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Project Appraisal Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1942 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$200.0 MILLION TO THE REPUBLIC OF ANGOLA FOR A SECOND WATER SECTOR INSTITUTIONAL DEVELOPMENT PROJECT February 16, 2017 Public Disclosure Authorized Water Global Practice Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS December 31, 2016 Currency Unit = AKZ AKZ165 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AFD Agence Française de Développement (French Development Agency) AfDB African Development Bank AMU Asset Management Unit DA Designated Account DL Disbursement Letter DMA District Metering Area DNA Direcção Nacional de Águas (National Water Directorate) DPEAs Direcções Provinciais de Energia e Água (Provincial Department of Energy and Water) EMP Environmental Management Plan EMRP Emergency Multi-Sector Recovery Program EPAL Empresa Publica de Águas de Luanda (Luanda Public Water Company) ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMF Environment and Social Management Framework ESMP Environment and Social Management Plan ESSC Environmental and Social Screening Checklist EU European Union FCMU Financial and Contract Management Unit (Unidade de Coordenação de Projetos) FM Financial Management FMS Financial Management Specialist GDP Gross Domestic Product GoA Government of Angola GRS Grievance Redress Service IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IFR Interim Financial Report IMS Information Management System INRH lnstituto Nacional de Recursos Hidricos (National Institute for Water Resources) IPF Investment Project Financing IRBMP Integrated River Basin Management Plan IRSEA Instituto Regulador dos Serviços de Electricidade e Água e Saneamento de Aguas Residuais (Regulatory Institute for Energy and Water Services) ISP Implementation Support Plan IWRM Integrated Water Resources Management LCS Least Cost Selection MDGs Millennium Development Goals MINEA Ministério da Energia e Águas (Ministry of Energy and Water) NCB National Competitive Bidding NPV Net Present Value O&M Operations and Maintenance PFM Project Financial Management PEMFAR Public Expenditure Management and Financial Accountability Review PIM Project Implementation Manual PIP Public Investment Program PDO Project Development Objective PLR Performance and Learning Review PPIAF Public-Private Infrastructure Advisory Facility PWSU Provincial Water and Sanitation Utility REFURGH Regime Econômico e Financeiro de Utilização Geral dos Recursos Hídricos (General Economic and Financial Framework for Water Resources) QCBS Quality and Cost-Based Selection RAP Resettlement Action Plan RPF Resettlement Policy Framework UFW Unaccounted-for Water WBG World Bank Group WRM Water Resources Management WSIDP Water Sector Institutional Development Project WSS Water Supply and Sanitation YLL Years of Life Lost Regional Vice President: Makhtar Diop Country Director: Elisabeth Huybens Senior Global Practice Director: Guang Zhe Chen Practice Manager: Wambui G. Gichuri Task Team Leader: ● Luiz Claudio Martins Tavares ● Camilo Lombana-Córdoba REPUBLIC OF ANGOLA Second Water Sector Institutional Development Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT........................................................................................................ 1 A. Country Context ................................................................................................................... 1 B. Sectoral and Institutional Context ........................................................................................ 2 C. Higher Level Objectives to which the Project Contributes ................................................. 7 II. PROJECT DEVELOPMENT OBJECTIVES...................................................................... 8 A. PDO...................................................................................................................................... 8 B. Project Beneficiaries ............................................................................................................ 8 C. PDO Level Results Indicators .............................................................................................. 9 III. PROJECT DESCRIPTION .................................................................................................. 9 A. Project Components ............................................................................................................. 9 B. Project Financing ............................................................................................................... 12 C. Project Cost and Financing ................................................................................................ 13 D. Lessons Learned and Reflected in the Project Design ....................................................... 13 IV. IMPLEMENTATION ........................................................................................................ 14 A. Institutional and Implementation Arrangements ............................................................... 14 B. Results Monitoring and Evaluation ................................................................................... 14 C. Sustainability...................................................................................................................... 15 V. KEY RISKS ....................................................................................................................... 15 A. Overall Risk Rating and Explanation of Key Risks........................................................... 15 VI. APPRAISAL SUMMARY ................................................................................................ 18 A. Economic and Financial Analysis ...................................................................................... 18 B. Technical ............................................................................................................................ 20 C. Financial Management ....................................................................................................... 20 D. Procurement ....................................................................................................................... 21 E. Social (including Safeguards) ............................................................................................ 22 F. Environment (including Safeguards) ................................................................................. 24 G. Other Safeguards Policies Triggered ................................................................................. 24 H. World Bank Grievance Redress ......................................................................................... 25 Annex 1: Results Framework and Monitoring.............................................................................. 26 Annex 2: Detailed Project Description ......................................................................................... 35 Annex 3: Implementation Arrangements ...................................................................................... 53 Annex 4: Implementation Support Plan ........................................................................................ 73 Annex 5: Economic Analysis........................................................................................................ 76 Annex 6: Overview of Activities Supported under WSIDP I and II ............................................ 96 Annex 7: Map (IBRD 42451) ....................................................................................................... 98 PAD DATA SHEET Angola Second Water Sector Institutional Development Project (P151224) PROJECT APPRAISAL DOCUMENT AFRICA GWA08 Report No.: PAD1942 . Basic Information Project ID EA Category Team Leader(s) P151224 B - Partial Assessment Luiz Claudio Martins Tavares, Camilo Lombana-Córdoba Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 10-Mar-2017 30-Sep-2023 Expected Effectiveness Date Expected Closing Date 30-Jun-2017 31-Mar-2024 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Wambui G. Gichuri Guang Zhe Chen Elisabeth Huybens Makhtar Diop . Borrower: Republic of Angola Responsible Agency: Ministry of Energy and Water Contact: Luis Filipe da Silva Title: Secretario de Estado das Aguas Telephone No.: (244-222) 339-988 Email: [email protected] . Project Financing Data(in USD Million) [ X ] Loan [ ] IDA Grant [ ] Guarantee [ ] Credit [ ] Grant [ ] Other Total Project Cost: 545.00 Total Bank Financing: 200.00 Financing Gap: 100.00 i Borrower 95.00 International Bank for Reconstruction and 200.00 Development FRANCE French Agency for Development 150.00 Total 445.00 . Expected Disbursements (in USD Million) Fiscal 2017 2018 2019 2020 2021 2022 2023 2024 Year Annual 0.00 28.00 28.00 35.00 40.00 35.00 28.00 6.00 Cumulati 0.00 28.00 56.00 91.00 131.00 166.00 194.00 200.00 ve . Institutional Data Practice
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