Annual Multitranche Financing Facility Progress Report

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1. Annual Multitranche Financing Facility Progress Report

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42091-022 AFG : MFF- Water Resources Development Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Mohammad Hanif Ayubi and validated by Narendra Singru, Afghanistan Resident Mission, CWRD 42091022 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 23-Sep-2009 22-Sep-2019 21-Sep-2022 13.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 303.3 300 3.3 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 189.5 million were approved. Project Description The Program aims to promote growth, generate wealth, and reduce poverty and vulnerability. Link to the RRP of the MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 189.5 62.5% 11.27 86.7%

3. Cumulative Disbursements (in $ million)

3 Approved Tranches 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Water Resources 0.8 2.2 8.1 15.7 24.1 38.6 56.8 75.4 79.9 82.8 86.4 86.4 Development Investment Program - Project 1 (Active) Water Resources 0.0 0.2 0.4 0.7 1.5 8.0 28.3 28.3 Development Investment Program - Project 2 (Active) Total 0.8 2.2 8.1 15.7 24.1 38.9 57.2 76.2 81.3 90.8 114.7 114.7

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Agriculture production in Afghanistan improved.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Water resources management in Improved irrigation systems in the targeted The target has been achieved through Afghanistan is improved areas serving at least 100,000 ha provide completing the Nangarhar Valley 90% of the time irrigation supplies during Development Authority, Bangala weir and critical crop season by 2019. Yatim Tepa civil works contracts, and 207 structures in Balkh province. In addition, further activities of rehabilitation of irrigation systems are currently ongoing under tranche 1 and 2. Physical progress under T2 has been delayed since procurement of the main civil works contract (the contract) under this tranche failed in 2016 and it was later decided by the Government, in consultation with ADB, to split the contract into eight subprojects. All the eight civil works sub-projects have been awarded and works on three packages is ongoing. The works on the remaining packages will be resumed once compensation to the affected households (AH) is delivered. As of date most of the AH have been paid and it is anticipated that Works will resume in Q2 2021 once compliance reports are reviewed and cleared by ADB. Risks Assessment of Current Status Unstable security situation Risk still exists. Problem Action Taken/Proposed Procurement delay. Award of the main civil works contract collapsed due to some observation of the national procurement committee, chaired by the President of the Islamic Republic of Afghanistan in 2016. Later, this package was split into 8 civil works sub-projects. The award of these packages underwent protracted procurement processes and

4 several complaints from the bidders. Finally, all the packages were awarded in December 2019 pushing civil works contracts execution to last year of the MFF availability period.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Irrigation infrastructure upgraded and About 85% of existing irrigation/hydraulic Tranche 1: All civil works and consultancy rehabilitated structures in northern and eastern contracts have been awarded, and several Afghanistan rehabilitated by 2019. civil works contracts through international competitive bidding in east and north of the country have been completed and handed over. As per request of the government in June 2018, additional activities of civil works, capacity building program, and procurement of equipment were included in the procurement plan of the project and T1 was extended until 30 June 2020. The cost of the additional activities is covered under the unutilized grant proceeds. All the newly added packages have been awarded and works are in progress. In June 2020 the Grant was again extended as per the government's request 31 December 2021 due to protracted procurement process of one of the additional packages and Covid-19 situation.

Tranche 2: The main civil works package under the Grant was split into 8 civil works sub-projects in 2016. All the 8 civil works sub-projects have been awarded and works on 3 subj-packages are in progress. The works under the remaining civil works packages will be resumed once compensation to all the affected households (AH) is delivered. In December 2020, most of the AH were paid and works are expected to start in Q2 2021. So far, more than 60% of the existing irrigation/hydraulic structures in north and east have been rehabilitated. 100% of the structures will be rehabilitated by 2022, once all the works under T2 are completed. At least one new irrigation system The target has been achieved. Bangala weir developed by 2019 as a new irrigation system was completed in Dec 2017. The Bangala weir, Yatim Tepa, and Nangarhar Valley Development Authority contracts were completed during 2016 and 2017 which have reclaimed more the 80,000 ha of irrigated land. Additional activities of civil works for rehabilitation of irrigation systems and others will be completed under T1 and T2 until 2022. All the 8 civil works sub-projects have been awarded and works

5 Irrigation infrastructure upgraded and on 3 subj-packages are in progress. The rehabilitated works under the remaining civil works packages will be resumed once compensation to all the affected households (AH) is delivered. In December 2020, most of the AH were paid and works are expected to start in Q2 2021. Land along the river banks protected from At least 5,000 ha land protected from More than 12,000 ha of land in Yangi Qala flood/ erosion. erosion by 2019. and Khaoja Bahaudin districts have already been protected from erosion and flood, and these districts have been supplied with water, after completion of Yatim Tepa flood protection embankment and intake rehabilitation, in Dec 2017. More land will be protected from flood and erosion through Tranche 2 and watershed management rehabilitation and canal rehabilitation by 2022. Basin master plan prepared One river basin master plan available by Helmand River Basin Master Plan was 2014. prepared Dec 2013. Tranches are processed and implemented 1 is implemented by 2014 T1: Several civil works contracts through on time and within the budget. Tranche 2 is implemented by 2018 international competitive bidding and Tranche 3 is implemented by 2019. national competitive bidding, and consulting services contracts under T1 have been completed so far. All the activities under T1 will be completed by December 2021. In June 2020, the Grant was extended until December 2021 due to protracted procurement process of one package of goods and Covid-19 situation.

T2: All the main 8 civil works packages under T2 have been awarded and works in three packages is in progress. Works under the rest of the packages were kept on hold due to safeguards issue which was resolved in December 2020. Compensation to almost all of the affected households due to civil works contracts was paid in December 2020 and works will be resumed in Q2 2021. All the activities under T2 are anticipated to complete by December 2021. Water management institutions improved Water users associations (WUA) are So far, more than 16 WUA in four irrigation functional at least in 3 irrigation command command areas have been established and areas by 2019. are functional, and capacity building support is being provided by the project. River Basin Authorities (RBA) established at More than 4 RBAs have already been least in one river basin by 2019 established in the northern river basin by the Government, and the project is providing capacity building support. Risks Assessment of Current Status No results found. Problem Action Taken/Proposed None. Not applicable.

6 D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The MFF is in compliance with key Implemented. 31-Dec-2020 undertakings.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Extension of MFF Availability Period (Board 07-Dec-2018 The MFF availability period was extended approved) from 22 Sep 2019 to 21 Sep 2022 in 2018.

F. MFF Performance Ratings (Rated by Afghanistan Resident Mission, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track T2 (the recent tranche) was processed on time as anticipated by RRP. Undertakings Compliance On Track LARPs and DDRs are disclosed on ADB's website for all the civil works packages of T1 and T2. No critical deviation observed. Compensation to almost all the affected households have been delivered and LARPs compliance reports fro all subprojects will also be disclosed on ADB's website in Q2 2021. Tranche Performance At Risk T2 is actual problem due to contract awards and disbursements less than projected. Overall MFF Performance On Track On track. The procurement processes of one goods package under T1 and a consulting package under T2 were affected by Covid-19 situation. T1 was extended due to the protracted procurement process from June 2020 until 31 December 2021. Further, T2 was also slightly affected by Covid-19 lockdown, which slowed down administrative operations of the National Water Affairs Regulatory Authority (previously know as the Ministry of Energy and Water) and the government for compensation delivery/processing to the affected households (whose non- land assets were affected due to civil works contracts).

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

7 42094-012 AFG : MFF - Energy Sector Development Investment Program (Facility Concept)

42094-012 AFG : MFF - Energy Sector Development Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Asad Aleem and validated by Joonho Hwang, Energy Division, CWRD 42094012 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 28-Nov-2008 28-Nov-2018 28-Nov-2020 12.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 602.4 570 32.4 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 5 tranche/s are expected under the MFF. Of which,5 tranche/s USD 541.2 million were approved. The multitranche financing facility (Facility) is intended to finance projects, subprojects, or components in the Program, complying with the criteria set out in the Framework Financing Agreement (FFA).

The components include: (i) feasibility studies and designs; (ii) infrastructure improvements; (iii) infrastructure maintenance; and (iv) human resource development and institutional reforms.

Infrastructure improvements will include construction, rehabilitation, upgrading, and repair of energy infrastructure programmed in the country partnership strategy (CPS 2009-13), Afghan National Development Strategy (ANDS), and Government of Afghanistan's National Priority Programs (NPPs). The main objective of the maintenance component is to increase the sustainability of the investment program. The human resource development, capacity support, and institutional reform component is included to increase implementation efficiency and sustainability of the physical investments, and help strengthen Da Afghanistan Breshna Sherkat (DABS), the newly established Afghan Power Utility which is the Executing Agency of the Facility.

Project Description Afghanistan has requested ADB to help finance part of the Program through the Facility in the amount of up to the equivalent of $570 million.

The Executing Agency for the power component of the Facility is DABS (of the Islamic Republic of Afghanistan). The Executing Agency for the Gas Wells Rehabilitation component is the Ministry of Mines and Petroleum (MOMP).

DABS will be responsible for the overall implementation of the Investment Program as well as of all projects to be financed under the Investment Program except for the Sheberghan gas fields rehabilitation project for which MOMP will be the EA. A Project Management Office (PMO) will be established within DABS to manage the implementation of the energy projects and to perform due diligence for projects to be implemented in subsequent tranches. MOMP will be the second implementation agency in regards to project management implementation of the Sheberghan gas fields rehabilitation project.

The Investment Program is scheduled for 8 years inclusive of procurement and construction activities and is expected for completion by 31 December 2017. The current period of MFF utilization is until 28 November 2020. The physical implementation of Tranche 1 and Tranche 2 was completed on 28 November 2018. However, the physical implementation of Tranche 1 and Tranche 2 was completed on

8 28 November 2018. Tranche 5 was completed on 28 May 2020 and tranche 3 and 4 were completed on 28 November 2020.

ADB will provide financing, as and when necessary between 2008 and 2020, for physical and non-physical components of projects (Projects). The proposed allocation of funds is shown below.

1) NEPS 220 kV Transmission Line: Kunduz - Taloqan; 2) NEPS Distribution Network: Kunduz and Baghlan; 3) NEPS 220 kV System Operation and Maintenance equipment; 4) Sheberghan Gas Fields Rehabilitation; 5) NEPS 220 kV Chimtala 160 MVA Substation Replication and upgraded; 6) NEPS Distribution Network: Logar, Gardez, Khost; 7) DABS Institutional Capacity Development (MIS/Metering/Billing/Collection); 8) Kabul Distribution Network; 9) Kabul 220 kV Substation; 10) Chimtala to Arghundy 220 kV Transmission Line; 11) Gereshk Hydropower Rehabilitation and supply of transmission and distribution equipment; 12) 500 kV Transmission line from Andkhoy to Sheberghan; 13) 220 kV Transmission line from Sheberghan to Mazar 14) Substations at Andkhoy, Sheberghan, and Mazar; and 15) 500 kV Substation in Dasht-e-Alwam (Pul-e-Khumri)

Each Project will include one or more of the following components of the energy sector, which are described below: (i) feasibility studies and designs; (ii) infrastructure improvements; (iii) infrastructure maintenance; and (iv) human resource development and institutional reform. Link to the RRP of the MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources MFF - Energy Sector 2-Dec-2008 150.1 0.0 0.94000 For 100% 100% On On Yes Development 26-May-2009 On Track Attention Track Track Investment Program - 6-Oct-2020 Tranche 1(Closed(1)) Energy Sector 22-Dec-2011 39.4 32.4 0.88000 For 99.8719% 78.9423% On On Yes Development 20-Mar-2012 For Attention Track Track Investment Program - 3-Aug-2016 Attention Tranche 3(Active) Energy Sector 18-Dec-2012 200.0 0.0 0.94000 For 97.5934% 91.8702% On On Yes Development 5-Jun-2013 On Track Attention Track Track Investment Program - Tranche 4(Active) Energy Sector 4-Dec-2013 49.1 0.0 0.94000 For 100% 100% On On Yes Development 10-Mar-2014 On Track Attention Track Track Investment Program - 6-Jun-2020 Tranche 5(Closed(1))

9 Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 541.2 89.8% 12.09 100.8%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) MFF - Energy Sector 1.9 2.9 18.9 46.4 60.0 79.4 108.7 129.9 145.0 148.5 150.1 150.1 Development Investment Program - Tranche 1 (Closed(1)) MFF - Energy Sector 0.2 1.9 12.5 21.5 41.2 63.2 76.9 80.1 81.4 81.4 Development Investment Program - Tranche 2 (Closed(1)) Energy Sector 3.8 7.8 13.5 26.5 35.8 38.0 45.1 45.8 47.8 47.8 Development Investment Program - Tranche 3 (Active) Energy Sector 5.6 14.9 26.3 83.8 124.0 183.7 183.7 Development Investment Program - Tranche 4 (Active) Energy Sector 7.9 22.4 44.7 48.2 49.1 49.1 Development Investment Program - Tranche 5 (Closed(1)) Total 1.9 3.0 24.7 66.7 95.0 152.7 230.6 293.5 398.8 448.0 430.7 512.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Secure and stable energy supplies for Afghanistan

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Sustainable and reliable grid connected North East Power System (NEPS) capable to As of Dec 2020, the 87.5kms of 500-kV power supply in north, east and south supply 150 megawatts (MW) in 2009 to Transmission Line from Turkmenistan Afghanistan 1,000 MW of connected load by 2017 Border to Sheberghan under MFF1 Tranche 4 (G0332) 100% completed and issued completion certificate on 21 October 2020. The 500/220-kV substation under MFF1 Tranche 5 (G0377) is 100% completed and completion was issued on 4 January 2019.

10 Sustainable and reliable grid connected power supply in north, east and south The associated 500-kV Transmission Line Afghanistan from Sherbergha to Kabul (Arghandi) of around 544 km financed iMFF-2 G0464/0465 and Tranche 5 (0377) and, North-South Power Enhancement Project (G0374/0375) with expected completion by Q2 2020 and Q4 2023 respectively. The NEPS capacity will be increased to 1,000 megawatts (MW) upon the completion of all the above projects by Q4 2023. Reduction in system losses from 50% in The system losses were reduced to 35.94% 2007 to 30% by 2017 by December 2020 from 50% in 2007. The target will be achieved by the completion of the ongoing project of the 500-kV Transmission line Northsouth Power Enhancement Project by Q2 2021. Electricity Law enacted giving full financial Achieved. and operational autonomy to DABS by 2014 Risks Assessment of Current Status Contractors lacking interest to implement power projects in The interest of the large qualified contractors are still low to Afghanistan. implement projects in Afghanistan. Problem Action Taken/Proposed None. None.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Generation capacity from hydro sources 3 MW of additional hydropower generated The additional 3 MW of Gereshk and gas wells increased by 2017 hydropower project was completed on 22 October 2020 and DABS issued a completion certificate. 900,000 cubic meters/day additional gas 1. The 1st phase of gas wells rehabilitation produced by 2016 comprises the rehabilitation of 8-12 gas wells in Sheberghan in northern Afghanistan. The contract was awarded to Turkish Petroleum in August 2012 and 6 wells were fully rehabilitated in October 2014.

2. The 2nd phase of gas wells rehabilitation of two existing gas wells (No. 31 & 37) in the Yatimtaq Gas field of Sherberghan), the contract was awarded to Xinjing Zhengtong Oil and Gas Co. Ltd in August 2016 and mobilized in February 2018, and completed in August 2018.

At the project approval, it was envisaged that 900,000 cubic meters per day of gas will be supplied from ten gas wells from Sheberghan Gas Field by 2016, however, eight out of ten gas wells (Well No. 21, 31, 37, 38, 45, 47, 61 and 69) were successful

11 Generation capacity from hydro sources with the gas supply of 628,854 cubic meters and gas wells increased per day which is less than as envisaged. The less achievement is because of (i) overestimation of gas reserves at filed and, (ii) the failure of two gas wells (Well No. 29 and 32) due to a technical issue of tubing corrosion in the depth of 1,600 and 1,700 meters and shutdown with no gas supply. Transmission network upgraded in project NEPS transmission and distribution network Archived the target by the completion of all areas through rehabilitation, augmentation increased from less than 50 kms in 2007 to tranches under MFF. and expansion of NEPS more 500 kilometers 2016 As of Dec 2020, the transmission and distribution network target was achieved under MFF1 Tranche 1, Tranche 2, and Tranche 4. Development of power distribution systems Grid supply available to an additional Archived: at load centers supplied from NEPS 200,000 customers in eight cities by 2017 (Taloqan, Kunduz, Baghlan, Logar, Gardez, The target was achieved upon the Gereshk, Sheberghan Kabul) completion of MFF1 (Tranche 1, 2, 3, and 4) through the transmission lines, substations, and distribution networks in Taloqan, Kunduz, Baghlan, Logar, Paktya, Khost, Helmand (Gereshk), Balkh, Jowzjan, and Faryab provinces. Technical, managerial, financial and Automation: Management Information Achieved. institutional functions of DABS achieves Systems (MIS) instituted in DABS by 2015 requisite autonomy and corporatization and reports to board / management provided in time Metering and Billing: 90% connections are Achieved: metered and with more than 95% recovery rate by 2017 As of Dec 2020, out of 1.71 million customers, 100% are metered and more than 1.59 million (93.4%) are recovered through the proper billing system. Project Management: Project management: DABS manages Partially achieved. Projects designed, implemented and projects and network O&M without external monitored within cost, time and quality support by 2017 DABS is capable to conduct project due parameters diligence, prepare bidding documents, process procurement, supervise the projects. Also, DABS has established an O&M department within the operation directorate for the O&M of the overall power system.

In the case of complex projects, DABS still requires external consultancy firms' for the preparation and supervision of the projects. Risks Assessment of Current Status None. Not Applicable. Problem Action Taken/Proposed None. Not Applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date

12 There are 15 undertaking under MFF-1. All undertakings have been complied with 31-Dec-2020

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Energy Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track Overall MFF-1 is "On Track" Undertakings Compliance On Track All projects are in compliance with safeguard, environmental, and financial management requirements. Tranche Performance On Track 1. Tranche 1 G0134) is rated "On Track" and financially closed on 6 October 2020. 2. Tranche 2 (G0184) is rated "On Track" and financially closed on 30 September 2019. 3. Tranche 3 (G0280 is rated "For Attention" due to low disbursement and will be "on track" in Q1 2021 within the winding-up period. 4. Tranche 4 is rated "On Track". 5. Tranche 5 is rated "On Track" and financially closed on 6 June 2020. Overall MFF Performance On Track Overall MFF-1 is "On Track"

The Covid-19 pandemic had a direct and indirect impact on the energy sector projects implementation in Afghanistan. The manufacturing process and shipment of materials from abroad delayed the overall progress of projects due to COVID pandemic. In addition, the restriction on movement of the contractor, consultants, and the EA staff was limited due to the lockdowns which affected the project's implementation schedules. The COVID-19 restrictions particularly had impacted-on finalization of testing and commissioning of MFF1 tranche 3 (G0280-AFG) and tranche 4 (G0332-AFG) projects which were scheduled to be closed in May 2020. DABS and contractors tried to mitigate the impact by providing time extensions to various contracts and 0280, 0332 Grants till 28 November 2020. Also, the contractors and consultants engaged additional staff for the implementation and supervision of the projects.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

MFF - Energy Sector Development Investment Program - Tranche 2 : Project Completion Report prepared by AFRM, CWRD

13 44482-012 AFG : MFF - Transport Network Development Investment Program

44482-012 AFG : MFF - Transport Network Development Investment Program (as of 31 - Dec - 2020)

This report was prepared by Ganesh Kailasam and validated by Dong-Soo Pyo, Transport and Communications Division, CWRD 44482012 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 20-Sep-2011 31-Dec-2019 20-Sep-2021 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 808 667 141 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,4 tranche/s USD 743.8 million were approved. The MFF comprises physical investments for upgrading road and rail infrastructure, and nonphysical investments for institutional capacity development including: project preparation and implementation management, asset management, and sector wide planning and governance. The MFF is the modality of Project Description choice for the investment program as it strengthens the existing partnership between ADB and the Government of Afghanistan that began with the MFF Road Network Development Investment Program 1. Link to the RRP of the MFF http://www.adb.org/Documents/RRPs/AFG/44482/44482-012-afg-rrp.pdf a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources Transport 12-Oct-2011 166.7 32.7 0.80000 On 100% 100% At Risk On Track Yes Network 31-Oct-2011 For Track Development 10-Jan-2020 Attention Investment Program - Tranche 1(Closed(1)) Transport 10-Dec-2012 112.4 41.0 0.80000 On 98.6628% 97.6273% At Risk On Track Yes Network 4-Apr-2013 For Track Development Attention Investment Program - Tranche 2(Active) Transport 11-Sep-2013 220.0 0.0 0.94000 On 100% 100% For On Track Yes Network 3-Jan-2014 On Track Track Attention Development Investment Program - Tranche

14 Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources 3(Active) Transport 15-Dec-2014 109.0 21.0 0.74000 On 94.9994% 92.5726% At Risk For Yes Network 25-Mar-2015 For Track Attention Development Attention Investment Program - Tranche 4(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 743.8 92.1% 9.28 92.8%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Transport Network 17.8 46.2 84.6 116.7 144.4 165.1 179.7 193.6 199.4 199.4 Development Investment Program - Tranche 1 (Closed(1)) Transport Network 16.5 25.6 40.9 71.1 99.8 122.2 138.4 149.8 149.8 Development Investment Program - Tranche 2 (Active) Transport Network 23.6 36.0 53.9 91.5 91.5 Development Investment Program - Tranche 3 (Active) Transport Network 0.4 11.7 26.5 47.8 75.4 89.8 89.8 Development Investment Program - Tranche 4 (Active) Total 17.8 46.2 101.1 142.3 185.7 247.9 329.7 399.6 467.2 331.0 530.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased trade and jobs

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Increased movement of goods and services By 2022: Increased connectivity: Percent of A total of 404.5 km roads will be and better connectivity for people and project areas connected to the regional constructed.

15 businesses highway network by paved roads increased to 90% from 70% in 2010 Under Tranche 1, construction of 94.5km completed, consisting of 40km of Bagramy- Sapary road, 32km of Jabul Saraj Nijrab road, and 22.5km of Faizarabad-Baharak road.

Under Tranche 2, construction of 115 km completed, consisting of 33Km road of Sapary-Surkhrod, 32km for Char-e-Anjir to Gereshk, and 50 km for Sharan-Angor Ada.

Under Tranche 3, construction of the Yakawlang-Dari Suf road for 87km is ongoing.

Under Tranche 4 - construction of Baharak to Eshkashim road for 108 km is ongoing. By 2022: Increased average intercity travel 209.5 km completed which contributed to speed: On national highway network the the increased speed on national average speed increased from 35 kph in highway network average. 2010 to at least 50 kph in program areas By 2022: Increased availability of inter-city Volumes of traffic along project roads freight and passenger services: increased by 15% with the completion of Volumes of traffic along project roads 209.5 km roads. increased by 30% from 2011 By 2022: Travel time to the nearest primary At least 10 minutes travel time has been school, healthcare facility, or other essential reduced from 1 hour to 50 mins. service in target areas is decreased by 25% or 15 minutes from the existing average of 1 hour in 2011 Risks Assessment of Current Status Lack of buy-in or commitment by MPW to restructure and make Commitment of MPW is evident. required changes in business practices PMO established in MPW who are directly involved in the day-to- Weak external monitoring of projects day operation. Sustainability of investments may be undermined by lack of Valid. maintenance Problem Action Taken/Proposed Security threats are delaying the completion of the civil works. The contractors have involved community groups in completing LARP settlement has not been completed. Procurement of BCP the civil works. ADB is closely monitoring LARP settlement. Bid equipment is ongoing. evaluation reports for BCB equipment is under preparation.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 404.5 km of reconstructed and rehabilitated By 2021: The international roughness index Will be assessed at completion of road regional and national roads for project roads is less than 5 meters per construction. km, compared with a current estimate of 7 meters per km. 225 km of constructed railway and stations By 2019 - Railway line meeting the The railway construction is not included in between Mazar-e-Sharif and Andkhoy specifications of gauge (1520 mm) the MFF instead the feasibility study of the Northern railway has been completed under tranche 1 of the MFF.

16 Strengthened capacity of MPW MPW and ARDS jointly handle the MOT (successor to MPW) and ARDS (now procurement of goods and services and National Procurement Authority or NPA) recruitment of consultants effectively are jointly handling procurement of civil works and consultant recruitment. Organizational restructuring and revised PMO was restructured, and the business business for MPW–PMO process has been improved. Gender action framework and one pilot The social component has been included in initiative implemented by 2019 T3 and T4 of the current MFF, with focus on gender and open defecation free (ODF) communities along the road. By 2020, the number of claims and Ongoing. variations are reduced by 30% from 2011 Improved transport sector governance Establishment of the road authority and The establishment of road authority and road fund by 2017 road fund was supported by the road sector sustainability program (RSSP) of USAID. The project has prepared proposals in consultation with donors and government stakeholders for the establishment of the above-mentioned organization. Establishment of the rail authority by 2012 Completed. The Afghanistan Railway Authority (ARA) became an independent budgetary unit of the government in 2018. A long term railway development plan Completed in 2015. developed and reviewed by the government by 2012 Railway legal framework and regulations The railway law was signed on 6 August drafted and reviewed by government 2018. agencies by 2012 An asset management system implemented A separate Grant has been processed for by MPW by 2015 road asset management system. MPW revises the list of priority transport Completed. The transport sector master infrastructure into an updateable living plan update for the next 20 years (2017 to national transport plan by 2015 2036) has been prepared and also published in ADB website. Operation and maintenance of 75 km of Goods transported will increase from 2.2 Annual targets are broadly being met. The new railway line, loops and stations million tons in 2010 to over 3.2 million tons freight volume in the last three years are 3.0 between Hairatan and Mazar-e-Sharif per year million tons in 2017, 3.4 million tons in 2017, and 3.0 million tons in 2018. By 2021, railway facilities are maintained as O&M by the government is ongoing. per performance standards. By 2021, 40 staff trained by the Operator on Completed. railway operation and maintenance Risks Assessment of Current Status Deterioration of security situation. Security is being managed so far. Problem Action Taken/Proposed Security situation continues to be a challenge. The contractors tried to involve the community around the project sites to protect the road works.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Afghanistan will ensure that: (i) ADB is kept Being complied with. 20-Sep-2021 17 informed of the policies and programs of Afghanistan for the transport sector, including those under discussion with other multilateral and bilateral agencies and those that may materially affect the economic viability of Projects or subprojects financed under the Facility; and (ii) ADB is given an opportunity to comment on any proposed new transport sector policies or programs Afghanistan will establish a national road Being complied with. 20-Sep-2021 authority as contemplated by ANDS. The responsibilities and obligations of the road authority will include: (i) prescription and enforcement of minimum quality standards, (ii) data collection on road users and road use, (iii) prescription and enforcement of safety rules and regulations, and (iv) collection of user fees and charges. Afghanistan will ensure that the PMO Being complied with. 20-Sep-2021 establishes an asset management system (AMS) with the capability to track the location and depreciation of transport sector infrastructure in order to systematically plan for reconstruction, rehabilitation and maintenance activities as a means to achieve full potential of the economic value of constructed assets. Afghanistan will ensure that on or before 21 Complied with. 21-Mar-2014 March 2013, in consultation with the Advisory Committee, MPW prepares a draft National Transport Plan (NTP) covering future infrastructure project planning, construction, rehabilitation, and maintenance activities. The NTP will include a national railway sub-sector plan with feasibility studies for recommended rail routes. The plan will be a bottom-up participatory process from the local, provincial and national levels to operationalize priorities in the transport sector based on current demands and previous strategy and policy documents. The format of the NTP will allow it to be updated annually and to be linked with data and outputs of an asset management system, budgetary cycles and funds allocated for various purposes. The NTP should be drafted by MPW and presented for approval by Parliament on or before 21 March 2014. Afghanistan will ensure that on or before 21 Being complied with a revised deadline of 20-Sep-2021 March 2012, the PMO prepares a business 20 September 2021. plan for MPW and the PMO's specific operations for the period until December 2017. The business plan will include an organizational review, needs assessment,

18 time bound restructuring plan and specific capacity development plan taking into account ongoing sector assessments Afghanistan will establish a national rail Complied with. The Afghanistan Railway 31-Dec-2018 authority. The responsibilities and Authority (ARA) is an independent obligations of the national rail authority will budgetary unit of the government in 2018. include: (i) prescription and enforcement of In 2013, the ARA National Railway Plan was minimum quality standards, (ii) data completed. From 2018 onwards, ARA is collection on rail users and rail use, (iii) procuring modern railway technologies prescription and enforcement of safety through the EU (a cofinancier) fund rules and regulations, and (iv) collection of capacity development project and will user fees and charges in accordance with continue to evolve towards becoming a applicable operation and maintenance fully independent network manager, and (�O&M�) contracts. start curriculum based technical & non- technical educational programs.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Extension of MFF Availability Period (Board 09-Aug-2019 President approved (via memo 9 August approved) 2019) the extension of the availability period to 20 Sept. 2021. Minor 04-Mar-2021 Director, CWTC approved on 4 March 2021 a partial cancellation of $30,403,066.24 from Transport Network Development Investment Program -Tranche 3 to support the Government of Afghanistan through ADB's COVID-19 Vaccine Support Project under the Asia Pacific Vaccine Access Facility (APVAX). Minor 21-Sep-2020 Minor change in Counterpart Funding under Tranche 2 (G0327/0328). As a result of the proposed ADB�'s financing under Tranche 3 for land acquisition costs for Sapary-Surkhrod Section 1A incurred under Tranche 2, the amount of the current counterpart funding for the land acquisition component under Tranche 2 will be reduced from $11.5 million by $9.7 million to $1.8 million. This reduction in counterpart funding was on an exceptional basis given the budget constraints of the government and the urgency to pay compensation to the APs physically displaced. Minor 21-Sep-2020 A minor change in scope to the Multitranche Financing Facility 0063 (MFF) to Afghanistan for the Transport Network Development Investment Program (TNDIP), reducing the scope of Output 1. Output 1 was amended to reduce the length of 619 km reconstructed and rehabilitated regional and national roads by 214.5 km to 404.5 km. The Impact and the Outcome of the

19 MFF remain unchanged. Major 21-Sep-2020 Major changes in scope and implementation arrangements (reallocation of grant proceeds) under Tranche 3 (G0355) of MFF 0063, to reduce the scope of the project�'s Output 1 by 91 km to 87 km; 15 (ii) add a new Output 3: Land acquisition and resettlement completed for projects under Tranche 2 and Tranche 4 of MFF0063; (iii) expand Category 3 (Land Acquisition and Resettlement Costs) to include additional road sections, resulting in a revised grant allocation table, (iv) reallocate $31.0 million from Category 1 (Civil Works) 17 and $4.2 million from Category 3103 and 3104 in relation to the preparation of the two pre-feasibility studies to Category 3 (Land Acquisition and Resettlement Costs), and finance the LAR costs under Tranche 2 and Tranche 4. This allowed ADB to finance compensation totaling $35.2 million for (a) land acquisition and resettlement (LAR) costs having arisen from the construction of the Sapary-Surkhrod Road Section 1A under Tranche 2 (G0327/0328) for $22.5 million ($14.9 million for land acquisition and $7.6 million for resettlement), (b) resettlement costs having arisen from construction of the Baharak-Eshkashim Road under Tranche 4 (G0422/0423) for $6.8 million, and (c) an overall contingency of $5.9 million.

F. MFF Performance Ratings (Rated by Transport and Communications Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track Assessment of projects made for most tranches are On Track. No new Tranche is envisaged. Undertakings Compliance At Risk Progress has been reviewed against the detailed action plan toward restoring safeguard compliance. It is possible for substantial compliance across all projects to be met within 2021 if government manages to meet all milestones as agreed. Due to LAR issues, this is "at risk". Tranche Performance Potential Problem Compliance with APFS/AEFS for all tranches are On Track. Audited Project Financial Statements (APFS) for FY2019. APFS for FY2019 were submitted with the unqualified audit opinion before the due dates. Contract Awards for Tranches 3 to 4 are estimated at 93-100% while disbursements are estimated from 86-100% across these Tranches with time-lapse of 9.28 years. APFS for FY2020 are yet to be submitted, due date is on 20 June 2021.

Tranches 1 and 2 are already closed, and the project ratings at closing date were "For Attention". Overall MFF Performance Potential Problem The MFF is rated "Potential Problem" based on the

20 criteria/parameters in Staff Instruction on MFF.

The spread of coronavirus infection (COVID-19) were reported from February 2020 in Afghanistan. The introduction of a quarantine regime throughout the Islamic Republic of Afghanistan led to delay in the Contractor's construction and supervision works. The delays are due to lack of supply of cement in sufficient quantities, difficulties in mobilization of both national and international staff due to health and safety risks.

The COVID-19 lockdowns and restrictions therefore contributed to the delays in the progress of civil works implementation activities in 2020. On 14 September 2020, CWTC sent letter to the EA (Ministry of Public Works) on COVID-19 Health and Safety Plans. The EA was asked to forward ADB�s recommendations for COVID-19 risk assessments to the Consultants and the Contractors and requested to include information regarding the results of assessment and mitigation measures in the progress and monitoring reports.

Tranches 1 and 2 are already closed, and the project ratings at closing date were "For Attention".

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

21 47282-001 AFG : Energy Supply Improvement Investment Program (Formerly Multitranche Financing Facility II: Energy Development 2014-2023)

47282-001 AFG : Energy Supply Improvement Investment Program (Formerly Multitranche Financing Facility II: Energy Development 2014-2023) (as of 31 - Dec - 2020)

This report was prepared by Asad Aleem and validated by Joonho Hwang, Energy Division, CWRD 47282001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 4-Dec-2015 30-Jun-2025 9.57 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 1201 750 451 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 7 tranche/s are expected under the MFF. Of which,6 tranche/s USD 708.0 million were approved. The MFF will reinforce ongoing projects and finance new investments to boost energy trade and regional cooperation, strengthen the country's energy infrastructure, increase energy supply to accelerate electrification rate, and improve operational efficiency in the sector. In power, generation (renewable energy), transmission (regional and domestic lines), and distribution (on- and off-grid Project Description networks) projects are proposed; while wells rehabilitation is planned in gas.

The impact of the MFF will be improved access to sustainable energy supplies across Afghanistan. The outcome will be increased supply of imported and indigenous power. Link to the RRP of the MFF http://www.adb.org/projects/documents/afg-energy-supply-improvement-investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources Energy Supply 8-Dec-2015 110.0 35.0 0.94000 For 100% 100% On Track On Yes Improvement 7-Apr-2016 On Track Attention Track Investment Program - Tranche 1(Active) Energy Supply 5-Dec-2016 37.2 80.0 0.68000 For 67.7756% 100% For On Yes Improvement 12-Apr-2017 For Attention Attention Track Investment Program Attention Tranche 2 (Formerly Multitranche Financing Facility II: Energy Development 2014-2023)(Active) Energy Supply 7-Dec-2017 0.0 60.0 0.94000 For 100% 100% On Track On Yes Improvement 22-Aug-2018 On Track Attention Track

22 Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources Investment Program Tranche 4 (Formerly Multitranche Financing Facility II: Energy Development 2014�2023)(Active) Energy Supply 6-Dec-2018 121.4 0.0 0.74000 For 54.9767% 100% On Track On Yes Improvement 14-Mar-2019 For Attention Track Investment Program Attention Tranche 5(Active) Energy Supply 30-Sep-2020 110.0 0.0 1.00000 On Track 100% 100% On Track On Yes Improvement 10-Dec-2020 On Track Track Investment Program Tranche 6(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 708.0 59% 5.08 53.1%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2017 2018 2019 2020 Total (with loan status) Energy Supply 12.6 21.6 37.3 57.9 57.9 Improvement Investment Program -Tranche 1 (Active) Energy Supply 13.3 23.8 39.7 39.7 Improvement Investment Program Tranche 2 (Formerly Multitranche Financing Facility II: Energy Development 2014-2023) (Active) Energy Supply 1.8 1.8 Improvement Investment Program Tranche 4 (Formerly Multitranche Financing Facility II: Energy Development 2014–2023) (Active) Energy Supply 0.2 7.5 7.5 Improvement Investment Program Tranche 5 (Active) Total 12.6 34.9 61.4 107.0 107.0

23 C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with improved access to sustainable energy supplies across Afghanistan, aligned with the targets of the National Energy Supply Program of the Government of Afghanistan.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets increased supply of imported and a. Power grid capable of transmitting and Under implementation. Targets are indigenous power. distributing 1,500 MW of power by 2028 achievable. from 450 MW in 2015. b. Electrification rate increased from 30% in Under implementation. Targets are 2015 to 50% by 2028. achievable. Risks Assessment of Current Status Cost of imported power not competitive compared with cost of Not applicable. power in Afghanistan.

Quality contractors and consultants may not be available because of the poor security conditions in Afghanistan. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets New 500 kV and 220 kV power 1a. NEPS transmission capacity increased All packages of 500kv transmission lines transmission lines, power distribution from 300 MW in 2015 to 1,200 MW of connecting Turkmenistan power to the networks, and high-voltage, direct-current, connected load by 2025. Afghan grid have been awarded and the back-to-back convertor commissioned physical in under process with expected completion by Q4 2021.

The 220kV transmission line was completed in August 2020. Completion certificate was issued in November 2020. renewable energy projects constructed 2a. Domestic generation installed capacity The bidding process for 20MW Naghlu Solar increased from 519 MW in 2015 to 530 MW Power Plant (Tranche 3) was canceled as in 2025. per the government’s request and the grant whole grant was also canceled by ADB in July 2019. domestic gas production and imported 3a. Domestic gas production increased from Achievable by the completion of all projects volume of natural gas from TAPI gas 1.2 million cubic meters/day in 2015 to 2.5 by 30 June 2025. pipeline increased million cubic meters/day in 2025. 3b. Annual gas imports increased from 0 in Achievable by completion of all project by 2015 to 0.25 billion cubic meters in 2025. 30 June 2025. project preparation and management 4a. DABS-managed projects and network Achievable by completion of all project by capacity of energy ministries and agencies operation and maintenance without 30 June 2025. improved external assistance (funds and contractors) starting from 2025

24 DABS business plan, and tariff model and 5a. DABS established its investment, Achievable after completion of project by framework developed. financing and operating costs and 30 June 2025. requirements starting from 2019 Risks Assessment of Current Status None. DABS business plan already prepared and approved. Tariff model and framework are under preparation by DABS. Other outputs are currently under implementation and targets are achievable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date There are 13 undertakings under this MFF 3 undertakings have been complied with 31-Dec-2020 and 3 undertakings have been and 10 is being complied with. complied with and 10 are being complied within Q1 2021.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Energy Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track The overall MFF from a timeliness point of view No issue. Undertakings Compliance On Track All projects are in compliance with the safeguard and financial management requirements. Tranche Performance Potential Problem 1. Tranche 1 (G0464/0465) is rated "On Track"; 2. Tranche 2 (G0521/0522/0523-AFG) is rated "For Attention" due to the low contract award and disbursement; 3. Tranche 4 (G0556- AFG) is rated "On Track"; 4. Tranche 5 (G0634-AFG) is rated "For Attention" due to low contract award; 5. Tranche 6 (G0742-AFG) is rated "On Track". Tranche 7 (G0769/0770) is not yet effective. Overall MFF Performance On Track Despite low contract award and disbursement, the MFF's performance is on track in comparison to the elapsed time of MFF. The contract award and disbursement is expected to be increased in Q1 and Q2 2021. COVID-19 pandemic has affected the implementation of projects and presented some challenges. There were delays in shipment of materials and equipment from overseas due to the closure of borders as well as travel restrictions of consultants and contractors. Lockdowns have also slowed down operations. Weekly portfolio meetings are held with the EA and other government agencies to closely monitor the progress of implementation and address challenges, if any, such as the impact of COVID-19. A separate meeting is also held with the consultant or contractor to mitigate delays, as necessary.

25 A monitoring sheet (Status of Required Actions for Preventing COVID-19) was also shared with the government to help guide them on health and safety of consulting and non-consulting services contracts.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

26 Armenia

Go to List of Countries Page 42145-013 ARM : North-South Road Corridor Investment Program

42145-013 ARM : North-South Road Corridor Investment Program (as of 31 - Dec - 2020)

This report was prepared by Thomas Herz and validated by Dong-Soo Pyo, Transport and Communications Division, CWRD 42145013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 29-Sep-2009 14-Sep-2019 31-Dec-2024 15.26 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 237.1 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 327.1 million were approved. The Asian Development Bank (ADB) approved the multitranche financing facility (MFF) in an aggregate amount not exceeding $500 million for the North-South Road Corridor Investment Program (the investment program) on 29 September 2009. The investment program will contribute to economic Project Description development and regional trade. Its outcome will be a more efficient, safe, and sustainable transport network. Expected outputs are: (i) 92.5 km north�south road corridor improved, (ii) modernized border and customs infrastructure and related facilities, and (iii) more efficient and effective road corridor management. Link to the RRP of the https://www.adb.org/sites/default/files/project-document/64780/42145-arm-rrp.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated loan status) sources Closing Date sources North-South Road 21-Dec-2010 170.0 0.0 0.54000 On 65.9434% 66.5106% On For Yes Corridor Investment 18-Jul-2011 At Risk Track Track Attention Program - Tranche 2(Active) North-South Road 12-Mar-2013 100.0 0.0 0.60000 On 72.3705% 44.104% On On Track Yes Corridor Investment 24-Jul-2014 At Risk Track Track Program - Tranche 3(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period

28 327.1 65.4% 11.26 73.8%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) North-South Road 1.5 2.6 19.7 20.7 46.3 57.0 57.1 57.1 Corridor Investment Program - Tranche 1 (Closed(1)) North-South Road 0.0 1.4 20.3 39.0 48.8 77.0 96.6 112.4 113.0 113.1 113.1 Corridor Investment Program - Tranche 2 (Active) North-South Road 0.1 2.0 12.3 23.4 30.9 41.2 44.1 44.1 Corridor Investment Program - Tranche 3 (Active) Total 1.5 2.7 21.1 41.0 85.3 107.9 89.3 177.1 143.2 154.2 157.2 214.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased subregional trade and accelerated economic development in Armenia.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficient, safe, and sustainable transport on By 2024, reduced travel time along the MFF is ongoing; status of indicator to be the north-south road corridor. north-south road corridor from 3 days in confirmed at MFF completion. 2008 to 1.5 days By 2024, increased average daily traffic on MFF is ongoing; status of indicator to be the north-south road corridor from 3,000 confirmed at MFF completion. vehicles in 2008 to 6,000 vehicles By 2024, road safety improved by reducing MFF is ongoing; status of indicator to be road accident fatalities by 20% from 11 confirmed at MFF completion. accidents per 1,000 vehicles in 2008 along the north- south road corridor By 2024, 5% annual increase in road MFF is ongoing; status of indicator to be maintenance financing from the actual confirmed at MFF completion. budget in 2013 adjusted for inflation Risks Assessment of Current Status Reduced commitment to corridors and weak implementation The identified risk remains valid. capacity. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 92.5 km north-south road corridor Road corridor upgraded to 100 km/hr Progress of Tranche 1 is at 100%. Physical 29 improved operation standard progress of civil works for Tranche 2 is 38%, while Tranche 3 is at 43.45%. IRI value for the north–south corridor Being achieved; to be confirmed at MFF reduced to 2.5 completion. Road subsector plan implemented Road asset management system introduced Underway. State budget on maintenance increased by Ongoing. at least 5% from previous fiscal year’s actual budget Road subsector management and At least 20 staff with improved skills in 4 workshops have been organized, with a institutional capacities improved project planning, evaluation, execution, and total of over 70 staff who attended. reporting capacities Road safety infrastructure improved 92.5 km of improved roads installed with Progress of Tranche 1 is at 100%. Physical road safety features such as signage, speed progress of civil works for Tranche 2 is 38%, breakers, barriers and road shoulders while Tranche 3 is at 43.45%. Risks Assessment of Current Status Cost overrun due to the sharp escalation of prices of construction not applicable materials and labor Problem Action Taken/Proposed Poor performance of contractors. Closely monitor and provide support to EA to improve performance

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Illegal Trafficking: relevant authorities will Being implemented. 31-Dec-2024 undertake concrete and adequate measures to detect and prevent trafficking of humans, wildlife, endangered species, and illegal substances through the road corridor. Transport Policy and Sector Management: Being implemented. 31-Dec-2024 (i) policies under the PCA with the EU governing the road subsector development and operations are harmonized in a way that road subsector roadmap and investment plan under the Investment Program are implemented coherently; (ii) best efforts are used to facilitate cross border transit of road transport consistent with the European Agreement on Main International Traffic Arteries of 15 November 1975, and (iii) developing the human resources, technical, managerial and administrative capacity in the road subsector to achieve greater efficiency in planning, developing and operating the infrastructure financed under the Investment Program is of is high priority. Road Subsector Plan: MOTC will finalize the Being implemented. 31-Dec-2024 Road Subsector Plan (2010-2020) prepared under the ADB-financed TA Transport Sector Strategy, obtain endorsement of various government and external

30 stakeholders and submit for approval by the Government.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Transport and Communications Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track MFF's availability period extended until 2024, subsequent tranches extended until 2023. Undertakings Compliance On Track All undertakings are being complied with. Tranche Performance At Risk 2 tranches are rated "At Risk" as of December 2020. Overall MFF Performance Potential Problem The overall performance of the MFF is rated as "Potential Problem". Although the tranche performance of the MFF was rated as "At Risk" due to delays in the implementation of works, the undertakings compliance and timeliness are rated "On Track". There is a slowdown of work activities on the project sites, primarily because of mobilization of skilled labor for the needs of army and shortage of some materials and equipment due to the general mobilization. Contractor has had difficulties to mobilize staff to Armenia due to COVID-19.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

North-South Road Corridor Investment Program - Tranche 1 : Project Completion Report prepared by CWTC, CWRD

31 42417-013 ARM : MFF - Sustainable Urban Development Investment Program - Facility Concept

42417-013 ARM : MFF - Sustainable Urban Development Investment Program - Facility Concept (as of 31 - Dec - 2020)

This report was prepared by Maria Pia Ancora and validated by Paolo Spantigati, Armenia Resident Mission, CWRD 42417013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 19-Apr-2011 18-Apr-2021 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 400 400 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 157.5 million were approved. The investment program targets the transport sector in all urban areas in Armenia, aiming to improve Project Description connectivity; reduce congestion; and promote safe, reliable, and efficient transport. Link to the RRP of the MFF http://www.adb.org/Documents/RRPs/ARM/42417/42417-01-arm-rrp.pdf a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 157.5 39.4% 9.70 97%

3. Cumulative Disbursements (in $ million)

32 Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Sustainable Urban 2.7 3.0 4.3 15.8 24.3 32.7 34.8 35.7 36.1 36.5 36.5 Development Investment Program - Tranche 1 (Active) Sustainable Urban 12.9 26.6 34.1 48.0 55.1 55.1 Development Investment Program - Tranche 2 (Active) Total 2.7 3.0 4.3 15.8 24.3 45.5 61.4 69.8 84.1 91.6 91.6

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved urban environment, local economy and enhanced private sector within urban areas.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficient, reliable and affordable urban Travel time from South to North Yerevan With T1 implementation, travel time infrastructures and services provided in decreases by 40% compared to 45 minutes reduced by 7 minutes over 45 minutes Armenian cities in 2009 (15.56% reduction). With T2 implementation, travel time reduced by 10 minutes over 45 minutes (22.2% reduction). National public transport modal split is Will not be implemented with loan maintained at 21% (2008) proceeds. Transport planning and monitoring processes are being established for Yerevan, with grant support from ADB and other development partners. Women using urban transport services No survey done yet. Full data from T1 and increase by at least 5% from 8.3 million in T2 are needed to evaluate. 2008 because of better security Citizens benefit from construction About 1,490 jobs created during employment opportunities (at least 1000 implemented construction under T1 and T2. jobs offered) Risks Assessment of Current Status Political debate shifting urban transport focus. Urban transport remains a priority for the new Municipal Slowdown of business environment undermined private sector government with which ADB has established a constructive appetite. dialogue for continued cooperation and possibly new investment in the sector. Private sector appetite remains low due to continue political instability. Problem Action Taken/Proposed Political changes in the municipal and central government cause Continuous consultations with the Government are conducted. slow decision making regarding use of loan proceeds and solutions of complaints.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance

33 Baselines in the RRP indicators with targets Appropriate institutional capacity a transport committee set up by Yerevan Not yet done. strengthened in Yerevan and secondary municipality by end 2011 cities a multimodal transport website operational Not yet implemented. by Yerevan municipality by mid- 2012 microbus reorganization and tendering Microbus reorganization study completed. reform implemented by Yerevan Tendering reform not yet implemented. municipality integrated ticketing system implemented by Not yet implemented. Yerevan municipality transport planning and monitoring Partially implemented for Yerevan. Will not processes established by Yerevan be implemented for secondary cities. municipality and by secondary cities Yerevan public transport network Proposal for public transport network restructured restructuring completed. Public service contracts prepared by Not yet implemented. Yerevan municipality Urban transport plan endorsed in 2 cities To be implemented in Yerevan in 2021. Will not be implemented for secondary cities under the MFF. new urban transport financing and PPP In progress for Yerevan. framework prepared at least 2 public service contracts awarded Not yet started. by Yerevan municipality transport authority set up by Yerevan Not yet implemented. municipality strategic urban infrastructure plan prepared Completed. by 4 secondary cities bus and minibus network reformed by 2 To be implemented in Yerevan. cities transport authority model adopted by 2 To be implemented in Yerevan. cities public service contract introduced by 2 Will not be implemented for secondary cities cities. Establishment of skilled and experienced At least 15 staff with 30% women trained on Implemented 100%. program Implementation Units in Yerevan technical aspects, financial management, and Armenia procurement and safeguards Design and due diligence documents for the Implemented 100%. planned civil works duly prepared by Yerevan municipality, implementing agencies and Ministry of Economy Safeguards staff hired in Yerevan Implemented 100%. municipality and other implementing agencies At least 15 staff with 30% women trained on PPP in transport operation and management (concession, management and lease contracts) At least 15 staff with 30% women trained on Not yet implemented. PPP in transport operation and management

34 Establishment of skilled and experienced At least 15 staff with 30% women trained on Not yet implemented. program Implementation Units in Yerevan PPP in transport operation and and Armenia management Urban infrastructure extended, 5.3 km of road links constructed by Yerevan With T1 and T2 in total 13.2 km of urban rehabilitated and improved in urban areas municipality road links implemented by Yerevan Municipality. at least 1 multiple levels intersection 4 multiple level intersections completed upgraded by Yerevan municipality under T1 and T2. One is ongoing under Tender 5. at least 2 footbridges implemented by 2 footbridge implemented under T1 and T2. Yerevan municipality at least 1 km of urban street including 1.3 km of urban street improved and sidewalks improved by Yerevan municipality completed under T1. Urban road link detailed design for tranche Completed for all sections. 2 endorsed by Yerevan municipality Road and bus improvement design Implemented for Yerevan. Will not be endorsed by Yerevan municipality and implemented for secondary cities. applicable body for secondary city new underground Metro entrance opened Will not be implemented. Removed from by Yerevan municipality the Program. 6.1 km of road link constructed by Yerevan With T1 and T2 in total 13.2 km of urban municipality road links implemented by Yerevan Municipality. 5 km of segregated structure for priority Not yet implemented. trolleybus and bus constructed by Yerevan municipality at least 3 km of segregated structure for Will not be implemented for secondary priority bus transit implemented by one cities. secondary city at least 5 intermodal facilities for intercity Will not be implemented. bus services by Yerevan municipality and/or other cities at least 10 km of urban roads with sidewalks Will not be implemented. improved or created in secondary cities at least 1 pedestrian area constructed by Will not be implemented. Yerevan municipality A mass transit extension design endorsed by Will not be implemented. Yerevan municipality Urban and interregional transport network Will not be implemented. reorganization plans endorsed by two secondary cities One private company contracted for public Under discussion. transport operation or multimodal facilities management by Yerevan municipality at least 10 km of urban roads upgrade or With T1 and T2 in total 13.2 km of urban creation road links implemented by Yerevan Municipality. at least 3 pedestrian areas constructed by Will not be implemented. secondary cities at least 10 km of metro infrastructure Will not be implemented.

35 Urban infrastructure extended, upgraded by Yerevan municipality and rehabilitated and improved in urban areas Metro company at least 1 multimodal interchange upgraded Will not be implemented. by Yerevan municipality A fleet of electric and/or CNG minibus Under discussion. introduced by Yerevan municipality Yerevan municipality contracted and/or Will not be implemented. constructed one mass transit solution–light rail or metro extension Two metro stations upgraded with Will not be implemented. structures to address women and disabled needs Risks Assessment of Current Status None. During implementation, regular consultations are held with the Yerevan Municipality to ensure political support for project implementation and to ensure that institutional reforms are observed. Problem Action Taken/Proposed Delays for T1 are due to political changes in the municipal and The government of Armenia, PIU and ADB work closely to resolve central government and subsequent changes in priorities and complaints and ensure continuation of the works despite the delayed decisions on loan use. challenges taking all the precautionary measures at the For T2 delays are similarly related to a challenging implementation construction sites. The process of extension of MFF availability environment and delayed contract awards. In addition, in 2020 the period is ongoing and Board decision is expected in March 2021. implementation of the two ongoing contracts was slowed down by COVID-19, armed conflict, complaints.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Urban sector policy and sector The government kept ADB informed of its 18-Apr-2021 management policies and programs for the urban sector and economic development and is working with ADB to sustain and strengthen the urban sector. The preparation of an urban sector strategy is ongoing under the newly proposed stand-alone urban development loan which will replace Tranche 3 of the MFF (as per Government's preference processed in 2018). Counterpart funding and resources Government has provided their resources 18-Apr-2021 for the adequate implementation of the investment plan. Construction quality Quality of construction is being ensured 18-Apr-2021 with the international standards by international supervision consultant firms. Land acquisition and resettlement LARP implementation, in compliance with 18-Apr-2021 ADB SPS 2009, is carried out. Environment Works contracts follow ADB's SPS 2009, 18-Apr-2021 and each works contract has an SSEMP to ensure compliance with the IEE, EIA, and EMP. Local consultation and gender Gender Action Plan agreed under the MFF is 18-Apr-2021 being implemented; all local consultants to

36 address safety, social, and cultural issues during implementation of the investment program are carried out as recommended in the summary poverty reduction and social strategy; men and women are given equal employment opportunities. Health risks and prevention All the health and safety program 18-Apr-2021 requirements are being followed during the construction period, including latest guidelines for COVID-19 risk protection. Anticorruption, transparency and good Government, the EA and IA are following 18-Apr-2021 governance the ADB Anticorruption Policy, transparency and good governance practices.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Armenia Resident Mission, CWRD)

Criteria Ratings Justifications and Narratives Timeliness Potential Problem There are two approved ongoing tranches. Tranche 2 was initially programmed for approval in 2013 but was approved in 2015. No other tranches are expected to be processed. Undertakings Compliance On Track All eight undertakings are being complied with (except for those related to cancelled tranches). Tranche Performance Potential Problem Tranche 1 performance was rated "for attention" throughout 2020. Tranche 2 performance was "on track" for two quarters of 2020, then it became "for attention" and in quarter four turned to "at risk" mainly because of significant unallocated amount under contract awards and disbursements. Overall MFF Performance Potential Problem Based on the above criteria ratings the overall MFF performance was rated "potential problem". As a result of unforeseen impact of the 2020 armed conflict over Nagorno Karabakh and on-going COVID-19 pandemic, the pace of civil works slowed down (shortage of workers infected by COVID-19 or mobilised to army, use of heavy construction machinery on the military front line, delays with delivery of materials and inability of subcontractor's staff to cross the boarder). The government of Armenia, PIU and ADB work closely to ensure continuation of the works despite the challenges taking all the precautionary measures at the construction sites. Also, an extension of MFF availability period for 32 months is being processed for Board consideration in March 2021. This will allow the completion of the ongoing contracts, delivery of the project results, and contribute to the post-COVID-19 economic recovery.

G. Completion Reports

37 1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

38 Azerbaijan

Go to List of Countries Page 42401-014 AZE : Power Distribution Enhancement Investment Program

42401-014 AZE : Power Distribution Enhancement Investment Program (as of 31 - Dec - 2020)

This report was prepared by Adnan Tareen and validated by Joonho Hwang, Energy Division, CWRD 42401014 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 12-Jul-2016 31-Dec-2022 6.47 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 750 750 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,1 tranche/s USD 250.0 million were approved. The Power Distribution Enhancement Investment Program (the Investment Program) aims to support the government's efforts in providing reliable and efficient power supply to meet its growing energy needs for inclusive development, especially in secondary cities and rural areas. Through rehabilitation and Project Description augmentation of the power distribution network throughout the country, the investment program will improve power supply reliability and efficiency, and support the improvement of operational and financial performance of the state-owned power distribution company, Azerishiq Open Joint-Stock Company (OJSC). Link to the RRP of the https://www.adb.org/projects/documents/aze-power-distribution-enhancement-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 250.0 33.3% 4.47 69.1%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2016 2017 2018 2019 Total (with loan status) Power Distribution 31.5 149.6 242.4 250.0 250.0 Enhancement Investment Program - Tranche 1 (Closed(1)) Total 31.5 149.6 242.4 250.0 250.0

40 C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with increased availability of reliable electricity supply to all domestic consumers.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets improved efficiency and reliability of the Average annual unserved energy due to ongoing progress power distribution networks. outages reduced to less than 1% of energy sales (baseline: 7% in 2014) Nationwide distribution network losses ongoing progress reduced to 8%. (baseline: 16% in 2014) Revenue collection in the national ongoing progress distribution companies increased to 95% (baseline: 70% in 2014) Risks Assessment of Current Status Other energy sector investment projects funded by the Not yet due. government and other agencies are not completed as planned. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Customer services lines rehabilitated and Replacement of 0.4 kV customer service 3,893.53 km 0.4 kV lines replaced under smart meters installed and operational lines (10,154 km) Tranche 1 Installation of about 300,000 new smart 175,409 digital meters installed under meters Tranche 1 Distribution network including distribution Rehabilitation of 110 kV substations (15 4 x 110 kV substations; 16 x 35 kV lines and substations rehabilitated, units), 35 kV substations (52 units), 6-10 kV substations; and 1,157 CTS completed augmented, and functional transformer stations (4,004 units) under Tranche 1 Rehabilitation of 110 kV distribution lines 53.8 km 110 kV lines, 124 km 35 kV lines; 150 km, 35 kV distribution lines 400 km, and 1,236.49 km of 6-10 kV lines completed 6-10 kV distribution lines 2,600 km under Tranche 1 Institutional capacity improved and At least 250 staff (at least 20% of whom are Training of about 90 Azerishiq staff took corporate reform achieved women) from Azerishiq OJSC are trained in place in 2017, 20% women participated. key aspects of distribution network management Azerishiq OJSC corporate business plan and Approved by Prime Minister on 17 April performance targets developed by 2016 2016 and ongoing and updated yearly thereafter Risks Assessment of Current Status Procurement delay by Azerishiq due to lack of adequate The risks has not occurred. experience with ADB’s procurement guidelines and procedures. Unexpected delays in construction due to inexperience of the turnkey (EPC) contractors). Problem Action Taken/Proposed 41 None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Schedule 6, item 4: Azerishiq will comply Not complied (AEFS FY2019). Based on the 31-Dec-2021 with the following financial covenants: (a) a Entitys Management Financial Projections long-term debt to equity ratio of not more from 2018 to 2021 submitted to ADB, than 3:1 (leverage ratio of 75%) for every compliance with the financial covenant financial year ending on 31 December 2016 referred to Schedule 6, item 4 (c) is to be and thereafter; (b) a debt service coverage achieved in the foreseeable future (2020 ratio of at least 1.2 for every financial year and 2021). ending on 31 December 2016 and thereafter; and (c) a current ratio of at least 0.50 for the financial year ending 31 December 2016 (FY2016); a current ratio of at least 0.75 for the FY2017; and from FY2018, achieve and maintain a current ratio of at least 1 in all future years.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes in 2020.

F. MFF Performance Ratings (Rated by Energy Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness Potential Problem Project is a potential problem since Tranche 2 was not processed within 1-2 years after estimated approval dated of April 2018 as agreed with the government. Preparatory works have commenced in October 2018. Undertakings Compliance On Track Noncompliance with one undertaking in Financial Covenant which does not relate to safeguards, the PCP, and/or reform implementation makes the project still on track. Tranche Performance On Track Overall, Tranche 1 Project has achieved a satisfactory performance rating. Overall cumulative contract award is 99.443% and overall cumulative disbursement is 99.129%. The project was completed on 30 June 2019, which is the expected completion date. The project was financially closed on 31 December 2019. Processing of Tranches 2 and 3 are pending on governments decision to borrow further. Overall MFF Performance On Track Pending governments decision to borrow further.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Power Distribution Enhancement Investment Program - Tranche 1 : Project Completion Report prepared by CWEN, CWRD

42 45389-001 AZE : Second Road Network Development Investment Program

45389-001 AZE : Second Road Network Development Investment Program (as of 31 - Dec - 2020)

This report was prepared by Jurgen Sluijter and validated by Dong-Soo Pyo, Transport and Communications Division, CWRD 45389001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 4-Oct-2012 30-Jun-2021 8.74 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 500.0 million were approved. The MFF is intended to finance projects under the Investment program. The projects intended to be financed include: a) construction of a total of approximately 63 km of road sections on the new Masalli- Shorsulu road, comprising (i) an approximately 30 km section between the cities of Masalli and Jalilabad (Project 1) and (ii) an approximately 33 km section between the cities of Jalilabad and Shorsulu (Project Project Description 2), and rehabilitation of key sections of R32 and M5/R57 roads, for a total of about 127 km; b) project implementation support for construction supervision and project management covering planning, procurement, project implementation, financial management and safeguard compliance; c) capacity development for AAY comprising support for improving the sustainable management of the road network; and (d) implementation of local roads rehabilitation program. http://www.adb.org/projects/documents/aze-second-road-network-development-investment-program- Link to the RRP of the MFF rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed

43 Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 500.0 100% 8.24 94.3%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Second Road 31.1 87.8 121.3 155.9 161.8 204.7 243.0 243.0 Network Development Investment Program - Tranche 1 (Active) Second Road 21.5 55.5 88.0 121.6 158.4 206.4 206.4 Network Development Investment Program - Tranche 2 (Active) Total 31.1 109.2 176.8 243.9 283.3 363.0 449.4 449.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Trade with neighboring countries expanded and economic growth of Azerbaijan improved.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficient, adequate, safe, and sustainable By 2022: Freight traffic increased by 35% MFF tranches are ongoing. Will be assessed road corridors in Azerbaijan achieved. along the project roads (2010 baseline: once all Tranche Outputs are delivered. 11,325 million ton-km). By 2022: Passenger traffic increased by 25% MFF tranches are ongoing. Will be assessed along the project roads (2010 baseline: once all Tranche Outputs are delivered. 16,633 million passenger-km. By 2022: Funding for road maintenance MFF tranches are ongoing. Will be assessed increased to at least $350 million (2011 once all Tranche Outputs are delivered. Baseline: $200 million). By 2022: Road traffic accidents reduced by MFF tranches are ongoing. Will be assessed 10% along the project roads (2011 Baseline: once all Tranche Outputs are delivered. 2,890 number of accidents). By 2022: About 2.8 million beneficiaries. MFF tranches are ongoing. Will be assessed once all Tranche Outputs are delivered. Risks Assessment of Current Status Rapid deterioration of the road network caused by weak axle-load No issues encountered. controls, erratic weather and climatic conditions. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets

44 A new motorway between Masalli and By 2020: 63 km of the new motorway Civil works 100% completed, taking over Shorsulu constructed, and key sections of Masalli-Shorsolu constructed with certificate issued on 18 Aug 2017 (T1) and R32 and M5/R57 rehabilitated. international roughness index less than 5 on 1 June 2018 (T2). meters per km (2010 baseline: zero) By 2021: 70 km of R32 and 55 km of Civil works completed on 31 Dec and 30 M5/R57 rehabilitated with international Nov 2020, respectively, for a total of 127.3 roughness index less than 5 meters per km km roads rehabilitated -- (i) R32 road (2017 baseline: IRI = >5) section: Lot 1 = 37 km, Lot 2= 33.5 km; and (ii) M5/R57 road sections: Lot 1 = 32.8 km, Lot 2 = 24 km. Program management and implementation All civil works contracts awarded and Mobilized as planned. Contracts are capacities of AAY improved. contractors mobilized as planned (2010 ongoing. baseline: not applicable). Transport sector governance improved. Road safety audits conducted and EBRD grant financing developed the road improvement designs ready for at least 50% safety study and a study on design of ADB-financed roads (2010 baseline: standards and performance-based road None) maintenance contracts; the studies were completed in December 2018. Road standards and specifications, including EBRD grant financing developed the road pavement layer design standards and safety study and a study on design specifications finalized (2010 baseline: standards and performance-based road None) maintenance contracts; the studies were completed in December 2018. Feasibility study on installing a tolling FS completed in July 2018. system along M3 motorway submitted for government’s approval (2017 baseline: None) Local roads rehabilitation program 62 km local roads feeding into R32 and Review of contract variation ongoing; works implemented. M5/R57 rehabilitated with international will start once variations are approved. roughness index of less than 6 (2019 baseline: IRI ranging from 6 to 12). Risks Assessment of Current Status Cost overruns result in less work accomplished than designed. No issues encountered. Delays caused by erratic weather condition in the project sites. Close monitoring of in-country condition. AAY delays required changes in business practices for sustainable transportation. Escalation of the pandemic of COVID-19 in the country, causing its associated adverse impacts on the program's implementation. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Azerbaijan, acting through the relevant Being complied with. Border controls are 30-Jun-2021 government agencies, will ensure strict maintained by the State Migration Service border control to prevent trafficking of and the State Customs Committee of the humans, wildlife, endangered species, and Republic of Azerbaijan in accordance with illegal substances on each motorway road National legislation. financed under the Facilities. Azerbaijan will cause MOT, through ARS, to Being complied with. An "Azerbaijan Road 30-Jun-2021 develop, in consultation with ADB, and Sector Master Plan" was prepared by

45 approve a road maintenance plan for the consulting firm "Finnroad" in 2012 and fiscal years 2015-2022 by 31 December covered both investment and maintenance 2014, which will (i) establish a system for activities in the road sector till 2024. The efficient planning and prioritization of road plan was updated under an EBRD-funded maintenance works, (ii) provide funding project (by Louis Berger) with the final modalities to finance the maintenance of report submitted to Azeravtoyol OJSC (AAY) relevant roads acceptable to ADB, (iii) in August 2016. According to AAY, an EBRD develop or adopt adequate road supported consultancy prepared a study on maintenance standards and prepare performance-based maintenance contracts relevant road maintenance planning and and standard contract documents, and operational manuals, and (iv) provide designed a pilot project. The consultants training to strengthen the capacity of local recommended the area-wide performance- maintenance units. Azerbaijan will cause based maintenance contracts covering all MOT to ensure that a road maintenance classifications of roads. The implementation program covering the country's entire road of a pilot project is under discussion. network is implemented. Azerbaijan, acting through the relevant Being complied with. Planning for the 30-Jun-2021 government authorities, will ensure that continuous patrolling of the Project Road each motorway road to be financed under falls with the State Road Police (DYP). The the Facilities is at all times patrolled by collection of data on accidents and traffic traffic police who will enforce national laws volumes will be undertaken Upon and regulations on such motorway road. completion for the Project Road. DYP made Azerbaijan will cause ARS to ensure significant progress in road safety monitoring of the accident rate and traffic monitoring on major roads throughout the volume for each motorway road financed country: vehicle speed radars and under the Facilities and will institute surveillance cameras have been installed on appropriate safety enforcement measures. all main highways, and all city roads through the country. Regular patrolling by modern road police cars (BMW brand) equipped with radars and cameras has been introduced on all major highways. At least six months prior to the opening for Complied with. AAY completed the toll 30-Jun-2021 operation of the motorway road financed road study and has legal and regulatory under Tranche 1 of the Previous Facility, framework, (as described in detail in the toll Azerbaijan will cause ARS to have provided road study final report) that can be used to ADB with MOT-endorsed framework and have maintenance concessions. The study definitive action plan for establishing tolling identified the Project Road (M3 motorway) roads along all motorway roads to be as suitable for tolling with relatively few financed under the Facilities. By 31 major regulatory or practical obstacles. The December 2015, ARS shall review and consultants considered that tolling this inform ADB of any significant difficulties in motorway can raise sufficient revenue to establishing tolls on expressway roads cover operational and maintenance costs. under Azerbaijan's laws and regulations. On 25 December 2019, AAY confirmed the government's decision to implement the first tolling in Azerbaijan on the 192 km section of the M1 road (north of Baku to the border with the Russian Federation) using governments own budget, instead of using the ADB loan proceeds for installing tolling facilities along the M3 motorway. Azerbaijan will cause MOT, in consultation Being complied with. In support of the 30-Jun-2021 with ADB, (i) to undertake a study to move towards performance based develop an independent set of road maintenance, AAY is updating its road

46 standards and specifications for pavement database --an important tool necessary for layers design for all motorway roads to be establishing and monitoring service levels. financed under (a) the Facility and (b) the This activity is included in the World Bank Multitranche Financing Facility for the Road supported Third Highway Project. On 11 Network Development Program approved May 2016, the Cabinet of Ministers by ADB's Board in September 2007 (the approved the new organizational structure Previous Facility) (the Facility and the of the road maintenance administration. Previous Facility hereinafter being referred The road maintenance administration to collectively as the Facilities) and (ii) to consists of 83 separate limited liability use such study as the basis for preparing companies (LLC), all of them reporting to and entering into performance-based AAY, including 7 LLCs in charge of all major maintenance contracts covering all such highways; 10 LLCs for the greater Baku area motorway roads, each such contract to be covering 12 administrative districts within entered into prior to the opening of the Baku, another 10 special purpose relevant motorway road based on bidding maintenance LLCs; 55 LLCs for all roads documents and a framework approved by outside Baku except major highways; and ADB. one LLCs in charge of road bridges throughout the country. Azerbaijan will cause MOT to undertake, in Being complied with. AAY routinely includes 30-Jun-2021 consultation with ADB, a road safety audit formal road safety audits at both the design for each motorway road to be financed and the pre-opening stages of major under the Facilities and shall ensure that the highway projects and provides resources for recommendations included in such audit, as it to be done by specialists. The project for approved by ADB, are incorporated into the the construction of the Alat-Astara design, operation and maintenance of such Highway, Jalilabad Intersection to Shorsulu motorway roads. Intersection (km 110+700 to km 80+600) involves a road safety specialist with tasks including reviewing temporary traffic plans and conducting a pre-opening road safety audit. AAY is reviewing the older contracts for other sections of the Project Road to ensure pre-opening road safety audits are undertaken. Road Safety Study has been prepared and submitted to ADB in 2018. Azerbaijan will cause ARS to establish Complied with. Four (4) weighbridge 30-Jun-2021 vehicle weighing stations within each stations have been installed (under L2354) motorway road financed under the Facilities and calibrated and are under defects to control axle overloading and will institute notification period until 1 December 2016. appropriate procedures and regulations to enforce the axle load control in respect of each such motorway road. At least six months prior to the opening for Being complied with. The Government of 30-Jun-2021 operation of the motorway road financed Azerbaijan introduced Euro-3/4 fuel under Tranche 1 of the Previous Facility, emission standard from January 2013/2014, Azerbaijan will cause ARS, jointly with the and is planning to adopt Euro-5 standard concerned government agencies, to provide from 2018. The department of Ecology to ADB Azerbaijan's emission standards and police is authorized agency to monitor the penalties for infringement of such vehicle emissions. AAY will contribute to standards. Azerbaijan will ensure that, interagency coordination and discussions, through the relevant agencies, such vehicle including with the Road Policy Department emission standards are enforced. and State Committee for Standardization, Metrology and Patent.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

47 Category Date of Approval Key Substantive Changes Minor 29-Sep-2020 Adding under Tranche 2 a new output (local roads rehabilitation program implemented), reduction in scope of Tranche 2 Output 3 (removal of tolling facilities installation along M3 motorway), extending loan closing date for Tranche 1 and 2 to 30 June 2021.

F. MFF Performance Ratings (Rated by Transport and Communications Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track The last tranche is processed within 1 year of the year projected in the RRP. Undertakings Compliance On Track Compliance actions are ongoing. Tranche Performance On Track Tranche 1 is On Track while Tranche 2 is For Attention because of Safeguards compliance (submission of SAMR is pending). Overall MFF Performance On Track Both tranches are On Track to achieving planned Outputs and Outcome.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

48 Bangladesh

Go to List of Countries Page 40540-016 BAN : South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2

40540-016 BAN : South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 (as of 31 - Dec - 2020)

This report was prepared by Yasushi Tanaka and validated by Ravi Peri, Transport and Communications Division, SARD 40540016 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 24-Oct-2017 31-Aug-2027 9.85 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 1200 1200 0 Total ($ Million) Cofinancing Sources Non-administered a 242.52 Japan International Cooperation Agency Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,2 tranche/s USD 742.7 million were approved. The project will improve the road connectivity and efficiency of Dhaka-Northwest international trade Project Description corridor. To ensure the sustainability of the outcome, an associated technical assistance is proposed to assist the government in updating its master plan for roads and improving its planning capacity. Link to the RRP of the https://www.adb.org/projects/documents/ban-40540-016-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 742.7 61.9% 3.19 32.4%

50 3. Cumulative Disbursements (in $ million)

Approved Tranches 2018 2019 2020 Total (with loan status) South Asia 1.6 116.8 193.5 193.5 Subregional Economic Cooperation Dhaka- Northwest Corridor Road Project, Phase 2 - Tranche 1 (Active) South Asia 0.3 0.3 Subregional Economic Cooperation Dhaka- Northwest Corridor Road Project, Phase 2-Tranche 2 (Active) Total 1.6 116.8 193.8 193.8

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with An efficient and modern road transport system in Bangladesh achieved.

