The World Bank Report No: ISR5519

Implementation Status & Results Water & Wastewater Project (P087641)

Operation Name: Yerevan Water & Wastewater Project (P087641) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 29-Jun-2011 Country: Armenia Approval FY: 2005

Public Disclosure Authorized Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Municipal Development Project Monitoring Unit Key Dates Board Approval Date 24-Feb-2005 Original Closing Date 28-Feb-2011 Planned Mid Term Review Date Last Archived ISR Date 29-Jun-2011 Public Disclosure Copy Effectiveness Date 15-Sep-2005 Revised Closing Date 31-Dec-2011 Actual Mid Term Review Date 22-May-2010

Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to provide Yerevan with safe,continuous water supply while reducing environmental pollution.

Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost YWWP Fund 18.75 Technical Assistance and Training 3.25

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating

Public Disclosure Authorized Implementation Status Overview 1. The Project implementation is overall satisfactory. Disbursements as of December 9, 2011 amounted to US$19.63 million or 97% of the US$20 million IDA Credit. Disbursements have been on track since the last supervision mission. The remaining funds are fully committed to be disbursed before the Project closes on December 31, 2011.

2. The main performance indicators reveal continued progress towards meeting the Project objectives. Most of the key performance indicators have reached or exceeded the end-of

Public Disclosure Copy project target.

- Average duration of water supply increased from 19.6 hours/day at baseline stage to 21.3 hours/day (end-of-project target is 21 hours).

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- Percentage of water samples in compliance with bacteriological safety requirements increased from 93% at baseline to 99% now (end-of-project target is 98%). - Number of sites in Yerevan municipality with wastewater discharged into water courses upstream of existing treatment works decreased from 17 sites at baseline to 7 sites (end-of- project target is 8). - Water production decreased from 885 liter per capita/day to 853 (end-of-project target is 840 l/c/d). - Electricity consumption decreased from 119 MwH per annum at baseline to 73 MwH now (end-of-project target is 94 MwH).

The progress indicates that the Project Development Objectives will be met by the closing date.

3. The private sector operator, Veolia, has made a good progress during the 5th year of lease contract. The independent technical auditor (audit report issued in September 2011) concluded that for the third consecutive year the services provided by the Lessee under the Lease Contract to Yerevan population have improved. This is substantiated by the reduction of production/abstraction of water, reduction of energy consumption, and reduction of losses, which is a very positive development of Year 5. The fact that Yerevan Djur has been able to achieve these reductions provides good prospects for further improvements in the coming years. Particularly,

Public Disclosure Copy - For the second consecutive year, the Lessee has managed to reduce the abstraction of water from sources this year by about 6%, which equals approximately 20 million cubic meters. - In year 5, Yerevan Djur reduced leakages from the distribution system by 22 million cubic meters, which is required to sustain the hours of supply when water production is reduced. - Another positive trend is that billing on the basis of meters has increased both for domestic and non-domestic subscribers. - The targets for water supply duration, bacteriological safety compliance, as well as customer complaint response time are fulfilled.

4. The Project Monitoring Unit and the Bank team closely monitor the implementation plan of all ongoing and remaining activities to ensure timely completion before the Project's closing date of December 31, 2011.

Locations Country First Administrative Division Location Planned Actual Armenia Not Entered

Armenia K'aghak' Yerevan Yerevan

Armenia 'i Marz

Armenia K'aghak' Yerevan Mushavan

Armenia K'aghak' Yerevan Verin Shengavit'

Armenia K'aghak' Yerevan Sarit'agh

Armenia Kotayk'i Marz

Armenia K'aghak' Yerevan K'anak'erravan

Armenia K'aghak' Yerevan K'anak'err

Armenia Kotayk'i Marz '

Public Disclosure Copy Armenia Kotayk'i Marz Garrni

Armenia Kotayk'i Marz

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Country First Administrative Division Location Planned Actual Armenia K'aghak' Yerevan

