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)
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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$M) Key Revisions 06-Jun-2011 2.17 Additional Financing Change in Project Development Objectives Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Reallocation between Disbursement Categories 16-May-2012 4.14 Change in Safeguard Policies Triggered 28-Apr-2016 58.92 Change in Results Framework Change in Components and Cost Change in Financing Plan Reallocation between Disbursement Categories 18-Jul-2017 96.45 Reallocation between Disbursement Categories 06-Sep-2018 135.57 Reallocation between Disbursement Categories
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The World Bank AO-Water Sector Institutional Development (P096360)
KEY RATINGS
Outcome Bank Performance M&E Quality Highly Satisfactory Satisfactory Substantial
RATINGS OF PROJECT PERFORMANCE IN ISRs
Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$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 Satisfactory 38.04
14 18-Dec-2015 Satisfactory Moderately Satisfactory 51.28
15 23-Dec-2015 Moderately Satisfactory Moderately Satisfactory 51.28
16 21-Jun-2016 Moderately Satisfactory Moderately Satisfactory 64.90
17 23-Dec-2016 Moderately Satisfactory Moderately Satisfactory 81.67
18 18-Jun-2017 Moderately Satisfactory Moderately Satisfactory 93.93
19 28-Dec-2017 Satisfactory Satisfactory 123.24
20 11-Jun-2018 Satisfactory Satisfactory 133.65
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The World Bank AO-Water Sector Institutional Development (P096360)
21 06-Dec-2018 Highly Satisfactory Highly Satisfactory 144.69
22 19-Jun-2019 Highly Satisfactory Highly Satisfactory 151.33
SECTORS AND THEMES
Sectors Major Sector/Sector (%)
Water, Sanitation and Waste Management 100 Water Supply 65 Public Administration - Water, Sanitation and Waste 35 Management
Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Urban and Rural Development 85
Urban Development 85
Services and Housing for the Poor 85
Environment and Natural Resource Management 15
Water Resource Management 15
Water Institutions, Policies and Reform 15
ADM STAFF
Role At Approval At ICR
Regional Vice President: Obiageli Katryn Ezekwesili Hafez M. H. Ghanem
Country Director: Michael William Peary Baxter Abdoulaye Seck
Director: Inger Andersen Jennifer J. Sara Maria Angelica Sotomayor Practice Manager: Jaime M. Biderman Araujo Task Team Leader(s): Luiz Claudio Martins Tavares Camilo Lombana Cordoba
ICR Contributing Author: Rebecca Jean Gilsdorf
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The World Bank AO-Water Sector Institutional Development (P096360)
I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. In April 2002, political stability was re-established in Angola with the signing of the peace accords between the Government of Angola (GOA) and the Union for the Total Liberation of Angola (União Nacional para Independência Total de Angola). The government began increasing social spending and infrastructure investments in many areas, while improving macroeconomic performance. High international oil prices aided the economic recovery of the country, and from 2003-2005, annual GDP grew at 11.5 percent. Macroeconomic management improved over the same period, resulting in a reduction of inflation from 23 percent down to 12 percent from 2005 to 2006. 2. In contrast to the economic improvements, high inequality remained (with a cited Gini coefficient of 0.62) and human development indicators lagged due to the impacts of the 27-year civil war. The GOA’s Strategy for Poverty Reduction (Estratégia de Combate à Pobreza, ECP, 2003) stated that around 62 percent of Angolan households lived below the poverty line (US$1.70 per day). Life expectancy was 47 years, and nearly a quarter of all children died before they reached age five. Improved drinking water access was estimated at 54.3 percent and only 33.5 percent of households had access to improved sanitation (JMP 2003). Cholera was endemic at the time, with a 2006 outbreak resulting in over 48,000 cases. Most cities were still served solely by poorly maintained water systems built during the colonial period, intended to serve much smaller populations. Additionally, poor households were less likely to be connected to the network and instead relied on private vendors, for which the cost of water could be more than US$10 per cubic meter. 3. This scarcity of supply was due to lack of infrastructure in the country and not lack of water resources. The provincial directorates of water were unable to implement sufficient investments nor to properly maintain the limited existing assets. Sectoral capacity at the national level was also limited. Angola is rich in water resources, with 77 river basins, 43 hydrological basins, and important upstream positions in several international basins. However, in 2008, only 35 of the country’s 135 hydrometric monitoring stations (constructed in 1975) were functional. 4. At the time of appraisal, the GOA’s ECP included ten priority areas, one of which was supply of at least 15 liters of water per capita per day to the urban and peri-urban population and the regulation of water trucks to ensure that they provide adequate water quality at an accessible price. To support these objectives, the GOA began a program of investments (totaling about US$350 million) to improve water supply infrastructure, improve institutional and human capacity issues and introduce a “Water for All” program (US$650 million) to improve water supply for 3 million people (between 2007 to 2012). Prior to appraisal, the GOA introduced a new water law (Law 6/02, 2002), approved a Water Sector Development Strategy (Programa de Desenvolvimento do Sector das Aguas, Council of Minister’s Resolution 10/04), and utilized the public enterprise law to establish public water utilities, among other sector reforms. However, even with the ambitious reform program, as of appraisal, a number of institutional and regularly reforms were still necessary (including formation of an independent regulator), to further clarify and operationalize the roles of the Ministry of Energy and Water (Ministério da Energia e Águas, MINEA), its National Water Directorate (Direcção Nacional de Águas, DNA), the Ministry of Finance, the provinces (who were mandated with responsibility for service delivery), and others. 5. At appraisal the Bank was deemed well positioned to support the project, as the Bank had considerable sectoral expertise – for both the necessary institutional reforms and infrastructure investments, and the project aligned with the pillars of the Interim Strategy Note (April 26, 2007, Report No. 39394), namely: (i) strengthening public sector management and government institutional capacity; (ii) supporting the rebuilding of critical infrastructure and improving service delivery for poverty reduction; and (iii) promoting the growth of non-mineral sectors.
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The World Bank AO-Water Sector Institutional Development (P096360)
Theory of Change (Results Chain)
Figure 1: Theory of Change (at appraisal)1
6. As shown in Figure 1, the project was designed to support a mix of activities for the water sector at large, including both sector-wide institutional development as well as more targeted infrastructure investments for water supply. The project supported institutions and investments at multiple levels of government, in line with the institutional arrangements in the country (namely the role of provincial utilities in providing services complemented with the national government’s role in water resources management (WRM), regulation and policy setting). Overall, the project was aiming to create institutional clarity and capacity at multiple levels, while ensuring priority investments were made in expanding access to services. The considerable needs at the time of appraisal were thus addressed through the following activities and outputs. 7. Activities: The project was designed to support a large number of activities, linked to the project’s four components, including, (i) for a component on institutions: development of an asset management unit (AMU), creation of provincial water and sanitation utilities (PWSUs), and development of a regulatory agency for the water supply and sanitation sub-sector; (ii) for a component on WRM: development of an institution for and systems for WRM, rehabilitation of WRM systems; (iii) for a component on water supply rehabilitation: construction of water supply networks and house connections, development of technical cadasters and information systems; and (iv) for a component on capacity building: capacity building activities at the national and provincial levels, capacity building at the utility level, and technical assistance (TA) to facilitate change management and good governance. 8. Outputs: The planned project activities were anticipated to lead to the following outputs: (a) numerous sector institutions (both existing and new) with improved capacity, including PWSUs, a regulator, a WRM entity, an AMU,
1 At the time of appraisal, TOCs were not a standard part of project documents. Thus this TOC is based on the ICR author’s interpretation of the implicit TOC at appraisal.
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The World Bank AO-Water Sector Institutional Development (P096360)
MINEA, and DNA; (b) new households connected to the water supply networks and improved quality of service for existing customers; (c) improved financial and operational efficiency of PWSUs; and (d) rehabilitated hydromet stations being operational. 9. Outcomes: In the project locations and selected counterpart agencies, the project was envisioned to produce the following outcomes: strengthened institutional capacity and efficiency of selected agencies in the GOA’s water sector as evidenced by new institutions being operational and improved access and reliability of water service delivery in selected urban centers, as evidenced by new household connections and improved operational and financial efficiency of PWSUs. The improved efficiency of sector agencies aimed to increase efficient utilization of sector financing, dependent upon successful design and implementation of the PWSUs, the regulatory system and long-term management of the physical assets. These actions, combined with gradually increasing tariffs (which would become possible with the new regulator), improved billing and collection efficiency, would then result in increased revenues for the utilities, which is important for long-term sustainability of services. 10. Long-term outcomes: Improvements in the water sector – both WRM and water supply – will produce long- term benefits to the country. Proper management of water resources will allow for better long-term planning and adaptability within the sector, improved utility performance will result in providing better quality service and service to more households, and increased access to household water supply services will provide households health and time saving benefits.
Project Development Objectives (PDOs) 11. The original project development objective (PDO), as stated in the project’s original financing agreement (Credit Number 4501), 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.” Compared with the Project Appraisal Document (PAD, Report No. 42864-A0), this version of the PDO has added the phrase “the Recipient’s” in order to appropriately bound the scope of the PDO.
Key Expected Outcomes and Outcome Indicators 12. Achievement of the PDO was to be measured based on the following indicators: (i) PWSUs achieving annual profitability targets (target: 66 percent); (ii) hydrometric stations operational (target: 80 percent); and (iii) households with new connections to the piped water supply network managed by the utilities in the target cities (target: 72,000).
Components 13. The project was designed around four components: (i) development of institutions in the water supply and sanitation sub-sector, (ii) WRM, (iii) rehabilitation of water supply systems, and (iv) capacity building and change management. 14. Component 1 – Development of Institutions in the Water Supply and Sanitation Sub-sector (original US$25.7 million, revised US$37.3 million, disbursed US$30.2 million)2. This component aimed to provide support to strengthening of the sector’s institutional framework (and its institutions) for water supply at the central and regional levels. This component included three sub-components: (a) development of an AMU (US$18.8 million, original) to be responsible for mobilizing and managing financing, overseeing works, and promoting public-private partnerships (PPP) for all urban water supply assets that involve distribution systems and treatment; (b) creation of PWSUs (US$1.4 million, original) contracted by the AMU for service provision in line with the government’s desired decentralization of service delivery; and (c) development of a regulatory agency (US$1.5 million, original) for the water supply and sanitation sub-sector, through TA for its creation and TA to support its continued operation. The institutions under this
2 These figures include the planned US$56.2 million of counterpart funding.
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The World Bank AO-Water Sector Institutional Development (P096360)
component were planned to be created using existing decrees, including the Public Enterprise Law (9/95) and the Public Institute Law (9/03) of October 28, 2003. The Public Institute Law needed to be revised to allow for creation of the proposed institutes.3 15. Component 2 – Water Resources Management (original US$12.0 million, revised US$10.8 million, disbursed US$10.8 million). This component was designed to strengthen the institutional framework for WRM by: (a) creating a dedicated WRM institution (US$3.0 million, original), the National Water Resources Institute (Instituto Nacional de Recursos Hidicros, INRH), using TA to consolidate GOA’s vision and define the structure, responsibilities, staffing and financial arrangements for INRH; (b) development of systems for WRM (US$6.0 million, original), including piloting two integrated basin management plans (IBMPs) in the Cubango River basin and Cuanza River basin, to help establish the necessary systems, institutional arrangements, policies, regulations, and financing for managing the country’s many basins, in line with the systems envisaged under the 2002 Water Law; (c) rehabilitation of WRM systems (US$3.0 million, original), specifically rehabilitating and/or re-establishing contact with an estimated 189 abandoned hydrometric stations across the country, to support WRM monitoring and planning for the sector. 16. Component 3 – Rehabilitation of Water Supply Systems (original US$51.8 million, revised US$141.6 million, disbursed US$152.4 million). This component focused on improving and increasing access to water supply services through rehabilitation and expansion of piped water networks in selected cities. The sub-components under component 3 were planned to finance approximately 240 kilometers of water supply networks and 72,000 new household connections (US$33.9 million, original) and preparation of technical cadasters and implementation of information systems (US$17.9 million, original) for measuring water consumption, processing and sending bills to customers, and recording customer payments. Activities were to be piloted initially in five cities (likely Malange, Kuito, N’Dalatando, Huambo and Uíge4), and later scaled up to four additional cities (likely M’Banza Congo, Menongue, Lubango and Luena). 17. Component 4 – Capacity Building and Change Management (original US$11.0 million, revised US$17.2 million,5 disbursed US$24.8 million6). Component 4 was intended to support: capacity building at national and provincial levels (US$2.0 million original) including: (a) engaging senior national (ministerial) and provincial officials in institutional changes for the sector, training in management for DNA staff, social mobilization/communication in the provinces and implementation of the Environmental and Social Management Framework and Resettlement Policy Framework; (b) capacity building and training for the PWSUs (US$8.4 million original) including training of utility Board members on company organization, basic financial analysis and funds flow, oversight responsibilities and public communication, as well as training on leadership, management, finance, communications for all PWSU staff; and (c) TA to facilitate change management and good governance (US$0.6 million original) for MINEA and the PWSUs to improve communication programs aimed at strengthening the link between communities and government institutions as well as the development and updating of a risk management plan and implementation of the governance and accountability action plan. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION Revised PDOs and Outcome Targets 18. As part of an Additional Financing (AF) in 2011, the PDO was revised to drop the improved reliability of water
3 Revision of this law was a disbursement condition for sub-components 1.3 and 2.1. 4 These five cities were proposed for initial piloting as the rehabilitation of their networks was already underway, which made the installation of an effective operator critical. 5 The revised cost estimates total US$206.9 million. The remaining US$20 million were allocated as a contingency. 6 The actual disbursements sum to a lower figure than the revised estimates due to significant exchange rate losses over the life of the project. This is further described in the analysis of the project’s efficiency.
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The World Bank AO-Water Sector Institutional Development (P096360)
service delivery. The revised PDO is: to strengthen the institutional capacity and efficiency7 of the Recipient’s agencies in the water sector to improve access to water service delivery. This change was made to reflect the increased focus on household connections and coverage areas and the difficulties, at the time, in measuring reliability of service (Project Paper, Report No. 58406-AO).
Revised PDO Indicators 19. The PDO indicators were changed as shown in Table 1, primarily to clarify the language used in the original PAD and to add additional PDO indicators to track core activities linked to the PDO. Some targets were also revised due to shifts in priorities, changes to cost estimates, adaptations to address reduction in funding (caused by the devaluation of the SDR), and other project changes. Annex 10 presents the full results framework (RF), including revised targets at each stage of the project. Table 1: Summary of PDO indicators at appraisal and following restructurings (2011, 2016) Original (PAD) Revised during AF (2011) Revised during restructuring (2016) 66% of PWSUs achieving Percent of PWSUs achieving Percentage of PWSUs achieving annual profitability (Phase annual profitability targets annual profitability targets 1 Cities)8 (target: 66 percent) (target: 60 percent) 80% of hydrometric stations Percentage of hydrometric Percentage of hydrometric stations providing information operational stations providing information to INRH to INRH (target: 80 percent) (target: 70 percent) 72,000 households with Number of people in urban Number of people in urban areas provided with access to connections to the piped water areas provided with access to Improved Water Sources under the project supply network managed by improved water (core indicator, (core indicator, target: 704,000) utilities in pilot cities target: 840,000) Direct project beneficiaries (core indicator, target: 704,000), of which female (target: 50 percent) Regulatory agency is established and operational Percentage of annual independent financial and performance audits carried out on the PWSUs created by the project (target: 60 percent)
Revised Components 20. During project implementation, there was a significant change in the exchange rate between the SDR and USD. As a result, around US$27.6 million were “lost,” and the project activities were adjusted accordingly. 21. Component 1 was not changed during the AF (2011), but it was later revised as part of other restructurings. Creation of the AMU was formally removed from the project as part of a restructuring in 2016, given the desire to give the PWSUs time to further develop to understand what role the AMU (then renamed the National Institute for Water and Sanitation) would provide relative to the PWSUs (who were originally envisioned to be the AMU’s primary beneficiary). Further, over time, it was recognized that the support needed by the PWSUs did not require creation of a new entity at the national level. Additionally, as part of the restructuring, funding for the management/TA support to
7 As defined in the PAD, “one of the main goals of the project is to improve the financial viability and efficiency of the service providers and to implement a tariff policy that permits the sustainable delivery of water and sanitation services” (Report No. 42864-AO, page 18). This text is taken as evidence of the project’s definition of efficiency as financial efficiency, further evidenced by the project’s PDO objective on annual profitability of PWSUs. 8 Phase 1 cities were those were the PWSU had already been created, namely: Uíge, Huambo, Malanje, Lubango, Luena, Kuito, Moçamedes, and N’dalatando.
