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Asian Development Bank Pcr:Png 23132 ASIAN DEVELOPMENT BANK PCR:PNG 23132 PROJECT COMPLETION REPORT ON THE THIRD URBAN WATER SUPPLY (ADB Loan 1211-PNG) (ICDF/CTB Loan 8144-PNG) TA 1803-PNG: INSTITUTIONAL STRENGTHENING OF THE WATERBOARD IN PAPUA NEW GUINEA December 2003 CURRENCY EQUIVALENTS Currency Unit – kina (K) At Appraisal At Project Completion (October 1996) (October 2003) K1.00 = $1.03 $0.30 $1.00 = K0.97 K3.00 ABBREVIATIONS ADB – Asian Development Bank AIDAB – Australian International Development Assistance Bureau BME – benefit monitoring and evaluation CTB – Chiao Tung Bank DSCR – Debt service coverage ratio EIRR – economic internal rate of return FIRR – financial internal rate of return ICDF – International Cooperation and Development Fund IDC – interest during construction O&M – operation and maintenance PMO – project management office PNG – Papua New Guinea TA – technical assistance WTP – water treatment plant WEIGHTS AND MEASURES m3 – cubic meter m3/day – cubic meters per day kl – kiloliters km – kilometer ha – hectare mg/l – milligrams per liter ml/day – megaliters per day NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2000 ends on 31 December 2000. (ii) In this report, "$" refers to US dollars. CONTENTS Page BASIC DATA ii MAP ix I. PROJECT DESCRIPTION IX II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Related Technical Assistance 6 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants, Contractors, and Suppliers 7 K. Performance of the Borrower and the Executing Agency 7 L. Performance of ADB 7 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Efficacy in Achievement of Purpose 8 C. Efficiency in Achievement of Outputs and Purpose 10 D. Preliminary Assessment of Sustainability 11 E. Environmental, Sociocultural, and Other Impacts 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons Learned 14 C. Recommendations 14 APPENDIXES 1. Purpose, Targets, and Actual Achievements 16 2. Disbursements and Detailed Reallocations 19 3. Chronology of Events 20 4. Project Implementation Schedule 22 5. Status of Compliance with Project and Loan Covenants 24 6. Water Quality Analysis 33 7. Monitoring and Evaluation of Projected Benefits 38 8. Financial and Economic Evaluation 45 9. Cost Recovery Analysis 52 10. Project Performance Rating Assessment 60 SUPPLEMENTARY APPENDIX (available upon request) A. Detailed Water Quality Analysis ii BASIC DATA A. Loan Identification 1. Country Papua New Guinea 2. ADB Loan Number 1211-PNG 3. ICDF/CTB Loan Number 8144-PNG 4. TA Number 1803-PNG 5. Project Title Third Urban Water Supply 6. TA Title Institutional Strengthening of the Waterboard 7. Borrower Independent State of Papua New Guinea 8. Executing Agency PNG Waterboard 9. Amount of Loan $11.3 million 10. Amount of Co-financed Loan $6.7 million 11. Co-Financier International Cooperation and Development Fund (Taipei,China) 12. Project Completion Report PCR: PNG 754 Number B. Loan Data 1. Appraisal ADB ICDF/CTB – Date Started 8 Sep 1992 8 Sep 1992 – Date Completed 11 Sep 1992 11 Sep 1992 2. Loan Negotiations – Date Started 9 Nov 1992 10 Dec 1992 – Date Completed 13 Nov 1992 11 Dec 1992 3. Date of Board Approval 15 Dec 1992 14 Dec 1991 4. Date of Loan Agreement 25 Jun 1993 16 Aug 1994 5. Date of Loan Effectiveness – In Loan Agreement 25 Sep 1993 16 Aug 1994 – Actual 7 Dec 1994 16 Aug 1994 – Number of Extensions 5 0 ADB ICDF/CTB TA 1803 6. Closing Date – In Loan Agreement 30 Nov 1996 30 Aug 98 30 Nov 96 – Actual 9 Aug 2002 31 Dec 01 1 May 97 – Number of Extensions 4 2 1 7. Terms to the Borrower ADB ICDF/CTB – Commitment Charge $1,416,091 $207,373 – Maturity (number of years) 25 years 25 years – Grace Period (number of years) 4 years 4 years iii 9. Disbursements a. Dates ADB ICDF/CTB Initial Disbursements 15 May 1995 25 Apr 1996 Final Disbursements 9 Aug 2002 29 Oct 2001 Time Interval 6.2 years 5.6 years Effective Date 7 Dec 1994 16 Aug 1994 Original Closing Date 30 Nov 1996 30 Aug 1998 Time Interval 23.8 months 47.5 months ADB = Asian Development Bank, CTB = Chiao Tung Bank, ICDF = International Cooperation and Development Fund (Taipei,China), TA = technical assistance. Source: ADB, GoPNG and CTB b. ADB Loan Amount ($) First Revised Last Category Original Allocation Revised Amount Undisbursed Number Allocation