Document of The World Bank
Public Disclosure Authorized Report No: ICR00003579
IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-50380 IDA-H3580 IDA-H7540)
ON A
GRANT IN THE AMOUNT OF SDR 7.6 MILLION (US$ 12.0 MILLION EQUIVALENT)
AND AN Public Disclosure Authorized ADDITIONAL FINANCING CREDIT IN THE AMOUNT OF SDR 5.5 MILLION (US$ 8.7 MILLION EQUIVALENT)
AND AN
ADDITIONAL FINANCING GRANT IN THE AMOUNT OF SDR 4.5 MILLION (US$ 7.1 MILLION EQUIVALENT)
TO THE Public Disclosure Authorized KYRGYZ REPUBLIC
FOR THE
BISHKEK AND OSH URBAN INFRASTRUCTURE PROJECT
May 26, 2016
Public Disclosure Authorized Social, Urban, Rural and Resilience Global Practice Central Asia Country Unit Europe and Central Asia Region CURRENCY EQUIVALENTS
(Exchange Rate Effective April 7, 2016)
Currency Unit = Kyrgyzstan Som (KGS) XDR 1.00 = US$ 1.41 US$ 1.00 = KGS 69.98
January 1 – December 31
ABBREVIATIONS AND ACRONYMS
ARIS Community Development and Investment Agency of Kyrgyz Republic BOUIP Bishkek and Osh Urban Infrastructure Project BVK Bishkek Vodokanal CPS Country Partnership Strategy EBRD European Bank for Reconstruction and Development EMF Environment Management Framework EMP Environment Management Plan ERR Economic Rate of Return ESW Economic and Sector Work FY Fiscal Year GIS Geographic Information System ICR Implementation Completion Review IDA International Development Association IFIs International Financing Institutions ISR Implementation Support Report KGS Kyrgyzstan Som M&E Monitoring and Evaluation MPU Municipal Project Unit MTR Mid-Term Review NPV Net Present Value NSDS National Sustainable Development Strategy PAD Project Appraisal Document PDO Project Development Objective PHRD Policy and Human Resources Development PIU Project Implementation Unit PPF Project Preparation Facility RPF Resettlement Policy Framework RWSSP Rural Water Supply and Sanitation Project QER Quality Enhancement Review SAACCS State Agency for Architecture, Construction and Communal Services SDR Standard Drawing Rights STICBP Small Towns Infrastructure and Capacity Building Project
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TA Technical Assistance TOS Territorial Organization of Self-Governance TTL Task Team Leader UDP Urban Development Project USD United States Dollar VIP Village Investment Project
Vice President: Cyril Muller Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Acting Country Director: Mariam Sherman Sector Manager: David Sislen Project Team Leader: Kremena Ionkova, Paula Restrepo Cadavid ICR Team Leader: Anna I. Gueorguieva
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THE KYRGYZ REPUBLIC BISHKEK AND OSH URBAN INFRASTRUCTURE PROJECT
CONTENTS
Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph
1. Project Context, Development Objectives and Design ...... 1 2. Key Factors Affecting Implementation and Outcomes ...... 8 3. Assessment of Outcomes ...... 13 4. Assessment of Risk to Development Outcome ...... 22 5. Assessment of Bank and Borrower Performance ...... 23 6. Lessons Learned...... 25
Annex 1. Project Costs and Financing ...... 27 Annex 2. Outputs by Component...... 28 Annex 3. Economic and Financial Analysis ...... 37 Annex 4. Bank Lending and Implementation Support/Supervision Processes ...... 43 Annex 5. Beneficiary Survey Results ...... 45 Annex 6. Stakeholder Workshop Report and Results ...... 53 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ...... 55 Annex 8. List of Supporting Documents ...... 64 MAP
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A. Basic Information Bishkek and Osh Urban Country: Kyrgyz Republic Project Name: Infrastructure Project IDA-50380,IDA- Project ID: P104994 L/C/TF Number(s): H3580,IDA-H7540 ICR Date: 05/26/2016 ICR Type: Core ICR Lending Instrument: SIL Borrower: KYRGYZ REPUBLIC Original Total XDR 7.60M Disbursed Amount: XDR 17.28M Commitment: Revised Amount: XDR 17.28M Environmental Category: B Implementing Agencies: Community Development and Investment Agency of Kyrgyz Republic (ARIS) Co-financiers and Other External Partners:
B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 03/23/2007 Effectiveness: 07/29/2008 07/29/2008 Appraisal: 01/28/2008 Restructuring(s): 01/12/2012 Approval: 03/18/2008 Mid-term Review: 10/25/2010 02/21/2011 Closing: 06/30/2012 12/31/2015
C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Significant Bank Performance: Satisfactory Borrower Performance: Satisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance:
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C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of Supervision Yes None time (Yes/No): (QSA): DO rating before Satisfactory Closing/Inactive status:
D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 2 2 Solid waste management 3 3 Sub-national government administration 14 14 Urban Transport 23 23 Water supply 58 58
Theme Code (as % of total Bank financing) City-wide Infrastructure and Service Delivery 20 20 Municipal governance and institution building 40 40 Urban services and housing for the poor 40 40
E. Bank Staff Positions At ICR At Approval Vice President: Cyril E Muller Shigeo Katsu Acting Country Director: Mariam J. Sherman Annette Dixon Practice Manager: David N. Sislen Wael Zakout Kremena M. Ionkova Project Team Leaders: Jonathan S. Kamkwalala Paula Restrepo Cadavid ICR Team Leader: Anna Gueorguieva ICR Primary Author: Anna Gueorguieva
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F. Results Framework Analysis
Project Development Objectives (from Project Appraisal Document)
The Project Development Objective (PDO) of the proposed Bishkek and Osh Urban Infrastructure Project (BOUIP) is to improve the living conditions in selected semi-informal settlements (novostroiki) in Bishkek and Osh, the two largest cities of the Kyrgyz Republic, by increasing the availability of basic infrastructure to the residents of these areas.
Revised Project Development Objectives (as approved by original approving authority)
The revised PDO is to increase the availability of basic urban services in semi- formal settlements known as new housing developments (novostroiki) in the cities of Bishkek and Osh, as well as in selected small towns of the Kyrgyz Republic, and to increase the availability of social infrastructures in the cities of Bishkek and Osh and in both the selected small towns and other small towns.
(a) PDO Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years People in project areas provided with access to improved water sources under the Indicator 1 : project (Percent, Core) – Bishkek, Osh, Batken, Isfana, Naryn. Value quantitative or 0 N/a 100 percent 128 percent of target Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015 Target surpassed. Indicator added at restructuring. The number of beneficiaries as per the Project Paper is as follows:
Town Target/Beneficiaries Actual/Beneficiaries Bishkek 85,000 106,337 Osh 22,000 50,000 Batken 24,411 21,000 Isfana 6,368 13,555 Comments Naryn 2,865 3,973 (incl. % Talas 40,331 20,460 achievement) Shopokov No target 2,255 Tash-Kumyr No target 14,673 Total 180,975 232,253
Comments: (i) Due to outmigration, the population of Batken is currently estimated at 21,000 and not 24,000 as originally estimated; (ii) In Talas, the project covered the rehabilitation of water supply and sewerage system of separate areas not the entire city. The population living in the project affected area (20,460 people) benefitted from access to improved water source.
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Percentage of population in project areas with 24 hour access to potable water Indicator 2 : (Percentage, Custom) - Bishkek Value quantitative or N/a N/a 90 percent 100 percent Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Target surpassed.
Comments Indicator added at restructuring. (incl. % achievement) The entire population in the project area in 9 Bishkek novostroiki and 11 villages receive water 24h/day.
Percentage of population in project areas with at least 12 hour access to potable water Indicator 3 : (Percentage, Custom) - Osh, Batken, Isfana and Naryn Value quantitative or 0 88 percent 100 percent 100 percent Qualitative) Date achieved 03/18/2008 06/30/2012 01/12/2012 12/31/2015
Target achieved.
Original indicator at appraisal. The language at appraisal was “improved water availability expressed as an increase in the percentage of population having access Comments to water for at least 12 hours per day”. (incl. % achievement) In Batken, even though the rehabilitation works under the project permit water supply of 12h/day, the municipality is currently restricting the hours of supply in order to save electricity. As reported by the mayor of Batken, the central part of town has daily supply of 6-8 hours according to a set schedule, parts of the Kyzyl-Jol area receive water up to 12 hours/day, while other parts – up to 8 hours/day.
Number of people in urban areas provided with access to all season roads within a Indicator 4 : 500 meter range under the project (Number, Core) Value quantitative or 0 80,000 30,745 30,745 Qualitative) Date achieved 03/18/2008 06/30/2012 01/12/2012 12/31/2015
Original indicator at appraisal. Target against the original indicator achieved at 38%. Comments Target against the revised indicator – achieved fully. (incl. % achievement) The original target was reduced to allow road construction works to be carried at a higher technical standard with increased investment cost per unit, reducing the km rehabilitated and number of beneficiaries. Number of communities (as administrative entities or municipalities) with improved Indicator 5 : social infrastructure (Number, Custom) - Bishkek Value 0 N/a 88 173
viii quantitative or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Comments Target surpassed. (incl. % achievement) Indicator added at restructuring.
Indicator 6 : Direct project beneficiaries (Number, Core) Value quantitative or 0 218,088 218,088 262,998 Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Target surpassed.
Original indicator at appraisal. The language at appraisal was “Number of direct Comments beneficiaries with improved infrastructure services”. (incl. % achievement) Indicator defined as direct project beneficiaries under Component A (water supply, urban roads and sewerage investments) and excludes social infrastructure under (Component B), which are more than 542,800 people.
Indicator 7 : Female beneficiaries (Percentage, Core supplement) Value quantitative or N/a N/a 50 percent 54 percent Qualitative) Date achieved N/a N/a 05/12/2012 12/31/2015
Comments Target surpassed. (incl. % achievement) Indicator added after the AF restructuring.
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(b) Intermediate Outcome Indicator(s)
Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Percentage of households in project areas with access to improved water sources Indicator 1 : within 150 m or less (Percentage, Custom) - Bashkarasuu novostroiki, Osh, Naryn. Value (quantitative 0 100 percent 100 percent 100 percent or Qualitative) Date achieved 03/18/2008 06/30/2012 01/12/2012 12/31/2015
Comments Target achieved. (incl. % achievement) Original indicator at appraisal (used to be PDO-level indicator).
Indicator 2 : Length of urban roads constructed and/or rehabilitated in km (Kilometers, Custom) Value (quantitative 0 N/a 21.50 km 21.52 km or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Comments Target achieved. (incl. % achievement) Indicator added at restructuring.
Improved community water points constructed or rehabilitated under the project Indicator 3 : (Number, Core) – Osh, Naryn. Value (quantitative 0 N/A 229 216 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Target achieved at 94%. Comments
(incl. % Indicator added at restructuring. In some project areas, beneficiaries opted to have achievement) individual piped connections instead of community water points.
New piped household water connections that are resulting from the project Indicator 4 : intervention (Number, Core) – Bishkek. Value (quantitative 0 N/a N/a 23,295 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015 Comments Indicator added at restructuring. Target was not provided. The Actual reflects the (incl. % number of new connections in the Bishkek novostroiki. achievement)
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Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Existing water connections (individual and public) that are benefiting from Indicator 5 : rehabilitation works (Number, Core) Value (quantitative 0 N/A 26,461 32,236 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Target surpassed.
Indicator added at restructuring.
Comments Target (AF) Actual (incl. % Bishkek 15,056 23,295 achievement) Osh 4,400 4,400 Batken 5,000 2,324 Isfana 1,465 765 Naryn 540 1,452 Total 26,461 32,236
Indicator 6 : Number of water utilities that the project is supporting (Number, Core) Value (quantitative 0 N/a 6 8 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Comments Target surpassed. (incl. % achievement) Indicator added at restructuring.
Number of community investments successfully completed in Bishkek, Osh and small Indicator 7 : towns (Number, Custom) Value (quantitative 0 N/a 166 173 or Qualitative) Date achieved 03/18/2008 06/30/2012 01/12/2012 12/31/2015
Target surpassed. Comments
(incl. % Original indicator at appraisal. Original language at appraisal was “Number of achievement) infrastructure investments successfully completed”.
Indicator 8 : Number of direct beneficiaries of community investments (Number, Custom) Value (quantitative 0 N/a 450,000 542,892 or Qualitative)
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Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Date achieved N/a N/a 01/12/2012 12/31/2015
Comments Target surpassed. (incl. % Indicator added at restructuring. achievement)
Percentage of residents that have attended a participatory forum under the project Indicator 9 : (Percentage, Custom) Value (quantitative 0 N/a 1.90 percent 1.94 percent or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Comments Target surpassed. (incl. % achievement) Indicator added at restructuring.
Indicator 10 : Percentage of participants to forums that are women, youth (Percentage, Custom) Value (quantitative 0 N/a 50 percent 70 percent or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Target surpassed. Comments
(incl. % Indicator added at restructuring. It is approximated that 50% of participants were achievement) women and 20 % were youth.
Percentage of beneficiaries that are women, youth, and vulnerable (lowest income, Indicator 11 : female-headed households)(Percentage, Custom) Value (quantitative 0 N/a 50 percent 88 percent or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Comments Target surpassed. (incl. % achievement) Indicator added at restructuring.
Number of Micro-project Committees established in benefiting communities Indicator 12 : (Number, Custom) Value (quantitative 0 N/a 160 173 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
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Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years
Comments Target surpassed. (incl. % achievement) Indicator added at restructuring. Indicator 13 : Number of km of pipeline recorded in the system (Number, Custom) Value (quantitative 0 N/a 1300 602.8 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Target achieved at 46 percent. Comments (incl. % Indicator added at restructuring. A geographic information system (GIS) unit has been achievement) set up in the Bishkek Water Utility and is continuing the work with own staff and budget. The indicator is expected to be met within the next 12 months.
Number of Bishkek Municipal Territorial Administrations that introduced the system Indicator 14 : of electronic registration and database (Number, Custom) Value (quantitative 0 N/a 22.00 2.00 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015
Target achieved at 10 percent.
Comments Indicator added at restructuring. (incl. % achievement) The work has ceased due to lack of political support, however, the new administration of Bishkek is interested to renew the effort and introduce electronic registration in the remaining 20 units.
Number of active users of electronic document management system in Osh Indicator 15 : municipality (Number, Custom) Value (quantitative 0 N/a 50 50 or Qualitative) Date achieved N/a N/a 08/17/2015 08/17/2015
Comments Target achieved. (incl. % achievement) Indicator added at restructuring.
Number of working trucks of the Solid Waste Management Utility (Spetsavtobaza) in Indicator 16 : Osh equipped with GPS trackers by the Project (Number, Custom) Value 0 N/a 28 36
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Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years (quantitative or Qualitative) Date achieved N/a N/a 01/12/2012 08/17/2015
Comments Target surpassed. (incl. % achievement) Indicator added at restructuring.
Number of customers recorded in the billing system introduced for the first time by Indicator 17 : the Project in the Solid Waste Management Utility (Spetsavtobaza) in Osh (Number, Custom) Value (quantitative 0 N/a 120,000.00 199,088 or Qualitative) Date achieved N/a N/a 01/12/2012 08/17/2015
Comments Target surpassed. (incl. % achievement) Indicator added at restructuring.
Number of departments in the Solid Waste Management Utility (Spetsavtobaza) in Indicator 18 : Osh operating automated accounting system 1C, introduced by the Project (Number, Custom) Value (quantitative 0 N/a 2 2 or Qualitative) Date achieved N/a N/a 01/12/2012 08/17/2015
Comments Target achieved. (incl. % achievement) Indicator added at restructuring.
Number of customers recorded in the billing system introduced by the Project in the Indicator 19 : Municipal Housing and Utility Department (MHUD) of Osh (Number, Custom) Value (quantitative 0 14,000 14,000 or Qualitative) Date achieved N/a N/a 01/12/2012 08/17/2015
Comments Target achieved. (incl. % achievement) Indicator added at restructuring.
Ratio of ARIS operating expenses to investments for basic infrastructure (Percentage, Indicator 20 : Custom)
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Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Value (quantitative 0 4.00 4.00 4.00 or Qualitative) Date achieved N/a N/a 01/12/2012 12/31/2015 Comments (incl. % Target achieved. achievement) Number of people in urban areas provided with access to regular solid waste Indicator 21 : collection under the project (Number, Core) Value (quantitative 0 N/a 38,500 38,500 or Qualitative) Date achieved N/a N/a 01/12/2012 08/17/2015
Comments Target achieved. (incl. % achievement) Indicator added at restructuring.
Number of Territorial organizations of Self-Governments (TOS) ensuring full Indicator 22 : disclosure of procurement and use of financial resources. Value (quantitative 0 N/a N/a Achieved or Qualitative) Date achieved 03/18/2008 06/30/2012 01/12/2012 12/31/2015 Indicator dropped at restructuring. Comments (incl. % This indicator has been dropped as all participating TOS (i.e. local self-governments) achievement) by default are required to provide relevant disclosures.
Bishkek City administration streamlining plan and implementation timetable Indicator 23 : approved. Value (quantitative 0 Available N/a N/a or Qualitative) Date achieved 03/18/2008 06/30/2012 01/12/2012 12/31/2015 Comments (incl. % Indicator dropped at restructuring. achievement) Indicator 24 : Osh City administration streamlining plan and implementation timetable approved. Value (quantitative 0 Available N/a N/a or Qualitative) Date achieved 03/18/2008 06/30/2012 01/12/2012 12/31/2015 Comments Indicator dropped at restructuring.
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Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years (incl. % achievement)
G. Ratings of Project Performance in ISRs
Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 11/17/2008 Satisfactory Satisfactory 0.50 2 06/27/2009 Satisfactory Satisfactory 1.18 3 03/12/2010 Satisfactory Satisfactory 3.07 4 10/31/2010 Satisfactory Satisfactory 4.46 5 04/24/2011 Satisfactory Satisfactory 5.65 6 12/17/2011 Satisfactory Satisfactory 8.21 7 06/23/2012 Satisfactory Moderately Satisfactory 9.02 8 12/26/2012 Satisfactory Moderately Satisfactory 10.18 9 07/31/2013 Moderately Satisfactory Moderately Unsatisfactory 13.01 10 12/24/2013 Moderately Satisfactory Moderately Satisfactory 16.24 11 06/21/2014 Moderately Satisfactory Moderately Satisfactory 19.02 12 12/08/2014 Moderately Satisfactory Moderately Satisfactory 22.99 13 03/09/2015 Moderately Satisfactory Satisfactory 23.61 14 08/20/2015 Moderately Satisfactory Satisfactory 25.40 15 12/13/2015 Satisfactory Satisfactory 26.17
H. Restructuring (if any)*
ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Approved Date(s) Restructuring Key Changes Made PDO Change DO IP in USD millions (1) Additional financing for scale-up and geographical expansion; (2) The PDO is modified to reflect the change in 1/12/2012 1/12/2012 S S 8.35 the geographical scope of BOUIP, and new indicators are added to measure project results in the small towns
* In addition to Level 1 Restructuring indicated in the table above, the following changes were introduced through Level II Restructuring in order to: (i) revise allocations of proceeds among disbursement categories in April 2009, September 2012 and March 2014; (ii) extend the
xvi project’s closing date with six months in February 2015; (v) cancel uncommitted funds due to devaluation of currency (approximately US$300,000 equivalent or 1 percent of project funds) in December 2015.