Subregional connectivity and trade improved.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Road connectivity of the Dhaka-Northwest Use of project roads (average daily vehicle- To be measured after project completion. international trade corridor improved. km in the first full year of operation) reaches 8.31 million vehicle-km Risks Assessment of Current Status Inadequate post-project road operation and maintenance Not an issue, as the civil works are ongoing. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Phase 2 of the Dhaka-Northwest 190 km of road upgraded with climate Progress of the works was 12.26% as of 31 international trade corridor (Elenga- resilient design December 2020.The procurement of 7 Hatikumrul-Rangpur section) upgraded (WP-06 to WP-12) civil works packages for road improvement, and recruitment of supervision consultants have been completed under Tranche 1 (L3592/93) of Phase 2 project. The contracts were awarded and contractors were mobilized. Bidding for remaining 3 packages under Tranche 2 (L3883) for road improvement is

51 Phase 2 of the Dhaka-Northwest ongoing. international trade corridor (Elenga- Gender-responsive infrastructure, including At present, improvements are ongoing for Hatikumrul-Rangpur section) upgraded 380 lane-km of SMVT lane, 7.5 lane-km of 176.8 KM of existing road under seven work footpath, 25 foot bridges, and 39 packages. underpasses constructed RHD's institutional capacity in road One road research and training center at Procurement for construction of road operation and management enhanced Dhaka and three road operation units for research and training center and road road safety, maintenance, and overloading operation unit for road safety maintenance, control established along the corridor etc. under package WP-14 and WP-15 is ongoing. Road Master Plan updated The TA consultant has been engaged under the associated TRTA since September 2019. Progress of the consulting services has been delayed due to COVID-19 outbreak in Bangladesh. The contract completion was extended to 31 December 2021 stronger road safety and gender-responsive 70 km of road upgraded with stronger road Progress of the works was about 85% as of features, and cost overrun for phase 1 of safety and gender features (additional two 31 December 2020. As a Gender responsive the Dhaka-Northwest international trade flyovers, two bridges for slow-moving roadway feature 30 lane km of footpath corridor (Joydeypur-Chandra-Tangail- vehicles, six underpasses, and 30 lane-km of construction work is in progress in the Elenga) financed and completed. footpath) urban locations of the project road and is likely to be completed within March 2021. Remaining activities expected to be completed within June 2021 Knowledge product on the project’s gender Not yet started. impact disseminated Risks Assessment of Current Status Unstable security and political conditions delay project Close monitoring of the security and political issues. implementation Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Tranche 1 and Tranche 2 of the MFF has a Tranche 1 and Tranche 2 of the MFF has a 31-Aug-2027 total of 52 loan covenants/undertakings total of 52 loan covenants/undertakings, 49 are fully complied/being complied, and 3 are partially complied

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.�

F. MFF Performance Ratings (Rated by Transport and Communications Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track All works are expected to be completed as planned. Undertakings Compliance On Track Most of the undertakings are being complied with.

52 Tranche Performance On Track Tranche-1 & Tranche-2 are approved . Progress is satisfactory. Overall MFF Performance On Track The MFF performance is on track despite slow progress in civil works contracts. Limited activities at all 7 sites have been initiated from 31 May 2020 after GOB opening due to COVID-19 pandemic. Progress has been hampered due to COVID1-19 pandemic and significantly affected progress. Accelerated time bound action plan has been agreed during loan review mission of the project in September 2020 and staff is regularly following-up with the Executing Agency (EA) for timely completion of the project.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

53 42180-016 BAN : Third Public-Private Infrastructure Development Facility

42180-016 BAN : Third Public-Private Infrastructure Development Facility (as of 31 - Dec - 2020)

This report was prepared by Dongdong Zhang and validated by Sabyasachi Mitra, Public Management, Financial Sector, & Trade Division, SARD 42180016 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 18-Jul-2017 31-Dec-2023 31-Dec-2023 6.46 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 526 526 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,1 tranche/s USD 260.3 million were approved. The Third Public-Private Infrastructure Development Facility (PPIDF 3) is a continuation of the work carried out under the Public-Private Infrastructure Development Facility (PPIDF 1) and the Second Public-Private Infrastructure Development Facility (PPIDF 2) in addressing the infrastructure deficiencies in Bangladesh. Through the two earlier interventions, ADB has provided long-term debt financing and catalyzed private sector participation through the implementing agency, i.e. Infrastructure Development Company Limited Project Description (IDCOL) which substantially contributed to economic growth in the country. The design of the project serves to catalyze commercial financing for public-private partnership (PPP) projects, thereby reducing the pressure of direct financing on the public budget. An additional objective of the facility is to help provide the rural population and small to medium enterprises with clean and affordable electricity either through grid-connected or off-grid energy efficiency and renewable energy solutions. Solar home systems (SHSs) will not be financed under PPIDF 3 given the market saturation and availability of funding from partner donors. Link to the RRP of the https://www.adb.org/projects/documents/ban-42180-016-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB ADB's own CA Approved tranches (with loan status) Effective Date administered Overall FM Disb % Safeg. OutputValidated sources % Closing Date sources Third Public-Private Infrastructure 11-Aug-2017 260.3 0.0 1.00000 On % 100% On On Yes Development Facility-Tranche 1(Active) 14-May-2018 On Track Track Track Track

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 260.3 49.5% 3.46 53.6%

54 3. Cumulative Disbursements (in $ million)

Approved Tranches 2018 2019 2020 Total (with loan status) Third Public-Private 22.3 120.6 224.8 224.8 Infrastructure Development Facility-Tranche 1 (Active) Total 22.3 120.6 224.8 224.8

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Investments in infrastructure increased (Bangladesh Seventh Five Year Plan, FY2016-FY2020)

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Private sector investments in infrastructure, $650 million of private sector investments A total of $573.2 million private sector including renewable energy leveraged in eligible infrastructure subprojects investment has been catalyzed so far catalyzed through the regular OCR through the regular OCR, excluding amount component of PPIDF 3 (2015 baseline: $332 for City Seed Crushing Industries Ltd., which million of private sector investments is still being finalized. catalyzed under PPIDF 1 and $293 million catalyzed under PPIDF 2) $15 million of private sector investments This is to be determined at the end of 2021 for renewable energy and energy efficiency subprojects catalyzed by the concessional OCR loan component of PPIDF 3 (2015 baseline: No medium-sized and large-scale renewable energy subprojects; $7 million of SHSs funded under PPIDF 2) Risks Assessment of Current Status Economic slowdown in Bangladesh resulting to reduction on GDP No impact. spending on infrastructure development Lack of enabling conditions, including policy and regulatory reforms to incentivize private sector investments Problem Action Taken/Proposed None Not Applicable

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Available long-term debt financing for At least eight infrastructure subprojects Below are the subprojects that got infrastructure projects increased (including renewable energy and energy approved and disbursed under this project: efficiency subprojects with each total Notun Bidyut $70 million, Kushiara Power subproject cost in excess of $10 million) Company Ltd. $50 million, Summit financed under PPIDF 3 utilizing $500 Communications Ltd. $11.8 million, USA million ADB regular OCR resource envelope Agro and Auto Bricks Ltd. $ 1.7 million, Robi

55 Available long-term debt financing for (2016 baseline: a combined total of five Axiata $47 million , City Edible Oil Ltd. $10.6 infrastructure projects increased approved subprojects funded under PPIDF 1 million, City Seed Crushing Industries Ltd and PPIDF 2) $15.9 million, DBL Industrial Park Ltd. $10.3 million and Sympa Solar Power Ltd. $7.3 million. These projects are in power, telecommunication, special economic zone and renewable energy sectors. At least two renewable energy subprojects USA Agro and Auto Brick Ltd ($1.7 Million) (with each total subproject cost below $10 and Sympa Solar Power Ltd. ($7.3 million) million) financed under PPIDF 3 using the were financed under the project’s ADF loan $26 million concessional OCR resource for renewable energy projects. envelope (2016 baseline: none) Take-out financing for infrastructure At least one eligible subproject refinanced One subproject (KPCL) approved and $50 projects catalyzed through take-out financing by IDCOL (2016 million disbursed. baseline: No take-out financing under PPIDF 1 and PPIDF 2) IDCOLs institutional capacity strengthened Integrated risk management framework Framework being developed. developed and implemented (2016 baseline: none) Treasury management framework Framework being developed developed and implemented (2016 baseline: none) Integrated resource management system Framework being developed developed and implemented (2016 baseline: none) Safeguards capacity building plan for Framework being developed improving social and environmental risk mitigation and gender equality results developed and implemented (2016 baseline: none) IDCOL’s midterm business and strategy plan Framework being developed developed and implemented (2016 baseline: none) Risks Assessment of Current Status Lack of bankable infrastructure projects to encourage private The pipeline has been revamped. sector participation Potentially challenging when renewable energy portfolio has Lack of available renewable energy projects ready for financing suffered from a challenging market environment. IDCOL is closely Lack of good performing infrastructure loans (assets) eligible for reviewing potential renewable energy subprojects which meet the takeout financing project criteria to be considered for the pipeline. Key staff in IDCOL leaves A robust pipeline has been created with qualified subprojects. Lack of commitment from IDCOL’s Board and management to Low-level turnover has not affected operations. execute and sustain the activities under the institutional building IDCOL’s board has been supportive of any institutional plan development initiative. Problem Action Taken/Proposed None Not Applicable

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Legal, regulatory, or institutional changes Complied. 31-Dec-2020

Refer to Operations Manual section D14.

56 E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 15-Nov-2020 1st extension of L3554/3555 loan closing date by 12 months from 31Dec20 to 31Dec21 due to delayed construction and implementation of a number of projects under consideration due to the onset of COVID19 pandemic which impacted businesses in all sectors.

F. MFF Performance Ratings (Rated by Public Management, Financial Sector, & Trade Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track In 2020, the project implementation was delayed by the COVID Pandemic, but the disbursement picked towards the fourth quarter as PPP subprojects restarted. One year extension (minor change) was granted to fully implement the project, although by the end of 2020, most of the funds were disbursed. The processing of tranche 2 is about to start. Undertakings Compliance On Track The new pipeline consists of qualified subprojects with safeguards in place. Overall compliance undertakings are satisfactory. Tranche Performance On Track The approval of new subprojects, contract award and disbursement were concentrate in the fourth quarter after the shutdown was partially lifted. Overall tranche performance is satisfactory based on revised timeline. Overall MFF Performance On Track Due to Covid-19, project related work was suspended for 6 months, after reopening, with the support of IDCOL, majority of the fund was disbursed by the end of 2020. The project was extended for one year to allow full implementation.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

57 42378-014 BAN : Power System Expansion and Efficiency Improvement Investment Program (Facility Concept)

42378-014 BAN : Power System Expansion and Efficiency Improvement Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Tika Limbu and validated by Manmohan Parkash, Bangladesh Resident Mission, SARD 42378014 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 28-Nov-2012 31-Dec-2018 31-Oct-2022 9.93 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 700 700 0 Total ($ Million) Cofinancing Sources Non-administered Agence Francaise de Developpement; European Investment Bank; Islamic a 671 Cofinancing Development Bank Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 656.9 million were approved. The proposed investment program includes three tranches encompassing generation expansion and associated transmission and distribution improvements. Tranche 1 mainly focuses on generation expansion. Tranche 2 focuses on transmission and distribution improvement. Tranche 3 also invests on generation expansion. Generation expansion in the MFF will be undertaken through supply side energy efficiency improvement so that about 50% power can be generated without burning additional gas. Given the acute gas shortages in Bangladesh, conversion of single cycle gas fired power plants to combined cycle technology is adopted as a means to increase generation capacity in the investment program. The sequencing of the tranches is well aligned with the sector needs and the government program.

Project Description The Tranche 1 of the proposed Power System Expansion and Efficiency Improvement Investment Program will address two key areas in the power sector aligning with the priorities identified in the CPS: improving energy use efficiency of thermal power plants; and improving the transmission network capacity. The project interventions will include: (i) adding 235 MW capacity by conversion of four single cycle gas fired power plants to combine cycle plants at Khulna, Baghabari, Sylhet and Shahjibazar; (ii) construction of 180 km 132 kV transmission lines and four 133/32 kV substations; and (iii) capacity building. The capacity building component includes training on investment planning, operations planning, energy auditing and monitoring, financial management and auditing, project preparation and appraisal, and operation and maintenance of solar irrigation pumps. In addition, the capacity building component will provide consultants for preparation of subsequent tranches and implementation support. Link to the RRP of the http://www.adb.org/projects/documents/power-system-expansion-and-efficiency-improvement-investment- MFF program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

58 Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources Power System Expansion and 9-Dec-2013 272.3 0.0 1.00000 On 100% 92.499% On On Yes Efficiency Improvement 14-Mar-2014 On Track Track Track Investment Program - Tranche Track 2(Active) Power System Expansion and 8-Dec-2015 205.0 0.0 1.00000 On 100% 100% On On Yes Efficiency Improvement 5-Jan-2016 On Track Track Track Investment Program - Tranche Track 3(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 656.9 93.8% 8.09 81.5%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Power System 0.4 19.5 87.6 130.7 162.4 173.0 179.6 179.6 Expansion and Efficiency Improvement Investment Program - Tranche 1 (Closed(1)) Power System 16.0 97.0 155.6 214.8 241.8 251.9 251.9 Expansion and Efficiency Improvement Investment Program - Tranche 2 (Active) Power System 0.2 4.0 35.7 107.7 133.4 133.4 Expansion and Efficiency Improvement Investment Program - Tranche 3 (Active) Total 0.4 19.5 103.7 227.9 322.1 423.5 529.1 385.3 564.9

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased energy sector contribution to low-carbon economic growth in Bangladesh

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets

59 Increased access to clean and reliable Electricity supply increased from 26.6 TWh Electricity supply increased from 26.6TWh supply of electricity in Bangladesh in 2011 to 40.8 TWh by 2020 in 2011 to 69.64TWh in 2020.

Reduced CO2 emissions by 2.48 million tons No public data available. BPDB has stopped CO2 per year by 2020 against the baseline producing CO2 emission Data and DoE has of 67.20 million tons CO2 in 2011 taken the responsibility. DoE's data is yet to be available to Public. Risks Assessment of Current Status None. Not Applicable. Problem Action Taken/Proposed None. Not Applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved efficiency in electricity Energy efficiency of selected power plants Among the five power plants Khulna 225 generation, transmission, and distribution increase from 32% in 2012 to 50% by 2020 MW, Sylhet 150 MW, Baghabari 100 MW, Shahajibajar 70MWp and Ashuganj 400MW power plants planned under the MFF (two ADB financed, one IsDB financed, and two EIB financed), two have been cancelled and one is taken over by the Government for self-financing. The ADB financed Khulna 225 MW CCPP is completed in June 2016 and Ashuganj 400MW CCPP is under construction. Energy efficiency of Khulna 225MW CCPP has increased to 46% in 2016 from 32% in 2012. Energy efficiency of Ashuganj 225MW CCPP is expected to increase to 32% in 2016 from 57% in 2021. Transmission losses reduced from 3.3% in Transmission loss reduction achieved as- 2012 to 2.50% by 2020 (i) 2.92% in 2013 (ii) 2.82% in 2014 (iii) 2.77% in 2015 (iv) 2.86% in 2016 (v) 2.67% in 2017 (vi) 2.60% in 2018 (vii) 2.76% in 2019 (viii) 2.93% in 2020 Distribution losses reduced from 13.1% in Distribution loss reduction achieved as- 2012 to 11.0% by 2020 (i) 12.30% in 2013 (ii) 11.96% in 2014 (iii) 11.36% in 2015 (iv) 10.96% in 2016 (v) 9.98% in 2017 (vi) 9.60% in 2018 (vii) 9.35% in 2019 (viii) 8.73% in 2020

Up to 450,000 new power connections by Number of power connections increased to 2020 37 million in 2020 from 14.3 million in 2013; 22.7 million consumers added from 2014-2020 period.

60 Increased renewable energy use Solar power generation for irrigation No progress. This component was not a increased by 1800 MWh per annum by 2020 scope under any of the three tranches. There is no allocation and no EA selected for this. Enhanced capacity of power sector agencies 50 power sector personnel (males/females) Completed. The capacity building and farmer organizations trained on investment planning, operations component was scoped under Tranche 1 planning, energy auditing, and monitoring that completed in December 2019. 463 by 2016 power sector personnel have been trained on investment planning, operations planning, energy auditing and monitoring by the end of 2016 Members of 20 farmer organizations This output was not pursued under this (males/females) are trained on operation MFF. The agenda is carried out through and maintenance of solar irrigation pumps ADB loan 2769-BAN (2000 solar irrigation by 2016 pumps for agricultural irrigation). 20 power sector personnel (males/females) Completed.–169 power sector personnel trained on financial performance, auditing, have and governance by 2016 been trained on financial performance, auditing, and governance by the end of 2016. Project management system in place Functioning four project management units Done. 12 PMUs have been established in by 2013 BPDB, NWPGCL, PGCB, DPDC, DESCO, BREB and Power Division.

Under Tranche 1, 4 PMUs were established within 2013 (BPDB, NWPGCL, MPEMR, PGCB);

Under Tranche 2, 5 PMUs were established within 2015;

Under Tranche 3 , 3 PMUs were established within 2016. Risks Assessment of Current Status None. Not Applicable. Problem Action Taken/Proposed Co-financiers declined financing in three power plants planned One power plant is taken over by GoB under self financing. under this MFF, affecting output 1. Remaining two power plants are cancelled.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Limit the BPDB's role to a holding company, The process of limiting BPDB's role as a 17-Jan-2021 gradually limiting its activities to planning, holding company and it's control in power supervision and monitoring of the power generation and distribution has been sector activities and phase out BPDB's direct started, but the progress is slow. It may take control on power generation and time till the end of the MFF period. distribution, thereby leaving sector companies under it to operate as independent and financially sustainable companies. Ensure preparation of tariff reform master Tariff reform master plan is yet to be 17-Jan-2021 plan by end of December 2014, integrating finalized. However, matching of energy and both gas and power sectors to ensure full electricity prices by BERC is being complied

61 cost recovery of power sector operations with. EMRD started to count in the and its full implementation to ensure that imported LNG cost in fixing the revised gas EAS receiving financing under the tariff from 2019. All power transmission and investment program operate on full cost distribution utilities started to submit recovery basis with matching electricity annual tariff revision petition to BERC from tariff revenues, based on the tariff revisions 2018. BERC holds public hearing to launch approved by the Bangladesh Energy new gas and power tariff. Regulatory Commission. Ensure gradual decommissioning of small Effort on gradual decommissioning of small 17-Jan-2021 independent power producers and rentals independent power producers and rentals for efficient use of natural gas and to are slow. Small power plants are still reduce excessive costs of power generation. required in peak seasons. It is expected that after the large gas fired power plants including ADB financed Rupsha 800 MW CCPP becomes operational, the decommissioning will get momentum.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF.

F. MFF Performance Ratings (Rated by Bangladesh Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 1 was completed in December 2019. Tranche 2 will be completed in June 2021 and Tranche 3 will be completed in 2021. Undertakings Compliance On Track All covenants are being complied with good progress. Tranche Performance On Track All Tranches are ok. Overall MFF Performance On Track Overall MFF performance is On Track. The two ongoing tranches (Tranche 2 and Tranche 3) were significantly affected by the COVID-19 pandemic in 2020. APSCL's Power Plant, PGCB's Substations, DESCO's Substations faced significant delay as the material import was stopped due to the worldwide/nation-wide lockdown from March-May. The experts residing in other countries couldn't travel due to flight restrictions. Tranche 2 had to be extended for six months and Tranche 3 needs at least one year extension.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Power System Expansion and Efficiency Improvement Investment Program - Tranche 1 : Project Completion Report prepared by SAEN, SARD

62 42466-014 BAN : Skills for Employment Investment Program

42466-014 BAN : Skills for Employment Investment Program (as of 31 - Dec - 2020)

This report was prepared by Sunhwa Lee and validated by Sungsup Ra, Human and Social Development Division, SARD 42466014 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 19-May-2014 18-May-2024 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 380 350 30 Total ($ Million) Cofinancing Sources Non-administered a 499.5 To Be Determined-Others Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 350.6 million were approved. The investment program supports the Government of Bangladesh's reforms in skills development, anchored in the National Skills Development Policy (NSDP), 2011. It supports large-scale private sector involvement and public-private partnership, which is critical to meet existing and future labor market needs and to reduce skills gap. This in turn is crucial for Bangladesh to move away from the 'low-skill, low-wage equilibrium' to a 'higher skill, higher wage virtuous cycle' to become a middle-income country. Project Description The investment program helps the government scale-up skilling of new entrants and up-skilling of existing workers to contribute to higher growth of priority sectors. It strengthens skills development in Bangladesh by establishing a unified funding system (National Human Resource Development Fund) and enhancing overall coordination of the currently fragmented system through the National Skills Development Authority. Link to the RRP of the http://www.adb.org/projects/documents/skills-employment-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards 63 2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 350.6 92.3% 6.62 66.2%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Skills for 5.0 9.9 22.7 52.6 72.6 91.2 95.6 95.6 Employment Investment Program - Tranche 1 (Active) Skills for 5.3 13.9 37.8 56.0 56.0 Employment Investment Program - Tranche 2 (Active) Skills for 10.9 10.9 Employment Investment Program - Tranche 3 (Active) Total 5.0 9.9 22.7 58.0 86.5 129.0 162.5 162.5

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased income and productivity of the working population aged 15 years and over.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Increased employment in priority sectors Employment increased in formal sector The latest national data (2016-2017 Labor and skills for males and females. (baseline 2010: 12.5% [M: 14.5%, Force Survey) indicates formal sector F: 7.7%]) to 20% by 2021 (M: 22%, employment of 14.9% (M:17.9%; F:8.2%). F: 16%) (NSDP 2, 3, 5, and 17) Youth unemployment decreased (baseline The latest national data (2016-2017 Labor 2010: 8.7% [M: 7.8%, F: 9.2%]) to 7.2% by Force Survey) indicates unemployment for 2021 (M: 7%, F: 7.5%) ages 25-34 at 5.7% and for ages 15-24 at 12.3%. Share of vocational training in labor force Comparable definition for the share of increased (baseline 2010: 4% [M: 76%, vocational training not available in the F: 24%]) to 12% (M: 65%, F: 35%) by 2021 latest national report (2016-2017 Labor (NSDP 17 and 22) Force Survey). Risks Assessment of Current Status Slow progress in addressing legal issues and binding capacity SEIP has been implementing various elements of NSDP as of Dec constraints slow NSDP implementation. 2020, including the establishment of unified funding mechanism and the National Skills Development Authority. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

64 Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets market responsive inclusive skills training By 2021, 1.25 million new entrants and As of 31 Dec 2020, 434,854 total trainees delivered existing workforce trained (F: 30%) enrolled under Tranches 1, 2 and 3, of whom 31% were female. By 2021, 70% of trained participants (F: 30%) As of 31 Dec 2020, the number of certified employed and self-employed within 6 new entrants was 343,387 out of whom months (baseline 2013: less than 40%) 241,853 (70%) were employed. No Tranche 3 training has been completed to date. By 2021, 200,000 poor and disadvantaged As of 31 Dec 2020, 72,572 poor and (F: 40%) granted financial support disadvantaged trainees received special stipends, of whom 50% were female. quality assurance system strengthened By 2021, 15 training packages (standards, As of 31 Dec 2020, 87 competency learning materials and assessment tools) standards have been created and aligned with NSDP requirement implemented; 60 learning materials have implemented been produced; and 87 assessment tools have been developed. By 2021, 1.19 million certificates issued As of 31 Dec 2020, 393,466 were certified in (F: 30%) Tranche 1 and 2, of whom 31% were female. By 2021, 150 courses and training materials As of 31 Dec 2020, 60 competency-based endorsed by BTEB learning materials have been developed by SEIP and validated by the BTEB, and 47 of 87 competency standards developed by SEIP were endorsed by BTEB. By 2021, 100 public training providers As of 31 Dec 2020, 116 public training registered with BTEB providers have been registered with SEIP support. By 2021, 3,000 trainers and 1,000 industry As of 31 Dec 2020, about 2826 trainers and assessors certified (F: 25%) 205 assessors have completed ToT By 2017, TOT facilities development plan, ToT programs ongoing in partnerships with including PPP and twining arrangement, different overseas and local institutions. developed By 2021, 50,000 persons (F: 30%) certified RPL Program has been dropped from through RPL Tranche 1 due to overlapping efforts with the World Bank program. institutions strengthened By 2017, a new ministry or authority for The NSDA bill was passed by the parliament skills established on 18 September 2018 and it was established under the Prime Minister's Office. Key positions of NSDA have been filled and additional positions are being filled. Detailed operational plans are being finalized while key activities are ongoing. By 2017, MTBF for skills development As of 31 Dec 2020, MTBF will be part of the implemented revised national skills development policy discussions, which is ongoing. By 2015, the NHRDF established and by NHRDF was established on 16 May 2018. 2018 fully operating with diversified funding The Board was appointed and detailed (vouchers, student loan, stipends, taxes operational plans are under finalization with and/or levies) SEIP support under the Ministry of Finance. By 2018, 90% of skills training fund NHRDF operationalization plans are under channeled through the NHRDF by final preparation process.

65 institutions strengthened By 2020, at least 15 ISCs in priority sectors Three ISCs (RMG and Textile Industry, fully functioning (baseline: 9 ISCs formed) Construction and Light Engineering) are now operational and implementing the targeted activities set for them with SEIP support. Other ISCs are being supported by other development partners. By 2020, 100 public training institutions Public institutes (about 116) under SEIP granted delegation of powers partnership granted partial delegation of powers for SEIP program. By 2021, job placement system fully Operationalized. operational at all levels (training providers and proposed new ministry or authority for skills) effective program management By 2017, MTBF guide completed As of December 2020, MTBF will be part of the revised national skills development policy discussions, which is ongoing. By 2017, sector MIS system functioning Real time Trainee Management System (TMS) created under Tranche 1, which is being used for monitoring various aspects of SEIP training. By 2014, a robust tracking system TMS established and operationalized with established at the SDCMU inputs from all training programs. Continuous improvement of the system is also ongoing. By 2021, results disseminated from three First tracer study and employer satisfaction tracer studies, three employer satisfaction survey have been completed, and the surveys, and three skills-gap analysis in each second is being prepared. The first skills gap sector by 2021 analysis has been completed and the second is ongoing. Financial management and procurement Being implemented. action plan implemented annually based on lessons learned Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The Government will ensure that the key Being complied with 15-Jan-2021 reforms envisaged under the current Program as highlighted in the SEIP Policy Matrix, which includes a note on key reforms anticipated, are implemented, including: (a) supporting the setting up of the National Human Resource Development Fund by 2015 to promote unified funding, (b) supporting the establishment of a new ministry of human resource development or an skills authority to ensure strong coordination and effective monitoring of skills development initiated by the NSDC

66 and supported by NSDP, (c) scaling up skilling/up-skilling to meet emerging labor market needs of particularly high growth industries and skills levels, (d) catalyzing the private sector involvement in skilling/up- skilling the labor force in collaboration with industries and industry skill councils, (e) strengthening quality assurance including training of trainers, assessors and managers, development of standards for priority sectors and skills levels, strengthening the capacity for assessment and certification, and (f) enhancing monitoring and evaluation to ensure high quality training of targeted groups with high labor market outcomes.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Human and Social Development Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 1 was completed on 31 December 2020; financial closing is ongoing. Tranche 1 is expected to be financially closed in 2021. Tranche 2 is expected to close on 30 June 2022 while Tranche 3 approved in October 2019 is expected to close on 18 May 2024. Undertakings Compliance On Track Key undertakings are being complied with. Tranche Performance On Track All tranches are on track. Overall MFF Performance On Track Overall MFF performance is on track. All training was suspended during 2020 due to COVID-19, and some of industry-based training has resumed since, with safety measures. Additional training will resume from early 2021 once safety measures are in place.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

67 44167-013 BAN : Flood and Riverbank Erosion Risk Management Investment Program

44167-013 BAN : Flood and Riverbank Erosion Risk Management Investment Program (as of 31 - Dec - 2020)

This report was prepared by Olivier Drieu and validated by Mio Oka, Environment, Natural Resources & Agriculture Division, SARD 44167013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 26-Jun-2014 30-Jun-2023 9.01 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 288.3 255 33.3 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,1 tranche/s USD 73.5 million were approved. ADB is assisting the Government of Bangladesh to improve the livelihoods of people in the country's most flood and erosion prone areas along the Jamuna, Ganges and Padma rivers. The Flood and Riverbank Erosion Risk Management Investment Program is in line with the plans of the government to strategically manage flood and riverbank erosion risks along the country's main rivers to reduce damages to people's assets and to lessen constraint to economic development. It will finance the construction of riverbank revetments to protect vulnerable riverbanks and therefore assets and flood embankments behind the riverbanks from progressive erosion. Flood embankments will also be rehabilitated or constructed. The investment program will include training for communities to develop their capacity to Project Description operate and maintain the structures and to manage flood and erosion risks at the community level. The community capacity development will be combined with livelihood improvement supports. The investment program will include the construction of about 44 kilometers (km) of riverbank protection structures; rehabilitation and construction of 29 km of flood embankments with climate-resilient design (updated investment program targets including anticipated reduced scope for Tranche 2 to be completed during the availability period of the MFF); and a piloting of innovative riverbank protection structures. The investment program will also support the national-level institutional capacity strengthening for more strategic planning and implementation of flood and erosion risk management. This will improve the lives of the people in the affected areas. Link to the RRP of the http://www.adb.org/projects/documents/flood-and-riverbank-erosion-risk-management-investment- MFF program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 73.5 25.5% 6.52 72.4%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Flood and Riverbank 4.9 18.1 37.9 56.4 65.3 69.3 71.5 71.5 Erosion Risk Management Investment Program - Project 1 (Active) Total 4.9 18.1 37.9 56.4 65.3 69.3 71.5 71.5

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with improved livelihoods in the project area.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets reduced flood and riverbank erosion risks in By 2023: Under Tranche 1, 21 km of flood the subproject areas. embankment, providing protection from 122,000 ha of land protected from inundation for 3,600 ha have been inundation damages (baseline = 0) completed; community-based flood risk management units were formed and activities are anticipated to be continued under Tranche 2. Around 2 million of population protected Under Tranche 1, completed works protect from inundation damages (baseline = 0) 0.1 million people from inundation damages. 461 ha of lands with assets protected from Under Tranche 1.18 km of riverbank bank erosion (43 ha in 2013) protection works were constructed, protecting 200 ha of land from erosion. Risks Assessment of Current Status Floods exceed design return periods. The risk has not occurred so far but it remains. River morphological changes exceed the planned range. The risk occurred: morphological changes resulted in necessary adjustments to the scope of works for Tranche 2. Also, going forward the risk remains. Problem Action Taken/Proposed The designed outcome of the investment program will likely not be Tranche 2 will be processed as a final tranche but due to the achieved due to delays in processing subsequent tranches, remaining time until the end of the availability period, it will have a exacerbated by the COVID-19 pandemic. reduced scope that is currently being discussed with the government.

3. Outputs

69 Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Flood and riverbank erosion risk mitigation By 2023 in subproject areas Under Tranche 1, 18 km of riverbank functioning at priority reaches protection works have been completed by 60 km of riverbank protected by applying applying innovative and cost-effective appropriate technology and methodology approaches for riverbank erosion (baseline=10 km) management, including progressive knowledge development and a pilot of new wave protection technology with jute along 4 km of embankment and riverbank slopes. The newly built infrastructure has performed well since completion.

The reduced scope for Tranche 2 currently anticipates 26 km of riverbank protection works. Total revised target for the investment program is anticipated to be 44 km (instead of 60 km). 89 km of climate-resilient flood For Tranche 1, the embankment length had embankment constructed/ to be reduced from 23 km to 21 km due to rehabilitated/upgraded against 100-year funds constraint. probably floods The reduced scope for Tranche 2 currently (baseline= 0 km in good condition) anticipates 8 km of climate-resilient flood embankment. Total revised target for the investment program is anticipated to be 29 km (instead of 89 km). 66 km of paved roads on embankments Under Tranche 1, pavement works of 5 km (baseline=0) of road have been excluded from the embankment packages due to potential cost overrun.

Paved roads on the embankments will not be financed under the MFF as other government agencies are anticipated to undertake this work with their own funds in the foreseeable future. 8 regulators and other hydraulic structures Under Tranche 1, 7 regulators and other installed. hydraulic structures were originally (baseline=0) planned, but were re-organized into a large structure during detailed design; 4 structures were constructed.

The reduced scope for Tranche 2 currently anticipates that 2 regulators with fish passes will be built. 200 community-based disaster Under Tranche 1, 40 community-based management units operate disaster management units (CDMUs) have disaster-resilience action plan against flood been successfully created in 40 villages, out and erosion disasters with min. 33% of units of which 14 are led by women (i.e. 35%). led by women (baseline=0) The remaining 160 CDMUs with a minimum of 35% of units led by women will be created and made operational under

70 Flood and riverbank erosion risk mitigation Tranche 2. functioning at priority reaches 11 community groups with at least 50% of Recruitment of livelihood NGO has been women participants operate livelihood deferred to Tranche 2 due to funds support programs (baseline=0) shortage. This activity is planned under Tranche 2. Strengthened institutional systems for flood MIS for flood and riverbank erosion with Under Tranche 1, databases for the MIS for and riverbank erosion risk management, sex-disaggregated data developed and flood and riverbank erosion with sex- and operated by BWDB by 2021 disaggregated data have been outlined. A comprehensive module based on further development of 2 existing databases is planned under Tranche 2. 5-year budgetary plan for riverbank Due to funds constraint under Tranche 1, protection O&M and emergency work for the community based O&M activities have the main rivers endorsed by BWDB by 2018 been deferred to Tranche 2. However, a comprehensive plan has been developed under Tranche 1 and submitted in 2020 and is still awaiting the EA’s endorsement. Long-term strategic river stabilization plan Completed. Under Tranche 1, a long-term taking climate change impact into account strategic plan for stabilization of main rivers endorsed by BWDB by 2016 of Central Bangladesh has been developed and endorsed by the EA in 2020. (i) New morphological short-term erosion Under Tranche 1, pilot studies were prediction model developed: 1 set* conducted for a new morphological short- (ii) Updated Guidelines for the River Erosion term erosion prediction model and river Protection published: 1* survey data collected as a base to then (iii) International publication/ presentation update the guidelines under Tranche 2. on project’s lessons learned : 5* nos. Also, papers on project’s lessons learned such as launching geotextile sand-filled bags, morphological processes, and grout- filled jute mattresses have been published and presented at international conferences.

Further publications and presentations are planned under Tranche 2. BWDB project website contained database Under Tranche 1, the project website has of flood and river survey and knowledge been developed and is operational. products by 2023 Establishment of the link to the EA’s webpage and further expansion are planned under Tranche 2. Operational program management systems Outputs completed on time within budget The loan closing date of Tranche 1 has been extended twice at the request of the government: (i) from 30 June 2019 to 30 June 2020 to make up for delays due to land acquisition; and (ii) from 30 June 2020 to 31 March 2021 to enable works to be completed while managing the impacts of COVID-19. All works were completed in June 2020.

Due to currency fluctuations, the US Dollar equivalent of the loan decreased to $58.2 million, resulting in a few activities being deferred to Tranche 2 project, such as (i) livelihood development support; (ii) community capacity development support

71 for participatory operation and maintenance; (iii) information system development; (iv) environment management and risk mitigation programs; and (v) construction of 8 km of flood embankment. Risks Assessment of Current Status None. Under Tranche 1, delays in land acquisition by Deputy Commissioners occurred. However, all processes have been substantially completed (final payments to a few land owners are still pending). Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Road Map and Policy and Institutional Not yet due. 30-Jun-2023 Reforms. The Borrower and BWDB shall remain committed to the road map and the Tranche 1 project significantly contributed policy framework underlying the to progressing the road map by: (i) Investment Program and implement the preparing a river stabilization approach policy and institutional reform actions approved by the EA aligned with the identified under the road map in adaptive delta management approach of accordance with the time schedule set out the Bangladesh Delta Plan 2100; (ii) assisting therein. in setting up a river management specialized office in the EA; (iii) supporting an IA (DDM) with implementing community-based flood risk management activities; (iv) piloting new technologies and construction principles; and (v) expanding the knowledge base with systematic data collection and development of information and asset management systems. Policy Dialogue and Coordination with Not yet due. 30-Jun-2023 Development Partners. The Borrower and BWDB shall keep ADB informed, through the Water Consultative Committee or otherwise, of discussions (a) among government and quasi-government bodies with responsibility for water sector development and (b) with Japan International Cooperation Agency (JICA), the Kingdom of the Netherlands, World Bank and other multilateral and bilateral agencies, that have implications for the implementation of the Investment Program, and shall provide ADB with an opportunity to comment on any proposed interventions in the water sector resulting from such discussions. The Borrower and BWDB shall take ADB's views into consideration before finalizing and implementing any such proposals. Operation and Maintenance of Project Not yet due. 30-Jun-2023

72 facilities. The Borrower and BWDB shall ensure that (a) BWDB inspects and maintains the embankments, regulators and riverbank protection works rehabilitated or constructed under the Investment Program in accordance with the operation and maintenance plans to be developed under the Investment Program; (b) BWDB submits annually to the Ministry of Water Resources budget requests with a separate line item to cover the cost of maintenance and repair of the embankments, riverbank protection works and regulators in accordance with such operation and maintenance plans; and (c) the Borrower will allocate in its annual budget adequate resources for BWDB to carry out such maintenance and repair works and make the resources thus allocated available to BWDB on a quarterly basis. BWDB shall create strategic stockpiles for emergency riverbank protection works and repairs in accordance with the emergency and operation and maintenance plans to be developed under the first Project under the Investment Program. BWDB shall provide local communities with land use rights for embankment slopes rehabilitated or constructed under the Investment Program through five-year lease contracts that are designed to promote livestock grazing, cultivation of trees or other suitable vegetation, or other activities conducive to embankment maintenance in a manner consistent with the operation and maintenance plans to be developed under the Investment Program.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF.

F. MFF Performance Ratings (Rated by Environment, Natural Resources & Agriculture Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk Tranche 2 was originally planned for approval in October 2016 dovetailing its implementation with Tranche 1 in 2017/2018. However, the completion of Tranche 1 implementation as well as the preparation and processing of Tranche 2 have been delayed. Tranche 2 is currently under processing (the fact-finding mission took place from 30 June to 7 July 2020). Undertakings Compliance On Track There are no undertakings that have not been complied with.

Under Tranche 1, riverbank protection works have been completed (18 km), embankment works (21 km) completed and community-based flood risk management activity is ongoing. Tranche Performance On Track Tranche 1 is on-track. Overall MFF Performance On Track Only one tranche is being implemented. Tranche 1 is On Track.

Tranche 1 was due for loan closure on 30 June 2020, but at the request of the government, it was extended to 31 March 2021. This is to enable works to be completed while managing the impacts of COVID-19 pandemic (subsequently all works under Tranche 1 were completed by June 2020).

Also, the COVID-19 pandemic has impacted adversely the preparation and processing of Tranche 2, for example (i) meaningful consultations with stakeholders in the field for a few safeguards documents could not take place; (ii) the government has given priority to other sectors such as health; and (iii) economic crisis potentially looming.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

74 44213-015 BAN : MFF - Secondary Education Sector Investment Program (Facility Concept)

44213-015 BAN : MFF - Secondary Education Sector Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Asako Maruyama and validated by Sungsup Ra, Human and Social Development Division, SARD 44213015 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 27-Sep-2013 30-Jun-2023 9.76 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 576.022 500 76.022 Total ($ Million) Cofinancing Sources Non-administered a 523.5 International Development Association Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 493.8 million were approved. The proposed investment program will support the government's reform of secondary education (grades 6-12) into a system that builds the foundation for a skilled labor force and prepares youths to meet the requirements of a rapidly developing economy. It will support advanced teaching and learning programs that use information and communication technology (ICT), as well as prevocational and vocational programs, teacher development, and examination reforms. It will promote gender-equitable and pro-poor stipends for students. It will help establish more decentralized and efficient allocation and use of Project Description resources, as well as strengthen sector performance monitoring. The investment program will build upon the ongoing Secondary Education Sector Development Program and the Second Teaching Quality Improvement Project. It will further benefit from the experience of the Third Primary Education Development Project, which uses disbursement-linked indicators (DLIs). The investment program links disbursement to the achievement of key results. It will further support the transition to a sector-wide approach. Link to the RRP of the http://www.adb.org/projects/documents/secondary-education-sector-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources Secondary Education Sector 21-Oct-2013 86.8 0.0 1.00000 On 100% 100% On Track On Yes Investment Program - Tranche 6-Dec-2013 On Track Track 1(Active) Track Secondary Education Sector 20-Nov-2015 182.0 0.0 1.00000 On 100% 100% On Track On Yes Investment Program - Tranche 15-Dec-2015 On Track Track 2(Active) Track Secondary Education Sector 26-Mar-2018 225.0 0.0 0.94000 On 100% 100% For On Yes Investment Program - Tranche 13-Sep-2018 On Track Attention Track 3(Active) Track

Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made 75 effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 493.8 85.7% 7.26 74.4%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Secondary 16.0 56.0 80.0 86.8 86.8 Education Sector Investment Program - Tranche 1 (Active) Secondary 20.0 74.0 145.0 172.0 177.0 182.0 182.0 Education Sector Investment Program - Tranche 2 (Active) Secondary 40.0 60.0 60.0 Education Sector Investment Program - Tranche 3 (Active) Total 16.0 56.0 100.0 160.8 145.0 172.0 217.0 242.0 328.8

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased employability of secondary education graduates.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets A more efficient and equitable and higher- Cycle completion rate for Cycle completion rate increased from 46.4% quality secondary education system. grades 6–10 increasing to 58% in 2023 (of (F:43.6%, Madrasah:51.6%) in 2011 to 62.38% which 55% is for girls and 62% for (F:59.81%, Madrasah: 55.12%) in 2018. 2020 madrasahs) cycle completion data are not yet available. (2011 baseline: 46.4% [of which 43.6% is for girls and 51.6% for madrasahs]) Percentage of secondary school certificate Secondary School Certificate (SSC) students students passing with A and A+ increased to passing with A and A+ were 26.86% in 41% in 2023 in secondary school (F: 38%) schools (F: 27.90%) and 27.42% in madrasahs (2011 baseline: 37%, F:34%) and (F: 29.47%)] in 2019. 2020 data are not yet to 51% in 2023 in madrasahs (F: 45%) (2011 available. baseline: 47%, F: 41% Percentage of higher secondary certificate Percentage of higher secondary certificate students passing with A and A+ increasing students passing with A and A+ were 18.14% to 38% in 2023 in secondary school (F: 38%) in colleges (F: 19.34%) and 26.06% in (2011 baseline: 33%, F: 34%) and to 35% in madrasahs (F: 27.07%) in 2019. 2020 data 2023 in madrasahs (F: 30%) (2011 baseline: are not yet available. 31%, F: 26%)

76 Risks Assessment of Current Status Lack of interministry coordination delays the implementation of Coordination among MOE DSHE and co-implementing agencies reform initiatives. needs to be further improved for the implementation of Tranche 3. Problem Action Taken/Proposed The availability of data to monitor progress has been affected due Progress closely monitored through virtual review missions and to the COVID-19. with the support of consultants on the field.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Enhanced quality and relevance of National Curriculum Policy Framework Completed. secondary education approved by 2016 By 2023, revised curriculum implemented in For the implementation of the revised at least 10,000 schools delivering improved curriculum, the scheme Improving Quality content and teaching methodology, and Relevance of Curriculum has been particularly in science, mathematics, and prepared by NCTB and remains yet to be English approved. By 2023, at least 15 teacher training colleges The scheme Strengthening Teachers Quality awarded “centers of excellence” status in & Establishment of Teacher Education science, English, and mathematics Centers has been prepared and remains yet to be approved. By 2023, a revised national examination Results of national public exams (JSC, SSC, implemented HSC) are being reviewed starting from 2015. Meanwhile, review of results of public exams for the years 2015, 2016, 2017, and 2018 completed. By 2017, NSA plan approved NASS (National Assessment of Secondary Students) Plan has been approved on December 2019. By 2023, NSA conducted for grades 8 and The Framework for NASS 2019 for English, 10 Bangla, and Mathematics for Grades 6, 8 and 10 was approved by the MoE on 29 December 2019. NASS 2019 piloting and final survey were conducted. NASS 2019 reports are being finalized as of December 2020 (delayed due to COVID-19). New subject (science) is to be included in NASS 2021. By 2023, e-learning introduced in 3,800 710 ICT Learning Centers (ILCs) which schools with information hubs (40% introduced e-learning have become madrasahs, 20% girls’ schools) functional under Tranches 1 and 2. By 2023, improved prevocational and Pre-vocational and Vocational vocational courses introduced in at least Implementation Plan (PVIP), including ten 100 secondary schools (40 madrasahs, 20 trades, was approved by SHED, MoE under girls’ schools) Tranche 2. 600 teachers (2 teachers per each institution) were appointed under MPO system. Classrooms were constructed, and equipment were supplied to selected schools. Pre-vocational and vocational program started in 640 selected schools [school: 548 (girls' school 5) and madrasah: 92] from January 2020. For the implementation of PVIP program in

77 Enhanced quality and relevance of secondary level institutions, the scheme secondary education Vocational and Technical Education has been prepared and remains yet to be approved. More equitable access and better retention By 2023, 5,000 schools in underserved areas A draft policy guideline on minimum expanded in accordance with the improved standard of school building minimum standard of school construction construction to improve learning set in 2014 environment and gender-responsiveness has been prepared and remains yet to be approved by SHED, MoE. By 2023, at least 80% of 20 million stipend Under the harmonized stipend scheme, recipients retained in school 2,494,405 beneficiaries (male: 904,754 and female: 1,589,651) have been provided stipend amounting BDT 1,228.64 crore for 250 SEQAEP upaziila (from 2017 to 2019) and all other upazillas up to June 2020 except grades XI-XII. Stipend is pending for grades XI-XII for FY 2019-2020. Strengthened secondary education By 2018, plans to delegate responsibilities Management of MPO was decentralized management and governance of education management, including quality from DSHE to all nine Zonal Education assurance at schools, from the DSHE to Offices in June 2015 under Tranche 1. zone, district, and subdistrict education offices approved by the MOE The scheme Strengthening Decentralized Education Management, Governance, M&E System and MPO Rationalization needs to be prepared based on the approved MPO Rationalization Plan by deploying a short term consultant. By 2023, the MOE delegation plan Management of MPO was decentralized implemented according to criteria and from DSHE to all nine Zonal Education targets set Offices in June 2015 under Tranche 1. MPO implementation guidelines and MPO rationalization plan for technical education and madrasa have been approved and published. Those for schools and colleges are to be approved and published.

The scheme Strengthening Decentralized Education Management, Governance, M&E System and MPO Rationalization needs to be prepared based on the approved MPO Rationalization Plan by deploying a short term consultant. By 2023, 350 subdistrict offices physically Delayed implementation for non-availability upgraded and adequate number of staff of sites. Work order issued for five sites, deployed works completed in one site and progressed in three sites. Site searching going on for other offices. By 2023, revised national registration of Teachers Time-Spent-Teaching (TST) teachers piloted from 2017 and guidelines were approved by MOE in 2019. implementation plan developed for The scheme TST was approved in 2020. national rollout Officers need to be appointed and consulting firm to be engaged for implementation.

78 Strengthened secondary education Annual report on secondary education Annual Secondary Education Performance management and governance performance published by the DSHE by Report with improved indicators and sex- April every year from 2017 disaggregated data were published in 2017 and 2018. Draft report for 2019 was prepared but remains yet to be finalized due to COVID-19. By 2023, MOE-led harmonized secondary The Secondary Education Development education program, funded by domestic Program was prepared and approved in and external resources, implemented in line 2018 involving all stakeholders and has with the sector-wide approach road map been under implementation. By 2023, the MOE and the DSHE The DSHE Capacity Development Plan based reorganized and staff deployed according on a systematic institutional assessment was to the MOE plan to strengthen capacity in submitted to SHED. The scheme sector planning, decentralized Strengthening Decentralized Education management, M&E, procurement, and Management, finance and fiduciary oversight; at least 80% Governance, M&E System and MPO of staff training plan implemented Rationalization needs to be prepared based on the approved MPO Rationalization Plan by deploying a short term consultant. The scheme Strengthening Procurement and Fiduciary Management has been prepared and remains yet to be approved. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed Delays in implementation have been exacerbated by COVID-19. Implementation of time-bound action plans agreed during the review missions with the support of consultants on the ground.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date No undertakings in relation to actions on Not applicable. 31-Dec-2020 legal, regulatory, or institutional changes.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to MFF in 2020.

F. MFF Performance Ratings (Rated by Human and Social Development Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranches 1-3 were processed on time as planned. Undertakings Compliance On Track All covenants are being complied with. Tranche Performance On Track All DLI targets have been achieved and fully disbursed under Tranches 1 and 2. Tranche 3 is on track in terms of DLI target achievement. Overall MFF Performance On Track Overall MFF performance is on track. Implementation of various activities has been delayed due to COVID-19. The closing date of Tranches 1 and 2 has been extended by one

79 year to allow all ongoing procurement and contracts to complete. Time-bound action plans agreed during the review missions have been under implementation with the support of consultants on the ground.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

80 46452-002 BAN : South Asia Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1

46452-002 BAN : South Asia Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1 (as of 31 - Dec - 2020)

This report was prepared by Mukund Kumar Sinha and validated by Ravi Peri, Transport and Communications Division, SARD 46452002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 28-Sep-2016 01-Jul-2025 8.76 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 1500 1500 0 Total ($ Million) Cofinancing Sources Non-administered a 99.044 Export-Import Bank of Korea Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,2 tranche/s USD 721.6 million were approved. The project will support the Government of Bangladesh in constructing the 102-kilometer (km) Dohazari-Cox's Bazar section of the Chittagong-Cox's Bazar railway corridor in southeastern Bangladesh. The government is rehabilitating the 47-km Chittagong-Dohazari section with its own funds. The project will also strengthen the capacity of Bangladesh Railway for project implementation management. The South Asia Subregional Economic Cooperation (SASEC) trade facilitation and transport working group endorsed the project at a meeting held in Tokyo on 26 November 2015.

Project Description The government has requested for a multitranche financing facility (MFF) in an amount up to $1.5 billion from ADB's ordinary capital resources (OCR) and Special Fund resources to help finance the project. An MFF using the time-slicing approach is proposed as the modality to finance this large-scale stand-alone project through long-term works, goods and services, and consultant contracts. The project was fully appraised as part of the due diligence for the MFF, and each tranche will finance parts of this project. The MFF allows a long-term partnership with the government for policy dialogue and capacity development. Link to the RRP of the MFF https://www.adb.org/projects/documents/ban-sasec-chittagong-cox-bazar-railway-ph1-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources South Asia Subregional 30-Sep-2016 300.0 0.0 1.00000 On 97.6165% 99.4545% On On Yes Economic Cooperation 25-Sep-2017 On Track Track Track Track Chittagong-Cox's Bazar Railway Project, Phase 1 - Tranche 1(Active) South Asia Subregional 3-Apr-2019 421.6 0.0 0.80000 On 98.1315% 70.9291% On On Yes Economic Cooperation 4-Jul-2019 For Track Track Track Chittagong-Cox's Bazar Attention Railway Project, Phase 1 - Tranche 2(Active)

81 Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 721.6 48.1% 4.26 48.6%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2017 2018 2019 2020 Total (with loan status) South Asia 82.9 116.5 205.0 224.6 224.6 Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1 - Tranche 1 (Active) South Asia 28.4 109.1 109.1 Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1 - Tranche 2 (Active) Total 82.9 116.5 233.4 333.7 333.7

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Efficient and safe railway transport in Bangladesh and improved subregional connectivity and trade

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Railway transport system in the Chittagong- 10 passenger trains operate daily between To be measured after project completion. Cox's Bazar corridor improved Chittagong and Cox’s Bazar 2.9 million annual passengers transported To be measured after project completion. between Chittagong and Cox’s Bazar Cox’s Bazar district connected to the To be measured after project completion. national and subregional railway network Risks Assessment of Current Status Delay in releasing counterpart funds No delay in releasing government funds so far. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance

82 Baselines in the RRP indicators with targets New railway line commissioned 102 km of new railway line constructed. Civil works ongoing. As of 31 December 2020, physical progress of civil works contracts is approximately 44%. 9 stations constructed, integrating design Out of 9 stations, construction is ongoing at features that make them friendly to elderly 6 stations keeping necessary provisions for people, women, children, and people with elderly people, women, children and people disabilities with disabilities. Project implementation capacity of Safeguard monitoring system, public To be monitored. Site condition is Bangladesh Railway strengthened communication plan, and safety awareness workable. Labor camp with associated implemented facilities such as worker rest house, drinking water, toilet facilities, first aid, provision of mosquito net, and healthcare facilities are available on site. Risks Assessment of Current Status Sufficiently-qualified contractors and consultants might not No problem. participate in the project Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Bangladesh shall keep ADB informed of Being complied with. 01-Jul-2025 discussions with other multilateral, bilateral and national aid agencies that may have implications for the implementation of the Investment Plan. Bangladesh shall provide ADB with an opportunity to comment on any resulting policy reform and/or investment proposals, and shall take into account ADB's views before finalizing and implementing any such proposals. Bangladesh shall ensure that Executing Being complied with. 01-Jul-2025 Agency shall implement the Project under the Investment Plan and Facility in compliance with the undertakings and assurances concerning Environmental Safeguards, Indigenous Peoples Safeguards, Involuntary Resettlement Safeguards, gender policy, labor standards, and prohibited investments as set out in Schedule 3,4 and 5 of the Framework Financing Agreement.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Transport and Communications Division, SARD)

83 Criteria Ratings Justifications and Narratives Timeliness On Track Deliverables were a bit delayed due to pandemic but most likely to deliver all outputs within the project implementation period. Undertakings Compliance On Track No non-compliance was observed on Tranches, while there is no progress made on the agreed covenants covered in the MFF's Framework Financing Agreement. Tranche Performance On Track Disbursements in Loan 3438 is almost completed at 97.89%, while Loan 3780 has achieved 25.77% in disbursement as of 30 November 2020. Overall MFF Performance On Track No major non-compliance/deviation observed in terms of timeliness, compliance on tranches 1 and 2 performance.

As part of Covid-19 precautionary measures for the start of the work at site, the EA prepared a COVID-19 Management Plan in light with guideline of the Directorate General of Health Services of Bangladesh to keep workers and staffs safe during this pandemic situation. This COVID-19 Management Plan is being implemented by the contractors, and accordingly EMP is being updated. This was also included in Semi Annual Environmental Monitoring Report (January to June 2020).

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

84 China, People's Republic of

Go to List of Countries Page 50050-002 PRC : Guangxi Regional Cooperation and Integration Promotion Investment Program

50050-002 PRC : Guangxi Regional Cooperation and Integration Promotion Investment Program (as of 31 - Dec - 2020)

This report was prepared by Heng Xia and validated by Yolanda Fernandez Lommen, PRC Resident Mission, EARD 50050002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 1-Dec-2016 31-Dec-2024 8.08 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 450 450 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 310.0 million were approved. The proposed Guangxi Regional Cooperation and Integration Promotion Investment Program will help the Guangxi Zhuang Autonomous Region (GZAR) of the People's Republic of China (PRC) implement its Project Description strategies and action plans for regional cooperation and integration (RCI) with countries of the Association of Southeast Asian Nations (ASEAN), with a focus on developing the North-South Economic Corridor (NSEC) under the Greater Mekong Subregion (GMS) Cooperation Program. Link to the RRP of the https://www.adb.org/projects/documents/prc-guangxi-rcipip-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period

86 310.0 68.9% 4.08 50.5%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2017 2018 2019 2020 Total (with loan status) Guangxi Regional 0.1 30.8 34.0 38.8 38.8 Cooperation and Integration Promotion Investment Program - Tranche 1 (Active) Guangxi Regional 0.0 9.3 21.6 21.6 Cooperation and Integration Promotion Investment Program - Tranche 2 (Active) Total 0.1 30.8 43.3 60.4 60.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with (i) Economic growth potential for border areas in the PRC and Viet Nam realized, (ii) Efficient transport and trade operations along GMS North-South Economic Corridor achieved, and (iii) Economic integration between GZAR and rest of the GMS further strengthened.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Benefits of regional cooperation and Cross-border trade between GZAR and Viet GZAR and Viet Nam trade reached $ 26.1 integration in border areas of Guangxi and Nam doubled. billion. northern Viet Nam captured. Annual cross-border investment between Not yet due. GZAR and Viet Nam tripled Risks Assessment of Current Status Weak coordination between the governments of the PRC and Viet GPMO is liaising with the Viet Nam counterparts. Nam on border area development Problem Action Taken/Proposed The complexity of T1 design leads to difficulties in implementation. Management and advisory support firms were engaged.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Support for SMEs in border areas By 2022, the ratio of PRC and Vietnamese Under compliance with. expanded SMEs serviced by SME financing platforms in Baise, Chongzuo, Fangchenggang, and Qinzhou border prefectures doubled By 2022, business development services Under compliance with. platform established to benefit both PRC and Vietnamese SMEs By 2022, the number of SME workers Training firm was engaged. Trainings are in

87 Support for SMEs in border areas trained by local institutions in Baise, progress. expanded Chongzuo, Fangchenggang, and Qinzhou tripled—with share of Vietnamese reaching 20% and female reaching 33% of total workers Cross-border financial transactions and By 2024, cross-border trade settlement in not yet due. investments increased local currencies in GZAR doubled By 2021, policy recommendations for Policy recommendations are being mitigating non-commercial risks for cross- prepared. border investment between GZAR and Viet Nam adopted Integrated and interoperable cross- border By 2022, ratio of cross-border trade not yet due. e-commerce platforms for the PRC and Viet conducted through e-commerce Nam developed reaches 25% By 2022, 70% of SMEs in border areas have not yet due. access to e-commerce platforms Key infrastructure and trade-related By 2024, 70% of investments in GZAR BEZs not yet due. services in BEZs provided under the PRC–Viet Nam Joint Master Plan for Border Economic Zone Development realized By 2024, road networks in Dongxing, not yet due. Longbang and Pingxiang BEZs and Shuolong border crossing point fully completed By 2024, water supply and sewage not yet due. treatment facilities in Chongzuo and Yuexu industrial parks completed and operational By 2018, coordinated border management Border crossing border point coordination conducted in at least one border-crossing conducted regularly as needed from 2018 point on. Physical and informational connectivity and By 2024, number of class A border-crossing Not yet due. policy coordination improved. points increased to five By 2018, regular (quarterly) consultations GZAR and 3 Viet Nam border provinces between GZAR and Viet Nam northern conducted policy dialogues regularly from border provinces on BEZ and border area 2018. development conducted Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed It has been reported that the difficulty of SMEs to secure credit The enhanced project promotion activities for public awareness of guarantees delayed the progress of development of SME the project, and expanding the project coverage from the original borrowers since 2019. The COVID-19 pandemic significantly limited three border prefectures to the whole GZAR were applied. the cross-border business activities and aggravated financial status of potential sub-borrowers.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The project team is working closely with EA In progress. 12-Mar-2021 and IAs. Various efforts, including a scope change for T1, are being taken to improve the performance of both tranches.

Refer to Operations Manual section D14. 88 E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by PRC Resident Mission, EARD)

Criteria Ratings Justifications and Narratives Timeliness On Track There is some delay but these are managed and are followed up with the executing agency. Undertakings Compliance On Track Being complied with. The progress is being closely monitored to ensure timely compliance. Tranche Performance At Risk T1 is rated as "at risk" for low disbursements and contract awards. A scope change for utilization of loan savings of $21.21 million from L3501 is under processing. The performance of T1 will be improved when the scope change is approved and the new scope is implemented. Overall MFF Performance Potential Problem The project team is working closely with EA and IAs. Various efforts, including a scope change for T1, are being taken to improve the performance of both tranches.

The COVID-19 pandemic started in the end of 2019 delayed the project progress significantly. The most major project implementation activities including construction ceased for about 3 months in the project area. All EA/IAs were required to conduct a risk-based review of project related COVID-19 risks, including the adequacy of environmental, health and safety management plans, procedures and equipment, and the need for updating. Specific actions including the need to update health and safety plans, and review of project circumstances and associated risks were raised by ADB in June 2020. The Health and Safety Plan for COVID-19 was prepared by PMO and submitted to ADB in June 2020. After strong and effective disease control in placed, the project was back to normal in the 2nd half of 2020. However, the second wave of COVID-19 in early 2021 again delayed the due diligence for scope change of tranche 1 and procurement and consulting services under the program. The project team, EA and IAs are exploring alternate ways to accelerate the progress.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

89 Fiji

Go to List of Countries Page 49001-002 FIJ : Urban Water Supply and Wastewater Management Investment Program

49001-002 FIJ : Urban Water Supply and Wastewater Management Investment Program (as of 31 - Dec - 2020)

This report was prepared by Kristina Katich and validated by Masayuki Tachiiri, Pacific Subregional Office in Suva, Fiji, PARD 49001002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 9-Dec-2016 31-Jul-2026 9.64 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 184.24 153.2 31.04 Total ($ Million) Cofinancing Sources Non-administered a 70.8 European Investment Bank Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,1 tranche/s USD 73.1 million were approved. The impact of the proposed investment program will ensure future growth in the greater Suva area (GSA) is sustainable and will improve public health. The outcome will be improved access to sustainable water supply and sewerage services in the GSA. The investment program has three outputs:

Output 1: Supply and access to safe water in the GSA improved. The investment will expand water supply by 40,000 m3 per day by constructing a new supply intake on the Rewa river with associated water treatment plant, pumping station, reservoir, and transmission main to connect to the existing system. Reliable and sustainable long term operations and maintenance practices will be enhanced through a Design-Build-Operate (DBO) contracting arrangement. A catchment management plan will be developed to safeguard the water source and ensure long term sustainability. Non-revenue water (NRW) reduction will be achieved by improving leak detection and repairs; replacing meters; and establishing district metering areas and pressure management systems. Water Authority of Fiji (WAF) will supply 200 liters per capital per day to 315,947 persons by 2023, ensuring continuous supply to 98% of the GSA population. The climate change component of Output 1 will include adaptation measures for building the new Rewa river scheme specifically moving the facility from 29 km to 49 km from the river mouth to avoid future climate change impacts embodied in projected rising sea levels and potential migration of the salt water wedge up the river.

Project Description Output 2: Wastewater treatment (WWT) and management capacity in the GSA increased. The wastewater network will be rehabilitated and expanded by: (i) upgrading 31 existing wastewater pumping stations; (ii) upgrading about 18 km of wastewater trunk mains to increase carrying capacity; (iii) relining 13 km of wastewater trunk mains; and (iv) extending the wastewater network to service an additional 15% of households (approximately 4,500 existing lots in backlog areas) currently using septic tanks. Additionally, the WWT capacity at Kinoya will be expanded by 164% to cover approximately 277,000 person equivalent to treat wastewater from current and future households. By improving the network and expanding the WWT capacity, WAF will ensure that 60% of households in the GSA will have access to a reticulated sewage collection system by 2023. The remaining households with individual septic units will be catered by a fecal sludge management system.

Output 3: WAF management and sustainable service delivery capacity improved. Program management and capacity development support will be provided to: (i) support WAF in the implementation of water demand management, NRW reduction and the national liquid trade waste management programs; (ii) support the Department of Environment (DOE) developing the environmental regulatory framework for treated municipal wastewater discharge, sludge treatment and disposal practices and standards, and associated monitoring and enforcement; (iii) complete the corporatization of WAF; (iv) formulate water safety plans to protect the quantity and quality of water at all source intakes; (v) improve financial management; (vi) promote gender equity; and (vii) study alternatives to reduce the long term energy

91 consumption of the existing urban WWT system. Link to the RRP of the MFF https://www.adb.org/projects/documents/fij-urban-water-supply-and-wastewater-management-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 73.1 39.7% 4.06 42.1%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2016 2017 2018 2019 2020 Total (with loan status) Urban Water Supply 0.3 1.5 1.6 12.6 18.0 18.0 and Wastewater Management Investment Program, Tranche 1 (Active) Total 0.3 1.5 1.6 12.6 18.0 18.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with The impact will be sustainable urban growth and improved public health in the greater Suva area.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Access to sustainable water supply and Proportion of GSA population serviced by Works underway. As of the October 2020 sewerage services in GSA improved water supply network increased to 98% by review mission, the detailed design for the 2023 (baseline 2014: 95%) ICB 1.1.1 contract (DBO: water intake, WTP, reservoir) is complete. Under ICB 1.1.1, over all construction to date 9% completed; Construction has begun at the intake (7%),

92 Access to sustainable water supply and water treatment plant (7%), reservoir sites sewerage services in GSA improved (25%). Under the ICB 1.1.2, construction on the gravity main has begun and over all construction to date 1%. Number of households with interrupted Works underway. As of the October 2020 water service reduced to 500 by 2022 review mission, the detailed design for the (baseline 2015: 2,690) ICB 1.1.1 contract (DBO: water intake, WTP, reservoir) is complete. Under ICB 1.1.1, over all construction to date is 9% completed. Construction has begun at the intake (7%), water treatment plant (7%), reservoir sites (25%). Under the ICB 1.1.2, construction on the gravity main has begun and over all construction to date is 1%. Proportion of GSA urban population Works yet to start. Waste water work is serviced by reticulated sewerage network included in tranche II of the MFF. Processing increased to 60% by 2023 (baseline of tranche II is currently in the 2023 2014:36%) pipeline. Estimated 290,854 people have improved, Works underway. As of the October 2020 potable water supply by 2022, of whom 49% review mission, the detailed design for the (142,518) are women ICB 1.1.1 contract (DBO: water intake, WTP, reservoir) is complete. Under ICB 1.1.1, over all construction to date is 9% completed. Construction has begun at the intake (7%), water treatment plant (7%), reservoir sites (25%). Under the ICB 1.1.2, construction on the gravity main has begun and over all, construction to date 1%. Risks Assessment of Current Status Insufficient funding is available to the WAF for operation and Discussion continues with WAF in regards to its tariff reform maintenance due either to continued low tariffs or inadequate program on liquid waste, trade waste, water and waste water. WAF government subsidies has also consulted the Fiji Competition and Commerce Unplanned urban growth exceeds projections Commission (FCCC) for a review of current tariff rates. This risk is being continually monitored. The capacity of the new water and sanitation services is adequate for the full range of medium term scenarios. Problem Action Taken/Proposed In response to the COVID-19 pandemic, the Fijian border was WAF, Sinohydro, and the Construction Management consultants closed in late March 2020 and a State of Natural Disaster was have been working closely to overcome COVID-19-related supply declared in mid-April; additional domestic restrictions were chain and staffing issues. So far, ADB has approved one contract enacted such as limits on meeting sizes, curfews, and a two-week variation under ICB 1.1.2 due to COVID-19 related project impacts. lockdown of the GSA. The international border closure has resulted A number of contract variations to increase home office time have in delays in the delivery of materials as well as limiting the entry of been approved under the Investment Program Management international workers and management consultants. The curfew consultants (CS01B) contract. and lockdown resulted in a lack of field presence at the work sites. All parties will look for opportunities to maximize available in- The contractor, Sinohydro Corporation Limited (Sinohydro) has country resources and while the border remains closed issued notice of COVID- 19 Force Majeure claims for both ICB 1.1.1 and ICB 1.1.2 civil works contracts, which will be ongoing until the end of the restrictions imposed by the Government of Fiji due to the COVID-19 pandemic.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance

93 Baselines in the RRP indicators with targets Supply and access to safe water in the GSA Water production and treatment capacity Works underway. As of the October 2020 improved increased by 40,000 M3/day by 2019 review mission, the detailed design for the (baseline 2014: 151,000 M3/day ICB 1.1.1 contract (DBO: water intake, WTP, reservoir) is complete. Under ICB 1.1.1, over all construction to date is 9% completed. Construction has begun at the intake (7%), water treatment plant (7%), reservoir sites (25%). Under the ICB 1.1.2, construction on the gravity main has begun and over all construction to date is 1%. NRW in GSA reduced to 36% by 2022 Previously reported NRW improvements (baseline 2014: 50%) were attributable to trainings held under the ADB Water Financing Partnership Facility RETA 6498: Knowledge and Innovation Support for ADB’s Water Financing Program. The RETA financed an IWA Water Balance exercise and trainings.

NRW improvement procurement activities under this project are delayed due to budget constraints. Wastewater treatment and management Wastewater treatment capacity in Kinoya This work will be done under Tranche 2. capacity in the GSA increased WWTP increased to 277,000 equivalent Tranche 2 is currently in the 2021 pipeline persons by 2021 (baseline 2014: 128,000 but it may slip to 2022 due to the economic equivalent persons) impacts of the COVID-19 pandemic on the Fijian economy. Tranche 2 processing will be discussed during the upcoming country programming mission. 4,500 additional households connected to Pending progress on tranche 2. the sewerage network in GSA by 2022 (baseline 2014: 29,000) WAF pretreatment of commercial septage Pending progress on tranche 2. waste increased to 37,000 M3/year (baseline 2014: 0 M3/year) 100% of effluent flows discharged from Pending progress on tranche 2. Kinoya WWTP during dry weather attain 80% compliance with environmental regulatory discharge standards by 2022 (baseline 2014: effluent generally noncompliant for BOD, COD, TSS, E. Coliform parameters) 1,500 women participate in WASH Yet to commence. programs delivered in peri-urban and informal settlements (baseline 0) WAF management and sustainable service Uncollected tariff reduced to 6% by 2022 WAF currently undertaking extensive delivery capacity improved (Baseline 2014: 12%) consultations with Fiji Competition and Commerce Commission (FCCC) on new tariff structure and no updated Annual Report to provide recent figures/ statistics on uncollected tariff rates. Water demand management program Program is designed. Implementation is implemented by 2020 underway.

94 WAF management and sustainable service 80% of commercial customers meet BOD Updates not yet available. delivery capacity improved discharge standards approved under trade waste program Environmental regulatory framework for Progress on this initiative has stalled. municipal wastewater treatment discharge Momentum will be developed when PMU standards is reviewed and enforced by 2020 resources are in place. By 2020, at least 10% of new WAF technical No recent figures on gender recruitment is recruits are women (baseline 2014 3%) and available. Whilst WAF has offered broader at least 20% of WAF staff participating in training opportunities for its staff in the training opportunities are women (baseline past (2013-14 Annual report), no gender 10%) related statistics were available. Risks Assessment of Current Status The government is unwilling to provide sufficient funding for the Related to the economic impacts of the COVID-19 pandemic, Investment Program Government reduced WAF's 2020/2021 budget resulting in some The WSS systems created under the Investment Program are not setbacks. Tendering of the NRW packages was postponed. based on good operating practices, and services are delivered PMU and Construction Supervision Team mobilised. $7m in PDA inefficiently resources were committed to the design and procurement task. Households are not willing to connect to the water supply system $8.2m is being spent on PMU and construction supervision and the sewerage system services. The WAF's current weak capacity for managing procurement This risk will be monitored and reported on when connections to processes in accordance with ADB's guidelines results in delays the new trunk infrastructure are possible. The WAF is not permitted to raise tariffs, and service delivery is The WAF team have done a credible job in administering the DBO severely constrained because tariff revenues continue to be too and gravity main works contracts, and have submitted quality low to meet operation and maintenance costs, which will increase assessments of the consultancy proposals, supported by the PMU with system expansion and CST. Weak capacity at the WAF and lack of skilled staff to undertake Discussions on tariff reforms remain lagged. It is notable that the such tasks as business planning and tariff setting hinder the government has continually committed to service the financial improvement of service delivery shortfall from year on year budget allocations. When project teams continually raise this consideration in mission discussions, the MOE representative becomes declines to discuss the issue, claiming that neither MOE nor WAF can direct the Fijian Competition & Consumer Commission (FCCC) to approve the proposal made by consultants funded under an ADB TA. MOE will not acknowledge that the decreased budget allocations for WAF have affected project activities. The project design has incorporated a strategic training program to build capacity, but the COVID-19 border closure prevents international consultants from traveling to Fiji. Problem Action Taken/Proposed Civil works are on-going but experiencing some delays related to ADB and WAF have initiated monthly meetings to monitor project COVID-19 travel restrictions. implementation and diligently address issues in a timely manner.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Fiji shall ensure, and shall cause WAF to SDP sets out an investment narrative 31-Jul-2017 ensure, the following: 1. They remain committed to implementation of the Investment Program and Fiji's SDP and shall achieve their respective objectives in a timely manner, including: by 31 July 2017, preparing a preliminary capital investment plan based on normative standards identified in the WAF GSA Water and 95 Wastewater medium (2022) and long-term (2033) master plans for urban WSS sector that shall address current back-log and future demand; by 31 August 2018, (I) based on World (i) Currently not complying 31-Aug-2018 Heath Organization standards for drinking (ii) CS01B Task 16 will address this water, developing a water quality regulatory framework founded on the concepts of risk based audits, establishing an effective audit mechanism, and developing reporting systems and necessary enforcement measures; and (ii) developing an education and awareness program on water resource management; by 31 December 2019, draft legislative ADB is funding a consultant to work on this. 31-Dec-2019 framework for environmentally appropriate A draft legislative framework is currently and sustainable commercial extraction of with the Attorney Generals Office for groundwater shall have been submitted to comments/review before finalizing for Cabinet; Cabinet by 31 July 2020, implementing a progressive Currently in progress 31-Jul-2020 program of meter replacement and full metering coverage of domestic and non- domestic consumers; by 31 December 2020, preparing (i) a final A consultant has been engaged to carry out 31-Dec-2020 capital investment plan based on detailed Master Planning for WAF engineering designs progressively completed between 2017 and 2020 that shall address current back-log and future demand; and by 31 July 2021, (i) adopting an integrated (i) National Water Resource Management 31-Jul-2021 approach by WAF and Department of Water Policy (NWRMP) will address this (Section and Sewerage (DWS) in the Ministry of 9.2 to 9.6) Infrastructure and Transport to develop a (ii) WAF is in discussions with MoIT to mechanism for detailed water resources update MoU with them in terms of data monitoring and management in sharing collaboration with Fiji Meteorological (iii) Ongoing Services, Department of Land and Water (iv) WAF is in discussions with Dept of Lands Resource Management (LWRM) in the (v) a consultant has been engaged to carry Ministry of Agriculture, Fiji Electricity out Master Planning for WAF Authority and other relevant agencies; (ii) (vi) NWRMP will address this better coordinating roles and (vii) C - WAF Water Champions Programme responsibilities and improve management aims at public education re water and sharing of data among various conservation practices, and budget has stakeholders including WAF, DWS, LWRM; been allocated for Demand Management (iii) initiating nation-wide aggressive leakage Programme also detection and technical losses reduction programmes to eliminate water that is lost or unaccounted for in the WAF system; (iv) reviewing and enforcing the licensing system for surface water and groundwater abstraction shall have been reviewed and enforced; (v) programming adequate investments in wastewater treatment to ensure treated effluent quality meets national standards (or agreed site specific

96 standards for municipal wastewater water discharges) and water resources are protected from pollution threats; (vi) formulating a national integrated water resource management plan; and (vii) supporting community awareness of conservation practices. Monitoring, Evaluation, and Reporting PPMS system is not yet fully established, 31-Dec-2026 Arrangements although work is in progress and most Within 3 months of effectiveness date of baseline data has been collected. CS01B the loan or grant agreement for the first consultancy was tasked with establishing loan or grant under the Facility, MOE and PPMS by June 2019 WAF will establish a Programme Performance Monitoring System (PPMS) acceptable to ADB. The PPMS will help monitor and evaluate the performance of the Investment Programme and the projects under each loan or grant of the Facility. They will incorporate a set of performance monitoring indicators relating to outputs and outcomes in the Design and Monitoring Framework (DMF), including service delivery performance, physical implementation, and institutional effectiveness milestones. The Investment Programme Management Unit (IPMU) will develop baseline data for each of the selected indicators, conduct annual surveys and update ADB on the progress against each indicator. Schedule 2 hereto sets as the Design and Monitoring Framework for the Facility, against which the implementation effectiveness will be evaluated.

