Document of The World Bank FOR OFFICIAL USE ONLY
Public Disclosure Authorized
Report No: ICR00004613
IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD 80740)
ON A
Public Disclosure Authorized LOAN
IN THE AMOUNT OF US$107.3325MILLION
TO THE
FEDERATIVE REPUBLIC OF BRAZIL
FOR THE FEDERAL INTEGRATED WATER SECTOR PROJECT -- INTERAGUAS
Public Disclosure Authorized April 29, 2019
Water Global Practice Latin America and the Caribbean Region
Public Disclosure Authorized
CURRENCY EQUIVALENTS
(Exchange Rate Effective April 1, 2019)
Currency Unit = Brazilian Real (R$) R$1.00= US$0.259 US$1.00 = R$3.87
FISCAL YEAR January 1 – December 31
ABBREVIATIONS AND ACRONYMS
ANA National Water Agency - Agência Nacional de Águas BHSF São Francisco Hydrographic River Basin - Bacia Hidrográfica do São Francisco CBHSF São Francisco Hydrographic River Basin Committee - Comitê da Bacia Hidrográfica do São Francisco CCZEE Coordinating Commission for the Ecological-Economic Zoning - Comissão de Coordenação do Zoneamento Econômico Ecológico CGP Interministerial Management Committee - Comitê Gestor do Programa CNRH National Council on Water Resources - Conselho Nacional de Recursos Hídricos CPF Country Partnership Framework CPS Country Partnership Strategy EIA Environmental Impact Assessment FM Financial Management FY Fiscal Year GDP Gross domestic product GoB Government of Brazil GSAN Integrated Management System for Water Supply and Sanitation - Sistema Integrado de Gestão de Serviços de Saneamento IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report IEG Independent Evaluation Group IFC International Finance Corporation IFR Interim Financial Reports IICA Interamerican Institute for Cooperation on Agriculture - Instituto Interamericano de Cooperação para a Agricultura IMC Interministerial Management Committee - Comitê Gestor do Programa
INTERÁGUAS Federal Integrated Water Sector Project - Projeto Integrado Federal do Setor Água IO Intermediate Outcome ISR Implementation Status Report IWRM Integrated Water Resources Management LCR Latin America and Caribbean Region M&E Monitoring and Evaluation MAPA Ministry of Agriculture, Livestock, and Supply - Ministério da Agricultura, Pecuária e Abastecimento MCid Ministry of Cities - Ministério das Cidades MDR Ministry of Regional Development - Ministério do Desenvolvimento Regional MI Ministry of National Integration - Ministério da Integração Nacional MMA Ministry of Environment - Ministério do Meio Ambiente MME Ministry of Mines and Energy - Ministério de Minas e Energia MOP Project Operational Manual - Manual Operacional do Projeto MPOG Ministry of Planning, Budget and Management - Ministério do Planejamento, Orçamento e Gestão MS Ministry of Health - Ministério da Saúde MT Ministry of Transportation - Ministério dos Transportes MTR Mid-Term Review OAS Organization of American States - Organização dos Estados Americanos PAC Growth Acceleration Program - Programa de Aceleração do Crescimento PAD Project Appraisal Document PCT Technical Cooperation Project - Projeto de Cooperação Técnica PDO Project Development Objectives PISF São Francisco Integration Project - Projeto de Integração do São Francisco PLANERB Plan for Strategic Actions for the Rehabilitation of the Union Dams - Plano de Ações Estratégicas para Reabilitação de Barragens da União PMSS Water Sector Modernization Project - Projeto de Modernização do Setor Saneamento PMU Project Management Unit PNRH National Water Resources Plan - Plano Nacional de Recursos Hídricos PNSH National Water Security Plan - Plano Nacional de Segurança Hídrica POA Annual Operational Plan - Plano Operativo Anual PPA Multiyear Plan - Plano Plurianual PROAGUA Federal Water Resources Management Project – Additional Financing - Programa Nacional Nacional de Desenvolvimento dos Recursos Hídricos PROAGUA Federal Water Resources Management Project - Sub-programa de Semi-árido Desenvolvimento de Recursos Hídricos para o Semi-Árido Brasileiro PROSANEAR Low Income Sanitation Technical Assistance Project - Programa de Saneamento para Populações em Áreas de Baixa Renda PTS Project Technical Secretariat
SCD Strategic Country Diagnostic SDR Secretariat of Regional Development - Secretaria de Desenvolvimento Regional SEAIN Secretariat for International Affairs - Secretaria Especial de Assuntos Internacionais SEDEC National Secretariat of Civil Defense - Secretaria Nacional de Defesa Civil SIH Secretariat of HydraulicInfrastructure - Secretaria de Infra-estrutura Hídrica SINDEC National Civil Defense System - Sistema Nacional de Defesa Civil SINGREH National Water Resources Management System - Sistema Nacional de Gerenciamento de Recursos Hídricos SNIRH National Water Resources Information System - Sistema Nacional de Informações sobre Recursos Hídricos SINISA National Information System on Basic Sanitation - Sistema Nacional de Informações em Saneamento Básico SNSA National Secretariat of Environmental Sanitation - Secretaria Nacional de Saneamento Ambiental SRHQ Secretariat for Water Resources and Environmental Quality - Secretaria de Recursos Hídricos e Qualidade Ambiental STP Project Technical Secretariat - Secretaria Técnica do Projeto TA Technical Assistance TAL Technical Assistance Loan TTL Task Team Leader WBG World Bank Group WRM Water Resources Management WSS Water Supply and Sanitation ZEE Ecological-Economic Zoning - Zoneamento Econômico Ecológico
Regional Vice President: Axel van Trotsenburg Country Director Paloma Anos Casero Senior Global Practice Director: Jennifer J. Sara Practice Manager: Rita E. Cestti Paula Pedreira de Freitas de Oliveira Task Team Leader(s): Marcos T. Abicalil ICR Contributor Author: John Redwood III
TABLE OF CONTENTS
DATA SHEET ...... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ...... 6 A. CONTEXT AT APPRAISAL ...... 6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) ...... 8 II. OUTCOME ...... 10 A. RELEVANCE OF PDOs ...... 10 B. ACHIEVEMENT OF PDOs (EFFICACY) ...... 11 C. EFFICIENCY ...... 17 D. JUSTIFICATION OF OVERALL OUTCOME RATING ...... 18 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ...... 19 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ...... 19 A. KEY FACTORS DURING PREPARATION ...... 19 B. KEY FACTORS DURING IMPLEMENTATION ...... 20 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 22 A. QUALITY OF MONITORING AND EVALUATION (M&E) ...... 22 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE...... 23 C. BANK PERFORMANCE ...... 24 D. RISK TO DEVELOPMENT OUTCOME ...... 25 V. LESSONS AND RECOMMENDATIONS ...... 25 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ...... 28 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ...... 47 ANNEX 3. PROJECT COST BY COMPONENT ...... 50 ANNEX 4. EFFICIENCY ANALYSIS ...... 52 ANNEX 5. BORROWER COMMENTS AND SUMMARY OF BORROWER’S REPORT ...... 53 ANNEX 6. SUPPORTING DOCUMENTS ...... 59 ANNEX 7. THEORY OF CHANGE ...... 61 ANNEX 8. PROJECT ACTIVITIES, OUTPUTS, AND INDICATORS BEFORE AND AFTER RESTRUCTURING ...... 62 ANNEX 9. MAP ...... 78
The World Bank BR Federal Integrated Water - Interaguas (P112073)
DATA SHEET
BASIC INFORMATION
Product Information Project ID Project Name
P112073 BR Federal Integrated Water - Interaguas
Country Financing Instrument
Brazil Investment Project Financing
Original EA Category Revised EA Category
Partial Assessment (B) Partial Assessment (B)
Organizations
Borrower Implementing Agency
ANA - National Water Agency, Ministry of Environment, Ministry of Finance Ministry of Cities, Ministry of National Integration
Project Development Objective (PDO)
Original PDO To support the Government of Brazil to improve the coordination and strengthen the capacity among key federal institutions in the water sector toward an integrated approach.
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The World Bank BR Federal Integrated Water - Interaguas (P112073)
FINANCING
Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing
107,332,500 63,783,375 19,802,426 IBRD-80740 Total 107,332,500 63,783,375 19,802,426
Non-World Bank Financing 0 0 0 Borrower/Recipient 35,777,500 35,777,500 7,008,951 Total 35,777,500 35,777,500 7,008,951 Total Project Cost 143,110,000 99,560,875 26,811,377
KEY DATES
ApprovalFIN_TABLE_DAT Effectiveness MTR Review Original Closing Actual Closing 12-Jul-2011 30-Apr-2012 12-Jun-2015 31-Dec-2016 31-Oct-2018
RESTRUCTURING AND/OR ADDITIONAL FINANCING
Date(s) Amount Disbursed (US$M) Key Revisions 30-Jun-2016 8.04 Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Cancellation of Financing Change in Financing Plan Change in Institutional Arrangements Change in Implementation Schedule
KEY RATINGS
Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest
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RATINGS OF PROJECT PERFORMANCE IN ISRs
Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 18-Dec-2011 Satisfactory Satisfactory 0
02 22-Jun-2012 Satisfactory Satisfactory 0
03 01-Jan-2013 Satisfactory Moderately Satisfactory 2.00
04 24-Sep-2013 Satisfactory Moderately Satisfactory 2.00
05 12-Apr-2014 Moderately Satisfactory Moderately Unsatisfactory 2.00
06 15-Nov-2014 Moderately Satisfactory Moderately Unsatisfactory 5.90
07 22-Apr-2015 Moderately Satisfactory Moderately Unsatisfactory 6.85
08 18-Oct-2015 Moderately Satisfactory Moderately Unsatisfactory 6.85
09 30-Mar-2016 Moderately Satisfactory Moderately Unsatisfactory 8.04
10 18-Sep-2016 Moderately Satisfactory Moderately Unsatisfactory 8.04
11 24-Apr-2017 Moderately Satisfactory Moderately Unsatisfactory 13.33
12 13-Nov-2017 Moderately Satisfactory Moderately Unsatisfactory 15.62 Moderately 13 15-May-2018 Unsatisfactory 19.53 Unsatisfactory Moderately 14 31-Oct-2018 Moderately Unsatisfactory 19.53 Unsatisfactory
SECTORS AND THEMES
Sectors Major Sector/Sector (%)
Agriculture, Fishing and Forestry 20 Irrigation and Drainage 20
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The World Bank BR Federal Integrated Water - Interaguas (P112073)
Water, Sanitation and Waste Management 80 Sanitation 10 Waste Management 5 Water Supply 15 Public Administration - Water, Sanitation and Waste 50 Management
Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Finance 5
Finance for Development 5
Disaster Risk Finance 5
Urban and Rural Development 15
Disaster Risk Management 15
Disaster Response and Recovery 5
Disaster Risk Reduction 5
Disaster Preparedness 5
Environment and Natural Resource Management 179
Climate change 99
Mitigation 54
Adaptation 45
Water Resource Management 80
Water Institutions, Policies and Reform 80
ADM STAFF
Role At Approval At ICR
Regional Vice President: Jorge Familiar Calderon Axel van Trotsenburg
Country Director: Makhtar Diop Paloma Anos Casero
Senior Global Practice Director: Laura Tuck Jennifer J. Sara
Practice Manager: Karin Erika Kemper Rita E. Cestti
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The World Bank BR Federal Integrated Water - Interaguas (P112073)
Paula Pedreira de Freitas de Task Team Leader(s): Manuel Contijoch Escontria Oliveir, Marcos T. Abicalil ICR Contributing Author: John Redwood
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The World Bank BR Federal Integrated Water - Interaguas (P112073)
I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES
A. CONTEXT AT APPRAISAL
Context 1. Proper management of water resources is essential for Brazil to achieve sustainable development. At the time of Appraisal, despite past accomplishments, however, improved water resource management (WRM) remained a significant challenge. Brazil’s freshwater resources were and remain unequally distributed across regions and in relation to the location of the national population. Water scarcity in the Northeast, the poorest part of the country, and in its largest metropolitan areas was increasing. Already serious droughts and flooding were expected to be exacerbated by growing climate variability and change. Water pollution remained a major problem in most large cities, harming public health, causing environmental damage, and raising the cost of water treatment for downstream users. Access to water supply and sanitation (WSS) services likewise continued uneven and new irrigation models were needed. 2. The 1988 Brazilian Constitution laid the foundation for the National Water Resources Management System (SINGERH),i which comprised the legal and administrative mechanisms for: (i) integrated water resource management (IWRM) in the country through a participatory approach; and (ii) implementation of the National Water Resources Policy, established by Water Law No. 9.433 of 1997.ii The Federal Government had thus undertaken significant policy and legal reforms since the mid-1990s, particularly for IWRM and WSS, including the 2007 Water Supply and Sanitation Law and the National Irrigation Policy Law, emphasizing sound economic and environmental practices. The Bank had been involved in various parts of the sector for many decades and accumulated extensive experience with water-related projects for both infrastructure and capacity building throughout Brazil. 3. With the national economy growing robustly, the Government of Brazil (GoB) launched the Growth Acceleration Program (PAC) in 2007 to boost investments in infrastructure. Planned investments in the water sector alone totaled R$90 billion (US$52.7 billion) for 2007–10, and the PAC 2 program for 2011–14 foresaw investments of R$56.6 billion (US$33.2 billion) in water-related infrastructure (considering the exchange rate at Appraisal). However, such investments continued to face problems such as inadequate planning, limited institutional capacity, insufficient attention to their feasibility and sustainability, and the fragmentation of approaches and actions among the key federal agencies in the sector, leading both to inefficiencies and reduced effectiveness. In this context, the Ministry of Planning, Budget, and Management (MPOG) requested new Bank financing for the provision of technical assistance (TA) to promote a more integrated approach among the key institutions in the sector, resulting in the Federal Integrated Water Sector Project (INTERAGUAS). 4. This Project represented an important, but ambitious, innovation in terms of Bank support by bringing together the most important federal agencies in the water sector, the Ministries of Environment (MMA) and the National Water Agency (ANA), which were jointly responsible for WRM; the Ministry of National Integration (MI), in charge of irrigation and natural disaster management, and of Ministry of Cities (MCid), responsible for urban WSS. The Bank had worked extensively with all these institutions in the past, and this operation was the immediate successor to the Federal Water Resources Management Project (PROAGUA) with ANA and MI on the one hand and with Phase II of the Water Sector Modernization Program (PMSS II) and the Low-Income Sanitation Technical Assistance Project (PROSANEAR) with MCid on the other. However, it was the first time that the Bank
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sought to help strengthen the integration among many of them for the benefit of the entire sector. Greater details on the Project background, including the role of prior Bank assistance, are available at Project files.
Theory of Change (Results Chain) 5. The theory of change (ToC) reflected in the Project Appraisal Document (PAD) was that the TA to be implemented, i.e., measures to strengthen the participating institutions through improvements to planning, management, studies, and their technical and operational capacity more generally and to enhance the coordination among them -- would contribute to increased integration of their interventions, thereby improving their individual and collective efficiency and effectiveness in pursuit of the longer-run goal of more sustainable national water resource use. Annex 8 provides additional information regarding the ToC at appraisal.
Project Development Objectives (PDOs) 6. The PDO, as stated in the Loan Agreement, was “to support the Government of Brazil to improve the coordination, and strengthen the capacity, among key federal institutions in the water sector toward an integrated approach.”iii
Key Expected Outcomes and Outcome Indicators 7. In accordance with the PDO, the expected project outcome was greater integration of federal water sector interventions as the result of strengthened capacity of the principal institutions involved; and improved coordination among them. The PDO outcome indicators expected to cover (i) policy and regulatory improvements, (ii) sector and intersectoral investment plans, and (iii) institutional capacity building, were: An inter-ministerial management committee, at the Executive Secretariativ level, for water sector programs established and functioning regularly with all institutions that participate in INTERAGUAS. 25 water sector activities and projects implemented by institutions participating in the project and included in the Government of Brazil’s Multiyear Plan (PPA) for 2012-2015 following an integrated approach, as attested by an independent evaluation. A water indicators portal connectingv sector-specific information systems, studies, and analytical work is implemented and available to the public. Components 8. In pursuit of its development objective, the Project contained three institution-specific components (Components 1-3); one component (Component 4) to promote multiple use of water in two priority basins and help to rationalize water allocation among competing uses (e.g., hydropower, navigation, environmental sustainability, water supply and sanitation and irrigation); and one component for project management. A summary of these components as presented in the PAD follows. A more detailed description of Components 1- 4 is provided in Annex 9. Water Resources Management (Appraisal cost: US$44.22 million;vi Actual cost: US$4.82 million). This component to be implemented by MMA and ANA aimed at providing support for the deployment of tools and instruments to the National Water Resources Management System (SINGREH), enhancing institutional development, reducing disparities between the federal and state water management systems, identifying actions to mitigate and adapt to climate change, streamlining procedures, and establishing criteria for ongoing monitoring and evaluation systems to increase efficiency and legal compliance of water resources
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guidelines and policies consistent with the 1997 Water Law that established the National Water Resources Policy. Water, Irrigation, and Disaster Risk Management (Appraisal cost: US$40.73 million; Actual cost: US$2.82 million). This Component to be implemented by MI aimed at providing support for institutional strengthening to improve water infrastructure, irrigation and National Civil Defense System (SINDEC) activities and raising the overall assessment capacity of strategic existing water infrastructure and disaster risk management capacity, including floods, droughts, and other hazards. Water Supply and Sanitation (Appraisal cost: US$32.44 million; Actual cost: US$5.35 million). This component to be implemented by MCid aimed at supporting implementation of the Borrower’s 2007 National Sanitation Law to improve the quality of the provision of water supply and basic sanitation services, and thereby contributing to the promotion of universal access to these services. Intersectoral Coordination and Integrated Planning (Appraisal cost: US$20.96 million; Actual cost: US$6.74 million). This component to be implemented jointly by ANA, MMA, MI, and MCid aimed at providing support to promote integrated planning, identify areas of mutual interest, overlap, or conflict in the sectoral plans which impact and/or depend upon water; carry out of studies and institutional improvements involving multiple sectors; and support water management and conservation measures preferentially in the São Francisco and the Araguaia-Tocantins river basins. Project Management, Monitoring and Evaluation (Appraisal cost: US$4.49 million; Actual cost: US$0.67 million). This component aimed at supporting project management, monitoring, and evaluation.
B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE)
Revised PDO and Outcome Targets 9. The Project was formally restructured in June 2016. Even though its scope and key outcome indicators were modified, the PDO remained unchanged.
Revised PDO Indicators 10. All three PDO indicators were modified as follows as part of the restructuring: Part of the first indicator was changed from “Inter-ministerial Committee at the Executive Secretariat level for water sector programs established and functioning regularly with all institutions that participate in INTERAGUAS” to “Inter-ministerial Committee at the Sector Secretariats or Director (ANA) levels established a functioning regularly with all institutions that participate in INTERAGUAS.”vii The original second indicator that referred to the 25 water sector activities and projects in the PPA for 2012- 2015 was replaced by “Percentage of project amount executed in water sector integrated actions”viii because the original formulation was not possible to measure.ix The wording of the third indicator was altered to read “A water portal with access tox sector specific information systems, studies, and analytical work is implemented and available to the public” instead of the original “A water indicators portal connecting sector-specific information systems, studies, and analytical work is implemented and available to the public.”
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Revised Components 11. The Project’s components were not changed in terms of their objectives and generic content at the time of restructuring as they continued to consist of planning and management, studies, and institutional capacity development. In some cases, however, their scope was modified. The restructuring also sought to give greater emphasis to activities to promote greater integration, including the reallocation of project resources to Component 4. As a result of the continuing severe drought afflicting the Northeast and growing water scarcity in the Southeast, several activities gave greater emphasis to increasing water security in critical parts of the country, and their territorial focus was altered to include both regional and national level actions while maintaining a focus on the São Francisco River Basin in the Northeast. Annex 9 also compares the original PAD and revised descriptions of project-supported activities and the link between the activities and the PDO and Intermediate Results (IR) outcomes.