I. Disbursement Profile
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1. Project Context, Development Objectives and Design
1.1 Context at Appraisal 1. Country context. At Appraisal, the Kyrgyz Republic had been through 7 years of economic growth accompanied by rapid development of the service sector and a decline of the agriculture and industry sectors. Service activities grew primarily in the country’s two largest cities, Bishkek, the capital, and Osh, the economic center of Southern Kyrgyzstan. Population in these two cities had nearly doubled between 1991 and 2008. 2. Shortly after project implementation commenced, in early 2010, political unrest in the Kyrgyz Republic started in remote small towns but quickly spread to Bishkek and led to the ouster of the President and the creation of a new Interim Government. In the following months the security situation deteriorated rapidly, culminating in an outbreak of mass clashes in Osh, Jalalabad and other towns in the South. About 400,000 people were displaced and several hundred lost their lives. The June events were accompanied by large-scale destruction of property with significant economic impacts. An estimated 3,450 houses, 700 commercial establishments, and 70 public buildings were burnt down. In total, about 1.1 million people or one-fifth of the country’s population and over half of that of the Jalalabad and Osh oblasts were affected. 3. Sectoral context. In the early years of independence, the Kyrgyz authorities began allocating agricultural land to migrants for housing construction in semi-informal settlements, so- called novostroiki (literally “areas containing new constructions”). Creation of such novostroiki continued throughout the 1990’s and early 2000’s at a relatively moderate scale, but accelerated significantly after 2005. In 2008, Bishkek had about fifty such settlements with a population of about one-fifth of the city’s total population. Osh had eight, with a population possibly in excess of 50,000. The two cities had become surrounded by a ring of settlements whose inhabitants were generally poor, lacked basic infrastructure, and had limited access to social, educational and other services. In many novostroiki regular access to piped water was available only to between 10 and 50 percent of households and of those only one-quarter had in-house connections. Road infrastructure was in an exceptionally poor condition, while sewerage systems did not exist and the virtual totality of novostroiki residents had to use pit latrines. Social services were sporadic. 4. After the 2010 upheaval, the already pressing need to improve access of the population in novostroiki to basic services was accentuated further. In addition to the particularly bad state of infrastructure, dilapidated and not maintained for years, the continued influx of people from rural to urban areas in search of economic opportunities and the internal migration created by the 2010 civil unrest, created additional pressures on the government and a sense of urgency to rehabilitate the urban infrastructure. 5. While there was a well-defined need to urgently improve access to services, there was no central level authority that could lead the sector dialogue with the Bank and other international financial institutions (IFIs). The complete absence of a leading agency responsible for local governance and public utility services has created a tangible institutional gap. At the same time, the capacity of local governments to provide infrastructure services was hampered by limited fiscal resources, weak institutions that were unable to function under a constrained
1 environment, and utilities with limited technical and managerial capacities and skills. Within this environment, the Bank focused its assistance on providing immediate relief for the population by rehabilitating and replacing dilapidated infrastructure with the immediate objective to improve access to services. 6. Rationale for Bank involvement. Bishkek and Osh Urban Infrastructure Project (BOUIP) was the first Bank operation in the Kyrgyz Republic to address issues of urban poverty. At appraisal, the Bank’s analysis had highlighted that the lack of access to basic infrastructure and poor housing conditions as a major contributing factor to the poverty of a large proportion of the population. A critical factor in the persistence of this problem was that the provision of such infrastructure was primarily the responsibility of local governments which were financially and technically weak. The Bank had prior experience providing support to the Government’s administrative decentralization efforts and infrastructure through the Land and Real Estate Registration Project (FY00), the Rural Water Supply and Sanitation Project (RWSSP) (FY02), the Small Town Infrastructure and Capacity Building Project (STICBP) (FY05), the Village Investment Projects I and II (VIPI and II) (FY04 and FY07, respectively) as well as technical assistance (TA) programs such as the FY04 Local Governance program. 7. An operation dealing specifically with the novostroiki issue was first requested by the President of the Kyrgyz Republic in 2005. Aware of the growing importance of the issue, the Bank initiated an Economic and Sector Work (ESW) ”Urban ‘Novostroiki’ Settlements in Bishkek, Kyrgyz Republic” which was completed in April 2007 and provided the necessary background material for the preparation of, and a basis for discussions with Kyrgyz authorities on, the proposed project.
1.2 Original Project Development Objectives (PDO) and Key Indicators
8. Original PDO. The project’s objective is to “improve the living conditions in selected semi- informal settlements (novostroiki) in Bishkek and Osh, the two largest cities of the Kyrgyz Republic, by increasing the availability of basic infrastructure to the residents of these areas”.
9. Key outcome indicators of the project at approval. The outcome indicator of the PDO at Approval was the “improved availability and quality of basic local infrastructure services (water and urban roads) in the novostroiki areas,” as per the Supplemental Letter of the Financing Agreement, measured through: Increase in number of households with 12 hour access to potable water; Increase in number of households with access to piped potable water within a distance of less than 150 meters; Increase in number of households with access to roads with public transport at a distance of less than 500 meters; and Number of direct beneficiaries of improved infrastructure services.
1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification
10. Revised PDO. The revised objective was “to increase the availability of basic urban services in semi-formal settlements known as new housing developments (novostroiki) in the cities
2 of Bishkek and Osh, as well as in selected small towns of the Kyrgyz Republic, and to increase the availability of social infrastructures in the cities of Bishkek and Osh and in both the selected small towns and other small towns.”
11. Revised key outcome indicators. The outcome indicators were revised to reflect the expanded geographical scope of the project and incorporate the new corporate core indicators: People in project areas provided with access to improved water sources under the project (percentage) (core indicator) – new indicator added at restructuring; Percentage of population in project areas with 24 hour access to potable water (custom indicator) – new indicator added at restructuring; Number of communities (as administrative entities or municipalities) with improved social infrastructure (custom indicator) – new indicator added at restructuring; Percentage of population in project areas with at least 12 hour access to potable water (custom indicator) – indicator retained; People in urban areas provided with access to all-season roads within a 500 meter range under the project (number) (core indicator) - indicator retained1; Percentage of households in project areas with access of improved water source within 150 meters or less – indicator retained but as intermediate level indicator; Direct project beneficiaries (number, core) – indicator retained2
12. The revised PDO encompasses the original PDO and brings the “social infrastructure” investments in Bishkek and Osh from intermediary to PDO level; it also expands the geographical scope of the project beyond Bishkek and Osh to selected small towns. As such, it is broader in geographical scope and focus which now includes community investments. The original indicators were retained and in addition, three new indicators were introduced to reflect the revised PDO. Two of them measured results in small towns where the project expanded geographically. The third new indicator reflects the community infrastructure part of the revised PDO.
13. The rationale for the AF was that “rehabilitation needs remained extremely high”, that “access to essential services was a critical factor in reducing social tension” in the aftermath of the 2010 civil unrest, and finally the strong demand by the Government to scale-up the positive impact observed under BOUIP on living conditions in semi-informal settlements (novostroiki) and communities. The AF supported the country assistance strategy outlined in the 2011 Interim Strategy Note for the Kyrgyz Republic, whose third pillar was to “improve social mobilization through provision of social services, community infrastructure, employment and fostering reconciliation in conflict affected areas in the south of the country”.
1.4 Main Beneficiaries
14. The original main beneficiaries were the residents of the novostroiki in Bishkek and Osh
1 The original indicator at appraisal referred to “paved roads” which was replaced with “all season roads” to reflect the language of the core indicator.
2 The original indicator at appraisal was “number of direct beneficiaries of improved infrastructure services”.
3 as well as institutional beneficiaries including local governments and utilities that benefitted from capacity building activities, institutional strengthening and enhanced managerial practices. Following the AF, beneficiaries were expanded to include residents and communities of participating small towns. By project closing, it was estimated that approximately 262,000 people in 8 towns of which, more than 50 percent were women, benefitted from improved water, sanitation, and urban road services. The direct beneficiaries of the small community investments exceeded 542,000 people. In terms of institutional beneficiaries, 8 water utilities were supported under the project as well as the municipalities of Bishkek and Osh.
1.5 Original Components
Component A: Basic Infrastructure
15. The component was to finance upgrading and/or expansion of water supply, road and other basic infrastructure as well as rehabilitation and/or upgrading of service equipment required for improving the availability of basic services in selected novostroiki settlements. The component was to include three sub-components: Bishkek Basic Infrastructure; Osh Basic Infrastructure; Detailed design studies, bid documentation, and technical supervision.
Component B: Community Investments
16. The component was to finance small-scale investments in neighborhood infrastructure and equipment that was to be identified and implemented with the active involvement of residents of novostroiki areas in both Bishkek and Osh following, generally, the approaches used by other CDD-type Bank operations in the Kyrgyz Republic. The component was to include two sub- components: Bishkek Community Investments; Osh Community Investments.
Component C: Institutional Development
17. The component was to finance technical assistance and other forms of institutional support to the Bishkek and Osh Municipalities. The component was to include two sub-components with a total cost of US$1.0 million: Bishkek Institutional Development; Osh Institutional Development.
Component D: Operational Support
18. The component was to support project implementation by financing: (a) the contracting of local experts to assist ARIS and the Municipal Project Units (MPUs) established by the Bishkek and Osh Municipalities in the implementation of the project investment programs; (b) the creation and maintenance of a Monitoring & Evaluation System (M&E) to continuously monitor and evaluate the performance and results of the project; (c) the project related operating
4 costs of ARIS, including consulting fees, in-country travel expenditure and mandatory employer contributions to the Kyrgyz Social Fund as well as the purchase of a limited amount of office equipment and vehicles; (d) training for ARIS staff and other persons associated with project implementation; and (e) annual audits of project accounts.
1.6 Revised Components
19. As a result of the AF, the geographic scope of activities was expanded to include selected small towns for Component A and B. Component D was revised to be more specific in its description. No changes were made to Component C. Detailed description of changes are summarized below, as per the Project Paper for the AF:
20. Additional activities included in Component A included:
Carrying out works and services to complete the rehabilitation of the Bashkarasuu Water Intake and Treatment Plant, including procuring and installing water pumps and other technical equipment for the operation of the plant, constructing a power transmission line and transformer stations, and constructing an aqueduct to connect the plant with the Bishkek Vodokanal (BVK) network. Carrying out the development of basic infrastructure for road rehabilitation and maintenance works, constructing and repairing water supply and sewerage networks and installations, and providing equipment for municipal services in Osh. Carrying out engineering and related designs studies for project activities under Component 1 and 4. Carrying out road rehabilitation and maintenance works, constructing and repairing water supply and sewerage networks and installations, and providing equipment for municipal services to selected small towns.
21. Additional activities included in Component B included carrying out small-scale investments in the new housing developments of the cities of Bishkek and Osh, as well as both in the selected small towns and in other small towns of the Kyrgyz Republic, to improve the living conditions of residents of said areas.
22. Additional activities included in Component D included provision of technical assistance to ARIS in the implementation of the project, including the financing of operating costs and audits, for the purpose of managing and monitoring project activities, as well as provision of training and workshops for the purposes of improving the capacity of ARIS to prepare, evaluate and develop infrastructure investments.
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Table: 1 Detailed Cost Table by Component (in US$ million equivalent)
1.7 Other significant changes
23. Project restructuring. There were a total of six restructurings during the life of the project. Besides the level 1 restructuring for the AF in January 2012, the project was restructured four times to reallocate funds between disbursement categories – in April 2009, in September 2012, in March 2014 and in December 2015, and once - in February 2015, to extend its closing date with six months:
Four reallocations were required to reflect changes in technical designs, unexpected costs, and evolving capacity building needs (in principle, the disbursement category table in the Financing Agreement was complex and included six disbursement categories at appraisal, reduced to four by the AF. Having multiple disbursement categories was a common practice at the time of BOUIP preparation. More recently approved IDA projects tend to have a single disbursement category in order to reduce the administrative burden of level II restructuring in response to implementation needs). In April 2009, the allocation of proceeds among disbursement categories was revised to allow road construction works in Bishkek novostroiki to be carried out at a higher technical standard than originally planned, which increased the investment cost. The IDA financing share for this subcomponent was reduced from 80 percent to 55 percent and conversely, the contribution of the Bishkek municipality increased from US$1.1 million to US$2.5 million. The restructuring did not affect the PDO, component contents, key performance indicators or safeguard ratings, nor did it trigger any new safeguard policy. In September 2012, reallocations were necessitated due to the following: (i) in Bishkek, the construction of 21.5 km of roads in the novostroiki was completed and the remaining funds were to be used to finance the Bashkarasuu water intake; (ii) 280,000 SDR from the unallocated funds was to finance the implementation of the Network Information System and Hydraulic Model in Bishkek, and (iii) 50,000 SDR from the unallocated funds were to cover operating expenses that could not be paid by the proceeds from the AF, due to some delays with its effectiveness. The allocation did not result in any changes in PDO, project activities, indicators or safeguards. The March 2014 restructuring changed allocations to (i) address additional operation cost; (ii) finance investments in towns administratively upgraded to small/provincial town status; 6
(iii) cover additional costs for the installation of the Network Information System in Bishkek. The changes utilized savings under the Bashkarasuu civil works contract and did not involve any other changes to the project. In December 2015, shortly prior to project closing, uncommitted funds equivalent to approximately US$300,000 were cancelled. These funds amount to approximately 1 percent of IDA Grant and Credit funding under BOUIP and BOUIP AF combined. Due to the devaluation of the Kyrgyz Som in 2015 which resulted in unplanned savings to the project, the funds could not be utilized on time prior to project closing on December 31, 2015. This provided the Recipient with an opportunity to re-commit the cancelled amount within the current IDA17 envelope which experienced a funding shortage.
24. Changes in Intermediate Indicators. A change in the intermediate indicators came with the AF in 2011, both in the wording of the indicators and in the targets to accommodate the scale-up of activities and also to align them with the newly adopted core indicators. Five new core indicators were added to Component A. Component B dropped one indicator that was redundant3, revised the language of a second indicator, and added five new either progress or citizen engagement indicators. More specific targets were developed for Component C to reflect the institutional building activities that were prioritized by participating towns. There were no changes to intermediate indicators related to Component D:
Table 2: Intermediate Indicators following the AF Component A: Basic Infrastructure
1. Percentage of households in project areas with access to improved water sources within 150 m or less (retained; at appraisal was a PDO level indicator) 2. Length of urban roads constructed and/or rehabilitated in Km (new, core) 3. Number of improved community water points: constructed and/or rehabilitated (new, core) 4. New piped HH water connections resulting from the project (new, core) 5. Existing HH water connections that benefited from rehabilitation works (new, core) 6. Number of water utilities that the project is supporting (new, core)
Component B: Community Investment Programs
1. Number of community investments successfully completed (retained) 2. Number of direct beneficiaries of community investments (new) 3. Percentage of residents that have attended a participatory forum under the project (new) 4. Percentage of participants to forum that are women and youth (new) 5. Percentage of beneficiaries that are women, youth, and vulnerable (lowest income, female-headed households), (new) 6. Number of Micro-project committees established in benefiting communities (new) 7. Number of TOS ensuring full disclosure of procurement and use of financial resources (redundant and dropped, as explained above)
Component C: Institutional Development
1. Number of km of pipeline recorded and modeled in the system (new)
3 “Number of Territorial Organization of Self-Governance (TOS) ensuring full disclosure of procurement and use of financial resources” was dropped. All participating TOS (i.e. local self-governments) by default are required to provide relevant disclosures.
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2. Number of Bishkek Municipal Territorial Administrations that introduced the system of electronic registration and database (new) 3. Number of active users of electronic document management system in Osh municipality (new) 4. Number of working machinery equipped with GPS-trackers by the Project (new) 5. Number of customers recorded in the billing system introduced for the first time in the project (new) 6. Number of departments in the utility operating automated accounting system 1C introduced (new) 7. Number of customers recorded in the system (new)
25. Closing Date. There were two extensions of the closing date of the project. One was associated with the AF when BOUIP was extended from June 30, 2012 to June 30, 2015 to absorb the additional funds. In February 2015, the closing date was extended with six month from June 30, 2015 to Dec 31, 2015 to allow sufficient time for testing and commissioning of the Bashkarasuu water intake, following the completion of the civil works contract which was done on time.
2. Key Factors Affecting Implementation and Outcomes
2.1 Project Preparation, Design and Quality at Entry
26. Soundness of the background analysis and lessons learned. BOUIP was based on a comprehensive ESW titled “Urban Novostroiki Settlements in Bishkek” completed in 2007. The ESW included a quantitative survey of nearly 500 households in nine Bishkek novostroiki, qualitative survey within focus groups, a review of the institutional and legal framework guiding settlements, and an engineering study of unplanned areas. The analysis confirmed that novostroiki were a large and growing problem for Bishkek, where one in four city residents lived and this number was continuing to grow. The ESW concluded that one of the major difficulties encountered by novostroiki residents was lack of access to clean water, adequate roads, public transport, and reliable electricity4. Although a high percentage of novostroiki residents were children, access to schools remained limited and preschools were not available. Discussions within the focus groups revealed that investments did not always respond to community priorities. Investment planning was said to be largely done in a top-down manner where stakeholders could not be involved in planning and monitoring of results.
27. BOUIP was also informed by the work for the poverty assessment and the State Program on Poverty Reduction and Economic Development. Surveyed households in novostroiki on average reported low per capita incomes. The median monthly per capita income was about 757 som ($17), which was the amount of the 2005 poverty line. As such, albeit incomes and living conditions varied, there was a sizeable concentration of poverty in the novostroiki areas.
28. Finally, BOUIP was informed by the early lessons learned within the ongoing STICBP. This project had started 3 years prior to BOUIP and had focused on improving the availability of basic infrastructure in small towns across the Kyrgyz Republic. Early lessons from STICBP revealed that the immediate priority should be establishing minimum levels of basic services with
4 For example, residents in even the best served novostroiki areas lagged far behind other Bishkek residents in terms of access to water. While the household coverage of water supply in Bishkek was estimated by the Bishkek Water Company (BVK) to be approximately 80-85%, the majority (if not all) of the remaining 15-20% unserved population was located in the novostroiki.
8 a focus on investments. As the ICR for that project confirmed later on “the success of this strategy allowed other donors to subsequently come in and set the stage for scale-up”.
29. Assessment of the project design. BOUIP’s design reflected the findings of the background analysis and lessons learned through the ongoing urban project. The design supported the achievement of the project objectives in terms of coverage and quality of water and sanitation services, road infrastructure, solid waste collection, as well as community infrastructure. The PDO was supported by the individual project activities and aligned with the project’s results indicators. In addition to addressing the immediate needs of the population in terms of basic services, the adopted approach also sought to strengthen the community involvement in investment planning and implementation, which was a key recommendation of the 2007 ESW. A Quality Enhancement Review (QER) carried out in mid-2007 confirmed the adequacy of design. At the time of the AF, the overall logic of the project did not change. The project was scaled up geographically, the community objective was reflected in the PDO, and some of the original indicators were revised and aligned with the new core sector indicators.