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The World Bank AO-Water Sector Institutional Development (P096360)
PWSUs was reduced from nine to five, with TA to PWSUs being reduced from nine to six (linked to the decreased project budget). The number of financial audits supported was also reduced, from seven years of annual audits for nine PWSUs to three years of annual audits for a maximum of five PWSUs. 22. As part of the AF (2011), one of the river basins (for river basin management pilots) under Component 2 was changed to the Cubal da Hanha-Catumbela-Cavaco-Coporol watersheds (in place of Cubango). However, as part of the 2016 restructuring, the second river basin management plan was dropped (due to budget shortfalls), so the project only supported the Kwanza River Basin plan. The Cubango River Basin plan was developed solely using government funds, but following the approach used for the Kwanza Basin. Further, due to higher than anticipated costs9 and a desire to align with the changes in river basin management plans, the project was revised to only support rehabilitation of 35 of the country’s 189 hydrometric stations (as at the time of the 2016 restructuring, the construction of the first lot of 35 was already underway). 23. In 2011, the AF, included considerable scale up of Component 3, for all nine cities. The scale up included: rehabilitation of production and treatment facilities; construction of new water distribution reservoirs (at existing treatment plants); construction of other new facilities (e.g., water quality labs and related equipment); replacement of electromechanical equipment; construction of new wells; construction of an additional 403 km of water supply networks; and construction of an additional 60,000 household connections (total of 132,000 connections); and associated TA (including for the development of a technical cadaster for about 60,000 connections). As part of the AF, the project also re-prioritized intervention areas within cities by focusing on peri-urban areas, which are known to have a higher concentration of poor households, thereby increasing the pro-poor impact of the project. The targets for network extension and household connections were later revised to 900 km and 110,000 connections respectively, as per the 2016 restructuring. 24. The AF (2011) did not make any changes to Component 4. As part of the 2016 restructuring, the proposed TA under this component – for strengthening communication with communities and development of risk management plans, was dropped. This change was justified by the limited project time remaining and the capacity building priorities for the PWSUs. Any necessary capacity building activities were instead incorporated into the management contracts (MC).
Other Changes 25. The financing for each component was changed as part of the 2011 AF and again as part of the 2016 restructuring. The AF re-allocation was driven by the additional US$120 million, whereas the re-allocation in 2016 was driven by exchange rate losses between the USD and SDR. Table 2 summarizes these changes. 26. The selected provinces were also re-prioritized to include creation of PWSUs in: Uíge, Huambo, Malanje, Lubango, Luena, Kuito, Moçamedes, and N’dalatando10. The PWSUs were supported with infrastructure investments and MCs to strengthen their capacity.11 Additionally, the 2016 restructuring formalized the use of the existing Electricity Regulator as the new water supply and sanitation regulator. The regulator was officially created in March 2016 with the Joint Executive Decree no. 59/16, which created the National Electricity and Water Regulatory Institute (Instituto Regulador dos Serviços de Electricidade e de Água, IRSEA).
9 In short, during appraisal it was not possible to visit all of the stations and during an initial evaluation (during project implementation) it became known that the stations were largely destroyed during the civil war and needed more significant repairs and replacement than originally envisioned. 10 The list of decrees that established these PWSUs is provided in Annex 6. 11 Moçamedes was not supported with infrastructure investments or an MC as its creation was done to support preparation of WSIDP-2. Luena did not receive an MC but instead relied on short-term operation support contracted through the firm that did the infrastructure rehabilitation.
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The World Bank AO-Water Sector Institutional Development (P096360)
Table 2: Summary of component cost allocations, costs in million US$
PAD AF (2011) restructuring (2016)
Component 1 25.7 25.7 37.32 Component 2 13 13 10.8 Component 3 56.8 156.8 141.6 Component 4 16.9 16.9 17.18 Contingency 20 Project Preparation Facility 0.8 0.8 0.8 total 113.2 233.2 207.7
27. The following lists summarizes the changes made as part of each AF and restructuring. • AF (June 2011) - (i) restructure the original Project to reflect the change in project development objective and changes in components 2 and 3; (ii) reallocate funds of the original Financing Agreement and add US$120 million in additional funding; (iii) adjust the Project indicators and targets; and (iv) extend the Closing Date of the original Financing Agreement from June 30, 2016 to June 30, 2019 so as to align it with that of the proposed AF. • Restructuring (May 2012) – (i) trigger OP 7.50, Projects on International Waterways safeguard policy • Restructuring (April 2016) – (i) changes in RF; (ii) changes in components and costs); changes in financing plan; and (iv) reallocation between disbursement categories • Restructuring (July 2017 and September 2018) – reallocation between disbursement categories. In 2018, this reallocation was driven by further exchange rate losses (SDR relative to USD) and ongoing GOA financial constraints. The reallocation aimed to ensure smooth disbursements, without potential delays due to GOA payments (as part of the pari-passu arrangements).
Rationale for Changes and Their Implication on the Original Theory of Change 28. The overall theory of change is not impacted by the changes in activities, except the creation of the AMU was removed from the list of activities. Additionally, over the course of the project, a number of unanticipated long-term impacts were observed, including: increased GOA prioritization of institutional strengthening in parallel with sector investments12 as well as sector-wide implementation of new technical standards (see further detail in the efficacy evaluation), procurement (see further details in the procurement summary) and safeguards (see further details in the safeguards overview and Annex 9).
II. OUTCOME A. RELEVANCE OF PDOs 29. The second of two Country Partnership Strategy (CPS 2014-2016,13 Report No. 76225-AO) pillars is to: “enhance the quality of service delivery and deepen social protection,” with one of its key outcomes being the improvement of sustainable water supply systems (specifically targeting new access to 520,000 people and increasing PWSU financial profitability to 40 percent). The project directly supports this pillar and associated
12 This approach is being replicated under the African Development Bank-financed water sector project (ID: P-AO-E00-005). 13 This CPS was extended past the project closing as a new Country Partnership Framework was still under development.
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outcomes and targets. It also aligns with the Government’s prioritization of decentralization. As stated in the project PAD, the project prioritized investments in water supply, and did not support sanitation, in order to prevent over-complicating the project and given the GOA was receiving support for sanitation from other donors (including the African Development Bank (AfDB), the Government of China and the European Union). 30. The CPS also has a foundational (i.e., cross-cutting) pillar to support “building human and institutional capacity.” This project also directly supports this pillar through its range of capacity building and institutional support activities. The CPS also puts strong emphasis on climate mitigation and adaptation, which the project supports through its investments in WRM institutions and the country’s hydrometric network and M&E system. 31. The project was also aligned with GOA’s capital investment program that aimed to rehabilitate major works (including treatment facilities, pumping stations, transmission mains and distribution networks in major urban areas). As the GOA’s Government Plan 2009-2012 (Programa de Governo) indicated, GOA is committed to the proposed AF so that it can achieve both its stated policy of providing improved water services and its Millennium Development Goals targets. This Program also included prioritizing sustainability of service provision for newly constructed infrastructure, including appropriate planning and policy for long-term financial viability of the sector. The project continues to be aligned with GOA priorities, as evidenced by its alignment with the GOA’s current National Water Plan (Plano Nacional da Água, PNA) in terms of the prioritization of institutional strengthening (with a view towards long-term sustainability for the sector), support to improved financial sustainability of service provision, and the type of technical approaches used (Presidential Decree 126-17). 32. Additionally, at the time of the AF, the project was well aligned with the three pillars of the Interim Strategy Note (April 26, 2007, Report No. 39394), namely: (i) strengthening public sector management and government institutional capacity; (ii) supporting the rebuilding of critical infrastructure and improving service delivery for poverty reduction; and (iii) promoting the growth of non-mineral sectors.
Assessment of Relevance of PDOs and Rating 33. Overall, each part of the project PDO is both aligned with the existing CPS and GOA’s own priorities, as was also aligned with the equivalent documents and strategies over the life of the project. Consequently, the relevance of the PDO is rated High.
B. ACHIEVEMENT OF PDOs (EFFICACY) Assessment of Achievement of Each Objective/Outcome 34. The PDO can be split into four sub-objectives, namely: strengthened institutional capacity of sector agencies, strengthened efficiency of sector agencies, improved access to water services and improved reliability of water services.14 These four sub-objectives will be considered separately.
Strengthened Institutional Capacity 35. Post-restructurings:15 Many institutions were supported by the project including MINEA and DNA, seven PWSUs (benefitting from construction, with 6 benefiting from MCs), IRSEA and INRH. The project management skills within
14 In line with the PAD’s emphasis on supporting a long-term view of sector development, this project placed institutional strengthening and strengthened efficiency of sector agencies on level with the access and reliability objectives. This equal prioritization is furthered reflected in the structuring of the project components and activities. Admittedly the first two will support achievement of the other two, but, given the significantly underdeveloped state of the sector at appraisal, the GOA and World Bank agreed to prioritize institutional strengthening as part of the PDO. This approach was confirmed through ICR interviews with key project team members who were involved in preparation and implementation. 15 This section assesses achievement of the final version of the PDO and RF.
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DNA have been strengthened through the project Financial and Contract Management Unit (FCMU), who was, at times, responsible for non-project specific sector investments as well (RP 2017, Report No. RES28895). Through financing the placement of previous FCMU staff within DNA, the project supported further knowledge sharing in the institutions, specifically on environmental and social safeguards, procurement, and technical norms/standards for the sector. The procurement knowledge exchange also resulted in broader use of the standard bidding documents developed under the project. 36. The project aimed to support six PWSUs and supported seven (through investments in the treatment systems and networks and through MCs, in six of the seven), which means the objective was 117 percent achieved. Additionally, all of the project PWSUs carried out independent financial and performance audits, which exceeds the 60 percent target (167 percent achieved). The project also aimed to create and strengthen five utilities and succeeded in creating and strengthening six (120 percent achieved) through management contracting arrangements that provided specific TA in core areas of utility technical and financial management. The GOA has further scaled up this approach and created an additional seven PWSUs, now being supported by the AfDB-financed project. 37. The Framework for “Institute for Water Resource Management” was defined and agreed to by stakeholders (achieved, Presidential Decree 205/14, August 2014 and Executive Decree 43/16, January 2016). All of the rehabilitated hydrometric stations (60 stations, of which 35 were financed under the project) are now recording data for INRH on a regular basis, exceeding the targeted 70 percent (143 percent achieved). These data are being collected and analyzed using the HYDRASTA data system, and data from this system has been used to inform the PNA (Presidential Decree 126/17, June 2017), the National Emergency Plan for Water (Presidential Decree 9/13, January 2013), and the General Plan for Development and Use of Water Resources of the Cuanza River Basin (PGDURH-Cuanza, approved in February 2018). These collective achievements demonstrate achievement of the project’s intermediate results indicator to develop a Management Information System (MIS) incorporating sectoral information from river basins supporting the preparation of water resources integrated management plans (achieved). 38. Also, the regulatory agency, IRSEA, was established (through the addition of a water office into the institute of the electricity regulator, RP 2017) and operational, as evidenced by its development of new provincial tariff regime (Joint Executive Decree no. 230/18, June 2018).
39. Post-AF:16 The scope of activities was not significantly changed for this activity, though certain targets were revised, and the creation of the proposed AMU was still part of the RF at this stage. The creation of the AMU was not achieved, as this activity was later deemed undesirable for the sector (RP 2016: Report No. RES20848) and this role has been taken over by the PWSUs. The project supported seven out of nine targeted PWSUs (78 percent achieved) and 100 percent of PWSUs carried out audits (152 percent achieved, relative to the original target of 66 percent of PWSUs). Additionally, 100 percent of the originally 80 percent of hydromet stations are providing data (125 percent achieved).
40. Original Project:17 The scope of activities for this sub-objective was not changed between the project’s original design and the AF and the indicators were not changed, except to further clarify certain indicators included in the PAD.
Strengthened Efficiency18 of Sector Agencies 41. Post-restructurings: Efficiency of sector agencies is partly linked to the creation of entities whose mandates includes prioritization of efficiency within the sector (IRSEA, INRH) and the improved human capacity of these
16 This section assesses achievement of the version of the PDO and RF that were approved as part of the AF, highlighting differences between these indicators and targets and those of the final version of the PDO and RF. 17 This section assesses achievement of the original PDO and RF, highlighting differences between these indicators and targets and those approved during the AF. 18 As a reminder, efficiency here refers to financial efficiency of the sector (see footnote 7).
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institutions (supported through the first sub-objective). Efficiency was further strengthened through financial and operational improvements in the PWSUs and through the introduction of a new water tariff.19 At the end of the project, 85.7 percent of the project PWSUs had achieved annual profitability (based on annual targets, verified by independent audits), which exceeded the targeted 60 percent (143 percent achieved relative to final target). 42. The project also supported improved financial efficiency in the sector through the use of non-traditional design and construction approaches for water supply, which used simplified design procedures and lower-cost construction options (which also allowed the project to reach more households). This approach, further described below, has now become the standard approach for investments in the sector. 43. Efficiency of the PWSUs is further evidenced in the indicators used within the MCs. Annex 7 summarizes these results, but in short, staff per 1000 connections (a standard sector indicator) improved, with five of the six beneficiary PWSUs now having a ratio between three and eight (with an overall average of 6.5, which is down from an average of 13.5), all six utilities have a cost coverage ratio greater than 1 (indicating they are able to cover their operational costs through billings, average 2.09 up from 0.74), and billing ratios averaging 58 percent (up from 14 percent). As compared against other PWSUs in Angola, these utilities are also high performing. The WSIDP PWSUs have more customers (14,100 compared to 8,200), provide service for more hours per day (20.3 hours compared to 18.1), have a cost recovery ratio that is double that of other PWSUs (2.09 compared to 0.98), and have better staffing ratios (6.5 compared to 12.6).
44. Post-AF: The target for annual profitability of PWSUs was previously higher at 66 percent, but even relative to this target the project exceeded the goal (130 percent achieved).
45. Original Project: The revision of the tariff policy for delivery of water supply and sanitation services was approved and operational (Joint Executive Decree no. 230/18, June 2018), though this indicator was later removed from the RF (AF 2011).