Other Changes 12. While the Restructuring Paper, as a result of an oversight, did not change the Intermediate Outcomes per se stated in the PAD only their respective indicators, in practice most of the IOs were modified in agreement with the implementing agencies at the time of the Mid-term Review (MTR), as is also detailed in Annex 9. As a result, the number of IR indicators was reduced from 15 to 12 as several of the original indicators were dropped, while some new ones were added, one was shifted to a different component, and the wording of others was revised to reflect the changing context in which the project was being implemented (see Key Factors Influencing Implementation below) and the associated refocusing of some of its activities. The pertinent IR indicators were adjusted accordingly, as shown in detail in Annex 9. These revised versions were subsequently used in the Borrower’s Progress Reports and in the Bank’s Implementation Status and Results (ISR) Reports. 13. At the time of the restructuring, US$43.55 million of the original loan was canceled, reducing the total from US$107.33 million to US$63.78 million. As Figure 1 shows, the relative share of loan and counterpart funding allocated to the components was also modified, with that for Components 1, 2, and 5 declining the most and that for Component 4 increasing significantly. In addition, while the four implementing agencies remained the same, the Secretariat of Regional Development (SDR) in MI was added as a beneficiary to reflect the Project’s increased emphasis on water security and drought response in the Northeast. The arrangements for counterpart funding were also changed at that time with ANA assuming full responsibility given the severe budget restrictions imposed on the three Ministries as a result of the fiscal crisis. The Project closing date was extended by 22 months -- from December 31, 2016 to October 31, 2018 -- to permit enough time to complete implementation of the restructured operation. Two of the Project risk ratings at appraisal were also raised to better reflect the difficult economic and institutional environment in which project implementation was taking place.xi.
Rationale for Changes and Their Implication on the Original Theory of Change 14. The restructuring and associated changes in the Results Framework and closing date were deemed necessary to ensure that the Project could meet its PDO and respond to the Government’s evolving priorities in the water sector. In addition, as stated in the Restructuring Paper (p. 9), the complex division of responsibilities among the four executing agencies had posed “considerable coordination challenges” resulting in implementation delays and associated disbursement lags. As a result, just US$8.04 million of the original loan had been disbursed by June 2016. The reasons cited for these problems included: (i) weaker than anticipated institutional capacities in the various participating ministries; (ii) inefficient coordination mechanisms; (iii) the need for several revisions to the procurement plan; (iv) longer than expected negotiation processes underlying the Technical Cooperation
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The World Bank BR Federal Integrated Water - Interaguas (P112073)
Project agreements with the Interamerican Institute for Cooperation on Agriculture (IICA) to allow it to carry out procurement activities on behalf of the four federal executing agencies;xii (v) budget cuts due to fiscal constrains affecting all agencies and the increase in available resources for ANA from the hydropower sector; and (vi) devaluation of the Brazilian Real.xiii. 15. These changes did not affect the original theory of change since the logic and strategic approach of the Project (i.e., implementation of specific TA activities to support improvements in planning and management, studies, and other institutional development activities to help generate and disseminate useful knowledge, strengthen the capacity of, and improve the capacity of and coordination, and, thus, the degree of integration, among the four key federal institutions involved in the water sector with the objective of achieving a more integrated approach) remained unchanged. The restructuring, however, did incorporate the revised emphasis agreed with the Borrower during the MTR to further strengthen the integrated approach and inter-institutional coordination, as well as capacity, by allocating greater attention and resources to Component 4.xiv
II. OUTCOME
A. RELEVANCE OF PDOs
Assessment of Relevance of PDOs and Rating 16. The relevance of the PDO continues to be High. The Project was developed in the context of the GoB’s and Bank’s shared vision as outlined in the Country Partnership Strategy (CPS) for 2008-2011, which recognized (p. 62) that water was an essential element of the Government’s strategy for promoting sustainable growth and a more equitable and inclusive society. It also observed that the country still faced “daunting challenges to expand and improve water services.” In response, the CPS proposed (pp. 69-70) supporting Government interventions in the water sector, which, inter alia, would include the following objectives: (i) improving water resources management; (ii) expanding and improving WSS services; (iii) developing more effective irrigation models; (iv) promoting multi-sector approaches to complex infrastructure; and (v) regional and global knowledge and experience sharing. 17. These priorities remain relevant in the current World Bank Group (WBG) Country Partnership Framework (CPF) for Brazil for FY18-23, issued in May 2017. Under its third focal area (“Inclusive and Sustainable Development”), this document affirms (p. 47) that the Bank Group “will support the government in fostering more equitable economic growth, social inclusion, and efficient use of resources, focusing on interventions related to land tenure and territorial development, management of natural resources and biodiversity, climate change mitigation and adaptation, deforestation, land degradation, and water scarcity issues.” Based on the Systematic Country Diagnostic (SCD), published in May 2016, the CPF emphasized that “the sustainable use of national resources (water, land, forests etc.) is often a critical determinant of the livelihoods of the poor and Bottom 40 percent.” The SCD dedicates a section to water resources and water infrastructure (pp. 171-176), which confirmed that “the most water-dependent sectors of the economy are the key drivers of development and growth” and that “Brazil’s current water infrastructure is insufficient to respond to recent extreme climate events,” especially droughts that had adversely affected half of the municipalities in the country in 2012 and subsequently became even more severe. It also cautioned that “future constraints on irrigation growth may come in the form of water security.” Finally, it argued that “resilience to increased variability of water supply requires large, multipurpose infrastructure, better institutions, and long-term preparedness and response planning.”
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18. The current CPF, in short, identifies “the smarter management of Brazil’s natural resources and the better mitigation of environmental pollution and the risk of natural disasters” as among its main persisting development challenges. Among the actions highlighted for Bank Group support (pp. 30-31) are: (i) implementation of strategies to build up resilience in urban areas, especially in poor high-risk poor areas in part by reducing the vulnerability and the exposure of low-income communities to environmental degradation, natural hazards, and climate change; (ii) continued support for national and subnational authorities to increase the number of people with improved urban living conditions, including in terms of water supply and sewerage; and (iii) helping the large population living in the semi-arid region adapt to the growing risk of water scarcity in response to its “increasing extreme climate and water-related events – particularly intense floods and prolonged and/or acute droughts.” It also recognizes that “increased water security requires a combination of better water resources management, more efficient water services provision, and more resilient water infrastructure.”xv 19. It should likewise be recalled that the project restructuring agreed at the MTR in 2015 and formalized in 2016 was partly motivated by the Government’s growing preoccupation with the increasing water security issues sparked by the intense droughts in the Northeast and elsewhere, which continue to be a significant concern.xvi Thus, the decision to reorient the project at the MTR to give greater emphasis to these concerns was undertaken in part to enhance its continuing High relevance to the Government’s and Bank’s evolving priorities in the sector. In addition, the new federal administration that took office on January 1, 2019 has reconfirmed the priority given to improved WRM, WSS, and water-sector performance more generally. Among other manifestations, this is reflected in the significant federal administrative reform that has now brought the project’s four implementing institutions under the command of a single new Ministry of Regional Development (MDR)xvii, together with a commitment to proceed rapidly with implementation of the key plans produced under the project for water security and dam rehabilitation together with regulatory reforms for WSS and wastewater reuse guidelines, as has already been communicated to the Bank and manifested in official statements by the new government.xviii
B. ACHIEVEMENT OF PDOs (EFFICACY)
Assessment of Achievement of Each Objective/Outcome 20. The PDO, as stated in the Loan Agreement, was “to support the Government of Brazil to improve the coordination, and strengthen the capacity, among key federal institutions in the water sector toward an integrated approach.” All three of the PDO indicators in both the original and the revised Results Frameworks, however, refer to the “toward an integrated approach” objective through a combination of activities intended to result in strengthened institutional capacity and enhanced inter-institutional coordination. Project achievements with respect to this overarching objective based in part on the PDO indicators both before and after restructuring considered at the time of Project closing are summarized below. 21. Establishment and Operation of the Inter-ministerial Management Committee (IMC). The IMC for federal water sector programs was formally created in 2012. The Committee met once in 2012, once in 2013, twice in 2014, and four times in 2015, for an average of twice a year, with the participation of all institutions involved in INTERAGUAS prior to the restructuring. However, this did not occur universally at the Executive Secretariat level as mentioned in footnote 7. 22. It is noteworthy that the IMC was especially proactive when its guidance and engagement was most essential – i.e., leading up to, during, and following the MTR when the four institutional participants and the Bank recognized the need for substantial revision of the Project due to the changing national macroeconomic, fiscal, and institutional circumstances in which it was being implemented and the difficulties experienced to date (see
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the section on key factors affecting implementation below for details). Thus, this PDO indicator was substantially achieved prior to restructuring. The IMC met somewhat less frequently after the restructuring had been formalized in June 2016, and mainly after the change in administration following the impeachment of former President Rousseff, as there was considerable demobilization at the management level as a result. At that stage, the constant political and fiscal problems impeded that greater priority be given to the IMC after restructuring. In addition, the most strategic changes to Project had already been fully discussed and agreed by its members and the Bank during the MTR. The fact that the Committee did not meet in the frequency expected could be minimized by the importance of the decisions made in the meetings that did take place when there was clear need. This is well reflected by the priority given to proposed activities during restructuring and would adjust the Project’s priority to the current reality at the time and to strategic activities under the National water agenda. Furthermore, as the Borrower’s completion report states, “INTERAGUAS, including its inter-ministerial management arrangements, provided the model for the formation of the new MDR” mentioned in para. 19 above, which has now formally brought all four of the Project’s implementing agencies under a single roof. Achievement of this objective is thus rated Substantial both prior and after restructuring.
23. Twenty-five water-related activities to be implemented by the project institutions were included in the Federal Government’s Multiyear Plan (PPA) for 2012-2015 following an integrated approach. The extent to which this original PDO indicator was achieved is not possible to determine. The reason it cannot be assessed is that the PPA was (and is) a budget plan that includes the main types of activities expected to be implemented by different Federal Government dependencies over a specific four-year period. While for each implementing agency there was a specific line of action associated with INTERAGUAS, it was not disaggregated at the activity level, being impossible to measure (see footnote 9). As mentioned, during restructuring this indicator was dropped and replaced by the indicator mentioned in the following paragraph. Thus, progress toward its achievement was not reported in any of the ISRs prior to the restructuring, and the extent to which this key outcome may have been achieved, therefore, is not possible to fully assess. However, considering that the PPA included a line for the implementation of Project activities, it is certain that all activities actually carried out through the Project were covered under, if not specifically identified in the PPA. Besides, their priority for the Government did not substantially change -- and, in some cases, became even more urgent over time (e.g., increased water security and dam safety) -- and that many, if not most of these activities were already under implementation at the time of the restructuring. Finally, due to the lack of specific information, performance in relation to this PDO indicator prior to restructuring is rated Modest. 24. Percentage of Project amount executed in water sector integrated actions. This covered all activities in Component 4 (Intersectoral Coordination and Integrated Planning) and several other jointly-conducted ones under Component 1. A target of 25 percent of total Project resources was set for integrated actions during the restructuring. This target was substantially surpassed as, by the time of Project completion, 45 percent of its total expenditures had been dedicated to integrated activities. These included several essential studies in the São Francisco River Basin, which are of direct relevance in terms of the mitigation or amelioration of future drought-related impacts in several states of the semi-arid Northeast. They also included two strategic outputs, which involved a strong integrated approach and coordination – the Water Resources Plan for Goiás and the Hydrogeological Assessment of the Karstic and Fissure-Karstic Aquifer Systems in the São Francisco Hydrographic Region-- that also required an integrated approach with the specific state governments involved.xix 25. A complete list of the most important outputs generated by the Project, both in terms of the amount of its resources allocated to them and their relevance by component is presented in Table 1. This table also indicates what type of instrument was involved (i.e., policy, planning, management, capacity building, or technical
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studies) and which activities contributed to improved coordination (C), which to capacity strengthening (S), or both. In addition, the table shows the status of implementation of the activities at MTR - under implementation (I), under the bidding process (B) or planned (P) highlight that many of the activities had been initiated prior to the restructuring. Altogether, these 17 main activities accounted for more than 85 percent of total project costs. As highlighted in the Borrower´s report, the Project produced outputs of relevant and strategic value to guide the investments for the next two decades, and they enriched the capacity of the sector to carry out joint planning and integrated management.xx 26. As shown in the Table 1, the Project supported specific capacity building interventions. Those planned for three of the four institutions involved (i.e., ANA, MMA, and MCid), were largely implemented. Those targeting MI, however, were only partly implemented. This was largely because of the significant institutional disruptions that followed the impeachment of President Rousseff in August 2016 – thus after the restructuring had been formally approved – and the subsequent change in the federal administration, which included both a change in leadership and that of the entire technical staff previously working on INTERAGUAS, as well as an internal reorganization, in MI. Other activities needed to be scaled back to some extent because of the continuing impact of the continuing adverse budgetary impact of the economic-fiscal and political crises that affected the Federal Government at that time (see the section on factors affecting project implementation below). Considering both that the revised target for this indicator was significantly exceeded and, more importantly, the importance of the outputs generated by the Project, performance following the restructuring is rated Substantial.
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Table 1. Principal Project Outputs and Their Relevance by Component. C S Activity/Output Relevance MTR Component 1 Quantitative and Qualitative Implemented by ANA, this study aimed to conduct a quantitative I Modeling of River stretches in and qualitative modeling of critical river stretches, enhancing the X basins considered critical. water management tools of the Agency in those stretches. [Management instrument] Hydrogeological Assessment of the Implemented by ANA in coordination with Minas Gerais and I Karstic and Fissure-Karstic Aquifer Bahia. It improved knowledge of the aquifer system, provided X X Systems in the São Francisco management tools (information system, water balance, water Hydrographic Region. monitoring strategies, etc.) and proposed a joint integrated [Management instrument] management plan already implemented. Evaluation of ANA’s training Implemented by ANA, study aimed at: (i) consolidating data of B actions for SINGREH. ANA’s training actions for SINGREH, (ii) developing an impact X [Management instrument] assessment methodology (which will be used in the assessment training cycle of the Agency), and (iii) assessing the impact of ANA’s training actions. Diagnosis and Evaluation of Implemented by MMA, study aimed at: (i) preparing a diagnosis P National Water Resources Plan of progress, achievements and results obtained with (PNRH). implementation of the PNRH, and (ii) assessing PNRH’s impact on X [Planning instrument] integrated WRM, proposing recommendations for the new PNRH. In addition, a seminar was conducted with the Project´s support to discuss the priorities for the 2016 to 2020 period. Water Resources Plan for Goiás Implemented by MMA in coordination with Goiás State, I X X State. improving its capacity, and the methodology these plans which [Planning instrument] may be used in future state water resources plans. Subterranean Water Analysis for Implemented by MMA in coordination with Paraná. Study aimed I Paraná State. at: (i) analyzing subterranean water resources of the state, (ii) X [Management instrument] analyzing information in a Geographic Information System to enhance the data management, and (iii) proposing an integrated management of subterranean use for the State. Component 2 National Dams Restoration Plan Implemented by MI, carried out the diagnostic of 164 dams and B X (PLANERB). action plan to restore them and elaborate the dam safety plans. [Planning instrument] Elaboration and/or update of Implemented by MI, elaborated and/or updated manuals of B manuals for Protection and Civil disaster risk management and planning, and guidelines to support X Defense. capacity building of the Protection and Civil Defense National [Capacity building instrument] System targeted to managers and municipalities. Component 3 TA for the Basic Sanitation Implemented by MCid with the participation of ANA and B Regulations. subnational regulators. It aimed at improving the regulation of X X [Management instrument] basic sanitation through TA targeted to 5 regulators (included diagnostic, proposal of specific regulator instruments, and trainings). Com+Agua 2: Reduction of Water Implemented by MCid. This included a TA to 2 subnational water B X Losses and Efficient Use of utilities in order to strengthen their capacity to reduce water losses and improve the use of electrical energy. This was done
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Electrical Energy Management through social mobilization, planning and management, water Project. losses and energy management strategies, and training. Based on [Management instrument] this experience the MCid is expanding the methodology applied to other water utilities. Auditing and Certification of Implemented by MCid. It included among others: (i) development P Information Regarding Sanitation. of methodologies and guidelines to audit and certify the X [Management instrument] information provided to SNIS, and (ii) training. It contributed to enhance the quality of the information of SNIS. Component 4 National Water Security Plan Implemented by ANA and MI, it defines the main structuring I (PNSH). interventions to ensure water supply for multiple uses and reduce X X [Planning instrument] risks associated with critical events (drought and floods). The PNSH represents a milestone to guide investments in strategic water infrastructure in the next decade. National Sewage Atlas: Implemented by ANA and MCid, it represents a broad national I Depollution of Water Basins via diagnosis of the sewage collection and treatment systems of all Urban Sewage Treatment. the country's urban centers, as well as the quality of the X X [Planning instrument] receiving water bodies. More than a diagnosis, the Sewage Atlas provides a tool for a better prioritization and hierarchization of investments due to the impact on water resources. Ecological-Economic MacroZoning Implemented by MMA and with participation of all Project P of the São Francisco Basin. implementing agencies, study will contribute to the planning, X X [Planning and management development and use of the territory in the São Francisco River instrument] Basin. This was the first ZEE of a large national river basin. Action Plan Proposal to establish a Implemented by MCid with the participation of MMA, MI and B National Reuse Policy. ANA, study aimed at assessing the wastewater reuse and defining [Policy instrument] an action plan to stablish a National Policy. It was the first time X X that the topic was discussed and raised at federal level, being a relevant milestone considering the persisting drought conditions that parts of the country have faced over the last 7-8 years. Renewable Energy in the Implemented by MI, study aimed at assessing different options of P Integration of the São Francisco renewable energy resources to operate the infrastructure linked X X Basin (PISF) to PISF in order to select the most sustainable option considering [Technical study] technical, economic and environmental criteria. Piancó River Branch of the Implemented by MI, it conducted a technical, economic and P Integration of the São Francisco environmental feasibility study to supply water to Piancó basin X X Basin (PISF) from the PISF. This branch is one of the most strategic works that [Technical study] need to be carried out in Paraíba State to make the most of the water from the PISF.
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27. A water indicators portal connecting sector-specific information systems, studies, and analytical work is implemented and available to the public. The wording of this original outcome indicator was also slightly revised by the restructuring with the word “connecting” replaced by “with access to” and the rest remaining as it was. The reason for the change was that it had proved technically very difficult and much more costly than anticipated at appraisal to integrate the existing information systems operated by each of the participating federal institutions.xxi While a specific project website (http://Interaguas.ana.gov.br) was indeed established and maintained by ANA throughout implementation, the task of building electronic links to the other water- related federal institutional information systems had not been completed by the time of project closing. While there is still the intention on the part of ANAxxii, which like the SRHQ, has now been transferred from MMA to the newly created MDR, to do this -- and the recent administrative reform that has now brought all four of the Project institutions together under the MDR, provides an even stronger motivation for doing so. As of the writing of this ICR, it still has not occurred as other priorities associated with adopting the new institutional arrangements for the federal water sector have taken precedence. Accordingly, progress in this regard both before and after restructuring is rated Modest. Notwithstanding this assessment, all relevant project documents are publicly available on INTERAGUAS’s website including the results of the international Project closing seminar held in September 2018 and all publication jointly prepared by the four participating institutions listed in Table 1, which was launched at this event.xxiii 28. Overall Achievements in relation to the PDO. Aside from the important plans and knowledge products that The Project generated, the most important result of the Project was that its development objective to support the Brazilian Government’s efforts toward a more integrated approach in the water sector through the combination of capacity building and improved inter-institutional coordination was clearly achieved. This represented a very important behavioral transformation on the part of four federal institutions, including three Ministries, that had historically operated largely independently with only limited, if any, prior consultation and collaboration regarding their activities in the water sector activities. INTERAGUAS was able to successfully break down the traditionally non-integrated approach. While the recent administrative reform that has now brought all four institutions into a single new Ministry cannot be attributed as an outcome of the Project per se, there is little doubt that the positive experience under INTERAGUAS during the previous administration contributed significantly to the decision to take integration of federal activities in the water sector even further.xxiv 29. In summary, despite the need for restructuring following the MTR, the PDO was maintained even though one of the PDO outcome indicators was replaced to ensure greater monitorability and two others were reworded in response to practical constraints that had become evident during the early stages of implementation, the Project achieved its basic objective of supporting GoB efforts toward an integrated approach in the federal water sector and has produced numerous valuable knowledge products in the process. According to the Borrower’s ICR, “it is notable that the products that were finalized, published and disseminated played the role of enriching the sector in joint planning and integrated management capacity, which, in the limit, was pointed as the main guideline of action of the INTERÁGUAS Program.” Two of these outputs are especially important at present time, the National Water Security Plan (PNSH) and the National Dams Restoration Plan (PLANERB). On the former, a MDR press release on January 15, 2019 affirmed that the new Ministry, which is now responsible for “coordinating the entire National Water Resources policy” was planning R$ 25 billion (nearly US$7 billion) for 114 investments to expand water supply throughout the country, of which 66 would be in the Northeast. All these investments were part of the National Water Security Plan produced under INTERAGUAS and the Ministry expects their implementation to begin this year.xxv Given the recent tragedies resulting from the mining tailing dam break in Brumadinho, Minas Gerais on January 25, 2019, in which as many as 300 lives were lost,
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implementation of the latter plan has also taken on even greater urgency and priority for the Brazilian Government.