30. Assessment of risks and mitigation. The Project Appraisal Document (PAD) included four types of risks: risk of political capture and interference during implementation; low quality of designs and contractors; cost overruns, and absence of counterpart funding by local and central government. The first group of risks (political capture) was well mitigated and adequate arrangements were put in place so that it did not jeopardize the implementation of the project. The risk for cost overruns was also mitigated to the extent possible by flexible design and by including an unallocated category. During implementation, several restructurings were required to reallocate funding; this was done expeditiously and in response to emerging priorities during sub-project implementation. Arrangements for counterpart funding were also adequate and there were no significant issues during implementation. One risk that was not mitigated well relates to the low quality of the local design and construction industry. The project’s design assumed that contractors based in the two largest cities – Bishkek and Osh, would have adequate expertise and technical resources. But the lack of capable contractors and flawed designs caused many implementation difficulties and delays. Capacity building for the industry was required and should have been identified as a significant risk – and mitigated. Finally, a risk that was not mentioned relates to the sustainability of assets and infrastructure built under BOUIP. Most utilities and towns do not have adequate financial resources for the operation and maintenance of their infrastructure systems and tariffs remain below cost recovery levels. The project should have acknowledged this risk despite its infrastructure focus on addressing immediate priorities and establishing minimum levels of basic services.
31. Adequacy of Government Commitment. The project enjoyed strong support from the Government during preparation as well as implementation. It proactively assisted preparation activities, supported Bank requirements to establish a conducive implementation environment, facilitated rapid ratification and meeting of effectiveness conditions following project signing.
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2.2 Implementation
32. Project restructuring. The project was restructured several times as indicated in section 1.6 above. One of the restructurings was level I in order to reflect the AF, and the others - level II in order to reallocate funds and extend the closing date with 6 months.
33. The mid-term review (MTR). The MTR conducted in March 2011, noted that despite political instability in the Kyrgyz Republic in 2010 and resulting changes in the key managerial positions both in the Government and ARIS, the project remained on track in achieving its development objective. The MTR noted the request for AF and scale-up of activities, which were later introduced through the Level I restructuring.
34. Factors that contributed to successful implementation:
BOUIP enjoyed strong support from the Government throughout the entire implementation period, which was a major contributing factor to successful implementation. The Government met its obligations in terms of causing the project to be implemented in accordance with fiduciary and safeguards requirements. It provided the necessary support to ARIS; and ensured its co-financing is reflected in the republican budget and allocated on time. Towards the end of the project, the Government took the leadership in establishing an institutional framework conducive to sector reform. It created a de-facto urban ministry by assigning SAACCS with policy development functions in the utilities sector, as well as in urban planning and spatial development. This allowed the follow-up Urban Development Project (UDP) to embark on a more ambitious reform agenda that seeks to improve efficiency of operations through improved commercial practices, and institutional strengthening of relevant departments within the central agency (SAACCS). BOUIP was managed by a well-respected nationally and dedicated project implementation entity. ARIS is a seasoned agency implementing Bank-financed projects, was well accustomed in fiduciary and safeguards requirements, and was able to focus on implementation without significant difficulties. BOUIP’s readiness was high. Project preparation was facilitated by a Policy and Human Resources development (PHRD) grant which financed the preparation of feasibility studies and designs for several sub-projects. As a result, civil works could commence immediately following project effectiveness. The Government and the Bank were proactive in the aftermath of 2011 crisis, preparing the AF quickly so that it scaled-up BOUIP’s activities to secondary cities in Kyrgyzstan, facilitating the Government’s efforts to provide much needed services to the population. The Bank showed flexibility and adjusted at midterm the activities within the institutional component to better reflect local priorities and include the development of a water GIS system, an asset registration system instead of earlier planned city development strategy for Bishkek, etc. Very proactive supervision by the Bank’s team during implementation. This allowed to identify design flaws early on and facilitate adjustments; similarly, civil works implementation was intensely monitored by the Bishkek-based TTL permitting timely field adjustments. On several occasions, the Bank mobilized external technical expertise to supplement available expertise and advise the client.
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35. Factors that gave rise to problems in implementation:
The political instability in 2010 slowed down implementation and financing but work quickly recovered. Prior to the outbreak of the 2010 political unrest in the Kyrgyz Republic, the project was on track to be substantially completed ahead of its closing date of June 30, 2012. While the unrest did not cause any direct damage to BOUIP financed investments, it delayed the completion of some of the ongoing operations, especially in the South. Contractors were forced to suspend works for several months and move equipment to safer locations. This, as well as the extensive changes triggered by the political unrest in key positions of Government and ARIS and the municipalities of Bishkek and Osh, also slowed project activities. The 2010 unrests impacted the co-financing contribution by the Bishkek municipality, which additionally delayed civil works and payments to contractors. There were multiple implementation difficulties related to the low capacity of the design and construction industry. These related to suboptimal and even flawed designs and construction mistakes in several sub-projects. One such example is the Shopokov well, which proved difficult to build due to the sandy nature of the capture point. This led to slow works progress, multiple adjustments, and required the Bank team to interfere multiple times and foster corrective measures5. The intense effort by the Bank was made possible by the Task Team Leader (TTL) who was based in Bishkek. In addition, construction supervision was performed directly by ARIS instead of a specialized engineering firm. In principle, an engineering company should be able to make field adjustments and recommend corrective measures if designs are suboptimal. However, given the low capacity of the consulting industry, ARIS performed construction supervision directly. While the quality of ARIS work was acceptable, such arrangements should be gradually discontinued in parallel with efforts to enhance local capacity. This is, indeed, one of the lessons learned under the project.
2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization Rating: Satisfactory
36. M&E design. The PDO, project activities, and results matrix were well aligned and reflected by the M&E system in place. ARIS utilized a MIS system that linked financial management, procurement, and disbursements. It developed regular and detailed reports. The quality of reporting was usually high and the source of data was verified. In addition, two beneficiary surveys were carried out, at the beginning of the AF and at the end of the project. The initial project’s design was also informed by the survey carried out as part of the 2007 ESW on Bishkek’s novostroiki. Targets were set except for the demand-driven community investments, which is a typical design feature of similar projects.
5 In July 2013, the Implementation Progress rating of the project was briefly downgraded to Moderately Unsatisfactory due to delays with implementation that included i) delays with awarding the Bashkarasuu contract following re-tendering of the civil works due to the initial lack of interest by general contractors; (ii) delays with the finalization of the bidding documents for Isfana due to the complexity of the water supply system in the city and the limited availability of the design institute, and iii) the procurement for the installation of the network information system for Bishkek had also to be re-tendered. 11
37. M&E implementation and utilization. The M&E was well implemented and was utilized primarily for reporting on the project progress but also to guide adjustment to programming. An M&E officer within ARIS was assigned to the project since effectiveness throughout implementation to check and keep track of deliverables. Since unified country M&E system does not exist in the Kyrgyz Republic, the burden of reporting was on ARIS.
2.4 Safeguard and Fiduciary Compliance
38. Environmental and social safeguards. At appraisal, the project triggered OP 4.01 (Environmental Assessment) and the project was classified as category B. The project did not trigger OP 7.50 (Projects on International Waterways) since none of the supported activities was to take place on transboundary waterways, neither OP 4.12 (Involuntary Resettlement) since the project was to exclusively rehabilitate/repair/upgrade existing infrastructure and installations and no land acquisition or relocation was envisaged. An Environmental Management Framework (EMF) to guide the screening of subprojects identified during implementation was prepared and disclosed in January 2008. Environmental Management Plans (EMPs) were prepared for each investment, in line with the requirements in the EMF, and included as part of the bidding documentation. At the time of the AF, the EMF was updated and re-disclosed, together with an updated Environmental Impact Assessment (September 2011). EMPs continued to be prepared and included in bidding documents. The AF triggered OP 4.12 (Involuntary Resettlement) since it was expected that works may result in some temporary and minor encroachment on private land, temporary relocation of economic activities and restrictions to land use. A Resettlement Policy Framework (RPF) was prepared and disclosed in October 2011. During implementation, four specific resettlement Action Plans (RAPs) were prepared for Bash-Karasuu, Naryn, Isfana and Tash-Kumyr. There were nine project affected people. Only one complaint was received and was addressed at the first grievance redress instance. Environmental and social safeguards remained satisfactory reports throughout the life of the project as reported by the project’s implementation status.
39. Fiduciary compliance. The Implementation Status and Results Reports (ISR) ratings were in the satisfactory range throughout the life of the project.
40. Financial Management (FM). The FM risk at project Appraisal was rated substantial before mitigation measures and moderate following agreed mitigation. The FM rating remained in the satisfactory range throughout the life of the project which was carried in accordance with project design and the Financing Agreement. The project was in compliance with FM covenants (timely submission of IFRs and annual audit reports, the FM department was adequately staffed). The FM systems including budgeting, accounting, internal controls, funds flow, auditing, and reporting were also satisfactory and acceptable to the Bank’s FM requirements. Annual project audits were carried out and received in a timely manner, and contained unmodified audit opinion on the project financial statements.
41. Procurement. The procurement risk at appraisal was evaluated as substantial and related to the lack of international competition due to the high cost of doing business in Central Asia, and delays due to multiple procurement packages. Some of these risks materialized during implementation but were successfully overcome. ARIS had experienced procurement staff in place and was familiar with Bank procedures. Procurement remained in the satisfactory range throughout
12 the life of the project. The various procurement reviews performed by the Bank (post reviews, mission reviews and MTR) confirmed compliance with the Bank’s procurement guidelines.
2.5 Post-completion Operation/Next Phase
42. The Government of Kyrgyz Republic remains committed to advance the urban development agenda in country. The National Sustainable Development Strategy (NSDS), (2013- 2017) identifies support to local governments as a key area of development. The Strategy emphasizes the importance of improving the system of delivery of municipal services (water supply, waste collection, etc.) and recognizes the objective to achieve financial sustainability and effective management of resources at the local level. The Strategy identifies the need to strengthen the role of state and local authorities in energy conservation and energy efficiency, and create an environment that promotes energy-efficient technologies.
43. The country has started putting in place some of the building blocks needed to implement the NSDS. On the institutional side, in June 2013 the Government assigned to SAACCS, previously the agency in charge of architecture and construction permits, the role of formulating and developing policies in the areas of urban development, housing, and communal services. In September 2014, under the auspices of SAACCS, the Government approved the State Program for Development of Water Supply and Sanitation in Kyrgyz settlements for the period of 2014-2024. The Program identifies the main directions and activities for the development of the water supply and sanitation sector, with the primary objective to “improve the quality of water supply and wastewater disposal” in Kyrgyz settlements. SAACCS has also embarked on a process to develop a long-term strategy to adjust the state urban planning system and align it with contemporary practices involving flexible, market-led approaches to planning.
44. The Government’s commitment is further demonstrated by the UDP, which was signed in April, 2016. UDP’s objective is to improve the quality of municipal services and pilot energy efficiency and seismic resilience retrofits of urban infrastructure in participating towns. This will be achieved through mobilizing financial resources to (i) improve the quality of municipal services such as water supply, solid waste management, and street lighting; (ii) pilot energy efficiency and seismic resilience retrofits of existing social infrastructure such as schools; and (iii) strengthen the capacity of SAACCS in urban planning as well as the capacity of participating towns to deliver local services.
3. Assessment of Outcomes
3.1 Relevance of Objectives, Design and Implementation
45. Approximately 37 percent of the loan proceeds were disbursed at the time of level I restructuring when the PDO was revised and the AF added. Relevance, achievements and efficiency are therefore evaluated against the original and the revised PDOs, and the results are weighted in order to arrive at the overall outcome rating.
46. The relevance of the original and revised PDO is high. The original PDO, which seeks to improve living conditions by increasing the availability of basic infrastructure, was relevant to
13 conditions in Kyrgyzstan at the time of appraisal and remains relevant and consistent with current development priorities. The revised PDO encompasses the original PDO and elevates the availability of social infrastructure in Bishkek and Osh from intermediary to PDO level; it also expands the geographical scope of the project beyond Bishkek and Osh to small towns. As such, the revised PDO is broader in geographical scope and focus. The original as well as the revised PDO are relevant to current development priorities as stated in the NSDS (Chapter 2.6: improving the efficiency, integrity and quality of essential public services) and in the current Country Partnership Strategy (CPS) which supports integrated urban development and communal services. The high relevance is also demonstrated by the continuous interest by the Government and engagement of the Bank in urban development through the recently approved by the Board UDP, and in community development – through the VIP3 that was approved in 2015.
47. Relevance of design and implementation is substantial. The PDO, project activities, and the results matrix were well aligned, and project activities supported the achievement of both the original and the revised PDO.
48. BOUIP was designed to assist the Government in providing infrastructure and services in the novostroiki of Bishkek and Osh, which were fast growing settlements at the outskirts of the two towns, lacked basic infrastructure and whose population had limited access to services. The persistence of poor conditions in these neighborhoods increased the potential risks for the country’s political stability, providing an additional rationale to support the Government’s development efforts. The project’s design was informed and guided by the Bank’s ESW “Urban Novostroiki Settlements in Bishkek” completed in 2007, which emphasized the urgent need to improve living conditions in the novostroiki. As such, BOUIP’s main objective was to improve the availability of basic services. The PDO level indicator focused on access and quality of services, measured through increased hours of operation, distance to water source, distance to paved roads, number of beneficiaries. Recognizing the importance of community participation and representation, the project design also included a community component and a community driven demand-based approach in the identification and prioritization of investments. This component was also intended to contribute towards creating stronger civic structures within the newly emerged novostroiki.
49. The AF did not change the original project’s design or the overall logic of the project. It scaled up the project geographically. Investments in small towns aimed to increase the availability of services in poor and neglected areas. The project also contributed to the Government’s efforts to provide basic services and reduce social tensions in the aftermath of the instability of 2010. The investment in the physical facilities combined with social infrastructure and capacity building were aimed at increasing the availability and quality of services.
50. BOUIP was coordinated with efforts by other donors (EBRD and the Swiss Development Agency). While investments by the World Bank were intended to address the most urgent infrastructure needs (i.e. improve water sources, water storage and treatment, reduction of major leakages in the distribution system, improved access to solid waste services and road infrastructure, and the availability of social facilities supported under the community component), EBRD provided partially commercial-based lending to BOUIP “graduates” – towns with already improved trunk infrastructure. The Swiss Development Agency supported the introduction of electronic-based billing and collection systems in Bishkek and a number of small towns throughout the country.
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51. BOUIP was a liner infrastructure investment project and, by design, did not embark on a comprehensive reform agenda, for instance policy dialogue to develop a tariff reform, revision of technical standards or support towards metering. This was due to the lack of enabling sector environment at the time of appraisal, and even more so at the time of the AF. At the time of appraisal, there was an institutional gap at the national level where a policy dialogue could be carried out. It was only in 2014 that a central authority, SAACCS, was assigned the institutional mandate for urban development. At that time, a Water Directorate and a Directorate on Housing and Communal Services within SAACCS were assigned the responsibility to develop sector policies and oversee their implementation. At the time of appraisal BOUIP was designed to respond to immediate needs and improve the availability of basic services to the population. Some institutional strengthening efforts were envisaged (electronic billing and collections, improved revenue mobilization, citizen engagement), but in the absence of a central authority, it was not possible to initiate a deeper sectoral dialogue or reform. Capacity building at the level of individual utilities were also envisaged albeit a comprehensive diagnostics of utilities’ efficiency and sustainability of service was not included in the project. In contrast, UDP that was approved by the Board in 2016 is a second generation project that builds upon the achievements under BOUIP and will initiate, for the first time, a more comprehensive sector dialogue focused on commercial practices and financial sustainability. Similarly, the third Rural Water Supply Project under preparation will include technical assistance for drafting legal/normative acts to clarify roles and responsibilities in the sector, improved financial and service regulation, and technical support for the establishment of new institutional models for water service delivery, sector financing and investment plans, management information systems and so on. It will also include capacity building towards tariff setting, billing and collection systems, operations and maintenance training (for example, disinfection), water quality testing, customer relations, complaints mechanisms, human resources, and commercial management.
3.2 Achievement of Project Development Objectives
52. The original and revised PDO to improve the living conditions by increasing the availability of basic and social infrastructure has been achieved in full. In addition, the quality of services has also improved.
53. Achievements against the revised PDO are substantial. The availability and quality of basic urban services in novostroiki in the cities of Bishkek and Osh, as well as in selected small towns of the Kyrgyz Republic has increased. The availability of social infrastructures in the cities of Bishkek and Osh and in small towns has also increased. This is demonstrated by the PDO-level and intermediate level results indicators which are well aligned to measure the development objective. All seven PDO indicators have been achieved in full or surpassed. Namely, access to improved water sources has increased in eight towns (Bishkek, Osh, Batken, Isfana, Naryn, Shopokov, Talas, Tash-Kumyr) and additional 232,253 people have better access to water thanks to the project, surpassing the target of 180,975. Today, 100 percent of the population in the project areas in Bishkek has 24 hour access to potable water, surpassing the target of 90 percent. The population within project areas in Osh, Isfana and Naryn have access to water in excess of 12h/day. The population in Batken experiences less than 12h/day of water due to a managerial decision of the municipality to save on electricity costs. The number of people in urban areas provided with
15 access to all-season roads within a 500 meter range under the project is 30,745, achieving this target fully. The number of direct beneficiaries is 262,998, of which 54 percent are estimated to be women. This surpasses the goal of 218,088.
54. Similarly, the availability of social infrastructure in Bishkek and Osh and in selected small towns has increased. A total of 173 communities have improved social infrastructure, surpassing the target of 88 as a result of community-driven investments. Social infrastructure included the construction of educational facilities, healthcare facilities, sports and cultural facilities, improvements on communal infrastructure such as playgrounds, parks, sidewalks and irrigation channels, small bridges as well as investments to improve the collection of solid wastes. The beneficiary survey results reveal satisfaction of the communities with the achievements under the project which were aligned with community priorities as identified by them. Direct project beneficiaries under the community investments exceed 542 thousand people.
55. The substantial achievements against the revised PDO are demonstrated further by the results of the intermediary indicators. All but two intermediate indicators have been achieved in full or surpassed: 23,295 new piped household water connections have been established as a result of project intervention; 32,236 existing connections have been rehabilitated; 8 water utilities were supported and their technical capacity has increased; 21.52 km of urban roads were rehabilitated; Waste services improved for more than 38 thousand people due to investment sin collection equipment, improvements in management services including databases, accounting system, billings and collections; The city sewer collector was replaced and stand-by sewer pumps and submersible packaged pumping station were installed in Talas; 173 community investments were completed in Bishkek, Osh and small towns. Community investments were developed based on a participatory approach identifying and implementing priority investments. In some cases communities pooled investments to finance larger infrastructure projects benefiting several communities. 542,892 were directly benefitted by the community investments under BOUIP, of which 85 percent were women, youth and vulnerable lowest income, female-headed households6. The two indicators that have been achieved partially include the GIS system for the BVK discussed further below in paragraph 58 (a very successful intervention strengthening the institutional capacity and about to be achieved in full with the next 12 months and the introduction of electronic registration and database in two (against a target of 22) municipal territorial administrations in Bishkek. This reflected changing policy priorities of the subnational administration over the course of the project. Electronic registration was initially supported by the Bishkek municipality. Later on, the administration decided to abandon the effort to develop electronic registration due to political considerations and the activity could
6 The data on gender composition of beneficiaries is an estimate by the PIU and has not been verified.
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not be finalized7. The new administration is again interested to renew the effort and improve transparency; even though BOUIP is closed, ARIS is in discussion with the municipality on introducing electronic registration.
