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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00004814 IMPLEMENTATION COMPLETION AND RESULTS REPORT (AO-45010, AO-49700) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF SDR 35 MILLION (US$ 57 MILLION EQUIVALENT) AND A LOAN IN THE AMOUNT OF SDR 74.1 MILLION (US$ 120 MILLION EQUIVALENT) TO THE Public Disclosure Authorized REPUBLIC OF ANGOLA FOR THE AO-WATER SECTOR INSTITUTIONAL DEVELOPMENT PROJECT February 28, 2020 Water Global Practice Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective {June 30, 2019}) Currency Unit = Angolan Kwanza (AOA) 340.27 AOA = US$1 US$1.39= SDR 1 FISCAL YEAR January 1 – December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Abdoulaye Seck Regional Director(s): Ede Jorge Ijjasz-Vasquez, Simeon Kacou Ehui Senior Global Practice Director: Jennifer J. Sara Practice Manager: Maria Angelica Sotomayor Araujo Task Team Leader(s): Camilo Lombana Cordoba ICR Main Contributor: Rebecca Jean Gilsdorf ABBREVIATIONS AND ACRONYMS AF Additional Financing AfDB African Development Bank AMU Asset Management Unit AOA Angolan Kwanza BP Bank Policy CBA Cost Benefit Analysis CPS Country Partnership Strategy DHS Demographic and Health Surveys DNA National Water Directorate (Direcção Nacional de Àguas) EA Environmental Assessment ECP Strategy to Combat Poverty (Estratégia de Combate à Pobreza) ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan FCMU Financial and Contract Management Unit FM Financial Management GOA Government of Angola GRM Grievance Redress Mechanism IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report INAD National Demining Institute (Instituto Nacional de Desminagem) INRH National Water Resources Institute (Instituto Nacional de Recursos Hidicros) IRSEA National Electricity and Water Regulatory Institute (Instituto Regulador dos Serviços de Electricidade e de Água) IP Implementation Progress ISR Implementation Status and Results MC Management Contracts MICS Multiple Indicator Cluster Surveys MINEA Ministry of Energy and Water (Ministério da Energia e Águas) MIS Management Information System MTR Midterm Review M&E Monitoring and Evaluation NPV Net Present Value OCC Operating Cost Coverage OP Operational Policy PAD Project Appraisal Document PDO Project Development Objective PNA National Water Plan (Plano Nacional da Água) PPP Public-Private Partnership PWSU Provincial Water and Sanitation Utility RF Results Framework RP Restructuring Paper SDG Sustainable Development Goal TA Technical Assistance TTL Task Team Leader WB World Bank WRM Water Resources Management WSIDP Water Sector Institutional Development Project WSIDP-2 Second Water Sector Institutional Development Project TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION ................................................................8 II. OUTCOME .................................................................................................................... 11 A. RELEVANCE OF PDOs ............................................................................................................ 11 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 12 C. EFFICIENCY ........................................................................................................................... 15 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 17 E. OTHER OUTCOMES AND IMPACTS ......................................................................................... 17 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 18 A. KEY FACTORS DURING PREPARATION ................................................................................... 18 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 19 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 19 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 19 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 20 C. BANK PERFORMANCE ........................................................................................................... 22 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 23 V. LESSONS AND RECOMMENDATIONS ............................................................................. 23 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 25 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 35 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 38 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 39 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 43 ANNEX 6. SUPPORTING DOCUMENTS .................................................................................. 55 ANNEX 7. ANALYSIS OF PWSU PERFORMANCE ..................................................................... 57 ANNEX 8. HOUSEHOLD CONNECTION PROGRAM SUMMARY ............................................... 59 ANNEX 9. SAFEGUARDS EVALUATION .................................................................................. 60 ANNEX 10. RESULTS FRAMEWORK PROGRESSION ................................................................ 62 The World Bank AO-Water Sector Institutional Development (P096360) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P096360 AO-Water Sector Institutional Development Country Financing Instrument Angola Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Republic of Angola Ministry of Energy and Water Project Development Objective (PDO) Original PDO The project development objective is to strengthen the institutional capacity and efficiency of agencies in the water sector toimprove access and reliability of water service delivery. Revised PDO The project development objective is to strengthen the institutional capacity and efficiency of the Recipient's agencies in thewater sector to improve access to water service delivery. PDO as stated in the legal agreement The objective of the Project is to strengthen the institutional capacity and efficiency of agencies in the Recipient’s water sector to improve access and reliability of water service delivery. (original PDO) Page 1 of 62 The World Bank AO-Water Sector Institutional Development (P096360) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 57,000,000 57,000,000 50,519,719 IDA-45010 120,000,000 119,244,809 103,288,264 IDA-49700 Total 177,000,000 176,244,809 153,807,983 Non-World Bank Financing 0 0 0 Borrower/Recipient 56,200,000 56,200,000 66,452,802 Total 56,200,000 56,200,000 66,452,802 Total Project Cost 233,200,000 232,444,809 220,260,784 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 31-Jul-2008 30-Aug-2010 22-Sep-2015 30-Jun-2016 30-Jun-2019 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 06-Jun-2011 2.17 Additional Financing Change in Project Development Objectives Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Reallocation between Disbursement Categories 16-May-2012 4.14 Change in Safeguard Policies Triggered 28-Apr-2016 58.92 Change in Results Framework Change in Components and Cost Change in Financing Plan Reallocation between Disbursement Categories 18-Jul-2017 96.45 Reallocation between Disbursement Categories 06-Sep-2018 135.57 Reallocation between Disbursement Categories Page 2 of 62 The World Bank AO-Water Sector Institutional Development (P096360) KEY RATINGS Outcome Bank Performance M&E Quality Highly Satisfactory Satisfactory Substantial RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 06-Feb-2009 Moderately Satisfactory Satisfactory .64 Moderately 02 28-May-2009 Moderately Unsatisfactory .73 Unsatisfactory Moderately 03 20-Nov-2009 Moderately Unsatisfactory .80 Unsatisfactory 04 29-Apr-2010 Moderately Satisfactory Moderately Satisfactory .81 05 03-Nov-2010 Satisfactory Moderately Satisfactory .82 06 10-Jul-2011 Satisfactory Moderately Satisfactory 2.31 07 13-Feb-2012 Satisfactory Moderately Satisfactory 2.70 08 07-Sep-2012 Satisfactory Moderately Satisfactory 6.28 09 15-May-2013 Satisfactory Moderately Satisfactory 9.08 10 09-Dec-2013 Satisfactory Moderately Satisfactory 10.62 11 18-Jun-2014 Satisfactory Moderately Satisfactory 16.68 12 22-Nov-2014 Satisfactory Moderately Satisfactory 25.88 13 11-May-2015 Satisfactory Moderately
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