Improved Access to Water Services 46. Post-restructurings: The project brought new piped water access to 108,903 households, which is equivalent to roughly 696,976 people (annex 8 shows a breakdown of household connections by city). An additional 28,300 households (an estimated 181,120 people) benefited from improved service quality due to improvements and rehabilitations undertaken in networks, at treatment plants and the operational improvements within the PWSUs. In total, the project benefited an estimated 878,096 beneficiaries, against a target of 704,000 (125 percent achieved), of which 50 percent are female (achieved). The project aimed to provide access to improved water supply to 704,000 people (99.0 percent achieved) through 110,000 new connections (99 percent). An additional 3,300 connections have been completed under the new Second Water Sector Institutional Development Project (WSIDP-2, P151224) project (with planning, design and supervision financed by WSIDP), as the WSIDP did not have sufficient funds for completing these connections. The project exceeded targets for length of network installed, with 1,040 km installed relative to a target of 900 km (116 percent achieved). 47. The project was able to achieve these considerable results, even in light of significant exchange rate losses due to the construction approach used for the household connections. The project installed clusters of household connections allowing for the use of smaller pipes and shorter distances of pipe being necessary overall (an approach akin to condominial designs used in other countries, most notably Brazil). This approach was implemented during the second batch of contracts, as part of the AF. As further explained in the procurement summary, the revised approach allowed for a lower per connection cost – around US$730 per connection during the second batch, relative to US$1,160
19 IRSEA is in the process of doing a thorough analysis of the new tariff, both its impacts on PWSU financial performance as well as its impacts on affordability, especially for the poorest households.
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per connection during the first batch (based on a procurement analysis by the FCMU and ICR author).
48. Post-AF: Following the AF, the project aimed to benefit 840,000 people (105 percent achieved), by installing 132,000 new household connections (83 percent achieved) and to rehabilitate or construct 643 km of network (162 percent achieved).
49. Original Project: The project originally aimed to provide 72,000 households with connections to the piped network managed by utilities in pilot cities (151 percent achieved), by rehabilitating 240 km of network (434 percent achieved).
Improved Reliability of Water Services 50. Post-restructurings and Post-AF: Following the AF, this portion of the PDO was dropped.
51. Original Project: The original project did not include any specific indicators on this portion of the PDO, nor did the PAD provide a detailed definition of reliability. However, as part of the MCs, the hours of service were tracked for six PWSUs, and this is a standard metric of reliability of water supply. The baseline figures estimate that service was provided on average for 57 percent of the time, though this increased to 85 percent (roughly 20.3 hours per day) by project closing. These improvements were accomplished through targeted network improvements and investments in treatment facilities, as well as improvements in operating practices by the utilities. Additionally, under the project, an estimated 181,120 people benefited from improved reliability of services due to improvements and rehabilitations completed in the existing piped networks.
Justification of Overall Efficacy Rating 52. Overall, based on the PAD, the project’s efficacy was rated as High; based on the AF (2011) the efficacy was Substantial; and based on the 2016 restructuring the efficacy was High. Annex 10 shows a table of progress towards the PDO and intermediate indicators at each stage of the project. Table 4 details the component-level efficacy ratings based on each version of the project PDO/RF.
C. EFFICIENCY Assessment of Efficiency and Rating 53. The efficiency is assessed based on the economic rate of return (ERR) and the net present value (NPV) of the project. The ICR replicated the economic and financial analyses performed at appraisal (both the original project’s appraisal and the appraisal of the AF). The analysis was updated to reflect actual disbursement figures and PWSU performance data (where available). Additionally, health impact estimates were updated based on population figures from the 2014 census and updated MICS/DHS data,20 and wage estimates were updated based on the 2018/2019 Angolan Expenditure, Revenue and Employment Survey (Inquérito de Despesas, Receitas e Emprego de Angola). This analysis focuses on the economic costs and benefits of the water supply activities, as the benefits of the institutional strengthening are difficult to quantify. Thus, the economic and financial analysis considers US$197 million of the disbursed US$219 million (90.0 percent) as well as the ongoing operation and maintenance costs incurred by the PWSUs. The analysis conducted at the time of the ICR found that the project’s economic rate of return is 17.81 percent,
20 MICS – UNICEF has been conducting Multiple Indicator Cluster Surveys worldwide since 1995 to gather data on women and children. These datasets are used heavily for Sustainable Development Goal (SDG) tracking, especially for water supply. DHS - Demographic and Health Surveys are nationally representative household surveys conducted by USAID and cover population, health and nutrition. These datasets are also used for tracking the SDGs for water supply.
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which is considerably above the 6 percent discount rate used (per Bank guidelines) and in range with what is expected in the sector. Similarly, the net present value (NPV) of the project is estimated at US$198.92 million. These estimates are conservative estimates as they do not consider all of the health benefits that are resulting from the investments, but instead only include those that are possible to quantify at the time of the ICR. Table 3: Summary of Economic Analysis Results PAD AF (2011) Project Closing (2019) Economic NPV (US$ million) 42.93 37.55 198.92 ERR (%) 19.3 14.5 17.81
54. Table 3 shows a summary of the results of the economic analysis based on the PAD, the AF (2011) and the project closing/ICR period. Annex 4 contains a detailed description of the methodology used for this analysis. 55. In addition to this qualitative analysis, overall, costs for the project activities ended up exceeding the original estimates, as construction material and labor costs rose significantly over the course of the project (RP 2016), but nonetheless, expected outputs were delivered by innovating design and construction approaches. Some new activities were also added – most significantly additional works on treatment plants and networks and more extensive than anticipated rehabilitation of hydrometric stations. In both cases, part of the reason for the higher than expected costs was due to the limited baseline information available in Angola at the time of the project’s original appraisal (due to its post-conflict status). As new information became available, estimates were regularly updated and refined. 56. However, the delays in the project’s effectiveness, some early delays in construction, and the overall extension of the project’s length also negatively impacted the efficiency of the project. The extension of project duration was justified as part of the AF which increased the scale of planned activities. 57. The efficiency also benefited from low staff turnover within the FCMU and speedy resolution of procurement challenges – including increased efficiency of procurement during the second phase of works (see procurement analysis below). Further, as described above, the project’s approach to the design and construction of networks provided considerable cost savings which are the reason the project was able to achieve its targets even with the considerable exchange rate losses. 58. One of the most significant impacts on the project’s efficiency was the devaluation of the SDR. The original credit was approved for SDR 35 million (equivalent, at that time, to US$57 million) and the AF was approved for SDR 74.1 million (equivalent, at that time, to US$120 million). At the time of project closing, the two loans combined were estimated to be worth US$27.6 million less (15.6 percent losses) than the amounts that were signed. During the same time period, the Angolan Kwanza also devaluated against the US dollar, but this did not fully offset the losses associated with the SDR devaluation (since the majority of contracts were signed in foreign currency). 59. The overall efficiency rating is Substantial as the efficiency is what is expected in the sector. Even though challenges were faced during the project’s implementation, the project was able to deliver the intended results in an economically efficient way, as evidenced by the strong NPV and ERR.
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D. JUSTIFICATION OF OVERALL OUTCOME RATING Table 4: Summary of Project Ratings Original After AF After restructuring (2008) (2011) (2016) Relevance H Efficacy Overall H S H Institutional capacity H S H Institutional efficiency H H H Improve access H S S Improve reliability H Efficiency S Overall Rating HS S HS Amount disbursed 2.17 M 56.75 M 94.52M Weighting 1.41% 36.99% 61.60% Weighted Score 0.08 1.85 3.70 Total score 5.63 Overall Rating Highly Satisfactory
60. Table 4 summarizes the project ratings, using the spilt rating system. As the table shows, the overall rating based on the original PAD is Highly Satisfactory, the rating based on the 2011 AF paper is Satisfactory, and the rating at closing is Highly Satisfactory. Based on the weightings (i.e., percent of financing disbursed at each stage), the overall project rating is Highly Satisfactory. This rating reflects the project’s alignment with government and Bank priorities for Angola, its achievement of the PDO, and the economic efficiency of the supported project activities.
E. OTHER OUTCOMES AND IMPACTS Gender 61. Though not quantified under the project, the financing of household water connections is anticipated to bring significant reductions in water fetching burdens. This burden falls disproportionately on women and girls, and thus the project has provided significant positive benefits to women and girls in the project communities. Additionally, in support of female employment opportunities, the PWSUs have undertaken initial gender assessments, to assess their human resources policies around gender and existing diversity within the utilities. The results of these assessments informed a large global study on women in water utilities (World Bank 2019). Under WSIDP-2, there are now plans to implement activities to address some of the identified gaps/challenges identified.
Institutional Strengthening 62. Institutional Strengthening was at the heart of this project and integrated into all activities through a mix of TA, on the job training, and knowledge-exchange experiences. This support was provided to national institutions (MINEA, DNA, IRSEA and INRH) as well as provincial institutions (PWSUs and their Boards of Directors). In addition to strengthening these institutions directly, the project has provided a long-term benefit to institutional strengthening as DNA has taken on board the “institutions first” approach in their other sectoral engagement. For instance, under the existing AfDB-financed water sector project, there are similar institutional strengthening activities imbedded in the project, particularly for strengthening seven additional PWSUs.
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Mobilizing Private Sector Financing 63. The project significantly improved the financial and operational efficiency of the PWSUs, including resulting in six of the PWSUs having operating cost coverage (OCC) ratios averaging 2.09 (exceeding the targeted 1.2), which shows they are able to cover their operational costs. In the long run, these improvements will make the utilities more attractive to both private sector engagement and commercial financing. The project is also responsible for creating the ongoing data collections systems that will continue to track these indicators. Similarly, reductions in the staffing have made the PWSUs more efficiency, which further maximizing finance for development. Annex 7 includes a detailed summary of utility performance metrics.
Poverty Reduction and Shared Prosperity 64. The project targeted poor households by targeting peri-urban areas. More specifically, the second phase of works contracts prioritized investments in peri-urban areas, which are often less formalized. These areas create unique construction challenges, but the project used Bank financing to promote investments in these areas and provide proof of concept for a design and construction methodology that is cost-effective for investing in these areas.
Other Unintended Outcomes and Impacts 65. The success of the project has led the GOA to replicate the approach in other projects in the sector. Further, the approach has attracted other donors to the sector, namely the AfDB has a project modelled strongly off of WSIDP and for WSIDP-2, the French Development Agency (Agence Française de Développement) is a co-financer. Further, the World Bank (WB) has recently approved the first IBRD guarantee in the water sector for support to the sector in Luanda (Luanda Bita Water Supply Guarantee Project, P163572) and the WB is supporting a pilot PPP arrangement in Cabinda.
III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 66. The project benefited from a clearly defined scope of activities, e.g., choosing to prioritize secondary cities21 and focus on water supply (PAD). Additionally, the project objectives and RF were clearly defined and appropriately ambitious, except the improved reliability of water services, which was not well defined, particularly within the RF. The project included a clear chain of activities to support institutional strengthening and capacity building aimed at improving service quality, with service access increased through direct infrastructure investments. These activities ensured both short-term investments were made, but also capacity building activities were incorporated to ensure medium- and long-term sustainability of investments. Additionally, in parallel, long-term sector planning was supported through investments in national institutions and WRM planning. 67. Angola’s long civil war adversely impacted data availability at project preparation, but the government and project teams collected what data were available, and the baseline assessments generally provided sufficient information and detail for project planning/design. At appraisal, the GOA and WB teams also appropriately flagged a number of potential risks to the project and ensured the project was designed to
21 This prioritization was well justified during project preparation. Given the advancements made during the project, the GOA has recently expanded its focus to include investments in Luanda, the capital. This support includes a recently approved World Bank Guarantee to support the construction of a new drinking water treatment plant and associated networks in Luanda.
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mitigate these risks, to the extent possible. For example, given human resource capacity limitations, the GOA prioritized hiring a strong, experienced implementing team to oversee the project and prevent unnecessary delays.
B. KEY FACTORS DURING IMPLEMENTATION 68. The project significantly benefited from strong government commitment and clear leadership, which the PAD had highlighted as being important in the context of a post-conflict country and what was initially an underdeveloped sector. This support was strongly evidenced through the passing of a large number of Presidential Decrees to support sector institutions and key project activities. The GOA support was further evidenced through the increased counterpart financing that the project received (US$66.5 million, compared to the originally committed US$56.2 million). 69. The government support also included a commitment to engaging highly qualified/experienced and high-capacity technical experts for project implementation. In the early stages of the project, the FCMU was also responsible for other government sector investments. Given the competing demands on their time, it was eventually agreed to have the FCMU focus solely on WISDP, and to create a separate implementing unit for other projects. In parallel, the WSIDP, financed four technical specialists within the DNA, who provided TA to DNA and capacity building support to the directorate. By engaging these experts in the FCMU, the GOA was able to ensure both that the project delivered desired results and that the GOA benefitted from knowledge sharing from the FCMU with MINEA/DNA. 70. The project similarly benefited from close coordination between the GOA and WB teams, as well as within/across the many institutions and actors involved in the project. The continuity of the task team leader (TTL) leading the Bank project team (one TTL during preparation and the beginning of implementation followed by one handover to a TTL who was already working on the project) further supported smooth implementation and close supervision. The FCMU was instrumental in providing this coordinating role for the project. Though there were some staffing challenges in certain agencies (most notably in INRH and IRSEA), in the end, the project was able to achieve its goals and the beneficiary institutions became operational and completed key activities in line with their mandates. 71. As further detailed in the monitoring and evaluation (M&E) overview, the project was also able to adapt as needed, in part thanks to a strong M&E framework that was well implemented. By tracking key project activities and outcomes, the project teams were able to re-prioritize activities, for example, following the exchange rate losses. This flexibility was also possible thanks to close Bank supervision, which helped allow for quick resolution of problems (e.g., rare procurement issues were generally resolved within a few months (ISR5, ISR6). 72. The long effectiveness delay affected the project’s economic efficiency, but specific project activities were not adversely impacted – except indirectly through the exchange rate losses and project activity cost overruns. This delay was largely due to: (i) parliamentary election in 2008 and associated government restructuring; (ii) budgetary and fiscal problems in 2008/2009 due to the international financial crisis and sharp decline in oil prices; and (iii) the adoption of a new Constitution in 2010 (ISR5).
IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 73. The project benefited from an originally designed theory of change (implicit in the PAD) that was clear and
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strong and linked each activity and indicator with project objectives. The project M&E required development of new in- country systems for monitoring and tracking water supply and WRM activities within the sector. This mix of data collection activities was planned to be supported through numerous project-financed TA activities, to ensure proper and appropriate development of the M&E systems. 74. However, specifically for project activities, the originally designed RF had some gaps, most notably a lack of indicators to track the reliability of water supply. 75. Overall, the project’s original Theory of Change was clear and strong. The original RF aligned well with the Theory of Change, though the first parts of the PDO were less represented in the original RF.
M&E Implementation 76. The project RF was well tracked and regularly updated as part of ongoing project supervision, and, as necessary, the RF was revised (in 2011 and 2016) to reflect changes in project priorities; changes in core indicators at the Bank; and changes in targets, largely linked to cost constraints. In 2011, some of the project indicators were revised slightly to clarify scope and data collection methodologies. These changes were made prior to commencing any significant project activities. The changes made in 2016 were based on experiences with the indicators to date, reflecting the utility of the M&E framework. 77. Data collection for the PWSU performance was strong, benefitting significantly from the TA/MCs, which provided complimentary ongoing data collection that was used to provide targeted support to the each PWSU. Annex 7 provides further details on the type of data tracked under the MCs. These indicators were closely tracked during all supervision missions and allowed the World Bank team to provide targeted feedback and support to individual PWSUs.