56. Achievements against the original PDO are also substantial. The original and revised PDOs are similar. The revised PDO scales up the project by expanding its geographical area to small towns, and elevates the community investments from intermediary to a PDO level objective. All four original PDO-level indicators have been retained (at PDO or intermediate level) and have been achieved. All but two of the original intermediate level indicators have also been achieved and the two that were only partially achieved were indicators that were dropped and replaced during restructuring as discussed above8.
57. The above achievements are evidence-based and have been confirmed by the results of the beneficiary survey carried out in September 2015 shortly before the closing of BOUIP. The survey included quantitative survey of 1,200 households, 43 focus group discussions with 337 participants, and 40 in-depth interviews. It compares the results with results from a 2011 baseline survey carried out at the beginning of the AF and also with “retrospective” baselines with recall questions back to 2010. The qualitative and quantitative results are consistent with the results reported in the results framework from administrative sources and indicate a significant satisfaction with services. For instance, in Bishkek, in Municipal Territorial Unit 3 which encompasses 3 novostroiki, only 8 percent of the survey respondents indicated home water connections in 2011 as their source for drinking compared to 94 percent in 2015, indicating a shift in the source of water from less safe such as open source to safer alternatives. In Naryn, 64 percent of respondents reported using open source in 2011 while in 2015 no household indicated using open source and 74 percent had moved to yard or street connection. The large majority of respondents in all towns reported being satisfied with the water quality indicating a significant increase over earlier results. Annex 5 provides more information by locality.
58. In addition to improving the availability of services, BOUIP strengthened the capacity of participating towns and utilities. This was achieved through: The introduction of a water GIS system for the city of Bishkek which is currently being populated with data. Achievement rate of this intermediate indicator is 47% (602 versus 1,300 km have been recorded as of April 2016) and continues to increase. The Bishkek
7 The electronic registers include socio-economic data of residents at the territory of the administrative sub-unit. This data could then be used for both election purposes and fiscal allotments. Due to perceived sensitivity of the information, the previous administration of Bishkek has decided to abandon the initiative, however, the new administration has shown interest to revive it.
8 The two indicators include city administration streamlining plans for Bishkek and Osh. According to the PAD, these plans aimed to assist the municipalities with (i) staff rightsizing, (ii) elimination of overlapping and redundant responsibilities, and (iii) streamlining administrative procedures to increase efficiency of municipal operations. However, in 2010, following the political unrest in the country and fragility of the environment, it was not any more possible to support a staff reduction program and other structural changes within the municipalities. At the request of the city mayors, this component was focused on a subset of the original indicator increasing the efficiency of municipal operations, i.e (iii) above that were included as indicators after the restructuring, namely: a municipal asset management database in Bishkek; the waste management billing system in Osh; the development of a network information system with a GIS interface in Bishkek; and electronic document management system in Osh.
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water utility has created an own GIS unit that is currently recording and populating the database. The indicator is expected to be achieved in full within the next 12 months. This achievement is especially noteworthy mentioning because following the initial contract with a consulting company, BVK has embraced the initiative and manages it directly. BVK has instituted its own GIS unit which has been staffed and funded by the municipal budget. The results from the GIS are being monitored constantly and have started to be used by management and inform planning decisions by the utility. Given that often GIS systems remain unutilized following closure of bank-financed projects, the fact that BVK has internalized the system is indeed a very successful achievement by the project. An electronic billing system for the city Osh waste management system. Following its commissioning, the bill registers were updated and the number of registered customers increased from 99,000 to 199,088 (100 percent increase); similarly, the collection improved drastically from 1 million KGS per month to 3 million KGS per month. Asset management system in Bishkek. As a result of the system, collected funds for the lease of municipal property in the city of Bishkek for the first quarter of 2016 (93,625 KGS) compared to the first quarter of 2015 (64,037 KGS) increased by 46.2%. Document control system for Osh Mayor's Office (ASKID). A data management systems was developed and installed at the Osh municipality. The software helped automate document management and control mechanisms. An additional module, ‘Requests, Grievances and Appeals from Citizens’ allowed citizens to file complaints and the Mayor’s office to monitor responses. Capacity building for small town utilities and municipalities which included multiple trainings on chlorination of drinking water; construction supervision, SNIP standards and norms; water metering and replacement of communal standpipes with individual household level connections; designs and implementation of water supply, sanitation and energy efficiency retrofits.
3.3 Efficiency Rating: Substantial 59. The ex-ante economic analysis of the project included an assessment of the economic viability of Component A investments focusing on improvement of water supply infrastructure and using the Bishkek subproject as example. It did not include an analysis of Component B activities as not considered feasible due to the nature of the proposed investments. It estimated benefits in terms of: a) time saved in water collection; b) reduced cost of purchasing bottled water; c) reduced costs of boiling water; d) cost saving in medical expenses associated with water-borne disease to including labor lost due to illness and treatment costs; e) increased producer surplus (profit) to the small number of current businesses and a small number of new businesses which emerge as a result of improved water supply. On the cost side, it accounted incremental operating costs (Operation and Maintenance) and investment costs. At 12 percent discount rate the Net Present Value (NPV) from the analyzed Bishkek sub-project was USD 189,210 and the Economic Rate of Return (ERR) was 14.12%.
60. The ex-post economic analysis relies on activities developed through-out the project including both BOUIP and BOUIP-AF. It includes a separate assessment of the economic viability of water supply investments – in all towns – and of road improvement investments in Bishkek. Both of these activities were part of Component A. Given the nature of Component B, C and D activities
18 no benefits are accounted for these two components. The ex-post analysis of water supply investment included (i) the cost of all water related investments, including estimated O&M costs and (ii) all measurable benefits, including decrease in the time spent collecting water; welfare gains associated with reduced need for in-house water treatment (i.e. boiling prior to consumption) and reduced investments in water storage facilities as a result of improved water reliability. The ex-post economic analysis for water investments did not include benefits linked to reduced incidence of water-related diseases such as infectious hepatitis and acute enteric infections, reduced costs of purchasing bottled water and increased producer surplus of current businesses due to lack of data. The ex-post analysis of road investments accounted benefits of a reduction in the costs of road works and road user costs as compared to the reference scenario.
61. Water investments delivered substantial benefits through a reduction of coping costs. Prior to the project households spend an average of 40 minutes per day collecting water. In addition, many households, due to intermittent supply, still relied on distant standpipes or unprotected standing water sources such as rivers, irrigation canals and shallow wells. Number of hours of water supplied was as low as 4.5 hours in some of the cities. As a result households had important coping costs. Coping costs, in particularly those associated with collecting water were and are overwhelmingly supported by women. Based on results obtained from the beneficiary survey, households are saving on average 20 minutes per day. The project is generating annual benefits of USD 3,065,002 from economic gains of saving time to collect water. Reduced coping costs from boiling water are expected to generate annual benefits of USD 813,565 from energy savings linked to boiling water, and reduced investments in water storage is expected to generate annual benefits of USD 100,800. Based on the above, the total estimated annual benefits from water investments is USD 3,979,368 yielding an ERR of 13 percent and a NPV of USD 1.1 million.
62. The project also upgraded, to asphalt concrete road standard seven road sections that total 21.5 km. The total number of direct beneficiaries of road investments was 30.7 thousand people. Prior to the upgrading, the road sections were unclassified and were in poor condition with gravel or earth surface. Residents of residential communities were not satisfied with the quality of the roads and experienced inconvenience due to their condition: (i) more costs for footwear and clothing; (ii) additional time and costs for road travel; (iii) negative health effects with limit access to emergency services; and (iv) additional costs associated with the operation of personal motor vehicles. After the upgrading, the roads were classified as class 4 roads and became 7 m wide two lane roads with 50mm asphalt concrete surface layer and speed limit of 60 km per hour. The overall road investment has an ERR of 39 percent and a NPV of USD 14.29 million.
63. The project also yielded important benefits through activities developed under Component B (Community Investment Program). Although direct economic benefits are not being accounted as part of the Economic Analysis due to the nature of the activities supported, the project beneficiary survey included focus groups discussion and qualitative assessment of Component B. Some of the benefits stated by beneficiaries included; reduction of expenses on payment for sport activities due to increased access to nearby recreation areas (Cholpon-Ata, Bishkek), increased comfort and safety of movement (construction of pavements in multiple settlements), reduction of time and financial expenses due to increased availability of nearby medical facilities (Osh and Ozgon cities), and increased earning and job opportunities linked to increased availability of kindergartens (multiple settlements).
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64. The table below summarized the results of the ex-post economic analysis. It contains separate ERR and NPV calculations for water investments and road investments and unified NPV and ERR calculations including all project costs and only the benefits accounted from water and road investments. Given that benefits from Component B and D are not accounted for, the NPV and ERR of the project are likely to be underestimated. As a result economic efficiency of the BOUIP and BOUIP-AF project is substantial.
Table 3. Ex-Post Economic Evaluation Result for all project and by activity
ERR NPV All Project (Component A, B, C and D) 13 percent $2,042,500 Water investments (Component A) 13 percent $1,102,164 Road Investments (Component A) 39 percent $14,290,000
3.4 Justification of Overall Outcome Rating
65. The overall outcome rating is assessed as Satisfactory on the basis of achievement, efficiency, and relevance against the original and revised PDO as shown below.
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Table 4. Evaluation of Relevance, Achievements, Efficiency
Against Original PDO Against Revised PDO* Relevance Substantial Substantial Relevancy of objective High High Relevancy of design Substantial Substantial Achievements Substantial Substantial Efficiency Substantial Overall Substantial Substantial *All ratings in this column refer to both objectives under the revised PDO, i.e. (i) increased availability of basic urban services and (ii) increased availability of social infrastructure in Bishkek and Osh and selected small towns.
Table 5. Overall Outcome Rating
Item Against Original PDO Against Revised PDO Overall
Rating Satisfactory Satisfactory Rating value 5 5 Weight (% disbursed before/ 37% 63% 100% after PDO change) Weighted value (line 2 x line 3) 1.83 3.17 5 Final rating (rounded) Satisfactory
3.5 Overarching Themes, Other Outcomes and Impacts
(a) Poverty Impacts, Gender Aspects, and Social Development
66. The project investments led to an improvement of the living conditions of the urban poor, had positive impacts on gender and contributed to social development. As previously mentioned, the BOUIP was the first operation in Kyrgyz Republic addressing issues of urban poverty by focusing on improving basic service delivery and the availability of social infrastructure in novostroiki areas. These areas, as outlined in the 2007 ESW, were lagging behind in terms of basic service delivery, access to social and urban infrastructure (i.e. roads) when compared to the city centers. The project improved access to water supply, and led to a reduction of coping costs (i.e. water collection) which were mainly supported by women. The project also improved, using a consultative approach for the identification of priorities, the availability and quality of social infrastructure, such as kindergartens, playgrounds and clinics. The consultative process led to investments which responded to local needs and strengthened civic structures in project areas.
(b) Institutional Change/Strengthening
67. As outlined Section 3.1. paragraph 50, the project did not embark on a comprehensive reform agenda at the national level, due to the lack of enabling sector environment at the time of appraisal. Nevertheless the project contributed to the institutional strengthening of local
21 governments and utilities. The project financed the development of important management tools (i.e. Bishkek Asset Management, GIS system in Bishkek Vodocanal and billing systems in Osh) that strengthened the capacity of these entities to deliver services and raise revenues. In addition, the project developed training and capacity building activities which supported the technical operation of the infrastructure financed.
3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops
68. A baseline and beneficiary surveys were carried out at the beginning of the AF in 2011 and towards the end of the project in September 2015 to estimate the service coverage and satisfaction with the services. The survey covered, among others, water supply sources and water-supply service quality, access to roads infrastructure, general housing situation, household composition, income and assets, participation and social mobilization. The qualitative and quantitative results from the beneficiary survey are consistent with the results reported in the results framework from administrative sources and indicate a significant satisfaction with services, as discussed above in section 3.2 and also in Annex 5.
69. A stakeholder workshop to indicate the completion of BOUIP was carried out in September 2015. It brought together a wide range of stakeholders and in particular representatives of the Ministry of Finance, Department of Water Supply and Sanitation under the SAACCS, Mayor’s Offices of Bishkek and Osh, small town municipalities and water service providers, project beneficiaries, municipal entities, Municipal Territorial Administrations and Territorial Councils, novostroiki leaders, ARIS staff, and World Bank representatives. The main objective was to summarize BOUIP’s implementation results, present the outcomes achieved under all of the project components and draw lessons learned. The general consensus expressed by workshop participants was that BOUIP had contributed to the integration of novostroiki into the urban environment and facilitated the development of small towns.
4. Assessment of Risk to Development Outcome Rating: Significant
70. The risk to sustainability is significant and relates to the ability of the cities to finance operation and maintenance of rehabilitated or newly developed assets as well as their technical capacities. Project activities helped improve revenue collection (in Bishkek and Osh) and enhance capacity, however sector financing as well as operational efficiency remain low:
In Osh, following the introduction of electronic waste management billing system, the number of registered subscribers as well as payments increased dramatically. In Bishkek, the project supported the introduction of an asset management system, which has also led to immediate increase in revenue and has also improved the transparency of managing municipal assets. Still, most utilities and towns do not have adequate financial resources for the operation and maintenance of their assets. The capacity within the Bishkek vodokanal to manage its network and operations through its recently created GIS unit has also improved. Capacity of utilities in small towns to detect and prevent leakage, water disinfection, maintenance of pumps and storage tanks, waste collection have increased. Still, the technical capacity of utilities remains weak. This has
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implications on the correct operation and maintenance of the system.
71. Tariffs for municipal services remain below cost recovery and given recent social unrest when the Government attempted to raise electricity tariffs – they are unlikely to increase soon or by much. Since sector financing is unlikely to increase on the short run, improving the operational efficiency of utilities becomes critically important to ensure sustainability. Although such measures were not intended under BOUIP which supported the immediate needs of towns -rehabilitation of dilapidated assets and service provision, in the latter stages of the project the Bank team initiated discussions with SAACCS and water utilities on introducing demand-side measures aimed to improve operational efficiency, reduce non-revenue water and regulate consumption. The discussion found traction and the dialogue will continue under UDP that supports policy dialogue with the national authorities and participating utilities on improving operational efficiency, as well as specific measures related to household level metering and replacement of communal standpipes with individual connections.
72. Another risk to sustainability relates to the very old distribution networks and quality of infrastructure facilities. Due to financial constraints, many utilities are not in a position to fund their network replacement programs.
5. Assessment of Bank and Borrower Performance
5.1 Bank Performance
(a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory
73. There was no official assessment of the quality at entry by the Quality Assurance Group but the QER confirmed that the quality at entry is satisfactory and the project was well designed. The project was informed by analytical evidence and took into consideration lessons learned by earlier experience. It was consistent with the Government’s development priorities and the Bank’s CPS. The Bank mobilized a team with all the necessary skills including expertise in roads, water supply and sanitation, social participation and mobilization. A number of alternatives were considered for the project design. Safeguards and fiduciary mitigation measures were appropriately designed, were consistent with the Bank’s fiduciary role and ensured smooth project implementation. The Bank team facilitated the preparation and appraisal of the project such that it was likely to achieve the planned outcome. The risk and mitigation measures were, for the most part, adequately identified. One exception was the capacity of the local engineering and construction industry which was overestimated and not mitigated properly. Project readiness was high. The Bank mobilized a PHRD grant which assisted project preparation and allowed the preparation of feasibility studies and designs prior to effectiveness.
(b) Quality of Supervision Rating: Satisfactory
74. The Bank’s fiduciary role was satisfactory and ensured the client is compliant with safeguards policies. During the majority of the implementation period the TTL was based in
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Bishkek. This permitted intensive and hand-on supervision that remained proactive throughout implementation. When needed, the Bank mobilized external technical inputs to complement the expertise available within the team. The Bank worked closely with the implementing agency providing continuous support and strengthening its capacity. The team mobilized and prepared the AF in response to a request by the Government in the turbulent years following the civil unrest of 2010. It facilitated the quick scale-up of project activities to secondary towns and the achievement of targets under the project. The Bank’s efforts as part of its implementation support contributed towards the successful completion of the project with a full Satisfactory rating as per the last ISR.
(c) Justification of Rating for Overall Bank Performance Rating: Satisfactory
75. Given the outcome rating for quality of entry and supervision, the overall Bank performance is rated satisfactory.
5.2 Borrower Performance
(a) Government Performance Rating: Satisfactory
76. The Government’s commitment to the project remained strong throughout preparation and BOUIP continued to enjoy high-level support throughout implementation. The Government caused the project to be implemented in accordance with the Financing Agreement and related fiduciary and safeguards requirements. Despite the political turmoil in 2010, the project remained on schedule and was even scaled-up. Counterpart funding from the Treasury was never delayed; the counterpart funding by local governments was also provided throughout the project albeit with some delay. In the latter stages of implementation, the Government demonstrated its commitment to emerging sector issues and assigned the urban policy mandate to a central agency – SAACCS. Within SAACCS, it established Directorates for water and utilities, eliminating a long lasting institutional gap. This allowed the start of a policy dialogue in urban development (sustainability of service provision, urban planning and spatial development), expected to be advanced under the follow-up UDP.
(b) Implementing Agency or Agencies Performance Rating: Satisfactory
77. Throughout the implementation of the project, ARIS was fully and adequately staffed, provided adequate fiduciary controls, ensured safeguards compliance, and led an efficient dialogue with sector stakeholder, the central and municipal governments, and the Bank. It led the implementation efforts of the two implementation units in Bishkek and Osh, guiding and resolving implementation issues. ARIS maintained an M&E specialist throughout the life of the project who carried out regular monitoring and reporting. It had well-qualified experts on community-driven development who mobilized communities, trained leaders and arranged for the realization sub- projects. ARIS implemented an effective environment and social monitoring system which allowed it to screen sub-projects and identify problems as they arose, while also working closely with project contractors to ensure compliance. ARIS was less well suited to perform directly technical
24 construction supervision. While it recruited needed technical expertise from outside its agency to supplement its core competences, issues related to the technical quality of designs and works implementation, both supervised directly by ARIS, persisted throughout implementation. Despite these limitations, the overall performance by ARIS remains satisfactory. During the difficult environment created by the political unrest in 2010, ARIS staff demonstrated noteworthy resilience and commendable dedication to their work, without which it would have been impossible to maintain the strong performance of the project and bring it to satisfactory completion. The beneficiary assessment of ARIS’s performance was highly positive. ARIS is regarded as responsive to local needs, proactive in addressing problems, professional and timely in terms of implementation, and a supportive partner to local governments. Between 2008 and 2016, ARIS portfolio grew significantly. By 2016, ARIS has been implementing five Bank projects and several projects by other IFIs, and is preparing two more IDA projects. In addition, the 2014 independent review of ARIS performed as part of the VIP3 preparation, confirmed that ARIS is very well prepared to implement Bank projects, and has strong reputation among government agencies and the population. The role of ARIS in the preparation of the follow-up urban project, UDP was instrumental for the rapid preparation, approval and signing of this project.