MoE will be responsible for the overall Semi-annual progress reports on SDP 31-Dec-2026 implementation of the Sector Development implementation have not been provided to Plan (SDP) and the Investment Programme. the IPSC by MoE. It will hold regular meetings with WAF to review progress and submit semi-annual progress reports to the IPSC. It will also coordinate with the Investment Programme ADB will field review missions periodically ADB review missions have been held in 31-Dec-2026 to review the progress of the Investment April 2019, December 2019, and September Programme. It will discuss the progress 2020. under each tranche of the Facility, any changes in implementation arrangements, or remedial measures that are required to achieve the overall objectives of specific projects and the overall Investment Programme. ADB will conduct a midterm review of each MTR is planned by April 2021. 31-Dec-2026 tranche of the Facility and conduct a detailed review of the Investment Programme after three years from the effective date of the first tranche. The

97 midterm review will evaluate in detail project activities and issues related to implementation arrangements, environmental and social safeguards requirements, achievement of construction milestones, quality assurance (including compliance with this FFA and loan covenants set forth in the applicable loan agreements) and other relevant issues. The review will confirm any changes required to be made to achieve the Investment Programme objectives. by 31 December 2017, preparing a national Draft policy under review. 31-Dec-2017 water resource management and sanitation policy;

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Pacific Subregional Office in Suva, Fiji, PARD)

Criteria Ratings Justifications and Narratives Timeliness On Track All land acquisition issues have been address Undertakings Compliance On Track In general, the Government is complying with the 60 covenants and assurances of the Program. Of the 60 ADB covenants (i) 44 (73.3%) have been complied with, of which 7 (11.7%) were complied with delay; (ii) 7 (11.7%) are Partially Complied with; (iii) 7 (11.7%) are Not Complied with, and (iv) 2 (3.3%) are Not Yet Due. The Project Team confirms that, unless explicitly stated, the GGA covenants related to sector development and policy frameworks apply nationwide. Tranche Performance On Track With all land acquisition issues addressed, ADB continues to step up efforts to ensure WAF complies with its contractual obligations through monthly meetings. Inpsite of COVID, monthly meetings continues virtually and later on face-to- face meetings. Overall MFF Performance On Track Tranche 1 is progressing despite COVID-related delays. Due to the economic impacts of COVID-19, Tranche 2 processing may be delayed.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

98 Georgia

Go to List of Countries Page 42414-013 GEO : Sustainable Urban Transport Investment Program - Facility Concept

42414-013 GEO : Sustainable Urban Transport Investment Program - Facility Concept (as of 31 - Dec - 2020)

This report was prepared by Cesar Emilio Llorens Alvarez and validated by Yong Ye, Urban Development and Water Division, CWRD 42414013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 19-Jul-2010 18-Jul-2020 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 300 300 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 5 tranche/s are expected under the MFF. Of which,5 tranche/s USD 216.1 million were approved. An MFF is the preferred funding modality on account of its flexibility, sequencing of investments and the existence of a sound policy framework, strategy, and roadmap. The size of the MFF is $300 million. The MFF is structured into five tranches. The first tranche amounts to $85 million equivalent and included four subprojects and already completed the civil works of the Tbilisi Metro. Tranche 2 is $64.8 million equivalent and included one subproject for the improvement of two sections of the Tbilisi - Rustavi road. The civil works under Tranche 2 is completed. Tranche 3 is $73 million and included one subproject for the improvement of one section of the Tbilisi - Rustavi road and is under implementation. Tranche 4 is $20 million for the improvement of the Batumi coastal area and is under implementation. The Tranche 5 was approved in 2017 for $12.27 equivalent for the safety Project Description improvements of the Tbilisi Metro. The main outputs of the investment program could be summarized as follows: (i) Extension, rehabilitation, and improvement of urban transport infrastructure in Anaklia, Batumi, Kutaisi, Poti, Rustavi, and Tbilisi. (ii) Increased institutional effectiveness, including the reorganization and reforms at the Tbilisi municipality, other municipalities and urban transport service providers. (iii) Establishment of program management team with a capability and funds to handle project preparation, technical design, contract bidding, evaluation and award, contract supervision, progress monitoring and reporting. Link to the RRP of the MFF https://www.adb.org/projects/documents/sustainable-urban-transport-investment-program-georgia-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources Sustainable Urban 21-Jul-2010 84.3 0.0 1.00000 On Track 96.2396% 93.6303% On On Track Yes Transport 29-Sep-2010 On Track Track Investment Program - Tranche 1(Active) Sustainable Urban 24-Jul-2012 52.3 0.0 1.00000 On Track 94.9079% 94.4854% On On Track Yes

100 Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources Transport 20-Aug-2012 On Track Track Investment Program - Tranche 2(Active) Sustainable Urban 25-Nov-2013 46.0 0.0 0.74000 On Track 91.195% 74.3261% On For Yes Transport 14-Mar-2014 For Track Attention Investment Attention Program - Tranche 3(Active) Sustainable Urban 25-Aug-2015 20.0 0.0 1.00000 On Track 94.3847% 92.615% On On Track Yes Transport 8-Jan-2016 On Track Track Investment Program - Tranche 4(Active) Sustainable Urban 7-Dec-2017 13.5 0.0 0.82000 For 87.0472% 83.6712% On On Track Yes Transport 8-Mar-2018 For Attention Track Investment Attention Program - Tranche 5(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 216.1 72% 10.45 104.5%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Sustainable Urban 21.4 25.9 28.9 33.2 48.0 61.7 73.0 76.2 78.0 78.7 78.7 Transport Investment Program - Tranche 1 (Active) Sustainable Urban 8.0 8.1 31.6 46.3 49.8 50.6 52.0 51.4 49.4 49.4 Transport Investment Program - Tranche 2 (Active) Sustainable Urban 1.4 17.7 18.0 35.6 44.2 45.5 34.2 34.2 Transport Investment Program - Tranche 3 (Active) Sustainable Urban 2.3 7.4 13.3 18.7 18.5 18.5 Transport Investment Program - Tranche 4 (Active) Sustainable Urban 8.2 10.9 11.2 11.2 Transport Investment Program - Tranche 5 (Active)

101 Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Total 21.4 33.9 37.0 66.2 111.9 131.8 166.6 194.0 204.5 192.0 192.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved urban environment, expanded local economy, and better living conditions within urban areas

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficient, reliable, and affordable urban By 2020 Data sources are dependent on the transport services provided in relevant cities Program will benefit at least 2.5 million possibility of implementing surveys, the people in urban areas compared to base COVID-19 Pandemic, the subsequent line in 2009 lockdowns and the impossibility to perform proper surveys, hasn't allowed the team to obtain reliable data. Increase by 5% of urban population in Tbilisi Partially achieved. Data sources are with direct access to public transport dependent on the possibility of compared to base line (35%) in 2008 implementing surveys, the COVID-19 Pandemic, the subsequent lockdowns and the impossibility to perform proper surveys, hasn't allowed the team to obtain reliable data. Increase in public transport ridership by 5% From the start of operations of Metro compared to 2009 baseline (923,000) extension in October 2017, ridership increased to 13.5 million as of October 2019, i. e. 6% increase from October 2018 achievement. (Reference: Tbilisi Transport Company). The COVID-19 Pandemic has reduced the number of public transport users, we considerd that 2020 should not be used as the target year, but another year once the pandemic is over. Maintain public transport modal split in Being achieved. Data sources are dependent Tbilisi at least at the same level as 2009 on the possibility of implementing surveys, baseline (54%) the COVID-19 Pandemic, the subsequent lockdowns and the impossibility to perform proper surveys, hasn't allowed the team to obtain reliable data. Increase by 5% number of women using Data sources are dependent on the municipal urban transport compared to possibility of implementing surveys, the baseline (56%) in 2008 COVID-19 Pandemic, the subsequent lockdowns and the impossibility to perform proper surveys, hasn't allowed the team to obtain reliable data. Risks Assessment of Current Status Weak coordination among government departments and relevant Coordination among government departments and relevant municipalities undermines sustainable operations municipalities is satisfactory. Problem Action Taken/Proposed

102 None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Urban transport infrastructure extended, By 2014 The 2.6 km long Tbilisi Metro extension to rehabilitated and improved by MDF and A 1.5 km long Tbilisi Metro extension to university and creation of the University relevant municipalities university completed Station was completed in 2017, is currently fully operational. 20 km of Mestia road upgraded In 2011, four sections at totaling 25.5 km were completed. All design and construction address specific All design and construction (including needs of women and men riders (e.g., Metro, urban road projects) addressed adults with children) specific needs of women, men, children, and persons with special needs. By 2016 13.2 km of the urban road link works were A 15km urban link Tbilisi–Rustavi mainly completed by July 2020, the completed remaining link of 1.8 km has pending works. Footbridges constructed in relevant cities 4 footbridges were constructed within Tbilisi-Rustavi urban road link (Sections I and III) project. 10 km of urban road and coastal waterfront Works completed in the Batumi coastal improvement section. Traffic management center in operation in Transport Department of Tbilisi City Hall Tbilisi operates the multimodal transport model which was procured in 2011. By 2020 13.2 km of the urban road link works were 10 km of urban road with urban renewal mainly completed by July 2020. upgraded in urban areas Segregated bus and tram lines, and for Tbilisi Bus Network Improvement Study was riverside urban regeneration considered completed in May 2017. Segregated bus lanes have been implemented by Tbilisi City Hall with CDIA support. Institutional and management capacity of By 2014 The gender-responsive urban transport MDF and relevant municipalities Gender-responsive urban transport road roadmap has been prepared and endorsed strengthened map endorsed by Tbilisi by Tbilisi and action plan is being implemented. One sex-disaggregated household survey Sex-disaggregated household survey has carried out in Tbilisi (50% of respondents been performed in 2012 with external grant women) assistance (from French government) and covered a sample of 8,000 households or 25,000 inhabitants. One multimodal traffic model implemented The multimodal traffic model designed in 2011 (grant from French government) and licenses of multimodal traffic model have been purchased by the Tbilisi City Hall. The model is used for testing bus route restructuring, fare level, traffic management, and design of new projects. A multimodal team set up in Tbilisi with A multimodal team has been set up in the women representatives Transport Department of Tbilisi City Hall which included 15 women out of 41 staff

103 Institutional and management capacity of One multimodal transport website with The multimodal transport website was MDF and relevant municipalities gender responsive design of public launched in 2011 (www.ttc.com.ge) and strengthened transportation designed to serve fit all users’ needs, including women. As of 2013, real time information for metro station and bus schedules are provided to the public. A city twinning with focus on gender public A study tour for representatives from City transport design implemented Hall, City Assembly, Tbilisi Transport Company and MDF was organized and conducted in November 2104 in Lyon and Paris. International Urban Mobility Forum was organized and conducted in Tbilisi in December 2014. Transport Opinion Survey was conducted, and the final report was submitted in February 2016 to the Tbilisi City Hall. By 2016 Tbilisi Urban Transport Strategy Urban transport master plan developed and (2015-2030) was prepared in February 2016. endorsed, including PPP options The Transportation Household Survey in Tbilisi Metropolitan Area was conducted in June 2016 and endorsed by the City Hall. One integrated ticketing system Smart card as an integrated ticketing system implemented for metro, bus, minibus and cable car launched in 2011. A parking management outsourcing carried Management of Tbilisi parking lots was out outsourced to private company “CT Park” in 2009. However, Tbilisi City Hall terminated the contract in April 2018 and delegated this task to Tbilisi Transport Company, which is 100% state-owned enterprise. Microbus organization set up rethought in Tbilisi City Hall intends to review microbus the context of the urban transport master system upon completion of the Sustainable plan Urban Management Plan in 2020. Planning processes streamlined and Tbilisi City Hall uses the transport models monitoring tools established for its planning. By 2020 One public service contract would have One public service contracts considered been considered if the SUMP would have been implemented but that was not done because COVID-19 did not allow to finalize it and then proceed to the next phase. Traffic calming zones or pedestrianization Pedestrian areas implemented in the coastal considered renovation in Anaklia. Traffic calming zones and pedestrianization considered in Kutaisi. Establishment of skilled and experienced By 2014 Feasibility studies and due diligence units to oversee the management and the Feasibility studies and project due (EIA /IEE and LARPs) have been prepared implementation of the program in MDF and diligences timely prepared by MDF and by MDF. the relevant municipalities participating municipalities Gender sensitive public awareness Several public consultations on gender campaigns organized issues with local population were conducted. Financial management, gender sensitization, MDF staff regularly participate in

104 Establishment of skilled and experienced procurement, safeguards and training international and local seminars and units to oversee the management and the provided conferences in financial management, implementation of the program in MDF and gender, procurement and safeguards. the relevant municipalities By 2013 As of December 2019, 32% of professional Professional staff hired by MDF with 15% staff in MDF are women, i.e. 52 women out recruitment of qualified women of 164 employees (Reference: MDF) Training on concession, lease and Five trainings have been held on management contracts carried out concession, lease and management contracts. Studies and due diligences for subsequent Six projects detailed designs, six IEEs and projects prepared five LARPs were prepared for subsequent tranches. Risks Assessment of Current Status New municipal government shifting focus from urban transport There is no indication of risk. investments Capacity of domestic contractors is exhausted due to large number of ongoing externally funded projects Rising energy costs increase operation cost and tariff increases not supported by consumers Problem Action Taken/Proposed COVID-19 Pandemic and subsequent lockdowns. For implementation of works, due to the the initial lockdown, works were resumed and additional shifts were needed in order to achieve finalization of works.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date MFF undertakings include (i) developing the The undertakings of the framework 18-Jul-2020 Tbilisi Urban Transport Strategy; (ii) financing agreement have been complied strengthening urban transport policy and with. management; (iii) supplying counterpart funding and resources; (iv) applying sound technical standards on civil works; (v) preparing and implementing land acquisition and resettlement plans, initial environment examinations, and environmental management plans following ADB's Safeguard Policy Statement (2009); (vi) implementing the gender action plan, local consultations, and contractually required workers health and safety programs; and (vii) implementing measures to ensure transparency and good governance.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 18-Nov-2020 Extension of end of winding-up period from 18 November 2020 to 31 December 2020. This extension intended to allow sufficient time for: (i) submission and processing of the withdrawal applications (WAs) to fully 105 liquidate expenditures incurred on or before the loan closing date, (ii) refunding balances of implementing agencies to ADB's account; and (iii) closing the project's accounts.

F. MFF Performance Ratings (Rated by Urban Development and Water Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranches have been processed within the 10-year period, the Covid-19 Pandemic did not allow for the implementation of works between March to 18 July 2020, but all pending actions and tasks were implemented within three months after the physical closure of the tranches, implying that without the lockdowns, projects would have been finalized on time. Undertakings Compliance On Track All undertakings are complied with, and relevant amendments to loan agreement were signed accordingly. Tranche Performance Potential Problem Liquidation of advance accounts in T3 and T5 have reduced the CAD for those tranches and affected the overall performance of the project. Causes are linked to not achieving outputs in T3 and to delays in T5 due to COVID-19 lockdowns and final implementation being financed by the government at their own expenses and not through ADB due to the physical closure of the loan by 18 July 2020. Overall MFF Performance On Track Overall performance for 4 out of 5 tranches is satisfactory, despite the COVID-19 and the lockdown that lapsed three months, taking into account that the government was able to complete works for those tranches within following three months after physical closure of the MFF. Tranche 3 could not completely implement all outputs.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

106 43405-013 GEO : MFF - Urban Services Improvement Investment Program - Facility Concept

43405-013 GEO : MFF - Urban Services Improvement Investment Program - Facility Concept (as of 31 - Dec - 2020)

This report was prepared by Heeyoung Hong and validated by Yong Ye, Urban Development and Water Division, CWRD 43405013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 30-Mar-2011 31-Mar-2019 29-Mar-2024 13.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 6 tranche/s are expected under the MFF. Of which,6 tranche/s USD 478.4 million were approved. The proposed Investment Program will improve water supply and sanitation (WSS) services in selected cities of Georgia. The Investment Program will include (i) infrastructure improvement to rehabilitate, improve, and expand WSS services; (ii) institutional effectiveness to improve the service utility's technical Project Description and management capabilities to provide efficient WSS services, and develop the capacity of sector regulators to regulate tariffs, services standards, environmental protection, and drinking water quality in the long-term; and (iii) Investment Program implementation support Link to the RRP of the http://www.adb.org/Documents/RRPs/GEO/43405/43405-01-geo-rrp.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources Urban Services 12-Apr-2011 74.1 0.0 1.00000 On 98.2198% 98.0099% On On Yes Improvement Investment 15-Jun-2011 On Track Track Track Program - Tranche 1(Active) Track Urban Services 23-Nov-2011 36.7 0.0 1.00000 On 93.8988% 100% On On Yes Improvement Investment 19-Dec-2011 On Track Track Track Program - Tranche 2(Active) Track Urban Services 5-Dec-2013 90.5 0.0 0.94000 On 94.5774% 83.7572% On On Yes Improvement Investment 17-Mar-2014 On Track Track Track Program - Tranche 3(Active) Track Urban Services 11-Dec-2014 108.0 0.0 0.94000 On 96.8568% 76.2365% On On Yes Improvement Investment 30-Mar-2015 On Track Track Track Program-Tranche 4(Active) Track Urban Services 29-Sep-2015 75.1 0.0 0.94000 On 86.111% 100% On On Yes Improvement Investment 19-Jan-2016 On Track Track Track Program - Tranche 5(Active) Track

107 Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources Urban Services 4-Oct-2016 94.0 0.0 0.94000 On 88.4743% 100% On On Yes Improvement Investment 2-Mar-2017 On Track Track Track Program -Tranche 6(Active) Track

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 478.4 95.7% 9.76 75.1%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Urban Services 5.8 8.3 14.2 27.0 42.1 53.0 59.6 65.4 68.3 70.0 70.0 Improvement Investment Program - Tranche 1 (Active) Urban Services 7.1 13.0 20.3 23.1 28.6 30.2 31.0 32.8 33.4 33.4 Improvement Investment Program - Tranche 2 (Active) Urban Services 3.8 14.5 24.5 35.7 48.2 60.6 66.0 66.0 Improvement Investment Program - Tranche 3 (Active) Urban Services 4.4 14.0 27.1 40.9 59.6 69.1 69.1 Improvement Investment Program-Tranche 4 (Active) Urban Services 3.6 10.4 19.1 40.5 54.1 54.1 Improvement Investment Program - Tranche 5 (Active) Urban Services 3.1 12.5 22.5 34.9 34.9 Improvement Investment Program -Tranche 6 (Active) Total 5.8 15.4 27.2 51.1 84.1 123.7 166.0 217.2 284.4 327.5 327.5

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved health of residents in the cities of Georgia (program defined)

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance

108 Baselines in the RRP indicators with targets Improved water supply and sanitation By end of the program (2024): Civil works are ongoing for sewerage services in Georgia (i) Percentage of residents with access to network and systems. As of end-2020, 60% safe sanitation increased from 25% in 2011 of residents have access to safe sanitation. to 88% (ii) Percentage of residents with access to a Civil works are ongoing for water supply 24-hr potable water supply increased from system. As of end-2020, 89% of residents are 74% in 2011 to 95% connected to the water network. Risks Assessment of Current Status Political systems interfere with the enforcement of legislative and No indication of risk. regulatory control. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Component 1: Infrastructure Improvement Reservoirs with a total capacity of 80,513 Civil works are ongoing. As of end-2020, Water supply system efficiency improved cubic meter, 348 km of water transmission 70,813 cubic meter reservoirs have been through rehabilitation and replacement, mains, and 1,150 km of water distribution constructed, 155 km of water transmission and coverage expanded networks rehabilitated, reconstructed, or mains constructed, and 1,031 km of water newly constructed distribution networks constructed. Water treatment plants with a total capacity Actual achievement is 24.6 MLD as of of 24.6 MLD constructed end-2020. Water supply system will be fully commissioned in 2021. Percentage of nonrevenue water NRW remains high. UWSCG has adopted a progressively reduced from more than 70% metering program in 2020 and is preparing to 30% an NRW reduction strategy in 2021. Residual chlorine at tail ends of water Civil works are ongoing. Actual achievement supply system maintained at 0.2–0.4 parts will be reported at tranche closure in 2024. per million by 2024 Component 1: Infrastructure Improvement Number of residents with access to a Civil works are ongoing. As of end-2020, Sewerage and sanitation system efficiency sewerage network increased from 83,000 in 190,736 households and 16,131 legal entity improved through rehabilitation and 2011 to 462,000 persons have access to sewerage networks. reconstruction, and coverage expanded Sewer-cleaning vehicles procured and made Sewer cleaning vehicles were procured in operational by 2011 2017. A 775 km sewerage network constructed Construction of sewerage networks (including pumping stations) ongoing. To be completed by 2023. 11 WWTPs with a total capacity of 69 MLD Two wastewater treatment plants in Anaklia rehabilitated or constructed to treat and and Ureki have been constructed. The safely discharge sewage construction of wastewater treatment plant in Zugdidi has been completed as of end-2020 and undergoing commissioning. Component 2: Institutional Effectiveness UWSCG develops long-term capital UWSCG Annual Business Plan was Business plans developed and implemented improvement plans, asset strengthening developed in 2018. The Business Plan will be plans, resource mobilization, and updated in 2020. expenditure management plans by 2021 Component 2: Institutional Effectiveness UWSCG operating ratio improved from 1.8 Operating ratio of 1.4 was achieved in Financial management improved; in 2010 to 1 by 2023, indicating improved end-2019. management information system and financial management

109 accounting system developed UWSCG revenue collection efficiency Revenue collection efficiency in FY 2019 improved from 49% in 2010 to 95% by 2019 was 98%. Sex-disaggregated consumer database Activities for database creation are ongoing. created to enable the UWSCG to develop To be completed in 2021. targeted marketing campaigns for female household heads by 2020 Component 2: Institutional Effectiveness Calibrated network models developed for To be reported in 2021. Geospatial WSS utility management systems water and sewerage networks based on GIS operationalized maps Component 2: Institutional Effectiveness WSS management program with Georgian An ongoing contract with SETEC is being Management capacity of UWSCG enhanced universities operationalized implemented in partnership with Georgian universities. Women hold 30% of key UWSCG As of end-2020, 38.8% of key management management staff positions are women. UWSCG staff (30% women) trained on To be reported in 2024. financial management Sex-disaggregated data base for human Indicator met. resource management in place MOEPA confirming treated sewage meets To be reported in 2024, after construction discharge standards of sewerage systems and treatment plants have been completed. Component 2: Institutional Effectiveness GNERC staff approve tariffs and monitor To be reported in 2024. Sector regulatory capacity of GNERC and WSS service delivery MOEPA developed MOEPA staff monitor treatment facility To be reported in 2024, after construction performance and effluent discharge of sewerage systems and treatment plants. . standards MOEPA staff monitor drinking water quality Regular monitoring and testing of drinking standards water was regularly conducted. Component 3: Project Implementation Each program service center has a customer Not yet met. Women employed are below Support care unit (staffed by at least 30% women) 30%. Public awareness program effectively that disseminate information, education, implemented, materials on hygiene and and communication on water, hygiene, and sanitation disseminated, and women sanitation practices developed as hygiene and sanitation Public awareness program targeting women Public awareness program and GAP advocates as household managers rolled out in all implementation are continuously program cities conducted by UWSCG. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Georgia will ensure that the Investment Being complied with. 29-Mar-2024 Program is carried out in accordance with applicable standards and international best practice for design, technical specifications, construction supervision, quality control and project management. Georgia will cause GNERC to strengthen its Being complied with. 29-Mar-2024

110 regulatory function, including tariff setting, and monitoring and enforcing quality of service delivered by service providers. Georgia will cause UWSCG to strengthen its Being complied with. A 3-year business plan 29-Mar-2024 financial management through: (i) adoption is being adopted. of a 3-year business plan by the end of 2013 to improve services, enhance revenue and reduce system loss; and (ii) achieve financial sustainability through attainment of an operating ratio (i.e. the ratio of expenditure over revenue) of 1 by the end of 2024. Georgia will cause UWSCG to improve its Being complied with. Civil works are 29-Mar-2024 service delivery and revenue collection ongoing and MFF availability has been through attainment of an aggregate 90% extended up to 29 Mar 2024. revenue collection rate per annum from all domestic consumers and non-domestic consumers by the end of 2019. Georgia will ensure that ADB s consent is Being complied with. 29-Mar-2024 obtained at least 3 months prior to the implementation of any of the following: (i) any change in the ownership or control of UWSCG or any asset, facility or structure rehabilitated, procured or constructed under the Investment Program; or (ii) any revision of the UWSCG charter, or any change to UWSCG s authority or functions, that may affect implementation of the Investment Program. Georgia will ensure that any such change is carried out in accordance with all applicable laws and regulations of Georgia. Georgia will cause UWSCG to make best Being complied with. Civil works are 29-Mar-2024 efforts to meet the legal requirements for ongoing and MFF availability has been domestic effluent discharge, bearing in extended up to 29 Mar 2024. mind the affordability constraints. This includes compliance of UWSCG with the legal requirements for domestic effluent discharge in relation to sewage treatment facilities financed under the Investment Program by the end of 2024. Georgia will follow ADB s Anticorruption Being complied with. 29-Mar-2024 Policy (1998, as amended to date) and acknowledge that ADB, consistent with its commitment to good governance, accountability and transparency, reserves the right to undertake directly, or through its agents, investigation of any alleged corrupt, fraudulent, collusive or coercive practices related to the Investment Program and cooperate with such investigation and extend all necessary assistance, including access to all Investment Program-relevant books and records, and engaging independent experts who may be needed for satisfactory completion of such

111 investigations. All contracts financed by ADB under the Investment Program will include provisions specifying the right of ADB to audit and examine the Investment Program-related records and accounts of the MRDI and UWSCG and all contractors, suppliers, consultants, and other service providers as they relate to the Investment Program.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Extension of MFF Availability Period (Board 30-Sep-2020 Extension of MFF availability period beyond approved) 10-year period.

F. MFF Performance Ratings (Rated by Urban Development and Water Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track All tranches have been approved. No additional tranches are planned within the MFF availability period. Undertakings Compliance On Track Undertakings in the Financing Framework Agreement are being complied with. Tranche Performance On Track Performance of all tranches is on-track as of 31 December 2020. Overall MFF Performance On Track The overall performance of the MFF is generally satisfactory.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

112 India

Go to List of Countries Page 36330-013 IND : MFF - Railway Sector Investment Program (Facility)

36330-013 IND : MFF - Railway Sector Investment Program (Facility) (as of 31 - Dec - 2020)

This report was prepared by Kai Wei Yeo and validated by Ravi Peri, Transport and Communications Division, SARD 36330013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 31-Aug-2011 31-Dec-2018 30-Aug-2021 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 386.7 million were approved. ADB and the Government of India are working together to make the country's train system safer, more efficient and able to handle greater amounts of passengers and freight. The Railway Sector Investment Program is building second tracks alongside 840 kilometers of existing rail systems, essentially doubling the Project Description capacity of high-density routes. Another 640 kilometers of track will have electrification systems added. This is increasing the capacity of India's rail system. It is also increasing efficiency by installing modern signaling systems, and working to reform the accounting system. The result of the work is that India's trains are using less fuel, creating less pollution, keeping closer to schedules and costing customers less. Link to the RRP of the http://www.adb.org/Documents/RRPs/IND/36330/36330-013-ind-rrp.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 386.7 77.3% 9.34 93.4%

3. Cumulative Disbursements (in $ million)

114 Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Railway Sector 1.9 26.3 48.7 80.9 108.5 131.8 150.0 150.0 Investment Program - Tranche 1 (Closed(1)) Railway Sector 33.2 66.2 82.6 90.5 104.4 116.7 116.7 Investment Program - Tranche 2 (Closed(1)) Railway Sector 17.5 52.0 89.3 89.3 Investment Program - Tranche 3 (Active) Total 1.9 26.3 81.8 147.1 191.1 222.4 271.9 168.7 89.3 356.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved transport network and greater mobility

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Energy-efficient, safe, reliable, affordable After investment program completion: To be measured after program completion. and environment-friendly railway system developed Average travel time along project rail routes reduced by half (e.g., average speed increased to 40km/h from 20km/h for goods) Annual accident rate reduced by 20% (from To be measured after program completion. 0.20 in 2008/09) Annual CO2 emission along the project To be measured after program completion. corridors reduced by 0.9 million due to modal shift from vehicles (from estimated baseline of 1.1 million ton of CO2) Financial sustainability of railway operations To be measured after program completion. improved by 20% (e.g., operating ratio at 90.5% in 2008/09) Efficiency of railway operations (e.g., To be measured after program completion. passenger-kilometers plus net ton kilometer per employee) equals 1.4 (from 1.01 in 2008/09) Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets

115 1. Expanded physical infrastructure and Approximately 840km of railway tracks Weighted average of physical progress at enhanced efficiency of infrastructure use double-tracked and 640km electrified by 92% as of end-December 2020, with 590 km 2. Improved operations efficiency of Indian 2019 of double-tracked railway and 373 km of Railways electrified tracks commissioned. 3. Clean development mechanism (CDM) Institutional strengthening action plan Infrastructure upgrades to improve the application and implementation for the implemented efficiency, safety, and reliability of railway investment program operations are ongoing. With commissioning of the first block sections of the investment projects, the benefits from the RSIP are gradually being realized. However, the full benefits will be realized only after all block sections are commissioned and the electrification project is completed. By then, the Chennai– Mumbai corridor will be fully electrified and double-tracked and the other subprojects will also be double-tracked and will have upgraded signalling systems. This will result in the anticipated benefits, such as reduced travel times and more trains being operated on these lines. Full utilization of allocated funds $356.03M (71.21%) disbursed as of December 2020. Framework of CDM application for railway The clean development mechanism (CDM) doubling implemented component focuses on demonstration of carbon emission reductions from the investment program. It was originally envisaged that this will be pursued as a CDM project. It has however been agreed that the modality will be changed from CDM to Nationally Appropriate Mitigation Action (NAMA). The attached technical assistance (TA) was adjusted accordingly and was completed in December 2016. A NAMA proposal has been prepared with support from the TA. However, no NAMA or climate mitigation proposal has yet been submitted by the Government of India to the United Nations Framework Convention on climate change for registration.

These activities would be implemented only after submission of the NAMA-proposal. MOR’s Environmental Directorate was trained in monitoring emission reductions with an Excel-based tool in the meantime. Carbon credits obtained Not yet due. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed Delayed project implementation. Implementation is being continuously monitored and civil works contractors who are performing significantly behind contractual implementation schedule warned; several non-performing contracts have been terminated, repackaged, and rebidded.

116 D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Schedule 6.2. In the event of any change in Being implemented 30-Aug-2021 the road map, policy framework, investment program, or financing plan, India, MOR, RVNL, and ADB shall assess the potential impact on the program and evaluate any change in scope, amendment, continuation, as appropriate, of the program

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Transport and Communications Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track All tranches have been approved. Undertakings Compliance On Track All key undertakings have been or are being complied with. Tranche Performance On Track All tranches were or are rated On track. Overall MFF Performance On Track Tranches 1 and 2 were financially closed as scheduled. Tranche 3 is also expected to close as scheduled, with the loan amount fully disbursed.

The project has adequate mitigation measures in place for COVID-19. Contractors are implementing COVID-19 health and safety plans in all project sites. These include awareness training, use of personal protective equipment, thermal screening, provision of sanitizers, and record register.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

117 37143-013 IND : MFF - North Eastern State Roads Investment Program (Facility Concept)

37143-013 IND : MFF - North Eastern State Roads Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Jagir Kumar and validated by Takeo Konishi, India Resident Mission, SARD 37143013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 21-Jul-2011 30-Jun-2021 9.95 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 200 200 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 200.0 million were approved. The investment program will (i) improve about 430 kilometers (km) of priority road sections in six states (Assam, Manipur, Meghalaya, Mizoram, Sikkim, and Tripura) in the northeastern region (NER) of India, and (ii) provide capacity building support to the executing agencies: the Ministry of Development of North Eastern Region (MDONER) and the state public works departments (PWDs) or its equivalent in the Project Description six project states. The investment program will target the secondary road network and aim to enhance the performance of state roads sector in NER through investment project implementation and dedicated capacity building measures. The improved secondary road network will provide important linkage between the primary and tertiary road networks in the region, for which there are ongoing national programs for improvement. Link to the RRP of the http://www.adb.org/Documents/RRPs/IND/37143-013-ind-rrp.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period

118 200.0 100% 9.45 95%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) MFF - North Eastern 1.7 5.8 9.5 23.0 33.0 43.2 49.7 68.9 68.9 State Roads Investment Program - Tranche 1 (Active) North Eastern States 5.5 17.4 31.3 52.0 86.3 108.2 108.2 Roads Investment Program (Project 2) (Active) Total 1.7 5.8 14.9 40.4 64.3 95.3 135.9 177.2 177.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved surface transport connectivity in NER.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved mobility and accessibility in the Actual growth rates of traffic on the project Project implementation ongoing. To be project areas. and connector roads surpass the assumed measured after program completion. growth rates (average annual growth is to be at least 9%) Vehicle operating cost on the project roads Project implementation ongoing. To be reduced by 50% for three-axle trucks, and measured after program completion. by 20% for passenger buses at completion Travel time on the project roads reduced by Project implementation ongoing. To be 20%-40% measured after program completion. Risks Assessment of Current Status None Not applicable. Problem Action Taken/Proposed None Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Reconstructed and rehabilitated state Approximately 430 km of state roads (state Loan 2770-IND: Tranche 1 roads highways and district roads) reconstructed - Civil Works contracts in Assam, Sikkim and 2. Improved business process and staff skills or rehabilitated Meghalaya were awarded on 10 Dec 2012, of PWDs 17 Nov 2012 and 12 Sep 2013 respectively.

-Overall physical progress for Assam is 100% , for Sikkim 97.3% and for Meghalaya 100%.

- Construction Supervision Consultants in

119 1. Reconstructed and rehabilitated state Assam, Sikkim and Meghalaya were roads awarded on 8 Nov 2012, 28 Feb 2012 and 2. Improved business process and staff skills 12 Jul 2012 respectively. of PWDs - Project Management Consultants contract was awarded on 3 Aug 2012.

Loan 3073-IND: Tranche 2 - Civil Works contracts in Assam, Manipur, Mizoram and Tripura were awarded on 10 Feb 2015; 28 Dec 2013; 14 Nov 2014 and 25 Feb 2014 respectively.

-Overall physical progress for Assam is 100%, Manipur 96%, Mizoram 95% and Tripura 64.5%.

- Construction Supervision consultants in Assam, Manipur, Mizoram and Tripura were awarded on 8 Nov 2012, 28 Oct 2013, 29 May 2014 and 15 Nov 2013. Information technology-based procedures Completed in December 2014. are established within the PWDs for planning and project management purposes Staff training and capacity building Completed in December 2014. adequately capturing all essential road management functions Road safety program with coordinated Completed in December 2014. engineering, enforcement, and education components in place Sustained funding for road operation and Completed in December 2014. maintenance established and in place Risks Assessment of Current Status None Not applicable. Problem Action Taken/Proposed Slow progress of both Projects (Tranche 1 and Tranche 2) due to (i) Towards streamlining fund flow, Manipur has implemented (i) fund flow issues in Manipur; PFMS in its engineering departments inclujding PWD, effective 1 (ii) poor performance of contractors in Tripura and Sikkim. March 2019. The fund flow has slightly improved due to the implementation of PFMS, but still improvement is needed. (ii) Meetings with the top management of contractors are being conducted by respective Implementing Agencies. Progress has improved slightly under Tripura and Sikkim components.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date All key undertakings are being complied Ongoing process. 30-Jun-2021 with

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the

120 MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk The second tranche is processed more than 2 years after the first tranche. The delay in approval of Tranche 2 was due to delay in project readiness by the Executing Agency Undertakings Compliance On Track . Tranche Performance On Track . Overall MFF Performance On Track Project implementation was impacted adversely due to COVID-19 pandemic, given lockdowns and supply chain/workforce mobilization constraints. The implementation progress is now improving, with health and safety plans exercised by the contracting agencies on ground including include awareness training, use of personal protective equipment, thermal screening, provision of sanitizers, etc.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

121 38412-013 IND : MFF - Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program (Facility Concept)

38412-013 IND : MFF - Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Olivier Drieu and validated by Mio Oka, Environment, Natural Resources & Agriculture Division, SARD 38412013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 19-Oct-2010 30-Sep-2017 18-Oct-2020 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 120.145411 120 .145411 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 91.2 million were approved. The goal of the project is to support the economic and poverty reduction efforts of the state governments through integrated flood and riverbank erosion management (FREM) along the Brahmaputra river and its tributaries. The Project aims to promote people's livelihoods, through comprehensive FREM measures, which will provide protection from river erosion and floods, with a focus on the most vital areas of economic and national interests. An adaptive process approach is proposed that will protect critical Project Description reaches first, and then replicate suitable measures to other areas later. Nonstructural measures, including improved flood forecasting and warning, flood plain zoning, community preparedness, etc. will be adopted with intensive stakeholder participation. The Project has the following components: (i) development of FRERM planning, institutional and knowledge bases; (ii) comprehensive FRERM infrastructure and non-structural measures; and (iii) multidisciplinary program management systems. Link to the RRP of the https://www.adb.org/projects/documents/assam-integrated-flood-and-riverbank-erosion-risk-management- MFF investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources Assam Integrated Flood and 7-Dec-2018 49.2 0.0 0.94000 On 100% 100% For On Yes Riverbank Erosion Risk 21-Feb-2019 On Track Attention Track Management Investment Track Program - Project 2(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period

122 91.2 75.9% 10.00 100%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) MFF - Assam 4.3 11.9 18.2 26.0 32.7 41.0 42.0 42.0 Integrated Flood and Riverbank Erosion Risk Management Investment Program - Tranche 1 (Closed(1)) Assam Integrated 14.4 34.8 34.8 Flood and Riverbank Erosion Risk Management Investment Program - Project 2 (Active) Total 4.3 11.9 18.2 26.0 32.7 41.0 42.0 14.4 34.8 76.9

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Reduced economic vulnerability and social disruption caused by flood and riverbank erosion risks in Assam

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets FRERM systems in Assam provide enhanced Sustained reduction of annual flood Embankments built under the Tranche 1 resilience to flood and riverbank erosion damage and rehabilitation cost from the and 2 were neither over-topped nor risks in selected flood-prone areas along current average of Rs350 million per year breached during the high flood that has the Brahmaputra River, benefiting about 1 (1988–2008) caused casualties and damage to other million people locations in Assam. No damages to property reported in the project area. Activities under Tranche 2 are mostly completed. Maintenance works for existing embankments were undertaken in Tranche 2. No flood damages as a result of Embankments built under the Tranche 1 embankment breach caused by flood or and 2 were neither overtopped nor riverbank erosion breached during the recent high flood that has caused casualties and damage to other locations in Assam. Activities under Tranche 2 are ongoing. There were no damages in the embankment of the project area, the data on embankment breaches. Land lost by riverbank erosion within Riverbank protection works under Tranche project areas reduced from current average 1 have been completed and no further loss loss of 230 ha per year of land reported in the Project area. Works under Tranche 2 are under implementation which are building on the achievements of

123 FRERM systems in Assam provide enhanced Tranche 1. resilience to flood and riverbank erosion Urban, agricultural, and other flood-prone Riverbank protection works for 6.9 km and risks in selected flood-prone areas along lands along 90 km critical reaches of the embankment for 13.6 km under Tranche 1 the Brahmaputra River, benefiting about 1 Brahmaputra River totaling 53,000 ha have been completed. Under Tranche 2, million people protected from floods and riverbank riverbank protection works for 20 km and erosion embankment for 13 km were under implementation. Physical progress is at 87% and includes completion of 1.2 km bank protection work. Remaining civil works at completion stage to be completed by the FREMAA and are expected to be completed by March 2021. Risks Assessment of Current Status Natural calamities beyond the design return period. Project proceeded as planned despite the 2020 monsoon season. The risk remains given occurrence of natural calamities. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 3. Institutional and financial capacities of Specific measures on participatory Complied under Tranche 1 and has been FRERM institutions in Assam developed and mechanisms and social development, incorporated in the design of Tranche 2. strengthened including gender actions, as provided in the Activities under Tranche 2 commenced in sector roadmap, incorporated into FRERM December 2018 and the loan closed in operations within agreed time frame October 2020. Financial Management manual prepared and approved by FREMAA. Engagement of CBFRM is ongoing. Actions to support institutional reforms Actions were initiated under Tranche 1 and fully in place by program completion continued in Tranche 2. Integrated FRERM programs introduced and FRERM programs were initiated under replicated in other affected districts from Tranche 1 and were incorporated in the 2017 onwards design of Tranche 2. Activities under Tranche 2 commenced in December 2018, that included new district Golaghat for Kaziranga subproject. 1. Integrated FRERM planning, institutional Assam State Water Policy adopted, and State water policy has been formulated and knowledge bases developed and integrated FRERM aspects progressively under the governance of the State Water effectively implemented in Assam implemented Mission. FRERM aspects were implemented under Tranche 2 to ensure sustainability. Comprehensive state FRERM plan (prepared Tranche 2 design incorporated the adoption and implemented with stakeholder and implementation of a comprehensive consultation) is adopted and its state FRERM plan through flood and bank implementation started erosion modelling. The FRERM plan has been updated to include gender activities and would continue to update and include the vulnerable hotspots after the floods of 2019. Flood forecasting model was developed by the ISC and first trial run was carried out during monsoon of 2019 and continued in 2020. Project implementation plan, financial management plan, MIS & AMS, flood 124 1. Integrated FRERM planning, institutional forecasting and early warning system, and and knowledge bases developed and hydrographic surveys already implemented. effectively implemented in Assam Performance of FRERM agencies improved The EA and Water Resources Department and aligned with the policy and plan, and staff were trained under Tranche 1. supported by CDP Capacity building activities were continued in Tranche 2 also to ensure sustainability of FRERM policies. Sound data and knowledge base developed The EA and Water Resources Department and strengthened staff were trained under Tranche 1. Tranche 2 further added to the achievements of Tranche 1 to ensure sustainability that data gathered are being used for flood forecasting and planning. Knowledge sharing and networking The EA and Water Resources Department established and contributing to knowledge staff were trained under Tranche 1 and transfer and sharing at national and continued under Tranche 2. Proposal for international levels knowledge sharing memorandum of understanding was finalized by WRD. 2. Comprehensive FRERM nonstructural and DMOs established and strengthened at DMOs established under Tranche 1 and structural measures developed, district, block, and gram panchayat and were part of continued capacity building implemented, and sustainably maintained in highly vulnerable villages, with women under Tranche 2. Recruited consulting firm selected subproject areas, protecting flood- participation (30%) to undertake community-based flood risk prone areas along 90 km critical reach of management and livelihood activities. the Brahmaputra River having 97,500 ha of Nonstructural and other CBFRM measures, Hazard and Risk Profiles and Village Disaster urban and productive agriculture land including CBFRM investments, in place Management Plans for 32 villages in the (2017) Palasbari-Gumi and Dibrugarh sub-projects were completed with public participation at key stages (planning, development, finalization). Activities planned under Tranche 2 were expected to achieve through NGO. Cost-effective FRERM structural measures Works (6.9 km of riverbank protection and completed in subproject areas with 13.6 km of embankments) under Tranche 1 requisite social and environmental have been completed and contributed to safeguards, including: achieving these targets which will be (i) 43 km flood embankments renovated or assessed at completion of all tranches. newly constructed, (ii) 37 km riverbank protection works, and (iii) 10 spurs and 9 For Tranche 2, New FRERM structures sluice gates. consisting of 13 km flood embankment, 20 km riverbank protection, 4 sluice gates, 1 pumping station, 5 km pro-siltation measures are planned and were implemented, with an overall progress of 87%. Short- to medium-term measures for Tranche 2 supported the relevant agencies sustainable maintenance and adaptation, as in setting out short- to medium-term set out under the sector road map, in place measures for sustainable maintenance and within agreed time frame adaptation. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

125 D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Safeguards. India and the State will ensure FREMAA ensured compliance with all 18-Oct-2020 that subprojects under the Facility will be safeguards requirements. carried out in accordance with applicable laws and regulation of India and the State, the safeguard policies of ADB, and the Indigenous Peoples Development Framework, Resettlement Framework, and Environmental Impact Assessment of the three subprojects included in the Facility. Sector Road Map. India will ensure that the The State Government of Assam established 18-Oct-2020 Facility funds are utilized effectively and FREMAA as a special purpose vehicle to efficiently to implement the Investment implement the project. FREMAA has been Program and achieve its objectives. The working with ADB in ensuring compliance State will ensure compliance with the with undertakings. The State complied with institutional development actions in the the institutional development actions in the Sector Road Map, including organizational Sector Road Map. reforms and strengthening of FREMAA and associated institutions. Sustainable Infrastructure Maintenance. The The State and FREMAA allocates funds 18-Oct-2020 State will ensure that the implementation of during implementation of the investment the measures for the assured maintenance program to ensure that the infrastructure of the facilities constructed with the Facility built through the Facility is maintained. funds. Project 2 costs included the budget for the maintenance of structures built under Tranche 1. Fiduciary Oversight. India and the State will FREMAA complied with this undertaking in 18-Oct-2020 ensure that each Project account will be Tranche 1 and 2. audited by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB and the audit reports will be submitted to ADB within 6 months of the end of the relevant fiscal years. Counterpart Funds. The State will ensure Complied with. The State allocated 18-Oct-2020 that sufficient counterpart funds are sufficient annual government budget to available from its budget for each fiscal ensure the efficient implementation of the year, in a timely manner, for the efficient Project. implementation of the Projects under the Facility.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Environment, Natural Resources & Agriculture Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Although there were delays to process Project 2, the MFF

126 closed as expected, i.e., within the availability period. Tranche 2 was the final tranche under this MFF and closed on 18 October 2020. Undertakings Compliance On Track The State and FREMAA complied with the undertakings in the FFA. Tranche Performance On Track Project 1 is closed. Project 2 closed as planned on 18 Oct 2020 and its winding-up period is due to end on 30 April 2021 Overall MFF Performance On Track Tranche 1 was completed and the achieved the outputs as stated in the DMF. Project 2 was closed on 18 October 2020 and is currently under winding-up period. The MFF is on- track to achieve its outputs and outcome despite COVID restrictions.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

127 40156-013 IND : MFF - Sustainable Coastal Protection and Management Investment Program (Facility)

40156-013 IND : MFF - Sustainable Coastal Protection and Management Investment Program (Facility) (as of 31 - Dec - 2020)

This report was prepared by Rajesh Yadav and validated by Takeo Konishi, India Resident Mission, SARD 40156013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 31-Dec-2010 28-Sep-2020 9.75 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 250 250 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 84.0 million were approved. The project is to contribute towards improving management of coastal ecosystems and reduce loss of coastal property in Maharashtra, Goa and Karnataka. The immediate purpose of the project is to design Project Description innovative interventions of sustainable coastal protection and improve shoreline management planning int he above states. Link to the RRP of the https://www.adb.org/projects/documents/sustainable-coastal-protection-and-management-investment- MFF program-india-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 84.0 33.6% 10.00 102.6%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Sustainable Coastal 0.6 1.9 4.1 10.2 16.5 25.0 32.6 36.5 36.5 Protection and

128 Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Management Investment Program - Tranche 1 (Closed(1)) Sustainable Coastal 13.3 27.0 45.5 45.5 Protection and Management Investment Program - Tranche 2 (Closed(1)) Total 0.6 1.9 4.1 10.2 16.5 25.0 32.6 49.8 27.0 45.5 82.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved income and reduced poverty of the coastal communities in the subproject areas of three coastal states

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Protected and managed shorelines in the About 150 km of coastline in the states Civil works under Tranche 1 completed and three states meeting the needs of protected and managed using soft a total of 8.3 km (83% of target) of coastline stakeholders and the environment. technologies as required. in the states of Karnataka and Maharashtra protected and managed. Further, Tranche 2 is physically completed on 28 September 2020 and is under winding-up period. The project 2 is expected to protect more than 100 ha of farmland including 43 km of shoreline from erosion and saline inundation. More than 1,692 households and 26 km of village roads expected to be protected from erosion and wave damage. Community and private sector participate in Shoreline Management Organizations coastal protection and management. (SMOs) for Project 1 have been established at 2 locations in Karnataka and at 7 locations in Maharashtra. Under Project 2, four SMOs were formed and are functional. Private sector involvement in coastal management remained peripheral under the tranche 1. Private sector participation was not made part of any sub-project for Project 2 for erosion protection. The state of Maharashtra has explored possibilities for private sector participation and efforts were made for the involvement of the private sector in SMO activities. However, the subsequent project in Maharashtra cannot be part of the MFF due to time constraints. Number of businesses at intervention Project 1 was closed on 30 June 2018. The beaches increased by 15% businesses have increased significantly due 129 Protected and managed shorelines in the to increased footfall for tourism and related three states meeting the needs of economic activities for a net positive impact stakeholders and the environment. in both the states. Project 2 was physically closed on 28 September 2020, and the loan is currently under winding-up period. 10% increase in coastal shipping and fish Project 1 was closed on 30 June 2018. landings at intevention districts Construction of jetties and fish landing sites have come up with the government support in the project area due to increased fish catch and stable shoreline under Project 1. The increased number of coastal shipping and fish landings has been demonstrated in the Project Completion Report (PCR) for tranche 1 which is under final stages of circulation. Project 2 assessment would be undertaken during preparation of the completion report. Risks Assessment of Current Status Implementation delays. Under Tranche 1: Implementation delays were attributed to weak Emergency measures due to natural calamities. strata for the major CW (offshore reef). Under Tranche 2 – due to the change of site conditions after the award of the contract in one Role of extraneous factors that impact data on overall economic of the subprojects (Someshwara subproject) which resulted in growth. major design changes and has caused significant delays. Organizational capacity to undertake maintenance and Responded on a timely basis as emergency works sustainability of subprojects. Not envisaged. EA from Karnataka has the capacity to undertake maintenance required for the sustainability of subprojects. The maintenance manuals for the Project 1 subproject assets have been developed under the investment program. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Sustainable plans and management for All plans are completed and endorsed by Under Tranche 1 - SMPs for coastal districts shorelines developed (i) Participatory local bodies as stakeholders, and relevant in Karnataka and Maharashtra are prepared shoreline management plans to meet the planning authorities by 2013 in consultation with stakeholders and long term needs for for shoreline approved by Program Steering Committees management for 3 state coastlines prepared (PSC) in the State. and endorsed; (ii) Coastal management information system to support planning and Under Tranche 2 - SMPs for Karnataka is management established; (iii) Project finalized and uploaded in EA's website. management system established and Coastal management information system is CMIS is functional in both the States - operational, and subprojects for future functional in each states with linkages to Karnataka and Maharashtra under Tranche tranches planned and designed. central agencies 1. Under Tranche 2 - State Executing Agency for Karnataka has updated CMIS with all project documents, and is being functional. Staff are trained to manage and maintain Staff are being trained. the system PMUs established and staffed Tranche 1 - PMU established in both the

130 Sustainable plans and management for States - Karnataka and Maharashtra with shorelines developed (i) Participatory relevant staff. shoreline management plans to meet the Tranche 2 - PMU established with relevant long term needs for for shoreline staff in Karnataka. management for 3 state coastlines prepared PMU staff trained Staff were trained regularly. and endorsed; (ii) Coastal management information system to support planning and Project manuals prepared and fully Project maintenance manual report management established; (iii) Project operational prepared and followed. management system established and Consultants engaged and provide support Consultants engaged and provided support operational, and subprojects for future for project design and implementation. tranches planned and designed. Design for future tranches are approved by Design for tranche 2 are approved by qualified professional technical review qualified professional technical review panel and endorsed by communities and panel and endorsed by communities and stakeholders stakeholders. Under Tranche 1, Shoreline Management Organisations have been constituted, which represent the community. Similarly constitution of under SMOs is under progress. Coastal Erosion and Instability Reduced: (i) Coastline subject to erosion is reduced to MFF envisaged 150 km of shoreline Costal erosion and instability reduced; (ii) 380km from the present level of 530 km protected in 3 states. However, only two Community and private sector engaged in states participated in the investment coastal erosion and instability reduction. program and Tranche 1 in the states of Karnataka and Maharashtra protected about 10 km of coastline. Tranche 1 was physically completed on 30 June 2018 and the project completion report (PCR) which is under preparation would confirm the assessment.

In tranche 2 in Karnataka, Rock revetment completed for 4,294 m; Dune plantation completed for 3.02 ha.; and 5000 m3 of beach nourishment has been completed. Offshore works still under implementation. Maharashtra also could not process another tranche within MFF due to various reasons including time constraints. Comminity and local government resolution Tranche 1 physically has been completed on for purposes of maintenance of completed 30 June 2018. Asset Management Manuals projects have been developed under the Tranche 1 for supporting the state and local government for planning maintenance activities with adequate budget allocations. The community participation through shoreline management organizations will ensure timely maintenance of the assets. SMOs are expected to continue with shoreline management activities including maintaining softer solutions such as dune plantation.

Tranche 2 was physically closed on 28 September 2020 and the loan is currently under winding-up period. The Project supported through the community-based SMOs.

131 Coastal Erosion and Instability Reduced: (i) 50 communities with up to 30% women Tranche 1 physically completed on 30 June Costal erosion and instability reduced; (ii) beneficiaries at each intervention district 2018. Tranche 2 was physically completed Community and private sector engaged in supported on 28 September 2020 and the loan is coastal erosion and instability reduction. currently under winding up period. The assessment will come up partly in the PCR of tranche 1, which is expected to be circulated in Q1 2021. Private sector investements in coastal Not undertaken as there was not so much protection and management up to 7% of interest shown by the private sector. total cost Enhanced capacity for integrated shoreline Training provided to state/district agencies, Regular trainings were provided to all the planning and development - (i) Enhanced local experts/agencies, local bodies and stakeholders under the Project. capacity for districts and states to plan, stakeholders design, and implement shoreline protection CIMU operational by 2012 CIMU established, and under operational. and management projects; (ii) Enhanced capacity for state/district agencies, local Shoreline management plans are updated SMPs prepared and approved in both experts/agencies, local bodies and at five yearly intervals Karnataka and Maharashtra state. SMPs stakholders to provide specialist support for prepared under tranche 1 was updated in planning, modelling, design, checking and tranche 2. review for coastal protection and Adequate numbers of state/district Regular trainings were provided. management; (iii) Beaches are managed and agencies, local experts/agencies, local maintained by the communities and bodies and stakeholders trainned in stakeholders; (iv) SEAs formally mandated application of new technologies; 50 staff at to coordinate all costal protection and CWC, CWPRS, and other central agencies management programs. trained Shoreline management involving local SMOs formed and functional in both bodies as stakeholders with at least 30% Karnataka and Maharashtra. representatives from women functional Shoreline management active at each SMOs formed and functional in both subproject site Karnataka and Maharashtra. Approved formal mandate as part of SMPs approved contained mandate for proposed shoreline planning and shoreline planning and management policy. management policy Approved Shoreline Planning and SMPs prepared and approved in both Management Policy Karnataka and Maharashtra state. Approved notifiction by the states as SMPs prepared and approved in both required Karnataka and Maharashtra state. Disclosed in EA's website. Under Tranche 2, for Karnataka, the SMPs updated and consulted with various stakeholders. Teh approved version is disclosed in EA's website. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Of the 14 undertakings, all are generally Generally complied with. 31-Dec-2020 complied with.

Refer to Operations Manual section D14. 132 E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 1 was delayed due to delayed design finalization for the weaker strata for the offshore reef work in Karnataka and changes in the design and location of the offshore reef in Maharashtra. This has led to delays in Tranche 2 processing for Karnataka. Further, the altered site conditions during the implementation stage led to design changes after awarding of contract in one of the major subprojects. The Tranche 2 is physically completed on time (28 September 2020) and the loan is currently under winding-up period. Undertakings Compliance On Track The executing agency complied with the undertakings in the FFA. Tranche Performance On Track Tranche 1 is closed and Project 2, physically closed on 28 September 2020 and the loan is currently under winding-up period. Overall MFF Performance On Track Tranche 1 was completed and achieved the outputs as stated in the DMF. Project 2 is under winding-up period. The MFF is on track to achieve its outputs and outcome despite Covid restrictions.

G. Completion Reports

1. MFF Completion Report

MFF - Sustainable Coastal Protection and Management Investment Program (Facility) : MFF Completion Report prepared by India Resident Mission, SARD

2. Tranche Completion Reports

Sustainable Coastal Protection and Management Investment Program - Tranche 1 : Project Completion Report prepared by INRM, SARD

133 40648-013 IND : MFF - Infrastructure Development Investment Program for Tourism (Facility Concept)

40648-013 IND : MFF - Infrastructure Development Investment Program for Tourism (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Sourav Majumder and validated by Takeo Konishi, India Resident Mission, SARD 40648013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 28-Sep-2010 30-Jun-2020 27-Sep-2020 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 250 250 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,4 tranche/s USD 188.8 million were approved. The investment program targets inclusive economic growth and provision of livelihood opportunities for local communities in the tourism sector through tourism infrastructure development. It will focus on preservation and development of natural and cultural heritage, and incidental services linked to Project Description subprojects including municipal services, tourist support infrastructure and services, and tourist destination connectivity infrastructure. The proposed MFF is provided to support the four participating states of Himachal Pradesh, Punjab, Tamil Nadu, and Uttarakhand to develop the tourism sector as a key driver for economic growth. Link to the RRP of the https://www.adb.org/projects/documents/infrastructure-development-investment-program-tourism-india- MFF rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 188.8 75.5% 10.26 102.6%

134 3. Cumulative Disbursements (in $ million)

Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Infrastructure 0.3 3.4 5.9 11.6 20.0 29.0 36.8 42.4 43.4 43.4 Development Investment Program for Tourism - Tranche 1 (Closed(1)) Infrastructure 0.0 0.7 2.6 8.8 17.3 23.6 30.9 30.9 Development Investment Program for Tourism - Tranche 2 (Closed(1)) Infrastructure 3.2 10.6 22.3 35.5 55.5 86.2 86.2 Development Investment Program for Tourism - Tranche 3 (Active) Infrastructure 1.4 13.7 13.7 Development Investment Program for Tourism-Tranche 4 (Active) Total 0.3 3.4 6.6 14.1 32.1 57.0 82.7 108.7 100.3 100.0 174.3

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Enhanced contribution of the tourism sector to sustainable and inclusive economic growth

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Increased volume of domestic and By MFF completion: 40% increase in total Completed: international tourists to destinations within domestic tourism in four participating Punjab-312% increase (from 10.58 million to each participating state states 44.6 million in 2019) in domestic tourists. 2020 data yet to be published. Himachal Pradesh- 27% increase (from 12.80 million to 16.09 million in 2019. 2020 data yet to be published. Tamil Nadu: 351% (from 100 million in 2008 to 451 million in 2019) increase in domestic tourist visits. 2020 data yet to be published. Uttarakhand: 73% (from 22 million in 2008 to 38 million in 2019) increase in domestic tourist visits. Overall increase in total domestic tourism would be computed during facility completion report preparation. By MFF completion: �40% increase in total Completed:

135 Increased volume of domestic and international tourists in four participating Punjab-823% increase in international international tourists to destinations within states tourists in Punjab (from 0.13 million to 1.2 each participating state million in year 2018). Himachal Pradesh- decrease by 15% (from 0.45 million to 0.38 million in year 2019). Tamil Nadu: 160% (from 2.5 million in 2008 to 6.5 million in 2019) increase in international tourist visits. Uttarakhand: 45% (from 0.11 million in 2008 to 0.16 million in 2019) increase in international tourist visits. Overall increase in total domestic tourism would be computed during facility completion report preparation. By MFF completion: 30% increase in average Completed: length of stay of tourists in four Punjab: 50% increase in average length of participating states stay of tourists in Punjab (from 1-2 nights to 2-3 nights). Himachal Pradesh: no increase Tamil Nadu: 91% increase (3.58 days in 2008 to 6.82 days in 2019) in average length of stay of tourists in Tamil Nadu. Uttarakhand: 83% (3.49 days in 2008 to 6.38 days in 2019) in average length of stay of tourists. Risks Assessment of Current Status None. Not Applicable Problem Action Taken/Proposed None Not Applicable

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Enhanced quality of natural and cultural By MFF completion: Tranche 1: Works completed attractions Himachal Pradesh. Improved quality of Tranche 3: Substantial work completed and attractions in about nine tourist clusters remaining works are ongoing by utilizing inclusive of management plan-based state's resources. investments in improvements of natural and Improved quality of attractions in nine cultural heritage sites. clusters inclusive of management plan based investments of natural and cultural heritage sites would be measured during facility completion report preparation. By MFF completion: Tranche 1: Works completed �Punjab. Improved quality of attractions in Tranche 3: Substantial work completed and about seven tourist clusters inclusive of remaining works are ongoing by utilizing management plan-based investments in state's resources. improvements of natural and cultural Improved quality of attractions inclusive of heritage sites. management plan based investments of natural and cultural heritage sites would be measured during facility completion report preparation. By MFF completion: For Tranche 2, Dansborg fort and museum Tamil Nadu. Improved quality of attractions conserved. in about nine tourist clusters inclusive of Tranche 4: Substantial work completed and

136 Enhanced quality of natural and cultural management plan-based investments in remaining works are ongoing by utilizing attractions improvements of natural and cultural state's resources. heritage sites. Improved quality of attractions in nine clusters inclusive of management plan based investments of natural and cultural heritage sites would be measured during facility completion report preparation. By MFF completion: For Tranche 2, Uttarakhand �Uttarakhand. Improved quality of (i) Works for the world-class water sports attractions in about seven tourist clusters facilities at the old Ganga canal has been inclusive of management plan-based dropped from the project; (ii) Works for the investments in improvements of natural and conservation and stabilization of the cultural heritage sites. Pithoragarh fort wall are completed; and (iii) Aeration plant commissioned for the water quality of the Naukuchiyatal lake and bio-manipulation work completed. Tranche 3: Substantial work completed and remaining works are ongoing by utilizing state's resources. Improved quality of attractions in nine clusters inclusive of management plan based investments of natural and cultural heritage sites would be measured during facility completion report preparation. Throughout MFF implementation: Tranche 1: Works completed Gender-sensitive community needs Tranche 2: Works completed incorporated in all management plan-based Tranche 3: Substantial work completed and investments for natural and cultural remaining works are ongoing by utilizing heritage sites. state's resources. Tranche 4: Substantial work completed and remaining works are ongoing by utilizing state's resources. Gender-sensitive community needs incorporated in all management plan-based investments for natural and cultural heritage sites would be measured during facility completion report preparation. Greater participation by local communities By MFF completion: Tranche 1: Completed. Himachal Pradesh: in tourism-related economic activities �Administrative framework in place to Achieved- proper administrative framework foster community-based tourism products was setup for community based tourism including bed and breakfast facilities and products. A Town Tourism Development homestay arrangements, and traditional Committee and 12 Panchayat Tourism culture and crafts Development Committees were formed and provided institutional training. These are engaged in execution of tourism related activities in the cluster. Punjab-total 50 community-based bread & breakfast and farm stays were registered. Administrative set up for registration and developing community-based products are in place. Tranche 2: Completed Tranche 3: Completed. Tranche 4: Completed. Would be measured during facility completion report preparation.

137 Greater participation by local communities By MFF completion: Tranche 1: Works completed. Basic urban in tourism-related economic activities Himachal Pradesh. Improved basic tourist infrastructure services were set up in facilities in about nine tourist clusters Kangra, Chintpurni and Shimla. including basic services, information Tranche 3: Substantial work completed for signage, information centers, and waste all three participating states and remaining management arrangements. would be completed by utilizing state's resource. Improved basic tourist facilities would be assessed during the facility completion report preparation. By MFF completion: Tranche 1: Completed Capacity development Tranche 2: Completed Training programs on environment, culture, Tranche 3: Completed and tourism developed and implemented� Tranche 4: Completed Capacity development Training programs on environment, culture, and tourism developed and implemented. By MFF completion: Tranche 1 : completed. 1 km of Road was �Himachal Pradesh. Improved access to constructed in Naina Devi and access of 2.5 tourist attractions by way of 60 km of last- km Mall Road & Ridge in Shimla was also mile connectivity improvement and improved. improved signage Tranche 3: Shimla Mall Road Extension work completed. would be assessed during facility completion report preparation. By MFF completion: Tranche 1: Community-based systems established and Community-based systems established and functional in the management of natural functional in the management of natural and cultural heritage sites� and cultural heritage sites for Tranche 1. Tranche 2: Completed 46 community-based tourism (CBT) committees were incorporated (In Tamil Nadu with total 245 members and 83% women representation, 32 CBT committees incorporated in Uttarakhand with total 200 members and 91% women representation). Tranche 3: Community-based systems established and functional in the management of natural and cultural heritage sites in Himachal Pradesh, Punjab Nad Uttarakhand. Tranche 4: 110 community members (F86/M24) have trained and employed in tourism support activities. By MFF completion: Tranche 1: Completed- Total 9 subprojects Punjab. Improved basic tourist facilities in were completed which included amenities about seven tourist clusters including basic like 5 car parking, 2 tourist reception services, information signage, information center, 2 Jetties, 2 bird heights, 2 rest house, centers, and waste management and 4 camp sites. Achieved: Tourist facilities arrangements. were developed in Amritsar, Gurdaspur, � Sultanpur, Lodhi and Kapurthala clusters in Punjab Attari, Amritsar and Gobindgarh Fort. Parking for visitors, signages were provided. Tranche 3: Substantial work completed for all three participating states and remaining

138 Greater participation by local communities would be completed by utilizing state's in tourism-related economic activities resources. Improved basic tourist facilities would be assessed during the facility completion report preparation. By MFF completion: Tranche 1: Completed Capacity development Himachal Pradesh: Total 2,512 persons About 1,000 staff of state tourism offices (1,474 - 59 % women) and and related organizations (tour operators Punjab: 1,871 persons (606 - 31% women) and guides) trained in environment, culture, were trained. tourism planning, coordination, monitoring, Tranche 2: Completed and marketing 294 staff (128 women) from the states’ tourism offices and line agencies trained on environment, culture, tourism planning, and marketing. In Tamil Nadu, 4 staff training sessions with 150 staff and stakeholders with 45 women staff organized. In Uttarakhand, 1 staff training session with 144 participants with 83 women staff organized. Tranche 3: Training / Workshops given to local Community members on Ancillary service providers, First Aid Training, Cooking Training, Homestay Training, Handicraft Training-Pine needles Bamboo Craft & Crochet Knitting, Trekking Guide training, Mountaineering training , entrepreneurship. Tranche 4: Total 71 staff were participated in the training.

By MFF completion: Tranche 1 : Completed. 11 km connectivity Punjab. Improved access to tourist improvement inclusive of roadside attractions by way of around 30 km of development (Chota Gallughara last mile connectivity improvement inclusive of connectivity was improved) for the roadside infrastructure and improved pilgrims.. signage Tranche 3: Completed. 15.55 Km road length completed in Punjab. would be assessed during facility completion report preparation. By MFF completion: Tranche 1: Completed Capacity development Himachal Pradesh: Total 2,512 persons About 1,000 staff of state tourism offices (1,474 - 59 % women) and and related organizations (tour operators Punjab: 1,871 persons (606 - 31% women) and guides) trained in environment, culture, were trained. tourism planning, coordination, monitoring, Tranche 2: Completed and marketing (target: 30% women) Uttarakhand: 144 person engaged in tourism activities Tamil Nadu: 4 staff training sessions with 150 staff and stakeholders with 45 women staff organized. Tranche 3: Completed. Tranche 4: Completed.

139 Greater participation by local communities To be measured during facility completion in tourism-related economic activities report preparation. By MFF completion: Tranche 2 : At 14 tourist clusters with total Tamil Nadu. Improved basic tourist facilities 115-person capacity sanitary complexes in about nine tourist clusters including basic were constructed and drinking water services, information signage, information facilities including rest shelters were centers, and waste management provided at 3 tourist locations. About 12.91 arrangements. km underground sewer network with 521 manholes, 7 ventilation shafts and 931 house service connections were constructed in 1 tourist destination town. Total of 2,245 energy efficient illumination units installed/retrofitted at 9 tourist cities/towns. Tranche 4: Substantial work completed for all three participating states and remaining would be completed by utilizing state's resource. would be assessed during facility completion report preparation. By MFF completion: Tranche 1: Completed. Himachal Pradesh: Community-based systems established and Town Tourism Development Committee functional in the management of natural and 12 Panchayat Tourism Development and cultural heritage sites (target: 30% Committees established. Also, 35 Self Help women) Groups formed with 360 members (306 ~85% women). Punjab: Keshopur management committee formed for management of wetland. 15 Self Help Groups (SHG) formed across the state with 1720 members (1634, ~ 95% women). Tranche 2: Completed. Vulnerable women trained in micro-enterprise development and marketing support provided for finished products like handicrafts development. Rural entrepreneurial trades and marketing were organized at 14 locations with total 358 participants of which 205 were women participants in Tamil Nadu and 103 were women participants in Uttarakhand. Tranche 3: Community-based systems established and functional in the management of natural and cultural heritage sites (target: 30% women) in all three participating states (Himachal Pradesh, Punjab and Uttarakhand). Tranche 4: 110 community members (F86/M24) have trained and employed in tourism support activities. Community-based systems established and functional in the management of natural and cultural heritage sites and would be assessed during the facility completion report preparation. By MFF completion: Tranche 2 : Completed through State's Tamil Nadu. Improved access to tourist fund.

140 Greater participation by local communities attractions by way of around 35 km of Tranche 4: Completed. in tourism-related economic activities connectivity improvement inclusive of Improved access to tourist would be roadside infrastructure and improved assessed during facility completion report signage preparation. By MFF completion: Tranche 2: works completed Uttarakhand. Improved access to tourist Tranche 3: Completed attractions by way of around 100 km of would be assessed during facility connectivity improvement inclusive of completion report preparation. roadside infrastructure and improved signage By MFF completion: Tranche 2 : Completed Uttarakhand. Improved basic tourist Tranche 4: Substantial work completed for facilities in about seven tourist clusters all three participating states and remaining including basic services, information would be completed by utilizing state's signage, information centers, and waste resource. management arrangements. would be assessed after completion of ongoing works. By MFF completion: Tranche 1: Completed. Himachal Pradesh: Around 500 individuals spread over 25 3,771 individuals (1,789 ~ 47% women) communities trained on heritage trained in skills like handicraft production, management and tourism-related skills campsite management, first aid and rescue, boating and water based activity etc. Punjab: 757 people (459 women~ 60%) were trained in tourism communication, tour guide, heritage walk, nature based tourism etc. skills. Tranche 2: Completed. Vulnerable women trained in micro-enterprise development and marketing support provided for finished products like handicrafts development. Rural entrepreneurial trades and marketing were organized at 14 locations with total 358 participants of which 205 were women participants in Tamil Nadu and 103 were women participants in Uttarakhand. Tranche 3: Completed the training on heritage management and tourism-related skills in all three states ( Himachal Pradesh, Punjab and Uttarakhand) Tranche 4: Completed for Tamil Nadu. Community-based systems established and functional in the management of natural and cultural heritage sites and would be assessed during the facility completion report preparation. By MFF completion: Tranche 1: Completed Capacity development Tranche 2: Completed Adequate community level tourism Tranche 3: Completed development units set up and made Tranche 4: Completed functional by the State PIUs Adequate community level tourism development units are being set up and made functional by the State PIUs. By MFF completion: Tranche 1: Works completed Capacity development Tranche 2: Works completed

141 Greater participation by local communities Adequate community level tourism Tranche 3: Works completed in tourism-related economic activities development units set up and made Tranche 4: Works completed functional by the State PIUs (target: 30% Adequate community level tourism women) development units are being set up and made functional by the State PIUs. By MFF completion: Tranche 1: Around 500 individuals spread over 25 Himachal Pradesh: 3,771 individuals (1,789 communities trained on heritage ~ 47% women) trained in skills like management and tourism-related skills handicraft production, campsite (target 30% women) management, first aid and rescue, boating and water based activity etc. Punjab: 757 people (459 women~ 60%) were trained in tourism communication, tour guide, heritage walk, nature based tourism etc. skills. Tranche 2: Vulnerable women trained in micro-enterprise development and marketing support provided for finished products like handicrafts development. Rural entrepreneurial trades and marketing were organized at 14 locations with total 358 participants of which 205 were women participants in Tamil Nadu and 103 were women participants in Uttarakhand. Tranche 3 and Tranche 4: Trainings completed and nd would be assessed during the facility completion report preparation. Throughout MFF implementation (outputs Tranche 1: Completed 3 and 4): Tranche 2: Completed Women’s participation in consultative Tranche 3: Completed processes for selection of subprojects sites Tranche 4: Completed encouraged (target: 30% women) would be assessed during facility completion report preparation. Throughout MFF implementation (outputs Tranche 1: Completed 3 and 4): Tranche 2: Completed women’s equal access to employment and Tranche 3: Completed training opportunities on core labor Tranche 4: Completed standards (including equal wages for work would be assessed during facility of equal value) promoted (target: 30% completion report preparation. women) By MFF completion: Tranche 1: Himachal Pradesh: Parking at Capacity development Bajreshwari temple, Kangra (HPTDB/8/1) is At least two public–private partnership being operated by Private Contractor. transactions per participating state Punjab: Public-Private Partnerships were supported established for Gobindgarh Fort, Partition Museum and Attari Car Parking in Punjab. Tranche 2: Private player participation was only limited to operation and maintenance lease in Uttarakhand. This was attributed to high pilgrim volumes amongst domestic tourists in Tamil Nadu where affordability was a significant factor and low financial investment capacity for tourism centric public private partnership projects in Uttarakhand.

