World Bank Document
Total Page：16
File Type：pdf, Size：1020Kb
Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 16530 PERFORMANCE AUDIT REPORT REPUBLIC OF YEMEN Public Disclosure Authorized SEIYUN REGIONAL WATER SUPPLY (CREDIT 1418-YDR) GREATER ADEN SECOND WATER SUPPLY PROJECT (CREDIT 1739-YDR) AND SANA'A URBAN DEVELOPMENT PROJECT (CREDIT 1202-YAR) Public Disclosure Authorized April 23, 1997 OperationsEvaluation Department Public Disclosure Authorized 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. CURRENCY EQUIVALENTS (annual averages) Currency Units 1981 US$1.00 YR 4.50 1983 US$1.00 YR 4.58 1983 US$1.00 YD 0.35 1986 US$1.00 YR 7.40 1986 US$1.00 YD 0.35 1989 US$1.00 YR 19.76 1989 US$1.00 YD 0.34 1990 US$1.00 YR 11.26 1991 - March 1995 US$1.00 YR 12.00 April 1995 US$1.00 YR 50.00 May 1996 US$1.00 YR 135.00 ABBREVIATIONS AND ACRONYMS Aden Project Greater Aden Second Water Supply Project (Credit 1739-YDR) ICR Implementation Completion Report KfW Kreditanstalt fur Wiederaufbau (Bank for Reconstruction), Germany lcd Liters per Capita per Day MAWR Ministry of Agriculture and Water Resources MCHP Ministry of Construction, Housing and Urban Planning MEW Ministry of Electricity and Water NWRA The National Water Resources Authority NWSA National Water and Sanitation Authority ODs Operational Directives OED Operations Evaluation Department O&M Operation & Maintenance PCR Project Completion Report PDRY Peoples Democratic Republic of Yemen PWC Public Water Corporation ROY Republic of Yemen SAR Staff Appraisal Report Seiyun Project Seiyun Regional Water Supply Project (Credit 1418-YDR) SUDP Sana'a Urban Development Project (Credit 1202-YAR) UFW Unaccounted-for Water YAR Yemen Arab Republic FISCAL YEAR NWSA January 1 - December 31 Director-General, Operations Evaluation Mr. Robert Picciotto Acting Director, Operations Evaluation Department Mr. Roger Slade Division Chief Mr. Yves Albouy Task Manager Mr. Tauno Skytta FOR OFFICIAL USE ONLY The World Bank Washington, D.C. 20433 U.S.A. Office of the Director-General Operations Evaluation April 23, 1997 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Performance Audit Report on Republic of Yemen Seiyun Regional Water Supply (Credit 1418-YDR); Greater Aden Second Water Supply Project (Credit 1739-YDR); and Sana'a Urban Development Project (Credit 1202-YAR) Attached is the Performance Audit Report (PAR) on the Yemen Seiyun Regional Water Supply (Credit 1418-YDR, approved in FY84); Greater Aden Second Water Supply Project (Credit .173 9-YDR, approved in FY87); and Sana'a Urban Development Project (Credit 1202- YAR, approved in FY82), prepared by the Operations Evaluation Department. The report covers the two water supply projects and the water supply and sanitation components of the Sana'a Urban Development Project (SUDP-WSS). The Seiyun and Aden projects were designed to continue support to the Public Water Corporation (PWC) of the former Peoples Democratic Republic of Yemen (PDRY). The objectives were: (i) to increase water availability; (ii) to provide extended coverage with better quality water; and (iii) to strengthen the PWC which later became the National Water and Sanitation Authority (NWSA). The physical components included enhancing production, storage, and distribution networks. Institutional development components included training, establishing a new branch in Seiyun and a hydrogeological unit in Aden. The SUDP was a sites and services project. The water supply and sanitation objectives of this project were to provide project beneficiaries with water supply and sanitation infrastructure. Further, the NWSA was to use its commercial apparatus to assist in recovering infrastructure costs from beneficiaries. Pertinent components included installation of a secondary distribution system and a sewerage collection system. The physical targets of the SUDP-WSS were achieved and those of the Seiyun project were exceeded. The physical targets of the Aden projects were achieved but with significant delays. Population growth in Aden exceeded expectations and per capita consumption in 1995 was below pre-project levels. The Seiyun and Aden NWSA branches have been strengthened as a result of these projects but significant additional efforts are required to ensure that the full benefits of these investments can be achieved. 