(c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory
78. Based on above, the overall Client’s performance is rated Satisfactory.
6. Lessons Learned
79. Strengthening the capacity of the private engineering and construction industry should be considered as an element of project design and implementation. Throughout implementation, BOUIP experienced difficulties due to the low capacity of the engineering and construction industry which led to poor quality of designs and civil works construction. Projects implemented in parallel to BOUIP – VIP2 and the RWSSP experienced similar difficulties. To enhance the capacities of the local industry, structured trainings could be offered in the early stages of project implementation, and focus on the principles and procedures for planning, design, implementation and supervision of urban works, as well as procedural requirements for procurement in World Bank financed projects. Similar trainings offered in the latter stages of BOUIP generated significant interest among the local industry. Participants requested follow-up trainings on various topics (design techniques, approaches during construction and installation, on-site verification and controls, energy efficiency measures etc.) indicating strong demand for knowledge transfer.
80. As the capacities of the local industry improve, ARIS should discontinue performing direct technical project construction supervision using individual consultants; this function should instead be handed over to professional engineering organizations. Kyrgyz regulations require design supervision by the institute that authored the designs. The author supervision is not coupled with construction supervision and on-site presence, and the notion of construction supervision exercised under Bank projects remains a new concept in the country. Due to the low capacity of the private industry, construction supervision in BOUIP (as well as all other projects implemented by ARIS until 2016) was done by individual consultants hired by ARIS. The approach was intended as a stop
25 gap measure9. However, using individual consultants as construction supervisors on contract with a project implementation unit is not a recommended practice. Professional engineering consulting companies should be commissioned instead and building their capacity should be encouraged as discussed in the previous paragraph. Such companies can put comprehensive systems in place, such as clearly defined functions and responsibilities of supervisory staff, contractors and employers; quality control mechanisms; record keeping and recording; systemic planning and so on, and provide liability insurance.
81. When the country and sector context are less conducive to reforms, like in the case of the Kyrgyz Republic at the time of BOUIP preparation, simple, straightforward projects with achievable objectives are more likely to close with satisfactory results. An important lesson learned from BOUIP is the importance of keeping objectives and activities of projects achievable and not try to tackle related reforms upfront. Although Bank supported programs should be cognizant of the need for deepening the institutional and policy dialogue over time, it is important to first ensure a minimal level of basic services for the population, while in parallel exploring opportunities for further reforms.
82. Just like in other countries in Central Asia, to place the water supply sector on a sustainable path, demand-side measures need to be introduced along with changes to consumption norms. Demand-side measures are required to reduce water waste, encourage conservation and improve the commercial operations of utilities. In addition, water consumption norms across the region - a legacy of the Soviet period, are extraordinary high10 resulting in excessive capacity and wastage, and should also be amended. BOUIP did not envisage to support large scale sector reforms since the enabling institutional environment was not in place or conducive to reforms. Nevertheless, BOUIP provided a platform for sectoral dialogue and as soon as the Water Directorate was created in 2014, consumption norms for water in rural areas were amended downwards in line with international practice. Follow-up Bank operations in the Kyrgyz Republic could step on these achievements and broaden the dialogue in order to promote deeper sectoral reform, sustained operations and commercial practices, and improved sustainability of water utilities (and such efforts are indeed envisaged under UDP and the new Rural Water Supply Project, currently under preparation).
9 In the later stages of VIP2 implementation, shortly before the project closed, a local engineering company was contracted to perform construction supervision on an experimental basis for a small value contract. The experience was mixed; a very intense capacity building effort directly by the Association was required to meet needed standards.
10 In-yard connections: 110-160 l/day per person. In-house connections (equipped with indoor water tap and sewerage): (i) equipped with shower and local hot-water boiler- 160-230 l/day per person; (ii) with centralized hot water supply – 230-350 l/day per person. Public standpipe – 30-50 l/day per person 26
Annex 1. Project Costs and Financing
(a) Project Cost by Component (in USD Million equivalent)
Appraisal Actual/Latest Percentage of Component Estimate Estimate* Appraisal
Component A: Basic Infrastructure 11.3 23.0 2.04
Component B: Community Investment 1.0 5.6 5.60
Component C: Institutional development 1.0 0.9 0.90
Component D: Operating Support 1.0 2.8 2.80
Total Financing required 14.3 32.2 2.25 *Includes parent project and AF
(b) Financing (in USD Million equivalent)
Appraisal Actual/Latest Percentage of Source of Funds Estimate Estimate* Appraisal
Recipient** 2.3 6.0 2.61
IDA Grant and Credit 12 26.2 2.18
Total Financing 14.3 32.2 2.25 * Includes parent project and AF **Central Government, Local Government and Community contributions
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Annex 2. Outputs by Component
COMPONENT A: BASIC INFRASTRUCTURE
Bishkek City
Roads. Pavement of roads in 7 novostroikas with total length of 21.5 km: Ak-Orgo, Ak-Ordo, Dordoi, Kalys-Ordo, Dostuk, Tynchtyk and Kara-Jygach. As a result of this, 30,745 people have gained access to asphalt paved roads within the distance of no more than 500 meters from their homes. Total cost of construction USD 4,266,770.
Drinking water supply. Investments benefited 9 novostroikas and 11 villages located in the Bashkarasuu area of Bishkek: Ak-Ordo, Ak-Orgo, Yntymak, Orok, Beshik, Ala-Too, Ala-Archa, Tez-2; and Novaya selekziya, Djal, Verkhniy Orok, Nijniy Orok, Selekzionnoe, Sarban, Kashka- Bash, Kaltar, Plodovoe, Tenir-Too, Sary-Ozon11. Works included the rehabilitation of the existing water intake and treatment plant (the water intake infrastructure consists of the main building, two water storage tanks with capacity of 2,000 m3 each, 12 boreholes, fencing); construction of about 6.5 km of transmission main (aqueduct) to connect the plant with the existing city network; construction of about 7 km of 10 kV high-voltage power supply line and two 630 kVA transformer stations at the well field site; supply and installation of pumping and other technical equipment such as chlorination equipment, operation control devices; and a double pipeline distribution network. The water intake supplies drinking water to the southwestern part of Bishkek. In addition, a water transmission main to Verhniy Orok Village (1050 meters in total) was also constructed. Total contract value at completion: KGS 356,904,417. Beneficiaries: 106,337
Rehabilitation of Bishkek’s Kindergarten #164 for kids with disabilities. Rehabilitation works included energy efficiency improvements such as walls insulation, replacement of windows and external doors, internal water and sanitation facilities, procurement of school furniture. Total cost: KGS 13,430,477. Beneficiaries: 117 school children and school personal.
Osh City
Drinking water supply. BOUIP activities in Osh included:
o Rehabilitation of pump station No.4 and construction of a water distribution network in Turan novostroika o Construction of a water main to Kalinina novostroika and construction of a water storage tank (reservoir), V=200 m3 o Construction of a water supply network in Kalinina novostroika
11 A PHRD grant financed preparatory studies for BOUIP and identified possible investments in the water and road sectors. The PAD specified that the identified investments are tentative and will be reviewed again following the preliminary feasibility studies undertaken during implementation. As a result of these studies during implementation, the Bashkarasuu water intake was identified for financing under BOUIP.
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o Construction of a water main to Dostuk novostroika and construction of a water supply network in Dostruk novostroika o Supply and installation of pumping and other equipment o Laboratory equipment worth KGS 2,385,327 was also provided to Osh Vodokanal to retrofit pump station No.5. o The distance between the new water sources and households does not exceed 150 meters.
Today 50,000 residents in three novostroiki—Turan, Dostuk and Kalinina—enjoy 24-hour access to drinking water against the original target of 12 hours a day. Total cost: worth KGS 234,827,299.
Basic infrastructure in small towns
Batken:
o Installation of booster pump station o Rehabilitation of existing well o Construction of new chlorination plant o Construction of 2.476 km of distribution networks in Kyzyl Chol and Chet Bulak districts o Water main to BatMU, 873 meters o Water main to Bakai-Ata 3.041 km o Rehabilitation of the existing water main to Kyzyl-Jol novostroika, over 6 km in total o Installation of an outdoor security lighting system at the water intake site; replacement of the old transformer substation; fencing of the water intake site; installation of pipelines, water meters and pressure control valves
Total cost is KGS 39,538,315. Total number of direct beneficiaries is 21,000 people.
Isfana:
o Construction of a new well-field o Construction of networks in town center, 2.507 km o Concrete block fencing of the water intake site, 766 m in length o Guard post construction o Two steel water tanks (reservoirs), 700 m3 each o Construction of a 10 kV power transmission line o Construction of a water chlorination unit o Outdoor security lighting system at the water intake site o Installation of a 2x100 kVA transformer substation o Rehabilitation of the existing distribution network, 670 m in total o Construction supply main and networks in Bozogul novostroika, 6.432 km o Onsite pipe networks, 4.315 km o Concrete block fencing of the water tank site, 310 m in length o Guard post construction o Construction of a 0.4 kV power transmission line o Outdoor security lighting system at the water tank site o Installation of 2 steel water tanks, 400 m3 each
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o Shore protection works - 270 linear meters
Total cost: KGS 102 532 909. Total number of direct beneficiaries is 13,555 people.
Naryn
o Rehabilitation of well-field “West” o Construction of supply main to Tosh Bulak novostroika, 3.030 km o Rehabilitation of a 500 m3 overhead tank (reservoir) o Construction of a new water chlorination unit at the water tank site, including a guard post and a toilet o Rehabilitation of water pipelines from the water intake structure to water tanks (reservoirs) o Installation of new transformer substations at both the water intake site and the water tank site o Onsite pipework installation at the water intake and tank sites o 560 m water main (PE pipes, 160 mm) laid near the Brick Plant
Total cost: KGS 36,222,716. Total number of direct beneficiaries is 3,973 people.
Talas
o Replacement of sewer collector o Installation of standby sewer pumps and submersible packaged pumping station o Replacement of water supply main - 3.453 km
Total cost is KGS 35,316,792. Total number of direct beneficiaries is 31,555 people, of which 20,460 from water services and 11,095 – liquid sanitation.
Tash-Kumyr
o Construction of a 1.800 km water main o Construction of a pump station and a water chlorination unit o Construction of a booster pump station for Aksy Micro-District o 2 transformer substations, 400 kVA and 40 kVA o Boom containment system o Rehabilitation of the existing distribution network o Installation of 28 reinforced concrete wells with distribution manifolds to enable individual household connections o Rehabilitation of the damaged pipeline section between the pump station and the city o Restoration of asphalt concrete paving on city roads, 2100 m3
Total cost value under 2 lots is KGS 51,708 614. Total number of direct beneficiaries is 14,667 people.
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Shopokov
o The construction of a water borehole o Installation of a submersible pump with capacity of 65 m3/hour.
Total cost KGS 6,226,389.60. Number of direct beneficiaries is 2,255 people.
Equipment procured for water utilities and cities
o Welding equipment for PE pipes HL 90-315 worth KGS 2,875, 345 to 11 cities: Osh, Naryn, Talas, Shopokov, Tash-Kumyr, Batken, Isfana, Kara-Suu, Sulukta, Toktogul, Balykchy. o Welding machines to Bishkek (welding machine W500 and W315, welding extruder Booster EX2/EX3) o Excavators (MTZ-82) to 6 cities: Shopokov, Naryn, Talas, Tash-Kumyr, Batken, Isfana o Cesspool truck for Osh Vodokanal under main financing.
COMPONENT B: COMMUNITY INVESTMENTS
Number and location of completed subproject:
Number of Phase Number of novostroiki Number of subprojects beneficiaries 34 in Bishkek 30 in Bishkek Phase I 42,287 8 in Osh 6 in Osh 37 in Bishkek 35 in Bishkek Phase II 163,021 8 in Osh 6 in Osh
В1: 37 in Bishkek; 7 in Osh 32 in Bishkek, 7 in Osh
Phase В2: 12 in Osh; 5 in III 15 in Osh, 5 in Jalalabad 542,892 Jalalabad
В3: 28 in small towns 37 is small towns Total 173
Phase I and Phase II were implemented as part of the BOUIP parent project (2008-2012). Under AF, Component B was divided in three subcomponents
В1 Community Investments in Novostroiki of Bishkek and Osh В2 Community Investments in Osh and Jalal-Abad (Territorial Councils/Territorial Administrations) В3 Small Towns Community Investments
Community sub-projects (173) included:
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Social infrastructure Total: 1 Educational facilities, including: Schools 9 Preschools 26 Children’s learning centers 1 2 Healthcare facilities, including:
Polyclinics 2
Groups of Family Doctors 1 First aid stations (FAS) 5 3 Sports facilities, including: Gyms 12
Sports grounds / mini football fields / sports equipment 30 4 Cultural facilities 10 5 General improvements, including: Children’s playgrounds 21 Sidewalks 14 Public parks and gardens 6 Irrigation systems, aryks (ditches) 17
6 Pylons 8 7 Bridges 2 Equipment/vehicles for solid waste management 2 8 Other 7 Total: 173
COMPONENT C: INSTITUTIONAL DEVELOPMENT
Network Information System for water supply and sanitation management in Bishkek
A Network Information System (NIS) was developed and installed at Bishkek vodokanal (BVK) and included: 4 computers with 4 ArcGIS for Desktop software packages, 1 ArcGIS for Server software package, 18 pressure loggers, and 8 GeoXplorer GPS receivers and a server for data storage and analysis.
BVK created and staffed a new, permanent GIS unit. Pressure loggers were installed on water pipelines in different parts of the city. The loggers remotely send pipeline pressure data every 15 minutes. After receiving training from the supplier, BVK staff now use GPS receivers to geo- reference and make an inventory of BVK assets.
The supplier provided a vector map of Bishkek with addresses, which was integrated in BVK's billing database. As a result of this, BVK staff can now see data from the billing system (customer name, payment amount, amount due, etc.) on any geo-referenced map in an online mode. The NIS
32 enables computerized asset accounting and management. The system is used for long- and medium- term planning and real-time water supply and sanitation management.
Municipal Property Management System in Bishkek
An Automated Information System (AIS) for the Municipal Property Directorate (MPD) of Bishkek was developed and installed under the project, followed by testing, commissioning of the software and training of staff. Equipment supplied including servers, UPSs, computers and backup data storage devices. Since its commissioning, the AIS has been instrumental in improving transparency and accountability, as well as increased revenue for the municipality. As reported by the MPD, collected funds from the lease of municipal property in the city of Bishkek for the first quarter of 2016 (93,625 KGS) compared to the first quarter of 2015 (64,037 KGS) increased by 46.2% and this is attributed to the availability of the electronic system created under the project. Total cost: KGS 2,820,684.
Billing system for Osh-Tazalyk municipal service provider in Osh
An automated municipal billing system was developed and installed in Osh city (for waste collection). Following its commissioning, the bill registers were updated and the number of registered customers increased from 99,000 to 199,088 (100 percent increase); similarly, the collection improved drastically from 1 million KGS per month to 3 million KGS per month.
Document control system for Osh Mayor's Office (ASKID)
A data management systems was developed and installed at the Osh municipality. The software helped automate document management and control mechanisms. An additional module, ‘Requests, Grievances and Appeals from Citizens’ allowed citizens to file complaints and the Mayor’s office to monitor responses, improving the transparency and citizen engagement.
Capacity building for small town utilities and municipalities
Training on chlorination of drinking water was prepared and held on 28 - 30 May 2015 for the staff of Bishkek, Naryn, Talas, Shopokov, Osh, Batken, Isfana and Tash-Kumyr vodokanals, engaged in water disinfection during maintenance of water supply systems and main water intakes.
Exchange visit to Baku, Azerbaijan for the Water Directorate at SAACCS and utility staff from the municipalities of Bishkek, Kerben and Sulukta. The visit was focused on good practices in construction supervision, SNIP standards and norms. The visit took place in the fall of 2015.
Exchange visit to Khujand, Tadjikistan for water utility technical staff from Kerben, Sulukta, SAACCS. The visit aimed to showcase the experience with water metering and replacement of communal standpipes with individual household level connections. The visit took place in the fall of 2015
Training on design, implementation and construction supervision of water supply, sanitation and energy efficiency retrofits. The training took place in September 2015. It focused on the principles
33 and procedures for planning, design, implementation and supervision of urban works and energy efficiency retrofits, and procedural requirements for procurement in the World Bank financed projects. The audience included participants from state agencies, the private design and
Two exchange visits for participants in Component B took place in June 2015: one to Bishkek for community representatives of from Osh and Jalal-Abad cities, and on to Jalal-Abad and Osh for representatives of Bishkek. The focus of the visits was on community investments, priority selection mechanisms, effective social mobilization of communities, as well as the process of implementation of selected subprojects.
Water supply exchange (2015). A roundtable conference held following the official opening ceremony of the Bash-Karasuu Water Intake inviting mayors of towns and facilitating exchange of experiences in water supply practices.
