Completion Report Project Number: 35379 Loan Number: 2012 July 2009 Philippines: MWSS New Water Source Development Project CURRENCY EQUIVALENTS Currency Unit – peso (P) At Appraisal At Project Completion (1 September 2003) (11 May 2009) P 1.00 = $0.0182 $0.021 $1.00 = P 55.04 P 47.637 ABBREVIATIONS ADB Asian Development Bank AWUAIP Angat Water Utilization and Aqueduct Improvement Project LDP Laiban Dam Project MLD million liters per day MWCI Manila Water Company, Inc. MWSI Maynilad Water Services, Inc. MWSS Metropolitan Waterworks and Sewerage System NRW nonrevenue water PMO project management office TA technical assistance WRP Wawa River Project NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this report, “$” refers to US dollars. Vice-President C. Lawrence Greenwood, Jr., Operations 2 Director General A. Thapan, Southeast Asia Department (SERD) Director A. Jude, Energy and Water Division, SERD Team leader Y. Tsujiki, Financial Analysis Specialist, SERD Team members A. Fernando, Assistant Project Analyst, SERD R. Frauendorfer, Principal Urban Development Specialist, SERD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i MAP I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 4 E. Project Schedule 4 F. Implementation Arrangements 4 G. Conditions and Covenants 4 H. Consultant Recruitment and Procurement 4 I. Performance of Consultants, Contractors, and Suppliers 5 J. Performance of the Borrower and the Executing Agency 5 K. Performance of the Asian Development Bank 5 III. EVALUATION OF PERFORMANCE 5 A. Relevance 5 B. Effectiveness in Achieving Outcome 5 C. Efficiency in Achieving Outcome and Outputs 6 D. Preliminary Assessment of Sustainability 6 E. Impact 6 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 6 A. Overall Assessment 6 B. Lessons 6 C. Recommendations 7 APPENDIXES 1. Project Framework 8 2. Appraisal and Actual Cost Estimates and Financing Plan 10 3. Status of Compliance with Loan Covenants 15 BASIC DATA A. Loan Identification 1. Country Philippines 2. Loan Number 2012-PHI 3. Project Title MWSS New Water Source Development Project 4. Borrower Metropolitan Waterworks and Sewerage System (MWSS) 5. Executing Agency MWSS 6. Amount of Loan - Original Loan Amount $3.260 million - Net Loan Amount $1.189 million 7. Project Completion Report Number PHI1105 B. Loan Data 1. Loan Processing Mission – Date Started 15 October 2001 – Date Completed 16 November 2001 2. Loan Negotiations – Date Started 29 July 2003 – Date Completed 29 July 2003 3. Date of Board Approval 14 October 2003 4. Date of Loan Agreement 24 November 2003 5. Date of Loan Effectiveness – In Loan Agreement 22 February 2004 – Actual 17 February 2004 – Number of Extensions 0 6. Closing Date – In Loan Agreement 30 June 2007 – Actual 21 October 2008 – Number of Extensions 2 7. Terms of Loan – Interest Rate Determined according to the London interbank offered rate (LIBOR)–based lending facility of the Asian Development Bank (ADB), with a front-end fee of 0.5% – Maturity (number of years) 10 – Grace Period (number of years) 3 8. Terms of Relending (if any) Not applicable – Interest Rate – Maturity (number of years) – Grace Period (number of years) – Second-Step Borrower ii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 25 May 2005 21 October 2008 41 months Effective Date Original Closing Date Time Interval 17 February 2004 30 June 2007 40 months b. Amount ($’000) Category Last Net or Original Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance 01 2,571.00 963.10 1,607.90 963.10 921.85 41.25 02 42.00 15.40 26.60 15.40 10.15 5.25 03 206.00 113.50 92.50 113.50 110.98 2.52 04 148.00 0.00 148.00 0.00 0.00 0.00 05 16.3.00 16.30 0.00 16.30 16.30 0.00 06 276.70 276.70 0.00 276.70 129.25 147.45 Total 3,260.00 1,385.00 1,875.00 1,385.00 1,188.53 196.47 Note: The figures may not add up to the totals given because of rounding. 10. Local Costs (Financed) - Amount ($) 344.85 - Percentage of Local Costs 56.73 - Percentage of Total Cost 21.27 C. Project Data 1. Project Cost ($’000) Cost Appraisal Estimate Actual Foreign Exchange Cost 1,300 886.79 Local Currency Cost 3,670 531.89 Total 4,970 1,418.68 2. Financing Plan ($’000) Cost Appraisal Estimate Actual Implementation Costs Borrower-Financed 1,710 230.15 ADB-Financed 3,260 1,188.53 Other External Financing 0 0 Total 4,970 1,418.68 ADB = Asian Development Bank. iii 3. Cost Breakdown, by Project Component ($’000) Component Appraisal Estimate Actual Part A: Development of New Water Source Projects 1. Wawa River Project 309.00 147.99 2. Angat Water Utilization and Aqueduct Improvement Project 2,100.00 946.57 3. Laiban Dam 2,049.00 11.69 Part B: Capacity Building 215.00 166.87 Part C: Interest and Fees 293.00 145.55 Total 4,966.00 1,418.68 Note: The figures may not add up to the totals given because of rounding. 