Justification of Efficacy Rating 30. Based on the considerations above and despite the serious difficulties faced by the Project, most of which were beyond the control of the implementing institutions and the Bank but constrained Project’s performance, its achievements in relation to the PDO indicators as stated in the Loan Agreement are rated Modest and Substantial in relation to the PDO indicators after restructuring. In many ways, they exceeded initial expectations given the significant challenge posed by the type of institutional behavior change that the Project sought to promote. Both the Brazilian Government and the Bank were aware from the preparation stage that this would be a potential “high risk, high reward” type of operation. However, on balance, it has generated significant benefits for the federal water sector that are likely to become even greater in the years ahead. C. EFFICIENCY
Assessment of Efficiency and Rating 31. Economic Efficiency. No economic or financial assessment was presented in the PAD, which stated (para. 42, p. 16) only that “much of the analysis to be undertaken during implementation would support improved water resources management and planning and development of water resources with better environmental, social, and economic considerations, and this will generate enormous benefits for Brazil.”xxvi As a TA Project, cost- benefit analysis is not feasible. The loan financed consulting activities through relatively small contracts with firms and individual service providers. As a result, more than 60 outputs were produced, with the largest 17 accounting for 87 percent of the resources utilized by the project. However, the cost-effectiveness of these activities is very difficult to determine on account of the wide variety of the specific tasks involved in substantive terms together with the lack of precise comparators elsewhere. It is possible, however, to assess the Project’s efficiency both in terms of the implementation period involved and the use of loan resources, as reflected in the level of disbursements in relation to the original loan amount. 32. Operational Efficiency. Implementation delays due largely to persisting institutional capacity weaknesses were part of the reason for the need to restructure the Project following the MTR and to extend the Project’s closing date by 22 months.xxvii The level of disbursement was also very low due also to the substantial devaluation of the Brazilian Real over this period.xxviii As a result of these two factors, nearly US$43.6 million was canceled at the time of restructuring, leaving a remaining undisbursed balance of roughly US$55.4 million.xxix Even though disbursements picked up after restructuring, they still proved to be considerably lower than planned and at the time of Project closing, total disbursements were only US$19.8 million, but roughly US$3.4 million of unspent loan resources have been returned to the Bank because they could not be utilized by the implementing institutions.xxx As a result, total actual loan disbursements for the Project amounted US$16.4 million and were nearly evenly split before and after restructuring with a slightly largely share after that restructuring. 33. It could be argued that, because the Project produced a substantial number of outputs and essentially achieved its PDO with the use of much fewer dollars that originally anticipated, it was, in fact, very efficient. But this does not consider the fact that some of the outputs originally intended to be financed with Project resources were cut back and dropped from the operation or funded with alternative domestic sources. Even this could be considered to have been a benefit associated with the Project to the extent that it meant additional resources were mobilized and utilized in pursuit of the Project’s objectives due to the Federal Government’s increasingly constrained fiscal situation (with the exception of that of ANA, where the reverse occurred – see Key Factors
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Affecting Project Implementation below), such that otherwise these activities might not have been undertaken at all. Finally, it is also important to mention that many of the products generated by the Project will contribute to improve efficiency in the implementation of Government resources – the PNSH provides clear definition of priorities for investment in water resources infrastructure considering technical, economic, and environmental criteria; while the Regulasan is focusing on improving the WSS regulation and the COM+Água on reducing non- revenue water, leading both to operational and economic efficiency gains. These arguments notwithstanding, due to the Project’s initial slow implementation and low disbursement rate even when the sharp devaluation of the Brazilian currency in relation to the US dollar is considered and with the impossibility of measuring its economic efficiency, overall project Efficiency is conservatively rated Modest.
D. JUSTIFICATION OF OVERALL OUTCOME RATING
34. A split evaluation (pre-restructuring and post-restructuring) analysis over the Project’s lifetime was conducted. The pre-restructuring outcome is rated Moderately Unsatisfactory (Relevance High, Efficacy Modest and Efficiency Modest), while the post-restructuring outcome is rated Moderately Satisfactory (Relevance High, Efficacy Substantial and Efficiency Modest). When these ratings are weighted with the percentage of disbursement, 49 percent and 51 percent, as shown in Table 2, the final outcome rating is Moderately Satisfactory. 35. Most importantly, even though the outcome prior to restructuring was Moderately Unsatisfactory due in part to the inability to measure results against one of the initial outcome indicators and in part to the overly ambitious nature of another (i.e., that involving the water sector portal), overall the Project was effective in positively changing the previously existing behavior characterized by insufficient policy, technical, and operational coordination and the lack of an integrated approach on the part of the four main federal institutions in the water sectorxxxi. Thus, its outcome is rated Moderately Satisfactory after restructuring. In the process, the project delivered pertinent outputs and, achieved many of its initially intended intermediate and final outcomes.
Table 2. Split Evaluation
Item Before Restructuring After Restructuring Relevance of the Objectives High PDO Efficacy Modest Substantial Efficiency Modest 1. Outcome Rating Moderately Unsatisfactory Moderately Satisfactory 2. Numerical Value of the Outcome Rating 3 4 3. Disbursement (US$ millions) 8.04 8.36 4. Share of Disbursement (%) 49.0 51.0 5. Weighted Value of the Outcome Rating 1.47 2.04 6. Final Outcome Rating Moderately Satisfactory (1.47+2.04 = 3.51)
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E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 36. Not applicable
Institutional Strengthening 37. Institutional strengthening was a substantial part of the Project’s objectives and its accomplishments in this regard were considerable as is documented elsewhere in this Report.
Mobilizing Private Sector Financing 38. Not applicable
Poverty Reduction and Shared Prosperity 39. Not applicable
Other Unintended Outcomes and Impacts 40. One important unexpected possible outcome of the Project, as indicated in para. 27 above, was the recent decision by the new federal administration to consolidate all four of the implementing institutions that participated in and benefited from INTERAGUAS under the command of the new MDR. It is likely that the positive experience of INTERAGUAS contributed to this decision to place the most important Federal Government WRM and WSS responsibilities and activities under a single strengthened Ministry, as highlighted in the Borrower´s reportxxxii“the integrated actions of the Project collaborated or at least were in line with a trend that materialized in the formation of a new Ministry” involving all Project implementing institutions. Furthermore, in the proposed regulatory reformxxxiii of the Basic Sanitationxxxiv sector, an Inter-ministerial Committee for Basic Sanitation (CISB) will be created to facilitate intersectoral coordination for policy setting, planning and financing, which was likely also influenced by the INTERAGUAS logic of integration.
III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME
A. KEY FACTORS DURING PREPARATION
41. Priority of Improved Integration in the Federal water sector and additional Bank support through a TA Project. To build on the successful prior experience with Bank-financed investment lending in the water sector, both the Brazilian Government and the Bank recognized that the main persisting issue constraining the efficiency, effectiveness, and sustainability of federal engagement in the sector was the need to better integrate the cross- institutional management of water resources. The MPOG believed that continued Bank support would be essential for this purpose and that the best way to achieve this common objective would be through a large TA project.xxxv During preparation of INTERAGUAS, moreover, there was considerable enthusiasm on the part of the technical staff of the participating federal institutions for the opportunity to work more closely together in a new operation. 42. Strengths and weaknesses of Project preparation. The Project was prepared in a very collaborative way in which all four implementing institutions participated actively together with Bank technical and operational specialists. That most of these participants were physically located in Brasília was a very positive factor in this
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regard – as was later also the case during implementation – as this permitted constant consultation and interaction among them. Lessons learned from previous Bank operations in the water sector in Brazil and elsewhere were likewise reflected in Project design. There were also several shortcomings, however. The Results Framework, for example, proved difficult to formulate as clear guidance did not exist at the time and this was a new exercise for those involved on both the Bank and the Borrowers sides since most had only previously had experience with the design of investment operations. As a result, the logical links between the PDO indicators were unclear and the same occurred with respect to many of the IR indicators. 42. Project institutional arrangements and financial scale. Project implementation and coordination was to be undertaken through Project Management Units (PMUs) in each of the participating institutions and guided and overseen by a high-level IMC, whose presidency would rotate annually and be supported by a Project Technical Secretariat (PTS) housed in ANA (but distinct from this agency’s PMU). These arrangements proved inadequate for several reasons. As a result, there was poorer coordination among the four PMUs than anticipated, as both they and the PTS initially focused more on operational issues than on promoting strategic coordination among the participating institutions. On the other hand, the Bank loan likewise subsequently proved to have been way too large, especially for a TA operation. The large initial loan size reflected the optimistic mindset of both the Government and the Bank when the Project was appraised. In addition, a major flooding event in the coastal zones of Pernambuco and Alagoas states in 2010 and in the mountainous region of Rio de Janeiro in 2011 led the Government to request a 10 percent increase in the loan amount. It was also assumed that considerable parallel investments in the water sector at the subnational level (with the use of PAC resources) would take place during the latter stages of Project implementation (i.e., after the initial planning and capacity strengthening activities at the federal level had occurred). This expectation was later dashed due to the unforeseen economic/fiscal crisis.
B. KEY FACTORS DURING IMPLEMENTATION
Factors Beyond the Control of the Implementing Institutions and the Bank 43. Macroeconomic downturn and devaluation of the Real. The macroeconomic crisis that began in 2014 was a severe and extended onexxxvi that required the Federal Government to adopt measures to control expenditures in 2015 and beyond. These cuts reduced budgetary resources for all projects through a process known as “contingenciamento” (budget freeze) that sharply restricted both use of the Bank loan and the availability of domestic counterpart resources for externally financed activities,xxxvii hindering implementation of the Bank’s portfolio with the Federal Government for non-Development Policy Loans as a whole, including INTERAGUAS. As a result, the resources available to the implementing institutions with one exception (ANA, see below) were cut back, impeding the participating Ministries from undertaking, or forcing them to scale back, previously planned activities under the Project. All these Ministries -- and especially MMA, which received much smaller annual budget allocations than the othersxxxviii -- were negatively impacted by these measures. A related factor that contributed to the much lower than anticipated loan disbursement levels was the significant devaluation of the Brazilian Real in relation to the US dollar, as mentioned in para. 32 above 44. ANA’s independent funding source. ANA, whose regular budget resources passed through MMA, was unexpectedly granted a large independent earmarked funding source from the hydropower sector in 2010-2011 that was not subject to the contingenciamento.xxxix While this allowed ANA to implement more of its intended work program, it also created a disincentive to utilize the resources associated with the Bank loan. As a result, ANA turned its attention away from INTERAGUAS and reassigned some activities originally expected to be funded by the Project for financing by the alternative source, thereby removing these activities from
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INTERAGUAS. The most important consequences of this were that ANA’s technical priorities during the Project implementation period changed, in the process reducing the scope of its activities envisaged under Component 1 and enhancing its promotion of integrated studies under Component 4. However, this also increased its ability to provide counterpart fund contributions to the Project when the capacity of the other implementing agencies to do so was constrained due to the contingenciamento. This change was formalized during the restructuring. 45. Impeachment of the President and change in administration. The Project was also adversely impacted by the political upheaval associated with the impeachment of President Dilma Rousseff, which led to subsequent changes in the Federal Government.xl Like the ongoing economic-fiscal crisis, this was totally unanticipated at the time the Project was approved. The impeachment process, which began in December 2015 (i.e., between the MTR and the restructuring) and was only finalized two months after the restructuring was formalized in August 2016. The associated changes at the top levels of the Federal Government had a serious additional disruptive effect on Project implementation. MI was the most affected by these changes because not only did its top officials change and internal structure reorganized, but the entire technical staff engaged in INTERAGUAS changed.xli Furthermore, MI was, in fact, restructured twice during project implementation with the second one relocating the PMU from the Executive Secretariat to the Regional Development Secretariat (SDR), which only formally became part of the Project’s implementation arrangements at restructuring.xlii 46. Impact of the droughts. The severe drought in the Northeast, which had persisted since 2012, and unexpected drought conditions and associated water scarcity concerns in the large metropolitan areas in the Southeast, especially São Pauloxliii, in 2014-2015 prompted a shift in the territorial focus of the Project following the MTR. While maintaining the priority given to the São Francisco River Basin, this led to elimination of the initial concern with the Araguaia-Tocantins Basin and incorporation of efforts to strengthen water security for the Southeastern metropolitan areas that had not been part of the original Project design. However, drought- related targets could not be met because of the persisting institutional changes and associated weaknesses in MI. On the other hand, the project generated important products for integrated WRM and water security both for the country as a whole (e.g., the National Water Security Plan and the wastewater reuse study to provide the basis for an action plan to establish a National Reuse Policy) and for the critical São Francisco River Basin (i.e., completion of the ecological-economic microzoning exercise by MMA and other useful strategies and studies by ANA and MI).xliv
Factors Under the Control of the Implementing Institutions and the Bank 47. Borrower commitment and leadership. Despite the considerable obstacles and disruptions to Project implementation caused by the unforeseen factors briefly described above, what most contributed to the ultimate ability of INTERAGUAS to achieve its development objective of greater integration of Federal Government interventions in the water sector was the solid dedication of the managerial and technical staff in all four of the participating institutions. The IMC was especially proactive and effective leading up to the MTR and the associated restructuring due to strong leadership and collaboration among its members from the four participating institutions at the time.xlvMost of the technical specialists in the participating institutions, who, with the exception of those in MI, were engaged in the Project from its preparation through closing, were highly dedicated to the Project throughout implementation despite being housed in four different parts of the Federal Government, which may have had their own agendas. They also benefited and further strengthened their interpersonal ties as a result of a study tour to Spain also with the purpose of seeing how water resources were being managed elsewhere.xlvi 48. The Role of the Bank. This was also a contributing element to the Project’s ultimate success.xlvii Even though there were several co-TTLs from the time of preparation through completion, in most cases they and other
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Project team staff were based in the Bank’s office in Brasília, which permitted the kind of intense guidance, oversight, and “handholding” that an institutionally complex project such as this one required. This was even more the case on account of all the economic/fiscal and political/institutional hurdles that INTERAGUAS had to overcome during implementation. These staff, moreover, had been actively involved in the prior Bank-funded projects in the water sector, both on the WRM and WSS sides, and thus had already established productive working relationships with their Federal Government technical counterparts in all four participating institutions. This engendered both a strong sense of trust and collaboration between the Bank and Borrower personnel involved in INTERAGUAS, which again proved essential in view of all the external “turbulence” and associated changes the Project was required to overcome. Parallel activities supported by the Bank to the benefit of the same institutions and strategic IWRM agenda also played a helpful role.xlviii That both the vast majority of the participating Bank staff and those in all four Federal Government institutions were physically located in Brasília, finally, permitted the Project to move steadily toward achieving its development objective despite all the many unanticipated bumps in the road. Had the Bank not provided strong continuity and dedication in its support to the project, the outcome would likely have been less positive.
IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME
A. QUALITY OF MONITORING AND EVALUATION (M&E)
M&E Design 46. The project’s Results Framework and M&E arrangements were developed in coordination between the Bank and the participating federal institutions, each of which possessed its own monitoring system. Each of the PMUs was expected to be responsible for regular monitoring and evaluation of its activities, and the PTS would consolidate the corresponding progress reports and submit them to the Bank on a semi-annual basis. The outputs of the M&E process were expected to be used to assess component performance and suggest improvements as needed. Annual reports were also to be prepared indicating project achievements, problems, and lessons learned. Evaluations based on the agreed PDO and IR indicators would also occur in advance of the MTR and upon Project completion, and the baseline for these assessments was to be prepared during the first six months of implementation. Achievement of one key outcome indicator was to be determined based on an independent evaluation.
M&E Implementation 47. The above arrangements were not well implemented. Neither the PTS nor the PMUs had M&E mechanisms in place during project implementation. Many of the outcomes and performance indicators contained in the Results Framework agreed at appraisal also needed to be revised and/or replaced at the time of restructuring. In addition, progress reports were not prepared and delivered on a regular basis and those that were delivered were of variable quality. There was also some inconsistency between some of the revised indicators agreed during the MTR and those included in the restructuring paper as well as in subsequent Bank ISRs.xlix Notwithstanding these issues the Borrower prepared an ex-post assessment of the Project and a summary is presented in Annex 5.
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M&E Utilization 48. The original results indicators were used to inform the MTR and, together with the proposed measures to address implementation constraints under the control of the project institutions, formed the basis for the restructuring in June 2016. The revised PDO and IR indicators were then used to monitor implementation progress and results in the months that followed both by the Borrower and by the Bank (i.e., in its successive ISRs starting in September 2016) through the end of the Project. However, as indicated in the previous paragraph, this was not done consistently over time.
Justification of Overall Rating of Quality of M&E 49. The overall rating for M&E is Modest as there were both significant design and implementation issues.
B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE
Environmental and Social 50. Environmental. The Project was classified as Category B for OP 4.10 (Environmental Assessment). The Natural Habitats (OP 4.04), Pest Management (OP 4.09), Forests (OP 4.36), and Safety of Dams (OP 4.37) policies were also triggered. The different products incorporated safeguards as appropriate. For example, the State Water Resources Plans, the National Water Security Plan (PNSH), the National Dams Restoration Plan (PLANERB) as well as the Ecological-Economic MarcoZoning of the São Francisco Basin and the Design of the Piancó River Branch of the São Francisco Basin incorporated all the safeguards. An Environmental Management Framework (EMF) was prepared to ensure that the studies and plans financed by the Project would incorporate these safeguards, the required consultations were held with relevant stakeholders and future affected communities, and all relevant documents were publicly disclosed. Bank supervision missions provided training to participating agency staff on Bank safeguards followed by a workshop to discuss ongoing activities, giving special attention to water resource security, safety of dams, irrigated agriculture, and revitalization of the São Francisco River basin.l Training was also given on the application of Strategic Environmental Assessment (SEA). Additional guidance was provided during the MTR and again when the Project was restructured to cover the revised and new activities introduced at that time. Environmental safeguard compliance was consistently rated Satisfactory throughout implementation and no issues were reported. 51. Social. The Indigenous Peoples (OP 4.10), Physical Cultural Resources (OP 4.11) and Involuntary Resettlement (OP 4.12) policies were also triggered at appraisal. The different products mainly incorporated OP 4.12 and OP 4.11, such as the National Water Security Plan the National Dams Restoration Plan (PLANERB) as well as the Ecological-Economic MarcoZoning of the São Francisco Basin. A Social Management Framework (SMF), including an Indigenous Peoples Planning Framework and a Resettlement Policy Framework, was elaborated during project preparation. Throughout implementation, the Project was also consistently rated Satisfactory with respect to social safeguards performance. Supervision missions were carried out on a regular basis and Terms of Reference for Project activities were assessed by the social development specialists assigned to the Project. All agencies involved in Project implementation nominated focal points to screen the potential downstream social impacts of the TA activities and ensure compliance with Bank policies and the project’s social, as well as environmental, safeguards instruments. Although there was some rotation of the technical staff assigned for these tasks, the agency focal points took part in several training sessions on social safeguard issues. The social risk rating of project activities was “Moderate” and there were no compliance issues with respect to social safeguard requirements during implementation.
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Fiduciary 52. Financial management (FM). All FM supervision missions rated Project performance Moderately Satisfactory. Initially there were delays in adjusting to the financial management model of the Integrated System of Financial Administration to generate project Interim (unaudited) Financial Reports (IFRs). However, this improved during implementation. Although the experience of the PMU (in ANA) was also an important factor to ensure that acceptable FM arrangements prevailed throughout Project implementation and that agreed upon action plans were generally carried out, this was not enough to improve the disbursement rate. This was especially the case during the last years of the Project due to the lack of adequate counterpart budget allocations, which reflected the fiscal constraints imposed by the Federal Government, thereby also affecting disbursement of the Bank loan. The FM risk rating was nonetheless considered Low throughout the life of the Project and, except for 2014, Audit reports were submitted on time. All such reports received unqualified/unmodified audit opinions and all IFRs were delivered in a timely fashion and considered acceptable. No instances of ineligible expenses were identified. 53. Procurement. Overall, procedures with respect to procurement were classified as Moderately Satisfactory. Procurement was carried out with the support of the Inter-American Institute for Cooperation on Agriculture (IICA) for all activities for MI and MCid and for goods, services, and selection of individual consultants for MMA and ANA. During implementation, there were delays in formalizing the arrangements between IICA and the participating federal institutions.li While some processes were quick and done well, others were slow and experienced operational difficulties such as in preparing Terms of Reference, assessing technical proposals, and estimating costs for consultant services based on Bank procurement requirements. The lack previous experience with Bank procedures for selection of consulting services was also an issue at first but, over time, problems were related more to administrative aspects and the quality of technical documents than with team capacity. Despite these shortcomings, which required considerable Bank support, on balance, procurement was acceptable.
