Document of The World Bank Public Disclosure Authorized Report No: ICR00001144 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-32600) ON A Public Disclosure Authorized CREDIT IN THE AMOUNT OF SDR19.7 MILLION (US$26.6 MILLION EQUIVALENT) TO THE REPUBLIC OF ARMENIA FOR THE DAM SAFETY PROJECT Public Disclosure Authorized March 11, 2010 Sustainable Development Department Public Disclosure Authorized South Caucasus Country Unit Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective February 1, 2010) Currency Unit = Armenian Dram 100.00 AMD = US$ 0.27 US$ 1.00 = 376.69 AMD ABBREVIATIONS AND ACRONYMS AMD Armenian Dram ARS Armenian Rescue Service ARSP Agriculture Reform Support Project CAS Country Assistance Strategy CPS Country Partnership Strategy DCA Development Credit Agreement DME Dam Maintenance Enterprise DSP Dam Safety Project EMA Emergency Management Agency EMP Environmental Management Plan ERR Economic Rate of Return EPP Emergency Preparedness Plan EWS Early Warning System FAO Food and Agriculture Organization FM Financial Management FMR Financial Management Report FSU Former Soviet Union GDP Gross Domestic Product GOA Government of Armenia ha Hectare I&D Irrigation and Drainage ICR Implementation Completion Report IDA International Development Association IDP Irrigation Development Project IDSP II Irrigation Dam Safety II Project IFAD International Fund for Agricultural Development IOI Intermediate Outcome Indicator IP Instrumentation Plan IREP Irrigation Rehabilitation Emergency Project IRP Irrigation Rehabilitation Project ISR Implementation Status Report KW Kilowatt KWh Kilowatt hour M&E Monitoring and Evaluation m meter m3 Cubic meter m3/s Cubic meter per second Mm3 Million cubic meters MASC Marz (Province) Agriculture Support Center MOA Ministry of Agriculture MTEF Mid-Term Expenditures Framework MTR Mid-Term Review NPV Net Present Value NWASP North West Agricultural Services Project O&M Operation and Maintenance PAD Project Appraisal Document PAR Population At Risk PDO Project Development Objective PIU Project Implementation Unit PMB Project Management Board POI Project Outcome Indicator RRP Risk Reduction Profile QER Quality at Entry Review SCWM State Committee for Water Management SCDS Summary Coefficient for Dams Sustainability SOE Statement of Expenses TA Technical Assistance TORs Terms of Reference TRP Title Registration Project USAID United States Department for International Aid WFP World Food Program WSA Water Supply Agency WSDP Water Sector Development Project WUAs Water Users Associations WUFs Water Users Federations XDR/SDR Special Drawing Rights Vice President: Philippe H. Le Houerou Country Director: Asad Alam Sector Director: Peter D. Thomson Sector Manager: Dina Umali Deininger Project Team Leader: Giuseppe Fantozzi ICR Team Leader: Giuseppe Fantozzi ARMENIA Dam Safety Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 5 3. Assessment of Outcomes ............................................................................................ 8 4. Assessment of Risk to Development Outcome......................................................... 13 5. Assessment of Bank and Borrower Performance ..................................................... 14 6. Lessons Learned........................................................................................................ 15 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 16 Annex 1. Project Costs and Financing.......................................................................... 17 Annex 2. Outputs by Component.................................................................................. 18 Annex 3. Economic and Financial Analysis ................................................................. 24 Annex 4. Bank Lending and Implementation Support/Supervision Processes............. 28 Annex 5. Summary of Borrower’s ICR and/or Comments on Draft ICR ..................... 29 Annex 6. List of Supporting Documents ...................................................................... 43 MAP A. Basic Information Country: Armenia Project Name: Irrigation Dam Safety Project ID: P064879 L/C/TF Number(s): IDA-32600 ICR Date: 03/11/2010 ICR Type: Core ICR GOVERNMENT OF Lending Instrument: SIL Borrower: ARMENIA Original Total XDR 19.7M Disbursed Amount: XDR 19.7M Commitment: Revised Amount: XDR 19.7M Environmental Category: B Implementing Agencies: State Committee for Water Management Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 09/02/1998 Effectiveness: 04/06/2000 12/01/2000 Appraisal: 03/22/1999 Restructuring(s): 03/29/2005 Approval: 06/24/1999 Mid-term Review: 12/10/2002 Closing: 03/31/2005 09/30/2009 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Highly Satisfactory Risk to Development Outcome: Moderate Bank Performance: Highly Satisfactory Borrower Performance: Highly Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Highly Satisfactory Government: Highly Satisfactory Implementing Quality of Supervision: Highly Satisfactory Highly Satisfactory Agency/Agencies: Overall Bank Overall Borrower Highly Satisfactory Highly Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No Highly Satisfactory at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 22 22 Irrigation and drainage 78 78 Theme Code (as % of total Bank financing) Infrastructure services for private sector development 28 28 Natural disaster management 29 29 Rural services and infrastructure 14 14 Water resource management 29 29 E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Johannes F. Linn Country Director: Asad Alam Judy M. O'Connor Sector Manager: Dina Umali-Deininger Joseph R. Goldberg Project Team Leader: Giuseppe Fantozzi Salem Gafsi ICR Team Leader: Giuseppe Fantozzi ICR Primary Author: Juan Bautista Morelli F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The Project Development Objectives (PDOs) as stated in the Development Credit Agreement (DCA) dated October 7, 2000 were: (i) to increase safety of dams facing the highest risk of failure; (ii) to enhance sustainability of operation of dams. ii Revised Project Development Objectives (as approved by original approving authority) The original PDOs were revised in the Amendment to the DCA dated December 1, 2000 to read as: #The objectives of the Project are: (i) to increase safety of dams facing the highest risk of failure; (ii) to enhance sustainability of operation of dams; and (iii) to provide critical agricultural inputs to the population affected by drought.# (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Dams included under the project rehabilitated plus dams added to the project Indicator 1 : according to the Amendment to DCA rehabilitated. Value quantitative or 0 20 27 26 Qualitative) Date achieved 06/24/1999 10/07/2000 03/29/2005 09/30/2009 In the project documents 20 dams were originally planned to be rehabilitated. Six Comments plus one (rehabilitation of Marmarik dam is still underway) were added later (incl. % through amendment to be financed by cost savings). Currently, the target is achievement) achieved by 96.3%. Number of people protected downstream of dams (originally planned under the Indicator 2 : project plus additional) for which rehabilitation works are completed. Value quantitative or 0 353,600 537,900 373,900 Qualitative) Date achieved 06/24/1999 10/07/2000 03/29/2005 09/30/2009 The target is achieved by 70%. However, with the completion of Marmarik dam Comments in June 2010 the number of people protected downstream of rehabilitated dams (incl. % will be 537,900 - additional 182,300 people or by about 52% more than the achievement) originally planned target. Summary coefficient for Dam Maintenance Enterprise sustainability (SCDS) for Indicator 3 : the group of 20 dams originally included under the project. Value quantitative or 0.08 0.71 0.71 Qualitative) Date achieved 06/24/1999 10/07/2000 09/30/2009 This indicator takes into account sustainability of the Dam Management Comments Enterprise through availability of: (i) financing; (ii) transport units; and (iii) (incl. % machinery for operation and maintenance. For the group of 20 dams it has achievement) achieved the target by 100%. Summary coefficient for Dam Maintenance Enterprise sustainability (SCDS) for Indicator 4 : the group of seven dams (after the amendment). Value quantitative or 0.08 0.7 0.61 Qualitative) Date achieved 06/24/1999 03/29/2005 09/30/2009 iii Comments