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1 Public Disclosure Authorized LATIN AMERICA AND CARIBBEAN Dominican Republic Water Global Practice IBRD/IDA Investment Project Financing FY 2009 Seq No: 19 ARCHIVED on 31-Dec-2017 ISR30652 Implementing Agencies: Unidad Ejecutora del PASCT, Ministerio de Economía Planificación y Desarrollo (MEPyD), Dominican Republic Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:02-Apr-2009 Planned Mid Term Review Date:31-Jan-2012 Original Closing Date:30-Sep-2013 Project Development Objectives Effectiveness Date:25-Feb-2010 Actual Mid-Term Review Date:14-Nov-2012 Revised Closing Date:31-Mar-2018 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The objectives of the first phase of the proposed APL (the Project, APL I) are: (i) strengthening and consolidating the policy framework of the water and sanitation sector in the Dominican Republic; (ii) improving and expanding access to sanitation and wastewater treatment and disposal services in the Puerto Plata region; (iii) improving the financial and operational performance of CORAAPLATA, the regionâ s water utility; and (iv) enhancing operational and commercial performance of other regional utilities and preparing them to participate in the second phase of the Program (APL II). Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Public Disclosure Authorized Name Component 1: Technical Assistance for Sector Development:(Cost $3.52 M) Component 2: Rehabilitation and Expansion of Sanitation Services in Puerto Plata:(Cost $23.01 M) Component 3: Program Administration:(Cost $0.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial 12/31/2017 Page 1 of 11
2 Implementation Status and Key Decisions Project works are in the final stage, expected full completion before closing date. The last mission also marked the beginning of the PASCT s Information Completion Report (ICR) process. Progress to date by component can be summarized as follows: Component 1: Technical Assistance for Sector Development. All institutional strengthening activities financed under the Project have been successfully finalized. Specific results include: (i) the installation of new meters and the operationalization of new commercial systems in CORAAMOCA and COAAROM have resulted in revenue collection increases of about 25 percent in both utilities; and (ii) the doubling on the number of metered connections, contributing to enhance the commercial capacity of CORAAPLATA to measure water consumption. Component 2: Rehabilitation and Expansion of Sanitation Services in Puerto Plata. Activities revolve around the construction of sewage system, a wastewater pre-treatment plant and a submarine outfall. Wastewater pre-treatment plant is estimated to have reached 95 percent and would be concluded by mid-december. Minor works and the final connection to the submarine outfall are still pending. The submarine outfall reflects 80 percent progress, with an estimated completion date of February 28. Still pending the final dredging of the last 500 meters and the placement of the two final tubes. The works were suspended due to the heavy rains produced by the recent hurricane season. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Substantial Stakeholders -- Moderate Moderate Other Overall -- Substantial Substantial Results Project Development Objective Indicators Setting-up of the Water Sector Council (Yes/No, Custom) 12/31/2017 Page 2 of 11
3 N Y Y Y Target already met. The National Water Council was created by Presidential Decree on August 15, Additional Comment: Even though the Water Council was left inactive for a number of years after its creation, it has now been recently revived as the Consejo Directivo para la Reforma y Modernización del Sector APS y la Mesa de Agua (CODIREyMAPS) and is being used to drive sector reform. Development and adoption by the Water Sector Council of a National Strategy for the WSS sector (Text, Custom) No WSS has been developed Partially met: a strategy was developed with Project financing, but was not officially adopted by the Water Sector Council (given that passing the Water Law was deemed as a necessary condition to adopt it). A new sanitation strategy is currently under review by the Water Council and will likely be approved. Likelihood that the target will be reasonably met after project closing is high. Strategy developed and adopted by the Water Sector Council Likelihood that the target will be met after project closing is high. A water supply and sanitation strategy was developed in 2012 with project financing, but was not officially adopted by the Water Sector Council. At that time, it was decided that passing a new Water Law was a necessary condition to adopt the Strategy. With the momentum generated by the revival of the Water Sector Council (as CODIREyMAPS) and the establishment of the Mesa del Agua, discussions are ongoing regarding the water supply and sanitation strategy. While adopting of the strategy is a starting point, efforts are underway to support its implementation. For example, the strategic plans developed by the beneficiary water utilities, guided by the National Water Strategy. Similarly, as specified in the Strategy, the Government has started to implement the reform of the National Water Supply and Sanitation Institute (INAPA) by implementing the deconcentration process for the provincial urban utilities and the decentralization process for rural providers known as ASOCARS. 12/31/2017 Page 3 of 11