C. BANK PERFORMANCE
Quality at Entry 54. Project design incorporated lessons from the Bank previous operations in the water sector with the Federal Government (PROÁGUA, PMSS II, PROSANEAR) as mentioned under para 4. The positive experience under these previous Projects helped in the definition of the scope, size and implementation arrangements. At the same time, the Bank and the implementing institutions struggled to develop the original Results Framework for the Project, as this was the first time this had been attempted for a large TA project for the water sector in Brazil. As a result, it later needed to be substantially reformulated following the MTR. The Project was also clearly over-dimensioned in financial terms. A TA loan of more than US$107 million was unprecedented for Brazil, especially in view of the limited implementation capacity for TA activities on the part of the participating institutions. As recognized at the restructuring, the extent of this weakness was underestimated at Appraisal even though it had been identified as a Substantial risk, the risk of slow disbursement was only assessed as “Moderate” in the PAD (pp. 13-14). In fairness, however, the initial design had assumed that, during the latter phases of implementation there would be much greater expenditures of Project resources at the subnational level than proved to be the case.
Quality of Supervision 55. Bank supervision was largely positive. During much of the implementation period, the Bank team played a very proactive role in helping to move the Project ahead, which became necessary due to the weaknesses in Project coordination on the part of the PTS and the major personnel and structural alterations in MI that followed the
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change of federal administrations after the impeachment of the President in August 2016. The Bank team likewise played an important role in the restructuring although this took considerable time to negotiate with the implementing institutions and resulted in a cancelation of less than the Bank had recommended. In addition, the study tours organized by the Bank both for IMC members and Project technical staff were highly instrumental in improving inter-institutional coordination and collaboration. While there were several TTLs, the co-TTL and several key staff members were based in the Brasília office and participated actively and consistently in the Bank project team from early preparation through closing. This greatly facilitated tenuous communication with the implementing institutions and IICA, all of which are also located in Brasília. The essential guidance and assistance provided by the Bank team were universally praised by senior representatives of all the participating institutions interviewed for this ICR as well as during the closing high-level meeting and subsequent ex-post “reflection” workshop in September-October 2018. The supervision missions were appropriately staffed and carried out on a regular basis, and reporting (i.e., Aide Memoires and ISRs) was candid and comprehensive.
Justification of Overall Rating of Bank Performance 56. Overall, Bank performance is rated Moderately Satisfactory. Despite several quality of entry shortcomings, the Brasília-based Bank team played a crucial role throughout preparation and supervision including in the Project restructuring, which was essential to keep it on track during the later phases of implementation. This steady collaboration and assistance through both periodic supervision missions and continual day-to-day support was highly appreciated by the Borrower.
D. RISK TO DEVELOPMENT OUTCOME
57. The risk to development outcome is considered Moderate. Based on their experience under this Project, at the time of Project closing the participating Federal Government institutions clearly recognized the advantages and benefits of working in a more coordinated and integrated fashion in the water sector. The behavioral change that the Project sought to induce, in fact, has occurred. This is also reflected in the recent institutional consolidation in the federal water sector, therefore, the WRM institutional challenges looking forward will be internal coordination within MDR, which the new Water Security Secretariat should help to meet, and external articulation with other stakeholders such as Ministries of Agriculture (MAPA) and Mines and Energy (MME). In addition, the new authorities in charge of MDR have already announced the intention to go forward as soon as possible with implementation of several plans that resulted from the project, especially the Regulasan (i.e., the TA provided under INTERAGUAS to state and municipal water supply regulators to improve their functions as required by law) and the national plans for water security and dam rehabilitation. MDR is considering a continued partnership with the Bank in water security and basic sanitation, following INTERAGUAS. TA and financing are also being considered, depending upon fiscal conditions and adequate instruments. ANA is likewise having conversations with the Bank to set a TA instrument to develop the new roles ANA may assume if the executive order on basic sanitation is approved by Congress.
V. LESSONS AND RECOMMENDATIONS
58. This Project is very rich in lessons, some of the most important of which are briefly discussed below complemented by others under Annex 10. 59. Despite facing numerous unforeseen implementation challenges, a TA project can simultaneously and successfully generate valuable products, strengthen institutional capacity, boost inter-institutional
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cooperation, and promote more integrated actions. INTERAGUAS had to weather severe macroeconomic-fiscal and political-institutional and associated budgetary and administration changes that were not anticipated at appraisal and beyond the control of either the federal agencies involved or the Bank. Despite this, it managed to deliver very useful technical studies and plans, including those for improved water security and dam safety, and to provide training and other capacity building support to the participating institutions and many of the agencies with which they interact at the subnational level. Most importantly, it played an essential role in transforming the traditional way in which these federal institutions worked (i.e., largely totally independently of one another) to a much more collaborative and integrated – and thus more effective – approach, which may also have substantially contributed to the new Federal Government’s decision to substantially reorganize its institutional framework for the water sector through the establishment of a new MDR, which has brought all four implementing agencies together under a single command. 60. A project of a complex inter-institutional nature needs to have both consistently strong internal leadership and a coordination mechanism (IMC) that is structurally able to effectively guide, oversee, and to the extent possible control the activities of the implementing agencies involved. The project experience also revealed that under strong leadership, as was the case during the two years when the MTR and restructuring occurred, the IMC could play a very important role in terms of getting the project “on track.” Both elements, therefore, are important. 61. Both the Borrower and the Bank need to be realistic in terms of what is likely to be implemented and the associated costs of these activities when agreeing to the financial size of a TA loan. The project was clearly way to large in financial terms for an operation whose activities consisted purely of TA. This proved to clearly be the case ex-post as its implementation was clearly constrained by the exogenous shocks cited above. However, even given the appraisal assessment of Substantial institutional risks, which subsequently were recognized as being even greater than initially anticipated, the original loan amount was excessive. It is also possible that a large loan amount (and sub-amounts for each of the institutions involved) was necessary to induce Ministries such as MCid and MI to agree to participate (i.e., act as a “carrot”) in a multi-ministry TA operation primarily aimed at boosting their coordination with one another and promoting greater integration of their traditionally more autonomous activities in a sector in which they had shared responsibilities. However, the downside risk in terms of the utilization of such a large loan amount for a TA project was clearly underestimated at appraisal and even at the time of the restructuring four years into implementation when just US$8.04 million had been disbursed and the Brazilian Real had already been sharply devalued against the US dollar as a result of the declining national economic situation that was expected to persist. 62. Well-designed study tours can generate numerous benefits for project performance, especially when multiple implementing agencies are involved. Not only did study tours demonstrate alternative ways of addressing water scarcity, they also provided useful models for how institutions in and across different levels of public administration could effectively work together toward this end. In addition, they created opportunities for officials and staff from different Ministries engaged in the same sector to get to know each other and work together outside of their usual daily institutional settings and routines. This allowed new and stronger personal relationships among key stakeholders to develop as well as a firmer collective commitment toward a shared objective, in this case to pursue a better coordinated and more integrated approach to WRM at the Federal Government level. According to several of the participants in these events, they were instrumental in helping to improve project performance in the face of serious budgetary and other challenges both prior to and following the MTR as well as the additional political upheaval and institutional change that occurred after the formal restructuring was approved. 63. In projects involving more than one autonomous Ministry or agencies, the Bank should insist that an entity
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with general authority and functions play a proactive role in its coordination. Both MPOG and the Bank recognized that the most significant persisting need in the federal water sector was to better coordinate and integrate the activities of the three most important Ministries with responsibilities for different parts of the sector together with ANA. Although MPOG recognized the potential weakness of the coordination structure that was proposed for the Project, it was not willing to take on direct responsibility for this function. Had it done so, given its ministerial status and responsibility for planning and coordinating overall federal government development programs, this might well have permitted the Project to avoid some of the coordination and implementation issues it faced, although many of these were due to unanticipated factors beyond the control of the implementation institutions. This was also one of the principal lessons drawn in the Borrower’s ICR, which pointed to the need for objective leadership to coordinate a program such as this one and to be clearly responsible at the end of the day, both for its everyday activities and its overall results.lii 64. Project procurement and financial management responsibilities should be clearly defined up front, and any needed capacity building activities carried out during preparation so that this will not be an impediment to project implementation. One reason for the implementation delays experienced by the present project was its complex and evolving procurement arrangements. The procurement arrangements foreseen in the PAD did not occur as foreseen during the initial phase of implementation. Problem could have been avoided had the Bank insisted from the beginning that only a single institution be hired for this purpose as stated in the PAD. 65. Continuity of the Bank project team to the extent possible over the life of the project facilitates the provision of needed guidance, assistance, and oversight for a complex project, which is especially important when multiple institutions are involved. In addition, the geographic co-location (i.e., Brasília in the present case) of both the implementing institutions and much of the Bank staff engaged in project preparation, appraisal, and supervision also facilitates communication with and among all parties involved even when there are significant personnel changes over time on one or both sides. Technical assistance and institutional capacity building projects, like investment operations, need to be made ready for implementation to the greatest extent possible during preparation and appraisal and in any event before loan effectiveness. This was not the case with INTERAGUAS. Together with the underestimation of the weakness of the implementing institutions for this type of project (and its ambitious goals)liii, lack of readiness for implementation contributed to the delay experienced during its initial post-approval years and which continued to require significant Bank technical and operational (see the next recommendation) assistance throughout implementationliv. For the present project, this was facilitated by the co-location of Bank specialists and the implementing agencies in the same city, but this is frequently not the case in Brazil where most of Bank operations are with specific states and not the Federal Government or in mand many other client countries.
.
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ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS Click here to enter text.
A. RESULTS INDICATORS
A.1 PDO Indicators
Objective/Outcome: To improve the coordination and strengthen the capacity among key federal institutions. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Interministerial Mgmt. Text Committee not Committee Committee Committee Committee , at the Executive established yet. established and established and established and Sector Secretariats or functioning, meeting functioning, meeting maintained over the Directors (ANA) level, twice a year at the twice a year at the life of the project, established and functioning Executive Secretariats Executive Sector meeting on average regularly with all institutions level. Secretariats or every eight months. that participate in Interaguas. Directors (ANA) level.
12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): The following original indicator was revised at restructuring: "Inter-ministerial management committee, at the Secretariat level, for water sector programs established and functioning regularly* with all institutions that participate in Interáguas. (*Functioning regularly means at least 2 meetings per year at Secretariat level.)”. The revised target was met except for all but the final year, when project implementation was well-advanced following the Mid-Term Review (MTR) and restructuring at which time the Committee had been very proactive.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion
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Percentage of Project Number 0.00 25.00 45.00 amount executed in water sector integrated actions 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. The target was exceeded by 80 percent. This reflects the greater share of actual project costs for integrated actions in the water sector. This percentage includes the actual budget for all products that were produced in an integrated manner under the project, more specifically all those in Component 4 plus the Water Resources Management Plan for the state of Goiás and Hydrogeological Evaluation of Karstic and Fissure-Karstic Aquifers in the São Francisco Hydrographic Region. The primary products of Component 4 were the National Sewage Atlas, the National Water Security Plan, the reuse study, the Ecological-Economic (MEE) Macro Zoning of the São Francisco River basin, the Piancó Branch study, the diagnostic studies for the National Wastewater Plan, and two studies (one on cost and the other on renewable energy) related to the Integrated Program for the São Francisco (PISF). The following original indicator was dropped at restructuring: “25 water sector activities and projects implemented by institutions participating in the Project included in the GoB’s Multiyear Plan (PPA 2012-2015) following an integrated approach, as attested by an independent evaluation”.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion A water portal with access to Text Not portal Functioning and Functioning and A project website was sector-specific information available to the public Available to the Public created and is systems, studies, and functioning housed by analytical work is the National Water implemented and available to Agency including the the public. main project results. The webpage is being updated to include links to the different water related systems and databases under the Ministries of
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Environment, Cities and National Integration.
12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): The following original indicator was revised at restructuring: “A water indicators portal connecting sector-specific information systems, studies, and analytical work is implemented and available to the public”. The revised target was partially met at the time of project closing but as of April 1, 2019 still had not been completed. As of the present time, the website only contains basic project information and some project outputs. See http://interaguas.ana.gov.br
A.2 Intermediate Results Indicators
Component: Water, Irrigation and Disaster Risk Management
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Integrated technical planning Text Technical team with Unit Functioning Unit Functioning Unit Functioning unit functioning. partial dedication. integrating other integrating other integrating other technical areas and technical areas and technical areas and established within the established within the established within the Ministry structure. Ministry structure. Ministry structure.
12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): Target achieved. This action entailed establishment and functioning of the INTERAGUAS Project Management Unit (PMU) in the Ministry of National Integration (MI), which until February 2017 was officially linked to the Executive Secretariat and after that time to the Regional Development Secretariat (SDR) of this Ministry.
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Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Technical Staff in the areas of Number 0.00 100.00 100.00 10.00 Hydraulic Infrastructure, Irrigation, Civil Defense and 12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018 Regional Development have been trained
Comments (achievements against targets): The following original Indicator was revised at restructuring: “Technical Staff in the areas of Hydraulic Infrastructure, Irrigation and Civil Defense have been trained”. 10 percent of the revised target achieved. It was not possible for MI to increase this total because of legal restrictions for the payment for training, per diems, and transport for civil servants within an international technical cooperation project, which were imposed as part of the budgetary restrictions in the federal public sector due to the persisting fiscal crisis.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Technical Hydraulic Text 0 4 4 1 Infrastructure, Irrigation, Civil Defense and Regional 12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018 Development manuals established.
Comments (achievements against targets): The following original indicator was revised at restructuring: “Technical, operational and Hydraulic Infrastructure, Irrigation and Civil Defense* manuals established. (*Civil Defense is responsible for risk and disaster management activities)”. 25 percent achieved. It was originally expected that MI would produce a manual for each of its four Secretariats, but only the one for the Secretariat of Civil Defense (SEDEC) could be prepared in practice. Because of changes in priorities within MI due to turnovers in the senior positions in the Ministry, it was not possible to do the other three. Having said that, SEDEC was able to develop different manuals and
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guidelines for the Civil Defense sector.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Strategic Actions Plan for Text no Plan Plan established and Plan completed but Rehabilitation of Federal under implementation not under Dam Safety established and implementation under implementation 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. Target 50 percent achieved as even though the plan had just been completed by the time the project closed, it was not yet possible to start implementation. The MI informs that because of the large number of dams involved, considerable time will be required for them to all be regularized – i.e., approximately 5-10 years in accordance with budget availability. However, it is expected that plan implementation will begin this year, which is also the beginning of a new Presidential administration, because it remains a high federal government priority. The recent (January 2019) extremely tragic dam break in Brumadinho, Minas Gerais, will undoubtedly result in added public and political urgency for the new administration to proceed with implementation of this plan. The following original indicators were dropped at restructuring: “Monitoring and Evaluation System for Water Infrastructure Projects established and under implementation”; and “Information System on dams (water supply, irrigation, flood control) infrastructure implemented.”
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion National Irrigation Plan Text No Plan Plan Completed Not started prepared and completed 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. Target was not achieved. It was not possible to proceed
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with preparation of this plan due to the complexity of the task and lack of specialized staff in MI, as well as the lower internal priority given to irrigation within the Ministry when the National Secretariat of Irrigation was extinguished in early 2017 following the appointment of a new Minister and other senior officials. The following two original indicators were dropped at restructuring: “Mapping of areas with potential to irrigated agriculture completed.” “Plan to improve the dynamism of irrigation perimeters prepared, completed and approved with short, medium and long-term solutions that guarantee the feasibility of technical, economic, social and environmental actions.”
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion States Irrigation Plans Number 3.00 7.00 4.00 completed (cumulative) 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. At that time, three state irrigation plans (for Minas Gerais, Rio Grande do Sul, and Tocantins) had already been completed not utilizing project resources, while four others were under negotiation to be financed by INTERAGUAS. However, in practice only one of these (for the Federal District) was completed during the project implementation period, again due in part to the above-mentioned political changes in the Ministry jn 2017. The following original indicator was dropped at restructuring: “Irrigation technical and operational rules established”.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Rural water and sanitation Text Not established Technological and Not started program improved including institutional proposals technology and management for rural water supply innovations and sanitation prepared
30-Jun-2015 31-Oct-2018 31-Oct-2018
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Comments (achievements against targets): This indicator was added at restructuring. The target was not achieved. This task, which was agreed at the time of the restructuring, like others under the responsibility of MI, fell victim to the significant institutional issues that occurred as a result of the change in its senior management and internal structure in early 2017. The following three original indicators were dropped at restructuring: “Federal Civil Defense System reorganized (institutional, procedures, instruments).” “CENAD expanded and improved." and “15 States teams trained in risk and disaster management.”
Component: Water Supply and Sanitation
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Regulators supported by the Text 10 million WSS service Regulators represent Regulators represent Project represent 12 million users 12 million WSS service 36.2 million USS WSS service users with users. services users. access to services which are formally regulated according 30-Jun-2015 31-Oct-2018 31-Oct-2018 to Law 11.445
Comments (achievements against targets): The following original indicator was revised at restructuring: “Regulators supported by the Project represent 10 million WSS service users with access to services, which are formally regulated according to Law 11.445” Target exceeded by 201 percent.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion WSS service providers Text 10 million users. 12 million users 20 million users supported by the Project, which are implementing non- 30-Jun-2015 31-Oct-2018 31-Oct-2018 revenue water management and energy efficiency
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programs, supplying services to at least 12 million users
Comments (achievements against targets): The following original indicator: “WSS service providers supported by the Project, which are implementing non-revenue water management and energy efficiency programs, supplying services to at least 10 million users”. Target surpassed by 66.7 percent.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion The WSS National Info Text SINISA functioning SINISA functioning SINISA functioning The current WSS System (SINISA) with WSS subsectors with WSS, Solid with WSS, Solid National Information implemented including all its and operational Waste, Urban Waste, Urban System (SNIS) was subsectors (potable water module Drainage subsectors Drainage subsectors improved, making supply, sanitation, solid and operational and and operational and improvements in the waste, and drainage) and institutional modules institutional modules WSS and Solid Waste modules and functioning. modules and implementing the urban drainage module. SNIS is now in compliance with the requirements of the National Basic Sanitation Law, comprising the 4 subsectors – water supply, sanitation, solid waste and drainage, the information is available on-line at:
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http://www.snis.gov.b r/. In addition, MCid is developing SINISA to further upgrade the system. Some improvements were also funded by the Project.
12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): Target fully achieved. Due to the improvements introduced under the project SNIS is now in compliance with the requirements of the National Basic Sanitation Law, comprising the 4 subsectors – water supply, sanitation, solid waste and drainage, the information is available on-line at: http://www.snis.gov.br/. In addition, MCid is developing SINISA to further upgrade the system.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Service providers, users of Number 12.00 25.00 33.00 the Sanitation Integrated Management System â 30-Jun-2015 31-Oct-2018 30-Oct-2018 GSAN, benefitted by the System s upda ng and revision
Comments (achievements against targets): This indicator was added at restructuring. The target was exceeded by 24 percent. The state and local government service providers benefitted in this regard are located in numerous states including Alagoas, Amazonas, Bahia, Maranhão, Mato Grosso, Paraiba, Pará, Pernambuco, Piauí, Rio Grande do Norte, Rondônia, Roraima, Santa Catarina, São Paulo, with the largest number (15) situated in Santa Catarina. A complete list is available in the project files. The following original indicator was dropped at restructuring:
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“Operational manuals of federal WSS programs revised to incorporate coordination with water resources management policy and plans”.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of water utilities Text 10 30 35 that the Project is supporting. (Core Indicator) 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. Target exceeded by 13.3 percent. In addition to the 32 state and municipal water and sanitation utilities mentioned in connection with the previous indicator, the WSS utility in Bahia was added from the water loss project and those in São Paulo and the Federal District from the reuse project.
Component: Water Resources Management
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Professional specialists, Text 91 400 120 651 members of the National Water Resources System 12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018 (SINGREH) trained*. (*Through training activities, courses, technical visits carried out by the Project).