Armenia K'aghak' Yerevan Jrashen

Armenia Kotayk'i Marz Davtashen

Armenia Kotayk'i Marz

Armenia Kotayk'i Marz

Armenia Kotayk'i Marz Aramus

Public Disclosure Copy Armenia K'aghak' Yerevan Nor Arabkir

Armenia K'aghak' Yerevan Erebuni

Armenia K'aghak' Yerevan Nor Nork'

Armenia K'aghak' Yerevan Nor Zeyt'un

Armenia K'aghak' Yerevan Nerkin Shengavit'

Armenia K'aghak' Yerevan Nor Marash

Armenia K'aghak' Yerevan Avan-Arrinj

Armenia K'aghak' Yerevan Noragyugh

Armenia K'aghak' Yerevan Aj'ap'nyak

Armenia K'aghak' Yerevan Lukashin

Armenia Not Entered Kentron

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased weighted average of daily hours of Text Value 19.6 21.3 21 drinking water service Date 01-Jun-2006 30-Nov-2011 31-Dec-2011 Comments Exceeded end-of-project target Public Disclosure Copy

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Increased percentage of water samples in Text Value 93.05 99.5 98 compliance with bacteriological safety requirements Date 01-Mar-2006 30-Nov-2011 31-Dec-2011 Comments Exceeded end-of-project target Decreased number of sites in Yerevan Text Value 17 7 8 Municipality with wastewater discharged into water courses upstream of existing treatment Date 01-Jun-2006 30-Nov-2011 31-Dec-2011 works. Comments Exceeded end-of-project target

Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Decreased unaccounted for water (percentage Text Value 86.3 82.6 82 of water losses) Date 01-Jun-2006 30-Nov-2011 31-Dec-2011 Comments

Decreased water production through pumping Text Value 45/55 18/82 35/65 and gravity supply (ratio) Date 01-Jun-2006 30-Nov-2011 31-Dec-2011 Comments Exceeded end-of-project target Decreased electricity consumption (increased Megawatt hour(MWhValue 119.00 50.00 94.00 energy efficiency) Date 01-Jun-2006 30-Nov-2011 31-Dec-2011 Comments Exceeded end-of-project target (the value will be revised as of December 1, 2011) New piped household water connections that Number Value 0.00 24840.00 24840.00 are resulting from the project intervention Date 01-Jun-2006 09-Dec-2011 31-Dec-2011 Comments Target achieved Piped household water connections that are Number Value 0.00 29360.00 29360.00 benefiting from rehabilitation works undertaken by the project Date 01-Jun-2006 09-Dec-2011 31-Dec-2011 Comments Target achieved Number of water utilities that the project is Number Value 0.00 1.00 1.00

Public Disclosure Copy supporting Date 01-Jun-2006 09-Dec-2011 31-Dec-2011

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Indicator Name Core Unit of Measure Baseline Current End Target Comments

Number of people in urban areas provided with Number Value 0.00 298000.00 298000.00 access to Improved Water Sources under the project Date 01-Jun-2006 09-Dec-2011 31-Dec-2011 Comments Target achieved Increased domestic water metering (as a Percentage Value 89.60 96.80 96.00 percentage of domestic subscribers provided with water meters) Date 01-Jun-2006 30-Nov-2010 28-Feb-2011 Comments Exceeded end-of-project target Public Disclosure Copy Decreased water production (liter per capita Text Value 885 755 840 per day) Date 01-Mar-2006 30-Nov-2011 Comments Target on track to be achieved (target value will be recalculated as of Dec. 1, 2011) Increased domestic water consumption (liter Text Value 151 159 140 per capita per day) Date 30-Jun-2006 30-Nov-2011 Comments Exceeded end-of-project target

Data on Financial Performance (as of 08-Dec-2011)

Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P087641 IDA-40380 Effective 24-Feb-2005 15-Apr-2005 15-Sep-2005 31-Dec-2011

Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P087641 IDA-40380 Effective XDR 13.00 13.00 0.00 12.77 0.23 98.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation The Project implementation is satisfactory. All activities under the Project are expected to be completed by the Project closing date of December 31, 2011.

Restructuring History Level one Approved on 25-Dec-2010

Related Projects There are no related projects. Public Disclosure Copy

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