Annex 3. Economic and Financial Analysis
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Document of The World Bank Public Disclosure Authorized Report No: ICR00001637 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-46550 IDA-36200 TF-54224) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$20.0 MILLION AND A CREDIT IN THE AMOUNT OF SDR 15.9 MILLION (US$23.88 MILLION EQUIVALENT) TO THE REPUBLIC OF UZBEKISTAN FOR A BUKHARA AND SAMARKAND WATER SUPPLY PROJECT Public Disclosure Authorized December 17, 2010 Sustainable Development Department Public Disclosure Authorized Europe and Central Asia Country Department Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective August 23, 2010) Currency Unit = Uzbekistan Sum (UZS) 1.00 UZS = US$0.000615385 US$1.00 = 1625.00 UZS FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AM Aide-memoire BSSP Bukhara and Samarkand Sewerage Project BSWSP Bukhara and Samarkand Water Supply Project BVK Bukhara Water and Wastewater Utility/Bukhara City VodoKanal BYDR Base Year Data Report CAS Country Assistance Strategy CIS Commonwealth of Independent States EMP Environmental Management Plan FM Financial Management GoU Government of Uzbekistan HOA Housing Owners Association IBRD International Bank for Reconstruction and Development ICR Implementation Completion Report IDA International Development Association IDC International Development Consultancy IF Investment Fund IPR Independent Procurement Review ISR Implementation Status and Results Report JSDF Japan Social Development Fund KPI Key Performance Indicator LICUS Low Income Country Under Stress M&E Monitoring and Evaluation MMS Ministry of Macroeconomics and Statistics MoF Ministry of Finance MOFERT Ministry of Foreign Economic Relations and Trade MTR Mid-term Review O&M Operations and maintenance PAD Project Appraisal Document PCU Project Coordination Unit PDO Project Development Objective PIU Project Implementation Unit PO Private Operator PSP Private Sector Participation QAG Quality Assurance Group QEA Quality at Entry Assessment QPR Quarterly Progress Report QSA Quality of Supervision Assessment SA Special Account SC Service Contract SVK Samarkand Water and Wastewater Utility/ Samarkand City VodoKanal TA Technical Assistance TTL Task Team Leader UzK UzKommunkhizmat UZS Uzbekistan Soum VK VodoKanal WB World Bank WTP Water Treatment Plant Vice President: Philippe H. Le Houerou Country Director: Motoo Konishi Sector Manager: Wael Zakout Project Team Leader: Pier Francesco Mantovani ICR Team Leader: Pier Francesco Mantovani ICR Main Author: Roohi Abdullah REPUBLIC OF UZBEKISTAN Bukhara and Samarkand Water Supply Project CONTENTS Data Sheet A. Basic Information ........................................................................................................................ i B. Key Dates .................................................................................................................................... i C. Ratings Summary ........................................................................................................................ i D. Sector and Theme Codes............................................................................................................ ii E. Bank Staff ................................................................................................................................... ii F. Results Framework Analysis ...................................................................................................... ii G. Ratings of Project Performance in ISRs .................................................................................. vii H. Restructuring (if any) ............................................................................................................... vii I. Disbursement Profile ................................................................................................................ vii 1. Project Context, Development Objectives, and Design .............................................................. 1 2. Key Factors Affecting Implementation and Outcomes .............................................................. 4 3. Assessment of Outcomes .......................................................................................................... 12 4. Assessment of Risk to Development Outcome ......................................................................... 16 5. Assessment of Bank and Borrower Performance ..................................................................... 17 6. Lessons Learned........................................................................................................................ 19 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ........................... 20 Annex 1. Project Costs and Financing .......................................................................................... 21 Annex 2. Outputs by Component.................................................................................................. 22 Annex 3. Economic and Financial Analysis ................................................................................. 31 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............................. 39 Annex 5. Beneficiary Survey Results ........................................................................................... 41 Annex 6. Stakeholder Workshop Report and Results ................................................................... 46 Annex 7. Summary of Borrower’s ICR and/or Comments on Draft ICR .................................... 47 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................................... 63 Annex 9. Key Performance Indicator ........................................................................................... 64 Annex 10. Project Background ..................................................................................................... 66 Annex 11. Mission and TTL Trajectory ....................................................................................... 70 Annex 12. List of Supporting Documents .................................................................................... 75 MAP .............................................................................................................................................. 77 A. Basic Information Bukhara & Samarkand Country: Uzbekistan Project Name: Water Supply Project IBRD-46550,IDA- Project ID: P049621 L/C/TF Number(s): 36200,TF-54224 ICR Date: 12/17/2010 ICR Type: Core ICR REPUBLIC OF Lending Instrument: SIL Borrower: UZBEKISTAN Original Total USD 40.0M Disbursed Amount: USD 43.3M Commitment: Revised Amount: USD 39.8M Environmental Category: B Implementing Agencies: BSWSP PCU, Uzkommunkhizmat Bukhara Water Utility Samarkand Municipal Water Utility Cofinanciers and Other External Partners: Government of Switzerland (Except for FOFEA) B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 09/02/1999 Effectiveness: 01/17/2003 01/17/2003 Appraisal: 02/26/2001 Restructuring(s): Approval: 03/19/2002 Mid-term Review: 10/09/2006 10/20/2006 Closing: 06/30/2007 06/30/2010 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Unsatisfactory Borrower Performance: Moderately Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Moderately Quality at Entry: Government: Unsatisfactory Unsatisfactory Quality of Supervision: Moderately Implementing Moderately i Unsatisfactory Agency/Agencies: Unsatisfactory Overall Bank Moderately Overall Borrower Moderately Performance: Unsatisfactory Performance: Unsatisfactory C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry Yes None at any time (Yes/No): (QEA): Problem Project at any time Quality of Supervision Yes Moderately Satisfactory (Yes/No): (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Water supply 100 100 Theme Code (as % of total Bank financing) Access to urban services and housing 67 67 Other financial and private sector development 33 33 E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Johannes F. Linn Country Director: Motoo Konishi Dennis N. de Tray Sector Manager: Wael Zakout Hossein Razavi Project Team Leader: Pier Francesco Mantovani Ede Jorge Ijjasz-Vasquez ICR Team Leader: Pier Francesco Mantovani ICR Primary Author: Roohi Abdullah F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The Development Objective of the project is to improve the safety, quality, reliability, efficiency, financial viability and sustainability of the water supply services in Bukhara and Samarkand. The Development Objective would be achieved through: (a) strategic rehabilitation and efficiency improvement of existing facilities in critical condition; (b) institutional strengthening of the Bukhara and Samarkand Water Utilities (Bukhara City Vodokanal - BVK and Samarkand ii City Vodokanal - SVK) through a performance-based management contract (SC) with an internationally experienced water utility operator (the Operator); and (c) strengthening of BVK's and SVK's financial capacity through improved financial management and commercial