Comments (achievements against targets): The following original indicator was revised at restructuring: “400 Professional specialists in the national and state water system that have been trained (e.g., water agency staff, national and state council’s members, river basin committee’s members)”. The revised target (120) was greatly surpassed (by 442 percent) and the original target was exceeded by 10.5 percent.
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Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Water resources Number 6.00 14.00 14.00 management institutions supported by the Project 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. The target was achieved. The 14 institutions supported were the following: (i) at the federal level: MMMA, ANA, the National Water Council (CNRH), and the Geological Service of Brazil (CPRM); (ii) at the state level: the Secretariats and Departments in change of water resources management in Bahia, Goiás, Minas Gerais, Paraná, and São Paulo; and (iii) the municipalities of Maceió, Alagoas; Imperatriz, Maranhão; Londrina, Paraná; Nova Friburgo, Rio de Janeiro; and Palmas, Tocantins. Those institutions were supported through different actions implemented. The following two original indicators were dropped at restructuring: “13 state water agencies and 4 federal river basin water agencies that are properly functioning, applying the management instruments established by law (cumulative) and “13 Water agencies reasonably well staffed (cumulative)”.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion National Water Resources Text First revision Second revision Second revision Plan revised (second completed completed and completed and revision) and adopted. adopted adopted
30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. The target was fully achieved as the planned second revision was completed and adopted. The following original indicator was dropped at restructuring: “Information system established and functioning to monitor and evaluate the implementation of the National Water Resources Plan”.
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Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Water resources planning Number 2.00 6.00 6.00 instruments improved 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. The target was fully achieved. More specifically, under the project the Ministry of Environment produced: (i) methodological roadmap to establish municipal environmental zoning; (ii) analysis of subsurface waters in the state of Paraná; and (iii) the Water Resource Management Plan for Goiás; and ANA produced: (iv) the National Water Security Plan; (v) National Sewage Atlas; and (vi) the Hydrogeological Evaluation of Karstic and Fissure-Karstic Aquifers in the São Francisco Hydrographic Region. The following original indicators were dropped at restructuring: “2,400 kilometers of rivers being regularly monitored for water quality though the National Water Quality Monitoring Program. (additional)”; and “Volume (8 billion m3 per year) of bulk water being invoiced (and 50% percentage paid of that volume) in the country, excluding power generation”.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of critical basins of Number 0.00 23.00 23.00 special interest* to the countryâ s water resources 30-Jun-2015 31-Oct-2018 31-Oct-2018 management with qualitative and quantitative water balance finalized for improved water resources management. (*Critic
Comments (achievements against targets): This indicator was added at restructuring. The target was 100 percent achieved. The critical basins are identified in ANA Portaria No. 62/2013 and the project focused on 23 of them that are mainly in the South Atlantic, Southeast Atlantic (including several stretches of the Paraíba do Sul River Basin), East Atlantic, Paraná, São Francisco, Araguaia-Tocantins, and Uruguai
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hydrographic regions.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Studies finalized contributing Number 0.00 3.00 3.00 to improve the analysis of water rights concession 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. The target was fully achieved. These studies were produced by ANA, specifically: (i) criteria definition to protect buildings and infrastructure against backwater effects due to flooding in reservoirs ii) a study to improve the water right concessions in cases of uncertainty scenarios of water availability in the future (due to climate change); and (iii) a study to improve the water right concessions in situations of water availability finished.
Component: Inter-sectoral Coordination and Integrated Planning
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Guidelines for drought Text No Guidelines Guidelines developed Not started preparedness and response developed within MI 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. Target was not achieved. Non-delivery of this product was due to the same institutional disruptions mentioned above in relation to other activities that were to have been undertaken by the Ministry of National Integration (MI).
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion
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National and/or regional Text 0 3 2 (National Sewage planning instruments Atlas completed; and developed in an integrated National Water manner Security Plan)
30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. Target partially (33.3 percentage) achieved. The National Sewage Atlas was completed by the time of project closing and the National Water Security Plan, which is a high priority of the new federal administration, will be launched in April 2019 as the flagship report of the new Government Administration. The following three original indicators were dropped at restructuring: “A decentralized technical and operational structure established and functioning in the São Francisco river basin.” “The institutional coordination arrangement in the Araguaia-Tocantins river basin is functional and strengthened.” “100 staff trained in the two river basins.”
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Action strategies proposals Text 0 2 1 prepared in the following themes: (i) reuse of treated 30-Jun-2015 31-Oct-2018 31-Oct-2018 effluents; and (ii) water supply in the surroundings of large water infrastructure works
Comments (achievements against targets): This indicator was added at restructuring. Target 50 percent achieved. The first of these plans (i.e., reuse) was implemented but the second was not due to changes of priorities within MI.
Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at
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Target Completion Metropolitan regions with Text 0 6 0 water supply integrated planning developed 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. Target not achieved as, due to the large number of ongoing activities within ANA, it proved impossible to bid and elaborate the necessary studies during the project implementation period. The following original indicator was dropped at restructuring: “Management models for WSS services and operation and maintenance of water infrastructure defined and established in 10 systems properly regulated as reported by the relevant ministries”.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Ecological-Economic Macro Number 0.00 1.00 1.00 Zoning of Sao Francisco River Basin completed 30-Jun-2015 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): This indicator was added at restructuring. Target fully achieved. Under coordination of MMA, this product was generated with the participation and cooperation of numerous federal government agencies and states as well as the Hydrographic Basin Committee for the São Francisco River (CBHSF), and the oversight of two federal commissions: (i) the Coordinating Commission for Ecological-Economic Zoning of the National Territory (CCZEE); and (ii) the Brazil ZEE Consortium, both established by federal decree on December 28, 2001. The following original indicators were dropped at restructuring: “Impact evaluation is tested on a pilot basis and reports published”; “A water indicators portal connecting sector-specific information systems, studies, and analytical work is implemented and available to the public and functioning as evidenced by online data for the São Francisco river basin”.
Component: Project Management, Monitoring, and Evaluation
Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at
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Target Completion Progress reports, financial Number 0.00 10.00 14.00 38.00 management and audits of the program prepared 12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): The following original indicator was revised at restructuring: “10 quarterly, semiannual, and yearly progress reports, financial management, and audits of the program. (cumulative)”. This revised target was not estimated correctly at the time of the Mid-Term Review (MTR) and, in fact, should have been 14 progress reports, 7 audit reports, and 27 financial management reports or 48 altogether. Thus, the actual number achieved at completion represented 79.2 percent of what should have been the target and was composed of 5 progress reports (not in compliance with the loan agreement), 6 audit reports, and 27 financial management reports.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Seminars, workshops or Text 0 10 14 19 technical meetings held (cumulative). 12-Jul-2011 30-Jun-2016 31-Oct-2018 31-Oct-2018
Comments (achievements against targets): The following original indicator was revised at restructuring: “10 seminars and workshops held (cumulative)” and original target: “10 in 2016” Revised target exceeded by 35.7 percent. A complete list of these events is available in the project files.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of PMUs Number 10.00 28.00 24.00 coordination meetings (cumulative) 30-Jun-2015 31-Oct-2018 31-Oct-2018
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Comments (achievements against targets): This indicator was added at restructuring. This revised target was 85.7 percent achieved. The shortfall occurred mainly in the two years (2016-2017) following the restructuring due to a lack of coordination and decline in interest on the project on the part of some of the participants.
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B. KEY OUTPUTS BY COMPONENT
1. Inter-ministerial Management Committee, at the Executive Secretariat level, for water sector programs established and functioning regularly with all institutions that participate in INTERAGUAS. 2. 25 water sector activities and projects implemented by institutions PDO Outcome Indicators (original) participating in the Project included in the GoB’s multi-year plan (PPA) for 2012-2015 following an integrated approach. 3. A water indicators portal connecting sector-specific information systems, studies, and analytical work is implemented and available to the public. 1. Inter-ministerial Management Committee, at the Sector Secretariats of Director (ANA) level, established and functioning regularly with all institutions that participate in INTERAGUAS. 2. Percentage of Project amount executed in water sector integrated PDO Outcome Indicators (revised, June 2016) actions. 3. A water indicators portal with access to sector-specific information systems, studies, and analytical work is implemented and available to the public. 1. Diagnosis and Evaluation of National Water Resources Plan. 2. Water Resources Plan for Goiás State. 3. Subterranean Water Analysis for Paraná State. 4. Evaluation of ANA’s training actions for SINGREH. Component 1 (Water Resources Management) 5. Hydrogeological Assessment of the Karstic and Fissure-Karstic Aquifer Systems in the São Francisco Hydrographic Region. 6. Quantitative and Qualitative Modeling of River stretches in basins considered critical.
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7. Development of methodology to estimate the administrative costs of Delegate Entities ‘agências delegatárias’ of Water Agency functions. 1. National Dams Restoration Plan (PLANERB). 2. New Manuals for Protection and Civil Defense. Component 2 (Water, Irrigation, and Disaster Risk Management) 3. Master Plan for Irrigated Agriculture in the Federal District. 4. Survey of capacity building options (demand and supply) related to rural water management. 1. TA for the Basic Sanitation Regulations. 2. Com+Agua 2: Reduction of Water Losses and Efficient Use of Component 3 (Water Supply and Sanitation) Electrical Energy Management Project. 3. Auditing and Certification of Information Regarding Sanitation. 1. Ecological-Economic MacroZoning of the São Francisco Basin. 2. Piancó River Branch of the Integration of the São Francisco Basin. 3. Renewable Energy in the Integration of the Sao Francisco Basin. Component 4. (Intersectoral Coordination and Integrated 4. National Water Security Plan (PNSH). Planning) 5. Action Plan Proposal to stablish a National Reuse Policy. 6. National Sewage Atlas: Depollution of Water Basins via Urban Sewage Treatment.
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ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION
A. TASK TEAM MEMBERS
Name Role Preparation Manuel Contijoch Task Team Leader Marcos T. Abicalil Co-Task Team Leader Paula Freitas Operations Analyst Mark Lundell Sector Leader Sameh Wahba Sector Leader Jennifer Sara Sector Leader Joaquin Toro Senior Disaster Management Specialist David Michaud Senior Water Supply and Sanitation Specialist Flavio Chaves Operations Analyst Eric Lancelot Transport Engineer Leopoldo Montanez Senior Energy Specialist Frederico Rabello Procurement Specialist Susana Amaral Financial Management Specialist Eduardo França Financial Management Specialist Gunars Platais Senior Environmental Specialist Jason Jacques Paiement Social Specialist Consultant Isabella Micali Drossos Senior Counsel Catarica isabel Portelo Senior Counsel Julia Tierney Junior Professional Associate Lara Chinarro Junior Professional Officer Michele Martins Team Assistant Geise Santos Program Assistant Supervision/ICR
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Erwin de Nys Task Team Leader Thierry Davy Task Team Leader Marcos T. Abicalil Task Team Leader Paula Pedreira de Freitas de Oliveira Task Team Leader Frederico Rabello Procurement Specialist Sinue Aliram De Souza Procurement Specialist Susana Amaral Financial Management Specialist Alberto Coelho Gomes Costa Social Specialist Carolina dos Santos Team Assistant Carla Zardo Program Assistant Michele Martins Program Assistant Clarisse Torrens Borges Dall Acqua Environmental Specialist Carmen Molejon Quintana Water Resources Management Specialist
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B. STAFF TIME AND COST
Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY09 19.990 88,164.65 FY10 44.973 218,136.66 FY11 32.325 185,411.99 FY12 3.613 31,383.10
Total 100.90 523,096.40
Supervision/ICR FY12 21.098 265,485.88 FY13 49.392 185,893.21 FY14 75.011 394,537.96 FY15 61.181 356,864.27
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FY16 116.662 446,827.26 FY17 50.164 233,408.90 FY18 26.987 116,462.67 FY19 10.808 84,218.31 Total 411.30 2,083,698.46
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ANNEX 3. PROJECT COST BY COMPONENT
Table 3a. Distribution of Project Cost by Component
Amount at Approval Actual at Project Percentage of Approval Components (US$M) Closing (US$M) (%) Water Resources Management 44.22 4.82 10.9 Water, Irrigation, and Hazard 40.73 2.82 6.9 Management Water Supply and Sanitation 32.44 5.35 16.5 Intersectoral Coordination and 20.96 6.74 32.1 Integrated Planning Project Management, M&E 4.49 0.67 14.9 Total 143.11* 20.40 14.3 *Includes US$ 0.268 front end fee
Table 3b. Distribution of Loan Resources by Component Before and After Restructuring
Original Amount Original Revised Amount Revised Component (US$ million) Share (%) (US$ million) Share (%) Water Resources Management 33.14 31.0 6.64 10.4
Water, Irrigation, and Hazard Management 30.53 28.5 16.51 25.9
Water Supply and Sanitation 24.31 22.7 17.16 26.9 Intersectoral Coordination and Integrated Planning 15.71 14.7 23.08 36.2 Project Management, M&E 3.36 3.1 0.39 0.61 Total 107.05 100.0 63.78 100.0
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Table 3c. Distribution of the Current Loan and counterpart resources implemented by component
Counterpart Loan Amount Total (US$ Component % loan Funds (US$ % counterpart million) (US$ million) million) Water Resources 2.02 42% 2.80 58% 4.82 Management Water, Irrigation, and Hazard 2.12 75% 0.71 25% 2.82 Management Water Supply and Sanitation 5.09 95% 0.25 5% 5.35 Intersectoral Coordination 3.62 54% 3.12 46% 6.74 and Integrated Planning Project Management, M&E 0.53 79% 0.14 20% 0.67 Total 13.38* 66% 7.01 34% 20.40 *The total Loan amount executed differs from the final figure of US$16.4 million as a result of the different exchange rates used through the disbursements and documentation of expenses periods. Most of the Project expenses were made in Brazilian Reais.
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ANNEX 4. EFFICIENCY ANALYSIS
1. No economic-financial assessment was presented in the PAD. The main text of the PAD (para. 42, p. 16) limited itself to affirming only that “much of the analysis to be undertaken during implementation would support improved water resources management and planning and development of water resources with better environmental, social, and economic consideration, and this will generate enormous benefits for Brazil.” Thus, there is no ex-ante efficiency analysis that can be replicated as such ex-post. 2. The associated PAD annex (No. 9, pp. 79-80) simply restated the PDO, briefly described the expected benefits from each of the project’s four main components, and concluded that “the overall benefits from this TA will be substantial for Brazil’s federal water sector because the Project would contribute to added value in strategic sectors including institution building, enhancing skills across institutions, and bringing innovative technical and financial solutions for the sustainable development and management of Brazil’s water resources.” It added that the interventions expected to be undertaken by the project involving water resources management, water infrastructure, risk management, and water supply and sanitation (WSS) would “contribute to enhanced water security in Brazil through (a) improved water sustainability and productivity, (b) better quality of public expenditures in the water sector, (c) strengthened institutional capacity to manage environmental and social issues, and (d) more integrated federative arrangements and cooperation across different tiers of government.” Finally, it stated that these interventions would “specifically target areas where vulnerability of the poor to water-related issues and risks are higher, particularly in the Northeast and in water-scarce metropolitan regions” and reiterated that expected project benefits would be “broad and varied.” 3. As a TA Project, the corresponding loan mainly helped to finance consultancy activities through a large number of contracts with firms and individual service providers following Bank procurement requirements and procedures. However, their cost-effectiveness would be very difficult, if not impossible, to determine due to the specific nature of the wide variety of tasks involved and the lack of ready comparators. However, it is possible to assess the Project’s implementation efficiency both in terms of the implementation period involved and the overall use of loan resources as reflected in the level of disbursements in relation to the original loan amount. 4. The efficiency of implementation as reflected in the level of disbursements was poor and a major reason for the need to restructure the Project in June 2016, more than four years after loan effectiveness. The diverse reasons for the slow initial project execution rate were described in the section on Key Factors Influencing Implementation in the main text and involved some elements that the Project agencies and the Bank might have been able to control and others, such as the severe macroeconomic crisis that they could not. As a result, only US$8.04 million out of the original US$107.3 million loan had been disbursed by the restructuring date and nearly US$43.6 million was canceled at that time while the initial closing date was extended by 22 months from December 31, 2016 to October 31, 2018. As strong fiscal and institutional constraints, some of which were also unanticipated at the time of the restructuring -- including most notably a Presidential impeachment and the associated significant changes in the federal administration -- subsequently continued to impede implementation progress, this accordingly likewise continued to be less efficient than expected. 5. This, in turn, continued to be reflected in the revised loan’s slower than desired disbursement rate, which had reached only US$19.8 million at the time of project closing. Some of the disbursed loan resources, moreover, around US$3.4 million were returned to the Bank due to the persisting inability on the part of the implementing agencies to fully utilize. While a considerable part of the canceled loan amount is a result of the sharp devaluation of the Brazilian Real since the time of Appraisal, the rest is due to the inability to carry out the project as originally intended due to a combination of exogenous and endogenous factors that have adversely affected its implementation. Thus, as a consequence, Project efficiency is rated Modest.
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ANNEX 5. BORROWER COMMENTS AND SUMMARY OF BORROWER’S REPORT
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Summary of Borrower’s Report Background 1. The Water Sector Development Program – INTERAGUAS – originated in the need to achieve greater articulation and coordination of actions in the water sector, creating an integrative environment in which it was possible to increase the institutional capacity and planning in the sector, so as to contribute to more harmonic implementation of public policies and investments that had water as their principal element. The program was characterized by TA, with a focus on planning, management, and institutional strengthening for the elaboration of studies and projects in the context of intersectoral water use. The operation was supported by a World Bank loan whose implementation period was from April 30, 2012 to October 31, 2018.
Evaluation of Efficacy
2. The main problems encountered with respect to the delivery of the planned items and the delay of other beyond the closing date had to do with the procurement process, especially as these did not involve civil works but rather the production of technical studies, capacity building, and articulation for institutional strengthening of the sector. The fact that no civil works were part of the scope of a project financed by a multilateral donor was atypical and this also, at certain times, resulted in problems for the chronogram of INTERAGUAS. 3. Two events not necessarily considered for the design of project interventions contributed to the larger objective of greater integration of among the federal institutions: (i) the water crisis in São Paulo state; and (ii) the realization of the 8th World Water Forum in Brazil in 2018. While it is difficult to measure the extent to which these two events contributed to institutional integration in the absence of INTERAGUAS or the extent to which INTERAGUAS facilitated the measures that required greater integration in the case of the water crisis or the greater or lesser success of the Forum, for those who were closely involved in these events, it is clear that the Program contributed significantly to the high level of the discussions at the Forum and enrichened the discussions and signature of new cooperation instruments which will be important to support the future development and its further institutional integration going forward. 4. Despite the lower than planned disbursements, the Program developed actions for crucial themes that had been lacking more detailed and deeper approaches. In addition to the advances in terms of planning, activities with important impacts were supported to harmonize proceedings for better training and regulation of the basic sanitation sector in the country and for the maturation of concrete actions to reduce losses and improve energy efficiency. In general, the Program’s outputs have provided significant strategic value for investments during the next two decades. The products that were finalized, published, and disseminated have played a role in enhancing the sector’s capacity for joint planning and integrated management, which was the principal action guideline for the Program. 5. Among the outputs generated, those with the greatest strategic value for planning the water sector in Brazil and/or which represent an important advance in the integration among the principal governmental organs in the sector include: The “Atlas Esgotos” for depollution of water basins, which was the result of a partnership between the National Water Agency (ANA) and the National Secretariat of Environmental Sanitation of the Ministry of Cities published in 2017. The Ecological-Economic Macro-zoning of the São Francisco River Basin, which was the result of four complementary actions undertaken by the Ministry of Environment (MMA) under the Program.
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The National Water Security Plan (PNSH), whose objective was to define the principal structuring interventions of the country (dams, water conveyance systems, canals, and integration axes) of a strategic nature and of regional relevance necessary to: (i) guarantee the supply of water for human consumption and productive activities; and (ii) reduce the risks associated with critical events (droughts and floods). The PNSH has become even more relevant considering the greater frequency of critical events and represents a basis to guide strategic water-related infrastructure investments over the coming decade. The Regulasan Project for the regulation of basic sanitation, which was developed for capacity building purposes and is expected to have positive repercussions on the quality of the services supplied and the broader availability of information to the Brazilian public regarding this subsector. The Com+Água 2 Project, whose objective was the transfer of technology and knowledge regarding energy losses and the improvement of energy efficiency in water supply systems. The Acertar Project, undertaken in partnership with the Brazilian Association of Regulatory Agencies (ABAR), this project sought to certify the information contained in the National Sanitation Information System (SNIS) with the objective of increasing efficiency in the management of basic sanitation services. The Reuso Project had as its objective to furnish subsidies for the institution of wastewater reuse as a federal policy. This output has also become of increasing relevance in light of the recent water scarcity events that have affected the country with greater or lesser intensity in different locations. The Dam Rehabilitation Plan (PLANERB) is a publication produced by INTERAGUAS whose objective was to present structural, judicial, land tenure, and environmental diagnostic studies for the elaboration of a strategic action plan for the rehabilitation of 164 federal dams. Undertaken by the Ministry of National Integration, it covers the states of Alagoas, Bahia, Ceará, Maranhão, Minas Gerais, Paraiba, Paraná, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Santa Catarina, and Sergipe.