M&E Utilization 78. The M&E system tracked the breadth of activities supported under the project, which allowed for close supervision of not only the infrastructure investments, but also the institutional strengthening. The M&E system was also used to re-prioritize activities at different stages in the project. For example, the indicator to see the AMU established was removed due to shifting sector priorities, and lack of progress on its creation. As the AMU would no longer have supported the PDO, it was removed. The first batch of works contracts were revised – and the second batch of works contracts used the revised methodology – when it was realized, thanks to the M&E framework, that the project objectives would not be achieved using the original approach. 79. The PWSU MCs were also revised to add support to the PWSUs for the annual financial audits.22 The MCs were used to help the PWSUs produce the necessary auditable financial statements that were required to meet the targeted financial audits in the RF.
Justification of Overall Rating of Quality of M&E 80. Though there were some shortcomings in the originally designed M&E framework, these shortcomings were rectified during implementation. Throughout the project the M&E system, not just the project RF, were used to regularly track progress of key activities, both in terms of progress relative to the target and quality of ongoing activities. Consequently, the M&E rating is Substantial overall.
B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 81. Environmental and Social Safeguards: The project was Category B and originally triggered the following
22 The audits were carried out by an independent auditor, but the management contract firms supported the PWSUs in preparing the necessary documentation and making any required improvements in financial systems.
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safeguards: OP/BP 4.01 Environmental Assessment and OP/BP 4.12 Involuntary Resettlement. The project complied with all applicable environmental and social safeguards. In line with OP/BP 4.01, Environmental and Social Management Plans were developed for 12 activities (see Annex 9), and an Environmental and Social Impact Assessment was developed for N’dalatando (during preparation of WSIDP-2). No Resettlement Action Plans were developed, as none were required under the Resettlement Policy Framework developed for the project. Throughout the implementation of the project, the environmental and social safeguards were both rated Satisfactory (ISR1 through ISR22). 82. As part of a restructuring in May 2012 (Report No. 6578-AO), OP/BP 7.50 Projects on International Waterways was triggered. This safeguard was triggered because of a modification of the water intake in Luena, which is along the Luena River, a tributary of the Zambezi River. At appraisal, this safeguard was not triggered because based on the original design, the project was not intended to finance civil works at the intake. On November 22, 2011, the Africa Region Vice President approved an exception to the notification requirement under Paragraph 7(a) of OP 7.50. 83. During project implementation, there was a fatal accident in Cuito (one of the beneficiary cities). As further described in Annex 9, while manually excavating a trench for pipeline installation, an explosive device, lying underneath the roots of a tree, detonated when a worker hit it with the excavating tool. One worker passed away due to injuries before arriving at the hospital, and two other workers received medical attention and were discharged. Following the incident, the Bank commissioned an independent investigation that found that the contractor had valid insurance, workers were equipped with all required safety gear, and the guidelines in the Safety and Health Plan were all followed. Further, prior to the beginning of works, all of the working areas in Cuito had been demined, cleared and certified as mine-free and were thus considered safe by the National Demining Institute (Instituto Nacional de Desminagem, INAD). The investigation also provided a series of recommendations that were quickly implemented, and well documented, allowing for safe resumption of works (ISR 19). 84. Though prior to the Bank’s requirement that all projects include a grievance redress mechanism (GRM), the project incorporated grievance redress systems into project contracts. Monthly reports from the contractors included a specific section for grievances, indicating the location where the grievance was redressed, the name of the compliant (where applicable), the grievance description, and the date the grievance was received. The report also included photos (where relevant) and a description of how the grievances were resolved.
85. Financial Management (FM) and Procurement: The project generally complied with FM requirements, and, except in the early stages of the project, the FM performance was rated Satisfactory. In ISR3, the FM rating was lowered to Moderately Satisfactory as DNA was not maintaining a cashbook and bank reconciliations were not prepared on a monthly basis. In ISR5, this rating was raised to Satisfactory as the FM conditions of effectiveness were successfully implemented and the FCMU was taking appropriate actions to implement FM dated conventions. 86. The project also complied with procurement requirements and showed significant innovation in procurement activities, in support of achieving the project development objective. The procurement performance was rated as Moderately Satisfactory or better throughout project implementation. In the early years of the project, the procurement was often delayed (i.e., activities were behind schedule relative to the procurement plan, especially for component 2) (ISR9) though these issues were ultimately resolved (ISR13). As noted in ISR13, the FCMU’s use of close tracking of procurement and contract management activities, allowed for better implementation in the second half of the project. 87. Procurement for the project was broadly split into a first batch of works contracts and a second batch. At the close of the project an analysis was done of the contracts under the first batch compared with contracts
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under the second batch. Compared to the first batch of contracts, the length of delays decreased substantially from just over 24 months on average (Batch 1) to less than 8 months (Batch 2). Though the number of contracts requiring adjustments did not change, the cost of adjustments decreased dramatically from 16.0 percent of the total costs (Batch 1) to 7.2 percent of the costs (Batch 2). The cost of amendments also decreased significantly from 32 percent to 10.5 percent. The net effect was the first batch contracts cost around 132 percent of their original value, compared to just 106.4 percent during the second batch. 88. Most compellingly, the price per connection dropped dramatically from around US$1,160 per connection to US$730/connection. In Lubango and N'dalatando for example, the cost of a household connection dropped by nearly 50 percent (45.7 percent and 49.1 percent respectively).
C. BANK PERFORMANCE Quality at Entry 89. The original technical assessments done at appraisal to inform the project design were generally strong. However, there was a lack of assessment of the hydrometric stations, which resulted in an overestimation of what was possible under the project. Additionally, the appraisal economic analysis made overly optimistic assumptions about the benefits, particularly those linked to health. In the AF economic analysis, this same approach was taken, and certain figures from the original analysis appear to have been misused. As the project’s economic efficiency is Satisfactory at closing, these problems were clearly resolved during project implementation. 90. The baseline environmental and fiduciary assessments were robust and laid solid groundwork for the beginning of project activities. The appraisal institutional and policy assessments were also robust and allowed for appropriate planning around TA and capacity building needs (with minor revisions needed, as would be expected). The risk assessment was fair and accurate. Lastly, both the implementation arrangements and M&E arrangements proved appropriate for the project overall. 91. Overall, these short comings were relatively minor as it was easy to adjust the project and still attain the PDO, even in light of these shortcomings. Further, in the post-conflict context of the project preparation period, it is to be expected that some assessments will be less complete than in other contexts.
Quality of Supervision 92. The Bank team provided strong supervision support throughout the project. The team remained responsive to client demand, for example in bringing in the AF to support scaling up of the project activities and to address GOA challenges with the pari-passu arrangements. 93. ISRs were detailed and reflected close supervision of the full range of project activities, while remaining focused on achievement of project objectives. The ISRs also provided candid reflections and fair ratings on project implementation (as seen in ISR2’s rating downgrading due to the delays already seen at that point). The Bank team’s close supervision also allowed for prioritization of key messages with Bank management and the GOA. For example, as flagged in ISR17 and ISR18, staffing of key sector institutions, including DNA, IRSEA and INRH was limited at points resulting in a risk that project TA activities would not have the intended capacity building impacts. 94. The Bank safeguards, financial management and procurement teams also provided close support throughout implementation. For instance, following the fatal accident in Cuito (further detailed in the above section on social safeguards and annex 9), the Bank team mobilized additional support – through staff, experts and additional training – to ensure all appropriate assessments were completed, necessary changes in project procedures were implemented, and all relevant personnel had the necessary training.
Justification of Overall Rating of Bank Performance 95. The Bank’s performance was Satisfactory given strong performance during supervision with only minor
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shortcomings at entry.
D. RISK TO DEVELOPMENT OUTCOME 96. The risk to the development outcome is minimized due to ongoing support to the same sector institutions – including strengthened support to selected PWSUs, improved MCs, and continued support to the national entities, provided under WSIDP-2 (P151224). This support will help ensure that institutional strengthening and improved efficiency will continue and support to the PWSUs will support the long-term sustainability of new household connections and networks. Additionally, the project put in place key sector institutions (e.g., INRH, IRSEA and the PWSUs), largely with the aim of supporting long-term sustainability of the sector. 97. The project supported IRSEA in successfully revising the provincial tariffs. However, as noted in the July 2018 AM, the existing tariff approval process requires review to ensure efficiency of the process and minimize political interference with IRSEA’s technical review. However, the revised tariff structure and financial and operational improvements of the PWSUs will both further support long-term financial viability of the sector. 98. The ongoing concern regarding risk of understaffing in key institutions (ISR21) continues to be addressed under WSIDP-2, but if this issue is not fully resolved, or if staff turnover increases, then the long-term sustainability of the development objectives will be at risk. 99. Additionally, some of the PWSUs currently rely on software that is not open-source and consequently they risk losing access to this software or to the newest versions of the software. WSIDP-2 is working to resolve this issue through the second-generation MCs.
V. LESSONS AND RECOMMENDATIONS 100. The WSIDP project has had significant, long-lasting impacts on the Angolan water sector. The sector today has advanced to levels exceeding the expectations of the original project. There is now institutional clarity at national and provincial levels, institutions with the capacity to carry out their mandates, improved financial efficiency in provincial utilities, and a large number of households with improved access to water supply services. There is much to learn from the achievements of this project. 101. The success of this project lies in 1) strong commitment from the GOA, and other counterparts, and continuity within the FCMU and Bank teams; and 2) its well-structured theory of change that allowed for short-term investments to address water supply access constraints as well as investments in sector institutions and institutional reforms aimed at ensuring long-term sustainability of new assets and high- quality service provision. Such institutional strengthening requires a long-term perspective and careful consideration of how to stage activities and investments, to allow time for local capacity to build, while ensuring successful implementation. This mix of objectives was achieved largely thanks to the following: a. Utilities were supported throughout the project through MCs that incorporated key knowledge exchange and TA activities. This approach allowed PWSU staff to learn by doing, under the supervision of international experts. Similar TA arrangements were made to support INRH. b. Institutional strengthening of government agencies and project implementation were separate objectives. This allowed the use of internationally competitive implementors to oversee the project activities, while using project resources to support the short, medium and long-term capacity building activities needed across sector institutions. In a comparatively young sector, this type of approach is critical. c. Adaptability of project design allowed the GOA to re-prioritize, in line with the PDO, during project implementation. This flexibility was only possible, and effective, thanks to the strong M&E – both the project’s own RF as well as complementary data gathering (e.g., INRH’s monitoring system, the MC indicators, etc.)
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d. Strong engagement from the World Bank with the GOA during preparation of the project was used to not only ensure good design and a smoothly transition into implementation, but also built GOA ownership and commitment to the project. 102. The project was able to provide access to the most difficult to reach urban/peri-urban neighborhoods by using innovative design and construction approaches. These approaches also provided significant cost savings, smoother procurement processes, and thus increased the number of households who benefitted. These approaches are now being used as the standard approach under WSIDP-2. 103. There are also key lessons relevant for the Angola country portfolio as well as areas for synergistic benefits. First the Angola Electricity Sector Improvement Project (P166805), under preparation, is aiming to expand access to electricity services and improve sector performance (e.g., by minimizing losses, improving bill collection, etc.). These aims are similar to those of WSIDP and WSIDP-2, and the electricity project would benefit from the experiences of WSIDP, especially with respect to utility performance improvements through MCs and innovative design and procurement options. Additionally, the existing Angola Health System Performance Strengthening Project (P160948) and Local Development Project (P105101) have project interventions in Malanje, Uíge, Luena, and Huambo (among other locations). The Health project can benefit from improved water supply functioning to support proper water supply installations in health facilities. The Local Development Project can enhance water supply investments and further expand network access under its component on local . social and economic infrastructure, in line with its indicator on water supply access.
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ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS
A. RESULTS INDICATORS
A.1 PDO Indicators
Objective/Outcome: Strengthen the institutional capacity and efficiency of the Recipient's agencies in the water sector Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of PWSUs Percentage 0.00 66.00 60.00 85.70 achieving annual profitability (Phase 1 cities) 31-Jul-2008 30-Jun-2016 30-Jun-2019 09-Oct-2019
Comments (achievements against targets): Following the 2016 restructuring, this target was readjusted given the decrease in the number of targeted PWSUs. For each o f the 4 years during which this indicator was tracked, utility operating cost coverage ratios were compared against the annual target (which changed over time). In 2016, four of the four PWSUs met the target; in 2017, five of the five met the target; in 2018, four of six met the target; and in 2019, five of six met the target. In total, 18 of 21 targets were met, which is equal to 85.7 percent. (An alternative would be to take the average of the average, which provides an even higher percentage, 87.5 percent). This indicator was 143% achieved.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion
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Percentage of annual Percentage 0.00 66.00 60.00 100.00 independent financial and performance audits carried 31-Jul-2008 30-Jun-2016 30-Jun-2019 30-Jun-2019 out on PWSUs created by the project
Comments (achievements against targets): This target was revised as part of the 2016 restructuring when the number of targeted utilities changed. This indica tor was 167% achieved.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion RA is established and Text 0 RA is established and RA is established and operational operational operational
31-Jul-2008 30-Jun-2016 09-Oct-2019
Comments (achievements against targets): This was upgraded from an intermediate results indicators to a PDO indicator as part of the 2016 restructuring. The RA has been established (Joint Executive Decree no. 59/16, 16 March 2016) and is operational, as evidenced by its development of a new tariff (Joint Executive Decree no. 230/18, 12 June 2018) that the PWSUs are now using. This indicator was 100% achieved.
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Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of hydrometric Percentage 0.00 80.00 70.00 100.00 stations providing information to INRH 31-Jul-2008 30-Jun-2016 30-Jun-2019 30-Jun-2019
Comments (achievements against targets): This target was revised as part of the 2016 restructuring due to the scaled down nature of the intervention, following the exchange rate losses.
This indicator was 143% achieved.
Objective/Outcome: Improve acces to water service delivery Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Direct project beneficiaries Number 0.00 840000.00 704000.00 878096.00
06-Jun-2011 30-Jun-2016 30-Jun-2019 09-Oct-2019
Female beneficiaries Percentage 0.00 50.00 50.00
01-Jun-2018
Comments (achievements against targets):
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This indicator was added as part of the AF (2011) and then revised as part of the 2016 restructuring. The scaled down ambition was linked to the exchange rate losses. This indicator was 125% achieved. The in dicator on female beneficiaries was 100% achieved.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of people in urban Number 0.00 840000.00 704000.00 696976.00 areas provided with access to Improved Water Sources 06-Jun-2011 30-Jun-2016 30-Jun-2019 09-Oct-2019 under the project
Comments (achievements against targets): This indicator was added as part of the AF 2011 (to replace a previous indicator on number of new connections). At the time of the AF, this was a core sector indicator. The target was revised in 2016, following the exchange rate losses. This indica tor was 99% achieved.
A.2 Intermediate Results Indicators
Component: Development of Institutions in the Water Supply and Sanitation
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion
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Number of water utilities Number 0.00 9.00 6.00 7.00 that the project is supporting 06-Jun-2011 30-Jun-2016 30-Jun-2019 30-Jun-2019
Comments (achievements against targets): The target was revised during the 2016 restructuring, following exchange rate losses. The GOA decided to prioritize engagement in a subset of the original 9 provinces, namely: Huambo, Kuito, Lubango, Luena, Malanje, N'dalatando, and Uíge. This indicator was 117% achieved.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Utility created and Number 0.00 5.00 6.00 strengthened by the project 01-Mar-2016 30-Jun-2019 30-Jun-2019
Comments (achievements against targets): This indicator was adding during the 2016 restructuring. The project supported the creation of and strengthened the performance of utilities in: Uíge, Huambo, Malanje, Lubango, Kuito and N'dalatando. This indicator was 120% achieved.
