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Project. Article V: 5.01 FOR OFFICIAL USE ONLY Report No: PAD3125 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF EURO 90 MILLION (US$101 MILLION EQUIVALENT) Public Disclosure Authorized TO THE REPUBLIC OF BELARUS FOR A UTILITY EFFICIENCY AND QUALITY IMPROVEMENT PROJECT May 23, 2019 Public Disclosure Authorized Water Global Practice Europe and Central Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2019) Currency Unit = Belarusian Ruble (BYN) BYN 2.1089= US$1 BYN 2.3528= Euro 1 US$ 1.1212 = Euro 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Cyril Muller Country Director: Satu Kähkönen Senior Global Practice Director: Jennifer Sara Practice Manager: David Michaud Task Team Leader(s): Stjepan Gabric, Sanyu Lutalo, Silpa Kaza ABBREVIATIONS AND ACRONYMS AF Additional Financing APA Alternate Procurement Arrangements BOD Biological Oxygen Demand CERC Contingent Emergency Response Component CIS Commonwealth of Independent States CO2 Carbon dioxide CPF Country Partnership Framework DLI Disbursement Linked Indicator EA Environmental Assessment ECA Europe and Central Asia EHS Environmental, Health, and Safety EIB European Investment Bank ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESIA Environmental and Social Impact Assessment EU European Union FI Financial Intermediaries FM Financial Management FS Feasibility Study GDP Gross Domestic Product GHG Greenhouse Gas GRM Grievance Redress Mechanism GRS Grievance Redress Service IFI International Financial Institution IFR Interim Financial Report IPCC Intergovernmental Panel on Climate Change IPF Investment Project Financing IPF Investment Prioritization Framework IRR Internal Rate of Return ISA International Standards on Auditing IT Information Technology LAP Land Acquisition Plan M&E Monitoring and Evaluation MCF Methane Correction Factor MFD Maximizing Finance for Development MHU Ministry of Housing and Utility MPA Multiphase Programmatic Approach MRF Materials Recovery Facility MSW Municipal Solid Waste NPV Net Present Value NRW Non-Revenue Water O&M Operation and Maintenance OCCR Operating Cost Coverage Ratio OP Operational Policy P/NP RLF Polotsk/Novopolotsk RLF PAD Project Appraisal Document PCT Project Coordinating Team PDO Project Development Objective POM Project Operational Manual POPs Persistent Organic Pollutants PPP Purchasing Power Parity PPSD Project Procurement Strategy for Development QCBS Quality- and Cost-Based Selection RAP Resettlement Action Plan RDF Refuse Derived Fuel RFB Request for Bids RFQ Request for Quotation RLF Regional Landfill RPF Resettlement Policy Framework SCD Systematic Country Diagnostic SOE State-Owned Enterprise SOP Series of Projects SORT Systematic Operations Risk-Rating Tool STEP Systematic Tracking of Exchanges in Procurement SWM Solid Waste Management TA Technical Assistance TTL Task Team Leader ToRs Terms of Reference UNDESA UN Department of Economic and Social Affairs UPIP Utility Efficiency Improvement Plan WB World Bank WSS Water Supply and Sanitation WTO World Trade Organization WUPI Water Utility Performance Indicators WWTP Wastewater Treatment Plant The World Bank Utility Efficiency and Quality Improvement Project (P164260) TABLE OF CONTENTS DATASHEET ............................................................................................................................ 1 I. STRATEGIC CONTEXT ...................................................................................................... 6 A. Country Context................................................................................................................................ 6 B. Sectoral and Institutional Context .................................................................................................... 7 C. Relevance to Higher Level Objectives ............................................................................................. 15 II. PROJECT DESCRIPTION .................................................................................................. 17 A. Project Development Objective ..................................................................................................... 17 B. Project Components ....................................................................................................................... 18 C. Project Beneficiaries ....................................................................................................................... 22 D. Results Chain .................................................................................................................................. 24 E. Rationale for Bank Involvement and Role of Partners ................................................................... 24 F. Lessons Learned and Reflected in the Project Design .................................................................... 25 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 27 A. Institutional and Implementation Arrangements .......................................................................... 27 B. Results Monitoring and Evaluation Arrangements......................................................................... 27 C. Sustainability ................................................................................................................................... 28 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 29 A. Technical, Economic and Financial Analysis (if applicable) ............................................................ 29 B. Fiduciary .......................................................................................................................................... 35 C. Safeguards ...................................................................................................................................... 37 V. KEY RISKS ..................................................................................................................... 41 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 44 ANNEX 1: Implementation Arrangements and Support Plan ................................................. 57 ANNEX 2: Water Supply and Sanitation (WSS) Background................................................... 62 ANNEX 3: Detailed Description of Solid Waste Management (SWM) Investments ................ 68 ANNEX 4: Financial and Economic Assessment ..................................................................... 70 ANNEX 5: Greenhouse Gas Accounting Analysis ................................................................... 87 ANNEX 6: Map of project sites ............................................................................................. 95 The World Bank Utility Efficiency and Quality Improvement Project (P164260) . DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Belarus Belarus Utility Efficiency and Quality Improvement Project Project ID Financing Instrument Environmental Assessment Category Investment Project P164260 A-Full Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 14-Jun-2019 31-Mar-2025 Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective (PDO) is to improve the quality and efficiency of water and wastewater services, and support the introduction of regional solid waste management. Page 1 of 96 The World Bank Utility Efficiency and Quality Improvement Project (P164260) Components Component Name Cost (US$, millions) Component 1. Improving water and wastewater services at utility/service 73.00 provider level Component 2. Strengthening utility performance 2.00 Component 3. Enhancing the solid waste management process in the 25.00 country Component 4. Project Management 1.00 Organizations Borrower: Republic of Belarus Implementing Agency: Ministry of Housing and Utilities PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 101.00 Total Financing 101.00 of which IBRD/IDA 101.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 101.00 Expected Disbursements (in US$, Millions) WB Fiscal 2019 2020 2021 2022 2023 2024 2025 Year Annual 0.00 5.05 15.15 20.20 30.30 20.20 10.10 Page 2 of 96 The World Bank Utility Efficiency and Quality Improvement Project (P164260) Cumulative 0.00 5.05 101.0 20.20 40.40 70.70 90.90 0 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Water Social, Urban, Rural and Resilience Global Practice Climate Change and Disaster Screening This operation has been screened for short and long-term climate change
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