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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00004438 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD 7518-AZ, IBRD 8381-AZ, and IDA 4397-AZ) ON A LOAN IN THE AMOUNT OF US$380 MILLION Public Disclosure Authorized AND A CREDIT IN THE AMOUNT OF SDR 18.8 MILLION (EQUIVALENT TO US$30 MILLION) TO THE REPUBLIC OF AZERBAIJAN FOR THE Public Disclosure Authorized SECOND NATIONAL WATER SUPPLY AND SANITATION PROJECT December 18, 2019 Water Global Practice Europe And Central Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective {Dec 11, 2019}) Currency Unit = New Azerbaijanian Manat (AZN) AZN 1.6965 = US$1 US$1.38 = SDR 1 FISCAL YEAR January 1 – December 31 Regional Vice President: Cyril E Muller Country Director: Sebastian-A Molineus Regional Director: Steven N. Schonberger Practice Manager: David Michaud Task Team Leader(s): Hadji Huseynov ICR Main Contributor: Toma Alexandrov Yanakiev and Ntombie Z. Siwale ABBREVIATIONS AND ACRONYMS AF Additional Financing CBA Cost-Benefit Analysis CMF Construction Management Firm CPF Country Partnership Framework CPS Country Partnership Strategy EBIT Earnings Before Interest and Tax EBITDA Earnings Before Interest, Tax, Depreciation, and Amortization ENPV Economic Net Present Value ERR Economic Rate of Return EU European Union GDP Gross Domestic Product GIS Geographic Information System GoA Government of Azerbaijan HTIC Hovsan Training and Innovation Center ICR Implementation Completion and Results Report IFI International Financial Institution IFRS International Financial Reporting Standards IMC Institutional Modernization Component IRDD International Relations and Development Department IRR Internal Rate of Return ISR Implementation Status and Results Report LA Legal Agreement LDP Letter of Development Policy M&E Monitoring and Evaluation NPV Net Present Value NWSSP National Water Supply and Sanitation Project O&M Operations and Maintenance PAD Project Appraisal Document PAP Project-affected Person PDO Project Development Objective PE Persons Equivalent PIU Project Implementation Unit PMU Project Management Unit RAP Resettlement Action Plan SAWMA State Amelioration and Water Management Agency SAWMC Azerbaijan Amelioration and Water Management Open Joint Stock Company SCADA Supervisory Control and Data Acquisition SNWSSP Second National Water Supply and Sanitation Project WSS Water Supply and Sanitation WWTP Waste Water Treatment Plant TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 6 A. CONTEXT AT APPRAISAL .........................................................................................................6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION .............................................................. 11 II. OUTCOME .................................................................................................................... 15 A. RELEVANCE OF PDOs ............................................................................................................ 15 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 15 C. EFFICIENCY ........................................................................................................................... 19 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 21 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 21 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 23 A. KEY FACTORS DURING PREPARATION ................................................................................... 23 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 23 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 25 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 25 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 25 C. BANK PERFORMANCE ........................................................................................................... 28 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 29 V. LESSONS AND RECOMMENDATIONS ............................................................................. 30 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 32 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 41 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 43 ANNEX 4. RESTRUCTURING .................................................................................................. 44 ANNEX 5. EFFICIENCY ANALYSIS ........................................................................................... 49 ANNEX 6. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 61 ANNEX 7. SUPPORTING DOCUMENTS (IF ANY) ..................................................................... 63 ANNEX 8. MAP .................................................................................................................... 64 The World Bank Second National Water Supply and Sanitation Project (P109961) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P109961 Second National Water Supply and Sanitation Project Country Financing Instrument Azerbaijan Investment Project Financing Original EA Category Revised EA Category Full Assessment (A) Full Assessment (A) Organizations Borrower Implementing Agency Amelioration and Water Management Open Joint Stock Ministry of Finance of Azerbaijan Republic Company Project Development Objective (PDO) Original PDO To improve the availability, quality, reliability and sustainability of water supply and sanitation (WSS) services in selected regional (rayon) centers in Azerbaijan. Revised PDO To improve the quality and reliability of water supply and expand water supply and sanitation services in selected regional(rayon)centers in Azerbaijan. Page 1 of 64 The World Bank Second National Water Supply and Sanitation Project (P109961) PDO as stated in the legal agreement LA dated September 5, 2008. To improve the availability, quality, reliability and sustainability of water supply and sanitation services of the Borrower. AF and amendment of LA dated October 22, 2014. To improve the quality and reliability of water supply and expand water supply and sanitation services in selected regional (rayon) centers in Azerbaijan. FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 30,000,000 30,000,000 27,841,460 IDA-43970 230,000,000 230,000,000 230,000,000 IBRD-75180 150,000,000 150,000,000 150,000,000 IBRD-83810 Total 410,000,000 410,000,000 407,841,460 Non-World Bank Financing 0 0 0 Borrower/Recipient 150,000,000 234,000,000 234,000,000 Total 150,000,000 234,000,000 234,000,000 Total Project Cost 560,000,000 644,000,000 641,841,460 KEY DATES ApprovalFIN_TABLE_DAT Effectiveness MTR Review Original Closing Actual Closing A 27-May-2008 13-Jul-2009 29-Oct-2012 28-Feb-2013 30-Jun-2019 Page 2 of 64 The World Bank Second National Water Supply and Sanitation Project (P109961) RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 16-Oct-2009 0 Change in Implementing Agency Change in Results Framework 27-Jan-2012 40.53 Change in Implementing Agency Change in Project Development Objectives Change in Results Framework Change in Components and Cost 26-Feb-2013 129.80 Change in Loan Closing Date(s) 22-Dec-2014 211.89 Additional Financing Change in Implementing Agency Change in Project Development Objectives Change in Results Framework Change in Loan Closing Date(s) 09-Jun-2017 313.12 Change in Loan Closing Date(s) 27-Nov-2018 392.16 Change in Loan Closing Date(s) KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 26-Jun-2008 Satisfactory Satisfactory 0 02 07-Dec-2008 Satisfactory Satisfactory 0 03 12-Jul-2009 Unsatisfactory Unsatisfactory 0 04 20-Feb-2010 Unsatisfactory Unsatisfactory 0 Moderately 05 09-May-2010 Moderately Unsatisfactory 2.50 Unsatisfactory Moderately 06 09-Nov-2010 Moderately Unsatisfactory 2.66 Unsatisfactory 07 05-Jul-2011 Moderately Satisfactory Moderately Satisfactory 13.13 Page 3 of 64 The World Bank Second National Water Supply and Sanitation Project (P109961) 08 05-Feb-2012 Moderately Satisfactory Moderately Satisfactory 40.53 09 02-May-2012 Moderately Satisfactory Moderately Satisfactory 59.98 Moderately 10 26-Dec-2012 Moderately Unsatisfactory 124.75 Unsatisfactory 11 29-May-2013 Moderately Satisfactory Moderately Satisfactory 140.90 12 27-Dec-2013 Moderately Satisfactory Moderately Satisfactory 164.92 13 28-Jun-2014 Moderately Satisfactory Moderately Satisfactory 176.08 14 17-Dec-2014 Satisfactory Moderately Satisfactory 211.89 15 13-May-2015 Satisfactory Moderately Satisfactory 223.58 16 08-Nov-2015 Satisfactory Moderately
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