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World Bank Document FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD3515 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR35.5 MILLION (US$50 MILLION EQUIVALENT) Public Disclosure Authorized AND A GRANT FROM THE AFGHANISTAN RECONSTRUCTION TRUST FUND IN THE AMOUNT OF US$150 MILLION TO THE ISLAMIC REPUBLIC OF AFGHANISTAN FOR AN Public Disclosure Authorized AFGHANISTAN WATER, SANITATION, HYGIENE AND INSTITUTIONAL SUPPORT PROJECT November 13, 2020 Water Global Practice South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of Public Disclosure Authorized their official duties. Its contents may not otherwise be disclosed without World Bank authorization. The World Bank Afghanistan Water, Sanitation, Hygiene and Institutional Support Project (P169970) CURRENCY EQUIVALENTS (Exchange Rate Effective October 31, 2020) Currency Unit = US$ US$ 1 = SDR 0.7084 FISCAL YEAR December 21 - December 20 Regional Vice President: Hartwig Schafer Country Director: Henry G. R. Kerali Regional Director: John A. Roome Practice Manager: Michael Haney Task Team Leader(s): Sana Kh.H. Agha Al Nimer, Maximilian Leo Hirn The World Bank Afghanistan Water, Sanitation, Hygiene and Institutional Support Project (P169970) ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank NHCA National Hydrology Committee for Afghanistan AFD Agence Française de Développement NRW Non-Revenue Water ARTF Afghanistan Reconstruction Trust Fund NSIA National Statistics and Information Authority AUWSSC Afghanistan Urban Water Supply and NWARA National Water Affairs Regulatory Authority Sewerage Corporation CERC Contingent Emergency Response Component O&M Operations and Maintenance COVID-19 Coronavirus Disease 2019 PCC Project Coordination Committee CPF Country Partnership Framework PCT Project Coordination Team ERRP Emergency Response and Recovery Plan PIU Project Implementation Unit ESCP Environmental & Social Commitment Plan POM Project Operations Manual ESIA Environmental and Social Impact Assessment RPF Resettlement Policy Framework ESMF Environmental and Social Management SBU Strategic Business Unit (SBU) Framework ESMP Environmental and Social Management Plan SCoWLE Supreme Council of Water, Land and Environment ESS Environmental and Social Standard SDGs Sustainable Development Goals GBV Gender-Based Violence SEP Stakeholder Engagement Plan GHG Greenhouse Gas SIDA Swedish International Development Cooperation Agency GIZ Gesellschaft für Internationale Zusammen- SOP Series of Projects arbeit (German Development Agency) GoIRA Government of the Islamic Republic of SSBU Sub-Strategic Business Unit Afghanistan GRM Grievance Redress Mechanism tCO2 Tons of Carbon dioxide HSBU Herat Strategic Business Unit UNAMA United Nations Assistance Mission in Afghanistan IDA International Development Association UNDP United Nations Development Program IEG Independent Evaluation Group USAID United States Agency for International Development IUFR Interim Audited Financial Report WASH Water, Sanitation and Hygiene IWRM Integrated Water Resources Management WHO World Health Organization JICA Japan International Cooperation Agency WSS Water Supply and Sanitation KfW Kreditanstalt fuer Wiederaufbau (German WTP Water Treatment Plant Development Bank) KSBU Kabul Strategic Business Unit NHCA National Hydrology Committee for Afghanistan KnSBU Kandahar Strategic Business Unit NRW Non-Revenue Water KOICA Korean International Cooperation Agency NSIA National Statistics and Information Authority LPCD Liters per capita per day NWARA National Water Affairs Regulatory Authority LMP Labor Management Procedures O&M Operations and Maintenance M&E Monitoring and Evaluation PCT Project Coordination Team MAIL Ministry of Agriculture, Irrigation & Livestock The World Bank Afghanistan Water, Sanitation, Hygiene and Institutional Support Project (P169970) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 6 A. Country Context ............................................................................................................................ 6 B. Sectoral and Institutional Context .................................................................................................... 7 C. Relevance to Higher Level Objectives ............................................................................................. 10 D. The Program – Series of Projects (SoP) ......................................................................................... 12 II. PROJECT DESCRIPTION .................................................................................................. 12 A. Project Development Objective...................................................................................................... 14 B. Project Components ................................................................................................................... 14 C. Project Beneficiaries ....................................................................................................................... 17 D. Results Chain .................................................................................................................................. 17 E. Rationale for Bank Involvement and Role of Partners .................................................................... 18 F. Lessons Learned and Reflected in the Project Design .................................................................... 19 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 20 A. Institutional and Implementation Arrangements .......................................................................... 20 B. Results Monitoring and Evaluation Arrangements ......................................................................... 21 C. Sustainability ................................................................................................................................... 21 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 23 A. Technical, Economic and Financial Analysis ................................................................................... 23 Technical ............................................................................................................................................. 23 Economic and Financial Analysis......................................................................................................... 24 B. Fiduciary .......................................................................................................................................... 25 C. Legal Operational Policies ............................................................................................................... 26 D. Environmental and Social ............................................................................................................... 27 V. GRIEVANCE REDRESS SERVICES ..................................................................................... 30 VI. KEY RISKS ..................................................................................................................... 30 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 32 ANNEX 1: Detailed Project Description .......................................................................... 44 ANNEX 2: Implementation Arrangements and Support Plan .......................................... 54 ANNEX 3: Environmental and Social .............................................................................. 64 ANNEX 4: Financial and Economic Analysis .................................................................... 71 ANNEX 5. Team List ...................................................................................................... 80 ANNEX 6: Map ............................................................................................................. 81 The World Bank Afghanistan Water, Sanitation, Hygiene and Institutional Support Project (P169970) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Afghanistan Afghanistan Water, Sanitation, Hygiene and Institutional Support Project Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P169970 Substantial Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [✓] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Enhanced Implementation Support (HEIS) Expected Approval Date Expected Closing Date 11-Dec-2020 29-Jan-2026 Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective (PDO) is to improve access to and quality of water supply in selected cities and to strengthen the capacity of AUWSSC to deliver sustainable services in order to contribute to national efforts to manage COVID-19 and other disasters.
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