Component: Water Resources Management
Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at
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Target Completion MIS developed incorporating Text No basin level MIS MIS installed and sectoral information from operational tested river basins supporting the preparation of water 31-Jul-2008 30-Jun-2016 01-Jun-2018 resources integrated management plans
Comments (achievements against targets): The hydromet system was used to inform the National Water Plan (Presidential Decree 126/17, 13 June 2017) and the National Emergency Plan for Water (Presidential Decree 9/13, 31 January 2013). This indicator was 100% achieved.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion
Framework for "Institute for Text No entity staffed and fully entity staffed and fully Water Resource operational operational Management" (INRH) defined and agreed to by 31-Jul-2008 30-Jun-2016 09-Oct-2019 stakeholders within the government
Comments (achievements against targets):
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The INRH was established (Presidential Decree 205/14,15 August 2014) and its procedures were approved (Executive Decree 43/16, 27 January 2016). INRH is operational as evidenced by the progress on the MIS systems. This indicator was 10 0% achieved.
Component: Rehabilitation of Water Supply Systems
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion New piped household water Number 0.00 72000.00 110000.00 108903.00 connections that are resulting from the project 31-Jul-2008 30-Jun-2016 30-Jun-2019 09-Oct-2019 intervention
Comments (achievements against targets): This indicator was originally a PDO indicator, but during the 2016 restructuring, it was replaced with "People in urban areas provided with access to improved water sources under the project," as this is a core sector indicator. The target for this indicator was increased as part of the AF (2011), and then during the 2016 restructuring, it was revised slightly downward following the exchange rate losses. This indicator was 99.0% achieved.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Kilometers of water supply Kilometers 0.00 240.00 900.00 1040.50
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networks installed or 31-Jul-2008 30-Jun-2016 30-Jun-2019 09-Oct-2019 rehabilitated
Comments (achievements against targets): This indicator was revised during the AF (2011) and again revised during the 2016 restructuring. This indicato r was 116% achieved.
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A. KEY OUTPUTS BY COMPONENT
Objective/Outcome 1: Strengthen institutional capacity of Recipient’s agencies in the water sector 1. Percentage of annual independent financial and performance audits carried out on PWSUs created by the project (100%) Outcome Indicators 2. RA is established and operational (achieved) 3. Percentage of hydrometric stations providing information to INRH (100%) 1. Number of water utilities that the project is supporting (7) 2. Utility created and strengthened by the project (6) 3. MIS developed incorporating sectoral information from river basins supporting the preparation of water resources integrated Intermediate Results Indicators management plans (achieved) 4. Framework for "Institute for Water Resource Management" (INRH) defined and agreed to by stakeholders within the government (achieved) 1. Management contracts, with associated TA, in PWSUs Key Outputs by Component 2. Hydrometric stations rehabilitated (linked to the achievement of the Objective/Outcome 1) 3. Creation of Water Resources Management entity (INRH)
Objective/Outcome 2: Strengthen efficiency of Recipient’s agencies in the water sector
1. Percentage of PWSUs achieving annual profitability (Phase 1 cities), Outcome Indicators (85.7%) n/a Intermediate Results Indicators
Key Outputs by Component 1. Creation of PWSUs
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(linked to the achievement of the Objective/Outcome 2) 2. Management contracts, with associated TA, in PWSUs 3. Development of customer cadaster Objective/Outcome 3: Improve access to water service delivery 1. Direct project beneficiaries (878,096), female beneficiaries (50%) Outcome Indicators 2. Number of people in urban areas provided with access to Improved Water Sources under the project (696,976) 1. New piped household water connections that are resulting from the project intervention (108,903) Intermediate Results Indicators 2. Kilometers of water supply networks installed or rehabilitated (1,040.5 km) Key Outputs by Component 1. Network rehabilitation (linked to the achievement of the Objective/Outcome 3) 2. Network expansion Objective/Outcome 4: Improve reliability of water service delivery
Outcome Indicators n/a
Intermediate Results Indicators n/a 1. Customer cadaster 2. Network rehabilitation Key Outputs by Component 3. TA to support PWSUs (linked to the achievement of the Objective/Outcome 4) 4. Creation of water resources management entity (INRH) and associated hydrometric station data collection
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ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION
A. TASK TEAM MEMBERS
Name Role Preparation Luiz Tavares Task Team Leader Eduardo Brito Sr. Counsel Suzanne Morris Sr. Finance Officer Jonathan Nyamukapa Sr. Financial Management Specialist Antonio Chamuco Procurement Specialist Cary Cadman Forestry Specialist Kristine Schwebach Operations Analyst Martin P. Gambrill Senior Water Engineer Fook Chuan Eng Sr. Financial Analyst Lance Morrell Consultant Sandra Giltner Consultant Sixto Requena Consultant Natalino Nascimento Consultant Valentina Zuin Water & Sanitation Analyst Stephan Von Klaudy Lead Infrastructure Specialist Devendra Bajgain Operations Officer Lizmara Kirchner Infrastructure Specialist Theresa Gamulo Procurement Analyst Rildo Santos Program Assistant Andrew Osei Asibey Senior Monitoring and Evaluation Specialist Lara Machuama Team Assistant Marcus Wishart Water Resources Spec. Aberra Zerabruk Consultant Margarida Mendes Team Assistant Inguna Dobraja Sr. Operations Officer Ana Maria Carvalho Communications Associate Rowena J. Martinez Consultant
Supervision/ICR Camilo Lombana Cordoba Task Team Leader(s) Laurent Mehdi Brito, Antonio Laquene Chamuco Procurement Specialist(s)
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Joao Tinga Financial Management Specialist Maria Isabel Nhassengo-Massingue Team Member Jemima T. Sy Team Member, Utility Performance Specialist Kristyna Bishop Social Specialist Isabel Duarte A. Junior Team Member Jesus Alberto Lino Team Member Elvis Teodoro Bernado Langa Team Member Habab Taifour Team Member, WRM Specialist Paulo Jorge Temba Sithoe Environmental Specialist Rebecca Jean Gilsdorf Team Member, ICR author
A. STAFF TIME AND COST
Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY06 1.675 14,616.97 FY07 29.172 214,323.02 FY08 55.994 420,767.37 FY09 1.200 7,001.89
Total 88.04 656,709.25
Supervision/ICR FY09 13.766 167,361.92 FY10 4.925 77,980.04 FY11 10.700 79,432.76 FY12 17.042 135,136.80 FY13 20.213 133,144.04 FY14 18.476 179,310.10 FY15 32.201 184,923.61
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FY16 24.559 123,570.15 FY17 15.609 120,047.73 FY18 22.173 158,971.62 FY19 22.708 195,588.18 FY20 4.396 44,242.87 Total 206.77 1,599,709.82
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ANNEX 3. PROJECT COST BY COMPONENT
Revised Approved Revise Approved Amount at Percentage of Amount (US$M) Amount with Actual at Project Components Approval Final Approved counterpart Closing (US$M)23 (US$M) Amount (%) financing (US$M) Development of Institutions in the Water 21.7 37.32 37.32 30.4 81.5% Supply and Sanitation Water Resources 12.0 10.80 10.80 10.8 100.0% Management Rehabilitation of Water 51.8 141.60 141.60 153.2 108.2% Supply Systems Capacity Building and 11.0 17.18 17.18 25.0 145.5% Change Management Project Preparation 0.8 0.8 0.8 0.8 100.0% Facility Contingencies 15.9 0 24.7 Total 113.2 207.7024 232.4 220.2 94.8
23 These figures include disbursements from the Bank loan as well as GOA contributions, and it is the increase in GOA contribution that resulted in the overall disbursement exceeding the approved amount. 24 The difference between this figure and the column (“Original Amount”) in the datasheet is due to exchange rate losses.
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ANNEX 4. EFFICIENCY ANALYSIS
1. To assess the economic viability of the project, a cost benefit analysis (CBA) of the project activities was completed at appraisal, during the appraisal for the AF and at the time of the ICR. The CBA compares two scenarios: with and without the project activities. The same methodology was used at each stage, but figures were updated based on changes in prevailing conditions as well as based on incorporation of actual project costs and number of realized beneficiaries. The analysis conducted at the time of the ICR found that the project’s economic rate of return is 17.81 percent, which is considerably above the 6 percent discount rate used (per Bank guidelines) and in range with what is expected in the sector. Similarly, the net present value (NPV) of the project is estimated at US$198.92 million. The NPV is considerably higher than previously estimated (at appraisal and at the time of the AF in part due to the change in Bank guidelines from using a 10 percent to a 6 percent discount rate). This analysis focuses on the economic costs and benefits of the water supply activities, as the benefits of the institutional strengthening are difficult to quantify. Thus, the economic and financial analysis considers US$197 million of the disbursed US$219 million (90.0 percent) as well as the ongoing operation and maintenance costs incurred by the PWSUs. Table A4.1 shows the economic performance as estimated at each stage of the project. Table A4.1: Summary of Economic Analysis Results
PAD AF (2011) Project Closing (2019) Economic NPV (US$ million) 42.93 37.55 198.92 ERR (%) 19.3 14.5 17.81
2. The economic analysis considers two main costs and three main benefit streams. The costs are the capital costs incurred (for rehabilitation and network expansion) and the operating costs for these systems (incurred by the PWSUs). The benefits are based on: (i) the incidence of diarrhea for children under 5, (ii) time saved from water fetching and increased water availability, and (iii) efficiency improvements within the PWSUs. 3. The cost estimates are based on actual project costs (taken from the FCMU record keeping and STEP) and operating costs (based on operating costs reported by the PWSUs). The PWSUs were aided by the management contract/TA firms in developing and compiling these estimates, which increases the reliability and accuracy of these figures. The costs of imported goods were adjusted to take account of import taxes. 4. The diarrhea estimates are based on an estimated reduction of cases by 44 percent in households benefiting from a new connection. This does not include diarrheal illness reductions in households benefiting from an improved or rehabilitated connection – as the impacts on diarrheal illness for such a change are unable to be accurately estimated. The health impact estimates were updated based on population figures from the 2014 census and updated MICS/DHS data. The cost per case of diarrhea consider both the cost of medication (US$8 per incident) and the time costs for caring for the child. Time costs are quantified using wage estimates from the 2018/2019 Angolan Expenditure, Revenue and Employment Survey (Inquérito de Despesas, Receitas e Emprego de Angola), which takes the weighted average of reported wages from 10,340 urban workers (including those reporting wages from self-employment, remunerated and non-remunerated work).25 Overall, these health benefit
25 These wage estimates have been further corroborated through comparison with values reported in a number of other
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estimates are conservative estimates as they do not consider all of the health benefits that are resulting from the investments, but instead only include those that are possible to quantify at the time of the ICR. 5. Time savings for water fetching are based on an estimated one round-trip per day per household that takes an average of 25 minutes, each way. This time is quantified using the same method as that used for diarrheal illness. Additionally, utility data shows that households have gone from consuming an average of 10 to 17.5L per capita per day to 50 to 70L per capita per day (with individual utilities all showing an increase). 6. The number of beneficiaries for diarrheal illness and time fetching savings are based on the actual construction investments, by year. 7. As the economic analysis relies on some literature values and estimated impacts that were not able to be directly measured under the project, a rigorous sensitivity analysis was also conducted. The results of this analysis are shown in Table A4.2. 8. In short, the sensitivity analysis shows that even with variations in key estimates, the project is still economically viable. Most importantly, if even a much lower minimum wage rate is used, the economic benefits are still positive. 9. In addition to this qualitative analysis, overall, costs for the project activities ended up exceeding the original estimates, as construction material and labor costs rose significantly over the course of the project (RP 2016), but nonetheless, expected outputs were delivered by innovating design and construction approaches. Some new activities were also added – most significantly additional works on treatment plants and networks and more extensive than anticipated rehabilitation of hydrometric stations. In both cases, part of the reason for the higher than expected costs was due to the limited baseline information available in Angola at the time of the project’s original appraisal (due to its post- conflict status). As new information became available, estimates were regularly updated and refined. 10. However, the delays in the project’s effectiveness and some early delays in construction also negatively impacted the efficiency of the project. In contrast, low staff turnover within the FCMU and speedy resolution of procurement challenges – including increased efficiency of procurement during the second phase of works (see procurement analysis in the main text), improved the efficiency of the project. Further, as described above, the project’s approach to the design and construction of networks provided considerably cost savings which are the reason the project was able to achieve its targets even with the considerable exchange rate losses. 11. One of the most significant impacts on the project’s efficiency was the devaluation of the SDR. The original credit was approved for SDR 35 million (equivalent, at that time, to US$57 million) and the AF was approved for SDR 74.1 million (equivalent, at that time, to US$120 million). At the time of project closing, the two loans combined were estimated to be worth US$27.6 million (15.6 percent losses) less than the amounts that were signed. During the same time period, the Angolan Kwanza also devaluated against the US dollar, but this did not fully offset the losses associated with the SDR devaluation (since the majority of contracts were signed in foreign currency).
sources, including: (1) Guzi, M., & Kahanec, M. (2019). Living Wages Globally. Wage Indicator Foundation, Amsterdam, September 2019. (2) Project Appraisal Document for the Angola Strengthening the National Social Protection System Project. and (3) World Bank data.
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Table A4.2: Sensitivity analysis: impacts on NPV and ERR (light gray for ICR estimates, dark gray for appraisal estimates)
diarrheal illness changes NPV (US$ m) EIRR (%) 25% reduction 167.1 16.2% 44% reduction 198.9 17.8% minimum wage changes NPV (US$ m) EIRR (%) 27,953 AOA/month minimum wage 81.5 11.3% 49,431 AOA/month (low skill wage) 198.9 17.8% US$8/day appraisal estimate 284.3 22.1% household size NPV (US$ m) EIRR (%) 4 people 183.7 17.0% 5 people 198.9 17.8% 6 people (appraisal estimate) 214.2 18.6% operating costs NPV (US$ m) EIRR (%) appraisal cost estimates 177.4 17.3% reported costs 198.9 17.8% discount rate NPV (US$ m) EIRR (%) 6% discount rate 198.9 17.8% 10% discount rate 86.6 17.8% project costs NPV (US$ m) EIRR (%) including institutional investments 173.8 15.0% excluding institutional investments 198.9 17.8%
12. Financial Analysis: In short, the operating cost coverage (OCC) ratios for all six PWSUs are now above 1, so they are able to cover all of their operating costs at present (see table A4.3). This is a significant improvement from the baseline scenario when a number of the utilities were not even able to calculate their costs using standard methodologies.
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Table A4.3: OCC Ratio, by utility
PWSU Baseline OCC (2016) OCC (2019) OCC increased by: N’dalatando n/a 3.83 Malanje 0.94 1.75 86 percent Uíge 0.5 1.11 122 percent Lubango 0.5 2.10 320 percent Kuito 1.02 2.13 108 percent Huambo 0.75 1.64 119 percent
13. Considering just the costs that are the responsibility of the PWSUs, the project has shown significant financial benefits. The NPV of the financial improvements is greater than US$91.9 million, which translate to a financial rate of return of 19.1 percent. 14. The PWSUs are not responsible, at present, for covering the investments costs, however were the PWSUs to be responsible for these investments, they would not be able to cover the full costs. A financial analysis was done to assess the financial viability of the project, including the project investment costs. The financial NPV is a loss of US$126.9 million, as the investment costs are not fully covered by the improvements in financial performance. This corresponds to an FIRR of -8.0 percent. This finding is not unexpected and is typical in the sector. The aim is for utilities to be able to cover their operating costs, with investment costs typically being at least partially subsidized, as is the case in Angola.
