@The World Bank Report No: ISR5845

Implementation Status & Results WATER AND SANITATION SERVICE IMPROVEMENT PROJECT (P096367)

0o C Operation Name: WATER AND SANITATION SERVICE IMPROVEMENT Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 05-Jul-2011 PROJECT (PO96367)

Public Disclosure Authorized Country: Kenya Approval FY: 2008 0 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan 0 Implementing Agency(ies): Athi Water Services Board, Coast Water Services Board, Lake Victoria North Water Services Board -0 Key Dates Board Approval Date 20-Dec-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 31-Dec-2010 Last Archived ISR Date 05-Jul-2011 Effectiveness Date 02-Sep-2008 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 14-Feb-201 1

Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objectives of the project are to: (a) increase access to reliable, affordable and sustainable water supply and sanitation services; and (b) to improve the water and wastewater services in the areas served by AWSB, LVNWSB and CWSB. This will be achieved by (i) rehabilitating selected existing water production, transmission, storage and distribution facilities and wastewater collection, treatment and disposal facilities, (ii) expanding piped water supply services to under-served areas through the extension of primary and secondary distribution pipes where required (this would include service expansion into urban slums / informal settlements

Public Disclosure Authorized through a balanced program including the involvement of communities in decision making), and (iii) refining and strengthening the institutional structure, emphasizing on increasing accountability and transparency of the institutional and governance and management framework. Has the Project Development Objective been changed since Board Approval of the Project? O Yes o No

Component(s) Component Name Component Cost 1. Support to the Athi Water Services Board (AWSB) 66.83 2. Support to the Coast Water Services Board (CWSB) 44.04 0 3. Support to the Lake Victoria North Water Services Board (LVNWSB)

'5 Overall Ratings Public Disclosure Authorized 0 Previous Rating Current Rating -50 " Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory 3 Overall Risk Rating

Implementation Status Overview

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PROJECT STATUS: An Implementation Support Mission was carried out on November 8-16, 2011. The project is making progress towards achieving the PDO, and the implementation progress is satisfactory. As most of the constructions are ongoing, their impact will only be realized once the investments are commissioned. It is expected that the end-project outcome targets will be achieved by project completion in December 2012. o IMPLEMENTATION PROGRESS: The total cost of all contracts already awarded (and expenditures incurred under operating costs and training) is 142.64 million USD, which 0 represents 94 percent of the 151.9 million USD of IDA funds (based on current SDR to USD exchange rate) available for WaSSIP. This is a substantial improvement compared with the 37.8 percent of April 1, 2010. The total cost of all contracts either awarded or where the bidding process has commenced is now at 146.76 million USD which represents 97 o percent out of 151 million USD of IDA funds available for WaSSIP. The current disbursed amount is 107.72 million USD (72.96 percent of the total IDA amount).

Locations :6 Country First Administrative Division Location Planned Actual Q Kenya Teso

Kenya Nandi North

Kenya Western Province

Kenya Western Province Busia

Kenya Western Province Butere/

Kenya Western Province

Kenya Western Province Lugari

Kenya Rift Valley Province Mount Elgon

Kenya Western Province

Kenya

Kenya Coast Province

Kenya Coast Province

> Kenya Coast Province 0 Kenya Eastern

U) Kenya Eastern Makueni 0 -5- .U Kenya Rift Valley Province Marakwet 0 Kenya Coast Province Kenya Area Nairobi

Kenya Coast Province Taita Taveta

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Country First Administrative Division Location Planned Actual Kenya Coast Province Tana River

Kenya 0 Kenya Rift Valley Province Trans Nzoia cn Kenya Rift Valley Province Uasin Gishu 0 ..0 Kenya Rift Valley Province

Kenya North

Kenya Nairobi Area

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of people in urban areas provided with Number Value 27.00 50.00 50.00 access to Improved Water Sources under the Date 30-Jun-2007 31-Mar-2011 31-Dec-2012 project Comments AWSB 55% Derived from the number of CWSB 40% active connections within the LVNWSB 37% 6 WSPs x 6 (persons per household) added to number of standposts x 300 (users per standposts) divided by population resident within the 6 WSPs (5,930,000) i.e. weighted average of access levels in AWSB, CWSB and LVNWSB. Yr 2 status same as end of project target. Population growth has not been factored in. Percentage of population in WSP project Percentage Value 10.00 20.00 30.00 o operational areas with access to adequate Date 30-Jun-2007 31-Mar-2011 31-Dec-2012 o sewerage services or improved sanitation. Comments AWSB 26% Derived from the number of 0CWSIB 11 active connections within the LVNWSB 13 6 WSPs x 6 (persons per household) added to number of stand posts x 300 (users