142 Greater participation by local communities Tranche 3: Will be outsourced since some in tourism-related economic activities of the works are ongoing through state's resources. Tranche 4: Will be outsourced since some of the works are ongoing through state's resources. Information, education, and Tranche 1: Completed communication and awareness campaigns Tranche 2: Completed carried out to mitigate Throughout MFF Tranche 3: Completed implementation (outputs 3 and 4): Tranche 4: Completed health, social, and gender-related risks would be assessed during facility associated with infrastructure development completion report preparation. By MFF completion: Tranche 1: Works completed Capacity development Tranche 2: Works completed Establishing tourist information systems/ Tranche 3: Works completed centres Tranche 4: Works completed Tourist information system/centers established. Planning Tranche 1: Works completed SLBs defined for ULBs/RLBs/associated Tranche 2: Works completed project entities, and data collection and Tranche 3: Works completed monitoring carried out; Tranche 4: Works completed Would be measured during facility completion report prepration. Planning: Tranche 1: Works completed �Organizational and financial management Tranche 2: Works completed measures for state tourism organizations Tranche 3: Works completed and associated project entities, including Tranche 4: Works completed planning, protecting, operating and Organizational and financial management managing nature- and culture-based tourist measures have been undertaken for state attractions; tourism organizations and associated project entities, including planning, protecting, operating and managing nature- and culture-based tourist attractions.

Fostering Community Participation Tranche 1: Works completed Schemes for tourism-based, gender- Tranche 2: Works completed responsive livelihood generation, involving Tranche 3: Works completed social mobilization and microfinance Tranche 4: Works completed services, designed and implemented Would be measured during facility completion report preparation. Fostering Community Participation Tranche 1: Works completed �Gender-sensitive value chain analyses Tranche 2: Works completed undertaken to establish stronger links Tranche 3: Works completed between tourism and local economies Tranche 4: Works completed Would be measured during facility completion report preparation. Planning: Tranche 1: Works completed �Sustainable funding ensured to meet Tranche 2: Works completed required O&M expenditure of assets Tranche 3: Works completed created by ULBs/RLBs Tranche 4: Works completed Would be measured during facility completion report preparation. Planning: Tranche 1: Works completed

143 Greater participation by local communities For ULBs/RLBs, evaluation undertaken, and Tranche 2: Works completed in tourism-related economic activities steps taken to ensure adequacy of Tranche 3: Works completed budgetary provision for meeting O&M Tranche 4: Works completed expenditure including introduction of Would be measured during facility appropriate taxes or admission/user completion report preparation. charges. Fostering Community Participation Tranche 1: Works completed Tourism-related skills development Tranche 2: Works completed activities in heritage management and Tranche 3: Works completed hospitality-related skills implemented in the Tranche 4: Works completed communities Would be measured during facility completion report preparation. Fostering Community Participation Tranche 1: Works completed Partnerships between communities, private Tranche 2: Works completed sector, and public sector established for Tranche 3: Works completed enhanced tourist destination management Tranche 4: Works completed and viable community tourism product Would be measured during facility development completion report preparation. Marketing and Promotion Tranche 1: Works completed � Promotional materials on proposed Tranche 2: Works completed tourist destinations and attractions Tranche 3: Works completed developed and disseminated Tranche 4: Works completed � Independent arrangements for marketing Would be measured during facility and promotion program in place completion report preparation. � Links established with market for community-based products Marketing and Promotion Tranche 1: Works completed �Promotional materials on proposed Tranche 2: Works completed tourist destinations and attractions Tranche 3: Works completed developed and disseminated Tranche 4: Works completed Would be measured during facility completion report preparation. Marketing and Promotion Tranche 1: Works completed Independent arrangements for marketing Tranche 2: Works completed and promotion program in place Tranche 3: Works completed � Tranche 4: Works completed Would be measured during facility completion report preparation. Marketing and Promotion Tranche 1: Works completed Links established with market for Tranche 2: Works completed community-based products Tranche 3: Works completed Tranche 4: Works completed Would be measured during facility completion report preparation. Risks Assessment of Current Status None. Not Applicable Problem Action Taken/Proposed None Not Applicable

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Each state must develop a tourism policy to Being Complied. Compliance would be 27-Sep-2020 mainstream: (a) balanced assessed at the time of preparation of the

144 distribution of economic opportunities Facility Completion Report. across the state through community based and eco-tourism development with an introduction of relevant monitoring indicators; (b) financial sustainability of tourism destinations and their heritage assets, and connectivity infrastructure; and (c) policy and regulatory reforms to provide for adaptive reuse of publicly-owned heritage buildings so that additional means of cost recovery is established. Each State shall take appropriate measures Being Complied. Compliance would be 27-Sep-2020 including levy of user assessed at the time of preparation of the charges/taxes related policies and Facility Completion Report. outsourcing and contracting models to ensure financial sustainability and accountability of the Investment Program as a whole. Subprojects and business opportunities Complied 27-Sep-2020 associated with the subprojects will be announced on the websites of relevant state agencies, together with pertinent information in relation to goods and service procured for subprojects. The states shall ensure that adequate basic Complied 31-Dec-2019 infrastructure and services such as electricity, water supply, sewage and solid waste management are provided and maintained by the relevant ULBs or the agency concerned at each tourist destination for which investments will be financed under the MFF. No later than 31 March 2012, each state Complied 31-Mar-2012 shall (a) have developed guidelines for effective and accurate data collection of tourism-related statistics relevant to monitor the performance indicators developed for the Investment Program; (b) have developed a set of benchmarks on the delivery of basic urban infrastructure and services, including benchmarks to be monitored by local communities, at a tourist destination or gateway for the development of tourism; and (c) ensure that each ULB where investments will be financed under the MFF will have commenced the collection of relevant data. Mobility plans shall be prepared by the Being complied. Compliance would be 27-Sep-2020 State for major tourist destinations as assessed at the time of preparation of the required. Facility Completion Report. Admission and user fees of tourist facilities Being complied. Compliance would be 27-Sep-2020 rehabilitated or created under the assessed at the time of preparation of the

145 Investment Program will be set at levels that Facility Completion Report. are sufficient to make their operation financially sustained. Where this is not feasible, the state concerned shall ensure that adequate funds will be provided to meet any shortfall between the costs and revenues for the operation and maintenance of facilities rehabilitation or created under the Investment Program.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 22-Dec-2020 Increase in ADB Financing Percentage in Works and Equipment Expenditure Category under Tranche 4 Minor 12-May-2020 Increase in ADB Financing percentage across certain categories under Tranche 3, Punjab Component Minor 17-Nov-2020 Increase in ADB Financing Percentage in Civil Works Expenditure Category, and Reallocation of Loan Funds, Tranche 3 (Uttarakhand Component) Minor 11-Jun-2020 Disbursement Arrangement across Certain Project Expenditure Categories under Tranche 3, Punjab Component.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track - Undertakings Compliance On Track - Tranche Performance On Track - Overall MFF Performance On Track About 4-5 months delays were observed in most of works due to COVID pandemic. Availability of highly skilled workforce and resource material were constrained. Substantial works were completed by mobilizing more resources to make up for the delays and remaining works are ongoing by utilizing state's resources. Overall MFF performance for 2020 is satisfactory and the MFF was physically closed on 27 September 2020.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Infrastructure Development Investment Program for Tourism - Tranche 1 : Project Completion Report prepared by INRM, SARD Infrastructure Development Investment Program for Tourism - Tranche 2 : Project Completion Report prepared by INRM,

146 SARD

147 41603-013 IND : MFF - Bihar Urban Development Investment Program (Facility Concept)

41603-013 IND : MFF - Bihar Urban Development Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Vivek Vishal and validated by Takeo Konishi, India Resident Mission, SARD 41603013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 1-Mar-2012 31-Dec-2021 9.84 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 200 200 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 110.0 million were approved. Bhagalpur, Darbhanga, Gaya, and Muzaffarpur are the four largest towns with the highest economic growth potential in Bihar, after the state capital, Patna. Despite being the economic centers of Bihar, the four towns have been unable to achieve the national urban service goals or match many of the national averages for urban service delivery performance in India. Their inability to sustain water supply and Project Description sewerage services is the result of inadequate size and condition of infrastructure, mainly attributed to inadequate new investment and operation and maintenance (O&M). The investment program will improve and expand the water and sewerage infrastructure in the four towns, and help urban local bodies (ULBs) of the four towns. The infrastructure owners to ensure discipline and structures for operations that would result in sustainable O&M. Link to the RRP of the MFF http://www.adb.org/projects/documents/bihar-urban-development-investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 148 110.0 55% 8.84 89.8%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Bihar Urban 3.8 6.0 7.8 10.3 12.6 16.4 18.4 19.0 19.0 Development Investment Program - Tranche 1 (Active) Bihar Urban 9.7 13.7 17.3 17.3 Development Investment Program - Tranche 2 (Active) Total 3.8 6.0 7.8 10.3 12.6 26.0 32.2 36.3 36.3

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Urban population in relatively poor and weak capacity state (Bihar) has improved access to water supply and sanitation facilities.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets People, especially vulnerable household, By 2018, pressurized water supply hours Will be measured when works are will have access to better quality and increased from 5-11 hours in 2010 to 24 completed. Under Tranche 1, work has sustainable urban water supply and hours. been started under the 4 contracts for the sewerage services in Bhagalpur, Darbhanga, balance work of Bhagalpur water supply. Gaya and Muzaffarpur. Under Tranche 2, water supply packages in Gaya and Bhagalpur are under progress. By 2019, centralized sewerage systems’ Sewerage sub-projects are not included in sewage collection from household Tranches 1 and 2. increased from 0% in 2010 to 70% of households. By 2020, O&M cost recovery from the user Will be measured when works are charges increased from 0% in 2010 to at completed. Under Tranche 1, work has least 80%. been started under the 4 contracts for the balance work of Bhagalpur water supply. Under Tranche 2, water supply packages in Gaya and Bhagalpur are under progress. Risks Assessment of Current Status Power supply to WTP, STP and pumping stations becomes WTP/STP are not yet fully operationalized hence this issue is not intermittent. yet prevalent. Problem Action Taken/Proposed Implementation issues discussed in Problems section of Outputs. Actions taken to address implementation issues are discussed below.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Water supply infrastructure in 3 towns By 2019, NRW reduced from 30%-40% in Will be measured when works are

149 improved. 2010 to less than 20%. completed. Under Tranche 1, work has been started under the 4 contracts for the balance work of Bhagalpur water supply. Under Tranche 2, water supply packages in Gaya and Bhagalpur are under progress. Darbhanga town was dropped by Government of Bihar. By 2019, continuous water pressure at Will be measured when works are consumer-end increased from 0 to at least completed. Under Tranche 1, work has 8 meters in all areas. been started under the 4 contracts for the balance work of Bhagalpur water supply. Under Tranche 2, water supply packages in Gaya and Bhagalpur are under progress. Darbhanga town was dropped by Government of Bihar. Sewerage infrastructure in 1 town By 2020, 100% of STP effluent quality Project dropped. improved. samples met the government quality standards. O&M of the asset created by the Between 2016 and 2021, NRW maintained Water Supply work at Gaya and Bhagalpur subprojects improved. at less than 20%. are under progress. Wil be measured when the project gets completed. Between first year of operations and 2021, Water Supply work at Gaya and Bhagalpur energy consumption level of sewer are under progress. Wil be measured when pumping stations and treatment plants the project gets completed. unchanged. Urban service delivery management By 2021, 100% of connections to new water Water supply work at Gaya and Bhagalpur improved. supply systems metered. (none in 2010) are under progress. Will be achieved when the project gets completed. By 2021, 100% of customers billed in first Water supply work at Gaya and Bhagalpur year of operations in each subproject. are under progress. Will be achieved when (none in 2010) the project gets completed. From 2016, water and sewerage operations’ Preparation of financial statement is under financial statement issued. (none in 2010) progress. Project management and implementation By 2021, 4 PMU and 14 PIU staff (at least Ongoing. PMU and PIU staff are being skills and transparency in improved. 30% of whom are women) trained in ADB trained regularly. policies and procedures. (0 in 2010) From 2013, project information and audit Project information and audit reports are reports published regularly. (none in 2010) being published regularly Risks Assessment of Current Status There is no bidder interested in the DBO contracts. So far, several bidders participated in the DBO contracts under Tranche 1 and Tranche 2. Problem Action Taken/Proposed Implementation of the project was slow during the first 3 years These issues have been addressed in Project 2 by increasing project because of low project readiness arising from (i) delays in readiness by (i) advancing the completion of the detailed designs, completion of detailed design, tendering, and obtaining required obtaining requisite clearances, and undertaking bidding to the clearances; and (ii) lack of project implementation experience and advance stage that contracts are ready to award; and (ii) ensuring inadequate staffing and capacity in the program management unit that both the PMU and PIUs are adequately staffed. (PMU) or program implementation units (PIUs).

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The State shall cause the urban local bodies Being Implemented. Darbhanga and 31-Dec-2021

150 of Bhagalpur, Darbhanga, Gaya and Muzaffarpur towns has been dropped. Muzaffarpur that each of the activities listed in the Urban Service Financial Governance and Delivery Improvement Action Plan as set out in Schedule 1 to the FFA, will be implemented in accordance with the time frame set against the relevant measure. The State shall establish a program Complied 31-Mar-2012 management unit, led by a full time program director, that will be responsible for overall Facility, monitoring and supervision, and will report directly to the Secretary, Urban Development and Housing no later than 31 March 2012. The State shall cause the Bihar Urban Complied 31-Mar-2012 Infrastructure Development Corporation to establish (i) the project implementation unit, led by a full time project manager that will be responsible for subproject monitoring and supervision, and will report to the program director, and (ii) city-level project implementation unit at each city no later than 31 March 2012. Sufficient counterpart funds (including Being Complied 31-Dec-2021 contingency funds to mitigate unforeseen cost increases) will be made available from the Government and/or state budgets each fiscal year and will be allocated and disbursed in a manner that ensures timely and effective implementation of the subprojects. All land and rights-of-way required for any Being Implemented 31-Dec-2021 of the subprojects will be made available in a timely manner; compensation at replacement value will be provided prior to the award of relevant civil works contracts; and involuntary resettlement, including relocation, will be carried out in accordance with the Resettlement Framework (RF) and resettlement plans agreed upon between the Government, the state and ADB; the relevant laws and regulations of the Government and the state; and ADBCs Safeguard Policy Statement (2009). Subprojects will be designed to have Being Implemented 31-Dec-2021 minimal impact on indigenous peoples. If an impact is anticipated, the relevant subproject will be carried out in accordance with the Indigenous Peoples Planning Framework (IPPF) and indigenous peoples plan agreed upon between the Government, the state and ADB; the relevant laws and regulations of the Government and the state; and ADB's Safeguard Policy Statement (2009).

151 The design, construction, operation, and Being implemented 31-Dec-2021 implementation of all subprojects will be carried out in accordance with the Environmental Assessment and Review Framework (EARF) and the relevant environmental impact assessment reports (e.g., Initial Environmental Examinations [IEEs] or Environmental Impact Assessments [EIAs]) agreed upon between the Government, the state and ADB; and must comply with the environmental laws and regulations of the Government and the states, and ADB�s Safeguard Policy Statement (2009). Any adverse environmental impacts arising from the construction, operation,and implementation of subprojects will be minimized by implementing the environmental mitigation and management measures and other recommendations specified in the relevant environmental management plans within IEEs/EIAs. reports. Environmental requirements will be incorporated in the bidding documents and subsequent civil works contracts for the subprojects The relevant subprojects will be carried out Being Implemented 31-Dec-2021 in accordance with the Gender Action Plan for each Tranche and the Consultation and Participation Plan for the Facility agreed upon between the Government, the states and ADB. The State shall ensure that the it will Being Implemented 31-Dec-2021 prepare plans for development of sewerage systems in Bhagalpur, Darbhanga and Gaya within one year from commissioning of the respective water supply systems financed under the Facility. The State shall ensure that, for Being Implemented 31-Dec-2021 development and installation of geographic information system (GIS)-based water and sewerage management system, georeferenced cadastral maps of Bhagalpur, Darbhanga, Gaya and Muzaffarpur with thematic layers on a GIS domain will be made available to the consultants and contractors engaged under the Facility. The State shall ensure that progress in Being Implemented 31-Dec-2021 adoption of the accrual based double entry accounting system software by the urban local bodies of Bhagalpur, Darbhanga, Gaya and Muzaffarpur, which will be delivered, will be made available to the consultants and contractors engaged under the Facility. The State shall ensure that, for water supply Being Implemented 31-Dec-2021

152 and sewerage operations of the urban local bodies in Bhagalpur, Darbhanga, Gaya and Muzaffarpur, the state will complete by March 2014 in relation to (i) preparation of georeferenced cadastral maps (ii) adoption of the accrual based double entry accounting system, (iii) setting up of ring-fenced accounts, (iv) preparation of policies on cost recovery, user charges including provisions for penalizing non- payers and subsidies, (v) preparation of a rule for sewer mandatory connections in the service areas. In case further assistance is required in addition to the ongoing initiatives, such activities will be completed under the Facility no later than December 2014.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track - Undertakings Compliance On Track - Tranche Performance On Track - Overall MFF Performance On Track The works in both the tranches were adversely affected for about 4 months due to COVID-19 outbreak. Work resumed slowly since September 2020. Health and Safety Plan in Response to COVID-19 Pandemic was added as addendum to the Initial Environmental Examination report for both the tranches.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

153 41627-013 IND : MFF - Himachal Pradesh Clean Energy Development Investment Program (Facility Concept)

41627-013 IND : MFF - Himachal Pradesh Clean Energy Development Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Vallabha Karbar and validated by Takeo Konishi, India Resident Mission, SARD 41627013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 23-Oct-2008 22-Oct-2018 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 800 800 0 Total ($ Million) Cofinancing Sources Non-administered a 250 Participating Financial Institutions Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,4 tranche/s USD 421.4 million were approved. The proposed Program combines physical investments in hydroelectric power generation in the state of Himachal Pradesh (HP) with nonphysical interventions in capacity development. The hydropower projects The main objective is to help fulfill local demand, as Himachal Pradesh experiences energy shortages, especially in the winter months of December to February when river flows are at their lowest, with some peak shortages experienced throughout the year. Surplus power, particularly due to strong river flows from the spring snow melt, will be exported to the northern grid, thus serving as an important source of revenue for the state. However, the program will benefit all Northern Grid-connected electricity consumers via the export of excess power and by eliminating the need to import power from the Project Description Northern Grid, thus assissting the Government in its efforts to increase its overall generating capacity and achieve universal electrification under the 11th Five Year Plan. The second main objective is to provide capacity development assistance in order to develop the state hydropower generating company, Himachal Pradesh Power Corporation Ltd., into an efficient, corporatized generation company.

The scope includes construction of four medium to large hydropower projects, the Sawra Kuddu (111 MW), Integrated Kashang (195MW), Sainj (100 MW) and Shongtong-Karcham (450 MW). All proposed hydropower projects for the Program are run-of-the-river design. Link to the RRP of the MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

154 2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 421.4 52.7% 12.19 121.9%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total (with loan status) MFF - Himachal 12.3 42.7 75.5 99.4 118.8 131.3 138.5 141.7 143.2 142.0 142.0 Pradesh Clean Energy Development Investment Program (Tranche 1) (Closed(1)) MFF - Himachal 11.2 27.5 33.1 41.2 45.5 46.1 49.2 50.8 50.8 Pradesh Clean Energy Development Investment Program -Tranche 2 (Closed(1)) MFF - Himachal 45.5 73.3 106.4 136.7 157.8 170.2 182.7 182.8 177.8 177.8 Pradesh Clean Energy Development Investment Program - Tranche 3 (Closed(1)) Himachal Pradesh 28.1 30.9 45.5 53.9 56.0 50.7 50.7 Clean Energy Development Investment Program - Tranche 4 (Closed(1)) Total 12.3 53.9 148.6 205.7 294.6 344.5 387.9 415.0 432.7 324.8 228.6 421.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with A sustainable state electricity sector and improved state finances.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Increased hydropower production, as well State’s hydroelectric capacity to increase 1. Total installed capacity increased from as improved planning, implementation, from 2007 baseline of 413.5 MW to 1,221.5 413.55 MW to 652.55 MW. management and sector governance. MW by 2016. 2. Fully functioning board, internal audit, Corporatized HPPCL, with fully functioning control and reporting system have been board, internal audit, control, and reporting established. systems. 3. Projected to develop transmission system Completed plans for transmission system of 105 km and Substation of 2001 MVA. upgrades. Risks Assessment of Current Status

155 • Lack of, or delay in, counterpart funding. Counterpart funds have been made available in a timely manner. • Delays in construction process and/or in safeguard sanctions. Physical implementation of the project delayed due to slow implementation. Problem Action Taken/Proposed Under Tranche 4, at the time of loan appraisal, due to challenging Since October 2014, the Implementation Agency (IA) Himachal geographical conditions at the site (particularly the stability of the Pradesh Power Corporation Limited (HPPCL), with the support of right bank slope), it was decided that further site specific an international expert geologist has been trying to collect the geological investigations will be carried out to ascertain the geological data at the site. The geological data has been collected suitability of the Project site and recommend mitigation measures and was submitted to the panel of experts (POE - consists of hydro- to stabilize the right bank slope. electric project experts - tasked with providing advice to HPPCL on all technical matters related to the Project). The data being used to carry out geological investigations and suggest mitigation measures to ensure the stability of the right bank slope. In June 2018, HPPCL has engaged an international consultant to prepare a concept design. Consultant appointed by HPPCL has prepared draft concept design for slope stabilization and presented during joint meeting of HPPCL, KfW, ADB and POE on 21 November 2018. Based on the presentation and subsequent discussions, HPPCL informed that they will be reviewing the same and will come out with revised concept design proposal, which is ongoing. In parallel, ADB has also mobilized consultants for developing Terms of Reference (TOR) for hiring consultants for (i) preparation of Basic design for right bank slope stabilization of Shongtong Karcham HEP on the basis of approval of Concept Design; and (ii) Project Management Consultant (PMC) for remaining HEP works, including the slope treatment and ground improvement measures. Consultants will submit TORs within one-month time after finalization of basic concept design.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Capacity development component. Project management units in place by 2008 1. Completed.

(i) Project-oriented: Proper training 2. Completed. Implemented capacity development of provided in project development, design, various departments of HPPCL, focusing on and implementation by 2009 3. Timely conduct of related training (a) project preparation, implementation program. and management (including procurement, Proper training in mainstreaming safeguard disbursements, safeguards compliance, and issues by 2009 4. Management information system (MIS) reporting); (b) financial management and developed in 2011. accountability; and (c) knowledge transfer for compliance with ADB policies and 5. CDM application to be developed. procedures.

(ii) Corporate development: (a) Implemented capacity development to improve governance, fiduciary oversight, Management information systems installed and organizational structuring; and by 2009 (b) Developing in-house expertise within HPPCL on private sector participation Reinforced capacity for CDM application modalities and CDM procedures. process and ongoing management of carbon credit opportunities. (iii) Implement enterprise resource planning solution at HPSEB.

156

Management information systems installed at HPSEB by 2011 Risks Assessment of Current Status Implementation delays. Tranche 3 National Green Tribunal (NGT) has disposed of the Lippa villagers petition in favor of the Project in December 2017. In view of this, contractor has re-started works at the project site end of the head race Tunnel (HRT) at balancing reservoir (BR), at least 3 more years will be required beyond 22 October 2018 to complete K-K Link tunnel works (expected to be completed in 2021-22). Tranche 4 Due to geological conditions at the project site, pace of implementation of project has been very slow. Necessary investigations and analysis based on data collected at site are being carried out. Based on this available data and analysis, design of necessary preventive measures to ensure the geological stability of the right bank of the project is being finalized. In view of this, project completion will be delayed by at least 5 years (expected to be completed in 2023-24). EA has informed that commercial bank (Domestic) have shown willingness to finance the balance works with state government guarantees- an agreement to this effect is expected to be signed soon. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Full functioning Board of directors in place. Complied. 31-Mar-2010 Board level committees, including an audit Complied. 31-Mar-2010 committee, are formed. Internal audit functions strengthened. Complied. 31-Mar-2010 Internal controllers are appointed. Complied. 31-Mar-2010

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche-1, Tranche-2 & Tranche-3 are on track, while Hydro-electric project under Tranche-4 has been substantially delayed due to issues related to the geological conditions at project site. Undertakings Compliance On Track Complied.

157 Tranche Performance On Track Tranche-1, Tranche-2 & Tranche-3 are on track, while Hydro-electric project under Tranche-4 has been substantially delayed due to issues related to the geological conditions at project site. Overall MFF Performance On Track All four tranches under MFF have been closed within 10 years of MFF approval date. However, balance works of the projects (funded under ADB tranches) are under implementation (funded under counterpart funding) have been impacted due to COVID-19.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

158 42265-013 IND : MFF-Assam Urban Infrastructure Investment Program

42265-013 IND : MFF-Assam Urban Infrastructure Investment Program (as of 31 - Dec - 2020)

This report was prepared by Bhavesh Kumar and validated by Takeo Konishi, India Resident Mission, SARD 42265013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 9-Sep-2011 30-Jun-2018 29-Jun-2021 9.81 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 200 200 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 1 tranche/s are expected under the MFF. Of which,1 tranche/s USD 72.3 million were approved. The Multitranche Financing Facility will finance a slice of the government'�s investment plan for Assam'�s urban sector through the Assam Urban Infrastructure Investment Program.

The proposed MFF will finance a portion of the urban infrastructure initiatives of the Government of Assam for the cities of Guwahati and Dibrugarh. It will improve the urban services in these cities by Project Description improving water supply, sanitation, solid waste management (SWM), and drainage infrastructure to the standards set by the State.

The impact of the investment program will be an improved access to water supply, sanitation, and urban infrastructure facilities by the urban population in Guwahati and Dibrugarh. The expected outcome will be improved and sustainable water supply, sanitation and drainage in Guwahati and Dibrugarh. Link to the RRP of the https://www.adb.org/projects/documents/assam-urban-infrastructure-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 72.3 36.2% 9.31 94.9%

159 3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Assam Urban 0.5 1.6 3.9 6.2 10.9 16.2 22.4 33.9 43.9 43.9 Infrastructure Investment Program - Tranche 1 (Active) Total 0.5 1.6 3.9 6.2 10.9 16.2 22.4 33.9 43.9 43.9

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Urban population in relatively poor and weak capacity state (Assam) has improved access to water supply, sanitation, and urban infrastructure facilities.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved and sustainable water supply, Time spent for collecting water by women Under Project 1, out of 2 water supply sanitation and drainage in the selected and girls in connected households reduced contracts for Guwahati. 1 for construction project cities in Assam. by at least 75% from about 2 hours daily of 3 numbers reservoirs and 1 for laying of 23.54 km of transmission lines. Both the contracts are in advance stage of completion. Additional financing to ongoing Project 1 (Loan 3624), was approved on 13 December 2017 and become effective on 24 May 2019. Reduction in frequency of major flooding In Dibrugarh, works for secondary drains impact from present annual to once in 10 awarded under Loan 3624 is ongoing. years Increased income for poor households and Works are ongoing under Tranche 1. Target FHHs by 25% through the processing of will be achieved after the completion of solid waste and recyclable products works and procurement of necessary equipment. Risks Assessment of Current Status Population growth varies significantly from estimates. There is no significant variation in population growth rate observed. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved, regular and sustainable metered Number of households connected to No household connections as the water supply in Guwahati. metered water supply in southeast zone of distribution network is dropped. Guwahati (target: 20% from low income households, and 11% from FHHs) Service coverage with piped water supply Coverage is not increased as the water increased to more than 90% households in supply packages under Project 2 is dropped.

160 Improved, regular and sustainable metered Guwahati (target: 20% from low income water supply in Guwahati. households, and 11% from FHHs) User charge plans prepared and submitted This is still being prepared by the for water supply with special subsidized government. rates for (target: 20% from low income households, and 11% from FHHs) Solid waste management infrastructure Solid waste collected up to 80% in service Not yet achieved. improved in Dibrugarh. area (target: 12% low income households, and 11% from FHHs) The 2 works contracts are in the advance stage of completion and supply of goods are ongoing. Up to 2,000 women access employment This is yet to be achieved as the works are opportunities with equal pay for work of still ongoing. equal value Improved urban drainage system in Incidence of street flooding reduced by 20% One contract under Project 1 and one Dibrugarh and Guwahati. per year contract under Project 2 for Dibrugarh secondary drainage has been awarded and are under implementation. Project management and implementation At least 250 ULB Staff Implementing Agency In progress. skills strengthened in the implementing Staff (target: 30% women) trained in social- agencies and ULBs. inclusive and gender responsive O&M services, financial management. Gender and vulnerability O&M manuals In progress. informed by gender and social inclusive considerations prepared and disseminated Community awareness campaigns on In progress. social/gender and health, sanitation issues conducted in all project city ULBs At least 50% of facilitators and participants In progress. in sanitation campaigns are women Risks Assessment of Current Status There is no bidder interested in the design-build-operate contracts. The design- build-operate contract is awarded and under ULBs are hesitant to adopt user charge plans for water supply and implementation. sewerage. The actions for revising water and waste tariffs in Guwahati and Dibrugarh for sustainable operations are being undertaken respectively. Problem Action Taken/Proposed The implementation of Project 1 suffered from slow progress To ensure achievement of envisaged outputs under Project 1 and because of the delay in procurement of civil works, poor based on borrower’s request, the loan closing date of Project 1 has performance of contractors, insufficient staffing of the project been extended until 29 June 2021. To streamline decision making, a management unit (PMU) and project implementation units (PIUs), special purpose vehicle with the name Assam Urban Infrastructure and delay in environmental clearances. Loan signing of Project 2 is Development & Management Agency (AUIDMA) has been delayed primarily due to the cancellation of a major contract constituted and its rules of business, by-laws are being finalized. award for Guwahati water supply, which resulted in not meeting The strength of PMU has been strengthened with 51 sanctioned the project readiness criteria for signing of the loan. positions of which 42 are filled with the rest being recruited. The EA plans to undertake capacity development initiatives for PMU staff including fixing of roles and responsibilities. This will ensure close monitoring of works and balance procurement. Based on a series of discussions with borrower and the EA, (i) a minor change in MFF, resulting from restructuring of the investment program due to shifting of two contracts from Project 2 to Project 1; and (ii) a major change in scope of Project 2 due to cancellation of substantial part of Project 2 and converting balance part as

161 additional financing to ongoing Project 1 was approved by the President.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The State shall ensure that all water, Not Yet due. 29-Jun-2021 sewerage, and solid waste tariffs are established in accordance with applicable GoA policies, including without limitation (i) that the water tariff collection rate in the Guwahati and Dibrugarh ULBs shall be at or above the level of 90% by 2017; (ii) that at least 90% of the total population of Guwahati ULB is connected to the piped water supply system and 100% of the connected customers in Guwahati are metered on completion of the water supply subproject; and (iii) for the urban solid waste management subproject, that user charges are applied to cover at least 25% of operation and maintenance costs within 2 years of subproject completion India and the State shall ensure timely Not Yet due. 29-Jun-2021 adoption and implementation of a water tariff revision road map and plan, to ensure that by end 2017 the water tariff level is sufficient to cover, substantive to full operation and maintenance of the water operations and shall include updates on the progress of implementation in the quarterly progress reports to ADB described in the FAM. The detailed tariff revision road map and plan shall set out key milestones for the introduction of the revised water tariffs to try meeting full O&M costs, sewerage fees, and solid waste management user charges in Guwahati and Dibrugarh by end 2017. The detailed tariff revision roadmap and plan will be submitted to ADB within 10 months following signing of the Loan Agreement. The State shall ensure that in relation to the Not Yet due. 29-Jun-2021 urban solid waste management subproject, the Dibrugarh Municipal Board shall use its best efforts to ensure that house to house collection is implemented to cover 100% of households in Dibrugarh ULB. India and the State shall keep ADB informed Being Complied. 29-Jun-2021 of discussions with other multilateral, bilateral and national aid agencies that may have implications for the implementation of the Investment Program, including, without limitation, Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Japan International Cooperation Agency (JICA);

162 the Borrower and the State shall provide ADB with an opportunity to comment on any resulting policy reform and/or investment proposals, and shall take into account ADB?s views before finalizing and implementing any such proposals The State will ensure that the concerned Being Complied. 29-Jun-2021 staff in Guwahati and Dibrugarh responsible to the related ULB shall be trained by the contractors in operation and maintenance of subproject facilities. In this regard the EA and IA will ensure that an O&M plan will be developed for each subsector. The O&M plan will also assess additional human and financial resources required by each ULB/appropriate authority for smooth hand-over of Subproject facilities.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Implementation is on track.

Undertakings Compliance On Track Loan covenants are being complied with. Tranche Performance On Track The tranche is rated On track.

Overall MFF Performance On Track There were delays in implementation as the works were stopped due to national lock down implemented in India due to COVID-19. The arrival of construction material, equipment and technical experts were also delayed due to travel restriction in the state. The project has now picked up and the performance of MFF is satisfactory.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

163 42266-013 IND : Kolkata Environmental Improvement Investment Program (Facility Concept)

42266-013 IND : Kolkata Environmental Improvement Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Sourav Majumder and validated by Takeo Konishi, India Resident Mission, SARD 42266013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 26-Sep-2013 31-Aug-2023 9.93 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 400 400 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 373.0 million were approved. Kolkata is the capital of the Indian state of West Bengal, and one of the densest megacities in the world, with 24,000 people per square kilometer. Kolkata faces multiple challenges. In 2017, Kolkata had an estimated 5.2 million people; while the total population of the city and its suburbs was 14.7 million, making it the third-most populous metropolitan area in India. KMC is mandated to provide urban services�including water supply and S&D�to its citizens, but services are not uniform across the city. In 2007, Kolkata was identified as a hotspot for climate change and among the top 10 cities with high exposure to flooding under climate change forecasts by the Organization for Economic Cooperation and Development. In 2011, a detailed study by the World Bank assessed Kolkata�s vulnerability to climate change and recommended investments in S&D systems. In 2011, KMC prepared an investment plan to Project Description improve the urban sector, which estimated the needed physical investment at $4 billion. KMC designed KEIIP to increase its climate resilience and urban services by adopting the recommendations from the 2011 World Bank study and following the investment plan and KMC�s relevant master plans and policies. The program�s associated policy framework aims to create an enabling environment for improved services. Adoption of a water loss roadmap in 2016, property tax reforms in 2017, and increases in urban services through Projects 1 and 2 of KEIIP (approved in 2012 and 2016, respectively) are helping KMC address some of the challenges identified by the policy framework. Project 3, approved in August 2018 continues expanding S&D coverage, provide treatment for sewage collected under KEIIP, and strengthen KMC�s capacity for resilient urban services.

Link to the RRP of the http://www.adb.org/projects/documents/kolkata-environmental-improvement-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

164 Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources Improvement Investment 10-Jan-2017 For Risk Track Track Program - Tranche 2(Active) Attention Kolkata Environmental 13-Aug-2018 100.0 0.0 0.60000 At 100% 56.85% On On Yes Improvement Investment 14-Dec-2018 At Risk Risk Track Track Program-Tranche 3(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 373.0 93.3% 7.27 73.2%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Kolkata 2.4 13.5 29.5 42.2 56.7 64.9 69.5 69.5 Environmental Improvement Investment Program - Tranche 1 (Closed(1)) Kolkata 24.4 48.4 77.8 95.3 95.3 Environmental Improvement Investment Program - Tranche 2 (Active) Kolkata 8.7 13.0 13.0 Environmental Improvement Investment Program-Tranche 3 (Active) Total 2.4 13.5 29.5 66.6 105.1 151.4 177.7 177.7

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved access to water supply and sanitation in KMC

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved water supply, sewerage, and By 2023, water supply hours in pilot areas Works ongoing for water loss management drainage service quality and operational are increased to 24 hours from 4-7 hours in in three pilot areas. sustainability in selected areas of KMC 2011. By 2023, 100% of collected sewage Substantial physical progress achieved in

165 Improved water supply, sewerage, and continues to be treated (baseline = 100% in augmentation of sewage treatment plants drainage service quality and operational 2011). (STPs) under Tranche 1. Three new STPs will sustainability in selected areas of KMC be constructed under Tranche 3. By 2023, incidence of flooding reduced in Installation of sewerage-drainage pipes on- 98% of area (baseline = 80%). track. By 2023, O&M cost recovery, including state Being complied with. subsidies and the KMC’s property tax, maintained at more than 100%. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Inefficient water supply assets rehabilitated. By 2023, water production capacity restored Water production capacity restored to to 1,478 mld (baseline = 1,374 mld in 2011). 1,478 mld. By 2023, leakage from 700 km of water Works for nonrevenue water reduction in pipes is detected and repaired through a the pilot areas are under progress. PBC (baseline = 0 km in 2011). District metering areas (DMAs) identified. 6 DMAs completed out of which 5 are commissioned. 117 kms of water supply pipes laid till now. By 2023, water meters are installed on at The household water meters are being least 40,000 connections in the pilot area, installed in the identified DMAs of the pilot 15% of which are households that are area. 9,259 household water meters vulnerable or headed by women, and installed so far. House connections are maintained and read through the PBC being progressively provided with the laying (baseline = 0 in 2011). of sewerage network. 8,415 house connections provided so far. Sewerage extension to peripheral areas By 2023, three sewage treatment plants Being implemented under Tranche 3. continued. with 47 mld capacity are constructed with measures to reduce greenhouse gas emissions (baseline = 0). By 2023, 170 km of sewer–drain pipes are On-track. installed (baseline = 0 km in 2011). By 2023, 27,000 direct connections are On-track. newly installed, 15% of which are for households that are vulnerable or headed by women (baseline = 0 in 2011). Financial and project management capacity By 2023, operating receipts and state Not yet due. further developed. subsidies exceed operating expenses (baseline = N in 2011). Contract award and disbursement achieved Being complied with. for not fewer than 80% of the annual targets in each year during 2013–2022 By 2023, at least 90 PMU staffers (at least On-track. 30% of them women) retrained on ADB’s updated policies and procedures (baseline = 0 in 2011). Risks Assessment of Current Status 166 None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The State and KMC will undertake to Being complied/ ongoing. 31-Mar-2021 implement in a timely manner the reform activities under Table 10 of Schedule 1 to the FF towards i) 24 hour continuous water supply at 100% coverage; (ii) increasing service coverage of the sewerage; and (iii) finance investment from surplus in dedicated account. Institutional reforms - Project Director will Complied. KMC has provided more than 31-Mar-2016 form working group in PMU to devise the 100 full time staff for smooth function of way to enhance PMU's contract award and PMU. disbursement capacities - Identification of options for transforming PMU to an autonomous entity with flexibility in human resource management - KMC will draft notification, and operational and administrative documents required to set up autonomous entity based on recommendation of the working group. KMC will consider adoption of notification to set up autonomous entity. KMC will issue notification for mandatory Complied under section 294 of the KMC 30-Jun-2023 sewer connections for all premises in Act. service areas under KEIP and KEIIP with penalties for non-connection. Geographic information system KMC will Being complied. GIS base map is completed 31-Mar-2019 ensure that digitized data on water supply and layer verification are at advance stage. and sewerage assets created under subprojects will be shared with other departments of KMC through a common computerized system. Engagement of contractor specialized in Complied. KMC has awarded 3 water loss 30-Jun-2018 water loss management and establishment management contracts for Cossipore, Joka of water loss management unit with and East Kolkata pilot zones under Projects adequate staff. 1 and 2. Water loss management unit established and being strengthened. Cost Recovery - Establishment of Utility Being complied/ ongoing. Utility Finance 30-Jun-2023 Finance Improvement Unit - Incorporation Improvement Unit under PMU has been of energy cost in water, sewerage and merged with the WLMU based on findings drainage account. Utility Finance and agreed during midterm review of MFF. Improvement Unit will review the unit price KMC has incorporated energy cost in water, for existing bulk water supply contracts with sewerage and drainage to capture the other ULBs. Bulk water collection is not less accrued cost. Water Loss Policy Roadmap 90% between 2014 and 2022. Utility Finance incorporating all agreed reforms in the Improvement Unit will draft policy on water supply sector under the FFA, has subsidy for water supply and sewerage user been approved and progressively being charges incorporating concessionary implemented as per roadmap. arrangements for vulnerable and/or women

167 - headed households. KMC will announce and publish the policy with fiscal year 2015. Utility Finance Improvement Unit will draft notification on enabling water supply, sewerage and drainage account to accumulate surplus for capital investments etc. Adoption of the draft notification by KMC. Sustainability enhancement - The state and Being complied/ ongoing. KMC has 30-Jun-2023 KMC will start implementation of roadmap approved roadmap for Self Sustainable for Self Sustainable Water Supply System in Water Supply System in Kolkata. The action Kolkata. Also KMC will introduce water points under the roadmap are being metering and water tariff for sections of implemented by KMC progressively. domestic consumers from FY 2015-2016 in parallel with progress of water loss management. State and KMC will implement water loss management activity in Cossipore service zone, ward numbers 1 to 6. KMC will ensure that digitized data on water supply and sewerage assets created under subprojects will be shared with other departments of KMC through a common computerized system developed under DFID.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track - Undertakings Compliance On Track - Tranche Performance Potential Problem About 4-5 months delays were observed in most of works due to COVID-19 pandemic and Cyclone Amphan. Availability of highly skilled workforce and resource material were constrained. Submission of audited entity financial statements FY 2019 of KMC has been delayed. Overall MFF Performance On Track COVID-19 pandemic and Cyclone Amphan impacted the works and procurement progress by 4-5 months. EA is in discussion with the contractors to mobilize more resources to make-up the delay in works. The procurement activities would be completed by Q1 of 2021.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

168 not yet due

169 43253-013 IND : Karnataka Integrated and Sustainable Water Resources Management Investment Program

43253-013 IND : Karnataka Integrated and Sustainable Water Resources Management Investment Program (as of 31 - Dec - 2020)

This report was prepared by Marie L'Hostis and validated by Mio Oka, Environment, Natural Resources & Agriculture Division, SARD 43253013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 25-Sep-2014 30-Sep-2021 24-Sep-2024 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 150 150 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 117.0 million were approved. The investment program will improve water availability to meet competing water demands in selected river basins in the state of Karnataka by implementing integrated water resources management (IWRM). Project Description It will improve water use efficiency in irrigated agriculture to provide economic opportunities to improve rural incomes. Link to the RRP of the http://www.adb.org/projects/documents/karnataka-integrated-and-sustainable-water-resources- MFF management-investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources Karnataka Integrated 17-Oct-2014 26.0 0.0 0.94000 On 99.4115% 93.5808% For On Yes and Sustainable Water 13-Jul-2015 On Track Attention Track Resources Management Track Investment Program - Project 1(Active) Karnataka Integrated 4-Oct-2019 91.0 0.0 1.00000 On 99.4437% 100% On Track On Yes and Sustainable Water 24-Jan-2020 On Track Track Resources Management Track Investment Program - Tranche 2(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 117.0 78% 6.27 62.7%

170 3. Cumulative Disbursements (in $ million)

Approved Tranches 2016 2017 2018 2019 2020 Total (with loan status) Karnataka 3.7 11.3 16.1 22.2 24.3 24.3 Integrated and Sustainable Water Resources Management Investment Program - Project 1 (Active) Karnataka 7.8 7.8 Integrated and Sustainable Water Resources Management Investment Program - Tranche 2 (Active) Total 3.7 11.3 16.1 22.2 32.2 32.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with improved sustainable water security in selected river basins in Karnataka.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets integrated water resources management State water resources management The draft state water policy has been shared successfully implemented in selected river strategies institutionalized with all state departments for their review basins in Karnataka. and their clearance. The policy will subsequently be placed for cabinet approval. Systems for quantitative water use by Karnataka Water Resources Information sectors are established (from 2018) System is being developed. 99 out of 110 WUCSs confirm receipt of Under Tranche 1, which improves the Gondi water service (baseline = 0) irrigation system, there are 11 WUCS that have benefitted from the project. Tranche 2 envisages establishment of at least 30 WUCS and trained on operation and maintenance of tertiary irrigation system and improved on-farm water application methods. The balance WUCS are for the TLBC subproject that will be taken up as a standalone project. Risks Assessment of Current Status No results found. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance

171 Baselines in the RRP indicators with targets State and basin institutions strengthened At least three river basin plans are K8 (incl. K9) plan has been prepared under for IWRM developed (baseline = 0) Tranche 1. Under Tranche 2, preparation of River Basin Profile for K2, K3 and K4 subbasins of Krishna Basin is in progress. At least 600 WRD staff (of which about 200 Under Tranche 1: 455 WRD staff trained in are women staff) are certified in IWRM IWRM of which 146 are women. (baseline = 0) Under Tranche 2: 58 WRD staff trained in IWRM of which 28 are women. State water resources information systems Karnataka Water Resources Information established System is being developed under both (baseline = 0) tranches. Irrigation system infrastructure and 300 km of irrigation canal upgraded Tranche 1 has upgraded 379.20 km of management modernized (baseline = 0 km) canals. Tranche 2 will upgrade 414.35 km of canals; Tranche 2 VNC is being implemented in two packages: • Package-1 Civil works (excluding works in Tungabhadra Otter Conservation Reserve and Hampi World Heritage Area) at an estimated cost of INR 3,739 Million are under progress. As of 31 December 2020, 48.57 km of lining work completed (25%) out of 196.62 km, and 210 of the 1042 structures (20%) are completed. • Estimates for Package-2 civil works in Tungabhadra Otter Conservation Reserve and Hampi World Heritage Area are finalized. ERC approval received; bidding documents under preparation.Clearance from NBWL awaited. Asset management plans implemented for Tranche 1 has developed and main system infrastructure on three operationalized the asset management for selected systems (baseline = 0) Gondi subproject, while that for Vijayanagara Channels (VNC) under Tranche 2 will be prepared and developed by Tranche 2 PSC (Part B) which is under recruitment. More than 82 of 110 WUCSs operate and 11 WUCS for the Gondi subproject have maintain transferred infrastructure, been established under Tranche 1. At least including fee collection (baseline = 0) 30 WUCS for the VNC subproject will be established under Tranche 2. The balance WUCS are in the Tungabhadra Left Bank Canal (TLBC) subproject that will be taken up as a standalone project. Social processes of WUCS formation and strengthening have started and progressing well under Tranche 2. As of December 2020, 31 women subcommittees formed with 499 members; a total of 89 training events covering 2223 participants [(M:1164 (52%), F:1059 (48%)] have been completed. About 30% of WUCS management boards For the WUCS established under Tranche 1

172 Irrigation system infrastructure and are women for the Gondi subproject, only 21% of management modernized management board members are women (25 women over a total of 119 WUCS board members). This is limited by the cooperative bylaws. However, Gondi project promoted a total of 55 women members (non-voting) in WUCS boards (5 per WUCS), thus increasing the women representation to 68.6%. Furthermore, all WUCS have women subcommittees that are operational. Program management systems operational Project outputs delivered on time and Tranche 1 is under budget but with time within budget extension, physically closed on 31 Dec 2019. Increase of Tranche 2 budget has been approved but commencement is behind schedule. Risks Assessment of Current Status Certified WRD staff remain in office. Majority of certified WRD staff are remaining in office. Staff government continues to support irrigation management Staff government continues to support irrigation management transfer, and WUCS collecting irrigation service fees. transfer, and WUCS collecting irrigation service fees. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The State shall remain committed to Being complied with 24-Sep-2024 organizational reforms and capacity building for ACIWRM, KNNL, CADAs, WUCSs and other water resource agencies to implement IWRM and improve irrigation service delivery in selected river basins.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Environment, Natural Resources & Agriculture Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track MFF availability period extended from 7 years to 10 years. Tranche 1 closed on 31 December 2019. Tranche 2 approved on 4 October 2019, signed on 18 November 2019 and declared effective on 24 January 2020. Tranche 2 closing date is 31 March 2024. Undertakings Compliance On Track Undertakings are being complied with. Loan covenants are checked during each mission. Tranche Performance On Track Tranche 1 closed on 31 December 2019; implemented under budget but with time extension; rated On Track. The targeted number of WUCS will not be achieved but the balance will be taken up under a

173 proposed standalone project (Tungabhadra Left Bank Canal modernization project). Tranche 2 approved in 2020, project progress being monitored. Overall MFF Performance On Track Generally satisfactory. Works have resumed but VNC Package 1 progress has slowed due to the COVID-19. Labour deployment on site is restricted affecting the planned progress.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

174 43253-024 IND : Karnataka Integrated Urban Water Management Investment Program

43253-024 IND : Karnataka Integrated Urban Water Management Investment Program (as of 31 - Dec - 2020)

This report was prepared by Akira Matsunaga and validated by Norio Saito, Urban Development and Water Division, SARD 43253024 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 28-Mar-2014 15-Mar-2024 9.97 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 152 150 2 Total ($ Million) Cofinancing Sources Non-administered a 60 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 151.8 million were approved. Karnataka (the State) is one of India's most water-stressed states. With approximately 38% of the state's population living in urban areas, against 28% for the country as a whole, Karnataka is also the 4th most urbanized state in India, and this value is expected to increase to 50% by 2030. Karnataka's Vision 2020 anticipates increasing urbanization and industrialization. However, without effective management of available resources, water will become the main constraint on economic development. The Karnataka Integrated Urban Water Management Investment Program (KIUWMIP or the Program) aims to improve Project Description water resource management in urban areas in a holistic and sustainable manner. Investment support will be provided to modernize and expand urban water supply and sanitation (UWSS) while strengthening relevant institutions to enhance efficiency, productivity, and sustainability in water use. Innovative instruments, such as public-private partnership (PPP) or reform-oriented incentive funds, will also be pursued. The Program will seek to assist more fragile environments increasingly affected by water resource degradation, often located in North Karnataka. The Program will also promote climate-resilient development, capacity-development for conducive adaptation. Link to the RRP of the http://www.adb.org/projects/documents/karnataka-integrated-urban-water-management-investment- MFF program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made

175 effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 151.8 99.9% 6.76 67.8%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2015 2016 2017 2018 2019 2020 Total (with loan status) Karnataka 4.1 8.0 23.9 39.0 64.8 75.7 75.7 Integrated Urban Water Management Investment Program - Tranche 1 (Active) Karnataka 16.6 24.4 24.4 Integrated Urban Water Management Investment Program-Tranche 2 (Active) Total 4.1 8.0 23.9 39.0 81.4 100.0 100.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved sustainable water security in selected river basins in Karnataka.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved water resources management in Improved water use efficiency through Not yet due. It will be achieved after the urban areas in selected river basins in NRW reduction from 40-50% (estimated completion of the project. Karnataka under 24x7) 20% or less in Program towns. 90,000 households with new or improved Not yet due. It will be achieved after the water supply and 76,000 households with completion of the project. new or improved sanitation. Medium-term (15 year) drinking water Not yet due. Ongoing Medium term quantity demand forecasted for selected drinking water demand projected 177.69 river subbasins (baseline: no planning or MLD by 2031. forecasts). National wastewater effluent quality Not yet due. Ongoing. As the sewerage discharge and reuse standards met in infrastructure works are ongoing, the program ULBs (baseline: no treatment). measurement of effluent standards will be adopted once the sewage treatment plant is functional. Risks Assessment of Current Status None. Not Applicable. Problem Action Taken/Proposed None. Not applicable.

176 3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Expanded and upgraded UWSS >95% of households with metered water Water supply works in progress. It will be infrastructure. connection in program ULBs (from 21% achieved after the completion of the average for Karnataka), including slums. project. Average hours of water supply extended to Water supply works in progress. It will be 24x7 (including poor female-headed achieved after the completion of the households) in program ULBs (baseline: project. average 2 hours daily). Water supplied meets national standards Water supply works in progress. It will be (target: 95% of tests). achieved after the completion of the project. Water treatment capacity increased by Under Tranche 1, 20 MLD WTP in Harihara about 30,000 m3/day in program ULBs. is under trial run and 40 MLD WTP in Davangere has been 85% completed. Water supply works in Tranche 2 are under progress. It will be achieved after the completion of the project. >80% household coverage sewerage 340 km under Tranche 1 and 10.37 km connection in program ULBs, from 25% under Tranche 2 of sewer network laid. average for Karnataka (including vulnerable Sewerage works in progress. and poor female-headed households). Wastewater treatment capacity increased by Under Tranche 1, 20 MLD and 5 MLD STPs 70,000 m3/day, with 30% effluent reused in Davangere are under operation, 18 MLD and/or recycled (baseline: 0%). STP in Harihara is under commissioning and 5 MLD STP in Byadgi is 96% completed. Sanitation program implemented for poor Toilet Output-Based Aid (OBA) Program is and vulnerable households (target: increase ongoing. Till now, 4,732 toilets have been toilet coverage and use in program ULBs constructed. from the state’s average of 85% to >90%). Improved water resource planning, ULB Incentive Fund established. Established. Under implementation for monitoring and service delivery. Project 1 towns. To be implemented in Project 2 towns by the first quarter of 2021. >80% revenue collection efficiency in Not yet due. Ongoing implementation. program ULBs (baseline: 50% state average). ULB IT-based modules for (i) volumetric Not yet due. Ongoing. KUIDFC has tariff setting, water accounting and effluent developed: (i) consumers database, the discharge (all new), and (ii) improved procedure for availing water connections, management information systems and asset water bill generation in both flat and management systems developed. volumetric modes (IT-1); and (ii) ring- fenced accounting of water and wastewater services, enabling the ULBs to assess the income, revenue, and profit/loss (IT-2). Technical issues on volumetric tariffs are currently being fixed in IT-1. IT modules 3 and 4 (water utility management information system and asset management system) will be rolled out by December 2021. State guidelines on public standposts The Government of Karnataka has issued approved. guidelines for establishing a policy on public

177 Improved water resource planning, stand posts in February 2020. monitoring and service delivery. Performance-based water supply contracts Achieved. All the water supply sub-projects mainstreamed (at least 2 contracts). are being implemented using a performance-based construct and operate contract (PBCOC). Campaign for improved community Not yet due. Ongoing. Two NGO understanding of (i) water management, (ii) Consultants are carrying out extensive water-sanitation-health nexus, (iii) campaigns and mobilizing households for volumetric tariffs, and (iv) standpost the construction of toilets under the Toilet metering and phase out conducted (target: OBA Program. female–male facilitator ratio 50:50). Water data sharing system for river basin Not yet due. Ongoing. Advance center for managers and agencies. integrated water resource management (ACIWRM) set up by GoK and IWRM steering committee established under ACIWRM as secretariat. Strengthened operational and KUIDFC adopts business and financial Not yet due. Ongoing. Financial administrative capacity of KUIDFC and ULBs strategy including capital adequacy, asset intermediary and capacity development quality, liquidity, and profitability programs. consultants (FICDC) for the preparation of business and financial strategy is conducting an assessment. Credit and risk management policies, Not yet due. Ongoing. FICDC would operating systems, and procedures prepare the credit and risk management adopted. policies for adoption. Corporate and financial governance and Not yet due. Ongoing. FICDC would management systems developed and develop financial governance and organization restructured. management systems. Procedures to assess and monitor the Not yet due. Ongoing. Social and economic, social, and environmental impact environmental monitoring framework of subprojects developed adopted and monitored regularly. FICDC would develop financial governance and management systems. Staff capacity assessment conducted and Not yet due. Ongoing. Staff are being recommendation implemented. trained under State Training Institutes for various training programs. Six Capacity development programs Not yet due. Ongoing. Capacity developed and delivered to water sector development programs developed and staff (target: >150 officials, of which 33% training is being imparted. women) The project is implemented on time and Not yet due. Ongoing. Project is being within budget. implemented on time and within budget. Effective IWRM coordination mechanism at Not yet due. Ongoing. Advance center for state level operationalized. integrated water resource management (ACIWRM) set up by GoK and IWRM steering committee established under ACIWRM as secretariat. Risks Assessment of Current Status Insufficient demand for recycled treated effluent. The MFF is still ongoing and outputs are yet to be achieved. The associated risks are being addressed. Sewerage tariff set at insufficient levels to recover operation and maintenance costs.

178 ULBs are slower at adopting pre-project reforms as described in selection process. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date In the course of implementation of Complied. 28-Jun-2017 KIUWMIP, the state shall prepare a framework to mainstream private sector participation in service delivery. Starting from contracts such as performance-based management contracts (PBMC) in water service delivery. India shall cause the state to ensure that it Not yet due. 15-Mar-2024 shall maintain the Subproject facilities and that proper technical supervision and adequate routine funds for this purpose are provided. The funds required for the O&M will be allocated annually and released on a timely basis. The state will prepare an O&M management system planned for implementation throughout the Investment Program period. Furthermore, India will cause the state to ensure that all equipment and spare parts financed under the Subproject shall exclusively be used for the maintenance and operation of the Subproject. The state will ensure that the concerned Being complied with. 15-Mar-2024 staff in KUIDFC and the ULBs responsible be trained by the contractors in operation and maintenance of subproject facilities. In this regard the state, KUIDFC and the ULBs will ensure that an O&M plan will be developed for each subproject. The O&M plan will also assess additional human and financial resources required by each ULB/appropriate authority for smooth hand-over of Subproject facilities. In the event of any change in the Road Map, Being complied with. 15-Mar-2024 policy framework, Investment Program, or financing plan, India, the state and ADB will assess the potential impact on KIUWMIP and evaluate any change in scope, amendment, or continuation, as appropriate, of KIUWMIP. The state shall ensure that the policy that Being complied with. 15-Mar-2024 requires water metering, revenue recovery through water tariff and introduction of sewerage tariff be enforced and maintained throughout the Investment Program period.

Refer to Operations Manual section D14.

179 E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Urban Development and Water Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Implementation is on track. Undertakings Compliance On Track Undertakings and covenants are either being complied with or not yet due. Tranche Performance On Track Both tranches were rated On track. Overall MFF Performance On Track In 2020, the project experienced a delay in the civil works due to the COVID-19 outbreak. All works, however, have already resumed with the required workforce and resource materials. The delay is not expected to affect the project closing date.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

180 43464-013 IND : MFF - Himachal Pradesh Clean Energy Transmission Investment Program (Facility Concept)

43464-013 IND : MFF - Himachal Pradesh Clean Energy Transmission Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Jigar Arvindbhai Bhatt and validated by Takeo Konishi, India Resident Mission, SARD 43464013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 30-Sep-2011 29-Sep-2021 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 350 350 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 295.3 million were approved. The Himachal Pradesh Clean Energy Transmission Investment Program will fund electric transmission system upgrades and expansion in the state of Himachal Pradesh, India in order to increase transmission system capacity. Outputs will be new transmission substations and high voltage transmission lines. A Project Description capacity development component will benefit Himachal Pradesh Power Transmission Company Ltd. (HPPTCL), the state's transmission utility, which will assist the state to achieve its power sector reform objectives including the formation and an independent transmission utility. Link to the RRP of the http://www.adb.org/Documents/RRPs/IND/43464/43464-013-ind-rrp.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources MFF-Himachal Pradesh Clean 18-Oct-2011 111.9 0.0 0.94000 For 100% 100% On On Yes Energy Transmission Investment 19-Jan-2012 On Attention Track Track Program - Tranche 1(Closed(1)) 27-Feb-2020 Track Himachal Pradesh Clean Energy 7-May-2013 78.4 0.0 0.94000 For 100% 100% On On Yes Transmission Investment 13-Nov-2014 On Attention Track Track Program - Tranche 2(Active) Track Himachal Pradesh Clean Energy 6-Nov-2018 105.0 0.0 1.00000 On Track 100% 100% On On Yes Transmission Investment 20-Dec-2018 On Track Track Program - Tranche 3(Active) Track

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period

181 295.3 84.4% 9.25 92.5%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) MFF-Himachal 1.6 19.8 24.9 35.2 46.8 70.7 93.4 108.0 111.9 111.9 Pradesh Clean Energy Transmission Investment Program - Tranche 1 (Closed(1)) Himachal Pradesh 11.0 16.5 22.3 36.7 57.2 70.9 78.4 78.4 Clean Energy Transmission Investment Program - Tranche 2 (Closed(1)) Himachal Pradesh 22.7 44.9 44.9 Clean Energy Transmission Investment Program - Tranche 3 (Active) Total 1.6 19.8 35.9 51.7 69.1 107.5 150.6 201.6 235.2 235.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Himachal Pradesh power sector transmits clean energy to end users in Himachal Pradesh and India.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets HPPTCL has sufficient assets and capacity to 2,281 MVA (12,052 MW) of additional 1964.5 MVA of additional transmission support its mandate as the state transmission substation capacity. substation capacity has been achieved out transmission utility company. (baseline: 2,338 MVA existing capacity) of 2847.5 MVA. Work is under Progress for nine substations (including one switching station). New transmission lines enabling 1,487 MW Four new transmission lines enabling 1120 of additional capacity. (baseline: 0 MW) MW of additional capacity has been commissioned. Work for balance eleven transmission line is under progress. Required reports submitted to GOHP and Being complied with. HPERC on time. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets

182 New transmission system assets are Commissioning of five transmission lines Four Transmission line about 118.77 circuit- operational. totaling about 125 km by 2017 kilometer (75.37 km) has been commissioned. Work of about 358.7 circuit- kilometer (11 number-182.2 km) is under progress. Commissioning of 12 substations by 2017 Seven substations (including one Switching station) has been commissioned and work is under progress for nine substations (including one Switching station). Commissioning of one 220/400 kV, 315 One 220/400 kV, 315 MVA transformer at MVA transformer at Gumma by 2017 Gumma has been commissioned. HPPTCL's management capacity enhanced. ERP system installed at HPPTCL offices Complied. HPPTCL staff trained on its use Complied. Financial and accounting reports are Being complied with. prepared on time HPPTCL manages implementation of the Tranche 2 and 3 PFRs completed and Complied. MFF tranches on time and within budget. submitted to ADB as scheduled Timely loan disbursement and reporting Being complied with. Capacity building activities completed Complied. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Loan covenants are being complied with, Being complied with. 29-Sep-2021 some are partly complied with and some covenants are not yet due

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranches have been delivered as scheduled. Undertakings Compliance On Track Compliance for all tranches have been updated. Tranche Performance On Track All of the tranches are on track in performance. Overall MFF Performance On Track Overall MFF performance is on track. Delay observed in the implementation of Tranche 2 and 3 during and post national lockdown owing to corona virus outbreak in the country. The risk of delay is mitigated by shifting spillover works of Tranche 2 to Tranche 3 and allowed closure of Tranche 2 in time. Though the works under Tranche 3 are being ensured to close within loan closing date, an undertaking from the

183 EA has been obtained to complete the spillover works by its own resources.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

184 43467-014 IND : Madhya Pradesh Energy Efficiency Improvement Investment Program (Facility Concept)

43467-014 IND : Madhya Pradesh Energy Efficiency Improvement Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Jyotirmoy Banerjee and validated by Takeo Konishi, India Resident Mission, SARD 43467014 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 7-Jul-2011 28-Feb-2018 28-Feb-2020 8.65 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 400 400 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 295.1 million were approved. Adequate and better quality power supply in rural Madhya Pradesh (MP), where 70% of the population lives, would spur economic growth and development. In order to ensure good quality, 24 hour power supply to rural households, Government of Madhya Pradesh (GoMP) has been undertaking a distribution improvement program (feeder separation program) with an approximate cost of $1100 million. The first phase of this program is already under implementation and the proposed Facility provides financial assistance to the investment program that constitutes the second phase. The investment program will Project Description install separate feeders for households and irrigation water pumps, install high voltage distribution systems (HVDS), provide new power connections, install meters, map the assets of the distribution companies and undertake network analysis to ensure better quality power supply to households and financial sustainability of the distribution companies. Of the total of 50 districts of MP, the investment program covers 32 districts served by three distribution companies: Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (DISCOM-C); Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Limited (DISCOM-E); and Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (DISCOM-W) Link to the RRP of the http://www2.adb.org/Documents/RRPs/IND/43467/43467-014-ind-rrp.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made

185 effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 295.1 73.8% 9.49 109.7%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Madhya Pradesh 19.8 41.3 58.0 74.1 85.7 98.3 124.5 140.2 144.0 146.1 146.1 Energy Efficiency Improvement Investment Program - Tranche 1 (Closed(1)) Madhya Pradesh 29.2 59.5 77.4 88.1 99.5 122.1 135.4 144.6 149.0 149.0 Energy Efficiency Improvement Investment Program - Tranche 2 (Closed(1)) Total 19.8 70.5 117.5 151.6 173.8 197.8 246.6 275.6 288.5 295.1 295.1

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Continuous and higher quality supply of electricity to rural households in Madhya Pradesh

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved operational efficiency of Power supply to all water pumps in 32 DISCOM C: 10 hours/day power supply to electricity distribution in rural areas of project districts available for 8 hours per agricultural pumps in 100% parts of project Madhya Pradesh. day, by 2014. districts of DISCOM-Bhopal. DISCOM E: 24 hours in non-agricultural feeders and 10 hours in agricultural feeders. DISCOM W: 10 hours/day Power supply to agricultural pumps in 100% parts of 8 Project Districts of West DISCOM Indore. 100% metering and volumetric tariff for DISCOM C: 100% metering completed in rural households of 32 project districts by rural households. 2014. DISCOM E: 100% metering completed. DISCOM W: 100% Metering completed in rural households of 8 Project Districts of West DISCOM Indore as per scope of project. Distribution losses in 32 project districts of DISCOM C: 27.59% Madhya Pradesh reduced from 46% in 2010 DISCOM E: 22.52% to 32%, by 2014. DISCOM W: 18.48% Improved business opportunities for 20,000 Achieved.

