The World Bank Implementation Status & Results Report China: Liaoning Safe and Sustainable Urban Water Supply Project (P158713)

China: Liaoning Safe and Sustainable Urban Water Supply Project (P158713)

EAST ASIA AND PACIFIC | China | Water Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 7 | APPROVED | ISR46149 | Public Disclosure Authorized

Implementing Agencies: Liaoning Urban Construction and Renewal Project Management Company Limited (LUCRPMC), PEOPLE'S REPUBLIC OF CHINA

Key Dates

Key Project Dates

Bank Approval Date: 06-Jun-2018 Effectiveness Date: 23-Oct-2018 Planned Mid Term Review Date: 21-May-2021 Actual Mid-Term Review Date: 22-Mar-2021 Original Closing Date: 30-Jun-2023 Revised Closing Date: 30-Jun-2023 pdoTable

Public Disclosure Authorized Project Development Objectives

Project Development Objective (from Project Appraisal Document) The project development objectives are to improve water quality and operational efficiency of selected water supply utilities in the project areas.

Has the Project Development Objective been changed since Board Approval of the Project Objective? No

Components Table

Name Component 1: Water supply service infrastructure improvement:(Cost $287.14 M) Component 2: Water supply service management improvement:(Cost $57.08 M) Component 3: Project Implementation support and institutional strengthening:(Cost $16.94 M) Public Disclosure Authorized

Overall Ratings

Name Previous Rating Current Rating

Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Moderate

Implementation Status and Key Decisions

At mid-point, the project has made significant progress towards achieving the project development objectives, despite the challenges created by the COVID-19 pandemic. The project performance monitoring and evaluation report indicated that the NRW rate has decreased in all WSCs, and particularly the NRW rate in Gaizhou has decreased considerably from 64.10 percent to 43.15 percent. The direct project beneficiaries reached to 902,671 people. The physical infrastructure system upgrading from water treatment plants and water reservoirs, pump and booster stations,

Public Disclosure Authorized transmission and distribution pipelines and household water service connections, as well as installation of district, bulk and end-user water meters, together with the implementation of the water supply service management plans such as non-revenue water (NRW) reduction and energy efficiency improvement, has helped improve the water supply service. However, the overall project implementation is behind schedule. The implementation progress is uneven among the project water supply companies (WSCs) with the smaller companies, Fushun and Gaizhou leading the way. The total commitment of the IBRD Loan was 52 percent, while the Loan disbursement stands at 20.24 percent. The project implementation progress and loan disbursement are behind schedule but expected to improve significantly in the coming months. As agreed during the mid-term review, the project is

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expected to be restructured in the first quarter of fiscal year 2022 to reflect some adjustments in the project which became necessary in the course of implementation.

Risks

Systematic Operations Risk-rating Tool

Risk Category Rating at Approval Previous Rating Current Rating

Political and Governance Low Low Low Macroeconomic Low Low Low Sector Strategies and Policies Low Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Substantial Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other Low Substantial Substantial Overall Moderate Substantial Moderate

Results

PDO Indicators by Objectives / Outcomes

Direct project beneficiaries

IN00975618 ►Direct project beneficiaries (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 580,716.00 902,671.00 5,690,600.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 The direct project benefits reached 902,671 with the contributions from both the IBRD loan and Comments: counterpart fund supported activities.

IN00975619 ►Female beneficiaries (Percentage, Custom)

Baseline Actual (Previous) Actual (Current) End Target

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Value 0.00 49.00 49.00 49.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023

Supplemental to the Direct Project Beneficiaries Indicator Comments:

Compliance with water quality Health Standards

IN00975615 ►Compliance with water quality Health Standards (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target Shenyang: 33% Shenyang:100% Shenyang:100% Shenyang:100% Fushun:33% Fushun:37.74% Fushun:100% Fushun:37.74% Anshan:33% Anshan:100% Anshan:100% Anshan:100% Value Fuxin:33% Fuxin:32.07% Fuxin:100% Fuxin:32.07% Gaizhou:33% Gaizhou:30.19% Gaizhou:100% Gaizhou:30.19% Weighted Average: Weighted Weighted Weighted Average:60% 33.04% Average:60% Average:100% Date 28-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 This indicator is proposed to be revised during the upcoming restructuring. This PDO indicator was proposed to be changed to an intermediate indicator of “numbers of self-tested water quality parameters of each WSC”. A new PDO indicator of “water quality management system improved” was proposed to be added. Comments:

The results reported in this ISR were the same as the previous ones. Fushun, Fuxin and Gaizhou WSCs have not sent their water samples to provincial labs for all 106 parameter tests yet.

Non-Revenue-Water in each project city

IN00975616 ►Non-Revenue-Water in each project city (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target Shenyang:33.0% Shenyang:33.62% Shenyang:29.94% Shenyang:29.8% Fushun:38.8% Fushun:39.95% Fushun:35.70% Fushun:22.1% Value Anshan:30.9% Anshan:25.69% Anshan:25.47% Anshan:24.0% Fuxin:25.7% Fuxin:21.23% Fuxin:21.20% Fuxin:16.2% Gaizhou:64.1% Gaizhou:66.7% Gaizhou:43.15% Gaizhou:35.1% Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 With the gradual relief of the COVID-19 pandemic, some industries started operating and the residential water fee collection gradually resumed. As a result, the non-revenue water (NRW) has decreased in all Comments: five WSCs.

