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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00004533 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-49130, IBRD-80390) ON A CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 48.90 MILLION (US$76.80 MILLION EQUIVALENT) AND A LOAN IN THE AMOUNT OF US$3.20 MILLION Public Disclosure Authorized TO THE REPUBLIC OF AZERBAIJAN FOR A WATER USERS ASSOCIATION DEVELOPMENT SUPPORT PROJECT December 30, 2018 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. CURRENCY EQUIVALENTS (Exchange Rate Effective Jun 30, 2018) Currency Unit = New Azerbaijani Manat (AZN) AZN 1.70 = US$1 US$0.71095 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing AIOJSC Amelioration and Irrigation Open Joint Stock Company CBA Cost-benefit Analysis CPF Country Partnership Framework CPS Country Partnership Strategy CSU Central WUA Support Unit EA Environmental Assessment EIRR Economic Internal Rate of Return EMMP Environmental Management and Monitoring Plan EMP Environmental Management Plan ENPV Economic Net Present Value FIRR Financial Internal Rate of Return FNPV Financial Net Present Value FPP Farm Privatization Project GoA Government of Azerbaijan GDP Gross Domestic Product I&D Irrigation and Drainage ICR Implementation Completion and Results Report IDSMIP Irrigation Distribution System and Management Improvement Project ISF Irrigation Service Fee ISM Implementation Support Mission LAI Law on Amelioration and Irrigation M&E Monitoring and Evaluation MOM Management, Operation, and Maintenance NPV Net Present Value O&M Operation and Maintenance PAD Project Appraisal Document PDO Project Development Objective PIM Participatory Irrigation Management PIU Project Implementation Unit RAP Resettlement Action Plan RID Raion Irrigation Department RIDIP Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project RSC Regional Support Center RSU Raion WUA Support Unit SAIC State Amelioration and Irrigation Committee WOP Without Project WP With Project WUA Water User Association WUAP Water Users Association Development Support Project Regional Vice President: Cyril E Muller Country Director: Mercy Miyang Tembon Senior Global Practice Director: Jennifer J. Sara Practice Manager: David Michaud Task Team Leader(s): Wilfried Hundertmark ICR Main Contributor: Kazuhiro Yoshida TABLE OF CONTENTS DATA SHEET ......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) ..................................... 10 II. OUTCOME .................................................................................................................... 11 A. RELEVANCE OF PDOs ............................................................................................................ 11 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 12 C. EFFICIENCY ........................................................................................................................... 16 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 18 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 18 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 19 A. KEY FACTORS DURING PREPARATION ................................................................................... 19 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 20 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 22 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 22 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 23 C. BANK PERFORMANCE ........................................................................................................... 26 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 27 V. LESSONS AND RECOMMENDATIONS ............................................................................. 27 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 29 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 38 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 41 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 42 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 51 ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) ..................................................................... 52 ANNEX 7. DETAILS OF THE WUA SITES BENEFITING FROM WUAP INVESTMENTS .................. 53 ANNEX 8. WUA DATA (2017) FROM WUA DATABASE ........................................................... 54 ANNEX 9. PHOTOS ............................................................................................................... 64 The World Bank Water Users Association Development Support Project (P107617) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P107617 Water Users Association Development Support Project Country Financing Instrument Azerbaijan Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Ministry of Finance Amelioration and Irrigation Open Joint Stock Company Project Development Objective (PDO) Original PDO The Project Development Objective is to improve the effectiveness and financial viability of on-farm irrigation water distribution and management in the Project area. Page 1 of 64 The World Bank Water Users Association Development Support Project (P107617) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 3,200,000 3,200,000 3,200,000 IBRD-80390 76,800,000 76,800,000 72,664,343 IDA-49130 Total 80,000,000 80,000,000 75,864,343 Non-World Bank Financing Borrower/Recipient 34,300,000 34,300,000 31,907,197 Total 34,300,000 34,300,000 31,907,197 Total Project Cost 114,300,000 114,300,000 107,771,540 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 26-Apr-2011 21-Dec-2011 31-Jul-2014 30-Jun-2016 30-Jun-2018 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 27-Jun-2016 69.67 Change in Loan Closing Date(s) 16-Jun-2017 74.48 Change in Loan Closing Date(s) KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 21-Sep-2011 Satisfactory Moderately Satisfactory 0 Page 2 of 64 The World Bank Water Users Association Development Support Project (P107617) 02 26-May-2012 Satisfactory Moderately Satisfactory 3.09 03 08-Feb-2013 Moderately Satisfactory Moderately Satisfactory 12.22 04 20-Nov-2013 Satisfactory Satisfactory 27.38 05 28-Jun-2014 Satisfactory Satisfactory 41.84 06 09-Dec-2014 Satisfactory Satisfactory 52.99 07 10-Jun-2015 Moderately Satisfactory Moderately Satisfactory 60.13 Moderately 08 21-Dec-2015 Moderately Satisfactory 64.53 Unsatisfactory 09 16-Jun-2016 Moderately Satisfactory Moderately Satisfactory 69.67 10 22-Dec-2016 Satisfactory Satisfactory 72.30 11 15-Jun-2017 Satisfactory Moderately Satisfactory 74.48 12 16-Jan-2018 Satisfactory Satisfactory 75.87 SECTORS AND THEMES Sectors Major Sector/Sector (%) Agriculture, Fishing and Forestry 84 Irrigation and Drainage 84 Public Administration 16 Sub-National Government 16 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Finance 3 Finance for Development 3 Agriculture Finance 3 Public Sector Management 5 Public Administration 5 Municipal Institution Building 5 Page 3 of 64 The World Bank Water Users Association Development Support Project (P107617) Urban and Rural Development 45 Rural Development 45 Rural Markets 3 Rural Infrastructure and service delivery 42 Environment and Natural Resource Management 50 Climate change 3 Adaptation 3 Water Resource Management 47 Water Institutions, Policies and Reform 47 ADM STAFF Role At Approval At ICR Regional Vice President: Philippe H. Le Houerou Cyril E Muller Country Director: Asad Alam Mercy Miyang Tembon Senior Global Practice Director: Peter D. Thomson Jennifer J. Sara Practice Manager: Dina Umali-Deininger David Michaud Task Team Leader(s): Pieter David Meerbach Wilfried Hundertmark ICR Contributing Author: Kazuhiro Yoshida Page 4 of 64 The World Bank Water Users Association Development Support Project (P107617) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context Economic Context at Appraisal 1. With the oil and gas boom between
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