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ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS
Borrower Comments The Borrower’s only comments on the draft ICR were to clarify that Moçamedes was not originally intended to be a beneficiary city of the project, which is why it did not receive construction support. WSIDP1 was used to create the PWSU in Moçamedes in preparation for investments under WSIDP-2. Additionally, Luena did benefit from a short O&M contract (conducted by the contractor who performed the rehabilitation of the system). This has been clarified in the main text (para 26).
Borrower ICR The Borrower ICR also includes additional information that is included elsewhere in the Bank’s ICR (namely the tables presented in annexes 7 and 8). The below text thus is an abridged version of the Borrower ICR (the full version of which is on file).
I. INTRODUÇÃO
1. Apresentação
O Relatório Final de Implementação e Resultados (RFIR) de Projeto, pelo Mutuário, constitui uma exigência para cada operação de financiamento que seja concluída. Esta exigência está descrita numa diretiva do Banco Mundial sobre o financiamento a projetos de investimento.
O presente RFIR do primeiro Projeto de Desenvolvimento Institucional do Sector das Águas (PDISA 1) foi preparado de acordo com as diretrizes do Banco Mundial de julho de 2017 e reporta os resultados da implementação dos Acordos de Crédito N0 4501-ANG e 4970-AO entre a República de Angola (Mutuário) e a Associação Internacional de Desenvolvimento (Associação).
O RFIR do PDISA 1 tem por objetivo auto avaliar de forma objetiva e transparente o desempenho e os resultados da execução do projeto e avançar com as lições apreendidas para ajudar a optimizar a preparação e execução de futuros projetos.
O presente relatório passa em revista o processo histórico do PDISA 1 incluindo o contexto prevalecente durante a sua aprovação e a implementação, a atualidade da importância dos objetivos e os resultados alcançados vis a vis os indicadores e metas estabelecidos e, como já foi dito acima, colocando o enfoque nas lições aprendidas. II. ANTECEDENTES
1. Generalidades
O PDISA 1 foi aprovado pelo Banco Mundial em 31 de julho de 2008. No entanto, o respectivo Crédito N0 4501- ANG somente entrou em efetividade dois anos depois, em 30 de agosto de 2010. Posteriormente, em junho de 2011, foram negociados entre o Governo de Angola e o Banco Mundial fundos adicionais para o PDISA 1, nomeadamente o Crédito 4970-AO. O novo Acordo de Financiamento para os Créditos N0 4501-ANG e 4970-AO tornou-se efetivo em outubro de 2012 com a sua aprovação pelo Governo de Angola.
Como estabelecido no Acordo de Financiamento foi realizada uma Avaliação Intermédia (Mid Term Review) em setembro de 2015. A avaliação constatou que o atraso de 26 meses entre a preparação do projeto (junho 2008),
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a assinatura do Acordo de Financiamento (fevereiro 2010) e a sua efetividade (agosto 2010) se deveu aos seguintes fatores legais, externos ao projeto, que afetaram a sua implementação: (i) mudança constitucional do sistema de governo de parlamentar para presidencial, o que afectou o ritmo da tomada de decisões por parte do Governo; (ii) mudança na organização / estrutura ministerial com a criação do Ministério da Energia e da Secretaria de Estado das Águas (o PDISA 1 foi concebido dentro do Ministério da Energia e Águas); (iii) posterior reconstituição do Ministério da Energia e Águas; (iv) desdobramento do Ministério da Economia e Planeamento afectando alguma regulação que fez com que a implementação da componente 1 se visse afectada; (v) novas regras cambiais adoptadas pelo Banco Nacional de Angola (BNA) nomeadamente o Aviso 03/2009 datado de março de 2018, que passou a obrigar a submissão para licenciamento pelo BNA de todos os contratos com valores superiores a US$300 mil (o MINEA e o BNA chegaram mais tarde a um acordo de excepção para os contratos do PDISA 1, com base na Lei da Contratação Pública 20/10), a introdução das regras resultou num atraso considerável (7-10 meses) dos pagamentos iniciais dos contratos celebrados; (vi) dificuldades na incorporação de consultores internacionais devido ao endurecimento das regras de migração e obtenção de vistos de trabalho.
Entretanto a AI considerou como fator preponderante de risco para a implementação subsequente do PDISA 1 a redução da capacidade financeira do projeto devido à prevalecente tendência negativa da taxa de câmbio dos Direitos Especiais de Saque (DES)26 em relação ao dólar. Devido a esta tendência negativa os fundos disponíveis para o PDISA 1 em USD passaram de 232 milhões (junho 2011) para 208 milhões (agosto 2015), tendo por outro lado a moeda local, o Kwanza, sofrido também uma depreciação acentuada (32,5% em 2015, 22,6% em 2016 e 39,9% em 2018), em grande medida devido à queda dos preços do petróleo.
2. Contexto Durante a Identificação e Aprovação
Na altura da preparação do PDISA 1 (junho 2007), Angola passava por uma fase de estabilidade política que vinha desde a assinatura do acordo de paz em abril de 2002, acordo este que pôs fim à longa guerra civil que afetou o país desde a sua independência. Foi em grande medida esta guerra civil que danificou as infraestruturas de abastecimento de água construídas no período colonial e limitou drasticamente os recursos para a sua correta operação e manutenção, o que levou à redução considerável das taxas de cobertura da população angolana com acesso a serviços de abastecimento de água adequados. Para corrigir essa situação avultados investimentos na reabilitação destas infraestruturas foram mobilizados e estas novas infraestruturas passaram a requerer uma gestão mais eficiente. Portanto estes investimentos colocaram o desafio do desenvolvimento institucional do país, particularmente no sector das águas.
Os altos preços das matérias primas, particularmente do petróleo e o aumento da produção petrolífera permitiu a Angola tornar-se num dos países com maior crescimento económico do mundo. O valor médio anual do PIB cresceu de 11,5% em 2003 para 15% em 2006. Contrariamente, a inflação reduziu consideravelmente passando dos níveis hiperinflacionários dos anos 90 para 23% em 2005 e 12% em 2006. As reservas líquidas e a capacidade de pagamento eram por isso muito boas. O PIB per capita era em 2006 de US$ 1.980 e o coeficiente Gini era estimado por várias fontes como sendo de 0,62.
Em relação à gestão dos recursos hídricos, a rede hidrométrica de monitoria dos caudais dos rios, das 189 estações existentes em 1975 (fim do período colonial), apenas 35 estações estavam operacionais naquele período.
26 Em inglês, Special Draw Rights, unidade para contabilizar recursos monetários, pelo Fundo Monetário Internacional, com base num conjunto de moedas. Presentemente são o dólar, euro, yuan (ou renmimbi) o yen e a libra.
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O quadro institucional do setor das águas, anterior ao PDISA, estava praticamente limitado à Direcção Nacional de Águas no nível central e as Direcções Provinciais de Energia e Águas a nível local, como responsáveis pela operação e manutenção dos sistemas e prestação de serviços (ver figura 1, na página 8, que esquematiza a evolução). Em 2004 o governo criou as bases legais para a criação do INRH mas este instituto só mais tarde foi realmente criado. Neste quadro, no período anterior à intervenção pelo PDISA, havia uma grande falta de diferenciação e especialização institucional. As mesmas instituições acumulavam as funções de definir políticas, executá-las, avaliar a execução e regular o sector. Esta falta de diferenciação foi reconhecida como uma barreira ao desenvolvimento do sector e um dos principais focos do PDISA. Ainda antes do arranque do PDISA a ideia de criação de empresas, começou a ser discutida mas estas não chegaram a ser criadas legalmente. Isto veio a acontecer mais tarde com o apoio do PDISA.
Até 2014 não havia dados fiáveis sobre a situação social da população angolana havendo, no entanto, a percepção de uma generalizada falta de acesso a serviços básicos, incluindo à água e ao saneamento.
Em 2014 realizou-se o primeiro censo populacional pós-independência. Este censo confirmou o que muitos estimavam: um elevado crescimento populacional, uma urbanização crescente e uma grande informalidade na economia, na gestão do território e na habitação. As questões demográficas são fundamentais para a melhoria da cobertura e da qualidade dos serviços de abastecimento de água, e por isso é importante uma constante atenção à sua evolução. O censo de 2014 e o Inquérito de Indicadores Múltiplos e de Saúde (IMSS) 2015-16 mostram que: • Existe uma marcada informalidade da economia com apenas 40% de empregados, entre a população em idade activa; • Apenas 44 % a população tem acesso a água apropriada para beber (estimava-se em 2008 que apenas 38%). Existe uma marcada diferença deste indicador, entre o rural e o urbano - 57% nas zonas urbanas e 22% nas zonas rurais; • Houve melhoria de 12 pontos percentuais no acesso a fontes de água apropriadas para beber, entre 2008-09 e 2015-16; • 60% da população tem instalações sanitárias adequadas (81% nas zonas urbanas e 25,9% nas rurais); • As doenças diarréicas agudas são uma das principais causas de morte de crianças com menos de 5 anos
Assim, o sector das águas em Angola enfrentava vários desafios: • Definição do quadro institucional e regulatório por concluir; • Baixas taxas de cobertura da população com serviços de abastecimento de água e saneamento sustentáveis e de qualidade aceitável; • Deficiente gestão dos recursos hídricos.
Como resultado do diagnóstico dos vários problemas referidos acima foi desenhado o PDISA, com um conjunto de objectivos claros e alcançáveis, como se veio mais tarde a verificar. Outros elementos que se revelaram importantes para o sucesso do projecto foram: a) o excelente conhecimento da realidade do sector pela equipe do projecto, b) o desenho simples e adequado às capacidades e necessidades do momento: com um quadro de resultados e indicadores atingíveis; c) um excelente processo de apropriação pelas instituições envolvidas e que foram aliados activos na concretização do projecto.
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3. Contexto Durante a Implementação
Apesar do crescimento económico acelerado que se viveu após o fim da guerra civil e, em particular, na última década, a economia Angolana continuou altamente dependente do petróleo que representa 47% do PIB e 95% das exportações e, por isso, 75% das receitas fiscais.
É também notável que apesar do ligeiro aumento do Orçamento Geral do Estado (OGE) em valor absoluto - de 69 mil milhões27 em 2013 para 74 mil milhões em 2014 – a porção dedicada ao sector das águas diminuiu de 2,1 mil milhões para 1,4 mil milhões. Segundo as autoridades o declínio deveu-se principalmente à competição pela alocação de recursos entre os vários sectores, mas também devido à desaceleração do crescimento económico. As diminuições observadas nas dotações orçamentais aumentaram a vulnerabilidade do sector, em especial as questões institucionais, devido à pressão sobre os recursos para se concluírem projetos de infraestrutura física que estavam em curso.
A situação da dívida externa de Angola parece ser sustentável, embora o peso da dívida tenha aumentado de 18% do PIB em 2010 para 33% em 2014. Para além disso, a dívida pública total subiu dos 34.6% em 2014 para 84% em 2018. Neste cenário não é provável que o Governo aumente o investimento no sector.
Apesar das dificuldades decorrentes da crise, houve por parte do GdA um esforço adicional e priorização do investimento do sector conforme o Gráfico 1. O PDISA 1 devido à desvalorização do SDR perdeu em termos de USD, cerca de 25 milhões. Este valor em certa medida compensado pelas contribuições do GdA que acabou por contribuir com 66 milhões de USD (o compromisso era de 57 milhões de USD).
Gráfico 1 - – Investimento Público no Abastecimento de Água
Desembolsos Anuais pelo GdA em Águas (Milhoes de USD) 320.00 280.00 240.00 200.00 160.00 120.00 80.00 40.00 0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018
O gráfico mostra como o câmbio SDR – US$ evoluiu de forma desfavorável para o projecto, no período em que este fez os grandes desembolsos.
27 É usada aqui a convenção que reserva a palavra bilião para milhões de milhões
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Gráfico 2 – Evolução do Câmbio SDR – US$
1.6 1.55 1.5 1.45 1.4 1.35 1.3
1.25
30-abr-15 30-abr-13 30-abr-14 30-abr-16 30-abr-17 30-abr-18 30-abr-19
31-dez-14 31-dez-12 31-dez-13 31-dez-15 31-dez-16 31-dez-17 31-dez-18
31-ago-13 31-ago-14 31-ago-15 31-ago-16 31-ago-17 31-ago-18
Como consequência da diminuição dos recursos disponíveis o PDISA foi forçado a: • Adiar a reabilitação dos sistemas de fornecimento de água das cidades do Menongue e M´Banza Congo, onde estavam previstas 17 100 ligações domiciliares para servir cerca de 109 440 beneficiários; • Adiar os contratos de gestão para Menongue e M´banza Congo; • Reduzir o apoio à empresa de águas do Moxico (Luena) adoptando uma abordagem de assistencia técnica em vez de um contrato de gestão; • Adiar o apoio à instalação e operacionalização da Unidade de Gestão de Activos; • Adiar o estudo para preparação do plano de gestão integrada das bacias hidrográficas do Cubal da Hanha-Catumbela-Cavaco-Coporolo; • Reduzir o número de estações hidrométricas a reabilitar, mantendo o foco na manutenção em funcionamento das já existentes.
O GdA desenvolveu um Plano de Acção para os Sectores da Energia e das Águas, para o período 2018-2022, como instrumento de concretização da estratégia de longo prazo – Angola 2025 – e do Programa do Governo. O Plano de Acção estabelece como prioritários a expansão do abastecimento de água tanto às zonas rurais como urbanas, dando atenção especial às capitais de província e de município. O desenvolvimento institucional do sector é também referido como prioridade de curto prazo.
As mudanças introduzidas pelo novo presidente da república encorajam um reforço do escrutínio público sobre a actividade governativa o que poderá trazer uma pressão saudável sobre o desempenho dos serviços prestados no sector das águas.
No período em análise o Quadro Institucional do sector evoluiu tendo sido criadas novas instituições separando as várias funções, tendo o PDISA contribuido activamente para esta evolução. O diagrama abaixo esquematiza essa evolução que é também um resultado da Componente 1 do PDISA 1.
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Figura 2 - Evolução do Quadro Institucional
Durante o período de vigência do projecto ocorreram importantes alterações no contexto político e institucional das quais se realça: (i) a criação do Ministério da Energia e da Secretaria de Estado das Águas (o PDISA 1 foi concebido dentro do Ministério da Energia e Águas) e uma posterior reconstituição do Ministério da Energia e Águas; (ii) dificuldades na incorporação de consultores internacionais devido ao endurecimento das regras de migração e obtenção de vistos de trabalho. (iii) melhorias na rede de estradas, que ocorreram já depois do projecto ter iniciado, facilitaram a circulação pelo país e, assim, as obras e sua supervisão.