Capacity building under the community investments component:
o Training in Community Procurement and Financial Management for 60 trainees representing Bishkek novostroiki (2009) o Trainings in subject Participatory Monitoring and Evaluation for 66 members of the participatory monitoring and evaluation groups of Bishkek novostroiki and specialists of the Municipal design department under the Bishkek city administration; and the Municipal Project Unit (2009) o Training in Community Procurement and Financial Management for 16 trainees representing Osh novostroiki proposals (2009) o Training in Participatory Monitoring and Evaluation for 21 members of novostroiki and the Osh Municipal Project Unit (2009) o Between June 25-25, 2009, training for 12 key employees of “Spetsavtobaza” was delivered in developing the performance improvement business plan, focused on tariff calculation based on real costs of the enterprise o From November 30 to December 1, 2009 a workshop was held in Bishkek on lessons learned and dissemination of successful experience in planning, financing and management of BOUIP subprojects, where the issues were reviewed and discussed on strengthening and enhancing the capacity of novostroiki communities, MTA institutions, TCs and quarter committees; dissemination of the best practices on the implementation of subprojects by novostroiki communities; expansion and dissemination of information on BOUIP policies and procedures; joint consideration of issue on optimization of the activities undertaken during the social mobilization of novostroiki communities. In the course of the workshop, tasks for the eligibility criteria of subprojects, community mobilization, training and implementation of subprojects under the component “Community Investments” were outlined with the identification of priorities in subproject selection, their implementation, joint monitoring and evaluation. The workshop was attended by 27 people. o Between 10-12 November, 2010, training/consultation on “Developing social and infrastructure subprojects”. 63 representatives of Bishkek novostroiki gained practical
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knowledge and skills in developing and management of subprojects addressing priority social and economical problems at the level of novostroiki and MTA. o On 25 November, 2010, training/consultation on “Developing social and infrastructure subprojects”. 16 representatives of Osh novostroiki gained practical knowledge and skills in developing and management of subprojects addressing priority social and economical problems at the level of novostroiki and TC o February 9, 2012 trainings on procurement and finances were delivered for responsible participants-representatives of novostroiki and MTA. 30 people participated in the workshop. Besides, in quarter I, 2012 monitoring of all the projects included in the first investment year was conducted. After the monitoring, the persons in charge were recommended to execute partial repair of some subprojects. o On May 3, 2012, for Bishkek and Osh MPU training was delivered on procurement, modifications introduced in the Operational Manual and Procurement Guidelines. The results of reviewing the tender documents for procurement procedures by WB Specialist I. Goncharova under Component B were also discussed. o On 12 March, 2013 30 participants including 15 women and 14 youth members attended the training in procurement and PM&E organized for municipal units and SPG leaders from towns of Talas, Chui, Issyk-Kul and Naryn Oblasts; o 27 March, 2013 training in procurement and PM&E was organized for municipal units and SPG leaders from towns of Batken, Osh and Jalal-Abad Oblasts attended by 37 trainees; o On 10th April, 2013 authorized municipal units and moderating consultants took part in the training in procurement and implementation arrangements of Subcomponent B3. The participants were 15 representatives. o Induction workshop has been held for MPUs of Bishkek, Osh and Jalal-Abad devoted to Sub-components B1 and B2 implementation arrangements, procurement procedures and Monitoring and Evaluation in Jalal-Abad, January 18. o On 25th March, 2013, training has been delivered for staff of Osh and Jalal-Abad MPUs in focus group discussions and activities in post-conflict areas given the recommendations made in the report for Subcomponent B2. o A presentation was prepared and seminar was held of labor protection and safety measures for contracts for construction of facilities under Component B-2 of MPU Bishkek and MTA of Jalal –Abad and Osh (2014)
COMPONENT D: IMPLEMENTATION SUPPORT
This component supported overall Project management carried out by the Community Development and Investment Agency (ARIS) through financing of:
Creation and maintaining the system of monitoring and evaluation of project effectiveness and outcome; Operational expenses of ARIS Project Management Unit; Annual audit of project accounts. Qualitative and quantitative baseline and beneficiary (end-of-project) surveys
In the purpose of effective project implementation, due attention was paid to selection of staff for project management unit (PIU). All PIU, specialists were provided with required computer
35 equipment and office equipment, furniture and other equipment that was procured in line with procurement procedures of the World Bank.
Under operational project support, impact assessment activities were carried out to define the indicators of accessibility, quality, and satisfaction of the urban population got water services, roads and social subprojects.
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Annex 3. Economic and Financial Analysis
1. This annex summarizes the ex-post economic analysis undertaken for the BOUIP and BOUIP-AF project to confirm its economic viability. Ex-ante economic analysis 2. Ex-ante economic analysis. The ex-ante economic analysis of the BOUIP and BOUIP-AF project included an assessment of the economic viability of Component A investments focusing on improvement of water supply infrastructure and using the Bishkek subproject as example. It did not include an analysis of Component B activities as not considered feasible due to the nature of the proposed investments. It accounted the benefits of improving water supply linked to the investment program in Bashkarasuu which intended to service up to 85,000 residents. It estimated benefits in terms of: a) time saved in water collection; b) reduced cost of purchasing bottled water; c) reduced costs of boiling water; d) cost saving in medical expenses associated with water-borne disease to including labor lost due to illness and ii) treatment costs; e) increased producer surplus (profit) to the small number of current businesses and a small number of new businesses which emerge as a result of improved water supply. On the cost side, it accounted incremental operating costs (Operation and Maintenance) and investment costs. 3. At 12 percent discount rate the Net Present Value (NPV) from the analyzed sub-project - Bishkek Bashkarasuu water intake - was USD 189,210 and an Economic Rate of Return (ERR) at 14.12%. The savings in time spent for collecting water with the project accounts for a major share of the benefits accounting for 49 percent, followed by savings in water boiling costs (25 percent), and then savings in costs of bottled water. At project appraisal the Bishkek subproject was considered representative of the economic viability of water supply improvement interventions. Ex-post economic analysis 4. The ex-post economic analysis relies on activities developed through-out the project including both BOUIP and BOUIP-AF. It includes a separate assessment of the economic viability of water supply investments – in all towns – and of road improvement investments in Bishkek. Both of these activities were part of Component A. Given the nature of Component B, C and D activities no benefits are accounted for these two components 5. The ex-post economic analysis assumes 20 years of asset life for both road and water supply investments, including the project implementation period, with corresponding benefits to be realized starting 2016. The adopted social discount rate is 12 percent and the standard conversion factor used was 0.85. A detailed description of benefits and results can be found a continuation. Economic analysis water supply investments (Component A) 6. The project, under Component A, delivered substantial benefits by improving water supply services for approximately 41,714 households in 8 cities: Bishkek, Osh, Batken, Isfana, Tash Kumyr, Shopokov, Naryn and Talas. Prior to the project households spend an average of 40 minutes per day collecting water. In addition, many households, due to intermittent supply, still relied on distant standpipes or unprotected standing water sources such as rivers, irrigation canals and shallow wells. Number of hours of water supplied was as low as 4.5 hours in some of the cities. As a result households had important coping costs. Coping costs, in particularly those associated with collecting water were and are overwhelmingly supported by women. A baseline household survey
37 was conducted at the beginning of the project and at closure to assess the end-of project conditions and estimate benefits. 7. The economic analysis of water supply investment includes (i) the cost of all water related investments, including estimated O&M costs and (ii) all measurable benefits, including decreases in the time spent collecting water; and welfare gains at household level associated with reduced need for in-house treatment (i.e., boiling of water) and reduced investments in water storage facilities as a result of improved water reliability. The ex-post economic analysis for water investments did not include benefits linked to reduced incidence of water-related diseases such as infectious hepatitis and acute enteric infections, reduced costs of purchasing bottled water and increased producer surplus of current businesses due to lack of data. Accounted benefits are similar to those founds in similar project in the country namely the namely the STICBP and the Rural Water Supply and Sanitation Projects (RWSSP1 & 2). A detailed list of benefits and results from project implementation can be found below: Reduced time in collecting water: Prior to the project households spend an average of 40 minutes per day collecting water. Based on results obtained from the beneficiary survey, households are saving on average 20 minutes per day. The situation differs from city to city, as some household had closer water sources before the project than others, but all beneficiary cities report important reductions. This reduction is similar to that found in other operations in the country – of around 30 minutes per day. A reduction in time collecting water is apparent in particular in towns or settlements in which distant standpipes were the main source for water. For example, in some of Bishkek Novostroika the average distance to nearest water source prior to the project was 211 meters, while after the project average distance was 0.5 meters as many households had in-house or yard connections. Important reductions in distance to water sources were also observed in Naryn, and in Orok. To estimate the economic benefits of this time, a rural average hourly wage of USD 0.6612 is used as a conservative measurement of the opportunity cost of this time savings. Under these assumptions, the project is generating annual benefits of USD 3,065,002 from economic gains of saving time to collect water. Reduced coping costs from boiling water: It is common practice in the country for households to boil water prior to consuming it. Energy savings associated with reduced need to boil water due to improved water quality are estimated based on a 10 liters/day per capita benchmark. Household survey results indicate that around 20 percent of beneficiary households stopped boiling water. Well-established benchmarks for the region are used in terms of energy requirements to boil water (0.09 kWh per liter of water) and an economic cost of USD 0.27 per kWh.13 Under these observations, the project is expected to generate annual benefits of USD 813,565 from energy savings linked to boiling water. Reduced investment in water storage. Also, a large percentage of households invest in water tanks to mitigate unreliable water supply. In this project, as expected, changes in water storing practices are mainly observed in settlements which passed to have 24 hours of water
12 Based on ILO data for the Kyrgyz Republic.
13 World Bank (2012), Europe and Central Asia Balancing Act; Cutting Subsidies, Protecting Affordability, and Investing in the Energy Sector in Eastern Europe and Central Asia Region
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supply, such as those located in Bishkek. In these areas reduction in water storage practices were up to 51 percent of beneficiaries. Other cities, such as Naryn and Talas, also saw important reduction in water storage practices, of around 25-30 percent. Water storage tanks cost USD 250 in the country and a depreciation of around five percent a year is assumed to calculate the future annual savings implied by not purchasing new tanks. Under these observations, the project is expected to generate annual benefits of USD 100,800 due to reduced investments in water storage tanks.
8. Based on the above, the total estimated annual benefits from water investments is USD 3,979,368 yielding an ERR of 13 percent and a NPV of USD 1.1 million. Costs for water investments included both capital investments (18.73 USD million) and increase annual operating and maintenance costs of around 220,850 USD.
Economic Analysis of Road Rehabilitation (Component A) 9. The economic analysis was done using the Highway Development and Management Model (HDM-4), which assessed streams of changes on road user costs and road works costs (as compared to a reference or without-project scenario) over an evaluation period. Road user costs consist of vehicle operating costs and travel time costs of passengers and freights. The basic parameters of the model, including existing pavement conditions, traffic volumes, and unit costs of vehicle operation, were obtained mostly through field surveys and desk reviews.
10. The basic input vehicle fleet economic costs and basic characteristics used are as shown in the Table below. Traffic growth is primarily driven by economic development and the corresponding increases in vehicle ownership and vehicle usage. The IMF`s forecast of GDP growth for the Kyrgyz Republic from 2011 to 2016 has been used for the forecast of normal traffic growth adopting an elasticity of 1.2 for passenger vehicles until 2016 with 1.0 thereafter and 1.0 for goods vehicles throughout the evaluation period. Accordingly, the passenger vehicles normal traffic was estimated to grow at 5.0 percent per year from 2011 to 2016 and at 4.1 percent per year thereafter. The goods vehicles normal traffic was estimated to growth at 4.1 percent per year throughout the evaluation period.
11. The project upgraded, to asphalt concrete road standard, in 2011, seven road sections that total 21.5 km. The total number of direct beneficiaries of road investments 30.7 thousand people. The length and average characteristics of the seven road sections are presented in the table below. Prior to the upgrading, the road sections were unclassified and were in poor condition with gravel or earth surface. Residents of residential communities were not satisfied with the quality of the roads and experienced inconvenience due to their condition: (i) more costs for footwear and clothing; (ii) additional time and costs for road travel; (iii) negative health effects with limit access to emergency services; and (iv) additional costs associated with the operation of personal motor vehicles. The road sections carry on average 2,009 vehicles per day, of which 5 percent are trucks.
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Table 1. Vehicle Characteristics Truck Truck Truck Car Bus Van Medium Heavy Trailer Economic Costs New vehicle price (US$) 14,850 18,400 18,000 55,000 17,000 21,800 Replacement tire (US$) 40 57 70 140 85 90 Fuel/liter (US$) 0.50 0.50 0.50 0.50 0.50 0.50 Lubricant/liter (US$) 5.00 5.00 5.00 5.00 6.70 6.60 Maintenance labor costs (US$/hour) 2.00 2.00 2.00 2.00 2.00 2.00 Crew costs (US$/hour) 2.00 1.00 1.00 1.00 1.00 1.00 Annual interest (%) 12 12 12 12 12 12 Passenger working time (US$/hour) 2.0 2.0 2.0 2.0 0.0 0.0 Passenger non-working time (US$/hour) 0.5 0.5 0.5 0.5 0.0 0.0 Cargo delay time (US$/hour) 0.0 0.0 0.0 0.0 1.0 1.0 Basic Characteristics Annual Vehicle Utilization (km) 23,000 30,000 34,000 30,000 40,000 86,000 Annual Working Hours (hours) 550 1,300 850 1,300 1,200 2,050 Vehicle life (years) 10 8 8 8 12 14 Passengers (number) 3 1 20 0 0 0 Gross Vehicle Weight (ton) 1.2 1.8 2.5 2 7.5 13 ESA Loading Factor (number) 0 0.02 0.04 0.1 1.25 2.28
Table 2. Road Characteristics Length Traffic Trucks No Road Section (km) (vpd) (%) 1 Ak-Ordo 1 3.3 5,302 4% 2 Ak-Orgo 2 1.5 397 3% 3 Dordoi 3.7 1,227 5% 4 Kalys Ordo 5.3 1,579 7% 5 Tynchtyk 0.8 61 2% 6 Dostuk (Kasim) 1.9 1,044 7% 7 Kara Jygach 5.0 2,035 5% Total 21.5 2,009 5%
12. The road works unit costs of the seven road sections are presented in the table below. On average the upgrading costs was US$ 198,454 per km. After the upgrading, the roads were classified as class 4 roads and became 7 m wide two lane roads with 50mm asphalt concrete surface layer and speed limit of 60 km per hour.
Table 3. Road Works Costs Cost Cost per Km No Road Section (US$ million) (US$ per km) 1 Ak-Ordo 1 0.736 222,952 2 Ak-Orgo 2 0.334 222,952 3 Dordoi 0.609 164,465 4 Kalys Ordo 0.872 164,465 5 Tynchtyk 0.198 247,729 6 Dostuk (Kasim) 0.471 247,729 7 Kara Jygach 1.048 209,510 Total 4.267 198,454
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13. The net benefits of the road investments are estimated as a reduction in the costs of road works and road user costs as compared to the reference scenario. The NPVs and ERR for each of the segments are given in the table below. The overall road investment has an ERR of 39 percent and a NPV of USD 14.29 million, which confirms substantial economic efficiency of the project.
Table 4. Ex-Post Economic Evaluation Results EIRR NPV at 12% B/C at 12% No Road (%) (US$ million) (#) 1 Ak-Ordo 46% 4.55 8.3 2 Ak-Orgo 16% 0.12 1.4 3 Dordoi 36% 1.57 4.0 4 Kalys Ordo 49% 3.81 6.1 5 Tynchtyk 5% -0.09 0.5 6 Dostuk (Kasim) 23% 0.45 2.1 7 Kara Jygach 45% 3.89 5.4 Total 39% 14.29 5.0
Economic Analysis of Component B 14. The project also yielded important benefits through activities developed under Component B (Community Investment Program). Although direct economic benefits are not being accounted as part of the Economic Analysis due to the nature of the activities supported, the project beneficiary survey included focus groups discussion and qualitative assessment of Component B. Some of the benefits stated by beneficiaries included; reduction of expenses on payment for sport activities due to increased access to nearby recreation areas (Cholpon-Ata, Bishkek), increased comfort and safety of movement (construction of pavements in multiple settlements), reduction of time and financial expenses due to increased availability of nearby medical facilities (Osh and Ozgon cities), and increased earning and job opportunities linked to increased availability of kindergartens (multiple settlements).
Economic Analysis of BOUIP and BOUIP-AF 15. The table below summarized the results of the ex-post economic analysis. It contains separate ERR and NPV calculations for water investments and road investments and unified NPV and ERR calculations including all project costs and only the benefits accounted from water and road investments. Given that benefits from Component B and D are not accounted for, the NPV and ERR of the project are likely to be underestimated. As a result economic efficiency of the BOUIP and BOUIP-AF project is substantial. Table 5. Ex-Post Economic Evaluation Result for all project and by activity
ERR NPV All Project 13 percent $2,042,500 (Component A, B, C and D) Water investments 13 percent $1,102,164 (Component A) Road Investments 39 percent $14,290,000 (Component A)
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ECONOMIC ANALYSIS 1…. 20 Units 2008 2009 2010 2011 2012 2013 2014 2015 2016 …. 2035 Estimated annual savings from reduced time collecting water ‐ A1 USD/year 3,065,002 …. 3,065,002 Estimated annual saving from reducing the water boiled ‐ A1 USD/year 813,565 …. 813,565 Benefits from avoided investments in water tanks ‐ A1 USD/year 100,800 …. 100,800 Benefits from roads USD/year 868167.65 1047445.78 1238196.67 1443810.24 …. Economic cost of project investment (all components) excluding roads USD/year 3,504,125 3,504,125 3,504,125 3,504,125 3,504,125 3,504,125 3,504,125 3,504,125 220,850 …. 220,850 Economic cost of project investment (component A1=water) ‐ excluding roads USD/year 2,060,630 2,060,630 2,060,630 2,060,630 2,060,630 2,060,630 2,060,630 2,060,630 220,850 …. 220,850 Economic costs of project (roads) USD/year 3,618,657 …. SUM (Benefits ‐ Cost) for all project components excluding roads USD/year (3,504,125) (3,504,125) (3,504,125) (3,504,125) (3,504,125) (3,504,125) (3,504,125) (3,504,125) 3,758,517 …. 3,758,517 SUM (Benefits ‐ Costs) for component A1=water excluding roads USD/year (2,060,630) (2,060,630) (2,060,630) (2,060,630) (2,060,630) (2,060,630) (2,060,630) (2,060,630) 3,758,517 …. 3,758,517 SUM (Benefits ‐ Costs) for all components including roads USD/year (3,504,125) (3,504,125) (3,504,125) (3,504,125) (7,122,782) (2,635,957) (2,456,679) (2,265,928) 5,202,328 …. 3,758,517 SUM (Benefits ‐ Costs) for Component A1=Roads USD/year 0 0 0 0 (3,618,657) 868,168 1,047,446 1,238,197 1,443,810 …. 0
NPV all project $2,042,500 NPV Component A water $1,102,164 NPV Component A roads $14,290,000 ERR all project 13% ERR Component A water 13% ERR Component A roads 39%
Social Discount Rate 12.0%
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Annex 4. Bank Lending and Implementation Support/Supervision Processes
(a) Task Team members Responsibility/ Names Title Unit Specialty Lending Pier Mantovani Lead Water and Sanitation Specialist GWA03 Mirlan Aldayarov Senior Energy Specialist GEEDR Anna Cestari Senior Water Resources Specialist GWADR TTL Ellen Hamilton Lead Urban Specialist GSURR Felix A. Jakob Consultant GWADR Jonathan S. Kamkwalala Practice Manager GWADR TTL Wolfhart Pohl Adviser GCFDR Nargis Ryskulova Operations Officer GTIDR Janna Ryssakova Social Development Specialist ECSSO Responsibility/ Names Title Unit Specialty Supervision/ICR Mirlan Aldayarov Senior Energy Specialist GEEDR Irina Goncharova Procurement Specialist GGODR Felix A. Jakob Consultant GWADR Mary P. Judd Consultant GSURR Naushad A. Khan Consultant GGODR John Otieno Ogallo Senior Financial Management Specialist OPSOR Nargis Ryskulova Operations Officer GTIDR Kremena M. Ionkova Senior Urban Development Specialist GSU09 TTL Paula Restrepo Cadavid Urban Economist GSU09 TTL Anna Gueorguieva Senior Economist GSU09 ICR TTL Anna Cestari Senior Water Resources Specialist GWADR TTL Pier Mantovani Lead Water and Sanitation Specialist GWA03 Cesar Niculescu Senior Environmental Specialist GEN03 Jasna Mestnik Disbursement Officer WFALA Leyla Talipova Consultant GSURR Hadji Huseynov Senior Infrastructure Specialist GWADR Nodar Mosashvili Financial Management Specialist GGODR Aidai Bayalieva Transport Specialist GTIDR Nightingale Rukuba- Counsel LEGLE Ngaiza Ekaterina Romanova Safeguards Specialist GSURR Alisher Khamidov Safeguards Consultant GSU03 Asli Gurkan Social Development Specialist GSURR Delphine Alberta Hamilton Senior Program Assistant GSU09 Lorraine McCann KosinskiProgram Assistant GSU09
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(b) Staff Time and Cost
Staff Time and Cost (Bank Budget Only) Stage of Project Cycle USD Thousands (including travel and No. of staff weeks consultant costs) Lending FY07 11.90 120.82 FY08 23.59 208.56 Total: 329.38 Supervision/ICR FY08 6.82 17.73 FY09 21.39 87.80 FY10 23.42 84.13 FY11 25.75 105.76 FY12 13.71 72.93 FY13 22.98 114.77 FY14 20.58 96.48 FY15 32.54 201.22 FY16 21.34 107.98 Total: 888.80
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Annex 5. Beneficiary Survey Results
1. A Beneficiary Survey to capture results achieved under BOUIP was carried out in September 2015 by Rebikon (Kyrgyz Republic). It included quantitative survey of 1,200 households, 43 focus group discussions with 337 participants, and 40 in-depth interviews. All entries were geo-referenced. The results were compared with results from a 2011 Baseline Survey carried out at the beginning of the AF and also with “retrospective” baselines with recall questions back to 2010. A summary of findings per locality is presented below.