186 Improved operational efficiency of microenterprises headed by women, by electricity distribution in rural areas of 2015. Madhya Pradesh. Risks Assessment of Current Status Lack of public support for metering and volumetric charges. The DISCOMs have undertaken a public awareness program and Approved tariff revisions may not be adequate for cost recovery. subsidized power to households below the poverty. Annual tariff revisions are approved by MP Electricity Regulatory Commission. Problem Action Taken/Proposed Transportation difficulties of materials to inaccessible areas Regular reviews by Government of Madhya Pradesh (GOMP) along resulting to delayed deliveries of materials coupled with non with the EAs. Projects were physically completed on 28 February availability of labour for installation jobs. Contracts being executed 2020. in remotest areas having access difficulties primarily hilly terrain.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Separated power supply to agricultural 38,400 km of new 11 kV lines by 2014 DISCOM C: 15,231 km of new 11 kV lines. pumps and households and installed high- DISCOM E: 14,522 Km. voltage distribution system (HVDS) DISCOM W: 8,602 km of new 11 kV lines. 37,200 new distribution transformers, by DISCOM C: 15,433 new distribution 2014 transformers. DISCOM E: 13,844 DISCOM W: 10,609 new distribution transformers. 5,800 km of low-voltage lines converted to DISCOM C: Not applicable. 11 kV, by 2014 DISCOM E: Not applicable. DISCOM W: 326 km of LV lines converted to 11 kV. 27,800 km of low-voltage lines upgraded to DISCOM C: 5,969 km of low-voltage lines ABC, by 2014 upgraded to ABC. DISCOM E: 9111 Km. DISCOM W: 5,744 km LV lines upgraded to ABC. 2. Improved upstream 33kV systems 1,100 km of new 33 kV lines, by 2014 DISCOM C: Not applicable. DISCOM E: 763 Km. DISCOM W: 147 km of 33 kV lines. 46 new or upgraded 33kV/11kV substations, DISCOM C: Not applicable. by 2014 DISCOM E: Not applicable. DISCOM W: 30 New S/S and 26 upgradation of 33/11 kV substations. 100 new 33 kV/11 kV transformers, by 2014 DISCOM C: Not applicable. DISCOM E: Not applicable. DISCOM W: 101 nos. power transformer augmentation capacity. 3. Installed meters and new household 410,000 new meters installed, by 2014 DISCOM C: 158219 new meters installed. connections DISCOM E: 197978 DISCOM W: 368,089 household connections with new meters operational. 1,297,000 new household connections, by DISCOM C: 105547 new household 2014 connections. DISCOM E: 117819

187 3. Installed meters and new household DISCOM W: 368,089 household connections connections with new meters operational. GIS asset maps and energy audits in project DISCOM C: Completed. areas, by 2014 DISCOM E: Being implemented. DISCOM W: 100% Asset mapping achieved. 10% increase in microenterprises headed by Achieved. women, by 2014 from baseline (2011) 4. Access to business development services 20,000 women microentrepreneurs trained Achieved. improved for microenterprises headed by for business improvements by 2014 women 5. Built capacity of women's self help 500 women’s self help groups trained to Achieved. groups provide energy-related microenterprise development services across 32 districts, by 2015 500 women’s self help groups trained to Achieved. build gender sensitive user awareness and energy conservation across 32 districts, by 2015 Risks Assessment of Current Status Lack of or delay in providing counterpart funding. Counterpart funds timely provided. Change in favorable market conditions for women headed Targets achieved. microenterprises. Problem Action Taken/Proposed Transportation difficulties of materials to inaccessible areas Regular reviews by Government of Madhya Pradesh (GOMP) along resulting to delayed deliveries of materials coupled with non with the EAs. Projects were physically completed on 28 February availability of labour for installation jobs. Contracts being executed 2020. in remotest areas having access difficulties primarily hilly terrain.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date India and Government of Madhya Pradesh Complied with. 28-Oct-2020 (GOMP) undertakes that they will remain committed to the implementation of the Electricity Act of 2003, Electricity Policy 2005, Rural Electrification Policy 2006, ensure financial independence of the unbundled distribution companies and will monitor and enforce implementation of the key legislation and policies in the electricity sector.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Both tranches (Tranche 1 and 2) have been processed within

188 1 year of the MFF approval date. Both Tranche 1 and Tranche 2 have been financially closed. Undertakings Compliance On Track Undertakings have been complied with. Tranche Performance On Track Overall rating of both the Tranches is "On Track". Both Tranche 1 and Tranche 2 have been financially closed. Overall MFF Performance On Track Overall rating of both the Tranches is "On Track". No impact of COVID-19 on implementation activities as both the tranches were physically completed on 28 February 2020, and are now financially closed.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Madhya Pradesh Energy Efficiency Improvement Investment Program - Tranche 1 : Project Completion Report prepared by INRM, SARD Madhya Pradesh Energy Efficiency Improvement Investment Program - Tranche 2 : Project Completion Report prepared by INRM, SARD

189 45224-002 IND : Rajasthan Renewable Energy Transmission Investment Program (Facility Concept)

45224-002 IND : Rajasthan Renewable Energy Transmission Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Vallabha Karbar and validated by Takeo Konishi, India Resident Mission, SARD 45224002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 26-Sep-2013 31-Dec-2021 25-Sep-2023 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 498 300 198 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,1 tranche/s USD 121.8 million were approved. Rajasthan completed the installation of about 1767 MW of wind and 45 MW of solar generation at the end of 2011 using surplus transmission capacity in the grid. The state's investment plan for renewable energy targets installation of about 8,000 MW of solar and wind projects by 2018. These include private solar and wind power Project Description projects to be set up primarily in the renewable energy rich resource areas of Western Rajasthan (in Jodhpur, Bikaner, Barmer and Jaisalmer) including in the solar park being developed in Bhadla by the Rajasthan Renewable Energy Corporation. The Program would support transmission facilities for evacuation of renewable energy to the state and national grid. Link to the RRP of http://www.adb.org/projects/documents/rajasthan-renewable-energy-transmission-investment-program-facility- the MFF concept-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 121.8 24.5% 7.27 72.7%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2014 2015 2016 2017 2018 2019 Total (with loan status) Rajasthan 0.8 10.0 68.0 111.5 121.2 123.7 123.7 Renewable Energy Transmission Investment Program - Tranche 1 (Closed(1))

190 Approved Tranches 2014 2015 2016 2017 2018 2019 Total (with loan status)

Total 0.8 10.0 68.0 111.5 121.2 123.7 123.7

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Accelerated development of renewable energy sources in Rajasthan and India

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Cleaner electricity mix with more efficient Transmission network capacity expands to Transmission Line infrastructure and and effective generation and transmission transmit up to 8,000 MW of renewable Substations for transmitting power up to system achieved power generated in Rajasthan by 2018 3700 MW had been completed under (2011 baseline: about 1,800 MW) Tranche 1. Tranche 2 was lapsed on 2 June 2018 as it remained unsigned. Subsequently, Department of Economic Affairs, Ministry of Finance, Government of India requested ADB through it’s letter of 30 October 2019 to process the Tranche 3 for funding the projects proposed by Rajasthan Rajya Vidyut Prasaran Nigam Limited and Government of Rajasthan. This would be able the utilize balance MFF funds. Tranche 3 is under processing. Institutional capacity in Institutional Capacity Development under RRVPNL to operate high-penetration solar TA 8486-IND had been completed. and wind power generation in Rajasthan is developed by 2018 (2012 baseline: limited)b Private sector-led renewable energy Ongoing. Approximately 4337.6 MW of projects are developed in solar and wind wind and 4996.9 MW of solar installed in parks in Rajasthan (2011 Rajasthan as of 2020. Risks Assessment of Current Status Expected growth in generation capacity does not match the Generation capacity requirement increased under national and increase in transmission capacity. state policies, including renewable procurement obligations. Support ongoing to ensure matching of generation and transmission investments. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Bulk power transmission system in RRVPNL constructs 3 400/220/132 kV GSS Construction of two 400kV substations at Rajasthan expanded at Bhadla, Ramgarh, and Jaisalmer with Bhadla and Ramgarh completed under associated automation and control Tranche 1. infrastructure. Balance scope of project would be 191 1. Bulk power transmission system in undertaken under Tranche 3. Rajasthan expanded RRVPNL constructs 9 220/132 kV GSSs at Construction of Bap and Kanasar 220/132 Bap, Kanasar, Chhatrail, Pokaran, Kolayat, kV GSS under implementation from Ramdev Nagar, Badisid, Aau, and Bajju by RRVPNL own funding. 2018 Balance scope of project would be undertaken under Tranche 3. RRVPNL completes augmentation of 4 400 Augmentation of two 400kV substations at kV GSS at Akal, Jodhpur, Barmer, Bikaner. Akal and Bikaner completed under Tranche 1. Balance scope of project would be undertaken under Tranche 3. RRVPNL completes upgrades of PS 2,3,4 to Subproject are under implementation from 132 kV GSS by 2018 RRVPNL own funding. RRVPNL constructs about 1,440 km of Construction of two 400kV Transmission 400kV, 355 km of 220 kV, 57 km of 132 kV Lines- Ramgarh-Akal (99.151 km) and of transmission lines by 2018 Bhadla-LILO point of Jodhpur (202.3 km) completed under Tranche 1. Balance scope of project would be undertaken under Tranche 3. 2. Institutional capacity for renewable Timely preparation, procurement, Had been completed under TA 8486-IND: energy parks and transmission system supervision, implementation, monitoring Rajasthan Renewable Energy Capacity developed. and reporting of the program are achieved Development and Implementation Support. by 2015, including GIS-based asset accounting and renewable energy integration studies Community development policy for Had been completed under TA 8486-IND: renewable energy park by 2014 (including Rajasthan Renewable Energy Capacity gender indicators and targets) Development and Implementation Support. Technical studies for phrase 2 of Bhadla Had been completed under TA 8486-IND: solar park are done by 2015. Rajasthan Renewable Energy Capacity Development and Implementation Support. Skills training interventions for about 20 Had been completed under TA 8486-IND: women-led, self-help groups and Rajasthan Renewable Energy Capacity community-based organizations are carried Development and Implementation Support. out by 2015, including training in animal husbandry and livelihoods About 400 women and girls are trained in Had been completed under TA 8486-IND: health, nutrition, and hygiene by 2015, with Rajasthan Renewable Energy Capacity RREC Development and Implementation Support. Pilot community models for renewable Had been completed under TA 8486-IND: energy-based water supply benefit about Rajasthan Renewable Energy Capacity 200 families by 2015, with RREC Development and Implementation Support. Training is provided for about 15 CSR Had been completed under TA 8486-IND: champions within RREC, RSPL, RRVPNL, and Rajasthan Renewable Energy Capacity other stakeholder groups in GOR (including Development and Implementation Support. atleast 50% women) by 2015 Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

192 Key Undertakings Status Date By December 2014, the State will take The state of Rajasthan released a policy in 31-Dec-2014 initiatives to facilitate setting up solar and 2014 for large scale solar parks through the wind power parks including the public sector, Joint Venture and private development of an environment and social sector route. This is now being framework and also in this regard implemented. RREC has finalized the undertake relevant studies to examine there framework for parks under the quired policies and relevant policy TA.http://rreclmis.energy.rajasthan.gov.in/ environment conducive to solar and wind solar/SolarPolicy08_10_2014.pdf power equipment manufacturing By no later than 30 September 2014, the Financial restructuring plan adopted in 2015 31-Dec-2017 State will finalize the financial restructuring for allowing RVPN to claim a graduated plan of RRVPNL to ensure its long-term return on equity has resulted in a financial sustainability and progressively turnaround of RVPN financial performance achieve a minimum debt service coverage and improvement in DSCR and debt equity ratio of 1.2 and debt equity ratio of 4:1 by ratios. More information is indicated in the 2017. annexure of the PFR that was prepared in 2016for Tranche 2 processing. By no later than 30 September 2014, the Renewable energy integration studies 31-Dec-2015 State will finalize the financial restructuring including capacity building of RVPN staff plan of RRVPNL to ensure its long-term commenced in 2014 and concluded in 2017 financial sustainability and progressively under the TA. achieve a minimum debt service coverage ratio of 1.2 and debt equity ratio of 4:1 by 2017.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 20-Mar-2020 Extension of MFF Availability period from 31 December 2021 to 25 September 2023.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 2 was processed in 2016, 2 years after projected date in RRP. Tranche 2 was lapsed on 2 June 2018 as it remained unsigned. Subsequently, Department of Economic Affairs, Ministry of Finance, Government of India requested ADB through it's letter of 30 October 2019 to process the Tranche 3 for funding the projects proposed by Rajasthan Rajya Vidyut Prasaran Nigam Limited and Government of Rajasthan. This would be able the utilize balance MFF funds. Tranche 3 is under processing. Undertakings Compliance On Track In Tranche 1, out of the 24 Project Specific Covenants, 23 covenants have been complied with and one covenant was not complied with. Tranche Performance On Track Tranche 1 is on track. Tranche 2 was not signed before 2 June 2018, the end of the validity period. A memo on the lapse of the validity of loan approval dated 13 September 2018 was submitted to President for information. Overall MFF Performance On Track Overall MFF performance is generally on track. Tranche 3 processing was delayed due to COVID-19, Tranche 3 signing

193 is scheduled in September 2021.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

194 46268-001 IND : Clean Energy Finance Investment Program

46268-001 IND : Clean Energy Finance Investment Program (as of 31 - Dec - 2020)

This report was prepared by Jigar Arvindbhai Bhatt and validated by Takeo Konishi, India Resident Mission, SARD 46268001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 30-Oct-2014 15-Oct-2024 9.96 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 533 European Investment Bank; Japan International Cooperation Agency Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,1 tranche/s USD 200.0 million were approved. ADB and the Government of India are working together to provide long-term financing options for renewable energy projects, including wind, biomass, hydropower, and solar. The Clean Energy Finance Investment Program is supporting lending for renewable energy projects by the Indian Renewable Energy Project Description Development Agency. Private capital is being leveraged in partnership with the Indian Renewable Energy Development Agency in order to increase lending for at least 10 renewable energy projects, and to provide training for government officials to increase their knowledge of project finance. Link to the RRP of the http://www.adb.org/projects/documents/clean-energy-finance-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 200.0 40% 6.17 61.9%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2016 2017 2018 Total (with loan status) Clean Energy 50.0 110.0 200.0 200.0 Finance Investment Program - Tranche 1 (Closed(1)) Total 50.0 110.0 200.0 200.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

195 1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased renewable energy infrastructure.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Facilitated investment in renewable energy. By 2024, $200 million of additional finance 9 subprojects with a total of $200 million and about $300 million of private sector has been financed under Tranche 1, with equity and other funds leveraged by IREDA total project cost of approx. $556 million. to achieve $1 billion of investments in renewable energy (2014 baseline: 0) By 2024, at least 990 megawatts of Total of 481 megawatts of additional additional renewable energy capacity added renewable energy capacity added under through IREDA’s provision of long-term Tranche 1. financing, generating an estimated 3,900 gigawatt-hours of electricity annually (2014 baseline: 0) By 2024, generation of approximately 3.2 1.46 million additional tons of carbon million additional tons of carbon dioxide dioxide avoided annually under Tranche 1. avoided annually (2014 baseline: 0) Risks Assessment of Current Status Increase in borrowing costs could hinder demand for renewable IREDA has requested to the Government of India for reduction of energy project funding. sovereign guarantee fee to maintain subproject financing cost. Problem Action Taken/Proposed None. Not Applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Enhanced availability of long-term At least 30 private sector subprojects 9 subprojects are financed by IREDA under financing to support renewable energy approved and funded by IREDA under this Tranche 1 of this MFF. projects multitranche financing facility by 2024 (2014 baseline: 0) Improved institutional capacity of IREDA An integrated environmental and social IREDA's Environmental and Social Safeguard management system approved and Policy was approved by Chairman and operational Managing Director on May 2014. The ESMS has been followed, and verified by ADB safeguard team. Subproject safeguard review has been enhanced by dedicated IREDA safeguard staff, who has worked with ADB consultants to conduct the subproject safeguard reviews. ADB’s environment and social safeguard Taking on ADB's ESMS for IREDA as the system and other ADB facility agreements basis, a comprehensive ESMS of IREDA has independently and successfully been developed, which is approved and implemented by IREDA web hosted on IREDA's website. IREDA has followed the ADB legal agreements, other than the maintaining an NPL level below 3.9%.

196 Improved institutional capacity of IREDA ADB facility approval, disbursement, and As of FYE 31 March 2019, gross NPA level liquidation successfully carried out by stands at 6.3%. IREDA on a timely basis; IREDA maintains nonperforming loans at below 3.9% of disbursed subprojects (2013 baseline: gross nonperforming loan 3.9%) Comprehensive capacity-building plan for On the request of IREDA, support of financing and credit risk management national Financial Management consultant developed by IREDA was provided under TA 8937 to strengthen financing and credit risk management operations. Risks Assessment of Current Status IREDA’s portfolio quality deteriorates. IREDA is exposed to a narrow renewable energy sector given its Adverse economic and/or policy conditions affect the forecasted mandate. With the rapidly expanding renewable energy demand for pipeline projects. development and finance in India during the current Administration, the credit expansion has been equally rapid. Tightened credit appraisal norms and prudent internal caps on maximum exposures to single borrower would help IREDA in keeping the concentration risk contained. Sovereign support to continue given the Government’s strong focus on the renewable energy sector. Problem Action Taken/Proposed None. Not Applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date IREDA complies, at all times, with the Being complied with 15-Oct-2024 prudential norms as made applicable to it by the Guarantor, including capital adequacy, income recognition, classification, and provisioning of nonperforming assets. IREDA shall develop and maintain the Being complied with. 15-Oct-2024 capacity of the PMU staff to perform the responsibilities of the PMU, including developing and maintaining specialist capacity and expertise to conduct and implement environmental and social safeguards due diligence by (i) developing and training existing staff with such capacity and expertise, and/or (ii) engaging staff or consultants with such capacity or expertise. IREDA shall at all times continue to Being complied with. 15-Oct-2024 adequately staff the ESSU. Based on a midterm review of Project 1, this requirement may become a condition precedent for ADB's approval of PFR 2 under the Facility.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to

197 the MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk Estimated approval date of Tranche 2 in RRP is 30 Oct 2018. Processing of tranche 2 has been initiated. IREDA has submitted fresh request to the Government of India (GOI) through Ministry of New and Renewable Energy (MNRE) for the reduction of guarantee fee for IREDA's entire renewable energy (RE) portfolio, including second tranche of this MFF. Matter is at deliberation at GOI level. Undertakings Compliance On Track Undertakings are being complied with. Tranche Performance On Track Tranche 1 is fully utilized and completed 7 months before the original closing date. Tranche 2 will be processed upon resolution of Guarantee Fee issue. Overall MFF Performance Potential Problem No impact of COVID-19 as the Tranche 1 was closed on 25 September 2018, and processing of Tranche 2 is delayed, as IREDA has requested to the Government of India (GOI) for reduction of sovereign guarantee fee to maintain subproject financing cost. Matter is at deliberation at GOI level.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Clean Energy Finance Investment Program - Tranche 1 : Project Completion Report prepared by INRM, SARD

198 47083-001 IND : Accelerating Infrastructure Investment Facility in India

47083-001 IND : Accelerating Infrastructure Investment Facility in India (as of 31 - Dec - 2020)

This report was prepared by Takuya Hoshino and validated by Sabyasachi Mitra, Public Management, Financial Sector, & Trade Division, SARD 47083001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 27-Sep-2013 31-Mar-2019 26-Sep-2023 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 700 700 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 700.0 million were approved. Accelerating Infrastructure Investment Facility in India (AIIFI) is a $700 million multitranche financing facility to India Infrastructure Financing Company Limited (IIFCL). The project aims to facilitate private sector investment in infrastructure public-private partnerships (PPP). This is necessary as infrastructure supports economic growth and poverty reduction. The impact of the facility would be increased availability of Project Description infrastructure. The financial intermediary loan to IIFCL will support PPP infrastructure projects in road, power including clean and renewable energy, airport, and water supply and sanitation through (i) direct lending and (ii) take- out financing. Link to the RRP of the http://www.adb.org/projects/documents/accelerating-infrastructure-investment-facility-india-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB ADB's own CA Approved tranches (with loan status) Effective Date administered Overall FM Disb % Safeg. OutputValidated sources % Closing Date sources Accelerating Infrastructure Investment 23-Oct-2018 300.0 0.0 1.00000 On % 100% On On Yes Facility in India - Tranche 3(Active) 19-Dec-2018 On Track Track Track Track

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 700.0 100% 7.26 72.6%

3. Cumulative Disbursements (in $ million)

199 Approved Tranches 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Accelerating 171.5 364.9 397.7 400.0 400.0 Infrastructure Investment Facility in India - Tranche 1 (Closed(1)) Accelerating 57.4 115.4 197.3 197.3 Infrastructure Investment Facility in India - Tranche 3 (Active) Total 171.5 364.9 397.7 400.0 57.4 115.4 197.3 597.3

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased availability of infrastructure

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Facilitated private sector investment in Catalyzing over $3.5 billion of private sector IIFCL has provided financial assistance of infrastructure PPPs investment for financially closing $597 million to subprojects with total subprojects by FY2019 project cost of approximately $6.7 billion. Risks Assessment of Current Status Borrowing costs increase significantly making financial closure Borrowing costs did not materially change compared with revenue difficult. growth. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Enhanced availability of long-term By FY2019, 30 PPP subprojects financed Under Tranches 1 and 3, 32 PPP subprojects finance for PPP projects under the facility financed under the Facility: (i) 25 subprojects through direct financing (i) 25 subprojects through direct financing/ (greenfield subprojects) greenfield. (ii) 5 subprojects through take-out finance (ii) 7 subprojects through take-out finance. (iii) maximum amount of $300 million of (iii) takeout finance amount to $204.56 bank capital released for fresh greenfield million. subprojects through take-out finance 2. Improved project management Timely disbursement of tranches Completed for Tranche 1 and Tranche 3 disbursements are on track. A free-limit of $30 million for direct Free limit was used for 4 subprojects. financing introduced by April 2014 However, complete documents were provided and reviewed by ADB post- disbursement. At least six PMU staff per year trained for Complied with. risk assessment and credit appraisal

200 2. Improved project management beginning 2014 Quarterly risk management reporting to Achieved. risk management committee of IIFCL by July 2014 Transition to an integrated management Management information system is information system by July 2014 adequately integrated according to IIFCL's semi-annual progress report dated 30 September 2020. ESMU of IIFCL fully staffed by December Achieved. 2014 Capacity upgraded periodically through Complied with. training beginning April 2014 Risks Assessment of Current Status IIFCL’s portfolio quality deteriorates. IIFCL performs its own risk assessment for each project and given Key staff in the ESMU leave IIFCL. its infrastructure specialization has performed better than peers. Additionally, IIFCL typically lends in consortium and can leverage the risk appraisal of the lead bank in the consortium. Finally, ADB will provide support in conjunction with the third tranche to review and strengthen IIFCL’s credit risk rating models and management framework. In-house ESMU staff are comprised of 3 specialists: the ESMU head (environmental), a social safeguards specialist and an environmental safeguards specialist (assistant general manager) and each one is capable of preparing the required reports if a staff leaves. They are further supported by 2 national consultants, funded by the technical assistance. All of the subprojects’ safeguards documents were submitted on time and reviewed by ADB staff. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date There is no undertaking which affects the Complied 30-Sep-2020 road map and policy framework (creation of enabling environment).

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Public Management, Financial Sector, & Trade Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Required reports were submitted on time and DMF indicators are on track. However, conditional approval on safeguards documents were secured for some of the subprojects and annual safeguard monitoring report submission was delayed. Due to COVID19 travel restrictions,

201 site visits were difficult. Undertakings Compliance On Track Loan covenants are complied with. Tranche Performance On Track Tranche 3 is on track. Overall MFF Performance On Track Tranche 1 was successfully completed and tranche 3 is on track. Due to COVID19, site visits for safeguards requirements are difficult. Subproject due diligence was performed by the IIFCL ESMU team, to be reviewed by ADB safeguard specialists.

G. Completion Reports

1. MFF Completion Report

Accelerating Infrastructure Investment Facility in India : MFF Completion Report prepared by Public Management, Financial Sector, & Trade Division, SARD

2. Tranche Completion Reports

Accelerating Infrastructure Investment Facility in India - Tranche 1 : Project Completion Report prepared by SAPF, SARD Accelerating Infrastructure Investment Facility in India - Tranche 3 : Project Completion Report prepared by SAPF, SARD

202 47101-001 IND : Assam Power Sector Investment Program

47101-001 IND : Assam Power Sector Investment Program (as of 31 - Dec - 2020)

This report was prepared by Takayuki Sugimoto and validated by Priyantha Cabral Wijayatunga, Energy Division, SARD 47101001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 3-Jul-2014 30-Jun-2024 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 300 300 0 Total ($ Million) Cofinancing Sources Non-administered a 2 Japan Fund for Poverty Reduction Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 295.1 million were approved. ADB and the Government of India are working together to help India's northeastern Assam state continue its drive to eliminate power sector inefficiencies that are hurting its consumers, its world-famous tea industry, and its environment. The Assam Power Sector Investment Program is upgrading power generation and distribution systems, including the construction of a 120-megawatt hydropower plant. It is also financing new energy efficient power generation equipment at existing plants; new distribution lines and substations; and financial management training and other support for staff of state power companies, Assam Power Generation Corporation and Assam Power Distribution Company. The project is bolstering Project Description the finances of the state power companies by helping them decrease their purchases of expensive electricity from independent power producers. In addition, the program is supporting the construction of the Lower Kopili run-of-the-river hydropower plant in central Assam that will help the state avoid over 530,000 tons per annum of carbon dioxide emissions that would otherwise be produced by fossil fuel- driven generation. By cutting power outages in the state, the program is benefiting over 2.7 million consumers. It is also promoting economic growth and creating employment opportunities by helping to supply reliable power to the state. This is helping Assam attract investment and more fully tap its economic potential while reducing poverty. Link to the RRP of the http://www.adb.org/projects/documents/assam-power-sector-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

203 2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 295.1 98.4% 6.50 65%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2015 2016 2017 2018 2019 2020 Total (with loan status) Assam Power Sector 0.1 3.7 31.6 36.4 39.1 39.1 Investment Program - Tranche 1 (Closed(1)) Assam Power Sector 2.4 11.5 19.3 25.0 25.0 Investment Program - Tranche 2 (Closed(1)) Total 0.1 3.7 34.0 47.8 58.5 25.0 64.1

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with increased availability of electricity in Assam.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets increased capacity and efficiency of energy By 2024: Line Completed. Outcome will be generation and distribution systems in Energy generation increased by 962 measured in PCR. Assam. GWh/year Distribution losses reduced to 15% (Baseline Substation completed. Outcomes will be 2012: 25%) measured in PCR. Risks Assessment of Current Status A long-term gas supply is not available for the new gas power The power plant started its commercial operation in April 2018. plant. Given that the complex is existing and active power plant, Assam Power Generation Company Limited has long-term contractual agreement for supply of natural gas to Lakwa Thermal Power Station. Therefore, gas will be available for the new generating units. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Generation system upgraded and expanded By 2018: Lakwa 4x15 MW gas power Lakwa 70MW power plant was generation units replaced with new gas commissioned in April 2018. engines with (7x10) MW of total capacity By 2024: Lower Kopili Hydro Project 120 Lower Kopili Hydropower Station is a

204 Generation system upgraded and expanded MW (peaking run-of-river) constructed project envisaged under Tranche 3, which is being processed. Output is expected to be achieved in 2024. Distribution system upgraded and By 2022: About 30 33/11 kV substations Line completed. expanded upgraded or built About 100 km of 11 kV lines installed Substation completed. Institutional capacity of APGC & APDC By 2018: ERP system fully operating Contract awarded. ERP work is ongoing and strengthened since T1 loan is closed, the remaining work will be funded by T3. By 2017: About 30 staff trained on Training activities done for 30 staff. procurement, project implementation, demand management, safeguards, and monitoring and evaluation By 2017: about 70 staff trained on financial Training activities done for 70 staff. and human resource management Project management system in place. Investment program implemented on time Completed. within allocated budget Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. None.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date There are no undertakings which affect the Complied. All policy related compliance 20-Sep-2019 road map and policy framework (creation achieved enabling the timely completion of and enabling environment) the projects.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Energy Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track All physical works under tranche 1 & 2 were completed. Undertakings Compliance On Track All physical works under tranche 1 & 2 were completed. Tranche Performance On Track All physical works under tranche 1 & 2 were completed. Overall MFF Performance On Track Tranches 1 and 2 were completed on Sep 2019. Tranche 3 was approved on Dec 2020; COVID 19 did not have much effect in processing of the loan as it was approved on schedule.

G. Completion Reports

1. MFF Completion Report

Assam Power Sector Investment Program : MFF Completion Report prepared by Energy Division, SARD

205 2. Tranche Completion Reports

Assam Power Sector Investment Program - Tranche 1 : Project Completion Report prepared by INRM, SARD Assam Power Sector Investment Program - Tranche 2 : Project Completion Report prepared by INRM, SARD Assam Power Sector Investment Program - Tranche 3 : Project Completion Report prepared by SAEN, SARD

206 47341-001 IND : South Asia Subregional Economic Cooperation Road Connectivity Investment Program

47341-001 IND : South Asia Subregional Economic Cooperation Road Connectivity Investment Program (as of 31 - Dec - 2020)

This report was prepared by Mihir Sorti and validated by Takeo Konishi, India Resident Mission, SARD 47341001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 28-Mar-2014 30-Jun-2022 8.26 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,2 tranche/s USD 429.6 million were approved. The SASEC Road Connectivity Investment Program (SRCIP) will improve road connectivity and efficiency of the international trade corridor, by expanding about 500km of roads in the North Bengal and Northeastern Region (NB-NER) of India. The project area under SRCIP is a key strategic thoroughfare integrating South and South East Asia, bordering Bangladesh, Bhutan, Myanmar and Nepal. It will enable Project Description efficient and safe transport within India and regionally with other South Asia Subregional Economic Cooperation (SASEC) member countries. Ultimately, SRCIP will pave the way from India and other South Asian countries to Myanmar, and further afield to other member countries of the Association of South East Asian Nations (ASEAN). Link to the RRP of the http://www.adb.org/projects/documents/sasec-road-connectivity-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 207 429.6 85.9% 6.76 81.8%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2015 2016 2017 2018 2019 2020 Total (with loan status) South Asia 6.3 62.7 113.3 139.8 169.0 186.0 186.0 Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 1 (Active) South Asia 20.9 42.8 42.8 Subregional Economic Cooperation Road Connectivity Investment Program-Tranche 2 (Active) Total 6.3 62.7 113.3 139.8 189.9 228.8 228.8

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased domestic and regional trade through North Bengal and Northeastern Region (NB-NER) of India

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved road connectivity and efficiency Average daily vehicle-km in the first full Project implementation ongoing. To be of the NB-NER international trade corridor year of operations is 1,936,000 measured after program completion. Average travel time along project major Project implementation ongoing. To be trade roads reduced by 40% (2013 baseline: measured after program completion. 1.7 hours along Asian Highway 2, 3.5 hours along Asian Highway 48, 3.0 hours along Imphal-Moreh Fatal accident rate along the project roads Project implementation ongoing. To be reduced by 30% of the level in 2012 measured after program completion. Risks Assessment of Current Status None. Not Applicable. Problem Action Taken/Proposed None. Not Applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved roads for regional connectivity. By 2021: Civil works ongoing (52% work done). 500 km of roads upgraded and maintained using performance-based contracts

208 Improved roads for regional connectivity. Civil works contractors comply with core Civil works ongoing with 100% compliance labor standards of core labor standards. Developed capacity and supported project Two workshops covering project First workshop covering project implementation for MPWD. implementation and financial management implementation conducted in 2018. for 10 MPWD staff completed. Awareness-raising seminars delivered for Seminars are being conducted on a regular contractors and construction workers on basis. health and social impacts (including HIV/AIDS). Risks Assessment of Current Status None. Not Applicable. Problem Action Taken/Proposed The progress in state road component in Manipur has been High-level meetings involving the Department of Economic Affairs affected due to (i) delay in release of funds by the State to project (Government of India), the Government of Manipur, and ADB are implementation units; (ii) delay in completion of and resettlement being conducted to address the constraints. activities; (iii) logistics and technical challenges on account of restricted access to site locations, hilly terrain and limited working season. as this is a green field alignment.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date All key undertakings are being complied Being complied with. 30-Jun-2022 with.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk The newest tranche is processed more than two years after the year projected in RRP. Processing of T3 stalled as NHIDCL did not want to follow ADB's Procurement Guidelines. Undertakings Compliance On Track All undertakings are being compiled with. Tranche Performance On Track Approval of tranches were delayed but were able to meet the MFF deadlines Overall MFF Performance On Track Implementation of the MFF is generally complied with. Works under the Manipur State Road component were halted due to lockdown in the project area due to Covid-19 between March to July 2020 and resumed progressively after August 2020.

G. Completion Reports

1. MFF Completion Report not yet due

209 2. Tranche Completion Reports not yet due

210 48226-002 IND : Second Rural Connectivity Investment Program

48226-002 IND : Second Rural Connectivity Investment Program (as of 31 - Dec - 2020)

This report was prepared by Shiva Dodla and validated by Takeo Konishi, India Resident Mission, SARD 48226002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 29-Nov-2017 30-Jun-2024 6.59 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 313.5 million were approved. The investment program will improve rural connectivity in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal (the investment program states), facilitating safer and more efficient access to livelihood and socioeconomic opportunities for the rural communities. It will construct all- Project Description weather rural roads for the unconnected habitations and upgrade rural roads linking to the investment program states' district centers for an aggregate length of 12,000 kilometers (km). For the investment in physical infrastructure to be effective and sustainable, the investment program will strengthen the institutional capacity of the implementing agencies on road safety and road maintenance. Link to the RRP of the https://www.adb.org/projects/documents/ind-48226-002-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 313.5 62.7% 3.09 46.9%

211 3. Cumulative Disbursements (in $ million)

Approved Tranches 2018 2019 2020 Total (with loan status) Second Rural 30.7 115.8 171.4 171.4 Connectivity Investment Program - Tranche 1 (Active) Second Rural 45.0 72.9 72.9 Connectivity Investment Program - Tranche 2 (Active) Total 30.7 160.8 244.2 244.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Mobility and accessibility in India improved.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Rural connectivity in the investment Average travel time on PMGSY-I roads To be measured after program completion. program states improved. reduced by 30% Average travel time on PMGSY-II roads Design speed of 40 km per hour being reduced by 20% exceeded by 20%. Risks Assessment of Current Status Extreme weather conditions derail program implementation. No issue. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Rural roads in the investment program At least 12,000 km of rural roads 98% of civil works contracts awarded under states improved. constructed or upgraded Tranches 1 and 2; works ongoing. At least 2,200 habitations connected by Not yet due. rural roads under PMGSY-I At least 15% of total kilometers in each Ongoing: 70-80% of roads in Assam applied investment program state used innovative the use of cold mix; also being complied in approach methods Madhya Pradesh. Feasibility study for rural road innovation Consultant under recruitment. conducted 100% of communities (at least 20% of Ongoing. participants are women) consulted in the design process Institutional capacity of PMGSY At least 4,000 PMGSY engineers have In progress; 9,395 engineers trained, with implementing agencies strengthened. increased knowledge and skills on rural 151 women. road development, road maintenance, and

212 road safety through RCTRC operations. At least 15% of PMGSY engineers whose knowledge and skills have increased are women. Operation and maintenance of PMGSY State-specific road maintenance program Complied. roads sustained. prepared. Road maintenance program executed by Not yet due; road maintenance program to RRNMU for at least 10% of PMGSY roads for be executed only after completion of 5-year which the 5-year maintenance contract has maintenance contract. been completed. 55% of PMGSY-I roads and 60% of PMGSY-II Road safety audits ongoing. roads under the investment program have road safety audits conducted in the first year; increased by 5% in the consecutive years. 100% of the recommendations from road Road safety action plans being carried out. safety audits incorporated into the road maintenance program by RRNMUs. At least 30,000 students have increased Awareness sessions ongoing; data on understanding of road safety. At least 40% participation being compiled by the project students participating in the road safety implementation consultant. awareness sessions are girls. State-specific disaster risks and vulnerability Complied. reports with gender-segregated data prepared. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Schedule 6.1. India will ensure, or cause Being implemented 30-Jun-2024 each project executing agency toensure, that each project under the investment program is implemented inaccordance with the detailed arrangements set forth in the FAM. Anysubsequent change to the FAM shall become effective only after the approvalof such change by India and ADB. In the event of any discrepancy between theFAM and any project-specific loan agreement, the provisions of the loanagreement shall prevail.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

213 F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Two tranches under implementation as planned. Undertakings Compliance On Track Undertakings and covenants are either being complied with or not yet due. Tranche Performance On Track Both tranches were rated On track. Overall MFF Performance On Track Project was carried out despite of covid restrictions.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

214 48434-002 IND : Visakhapatnam–Chennai Industrial Corridor Development Program

48434-002 IND : Visakhapatnam–Chennai Industrial Corridor Development Program (as of 31 - Dec - 2020)

This report was prepared by Akira Matsunaga and validated by Norio Saito, Urban Development and Water Division, SARD 48434002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 20-Sep-2016 31-Dec-2024 8.28 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 505 500 5 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 1 tranche/s are expected under the MFF. Of which,1 tranche/s USD 245.0 million were approved. The Visakhapatnam-Chennai Industrial Corridor Development Program (VCICDP) will complement the ongoing efforts of the Government of Andhra Pradesh (GoAP) to enhance industrial growth and create high quality jobs. The VCICDP comprises a multitranche financing facility (MFF), a grant, and a policy- Project Description based loan (PBL). The MFF and the grant will support priority infrastructure investments in the Visakhapatnam-Chennai Industrial Corridor (VCIC) and the PBL will support policy reforms and institutional development in the state. Link to the RRP of the MFF https://www.adb.org/projects/documents/ind-vcicdp-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 245.0 48.5% 4.28 51.7%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2017 2018 2019 2020 Total (with loan status) Visakhapatnam- 19.0 52.9 85.5 114.4 114.4

215 Approved Tranches 2017 2018 2019 2020 Total (with loan status)

Chennai Industrial Corridor Development Program - Project 1 (Active) Total 19.0 52.9 85.5 114.4 114.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Contribution of the manufacturing sector to the gross domestic product, trade and employment of GoAP increased

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Growth and competitiveness of the VCIC Manufacturing sector output in Andhra Several works pertaining to the connectivity enhanced. Pradesh increased to Rs.4.2 trillion ($64 of roads, power transmission, industrial area billion) [2015 baseline: Rs.1.1 trillion ($16 development, and water supply are billion)] ongoing. An increase in manufacturing sector output to be assessed at the end of the investment program. Gross value added per person engaged in Gross value added per person to be the manufacturing sector increased to Rs1.0 computed at the end of the investment million (2013 baseline: Rs0.483 million per program. person engaged) Average daily employment of women in The average daily employment of women in factories in Andhra Pradesh increased to factories in Andhra Pradesh in the year 2019 18% (2010 baseline for former Andhra was 244,560 female workers (24.15%) out of Pradesh: 13.4%) 1,012,779 total workers. The government of Andhra Pradesh has not released the employment data for the year 2020. 24-hour power supply available for all Power supply for works of 400 KVA/220 manufacturing firms in the VCIC (2016 KVA, 220 KVA/132 KVA, and 132 KVA/33 baseline: 24-hour power supply not KVA sub-station at Chittoor node available for all manufacturing firms in the completed including 173 km of overhead VCIC) lines completed. At the northern zone near Visakhapatnam, 2 Nos of 220 KVA/132 KVA and 1 No of 132 KVA/33 KVA substations works are under progress, including 16kms of the overhead transmission line, & 14 km of underground cabling is in progress at Visakhapatnam industrial nodes. 24- hour power supply to be made available after completion of ongoing works. Interruption duration not to normally Power supply for works of 400 KVA/220 exceed 1 hour a month for feeders in at KVA, 220 KVA/132 KVA, and 132 KVA/33 least 2 VCIC industrial clusters (2016 KVA sub-station at Chittoor node baseline: interruption duration exceeds 5 completed including 173 km of overhead hours a month) lines completed. At the northern zone near Visakhapatnam, 2 Nos of 220 KVA/132 KVA 216 Growth and competitiveness of the VCIC and 1 No of 132 KVA/33 KVA substations enhanced. works are under progress, including 16kms of the overhead transmission line, & 14 km of underground cabling is in progress at Visakhapatnam industrial nodes. 24- hour power supply to be made available after completion of ongoing works. 24-hour drinking water supply provided to 2,568 out of 48,000 households provided 64,800 households (2015 baseline: 0) with a 24-hour drinking water supply. Among 149 district metered areas (DMAs), works are fully completed in 8 DMAs and the works in 17 DMA are in the advance stage of completion. Nonrevenue water reduced to less than 15% 2,568 out of 64,800 households provided in project area in Visakhapatnam with a 24-hour drinking water supply. In the (2015 baseline: 50%) 8 DMAs commissioned, the NRW is reduced to less than 10 %. Traffic in VCIC increased to 21,000 PCU Samarlkota Rajanagram road package is (2015: baseline: 15,000 PCU) ongoing. Increase in PCU will be measured after completion of road work. Risks Assessment of Current Status Inadequate investments by the government in critical projects Risk mitigated. The infrastructure development in VCIC is granted (ports and shipping, national highways, telecommunications, high priority in the state planning of Andhra Pradesh Vision 2029. railways) in the VCIC. Risk mitigated through the steering committee meeting held Lack of coordination among various government departments. regularly. Increased competition from other states in attracting investors. Risk mitigated. Andhra Pradesh has implemented various policy reforms and programs to improve the investment climate. Andhra Pradesh ranks 1st in the Ease of Doing Business all over India in 2016, 2017/2018 and 2019. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Corridor management strengthened and Corridor management institutions GoAP established the Andhra Pradesh ease of doing business improved established and operational industrial Corridor Development Authority (APICDA) as the principal institution responsible for developing the corridor and managing various functions, including planning, regulation, land procurement and allotment, user charges and financing, operations, and investment promotion. State's rating remains in top five on Ease of Ongoing. Andhra Pradesh ranked 1st among Doing Business (2015 baseline: ranked 2nd all states of India in 2016, 2017/2018, and according to Ease of Doing Business report 2019/20. commissioned by Government of India) New e-portal and single-desk system An e-portal-established and implemented operational for issuing business-related along with the single-desk policy in June licenses to more than 90% of the applicants 2016-is now operational across the state for (2015 baseline: 0) all applications to establish a business and to obtain related government incentives.

217 Corridor management strengthened and New industrial and sector policies notified To incentivize investors, under a tranche 1 ease of doing business improved and implemented with fiscal incentives and policy condition, the government enacted special packages for women entrepreneurs new industrial policies pertaining to the (2015 baseline: not applicable) industrial sector in general; micro, small, and medium-sized enterprises (MSME); the aeronautics and defense industries; automobiles and auto components; textiles and apparel; food processing; and electronics. Incentives to investors and manufacturing units include subsidies for capital investments, reimbursement of tax and power consumption charges, an interest subsidy, and reimbursement of costs involved in upgrading skills and training workers. The Industrial Development Policy and Textile and Apparel Policy offer female entrepreneurs special incentives including an investment subsidy and financial assistance for training programs.

The state government has implemented these policies by granting incentives since 2015. Across the state, the government provided incentives worth $158.9 million to 2,653 industrial units during FY2017 and FY2018, out of which $45.8 million was granted to 999 industrial units in the four VCIC nodes: East Godavari, Guntur, Chittoor, and Visakhapatnam. Special incentives worth $4.5 million have been granted to 408 female entrepreneurs in the four-node districts during FY2017 and FY2018.

Further, the GoAP has adopted the new state industrial policy 2020-2023 in August 2020. The GoAP has committed to providing further support in five areas such as infrastructure, ease of doing business, skilling and labor availability, end-to-end handholding, and financial incentives for Micro and Small, Medium, Large, and Mega industries. Visakhapatnam-Chennai Industrial Corridor 45 km of internal roads improved, with 31 km of internal roads improved in infrastructure strengthened and more gender-responsive design features (2015 Naidupeta cluster. resilient baseline: 0) 47 km of storm water drains constructed in 65.5 Km of storm water drains constructed industrial clusters (2015 baseline: 0) in Naidupeta cluster. Four MLD common effluent treatment 90% of 1 MLD CETP work completed. plants constructed in industrial clusters (2015 baseline: 0) 123 km of pipelines constructed in 71 km of water pipelines constructed in industrial clusters (2015 baseline: 0) industrial clusters. 27 MLD water treatment plants constructed 70% completed (civil work).

218 Visakhapatnam-Chennai Industrial Corridor in industrial clusters (2015 baseline: 0) infrastructure strengthened and more 9,100 million liters of storage tanks 80% of work completed. resilient constructed in industrial clusters (2015 baseline: 0) 93.6 km of state highways widened with One road project, Widening and gender-responsive design features (2015 Strengthening of Samarlakota to baseline: 0) Rajanagram Road (26 km) is under implementation. One 400 by 220 kV, five 220 by 132 kV and (1) 400 by 220 kV: 99% (Rachagunneri) four 132 by 33 kV new substations with a (2) 220 by 132 kV: 100% (Yerpedu) capacity of about 3,170 MVA installed for (3) 132 by 33 kV: 100% (Naidupeta) industrial clusters (2015 baseline: 0)

Related transmission network comprising 170 km overhead stringing and 38 km about 240 km of overhead and 41 km of underground cable laid. underground transmission and distribution lines of 400, 220, and 132 kV installed for industrial clusters (2015 baseline: 0) 64,800 water meters installed in 1530/64,800 meters installed in GVMC area. Visakhapatnam (2015 baseline: 0) 365 km of new drinking water pipelines 117 km of pipeline laid. constructed or rehabilitated in Visakhapatnam (2015 baseline: 0) Climate change resilience plan for Climate change resilience plan prepared. Visakhapatnam prepared and adopted for integrated water management solution (2015 baseline: not applicable) Institutional capacities, human resources, Project development mechanism with time- Completed. The project development and program management strengthened bound action plan established mechanism (PDM) has been established with a roadmap to (i) identify candidate projects for corridor development on a regular basis; (ii) empanel consultants to assist in project preparation; (iii) implement a project development facility with a $10 million revolving fund; and (iv) prepare eligible projects with feasibility studies, detailed project reports, bidding, and contract awards. Skill enhancement programs conducted for Completed. The state government at least 25,000 persons (at least 20% conducted technical and managerial women), including workers, entrepreneurs, training programs on information and students technology and information technology-enabled services, general manufacturing, automobiles, electronics, logistics, telecom, health care, and retail to 28,156 candidates, of whom 9,781 ( 34.7%) were women. Capacity development programs, including Ongoing. training on gender and monitoring of gender-disaggregated data, conducted for more than 500 staff of executing and/or implementing agencies (100% women staff participate)

219 Institutional capacities, human resources, Investor promotion plan developed and Ongoing. Two international investor and program management strengthened implemented on time conferences were successfully conducted. Satisfactory QPRs and audit reports Being complied with. submitted on time (gender-disaggregated data collected) Risks Assessment of Current Status Lack of political will to continue reforms. Continues to remain a risk. Delays in legal processes for enforcement of contracts. Inadequate allocation of power and water to meet industrial and urban demand. Delays in land acquisition. High turnover of DOIC and PIU staff. Severe and extreme weather and climate events. Problem Action Taken/Proposed Delay is release of counterpart fund by the Government of Andhra Close coordination with EA and higher officials of finance Pradesh, department to resolve the issue.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Road Sector: Develop and implement road A road safety policy is under 31-Dec-2024 safety action plan in at least two of the four implementation. nodes of VCIC (by APRDC). The State shall set up a Steering Committee Convened regularly under the chairmanship 31-Dec-2017 to ensure coordinated and integrated of CS, GoAP. development of the Industrial Corridors that supports the State's investments road map and the VCIC Master Plan to be developed for the four nodes (Visakhapatnam, Kakinada, Amaravati region, and Yerepdu Kalahasti). Project implementation (water supply): The water supply package that includes 31-Dec-2024 Concerned implementing agency will give NRW and DMA approach is being highest priority to water loss management implemented with good progress. for the duration of the Facility; will undertake condition assessment survey of existing pipelines in deciding replacement and repairs of water supply pipelines, and for this the implementing agency will ensure that the contractors have full access to maps, technical data, past technical reports and premises necessary for efficient operations of water loss detection. Following timelines will be complied with: (i) Volumetric tariff in the north-west zone of Vishakhapatnam municipal area to cover costs of 100% O&M in a phased manner by Dec 2024; (ii) Nonrevenue water reduction by DMA approach and active leakage control units by Dec 2019; (iii) Water quality monitoring facility by GVMC by Dec 2017; and (iv)

220 Individual water supply connections to households in slums and to below poverty line (BPL) families provided by GVMC in a phased manner by Dec 2024. Power sector: India and the State will ensure State level electricity supply road map has 31-Dec-2019 that : (a) APTransco continues to seek and been prepared as per standards prescribed receive investment approvals and file its by APERC; being complied with. aggregate revenue requirement in a timely manner to the Andhra Pradesh Electricity Regulatory Commission (APERC); (b) APTransco will provide an equity contribution of 25% of the capital cost to be incurred as committed to the APERC in the tariff order for 2014-2019 and will also arrange for the remaining counterpart funds required for investments.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 15-May-2020 Reallocation of fund and partial financing of tranche 2 subproject.

F. MFF Performance Ratings (Rated by Urban Development and Water Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk Tranche 2 approval is expected in 2021 after two years of the schedule indicated in RRP. Project Readiness to be improved with the enhanced support from the project team for advance contracting. Undertakings Compliance On Track Undertakings and covenants are either being complied with or not yet due. Tranche Performance Potential Problem The state audit department has not yet provided the audited entity financial statement (AEFS) to one of the Implementing Agency. ADB's project team is continuously pursuing submission of the AEFS with the state government. Overall MFF Performance On Track In 2020, about six months of delays were observed in most of the works due to the COVID-19 outbreak. All works have already resumed with the required workforce and resource materials. The delay is not expected to affect the project closing date.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

221 49107-003 IND : Tamil Nadu Urban Flagship Investment Program

49107-003 IND : Tamil Nadu Urban Flagship Investment Program (as of 31 - Dec - 2020)

This report was prepared by Hikaru Shoji and validated by Norio Saito, Urban Development and Water Division, SARD 49107003 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 25-Sep-2018 31-Dec-2026 8.27 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 502 500 2 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,2 tranche/s USD 377.0 million were approved. The program will develop priority water supply, sewerage, and drainage infrastructure in at least 10 cities located within strategic industrial corridors of Tamil Nadu. It will support innovative pilots, including Project Description India's first solar-powered sewage treatment plant (STP) to offset greenhouse gas emissions and enhance operational efficiency; strengthen urban governance; and build capacity of state and local institutions to enhance urban service delivery, environmental sustainability, and climate resilience. Link to the RRP of the https://www.adb.org/projects/documents/ind-49107-003-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 377.0 75.1% 2.27 27.4%

3. Cumulative Disbursements (in $ million)

222 Approved Tranches 2019 2020 Total (with loan status)

Tamil Nadu Urban 19.3 36.9 36.9 Flagship Investment Program - Tranche 1 (Active) Tamil Nadu Urban 13.0 13.0 Flagship Investment Program- Tranche 2 (Active) Total 19.3 50.0 50.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with (i) Universal access to basic water and sanitation services achieved (Tamil Nadu Vision 2023); (ii) "World-class" cities and industrial corridors across the state developed (Tamil Nadu Vision 2023); and (iii) Water security, reduced vulnerability to climate change in urban areas, and enhanced share of renewable energy achieved (Tamil Nadu Sustainable Water Security Mission, State Action Plan on Climate Change)

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Livability and climate resilience in at least 10 By 2027: Implementation of Tranches 1 and 2 are cities in priority industrial corridors a. Collection and treatment of sewage in under progress and all relevant contract enhanced. program coverage areas of eight cities packages related to sewage have been increased to 100% of households (2017 awarded. Processing of Tranche 3 (last baseline: sewage collected from 7.6% of tranche of $125 million under ADB households in coverage areas) financing) has been initiated. Actual achievements will be assessed after completion of all three tranches under the program. b. Flood risk reduced in 100% of flood- Stormwater drainage projects are expected prone areas covered by new drainage under Tranche 3 (last tranche of $125 systems adapted to climate change in three million under ADB financing) and its cities (2017 baseline: 0) processing has been initiated. Actual achievements will be assessed after completion of all three tranches under the program. c. Frequency and duration of water supply Implementation of Tranches 1 and 2 are improved to at least 6 hours/day provided under progress. Processing of Tranche 3 to 100% of households in the coverage (last tranche of $125 million under ADB areas in four cities (2017 baseline: water financing) has been initiated. Actual provided on average 1–2 hours/day, once in achievements will be assessed after 1–2 days, 48% piped water coverage). completion of all three tranches under the program. d. NRW in coverage areas of four cities Implementation of Tranches 1 and 2 are reduced to 20% (2017 baseline: on average under progress. Processing of Tranche 3 30%) (last tranche of $125 million under ADB financing) has been initiated. Actual achievements will be assessed after completion of all three tranches under the

223 Livability and climate resilience in at least 10 program. cities in priority industrial corridors e. At least 3,400 tons of carbon dioxide Procurement of solar power plant in enhanced. equivalent per year in greenhouse gas Coimbatore in progress. Actual emissions avoided (2017 baseline: 0) achievements will be assessed after completion of all three tranches under the program. f. At least 52,000 cubic meters/day of Implementation of Tranches 1 and 2 are treated wastewater reused for industrial under progress and all relevant contract purposes in three cities (2017 baseline: packages related to sewage have been 32,000 cubic meters/day of treated awarded. Processing of Tranche 3 (last wastewater reused in Chennai). tranche of $125 million under ADB financing) has been initiated. Actual achievements will be assessed after completion of all three tranches under the program. g. Collection efficiency of sewerage user Implementation of Tranches 1 and 2 are fees in eight cities with piped sewerage under progress and all relevant contract systems increased by at least 15% (2017 packages related to sewage have been baseline: 49% collection efficiency) awarded. Processing of Tranche 3 (last tranche of $125 million under ADB financing) has been initiated. Actual achievements will be assessed after completion of all three tranches under the program. Risks Assessment of Current Status Water shortages from intensified droughts linked to climate Implementation is at early stages and as such, the risk is not change beyond projections leading to the poor performance of envisaged at this point of time. water and sewerage facilities. No regular revisions or collection of water and sewerage tariffs due to political pressure constrain the sustainability of services. Problem Action Taken/Proposed No problems have been identified to date Not applicable

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Climate-resilient sewage collection and By 2026: All STP contracts under Tranche 1 have treatment, and drainage systems developed Three STPs with combined capacity of 155 been awarded and construction is underway in at least eight cities MLD rehabilitated and seven new STPs with for combined capacity of approx. 165 MLD combined capacity of 187 MLD added (2017 (new STPs) and approx. 37 MLD Baseline: 0 rehabilitated and new) (rehabilitation of STPs). The cities are Coimbatore, Rajapalayam, Tirunelveli, Trichy and Vellore. Under Tranche 2, rehabilitation of approx. 15 MLD STP and construction of 2 STPs with total capacity of approx. 72 MLD are ongoing in Ambur and Tirrupur. Actual achievements will be measured when works are completed. Solar photovoltaic-powered (clean energy) Revised bidding document along with the STP with 2 megawatt solar capacity piloted draft safeguard documents have been and commissioned (2017 baseline: 0) submitted to ADB for review. Procurement is expected to commence in Q1 2021. Actual achievements will be measured when works are completed. 224 Climate-resilient sewage collection and 2,810 km of new sewage collection All sewage contracts under Tranche 1 and treatment, and drainage systems developed pipelines commissioned and connected to Tranche 2 have been awarded and are in at least eight cities 426,600 households including 100% poor under construction with total of about and poor women headed households in the 1,864 km and 1,328 km of pipelines and coverage area (2017 baseline: 0) connections for approx. 290,000 and 150,000 households expected under respective tranches. Actual achievements will be measured when works are completed. 173 sewage pump stations with combined All sewage pump station contracts under capacity of 6,390 kilowatts added (2017 tranches 1 and 2 have been awarded with baseline: 0) combined number of 124 and 69 pump stations respectively. Actual achievements will be measured when works are completed. 250 km of new tertiary and 50 km of Stormwater drainage project is expected primary and secondary stormwater drains under Tranche 3. Actual achievements will constructed and improved with climate- be measured when works are completed. resilient designs (2017 baseline: 0) 20 all-female community-based Governance Improvement and Awareness organizations trained as water and Consultant (GIAC) mobilized in Q4 2019 and sanitation committees and 100% activities are ongoing. Actual achievements participants reporting improved knowledge will be measured when training is of benefits of sewage collection systems completed. and household connections (2017 baseline: 0) Water supply systems in at least five cities By 2026: All water supply contracts under Tranche 1 improved with smart features 1,520 km new water distribution pipelines have been awarded and are under commissioned within 110 new district implementation with total of approx. 275 metered areas and metered connections km of new pipelines, 20 district metered provided to 171,000 households (100% areas and metered connections to approx. households including poor and poor 30,800 households expected. For Tranche 2, women households in coverage area) (2017 8 water supply contracts are under baseline: 0) implementation while 2 are in process of procurement. Expected outputs are: approx. 1,260 km of new pipelines, 115 district metered areas, and metered connections to approx. 188,900 households. Actual achievements will be measured when works are completed. 30 new pump stations with combined All water supply contracts under Tranche 1 capacity of 1,530 kilowatts installed, and have been awarded and are under 120 km new transmission mains constructed implementation. 5 pump stations with (2017 baseline: 0) combined capacity of approx. 231 kilowatts will be installed and 11km of new transmission mains will be constructed. For Tranche 2, 8 water supply contracts are under implementation while 2 are in process of procurement. Expected outputs are: installation of 3 pump stations with combined capacity of approx. 7,225kW, and construction of 196km of new transmission mains. Actual achievements will be measured when works are completed. 40 new reservoirs with combined capacity All water supply contracts have been

225 Water supply systems in at least five cities of 70 million liters constructed (2017 awarded under Tranche 1 and are under improved with smart features baseline: 0) implementation to construct 9 reservoirs with combined capacity of 11 million liters. For Tranche 2, 8 water supply contracts are under implementation while 2 are in process of procurement. Construction of 66 reservoirs with combined capacity of 92 million litters is expected under the tranche. Actual achievements will be measured when works are completed. At least 80% technical staff from each On track to achieve target. Actual implementing agency in four cities reported achievements will be measured when improved knowledge and/or skills in NRW training is completed. reduction as a result of training, with 75% participation of women technical staff (2017 baseline: 0) Institutional capacity, public awareness, and By 2026, 1,000 school students, teachers On track to achieve target. Actual urban governance strengthened and administrators (at least 50% women); achievements will be measured when and 30 women SHGs reported improved related activities are completed. awareness on water conservation and hygiene (2017 Baseline: 0) By 2023, PDMC established in CMA (2017 Staff for the Project Design and baseline: not established) Management Center (PDMC) is being mobilized by the Commissionerate of Municipal Administration (CMA) and Government of Tamil Nadu (GOTN). The TA consultants have proposed detailed terms of references of the PDMC and its staffing for CMA and GOTN's consideration. By 2020, at least 80% of technical staff in Staff for the PDMC is being mobilized by PMDC (75% participation of female the CMA and GOTN. The TA consultants technical staff) trained in the design and have proposed detailed terms of references implementation of urban infrastructure of the PDMC and its staffing for CMA and projects reported improved knowledge GOTN's consideration. and/or skills (2017 baseline: 0) By 2023, project design and implementation Staff for the PDMC is being mobilized by manuals for urban service delivery, with the CMA and GOTN. The TA consultants are applicable standards for PDMC developed preparing the training modules and the (2017 baseline: 0) design and implementation manual for urban service delivery for CMA and GOTN's consideration. By 2023, new database for at least 10 Relevant studies to implement the output project cities established at urban data and initiated by the GIAC. governance improvement cell, with sex- disaggregated data where applicable. (2017 baseline: 0)

By 2026, 10 CMA and 100 ULB staff Relevant studies to implement the output (including 100% of eligible women staff) initiated by the GIAC. reported knowledge on approaches to integrating gender and social inclusion in urban governance, implementing gender action plans, and monitoring and reporting on gender equality results (2017 baseline: 0)

226 Risks Assessment of Current Status Water shortages from intensified droughts linked to climate Implementation is at early stages and as such, the risk is not change which exceed projections lead to the poor performance of envisaged at this point of time. water and sewerage facilities. Political pressure prevents regular revisions or collection of water and sewerage tariffs constraining the sustainability of services. Problem Action Taken/Proposed None Not applicable

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The state through the TNUIFSL shall ensure Being complied with. 31-Dec-2026 that all sub-projects are selected and approved in accordance with the selection criteria and approval process set out in Schedule 4 to this FFA and all documents forming the basis for screening, selection and processing of subprojects are made available to the ADB upon request and are kept available for such purposes for a minimum period of five years from the date of the relevant project completion report. The state through the TNUIFSL shall ensure Being complied with. 31-Dec-2026 that works contracts will (a) follow all applicable labor laws of India and the state and that these further include provisions to the effect that contractors to carry out HIV/AIDS awareness programs and disseminate information at worksites on risks of sexually transmitted diseases and HIV/AIDS as part of health and safety measures for those employed during construction; and (b) follow and implement all statutory provisions on labor (including not employing or using children as labor, equal pay for equal work), health, safety, welfare, sanitation, and working conditions. Such contracts shall include clauses for termination in case of any breach of the stated provisions by the contractors. The state and TNUIFSL shall remain Being complied with. 31-Dec-2026 committed to the implementation of the Investment Program over the period of 2018-2026 as envisaged in the state�s Road Map. In the event of any change in the Road Map, Being complied with. 31-Dec-2026 policy framework, investment program, or financing plan, India, the State and ADB will assess the potential impact on the Investment Program and evaluate any change in scope, amendment or continuation, as appropriate, of the Investment Program. The state through the TNUIFSL will ensure Being complied with. 31-Dec-2026

227 that the preparation and implementation of the sub-projects under the Investment Program and facility are in compliance with the undertakings and assurances concerning environmental safeguards, indigenous people�s safeguards, involuntary resettlement safeguards, gender policy, labor standards, and prohibited investments as set out in Schedule 5 of this FFA and the loan agreement for each tranche under the Investment Program. The state shall pass on to TNUIFSL and to Being complied with. 31-Dec-2026 the Commissionerate of Municipal Administration the ADB loan proceeds on terms and conditions acceptable to India and ADB, and shall: a. provide all counterpart funds from its budget for each fiscal year, land and facilities in a timely manner, for the efficient implementation of the sub-projects under the Investment Program, including, without limitation, any funds required to meet additional costs arising from design changes, price escalation in construction costs and/or unforeseen circumstances; b. provide adequate funds towards operation and maintenance of the facilities created or rehabilitated under the sub-projects, through budgetary allocations or other means, during and after the completion of the sub-projects; c. make available all necessary budgetary and human resources to (i) fully implement the safeguard documents, including the IEE, EMP and resettlement plan as required; and (ii) mitigate unforeseen environmental and social impacts; and d. through TNUIFSL, designate at least one expert each to supervise the implementation of the EMP, and resettlement plan, if any. The state, through the TNUIFSL, shall Being complied with. 31-Dec-2026 employ sufficient staff for the duration of the investment program with adequate and relevant expertise in the field of project management, financial management, engineering, construction supervision, procurement, equipment inspection and testing, and environmental and social safeguards implementation; the state and the TNUIFSL shall ensure that all subprojects are implemented in accordance with the detailed arrangements set forth in the Facility Administration Manual (FAM), and if applicable, any Project Administration Manual (PAM) that may be prepared for any portion of the Investment Program and

228 Facility. Any subsequent change to the FAM (or PAM) shall become effective only after approval of such change by India and ADB. In the event of any discrepancy between the FAM/PAM and the Loan Agreements, the provisions of the Loan Agreements will prevail. Towards smooth implementation of the Being complied with. 31-Dec-2026 projects under the Facility, the state and TNUIFSL shall ensure that grievance(s) if any from stakeholders relating to sub-project implementation or use of funds are addressed effectively and efficiently. India, the state and the TNUIFSL shall (a) Being complied with. 31-Dec-2026 comply with the ADB�s Anticorruption Policy (1998, as amended to date) and acknowledge that the ADB reserves the right to investigate directly or through its agents any alleged corrupt, fraudulent, collusive or coercive practice relating to the investment program; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation. India shall cause the state through the Being complied with. 31-Dec-2026 TNUIFSL to ensure that the anti-corruption provisions acceptable to the ADB are included in all bidding documents and contracts, including provisions specifying the right of the ADB to audit and examine the records and accounts of the state and the TNUIFSL and all contractors, suppliers, consultants, and other service providers related to the projects and sub-projects under the Investment Program. The state through TNUIFSL shall ensure that Being complied with. 31-Dec-2026 the preparation, design, construction, implementation, operation and decommissioning of all projects and project facilities under the Investment Program comply with (a) all applicable laws and regulations of India and the state relating to environment, health, and safety; (b) the ADB�s Environmental Safeguards; and (c) all measures and requirements set forth in the environmental assessment review framework, IEE, EMP, and any corrective or preventative actions set forth in a safeguards monitoring report. The state through the TNUIFSL shall Being complied with. 31-Dec-2026 establish a project monitoring system in line with the targets and indicators set out in the DMF for the investment program. The baseline data for outputs and outcome indicators of the investment program DMF

229 and each tranche project DMF shall be disaggregated by sex as well as poverty level. The state through TNUIFSL shall ensure Being complied with. 31-Dec-2026 timely identification of land to be acquired if required and initiation of land acquisition proceedings following requirements of safeguard compliances under the SPS, resettlement framework and related resettlement plans to facilitate timely tendering of works contracts. In the event of impact on indigenous Being complied with. 31-Dec-2026 peoples during any project implementation, India shall ensure, or cause the state through TNUIFSL to ensure, that the preparation, design, construction, implementation and operation of the project, and all project facilities comply with (a) all applicable laws and regulations of India and the state relating to indigenous peoples; (b) the ADB�s Indigenous Peoples Safeguards; and (c) any corrective or preventative actions set forth in a Safeguards Monitoring Report. India shall cause the state through TNUIFSL Being complied with. 31-Dec-2026 to do the following: a. submit semi-annual safeguards monitoring reports to the ADB and disclose relevant information from such reports to affected persons promptly upon submission; b. if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the project that were not considered in the IEE, the respective EMP and the respective resettlement plan, inform the ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; c. no later than the award of related works contract, engage qualified and experienced external expert(s) under a selection process and terms of reference acceptable to the ADB, to verify information produced through the project monitoring process, and facilitate the carrying out of any verification activities by such external experts; and d. report any breach of compliance with the measures and requirements set forth in the respective EMP and the respective resettlement plan, promptly after becoming aware of the breach. The state through the TNUIFSL shall ensure Being complied with. 31-Dec-2026 that no proceeds of the ADB loan under the projects are used to finance any activity included in the list of prohibited investment

230 activities provided in Appendix 5 of SPS. The state through TNUIFSL shall ensure that Being complied with. 31-Dec-2026 the projects are undertaken in conformity with the communication strategy and gender equity and social inclusion activities as agreed between the ADB, Indian and the state and as referred in the FAM. The state through the TNUIFSL shall ensure Being complied with. 31-Dec-2026 that no works contract is awarded for a subproject, which involves: a. environmental impacts, until the TNUIFSL has incorporated the relevant provisions from the respective EMP into the works contract; and b. involuntary resettlement impacts, until the TNUIFSL has prepared and submitted to the ADB the respective final resettlement plan for such sub-project based on the subproject's detailed design, and obtained ADB's clearance of such resettlement plan. As condition for award/commencement of Being complied with. 31-Dec-2026 works under sub-projects, India shall, or shall cause the state through TNUIFSL, that no commencement of works is allowed under any works contract under any subproject, which involves environmental and resettlement impacts until the TNUIFSL has (a) obtained the final clearance of the IEE from the ADB; (b) if it requires any statutory environmental clearances, then it has obtained the environmental clearance, including approval of the environmental assessment report, from the relevant state or national authority; and (c) compensations and assistance has been paid to the affected persons in the section concerned by civil works. Actions to be completed as condition Has complied with the undertaking. 26-Nov-2019 precedent to second Periodic Financing Request. Before the ADB can consider a second periodic financing request under the Facility, the state through TNUIFSL shall have completed the detailed project report[s] and all actions relating to invitation of bids for packages for at least 30% project cost by value proposed under Tranche 2.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

231 F. MFF Performance Ratings (Rated by Urban Development and Water Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Implementation is on track. Discussion on Tranche 3 is in progress, with effectivity date targeted for 2022. Undertakings Compliance On Track Some delays anticipated in complying with the undertakings because of COVID19. However, compliance can still be achieved as the program is at early stages of implementation. Tranche Performance Potential Problem Tranches 1 and 2 performances are rated as "Potential Problem" because of lower disbursements vis-a-vis the eOps targets, which are optimistic. The eOps targets would be revisited during the mid-term review of the project. Overall MFF Performance On Track Delays were observed in most of the works due to the COVID-19 pandemic. While all works have already resumed and the implementing agencies are in discussion with contractors to mobilize more resources to make up for the delays, marginal 3-6 month extensions are envisaged for some contracts. These extensions are not expected to affect the project closing dates. Overall MFF performance for 2020 is satisfactory.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

232 49228-001 IND : Rajasthan State Highway Investment Program

49228-001 IND : Rajasthan State Highway Investment Program (as of 31 - Dec - 2020)

This report was prepared by Yang Lu and validated by Ravi Peri, Transport and Communications Division, SARD 49228001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 23-May-2017 30-Sep-2024 7.36 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 119.91233 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 410.0 million were approved. The investment program will improve the efficiency and safety of transport on the state highways of Rajasthan, thereby providing good quality connectivity for social and economic activities. The investment program will (i) upgrade about 2,000 kilometers (km) of state highways and major district roads (MDRs) to two-lane or intermediate-lane standards in keeping with road safety requirements; and (ii) enhance the Project Description capacity of the Public Works Department of the Government of Rajasthan (RPWD) by (a) improving the business processes and procedures of its public-private partnership (PPP) division and (b) implementing a project performance monitoring system. The investment program will catalyze the sustainable development of Rajasthan through the collaboration of the public and private sectors. Link to the RRP of the http://www.adb.org/projects/documents/ind-49228-001rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 410.0 82% 3.61 49%

233 3. Cumulative Disbursements (in $ million)

Approved Tranches 2018 2019 2020 Total (with loan status) Rajasthan State 109.0 156.3 177.3 177.3 Highway Investment Program - Tranche 1 (Active) Rajasthan State 4.9 18.7 18.7 Highway Investment Program - Tranche 2 (Active) Total 109.0 161.3 196.0 196.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Good quality connectivity in all areas provided

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficiency and safety of transport on the Use of the built roads averaging 10.184 Project implementation ongoing. To be state highways of Rajasthan improved. million vehicle-km per day measured after program completion. Road safety audit mainstreamed in the Project implementation ongoing. To be business process of RPWD's PPP division measured after program completion. Risks Assessment of Current Status Inadequate arrangements for road maintenance and operation. The provisions of Operation and Maintenance are included in the Concession Agreement. Certain percentage of the total cost is allocated to Operation and Maintenance. Concessionaires shall provide monthly monitoring report. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets State highways and major district roads 2,000 km of the state highway and major The construction of about 960.3 km of improved district roads in Rajasthan improved and roads under tranche 1 have been maintained under performance-based completed. The construction under tranche contracts 2 is on-going with some delay due to insufficient budgetary provisions and the impact of the COVID 19. Capacity of RPWD enhanced. Streamlined business process of the PPP Ongoing division implemented A project performance monitoring system Ongoing implemented Risks Assessment of Current Status Limit interest of the construction industry in the works All contracts have been successfully awarded for Tranche 1 and

234 Delay in land acquisition and utility shifting due to the preparation construction is almost complete. Of the six packages under and implementation of resettlement plans. Tranche 2, 4 EPC packages were awarded while the bidding for 2 annuity-based packages shall start in Q1 2021. Land acquisition for Tranche 1 has been delayed in the past and is now substantially completed. Problem Action Taken/Proposed Most physical works under Tranche 1 have been completed. Corrective action plan has been prepared and implemented to However, the final completion of the construction under tranche 1 expedite the land acquisition. The land acquisition and might be delayed due to the prolonged land acquisition. The resettlement process is substantially completed for tranche 1. The progress of civil works under tranche 2 might be affected by the state government assured that sufficient budget will be provided insufficient state budgetary provision. for the program.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Land Acquisition and Resettlement Corrective measures on the land acquisition 20-Oct-2020 and resettlement are being implemented.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020

F. MFF Performance Ratings (Rated by Transport and Communications Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 1 was approved in May 2017 and Tranche 2 approved in September 2019 Undertakings Compliance On Track Corrective measures on the land acquisitions and resettlement issues are being implemented. Tranche Performance On Track Tranche performance is on track. Overall MFF Performance On Track The performance of Tranche 1 is in general satisfactory. For Tranche 2, the progress has slowed down in 2020 due to the labor and supply constraints resulted from the COVID 19 impact. Community and occupational health and safety plan has been developed and implemented. The work is expected to be completed before the loan closure.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

235 49419-001 IND : Solar Rooftop Investment Program

49419-001 IND : Solar Rooftop Investment Program (as of 31 - Dec - 2020)

This report was prepared by Jigar Arvindbhai Bhatt and validated by Takeo Konishi, India Resident Mission, SARD 49419001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 30-Sep-2016 30-Jun-2023 6.75 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 330 170 Total ($ Million) Cofinancing Sources Non-administered a 647.9 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,1 tranche/s USD 0.0 million were approved. The proposed $505 million sovereign-guaranteed Solar Rooftop Investment Program (SRIP) is a multitranche financing facility, consisting of $500 million financial intermediation loans and a $5 million capacity development technical assistance. As requested by the Government of India, Punjab National Bank is the borrower, and the India provided a sovereign guarantee to the Asian Development Bank for the SRIP. The SRIP intends to primarily finance large solar rooftop systems on industrial and commercial buildings on standalone or aggregated basis. Punjab National Bank's loans to subborrowers is priced based on Punjab National Bank's cost of funds and subproject-specific risks. The proposed accompanying technical Project Description assistance for $5 million is critical to integrate the building blocks of the Government of India's sector development initiative to ensure a viable market demand, by strengthening (i) Punjab National Bank's institutional capacity, and (ii) certain market development elements. SRIP's value addition, inclusive of $330 million from ordinary capital resources and $170 million from Clean Technology Fund, is to facilitate India's transition to a low carbon economy and therefore contribute to the climate change goal of reducing greenhouse gas emissions by 441,700 tons of carbon dioxide equivalent annually, or about 11 million tons of carbon dioxide equivalent over the typical 25-year lifetime of rooftop solar systems. Link to the RRP of the https://www.adb.org/projects/documents/ind-solar-rooftop-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB ADB's own CA Disb Approved tranches (with loan status) Effective Date administered Overall FM Safeg. Output Validated sources % % Closing Date sources Solar Rooftop Investment Program 7-Oct-2016 0.0 100.0 0.67500 On % 25% On For Yes - Tranche 1(Active) 24-Aug-2017 For Track Track Attention Attention

2. Time Lapsed

236 Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 0.0 0% 4.25 63%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2017 2018 2019 2020 Total (with loan status) Solar Rooftop 25.0 25.0 25.0 25.0 25.0 Investment Program - Tranche 1 (Active) Total 25.0 25.0 25.0 25.0 25.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Energy security provided to all in an environmentally sustainable manner, and renewable energy developed

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Solar rooftop capacity in India increased. 400 MW of solar rooftop power generating- 24 MW of solar rooftop power-generating capacity is funded by PNB capacity is funded by PNB. An average of additional 441,700 tons of An average of additional 29,745 tons of carbon dioxide emission reduced annually carbon dioxide emission reduced annually. from this program ADB program to catalyze $300 million Implementation ongoing. $5.8 million project equity and $200 million debt project equity and $2.7 million debt financing leveraged by PNB financing leveraged by PNB. Risks Assessment of Current Status Change of government and solar rooftop policy. Sector development being supported by TA implementation. Protracted economic slowdown in the international and domestic Stable government and supportive solar rooftop policy is in place. markets to reduce government fiscal capacity to support the sector Global market being continuously monitored, and accordingly development. fiscal capacity being strengthened by Government to support the sector development. Problem Action Taken/Proposed (1) Poor performance and lack of ownership by PNB. Tranche 1 has been suspended effective 6 July 2020. Taking serious (2) Bankable subprojects pipeline and liquidation of Advance funds note of slow implementation and lack of ownership by PNB, the by PNB. Government of India has suggested to restructure the MFF with (3) PNB institutional setup for the program (at PMU and IREDA as new Borrower, to expedite the utilization of MFF. zonal/branch level) Accordingly, restructuring of MFF is in process. ADB has fielded a consultation mission to IREDA on 9 Jan 2020, and Fact-Finding mission from 29 Sep to 7 Oct 2020.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Debt funding to the solar rooftop sector At least 500 solar rooftop subprojects 64 subprojects have been approved for increased approved for financing. financing by PNB. PNB institutional capacity improved A designated solar rooftop unit at PNB PNB has setup PMU at its headquarters. The headquarters and selected branches to PMU is supported by consultants from ADB.

237 PNB institutional capacity improved screen, review, price and monitor However, PNB yet to assign full time subprojects established dedicated staff in its PMU setup. Annual ADB program disbursement targets $25 million was advanced to PNB under (to be determined during implementation) Advance fund Procedure on 8 December met 2017. As on date, liquidation of only $7.26 million against advance of $25 million have been achieved. ADB program compliance requirements Due to lack of ownership and poor met performance by PNB, Tranche 1 has been suspended effective 6 July 2020. As requested by Government of India (GOI), the Program is being restructured with addition of new Borrower. Solar rooftop market infrastructure and Subproject pipeline of 50 MW developed by No subproject pipeline developed by MNRE bankable subproject pipeline developed MNRE channel partners (developers) for channel partners. Presently 64 subprojects PNB financing of 24 MW have been sanctioned by PNB for ADB financing. Capacity development program at power Through TA 9187, various capacity distribution companies, SNA, CERC, and development programs and trainings have CEA levels completed been conducted for State Nodal Agencies / DISCOMs at 8 States/UTs allocated to ADB. Extensive marketing and awareness Sensitization programs in 16 states have campaign program targeting industrial and been conducted by PNB for potential commercial sectors, including businesses customers, as well as field functionaries at and properties owned and managed by more than 10 Zonal HQs. Advertisements in women, if any, implemented state level /regional newspapers across 16 states were published. Marketing and awareness programs are now being conducted for new Borrower to support in bankable subprojects pipeline development. Solar rooftop web portal to promote the The financing scheme has already been PNB financing facility developed uploaded on PNB and MNRE websites. Consulting firm has been recruited and mobilized for designing specific web portal and portal has been finalized in consultation with PNB. Risks Assessment of Current Status Untested solar rooftop market demand. Market demand is low and this trend is expected to continue in Slow market reaction to government market development efforts near future. MNRE has written to DEA with revised definition of and incentives, e.g., feed-in-tariff, renewable energy purchase solar rooftop, which covers partial ground mounted too. Minor obligation, and/or direct subsidies. change will be covered while carrying out restructuring of MFF. PNB’s declining financial position to implement the ADB program. Policies are being reformed as per market requirement. Further, various awareness programs are being carried out by multilateral Inadequate sector-level (power distribution companies, SNA, CERC, and bilateral agencies under various TA programs. and CEA) ownership and commitment to reform and development ADB is reviewing financial position of PNB through annual audit Continued power distribution companies’ financial position and reports submitted by PNB. However, due to lack of ownership by associated offtaker risk. PNB, notice of Suspension dated 29 June 2020 has been issued to PNB, and the Tranche 1 is under Suspension effective 6 July 2020. Policies are in place to develop ownership and commitment within sector level entities, such as to provide incentive to distribution companies. Under Phase II guidelines, MNRE has provided incentive to

238 distribution companies for supporting the solar rooftop program. In addition, payment security mechanism is being devised to cover associated offtaker risk. Problem Action Taken/Proposed Weak policies and underdeveloped eco system causing slow Efforts are being made to carryout appropriate changes in the implementation. policies. Awareness programs are being carried out by multilaterals and bilateral funds to develop eco system systematically. However, the speed of implementation will remain slow to medium for short term.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date PNB shall develop and maintain the capacity Being Complied with. 30-Jun-2023 of the solar rooftop unit staff to perform the responsibilities of the SRIP including developing and maintaining specialist capacity per the design of the accompanied technical assistance grant.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020. However, as suggested by Government of India, MFF is being restructured for addition of new Borrower.