Jul-95 Allocation Disbursed Amount 01A 340,000 51,000 768,037 768,037 0 01B 4,600,000 289,000 6,464,328 6,412,138 0 02A 3,330,000 690,000 1,364,967 1,364,967 0 02B 770,000 3,910,000 525,080 632,971 0 03A - 499,500 00 0 03B - 2,830,500 0 0 0 03C 1,430,000 115,500 0 0 0 03D - 654,500 0 0 0 04A 830,000 214,500 569,832 779,352 0 04B - 1,215,500 872,756 636,739 0 05 - 830,000 0 0 0 06 - - 35,000 4,195 0 07 - - 700,000 701,601 0 Total 11,300,000 11,300,000 11,300,000 11,300,000 0 Source: ADB, CTB, and GoPNG iv c. ICDF/CTB Loan Amount First Revised Last Revised Original Allocation Allocation Amount Undisbursed Cat. No. Allocation Jul-95 Dec-99 Disbursed Amount 01 500,000 575,000 4,093,000 4,706,194 0 02 1,030,000 1,385,000 0 0 0 03A 2,340,000 2,340,000 0 0 0 03B 180,000 180,000 0 0 0 04 1,380,000 1,380,000 1,767,000 1,786,433 0 05 840,000 840,000 840,000 207,373 0 06 430,000 0 0 0 0 Total 6,700,000 6,700,000 6,700,000 6,700,000 0 CTB = Chiao Tung Bank , ICDF = International Cooperation and Development Fund. Source: ADB, CTB, GoPNG d. TA Amount ($) Undisbursed Category Allocation Commitment Uncommitted Disbursed Amount Consultants 316,700 283,048 33,651 283,050 33,650 Equipment 43,300 21,703 21,597 21,703 21,597 Training 0 14,760 (14,760) 14,760 (14,760) Contingency 40,000 0 40,000 0 40,000 Total 400,000 319,510 80,488 319,512 80,488 Source: ADB, GoPNG and CTB 10. Local Costs (Financed) ADB Loan ICDF/CTB Loan Amount ($ million) 4.272 1.787 Percent of Local Costs 59% 27% Percent of Total Cost 19% 8% ADB = Asian Development Bank, CTB = Chiao Tung Bank, ICDF = International Cooperation and Development Fund. C. Project Data 1. Project Cost ($ million) Appraisal Estimate Actual ADB ICDF/CTB Government ADB ICDF/CTB Government a. Foreign Exchange Cost 7.20 4.10 0.00 7.03 4.91 0.00 b. Local Currency Cost 4.10 2.60 3.10 4.27 1.79 5.95 Total Cost 11.30 6.70 3.10 11.30 6.70 5.95 ADB = Asian Development Bank, CTB = Chiao Tung Bank , ICDF = International Cooperation and Development Source: ADB, GoPNG and CTB v 2. Financing Plan ($ million) Appraisal ($ million) Actual ($ million) Cost Foreign Local Total Foreign Local Total Implementation Costs Borrower-Financed 0.00 3.10 3.10 0 5,954,212 5,954,212 ADB-Financed 10.47 0.00 10.47 5,611,909 4,272,000 9,883,909 ICDF/CTB Financed 0.00 5.86 5.86 4,706,194 1,786,433 6,492,627 Total A 10.47 8.96 19.43 10,318,103 12,012,645 22,330,748 IDC Costs Borrower-Financed 0.00 0.00 0.00 0 0 0 ADB-Financed 0.83 0.00 0.83 1,416,091 0 1,416,091 ICDF/CTB Financed 0.00 0.84 0.84 207,373 0 207,373 Total B 0.83 0.84 1.67 1,623,464 0 1,623,464 Total A and B 11.30 9.80 21.10 11,941,567 12,012,645 23,954,212 Source: ADB, GoPNG and CTB 3. Cost Breakdown by Project Component Appraisal ($ million) Actual ($ million) Component Foreign Local Total Foreign Local Total Civil Works 0.800 4.600 5.400 7,858,561 8,242,142 16,100,703 Equipment 5.600 0.800 6.400 1,753,746 244,193 1,997,939 Consulting Services 1.400 1.000 2.400 705,796 1,786,433 2,492,229 Contingencies 1.200 1.400 2.600 0 0 0 PMO 0.000 0.000 0.000 0 1,739,877 1,739,877 Taxes and Duties 0.000 2.000 2.000 0 0 0 IDC 2.300 0.000 2.300 1,623,464 0 1,623,464 Total 11.300 9.800 21.100 11,941,567 12,012,645 23,954,212 IDC = interest during construction, PMO = project management office. Source: ADB, GoPNG and CTB 4. Project Schedule Description Appraisal Estimate Actual Consultants Date of Contract November 1992 December 1993 Commence Services November 1992 September 1994 Completion of Services November 1996 July 2002 Completion of Engineering Designs Madang Water Supply June 1993 July 1996 Rabaul Water Supply June 1993 October 1996 vi Kokopo Water Supply December 1998 Date of Award of Civil Works Contracts Madang Water Supply June 1993 September 1997 Rabaul Water Supply December 1993 January 2000 Kokopo Water Supply September 1999 Completion of Civil Works Contracts Madang Water Supply May 1996 January 2000 Rabaul Water Supply May 1996 September 2001 Kokopo Water Supply June 2002 Test Runs and Commissioning Madang Water Supply May 1996 February 2000 Rabaul Water Supply May 1996 November 2001 Kokopo Water Supply October 2001 Commercial Operations Madang Water Supply June 1996 February 2000 Rabaul Water Supply June 1996 November 2001 Kokopo Water Supply November 2001 5.
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