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per stan posts) divided by population resident within the 6 WSPs (5,930,000) i.e. weighted average of access CL levels in AWSB, CWSB and 0 LVNWSB. Yr 2 status same as end of project target. Population growth has not rbeen factored in. Fo Percentage of people in the WSPs 1project 1E]Percentage Value 56.00 71.00 0.00 operational area rating the services provided Date 30-Jun-2007 31-Mar-2011 31p -Dec-2012 :6 by the WSPs as satisfactory or better. Based on 2009 baseline The high increase in rating wComments surveys by AWSB and (15%) is attributed to media LVNWSB campaign and easier means of bill payment through banks and M-Pesa in caseof AWSB and increased production after commissioning several KfW funded projects by LVNWSB. Degree of O&M cost coverage of WSPs and EiText Value Various (PAD) 100% (PAD) WSBs supported by WaSSIP project. Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Degree of 0 & M coverage covered under each WSB and WSP Water Service Providers that the project is E Number Value 21.00 21.00 21.00 supporting. Date 30-Jun-2008 31 -Mar-201 1 31 -Dec-201 2 Comments 21 water service providers are being supported by the project (AWSB 11, CWSB 7, LVNWSB 3) in addition to Water Appeals Board and Water Services Regulatory o Board.

Uc Intermediate Results Indicators 0 .U) Indicator Name Core Unit of Measure IBaseline ICurrent 1End Target 0 o0 Annual technical and financial audits E]Text Value N/A No fiduciary issues with (unqualified) for project supported WSPs W project funds Service Provision Agreement (SPAs) published Date 30-Jun-2007 31-Mar-2011 31-Dec-2012 on WSB website. 11,mCSBt7

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Publication of Impact Report by WASREB Text Value N/A Published Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments 0 Publication of tariff guideline by WASREB. Text Value N/A N/A one off Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Tariff guidelines published. - Surveys of participants and stakeholders on Text Value N/A Results published WAB claims and dispute cases. Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments TOR for survey is in progress. This has fallen behind since for a long time, WAB had no functional Board of Directors. Currently the Board is in place and is running. New piped household water connections that Number Value 0.00 36388.00 0.00 are resulting from the project intervention Date 30-Jun-2007 31-Mar-2011 31-Dec-2012 Comments Breakdown: Breakdown: Breakdown: AWSB - 0 AWSB - 36,388 AWSB - 0 CWSB - 0 CWSB - 0 CWSB - 0 LVNWSB - 0 LVNWSB - 0 LVNWSB - 0 Improved community water points constructed Number Value 0.00 600.00 0.00 or rehabilitated under the project Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Breakdown: Breakdown: Breakdown: AWSB - 0 AWSB - 600 AWSB - 0 CWSB - 0 CWSB - 0 CWSB - 0 LVNWSB - 0 LVNWSB - 0 LVNWSB - 0 Number of new sewer connections constructed Text Value 0 0 under the project. Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments The number bound to increase once the sewer contracts for AWSB (Dandora, Githaraini and Riruta) are commissioned. 0 5 Number of people with access to improved E Text Value See breakdown below See breakdown below sanitation under the project Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments

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i) Access to shared Improved Sanitation. Text Value ASB-0 AWSB - 0 Sub Type CIWSBO- LVWSCWSB - 0-0 Breakdown LVNWSB - 0 Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012

0 U Comments 1) AWSB Number includes 4,000 children benefiting from improved latrines built under 0 the project. Calculated from .U the number of ablution blocks o) constructed under the project, assuming 210 household per block and 6 persons per household. Facilities in informal settlements have not been completed. 2) CWSB is reporting 11,622 beneficiaries, but no sanitation facilities have yet been commissioned, so this is an error. Implementation of extended sanitation to informal settlements is at planning stage. 3) LVNWSB Investment in sanitation will be undertaken only in Mumias. Designs are on going. ii) Access to Improved Un-shared Sanitation. Text Value AWSB - 0 AWSB - 0 Sub Type CWSB - 0 CWSB - 0 Breakdown LVNWSB - 0 LVNWSB - 0 Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments The project is not investing in unshared facilities and hence the indicator value is unlikely to change. Number of improved latrines constructed under Text Value AWSB -P0 AWSB - U) th project. LVNWSB - 0 LVNWSB - 0 U)Date 30-Jun-2007 31 -Mar-201 1 31 -Dec-201 2 Comments 1) AWSB intends to construct 100 latrines (contained in 10 blocks). 4,000 school children are currently benefiting from the pit latrines.

