Completion Report Project Number: 33218-013 Loan Number: 2170 August 2014 Maldives: Regional Development Project, Phase II— Environmental Infrastructure and Management This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency Unit – rufiyaa (Rf) At Appraisal At Project Completion 28 April 2005 11 September 2013 Rf1.00 = $0.077 $0.065 $1.00 = Rf12.96 Rf15.41 ABBREVIATIONS ADB – Asian Development Bank ADP – atoll development plan EIR – economic rate of return IDC – island development committee IDP – island development plan LLEE – Live and Learn Environmental Education MEE – Ministry of Energy and Environment MEEW – Ministry of Environment, Energy, and Water MHTE – Ministry of Housing, Transport, and Environment MHUD – Ministry of Housing and Environment MOAD – Ministry of Atolls Development MOFT – Ministry of Finance and Treasury MWSA Maldives Water and Sanitation Authority NGO – nongovernment organization NPSC – national project steering committee O&M – operation and maintenance PHAST – Participatory Hygiene and Sanitation Transformation PIU – project implementation unit PMC – project management consultant PMU – project management unit RDP I – Regional Development Project RDP II – Regional Development Project, Phase II – Environmental Infrastructure and Management RPAC – regional project advisory committee SPS – sewage pumping station STP – sewage treatment plant SWM – solid waste management UNICEF – United Nations Children’s Fund WDC – women’s development committee NOTES In this report, "$" refers to US dollars. Vice-President W. Zhang, Operations 1 Director General H. Kim, South Asia Department (SARD) Director Y. Fei, Urban Development and Water Division, SARD Team leader P. Cawrse, Urban Development Specialist, SARD 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 MAPS vi I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 2 C. Project Costs 6 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 8 G. Conditions and Covenants 9 H. Consultant Recruitment and Procurement 9 I. Performance of Consultants, Contractors, and Suppliers 10 J. Performance of the Borrower and the Executing Agency 11 K. Performance of the Asian Development Bank 11 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 12 C. Efficiency in Achieving Outcome and Outputs 12 D. Preliminary Assessment of Sustainability 13 E. Impact 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 14 APPENDIXES 1. Chronology of Main Events 16 2. Design and Monitoring Framework 18 3. Comparison of Estimated and Actual Project Costs 24 4. Annual Average Exchange Rates 25 5. Summary of Contracts 26 6. Project Financing Plan 27 7. Breakdown of Actual Disbursements of Loan Proceeds 28 8. Implementation Schedule 31 9. Status of Compliance with Major Loan Covenants 32 10. Financial and Economic Reevaluation 38 11. Gender Action Plan Implementation Achievements 40 12. Sustainability Analysis and Lessons Learned 43 BASIC DATA A. Loan Identification 1. Country Maldives 2. Loan Number 2170-MLD (SF) 3. Project Title Regional Development Project, Phase II – Environmental Infrastructure and Management 4. Borrower Republic of Maldives 5. Executing Agency Ministry of Finance and Treasury 6. Amount of Loan (At appraisal) SDR3,903,000 (approximately $6.000 million) (At closing) SDR3,457,081 (approximately $5.366 million) 7. Project Completion Report Number PCR: MLD 1463 B. Loan Data 1. Appraisal - Date Started 23 Aug 2004 - Date Completed 30 Aug 2004 2. Loan Negotiations - Date Started 19 Mar 2005 - Date Completed 19 Mar 2005 3. Date of Board Approval 28 Apr 2005 4. Date of Loan Agreement 20 Sep 2005 5. Date of Loan Effectiveness - In Loan Agreement 19 Dec 2005 - Actual 20 Apr 2006 - Number of Extensions 3 6. Closing Date - In Loan Agreement 31 Mar 2011 - Actual 09 Sep 2013 - Number of Extensions 3 7. Terms of Loan - Interest Rate 1% during the grace period; 1.5% thereafter - Maturity 32 years - Grace Period (number of years) 8 years ii 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 03 July 2006 26 August 2013 80.77 months Effective Date Original Closing Date Time Interval 20 Apr 2006 31 Mar 2011 59.37 months b. Amount (in SDR) Last Net Original revised Amount amount Amount Undisbursed Category allocationa allocationb cancelledc available disbursed balance 1 Civil works 212,000 2,078,278 150,738 1,927,540 1,927,540 0 2 Equipment, machineries, furniture, and construction materials 1,682,000 338,211 113,632 224,579 224,579 0 3 Overseas and local training, learning resources, workshop and research development 209,000 116,307 15,033 101,274 101,274 0 4 Consulting services 1,112,000 1,112,000 55,258 1,056,742 1,056,742 0 5 Project administration 206,000 125,204 49,954 75,250 75,250 0 6 Interest 133,000 133,000 61,304 71,696 71,696 0 7 Unallocated 349,000 0 0 0 0 Total SDR 3,903,000 3,903,000 445,919 3,457,081 3,457,081 0 Total in $ 6,000,000 6,042,914 674,461 5,365,564 5,365,564 a Per loan agreement. b Last reallocation made on 29 January 2013 (figures from Loan Financial Information System as of 18 September 2013). c Amount cancelled as of 9 September 2013. 