Evaluation of Efficiency 6. With the consolidation obtained based of the final expenditure receipts for the Program, the value disbursed from the loan was US$19,802,426.03 of a total of US$63,783,375 available. The final receipts at the end of the grace period totaled US$16,397,842.22 (the differences between these figures and the ones presented in Annex 3 refer to the different exchange rates used at each disbursement and documentation of expenses). With this, the execution of the loan represented a little more than 25 percent of what had been anticipated after the revision of the contract motivated by the Mid-Term Review, or 15 percent of what had originally been foreseen. Among the motives of the low execution were: (i) budgetary restrictions; (ii) difficulties with the contracting process; (iii) the dynamics of contracting the assistance of an international agency; (iv) modifications in the original planning; and (v) discontinuities in the staffing of the implementation agency and Bank teams.
Evaluation of Effectiveness 7. The three indicators selected to measure the development objectives of the Program were all partially achieved. However, it is important to reiterate that the good results identified with the set of indicators measured by the Program indicate an effective use of the resources invested in relation to the demands presented by the development of the sector, as identified during its formulation and the adjustments made throughout the Mid-Term Review phase.
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Lessons Learned 8. Initiate Program execution with a sufficient degree of maturity to immediately implement concrete actions. INTERAGUAS was probably the first program for the implementing agencies involved to initiate a defined procurement plan. To previously plan and advance as much as possible in administrative terms before the implementation stage of a Program was what had been learned as a lesson of PROAGUA Nacional and was reflected in the preparation dynamics of INTERAGUAS. However, the implementation plan that was elaborated did not contemplate the wide range of activities required to reach the desired results and the Terms of Reference had not been previously established. These resulted in considerable delays during the initial phase of the Program. 9. Undertake approximations with the Control Agencies from the beginning to avoid problems in relation to the implementation rules. Several operational difficulties were experienced due to misunderstandings with respect to the Bank’s procurement rules, which in some ways are contrary to the normal national practices in public administration. The limitations imposed by the loan agreement in relation to technical cooperation projects that have been extended to all programs with external resources are added to these and hinder actions for the training of public servants, travel, and other expenses that are rigidly regulated in the national public administration. An open discussion with the Control Agencies before or at the beginning of program execution, including the offer of training by the financing entity, could avoid large and unnecessary difficulties during its implementation. 10. Establish an objective leadership to coordinate the Program and which assumes ultimate responsibility for its performance and results. The lack of a Project Coordinator was identified by the participating institutions as one of the causes of the difficulties encountered in bringing together their actions and the absence of a clear vision as to how best to achieve the objectives established for the Program. Perhaps the implementation arrangement had been poorly understood, as one of the members of the Management Committee commented, “because in truth there were three programs, their operation was individualized, the Project Management Units were independent of the Technical Secretariat in ANA, which only compiled information for submission to the Bank,” or perhaps these structures effectively needed a single leadership in order not to lose sight of the Program’s broader objectives. This sentiment permeated the mind of the executors from the preparation stage, such that there was an attempt to engage the Ministry of Planning to exercise this function, but this did not happen.
Conclusions and Recommendations 11. INTERAGUAS was constructed with the perspective that the Brazilian context was more independent in relation to the need for external resources to finance its infrastructure investments. The significant increment in the availability of resources from national sources for investments in structuring works resulted in disincentivizing the search for external financing, which, in general, possessed more rigid eligibility criteria. Thus, it was decided to establish a program that could focus on institutional strengthening and modernization of planning management instruments. 12. The Brazilian situation at the time resulted in the planning of very ambitious targets in a climate of expectation of a complete lack of budgetary restrictions and optimism with an undertaking focused on the hiring of consultant services. It is also important to recognized that the Program was conceived in the face of very significant challenges in light of the technical capacity of the implementing agencies. The cross-institutional nature of the Program was a challenge not only for the national executors as the World Bank itself had not previously executed a shared program between the areas of water resources and basic sanitation. 13. The budgetary model of the Brazilian Federal Government is a limiting factor in that it imposes restrictions even on the use of available loan resources to specific implementing agencies. It is incoherent for the Brazilian Government to sign a loan agreement with the commitments established within and, in practice, not guarantee either the agreed counterpart resources or the necessary budgetary resources to enable it to receive the financial resources made
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available by the international credit organization. 14. It is recommended for future projects to seek a more focused and well-structured project in operational terms. It is better to rapidly execute a focused and conservative project and to later establish another program to complete the desired actions that to try to guarantee a large sum of resources, part of which will only have their use defined during implementation, with large chances that it won’t be possible to apply them during the timeline and other requirements of the loan contract. 15. Despite all the comments and findings highlighted in this evaluation, the execution of INTERAGUAS brought significant contributions to improve the planning and structure of the water sector in Brazil. The integrated actions of the Program collaborated or at least were aligned with the tendency that has materialized in the formation of a new ministry in the federal administration at the beginning of 2019, in which exactly the executors of the Program have been brought together. It seems reasonable to repeat here a comment of one of the executors of the Program: “INTERAGUAS has become the Ministry of Regional Development.”
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ANNEX 6. SUPPORTING DOCUMENTS
Project Appraisal Document (PAD), dated June 3, 2011 Bank Guidance: Implementation Completion and Results Report (ICR) for Investment Project Financing (IPF) Operations, dated July 5, 2017 Stakeholders Workshop presentations and videos, September 2018. Implementation Status Reports (numbers 1 – 14) Bank Preparation and Supervision Aide Memoires Concept Review Minutes Quality Enhancement Review (QER) Minutes Decision Meeting Review Minutes June 2016 Restructuring Paper Loan Agreement dated December 15, 2011 Amendment to the Loan Agreement, dated August 25, 2016 Progress Reports from Implementing Agency Borrower’s Completion Report dated March 2019 INTERÁGUAS PROJECT BACKGROUND – Support document to the ICR date April 2019 Damiani, Octávio e Erwin De Nys, Desafios da Gestão Social dos Perímitros Públicos de Irrigação: Uma Avaliação de Experiências no Nordeste do Brasil, Série Água Brasil 9, Grupo de Banco Mundia, Brasília, D.F, Dezembro de 2015. De Nys, Erwin, Nathan L. Engle, and Antônio Rocha Magalhães (editors), Drought in Brazil: Proactive Management and Policy, CRC Press, Boca Raton, Florida, 2017, alsoavailable in Portuguese as Secas no Brasil: Política e Gestão, Centro de Gestão e Estudos Estratégicos (CGEE) & Banco Mundial, Brasília, D.F., 2016. Martins, Eduardo Sávio P. R., Cybelle Frazão Costa Braga, Erwin de Nys, Francisco de Assis Souza Filho e Marcos Airton de Souza Freitas, Impacto das Mudanças do Clima e Projeções de Demanda Sobre o Processo de Alocação de Água em Duas Bacias do Nordeste Semiárido, Série Água Brasil 8, Banco Mundial & Agência Nacional de Águae (ANA), Brasília, D.F., Novembro de 2013. Martins, Eduardo Sávio P. R., Erwin De Nys, Carmen Molejón. Bruno Biaseo, Robson Farnklin Vieira Solva, e Nathan Engle, Monitor de Secas do Nordeste, Em Busca de Um Novo Paradigma para a Gestão de Secas, Série Água Brasil 10, Grupo Banco Mundial, Fundação Cearense de Meterologia (FUNCEME), Agência Pernambucana de Águas e Clima (APAC), Instituto de Meio Ambiente e Recursos Naturais (INEMA), Instituto Nacional de Metereologia (INMET), Agência Nacional de Águas (ANA), Ministério de Meio Ambiente (MMA), and Minstério da Integração Nacional (MI), Brasília, D.F., Dezembro de 2015. Minstério da Integração Nacional (MI), Minstério das Cidades MCid), Ministério do Meio Ambiente (MMA), e Agência Nacional de Águas (ANA), INTERÁGUAS: Programa de Desenvolvimento do Setor Água, Brasília, D.F., 2018.
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Persechini, Mara Inês Muanis, Paula Freitas, Erwin De Nys e Carlos Motta Nuñes, Seguranca de Barragens: Engenharia a Serviço da Sociedade, Série Água Brasil 11, Grupo do Banco Mundial, Brasília, D.F., Dezembro de 2015. World Bank and International Finance Corporation, Country Partnership Strategy Brazil 2008-2011, Report No. 42677-BR, Washington D.C., March 18, 2008. World Bank, Project Appraisal Document on a Proposed Loan in the Amount of US$107.3325 Million To The Federative Republic of Brazil for the Federal Integrated Water Sector Project, Report No. 59014-BR, Washington D.C., June 3, 2011. World Bank, Climate Change Impacts on Water Resources Management: Adaptation Challenges and Opportunities in Northeast Brazil, Environment and Water Resources, Occasional Paper Series, Latin America & Caribbean Region, Washington D.C., 2013. World Bank Group, Restructuring Paper on a Proposed Restructuring of the Brazil Federal Integrated Water Sector Paper, Loan Agreement No. IBRD-80740, Board Approval Date: July 12, 2011 To Federative Republic of Brazil, Report No. RES20789, Washington D.C., June 30, 2016 World Bank Group, Retaking the Path to Inclusion, Growth, and Sustainability: Brazil Systematic Country Diagnostic, Report No. 1014310-BR, Washington D.C., May 6, 2016. World Bank Group, Country Partnership Framework for the Federative Republic of Brazil For the Period FY18-FY23, Report No. 113259-BR, Washington D.C., May 16, 2017.
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ANNEX 7. THEORY OF CHANGE
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ANNEX 8. PROJECT ACTIVITIES, OUTPUTS, AND INDICATORS BEFORE AND AFTER RESTRUCTURING
1. This annex presents the following information. First, it includes a table with the description of the project activities at appraisal and at restructuring stage. Second, it includes a table showing the changes at output and output indicators level after the MTR. Finally, it includes the activities linked to each output and output indicator by component.
Original Project Activities Identified in the Project Revised Project Activities Identified in the Appraisal Document (June 2011) Restructuring Paper (June 2016) Component 1: Water Resources Management Planning and management: assessing and supporting Planning and management activities, including, inter the modification of the legal framework for federal alia: (i) assessing and supporting the modification of the and state water resources; strengthening of the legal framework for federal and state water resources; National Water Resources Plan and state and river (ii) strengthening of the National Water Resources Plan basin plans and agencies; implementation and and state and river basin plans and water agencies; and expansion of the water resources monitoring network; (iii) assessing capacity building actions addressed to promoting the enforcement of water rights and SINGREH. charges; planning and implementation of a national program for water resources management training; implementation of a results based management system for the National Water Resources Plan; and technical support to integrated urban water management including solid waste and management models. Studies: to verify feasibility of water projects; monitor Studies to, inter alia: (i) verify feasibility of water and assess groundwater potential; implement projects; (ii) monitor and assess groundwater potential; demonstration projects for water resource (iii) propose mechanisms to induce and support the conservation and reuse, and rehabilitation plans; water resource conservation and rationalizing; (iv) prevent and control of critical events including climate prevention and control of critical events including change; develop hydrographic mapping; develop and climate change; and (v) address topics such as the modernize a water users and infrastructure registry; relationship between environmental degradation, address topics such as the relationship between desertification, water resources, technologies for environmental degradation, desertification, water efficient water use, and impacts of climate change on resources, technologies for efficient water use, and water resource availability, and influence of global impacts of climate change on water resource macroeconomic dynamics on water resources. availability, and influence of global macroeconomic dynamics on water resources; and development of financial mechanisms and tools for environmental and water management, including solid waste. Institutional development: training and strengthening Institutional development activities, including: (i) of water resources management training and strengthening SINGREH entities; (ii) development and implementation of: (a) education and
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agencies, including water user associations and water social participation campaigns, and (b) communication boards; development and implementation of: and dissemination programs; (iii) improvement of education and social mobilization campaigns, and SINGREH institutions capacity; (iv) enhancement of communication and dissemination programs; economic and financial sustainability of water resources monitoring and improvement of SINGREH’s management; and (v) support to technical cooperation institutions capacity; enhancement of economic and in the water sector. financial sustainability of water resources management and water resources policies and funding; support to south-south cooperation in the water sector; and strengthening of urban, environmental and water institutions. Component 2: Water, Irrigation, and Disaster Risk Management Planning and management: assessment of federal and Planning and management activities, including, inter state water infrastructure plans in the Northeast alia: (i) support to the preparation and assessment of Region; development of criteria for selecting water federal and state water infrastructure plans in the infrastructure projects; preparation of state and Northeast Region; (ii) development of criteria for national irrigation plans with incentives to optimize selecting water infrastructure projects; (iii support to irrigation systems; creation of a risk management the preparation of state irrigation plans with incentives information system; development of a risk to optimize irrigation systems; (iv) support to the management plan, including risk identification, creation of a disasters risk management information monitoring and early warning systems, and system; (v) development of information systems for emergency response plans; development of water infrastructure; (vi) increase of strategic planning information systems for water infrastructure; and for drought risk reduction and climate change; (vii) increase of strategic planning for drought risk development of a strategic actions plan for reduction and climate change. rehabilitation of the Borrower's dam safety (Plano de Ações Estratégicas para Reabilitação da Segurança de Barragens da União- PLANERB); and (viii) preparation of the national irrigation plan (Plano Nacional de Irrigação). Studies: to verify the technical, economic, social, Studies to, inter alia: (i) verify the technical, economic, financial, and environmental feasibility of water social, financial, and environmental sustainability of infrastructure activities; prepare water infrastructure water infrastructure activities; (ii) prepare water management, operation and maintenance plans; infrastructure management, operation and assess existing water infrastructure; develop dam maintenance plans; (iii) assess existing water safety plans; promote social participation; develop infrastructure; (iv) develop dam safety plans; (v) plans for improvement of irrigation activities; support promote public participation; (vi) develop plans for the implementation of the National Irrigation Policy improvement of irrigation activities; and (vii) support and support disaster risk management. disaster risk management. Institutional development: provision of technical Institutional development activities, including, inter alia: support and capacity building to federal and state (i) provision of TA and capacity building to federal and agencies to enhance performance in water state agencies to enhance performance in water infrastructure, irrigation, and risk management areas; infrastructure, irrigation, and risk management areas; provision of TA to implement: water infrastructure (ii) provision of TA to implement: (a) water infrastructure
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management and monitoring systems; management management and monitoring systems; (b) management plans for public irrigation projects; and training for plans for public irrigation projects; and (c) training for irrigation user organizations; acquisition and/or irrigation user organizations; (iii) acquisition and/or development of computer programs for development of computer programs for administration administration and management; preparation of and management; and (iv) preparation of technical and technical and operational manuals for water operational manuals for water infrastructure, irrigation infrastructure, irrigation and disaster risk and disaster risk management. management ; and support to irrigation, water infrastructure and SINDEC agencies. Component 3: Water Supply and Sanitation Planning and management: support to the Planning and management activities, including, inter implementation of the National Basic Sanitation alia: (i) support to the implementation of the National Guidelines and of SINISA (National Information System Basic Sanitation Guidelines and of SINISA; (ii) assessment on Basic Sanitation); assessment of PAC investments of PAC investments in water supply and basic sanitation in water supply and basic sanitation infrastructure; infrastructure; (iii) development of a national technical development of a national technical cooperation in cooperation in the water supply and basic sanitation the water supply and basic sanitation areas; areas; (iv) development and expansion of a training, development and expansion of a training, research research and technology national network in water and technology national network in water supply and supply and basic sanitation; (v) preparation of local and basic sanitation; preparation of local and regional regional water supply and basic sanitation plans for water supply and basic sanitation plans for states and states and municipalities; and (vi) review and evaluation municipalities; and review and evaluation of programs of programs and actions included in PPA and PAC. and actions included in PPA and PAC. Studies: to improve the assessment capacity on Studies to, inter alia: (i) improve the assessment capacity technical, economic, financial, policy, institutional and on technical, economic, financial, policy, institutional management matters; contribute to the monitoring and management matters; (ii) contribute to the and evaluation of public policies; improve “COM + monitoring and evaluation of public policies; (iii) ÁGUA” Project; expand the Integrated Management improve “COM + ÁGUA” Project; (iv) expand the System for Water Supply and Sanitation; integrate, Integrated Management System for Water Supply and expand, and upgrade PMSS systems; expand Sanitation; (v) integrate, expand, and upgrade PMSS integrated water supply and basic sanitation services systems; (vi) expand integrated water supply and basic technology in slum areas; adopt clean development sanitation services technology in slum areas; (vii) adopt mechanisms for water supply and basic sanitation; and clean development mechanisms for water supply and disseminate technology. basic sanitation; and (viii) disseminate technology. Institutional development: support to the integration Institutional development activities: (i) support to the of PAC-financed projects and institutional integration of PAC-financed projects and institutional development of services providers; provision of TA to development of services providers; (ii) provision of TA to states, municipalities, regulators, and service states, municipalities, regulators, and service providers providers for sector modernization; incentive to for sector modernization; (iii) incentive to associated associated management of water supply and basic management of water supply and basic sanitation sanitation services; development of local or regional services; (iv) development of local or regional water water supply and basic sanitation plans; support, supply and basic sanitation plans; (v) support, development and dissemination of transparency development and dissemination of transparency
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instruments and promotion of social participation; and instruments and promotion of social participation; and review of water supply and basic sanitation (vi) review of water supply and basic sanitation environmental licensing regulations. environmental licensing regulations. Component 4: Intersectoral Coordination and Integrated Planning Planning and management: improvement of water Planning and management: the carrying out of management and use associated with the Integration strategies, policies and plans related to the water sector Project in the São Francisco River Basin; integration of at national level, such as: (i) preparation of studies to planning and regulation in the water resources and finance structuring plans for the infrastructure needed water supply and basic sanitation sectors and in the for water supply for multiple uses, such as the National energy and navigation sectors; implementation of Water Security Plan (Plano Nacional de Segurança methods to integrate river basin environmental Hídrica- PNSH) and the new national drought policy; (ii) assessment for planning in the hydroelectric, river preparation of studies, plans and policies for water use navigation and water supply and sanitation sectors at optimization and rationalization; and (iii) preparation of the state and municipality level; and development and plans and policies for environmental actions with implementation of systems and methodologies to positive impacts in the water quality, such as the monitor and evaluate policies and public investments National Solid Waste Plan (Plano Nacional de Resíduos in the water sector. Sólidos). Studies: to evaluate alternatives to integrate Studies with preferential focus on the river basins of the procedures for water rights, emission of Integration Project in the São Francisco River Basin (i.e., environmental licenses, environmental planning, and the Borrower’s initiative for integrating the São provision of public services; rehabilitate river basins; Francisco River Basin with basins in the States of Ceará, undertake studies to improve energy efficiency; Rio Grande do Norte, Paraíba and Pernambuco), develop water conservation and reuse projects; including, inter alia: (i) evaluation of the São Francisco promote efficiency technologies and develop a river basin revitalization program; (ii) Preparation of the methodology for certification of the proper use of economic-ecological macro-zoning of the São Francisco water in irrigated agriculture; control and measure river basin; and (iii) preparation of feasibility studies, and water quality; create clean development mechanisms; basic and engineering design. undertake studies on payment for environmental services; systematize the database of existing engineering designs and works; and identify projects to encourage rational and efficient water use. Institutional development: coordination of methods, Institutional development activities, including, inter alia: evaluation systems, and decision support in sectors (i) support to the establishment of mechanisms and where water resources are fundamental inputs; structures for articulation and coordination of federal coordination and communication among sector government actions in the water sector; and (ii) training information systems; support to the establishment of of federal, state and municipality water professionals on permanent mechanisms and structures for Project- related activities. articulation and coordination of Federal Government actions in the water sector; and training of federal, state and municipality water professionals on Project- related activities.