F. MFF Performance Ratings (Rated by India Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk Estimated approval date of Tranche 2 in RRP is 30 June 2018. However, due to poor performance and lack of ownership by PNB, only $7.26 million have been utilized in Tranche 1 till date. Therefore, Tranche 1 has been Suspended effective 6 July 2020, and as suggested by Government of India, MFF is being restructured for addition of new Borrower. Undertakings Compliance On Track Undertakings are being complied by the EA. Tranche Performance At Risk Contract award of $18.04 million and disbursement of $25 million has been achieved. Till date, only $7.26 million have been liquidated by PNB in Tranche 1. Therefore, Tranche 1 has been Suspended effective 6 July 2020. Overall MFF Performance Potential Problem MFF completion date is June 2023, but Tranche 2 and Tranche 3 are yet to be processed. Due to poor performance and lack of ownership by PNB, only $7.26 million have been utilized in Tranche 1 till date. Therefore, Tranche 1 has been Suspended effective 6 July 2020, and as suggested by Government of India, MFF is being restructured for addition of new Borrower. Further, due to impact of COVID-19, solar rooftop market and operations and PNB were affected, as a result sanctioning process of subprojects slowed down.

239 G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

240 51073-002 IND : Delhi-Meerut Regional Rapid Transit System Investment Project

51073-002 IND : Delhi-Meerut Regional Rapid Transit System Investment Project (as of 31 - Dec - 2020)

This report was prepared by Sharad Saxena and validated by Ravi Peri, Transport and Communications Division, SARD 51073002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 18-Aug-2020 30-Aug-2027 7.04 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 1552 1049 503 Total ($ Million) Cofinancing Sources Non-administered a 500 New Development Bank Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,1 tranche/s USD 500.0 million were approved. The investment project will finance the first of three prioritized corridors of the planned regional rapid transit system (RRTS) network in India's National Capital Region (NCR). The Delhi-Meerut RRTS will pass through the densely populated sections of the NCR, connecting Delhi to Meerut in the state of Uttar Pradesh. The 82-kilometer corridor will provide safe, reliable, and high-capacity commuter transit services between various locations along the corridor. The investment project will finance rail track, signaling, Project Description station buildings, and maintenance facilities. It will also support capacity and institutional development of the National Capital Region Transport Corporation (NCRTC), a joint venture company of the Government of India and states of Delhi, Haryana, Rajasthan and Uttar Pradesh, that is mandated to implement the RRTS project across the NCR. A grant from the Japan Fund for Poverty Reduction will promote improved mobility and economic opportunities for women and differently abled groups along the corridor. Link to the RRP of the https://www.adb.org/projects/documents/ind-51073-002-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 500.0 32.2% 0.37 5.3%

241 3. Cumulative Disbursements (in $ million)

Approved Tranches 2020 Total (with loan status) Delhi-Meerut 36.8 36.8 Regional Rapid Transit System Investment Project - Tranche 1 (Active) Total 36.8 36.8

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Urban mobility in the National Capital Region improved

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficiency, safety, social inclusiveness, and Travel time between Delhi and Meerut by To be measured after project completion environmental sustainability of transport in train reduced to 1 hour the Delhi-Meerut regional rapid transit 258,035 tons of carbon dioxide reduced per To be measured after project completion system (RRTS) corridor improved annum At least 70% of riders, including elderly, To be measured after project completion women, children, and differently abled, perceive the RRTS to be accessible, safe, and reliable Risks Assessment of Current Status Feeder connectivity issues impact ridership No known issue to date Problem Action Taken/Proposed None Not applicable

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Delhi-Meerut RRTS corridor commissioned 82 route-kilometers of standard gauge Ten goods and works contracts totaling electrified rail track installed, with systems $313.62 million awarded and signaling 24 elderly, women, children, differently Not yet due abled-friendly stations with climate- and disaster-resilient features constructed and operational At least five RRTS stations developed as Not yet due major multimodal hubs At least one carriage in every RRTS train Not yet due reserved for women only Closed-circuit television cameras installed in Not yet due all stations to monitor coaches, pick-up, drop-off, and in all public areas

242 Institutional capacity of the NCRTC Recommendations and action plan on Draft action plan on transit-oriented strengthened transit-oriented development, value development and value capture financing capture financing instruments, and public- completed by NCRTC; the consultants to private partnership initiatives finalized and assist in the delivery of this output to be approved by NCRTC mobilized by March 2021 A smart-technology-based platform Not yet due (building information modelling) established and adopted for project design, implementation, and management Gender-friendly workplace policy Not yet due developed and institutionalized within the NCRTC At least 50 NCRTC staff reported increased Not yet due knowledge in project and contract management, financial management, procurement, and safeguards Mobility and economic opportunities of At least 1,400 women received training for Recruitment of consultants not yet due women and differently abled improved employment and/or entrepreneurial opportunities arising from improved RRTS corridors At least 1,000 differently abled people Procurement of assistive aids not yet due received hearing, visual, and/or physical mobility assistive aids Risks Assessment of Current Status Unpredicted ground conditions, such as mixed strata, may delay No issue to date tunnel boring works in the underground sections. Mobilization of target beneficiaries takes longer because of social behavior and perceptions. Problem Action Taken/Proposed None Not applicable

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date 6.4. Implementation Arrangements. In the Being complied with 30-Aug-2027 event of any change in the road map, policy framework, the Investment Project, or financing plan for the Investment Project, India shall, and shall cause the Executing Agency, to assess, in consultation with ADB, the potential impact on the Investment Project and evaluate any change in scope, amendment, or continuation, as appropriate, of the Investment Project. 12. Coordination; Cofinancing. India shall Being complied with 30-Aug-2027 keep ADB informed of discussions with other multilateral, bilateral and national aid agencies, particularly involvement of Asian Infrastructure Investment Bank and the Japan Fund for Poverty Reduction (JFPR), that may have implications for the implementation of the Investment Project. India shall provide ADB with an opportunity

243 to comment on any resulting policy reform and/or investment proposals and shall take into account ADB�s views before finalizing and implementing any such proposals.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Transport and Communications Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 1 was approved on time. Undertakings Compliance On Track Undertakings are either being complied with or not yet due. Tranche Performance On Track Tranche 1 is rated On track. Overall MFF Performance On Track The MFF is being implemented on time, with no implementation issues to date. The COVID-19 pandemic has only slightly affected the project implementation. Guidelines and standard operating measures have been developed and are being strictly implemented for resumption of regular works at various NCRTC site offices and construction sites. Strict compliance monitoring is being ensured by chief project managers. The seven-year implementation period also provides adequate cushion for some delays.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

244 Kazakhstan

Go to List of Countries Page 43439-013 KAZ : MFF - Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program (Facility)

43439-013 KAZ : MFF - Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program (Facility) (as of 31 - Dec - 2020)

This report was prepared by Jiangbo Ning and validated by Dong-Soo Pyo, Transport and Communications Division, CWRD 43439013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 28-Sep-2010 15-Sep-2020 9.97 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 800 800 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 472.4 million were approved. The investment program will (i) reconstruct 790 km roads of CAREC Corridor 2 in Mangystau--this includes the 430 km Aktau-Manasha section, the 84 km Beineu-Akzhigit (Uzbekistan border) section, and the 237 Project Description km Zhetybai-Fetisovo section; (ii) strengthened capacity for planning, project management, and asset management; and (iii) improved cross-border infrastructure and facilities. These outputs will be achieved through two components: road development and capacity development. Link to the RRP of the https://www.adb.org/projects/documents/carec-corridor-2-mangystau-oblast-sections-investment- MFF program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 472.4 59.1% 10.26 102.9%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) CAREC Corridor 2 28.3 73.5 142.2 147.5 151.1 151.1

246 Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

(Mangystau Oblast Sections) Investment Program - Tranche 1 (Closed(1)) CAREC Corridor 2 39.2 78.5 167.8 230.5 261.3 296.2 306.2 306.2 (Mangystau Oblast Section) Investment Program - Tranche 2 (Closed(1)) Total 28.3 73.5 181.4 226.0 318.9 230.5 261.3 296.2 306.2 457.3

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased national economic growth and regional trade

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficient transport network in Mangystau Increased traffic volume to 3,500 vpd in Tranche 1: Traffic volume along the 200-km Oblast connecting Aktau to Manasha, 2016 from 1,000 vpd in 2009 Manasha-Shetpe road sections increased to Beineu to Akzhigit (Uzbekistan border), and 1,447 AADT in 2016 from 1,036 AADT in Zhetybai to Fetisovo 2010. Tranche 2: Construction completed on the 3rd section of the project. Data on the traffic volume not yet available. Reduced road-user costs to $0.43/vehicle- Tranche 1: The vehicle operating cost km in 2016 from $0.64/vehicle-km in 2010 savings per kilometer for different types of freight vehicles at completion are as follows: Articulated truck = $0.37/km 3 axle truck = $0.27/km Pick-up = $0.08/km Tranche 2: Construction completed on the 3rd section of the project. Data on the reduced-user cost not yet available. Reduced travel time between Aktau and Travel time reduced by 2 hours and 45 Beineu to 6 hours in 2016 from 12 hours in minutes in 2016 from 4-5 hours in 2010. 2009 Reduced average processing time per truck Not applicable for both Tranche 1 and at border-crossing points reduced to 30 Tranche 2. This was planned for Tranche 3, minutes from 1.5 hours by 2016 of which road section is near the Akzhigit- Uzbekistan border. Risks Assessment of Current Status Inadequate funding for road maintenance and border-crossing The State continuously provides allocation for annual road points maintenance. maintenance and repairs. With the creation of KazAvtoZhol, regular road maintenance is ensured. Problem Action Taken/Proposed None. Not applicable.

247 3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Mangystau Oblast road sections improved 790 km of road sections reconstructed on Tranche 1 (200.5 km of road sections) was and open to traffic time, within budget, and with pavement IRI completed in December 2014. All roads are < 4 m/km by 2016 open to public. Tranche 2 road improvement completed in July 2020. Road open to public. MOTC's capacity for project and asset Program management unit effectively A program management unit had been management strengthened functioning by 2016 established and functioning. Computerized road management system This was undertaken in another EA's project operational by 2016 financed by World Bank in 2015. Cross-border infrastructure and facilities Facilities and infrastructure at border This was planned for Tranche 3 which was improved crossing between Uzbekistan and not processed. Kazakhstan modernized and operational by 2016 Training of officials working at border with This was planned for Tranche 3 which was Uzbekistan completed by 2016 not processed. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed MFF was proposed to finance three tranches out of which only two Tranche 1: Loan proceeds of USD131.9 million were cancelled. materialized. Out of the total MFF amount of USD800.0 million, These were savings in works contract amounts which were lower only USD457.3 million was consumed. than the engineer's estimated costs. Tranche 2: Loan proceeds of USD65.1 million were cancelled. An additional road section was approved to be included due to the savings from the two works contract amounts which were lower than the engineer's estimated cost. Tranche 3: The proposed tranche 3 was not processed as it was undertaken in another EA's project financed by the World Bank in 2015.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Budget Resources. Borrower will instruct Implemented 31-Dec-2020 MOTC to allocate routine maintenance budget in accordance with the Transport Infrastructure Development Program 2010-2014 (TIDP) and will ensure that, each fiscal year after 2012, the budget is increased by no less than annual inflation rates, provided always that sound fiscal balance is maintained. Without limiting the generality of the foregoing, Borrower will allocate and make available, on a timely basis, sufficient funds for the implementation of the TIDP and shall ensure that the road sections covered by the TIDP are maintained in accordance with applicable standards and best international practices. Such expenditures shall be audited annually, and the results will be

248 made available to ADB upon request. Road Safety. Borrower will ensure that the Implemented. 31-Dec-2020 Committee installs appropriate road safety signs and facilities during the project implementation and after completion, such as warning signs, pavement markings, road signs and signals, communication facilities, all in compliance with appropriate international conventions ratified by Kazakhstan and best industry practices. Policy Framework and Dialogue. Borrower Implemented. 31-Dec-2020 will (i) remain committed to the roadmap and the policy framework set out in schedule 1 to this FFA; (ii) maintain its Investment Program and implement the financing plan; (iii) notify ADB of any changes to the roadmap, policy framework, Investment Program, and financing plan; and (iv) consult with ADB in a policy dialogue affecting any of these elements.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Transport and Communications Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranches were processed on time. Undertakings Compliance On Track All undertakings are complied with. Tranche Performance On Track Both Tranche 1 and Tranche 2 are rated "On Track". Overall MFF Performance On Track All three parameters and criteria are "On Track". There was a delay in guardrails delivery in the early part of 2020 due to COVID-19 for Loan 2967. Guardrails delivery was completed in July 2020, allowing timely physical completion in September 2020.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

CAREC Corridor 2 (Mangystau Oblast Sections) Investment Program - Tranche 1 : Project Completion Report prepared by CWTC, CWRD

249 Mongolia

Go to List of Countries Page 39256-023 MON : Urban Transport Development Investment Program

39256-023 MON : Urban Transport Development Investment Program (as of 31 - Dec - 2020)

This report was prepared by Anand Ganbaatar and validated by Pavit Ramachandran, Mongolia Resident Mission, EARD 39256023 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 18-Sep-2012 31-Aug-2020 7.96 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 217.4 215.9 1.5 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,1 tranche/s USD 1.0 million were approved. The multitranche financing facility (MFF) is proposed as the financing modality to complete the investment program. Ulaanbaatar's urban infrastructure is growing very fast and urban transport requires a range of investment in public transport network improvement, management and planning, traffic management and safety, and institutional development. It will take the government some years to improve urban transport and develop a sustainable and efficient urban transport system. An MFF provides a suitable mechanism for ADB to provide the extended engagement and support that is needed to help improve urban transport and strengthen Ulaanbaatar's urban transport capacity. Project Description

The investment program comprises three tranches and aims to (i) develop the bus rapid transit (BRT) infrastructure and system; (ii) apply traffic management measures to increase traffic flow efficiency and safety; (iii) develop and implement parking, traffic, and travel demand management policies; (iv) develop an efficient and sustainable public transport system; and (v) improve the public transport management and quality of services. The investment program will be implemented over a period of 10 years starting in 2012. Link to the RRP of the MFF http://www.adb.org/projects/documents/urban-transport-development-investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period

251 1.0 .5% 7.96 100%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2015 2016 2017 2018 2019 2020 Total (with loan status) Urban Transport 0.0 0.1 2.7 3.1 3.2 1.0 1.0 Development Investment Program-Tranche1 (Closed(1)) Total 0.0 0.1 2.7 3.1 3.2 1.0 1.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Economic growth of Ulaanbaatar is promoted by sustainable and efficient urban transport system and services

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficient, safe, and affordable urban By 2020 In 2019, the project planned activities were transport services developed in Ulaanbaatar Bus travel time in BRT corridors is not implemented due to delays in the decreased by 30% during peak hours in the implementation. central business district compared to 2011. Traffic delay is decreased by 30% during In 2019, the project planned activities were peak hours at major road intersections in not implemented due to delays in the BRT corridors compared to 2011. implementation. Traffic accidents and casualties are reduced In 2019, the project planned activities were by 15% compared to 176 fatalities and 515 not implemented due to delays in the injuries in 2010. implementation. BRT fare is kept at the same level as bus In 2019, the project planned activities were fare and a large transfer discount is applied. not implemented due to delays in the implementation. Risks Assessment of Current Status Travel demand management measures are not implemented The project planned activities were not implemented due to delays in the implementation. Problem Action Taken/Proposed The project planned activities were not implemented due to delays On 31 January 2020, the EA submitted the request for extension of in the implementation. The current project closing date of Tranche the project closing dates until 18 September 2022 noting that the 1 was 28 February 2020. EA is committed to take the following project preparation actions in line with the project outputs:

a. recruit the skilled and qualified technical personals in the PIU; b. implement the planned project preparation activities of (i) development of BRT system DED, (ii) development ITS DED and traffic management system, (iii) development of BRT service business model, (iv) development of land acquisition and resettlement plan, (v) improving public awareness of BRT, (vi) preparation of bidding documents of civil works within the extended period;

252 c. cooperate with GOM and ADB to include the civil works funding in the Country Partnership Strategy 2021-2024 after the completion of the above activities.

The ADB project team supports the extension of the project closing date until 18 September 2022 and prepared the memo for requesting for extension of loans and grant closing dates for approval.

However, ADB management was unable to approve the request for extension of the loans and grant closing dates.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Infrastructure for BRT installation By 2017 The project executing agency (EA) developed 7.7 km of road expanded and a bridge established consultant selection committee improved for BRT corridor installation and (CSC) but has not recruited the consultant 14 km of trolleybus infrastructure are for development of detailed engineering restored along the north-south BRT design (DED). corridor. On 26 October 2017, the EA initiated the recruitment of the consultant and on 2 August 2018 ADB received the Submission 4: Draft Negotiated Contract. However, on 18 September 2018, the EA informed ADB about its intention to cancel the consulting service recruitment due to the following reasons: (i) exclusion of the East-West BRT corridor from the consulting service scope as the Ulaanbaatar 2020 Master Plan and Development Approaches for 2030 that was approved by the parliament included development of a metro system on this corridor, and (ii) combining DED of ITS with the BRT infrastructure DED to reduce the overlapping tasks.

In July 2018, the EA recruited the following two international individual consultants: (i) Public Transport (PT) Specialist and (ii) ITS Specialist in the PIU. The ITS Specialist visited Ulaanbaatar on 26 July – 1 August 2018 and PT Specialist - on 14 – 23 August 2018. After addressing the EA, PIU and ADB comments, the consultants submitted revised inception reports to the PIU on 18 October 2018 and 8 December 2018 respectively.

In November and December 2019, the EA has recruited 3 consulting firms to carry out 3 detailed engineering designs with the municipality budget. The consulting firms are preparing the detailed engineering design of (i) pedestrian crossing, (ii) two

253 1. Infrastructure for BRT installation bridges and (iii) BRT designated road developed construction works. By 2019 The project planned activities were not Three BRT bus depots are constructed and implemented due to delays in the operational and 11.1 km of trolleybus implementation. infrastructure installed in the north-south BRT corridor. By 2020 The project planned activities were not 4.6 km of road expanded and improved, implemented due to delays in the 17.2 km of trolleybus infrastructure implementation. installed and two BRT depots are constructed and operational for BRT service. 2. Sustainable, affordable, and efficient BRT By 2017 The project EA established CSC but has not system established and operationalized A north-south BRT corridor (14 km) recruited the consultant for development installed, and operational; the gender of DED. The project planned activities were mainstreaming and universal design not implemented due to delays in the features are designed and installed in all implementation. three tranches; integrated public transport fare scheme is applied in the BRT system in all three tranches; five trolleybuses and emission control equipment procured for BRT. By 2019 The project planned activities were not 27.9 km of BRT corridors are installed and implemented due to delays in the operational in the north–south, east–west, implementation. and ring roads; about 40 low-emission BRT buses and trolleybuses are procured and operational. By 2020 The project planned activities were not BRT system (22.6 km) is extended in the implemented due to delays in the east–west and ring roads; about 64 low- implementation. emission BRT buses and trolleybuses are procured and operational. 3. ITS: BMS, BIS, and e-ticketing systems By 2017 The project EA established CSC but has not developed A BMS is designed, installed, and recruited the consultant for development operational; 40% target for women’s of DED. participation in consultations on BIS and e- ticketing. With the letter of 18 September 2018, the project EA informed ADB about combining detailed engineering design (DED) of ITS with the BRT infrastructure DED to reduce the overlapping tasks.

The ADB project agreed with (i) the EA’s intention to combine the DED of the ITS and BRT infrastructure and system in one consulting package to minimize the overlapping tasks and improve the design output, (ii) revision of the consulting service scope, and (iii) new recruitment of the consultants based on the revised terms of reference (TOR) and consulting service scope.

254 3. ITS: BMS, BIS, and e-ticketing systems By 2019 The project planned activities were not developed BIS and e-ticketing system are designed, implemented due to delays in the installed, and operational (phase 1). implementation. By 2020 The project planned activities were not The ITS is expanded (phase 2). implemented due to delays in the implementation. 4. Traffic and pedestrian safety improved By 2017 To be completed. The project EA All intersections and pedestrian crossings established CSC but has not recruited the along the 14 km north-south BRT corridor consultant for development of DED. are improved. By 2019 The project planned activities were not All intersections and pedestrian crossings implemented due to delays in the along the 27.9 km (east-west, north-south) implementation. BRT corridor and 10 major intersections are improved. By 2020 The project planned activities were not All intersections and pedestrian crossings implemented due to delays in the along the BRT corridors are improved for implementation. pedestrian safety. 5. Public transport and traffic management By 2017 The Ministry of Road and Transport policies, and institutional capacity improved Policy development: Public transport Development has been preparing the draft (including gender-responsive policies), amendment to the Law on Transport, which traffic management, and clean transport includes the public transport policy policies and strategies are developed by development and organized several public MUB, and endorsed by the city parliament. consultations. Institutional capacity development: A PTC is The Governor's Office of the Capital City set up by MUB in the third quarter of 2012 (former MUB), the project EA, established and staff of MUB’s relevant departments the public transport committee (PTC) by are trained. decree No. A/633 of the Mayor of Ulaanbaatar and Governor of the Capital City dated 10 July 2018. On 28 August 2018, the PTC held its first meeting and discussed and decided several technical issues of the project. Public transport management The project EA established CSC but has not improvement: The BMS is installed and recruited the consultant for development operational, and performance-based BRT of DED. operation contract is developed and introduced. By 2019 The Governor's Office of the Capital City Public transport management improved: (GOCC) introduced e-ticketing system in BRT service tendering system is established July 2015. and the e-ticketing system is introduced and operational. By 2020 The staff of GOCC and PIU attended the Institutional strengthening in MUB: Staff of trainings and workshops organized by ADB MUB’s relevant departments are trained on financial management, procurement and (50% of trainees are female) on public safeguards. transport operation, financial management, procurement, and safeguards. 6. Investment program is managed By 2013 In 2017, the project EA established PIU and efficiently according to the schedule and The PIU is established, staffed, and recruited the PIU staff. The PIU prepares budget functional: Imprest accounts are opened and submit the project progress reports to

255 6. Investment program is managed and disbursement started according to the EA and ADB, although it is delayed. efficiently according to the schedule and schedule; the PPMS is developed and Since the establishment of the PIU, there budget operational and progress reports are have been high turn-over of staff. As of end prepared and submitted to ADB. of 2019, there were only (i) Project Coordinator, (ii) Financial Specialist and (iii) Intelligent Transport Specialist in the PIU. By 2014 On 13-14 June 2018, the consultation Subprojects for tranche 2 are identified and mission of ADB fielded to Ulaanbaatar to: (i) due diligence completed. establish contacts with relevant stakeholders for the proposed MFF Project 2 preparation; (ii) discuss MFF Project 1 implementation status, issues, and timeline; (iii) discuss proposed MFF Project 2 scope, cost estimates, and processing schedule; and (iv) agree on necessary follow-up actions. On 13 February 2019, the EA submitted the list of proposed projects to be implemented under tranche 2. Due to the slow implementation of the Tranche 1, no further developments have been taken for the Tranche 2. By 2016 Due to the slow implementation of the Subprojects for tranche 3 are identified and Tranche 1, no further developments have due diligence completed. been taken for the Tranche 3. By 2020 The project planned activities were not Construction, procurement, and implemented due to delays in the disbursement are completed as planned. implementation. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed The project planned activities were not implemented due to delays On 31 January 2020, the EA submitted the request for extension of in the implementation. The current project closing date of Tranche the project closing dates until 18 September 2022 noting that the 1 was 28 February 2020. EA is committed to take the following project preparation actions in line with the project outputs:

The ADB project team supports the extension of the project closing date until 18 September 2022 and prepared the memo for requesting for extension of loans and grant closing dates for approval.

However, ADB management was unable to approve the request for extension of the loans and grant closing dates.

256 D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Timely submission of the APFS for FY2019 Completed on 16 June 2020 and 04 August 16-Jun-2020 and 2020. 2020, respectively.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Mongolia Resident Mission, EARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk The PFR2 was originally planned for approval in 2014. However, the Parliament of Mongolia ratified the Tranche 1 in 2015 although it was approved by ADB in 2012. Due to the weak EA and PIU capacity and political instability of the government, the Tranche 1 has been prolonged. On 31 January 2020, the EA submitted the request for extension of the project closing dates until 18 September 2022 noting that the EA is committed to take the following actions in line with the project outputs: a. recruit the skilled and qualified technical personals in the PIU; b. implement the planned project preparation activities of (i) development of BRT system DED, (ii) development ITS DED and traffic management system, (iii) development of BRT service business model, (iv) development of land acquisition and resettlement plan, (v) improving public awareness of BRT, (vi) preparation of bidding documents of civil works within the extended period; c. cooperate with GOM and ADB to include the civil works funding in the Country Partnership Strategy 2021-2024 after the completion of the above activities. The ADB project team supports the extension of the project closing date until 18 September 2022 and prepared the memo for requesting for extension of loans and grant closing dates for approval. However, ADB management was unable to approve the request for extension of the loans and grant closing dates. Undertakings Compliance On Track No noncompliance has been observed. Tranche Performance At Risk Tranche 1 was rated as Actual Problem due to no contract awards and disbursement. Overall MFF Performance Potential Problem Due to the performance rating of Tranche 1, the overall MFF performance is Potential Problem. The project implementation had no impact of COVID-19 in 2020.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

257 Urban Transport Development Investment Program-Tranche1 : Project Completion Report prepared by MNRM, EARD

258 41193-014 MON : Western Regional Road Corridor Investment Program

41193-014 MON : Western Regional Road Corridor Investment Program (as of 31 - Dec - 2020)

This report was prepared by Rebecca Stapleton and validated by Sujata Gupta, Sustainable Infrastructure Division, EARD 41193014 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 9-Dec-2011 30-Jun-2021 9.56 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 170 170 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 166.4 million were approved. Project Description Link to the RRP of the MFF http://www.adb.org/Documents/RRPs/MON/41193/41193-014-mon-rrp.pdf a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approved Approval Date ADB ADB's own tranches (with Effective Date administered Overall FM CA % Disb % Safeg. Output Validated sources loan status) Closing Date sources Western 22-Dec-2011 41.4 0.0 0.94000 For 100% 100% On Track On Track Yes Regional Road 3-May-2012 On Track Attention Corridor 14-Feb-2020 Development Program - Tranche I(Closed(1)) Western 14-May-2014 125.0 0.0 0.82000 On Track 92.4488% 79.1724% For For Yes Regional Road 31-Aug-2014 For Attention Attention Corridor Attention Investment Program - Tranche 2(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 166.4 97.9% 9.06 94.8%

259 3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Western Regional 4.0 12.2 25.0 34.8 39.2 40.0 40.1 41.3 41.4 41.4 Road Corridor Development Program - Tranche I (Closed(1)) Western Regional 0.0 4.8 20.2 40.9 70.3 85.4 91.0 91.0 Road Corridor Investment Program - Tranche 2 (Active) Total 4.0 12.2 25.0 39.6 59.5 81.0 110.4 126.8 132.4 132.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Inclusive economic growth is promoted by enhanced local and regional connectivity

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Transport accessibility within the project Reduction in passenger and freight vehicle To be assessed in 2022. area and between countries improved operating costs by an average of 30% by 2020 (2010 baseline: $470 passenger/$933 freight) Travel times between Khovd and Olgiy To be assessed in 2022. reduced to about 3 hours in 2020 (2010 baseline: more than 6 hours) Traffic on improved roads increases by 40% To be assessed in 2022. by 2020 (2010 baseline: 100 vehicles per day) Routine and periodic maintenance To be assessed in 2022. performed on 743 km of western regional road by 2020 Risks Assessment of Current Status Poor maintenance practices degrade road operating performance Support the local maintenance company (i.e., procurement of maintenance equipment and conduct training) Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Western regional road constructed 293 km of road constructed on schedule, in Construction of 103.3 km road completed compliance with conditions of contracts by (Tranche 1). Construction of 189.7 km road 2020 is (a) completed for CW1-1 and CW1-2, (b) CW1-3 unable to mobilize resources for the 2020 construction season due to COVID-19

260 movement and border restrictions, and (c) CW1-4 awarded in March 2020 (Tranche 2) but no physical construction work yet due to COVID-19. 2. Local roads constructed 34.9 km of community access roads Output 2 construction ongoing for Tranche constructed by 2020 1. For Tranche 2, output 2 is partly completed. 3. Road maintenance component Establishment of 3 road maintenance units Output completed as the government set by 2020 up two maintenance centers and procured a snow removal machine (Tranche 1). Activities have not started for Tranche 2. Capacity development and training for road Relevant staff has received on-the-job maintenance crews by 2020 training 4. Capacity development program At least 10 procurement and contract For Tranche 1, output 4 completed. For management staff receive on-the-job Tranche 2, activities ongoing. training by 2014 Average duration between bid date and Completed contract awards halved, from 8 months in 2008 by 2012 Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date N/A. N/A. 12-Mar-2021

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Sustainable Infrastructure Division, EARD)

Criteria Ratings Justifications and Narratives Timeliness Potential Problem Delayed due to COVID-19 restrictions. Undertakings Compliance On Track No noncompliance has been observed. Tranche Performance Potential Problem Physical construction works delayed due to COVID-19 restrictions. Overall MFF Performance Potential Problem The border closures and movement restrictions because of COVID 19 have significantly impacted the progress of tranche 2. There was no physical progress on the project in 2020 as foreign workers were unable to mobilize. On 11 November 2020, the Government of Mongolia issued a level-3 state of emergency lockdown of Ulaanbaatar, which was partially lifted on 6 December 2020. However, on 13 December 2020, the government re-issued the level-3 state emergency lockdown. Lockdowns have continued on and

261 off through to 23 February 2021, and travel outbound from Ulaanbaatar has been banned since November 2020. Travel to and from the capital will only resume when there are no further outbreaks. As a result, contractors were not able to mobilize over the 2020-2021 winter to begin preparatory works for the bridge construction in the 2021 construction season. A request will be made for the extension of the MFF to the maximum availability period to enable the project works to be substantially completed. the COVID-19 situation and mobilization of contractors will be monitored closely.

G. Completion Reports

1. MFF Completion Report

not yet due

2. Tranche Completion Reports

Western Regional Road Corridor Development Program - Tranche I : Project Completion Report prepared by EASI, EARD Western Regional Road Corridor Investment Program - Tranche 2 : not yet due

262 45007-003 MON : Ulaanbaatar Urban Services and Ger Areas Development Investment Program

45007-003 MON : Ulaanbaatar Urban Services and Ger Areas Development Investment Program (as of 31 - Dec - 2020)

This report was prepared by Arnaud Heckmann and validated by Sangay Penjor, Urban and Social Sectors Division, EARD 45007003 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 12-Dec-2013 31-Dec-2022 11-Dec-2023 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 163.7 160 3.7 Total ($ Million) Cofinancing Sources Non-administered a 60.3 European Investment Bank Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 164.0 million were approved. The program approach aims to initiate a redevelopment process in ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and important to facilitate the movement of people and goods, develop urban corridors, and create clusters of subcenters. Better urban planning combined with a network of infrastructure along priority roads will initiate a structural change of subcenter urban fabric. This will (i) improve residents� access to basic urban services, public space, and socioeconomic facilities; (ii) support local economic development; (iii) allow residents and businesses to take advantage of urban economies; and (iv) provide better housing options. The changes in land use and higher urban density will improve water, sanitation, and heating services delivery.

Road map. Based on government and Municipality of Ulaanbaatar (MUB) priorities to redevelop ger areas, the road map for the program will support the MUB in establishing a network of well-developed subcenters to provide jobs, housing, and economic opportunities with reduced soil and air pollution. It comprises sequenced investments, municipal reforms, and capacity building (policy, planning, and monitoring), with four strategic objectives: (i) expand roads and basic urban services (water, sewerage, and heating) within subcenters and improve connectivity to initiate land use transformation; (ii) increase economic and public services through investments in socioeconomic facilities to meet population needs, increase urban functions, and encourage job creation; (iii) increase service provider efficiency by Project Description improving water supply, sewerage, and heating service operations; and (iv) strengthen institutions and capacity by improving urban planning and subcenter development, community awareness, participation and empowerment, service provider operations and management, and program implementation capacity.

Strategic context and sector policy. In February 2013, Parliament approved the Adjustments to the Ulaanbaatar City Urban Development Master Plan 2020 and Development Directions 2030. The master plan produced two important outcomes: (i) integration of ger area development into the city master plan, and (ii) acknowledgement of the value and function of ger area subcenters as key elements of future city growth. The MUB is developing the Ger Area Development Program and established a Ger Area Development Agency, supervised by the vice mayor in charge of urban development and investment. On 30 May 2013, the city council resolution No.10/38 endorsed the program, subcenter locations under project 1, and coordination of the investment program with the city master plan. The MUB proposed a special purpose development vehicle (subcenter redevelopment authority) to facilitate, supervise, and coordinate the redevelopment process of the selected subcenters. In addition, the Ministry of Economic Development�s Street Project is to improve road conditions in Ulaanbaatar and includes a ger area component. The National Development Strategy and the New Reconstruction Midterm Program (2008�2016) constitute the national framework for program implementation. The program is consistent with the Asian Development Bank (ADB) country partnership strategy, 2012�2016

263 for Mongolia; ADB�s Strategy 2020 priorities, including environmental sustainability and private sector development; as well as the core themes of green, competitive, and inclusive cities of ADB�s Urban Operational Plan.

Policy dialogue and capacity development. To supplement the strong policy framework, policy dialogue and capacity development will focus (i) in communities, on community participation, awareness, and empowerment, including design and implementation of the social and gender action plan; and establishment of community development councils (CDCs) and small- and medium-sized enterprise (SME) development councils (SDCs); (ii) in subcenters, on subcenter upgrading, including technical guidance for preparing and implementing local development plans, urban zoning regulation and construction standards, and a development framework with a transparent mechanism to regulate land redevelopment insuring current residents are integrated in the redevelopment plan; and (iii) in the city, on the master plan through ongoing ADB technical assistance to strengthen urban planning capacity. Capacity development for water and wastewater utilities will target (i) improving the MUB and USUG management contract, (ii) defining a clearer tariff road map, and (iii) providing technical support to the Water and Sewerage Regulatory Commission. For heating, the focus will be to ensure financial sustainability and capacity of new and existing heating facilities operators in the selected subcenters and to strengthen provisions in management contracts.

Financing modality. An MFF is the proposed financing modality to promote a long-term partnership between ADB, the government, and the MUB to facilitate the development of sustainable, inclusive, and livable ger areas. The MFF will support the policy framework for the redevelopment of ger areas, and provide opportunities for constructive dialogue and capacity development on city planning, policy reforms, and physical and nonphysical investments. It will generate critical mass, predictability, and continuity for basic urban services provision in ger areas, and enable ADB to better respond to MUB needs.

Development coordination. In preparing the program, ADB coordinated closely with development partners involved in Ulaanbaatar�s urban sector. Three ADB-financed projects will directly support the program: (i) a bus rapid transit line from the city center to Selbe subcenter; (ii) support for housing and micro-, small-, and medium-sized enterprise financing in ger areas targeted by the program; and (iii) capacity development technical assistance to strengthen MUB urban planning capacity. http://www.adb.org/projects/documents/ulaanbaatar-urban-services-and-ger-areas-development- Link to the RRP of the MFF investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources Ulaanbaatar Urban 17-Dec-2013 47.9 3.7 0.94000 On 100% 96.1157% For On Track Yes Services and Ger 24-Sep-2014 On Track Track Attention Areas 21-Nov-2019 Development Investment Program - Tranche 1(Active) Ulaanbaatar Urban 31-Mar-2017 67.9 0.0 0.88000 On 85.1693% 100% On Track For Yes Services and Ger 14-Mar-2018 For Track Attention Areas Attention Development

264 Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources Investment Program - Tranche 2(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 164.0 100.2% 7.05 70.5%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Ulaanbaatar Urban 3.0 3.3 6.8 10.4 17.6 30.5 41.3 41.3 Services and Ger Areas Development Investment Program - Tranche 1 (Active) Ulaanbaatar Urban 0.0 10.0 14.4 14.4 Services and Ger Areas Development Investment Program - Tranche 2 (Active) Total 3.0 3.3 6.8 10.4 17.7 40.4 55.7 55.7

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved living conditions in Ulaanbaatar

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets A network of livable, competitive, and % of population with improved access to 158 households connected to water inclusive subcenters in Ulaanbaatar's ger water, sanitation, and heating increased to network, and 102 households connected to (yurt or traditional tents) areas 50% (in targeted areas) sewer network. Additionally, 720 households outside of target subcenter (from new heating pipelines from extension to Bayankhoshuu subcenter) is connected to central heating system. Average density in targeted subcenter No change in average density in target increased to 120 persons per ha subcenters. Number of business establishments No change in number of business increased by 30% establishments. Unit production cost of water reduced by Unit production cost of water is MNT1,139

265 A network of livable, competitive, and 50% (in MNT/cubic meter) per m3, reduced by 80.8%. Electricity inclusive subcenters in Ulaanbaatar's ger consumption for water production reduced (yurt or traditional tents) areas from 69 kW (2012) to 65 kW in 2019 per m3. Risks Assessment of Current Status 1. Insufficient time and resources are devoted to community To be closely monitored. mobilization. 2. Lack of private sector participation. Problem Action Taken/Proposed None Not applicable

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Roads and urban services are expanded 18.6 km of water supply network, 20.0 km In tranche 1 subcenters: within the targeted subcenters and of sewer network, and 6.0 km of collector Sewerage collector mains 8.5 km and connectivity between subcenters is mains constructed rehabilitation of 0.5 km collector main are improved completed. Ongoing works – 16.4 km water supply network, 13.5 km sewer network, 12.7 km extension of water supply main completed. Five heating facilities, 21 km of heating 9.7 km parallel (19.4 km) heating supply network pipes, and 2.4 km of heating main extension is completed. Ongoing service connections constructed works - 1 heating facility progress 78.63% complete, and heating network pipes 9.9 km completed. 15 km of carriageway and 7.9 ha of 60m, 30m, and 24m bridges, 8.2 km power landscaping and public space including supply cable, 5.4 km telecommunication universal design features such as sidewalk, cable are completed. 7.66 ha landscaping lighting, and sitting progress 82.96% completed. 13.4 km carriageway progress 78.6% completed. Water supply, sewer lines, urban roads, and Not yet due. heating constructed in 132 ha in 6 subcenters Improvements and construction of Not yet due (total length of the road is respectively 14.8 km and 9.5 km of under discussion due to the resettlement connecting roads impact the alignment has changed. The development of the detailed design is in the final stage. 2. Economic and public services in At least 5,000 beneficiaries, 50% of whom Vocational training facility has not yet subcenters are improved are women, receive vocational training started. Constructed social facilities based on 2 social facilities completed under Tranche community needs fully staffed and 1 are fully staffed and one is operational. operational in participating subcenters 3. Service providers become more efficient Water supply network pumping system is Water supply network pumping system is improved improved with total of 7 pumps renewed; 4 under Tranche 1. Distribution system is optimized; Operation Distribution system is fully optimized with Control Centre is upgraded and expanded newly installed 30 new flow metering control points and 43km of optic fiber cables.

266 3. Service providers become more efficient Operation control center with SCADA system is fully upgraded and operational. USUG can now control more than 70 control and metering points. 4. Institutions and capacity for urban Six CDCs and SDCs fully functioning in As of 2019, khoroo level 8 CDCs were fully development, program management, and targeted areas, with at least 40% women functional (3 in Selbe and 5 in service delivery are strengthened participating actively (baseline: CDCs Bayankhoshuu) with 48% women active 4.1 Subcenter development and community established only in Bayankhoshuu and Selbe participation; 1 fully functional SDC in engagement in 2012) Bayankhoshuu with 61.1% women active 4.2 Operations and management of service participation and 2 SDCs in Selbe. The full providers improved assessment of NGOs and primary groups 4.3 Strengthened program implementation has started under Tranche 2 and capacity reactivation measurements will follow once the assessment is fully done. Subcenter plans are prepared and endorsed Subcenter development plan including by all the stakeholders through community redevelopment process was prepared, with consultation including at least 50% of 58% women participants completed in 2018. women participants Based on the installed trunk infrastructure capacity LDPs are being updated with further development of subcenter. The subcenter development program which will be an umbrella document for subcenters development is pending for approval. USUG is autonomous in terms of financial 2018 operations loss before tax - and asset management (baseline: USUG not MNT16,583.90 million; after tax - loss of autonomous) MNT17,073.70 million.

Upon completion of consulting service for improved operations and management of service providers and institutional and regulatory reform in Q1 2021, the indicators are to be assessed. Utility tariffs linked to direct cost recovery 2018 average utility tariff for water of O&M, including asset depreciation MNT1,227.28/m3 for wastewater (baseline: tariffs barely cover O&M) MNT855.83/m3. Revised performance contract between the 2018 - total of 4 contracts established with MUB and service providers in place service providers.

Upon completion of consulting service for improved operations and management of service providers and institutional and regulatory reform in Q1 2021, the indicators are to be assessed. PMO is fully functioning with fully trained As of 31 Dec 2020, PMO has 26 full time staff, at least 30% of whom are women staff and 31% are women. Sex-disaggregated program performance Program performance and monitoring and monitoring system operational system is operational. Project feasibility studies, due diligence, and Completed for all tranches. safeguards prepared for participating subcenters Risks Assessment of Current Status 1. Rising world prices of energy and construction materials To be closely monitored. significantly increase the program's investment and operation and maintenance costs.

267 2. Inappropriate vocational training courses are provided. 3. Demand for commercial facilities is lacking. 4. The MUB fails to provide adequate subsidies to augment shortfalls of revenues. 5. Program implementation is slowed down by lack of community and private sector participation. 6. Women are not effectively mainstreamed into the program. 7. Inadequate program resources are allotted to support the policy and institutional reforms. 8. Lack of incentives to attract private sector participation. 9. Failure to appoint and retain well qualified and experienced consultants. Problem Action Taken/Proposed None Not applicable

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date All undertakings and loan covenants are Being implemented. 11-Dec-2023 being complied with, complied with, and some are not yet due. The road map strategic objectives are still relevant to the program and are fully in line with tranche outputs and components. Activities and policy framework linked to the road maps are complied with, being complied with, or to be complied with. No significant deviance from the road map and policy framework is recorded.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Extension of MFF Availability Period 06-Apr-2020 Extension of availability period by 11.3 (President approved) months until 11 Dec 2023. Minor 12-Nov-2020 Minor change in implementation arrangements for additional goods packages and to include Goods category in the allocation table including reallocation of loan proceeds for Loan 3099-MON(COL).

F. MFF Performance Ratings (Rated by Urban and Social Sectors Division, EARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk All tranches were approved as of June 2020. However, the latest tranche was approved (26 Jun 2020), 3 years after the year projected in the RRP (2017). Undertakings Compliance On Track All undertakings and covenants are being complied with (except for those which are not yet due). Tranche Performance Potential Problem Tranche 1 is "on track"; Tranche 2 is "for attention"; and Tranche 3 was signed on 30 Dec 2020 but not yet effective. Overall MFF Performance Potential Problem Tranche 1 is rated on track and all activities to be completed

268 before the 30 June 2021 closing date. However, Tranche 2 is rated "for attention" because of delays encountered mainly due to (i) lengthy detailed design completion process for Tranche 2 subcenters infrastructure due to slow decision making process by the related agencies regarding power and district heating solutions; (ii) MUB budget shortage due to COVID-19 economic impact, especially regarding budget related to resettlement compensation that was not available for Tranche 2, which delayed the entire resettlement process; and (iii) COVID-19 impact on community consultation meetings related to resettlement which also delayed the finalization of detailed design of Tranche 2 infrastructure and facilities.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

269 49173-003 MON : Improving Access to Health Services for Disadvantaged Groups Investment Program

49173-003 MON : Improving Access to Health Services for Disadvantaged Groups Investment Program (as of 31 - Dec - 2020)

This report was prepared by Najibullah Habib and validated by Sangay Penjor, Urban and Social Sectors Division, EARD 49173003 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 11-Oct-2019 31-Mar-2029 9.47 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 161.82 158.34 3.48 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,1 tranche/s USD 79.6 million were approved. The investment program will reinforce past and ongoing sector reforms by expanding and improving access to quality primary and secondary health services in disadvantaged areas of Ulaanbaatar ger Project Description [traditional tent] areas, in Khovd and Uvs aimags (provinces), and selected soums (aimag subdistricts). It will also improve the health financing systems and reduce out-of-pocket health care expenses nationwide. Link to the RRP of the https://www.adb.org/projects/documents/mon-49173-003-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 79.6 49.2% 1.22 12.9%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2020 Total (with loan status) Improving Access to 0.6 0.6 Health Services for

270 Approved Tranches 2020 Total (with loan status)

Disadvantaged Groups Investment Program - Tranche 1 (Active) Total 0.6 0.6

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Health status of Mongolians improved

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Access to affordable quality primary and 96,000 persons per year from Khovd aimag, To be assessed at completion. No change in secondary health services in Khovd and Uvs Ulaanbaatar ger areas, and selected aimags targets. aimags (provinces), Ulaanbaatar ger use gender and client-friendly expanded (traditional tent) areas, and selected soums PHC services (aimag subdistricts) improved 130,000 persons per year use improved To be assessed at completion. No change in quality district hospital and aimag general targets. services, including modern obstetrics and gynecology, and surgery departments 20% of health services funding under the To be assessed at completion. No change in state budget is contracted by the HIO targets. Risks Assessment of Current Status Economic downturn prevents investments and allocation of To be closely monitored. sufficient operational funds in the health sector Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Urban and rural primary health care 10 new gender and client-friendly FHCs with Not yet started. strengthened expanded services established in Ulaanbaatar 6 new gender and client-friendly SHCs Not yet started. established in selected aimags Integrated primary and secondary care Not yet started. models in at least 5 districts of Ulaanbaatar and 10 aimags implemented National emergency care system established Not yet started. in Ulaanbaatar and aimags Low-carbon technology installed in 1 Not yet started. hospital, 1 SHC, and 1 FHC District and aimag hospital services A new model district hospital with a gender To be initiated under Tranche 2. improved perspective established in Chingeltei district

271 District and aimag hospital services of Ulaanbaatar improved The Khan-Uul district hospital of Not yet started. Ulaanbaatar established, upgraded, and expanded to include surgery, obstetrics and gynecology; and other disciplines; and out- and inpatient departments functionally linked The Khovd aimag hospital established, Not yet started. including a new diagnostic and treatment center 50% aimag and district hospitals operating Not yet due. autonomously, in line with agreed management systems At least 50% of hospital management staff, To be monitored once consultants are of which 50% are women, reporting new engaged. skills in hospital management improved At least 80% of family doctors and other To be monitored once consultants are relevant staff, of which 50% are women, engaged. reporting on new knowledge, awareness, and response on gender-based violence improved Cost-effective, low-carbon emission energy Not yet started. sources installed in at least one hospital, one SHC, and one FHC Health financing system strengthened An integrated strategic purchasing model Terms of reference (TOR) for CS07: established involving HIO, MOF, MOH, and consulting services for establishment of local governments based on issued strategic purchaser model is being reviewed regulations prior to advertisement. The consulting services aim to support the MOH and other key stakeholders (the MOF, Ministry of Labor and Social Protection, HIO) on their efforts to further develop the strategic purchaser of health care system in order to promote outcome/results-based financing of health care services and improve both quality and efficiency in health care provision. The HIO’s management system is Not yet due. strengthened, including fund management, contracting, contract management, costing, and quality monitoring of health services At least 80% of HIO, MOH, and MOF staff, of Not yet due. which 50% are women, reporting on skills in stewardship, planning, and purchasing improved Procurement and financial management At least 50% of MOH staff have capacity in Terms of reference (TOR) for CS08: capacity of government health entities procurement, financial, and risk consulting services for strengthening strengthened management procedures improved capacity agencies' procurement, financial contract management capacities is still being reviewed prior to advertisement. The consulting service will support central and decentralized structures of the MOH, GPA, UCHD, and Khovd and Uvs aimag health

272 departments with the implementation of related financial, procurement, and contract management processes. Risks Assessment of Current Status Changes in administrative procedures delay approval of budget for The current environment for significant health financing reform in health sector reform (outputs 1 and 2) Mongolia has been facilitated by the approval of amendments to Delays in implementing output-based contracting with HIO the Medical Services Law, Health Insurance Law, Medicine and (outputs 3 and 4) Medical Devices Law which were approved by the Mongolian Parliament in August 2020. The amendments are reflected in the 2021–2022 Budget Law which was approved on 12 November 2020. The Government of Mongolia has now committed to establish the single purchaser system, which integrates both the state fund and health insurance fund into a single resource pool, coming into effect in January 2021. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date All loan covenants are being complied with, Being implemented. 31-Mar-2029 or to be complied with, and some are not yet due.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Urban and Social Sectors Division, EARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 1 approved on 24 Oct 2019 and became effective on 4 March 2020. Start-up activities were significantly delayed due to disruptions caused by the COVID-19 pandemic but there has been good progress in the implementation arrangements for the project. The project implementation unit staff are in place and the advance account have been created in 2020. Bi-monthly meetings are being conducted with the PIU team to closely monitor the implementation activities. Recent changes in Government leadership are not anticipated to cause significant delays. Undertakings Compliance On Track FFA undertakings are being complied with. Tranche Performance On Track No "Potential Problem" or "At Risk" rating. Overall MFF Performance On Track Based on the above, MFF 0111-MON is on track. Tranche 1 start-up activities were significantly delayed due to disruptions caused by the COVID-19 pandemic but there has been good progress in the implementation arrangements for the project. The project implementation unit staff are in place and the advance account have been created in 2020. Consultant recruitment were initiated in Q4 2020. Virtual

273 inception mission was fielded on 2-7 September 2020 and the next review mission is tentatively scheduled in May 2021. Bi-monthly meetings are being conducted with the PIU team to closely monitor the implementation activities. Recent changes in Government leadership are not anticipated to cause significant delays.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

274 Pakistan

Go to List of Countries Page 37192-013 PAK : MFF - Power Transmission Enhancement Investment Program

37192-013 PAK : MFF - Power Transmission Enhancement Investment Program (as of 31 - Dec - 2020)

This report was prepared by Ehtesham Khattak and validated by Fumiko Kawawaki, Pakistan Resident Mission, CWRD 37192013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 12-Dec-2006 30-Jun-2021 14.55 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 882.5 800 82.5 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,4 tranche/s USD 595.0 million were approved. The Investment Program will finance investments and accordingly support social and economic prosperity and growth. The inadequate supply of electricity has become a bottleneck for economic growth, affecting all consumer groups and social classes. The investment program will address current bottlenecks, improve future performance, and increase efficiency and effectiveness through technical and non-technical improvements. Project Description

Furthermore, the Investment Program will encourage energy efficiency improvements and developments, as well as provide institutional capacity for (i) implementation and monitoring support, and (ii) project preparatory activites for both the Investment Program's subprojects and other NTDC undertakings. Link to the RRP of the https://www.adb.org/sites/default/files/project-document/66693/37192-pak-rrp.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 595.0 67.4% 14.05 96.6%

276 3. Cumulative Disbursements (in $ million)

Approved Tranches 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Power Transmission 0.2 52.9 72.7 104.1 117.2 131.4 132.0 132.3 132.6 132.7 133.0 133.0 Enhancement Investment Program Tranche 1 (Closed(1)) Power Transmission 21.4 55.1 70.3 92.4 132.9 149.1 155.7 156.8 156.8 Enhancement Investment Program Tranche 2 (Closed(1)) Power Transmission 0.2 0.5 14.0 38.2 144.3 164.1 164.1 Enhancement Investment Program Tranche 3 (Closed(1)) Power Transmission 0.3 43.2 67.1 110.5 114.9 118.6 118.6 Enhancement Investment Program Tranche 4 (Active) Total 0.2 52.9 94.2 159.2 187.5 224.0 265.4 295.4 326.9 477.0 364.2 110.5 114.9 118.6 572.6

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved power transmission infrastructure and management.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Reliable and quality power transmitted in Full compliance with grid code and Compliant with Grid Code and Transmission PAK and service coverage expanded. transmission license by 2012 (baseline: License. Project closed and actual noncompliant in 2005). achievements are to be assessed in project completion report to be completed by Q4 2022. 10,500 GWh of additional power annually 12,808 GWh of additional power annually supplied through the grid by 2015 (baseline: supplied through the Grid by 2018 as per 55,278 GWh in 2005). NTDC's Annual Report 2018. Project closed and actual achievements are to be assessed in project completion report to be completed by Q4 2022. Transmission losses reduced from 7.63% in Transmission line losses reduced to 2.43% in 2005 to 5.5% in 2015. FY 2017-18 as per NEPRA State of Industry Report 2018. Project closed and actual achievements are to be assessed in project completion report to be completed by Q4 2022. Risks Assessment of Current Status Highly politicized power wheeling charges set. Annual wheeling charges petitions are prepared/submitted by

277 NTDC, and approved by NEPRA. Problem Action Taken/Proposed No Problems. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Transmission networks improved through At least 200 km of new transmission lines 543km transmission lines including rehabilitation, augmenetation and constructed and operational (50 km by 500/220/132 kV has been added through expansion of systems. 2012 and another 150 km by 2016) Tranche 1 & 2 by 2016. 115km 220 kV transmission line was added through Tranche 3 in 2018 and to be validated through PCR to be published in Q3 2020. Achievements from T4 to be assessed and validated in PCR to be published in Q4 2022 as project is already closed. At least 20 new substations added to the 8 substations added to network through network by 2016 Tranche 1, 2 and 3. Achievements from T4 to be assessed and validated in PCR to be published in Q4 2022 as project is already closed. Capacity of at least 20 substations increased 24 substations increased capacity through through extension and augmentation of extension and augmentation works by 2018. transformers Achievements from T4 to be assessed and validated in PCR to be published in Q4 2022 as project is already closed. NTDC operations and management NTDC's capacity in project management Capacity of NTDC is improved by strengthened. and implementation improved establishment of dedicated ADB PMU and dedicated staff being placed in PMU. At least 50 NTDC staff (M/F) are trained and More than 50 NTDC Staff being trained time engaged in system planning and to time for system planning and programming programming by consultants. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed No Problems. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date There is no specific undertaking for Being complied with. 31-Dec-2020 enhancing the road map and enabling environment for the sector under the investment program.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Extension of MFF Availability Period (Board 30-Nov-2016 An extension of the availability period of approved) the multitranche financing facility (MFF) for the Power Transmission Enhancement Investment Program in Pakistan. The 3-year

278 extension from 31 December 2016 to 31 December 2019 was to help complete the project under the fourth tranche under cofinancing with AFD.

F. MFF Performance Ratings (Rated by Pakistan Resident Mission, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track All tranches being timely processed and approved. Undertakings Compliance On Track Compliance to loan covenants and project agreements are done on time. Tranche Performance On Track All tranches implementation are on track. Overall MFF Performance On Track NTDC is becoming more capable of procurement after the establishment of the PMU. MFF overall performance is on track. MFF is closed on 31 December 2019 and AFD has extended their loan till 1 May 2020. Loan closed already with winding up period ended on 1 August 2020. ADB financial closure is in process with CTL and will be completed by Q1 2021. Project completion report (PCR) is expected to be completed by Q4 2022.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Power Transmission Enhancement Investment Program Tranche 1 : Project Completion Report prepared by PRM, CWRD Power Transmission Enhancement Investment Program Tranche 2 : Project Completion Report prepared by CWEN, CWRD Power Transmission Enhancement Investment Program Tranche 3 : Project Completion Report prepared by PRM, CWRD

279 47190-002 PAK : Second Power Distribution Enhancement Investment Program

47190-002 PAK : Second Power Distribution Enhancement Investment Program (as of 31 - Dec - 2020)

This report was prepared by Adnan Tareen and validated by Joonho Hwang, Energy Division, CWRD 47190002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 20-Nov-2015 30-Jun-2024 8.61 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 990 990 0 Total ($ Million) Cofinancing Sources Non-administered a 200 To be determined; To be determined Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,1 tranche/s USD 400.5 million were approved. The investment program aims to improve the financial viability of Pakistan's power distribution sector. By introducing advanced metering infrastructure (AMI) to power distribution companies (DISCOs) throughout Pakistan, the investment program would (i) reduce power distribution losses, and improve Project Description revenue collection; (ii) reduce power outages by enhancing load control and load management; (iii) provide automated power consumption data; (iv) modernize the electricity metering and billing system; and (v) improve customer services by installation of customer information system. The rollout of the AMI across various DISCOs will be in phases via tranches through a multi-tranche financing facility (MFF). Link to the RRP of the http://www.adb.org/projects/documents/pak-mff-second-power-distribution-enhancement-investment- MFF program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 400.5 40.5% 5.12 59.5%

3. Cumulative Disbursements (in $ million)

280 Approved Tranches 2017 2018 2019 2020 Total (with loan status)

Second Power 0.4 1.0 1.6 2.2 2.2 Distribution Enhancement Investment Program - Tranche 1 (Active) Total 0.4 1.0 1.6 2.2 2.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Financial viability of the power distribution sector improved (program-defined).

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Electricity revenues increased in the Nationwide distribution network losses Due to delay in Tranche 1 implementation targeted regions. reduced from 18.9% in 2013 to 11% in 2024. which is also withholding processing of subsequent tranches, achieving 100% target will be challenging. After suspending Tranche 1 implementation in Jan 2018, govt decided to proceed with the program and Tranche 1 in Nov 2018. Contract awards for the advance meters are projected in 2021. Revenue collection increased in the Due to delay in Tranche 1 implementation targeted DISCOs from 89.6% in 2013 to 95% which is also withholding processing of in 2024. subsequent tranches, achieving 100% target will be challenging. After suspending Tranche 1 implementation in Jan 2018, govt decided to proceed with the program and Tranche 1 in Nov 2018. Contract awards for the advance meters are projected in 2021 Load shedding (power blackouts) Due to delay in Tranche 1 implementation eliminated in the targeted regions of which is also withholding processing of DISCOs from year 2024 onward (2013 subsequent tranches, achieving 100% target baseline: up to 12 hours a day in urban will be challenging. After suspending areas and 18-20 hours a day in rural areas). Tranche 1 implementation in Jan 2018, govt decided to proceed with the program and Tranche 1 in Nov 2018. Contract awards for the advance meters are projected in 2021 Risks Assessment of Current Status Customers of DISCOs resist subsidy reduction and tariff increase Risk not yet occurred, and will continue to be monitored. and stop payments for consumption. Problem Action Taken/Proposed After delayed loan effectiveness for Tranche 1, the Government Following consultations with the ADB, including during the review suspended implementation and was considering to cancel Tranche mission in Oct 2018, the government decided to proceed with 1 and the program in January 2018. MOF put the decision to program implementation in Nov 2018. Contract awards for the continue with the program on hold until the new government is in advance meters are projected in 2021. office in August 2018. Tranche 2 processing is linked to achieving substantial progress of Processing of subsequent tranches is stalled. Tranche 1. The MFF availability period may need to be extended. 281 3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Smart meters and communication About 6 million customers and all Achieving 100% target will be challenging. equipment installed and functional substations in the targeted regions of Only Tranche 1 ongoing so far, which covers DISCOs are operating with smart meters by two DISCOs (IESCO and LESCO) with AMI 2024 contracts projected in 2021. After suspending program implementation in Jan 2018, govt decided to proceed with the program in Nov 2018. Communication infrastructure Achieving 100% target will be challenging. commissioned in the targeted regions of Only Tranche 1 ongoing so far, which covers DISCOs by 2024 two DISCOs (IESCO and LESCO) with AMI contracts projected in 2021. After suspending program implementation in Jan 2018, govt decided to proceed with the program in Nov 2018. New billing system and CIS implemented Billing system and CIS implemented and Target still feasible but delayed. Only and operational operational in the targeted regions by 2024 Tranche 1 ongoing, which covers two DISCOs (IESCO and LESCO). AMI contracts projected in 2021. After suspending program implementation in Jan 2018, govt decided to proceed with the program in Nov 2018. Target deferred from 2019 to 2024 after Loan 3328 was extended. 3000 personnel trained on billing system Target still feasible but delayed. Only and CIS by 2024 Tranche 1 ongoing, which covers two DISCOs (IESCO and LESCO). AMI contracts projected in 2021. After suspending program implementation in Jan 2018, govt decided to proceed with the program in Nov 2018. Target deferred from 2019 to 2024 after Loan 3328 was extended. Meter data management system Database and data management system Target still feasible but delayed. Only implemented and operational developed and operational in the targeted Tranche 1 ongoing covering 2 DISCOs regions by 2024 (IESCO and LESCO). After suspending program implementation in Jan 2018, govt decided to proceed with the program, including procurement for Tranche 1, in Nov 2018. 700 personnel trained on data collection Achieving 100% target will be challenging. and data management system by 2024 Only Tranche 1 ongoing covering 2 DISCOs (IESCO and LESCO). After suspending program implementation in Jan 2018, govt decided to proceed with the program, including procurement for Tranche 1, in Nov 2018. Operations manual updated and monitoring Manual for theft detection updated by 2024 Target still feasible -- manual update in procedure improved. TOR of PICs for IESCO and LESCO under Tranche 1. After suspending program implementation in Jan 2018, govt decided to proceed with Tranche 1 and the program, including consultant recruitment,

282 Operations manual updated and monitoring in Nov 2018. Target deferred from 2017 to procedure improved. 2024 after Loan 3328 was extended. Operational procedures for M&I unit Target still feasible -- manual update in updated, testing laboratories upgraded, and TOR of PICs for IESCO and LESCO under staff capacity on AMI developed in various Tranche 1. After suspending program DISCOs by 2024 implementation in Jan 2018, govt decided to proceed with Tranche 1 and the program, including consultant recruitment, in Nov 2018. govt decided to proceed with the project, including consultant recruitment, in Nov 2018. Target deferred from 2022 to 2024 after Loan 3328 was extended. Risks Assessment of Current Status None. Problem Action Taken/Proposed Program delayed after govt suspended program implementation in Govt decided to proceed with program implementation, including Jan 2018. procurement for Tranche 1 in Nov 2018. Close coordination with IESCO and LESCO is ongoing to award contracts for advance meters in 2021.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date FFA Schedule 6, para 2: In the event of any Being implemented. 30-Jun-2024 change in the road map, policy framework, Investment Program, or financing plan described in Schedule 1, Pakistan and ADB will assess the potential impact of the change on the Facility and consider a change in scope, amendment, or continuation of the Facility as appropriate. FFA Schedule 6, para 3: Pakistan shall Being implemented. 30-Jun-2024 ensure and cause MOWP and the DISCOs to ensure that ADB is kept informed of the Government's policies and programs related to the power sector, particularly those that relate to the power distribution sector, tariff rationalization, or any policy or program that could materially affect the financial viability of the DISCOs or any tranche under the Facility. FFA Schedule 6, para 5: Pakistan shall cause Being implemented. 30-Jun-2024 the DISCOs to submit tariff petitions as required to maintain the DISCOs' financial viability. Pakistan shall ensure that, following any tariff determination by the National Electric Power Regulatory Authority, the Government notifies the tariff determination promptly and, in any case, by the dates prescribed by applicable law. Pakistan shall ensure that any and all tariffs formulated for the DISCOs are adequate to cover the operating costs, maintenance, depreciation and financing

283 costs of the DISCOs and allow an acceptable return on their equity. FFA Schedule 6, para 6: Pakistan shall Being implemented. 30-Jun-2024 ensure that the DISCOs preserve their legal, operational, and financial autonomy and, further, that the Board of Directors of each DISCO operates effectively and fully discharges its fiduciary responsibilities in accordance with the Memorandum and Articles of Association of the DISCO.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Energy Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness At Risk The Government identified the DISCOs to be covered under Tranche 2 (HESCO, MEPCO and PESCO) in October 2017. After the suspension and procurement delays of Tranche 1 and discussions with ADB, the government proposed covering HESCO, PESCO and SEPCO and aerial bundled cables under Tranche 2. Tranche 2 preparation has been withheld subject to progress of Tranche 1 which is still in procurement stage. As per RRP, Tranche 2's estimated approval date was November 2016. The MFF availability period may need to be extended to complete Tranches 1 and 2. Undertakings Compliance On Track Undertakings are being implemented as scheduled. Tranche Performance At Risk Only Tranche 1 is ongoing, which has At Risk rating due to unmet contract award and disbursement projections. After suspending project implementation and procurement delays, contract awards for the advance meters for IESCO and LESCO are projected in 2021, after which the project will be rated For Attention. The project can become On Track when disbursements catch up with projections. Overall MFF Performance Potential Problem MFF is rated Potential Problem, with only one criterion rated On Track.

COVID-19 caused some delays to Tranche 1 implementation, particularly on procuring the advance meters. Travel restrictions and office closures slowed down activities by the government, consultants assisting in bid evaluations, and ADB. Work-from-home arrangements allowed all parties to continue operations.

G. Completion Reports

1. MFF Completion Report not yet due

284 2. Tranche Completion Reports not yet due

285 48078-002 PAK : Second Power Transmission Enhancement Investment Program

48078-002 PAK : Second Power Transmission Enhancement Investment Program (as of 31 - Dec - 2020)

This report was prepared by Ehtesham Khattak and validated by Fumiko Kawawaki, Pakistan Resident Mission, CWRD 48078002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 23-Aug-2016 23-Aug-2026 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 814 810 4 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,3 tranche/s USD 625.2 million were approved. The objective of the proposed multitranche financing facility (MFF) is to improve Pakistan's power transmission infrastructure and management. To achieve this objective, the investment program includes: (i) staged physical investments in the transmission system to increase transmission capacity, Project Description improve efficiency and energy security, and evacuate additional sources of power; and (ii) nonphysical investments to support institutional efficiency, cost recovery, competition, transparency and good governance within the sector. Link to the RRP of the MFF https://www.adb.org/projects/documents/pak-second-pteip-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources Second Power 31-Aug-2016 81.2 0.0 0.88000 For 75.0224% 100% On On Yes Transmission 24-Feb-2017 For Attention Track Track Enhancement Attention Investment Program - Tranche 1(Active) Second 29-Sep-2017 260.0 0.0 0.54000 On Track 68.0044% 80.3316% At On Yes PowerTransmission 4-Apr-2018 At Risk Risk Track Enhancement Investment Program - Tranche 2(Active) MFF Power 28-Jun-2018 280.0 4.0 0.54000 For 16.8111% 11.6064% On On Yes Transmission 25-Feb-2019 At Risk Attention Track Track Enhancement Investment Program II Tranche 3(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 625.2 76.8% 4.36 43.6%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2017 2018 2019 2020 Total (with loan status) Second Power 0.9 15.1 30.0 44.5 44.5 Transmission Enhancement Investment Program - Tranche 1 (Active) Second 7.6 15.4 53.8 53.8 PowerTransmission Enhancement Investment Program - Tranche 2 (Active) MFF Power 1.6 11.3 11.3 Transmission Enhancement Investment Program II Tranche 3 (Active) Total 0.9 22.8 47.0 109.6 109.6

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Energy market transparency and efficiency improved

Transmission infrastructure and management improved.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Coverage reliability and quality of the 5 GW of additional peak power supplied Procurement in upgrading transmission power transmission service in Pakistan (metered) through the grid by 2026 capacity is ongoing. As of 2020, 1.76 GW of improved. (baseline: 22.9 GW in 2015). additional peak power supplied reference NEPRA State of Industry Report 2020. Transmission losses reduced to less than Transmission losses reduced to 2.76% in 2.5% in 2026 (2013 baseline:2.92%). 2020 as per latest NEPRA State of Industry Report 2020. Full compliance with NEPRA Performance Compliance with NEPRA Performance Standards Transmission Rules - 2005 by Standards Transmission Rules is ongoing 2026. and is complied with. Full compliance with Transmission License Compliance with Transmission License and and Grid Code by 2026. Grid Code is ongoing and is complied with. Risks Assessment of Current Status Delayed progress on policy, regulatory and institutional reforms. Still valid given current political situation.

287 Power demand does not continue to grow by at least 4.5% annually Still valid given present economic situation. or grows by more than 7% annually. Still valid given non-availability of power imports. Power supplies and imports are not increased to meet demand. Problem Action Taken/Proposed Limited NTDC procurement capacity. Procurement experts (individual consultants) were engaged to assist NTDC in preparing bidding documents and bid evaluation reports. In addition, a facility management consulting firm was recruited and mobilized since Jan 2018 to help NTDC in implementing the whole MFF.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Rehabilitation, augmentation and expansion At least 1,000 km of new transmission lines Procurement/Implementation of of the high voltage transmission network. operational by 2026. subprojects in various tranches of MFF is ongoing. Achievement of indicators will be assessed upon completion of subprojects. At least 2,500 MW new substation capacity Procurement/Implementation of added to the network by 2026. subprojects in various tranches of MFF is ongoing. Achievement of indicators will be assessed upon completion of subprojects. Capacity of existing substations increased Procurement/Implementation of by at least 3,500 MW through extension and subprojects in various tranches of MFF is augmentation of transformers by 2026. ongoing. Achievement of indicators will be assessed upon completion of subprojects. Entire transmission system covered by ADB approved contract award (CA) of SCADA system by 2026 (2015 less than 10% SCADA/RMS system under Tranche 2 in Q4 of total system covered). 2020. CA is expected by Q1-2021. NTDC and CPPA-G operations and NEPRA tariff determination completed prior NEPRA timely determines NTDC tariff management strengthened to year of application by 2025 (2014/15 annually. tariff determined in April 2015). Annual Financial Statements approved NTDC’s audited financial statement (AFS) within 6 months of year end by 2020 for FY 2016 was approved in Oct 2017, and (2013/14 +18 months post yearend). submitted to ADB in Nov 2017; AFS for FY 2017 was approved in Apr 2018 and submitted to ADB IN Jul 2018; AFS for FY2018 was approved in Nov 2018 and submitted to ADB in Dec 2018. Market settlement system, based on grid CPPA-G is updating its ERP system to code compliant data, operationalized by enhance its market settlement system, 2024 (2015 baseline: Nil). funded by its own resources. Risks Assessment of Current Status The regulatory environment does not remain stable. Still valid given present regulatory environment. Counterpart funds are not mobilized on time. Still valid given current economic condition. High turnover among NTDC staff. Still valid given NTDC staff condition. Modernization of NTDC’s manual accounting system not Still valid given NTDC's existing system condition. completed by 2023. Problem Action Taken/Proposed Delays in procurement activities. Procurement experts (individual consultants) were engaged to assist NTDC in preparing bidding documents and bid evaluation reports. In addition, a facility management consulting firm was

288 recruited and mobilized since Jan 2018 to help NTDC in implementing the whole MFF.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Key undertakings stated in the Financing Being complied with. 31-Dec-2020 Framework Agreement (FFA) in relation to actions on legal, regulatory, or institutional changes for Investment Program.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Pakistan Resident Mission, CWRD)

Criteria Ratings Justifications and Narratives Timeliness On Track No issues. Processing of succeeding tranches are being made on time. Processing of Tranche 4 is ongoing and advance contracting is ongoing as well. Undertakings Compliance On Track No issues. Compliance to loan covenants and project agreements are done on time. Tranche Performance Potential Problem Tranche 1 implementation is ongoing and all anticipated contracts awarded till date. Moreover, the tranche was expected to close on 31 December 2020 which is in process of extension till 30 June 2022 based on borrower request. New projects will be added and will be implemented during extended period of tranche. Tranche 2 implementation is also ongoing. Major contract award for SCADA is approved by ADB for $106 million roughly and to be awarded in Q1 2021. Rest of procurement packages are under implementation one package is under bidding and to be awarded in Q1 2022. Tranche 2 is expected to be completed in December 2022. Tranche 3 implementation is gaining its momentum. Facility management consultants (FMC) is engaged to assist NTDC and expedite the preparation of bid documents and bid evaluation reports. CWOD-PSG is working on implementation of social and environmental safeguards issues related to transmission line turnkey contracts. Contracts related to goods supply are all awarded and under implementation. Turnkey contract related to transmission line are on hold for clearance from CWOD-PSG on safeguards compliance. Tranche 3 is expected to be completed in December 2023. Overall MFF Performance On Track No issues. NTDC is becoming more capable of procurement with the engagement of procurement specialists. MFF performance is peaking and on track.

G. Completion Reports

1. MFF Completion Report

289 not yet due

2. Tranche Completion Reports not yet due

290 48404-002 PAK : Central Asia Regional Economic Cooperation Corridor Development Investment Program

48404-002 PAK : Central Asia Regional Economic Cooperation Corridor Development Investment Program (as of 31 - Dec - 2020)

This report was prepared by Jiangbo Ning and validated by Dong-Soo Pyo, Transport and Communications Division, CWRD 48404002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 26-Sep-2017 26-Sep-2027 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 800 800 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,1 tranche/s USD 120.0 million were approved. The multitranche financing facility (MFF) will enhance regional connectivity and trade in the Central Asia Regional Economic Cooperation (CAREC) Corridors in Pakistan by improving the efficiency for road Project Description traffic along the CAREC Corridors. For the purpose, the proposed MFF will rehabilitate and upgrade the road network constituting the CAREC Corridors mainly in Sindh, Punjab, and Khyber Pakhtunkhwa. Link to the RRP of the MFF https://www.adb.org/projects/documents/pak-48404-002-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated loan status) sources Closing Date sources Central Asia Regional 28-Sep-2017 120.0 0.0 0.54000 On 71.8952% 39.863% On For Yes Economic Cooperation 31-Jan-2018 At Risk Track Track Attention Corridor Development Investment Program- Tranche 1(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 120.0 15% 3.27 32.7%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2018 2019 2020 Total (with loan status) Central Asia 0.1 8.3 21.2 21.2 Regional Economic

291 Approved Tranches 2018 2019 2020 Total (with loan status)

Cooperation Corridor Development Investment Program-Tranche 1 (Active) Total 0.1 8.3 21.2 21.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Impact of the Program is aligned with: Regional connectivity and trade enhanced in the CAREC Corridors defined by project

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficiency for road traffic along the CAREC By 2027: Average daily vehicle-km of Under Tranche 1, civil works of two sections Corridors improved project roads increased to 6.62 million (Petaro-Sehwan and Peshawar-Deraadam (2016 baseline: 4.26 million) Khel) commenced in Q2 2019. Civil works in the last section (Ratodero-Shikarpur) are awarded in September 2020 and expected to commence 2021 Q1, considering site preparatory activities.