Component A. Water supply
Bishkek 2. BOUIP impact areas in Bishkek city cover territories in Ak-Orgo, Ak-Ordo, Alykulov Street (MTU #3), Yntymak (MTU Chong-Aryk), Archa-Beshik, Orok, Ala-Archa (MTU #4) new settlements.
3. Before implementation of BOUIP there was no central water supply system in Ak-Ordo. Residents of the Novostroika had to deliver water from neighboring Ak-Orgo new settlement or used to buy delivered water. All residents in project impact area are covered by the water supply services. The majority of households (HH) have in-house connections
4. 97% of HH, residing in the project impact zones in Bishkek city (97%) are satisfied with the quality of drinking water, 57% are fully satisfied with the quality.
5. In 2015, 96% of HH in the project impact area in Bishkek received water 24 hours/day.
6. 77% of households with in-house connections and 72% of households with in-yard connections assess the water supply pressure as “good” and “very good”.
7. In 2011, 75% of HH in MTU #3 lived in a dinstance of 150m and more away from the nearest source of drinking water, whereas nowadays all households in MTU #3 live in less than 100m away. In MTU #4 the distance to the nearest source of drinking water did not change (4 m on average).
Naryn 8. The BOUIP impact area is western part of town (Tosh-Bulak residential area). Nowadays, all of the households use only tap water for drinking, food preparation and washing purposes. The main sources of water: 74% HH use individual connections, 26% - in house connections, 34% - in yard connections and 36% of HH use public taps as the main source of water for drinking and preparation of food purposes. Only 14% of HH used to use public standpipes for water supply services in 2011; 64% used open water sources such as ditches, river, lake or spring.
9. All residents of Tosh-Bulak new settlement are satisfied with the quality of water, and 90% are fully satisfied.
10. All households living in Tosh-Bulak new settlement had access to services of water supply every day, for 24hours.
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11. All households that use public taps consider that water supply pressure is good or very good. Among the HH with individual connections, 92% HH (in house connections) and 86% HH (in-yard connections) have noted that the water supply pressure is good and very good.
12. In comparison with 2011, the average distance to the nearest source of drinking water has significantly been decreased from 347m to 49m14. Only 6% of respondents currently deliver water from sources that are located in distance of more than 150m, whereas in 2011 the share of such was 62%.
Batken 13. 89% of HH use central water supply as the main or alternative source of drinking water. 11% of HH use drainage canals as the main source of drinking water. In 2011, 35% of HH used open sources such as canals for drinking. Today, 15% have home or yard connections, compared to none before the project.
14. 82% of HH are satisfied with the quality of drinking water. In 2011 the share of satisfied respondents was 65%.
15. Water supply in central water supply pipes nowadays and in 2011 is provided every day for 5 hours a day on average. 96% of HH have water running for less than 12 hours a day. According to quantitative survey, water supply duration in 2010 was 4 hours/day. According to information from the utility and mayor’s office, water is being rationed to save electricity costs.
16. In 2011, 6% of respondents have assessed the pressure of water supply as good and very good, whereas nowadays the share of such is 35%.
17. The average distance to the nearest source of water is 147m. In 2011 the average distance to the water source was 165m on average. The share of HH that are located in 150m and more has decreased from 35% to 29%.
Isfana 18. Field works in Isfana were implemented in September 2015 immediately after rehabilitation works. The residents may not have felt the project impact fully over such a short period.
19. 81% of HH are served by the services of central water supply system, and in 2011 it was 78% HH. The share of in-yard connection has increased from 21% to 32%. The Bozogul Novostroika was the most challenging; it had no internal water pipeline and people had to take water from open sources and other areas. Currently, all households in this Novostroika have access to water pipelines.
20. 96% of HH are satisfied with the quality of drinking water, which is higher by 35 percentage points compared to 2011.
14 For HH connections, the distance to the nearest water source is taken as “0”
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21. Water in central water pipeline is provided every day. The average duration of water supply has increased from 4.5 hours to 8 hours per day. In 2011 all households received water for less than 12 hours a day. Currently, 20% of households have 24-hour water supply; 7% receive water for 12-23 hours per day. According to a letter by the Mayor of Isfana dated March 26, 2016, water is being supplied 24h/day in Bozogul area and 12h/day in the central part of town.
22. The share of households, which are users of individual connections that assess water supply pressure as good has increased from 5% up to 34%. The share of households among public tab users who has noted the water supply pressure as good or very good has increased from 4% up to 65%.
23. The average distance to the nearest source of drinking water is 52m, which is 4 times less than it was in 2011 (211 m). In 2011, 81% of households used to live in distance of 150m and less from the nearest source of drinking water, and currently the share of such is 94%.
Talas Water supply sector
24. Multiflat apartments and private houses are located in Talas project impact zones. 85% of residents of project impact zone are covered by the services of water supply. All residents of multi flat apartments use in-house connections as the main source of water. Private houses are not connected to the central water supply system and currently, as well as before the project was implemented, use individual manual pumps as the main source of water.
25. 99% of HH are satisfied with the quality of drinking water, whereas in 2011 only 39% of households were satisfied.
26. 93% of households used to have water for 7 days a week. In 2011, it was 6 days a week on average, and for 21 hours a day. The share of households that have water for less than 12 hours a day, has decreased from 14% to 3%. The share of households who have 24hr access to drinking water vice-versa has increased from 85% to 92%.
27. 76% HH in 2015 have noted that water supply pressure as good and very good, and in 2011 the share of such was 32%. Low pressure was a problem for residents at upper floors of multi-storey blocks. 13% of them could not use water pipeline in 2011 as water did not reach upper floors. Currently, 6% report on this problem – people at 4th and 5th floor.
Sewage sector
28. The project included replacement of existing sewage pipes on Turdaliev and Aldashukurov streets for total length of 1018 m; this makes good impact on the entire sewage system in Talas town.
29. Participants of focus groups have noted that until 2014 the multi flat houses within the project impact zone were connected to the sewerage network in such a way that the sewage did not flow out and use to flood basements. This was resolved following the project.
30. Still, just like in 2011, the sewage system in multi flat apartment works with failures. Despite the poor status of sewage network in the multiflat block, over half of households (63%)
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noted on improved operation of the system; 53% of households reported that pipes were replaced. The majority of households noted on improvements and that these were facilitated by ARIS.
Villages in Orok Aiyl Okmotu (survey conducted before completion of works under BOUIP)
31. 65% of households use services of central water supply system, 27% of HH (Djal and Sarban village residents) use water pipeline connected to other source. Households that use in- house connections as the main source of drinking water has increased from 27% to 44%.
32. At the time of the survey, Kash-Kabash, Selekcionnoe and Novaya Selekciya villages were connected to Bashkarasuu water intake. At the time of the survey, works are at final stage for connection of Verkhny Orok, Nizhny Orok and Djal villages to Bash-Karasuu transmission mains.
33. Majority of households (85%) are satisfied with quality of drinking water. In comparison with 2011 the share of households that are satisfied with the quality of water has increased by 12 points.
34. During the period under survey, water from central water pipes was provided on average for 6 days a week, and for 23 hours a day. In 2011, water from central water system was provided on average for 5 days a week, and for 16 hours a day. The share of households that had water for less than 12 hours a day has decreased from 26% to 9%.
35. 81% of households with in house connections assess the water supply pressure as good and very good, whereas in 2011 the share of such was 39%. 66% of HH, which are users of in- yard connections have assess the water supply pressure as good and very good, which is higher with 31 percentage points compared to 2011.
36. 92% of HH deliver water from the nearest source, which is located less than 150m away. The average distance to the nearest drinking water source is 56m.
Shopokov 37. 67% of HH in Shopokov located in the project impact area have individual in house connections. In comparison with 2010 the share has not changed. The share of HH with individual in-yard connections has increased from 3% to 15%. HH living in private houses use water from wells, boreholes, and water towers. The share of such HH has decreased from 29% to 16%.
38. 98% of the households are satisfied with the quality of drinking water, and 80% are fully satisfied. The share of those who are fully satisfied with the quality of drinking water has increased in comparison with 2010 data by 32 percentage points.
39. According to the information of project participants (employees for Vodokanal and residents of settlements) maintenance of sewage system was made in September 2015 in Shopokov city, and because of that there were interruptions in water supply. In 2010 8% of HH had access to services of water supply for less than 12 hours a day. Nowadays there are no such HH. 99% of HH have noted that in summer of 2015 water was supplied for 24hours, and 96% in winter. In 2010, 64% of respondents have received water for 24hrs a day in winter, and 58% in summers.
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40. 97% of households with in house connections, 98% with in-yard connections have assessed water supply pressure as good and very good. Prior to the project, pressure was low, especially in higher floors of multi flat apartments.
41. The average distance to nearest source of drinking water is 19m. 98% of households are located in distance of less than 50m from the nearest source of drinking water.
Tash Kumyr (survey conducted before completion of works under BOUIP)
42. The field work in Tash Komur was conducted in a period between 09/11/15 and 12/11/15, during completion of the town’s water supply rehabilitation works. The population of the town did not notice impact of the project.
43. 43% of households use in house connections as the main source of water, and 51% use in yard connections. 6% of HH were revealed by the research, who use public taps as the main source of drinking water.
44. 88% households are satisfied with the quality of drinking water, and 35% are fully satisfied.
45. In October of 2015 (research period), as well as in 2010, water in Tash Komur city was provided for 6 days a week. 57% of HH receive water from water supply systems every day. Considering the number of water supply days, water is supplied for 11 hours a day. Majority of HH (62%) receive water during less than 12 hours a day. Replacement of old pumps with new energy-performance pumps and installation of new water treatment equipment are likely to result in increased water supply hours and better quality. A letter from the Director of the water utility dated March 24, 2015 confirms that water is provided 12h/day.
46. The average distance to the nearest source of drinking water is not high and is on average 6 m.
Osh 47. Currently, the main source of water in the project impact zone in Osh city is the central water supply system. The majority of HH have private connections (20% - in house, 52% - in yard). In 2010, 29% of households used as main source of water for drinking and preparation of food was open source – irrigation ditch. In Kalinin residential area almost all households (98%) used water from ditches, and 34% in Dostuk residential area. Currently, there are no such households.
48. 68% of households are satisfied with the quality of drinking water. In comparison with 2010 the share of satisfied respondents with the quality of water has increased by 20 percentage points. The main shortage of tap water is that it is too chlorinated.
49. Majority of HH (99%) had water available from apartments every day (in Dostuk and Turan residential areas – 100%, in Kalinin residential area – 96%). Water is supplied on average 23.7h/day.
50. The best water supply pressure is in public taps. 92% of households that use the public taps think that it is good and very good.
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51. The average distance to the drinking water source is 19.5m. During last 5 years it has decreased by 4m.
Component A. Roads
52. During the assessment, 23,248 thousand vehicles crossed the check points. Most of vehicles that crossed the check points (74%) are light cars. 16% of vehicles are microbuses. The most used road is in Ak-Ordo new settlement. There 46% of vehicles were traced.
53. Participants of the research are mainly satisfied with the results of the project and have noted positive impact of project on the life of population in the settlements. After the rehabilitation of roads, public transportation (microbuses) commenced. In Ak-Orgo and Dordoi settlements there is one bus route, in Kalys-Ordo - 3 routes were opened. Participants in the survey also noted that after the rehabilitation, project time and financial expenses spent on transportation have decreased. Residents of Dordoi residential area noted that after construction of bridge over river15, it became convenient for children to go to school in the Enesai new settlement. No significant cuts in expenses related to shoe maintenance and fixing personal vehicles were noted.
54. Participants of the survey noted that having asphalt road and public transportation impacts the cost of housing. Thus, participants that live near the road that are rehabilitated under the project framework have noted significant increase in the market value of their houses.
Component B. Community Investment
55. In general, participants in the survey are satisfied with the results of the project and consider the objectives of project achieved.
56. Reconstruction of irrigation ditches in Bishkek. Implementation of the project has contributed to the increase of the well-being of households. After receiving access to irrigation water, residents of residential areas can grow agricultural products not only for personal use but for sales as well. Construction of irrigation networks has positively impacted on water supply of residential areas with drinking water because the main factor of failure in water supply and decrease of pressure in central water pipes is use of drinking water for irrigation.
57. Sport facilities Bishkek city, Cholpon-Ata. Construction of sport facilities under the project has met the needs of residential areas in sport facilities because almost in all residential areas had no such installations before implementation of project. Expenses of households on payment for sport activities related to transportation to other regions of city has decreased. Also improvement in health of residents who do sports has been mentioned, especially in kids’ health. Ability to do sports is now accessible for all residents of residential area, regardless of wellbeing of households. Sport facilities became popular places for useful spending time. Sport contests that are organized in these sport grounds influence on creating positive atmosphere.
58. Construction of pavements Bishkek, Osh and Naryn. As a result of works related to construction of pavements, residents of cities covered by the project, especially kids now have
15 Bridge was constructed under Component B Phase I in 2009.
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secured comfortable and safe movement. Participants of the research have noted decrease of expenses related to fixing shoes and decrease in number of injuries.
59. Construction of children playgrounds, Bishkek and Osh cities. In all focus groups participants have mentioned insufficient number of children playgrounds as one and main problem of infrastructure. As a result of project implementation on construction of children playgrounds places for kids to play have are now convenient and safe. Participants of research had mentioned that children spend time on these playgrounds with pleasure.
60. Reconstruction of irrigation ditches Osh city. Because of the condition of irrigation network in the project impact zones there was a danger of flooding houses, adjoining areas and basements. Residents were not safely move on roads because of flooded pavements. In winter time frozen water on pavements increases risk of having traumas. After implementation of project all risk factors related to condition of irrigation network, that might have potentially influenced on occurring additional expenses on maintenance of houses, medical treatment and etc, have been removed. The outlook of streets have improved.
61. Improvement of parks, squares, Osh and Kara-Balta cities. According to research participants, all park areas, alleys are needed for the resting purposes for urban residents and purifying air. As soon as the population grows, the need in such places grows as well. As a result of implementation of project, conditions for outdoor activities were improved, including walking with children, communication and improvement of population.
62. Construction of FAPs, Osh and Ozgon cities. Population in the project impact zones had problems with having access to medical facilities. Residents had to visit medical facilities of other rayons of city to get medical treatments.
63. As a result of project implementation urban residents have access to medical facilities are in steps away. Time and financial expenses (transportation) have decreased related to visiting medical facilities. Time spent on waiting in lines has been decreased as well.
64. Construction of polyclinic in Djalal-Abad. Until implementation of project the building of the polyclinic was in severe condition. After construction of new building, residents of TM Kurmanbek can have medical assistance in comfortable conditions.
65. Construction of children playgrounds for kindergartens, maintenance of kindergartens, Osh city (4 kindergartens (KG#1, #40, #48, #29). As a result of project implementation comfortable and safe conditions are provided for children in kindergartens. Roofing has been replaced in kindergarten #1 which was leaking before After maintenance of decks which were in poor conditions, children now have chance to spend more time outdoor, which positively impacts on their health.
66. Implementation of projects on maintenance of kindergartens (#16 Osh city, #31 Jalalabad city, #13 Tash Komur city), construction of kindergartens (TM Dostuk, #2 Kadamjai city), purchasing equipment (#13 Toktogul city, “Romashka” Orlovka city) has contributed not only to creating comfortable condition for children’s stay. New groups were opened in these kindergartens, which decreases acute problem of providing population with preschool institutes. New jobs were created.
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67. Installation of fences in school #26 and in branch of Tuleberdiev school in Osh city limits access to school territory and provides secure presence of children.
68. Newly built concert hall in Kochkor Ata has become popular venue for conducting concerts, celebrations, creative competitions, contributed to growth of interest in population to learning music.
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Annex 6. Stakeholder Workshop Report and Results (As presented by ARIS)
BOUIP Completion Workshop Date: September 28, 2015 Venue: Plaza Hotel Conference Room, 52 Togolok Moldo St. Total participants: 52
1. The BOUIP Completion Workshop brought together representatives of the Ministry of Finance, Department of Water Supply and Sanitation under the State Agency for Architecture, Construction and Communal Services, Mayor’s Offices of Bishkek and Osh, World Bank, small town municipalities and vodokanals (water service providers), project beneficiaries, municipal entities, Municipal Territorial Administrations (MTA) and Territorial Councils (TC), novostroiki (semi-informal settlements) leaders, and ARIS staff.
2. The main objective was to summarize BOUIP implementation results and present the outcomes achieved under all of the project components. The presentation included an infographic video that demonstrated in detail and a readily understandable way all information about the project for the period from 2008 to 2015.
3. Deputy Executive Director of ARIS A. Mukhtarov, who opened the workshop, informed that ARIS had started BOUIP implementation in 2008 with total funding of USD 14,350,000, including USD 12 million as a grant from the World Bank, USD 1.2 million as co-financing from the Government of the Kyrgyz Republic, USD 1.1 million as co-financing from Bishkek and Osh municipalities, and USD 0.05 million as contributions from Bishkek and Osh novostroiki communities. Over a 5-year period, the project helped improve living conditions in Bishkek and Osh novostroiki and facilitated their socioeconomic integration into the urban community. Upon completion of the Project, the World Bank decided to continue it and provided additional financing.
4. BOUIP Project Coordinator B. Umetov gave more details on the project. In particular, he informed that BOUIP achieved the planned objectives. The rehabilitation of water supply systems helped improve access to safe drinking water in small towns across the country. A road construction subproject was implemented in 7 novostroiki around Bishkek, resulting in 21.5 km of new paved roads. A water supply rehabilitation and construction subproject covered 3 Osh novostroikas, as a result of which 50,000 people now have clean drinking water. As a result of the Project, novostroiki communities gained access to social infrastructure: schools, kindergartens, medical facilities, sports facilities, public parks and gardens, etc. In addition, small towns received automated management information and billing systems that were successfully introduced and operated.
5. Project Coordinator emphasized that the Project had also funded a number of small subprojects initiated by communities themselves. A total of 77 social subprojects were implemented in Bishkek and Osh novostroiki under the Original Project (from 2008 to 2012). The subprojects covered the construction and rehabilitation of kindergartens, gyms, sports grounds and playgrounds for children, walkways and irrigation (aryk) systems. The novostroiki received new garbage trucks, monument signs, and equipment and gear for sports facilities.