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Output* Output Indicators in PAD Revised Output Indicators Component 1: Water Resources Management (WRM) (PAD) Implementation of 1. 13 state water agencies and 4 1. Dropped. National Water Resources federal river basin water 2. Dropped. Management System Created agencies that are properly 3. Revised to read: “Professional by Law 9433 is advanced and functioning, applying the specialists, members of National Water strengthened at federal, state, management instruments Resources System (SINGREH) trained and river basin level. established by law. (through training activities, courses, 2. 13 water agencies reasonably technical visits carried out by the (MTR) National Water well staffed. Project” with a target of 120 in 2018. Resources Management 3. 400 professional specialists in 4. Added: Water resources management System strengthened. the national and state water institutions supported by the Project, system were trained (e.g., with a baseline of 6 in 2015 and a target water agency staff, national and of 14 in 2018. state water council members, river basin committee members). (PAD) Improved application of 1. Information system established 1. Dropped. water resources management and functioning to monitor and 2. Dropped. instruments by federal, state, evaluate the implementation of the 3. Dropped. and river basin institutions. National Water Resources Plan. 4. Added: National Water Resources Plan 2. 2,400 kilometers of rivers being revised (second revision) and adopted, regularly monitored for water (MTR) Water resources with a baseline of first revision completed quality through the National Water management and use in 2015 and a target of second revision Quality Monitoring Program. regulation instruments completed in 2018. improved. 3. Volume (8 billion m3 per year) of 5. Added: Water resources planning bulk water being invoiced (and 50% instruments (i.e., water resources surface percentage paid of that volume) in and groundwater plans and urban water the country, excluding power supply plans) improved, with a baseline of generation. 2 in 2015 and a target of 6 in 2018. 6. Added: Number of critical basins of special interest (as classified in ANA Portaria No. 62/2013) to the country’s water resources management with qualitative and quantitative water balance finalized for improved water resources management, with a baseline of 0 in 2015 and a target of 23 in 2018. 7. Added: Studies finalized contributing to improve the analysis of water rights concessions, with a baseline of 0 in 2011
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and a target of 3 in 2018. Component 2: Water, Irrigation, and Disaster Risk Management (PAD, not modified) 1. Integrated technical planning Management capacity of the unit functioning. Ministry of National 2. 100 technical staff in the areas Integration (MI) strengthened. of Hydraulic Infrastructure, Irrigation, and Civil Defense (which is responsible for risk and disaster management activities) have been trained. 3. Technical, operational, and Hydraulic Infrastructure, Irrigation, and Civil Defense manuals established. (PAD, not modified) New 1. Monitoring and Evaluation 1. Dropped. planning and information System for Water Infrastructure 2. Dropped. integrated management, Projects established and under 3. Added: Strategic Action Plan for safety, efficiency, and implementation. Rehabilitation of Federal Dam Safety productivity of water 2. Information system on dams established and under infrastructure instruments are (water supply, irrigation, flood implementation, with the baseline of established. control) infrastructure no plan in 2015 and a target of plan implemented. established and under implementation in 2018. (PAD) Effectiveness of MI 1. Mapping of areas with potential 1. Dropped. actions in relation to the for irrigated agriculture 2. Dropped. National Irrigation Policy completed. 3. Added: National Irrigation Plan improved leading to the 2. Plan to improve the dynamism prepared and completed, with a sustainability of irrigated of 30 irrigation perimeters baseline of no Plan in 2015 and a target agriculture. prepared, completed, and of Plan completed in 2018. approved with short, medium, 4. Added: State Irrigation Plans and long-term solutions that (MTR) National Irrigation completed, with a baseline of 3 in 2015 guarantee the feasibility of Policy improved leading to and a target of 7 in 2018. irrigated agriculture technical, economic, social, and sustainability. environmental actions. (PAD, dropped) Knowledge 1. Irrigation technical and 1. Dropped. base and decision capacity for operational rules established. irrigation improved inside MI. (PAD, dropped) New National 1. Secretariat of Civil Defense 1. Dropped. System for Risk and Disaster (SEDEC) restructured with 2. Dropped. Management conceived, institutional and operational 3. Dropped. institutionalized, and normative instruments
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implemented. established. 2. CENAD (?) expanded and improved with trained staff, and modernized structure, equipment and operation. 3. 15 State teams trained in risk and disaster management. (MTR, new) Integrated actions 1. Added: Rural water and sanitation to increase water guarantee to program improved including the diffused populations technology and management implemented. innovations, with the 2018 target of technical and institutional proposals for rural water supply and sanitation prepared. Component 3: Water Supply and Sanitation (WSS) (PAD, dropped) Federal 1. The WSS National Information 1. This indicator was relocated and institution responsible for the System (SINISA) implemented, allocated to a different result. WSS policy strengthened and including all its subsectors 2. Dropped. working in coordination with (potable water supply, other federal institutions in the sanitation, solid waste, and water sector. drainage) and functioning as evidenced by online data and annual reports. 2. Operational manuals of federal WSS programs revised to incorporate coordination with water resources management policy and plans. (PAD) Improved programs to 1. Regulators supported by the 1. Revised to read: Regulators supported promote efficiency in the WSS Project represent 10 million by the Project represent 12 million sector. WSS service users (as measured WSS service users with access to by SINISA) with access to services, which are formally regulated services which are formally according to Law 11.455 (in 2018) (MTR) Actions to promote the regulated according to Law efficiency in the basic 2. Revised to read: WSS service providers 11.445. sanitation sector. supported by the Project, which are 2. WSS service providers implementing non-revenue water supported by the Project, which management and energy efficiency are implementing non-revenue programs, supplying services to at least water management and energy 12 million users (in 2018). efficiency programs, supplying 3. Service providers, users of the services to at least 10 million Sanitation Integrated Management users (as measured by SINISA). System (GSAN) benefitted by the
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System’s updating and revision, with a baseline of 10 in 2011 and 12 in 2015 and a target of 25 in 2018. 4. Number of water utilities that the Project is supporting, with a baseline of 10 in 2011 and 15 in 2015 and a target of 30 in 2018. Component 4: Intersectoral Coordination and Integrated Planning (PAD, dropped) Effective 1. A decentralized technical and 1. Dropped. institutional framework and operational structure 2. Dropped. technical and operational established and functioning in 3. Dropped. arrangements functioning to the São Francisco river basin. coordinate multisector 2. The institutional coordination activities in the São Francisco mechanism arrangement in the and Araguaia-Tocantins river Araguaia-Tocantins river basin basins. is functional and strengthened. 3. 100 staff trained in the two river basins. (MTR, new) Strategies, policies 1. Guidelines for drought preparedness and national or regional plans and response developed within MI, related to the Water Sector with a baseline of no guidelines in 2015 developed in an integrated and guidelines developed in 2018. manner and coordinated 2. National and/or regional planning among institutions. instruments (i.e., National Water Security Plan, Brazil Atlas for Depollution of River Basins via Urban Sewage Treatment, and Atlas of Water Supply for the Northeast Region) developed in an integrated manner. 3. Action strategy proposals prepared for the following themes: (i) reuse of treated effluents; and (ii) water supply in the surroundings of large infrastructure works, with a baseline of zero in 2015 and a target of 2 in 2018. 4. Metropolitan regions with water supply integrated planning developed, with a baseline of zero in 2015 and a target of 6 in 2018. 5. Added: Ecological-Economic MacroZoning of the São Francisco River Basin completed, with a baseline of
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existent diagnosis in 2015 and a target of MacroZoning completed in 2018. (PAD, dropped) Multisector 1. Impact evaluation is tested on a 1. Dropped integrated impact evaluation pilot basis and reports methodology defined and published. tested in the São Francisco river basin. (PAD, dropped) Information in 1. A water indicators portal 1. Dropped. This indicator was essentially the water sector is more connecting sector-specific the same as PDO outcome indicator integrated across sectors and information systems, studies, No. 3(but with focus on the São readily available for decision and analytical work is Francisco river basin), which was making and public implemented and available to revised to read “A water portal with consultation. the public and functioning as access to sector-specific information evidenced by online data for the systems is implemented and available São Francisco river basin. to the public, with a baseline of no portal in 2015 and a target of portal functioning in 2018. Component 5: Project Management, Monitoring, and Evaluation (PAD, not modified) Interaguas 1. 10 quarterly, semiannual, and 1. Revised to read: Progress reports, adequately managed, yearly program progress financial management and audits of monitored, and evaluated. reports, financial management the program prepared, with the target and audits of the program. revised to 14 in 2018.
(PAD) Communication 1. 10 seminars and workshops (to 1. Revised to read: Seminars, workshops, program designed and inform stakeholders of the new or cumulative meetings held implemented. water management) held. (cumulative) with the target revised to 14 in 2018. (MTR) Program results disseminated and experience exchange carried out. (MTR, new) Coordination 1. Added: Number of PMU (Project between PMUs and PTS Management Unit) coordination strengthened. meetings, with a baseline of 10 in 2015 and a target of 28 in 2018 * By mistake, the revised outputs agreed with the client during the MTR were note reflected in the Restructuring Paper.
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Component 1 – Water Resources Management
Output 1: Institutions of the National Water Resources Management System strengthened Indicator 1: Professional/Technical specialists, members of the National Water Resources System (SINGREH) trained*. (*Through training activities, courses, technical visits carried out by the Project). [MMA] Groundwater Analysis for Paraná State [MMA] 3ª Workshop CTCT/CNRH on the Rational Use of Domestic Water Reuse [MMA] Seminars "Avanço no Conhecimento dos Principais Aquíferos Brasileiros" –Salvador, November 21-24, 2017 [MMA] Seminar on of the Hydrographic Basins revitalization with focus Urban Rivers [MMA] III National Constitutive Meeting of Environmental Education (EA) and Water Management and I Meeting of EA in IWRM - Rio Doce Basins –placed in Ouro Preto/MG [MMA] MacroZEE Workshop of the Sao Francisco River Basin (2017); [MMA] Training of the Municipal Managers on the Methodology to elaborate the Municipal Environmental Zoning (ZAM) [MMA] Capacity Building on Project Impact Assessment, in the city of Lima/Peru Indicator 2: Water resources management institutions supported by the Project [ANA] Elaboration of an estimated occupied area and water consumption for irrigated agriculture in the Rio Grande Hydrographic Basin, as subsidies for the creation of the Water Resources Integrated Plan of the Rio Grande Hydrographic Basin. (ANA) [ANA] Formulation of the indicators for ANA strategic results, to measure the progress achieved by the Agency. (ANA) [ANA] Hydrogeological Assessment of the Karstic and Fissure-Karstic Aquifer Systems in the São Francisco Hydrographic Region. (ANA, IGAM, INEMA) [ANA] Elaboration of the planning of the underground water monitoring network of the Paranapanema river basin. (ANA, Instituto Águas do Paraná e DAEE) [ANA] Quantitative and Qualitative Modeling of River stretches in basins considered critical. (ANA) [MMA] Water Resources Plan for Goiás State (SECIMA/GO) [MMA] Subterranean Water Analysis for Paraná State (Instituto Águas do Paraná, CPRM) [MMA] Development of new website of the National Water Resources Council - CNRH [MMA] Elaboration of technical inputs for CNRH legal rules on Rational Use and Water Reuse [MMA] Municipal Environmental ZonningTraining Capacity Building (Maceió/AL, Palmas/TO, Nova Friburgo/RJ, Imperatriz/MA and Londrina/PR) Activities linked to outcomes, without any indicator and direct contribution: [ANA] Elaboration of proposals for the insertion of the water theme in the development agenda building process pos-2015 of the United Nations Organization (ONU), taking into consideration the Sustainable Development Objectives (ODS).
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[ANA] Survey, systematization and analysis of the Brazilian legal and institutional framework for the floods control and operation of the multiple use reservoirs [ANA] Assessment of activities and results of the “ProjetoÁgua: conhecimento para gestão” – within an agreement between the National Water Agency – ANA and Technological Park Foundation of Itaipu - FPTI. [ANA] Systematization of data and support in the creation of the Report on the Water Resources Scenario in Brazil –2016 report. [ANA] Assessment of water resources management goals at state level of the Programa de Consolidação do Pacto Nacional pela Gestão das Águas – PROGESTÃO, made by DELPHI methodology. [ANA] ANA impact evaluation of training actions provided to SINGREH [ANA] Development of a methodology to estimate administrative costs of the Water Agency Functions of “Delegate Entities”. Outcome 2: Water resources management and regulation instruments improved. Indicator 3: National Water Resources Plan revised (second revision) and adopted [MMA] Seminar on the Priorities of the National Water Resources Plan - PNRH within 2016-2020-year period. [MMA] Evaluation and diagnosis of PNRH results and recommendations for the elaboration of the new PNRH, with a time frame starting in 2021 [MMA] Logical Framework and strategy for the elaboration of the new PNRH starting in 2021 [MMA] PNRH Communications Strategy Indicator 4: Water resources planning instruments improved (*Planning instruments include water resources surface and groundwater plans and urban water supply plans). [ANA] Hydrogeological Assessment of the Karstic and Fissure-Karstic Aquifer Systems in the São Francisco Hydrographic Region.[ANA e MCID] National Sewage Atlas: Depollution of Water Basins via Urban Sewage Treatment. [ANA e MI] National Water Security Plan (PNSH). [MMA] Water Resources Plan for Goiás State. [MMA] Subterranean Water Analysis for Paraná State. [MMA] Methodology to elaborate the Environmental Municipal Zoning Indicator 5: Number of critical basins of special interest* to the country’s water resources management with qualitative and quantitative water balance finalized for improved water resources management. (*critical basins of special interest as classified by ANA through Portaria ANA n°62/2013). [ANA] Quantitative and Qualitative Modeling of River stretches in basins considered critical. Indicator 6: Studies finalized contributing to improve water rights concession [ANA] Definition of criteria and mechanisms for infrastructure and building protection against backflow effects due to the passage of floods through reservoir
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[ANA] Elaboration of a proposal of options to improve the water right concessions, taking into consideration the uncertainties of future available water scenarios in Brazilian basins [ANA] Elaboration of a proposal of options to improve the water right concessions in situations with water unavailability in water bodies, with intensive use and depleted water Outcomes linked activities,without any direct contribution to any of indicator: [ANA] Spare Local Geoidals Model for the São Gonçalo and engineer Ávidos reservoir, both located in Paraíba [ANA] Proposal of outcomes indicators to monitor the implementation of the WR basin´s plans. Component Linked Activities, but without any direct contribution to any of the results [ANA] Reservations services provided, issuance, scheduling, re-scheduling, endorsement and international and national air tickets purchasing, in regular and non-regular flights to the Technicians, consultants and to eventual collaborators, during official travels or upon PCT ANA/IICA-SLE02 interests. [ANA] Hiring of a specialized firm for the creation of products for “Prêmio ANA 2014”. [ANA] Hiring of a specialized firm to produce promotional material and dissemination in the 8º World Water Forum. [ANA] Simultaneous Translation and interpretation services, official and non-official, as well as simultaneous translation services, in response to PCT ANA/IICA- SLE02 demands
Component 2 - Water, Irrigation, and Disaster Risk Management
Outcome 3: Management capacity of the Ministry of National Integration strengthened. Indicator 7: Integrated technical planning functioning Indicator 8: Technical Staff in the areas of Hydraulic Infrastructure, Irrigation, Civil Defense and Regional Development have been trained Indicator 9: Technical Hydraulic Infrastructure, Irrigation, Civil Defense and Regional Development manuals established. [MI] Elaboration and/or update of manuals for Protection and Civil Defense. Outcomes linked Activities, without direct and no indicator: [MI] Technical Consultant to facilitate and monitor the Regional Development Secretariat Project´s contracts. [MI] Technical Consultant to support and monitor the implementation of the Hydraulic Infrastructure Secretariat Project´s contracts. Outcome 4: New planning and information integrated management, safety, efficiency, and productivity of water infrastructure instruments are established. Indicator 10: Strategic Action Plan for Rehabilitation of Federal Dam Safety established and under implementation [MI] National Dams Restoration Plan (PLANERB).
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Outcomes linked Activities, without direct and no indicator: Outcome 5: National Irrigation Policy improved leading to the sustainability of irrigated agriculture Indicator 11: National Irrigation Plan prepared and completed Indicator 12: States Irrigation Plans completed [MI] Irrigation Master Plan of the Federal District Outcomes linked Activities, without direct and no indicator: Outcome 6: Integrated actions to increase water security for scattered populations implemented Indicator 13: Rural water and sanitation program improved Outcomes linked Activities, without direct and no indicator: [MI] Individual consultant to evaluate daily tasks and procedures of Sistema de Programas Sociais (SPS) within “Programa Água para Todos”,from SDR Activities linked to Components, but without direct contribution and to any results: [MI] Survey of demands and offers for Training on the Water Theme in the Rural Environment [MI] Translation Services/technical version with revisions, in English and Spanish to Portuguese and vice-versa [MI] Reservations, issuance and tickets bookings services
Component 3 – Water Supply and Sanitation
Outcome 7: Actions to promote water supply and sanitation sector efficiency implemented Indicator 14: Regulators supported by the Project represent 12 million WSS service users with access to services which are formally regulated according to Law 11.445 [MCid] TA for the Basic Sanitation Regulations [MCid] Auditing and Certification of Information Regarding Sanitation. Indicator 15: WSS service providers supported by the Project, which are implementing non-revenue water management and energy efficiency programs, supplying services to at least 12 million users [MCid] Com+Agua 2: Reduction of Water Losses and Efficient Use of Electrical Energy Management Project. [MCid] Individual consultant for specialized technical support to actions to manage water losses and efficient use of electricity in water supply systems (supporting the monitoring of the COM+Agua 2 project) Indicator 16: The WSS National Information System (SINISA) implemented including all its subsectors (potable water supply, sanitation, solid waste, and drainage) and modules and functioning as evidenced by online data and annual reports. [MCid] Individual consultant for specialized technical support to the technical-conceptual and institutional project of the National System of Information in Basic Sanitation – SINISA
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[MCid] Individual consultant for technical support specialized in the elaboration of the Diagnosis of the Drainage and Urban Water Pluvial component of the National Sanitation Information System (SNIS) Activities linked to income, without direct contribution to any indicator: Outcome 8: Actions to promote the strengthening of WSS service providers implemented Indicator 17: Service providers benefited by GSAN [MCid] Individual consultants specialized in information technology management applied to GSAN - Integrated Management System in Sanitation Indicator 18: Number of water utilities that project is supporting [MCid] Com+Agua 2: Reduction of Water Losses and Efficient Use of Electrical Energy Management Project. [MCid] TA for the Basic Sanitation Regulations. [MCid] Action Plan Proposal to establish a National Reuse Policy. Atividades vinculadas ao resultado, sem contribuição direta a nenhum indicador: [MCid] Individual consultant for technical support specialized to define a Roadmap for Elaboration of Municipal Basic Sanitation Plans (PMSB) for Small Municipalities, with up to 20,000 inhabitants [MCid] Individual consultant for specialized technical support related to the process of contracting consulting, legal entity, multidisciplinary with expertise in the area of modeling and concession of the provision of public services of water supply and sanitary sewage Activities linked to the component, but without direct contribution to any of the results: [MCid] Provision of air tickets to meet the needs of the Interáguas Program (several contracts) [MCid] Payment of daily rate for individual consultants [MCid] Provision of food services (x 13) [MCid] Provision of legal advertising delivery services [MCid] Provision of translation services [MCid] Acquisition of Computers [MCid] Registration of participants at the 8th World Water Forum [MCid] Registration of participants at the ABES/FENASAN 2017 [MCid] Capacity building activities and Training
Component 4 - Intersectoral Coordination and Integrated Planning
Outcome 9: National or regional water sector-related strategies, policies and plans developed in an integrated and coordinated manner among institutions Indicator 19: Guidelines for drought preparedness and response developed within MI Indicator 20: National and/or regional planning instruments developed in an integrated manner
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[ANA e MCID] National Sewage Atlas: Depollution of Water Basins via Urban Sewage Treatment. [ANA e MI] National Water Security Plan (PNSH). Indicator 21: Action strategies proposals prepared for (i) reuse of treated effluents; and (ii) water supply in the surroundings of large water infrastructure works [MCid] Action Plan Proposal to establish a National Reuse Policy. Indicator 22: Metropolitan regions with water supply integrated planning developed Activities linked to outcome, without direct contribution to any indicator: [MMA] Proposal of a Methodological Roadmap for Municipal Environmental Zoning integrated with water resources management [MMA] Elaboration of the basic document of the Federal Urban Environmental Management Strategy [MMA] Training of Municipal Managers on the methodology of elaboration of Municipal Environmental Zoning - ZAM [MMA] Diagnosis of the National Solid Waste Plan - PNRS Outcome 10: Integrated water resources management in the river basins part of the São Francisco River Basin Integrated Project improved Indicator 23: Ecological-Economic Macro Zoning of São Francisco River Basin completed [MMA] Updating and completing the Diagnosis of Ecological-Economic Macro zoning in the São Francisco River Basin (MacroZEE of BHSF) [MMA] Workshops of MacroZEE of BHSF (2017) [MMA] Dialogue´s tables and Launch Seminar of MacroZEE of BHSF [MMA] Elaboration of Prognosis and Subsidies for the Implementation of the Ecological-Economic Macro zoning of the São Francisco River Basin Activities linked to outcome, without direct contribution to any indicator: [ANA] Elaboration of estimates of costs of maintenance and replacement of equipment, referring to projects of raw water adduction, including irrigation, applying its results to the PISF [ANA] Propose regulatory strategies to define the electric energy costs that will compose the tariff of the PISF water supply service [MI] Renewable Energy in the Integration of the São Francisco Basin (PISF)[MI] Piancó River Branch of the Integration of the São Francisco Basin (PISF) Technical, Economic and Environmental Feasibility and Alternative Studies. Activities linked to the component, but without direct contribution to any of the results: [ANA] Conduct a compilation, analysis and proposal of new programs or improvement of management tools and plans, in the light of the work developed under the Interministerial Technical Cooperation Agreement to promote integrated management and sustainable use of water resources in rural areas - ACT 002/2014.