Tranche 2 is under preparation and expected to be approved in 2021 Q2. By 2027: Average travel time on project Under Tranche 1, civil works of two sections roads reduced to 7.0 hours (2016 baseline: (Petaro-Sehwan and Peshawar-Deraadam 9.8 hours) Khel) commenced in Q2 2019. Civil works in the last section (Ratodero-Shikarpur) are awarded in September 2020 and expected to commence 2021 Q1, considering site preparatory activities.

Tranche 2 is under preparation and expected to be approved in 2021 Q2. Risks Assessment of Current Status Weak financing arrangements on development and management This risk remains valid. of the road network jeopardizes network sustainability Political instability and deteriorating security discourages development assistance Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Corridor along N55 constructed or 747 km of CAREC Corridor along N55 Civil works under Tranche 1 are ongoing. rehabilitated improved by 2027 with international

292 roughness index no higher than 2.0 m/km (2016 baseline: not applicable for new carriageways and 3.25 m/km for existing carriageways to be rehabilitated) NHA capacity strengthened Due diligence works for subsequent Not yet due. tranches completed as planned and subsequent tranche projects prepared in compliance with ADB Safeguard Policy Statement (2009) and categorized as procurement- and design-ready Risks Assessment of Current Status Unfavorable political interference affects the implementation This risk remains valid. capacity of NHA Shifting government priorities causes insufficient budget allocation Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Pakistan will establish a National Road Implemented. The constitution of the 30-Jul-2019 Safety Body which will coordinate and National Road Safety Council was approved monitor the implementation of the on 30 July 2019. National Road Safety Plan by 30 June 2019. Pakistan will rationalize NHA's financial Being implemented. This was a pre-requisite 30-Jun-2023 statements by equitizing NHA's for submission of PFR for Tranche 2 but accumulated debt from the government waived with the approval of the ADB and revaluing NHA's road assets at current president on 31 August 2020 considering its prices by 31 December 2018. Pakistan will complexity. Rationalization is expected to devise a reasonable method to treat future be completed and is linked with the government support to NHA for road government's submission of the periodic investment either as government equity financing report for Tranche 4. investment or as other proper financing modalities, by which NHA can safely absorb government support to its financial statements. Pakistan will ensure that NHA installs Being implemented. 31-Dec-2027 appropriate road safety signs and facilities during the project implementation and after completion, such as warning signs, pavement markings, road signs and signals, communications facilities, hazard barriers, and traffic monitoring facilities, all in compliance with appropriate international conventions that Pakistan is a signatory to and best industry practices. At least six months prior to the opening for operation of the project roads, (i) NHA will have developed and implemented a plan, acceptable to ADB, for ensuring safe operation of road infrastructure facilities; and (ii) Pakistan acting through relevant government authorities will ensure that traffic police patrols the road and enforces the national laws and regulations. NHA will

293 ensure monitoring of the accident rate and traffic volume after the commencement of the operation of project roads financed under the Facility and institute appropriate safety enforcement measures. Pakistan will prepare a national transport Implemented. The National Transport Policy 31-Dec-2020 policy together with NHA's business plan was approved by the National Assembly in within one month of the Effective Date and May 2018. have it endorsed by the relevant authorities to be effective and adopted by relevant agencies by 31 December 2018. Pakistan shall prepare a National Road Implemented. The National Road Safety 30-Nov-2018 Safety Plan to be expanded from the draft Strategy (2018-2030) was approved by the National Road Safety Framework and Minister of Communication in November Action Plan for National Highways and 2018. Motorways which covers the entire road network in Pakistan within one month of the Effective Date and have it endorsed by the federal government of the Borrower to be made effective and adopted for implementation by 31 December 2018.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 31-Aug-2020 1. Change in MFF scope: dualization of a new section in Tranche 3 and creating Tranche 4 shifting sections originally under Tranche 3 to Tranche 4 2. Modification of a condition for Tranche 2 in FFA: Deferring rationalization of NHA's financial statements as a pre-requisite of Tranche 4 (Originally Tranche 2)

F. MFF Performance Ratings (Rated by Transport and Communications Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness Potential Problem Tranches are being delayed as compared to the original schedule mainly due to delays in due diligence and the government's fulfillment of the prerequisites for Tranche 2. Tranche 2 is expected to be approved in Q2 2021. Undertakings Compliance On Track More implementation time for the problematic undertaking, Rationalization of NHA's financial statement, has been allowed. The EA is working on full compliance. Tranche Performance Potential Problem Performance of Tranche 1 has remained "problematic", mainly because of the contractor's poor performance and delays in safeguards implementation. Overall MFF Performance Potential Problem Overall MFF performance is rated "potential problem" mainly due to slow progress in Tranche 1 and delays in the processing of Tranche 2. In particular, the project sites of Tranche 1 had to be shut down for some periods in early 2020 due to COVID-19, which caused additional delays. The project team continues its efforts to improve the

294 performance in close coordination with the EA.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

295 Papua New Guinea

Go to List of Countries Page 40173-013 PNG : Multitranche Financing Facility - Highlands Region Road Improvement Investment Program

40173-013 PNG : Multitranche Financing Facility - Highlands Region Road Improvement Investment Program (as of 31 - Dec - 2020)

This report was prepared by David Hill and validated by David Hill, Papua New Guinea Resident Mission, PARD 40173013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 16-Dec-2008 30-Jun-2020 11.54 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 401.10999988 400 1.10999988 Total ($ Million) Cofinancing Sources Non-administered a 19.99 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 313.4 million were approved. The Investment Program focuses on the Highlands core road network (HCRN) of 2,500 kilometers (km) of major national and some provincial roads, which carry the bulk of the traffic in the region. The Investment Program will include (i) projects to improve about 1,400 km of the HCRN, to be funded through four or more tranches under this multitranche financing facility (MFF); (ii) design and supervision of road improvement works, preparation and administration of long-term road maintenance Project Description contracts for the entire 2,500 km of the HCRN, and capacity development of road agencies; and (iii) monitoring the socioeconomic benefits of the improved and maintained roads in the Highlands region. Support will also be provided for policies such as road user charges (to increase the resources available for road maintenance). In addition, technical assistance (TA) will be provided to support the Department of Transport to prepare a new National Transport Development Plan (NTDP) for 2011-�2020. Link to the RRP of the https://www.adb.org/projects/documents/highlands-region-road-improvement-investment-program-png- MFF rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

297 2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 313.4 78.1% 11.54 100%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Highlands Region 2.8 5.0 20.2 47.8 69.5 96.3 98.4 99.4 99.4 Road Improvement Investment Program - Project 1 (Closed(1)) Highlands Region 0.1 9.4 42.8 72.5 95.3 102.4 102.4 Road Improvement Investment Program - Project 2 (Active) Highlands Region 22.8 47.7 93.6 116.6 116.6 Road Improvement Investment Program - Project 3 (Active) Total 2.8 5.0 20.2 47.8 69.5 105.7 141.3 194.8 143.0 196.0 116.6 318.5

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with The proposed Investment Program will establish a sustainable road system in the Highlands region that will enable maximum use of its natural, mineral, and human resources. It will contribute to the Government's MTDS, 2005-2010 objectives of (i) export-driven economic growth; (ii) rural development, and poverty reduction; (iii) good governance; and (iv) promotion of sustainable agriculture, forestry, fisheries and tourism.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Investment Program will improve access to By 2018: The EA is expected to assess the indicators ports, markets, and livelihood • Highlands core road network sustained at after completion of each project depending opportunities, and reduce travel time and an international roughness index of less on its in-house capacity, of the improved transport costs in the Highlands region. than 4 347km of road under the MFF. • 6% annual increase in traffic • Overloaded vehicles reduced from 15% to Socioeconomic study on impact assessment less than 5% completed for Tranche 1 and Tranche 2. • 5% annual reduction in road accidents

At the end of each project: • 25% reduction in travel time for a typical trip to markets, schools, and health facilities • Increase in the number of PMV services by 100% upon completion of road improvements and thereafter by about 6% a year for maintained roads.

298

Risks Assessment of Current Status Government Budgetary Support for long term maintenance. EA is managing it carefully and risk is moderately low. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets The Investment Program focuses on the By 2018: DOW improved 347km of selected priority Highlands core road network (HCRN) of • The core road network improved from roads under the MFF at end of availability 2,500 km of major national and some 1,100 km to 2,500 km period (30 June 2020). provincial roads. The HCRN carries the bulk • Maintenance contracts in place for the of the traffic in the region. The Investment entire 2,500 km core road network Program will include (i) investment projects • 20% annual increase in road user charges covering improvements to about 1,400 km • Quality of annual road development and of HCRN (Appendix 4) to be funded maintenance plans, and number of through four or more tranches; (ii) contracts consulting services for (a) preparation of awarded and length of roads maintained investment projects for ADB approval and • 10% annual increase in the number of design and supervision of civil works, and road improvement contracts awarded and (b) preparation and administration of long- managed for timely implementation term road maintenance contracts for the • National Transport Development Plan entire 2,500 km of HCRN; (2011–2020) approved by the Government (iii) support for capacity development, by end 2010. resource mobilization for maintenance funds, and improving road transport services; and (iv) monitoring the socioeconomic benefits of improved and maintained roads in the Highlands region. In addition, technical assistance is provided to support the DOT to prepare a new National Transport Development Plan (NTDP) for 2011-2020.

Risks Assessment of Current Status Government counterpart funding. Under Tranches 2 and 3, ADB approved frontloading of ADB funds to assist address the Government's funding issues. Problem Action Taken/Proposed None. Not applicable.

299 D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date NA NA 31-Dec-2020

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 26-Jun-2020 The European Union (EU) provided additional financing of $1.110 on top of its initial $19.99 million contributions for Tranche 3 project. The additional cofinancing maintained EU'�s financing for the relevant project components.

F. MFF Performance Ratings (Rated by Papua New Guinea Resident Mission, PARD)

Criteria Ratings Justifications and Narratives Timeliness On Track The MFF period ended on 30 June 2020. Undertakings Compliance On Track DOW complied with FFA undertakings. Tranche Performance On Track All tranches including, tranche 3 performance, was satisfactory and closed with the overall MFF implementation period of 30 June 2020. Overall MFF Performance On Track The Covid-19 impacts to the MFF, particularly for tranche 3, were minimal as the major road improvement works under the subprojects were substantially completed and handed over to the EA prior to March 2020. Overall MFF performance is satisfactory.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Highlands Region Road Improvement Investment Program - Project 1 : Project Completion Report prepared by PNRM, PARD

300 41504-013 PNG : MFF: Town Electrification Investment Program

41504-013 PNG : MFF: Town Electrification Investment Program (as of 31 - Dec - 2020)

This report was prepared by Maria Theresa Villareal and validated by David Hill, Papua New Guinea Resident Mission, PARD 41504013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 25-Nov-2010 01-Jun-2020 24-Nov-2020 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 120 120 0 Total ($ Million) Cofinancing Sources Non-administered a 5 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 103.6 million were approved. The proposed investment program will improve power supply in provincial urban centers through replacement of high-cost diesel power generation with sustainable renewable energy power generation. The investment program will include (i) construction of about six run-of-river hydropower plants to Project Description supply provincial centers, (ii) construction of transmission systems to connect provincial centers, and (iii) capacity building within the power utility and communities. Project preparatory technical assistance (TA) was used in project preparation. https://www.adb.org/projects/documents/town-electrification-investment-program-papua-new-guinea- Link to the RRP of the MFF rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated (with loan status) sources Closing Date sources Town 6-Dec-2010 52.7 4.8 0.74000 For 100% 98.0876% At Risk On Yes Electrification 26-Jul-2012 For Attention Track Investment Attention Program - Tranche 1(Active) Town 4-Jul-2017 46.1 0.0 0.62000 For 89.9963% 63.346% For On Yes Electrification 12-Oct-2017 At Risk Attention Attention Track Investment Program - Tranche 2(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period

301 103.6 86.3% 10.10 101%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Town Electrification 0.2 1.1 1.8 12.4 32.2 40.2 47.1 54.8 56.3 56.3 Investment Program - Tranche 1 (Active) Town Electrification 0.0 11.8 12.5 29.1 29.1 Investment Program - Tranche 2 (Active) Total 0.2 1.1 1.8 12.4 32.2 40.2 58.9 67.3 85.4 85.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with The economic condition of the population in the targeted provincial centers has improved.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved utilization of reliable, clean All indicators are relative to baseline of Tranche 1: power to six provincial urban centers January 2010. 1. Construction of 1 Hydropower plant contract awarded and implementation is 95% completed with testing and commissioning ongoing. Project to be completed in March 2021.

2. Refurbishment of 2 Hydropower plants completed and commissioned in December 2019 and in operation.

3. Construction of a total of 142km of 66kV transmission line completed and commissioned in December 2017.

Tranche 2: 1. YTOD contract was signed on 29 October 2018. Overall physical work progress is at 75%. Project will be completed in April 2021.

2. Warangoi HPP Rehabilitation Project contract was signed on 29 October 2018. Overall physical work progress is at 90%. The project will be competed in March 2021.

Installation of 15 MW of additional Tranche 1: hydropower capacity in target provincial 1. Construction of 1 Hydropower plant areas by the end of 2016 contract awarded and implementation is 95% completed with testing and

302 Improved utilization of reliable, clean commissioning ongoing. power to six provincial urban centers 2. Refurbishment of 2 Hydropower plants completed and commissioned in December 2019 and in operation. The Ru Creek Hydropower generating 800kW and Lake Hargy Hydropower generating 1.5MW.

3. Construction of a total of 142km of 66kV transmission line completed and commissioned in December 2017.

Tranche 2: 1. YTOD contract was signed on 29 October 2018. Overall physical work progress is at 75%. Project will be completed in April 2021.

2. Warangoi HPP Rehabilitation Project contract was signed on 29 October 2018. Overall physical work progress is at 90%. The project will be competed in March 2021.

Avoid production of an additional 100,000 To be assessed after project completion of tons of CO2 equivalent per annum by the all projects under Tranche 1 and 2. Target end of 2016 year 2021. Reduce power outages by 20% in target To be assessed after project completion of provincial urban areas by the end of 2016 all projects under Tranche 1 and 2. Target year 2021. Reduce fuel costs for PPL power generation To be assessed after project completion of by 60% in target provincial areas by the end all projects under Tranche 1 and 2. Target of 2016 year 2021. Risks Assessment of Current Status Landowner disputes delay implementation Safeguard requirements have been cleared. PPL reallocates human resources to alternative projects PMU established and PPL power lines team engaged. Problem Action Taken/Proposed Land acquisition delays for hydro sites. EA and GoPNG have resolved land owner issues and also other social safeguards issues.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Six renewable energy power plants put into All indicators are relative to baseline of Tranche 1: operation by PPL January 2010. 1. Construction of 1 Hydropower plant contract awarded and implementation is 95% with testing and commission ongoing. Project to be completed in March 2021.

2. Refurbishment of 2 Hydropower plants completed and commissioned in December 2019 and in operation.

303 Six renewable energy power plants put into 3. Construction of a total of 142km of 66kV operation by PPL transmission line completed and commissioned in December 2017.

Tranche 2: 1. YTOD contract was signed on 29 October 2018. Overall physical work progress is at 75%. Project will be completed in April 2021.

2. Warangoi HPP Rehabilitation Project contract was signed on 29 October 2018. Overall physical work progress is at 90%. The project will be competed in March 2021. Generation of 60 GWh per annum of Tranche 1: renewable energy by the end of 2016 1. Construction of 1 Hydropower plant contract awarded and implementation is 95% with testing and commission ongoing. Project to be completed in March 2021.

2. Refurbishment of 2 Hydropower plants completed and commissioned in December 2019 and in operation. The Ru Creek Hydropower generating 800kW and Lake Hargy Hydropower generating 1.5MW.

Tranche 2: 1. 1. YTOD contract was signed on 29 October 2018. Overall physical work progress is at 75%. Project will be completed in April 2021.

2. Warangoi HPP Rehabilitation Project contract was signed on 29 October 2018. Overall physical work progress is at 90%. The project will be competed in March 2021. Provide power and water connection to Six water tanks were distributed to the villages adjacent to power generation affected community near the Divune project sites Hydropower Plant. Community-based- contracts were given to the community to build and install the water tanks. Tanks installation completed. Subsidized hydropower connections will be done after hydropower is completed. Transmission lines constructed and Transmission of 60 GWh of power per Tranche 1: operated by PPL annum to provincial urban areas by end 1. Construction of 1 Hydropower plant 2016 contract awarded and implementation is 95% completed with testing and commissioning ongoing. Project to be completed in March 2021.

2. Refurbishment of 2 Hydropower plants completed and commissioned in December 2019 and in operation.

304

3. Construction of a total of 142km of 66kV transmission line completed and commissioned in December 2017.

Tranche 2: 1. YTOD contract was signed on 29 October 2018. Overall physical work progress is at 75%. Project will be completed in April 2021.

2. Warangoi HPP Rehabilitation Project contract was signed on 29 October 2018. Overall physical work progress is at 90%. The project will be competed in March 2021.

Capacity building undertaken for Conduct capacity building training for PPL Two procurement training were conducted implementing agency and project in procurement and financial management for PPL staff in 2016 & 2017. beneficiaries by June 2011 ADB Safeguards training conducted for PPL staff in 2016. ADB FMS provided financial management training for EAs/IAs including PPL in December 2019. Conduct training for villages adjacent to PPL conducted power safety awareness for project sites, including (i) maintenance skills communities who will be connected to the for power and water supply (at least four Divune Hydro power transmission line in volunteers per village, including at least 50% March 2017. A financial literacy training was women); and (ii) power safety, household conducted for these communities which utility budget, and business skills training included budgeting and savings. for each village at the project sites (at least 50% participation by women). The PMU renders efficient project PMU meets annual target contract awards For Tranche 1 PMU has awarded 6 major management services and disbursements contracts: 1. Design & Supervision Consultancy 2. Divune Ramazon Transmission Line Equipment, Kimbe-Bialla Transmission Line. 3. Divune Hydro Power Plant. 4. Ruu Creek Hydropower Plant Rehabilitation 5. Lake Hargy Hydropower Plant Rehabilitation Disbursements completed for contracts under Tranche 1.

For Tranche 2, PMU has awarded 3 major contracts: 1. Design & Supervision Consultancy 2. Warangoi Hydropower Plant Rehabilitation. 3. Yonki-Toe-Off-Dam (YTOD) Rehabilitation. Conduct training activities for PMU staff ADB conducted Procurement (2016 & 2017) and PPL management, including gender Safeguards (2016) and Gender awareness training (2014)Trainings for PPL staff. Risks Assessment of Current Status 305 None Not Applicable Problem Action Taken/Proposed Land acquisition delays for hydro sites. EA and GoPNG have resolved land owner issues and also other social safeguards issues.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date NA NA 31-Dec-2020

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Papua New Guinea Resident Mission, PARD)

Criteria Ratings Justifications and Narratives Timeliness On Track By the end of the MFF period, all projects under Tranche 1 are completed except for Divune Hydropower Plant which is 95% completed with testing and commissioning ongoing and will be completed by March 2021. For Tranche 2, YTOD project is 75% physical completion and will be completed in April 2021 and WHRP project is 90% physical completion and will be completed by March 2021. Undertakings Compliance On Track PPL complied with all financial undertakings. Tranche Performance On Track By the end of the MFF period, all projects under Tranche 1 are completed except for Divune Hydropower Plant which is 95% completed with testing and commissioning ongoing and will be completed by March 2021. For Tranche 2, YTOD project is 75% physical completion and will be completed in April 2021 and WHRP project is 90% physical completion and will be completed by March 2021. Overall MFF Performance On Track Overall tranche performance is on track. Implementation of projects was severely affected due to lack of contractor personnel who were unable to travel to PNG due to Covid-19 international travel restrictions in 2020. TEIP-T1 contract was 95% completed and both contracts under TEIP- T2 were 75% and 90% completed when the MFF closed on 24 November 2020. These projects are on track for completion in March and April 2021.

G. Completion Reports

1. MFF Completion Report

MFF: Town Electrification Investment Program : MFF Completion Report prepared by Papua New Guinea Resident Mission, PARD

2. Tranche Completion Reports not yet due

306 43141-013 PNG : Civil Aviation Development Investment Program

43141-013 PNG : Civil Aviation Development Investment Program (as of 31 - Dec - 2020)

This report was prepared by Maria Theresa Villareal and validated by David Hill, Papua New Guinea Resident Mission, PARD 43141013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 24-Nov-2009 31-Dec-2018 24-Nov-2021 12.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 510 480 30 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 466.3 million were approved. The program involves upgrading and rehabilitation of airports identified under project 1: (i) Wewak, (ii) Hoskins, (iii) Gurney, (iv) Mt. Hagen, and (v) Jackson's domestic airport. The first tranche will finance the following under project 1: (i) Improvements in pavements and fencing identified as requiring emergency works to comply with ICAO safety and security standards; (ii) Support for (a) engineering design, Project Description preparation of bid documents, and procurement by the NAC; and (b) preparation by the NAC of investment proposals for subsequent projects and tranches for ADB approval; and (iii) Consulting services to NAC for the supervision of (a) airport improvement contracts for the five project 1 airports, and (b) long-term maintenance contracts for these five airports. In addition to the five airports, two others (Kavieng and Goroka) will have new security fences installed. Link to the RRP of the https://www.adb.org/projects/documents/civil-aviation-development-investment-program-0 MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed

307 Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 466.3 91.4% 11.10 92.5%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Civil Aviation 1.5 2.7 18.1 48.2 64.6 87.4 89.7 89.7 Development Investment Program - Project 1 (Closed(1)) Civil Aviation 7.5 29.2 63.5 79.7 96.4 104.3 113.2 113.2 Development Investment Program - Tranche 2 (Active) Civil Aviation 9.8 53.3 107.6 158.3 158.3 Development Investment Program, Tranche 3 (Active) Total 1.5 2.7 18.1 48.2 72.2 116.7 153.2 89.5 149.7 211.8 271.5 361.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with The investment program will establish a sustainable civil aviation network to support the economic growth of the country. In that way, it will help meet the objectives of ADB's country strategy and program, particularly those for the transport sector, and the Government's MTDS objectives of (i) economic growth, (ii) rural development, (iii) poverty reduction, and (iv) human resource development.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets The investment program will result in safer, By 2013: Five national airports This is ongoing and will be achieved after all more secure, and more efficient all-weather (Gurney,Hoskins,Mt.Hagen,Port the airports are upgraded by the end of the access to air transport services in the Moresby,Wewak) certified to meet ICAO investment program. project areas through (i) better airport safety and security standards, Growth in facilities; (ii) safer and more secure air passenger demand increased from 3% to 5% travel; (iii) more accessible markets, natural annually and in freight demand increased resource and mineral sites, and livelihood from 1% to 3% annually, Airport incidents opportunities; and (iv) reduced costs of air (delays,diversions,and closure) due to safety travel to all the project areas. It will help or security decreased from an average of 4% achieve the Government's goal of securing per month to 2 per month. and maintaining ICAO certification for the safety and security standards at its airport operations and facilities Risks Assessment of Current Status Delay in airline expansion and fleet modernization. Low Risk. NAC is managing this with the airlines. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance

308 Baselines in the RRP indicators with targets The investment program will concentrate By 2013: CAA restructure completed, CAA CAA structure completed splitting it into first of all on carrying out priority actions to strategy updated, Reduced ICAO audit three entities; NAC CASAPNG and PNGASL. comply with ICAO security and safety findings of safety and security standards, and then on increasing capacity noncompliance. for growth in services. The outputs will be By 2013: Runways, taxiways, and aprons Ongoing works on the remaining airports to as follows: (i) rehabilitated airport certified at 5 national airports Safety and comply with ICAO standards. infrastructure, including runways, taxiways, security improvements meet ICAO and aprons; (ii) upgraded runways and standards at 4 national airports. passenger terminals that can accommodate larger aircraft; (iii) communication, By 2013: New airport terminal at Mount New Terminal building completed under navigation, surveillance, and firefighting Hagen with sufficient facilities for tranche 1. Assessment of flight time yet to equipment; (iv) better maintained facilities; international processing, Flight times be undertaken and reported by NAC. and (v) an institutionally strengthened and reduced by an average of 10%. reformed CAA and its operational units. The By 2013: Long-term performance based ADB is in discussion with NAC to progress inputs will comprise financing for civil maintenance contracts awarded for 5 the maintenance plan for execution. works and consulting services in program national airports. administration, construction supervision, By 2013: Instrument landing system Completed and commissioned under and support for the ongoing institutional purchased and commissioned at Port tranche 1. reforms. Moresby. By 2012: Three rescue or fire tenders Nine (9) fire trucks procured to date under commissioned at Port Moresby Airport. tranche 1 and 2. Risks Assessment of Current Status No results found. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date There is no undertaking which affects the There is no undertaking which affects the 31-Dec-2020 road map and policy framework. road map and policy framework.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 14-Apr-2020 Minor change under the MFF and Tranche 3, approved by the President to utilize loan savings under Tranche 3 to process Civil Aviation Development Investment Program (CADIP) Phase 2.

F. MFF Performance Ratings (Rated by Papua New Guinea Resident Mission, PARD)

Criteria Ratings Justifications and Narratives Timeliness On Track All tranches on track and remaining works expected to be completed before MFF closing date on 24 November 2021. Undertakings Compliance On Track The Government is generally in compliance with the undertakings under the Framework Financing Agreement. Tranche Performance On Track Tranche 1 of the MFF completed and closed in July 2016. Tranche 2 closes on 18 September 2021. The remaining works contracts to be completed by October, 2021. Tranche 3 closes on 24 November 2021. All works ongoing and all 12 309 contracts expected to be completed in Q1 and Q4, 2021. Overall MFF Performance On Track Performance of the remaining Tranches (Tranche 2 and 3) in 2020 were lower than expected due to the restrictions imposed under the COVID 19 pandemic protocols, affecting movement of workers and the supply of equipment and materials needed for construction.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Civil Aviation Development Investment Program - Project 1 : Project Completion Report prepared by PNRM, PARD

310 48444-002 PNG : Sustainable Highlands Highway Investment Program

48444-002 PNG : Sustainable Highlands Highway Investment Program (as of 31 - Dec - 2020)

This report was prepared by Bashirullah Khpalwan and validated by David Hill, Papua New Guinea Resident Mission, PARD 48444002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 22-Jun-2017 30-Jun-2022 5.02 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 866.5 680 186.5 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,1 tranche/s USD 314.8 million were approved. The Highlands region of Papua New Guinea (PNG) consists of seven landlocked provinces where approximately 40% of the country's population resides, most of whom are involved in rural smallholder agricultural production. Aside from abundant and underemployed labor resources, the region is endowed with agricultural and mineral resources which serve as an engine of growth for the national economy. Characterized by relative high levels of the national agricultural production of fresh produce Project Description and cash crops, mainly coffee, tea, and cocoa, the region contributes a third of gross domestic product; while the region's mineral and petroleum resources account for nearly 80% of national exports. The 1,200 km long 2-lane national Highlands Highway is the lifeline for the Highlands region connecting 1,800 km of regional and feeder roads and servicing the region's people particularly those in the rural hinterland. The highway traverses the Highlands region connecting it to the coastal provinces and the country's main port in Lae. Link to the RRP of the https://www.adb.org/projects/documents/png-48444-002-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 314.8 36.3% 3.53 70.3%

311 3. Cumulative Disbursements (in $ million)

Approved Tranches 2017 2018 2019 2020 Total (with loan status) Sustainable 0.1 7.7 44.8 105.8 105.8 Highlands Highway Investment Program – Tranche 1 (Active) Total 0.1 7.7 44.8 105.8 105.8

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased opportunity for equality and prosperity in rural areas (Development Strategic Plan, 2010-2030)

Attainment of well-integrated, safe, affordable, and financially and environmentally sustainable transport systems that efficiently serve the economy and people of PNG (National Transport Strategy, 2014-2030)

Improved access to health and education, and living standards of the people of PNG (National Strategy for Responsible Sustainable Development for Papua New Guinea)

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Increased efficiency and safe movement of Travel time from the Nadzab airport to Three civil works contracts awarded in Q4 people, goods, and services between the Kagamuga airport reduced by 30% [2015 2018 (CW1, CW2 and RIC). The three Highlands Region and markets baseline: 10 hours] Contractor's mobilization is complete and civil works is ongoing. Physical progress for CW1 is 28.5%, CW2 is 28.3% and RIC is 30.5%. Overall physical progress for the three civil works is 29.1%. This will be assessed once road improvement is completed. Annual number of road closures greater Three civil works contracts awarded in Q4 than 48 hours due to climate events 2018 (CW1, CW2 and RIC). The three reduced to 2.5 (2016 baseline: 5.0 closures) Contractor's mobilization is complete and civil works is ongoing. Physical progress for CW1 is 28.5%, CW2 is 28.3% and RIC is 30.5%. Overall physical progress for the three civil works is 29.1%. This will be assessed once the road improvement is completed. At least 50% of highlands highways Three civil works contracts awarded in Q4 improved to 3-star safety rating or better 2018 (CW1, CW2 and RIC). The three for both vehicle occupants and pedestrians: Contractor's mobilization is complete and (2015 baseline: 4% for vehicle occupants civil works is ongoing. Physical progress for and 2% for pedestrians) CW1 is 28.5%, CW2 is 28.3% and RIC is 30.5%. Overall physical progress for the three civil works is 29.1%. This will be assessed once the road improvement is completed. Road fatalities in project highway reduced This will be assessed once the road 312 Increased efficiency and safe movement of by 50% (2016 average baseline: 0.38 improvement is completed. A Road safety people, goods, and services between the fatalities per km) specialist was recruited in Q4 2019 to assist Highlands Region and markets the EA with road safety. At least 50% of farmers participating in fresh Three civil works contracts awarded in Q4 produce production and marketing through 2018 (CW1, CW2 and RIC). The three the transport logistics platforms are women Contractor's mobilization is complete and (2016 baseline: 0%) civil works is ongoing. Physical progress for CW1 is 28.5%, CW2 is 28.3% and RIC is 30.5%. Overall physical progress for the three civil works is 29.1%. This will be assessed once the road improvement is completed. Risks Assessment of Current Status Safety and security situation deteriorates in the project area. No reported safety and security threats so far. Agricultural prices fail to generate returns to cover costs and To be assessed later. increased productivity. Problem Action Taken/Proposed Project activities are on track to achieve outcome. Monitor through review missions and monthly meetings with DoW.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets The 430 kilometer of two-lane rural The 57 km long crossing of Chimbu Three civil works contracts awarded in Q4 Highlands Highway from Lae Nadzab airport Province entirely rehabilitated and 2018 (CW1, CW2 and RIC). The three to Kagamuga airport in Mt Hagen, is upgraded to good condition and adapted to Contractor's mobilization is complete and rehabilitated, upgraded, and effectively climate change with IRI < 4.5 [2016 baseline: civil works is ongoing. Physical progress for maintained 0 km in good condition and IRI � 9] CW1 is 28.5%, CW2 is 28.3% and RIC is 30.5%. Overall physical progress for the three civil works is 29.1%. 378 km of highway and 68 bridges are Three civil works contracts awarded in Q4 restored, upgraded to good condition, and 2018 (CW1, CW2 and RIC). The three adapted to climate change (strengthening, Contractor's mobilization is complete and resurfacing, drainage and slope protection civil works is ongoing. Physical progress for improvements), with IRI < 4.5; [2016 CW1 is 28.5%, CW2 is 28.3% and RIC is 30.5%. baseline: 0 km and 0 bridges restored and Overall physical progress for the three civil upgraded, IRI � 9] works is 29.1%. 60 bus stops and bus shelters built; [2016 Three civil works contracts awarded in Q4 baseline: 0 bus stops and bus shelters] 2018. Contracts include construction of bus stops and bus shelters as part of the improvement works. Altogether 126 locations have been identified for all 3 civil works sections. Design and costings works are ongoing. 24 roadside market areas upgraded with Three civil works contracts awarded in Q4 separate male & female toilets; [2016 2018. Contracts include construction of baseline: 0 roadside markets upgraded with roadside markets with toilets as part of the separate male and female toilets] improvement works. 21 locations along the highlands highway have been identified. Design and costings works are ongoing. 20% of employed construction and About 36,115 out of the 169,925 (21.2%) community based maintenance workers are women along the project corridor are women [2016 baseline: 0%] engaged by the three civil works contractors. This exceeds the target % for

313 The 430 kilometer of two-lane rural this indicator. Highlands Highway from Lae Nadzab airport Goroka road bypass (24 km long) The Construction Supervision Consultant to Kagamuga airport in Mt Hagen, is constructed and adapted to climate change (CS2) has prepared the Detailed rehabilitated, upgraded, and effectively [2016 baseline: 0 km bypass] Engineering Design (DED) for the Goroka maintained bypass. 20 km of truck climbing lanes constructed Three civil works contracts awarded in Q4 in the Kassam Pass and the Daulo Pass along 2018 (CW1, CW2 and RIC). The three sections where the slope gradient is steeper Contractor's mobilization is complete and than 10% [2016 baseline: 0 km] civil works is ongoing. Physical progress for CW1 is 28.5%, CW2 is 28.3% and RIC is 30.5%. Overall physical progress for the three civil works is 29.1%. Road safety on the national Highlands 10 km of footpaths constructed at 10 Assessment and Design of the footpath is Highway increased school locations [2016 baseline: 0] ongoing. Community road safety awareness A Road Safety Specialist was recruited in Q4 campaign implemented in 7 provincial 2019. Road safety awareness program is districts along the Highlands Highway with being developed by the Specialist. 50% men and 50% women participation [2016 baseline: 0 provincial districts] In 24 hazardous locations; 100% of A Road Safety Specialist was recruited in Q4 horizontal marking, signage, and crash 2019 and currently doing the road design to barriers installed [2016 baseline: 0] include road safety features. Transport logistics and services in the Two trade and freight logistics platforms Not yet due. Highlands Region improved constructed in Hagen and Goroka, with specific gender consideration where of 50% farmers participating in fresh produce production and marketing through the platforms are women [2016 baseline: 0 platforms and 0% female participation] Institutional capacity of the DOW to deliver New functional PMO office constructed in PMO construction contract was awarded in the investment program and sustain its Goroka (2016 baseline: no office) Q4 2018. The construction of the PMO benefits strengthened building was completed in May 2020. Institutional development plan for the DOW Training ongoing for selected fields, implemented, training 40 staff in financial engineering and safeguards. management and procurement (2016 baseline: 0 staff trained) DOW received funding for climate change Not yet due. adaptation [2016 baseline: 0 climate change funding] Risks Assessment of Current Status None Not Applicable Problem Action Taken/Proposed Project activities are on track to achieve outcome. Monitor through review missions and monthly meetings with DoW.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date NA NA 31-Dec-2020

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

314 Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Papua New Guinea Resident Mission, PARD)

Criteria Ratings Justifications and Narratives Timeliness On Track MFF period will end 30 June 2022. Undertakings Compliance On Track DOW complies with FFA undertakings. Tranche Performance On Track Tranche 1 performance is satisfactory with civil works progressing. Overall MFF Performance On Track Overall MFF performance is satisfactory. For SHHIP T1 civil works is progressing. DOW/PMO have incorporated Emergency Response Plan (ERP) in the project. Contractors have adopted a COVID 19 Pandemic plan and implement the plan in their camps and construction sites.

For SHHIP T2 MRM has been endorsed. The draft loan agreement and official letter for loan negotiation was sent to the Government. Advance procurement and retroactive financing in good progress. Civil works is in the bid evaluation stage. ADB President approval is expected in April 2021.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Sustainable Highlands Highway Investment Program – Tranche 1 : Project Completion Report prepared by PNRM, PARD

315 Philippines

Go to List of Countries Page 52083-001 PHI : Malolos-Clark Railway Project

52083-001 PHI : Malolos-Clark Railway Project (as of 31 - Dec - 2020)

This report was prepared by Markus Roesner and validated by Hiroaki Yamaguchi, Transport and Communications Division, SERD 52083001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 23-May-2019 31-Dec-2024 5.61 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 2750 2750 0 Total ($ Million) Cofinancing Sources Non-administered a 2011 Japan International Cooperation Agency Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,1 tranche/s USD 1,300.0 million were approved. The project will support the construction of two sections, totaling 53.1 kilometers (km), of the North-South Commuter Railway (NSCR), a 163 km suburban railway network connecting the regional center of Clark in Central Luzon with Metro Manila and Calamba, Laguna. The Malolos-Clark Railway Project comprises: (i) Malolos-Clark section (51.2 km) from Malolos to Clark and Clark International Airport, and (ii) Blumentritt extension (1.9 km) connecting Solis and Blumentritt stations in Metro Manila District I (City of Manila). Both sections are part of the NSCR and extensions of the Tutuban-Solis-Malolos section financed by the Project Description Japan International Cooperation Agency. The NSCR will be completed during 2022-2025 as an integrated 163 km dedicated suburban passenger railway system comprising four sections: (i) Tutuban-Solis-Malolos, (ii) Malolos-Clark-Clark International Airport, (iii) Solis-Blumentritt-Calamba, and (iv) Clark-New Clark City. The project will provide affordable, reliable, and safe public transport; reduce greenhouse gas emissions; and contribute to cutting travel time from Metro Manila to Clark from 2-3 hours (by bus) to less than 1 hour by rail. Link to the RRP of the https://www.adb.org/sites/default/files/project-documents/52083/52083-001-rrp-en.pdf MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 1,300.0 47.3% 1.61 28.7%

317 3. Cumulative Disbursements (in $ million)

Approved Tranches 2020 Total (with loan status) Malolos-Clark 257.8 257.8 Railway Project (PFR 1) (Active) Total 257.8 257.8

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Local, national, and international connectivity improved

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficiency and capacity of transportation Journey from Blumentritt to Clark by public As of January 2021, bidding for all 6 civil along the Manila-Clark corridor improved transport reduced to less than 1 hour works contract packages financed under the project has been completed and bids have been evaluated.

The two contract packages (CP-N-04 and CP-N-05) for construction of the main line and depot in Clark were signed on 1 August 2020. The contractor has not yet mobilized.

The three contract packages (CP-N-01 to CP-N-03) for construction of the main line between Malolos and Clark were signed on 8 October 2020.

ADB approved rebidding for contract package CP-S-01 for the construction of the main line and station in Blumentritt. The rebidding was advertised on 4 December 2020 with a deadline for submission of bids on 4 March 2021. 171,000 passengers transported by rail As of January 2021, bidding for all 6 civil between Manila and Clark daily works contract packages financed under the project has been completed and bids have been evaluated.

The two contract packages (CP-N-04 and CP-N-05) for construction of the main line and depot in Clark were signed on 1 August 2020. The contractor has not yet mobilized.

The three contract packages (CP-N-01 to CP-N-03) for construction of the main line between Malolos and Clark were signed on 8 October 2020.

318 Efficiency and capacity of transportation along the Manila-Clark corridor improved ADB approved rebidding for contract package CP-S-01 for the construction of the main line and station in Blumentritt. The rebidding was advertised on 4 December 2020 with a deadline for submission of bids on 4 March 2021. Risks Assessment of Current Status Capacity expansion of Clark International Airport delayed because No risks identified as of Q4 2020 costs increase beyond estimate Development of New Clark City delayed because costs increase beyond estimate Problem Action Taken/Proposed Delay of procurement and project implementation caused by the The EA is providing various supports to contractors to mitigate the coronavirus disease (COVID-19). delays caused by COVID-19, a health and safety plan is under preparation by all contractors prior to commencement of construction. Strict monitoring on project implementation activities. Procurement process for rebiddng of contract package S-01 is ongoing.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets New railway line commissioned 51.2 km of railway line between Malolos Bidding for 5 civil works packages (CP N-01 and Clark in Central Luzon, as well as 1.9 km to N-05) financed under the project has of railway line between Solis and been completed. Contracts for CP N-04 and Blumentritt in Metro Manila, constructed N-05 were signed on 1 Aug 2020. Contracts and commissioned for CP N-01, N-02, and N-03 were signed on 8 Oct 2020.

Procurement process for rebidding contract package S-01 is ongoing. The contract package was advertised on 4 December 2020 with a deadline for submission of bids on 4 March 2021. 7 stations constructed, integrating design Bidding for 5 civil works packages (CP N-01 features that are friendly to and safe for to N-05) financed under the project has elderly people, women, children, and been completed. Contracts for CP N-04 and people with disabilities N-05 were signed on 1 Aug 2020. Contracts for CP N-01, N-02, and N-03 were signed on 8 Oct 2020.

Procurement process for rebidding contract package S-01 is ongoing. The contract package was advertised on 4 December 2020 with a deadline for submission of bids on 4 March 2021. Institutional capacity strengthened Knowledge in project and contract Capacity building activities to establish the management increased for 50 DOTr staff, at Project Management Office (PMO) and least 50% of whom are female services by a consulting firm to support project communication are ongoing. Information technology system for project Capacity building activities to establish the

319 Institutional capacity strengthened management, documentation and asset Project Management Office (PMO) and management established services by a consulting firm to support project communication are ongoing. 50 DOTr staff, 50% of whom are female, Capacity building activities to establish the reported increased knowledge on the use Project Management Office (PMO) and of the Guidelines and Standards in services by a consulting firm to support Measuring the Gender Responsiveness of project communication are ongoing. the Rail Sector Programs, Services and Facilities; and the DOTr web-based GAD monitoring and evaluation checklist system Innovative livelihood restoration system for This indicator was added to Output 2 on 18 displaced project affected persons using Dec 2019 as a result of the approval of TA Graduation Approach piloted and 40 DOTr 9913-PHI: Strengthening the Transition of staff trained in its application. Vulnerable Communities Affected by the Malolos-Clark Railway Project.

Recruitment of the consulting firm was completed on 1 Oct 2020 when the contract between ADB and the consulting firm was signed. Consulting firm commenced services on 3 November 2020. Risks Assessment of Current Status Increase in cost of building materials beyond projections leads to No risks identified as of Q4 2020 construction delays Lack of interest by international operation contractors leads to delay in signing the service contract for operation and maintenance of the railway network Problem Action Taken/Proposed Delay of procurement and project implementation caused by the The EA is providing various supports to contractors to mitigate the coronavirus disease (COVID-19). delays caused by COVID-19, a health and safety plan is under preparation by all contractors prior to commencement of construction. Strict monitoring on project implementation activities. Procurement process for rebiddng of contract package S-01 is ongoing.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date There is no undertaking which affects the road map and policy framework (creation of enabling environment).

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Transport and Communications Division, SERD)

Criteria Ratings Justifications and Narratives

320 Timeliness On Track The MFF was made effective on 26 September 2019. Bidding for six civil works packages under Output 1 of Tranche 1 was advertised in 2019. The first two contracts were signed on 1 August 2020 (CP N-04 and N-05) and three more contracts were signed on 8 October 2020 (CP N-01, N-02, and N-03). ADB approved the rebidding for the sixth contract package (S-01) and bidding was advertised on 4 December 2020 with a deadline for submission of bids on 4 March 2021. No contracts have been awarded and no disbursements have been made for Output 2. Undertakings Compliance On Track Key undertakings are not yet due. Undertakings under safeguards are compliant. EA submitted formal request to ADB to defer submission of the project's first audited project financial statement for fiscal year 2019 due to financial activity that is less than 3% of total project cost and no disbursements from ADB Loan 3796, Tranche 1. Tranche Performance On Track Loan 3796, Tranche 1 project performance is "on track". There are no major risks identified that would affect the delivery of the outputs. Overall MFF Performance On Track Overall MFF performance is on track. COVID-19 resulted to delays in procurement (i.e., contract signing for CP N-01, N-02, N-03, N-04, and N-05) and initial implementation activities.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

321 Sri Lanka

Go to List of Countries Page 45148-004 SRI : Greater Colombo Water and Wastewater Management Improvement Investment Program (Facility Concept)

45148-004 SRI : Greater Colombo Water and Wastewater Management Improvement Investment Program (Facility Concept) (as of 31 - Dec - 2020)

This report was prepared by Pedro Miguel Pauleta de Almeida and validated by Chen Chen, Sri Lanka Resident Mission, SARD 45148004 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 25-Oct-2012 31-Dec-2020 24-Oct-2022 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 401 300 101 Total ($ Million) Cofinancing Sources Non-administered a 50 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 368.0 million were approved. Water Supply Services. About 95% of Colombo city is covered by piped water supply. However, low and fluctuating system pressures and intermittent supply is becoming the norm; some areas of the city receive water only in off-peak hours, and other areas receive water for six to ten hours, on average. In 2011, about half of the 290,000 m3/d of water supplied to Colombo city generates no revenue. Non revenue water (NRW) in Colombo city has reached 49% and includes: 33% physical losses, 5% commercial losses, and 11% free water supplied to low income informal settlements. About 700 km of the water supply distribution network in Colombo city is more than 50 years old ; pipes in central Colombo city are more than 100 years old. The capacity of the distribution network has decreased significantly over the years due to seriously degraded pipes. The National Water Supply and Drainage Board (NWSDB) has not been able to adequately address these problems due to lack of technical capacity, budget, equipment, and institutional capacity. It is also not able to meet the growing demand, and reduce the high losses of water and revenue. Global best practice for NRW reduction offers an effective strategy to make more water available, improve water supply service levels and defer capital investments in an effective and efficient manner, and generate more revenue for NWSDB.

Wastewater Infrastructure and Services . Only 19% of the Greater Colombo population in 2010 is connected to the piped sewerage system; 66% have on site facilities; and about 15% have no sanitary facilities. The population with no sanitation facility disposes their wastewater on the seashore, in canals, Project Description and waterways, and on available open ground. The existing piped sewer network in Greater Colombo, built between 1906 and 1920, comprises about 320 km of sewers, 18 pumping stations in two catchmentsnorth and south, and two sea outfalls. The sewer lines have frequent collapses and blockages resulting in flooding neighborhoods with untreated wastewater. One third of pumping facilities are not working, causing frequent overflow to water courses. Some of the deficiencies are being addressed under the ongoing Greater Colombo Wastewater Management Project . Investments proposed in wastewater remain largely unimplemented. The wastewater system has a number of serious operational and managerial problems. The service provider, Colombo Municipal Council (CMC), is constrained by lack of investment funds, management capacity and wastewater tariffs. The proposed investment will expand coverage and improve treatment standard, and sustainability of the service.

ADB Long Term Policy Support and Water and Sanitation Services Delivery. ADBs strategy for the water and sanitation sector is to improve service levels and coverage, and enhance financial viability. ADB has been one of the major development partners in the water supply and sanitation sectors, with loans totaling about $521 million since 1986. Policy dialogue with lessons learned has, and will continue to focus on: (i) institutional reforms and decentralization in the water sector; (ii) financial sustainability of NWSDB operations; (iii) capacity enhancement in the CMC to manage the wastewater services; (iv) private public partnerships in water supply and wastewater service provision; and (v) improved

323 sustainability of the wastewater services. The proposed Program is consistent with the priority sector water supply and other municipal infrastructure and services, identified in the country partnership strategy . The first Tranche under multitranche financing facility (MFF) is included in the country operations business plan for Sri Lanka. http://www.adb.org/projects/documents/greater-colombo-water-wastewater-management-improvement- Link to the RRP of the MFF investment-program-facility-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated loan status) sources Closing Date sources Greater Colombo 22-Nov-2012 83.0 0.0 1.00000 On 99.6315% 100% On On Track Yes Water and Wastewater 25-Sep-2013 On Track Track Track Management Improvement Investment Program - Tranche 1(Active) Greater Colombo 26-Sep-2013 86.9 70.0 0.74000 On 79.3934% 54.0547% On On Track Yes Water and Wastewater 23-Sep-2014 For Track Track Management Attention Improvement Investment Program - Tranche 2(Active) Greater Colombo 8-Dec-2015 128.1 0.0 0.74000 On 36.0041% 94.5704% On For Yes Water and Wastewater 3-Nov-2016 For Track Track Attention Management Attention Improvement Investment Program (Tranche 3)(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 368.0 91.8% 8.19 81.9%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Greater Colombo 0.0 7.7 17.7 27.7 40.0 49.3 61.4 78.8 78.8 Water and Wastewater Management Improvement Investment Program - Tranche 1 (Active) Greater Colombo 0.6 7.8 18.0 28.1 37.1 46.7 46.7

324 Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Water and Wastewater Management Improvement Investment Program - Tranche 2 (Active) Greater Colombo 4.2 8.3 14.7 19.6 19.6 Water and Wastewater Management Improvement Investment Program (Tranche 3) (Active) Total 0.0 7.7 18.3 35.5 62.2 85.7 113.2 145.1 145.1

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved urban environment and quality of life for the residents in Greater Colombo

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved water supply and wastewater Daily water supply increased in low Physical works in progress. Work completed service and management in Greater pressure area (Baseline: 5 hours in 2012, in 28 District Metering Areas (DMA) out of Colombo Target : 24 hours by 2020) in Colombo city 78 DMAs. 24 hours water supply service achieved in completed 28 DMAs. City-wide NRW in Colombo city reduced Not yet due. Ongoing physical works. (Target: from 49% in 2012 to 25% by 2020 Colombo city-wide NRW was 43% in 2017 and critical area from 60% to 18% in 2016) and currently NRW in critical area is currently at 40%. NRW in 28 completed DMAs are less than 18% Population connected to sewer network Ongoing physical works. Sewer network increased (Baseline 19% in 2012, Target: component works in various stages of 100% wastewater service in Colombo city in implementation. No increase in service yet. 2020) Population with on-site sanitation service Ongoing physical works. Sanitation increased (Baseline in 2012: 0, from x% in component in various stages of 2012 to 100% in Greater Colombo in 2020) implementation.No increase in service yet. Risks Assessment of Current Status Ongoing and planned water supply projects, financed by JICA and JICA project successfully completed. Ongoing ADB funded project NWSDB, are not successfully implemented. is being successfully implemented. Due to start up delays of this project, eater attack in 2019 and Covid 19 project completion being delayed. Anticipated NRW reduction has been achieved in completed District Metering Areas (DMAs). Problem Action Taken/Proposed None. Not applicable.

3. Outputs

325 Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Rehabilitated and expanded water supply Degraded water supply pipes less than 225 As of 31 December 2020, 640.7 km system and reduced NRW in Colombo city mm dia. replaced in Colombo city (Target: completed. 400 km by 2018) Degraded CI pipes de-scaled and re-lined Implementation is ongoing. Expected to (Target : 50 km by 2016) complete by 24 October 2022 Percentage of customers (incl. all below Not achieved yet. poverty line (BPL) households (incl. FHHs) connected (Baseline in 2012: 0, Target : 900 water out let connected 100% by 2018) in Colombo city. Free water outlets metered by 2018, with consumer associations (Target: 1,350 by 2020) DMA mechanism for NRW reduction Implementation is Ongoing. 28 DMAs established for Colombo city (Target: by completed. 45 DMAs works are ongoing end 2016) 2. Improved wastewater Services in Greater Sewer network expanded incl. all below For the Wastewater system rehabilitation Colombo poverty line (BPL) households (incl. FHHs) and expansion in south catchment area of (Target: 100%) (Target: 445 km by 2020) in Colombo: the Kirulapone sewer contract Colombo city was awarded on 7 April 2017 and physical works are in various stages of implementation. For the secondary wastewater treatment plant construction in south catchment area of Colombo: the Wellawata STP DBO contract package was advertised and contract award is expected by Q1 2021. Rehabilitation of existing Sewers (Target : 30 For the wastewater system rehabilitation km by 2020) and expansion in south catchment area of Colombo: the Kirulapone sewer contract was awarded on 7 April 2017 and physical works are in various stages of implementation. Wastewater treatment capacity increased The Wellawata STP DBO contract package (Baseline in 2012: 0, Target: treatment was advertised and contract award is capacity of 174,000 m3/d established by expected by Q1 2021. 2020) Cost recovery mechanism in place for Not yet implemented. CMC passed a wastewater service by 2016 resolution for an industrial/commercial wastewater tariff. The scheduled approval by the Ministry of Provincial Council and Local Government is delayed. ADB staff closely monitoring with borrower. 3. Reformed institution and capacity Operations Performance Audit Cell Not yet established. building for water supply and wastewater established by 2013 service RSC (WC) reorganized and all key positions Key positions filled in 2016 with 25% filled by 2013 (at least 25% of whom are women. women) Fully functioning NRW Unit in RSC (WC) at Not yet due. end of Program to maintain 2020 NRW levels. NWSDB staff trained for NRW by end 2018 Not yet due. Ongoing. Trainings being 326 3. Reformed institution and capacity (xx numbers; at least 25% of whom are provided to O&M and Project’s staff. building for water supply and wastewater women. service Awareness and acceptance of water tariff Ongoing awareness campaigns (i.e., through among citizens increased by 20% as per TV documentary, radio channels, surveys conducted before and after newspaper notices & article, art Program. competitions). 4. Project management system in place Project implemented on time and within NWSDB and CMC PMUs were established budget and implementing the project. Risks Assessment of Current Status Prices of steel and pipes increase beyond projections. Continues to remain a risk. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date NWSDB shall ensure that all water tariffs NWSDB has not revised tariffs since 2012. 24-Oct-2021 and wastewater tariffs are established in accordance with applicable MWS and MLGPC policies

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 25-Nov-2020 The availability period of MFF was extended by 1.82 years, from 31 December 2020 to 24 October 2022 which was approved by the president.

F. MFF Performance Ratings (Rated by Sri Lanka Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track All four major civil works contract packages were awarded and implementation is ongoing with loan extension till 24 October 2022 Undertakings Compliance On Track Overall compliance undertakings are satisfactory Tranche Performance Potential Problem Tranche 2 and 3 are considered as 'Potential Problem'. This is due to: Tranche 2, lower disbursements; and Tranche 3, delayed contract award (the contract award is scheduled for Q1-2021). Overall MFF Performance On Track Overall implementation has been delayed due to 2019- Easter Sunday attacks, and the 2020-COVID-19 Pandemic. Due to COVID-19, the government announced island wide curfew during March-May 2020 (first wave), and partial lockdowns during October-December 2020 (second wave) in the Western province, to control the pandemic spread. PMUs needed to stop construction work during these periods. Later, the PMU took special approval following the health guideline of Ministry of Health, to continue the works during the lockdown time and thereafter. With the loan extension till 24 October 2021, all major works are expected

327 to be completed.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

328 47037-003 SRI : Green Power Development and Energy Efficiency Improvement Investment Program

47037-003 SRI : Green Power Development and Energy Efficiency Improvement Investment Program (as of 31 - Dec - 2020)

This report was prepared by Jaimes Kolantharaj and validated by Priyantha Cabral Wijayatunga, Energy Division, SARD 47037003 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 15-Jul-2014 13-Jul-2024 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 360 300 60 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 361.5 million were approved. In recent years, Sri Lanka has improved its energy sector and achieved a national electrification ratio of 94% (2012) as compared with 29% in 1990. However, a longer-term challenge is to reduce its high dependence on expensive fossil fuel energy. The energy sector struggles to (a) meet growing demand for electricity at a low cost and acceptable reliability rates, and (b) attain long term sustainability. The share of thermal oil-fired energy in the power generation mix has increased from 6% in 1995 to 59% in 2012 that creates a high energy cost base. Demand growth has been mostly met by expensive oil-fired thermal plants. This is not a viable and sustainable solution to the country's energy security and environment Project Description protection in the long term. Diversification of the generation mix primarily to renewable energy sources, improved network efficiency, reduced technical losses and supply and demand side management is the only way to correct this situation. The transmission network needs expansion and modernization, particularly in the former conflict-affected areas in Northern and Eastern provinces. The 33 kilovolt medium voltage network needs to expand power supply into rural areas where many households have poor reliability and inadequate quality of electricity supply. For sustainable functioning of the power sector, the government pursues financial, managerial, and institutional reforms in line with the Sri Lanka Electricity Act, 2009. Link to the RRP of the http://www.adb.org/projects/documents/green-power-development-and-energy-efficiency-improvement- MFF investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB ADB's own Approved tranches (with loan status) Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated sources Closing Date sources Green Power Development and 17-Jun-2014 147.7 26.9 1.00000 On 100% 100% On On Yes Energy Efficiency Improvement 2-Feb-2015 On Track Track Track Investment Program - Tranche Track 1(Active) Green Power Development and 5-Dec-2016 150.0 36.9 1.00000 On 100% 100% On On Yes Energy Efficiency Improvement 10-Jul-2017 On Track Track Track Investment Program - Tranche Track 2(Active)

329 Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 361.5 100.4% 6.47 64.7%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2015 2016 2017 2018 2019 2020 Total (with loan status) Green Power 0.8 4.7 12.8 24.7 33.8 39.0 39.0 Development and Energy Efficiency Improvement Investment Program - Tranche 1 (Active) Green Power 0.9 14.4 37.4 65.5 65.5 Development and Energy Efficiency Improvement Investment Program - Tranche 2 (Active) Total 0.8 4.7 13.7 39.1 71.2 104.4 104.4

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with increased access to clean and reliable power supply.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets enhanced clean power generation, system The total losses of the CEB network reduced Loss reduction from 10.67% to 9.63% had efficiency and reliability. from 10.67% of net generation in 2012 to been achieved. 10.0% by 2020 Transmission infrastructure for connecting Project implementation ongoing. To be 200 MW of wind power to the grid measured after program completion. completed by December 2018 97.7 GWh clean hydropower generation per Project implementation ongoing. To be year, resulting in annual avoided 72,272 measured after program completion. tons of carbon dioxide emissions, added to the system by June 2019 Distribution line end voltage fluctuation Construction in progress and data expected maintained within 5% in project areas by by Q4 2021. December 2018 (baseline:10% in 2013) Risks Assessment of Current Status Integration of intermittent wind generation may create potential Installation of shunt reactors in progress and expect commissioning difficulties in managing grid. by Q3 2021. Problem Action Taken/Proposed

330 None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Hydropower generation developed and 30 MW of run-of-river hydropower plant Project implementation ongoing. To be connected to the grid in the Central constructed by June 2019 measured after program completion. Province 0.5 km of dedicated 132 kV transmission Project implementation ongoing. To be line constructed to connect the measured after program completion. hydropower plant to the grid by June 2019 Transmission infrastructure enhanced 210 MVA 220/132 kV and 816.5 MVA Project implementation ongoing. To be 132/33 kV grid substation capacity added to measured after program completion. the grid by June 2020 12.3 km of 220 kV and 175 km of 132 kV Project implementation ongoing. To be and 151 km of new 220 kV transmission measured after program completion. lines added to the transmission lines added by June 2020 2x63 MVA, 220/132/33 kV grid substation Project implementation ongoing. To be capacity and 30 km 220 kV transmission line measured after program completion. constructed by December 2018 to enable connection of future wind generation in the Northern Province Efficiency of medium voltage network 235.4 km of new 33 kV lines added to Project implementation ongoing. To be improved improve power supply quality to about measured after program completion. 300,000 customers by June 2020 75 MVAr installed in 33 kV network for Project implementation ongoing. To be reactive power management by June 2020 measured after program completion. Demand-side management for energy Energy savings of 1,700 MWh/year from Project implementation ongoing. To be efficiency improved pilot subproject implementation by June measured after program completion. 2019

DSM regulations approved and announced Completed. by 1 January 2016 Capacity development support provided to Support in review of transmission design Completed. Ceylon Electricity Board. specifications and standards, and application of new technologies provided by 2016 New subprojects prepared for the second Completed. tranche by June 2016 Project monitoring and supervision Completed. Contract had been awarded guidelines approved and in place by and implementation is ongoing. December 2015. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date There is no key undertaking which affects None. 21-Jan-2021

331 the road map and policy framework.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Energy Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track The project was processed and approved on time. Undertakings Compliance On Track Major covenants are complied with. Tranche Performance On Track There have been some delays for major hydro power contract in Tranche 1 due to environment and biodiversity issues. Detailed studies were carried out to mitigate these issues and corresponding documents have been updated accordingly. Project implementation for both tranches is now on track for all components. Overall MFF Performance On Track There were delays in implementation as the civil works were halted during the curfew and lock down declared in Sri Lanka due to coronavirus disease (COVID-19). The arrival of equipment and technical experts were also delayed due to travel and visa restrictions for project components in both tranches. The executing agency is following up closely with the government authorities on visa approval for the technical experts. Project schedule was also updated and progress is monitored closely to expedite project implementation.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

332 47273-002 SRI : Integrated Road Investment Program

47273-002 SRI : Integrated Road Investment Program (as of 31 - Dec - 2020)

This report was prepared by Aruna Nanayakkara and validated by Chen Chen, Sri Lanka Resident Mission, SARD 47273002 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 25-Sep-2014 25-Sep-2024 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 800 800 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 6 tranche/s are expected under the MFF. Of which,4 tranche/s USD 546.4 million were approved. The investment program will improve the accessibility of the road network in rural areas of Sri Lanka, and thereby increase the involvement of the rural population in nationwide economic and social development. An integrated road network will support long-term rural development. The investment program will upgrade and maintain about 2,200 kilometers (km) of rural access roads to all-weather Project Description standard; rehabilitate and maintain to a good condition about 400 km of national roads; and improve the capacity of road agencies including the Ministry of Highways, Ports and Shipping (MOHPS), the Road Development Authority (RDA), provincial road agencies, and local authorities with respect to road asset management, project management, and contract administration. The investment program will play a catalytic role in the sustainable development of Sri Lanka. Link to the RRP of the MFF http://www.adb.org/projects/documents/integrated-road-investment-program-rrp a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources Integrated Road 3-Oct-2014 90.3 0.0 0.94000 For 99.4603% 100% On On Yes Investment Program- 7-Jan-2015 On Attention Track Track Tranche 1(Active) Track Integrated Road 11-Dec-2014 106.4 0.0 0.94000 For 99.7986% 99.4691% On On Yes Investment Program- 23-Jul-2015 On Attention Track Track Tranche 2(Active) 7-Apr-2017 Track Integrated Road 23-Nov-2015 199.7 0.0 0.94000 For 100% 100% On On Yes Investment Program- 18-Mar-2016 On Attention Track Track Tranche 3(Active) 27-Mar-2017 Track Integrated Road 4-Dec-2017 150.0 0.0 0.94000 For 99.3609% 100% On On Yes Investment Program 13-Feb-2018 On Attention Track Track (Tranche 4)(Active) Track

Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made

333 effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 546.4 68.3% 6.27 62.7%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2015 2016 2017 2018 2019 2020 Total (with loan status) Integrated Road 31.2 62.2 71.6 74.4 79.7 79.9 79.9 Investment Program-Tranche 1 (Active) Integrated Road 17.0 81.3 102.2 105.9 105.9 Investment Program-Tranche 2 (Active) Integrated Road 23.7 116.1 163.3 169.2 193.9 193.9 Investment Program-Tranche 3 (Active) Integrated Road 23.0 53.8 64.9 64.9 Investment Program (Tranche 4) (Active) Total 48.2 167.2 289.9 366.6 302.7 338.7 444.5

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Improved connectivity between rural communities and socioeconomic centers in Sri Lanka

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Increased transport efficiency on project Travel time on project rural roads reduced To be assessed upon construction roads by 20% from 2013 rate. completion. Travel time on project national roads To be assessed upon construction reduced by 10% from 2013 rate. completion. Use of roads built or upgraded (average To be assessed upon construction daily vehicle-kilometers in the first full year completion. of operation) reaches 2.8 million. Risks Assessment of Current Status Government provides counterpart funds for the project on time. Currently the government provides allocation for the project. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance

334 Baselines in the RRP indicators with targets Improved road conditions between the About 2,200 km of rural access roads Under the T1, 2, 3 & 4 contracts awarded to selected rural communities and improved to all-weather standard. improve 3,136 km of rural roads and 2,657 socioeconomic centers Km completed as of 31 December 2020. About 400 km of national roads Procurement completed for 77km national rehabilitated and maintained under road under RMC Contracts and 10 Km performance-based contracts completed as of 31 December 2020. Evaluation ongoing for award of 146 km national roads. Bids invited for 56 km national roads. Balance are under design and document preparation stage. Gender targets achieved for road Likely to be achieved maintenance works Enhanced capacity of road agencies Program for skills transfer to provincial and Altogether around 125 workshops, training local road agencies from RDA established and seminars were conducted. Out of this and functioning 58 are related to the capacity development of road agencies (RDA, PRDA and Local Authorities). Approximately 400 staff members benefited. Rural road design standard, construction Draft report prepared by the individual specification, and maintenance manual consultant has been endorsed by RDA. endorsed by RDA. About 80 staff received training on road More than 125 staff from provincial road asset management, project management, agencies and local authorities received and/or performance-based road contracts. trainings on road asset management, project management, and performance- based road contracts. Risks Assessment of Current Status Implementation delayed by extreme weather conditions Continues to remain a risk. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Operations and Maintenance: The Borrower Being complied with 31-Dec-2020 shall ensure that it allocates sufficient funds for operations and maintenance of the roads to be constructed or upgraded under the project, and ensure that the funds are made available to RDA on a timely basis for the same purpose

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020

F. MFF Performance Ratings (Rated by Sri Lanka Resident Mission, SARD)

Criteria Ratings Justifications and Narratives

335 Timeliness On Track Out of 42 CRC contract packages, 30 packages have been completed Undertakings Compliance On Track All covenants are complied with Tranche Performance On Track Performance is in satisfactory level Overall MFF Performance On Track All the ongoing contract packages under this program have been impacted due to COVID 19 pandemic. Since mid of March 2020 no physical construction activities could be undertaken until 20.04.2020 when the curfew was lifted but many health restrictions still prevailed. The adverse Impact due to the second wave of pandemic started in October 2020 is still under evaluations. However, overall performance of the MFF is satisfactory.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

336 47381-001 SRI : Mahaweli Water Security Investment Program

47381-001 SRI : Mahaweli Water Security Investment Program (as of 31 - Dec - 2020)

This report was prepared by Sanath Ranawana and validated by Mio Oka, Environment, Natural Resources & Agriculture Division, SARD 47381001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 24-Jun-2015 31-Dec-2024 9.52 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 453 453 0 Total ($ Million) Cofinancing Sources Non-administered a 54 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,2 tranche/s USD 361.6 million were approved. ADB and the Government of Sri Lanka are working together to deliver surplus water from the Mahaweli river basin to its dry zone, where scarce supplies undermine agricultural output and household incomes. The Mahaweli Water Security Investment Program is helping the government complete a decades-old program that is moving water from the country s largest river to its dry zone, made up of North Central Province, Central Province, North Western Province and Eastern Province. The project is building more Project Description than 260 kilometers of new and upgraded canals, reservoirs, and other irrigation infrastructure. It is also helping to conduct studies on improving water management and delivery systems. In addition to providing more irrigation water, the project is delivering clean drinking water to over 350,000 people, resulting in improved community health in areas where chronic kidney diseases are prevalent. The long term goal of the project is to reduce poverty while boosting economic growth and food security. Link to the RRP of the http://www.adb.org/projects/documents/mahaweli-water-security-investment-program-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 337 361.6 79.8% 5.52 58%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2015 2017 2018 2019 2020 Total (with loan status) Mahaweli Water 15.9 28.1 40.7 55.7 77.5 77.5 Security Investment Program - Tranche 1 (Active) Mahaweli Water 8.8 13.3 33.0 33.0 Security Investment Program - Tranche 2 (Active) Total 15.9 28.1 49.5 69.0 110.6 110.6

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with improved agricultural production and sustained economic growth in the North Central Province, Central Province, North Western Province and Eastern Province.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets secured access to water resources for 974 MCM/year of water available from the This indicator will be achieved at agricultural and drinking purposes in Mahaweli System in North Central Province, completion of the investment program. project areas inclusive of 70 MCM/year of raw water for Design and construction works are ongoing. 358,000 people (baseline = 60 MCM/year Twelve out of the current 16 works with 0 MCM/year for drinking in 2014) packages are under implementation, Four packages are still to be tendered (packages may be restructured). Works will be completed in 2024 when the investment program ends. 130 MCM/year water available from This indicator will be achieved at Mahaweli System in North Western completion of the investment program. Province (baseline= 0 MCM) Design and construction works are ongoing. Twelve out of the current 16 works packages are under implementation, Four packages are still to be tendered (packages may be restructured). Works will be completed in 2024 when the investment program ends. Storage capacity of Minipe Anicut is This indicator will be achieved at increased to 1.25 MCM (baseline= 0.18 completion of Tranche 1. The relevant MCM in 2014) works package have been awarded in 2018 and will be completed in 2021. Works progress is about 49%. Irrigated area serviced by Mahaweli System This indicator will be achieved at increases to 162,000 ha with cropping completion of the investment program. intensity of 191% (baseline = 146,000 ha and 188% in 2014)

338 Risks Assessment of Current Status Climate change impacts on water availability and water demand by Further assessments are ongoing. crops exceed projections. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets New and improved water conveyance and Kalu Ganga–Moragahakanda Transfer Canal Financing of this infrastructure is time- storage infrastructure constructed (9 km) and Upper Elahera Canal sliced over multiple tranches. Designs and commissioned (82 km) bid documents for Tranches 1 and 2 have been completed. All three packages under both tranches have been awarded and works are proceeding. Tendering of remaining package to start in 2021 and should be completed between Q4 2021 to Q2 2022 (under Tranche 2 and Tranche 3). North Western Province canal (96 km), two Financing of this infrastructure is time- new reservoirs, and associated sliced over multiple tranches. Designs and infrastructure commissioned bid documents for Tranche 1 have been completed. All three packages under Tranche 1 have been awarded and works are proceeding. Design and bid documents for remaining packages that will be financed under Tranche 3 have been finalized and will be tendered in 2021. Minipe Anicut heightened by 3.5 m, and Financing of this infrastructure is only under Left Bank Canal and associated Tranche 1. Designs and bid documents for infrastructure rehabilitated (74 km) all 6 packages have been completed and the packages have been awarded and works are proceeding. Estimated completion of the entire system is Q2 2022 Systems for improving water resources Recommendations from ISEWP plan The consulting package was awarded in Q3 management and productivity developed implemented during 2019–2024 2018. The works will take 3 years before recommendations are known. Recommendations from SIWRM plan This consulting services package may be approved by the government by 2024 initiated in 2021. Discussions ongoing. Multidisciplinary investment program Timely submission of periodic financing The government submitted the second management operational requests for subsequent tranches periodic financing request in Q4 2017. The third request is expected in 2021. Program outputs delivered on time and Monitoring of this indicator is ongoing. within budget Risks Assessment of Current Status Unexpected ground conditions cause implementation delays. Lack of suitable borrow materials required for dam construction has delayed procurement for one works package. Also, tunneling packages may encounter unexpected ground conditions which may affect their implementation progress. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

339 Key Undertakings Status Date There is no undertaking which affects the NA 31-Dec-2020 road map and policy framework (creation of enabling environment).