4. Objetivo de Desenvolvimento (PDO) e Indicadores do Projeto (KIP´s)
O objetivo de desenvolvimento do PDISA -1 é “reforçar a capacidade institucional e a eficiência das agências do Sector de Águas do Mutuário para melhorar o acesso aos serviços de abastecimento de água”. Inicialmente o progresso na consecução deste objetivo era medido através da: • Percentagem de Empresas de Água e Saneamento (EASs) que cumprem com as metas anuais de rentabilidade, estabelecidas; • Percentagem de estações hidrométricas fornecendo informação ao Instituto Nacional de Recursos Hídricos (INRH); • Número de pessoas nas áreas urbanas com acesso a serviços de abastecimento de água melhorados pelo projeto. Como resultado da Avaliação Intermédia (AI) em maio de 2015 e como consequência da nova realidade financeira do projeto caracterizada pela constante desvalorização da moeda de referência (o SDR), decidiu-se a reestruturação do Projeto tendo consequentemente sido revistos os indicadores da seguinte forma:
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Metas Estabelecidas INDICADOR DO PROJETO Inicial28 Revisão29 Percentagem de Empresas de Água e Saneamento 66% 60% (EASs) que cumprem com as metas anuais
estabelecidas de rentabilidade; Percentagem de estações hidrométricas fornecendo 80% informação ao Instituto Nacional de Recursos Hídricos 70% (INRH); Beneficiários Diretos. Número de pessoas nas áreas 840 000 704 000 urbanas com acesso a serviços de abastecimento de (50%) (50%) água melhorados pelo projeto (% de mulheres). Percentagem de auditorias anuais financeiras NA 60% independentes às EASs criadas pelo projeto. Órgão Regulador dos Serviços de Abastecimento de NA Operacional Água criado e operacional
A revisão dos indicadores foi fundamentalmente causada pela diminuição da capacidade financeira do projecto, produto de: • A desvalorização significativa do SDR resultou numa perda de cerca de 30 milhões de US$ para o projecto; • Uma marcada subida dos preços dos materiais de construção e dos custos do trabalho em Angola consequência do boom petrolífero que beneficiou Angola nos anos iniciais do projecto; • Custos com trabalhos adicionais não previstos inicialmente – isto foi originado pela necessidade de repor pavimentos construídos por outros projectos do governo, após a identificação do projecto e por situações causadas pela ausência de cadastro que não permitiram identificar previamente redes técnicas existentes; • Custo superior ao estimado, na reparação das estações hidrométricas – quase todas estavam inacessíveis durante a guerra e num estado de deterioração que só durante a implementação do projecto foi possível avaliar com precisão.
5. Componentes do Projeto e Recursos Alocados
O PDISA 1 utilizou cerca de 94% dos recursos orçamentados, como se apresenta na tabela abaixo. É, no entanto, de realçar que se a análise for feita em termos de SDR, o nível de utilização do orçamento sobe para cerca de 99%. A diferença deve-se à desvalorização que o SDR sofreu face ao dólar, tema já discutido acima.
VALOR VALOR PESO COMPONENTE ORÇAMENTADO REALIZADO FINAL (Milhões US$) (Milhões US$) (%) Componente 1 – Desenvolvimento das Instituições no Sub-Sector de 25,70 30,2 117,5
28 Definições no PAD, de junho de 2008 29 Definições no “Reestructuring Paper”, de março de 2016
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Abastecimento de Água e Saneamento. Componente 2 – Gestão dos Recursos Hídricos. 13,00 10,75 82,6 Componente 3 – Reabilitação dos Sistemas de Abastecimento de Água. 156,80 152,38 97,2 Componente 4 – Desenvolvimento de Capacidade Institucional e de Gestão. 16,90 24,82 146,9 PPF 0,80 0,80 100 % Contingências 20,00 0 TOTAL 233,79 219,00 93,67
Valores em SDR (milhões) 109,10 108,28 99,24
III. AVALIAÇÃO DO DESENHO DO PROJETO E DOS OBJETIVOS DE DESENVOLVIMENTO
1. Pertinência dos Objetivos de Desenvolvimento do Projeto
O Objectivo de Desenvolvimento do Projecto (PDO) – Reforçar a capacidade institucional e a eficiência das agências do Mutuário, no sector das águas, para melhorar o acesso aos serviços de água mantém-se relevante após cinco anos desde o início da implementação do projecto, dado o considerável esforço de investimento em infraestruturas (ver Gráfico 1) que tem vindo a ser feito pelo GdA, em particular no sector das águas, para lidar com o enorme desafio de reabilitar os sistemas de fornecimento de água destruídos pela guerra. O Programa de Desenvolvimento do Sector das Águas 2004-2016 (Resolução do Conselho de Ministros 10/04) define nos parágrafos 59 e 60, eixos que são claros precursores das componentes do PDISA: (1) a melhoria da gestão dos recursos hídricos, (2) o acesso generalizado a serviços de água e de saneamento. O parágrafo 68 estabelece quatro linhas de actuação: a) a reabilitação e expansão de sistemas de água e saneamento de águas residuais, b) o estabelecimento de sistemas também para o meio rural, c) o desenvolvimento de estruturas de gestão adequadas e d) o desenvolvimento do quadro institucional e legal. O PDISA é uma clara concretização desta visão estratégica. Um dos objectivos nacionais assumido pelo GdA em 2012 é o alcance, em 2017, de um nível de 100% de cobertura do acesso a fornecimento de água nas zonas urbanas e de 80% nas rurais. Este objectivo exige indubitavelmente um apoio, que é crucial, ao desenvolvimento institucional e à gestão dos investimentos no sector para tornar sustentáveis os serviços que assentam nestas infrastruturas, para que desta forma se retire proveito dos investimentos.
2. Pertinência das Componentes do Projeto
O contexto era caraterizado por uma reduzida cobertura das redes de abastecimento de água nos centros urbanos, chegando a ser praticamente ausente nas zonas periurbanas – zona onde reside cerca de 80% da população urbana. A isso estava associada uma situação de serviços insustentáveis, não fiáveis e de má qualidade, causados por falta de organização e capacidade técnica. No conjunto aquela situação teve um indubitável impacto negativo na saúde e bem- estar da população. O desafio colocado ao governo incluía servir mais gente com água potável, através de serviços sustentáveis. Para tal um bom conhecimento dos recursos hídricos é fundamental para o desenvolvimento dos sistemas de abastecimento de água; a expansão das redes e ligação domiciliárias é premente e incontornável; a existência de instituição fortes aos vários níveis, local e central, é condição sine qua non para a sustentabilidade dos serviços de abastecimento de água às populações e
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gestão integrada dos recursos hídricos.
IV. AVALIAÇÃO DOS RESULTADOS DO PROJETO
1. Cumprimento do Objetivo de Desenvolvimento (PDO) e Indicadores do Projeto (KPI´s)
As tabelas abaixo apresentam o alcance do PDO, o progresso feito na implementação e os beneficiários alcançados pelo projecto:
INDICADOR DO META RESULTADO EVIDÊNCIA PROJETO Percentagem de Empresas de Água e 60% Alcançado Saneamento (EAS) Relatórios das AT e das auditorias às que cumprem com as EAS. metas anuais de rentabilidade estabelecidas; Percentagem de estações 70% Alcançado hidrométricas fornecendo Registos e relatórios gerados pelas informação ao estações Instituto Nacional de Recursos Hídricos (INRH) O projeto melhorou os serviços através 704 000 878 096 de duas acções: (1) a reabilitação dos (50%) (50%) sistemas existentes e (2) a extensão da rede de distribuição e mais ligações domiciliárias. Assim o resultado é o Beneficiários Diretos. seguinte: Número de pessoas • Construídas 108 500 ligações nas áreas urbanas domiciliárias beneficiando 691 000 com acesso a pessoas. serviços de • Reabilitados os sistemas de abastecimento de abastecimento de água das 7 água melhorados cidades alvo do projeto onde haviam pelo projeto (% de 28 412 ligações domiciliares que mulheres). servem 181 840 pessoas que passaram a ter água de melhor qualidade e serviço mais fiável. Certas áreas, por falta de pressão não eram antes atendidas (exemplo Kuito onde foi construído um reservatório elevado).
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• >50% desta população beneficiada é constituída por mulheres. Percentagem de 60% 100% Relatórios das auditorias às EAS (EAS da auditorias financeiras Huila, Kwanza Norte, Humbo, Bié, Uíge independentes, e Malanje) de 2017, 2017 e 2018 (em anuais, às EAS criadas curso). pelo projeto. Criação do Regulador Operacional Operacional Criado o IRSEA - Instituto Regulador dos dos Serviços de Serviços de Electricidade e Abastecimento de Abastecimento de Água em novembro Água. 2016. Operacional
As tabelas abaixo permitem uma análise mais pormenorizada do que foi alcançado nas diferentes EAS, mostrando como se conseguiu ultrapassar o número total de beneficiários directos.
V. LIÇÕES E RECOMENDAÇÕES
1. Principais Lições Retiradas
O envolvimento do Governo de Angola O sentido de apropriação do projeto por parte do governo foi muito importante. O compromisso do governo, traduzido no co-investimento no projeto de um valor superior ao que estava concordado, foi vital para se alcançarem os resultados. Este contributo foi especialmente importante se considerarmos que ocorreu num período de crise das finanças públicas de Angola, que viu as suas fontes de receitas drasticamente reduzidas. Mas foi também um período de crise para o projeto que foi afectado por uma marcada redução dos recursos que recebeu em dólares, do Banco Mundial, como consequência de um cambio inferior ao previsto. Este apoio do GdA foi um factor chave para o alcance dos resultados pelo projeto, considerando a conjuntura adversa que teve de enfrentar;
O reforço da capacidade das EAS e a Assistência Técnica à sua Operação e Gestão Constatou-se ser necessário reforçar nas EAS a capacidade de absorção do conhecimento técnico e de gestão que é disponibilizado pela Assistência Técnica. Como resultado desta lição no PDISA II introduziram-se Compromissos de Desempenho (a serem assinados entre os Conselhos de Administração das EAS e o MINEA) que estabelecem objectivos comuns com os dos contratos de AT. Com este passo fica ainda mais claro que as AT são um recurso para as empresas alcançarem os seus objectivos.
No domínio das finanças e gestão O uso de SDR tornou o projeto mais vulnerável às flutuações cambiais em relação ao US$, a moeda em que são pagos a maioria dos contratos. De uma forma geral, a tendência desfavorável da taxa de câmbio SDR/US$ resultou numa contração do valor disponível de US$232 milhões em junho de 2011 para US$ 212 milhões em agosto de 2015. Como resultado desta lição a segunda fase do PDISA já foi orçamentada em US$ e não em SDR;
Desenho e condução dos concursos O desenho e condução dos concursos foram fundamentais para a implementação das ações do projeto de forma eficaz e atempada. O uso de planos de obras para preparar e conduzir os concursos poderá ser adequada para obras simples e bem definidas à partida mas revelou-se problemático para obras complexas e trabalhos de
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reabilitação.
Gestão de contratos A pressão para se lançarem novos processos de aquisição para se recuperar o tempo perdido no arranque do projeto, resultou em algum sacrifício de actividades de gestão dos contratos. O insuficiente investimento no desenvolvimento de habilidades de gestão de contratos FIDIC e a deficiente separação de responsabilidades resultou em atrasos, por exemplo, na elaboração de adendas aos contratos. Como forma de melhorar a gestão dos contratos deverá analisar-se a possibilidade de estabelecer uma unidade dedicada a essa função;
Constatou-se ser necessário reforçar a capacidade de litigação do projeto. O quadro actual não dá ao projeto os meios necessários para se defender adequadamente, no caso de conflito. Isto poderá criar a tendência para se fugir aos conflitos podendo levar à aceitação de situações que deveriam ser confrontadas.
Sobrecarga logística e administrativa O projecto funcionou durante algum tempo com um quadro insuficiente, obrigando pessoal senior do projecto a, por várias vezes, terem de dedicar-se a tarefas que deveriam ser cuidadas por pessoal de secretariado. Isto foi resolvido com a admissão de pessoal específico para as várias funções;
No domínio técnico A abordagem condominial – revelou-se particularmente importante por ter permitido aumentar a eficiência na utilização dos recursos. Isto permitiu o alcance das metas estabelecidas para o número de beneficiários apesar de se ter sofrido a contração significativa nos recursos à disposição do projeto, referida atrás. Esta abordagem revelou-se mais eficiente, mas exige um acompanhamento mais estreito das operações e um bom conhecimento da situação no terreno. Conseguiu-se assim servir mais beneficiários, com impactos na sua situação de saneamento e económica (os custos com compra informal de água são geralmente importantes para os mais desfavorecidos).
A introdução da inovação referida no parágrafo anterior foi o resultado de uma atitude de abertura à inovação e às experiências internacionais, relevantes para o projeto. Neste caso concreto foi feita inicialmente uma experiência piloto para testar a abordagem. Depois da experiência ser bem-sucedida foi replicada noutros locais e é agora o padrão seguido na segunda fase do PDISA;
Os empreiteiros produzem geralmente a informação geográfica com o detalhe adequado. Devem por isso ser criados e mantidos mecanismos de arquivo, acesso e partilha, a esta informação, de forma a que ela contribua para a atualização do cadastro das cidades respetivas, permitindo a gestão de obras futuras e também das redes. Para isto é também desejável que se reforce a capacidade das diferentes EAS para gerirem e utilizarem esta informação;
No domínio social Constatou-se ao longo do PDISA I que o papel da mobilização social é fundamental para o engajamento dos vários interessados, em particular, das populações. Durante o PDISA foi a equipe de salvaguardas ambientais e sociais que garantiu as funções de mobilização social. Uma lição retirada foi a da necessidade de reforço da acção de mobilização social, complementar à intervenção técnica. Como consequência desta lição o PDISA II inclui na sua estrutura, peritos específicos para trabalhar esta dimensão.
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2. Recomendações
Várias das lições retiradas do PDISA I e apresentadas acima, resultaram em ajustamentos nas práticas que estão já refletidas no PDISA II. As recomendações abaixo prendem-se com os aspetos que necessitam ainda de atenção: a. Deverão alocar-se recursos específicos à eventualidade de litigação para defender os interesses do projecto, em disputas contratuais; b. Continua a ser desejável uma contínua comunicação sobre os diferentes papéis e o reforço de cada um no exercício do seu papel. Por exemplo, melhorar o entendimento do papel do sector das aquisições (que não deve ser envolvido nas pequenas compras de consumíveis), ou o papel dos técnicos de supervisão, face ao mandato das empresas de fiscalização; c. Contribuir para uma melhor gestão do conhecimento e informação no sector, alimentando o Sistema de Informação do Sector da Água e Saneamento, participando nos mecanismos de coordenação do sector e da comunicação com o público em geral.
3. Desempenho do Governo
O desempenho do governo foi altamente positivo tendo assumido plenamente o seu papel de dono e cofinanciador do projecto, na gestão do crédito que contraiu junto do Banco Mundial. Essa atitude foi vital para o alcance dos objectivos, sendo de destacar o seguinte: • O governo central, através da DNA garantiu o devido apoio político nas interacções entre a UCP e os governos provinciais, EAS e outras instituições; • Sendo o compromisso do governo desembolsar 57 milhões de US$ acabou por desembolsar 67milhões o que ajudou a atenuar a perda de capacidade financeira do projecto produto da desvalorização do SDR;
4. Melhoramentos Introduzidos no PDISA II
Complementando o que é referido antes, a nova fase do PDISA inclui as seguintes alterações para tirar partido das lições aprendidas na primeira fase: a. A moeda de referência passou a ser o dólar americano, a fim de evitar eventuais vulnerabilidades face à flutuação do câmbio do SDR; b. Foram definidos Compromissos de Desempenho a serem assinados pelas EAS com o MINEA onde as metas de cada empresa estarão alinhadas com o que se pede às equipes de AT. Pretende-se assim estimular as empresas a usarem as AT como meio para atingirem os seus objectivos; c. Para os contratos de construção adoptou-se agora como norma os contratos de concepção e implementação, com uma pré-qualificação inicial para a fase de concepção e um contrato final envolvendo tanto a concepção como a construção; d. Adoptou-se como padrão a metodologia de sistemas condominiais para as zonas periurbanas com elevada densidade e falta de estrutura urbana e. Na estrutura da equipe da UCP decidiu-se incluir um perito especificamente orientado para as questões sociais e de género; f. Incluiu-se uma componente dedicada às questões de saneamento onde serão testadas soluções que sirvam não apenas as zonas com uma urbanização consolidada, mas também as zonas menos estruturadas nas regiões periurbanas.
