 (financed by other donors), samples), 2010 (668 AUWSSC has not established samples), and 2011 (533 the system for this. samples.All SBUs except Kandahar undertook sample tests and a total of 1869 tests were undertaken over this Public Disclosure Copy period. However, no data is available on the percentage of this sample that met residual chlorine standards. Data on Financial Performance (as of 02-Dec-2013) 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 5 of 6 The World Bank Report No: ISR11990 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 4.11 8.13 34.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation None Restructuring History Level one Approved on 01-Oct-2010, Level two Approved on 28-Jun-2012 Public Disclosure Copy Related Projects There are no related projects. Page 6 of 6