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Environment, Natural Resources & Agriculture Division, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track Submission and processing of Tranche PRF may be expedited in 2021 depending on the utilization of funds under Tranche 2. Works packages for Tranche 3 may be processed under Tranche 2 and the contract cost will be time-sliced between the two tranches. Undertakings Compliance On Track All undertakings are being complied. Tranche Performance On Track Mid-term review was conducted for Tranche 2 and the implementation schedule of the tranches have been updated. Both Tranche 1 and Tranche 2 are now on track. Overall MFF Performance On Track Implementation of the MFF is generally satisfactory. The program was affected by COVID-19 through work stoppage during Q2 and Q3 of the project. This required extension of completion dates of affected contracts through the "force majeure" clause. Program Management Unit is continuously working with the supervision consultants and contractors to ensure the health and safety in the worksite and prevent spread of the disease.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

340 50301-001 SRI : Second Integrated Road Investment Program

50301-001 SRI : Second Integrated Road Investment Program (as of 31 - Dec - 2020)

This report was prepared by Aruna Nanayakkara and validated by Chen Chen, Sri Lanka Resident Mission, SARD 50301001 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 29-Sep-2017 31-Mar-2027 9.50 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 900 900 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 5 tranche/s are expected under the MFF. Of which,2 tranche/s USD 300.0 million were approved. The investment program will improve the accessibility of the road network in Sri Lanka's rural areas, and thereby increase the involvement of the rural population in nationwide economic and social development. It will upgrade and maintain about 3,400 kilometers (km) of rural access roads to an all-weather standard; Project Description rehabilitate and maintain to a good condition about 340 km of national roads in Eastern, Northern, Uva, and Western provinces; and improve the capacity of road agencies with respect to safeguards, road safety, maintenance, research capacity, and road design and construction. Link to the RRP of the https://www.adb.org/projects/documents/sri-50301-001-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with loan ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated status) sources Closing Date sources Second Integrated Road 6-Oct-2017 150.0 0.0 0.94000 For 100% 100% On On Yes Investment Program-Tranche 9-Feb-2018 On Attention Track Track 1(Active) Track Second Integrated Road 5-Nov-2019 150.0 0.0 1.00000 On Track 100% 100% On On Yes Investment Program-Tranche 20-Jul-2020 On Track Track 2(Active) Track

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 300.0 33.3% 3.26 34.3%

3. Cumulative Disbursements (in $ million)

341 Approved Tranches 2018 2019 2020 Total (with loan status)

Second Integrated 23.8 81.6 149.8 149.8 Road Investment Program-Tranche 1 (Active) Second Integrated 86.7 86.7 Road Investment Program-Tranche 2 (Active) Total 23.8 81.6 236.5 236.5

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Connectivity between rural communities and socioeconomic centers in Sri Lanka improved.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Transport efficiency on project roads Travel time on rural project roads reduced To be assessed during project completion. increased. by 20% from 2016 rate Travel time on national project roads To be assessed during project completion. reduced by 10% from 2016 rate Average daily vehicle-km increased to 4.6 To be assessed during project completion. million Risks Assessment of Current Status Government’s budgetary constraints lead to inadequate To be assessed during road maintenance. maintenance of road assets. Problem Action Taken/Proposed none none

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Road conditions between the selected rural At least 3,400 km of rural access roads Contracts awarded to improve 3307 km of communities and socioeconomic centers improved to an all-weather standard and rural roads and 755 km completed. improved maintained under PBM contracts Performance Based Maintenance is in progress in completed road sections. At least 340 km of national roads Contracts awarded to improve 320 km of rehabilitated and maintained under PBM National roads and 45 km completed. contracts Performance Based Maintenance is in progress in completed road sections. At least three awareness sessions per Completed for all the districts in Uva district held on (i) road safety, with women province. Awareness session for all the comprising more than 50% of participants; districts in Northern, Eastern and Western and (ii) sexually transmitted diseases, provinces have commenced and ongoing. including HIV, with women comprising more than 40% of participants

342 Road conditions between the selected rural At least 30% of local maintenance workers Unlikely to be achieved. communities and socioeconomic centers hired are women improved capacity of road agencies enhanced. Knowledge and skills of at least 100 road Trainings are ongoing. Up to now more than agency staff regarding safeguards, road 150 road agency staff benefited. safety awareness, PBM contract management, and rural road design and construction increased Full set of research equipment List of equipment to be procured under the commissioned and action plan for research stage 1 has been finalized and procurement capacity enhancement implemented to be commenced in mid Q1 2021. Balance Equipment list is being finalized. Mechanistic-empirical pavement design, Recruitment of international pavement road asset management system, consultant is completed. information management system, and rural road safety guidelines developed Information technology specialist mobilized in Q4 2019. Policy measures on financial sustainability Recruitment will be commenced in Q2 2021 endorsed by MOHEH and RDA Risks Assessment of Current Status Implementation is delayed by extreme weather conditions Based on the assessment, extensions of the time for completion have been awarded Problem Action Taken/Proposed None Not Applicable

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Operations and Maintenance :The Borrower Being complied with 31-Dec-2020 shall ensure that it allocates sufficient funds for operations and maintenance of the roads to be constructed or upgraded under the project, and ensure that the funds are made available to RDA on a timely basis for the same purpose

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no key substantive changes to the MFF in 2020

F. MFF Performance Ratings (Rated by Sri Lanka Resident Mission, SARD)

Criteria Ratings Justifications and Narratives Timeliness On Track All civil works contracts have been awarded. Undertakings Compliance On Track All covenants are complied with Tranche Performance On Track Performance is in satisfactory level Overall MFF Performance On Track All the ongoing contract packages under this program have been impacted due to COVID 19 pandemic. Since mid of March 2020 and no physical construction activities could be undertaken until 20.04.2020 when the curfew was lifted but 343 many health restrictions still prevailed. The adverse Impact due to the second wave of pandemic started in October 2020 is still under evaluations. However, overall performance of the MFF is satisfactory.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports not yet due

344 Uzbekistan

Go to List of Countries Page 44483-024 UZB : MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program

44483-024 UZB : MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (as of 31 - Dec - 2020)

This report was prepared by Pawan Karki and validated by Dong-Soo Pyo, Transport and Communications Division, CWRD 44483024 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 23-Aug-2011 31-Dec-2017 23-Aug-2021 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 500 500 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 300.1 million were approved. The Second Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Program (investment program) will increase domestic and international trade. The outcome will be improved road connectivity, safety, and effective management of the Uzbekistan section of CAREC Corridor 2. The Project Description investment program will include (i) about 236 km of the reconstructed section of CAREC Corridor 2; and (ii) implemented road system sustainability plans, which relate to road safety and asset management. The investment program will finance three separate projects. Link to the RRP of the MFF http://www.adb.org/Documents/RRPs/UZB/44483/44483-024-uzb-rrp.pdf a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources Second Central 2-Sep-2011 129.3 0.0 1.00000 On 100% 100% On Track On Track Yes Asia Regional 13-Jan-2012 On Track Track Economic 10-Jul-2020 Cooperation Corridor 2 Road Investment Program - Tranche 1(Closed(1)) Second Central 10-Dec-2012 39.8 0.0 0.88000 On 83.6021% 90.4735% For On Track Yes Asia Regional 15-Aug-2013 For Track Attention Economic Attention Cooperation Corridor 2 Road Investment Program - Tranche 2(Active) Second Central 9-Dec-2015 131.0 0.0 0.94000 On 100% 100% On Track For Yes

346 Amount ($million) Performance Ratings Approval Date ADB Approved tranches ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated (with loan status) sources Closing Date sources Asia Regional 24-Nov-2016 On Track Track Attention Economic Cooperation Corridor 2 Road Investment Program (Tranche 3)(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 300.1 60% 9.36 93.6%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Second Central Asia 21.2 31.8 68.2 82.1 93.4 120.3 128.8 129.3 129.3 Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1 (Closed(1)) Second Central Asia 0.1 0.4 0.6 0.8 8.0 13.0 23.7 23.7 Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2 (Active) Second Central Asia 0.2 0.3 0.5 19.6 19.6 Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3) (Active) Total 21.2 31.9 68.6 82.6 94.2 120.5 137.1 142.8 43.3 172.6

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased domestic and international trade

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Improved road connectivity, safety, and By 2022: To be assessed after completion of the

347 effective road fund management of the Increased average total long-haul traffic investment program. The A373 highway Uzbekistan sections of CAREC Corridor 2 volume on A373 and A373/4R112 highways under Project 2 is ongoing and expected to Road in Ferghana province to 20,000 vpd (2011 be completed by Q2 2021. baseline: 10,000 vpd), and on A380 highway The Tranche 3 project experienced in Bukhara region to 2,500 vpd (2011 substantial delays due to government baseline: 1,200 vpd) transition, suspension of procurement, revisiting of design, feasibility study and cost estimates, and disagreement with ADB's recommendation for contract award. The contract with the civil works contractor was signed on 15 May 2020 while the contract with the project management and construction supervision consultant (PMCS) was signed on 15 October 2019. The notice to proceed to PMCS was issued on 22 April 2020. Commencement date for the works was notified to the contractor on 27 July 2020. Due to Covid-19 lockdown in the country, mobilization of the contractor's machinery and equipment, delays in selecting the subcontractors and delays in utility works further delayed the construction activities. Both the MFF, Project 2 and Project 3’s closing date is 23 August 2021, and ADB and the government are discussing the approach to completing works beyond this date. The government has been made aware of the difficulty in extending the MFF beyond the 10 year validity period, and that the likeliness of such extension will heavily depend on demonstration of good project progress. Should sufficient assurance be given by the government to complete Project 3 under ADB’s financing, an extension of the MFF beyond 10 years may be sought from the Board. By 2022: To be assessed after completion of the Travel time from Dautata to Bukhara investment program. reduced to 8 hours (2011 baseline: 12 hours), and from Tashkent to Osh border reduced to 5 hours (2011 baseline: 7 hours) By 2022: To be assessed after completion of the Accidents on A373 and A373/4R112 investment program. reduced to 120 per year (2009 baseline: 250 accidents per year), and on A380 to 75 accidents per year (2009 baseline: 150 accidents per year), By 2022: To be assessed after completion of the Road asset management system and road investment program. safety plans approved by the government and implemented in accordance with international standards Risks Assessment of Current Status Inadequate financial resources for road maintenance. The identified risk remains valid. Problem Action Taken/Proposed 348 None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Selected road sections of CAREC Corridor 2 By 2021: To be assessed after the completion of the Road reconstructed by the RRF and CR With pavement international roughness investment program. index of less than 4m/km: (a) T1 was financially closed on 10 July 2020, (a) 58 km of the A373 highway (between remaining works are being financed by T2 Km116 and Km190) reconstructed under and civil works implementation is ongoing. Project 1; (b) 87 km of the A380 highway (b) civil works under T3 is in initial stage. (between Km228 and Km315) Contract was signed on 15 May 2020 and reconstructed under Project 3 the contractor was mobilized in July 2020. (c) At the request of the government on 29 August 2017, ADB approved on 23 October 2017, a change in the project cancelling “Part B”, the reconstruction of about 75 km of A373/4R112 for $164 million By 2021: To be assessed after the completion of the Roads with cracks more than 10% and 10 investment program. potholes per kilometer reduced to 50% (2009 baseline: 60%) Road sector sustainability plans By 2020: Ongoing. implemented by the RRF and CR The independent quality control unit reporting to the Ministry of Finance biannually on the road construction and maintenance works By 2020: Ongoing. Public-private partnership framework in place By 2020: Ongoing. National road infrastructure safety strategy approved by the government By 2020: Ongoing. Routine annual roads maintenance budget is increased by an amount equal to or greater than the annual inflation rate By 2020: Ongoing. Road safety action plan for the investment program approved by the government and implemented under Projects 2 and 3 By 2020: Ongoing. 150 staff of the RRF and CR, and traffic police trained under road safety capacity development program under Projects 2 and 3 By 2020: Ongoing. Road Asset Management System updated quarterly by the RRF, CR and reported to the Ministry of Finance By 2020: Not yet started. Road user charges piloted on reconstructed Kamchik road section in 2014 under Project

349 Road sector sustainability plans 2 implemented by the RRF and CR By 2020: Ongoing. Specific gender action plan implemented under each project Projects completed as targeted and Project 1 completed by 30 June 2019 with Project 1 was financially closed on 10 July budgeted no cost overrun 2020. Civil works, now being financed under Project 2 is ongoing. Projects 2 and 3 completed as targeted and Project 2 is also financing works under budgeted Project 1 and the works is still ongoing. The Tranche 3 project experienced substantial delays due to government transition, suspension of procurement, revisiting of design, feasibility study and cost estimates, and disagreement with ADB's recommendation for contract award. The contract with the civil works contractor was signed on 15 May 2020 while the contract with the project management and construction supervision consultant (PMCS) was signed on 15 October 2019. The notice to proceed to PMCS was issued on 22 April 2020. Commencement date for the works was notified to the contractor on 27 July 2020. Due to Covid-19 lockdown in the country, mobilization of the contractor's machinery and equipment, delays in selecting the subcontractors and delays in utility works further delayed the construction activities. Both the MFF, Project 2 and Project 3’s closing date is 23 August 2021, and ADB and the government are discussing the approach to completing works beyond this date. The government has been made aware of the difficulty in extending the MFF beyond the 10 year validity period, and that the likeliness of such extension will heavily depend on demonstration of good project progress.. Should sufficient assurance be given by the government to complete Project 3 under ADB’s financing, an extension of the MFF beyond 10 years may be sought from the Board. Risks Assessment of Current Status None. Not applicable. Problem Action Taken/Proposed None. Not applicable.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Counterpart funds and budget allocated. Being complied with. 23-Aug-2021 Uzbekistan, through the Road Fund, will allocate routine maintenance budget in

350 accordance with the Accelerated Development Program for all existing roads and new road sections to be constructed following the expiry of their defects liability period. For each fiscal year thereafter, such budget will be increased by no less than the annual inflation rates. For implementation of the Accelerated Development Program, the Road Fund will allocate and make available, on a timely basis, sufficient funds and ensure that the road sections covered by the Accelerated Development Program are maintained in accordance with applicable standards and best international practices.

Policy Framework and Dialogue. Uzbekistan, Being complied with. 23-Aug-2021 through the Road Fund, will (i) ensure compliance with the Roadmap which identifies the institutional development actions as set out in Schedule 1 to this FFA; (ii) use the loan proceeds from Facility effectively and efficiently to implement the Investment Program and achieve its objectives; and (iii) implement the financing plan agreed for the Investment Program. Policy Framework and Dialogue. Uzbekistan, Being complied with. 23-Aug-2021 through the Road Fund, will keep ADB informed in a timely manner of any changes to and progress in implementing the Roadmap, the Investment Program and the financing plan. Uzbekistan, through the Road Fund, will consult with ADB and other donors involved in road sector in a policy dialogue affecting any of these elements and keep them regularly informed of the progress in implementing the road sector reforms.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Minor 08-Apr-2020 Minor change in MFF (extension of MFF availability period) from 31 March 2020 to 23 August 2021.

F. MFF Performance Ratings (Rated by Transport and Communications Division, CWRD)

Criteria Ratings Justifications and Narratives Timeliness Potential Problem Tranche 2 was approved on 10 December 2012 while Tranche 3 was approved on 9 December 2015 (less than 3 years). Undertakings Compliance On Track All the undertakings are being complied with. Tranche Performance Potential Problem On Track for two of the three tranches and 1 is For

351 Attention. The tranche performance is rated potential problem (one-third of the tranches, by number, under the MFF is for attention). Overall MFF Performance On Track The MFF is On Track based on the criteria/parameters in SI on MFF.

The COVID-19 lockdowns and restrictions contributed to the delays in the progress of civil works implementation activities in 2020. The spread of the coronavirus (COVID-19) in the People's Republic of China (PRC) began in December 2019 and early signs were noticed from March 2020 in Uzbekistan. The introduction of a quarantine regime throughout Uzbekistan led to a delay in the Contractor's construction works. The delays are due to lack of supply of cement in sufficient quantities, difficulties in mobilization of international staff for specific works such as Microsurfacing and materials supplies.

Through the decree of the Cabinet of Ministers of the Republic of Uzbekistan No. 322 of 23 May 23, 2020, conditional exemptions were applied for international projects for the import of special equipment and technological equipment not produced in Uzbekistan and intended for the implementation of the project. On 2 September 2020, ADB sent a letter to the EA on COVID-19 Health and Safety Plans. The EA forwarded the ADB�s recommendations for COVID-19 risk assessments to the consultants and contractors and requested that they include information regarding the results of the assessment and mitigation measures in the progress and monitoring reports. The EA also requested to incorporate the preventive measures in Health and Safety Plans, Occupation Health and Safety and Emergency Response Plans. The consultants reported to the EA about the measures that had been taken to prevent the spread of COVID-19 in the project sites. The consultants/contractors submitted their action plan dated 13 November 2020 which is being followed at site. In accordance with FIDIC conditions of contract 6.1 "Recruitment of personnel and labor" the contractors were suggested to make use of local subcontractors.

G. Completion Reports

1. MFF Completion Report

MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program : MFF Completion Report prepared by Transport and Communications Division, CWRD

2. Tranche Completion Reports

Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1 : Project Completion Report prepared by URM, CWRD Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2 : Project Completion Report prepared by URM, CWRD Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3) : Project Completion Report prepared by CWTC, CWRD

352 Viet Nam

Go to List of Countries Page 39500-013 VIE : Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program

39500-013 VIE : Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program (as of 31 - Dec - 2020)

This report was prepared by Daisuke Mizusawa and validated by Andrew Jeffries, Viet Nam Resident Mission, SERD 39500013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 14-Dec-2010 13-Dec-2020 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 540 540 0 Total ($ Million) Cofinancing Sources Non-administered a 508 European Investment Bank; KfW Bankengruppe Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 20.1 million were approved. The investment program will construct 11.3 kilometers of dual track mass rapid transit (MRT) line in Ho Chi Minh City from Ben Thanh to Tham Luong, including a depot at Tham Luong, to support the local economic development in HCMC by initiating the first stage of a MRT system. The expected impact of the investment program will be the establishment of an integrated sustainable urban transport system in project districts. The outcome is to provide competitive public transport along Project Description the project corridor. The resultant slowing of growth in the number of private vehicles on city roads will improve the urban environment, reducing accidents and air and noise pollution and making the urban environment more pedestrian friendly. The investment program also supports climate change mitigation efforts of HCMC by adopting a low-carbon transport growth path and encouraging a substantive modal shift from private vehicles to public transport, which is more energy efficient and emits less greenhouse gas. Link to the RRP of the MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 20.1 3.7% 10.05 100.5%

354 3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Ho Chi Minh City 0.1 2.7 3.5 5.3 7.3 10.4 14.5 14.5 14.5 Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1 (Closed(1)) Ho Chi Minh City 0.8 1.6 2.4 3.2 4.0 4.9 5.7 5.7 Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2 (Closed(1)) Total 0.1 2.7 4.3 6.9 9.7 13.5 18.5 19.3 5.7 20.1

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with An integrated, sustainable public transport system in six districts of Ho Chi Minh City

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Competitive MRT services along the project Reduced weighted average travel time The outcome indicator was not achieved corridor along MRT corridor by 20% from 2010 level since the MRT system was not completed. by 2018 173,800 daily loadings on MRT by 2018 The outcome indicator was not achieved since the MRT system was not completed. Risks Assessment of Current Status Policy and regulatory reforms to support modal shift not enacted CS4 consulting service assisted HCMC People's Committee (HCMC in a timely way. PC)/Management Authority for Urban Railway (MAUR)/ Public transport services not financially sustainable. Department of Transport (DOT) in developing policy and regulation to support modal shift. HCMC PC and MAUR need to Integrated services not planned, implemented, or operated review and implement policy and regulation to support modal efficiently. shift. CS4 consulting service analyzed passenger fees to maximize revenue while taking into account forecasted number of passengers and affordability. Based on output, HCMC PC needs to develop robust subsidy scheme to ensure its financial sustainability. CS4 consulting service assisted HCMC PC/MAUR/DOT in developing policy and plan to promote integrated services. HCMC PC and MAUR need to review and implement the policy and plan to achieve efficient operation of integrated services. Problem Action Taken/Proposed The project has been delayed more than 5 years. The MFF and At the government’s request, ADB approved extension of the MFF Loan 2956 were closed on 14 December 2020 without completing availability period and Loan 2956-VIE (Tranche 2) closing date to 13 the MRT Line 2 system development. December 2020 (i.e., maximum MFF availability period) in June 2018.

355 To complete construction of the MRT Line 2 system beyond December 2020, the government, HCMC PC, MAUR, and ADB have discussed several financing options since 2018. The most feasible option identified after consultation between ADB and EA/IA is to (i) let Loan 2956-VIE and the MFF elapse by end of 2020 and (ii) process a new loan to cover the cancelled and shortfall amounts after opening financial bids of the civil works packages, expected in Q4 2022.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Project 1: MRT Line 2 System Development Construction of initial site works and office Partially achieved with delay. - Initial site works and office facilities at buildings in Tham Luong depot area by end depot 2013 Contract package CP1 (Office Building and Auxiliary Building at Tham Luong Depot) was physically completed, and all payments have been made to the contractor.

Contract packge CP2 (Infrastructure Construction of Tham Luong Depot) is expected to commence in Q3 2023 under a proposed ADB new loan. Project 1: Implementation support program Completion of support program for at least Partially achieved. implemented 100 MAUR or EA agency staff in implementation issues by December 2014, CS1 (Project management and including all women staff implementation support) was closed in June 2017. To continue the program, a new CS2B consulting service package to be financed by KfW is expected to start from Q2 2022. Project 1: Social development and gender Implementation of social and gender The program will continue to be mainstreaming program implemented program measures by December 2014 implemented under under CS2B to be financed by KfW. Project 1: Integrated sustainable urban Agreed milestones for urban transport Contract CS4 (Integrated Sustainable Urban transport study policy measures, including gender Transport) provided HCMC PC/MAUR with initiatives, by July 2012 recommendation for transport policy. It is necessary for HCMC PC/MAUR to apply the policy. CS3 (Social Development and Gender Mainstreaming program) provided MAUR with Gender Action Plan, which will be reflected in physical infrastructure. Integrated sustainable urban transport Contract CS4 (Integrated Sustainable Urban study final report accepted by October Transport) was completed in June 2017. 2013 MAUR accepted the report at the same time. Project 2: Construction of MRT2 main line Completion of 9.3 km underground, 0.2 km Due to changes in design and delayed and depot transition, and 1.7 km elevated MRT2 and approval of Project Adjustment Document depot at Tham Luong, including gender and (PAD) by the Ho Chi Minh City People’s socially inclusive designs, spatial planning, Committee, following the Government’s and facilities by 2016 endorsement, and delayed remobilization of the Implementation Consultant (design and procurement support), all contracts for

356 civil works (CP3a and CP3b - Tunnels and Underground Stations, CP4 - Transition, Elevated Station, Viaduct and Spur Line) are expected to be awarded only after Q2 2023 under the proposed ADB new loan. Project 2: MRT2 E&M systems and rolling Electrical and mechanical systems and With substantial delay. stock installed and operation of metro rolling stock designed with gender and services socially inclusive features by 2014 KfW-financed system packages CP5 (Electrical and Mechanical System and Rolling Stock) and CP7 (non Electrical and Mechanical) are expected to commence after 2022/2023. Provison and operational commisioning of With substantial delay. all systems, equipment and rolling stock by 2016 Operation commissioning is expected after 2026. Risks Assessment of Current Status No risk identified. Risks under each tranche are indicated under The risks under each tranche have been identified and controlled. each project information. Problem Action Taken/Proposed 1. Due to substantial changes from the basic design to the 1. MAUR has requested the project cofinanciers (including ADB) fundamental design and price escalations since 2010 when the for additional loans to cover the cost overruns. ADB programmed a feasibility study was conducted, the estimated total project cost new (restructured) loan of $1.083 billion for 2021 standby in has increased from $1.37 billion at feasibility study stage to $2.09 2021-2023 COBP. However, due to the Government’s delayed billion (per the approved PAD). approval of the PAD (only in mid November 2019), and cancellation of the on-going procurement of the CP3a and CP3b 2. Tranche 2 and overall MFF contract packages, and delayed remobilization of the Implementation Consultant (for design and procurement support), Potential adverse impact of Covid-19 on the remobilization of the the approval of the new loan is expected to slip to 2023. Implementation Consultant (for design and procurement support) Given the current proposed financing restructure, ADB has decided and on-going land acquisition and resettlement, which may cause to (i) let the Loan 2956-VIE and the MFF elapse by end of 2020 and further delay to the overall program progress. (ii) start processing a new loan to cover the cancelled and shortfall amounts after opening financial bids of the civil works packages, expected in Q4 2022.

2. The COVID-19 pandemic had only minor impact on the overall project progress as no key civil works and equipment contract packages had commenced. The minor impact was observed in:

(i) the remobilization of the KfW-financed Implementation Consultant (IC) planned in 2020; and (ii) the land acquisition and resettlement in the six project districts in 2020.

The Management Authority for Urban Railways (MAUR), the implementing agency, took the following mitigation measures:

(i) Remobilization of IC. MAUR and IC agreed to virtual remobilization of the IC until bids evaluation, which requires strict confidentiality and on-site service in HCMC. Since there are some national and international consultants based in Viet Nam in the IC team, these consultants can facilitate bids evaluation on site. (Note that IC remobilization has been delayed due to contractual matters.) (ii) Land acquisition and resettlement. The project District Land 357 Acquisition and Resettlement Committees took prudent protective measures, including social distancing, all wearing masks, hand wash when joining meetings, small group consultations, etc. during COVID-19 outbreak, according to Ho Chi Minh City People’s Committee’s guidance, following the government’s guidance. The ADB’s meetings with the EA, and other stakeholders held virtually during COVID-19 outbreak in HCMC. No COVID-19 infection cases were reported under the project as of end of 2020.

COVID-19 Pandemic Health Risk Management. To follow ADB’s request in May 2020 for COVID-19 health risk management during construction for ongoing project, MAUR has included a clause in the bidding documents of key contract packages (CP3a, CP3b and CP4) to request contractors to integrate COVID-19 health risk management in construction’s health and safety management plan. The implementation of COVID-19 health risk management as part of construction’s health and safety management plan will be supervised by the construction supervision consultant and MAUR and reported to ADB, similar to other environment impact mitigation measures.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date HCMC PC and their concerned agencies will Being delayed. MAUR completed the 18-Jan-2021 participate in the Integrated Sustainable Integrated Sustainable Urban Transport Urban Transport study, and coordinate, study (CS4) in June 2017. The project team review and consolidate government will monitor if HCMC PC/ MAUR adopt responses to options and recommendations options and recommendations made by CS4 made by the consultant. Upon completion consultant prior to the commencement of of the report, the HCMC PC will undertake Line 2 operation. the necessary actions to implement the measures and process any regulatory or policy reforms agreed. HCMC PC will ensure that funding is Not yet due. With support from Japan 18-Jan-2021 available for regular maintenance and International Cooperation Agency (JICA), implementation, as required, of the MRT HCMC PC has established O&M body to conducted under the Investment Program. manage the MRT Line 1, which is expected Furthermore, HCMC PC will ensure that operational in 2022. The project team will annual operational and maintenance plans monitor if HCMC PC ensures to establish an are prepared for the MRT2 on the basis of O&M body for MRT line 2 and secure the agreed-upon maintenance standards, necessary funding for operation and regular passenger volumes, and assessment of maintenance. needs.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF.

F. MFF Performance Ratings (Rated by Viet Nam Resident Mission, SERD)

Criteria Ratings Justifications and Narratives Timeliness On Track Tranche 2 was approved in November 2012 (within 2 years

358 from the projected year in the RRP). However, the MFF investment program has been delayed by more than 5 years due to (i) substantial modifications of fundamental designs of the MRT Line 2 system caused by unclear project right-of- way boundary and needs for interconnection with other lines at the underground stations, (ii) the internal discussions within the government about requirement for independent verification of fundamental designs, (iii) the determination of MAUR of the appropriate bidding method, (iv) protracted development of bidding documents for large civil works contracts, (v) project adjustment process and (vi) on-going absence of the Implementation Consultant's support to finalize the bidding documents. The latest implementation schedule shows the MRT Line 2 system completion in 2026 and in operations in 2027. Undertakings Compliance Potential Problem The Integrated Sustainable Urban Transport Study, though completed, not yet implemented due to delay of the project itself, and also the subsidiary project to improve access to MRT Line 2 (Loans 3113/8279-VIE: Sustainable Urban Transport for HCMC MRT Line2 Project), which was closed in Nov. 2020. The study implementation will be deferred till later. Funding security is not yet due. Through the due diligence for the proposed new project and during the project implementation, ADB will confirm if HCMC PC ensures that annual operational and maintenance plans are prepared and secures necessary funds for O&M. Tranche Performance Potential Problem Tranche 1 was rated potential problem due to the EA's noncompliance to financial covenants (failure to submits due AEFSs), and Tranche 2s' rating is potential problem. Thus the overall tranche performance is potential problem. Overall MFF Performance Potential Problem The overall MFF performance should be Potential Problem given that 2 out 3 criteria are rated Potential Problem. The COVID-19 pandemic had only minor impact on the overall project progress as no key civil works and equipment contract packages had commenced.

G. Completion Reports

1. MFF Completion Report

Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program : MFF Completion Report prepared by Viet Nam Resident Mission, SERD

2. Tranche Completion Reports not yet due

359 41414-023 VIE : Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project

41414-023 VIE : Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project (as of 31 - Dec - 2020)

This report was prepared by Khoa Nguyen and validated by Andrew Jeffries, Viet Nam Resident Mission, SERD 41414023 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 14-Dec-2010 31-Dec-2023 13.05 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 1271 636 635 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 472.4 million were approved. The project will construct a 57.1 kilometer (km) expressway between Ben Luc and Long Thanh in the south of Ho Chi Minh City (HCMC), which is a short link of the GMS Southern Economic Corridor (SEC). The executing agency is the Vietnam Expressway Corporation (VEC), which was established under the Ministry of Transport (MOT) to develop the national expressway network in Viet Nam. The project expressway consists of a southern link to the planned HCMC Third Ring Road and an access link to the planned Bien Hoa Vung Tau expressway (see map). The starting point of the project expressway is an interchange with the existing HCMC-Trung Luong expressway, and the ending point is an interchange with the planned Bien Hoa Vung Tau expressway. The project expressway will be constructed with four lanes and the government will expand the width to eight lanes when traffic demand reaches capacity. The Project Description following six interchanges (ICs) are planned under the project: (i) IC1 with HCMC Trung Luong expressway; (ii) IC2 with National Highway 1A; (iii) IC3 with National Highway 50; (iv) IC4 with Nguyen Van Tao; (v) IC6 with Phuoc An; and (vi) IC7 with National Highway 51. IC5 with HCMC Third Ring Road and IC8 with Bien Hoa Vung Tau expressway will be constructed after the completion of the Third Ring Road and the Bien Hoa Vung Tau expressway. The project expressway is divided into a western section (19.8 km), a middle section (11.0 km), and an eastern section (26.3 km). For the expressway construction, ADB will finance the western and eastern sections, and Japan is cofinancing the middle section. The project expressway will be tolled and operated by VEC. VEC established a subsidiary company to operate and maintain the expressways through a public-private partnership concession arrangement. Link to the RRP of the MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

Approved = financing was approved but the financial agreement has not yet made effective, Active = the financial agreement was made 360 effective, Closed = Closing Date has lapsed, Overall = overall tranche performance, FM = financial management, CA = contract award, Disb. = disbursement, Safeg. = safeguards

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 472.4 37.2% 10.05 77%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Greater Mekong 0.7 1.3 11.4 32.2 70.8 129.1 166.5 186.4 186.4 Subregion Ben Luc- Long Thanh Expressway Project - Tranche 1 (Closed(1)) Greater Mekong 15.3 22.3 33.7 42.8 42.8 Subregion Ben Luc– Long Thanh Expressway Project – Tranche 2 (Active) Total 0.7 1.3 11.4 32.2 70.8 144.4 188.9 220.1 42.8 229.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Increased competitiveness of the regional economy along the SEC in southern Viet Nam and the GMS countries.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets A more efficient and safer movement of By 2023 compared to the baseline data of Not yet due for full assessment. goods and people in the greater HCMC 2011: area. The designed speed of the project (i) travel time and costs reduced by 80% for expressway is 120km per hour. The average east–west traffic in the southern HCMC travelling time on the project expressway is area; about 50% less than that on the local highways. The vehicle operation cost (VOC) would reduce about 30% if using the project expressway than that on the local highways. (ii) the number of trucks on general roads Not yet due for full assessment. and highways in HCMC reduced by 30%; Along with fast socioeconomic development in the HCMC areas, the road traffic increased fast. Although large number of trucks will divert to the project expressways, the remaining truck traffic on the local roads and highways will be still significant and likely more than that before the project. (iii) traffic accident rate per vehicle in the Not yet due for full assessment.

361 A more efficient and safer movement of project area reduced by 10%; and goods and people in the greater HCMC The total road accidents in the project area area. dropped from 2,747 cases in 2011 to 1,358 cases in 2017 (51%). (iv) the traffic volume of international cargo Not yet due for full assessment. to and from Cambodia via the GMS SEC is tripled. The foreign trade between Viet Nam and Cambodia increased by 29%. Most of the cargo was transported via GMS transport corridors. Risks Assessment of Current Status Trucks may use general roads and highways due to the To be assessed once construction is completed and expressway expressway’s high toll rate. operational. Improper operation and maintenance of the project expressway. Problem Action Taken/Proposed L2730-VIE (Loan 1), western section, cannot be completed by Loan 1 was financially closed on 5 December 2019 with a cancelled closing date, 30 June 2019. L3391-VIE (Loan 2) cannot be amount of $163.60 million. Three civil works contracts (A1, A2-2, completed within the latest revised loan closing date, 30 June 2020. and A4) still have remaining physical activities (of about 14%) and the Construction Supervision Consultant contract (C1), which will be financed under Loan 2 after Loan 1 closure, and a minor change in the scope of Tranche 2. This arrangement was agreed with VEC through a signed MOU on 6 September 2019. MOF’s formal request to ADB for transfer of remaining scope from Loan 1 to Tranche 2 is expected in February 2021.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Road density of HCMC increased. Construction work to construct the 57.1 km Partially achieved as of loan 1 closure in of 4-lane Ben Luc-Long Thanh Expressway Dec. 2019. 2. Connection between east and west completed by 2023 regions of HCMC enhanced. Under Tranche 1, about 19.8km out of 21.1 km of 4-lane expressway has been 3. Project management capacity of VEC constructed. The remaining scope of improved. western section is now scheduled to fully complete in 2022. The entire expressway 4. Financing management capacity of VEC project is scheduled to complete by mid improved. 2023. Resettlement plan implemented, addressing Being achieved. all resettlement impacts Resettlement plans (RPs) for both Loan 1 (pending activities to be implemented as part of Loan 2) and Loan 2 were prepared and are still being implemented.

A corrective action plan for both loans prepared by VEC in July 2020 is also under implementation. EIA and EMP implemented, minimizing Achieved. adverse environmental impacts through mitigation measures EIA was carried out at appraisal. Accordingly, an EMP was prepared and implemented to minimize the adverse environmental impacts identified.

362 1. Road density of HCMC increased. Permanent subsidy mechanism for Achieved. expressway projects established by 2. Connection between east and west government A permanent subsidy mechanism for regions of HCMC enhanced. expressway projects has been established by the government. 3. Project management capacity of VEC Diversified financing modality established Achieved. improved. to develop national expressway network

The government is using diversified 4. Financing management capacity of VEC financing modality to develop the national improved. expressway network. Risks Assessment of Current Status Preconstruction activities (e.g., recruitment of project supervision Delays in land acquisition and site handover are impeding civil consultant, procurement of civil works, land acquisition and works. VEC is expediting remaining cases. resettlement) delayed. No major issue at present. Project supervision consultant and civil works contractors fail to There surplus of $163.60 million under Tranche 1 was canceled at perform as required. the closing of Loan 2730 on 5 December 2019. Surplus under Loan Cost overrun due to detailed designs and general price escalation. 3391 is sufficient to cover the costs of the remaining works and services transferred from Loan 2730. Problem Action Taken/Proposed Tranche 1 Tranche 1 1. Civil works progress is still impeded by delays in land acquisition 1. 14 HHs still have pending land handover. HCMC PC has planned and handover to enforce land acquisition decision by Feb. 2021 (after the Party in Ben Luc and Binh Chanh Districts, affecting 2 packages; Congress). ADB proposes remobilizing external resettlement monitor by then, for close observation of the process. 2. Outputs 1 and 2 may not be achieved by schedule of 2022 due to the government's delayed approval revised investment policy 2. ADB team will coordinate closely with VEC/ MOT/ MISC to follow for some changes in the project scope. up with the government for their approval of the IP within Q1 2021. Tranche 2 and overall MFF Potential adverse impact of Covid-19 on the construction works Tranche 2 and overall MFF and and civil works constructions supervision due to travel COVID-19 transmission within the country has been well restriction. Consequently, the remaining scope under both controlled. No case of COVID-19 transmission in the project has tranches and the overall project progress may be delayed. been identified by December 2020. Due to COVID-19, domestic travel restrictions were introduced in March 2020 and were largely retained to June 2020. However, there was not any direct impact to the project.(*) VEC has instructed all contractors and consulting teams to prepare COVID-19 health and safety plan, which is in line with government regulations and guidelines on COVID-19 prevention and control, and in consultation with public health agencies in the area. All contractors have submitted the plans which have been reviewed and cleared by the project Construction Supervision Consultant. The EA has been monitoring the contractors’ activities and will report the status to ADB in the environmental monitoring reports.

(*) The consultants and contractors had minimized their site activities or services during that time period due to delayed payments caused by the lapse of the government Investment Policy (IP) on 30 June 2019, which prevented project payments from all sources until the Prime Ministerial approval of the policy amendment in July 2020.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

363 Key Undertakings Status Date Viet Nam will cause MOT and its line In line with the undertakings in the 14-Jan-2021 agencies to implement the guidelines with framework financing agreement regarding respect to (i) efficient management of institutional development in the transport General Road Administration and upon its sector, (i) MOT restructured its internal establishment, Vietnam Expressway organization in 2012 to strengthen its Management Administration, (ii) financial institutional capacity; (ii) MOT developed a arrangements of expressway projects and road asset management system; (iii) the financial empowerment of VEC, (iii) flexible Ministry of Finance and MOT introduced an design standards, and (iv) improved earmarked road management fund in 2012 framework for governance of the road by using revenues from the vehicle tax to sector. finance road maintenance works; (iv) MOT has the authority to decide on investors of expressway projects and expressway developers, including VEC, which are required to propose investments in expressways; (v) MOT released ownership of its state-owned contractors and they were fully privatized in 2015, and also proceeded with VEC's equitization in 2015; and (vi) MOT encourages adoption of cost-effective designs and new technologies for highway construction and operation.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes Extension of MFF Availability Period (Board 19-Oct-2020 The MFF availability period was approved approved) by the Board for extension beyond 10-year from 14 December 2020 to 31 December 2023. This major change has triggered change in timeline of the MFF and Tranches' activities, outputs and outcome indicators.

At the government's request, ADB management approved on 25 June 2020 and 9 Dec. 2020 the loan closing date extension respectively from 30 June 2020 to 14 Dec. 2020 and then to 31 Dec. 2023.

F. MFF Performance Ratings (Rated by Viet Nam Resident Mission, SERD)

Criteria Ratings Justifications and Narratives Timeliness At Risk Tranche 2 was approved in May 2016, 4 years from planned approval date of 2012 indicated in the FFA. Undertakings Compliance On Track The MFF performance is compliant with the undertakings. Tranche Performance On Track Both traches' performance was rated On Track. Overall MFF Performance Potential Problem The overall MFF performance is Potential Problem. Potential adverse impact of COVID-19 on the construction works and consulting services due to travel restriction.

G. Completion Reports

364 1. MFF Completion Report not yet due

2. Tranche Completion Reports

Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1 : Project Completion Report prepared by SETC, SERD

365 41456-013 VIE : MFF: Water Sector Investment Program

41456-013 VIE : MFF: Water Sector Investment Program (as of 31 - Dec - 2020)

This report was prepared by Satoshi Ishii and validated by Andrew Jeffries, Viet Nam Resident Mission, SERD 41456013 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 22-Feb-2011 31-Dec-2020 31-Dec-2024 13.86 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 1000 1000 0 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 4 tranche/s are expected under the MFF. Of which,4 tranche/s USD 565.6 million were approved. The Program will assist water supply companies in Viet Nam to strengthen their business practices and improve their performance. The Program will also support a capital investment program in water companies and cofinance the National Non Revenue Water (NRW) Program. The Development Program will utilize a MFF with a view to providing longer-term support to the institutional reform of the Viet Nam Water Sector for the next ten years. The MFF will be used to leverage parallel cofinancing, and most Project Description importantly to prepare access to commercial finance and increased private sector participation. The funds will be made available in tranches through loans. Four pilot cities, Da Nang, Hai Phong, Ho Chi Minh City (HCMC) and Hue were identified for project preparation in 2008. The first Periodic Financing Request (PFR1) of the MFF will only cover HCMC. Subsequent tranches would finance part of the National NRW Program and investment sub-programs for water companies in the other three cities, as well as other Vietnamese water companies. Link to the RRP of the https://www.adb.org/projects/documents/water-sector-investment-program-viet-nam-rrp MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. OutputValidated loan status) sources Closing Date sources Water Sector 7-Jun-2011 138.0 0.0 0.80000 On 90.8758% 34.1889% On Track On Yes Investment Program - 24-May-2012 For Track Track Tranche 1(Active) Attention Water Sector 7-Dec-2012 159.9 0.0 0.88000 On 100% 81.4557% For On Yes Investment Program - 18-Sep-2013 For Track Attention Track Tranche 2(Active) Attention Water Sector 27-Mar-2015 62.7 0.0 1.00000 On 95.7261% 90.0083% On Track On Yes Investment Program - 29-Mar-2016 On Track Track Track Tranche 3(Active)

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 565.6 56.6% 9.86 71.1%

3. Cumulative Disbursements (in $ million)

Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status) Water Sector 1.0 1.9 4.1 12.9 25.5 27.8 33.8 39.5 39.5 Investment Program - Tranche 1 (Active) Water Sector 0.1 0.4 13.0 18.5 28.5 65.7 97.3 130.3 130.3 Investment Program - Tranche 2 (Active) Water Sector 0.2 4.4 20.0 25.8 40.1 40.1 Investment Program - Tranche 3 (Active) Total 1.1 2.3 17.0 31.5 58.4 113.5 156.9 209.9 209.9

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Sustainable provision of safe water in Viet Nam.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Efficiency of water supply companies Meet target of water supply decree (i) water tariffs increase every 2 years. improved. 117/2007 by (i) increasing tariffs to achieve (ii) indicators were defined and being full cost recovery with each tranche, (ii) monitored. defining within 1 year and monitoring (iii) all WSCs have been equitized and most throughout program implementation up to operate with autonomy from the local 10 performance indicators for improved government. operational efficiency, and (iii) water companies becoming equitized and operating with autonomy from local government. Achieve AIM and ISO certification 9001, No longer relevant. All DMFs under 14001, 18000, 24510, and 24512 and tranches were approved to revise to Initiate implement a continuous improvement asset inventory and management of the process. water supply companies assets and implement continuous improvement process (halving the gap of selected KPIs based on annual targets). Risks Assessment of Current Status Political interference preventing successful implementation and Several WSCs cancelled their subsidiary loans. No political financial sustainability. interference observed. Problem Action Taken/Proposed None. Not applicable.

367 3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Increased coverage. Network extension to poor areas increases Constructions are ongoing. by 25% from baseline data provided in each tranche, with sex-disaggregated data reported and 100% of households headed by women connected in projected areas Improved business planning and asset and Road map for water tariff increases in Ongoing. Water tariff increases considering financial management. subproject provinces or municipalities the affordability of poor households. developed and implemented, with gender and affordability considerations integrated Effective non-revenue water reduction. Expansion of National NRW Program to Constructions are ongoing. Due to some invest $500 million in pipe repair and cancellations, the value for pipe repair and replacement replacement is now much less. Women constitute 33% of new recruits in On track to meet target. water companies Target NRW at 25% by 2020 and 20% by Ongoing for tranche 2 and tranche 3 2024 in water companies under the MFF companies. SAWACO (tranche 1) achieved. (2010 Baseline 30% with variation from 10% to 40%) Implementation of water supply decree On track to meet target. 117/2007 to ensure lifeline tariff and free connections provided to 100% of poor households and households headed by women in project areas Risks Assessment of Current Status No risk identified. Risks under each tranche are indicated under The risks under each tranche have been identified and controlled each project information. separately. Problem Action Taken/Proposed The MFF availability period is extended until December 2024 but The team requested the Executing Agency to accelerate the CW1 delayed project adjustment and slow contract implementation of implementation and recommended the government to prepare for CW1 under Tranche 1 will risk the timely construction completion financing the remaining works by the counterpart funds after 31 within this period. December 2020.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date The MFF undertakings include: (i) the All undertakings are being complied. 31-Dec-2020 government's commitment, (ii) availability of loan proceeds to relevant water utilities, (iii) safeguards compliance, (iv) operation on full-cost recovery, (v) good governance, accountability and transparency, (vi) compliance to all applicable labor laws and regulations and (vii) gender action plan implementation.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes

368 Extension of MFF Availability Period (Board 19-Oct-2020 MFF availability period is extended for 4 approved) years until 31 December 2024.

F. MFF Performance Ratings (Rated by Viet Nam Resident Mission, SERD)

Criteria Ratings Justifications and Narratives Timeliness On Track The latest tranche (tranche 4) approval was planned in 2015 and approved in December 2015. Undertakings Compliance On Track No issue. Tranche Performance Potential Problem Tranche 1 (for attention) requires continuous monitoring and follow up on protracted government's approval for loan extension and project design approvals. Tranche 2 (for attention) will become on track by processing the final disbursements for IAs and ensuring financial closure during the winding up period. Overall MFF Performance Potential Problem Out of 8 water utilities borrowing from the loan for investment, 6 completed the project by 31 December 2020, the original MFF availability period. The remaining 2 water utilities are, Saigon Water Corporation (tranche 1) and Thai Nguyen Water Joint Stock Company (tranche 3). Both water utilities awarded all contracts and awaiting for completion of their constructions. Both utilities have no safeguards issues. Regarding COVID19 impact on the MFF performance, securing loan extension and necessary permissions of tranche 1 project work were protracted at city and central government levels because they prioritized to handle the COVID19 matters. The impacts on tranche 3 project implementation was minimum.

G. Completion Reports

1. MFF Completion Report

MFF: Water Sector Investment Program : MFF Completion Report prepared by Viet Nam Resident Mission, SERD

2. Tranche Completion Reports

Water Sector Investment Program - Tranche 1 : Project Completion Report prepared by VRM, SERD Water Sector Investment Program - Tranche 2 : Project Completion Report prepared by VRM, SERD Water Sector Investment Program - Tranche 3 : Project Completion Report prepared by VRM, SERD Water Sector Investment Program PFR4 : Project Completion Report prepared by VRM, SERD

369 42039-033 VIE : Power Transmission Investment Program (MFF)

42039-033 VIE : Power Transmission Investment Program (MFF) (as of 31 - Dec - 2020)

This report was prepared by Tuan Au and validated by Andrew Jeffries, Viet Nam Resident Mission, SERD 42039033 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 16-Dec-2011 31-Dec-2020 9.04 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 730 730 0 Total ($ Million) Cofinancing Sources Non-administered a 171.012485 Agence Francaise de Developpement Cofinancing Tranches 3 tranche/s are expected under the MFF. Of which,3 tranche/s USD 296.7 million were approved. The investment program will enhance the capacity of the transmission network to balance power loads in northern, central, and southern Viet Nam. It will (i) expand the electricity transmission infrastructure by constructing and upgrading 500 kilovolt (kV) and 220 kV transmission lines and associated substations, (ii) improve the operational effectiveness and efficiency of the National Power Project Description Transmission Corporation, and (iii) support the implementation of the investment program. The approved number of MFF tranches is 3. Note: The MFF was initially scheduled into 4 tranches. However, to maintain public debt below the threshold of 65% of GDP, the Government decided not to proceed with tranche 4. Overall MFF outcome and output targets are still achievable. Link to the RRP of the MFF http://www.adb.org/Documents/RRPs/VIE/42039/42039-033-vie-rrp.pdf a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 296.7 40.6% 9.04 100%

3. Cumulative Disbursements (in $ million)

370 Approved Tranches 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Power Transmission 0.1 2.2 41.4 70.9 85.5 87.3 87.3 Investment Program - Tranche 1 (Closed(1)) Power Transmission 10.5 47.0 56.7 62.3 62.9 62.9 Investment Program - Tranche 2 (Closed(1)) Power Transmission 0.3 20.7 91.6 95.8 95.8 Investment Program - Tranche 3 (Active) Total 0.1 12.8 88.4 127.6 147.8 150.5 20.7 91.6 95.8 246.0

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with Meeting electricity demand growth from industrial, commercial and residential consumers throughout Viet Nam

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Enhanced capacity of transmission network System losses reduced to at least 8% by Achieved. to balance power load in northern, central, 2020 (2010 baseline: 10%) and southern Viet Nam Electricity intensity ratio declines to 1.28 Achieved. kWh/$ (2010 baseline: 1.36 kWh/$) Risks Assessment of Current Status Transmission network expansion delays caused by limited financing Being monitored. capacity of NPT and delays in approval of land clearance and compensation. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets Component 1: Expanded Transmission 500 kV transmission lines expanded by 476.7 km was expanded or 71% of the Network 647.6 km (2010 baseline: 3,987 km) target, including 27.2 km expanded under Tranche 1, 437 km under Tranche 2, and 12.5 km under Tranche 3. The remaining 55.2 km under Tranche 3 is under construction. At completion, expected by June 2021, the total length of 500 kV transmission lines expanded will be 531.9 km, equivalent to 79% of the MFF target. The shortfall results from cancellation of Tranche 4, which was to expand 237 km of 500 kV transmission lines by 2020. 220 kV transmission lines expanded by 162.1 km has been constructed or 160% of 101.3 km (2010 baseline: 10,820 km) the target, including 60.3 km under Tranche 371 Component 1: Expanded Transmission 1, 28.2 km under Tranche 2, and 72.6 km Network under Tranche 3. An additional 63 km is under construction. When completed by June 2021, the total length of 220 kV transmission lines expanded will be 224.1 km, equivalent to 221% of the MFF target. 500 kV/220 kV substation capacity 3,300 MVA or 94% of the MFF target has expanded by 3,500 MVA (2010 baseline: been expanded. The 200 MVA shortfall is 12,450 MVA) due to cancellation of Tranche 4. 220 kV/110 kV substation capacity The target has been exceeded, with 1,625 expanded by 1,250 MVA (2010 baseline: MVA of 220 kV substation capacity added, 28,032 MVA) equivalent to 130% of the target, including 500 MVA developed under Tranche 1 and 1,125 MVA developed under Tranche 3. Component 2: Improved Operational Progressive improvement in self-financing Substantially achieved with 2013: 21.5%; Effectiveness and Efficiency of National ratio: 20% in 2013 and 2014, and 25% in 2014: 14.7% (due to its unexpected Power Transmission Corporation 2015, and thereafter (2011 baseline: 1%) significant short-term financial obligations); 2015: 31.2%; 2016: 38.0%; 2017: 46.0%; 2018: 87.0%; 2019: 41%

Progressive improvement in debt-service- Achieved with 2013: 1.94; 2014: 1.70; 2015: coverage ratio: 1.3 in 2013 and 2014, and 2.26; 2016: 1.62; 2017: 1.65; 2018: 2.11; 1.5 in 2015, and thereafter (2011 baseline: 2019: 1.70 1.0) Progressive improvement in debt-to-equity Substantially achieved with 2013: 66:34; ratio: 85:25 in 2013, 80:20 in 2014, and 2014: 72:28; 2015: 74:26; 2016: 70:30; 2017: 75:25 in 2015, and thereafter (2011 69:31; 2018: 66:34; 2019: 65:35 baseline: 87:13) High quality trained staff in business Achieved. Vietnamese standards were planning and management, finance, strictly applied for constructions of accounting and technical functions in place transmission lines. These Vietnamese standards are mostly based on Russian and European standards. NPT conducted annual training programs in various areas to thousands staff at head offices and its subsidiaries and project management boards, including investment planning and management, financial and accounting, engineering design and optimization of transmission network, corporate and operational business plans to 180 staff at high and middle management levels. Identified and implemented transmission Achieved. Advanced technologies including loss reduction measures by 2015, and smart-grid technologies and applications thereafter promoted since 2015 in upgrading and expanding transmission network, improving transmission efficiency, and reducing transmission loss, such as remote data acquisition and management, applications of live-working operation and maintenance, use of fly camera for monitoring and operating the transmission system

372 Component 2: Improved Operational Transmission loss reduced to 2011: 2.56%; Effectiveness and Efficiency of National 2012: 2.33%; 2013: 2.69%; 2014: 2.49%; 2015: Power Transmission Corporation 2.34%; 2016: 2.36%; 2017: 2.45%; 2018: 2.44%; 2019: 2.15% Application of up to date technological Achieved. Advanced technologies and solutions in upgrading and expanding applications were promoted to meet transmission network by 2015, and national standards and international best thereafter practices for design, technical specification, construction supervision, quality control and project management Component 3: Project Implementation Number of procurement contracts per Complied with. Average of 3 procurement Support subproject is on average 2 - 5 by 2012, and contracts per subproject. thereafter (2011 baseline: 10-20 contracts) Procurement activities for each subproject Partially complied with. Procurement completed within 6 months from approval activities for some subprojects completed of PFR by 2013, and thereafter (2011 within 12 months after effectiveness of the baseline: 10 months) each PFR. Established operational environmental and Complied with. Safeguards unit were social safeguard unit with full time trained established in PMBs. A total of 32 staff from staff within NPT and PPMBs by 2014, and PMBs and NPT trained in workshops thereafter organized by ADB and World Bank on resettlement and management of social and environmental risks in power projects. Prepared technical designs and constructed Complied with. Vietnamese standards were transmission lines in accordance with strictly applied for constructions of international standards and code of transmission lines. These Vietnamese conduct by 2012, and thereafter standards are mostly based on Russian and European standards. Risks Assessment of Current Status None. The outcome targets have been achieved. System losses reduced to 6.5% by 2019 against the target of at least 8% by 2020. The electricity intensity ratio declined to 1.22 kWh/$1 by 2018 against the target of 1.28 kWh/$1 by 2020.

MFF output 1 (physical investment): • Target 1: 500 kV transmission lines expanded by 647.6 km (2010 baseline: 3,987 km). 476.7 km has been expanded or 71% of the target, including 27.2 km expanded under Tranche 1, 437 km under Tranche 2, and 12.5 km under Tranche 3. The remaining 55.2 km under Tranche 3 is under construction. At completion, expected by June 2021, the total length of 500 kV transmission lines expanded will be 531.9 km, equivalent to 79% of the MFF target. The shortfall results from cancellation of Tranche 4, which was to expand 237 km of 500 kV transmission lines by 2020 • Target 2: 220 kV transmission lines expanded by 101.3 km (2010 baseline: 10,820 km). 162.1 km has been constructed or 160% of the target, including 60.3 km under Tranche 1, 28.2 km under Tranche 2, and 72.6 km under Tranche 3. An additional 63 km is under construction. When completed by June 2021, the total length of 220 kV transmission lines expanded will be 224.1 km, equivalent to 221% of the MFF target. • Target 3: 500 kV/220 kV substation capacity expanded by 3,500 MVA (2010 baseline: 12,450 MVA). 3,300 MVA or 94% of the MFF target has been expanded. The 200 MVA shortfall is due to cancellation of Tranche 4.

373 • Target 4: 220 kV/110 kV substation capacity expanded by 1,250 MVA (2010 baseline: 28,032 MVA). The target has been exceeded, with 1,625 MVA of 220 kV substation capacity added, equivalent to 130% of the target, including 500 MVA developed under Tranche 1 and 1,125 MVA developed under Tranche 3.

MFF output 2 (non-physical investment): improvement of the operational effectiveness and efficiency of the executing agency has been substantially achieved.

MFF output 3 (non-physical investment): project implementation support has been achieved Problem Action Taken/Proposed Completion of 3 out of 9 approved subproject is delayed by 6-12 Follow up with the EA and IAs and provide support as needed for months due to delays in land clearance and travel restriction and disbursement, resettlement and environmental safeguards partial lockdown in Viet Nam during March-May 2020 because of implementation to ensure completion of the three ongoing Covid-19 pandemic. As of 31 December 2020, the overall project subprojects by June 2021. progress achieved 71.5% compared to an elapsed implementation period of 109.2%. Output 1 achieved about 63.5% of its overall scope with two targets fully achieved and two others partially achieved with 19% and 58%. It is estimated that output 1 will reach 100% by June 2021. Outputs 2 and 3 fully achieved.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date Counterpart Funding and Resources, Complied with. The executing agency 21-Jan-2021 Construction quality, and Sector fulfilled its commitment, including Development (Paras. 4-8, Schedule 6) sufficient allocation of financial, technical and human resources to implement investment program for the transmission subsector covering physical infrastructure, performance improvement measures, and a sub sector reform framework as specified in Power Development Master Plan VII (PDMP VII) to ensure sustainability of investments.

Advanced technologies and applications were promoted to meet national standards and international best practices for design, technical specification, construction supervision, quality control and project management.

Power market reforms and restructuring, following the power sector reform roadmap established in 2016 with overarching policy aspirations of increased competition and market-based prices, have been developing in three phases: Competitive Generation Market (2012-2015), Wholesale Electricity Market (2016-2021), and Competitive Retail Market (2021 onwards).

Market-based tariff reforms were initiated in 2009 and tariff levels improved towards full cost recovery. The tariff regulation

374 approved in 2017 incorporated a lower threshold of 3-5% for tariff adjustment, which allows retail tariff adjusted without seeking government approval. The transmission tariff regulation formulated with ADB TA support, provides incentives to improve the operating efficiency and performance of the executing agency.

Financial Sustainability of the executing Complied with. NPT's financial performance 21-Jan-2021 agency, NPT (Paras. 9-12, Schedule 6) has been improving over the period since market-based transmission charges regulation introduced and NPT's assets were revaluated at D15,000 billion in 2015. NPT's financial performance has consistently met agreed covenants with the exception of failing to meet target self- financing ratios in 2014. This improving performance can be attributed to a combination of increasing transmission tariffs and sales leading to rapid revenue growth and a doubling of operating profits between 2013 and 2016. This has enabled NPT to sustain an increasing level of debt since 2016. Operation Performance of NPT and Project Complied with. NPT is compliant with the 21-Jan-2021 Implementation Support (Paras. 13-14, undertakings in terms of implementation Schedule 6) support through timely establishment of environmental and social safeguards units at executing agency and implementing agencies. Staff in these units received ADB support and on-the-job trainings. NPT's safeguard staff have participated in training courses organized annually by ADB.

NPT conducted annual training programs in various areas to thousands staff at head offices and its subsidiaries and project management boards, including investment planning and management, financial management and accounting, engineering design and optimization of transmission network, corporate and operational business plans to staff at high and middle management levels. Good Governance and Anticorruption NPT is compliant with ADB's Anticorruption 21-Jan-2021 (Paras 15-16, Schedule 6) Policy (1998, as amended to date) and the Combating Money Laundering and the Financing of Terrorism Policy (2003). The provisions set forth in para. 15, Schedule 6, FFA were included in the bidding documents and contracts financed under Tranches 1-3. Requirements for disclosure of bid results were also complied through publicly disclosed on the government's procurement gazette, newspapers, and

375 quarterly progress reports.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes There were no substantive changes to the MFF in 2020.

F. MFF Performance Ratings (Rated by Viet Nam Resident Mission, SERD)

Criteria Ratings Justifications and Narratives Timeliness On Track All three tranches were processed within 1 year as projected in the RRP, specifically tranche 1 was processed in 2011, tranche 2 in 2012, and the last tranche, tranche 3 in 2015. Undertakings Compliance On Track All undertakings set forth in the MFF's framework financing agreement are generally complied with. Tranche Performance At Risk Tranche performance is rated At Risk because Tranche 3 performance is at risk due to low disbursement and slow liquidation of advance amount to project account. All liquidations to tranche 3 will be completed by 30 April 2021. Financial closure of tranche 3 will be initiated in Q2/2021. Overall MFF Performance On Track The MFF performance is on track. The MFF availability period expired on 31 December 2020.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Power Transmission Investment Program - Tranche 1 : Project Completion Report prepared by VRM, SERD Power Transmission Investment Program - Tranche 2 : Project Completion Report prepared by VRM, SERD Power Transmission Investment Program - Tranche 3 : Project Completion Report prepared by VRM, SERD

376 Pacific Regional

Go to List of Countries Page 42291-024 REG : Higher Education in the Pacific Investment Program (MFF)

42291-024 REG : Higher Education in the Pacific Investment Program (MFF) (as of 31 - Dec - 2020)

This report was prepared by Ninebeth Carandang and validated by Emma Veve, Urban, Social Development & Public Management Division, PARD 42291024 A. Basic Information

Approval Date Original Last Date Revised Last Date Duration

Availability Period 11-Jun-2012 10-Jun-2022 10.00 years ADB's own resource ($ Total ($ Million) ADB-administered funds ($ million) million) MFF Amount 20.5 19 1.5 Total ($ Million) Cofinancing Sources Non-administered a 0 N/A Cofinancing Tranches 2 tranche/s are expected under the MFF. Of which,2 tranche/s USD 20.4 million were approved. The investment program supports USP in expanding access to higher education in 12 Pacific island countries (PICs) with improved quality of learning environments and programs. The investment program includes (i) expansion of regional campuses and accommodation facilities in Kiribati and Solomon Islands; (ii) enhancing information and communication technology (ICT)-based distance learning Project Description programs; (iii) improving student services, and (iv) strengthening governance and management capacity of USP. The improved access to and quality of higher education at USP will contribute to human resource and skills development in PICs, which is essential in promoting productivity and diversification of the region's economy. Link to the RRP of the http://www.adb.org/projects/documents/higher-education-pacific-investment-program-mff MFF a Cofinancing amount in the row represents the sum of cofinancing non-administered by ADB, and therefore is outside the MFF amount.

B. Status of MFF Conversion to Tranches

1. Performance Amount ($million) Performance Ratings Approval Date ADB Approved tranches (with ADB's own Effective Date administered Overall FM CA % Disb % Safeg. Output Validated loan status) sources Closing Date sources Higher Education in the 21-Oct-2016 15.7 1.5 0.88000 On 100% 100% For For Yes Pacific Investment Program 13-Feb-2017 For Track Attention Attention - Tranche 2(Active) Attention

2. Time Lapsed Total Amount Converted ($Million) As Percentage of Approved MFF Time Lapsed (in years) As percentage of MFF Availability Period 20.4 99.5% 8.56 85.6%

3. Cumulative Disbursements (in $ million)

378 Approved Tranches 2013 2014 2015 2016 2017 2018 2019 2020 Total (with loan status)

Higher Education in 0.2 0.9 2.8 3.0 3.2 3.2 the Pacific Investment Program - Tranche 1 (Closed(1)) Higher Education in 1.0 1.0 1.0 3.0 3.0 the Pacific Investment Program - Tranche 2 (Active) Total 0.2 0.9 2.8 3.0 4.2 1.0 1.0 3.0 6.2

C. Design and Monitoring Framework with Progress on Physical and Nonphysical Investments

1. Impact

Descriptions Impact(s) the Investment Program is Aligned with USP graduates contribute to economic competitiveness and diversifications of 12 USP member countries.

2. Outcome

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets USP provides expanded/equitable access to Enrollment increases from 20,000 in 2010 to Target exceeded already. 29,918 students higher education in 12 USP member 25,500 by 2020 enrolled as of 2017 annual report. countries. At least 57% of the total enrollment are Females constitute 57% of students as of female students by 2020 (54% in 2010) 2017 annual report. Risks Assessment of Current Status Potential of bid prices coming in beyond the financing envelope The bids are under financing envelope. available. Problem Action Taken/Proposed None. Not applicable.

3. Outputs

Descriptions Performance Indicators with Targets and Current performance against performance Baselines in the RRP indicators with targets 1. Strengthened regional campuses At least 25 new classrooms operate with Kiribati campus completed yielding 6 adequate ICT equipment for mixed modes classrooms, 1 ICT laboratory. of learning including DFL by 2020 The capacity of USP dormitory facilities Not applicable. Dormitory support increases from 762 beds in 2009 to up to (originally planned under Tranche 3) was 1,072 beds in 2020 eliminated. At least 50% of dormitory residents are Not applicable. Dormitory support female by 2020 (baseline 42% in 2010) (originally planned under Tranche 3) was eliminated. 2. Enhanced ICT-based Education % of courses that utilize Moodle as a 100% of courses utilize Moodle. learning management system increases from 45% in 2010 to 90% in 2016 and 100% by 2018 At least 50% of the increased enrollment for 57% of students using ICT-based mode for distance learning is female by 2018 DFL are female. (baseline 5,457/10,463 in 2008) 379 3. Improved USP student services 2% increase in student satisfaction with Not yet done. This will be done in SOL orientation programs from xx in 2010 to xx campus. in 2020 2% increase in satisfaction of female Not yet done. This will be done in SOL students with support from xx in 2010 to xx campus. in 2020 2% increase in satisfaction of graduates with Not yet done. This will be done in SOL study programs from xx in 2010 to xx in campus. 2020 4. Strengthened USP Governance and 85% of internal audit report Data for internal audit currently being Management recommendations are complied with by compiled. 2020 (baseline 50% in 2008) Females will hold 40% of top level positions 40.97 percentage of top levels positions by 2020 (32% in 2007). held by females. 5. Strengthened project management 100% of the projected disbursement and To be assessed later capacity contract awards are achieved Risks Assessment of Current Status Potential of bid prices coming in beyond the financing envelope T2 is under financing envelope. available. Problem Action Taken/Proposed For Tranche 2, potential of bid prices coming in beyond the T2 is under financing envelope. financing envelope available.

D. Compliance with Key Undertakings in Relation to Road Map and Policy Framework

Key Undertakings Status Date USP shall remain committed to the Being complied with. 10-Jun-2022 implementation of the USP Strategic Plans 2010-2012 and 2013-2018 and the Pacific Plan insofar as the higher education sector is concerned. USP shall ensure that the entire proceeds of Being complied with. 10-Jun-2022 the loans from the Facility will be made available to utilize for the purposes agreed to with ADB in the relevant legal agreement. USP will ensure (i) timely implementation of Being complied with. 10-Jun-2022 the Investment Program, including executing the implementation arrangement set out in Schedule 3 to the FFA, and monitoring and evaluating implementation based on the Design and Monitoring Framework set out in Schedule 2 to the FFA; (ii) that all projects financed under the Facility are selected and approved in accordance with the criteria and procedures set out in Schedule 4 to the FFA; and (iii) that all projects financed under the Facility are developed, implemented, and maintained in accordance with the safeguards requirements set out in Schedule 5 to the FFA. USP will ensure that all activities undertaken Being complied with. 10-Jun-2022

380 for the preparation and implementation of the Investment Program are in compliance with ADB's relevant policies and procedures, including on procurement, disbursement, safeguards, social dimensions, gender, governance, and anticorruption measures.

Refer to Operations Manual section D14.

E. Substantive Changes to MFF

Category Date of Approval Key Substantive Changes No results found.

F. MFF Performance Ratings (Rated by Urban, Social Development & Public Management Division, PARD)

Criteria Ratings Justifications and Narratives Timeliness At Risk The mobilization of the contractor for the construction of the Solomon campus expansion was delayed by eight months due to travel restrictions brought about by the coronavirus pandemic. Initial schedule of mobilization was on 1 May 2020 however due to travel restrictions resulting from the coronavirus pandemic, the mobilization was first moved to 31 August 2020 and then 30 January 2020 when borders remain closed. Undertakings Compliance On Track The Undertakings are continuously being complied with. Tranche Performance Potential Problem Tranche 2 closing date is extended from 30 June 2020 to 10 June 2022. The procurement activities for the Solomon Campus civil works was completed and the contract was awarded on February 2020. Initial schedule of mobilization was on 1 May 2020 however due to travel restrictions resulting from the coronavirus pandemic, the mobilization was first moved to 31 August 2020 and subsequently 30 January 2020 when borders remain closed. Overall MFF Performance Potential Problem Tranche 1 is completed and rated satisfactory. The inability to commence the civil works for the Solomon Campus renders Tranche 2 as potential problem.

G. Completion Reports

1. MFF Completion Report not yet due

2. Tranche Completion Reports

Higher Education in the Pacific Investment Program - Tranche 1 : Project Completion Report prepared by PAUS, PARD

381 MFF ANNUAL PROGRESS REPORT DEFINITIONS

Ref. No. Term Meaning FACILITY UPDATE 1. Project Title - Indicates the MFF name following this naming convention: MFF – {Facility Name} 2. Project No. - Indicates the facility’s 8-digit project number 3. Country/Regional - Indicates the name of the country covered by the facility. 4. Department - Indicates the name of the department processing the MFF. 5. Approved Date - Indicates the date of ADB approval of the facility. 6 Original Closing Date - Indicates the facility’s original closing date. 7. Revised Closing Date - Indicates the facility’s revised closing date. 8. Division - Indicates the name of the division processing the MFF. 9. MFF Amount ($ million) - Indicates the approved MFF amount. 10. Source - Indicates the funding source/s of the MFF approved amount, whether it is OCR/COL. 11. Cofinancing Amount ($ million) - Indicates the DVA cofinancing amount. If not applicable, “N/A” is displayed. 12. Source - Indicates the source of the cofinancing amount. If not applicable, “N/A” is displayed. 13. Facility Summary Impact and Outcome - States the facility’s impact and outcome as indicated in the DMF report. Outputs - States the facility’s outputs as indicated in the DMF report. Significant Development of - Describes any significant development of the facility including major changes to the the facility roadmap, investment program, and policy and legal framework. 14. Expected Total No. of Tranches - Indicates the number of envisioned or pipelined tranches as presented in the RRP, if any. 15. Approved Tranches to Date - Indicates the number of approved tranches to date. 16. Approved Tranche Amount to - Indicates the current year’s cumulative tranche amount to date. Date 17. Facility Change in Scope Category - Indicates whether the category for the facility’s proposed change is major or minor. Date Approved - Indicates the date when the request for change in scope for the facility is approved. Proposed Change - Summarizes the content of the change in scope request; revisions to outcome, outputs and/or inputs; and new targets and/or indicators. 18. Completed Tranches to Date - Indicates the URL of the completed tranches’ Project Completion Report (PCR). 19. Facility Completion Report - Indicates the URL of the Facility Completion Report (FCR). Note that a facility is completed when all its tranches are closed. 20. Overall MFF Performance - Indicates the rating of the MFF. The facility will be rated on the basis of 3 separate Rating (On Track, Potential parameters: Problem, At Risk) (i) MFF delays, (ii) Tranche performance, and (iii) Compliance with undertakings. Poor performance (red rating) on account of the 3 indicators will place the facility ‘at risk’ and may lead to its suspension and possible cancellation; poor performance (red rating) on account of 2 parameters will indicate potential problems and would require RDs to draw an action plan to rectify the facility‘s performance. MFF Delays - Contributors to MFF Delays are: (i) Substantial delays in tranche processing, and/or (ii) Substantial delays in tranche implementation. Timeliness in Tranche processing will be evaluated against the tranche sequencing program forecasted in the RRP. Tranches processed … (i) within one year of the forecasted period will be given an ‘on track‘ (green) rating; (ii) between 1 and 2 years of the forecasted date will be given a ‘Potential problem‘ (yellow) rating, and (iii) beyond 2 years of the forecasted date will be given an ‘at risk‘ (red) rating. For MFFs where a time-bound tranche sequencing program was not forecasted in the RRP, only, MFF delays will be determined on the following grounds:

382 MFF ANNUAL PROGRESS REPORT DEFINITIONS

Ref. No. Term Meaning FACILITY UPDATE (i) if less than 2 years have passed since approval of the previous tranche (up to the stage where the entire MFF has been turned into tranches), a green rating is granted, (ii) if more than 2 years but less than 3 years have elapsed, a yellow rating is given; and (iii) if more than 3 years have elapsed, a red rating applies. Compliance with MFF - The assessment should include compliance with Safeguards and PCP requirements, as undertaking well as any timely Reform implementation targets. (i) Non-compliance with more than 3 undertaking will place the facility in ‘red‘ (unsatisfactory). (ii) Non-compliance with any ‘safeguards‘, ‘PCP‘ and/or ‘reform implementation‘ undertakings will place the MFF in ‘red‘ (unsatisfactory). (iii) Non-compliance with 2 undertakings (other than those outlined in the preceding sentence), will place the facility as ‘partly satisfactory‘. (iv) Compliance with all undertakings with a maximum of one exception (other than those outlined before), will signify a ‘satisfactory‘ criteria. Tranche Performance - (i) Poor performance (‘at risk‘) on 33% or more of the MFF tranches (by number) would place the MFF ‘at risk‘ (red). (ii) ‘Potential problem‘ rating on 33% or more of the MFF tranches (by number) would categorize the MFF as ‘potential problem‘ (yellow), unless a red rating is triggered. (iii) Other ratings will result ‘on track‘ (green)

383 MFF ANNUAL PROGRESS REPORT DEFINITIONS

Ref. No. Term Meaning TRANCHE UPDATE 1. Tranche Title - Indicates the tranche name following this naming convention: MFF – {tranche name} (Tranche {tranche no.}) 2. Project No. - Indicates the tranche’s 8-digit project number. 3. Country/Regional - Indicates the name of the country covered by the tranche. 4. Loan/Grant No. - Indicates the tranche’s 4-digit loan number. If loan numbers are available 5. Project Officer - Indicates the name of the mission leader or project implementation officer. 6 Department - Indicates the name of the department processing the tranche. 7. Tranche Approved Date - Indicates the tranche’s date of ADB approval. 8. Original Closing Date - Indicates the tranche’s original loan closing date. 9. Revised Closing Date - Indicates the tranche’s revised loan closing date. 10. Division - Indicates the name of the division processing the tranche. 11. Tranche Amount including - Indicates the tranche’s total approved and cofinancing amount. cofinancing ($ million) 12. Source - Indicates the funding source of the tranche amount, whether it is OCR/COL. 13. Cofinancing amount ($ million) - Indicates the tranche’s cofinancing amount. 14. Source - Indicates the funding source of the cofinancing amount. 15. Estimated Cost Overrun - Indicates the cost overrun amount incurred by the tranche at the time of preparation Amount of the MFF Annual Progress Report. If not applicable, “N/A” is indicated. 16. Estimated Amount Used for - Indicates the amount used for DED. If not applicable, “N/A” is indicated. detailed engineering design (DED) 17. Project Data Sheet (PDS) - Indicates the URL for the tranche’s PDS. 18. Tranche Summary Impact and Outcome - States the tranche’s impact and outcome as indicated in the DMF report. Outputs - States the tranche’s outputs as indicated in the DMF report Implementation Arrangements - Briefly highlights the tranche’s implementation arrangements. Implementation Status - Briefly highlights the tranche’s implementation progress. 19. Tranche Change in Scope Category - Indicates whether the category for the proposed change is major or minor. Date Approved - Indicates the date when request for change in scope was approved. Proposed Change - Summarizes the content of the change in scope request; revisions to outcome, outputs and/or inputs; and new targets and/or indicators. 20. Tranche Performance - Indicates the performance rating of the tranche as indicated in the 2011 MFF Staff instructions and PAI 5.08. It is rated in the following categories: (i) financial, (ii) contract awards, (iii) disbursements, (iv) safeguards, and (v) technical. 21. Contract Awards & Disbursements - Indicates the tranche’s cumulative amount and rate of the contract awards and (Cumulative) disbursement in the year of the preparation of the MFF annual report. 22. Significant Developments During the Year Physical Progress - Briefly describes the physical progress of the tranche. Nonphysical Progress - Briefly describes the nonphysical progress of the tranche. Scope Change - Briefly describes the tranche’s request for change in scope, if any. Undertaking with Covenants - Briefly describes the number of undertakings and covenants that the tranche has complied with.

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