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2) Investment in sanitation will be undertaken only in Mumias. Designs are on going.

SVolume (mass) of BOD pollution loads E Metric ton Value 14.00 14.00 0.00 removed by treatment plant outlets financed Date 30-Jun-2007 31-Mar-2011 31-Dec-2012 under the project (in tons/year).Co Comments This indicator only applies to Dandora WWTP which is targeted for rehabilitation. Rehabilitation expected to be complete by March 2011 . Number of people reached to improve hygiene Text Value AWSB - 0 AWSB - 0 behaviour or sanitation practices under the CWSB - 0 CWSB - 0 project. LVNWSB - 0 LVNWSB - 0 Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments These number includes the numbers reached through hygiene and sanitation campaign. Equitability of water supply in the project Text Value Nairobi - 0 Nairobi - 0 [Number and percentage of active customers Mombasa - 0 Mombasa - 0 receiving > 2 hours of water supply per day;90 Malindi - 0 Malindi - 0 % of the days] Kilifi - 0 Kilifi - 0 Kimilili - 0 Kimilili - 20% Mumias - 0 Mumias - 20% Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Not in PAD. Was introduced Baseline can only be during June 2009 mission. established after pressure monitors are installed. The pressure monitors are expected to be delivered in March201 1. Unreliable 0 figures will improve when pressure monitors installed. Propose to use newly C,, installed pressure monitors to 0 recordhours/quarter. Percentage of connections with functional Text Value Nairobi - 96.50 % Nairobi- -0 o meters. Mombasa - 53% Mombasa - 0 Malindi - 55% Malindi - 0 Kilifi - 78% Kilifi - 0

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Mumias - 72% Mumias - 0 Kimilili - 34% Kimilili - 0 Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments 1) New Indicator proposed 0 during Consultative meeting between WB, AWSB and Consultant. o) 2) Year 1 status taken as baseline for CWSB. o) 3) Year 1 status taken as baseline. 1,600 meters procured under WaSSIP and ready for installation. This will raise the percentage of connections with functional meters to 100%. People with access to adequate water supply Text Value Nairobi - 0 Nairobi - 0 in the informal settlement, under the project. Mombasa and Malindi - 0 Mombasa and Malindi - 0 Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Status to be established during the WSP Access study. Quantity of water [m3/year] supplied by Mzima Text Value 0 0 Springs pipeline to all WSPs and to Mombasa. Date 31-May-2007 31-Mar-2011 31-Dec-2012 Comments Only old data from 1955 to 1967 exist for the inflow at the source. There has been no flow measurements at the source since 1967, when the venturi meter developed problems. A new meter will be replaced by June 2011. The quantity of water supplied is estimated from the supplies to 0 various WSPs. Mombasa has new bulk water meters. Other WSPs have bulk meters that o) are not functioning. These will 0 .U) be replaced under WaSSI P under the pipeline maintenance. The 25% increase is due to revised flow estimates, not readings.