6. As a result of successful implementation, in 2012 the World Bank made a decision to continue the project and provided additional financing. Apart from Bishkek and Osh, additional financing covered small towns of Kyrgyzstan. The World Bank allocated a total of USD 15.8
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million, including USD 8.7 as a credit and USD 7.1 million as a grant. The Government of the Kyrgyz Republic provided co-financing of USD 1.325 million and participating municipalities contributed USD 1.525 million.
7. Under BOUIP Additional Financing, the project rehabilitated the Bash-Karasuu water intake, which now supplies clean drinking water to novostroiki around Bishkek and villages in Orok Ayil Aymak, Chui Province. In addition, Bishkekvodokanal (BVK) received laboratory equipment for water quality testing. The works also included the rehabilitation of water supply systems in Batken, Naryn, Shopokov, Isfana, Tash-Kumyr and Talas.
8. With the additional financing, BOUIP implemented 96 social subprojects, including 3 subprojects funded by the participating municipalities (mayor’s offices). The work included construction and rehabilitation of high schools, kindergartens, polyclinics, GFD buildings, RHPs, gyms, sports grounds, mini-football fields, cultural centers, playgrounds, walkways, public gardens and parks, irrigation and aryk systems.
9. The Project was implemented in strict compliance with environmental standards and successfully applied the World Bank’s Resettlement Policy. The project activities were supported by active public awareness raising and outreach efforts.
10. The workshop participants expressed gratitude for the work done. The representatives of vodokanals and municipalities where BOUIP had rehabilitated water supply systems showed the most appreciation, as the water supply problem had been very acute due to the lack of financing despite the city status. Today project beneficiaries enjoy free and safe access to clean drinking water. The representatives of municipal entities, Municipal Territorial Administrations (MTAs) and Territorial Councils (TCs), as well as novostroiki community leaders, expressed their appreciation for the social subprojects implemented in Bishkek and Osh novostoiki, territorial units and small towns of Kyrgyzstan. Thanks to this effort, novostroiki communities now have access to social infrastructure, such as schools, preschools, healthcare facilities (polyclinics, rural health posts), gyms, sports grounds, football fields, public parks and gardens, irrigation systems, and many others.
11. The questions raised during the workshop concerned mainly the possibility of further cooperation, capacity building of vodokanal and municipality personnel, and assistance with equipment.
12. The workshop participants expressed the opinion that the Bishkek and Osh Urban Infrastructure Project had greatly contributed to the integration of novostroiki into the urban environment and facilitated the development of small towns.
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Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR
(This is a summary of the client ICR. Only relevant sections were covered here and the listing of outputs was omitted as this is covered in other Annexes) 1. After the collapse of the USSR, Kyrgyzstan, like the other ex-Soviet countries, went through a period of economic decline. People started moving from rural areas, where unemployment was very high, to major villages and oblast-level cities, which resulted in chaotic and non-systematic new housing development around Bishkek and Osh. A new term was introduced to describe these new semi-formal settlements—‘novostroiki’. Almost all novostroiki today have no social infrastructure, such as hospitals, schools and preschools, sports facilities, paved roads, etc. One of the most pressing problems is the lack of safe drinking water.
2. According to experts, sources of employment in novostroiki around Bishkek correlate well with how long the novostroiki exist. Communities in old novostroiki have been living there for a long time and eventually become part of the city, having established extensive family and business ties in it. Over the years of living in the capital, they have acquired new skills and capacities that are in demand in the city and give a chance to find a good and well-paid job. In new novostroiki, on the contrary, there are much more newcomers from rural areas and small towns. As a result of this, sources of employment in old and new novostroiki are very different. Some novostroiki, such as Dordoi, were built around markets. For communities of such novostroiki, markets are the main source of employment.
3. The sources of employment for communities in Osh novostroiki are very limited. These are the public sector, private business (as unskilled workers), self-employment (taxi drivers, beekeepers, welders, etc.) and trade (commerce). Such a short list of occupations is due to the current economic situation, general lack of jobs and stagnation of production.
4. Based on the above, in 2008 the Government of the Kyrgyz Republic and the World Bank launched the Bishkek and Osh Urban Infrastructure Project (BOUIP) – Main Financing. The World Bank provided a grant of USD 12 million. Contributions from the Kyrgyz Government, Bishkek and Osh municipalities and novostroika communities totaled USD 1.2 million, USD 1.1 million and USD 0.05 million, respectively. The implementing agency was ARIS. The project development objective was to improve access to and quality of basic infrastructure services for novostroiki population. The project aimed to improve living conditions in Bishkek and Osh novostoiki and facilitate their socioeconomic integration into the urban community.
5. Following the successful implementation of the project, in 2012 the Kyrgyz Government and the World Bank agreed to expand BOUIP and provide additional financing to support it. Apart from Bishkek and Osh, the additional financing aimed to cover all small towns in Kyrgyzstan. The World Bank provided a total of USD 15.8 million, including USD 8.7 million as a credit and USD 7.1 million as a grant. The Kyrgyz Government and participating municipalities contributed USD 1.325 million and USD 1.525 million, respectively. ARIS continued to be the implementing agency. The main objective was to improve access to basic urban services in novostroiki around Bishkek and in selected small towns across Kyrgyzstan and increase the availability of social infrastructure in small towns and post-conflict areas in Osh and Jalalabad.
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6. In order to achieve Project objective, the below structure of the project was adopted. The project comprised four components, each component dealing with specific tasks. In general, the components were designed to accomplish the tasks set for the Project by the Government of the Kyrgyz Republic.
7. This report provides a summary of the results achieved in the implementation of project funds allocated by the World Bank, as well as funding from the Government of the KR, LSG, and contribution to the residents of novostroiki.
8. Results of implementation. The financial resources were utilized in accordance with the World Bank’s procedures, with the implementation of subprojects following the complex implementation cycle in compliance with Operating Manual of project.
Occupational safety and health 9. All contractors’ staff was instructed on occupational safety and health and has protective over garment and foot wear. Pictures are regularly taken at the site to reflect the progress of construction works. There were no accidents at the site during the reporting period.
Environmental security 10. Environmental mitigation activities are carried out by a contractor and controlled by technical supervision engineer and safety specialist.
11. Key environmental activities under BOUIP aimed to identify the main factors and issues related to the prevention and minimization of environmental and social risks, environmental and social monitoring, and public awareness raising activities at all levels.
12. Activities, examples, methods used, and lessons learned are presented in a matrix form below with a breakdown into environmental and social components and the results achieved.
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Environmental safeguards
Activity Lessons learned and results The key conclusions from the updated EA are as follows: 1. Before the project, the Environmental Assessment (EA) of BOUIP subprojects was updated to identify measures that would 1. The risk that underground waters near the Bash-Karasuu water intake will be help prevent/minimize negative environmental impacts of polluted with biological substances from the nearby old (closed) cemetery is unlikely, construction and operational activities. A special focus was placed because the last burials took place over 30 years ago, which means there has been no on potential negative impacts on the Bash-Karasuu water intake short- and long-term microbial contamination. from the nearby agricultural lands and the old cemetery that were 2. It was recommended that the Sokuluk rayon (district) administration ban located in close proximity to the water intake area. The assessment farmers from using toxic chemicals at agricultural lands upstream the water intake also covered potential impacts of the new water intake on existing facility during the operational stage. sanitary conditions in Bishkek novostroikas resulting from the 3. BishkekVodoKanal (BVK) was advised to provide technical specs for supply of more water. individual water connections in Bishkek novostroikas only after the households have built waterproof septic tanks and signed contracts for wastewater removal and disposal with local housing and communal service providers. 2. Rayon-level public consultations were held in Orok ayil aymak, The EA findings were posted at ARIS’ official website www.aris.kg to catch attention Sokuluk rayon to discuss EA findings with the stakeholders of the and study opinions of all project stakeholders (local communities, local authorities, Bash-Karasuu water intake and transmission mains project. NGOs, environmental organizations, contractors, mass media and government Country-level public consultations were organized for the agencies). The EA data was also disclosed through dissemination of the stakeholders of the other 4 water supply and sanitation system Environmental Assessment Bulletins and presentation of environmental sections of all rehabilitation subprojects in the towns of Naryn, Talas, Batken and Component A subprojects. Isfana.
3. An Environmental Management Plan (EMP) and Monitoring All environmental measures and activities outlined in the EMP were included in bills Plan (MP) were developed based on the updated EA of Component of quantities (BOQs) to allow for all applicable environmental and economic aspects, A subprojects. The documents outlined BOUIP’s environmental including health and safety impacts. strategies in accordance with World Bank’s OP 4.01 Environmental Assessment and described measures to prevent/minimize negative impacts on the environment.
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4. Consultations on the development of individual EMPs for All contractors developed individual EMPs in accordance with World Bank’s OP 4.01 subprojects were provided to the following contractors Environmental Assessment and submitted them to ARIS for review and approval. (construction, installation and commissioning): 1. Shymkentmelioratsia LLP 2. Minur LLC 3. Ekaras LLC 4. Yugservis JSC 5. Usta LLC 6. Inzhenernaya Zaschita LLC 5. Territorial environmental agencies and local authorities were The trees were removed with the permission of Orok ayil okmotu, with no impacts on contacted to discuss such environmental issues as tree removal and birds, e.g. during the winter. replacement and environmental monitoring. The Chui-Bishkek-Talas Environmental Department issued a permit (#002572 of January 11, 2013) to cut down and remove 98 trees along the Bishkek-Archaly road, including pre-construction tree removal survey, to enable the construction of water transmission mains under the Bash-Karasuu subproject. In cooperation with Orok authorities, environmental monitoring was carried out to make sure that trees and shrubs are removed before the birds nesting season (in spring). 6. New trees were planted to replace those removed during the Tash-Kumyr Mayor’s Office and administration of Orok ayil okmotu (Sokulul rayon, construction of water transmission mains to Bash-Karasuu and in Chui province) were approached with a request to organize planting of 400 new trees Tash-Kumyr. by each territorial unit. Tree transplants were provided by contractors: Inzhenernaya Zaschita LLC (Tash-Kumyr) and Shymkentmelioratsiya LLP (Bash-Karasuu).
7. Environmental summaries of each project were prepared and Environmental information was disclosed to general public in accordance with the posted at www.aris.kg (BOUIP environmental reports page) on a Kyrgyz design and construction standards and World Bank’s OP+1 Disclosure of quarterly basis as part of the public awareness raising effort. Information.
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8. EMP evaluation included regular environmental impact Monitoring data was used to prepare Site Visit Reports. When any violations of EMP monitoring and impact prevention/minimization activities. were identified during site visits, environmental non-compliance reports were Monitoring was carried out in accordance with the visiting prepared (with defects liability periods specified) and sent to contractors so that they schedule: could take corrective actions. The corrective performance was then checked through 1. Bash-Karasuu water intake and transmission mains either follow-up site visits or contractor’s photo reports detailing the corrective work 2. Naryn water supply system rehabilitation performed. 3. Talas water supply system rehabilitation 4. Batken water supply system rehabilitation As a result of this, no significant environmental violations were identified at BOUIP 5. Isfana water supply system reconstruction sites during the reporting period. 6. Water supply drilling in Shopokov settlement 7. Tash-Kumyr water supply system rehabilitation Quarterly environmental reports were prepared and submitted to the World Bank for review as part of the summary project report.
9. The work performed at construction sites after environmental Inzhenernaya Zaschita LLC (Tash-Kumyr, Isfana) and Shymkentmelioratsiya (Bash- monitoring included sanitary site clean-ups, timely disposal of Karasuu) were required to take corrective action to rectify the following health and construction and solid wastes to local landfills, covering of access safety violations: (i) no personal protective equipment, (ii) no warning signs, (iii) no ways with gravel to minimize dust generation, etc. warning tapes, and other construction-related safety violations.
10. During the whole implementation period, BOUIP staff worked The work consisted of environmental, health and safety corrective actions to follow closely with the World Bank’s Mission to promote up the Mission’s recommendations. construction/rehabilitation works.
Social safeguards
Activity Results 1. Development of Resettlement Action Plans (RAPs) All procedures described in World Bank’s OP 4.12 Involuntary Resettlement, including a census for the Bash-Karasuu subproject and water supply survey, public consultations, awareness raising efforts among project-affected persons (PAPs), rehabilitation subprojects (Naryn, Talas, Isfana, etc., were followed as required. The key results were as follows: Shopokov, Tash-Kumyr and Batken) and submission to a) Under the RAP for the Bash-Karasuu subproject, five farmers in Orok ayil aymak the World Bank for review and approval. received a total compensation of KGS 240,000 and additional benefits from returning non-used parts of their land into agricultural use;
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b) A Naryn resident received a compensation of KGS 25,000 for the loss of a partially constructed house and a land plot for new construction from the Mayor’s Office; c) An Isfana farmer received a compensation of KGS 28,820 and a land plot; d) Two Tash-Kumyr residents were paid a compensation of KGS 6,000 (each) for removed trees.
2. Social screening to assess potential social impacts World Bank’s OP 4.12 Involuntary Resettlement was not applicable. Water supply and sanitation from the installation of water supply and sanitation pipelines did not go through any private land, so no physical/economic resettlement of pipelines for the Kaindy kindergarten in Bishkek households or commercial entities was needed. novostroika.
3. Social screening to assess potential social impacts The screening showed that World Bank’s OP 4.12 Involuntary Resettlement was not applicable to from the installation of additional water pipelines from the installation of the two additional water mains. This construction did not have any social or the switching chamber to Verhniy Orok and from the economic impacts on the local community, so no resettlement was needed. In addition, the local existing Bishkekvodokanal’s (BVK) water main to community demonstrated high commitment to the project, because it brought water supply Archa-Beshik improvements.
4. RAP monitoring, PAP grievance redress. Only one The disturbed irrigation ditch was reconstructed. The complaint was satisfied at the first instance complaint was received during the project level. implementation period. The complaint concerned the disturbance of the agricultural irrigation ditch system during water mains construction for Bash-Karasuu by Minur LLC.
5. Social screening of all Component B-2 subprojects to The World Bank’s OP 4.12 Involuntary Resettlement was not applicable, because screening assess potential social impacts and the need for RAP identified no negative impacts on the social sector. development. Preparation of social screening reports and submission to the World Bank for review and approval.
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Health and safety
Activity 1. Trainings in World Bank’s OP 4.12 Involuntary Resettlement and OP 4.01 Environmental Assessment for ARIS staff. 2. Development and presentation of the Construction Health and Safety Guidelines for ARIS’ contractors. 3. Trainings in water disinfection for water chlorination staff of Bishkek and Osh vodokanals and vodokanals of small towns in Kyrgyzstan. The objective was to teach effective water chlorination methods and techniques that kill pathogenic microorganisms, create barriers for infection agents that may get into water distribution networks, suppress secondary growth of bacteria in water pipelines, and prevent microbial contamination of the environment at wastewater discharge locations. 4. Presentations and all types of induction trainings in health and safety for engineers and technical staff of ARIS.
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Overall assessment and lessons learnt 13. It stands to mention that BOUIP is one the projects where an effective dialogue with local self-government bodies was set up, where priorities on addressing water supply issues were amicably discussed and selected subprojects were implemented.
Component A1 When designing the main, the Architecture Service of Sokuluk Raion allocated a route running through a private property. An issue occurred during construction, as land owners didn’t allow to excavation and installation of the water main. o Decision: a decision was made to channel the route to municipal land. o Lesson learnt: when selecting a route for water mains, there is a need to make sure that the route will go through municipal land, avoiding private farms.
The Project on Bashkarasuu water intake was completed and passes the state technical expertise. When calculating the hydraulics of the pipeline system, international consultants found a mistake. o Decision: a decision was made to recalculate hydraulics through hydraulic modeling and change the mark point of dump reservoirs. o Lesson learnt: it is needed to specify in ToR that design firms should calculate hydraulics of pipelines, considering hydraulic modeling.
The Project didn’t envisage sine-wave filters; but the contractor considered those in proposal and proved the necessity in installation of the filters to ensure safety of operation of well pumps. o Decision: a building was constructed for installation of sine-wave filters to ensure safety of operation of well pumps. o Lesson learnt: when designing the project for supply and installation of pumping equipment, design firms should focus on safety of pumping equipment.
Component B
One of the issues in implementing subprojects under component «В» were faults in detailed design documents (DDEs), as they were developed by local design firms upon the order by LSGBs, MTA, TC etc. some required works were not envisaged in either DDEs or BOQs, or vice versa, they included extra and unneeded works. Therefore, when implementing the contracts, there was a need to introduce changes and amendments to contracts, certain scope of works and extend the timeline. o Lesson learnt: there is a need to focus on the quality and adequacy of DDEs, review DDEs for compliance with design norms and standards. Manual for DDE review should be also developed for communities.
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Low capacity and commitment among contractors, non-fulfillment of contractual obligations resulted in delays in the timeline of subproject implementation and poor quality of civil works. o Lesson learnt: there is a need to strengthen qualification requirements to contractors, include fee sanctions in contracts, and ensure proper technical supervision. Under a few contracts, deficiency liability period ends after expiration of the date of project closure and grace period. However, as the contract didn’t envisage bank guarantee for a deficiency liability period, many contractors refused to provide bank guarantees due to which there were difficulties in payment of residuals of guarantee amounts. o Lesson learnt: there is a need to include a form of bank guarantee for the amount of deficiency liability period. Challenges encountered and ways of dealing with them 14. There were not complicated problems during preparation and implementation of the project. All challenges regarding preparation and implementation of subprojects by ARIS and LSG were resolved at working order. The government timely signed Project Financing Agreements.
15. We can say now with confidence that BOUIP has achieved its key objectives. The rehabilitation of water supply systems helped improve water safety in selected cities and towns and provide access to clean drinking water for the majority of urban population. Communities in novostroiki, where safe potable water was unavailable before, now enjoy easy access to this primary source of life. Prior to the project, the remoteness of novostroiki and low quality of access roads adversely affected the daily lives of local communities. With the construction of paved roads, many of their problems, such as the access to emergency services, have been solved. Before, when anyone needed an ambulance, they had to wait for it for a long time or sometimes did not receive help at all due to poor roads, but now this problem is no longer relevant. In addition, street and house signs were manufactured and installed, which made it much easier for the emergency services to find households in need.
16. Novostroika communities now have access to social infrastructure, such as schools, preschools, healthcare facilities (polyclinics, first aid stations (FAS), gyms, sports grounds, football fields, public parks and gardens, irrigation systems.
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Annex 8. List of Supporting Documents
Joint Country Support Strategy, FY2007-2010
Interim Strategy Note, FY2012-2013
Country Partnership Strategy, FY2014-2017
The National Sustainable Development Strategy (NSDS) for the Kyrgyz Republic 2013-2017
Project Appraisal Document for a Bishkek and Osh Urban Infrastructure Project
Project Paper for Additional Financing
Financing Agreement, Bishkek and Osh Urban Infrastructure Project
Kyrgyz Government’s ICR
Urban Novostroiki Settlements in Bishkek ESW (2007)
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SEPTEMBER 2004