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Component 5 - Project Management and M&E
Outcome 11: Interáguas adequately managed, monitored, and evaluated. Indicator 24: Progress reports, financial management and audits of the program prepared. Activities linked to outcome, without direct contribution to any indicator: [ANA] Ex-ante Evaluation of the Water Sector Development Program – INTERÁGUAS [MMA] Physical-Financial Management of Interáguas [MCid] Ex-post evaluation of the Water Sector Development Program – INTERÁGUAS Outcome 12: Program results and experiences exchanged and disseminated Indicator 25: Seminars, workshops or technical meetings held (cumulative) [ANA] Hiring of specialized firm to provide logistical support for the operation of a technical visit aimed at the exchange of knowledge promoted by the systematization of the experience of the implementation of the Water Producer Program in the Pipiripau River Basin, Federal District, on October 26-27, 2016, targeting technicians from the executing agencies of the INTERÁGUAS Program. [ANA] Strategic Environmental Assessment Training [MMA] Procurement Capacity Building by World Bank Guidelines [MI] Hiring company to carry out the Interáguas Seminar: Contextualization and Evaluation Activities linked to outcome, without direct contribution to any indicator: [MI] Filming and photography services during the seminar called water innovation - Interáguas / MI [MI] Hiring of digital film service with live webcasting and final product availability via YouTube, during the presentation workshop of products 3, 4 and 5 related to service contract no. 215055 (Gitec contract) [MI] Individual consultant to elaborate final documents (publications) of Interáguas [MI] Individual consultant to elaborate audiovisual materials of Interáguas (videos) [MI] Individual consultant to produce institutional texts of Interáguas [MI] Journalist to draft texts related to Irrigation and water [MI] Journalist to draft texts related to water supply and sanitation [MI] Journalist to draft texts related to water resources management [MI] Individual consultant specialized in the revision of institutional texts Outcome 13: Coordination between Project Management Units (PMU) and Project Technical Secretariat (STP) strengthened Indicator 26: Number of PMUs coordination meetings Activities linked to the result, but without direct contribution to any of the indicator: Activities linked to the component, but without direct contribution to any of the results:
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ANNEX 9. MAP
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iSINGREH is composed of the National Council on Water Resources, the National Water Agency (ANA), state-level water resources councils, basin committees, federal, state, and municipal bodies responsible for water resource management, and state water agencies. iiThis Policy established the water basin as the territorial management unit, recognized the public domain of water and classified it as a limited natural resource with an economic value. The Law also established five management instruments: (i) water resources plans; (ii) classification of water bodies according to prevalent uses; (iii) water rights; (iv) water charges; and (v) the National Water Resources Information System (SNIRH). iii The wording in the PAD is essentially the same as in the Loan Agreement the only difference being one of punctuation as the PAD did not separate the phrase “and strengthen the capacity” by commas. iv The Executive Secretariat is that part of a Ministry’s structure responsible for coordinating activities across the various internal Secretariats that frequently act independently due to the political appointment of the respective Secretaries. v While the participating institutions already possessed their own information systems, it was hoped that one of the project’s outcomes would be their integration into a single system for the entire federal water sector. vi All appraisal costs are rounded to the nearest US$100,000. vii This change reflected the fact that, in practice, it had been difficult to secure consistent participation in the Committee at the Executive Secretariat level. Only the Project Management Unit (PMU) in MI had initially been established at that level, while those in MMA and MCid were housed in specific thematic Secretariats. This was also a better reflection of ANA’s structure, as it did not have an Executive Secretariat, but rather several Directors. viii The revised indicator measured the cost of the integrated action implemented under the Project out of the total amount executed. ixThe PPA is a multi-year budget plan that includes the main lines of action expected to be implemented by different Federal agencies for a four-year period. Each INTERAGUAS implementing agency thus had a specific line of action associated with INTERAGUAS Project in the PPA. Detailed activities, however, were not identified in the PPA and were inserted only in the annual budget law, making it difficult to assess progress toward the original indicator. x Significant technical and operational difficulties were experienced in attempting to harmonize several different existing systems. Thus, it was concluded at the time of the MTR that the best the project could achieve was to include direct links to the other systems in the INTERAGUAS site (hosted by ANA). xi The macroeconomic risk was raised from “Substantial” to “High” because of the severe economic crisis at the time of the restructuring, while the institutional capacity for implementation and sustainability risk was raised from “Low” to “Moderate” on account of the lower than expected capacity of the participating agencies that caused implementation delays in the initial years. xii Initially, two of the four implementing agencies (MCid and MMA) had decided to contract the Organization of American States (OAS) to undertake this function, but then they also resolved to turn to IICA for this support, as IICA had already signed agreements with ANA and MI. Canceling the agreement with OAS and re-contracting this activity with IICA, however, contributed to the implementation delays. xiii At restructuring, the exchange rate had more than doubled, from R$ 1.71 at the time of appraisal to over R$ 3.8 per US$1. xivResources allocated to Component 4 went from 14.7 percent at appraisal to 36.2 percent after restructuring. xv In this regard, the CPF adds “the WBG has traditionally played an important role as a convener of various stakeholders, an advisor to federal and state governments on relevant policy changes, and an investor in critical infrastructure. This role is expected to continue in all three dimensions with a special focus on the Northeast and other regions of higher risk of water insecurity. WBG engagement will continue to comprise a range of instruments … addressing governance, service quality and infrastructure challenges, including development of new financing and management models.” xvi Both the nature of these crises and government responses to them, especially for and in the Northeast, are summarized in a World Bank environmental brief with the title Climate Change Impacts on Water Resources Management: Adaptation Challenges and Opportunities in Northeast Brazil issued in 2013, and are further detailed in a 2017 book authored by Bank staff and consultants. The
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latter observes that 2015 had been the fourth consecutive year of increasingly severe drought in the Northeast and that during part of this period drought conditions and the associated decreasing water availability had adversely affected Brazil’s three largest metropolitan areas, São Paulo, Belo Horizonte, and Rio de Janeiro and even parts of the (normally humid tropical) Amazon region See Erwin De Nys, Nathan L. Engle, and Antônio Rocha Magalhães (editors), Drought in Brazil: Proactive Management and Policy, CRC Press, Taylor & Francis Group, Boca Raton, Florida, 2017. xviiThe former MI and MCid have been combined into the new Ministry of Regional Development (MDR), and the SRHQ and the ANA, as well as the National Water Resources Council (CNRH), were also transferred to the new MDR. xviiiOn January 15, 2019, for example, the MDR announced that the National Water Security Plan (PNSH) would prioritize 114 works for water supply, involving total investments of R$ 25 billion (roughly US$6.75 billion) to expand and improve the quality of water supply and that around 58 percent of these projects would be in the Northeast. The PNSH was officially launched by the MDR and the ANA on April 11, 2019 as a benchmark achievement of the new Government’s 100 days in office. The new Minister also stated at that time that one of the main purposes of the institutional merger was to strengthen the national system of water resource management, and highlighted the high priority assigned to the Integrated Project for the São Francisco River (PISF). xix The Borrower´s report cites countless “the integrated implementation of actions, the learning, and the institutional routines derived from these actions as effective gains from INTERÁGUAS,” being a qualitative way of measuring this indicator (p. 20, Executive Summary). xx P. 7-8 of the Executive Summary. xxi More specifically, the different institutions have different systems to manage different information, using also different technologies being impractical to centralize all data information in a single Portal. xxii The Borrower´s report mentions that the website is being adjusted to make it available afterwards (p. 21, Executive Summary). xxiii This publication (Brasília, 2018), contains chapters and sections of specific INTERAGUAS products and activities listed in Table 1, namely: (i) Water Resource Management – Diagnosis and Evaluation of the National Water Resources Plan, Water Resources Plan for Goiás State, Subterranean Waters in Paraná State, and Evaluation of Training Actions in ANA for SINGREH; (ii) Water and Irrigation: Master Plan for Irrigated Agriculture in the Federal District, Training on the Theme of Water in Rural Areas, Federal Dam Restoration Plan (PLANERB); (iii) Protection and Civil Defense – New Manuals on Protection and Civil Defense; (iv) Water Supply and Sanitation – Reuse of Sanitary Effluents, Com+Água 2 Reduction of Water Losses and Energy Efficiency, Auditing and Certification of Information about Sanitation, Regulation of Basic Sanitation, and the National Sewage Atlas: Depollution of Hydrographic Basins; and (v) Actions in the São Francisco River Basin – Ecological-Economic Macro-zoning of the São Francisco Basin, a study for the use of renewable energy alternative sources for PISF and technical, economic, and environmental feasibility studies, applying multi-objective and multi-criteria analysis to assess alternatives for supplying water to municipalities in the upper Piancó River and eventually those in neighboring basins through links with the canal also as part of the larger PISF. xxiv It may be more than a coincidence that the newly appointed MDR was formerly the last Executive Secretary of MI in the previous administration and participated in the closing seminar and assessment of the results of INTERAGUAS. At that event, the Executive Secretaries of two of the three participating Ministries and one of the ANA’s Directors participated in a panel and all praised the extent to which inter-institutional collaboration had advanced in the federal water sector as a result of the Project. xxv Ministério de Desenvolvimento Regional, Plano Nacional de Segurança Hídrica Vai Priorizar 114 Obras Para Oferta de Água, janeiro 15, 2019. This was one of the first public announcements by the new ministry. It also described the PNSH in the following terms (ICR team translation): “The National Water Security Plan will prioritize strategic and structural interventions throughout Brazil – including work by both the states and the Union. Infrastructure, such as dams, aqueducts, canals, and integration ‘axes’ [such as in the São Francisco River basin], all of which are considered necessary for water supply for human consumption and use in productive activities are being mapped. The Plan also takes various climate-related aspects into account, including droughts and floods.” xxviThe associated PAD annex, in turn, just briefly described the expected benefits from each of the project’s main components and concluded that “the overall benefits from this TA will be substantial for Brazil’s federal water sector because the Project would contribute to added value in strategic sectors including institution building, enhancing skills across institutions, and bringing innovative technical and financial solutions for the sustainable development and management of Brazil’s water resources.” xxviiThere was also a considerable lag between the MTR (June 2015) and the formal restructuring one year later, due to the bureaucratic delays and the time required for the participating institutions to prepare the internal restructuring paper.
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xxviii At project closing (October 30, 2018), the exchange rate was US$3.72 to the US dollar. Total depreciation of the Real occurring over the Project implementation period (i.e. 3.72-1.70 = 2.02), with roughly 75 percent taking place prior to the restructuring and the remaining 25 percent subsequently. xxix The Bank team had argued for an even larger cancelation of loan funds at the time of the MTR, but the Government did not agree. xxx According to the disbursement arrangements agreed with the Borrower, Bank loan funds were disbursed to the Government to a Designated Account in advance of their actual expenditure by these institutions. However, since actual expenditures proved to be lower than expected the unspent share of these funds were returned to the Bank. xxxiAs highlighted in the Borrower´s report “INTERÁGUAS demonstrated high aggregated value to integrate the planning and management units of the water sector, incorporating in the work routine of the institutions an intersectoral work approach towards more effective results in the sector” (p. 26, Executive Summary). xxxiiP. 28 of the Executive Summary. xxxiii Executive Order (Medida Provisória) MP686 of 2018. xxxivIn Brazil, basic sanitation comprises potable water supply, wastewater, solid waste management and urban drainage and storm water management. xxxv In fact, preparations of Carta-Consultas had already separately started for both new PROAGUA and a PMSS 3 operations, but the Government, again particularly the Secretariat of International Affairs – Secretaria de Assuntos Internacionais (SEAIN), believed, not incorrectly, that strengthening the coordination and more integrated approach among the key federal institutions intervening in the water sector was the top priority at the time and that there was a need for an external actor (i.e., the Bank) to help induce the necessary changes in institutional behavior in order for this to occur. Thus, the idea of two new parallel investment projects was abandoned in favor of a single large TA operation. According to the PAD (para. 13, pp. 4-5), “although the Federal Government has sufficient resources to fund most of its priorities in the water sector, there is strong demand for TA from the Bank, especially to improve the conceptual design of their programs and to support program implementation and monitoring and evaluation. ”In addition, it affirmed that “given the Bank’s longstanding engagement in the water sector, the GoB has requested that Bank engagement at the federal level be based on TA that is targeted to larger sectors and development challenges to avoid the proliferation of small TA loans.” xxxviAs the new CPF for FY2018-23 put it (pp. 5 and 7) “since late 2014, Brazil has been in a deep recession” and “a large structural fiscal imbalance lies at the heart of [its] present economic difficulties. ”According to this document (Table 1, p. 8), Brazil’s output gap (defined as the percent of potential Gross Domestic Product – GDP) declined sharply from an average of around +4 percent between 2012 and 2014, to -0.9 percent in 2015 and -4.5 percent in 2016, and was projected to be -4.3 percent in 2017. It also stated that “while economic growth was expected to resume in 2017, the strength of the recovery remains unclear.” xxxvii This was the case because in order to launch a bid process (using either external loan or domestic resources, or both) the federal institution involved needed to first have the corresponding activity amount approved in the annual budget and this was restricted by the contingenciamento. The budget constraints were also pointed out in the Borrower´s report as one of the reasons for the Project’s low financial implementation (p. 19, Executive Summary), and highlighted that the federal government's budget model was a limiting factor, even hindering the use of the loan resources (p. 2, Executive Summary). xxxviii Because of the budget constraints, MMA was restricted to contracting individual consultancies, thus essentially impeding its ability to finance larger studies and sharply limiting the scope of the activities it could undertake through the project. xxxix At the time of preparation, ANA needed the Project for a source of funding and not just as a source of TA and a platform to promote greater integration in the water sector. The use of the new revenue source was not constrained as the loan was. xl The Vice President, Michel Temer, who represented a different political party, became President and many of the Ministers and other high-level Federal Government officials, were replaced, thus constituting a major transformation in executive authority across the board. xli Among the four implementing institutions, ANA was less impacted by the change in federal administrations because it is led by Directors who are appointed (and can be reappointed) by the President and confirmed by the Senate for overlapping four-year terms. Its Directors also tended to be professionals with a technical and operational background in water resource management rather than purely political appointees as tends to be the case with Ministers and other high-level Federal officials.
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xlii The first restructuring within MI led to creation of a Secretariat of Irrigation, which did not exist at the time the project was appraised, and the second one resulted in its dissolution in 2016, following the change in administrations described above and the restructuring which had maintained the IOs related to the improvement of National Irrigation Policy and completion of the National Irrigation Plan, which the Ministry was unable to deliver. The main reason for this failure was the lack of priority within the MI given to this Policy which required strong leadership and articulation with other key stakeholders. In the end, the irrigation agenda at MI did not take off as expected at the time of the restructuring because the Ministry’s structure was not strengthened sufficiently to permit implementation of this task. xliii As mentioned in the Borrower´s support the water crisis in São Paulo contributed to the objective of a better integration among the federal institutions (p. 7, Executive Summary). xliv These included the following activities carried out by ANA: (i) elaboration of cost estimates for the maintenance and replacement of equipment for raw water extraction, including for irrigation, applied to the PISF and (ii) the development of regulatory strategies to define electric energy costs to be used as a basis for determining water extraction service tariffs for PISF also by ANA. In addition, with project resources, MI carried out: (i) a study for the use of renewable energy alternative sources for PISF and (ii) elaborated technical, economic, and environmental feasibility studies, applying multi-objective and multi-criteria analysis to assess alternatives for supplying water to municipalities in the upper Piancó River and eventually those in neighboring basins through links with the canal also as part of the larger PISF. xlv Even though the Presidency of the IMC rotated among the institutions on an annual basis, one of its key members occupied the Presidency for the critical years of 2015 and 2016 because he moved from an executive position in of these institutions (MI) to another (MCid). When interviewed for this ICR, he stated that a study tour to the United States for the IMC members financed by the Project had represented a kind of “turning point” in the role of the Committee not only because the participants were exposed to how water resources were managed in the US, but perhaps more importantly because the IMC members “bonded” personally and came to the realization that their respective institutions could become more effective in terms of the management of the critical natural resource that they were all concerned with if they were to do so collectively through a shared strategic agenda and actions rather than separately and independently as heretofore been the case. In addition, the participation of an expert in integrated WRM as the Director from ANA who was on the IMC at the time was also very important in this regard as he was able to convince his fellow Committee members of the importance of better coordinating and integrating their policies and activities in pursuit of more sustainable national water resource use. xlvi Various of the technical specialists in these institutions also interviewed for this ICR likewise commented on the importance of this study tour, especially since Spain had also structured its IWRM activities around river basins and possessed considerable prior experience dealing with periodic strong droughts in parts of the country. xlvii As mentioned in the full Borrower´s report (p. 14), “the Bank played an important role in fostering and facilitating interaction among the national implementing agencies” xlviii The 2017 book on drought management in the Northeast cited in footnote 16 above was one result of this ongoing Bank assistance to MI, for example, which was financed in parallel to the project’s implementation through a separate TA grant to that Ministry and in which many of the same staff on the Bank’s INTERAGUAS team, including two of the project’s Brasília-Based TTLs, also participated. Other outputs from this collaboration have been published by the Bank in collaboration with ANA and MI among other agencies, in a series called ÁguaBrasil (“Water Brazil”), which are listed in Annex 6 together with other supporting documents. In addition, linked to the Project and responding to a demand from ANA, the WB mobilized international experts consultants to carry out a TA supporting the design of a methodology for the management of the water quality issues in reservoirs in the semiarid region of Brazil using an integrated approach and providing recommendations to design a pilot project for application in the State of Ceará. xlix Some of the indicators agreed during the MTR were incorrectly reflected in the revised results frameworks included in the Bank’s system during preparation of the restructuring paper. However, the agreed changes in indicators are reflected in the restructuring paper (Section C. Proposed Changes). This situation could not be corrected after the restructuring paper was approved. Subsequent ISRs corrected this mistake by reflecting the results framework agreed with the client at MTR. lThis orientation was based on the Interim Guidelines on the Application of Safeguard Policies to Technical Assistance Activities and Trust Funds Administered by the Bank published in January 2014. li Use of an International Multilateral Organization to support procurement was envisaged and agreed during preparation. Initially MMA and MCid decided to hire the OAS for this assistance, but after facing some problems subsequently also agreed to contract IICA in early Page 82 of 83
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2014. This mainly affected MCid, which was not able to initiate any activity before 2014, but it did not lose any of the project resources that had initially been allocated to it in previous years because it had been able to transfer its yearly budget to IICA. A positive effect of this arrangement was that MMA’s decision not to delegate the selection of consulting firms to IICA allowed it to strengthen its internal capacity and represented the first time that the Ministry had taken on this responsibility in a project financed by the Bank. lii According to this source, in retrospect, the absence of a strong project coordinator was specifically identified by the implementing agencies as one of the factors behind the difficulties experienced in bringing together and better coordinating their actions and providing a clear vision as to how best to achieve the objectives set for the program as a whole, rather than for each of the components individually. liii The Borrower´s report pointed out that the Project design had challenges that were beyond the technical capacity of the implementing institutions (p. 27, Executive Summary). livThe Borrower´s report mentions that the ToRs for the various activities to be carried out under the project were not ready before loan effectiveness, being instead prepared during the first stages of the project, thus leading to delays (p. 23, Executive Summary).
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