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Length of water piping rehabilitated/extended Kilometers Value 1686.00 375.90 1410.00 by project [km] Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Breakdown: Breakdown: Breakdown: C. AWSB-Okm AWSB - 374 km AWSB - 10 km 0 U CWSB - 1,306 km CWSB-Okm CWSB - 1,400 km LVNWSB - 380 km LVNWSB - 1.9 km LVNWSB - 0 km cn Length of sewerage lines rehabilitated/ Kilometers Value 52.20 7.00 51.00 0 " extended by project [km] Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 O) Comments Breakdown: Breakdown: Breakdown: AWSB-Okm AWSB-7km AWSB-Okm CWSB - 51 km CWSB-Okm CWSB - 51 km LVNWSB - 1.2 km LVNWSB - 0 km LVNWSB - 0 km Quantity of water delivered/billed in all WSBs Text Value Nairobi - 250,000 m3/day Nairobi - 435,000 m3/day [m3/day]. Kilifi, Malindi, Mombasa - Kilifi, Malindi, Mombasa - 63,000 m3/day 78,000 m3/day Kimilili and Mumias - 1600 Kimilili and Mumias - 2,400 m3/day m3/day Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments The volume of water billed The volume of water billed serves as a proxy. serves as a proxy. Number of household with water connections in Text Value Nairobi - 220,000 Nairobi - 240,000 all WSBs. Kilifi, Malindi, Mombasa - Kilifi, Malindi, Mombasa - 55,000 53,300 Kimilili and Mumias - 3,900 Kimilili and Mumias - 4,200 Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Number of standposts in informal settlements Text Value Nairobi - 2,100 Nairobi - 3,000 in all WSBs. Kilifi, Malindi, Mombasa - Kilifi, Malindi, Mombasa - 1,000 3,000 Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments 1) Nairobi: Current status of o no. of standposts in informal settlements is 8% lower than C,, the Yr 2 target. o 2) Coast: Annual trend from June 2009 to June 2010 shows a decrease in no. of standposts. This is the correction of innactive standpipe connections.

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Revenue collection efficiency. Text Value Nairobi - 65% Nairobi - 92% Mombasa - 95% Mombasa - 95% Malindi - 95% Malindi - 95% Kilifi - 80% Kilifi - 95%

0 Kimilili - 72% Kimilili - 95% Mumias - 50% Mumias - 95% Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments 1) The collection efficiency is more or less constant. ) Current status is below Yr 2 collection efficiency target by 17%. This has been attributed to low payment rate by the Government Institutions. 2) Mombasa and Malindi status close to year 2 and end of project targets. Kilifi status exceeds end of project target. Sharp increase (13%) in Sept 2009. 3) Kimilili on par with Yr 2 target. Mumias is on par with End of Project Target and is collecting arrears hence the efficiency above 100%. Text Value AWSB - 100% AWSB - 100% NWSC - 100% NWSC - 100% CWSB - 80% CWSB - 100% Mombasa - 80% Mombasa - 100% Malindi - 80% Malindi - 100% Kilifi - 80% Kilifi - 100% Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments o Percentage water loss in the system [UfW]. Text Value Nairobi - 46% Nairobi - 33% Mombasa - 40% Mombasa - 25% Malindi - 25% Malindi - 25% Kilifi - 50% Kilifi - 30% Kimilili - 60% Kimilili - 30% Mumias - 60% Mumias - 30% L) Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments

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Constancy of water supply. Text Value Nairobi - 10 hrs Nairobi - 12 hrs Mombasa - 6 hrs Mombasa - 12 hrs Malindi - 12 hrs Malindi - 24 hrs Kilifi - 6 hrs Kilifi - 12 hrs CLKimilili -5 hrs Kimilili - 12 hrs Mumias - 3 hrs Mumias - 12 hrs Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments ) Annual statutory audits for all WSBs Text Value N/A No fiduciary issues with demonstrating transparent and accountable project funds 2 financial management. Date 30-Jun-2007 31-Mar-2011 31 -Dec-2012 Comments Compliance with statutory audits well on track.

Data on Financial Performance (as of 27-Dec-2011)

Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P096367 IDA-43760 Effective 20-Dec-2007 04-Jun-2008 02-Sep-2008 31-Dec-2012

Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096367 IDA-43760 Effective XDR 96.60 96.60 0.00 70.48 26.12 73.00

Disbursement Graph

0

) 0 -5)

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- Original ---- Formally Revised -- Actual 100

CL 0 ) 75

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rq q rq q rq N rq q rq N

Key Decisions Regarding Implementation Based on the good implementation progress of the project and the need for additional investments in all three WSBs areas, the Bank's Team together with the three WSBs has prepared a proposal for Additional Financing for the project from IDA in the amount of 300 million USD. In addition, AFD is expected to provide Euro70 million as joint financing and IFC intends to provide 2 million USD in complimentary financing for a project in Malindi. The government will contribute 25 million USD as counterpart funds, bringing the total project cost to 427 million USD. The contribution by IDA includes 50 million USD (30 million USD from IDA and 20 million USD from the Crisis Response Window) to be used for drought mitigation activities. The proposal will be sent to the Bank's Board in May 2012.

Restructuring History There has been no restructuring to date.

Related Projects P126637-WATER AND SANITATION SERVICE IMPROVEMENT PROJECT - Additional Financing 0 C-)

0

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