4 Consumers that receive access to improved or new sanitation and to wastewater treatment and disposal services in the Puerto Plata region (Text, Custom) Target to be 93 percent met by project closing. 128,000 Target to be 93% met by project closing. Estimates from CORAAPLATA and engineering designs for the submarine outfall show that the new wastewater treatment system have capacity to serve approximately 128,000 people when become operational in early However, the Project will only be able to provide new access to the new sewerage network to approximately 8,800 people, thus only 118,800 people will benefit from improved or new access to wastewater collection, treatment and disposal. Consumers that receive access to network sanitation in the Puerto Plata region (new access) (Text, Custom Breakdown) , Met: 8,800 new connections to the sanitation network. 18,000 Percentages of consumers and hotels that are connected to the sanitation network in Puerto Plata (Text, Custom) 60% for consumers and 50% for hotels Data under preparation Target to be partially met by project closing. 80% for consumers and 70% for hotels Target to be partially met by project closing. At present, 80 percent of consumers in the Puerto Plata area are connected to the sewerage network (including almost 100% in the Puerto Plata city center). As for the hotels, data is currently being gathered by CORAAPPLATA, and it was found that the largest hotel complexes will not be connected to CORAAPPLATA's network, but rather to privately-operated sewerage systems. Additional Comment: Nonetheless, the Project raised awareness of the need for the hotels to treat their effluents. 12/31/2017 Page 4 of 11
5 CORAAPLATA has identified 100% of its potential consumers and has made operational an active registry of at least 40,000 users, covering at least 60% of its operational areas (Text, Custom) No cadastre was available Partially met: CORAAPPLATA has identified 100% of potential consumers, current active registry increased from 8,200 to 16,100 connections (from approx. 27,000 people to 53,000, assuming 3.3 people/household - see ONE Censo 2010) The CORAA's commercial system is now operated under a contract by a private firm (AAA). Goal will be likely met during 2017, but not at project closing date. Target has been fully met. CORAAPPLAT A has identified 100% of its potential consumers and has made operating an active registry of at least 40,000 users, covering at least 60% of its operational areas Target has been fully met. CORAAPPLATA has identified 100 percent of potential consumers and its current active registry has increased in the last two years from 8,200 to 40,000 users. Management of the CORAA's commercial system was delegated to a private firm (AAA) Additional information on "improved financial and operational performance of CORAAPPLATA". Project-financed activities have also contributed to improving CORAAPPLATA's financial and operational performance. For example, a preliminary estimate of the 2017 operating ratio (ratio of total revenues to total operating expenses) puts it at 104 percent (not including electricity costs), compared with the baseline value of 50 percent and the original end-of-project target of 70 percent The financial situation of CORAAPPLATA has improved significantly as a result of both project activities and of the involvement of the private firm over the last years, and is expected to continue to improve beyond project closing. Compliance agreements have been signed on improving of cadastre, commercial systems, administrative and financial systems of CORAAPPLATA, CORAAMOCA and COAAROM (Text, Custom) No compliance agreement or sewerage O&M strengthening program has Partially met: compliance agreements with the Target fully met. Compliance agreements have been 12/31/2017 Page 5 of 11
6 been signed or developed. three CORAAs have been signed, but have not been monitored or enforced. Nevertheless, this has not affected their performance. The strengthening program for sewerage O&M with CORAAPPLATA is under preparation and is expected to be in place by project closing. signed on improving of cadastre, commercial systems, administrative and financial systems of CORAAPPLAT A, CORAAMOCA and COAAROM, as well as an sewerage systems O&M strengthening program for CORAAPPLAT A Target has been fully met. Compliance agreements with the three CORAAs were signed in 2009 (CORAAPPLATA) and 2011 (COAAROM and CORAAMOCA). Additional information on "enhanced operational and commercial performance of utilities". In addition, the project-financed micro-metering pilot showed significant results in all CORAAs. In the cases of CORAAMOCA and COAAROM, results indicate that for the cost of increasing the number of metered clients by approximately 10%, monthly revenues increased by 22% and 28%, respectively. In addition to the increased revenues, CORAAMOCA reported improvements in both non-revenue water (from 82 to 76%) and payment collection efficiency (from 84 to 88%), as a result of the metering pilot. Overall, payment collection efficiency was even found to increase by 60%, and average production cost has decreased by 36% between 2012 and In COOAROM, the pilot was put in place in four of COAAROM s sectors, one of which already had had meters installed in the past. COAAROM reported that in this sector, a 23% increase in revenues was recorded after the installation, whereas in the other sectors where households had never before been metered, revenues increased by 47%. In 2016, revenues were able to cover O&M costs. Additional : Although compliance agreements were signed, they were not properly monitored. Instead, the Government set up the Monitoring System of Public Administration, and all the CORAAs are currently reporting in this system. The CORAAs participating in the project has implemented commercial, administrative and financial activities aimed at improving their performance. Strengthening Program for Operation and Maintenance of Sewerage Systems of Puerto Plata. (Text, Custom) 12/31/2017 Page 6 of 11