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ANNEX 6. SUPPORTING DOCUMENTS Project Papers RP 2018: Restructuring Paper (September 6, 2018), Report No. RES33451. http://documents.worldbank.org/curated/en/157221536259465060/pdf/Disclosable-Restructuring- Paper-AO-Water-Sector-Institutional-Development-P096360.pdf RP 2017: Restructuring Paper (July 18, 2017), Report No. RES28895. RP 2016: Restructuring Paper (April 28, 2016), Report No. RES20848. RP 2014: Restructuring Paper (June 2, 2014), Report No. RES14190. RP 2012: Restructuring Paper (May 16, 2012), Report No. 66578-AO. http://documents.worldbank.org/curated/en/345621468010492033/pdf/665780PJPR0IDA0SE0ONLY090 Box369244B.pdf AF: Project Paper for AF (June 6, 2011), Report No. 58406-AO. http://documents.worldbank.org/curated/en/320621467999122217/pdf/584060PJPR0P120e0only0900 BOX361483B.pdf PAD: Project Appraisal Document (June 26, 2008), Report No. 42864-A0. http://documents.worldbank.org/curated/en/548141468203944505/pdf/428640PAD0P0961nly10IDAR2 0081023811.pdf Financing Agreements Amendment to Financing Agreement (September 7, 2018), Credit No. 4501-AO. http://documents.worldbank.org/curated/en/503561542214689557/pdf/ITK425962-201810141156.pdf Amendment to Financing Agreement (May 6, 2016), Credit No. 4501-AO and Credit No. 4970-AO. http://documents.worldbank.org/curated/en/251981474653181651/pdf/RAD994318874.pdf Amendment to Financing Agreement (June 1, 2013), Credit No. 4501-AO and Credit No. 4970-AO. http://documents.worldbank.org/curated/en/487711468212394344/pdf/RAD1566854592.pdf Financing Agreement (February 25, 2010), Credit No. 4501-ANG. http://documents.worldbank.org/curated/en/200261468191663872/pdf/FA01CONFORMED1.pdf Additional Documents Country Partnership Strategy (FY14-FY16) for the Republic of Angola. (August 15, 2013), Report No. 76225-AO. http://documents.worldbank.org/curated/en/469841468204833634/pdf/762250CAS0Ango0800OUO09 00Box379823B.pdf DHS Program. Standard DHS 2015-2016 Angola. https://dhsprogram.com/what-we-do/survey/survey- display-477.cfm Estratégia de Combate à Pobreza: Reinserção Social, Reabilitação e Reconstrução e Estabilização Económica, 2003. https://sarpn.org/documents/d0001014/P1129-Angola_ECP_Feb2004.pdf ICF, 2012. The DHS Program STATcompiler. Funded by USAID. http://www.statcompiler.com. [Accessed November, 15 2019].
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Implementation Status and Results Reports and Safeguards Documents. http://projects.worldbank.org/P096360/water-sector-institutional- development?lang=en&tab=documents&subTab=projectDocuments UNICEF, 2001. MICS2. World Bank, 2019. Women in Water Utilities: Breaking Barriers. https://openknowledge.worldbank.org/handle/10986/32319
GOA decrees relevant to the project Uíge PWSU Joint Executive Decree no. 396/13 (19 November 2013) Huambo PWSU Joint Executive Decree no. 8/14 (9 January 2014) Malanje PWSU Joint Executive Decree no. 404/13 (29 November 2013) Lubango PWSU Joint Executive Decree no. 311/17 (16 June 2017) Luena PWSU Joint Executive Decree no. 474/16 (13 December 2016) Kuito PWSU Joint Executive Decree no. 403/13 (28 November 2013) Mocamedes PWSU Joint Executive Decree no. 477/16 (19 December 2016) N'Dalatando PWSU Joint Executive Decree no. 418/13 (17 December 2013) Creation of INRH Presidential Decree 205/14 (15 August 2014) Approval of INRH procedures Executive Decree 43/16 (27 January 2016) National Water Plan Presidential Decree 126/17 (13 June 2017) National Emergency Plan for Water Presidential Decree 9/13 (31 January 2013) Approval of revised tariff Joint Executive Decree no. 230/18 (12 June 2018) Creation of IRSEA Joint Executive Decree no. 59/16 (16 March 2016) Public Enterprise Law (9/95) Public Institute Law (9/03) (28 October 2003)
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ANNEX 7. ANALYSIS OF PWSU PERFORMANCE Table A7.1 – PWSU Performance, for WSIDP-supported PWSUs
Targets HUAMBO KUITO MALANJE LUBANGO UÍGE N´DALATANDO AVERAGE Indicators in MCs Baseline1 Final2 baseline final baseline final baseline final baseline final baseline final baseline final
OCC 1.2 0.75 1.64 1.02 2.13 0.94 1.75 0.5 2.1 0.5 1.11 n/a 3.83 0.7 2.09
Operational time (supply 90% n/a 58% 88% 100% 100% 100% 20% 62% 20% 88% n/a 100% 57% 85% over 24 h) staff per 1000 5 8 8 11 4 10 6 n/a 12 7 6 38 3 13.5 6.5 connections Billing 90% 22% 51% 34% 54% 0% 76% 10% 57% 10% 55% 5% 53% 14% 58% efficiency Collection 90% 80% 71% 58% 56% 69% 94% 95% 60% 95% 81% 51% 57% 75% 70% efficiency Preparation of key 100% no 100% no 100% no 100% no 100% no 100% no 100% no 100% manuals Number of signed n/a n/a 14,000 n/a 14,653 n/a 10,451 n/a 23,650 n/a 14,173 n/a 7,686 n/a 14,102 customers Number of potential customers n/a 12,500 27,195 6,938 22,883 7,664 13,830 600 23,650 12,400 19,439 714 15,007 6,803 20,334 (cadastered connections) % of cadastered customers n/a n/a 51% n/a 64% n/a 76% n/a 100% n/a 73% n/a 51% n/a 69% signed up as customers 1Baseline data come from 2016 2Final data are from January-August 2019.
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1. Overall, the MCs have been highly successful at professionalizing the PWSUs and improving their performance, based on standard sector metrics for water service providers (Table A7.1). All utilities have improved their operating cost coverage ratio (OCC) and all PWSUs are now able to fully cover their operating costs through the revenue they collect. Additionally, all utilities have improved the amount of time they are able to operate and on average the target of 90 percent was nearly met (85 percent, equivalent to just over 20 hours per day, up from less than 14 hours per day before the MCs). Most utilities have improved their staffing ratios, though Lubango still appears to be slightly overstaffed. This indicator will continue to be prioritized under WSIDP-2. The PWSUs improved their billing efficiency (i.e., they are billing more of their customers) thanks to the cadestering the project supported, though due to the significant increase in the number of clients, some utilities are still struggling to maintain their bill collection rates (i.e., collection efficiency). 2. The MCs were also used to develop necessary operations manuals with standard operating practices. These have all been successfully completed. Additionally, though there were not specific targets within the MCs, the PWSUs also worked to register and cadaster all customers (i.e., those with a physical connection who have signed an agreement with the PWSU) and potential customers (i.e., those who have a physical network connection but who have not yet signed an agreement with the PWSU). WSIDP-2 will continue the efforts to register new household connections, many of which were only recently completed under WSIDP. 3. Compared to well established, high performing utilities, the PWSUs still have room for improvement, but relative to their own performance, and over just a short period of time, significant progress has been made. Most importantly, their cost coverage is sound, so they will be financially viable in the future for continued operations. This indicator is perhaps the most important and was heavily prioritized during the project. 4. A small analysis was also done to compare the performance of the WSIDP PWSUs with seven other PWSUs (table A7.2). Compared with these other PWSUs, the WSIDP PWSUs have more customers (14,100 compared to 8,200), provide service for more hours per day (20.3 hours compared to 18.1), have a cost recovery ratio that is double that of other PWSUs (2.09 compared to 0.98), and have better staffing ratios (6.5 compared to 12.6). Table A7.2 – Performance of WSIDP-supported PWSUs and non-WSIDP supported-PWSUs WSIDP PWSUs other PWSUs30 Indicators current current
OCC 2.09 0.98
operational time (supply over 24 h) 85% 76%
staff per 1000 connections 6.5 12.6
Billing efficiency 58% 32% Collection efficiency 70% n/a
Number of signed customers 14,102 8,212
30 This includes Bengo, Cabinda, Cunene, Cuanza Sul, Lunda Norte, Lunda Sul and Namibe.
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ANNEX 8. HOUSEHOLD CONNECTION PROGRAM SUMMARY Beneficiaries of the rehabilitation of water systems Beneficiaries of network and home connections contracts Number of # of # of home Number of home beneficiaries Total number of connections beneficiaries Total number of Total # of connections per home beneficiaries by Km of built under per home beneficiaries by beneficiari CITY before PDISA connection City PDISA-1 Contract name network PDISA-1 connection contract es by City
Lubango Urbano 60.37 4,600 29,440 Lubango 9,000 57,600 163,840 Lubango Periurbano 159.96 21,000 134,400
N'Dalatando Urbano 67.69 6,400 40,960 N'Dalatando 2,000 12,800 82,560 N'Dalatando Periurbano 20.85 6,500 41,600
Luena - Luena - Urbano 114.52 6,042 38,668 38,668
Kuito Urbano 48.75 6,007 38,444 Kuito 2,200 6.4 14,080 6.4 64,140 Kuito Periurbano 50.08 4,015 25,696
Huambo Urbano 95.00 19,310 123,584 Huambo 11,000 70,400 195,052 Huambo Lot 2 97.80 11,167 71,468
Malanje 2,500 16,000 Malanje Urbano 68.31 4,462 28,556 28,556
Uíge Urbano 156.76 9,400 60,160 Uíge 1,600 10,240 124,160 Uíge Periurbano 100.41 10,000 64,000 TOTAL Beneficiaries of network TOTAL Beneficiaries of the 181,120 1,040.50 108,903 and home connections contracts 696,976 rehabilitation of water systems TOTAL Beneficiaries of PDISA-1 = TOTAL Beneficiaries of PDISA-1 = 181120 + 696976 = 878,096
Target exceeded by: 24.73%
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ANNEX 9. SAFEGUARDS EVALUATION Number of Environmental and Social Management Plans (ESMP) and number (subset of which) had Environmental and Social Impact Assessments (ESIA) # Description Safeguards Document Report No. Date Published Developed ESMP ESIA 1 Environmental and Social Management E1819 March 1, 2008 Framework 2 Resettlement Plan Framework RP636 March 31, 2008 3 Design and construction of boreholes in X Lubango - Nossa Senhora do Monte 4 Hydraulic and electromechanical X rehabilitation of the existing intake field of Lubango - Nossa Senhora do Monte 5 Design and rehabilitation of 35 X hydrometric stations in the Northern region of Angola 6 Rehabilitation of the water supply X system in the city of Luena 7 Design and construction of network and X home connections in the city of Kuito 8 Design and rehabilitation of the water X supply system in the city of Kuito 9 Design and Construction of a New Water X* Source, Water Treatment Plant, Pumping Station, Raw Water Pipeline, Distribution Centers and Trunk Mains for N´Dalatando 10 Design and construction of network and X home connections in the city of Uíge 11 Design and construction of network and X home connections in the city of Lubango 12 Design and construction of network and X home connections in the city of Huambo 13 Design and construction of network and X home connections in the city of Malange 14 Design and construction of network and X home connections in the city of Luena 15 Design and construction of network and X home connections in the city of N´Dalatando *Note: The ESIA was developed as part of the preparation of WSIDP-2. The subproject will be financed through WSIDP-2 and is now under procurement.
1. Fatal Accident in Cuito (details from ISR19): During project implementation, there was a fatal accident in Cuito (one of the beneficiary cities). While manually excavating a trench (to install a new
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pipeline), an explosive device, lying underneath the roots of a tree, detonated when a worker hit it with the excavating tool. One worker passed away due to injuries before arriving at the hospital, and two other workers received medical attention and were discharged. The contractor had valid insurance for work-related accidents (from March 1, 2017 to February 28, 2018) and all workers involved in the accident had a valid contract with the contractor. The workers were all equipped with the required safety gear and the guidelines in the Safety and Health Plan were all followed. Prior to the beginning of works, all of the working areas in Cuito had been demined, cleared and certified as mine-free and were thus considered safe by the National Demining Institute (Instituto Nacional de Desminagem, INAD). INAD had also provided training and explained the additional safety measures required while excavating manually and provided guidance on how to identify explosive devices. 2. Following the incident, the World Bank safeguards team commissioned an independent investigation (following a visit on November 7-8, 2017). The investigation recommended: a new check- up by INAD, including ensuring workers are properly trained about unexploded ordnance risks and how to safely perform excavation; use of mechanical excavation when possible; and the daily presence of a competent (trained and experienced) health and safety officer onsite. Given the challenges in finding an experienced local health and safety officer, in the end it was agreed that a member of the FCMU would serve in this role until the construction was completed. These measures were quickly implemented, and well documented, allowing for safe resumption of works.
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ANNEX 10. RESULTS FRAMEWORK PROGRESSION original target (PAD) revised target (AF) final target (RP 2016) final target % achieved target % achieved target % achieved achieved % of PWSUs achieving annual profitability 66% 130% 66% 130% 60% 143% 85.70% % of annual independent financial and performance
audits carried out on PWSUs created by the project 66% 152% 66% 152% 60% 167% 100% RA is established and operational Complete 1 100% Complete1 100% Complete 100% Achieved
% of hydrometric stations providing information to indicators INRH 80% 125% 80% 125% 70% 143% 100%
PDO Direct project beneficiaries n/a 840,000 105% 704,000 125% 878,096 % female beneficiaries n/a 50% 100% 50% 100% 50% People in urban areas provided with access to improved water sources under the project n/a 840,000 83% 704,000 99% 696,976
Water utilities that the project is supporting n/a 9 78% 6 117% 7
s Utility created and strengthened by the project n/a n/a 5 120% 6 MIS developed Complete 100% Complete 100% Complete 100% Achieved Framework for INRH defined and agreed to by stakeholders within the government Complete 100% Complete 100% Complete 100% Achieved New piped household water connections that are resulting from the project intervention 72,0002 151% 132,000 83% 110,000 99% 108,903
intermediateindicator Kilometers of water supply networks installed or
rehabilitated 240 434% 643 162% 900 116% 1040.5
AMU is established and operational Completed 0% Completed 0% dropped dropped
dropped Revised tariff policy approved and operational Completed 100% dropped dropped Achieved 1 Was an intermediate results indicator 2 Was a PDO indicator
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