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. The Seiyun project's outcome continues to be rated as satisfactory. The rating for institutional development impact is downgraded from substantial to moderate because the branch has not consolidated upon initial institutional gains. Sustainability has become uncertain because of rising unaccounted-for water, diminished effectiveness of commercial systems and financial losses despite indirect subsidies. The Aden project's rating are the same as in the Implementation Completion Report; i.e. unsatisfactory outcome, negligible institutional development impact and uncertain sustainability. The outcome of the SUDP-WSS is rated as satisfactory, its institutional development impact as moderate and its sustainability as uncertain due to questions as to the Sana'a branch's capability to maintain water supply and sanitation systems. Bank performance is rated as satisfactory except for the Aden project. These operations show that without continuing institutional improvement, near term physical achievements do not translate into longer term sustainable operations. This became particularly critical in the Aden project which was most affected by civil unrest. The Audit's recommendation relates to three areas: (i) Cost ninimization and water conservation through better system design and focus on rehabilitation; (ii) autonomy for-and full cost recovery-by water utilities; and (iii) increased attention to needs for sanitation. Attachment Robert Picciotto by Roger Slade Contents FOR OFFICIAL USE ONLY Preface..................................................... 3 Basic Data Sheets .............................................5 Evaluation Summary ................................... ...... 17 1. Background and Project Description .................... ....... 23 Macro-economic and Political Setting in Yemen ........................ 23 Water and Sanitation Sector: Resources and Institutional Structure .......... 23 Project Design ..............................................24 Objectives and Components .......................................... 24 Quality at Entry ............................................. 25 2. Implementation and Results ...................................27 Projects' Highlights from the PCRICRs ..................... ....... 27 Physical Results ............................................27 Institutional Development ..................................... 27 Ratings and Significant Lessons ................................... 28 The Audit's Findings .......................................... 28 Physical Results ............................................28 Impact on Beneficiaries ............................ ............. 29 Environmental Impact ............................................. 30 3. Institutional Development ...................................... 31 Evolution of NWSA and Institutional Relationships ...................... 31 Institutions' Ability to Maintain Infrastructure ......................... 31 Financial Management ........................................ 32 Finances ....................................... ................ 32 Financial Systems ................................................ 33 4. Factors of Performance ....................................... 35 5. Sustainability and Future Projects' Operation ...................................... 37 6. Conclusions, Lessons and Recommendations ................ ....... 39 Conclusions ................................................. 39 Project Outcomes ............................................ 39 Borrower Performance ........................................ 39 Bank Performance ............................................. 39 This report was prepared by Mr. Tauno Skytta, Principal Evaluation Officer, and Mr. Tejbir Singh Phool, consultant, who audited the projects in April-June 1996. Ms. Helen Watkins provided administrative assistance. 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. 2 Project Ratings .............................................. 39 Compliance with Covenants and ODs ............................... 40 Lessons .................................................... 40 Recommendations ............................................ 41 Annexes A. Tables ..................................................... 43 B. Supply of Water During Peak Periods; Comparison of Pumping vs. Storage Costs ................................... 51 C. Letter from the Ministry of Construction, Housing and Urban Planning...... 53 3 Preface This is the Performance Audit Report (PAR) on the Seiyun Regional Water Supply (Credit 1418-YDR, approved on November 29, 1983) and the Greater Aden Second Water Supply Project (Credit 1739-YDR, approved on October 30, 1986). This audit report also includes a review of water supply and sanitation