9. Local Cost (Financed) - Amount ($): 1.035 - Percent of Local Costs: 28.700% - Percent of Total Costs: 13.040% iii C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 5.38 4.33 Local Currency Cost 2.12 3.61 Total 7.50 7.94 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 1.50 2.58 ADB Financed 5.80 5.25 Total 7.30 7.83 Interest/Service Charges Borrower Financed 0.00 0.00 ADB Financed 0.20 0.11 Subtotal 0.20 0.11 Total Project Cost 7.50 7.94 ADB = Asian Development Bank. 3. Cost Breakdown by Project Outputs ($ million) Outputs Appraisal Estimate Actual A. Base cost 1. Environmental infrastructure 3.07 4.70 2. Planning and environmental 0.48 0.35 management 3. Building management and 2.35 1.89 implementation capacity Subtotal (A) 5.90 6.94 B. Contingencies 0.61 0.00 C. Taxes and duties 0.79 0.89 D. IDC 0.20 0.11 Total 7.50 7.94 IDC = interest during construction. 4. Project Schedule Appraisal Actual Award Item Estimate of Contract Completion Date of Contract with Consultants 1. Project management consultant October 2005 May 2007 May 2013 2. Environmental awareness & community mobilization October 2006 January 2008 Sept 2011 Civil Works Contract 1. Construction of septic tank systema October 2007 iv Appraisal Actual Award Item Estimate of Contract Completion 2. Construction of reed bed treatment and outfalla April 2008 3. Design, supply, and install turnkey contract for sewerage and SPS at Alif Dhaal Atoll. Mahibadoo, September September Maldivesb April 2006 2010 2012 4. Design, supply, and install turnkey contract for sewerage and SPS at Laamu Atoll. Fonadhoo, September September Maldivesb October 2006 2010 2012 Equipment and Supplies November November First procurement October 2005 2010 2010 Last procurement June 2010 August 2012 March 2012 Training and Awareness Program First training October 2005 January 2008 March 2008 December Last training June 2010 October 2012 2012 Start of Operations December 1. Solid waste management pilot (Fonadhoo)a October 2006 2008 2. Solid waste management for Naifaru and Mahibadhooa April 2008 June 2010 Completion of Tests and Commissioning 1. Solid waste management pilot (Fonadhoo)a 2. Solid waste management for Naifaru and Mahidabooa aThis component was cancelled in a major change in project scope. bThe water supply component was cancelled. 5. Project Performance Report Ratings Ratings Implementation Period Development Objectives Implementation Progress Apr 2006–Apr 2007 S S May 2007–Dec 2007 S S Jan 2007–Mar 2008 S S May 2008–July 2009 S PS Aug 2009–Dec 2010 (midterm) S S Jan 2011–Nov 2011 S S Dec 2011–Dec 2012 (final) S S PS = partly satisfactory, S = satisfactory. v D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person- of Members Days Project inception 19–22 Jun 2006 2 8 a, d Project review 1 17–24 Apr 2007 1 8 c Project review 2 2–6 Dec 2007 3 15 b, c Project review 3 6–10 Apr 2008 1 5 c Project review 4 1–10 Aug 2009 1 10 a Project review 5 7–13 Dec 2010 2 14 a, e Project review 6 15–22 Nov 2011 1 8 c Project review 7 11–13 Dec 2012 1 3 c Project completion 5–12 Apr 2014 2 16 a, f a = project officer, b = safeguards specialist, c = urban development specialist, d = assistant project analyst, e= senior operations assistant, f = consultant. o o 72 00'E 80 00'E 72 o 00'E 74 o 00'E INDIA Bay of THILADHUNMATHEE UTHURUBURI Arabian Sea Bengal (Haa Alifu Atoll) Dhidhdhoo o o 10 00'N 10 00'N UPPER NORTH REGION Gailandhoo Channel Nolhivaranfaru SRI THILADHUNMATHEE DHEKUNUBURI LANKA (Haa Dhaalu Atoll) Laccadive Sea MILADHUNMADULU UTHURUBURI (Shaviyani Atoll) Funadhoo Male Moresby Channel o 6 00'N 6 o 00'N MALDIVES Alifushi MILADHUNMADULU DHEKUNUBURI MAALHOSMADULU UTHURUBURI (Noonu Atoll) o 1 o 00'N 1 00'N (Raa Atoll) Manadhoo Un'goofaaru I N D I A N O C E A N o o 72 00'E 80 00'E Naifaru FAADHIPPOLHU