Document of The World Bank Report No: ICR2095 Public Disclosure Authorized IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-37460 IDA-H0340 TF-50943) ON A CREDIT IN THE AMOUNT OF SDR 12.4 MILLION (US$ 16.9 MILLION EQUIVALENT) Public Disclosure Authorized AND ON A GRANT IN THE AMOUNT OF SDR 2.3 MILLION (US$3.1 MILLION EQUIVALENT) TO THE KINGDOM OF CAMBODIA Public Disclosure Authorized FOR A PROVINCIAL AND PERI-URBAN WATER AND SANITATION PROJECT February 29, 2012 Sustainable Development Department Southeast Asia Country Department Public Disclosure Authorized East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2011) Currency Unit = Riel (KHR) KHR1.00 = US$0.000253 US$ 1.00 = KHR 3,959 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank CAS Country Assistance Strategy CC Coordinating Committee (of the Borrower) for Water Supply and Sanitation CfD Center for Development CNDWQS Cambodian National Drinking Water Quality Standards CWG Clean Water Group DBL Design-Build-Lease D&D Decentralization & Deconcentration DFA Development Financing Agreement EA Environmental Assessment EMP Environment Mitigation Plan FMR Financial Management Report GGF Good Governance Framework IDA International Development Agency INT Department of Institutional Integrity (of the Bank) IPA Independent Procurement Agent ISR Implementation Status Report JICA Japanese International Cooperation Agency JSDF Japan Social Development Fund KPI Key Performance Indicator MDGs Millennium Development Goals M&E Monitoring and Evaluation MEF Ministry of Economy and Finance MIME Ministry of Industry, Mines and Energy NGO Non-Governmental Organization OBA Output-Based Aid O&M Operations & Maintenance PAD Project Appraisal Document PDO Project Development Objective PSP Private Sector Participation PWO Private Water Operators PPWSA Phnom Penh Water Supply Authority QAG Quality Assurance Group (of the Bank) QALP Quality Assessment of Lending Portfolio RGC Royal Government of Cambodia SOP Standard Operating Procedures TA Technical Assistance TTL Task Team Leader WASH Water, Sanitation, and Hygiene WATSAN Water and Sanitation WBI World Bank Institute WHO World Health Organization WSS Water Supply and Sanitation WTC Willing to Connect Vice President: Ms. Pamela Cox, EAPVP Country Director: Ms. Annette Dixon, EACTF Sector Manager: Mr. N. Vijay Jagannathan, EASIN Acting Sustainable Development Leader: Ms. Julia M. Fraser, EASTS Project Team Leader: Mr. Lixin Gu, EASIN ICR Team Leader: Mr. Lixin Gu, EASIN KINGDOM OF CAMBODIA Provincial and Peri-Urban Water and Sanitation Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ...................................................... 1 2. Key Factors Affecting Implementation and Outcomes ...................................................... 5 3. Assessment of Outcomes .............................................................................................. 10 4. Assessment of Risk to Development Outcome ............................................................... 15 5. Assessment of Bank and Borrower Performance ............................................................ 16 6. Lessons Learned .......................................................................................................... 19 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ..................... 20 Annex 1. Project Costs and Financing ............................................................................... 21 Annex 2. Outputs by Component ...................................................................................... 22 Annex 3. Economic and Financial Analysis ....................................................................... 24 Annex 4. Bank Lending and Implementation Support/Supervision Processes ....................... 29 Annex 5. Beneficiary Survey Results ................................................................................ 31 Annex 6. Stakeholder Workshop Report and Results .......................................................... 32 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR .............................. 35 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ................................ 44 Annex 9. List of Supporting Documents………………………………………………………45 Annex 10. PPWSA’s Operations Projections…………………………………………………46 Annex 11: Details of the 11 DBL/OBA Water Supply Facilities……………………………..48 Annex 12. PPWSA Water Quality Standards…………………………………………………50 Annex 13. Pictures from the project Map IBRD 39143 .......................................................................................................... 57 A. Basic Information Provincial and Peri- Country: Cambodia Project Name: Urban Water and Sanitation Project IDA-37460,IDA- Project ID: P073311 L/C/TF Number(s): H0340,TF-50943 ICR Date: 2/29/2012 ICR Type: Core ICR KINGDOM OF Lending Instrument: SIL Borrower: CAMBODIA Original Total XDR 14.70M Disbursed Amount: XDR 11.48M Commitment: Revised Amount: XDR 13.58M Environmental Category: B Implementing Agencies: Ministry of Industry, Mines and Energy (MIME); Phnom Penh Water Supply Authority (PPWSA) and Center for Development (CfD) Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 06/21/2001 Effectiveness: 11/16/2003 11/16/2003 Appraisal: 02/21/2002 Restructuring(s): 04/14/2010 Approval: 04/22/2003 Mid-term Review: Closing: 06/30/2008 06/30/2011 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Substantial Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Moderately Satisfactory Moderately Implementing Moderately Satisfactory Quality of Supervision: Unsatisfactory Agency/Agencies: Overall Bank Moderately Satisfactory Overall Borrower Moderately Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry Yes None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 15 14.5 Sanitation 5 4.5 Water supply 80 81 Theme Code (as % of total Bank financing) Other human development 17 10 Participation and civic engagement 17 5 Pollution management and environmental health 33 10 Urban services and housing for the poor 33 75 E. Bank Staff Positions At ICR At Approval Vice President: Pamela Cox Jemal-ud-din Kassum Country Director: Annette Dixon Ian Porter Country Manager Qimiao Fan Sector Manager: N. Vijay Jagannathan Keshav Varma Acting Sustainable Julia Fraser Development Leader Project Team Leader: Lixin Gu N. Vijay Jagannathan ICR Team Leader: Lixin Gu ICR Primary Authors: Sati Achath, JoAnne Nickerson ii F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The original PDO was to assist the Kingdom of Cambodia to move forward in fulfilling the Millennium Development Goals1 (MDGs) in water supply and sanitation by 2015. Revised Project Development Objectives (as approved by original approving authority) Objective was not revised (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Resolution of conflicts between districts/customers and operators without Indicator 1 : resorting to contract cancellations in a majority of private sector participation contracts. Two conflicts arose and were Value resolved between quantitative or 0 Not available the CWGs and the Qualitative) operators without resorting to contract cancellations. Date achieved 28-Feb-2002 30-June-2008 30-June-2011 Comments This indicator was included because experience in other countries had (incl. % demonstrated significant risks when conflicts arose and were not resolved, achievement) resulting in contract cancellation and under-achievement of the PDO. Indicator 2 : Operators own equity invested in the lease and OBA contracts Value quantitative or 0 $750,000 US$1.06 million Qualitative) Date achieved 28-Feb-2002 30-June-2008 30-June-2011 Achieved. Nine Design-Build-Lease (DBL) and two Output-Based Aid (OBA) water supply facilities were built in four project provinces. With private Comments operators’ equity for the 11 subprojects, the volume of private financing for (incl. % water supply reached $1.06 million, thereby exceeding the target of $0.75 achievement) million. The equity contribution from private providers was based on the 10% equity requirement for the DBL investments plus the upfront investments for the OBA projects. Indicator 3 : Percentage/Number of households with improved in-house sanitation facilities Value 0 30% 7,147 7,147 sanitation 1 MDG targets were the following: (i) Target 7.10: Increasing the proportion of rural population with