7 PHINDIRITBL PHINDIRITBL N/A -- Target to be met by project closing date. he strengthening program for sewerage O&M with CORAAPPLATA is under preparation and is expected to be in place by project closing. A strengthening program designed and approved. Date 14-May Nov Mar-2018 Overall The progress on the numerical indicators above is based on the client s information system. Intermediate Results Indicators Completion of business and modernization plans for regional utilities (Text, Custom) N/A Business and modernization plans completed Target has been fully met: Business and modernization plans completed Business and modernization plans completed 80 percent of consumers are connected to network sanitation in Puerto Plata. (Text, Custom) 60% Partially met: almost 100% in the city center of Puerto Plata and 60% of consumers are connected to networks in the PP area. Target has been fully met: At present, 80 percent of consumers in the Puerto Plata area are connected to the sewerage network (including almost 100% in the Puerto Plata city center) 80% 12/31/2017 Page 7 of 11
8 PHINDIRITBL PHINDIRITBL PHINDIRITBL 70 percent of the occupancy capacity of hotel in the Puerto Plate region are connected to communal sanitation networks. (Text, Custom) 50% Data being gathered by CORAAPPLATA, but target likely not to be met by project closing. The largest hotel complexes will not be connected to CORAAPPLATA's network, but rather to either their own private sewerage systems or shared networks. Target will be partially met: data is currently being gathered by CORAAPPLATA, and it was found that the largest hotel complexes will not be connected to CORAAPLATA's network, but rather to privately-operated sewerage systems. 70% Cadastre operational (Text, Custom) N/A Cadastre operational Target has been fully met: CORAAPLATA's Cadastre is operational, identifying 100 percent of potential consumers and its current active registry has increased in the last two years from 8,200 to 40,000 users. Cadastre operational Metering coverage reaches 12% of all consumers in CORAAPLATA (Text, Custom) 12/31/2017 Page 8 of 11
9 PHINDIRITBL PHINDIRITBL 3% Metering coverage has reached 26% of all domestic users and 100% of large consumers in CORAAPPLATA operational areas. Metering has improved significantly under project financing as well as under the delegation contract with a private operator (AAA). Target has been fully met: Metering coverage has reached 26% of all domestic users and 100% of large consumers in CORAAPPLATA operational areas. Metering has improved significantly under project financing as well as under the delegation contract with a private operator (AAA). YR1 5%; YR2 4%; YR3 4%; YR4 12% Target revised during last restructuring. 60% of domestic and 60% of hotel sector consumers are 'Satisfied' or 'Highly Satisfied' with CORAAPLATA's performance based on results from consumer satisfaction surveys (Text, Custom) N/A Customer survey not yet started Target most likely be met before closing date: Customer survey has not yet started. The PIU and Task Team will prepare a quick survey to be implemented in the first quarter of calendar year 2018 before closing date. Surveys templates that are currently applied by other CORAAs will de used as reference to design the Puerto Plata's survey. No particular target as per restructuring Number of water utilities that the project is supporting (Number, Custom) /31/2017 Page 9 of 11
10 PHINDIRITBL Target has been fully met: the CORAAs supported by the Project are: COAAROM, CORAMOCA and COARAAPLATA. Project Successfully Implemented (Yes/No, Custom) N -- N Y Date 14-May Nov Mar-2018 Target most likely to be met by closing date: This indicator is being modified as part of the final restructuring package currently being processed by the Task Team, were all references to the APL II instrument are being removed from the PDO and Results Framework. The original indicator "70% of loan committed and 50% disbursed by the expected start of APL II" is being replaced by "Project Successfully Implemented". Overall Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IBRD Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IBRD Effective 02-Apr Sep Feb Sep Mar /31/2017 Page 10 of 11
11 Cumulative Disbursements Restructuring History Level Approved on 19-Jul-2013,Level 2 Approved on 30-Jun-2015,Level 2 Approved on 15-Sep-2015,Level 2 Approved on 22-Nov-2016,Level 2 Approved on 14-Jun-2017 Related Project(s) There are no related projects. 12/31/2017 Page 11 of 11
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