4. Project Schedule Item Appraisal Estimatea Actual Part A. Development of New Water Source Projects A.1: Wawa River Project Consultant: CTI Engineering International Co. Ltd. Invitation of Expressions of Interest (EOI)/ Prequalification (PQ) (Advance Procurement) 20 June 2003 EOI/ PQ Submission 21 July 2003 ADB Approval of Technical Report 23 July 2004 Opening of Financial Proposal 10 August 2004 ADB Approval of Bid Evaluation Report 4 October 2004 Contract Negotiations 8 November 2004 Contract Date 15 February 2005 Start of Assignment January 2004 21 February 2005 Contract Completion July 2004 21 August 2005 A.2: Angat Water Utilization and Aqueduct Improvement Project A.2.1 Feasibility Study and Preliminary Design Consultant: NJS Consultants Co., Ltd. Invitation of EOI/ PQ (Advance Procurement) 20 June 2003 EOI/ PQ Submission 21 July 2003 ADB Approval of Technical Report 23 July 2004 Opening of Financial Proposal 10 August 2004 ADB Approval of Bid Evaluation Report 7 October 2004 Contract Negotiations 3 November 2004 Contract Date 17 February 2005 Start of Assignment February 2004 21 February 2005 Contract Completion March 2005 21 August 2005 A.2.2 Detailed Engineering Design Consultant: Schema Konsult Invitation of EOI/PQ 18 June 2005 EOI/PQ Submission 26 July 2005 Submission of Technical and Financial Proposals 30 March 2006 ADB Approval of Technical Report 5 July 2006 Opening of Financial Proposal 10 July 2006 iv Item Appraisal Estimatea Actual ADB Approval of Bid Evaluation Report 17 August 2006 Contract Date 21 September 2006 Start of Assignment February 2004 21 September 2006 Contract Completion March 2005 30 April 2008 A.3: Laiban Dam Component was canceled. Works were financed by the concessionaires. Start of Assignment March 2004 Contract Completion December 2006 Part B: Capacity Building Consultant: Daruma Technologies Inc. Invitation of EOI/PQ (Advance Procurement) 6 January 2004 EOI/PQ Submission 4 February 2004 Submission of Technical and Financial Proposals 26 April 2004 MWSS Approval of Technical Report 4 June 2004 Opening of Financial Proposal 9 June 2004 MWSS Approval of Bid Evaluation Report 21 October 2004 Contract Negotiations 8 November 2004 Start of Assignment January 2004 21 February 2005 Contract Completion July 2004 30 November 2005 a The appraisal estimates did not give as much detail on the project schedule in the implementation plan stated in Appendix 9 of the report and recommendation of the President (2003. Report and Recommendation of the President to the Board of Directors on a Proposed Technical Assistance Loan to the Government of the Philippines for the MWSS New Water Source Development Project. Manila (Loan 2012-PHI, for US$3.26million approved on 14 October). 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress 1 October 2003–31 December 2003 Satisfactory Satisfactory 1 January 2004–31 March 2004 Satisfactory Highly Satisfactory 1 April 2004–30 June 2004 Satisfactory Highly Satisfactory 1 July 2004–30 September 2004 Satisfactory Highly Satisfactory 1 October 2004–31 December 2004 Satisfactory Highly Satisfactory 1 January 2005–31 March 2005 Satisfactory Highly Satisfactory 1 April 2005–30 June 2005 Satisfactory Satisfactory 1 July 2005–30 September 2005 Satisfactory Highly Satisfactory 1 October 2005–31 December 2005 Satisfactory Highly Satisfactory 1 January 2006–31 March 2006 Satisfactory Highly Satisfactory 1 April 2006–30 June 2006 Satisfactory Highly Satisfactory 1 July 2006–30 September 2006 Satisfactory Highly Satisfactory 1 October 2006–31 December 2006 Satisfactory Satisfactory 1 January 2007–31 March 2007 Satisfactory Satisfactory 1 April 2007–30 June 2007 Satisfactory Satisfactory 1 July 2007–30 September 2007 Satisfactory Satisfactory 1 October 2007–31 December 2007 Satisfactory Satisfactory v Ratings Development Implementation Implementation Period Objectives Progress 1 January 2008–31 March 2008 Satisfactory Satisfactory 1 April 2008–30 June 2008 Satisfactory Satisfactory 1 July 2008–30 September 2008 Satisfactory Satisfactory 1 October 2008–31 December 2008 Satisfactory Satisfactory D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members Loan Processing Mission 15 Oct–16 Nov 2001 6 33 a, b, c, d, e, f Inception Mission 21 July–17 Aug 2004 2 10 a, g (intermittent) Review Mission 21 July–17 Aug 2004 2 10 a, g (intermittent) Review Mission 17–26 August 2005 2 10 a, g (intermittent) Review Mission 9–20 Oct 2006 2 10 a, g (intermittent) Review Mission 12–16 Nov 2007 3 11 a, g, h Review Mission 13–17 Oct 2008 2 10 g Project Completion Review 4–8 May 2009 2 10 g, h a = urban development specialist and project leader, b = financial analyst, c = project engineer, d = consulting services specialist, e = programs officer, f = environment specialist, g = project analyst, h = financial analysis specialist and project team leader.