Energy consumption by the water utilities in each project city

IN00975617 ►Energy consumption by the water utilities in each project city (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target

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Weighted Average:0.61 Weighted Average:0.82 Weighted Weighted Average: kwh/m3 kwh/m3 Average:0.776 kwh/m3 0.51 kwh/m3 Shenyang:0.58 Shenyang:0.56 Shenyang:0.81 Shenyang:0.47 Value Fushun:0.60 Fushun:0.553 Fushun:0.55 Fushun:0.51 Anshan:0.46 Anshan:0.399 Anshan:0.442 Anshan:0.45 Fuxin:0.96 Fuxin:0.9 Fuxin:0.88 Fuxin:0.84 Gaizhou:1.11 Gaizhou:1.86 Gaizhou:1.15 Gaizhou:0.36 Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 In the PAD, this indicator was defined as average energy consumption per m3 of water sold (billed) of each water company. However, it is found that Shenyang WSC was calculated as the average energy consumption per m3 of water supplied since appraisal. The indicator achievement of Shenyang WSC was corrected in this ISR and reported as the average energy consumption per m3 of water sold (billed). Comments: Therefore, the result of Shenyang WSC was significant increased due to the change of calculation method. The issue will be considered in the upcoming restructuring, and the baseline and end target of Shenyang WSC will be revised accordingly.

Overall Comments PDO

The indicator target achievements are based on the client's project performance M&E report of March 2021.

Intermediate Results Indicators by Components

Water supply service infrastructure improvement

IN00975621 ►Length of new or rehabilitated main pipelines for water supply (Kilometers, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 52.77 72.99 300.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 The indicator reached 72.99 km with the contributions from both the IBRD loan and counterpart funded Comments: activities.

IN00975624 ►Number of secondary booster pumps installed or rehabilitated (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 38.00 38.00 270.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 The indicator reached 38 with the contributions from both the IBRD loan and counterpart fund supported Comments: activities.

IN00975627 ►Number of district water meters installed (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

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Value 0.00 335.00 375.00 945.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 The indicator reached 375 with the contributions from both the IBRD loan and counterpart fund supported Comments: activities.

IN00975630 ►Number of water meters installed (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 51,148.00 97,290.00 115,000.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 The indicator reached 97,290 with the contributions from both the IBRD loan and counterpart fund Comments: supported activities.

Water supply service management improvement

IN00975620 ►Working Ratio (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target Shenyang:0.85 Shenyang:0.86 Shenyang:0.85 Shenyang:0.80 Fushun:0.95 Fushun:0.9553 Fushun:0.99 Fushun:0.85 Value Anshan:1.02 Anshan:0.97 Anshan:1.04 Anshan:0.90 Fuxin:0.88 Fuxin:0.90 Fuxin:0.90 Fuxin:0.85 Gaizhou:1.30 Gaizhou:1.25 Gaizhou:1.1 Gaizhou:0.95 Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023

IN00975623 ►Customer satisfaction with the quality of water supply services (Percentage, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 65.00 86.31 86.31 75.00

Date 27-Jun-2017 28-Feb-2020 28-Feb-2020 30-Jun-2023 The second customer satisfaction survey will be conducted shortly after the mid-term review. The new Comments: results will be reported in the next ISR.

IN00975626 ►Percentage of women satisfied with the quality of water supply services (Percentage, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 65.00 86.84 86.84 75.00

Date 27-Jun-2017 28-Feb-2020 28-Feb-2020 30-Jun-2023

Supplemental to customer satisfaction with the quality of water supply services Comments:

IN00975629

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►Number of cities that have hydraulic network models with 24 hours’ simulation capability (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 1.00 1.00 1.00 3.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023

IN00975631 ►Number of cities that have computerized Asset Management systems (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 0.00 0.00 5.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 Under this project, all WSCs are developing new asset management systems or improving their existing Comments: systems. These activities are still in progress.

IN00975632 ►Number of implementation ready PPP transactions prepared under the project (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 0.00 0.00 2.00

Date 31-Aug-2018 31-Aug-2020 28-Feb-2021 30-Jun-2023

During the MTR, this indicator was proposed to be dropped in the upcoming restructuring. Comments:

Project implementation support and institutional strengthening

IN00975622 ►Number of water utility staff received training on asset management systems, water quality monitoring, and pipe leakage detection and repairing (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 2,054.00 2,118.00 754.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023

IN00975625 ►Number of Female Staff received training on asset management systems, water quality monitoring, and pipe leakage (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 815.00 832.00 300.00

Date 27-Jun-2017 31-Aug-2020 28-Feb-2021 30-Jun-2023 Supplemental to Number of water utility staff received training on asset management systems, water Comments: quality monitoring, and pipe leakage detection and repairing indicator

IN00975628 ►Grievances responded and/or resolved within the stipulated service standards for response times (Text, Custom)

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Baseline Actual (Previous) Actual (Current) End Target Shenyang:99% Shenyang:82.39% Shenyang:82.39% Shenyang:99% Fushun:99% Fushun:90.12% Fushun:90.12% Fushun:99% Value Anshan:99% Anshan:86.18% Anshan:86.18% Anshan:99% Fuxin:99% Fuxin:86.27% Fuxin:86.27% Fuxin:99% Gaizhou:99% Gaizhou:62.92% Gaizhou:62.92% Gaizhou:99% Date 27-Jun-2017 28-Feb-2020 28-Feb-2020 30-Jun-2023 The second customer satisfaction survey will be conducted shortly after the mid-term review. During the Comments: MTR, this indicator was proposed to be revised in the upcoming restructuring.

Performance-Based Conditions

Data on Financial Performance

Disbursements (by loan)

Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed

P158713 IBRD-88370 Effective USD 250.00 250.00 0.00 50.61 199.39 20%

Key Dates (by loan)

Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date

P158713 IBRD-88370 Effective 06-Jun-2018 06-Aug-2018 23-Oct-2018 30-Jun-2023 30-Jun-2023

Cumulative Disbursements

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PBC Disbursement

Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC

Restructuring History

There has been no restructuring to date.

Related Project(s)

There are no related projects.

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