Turkey - Antalya Water Supply And Sanitation Project

Document of The World Bank Report No: 27700 IMPLEMENTATION COMPLETION REPORT (TF-21388 CPL-38930 SCL-38936) ON A LOAN IN THE AMOUNT OF US$ 100.0 MILLION TO THE REPUBLIC OF TURKEY FOR ANTALYA WATER SUPPLY AND SANITATION PROJECT May 28, 2004  CURRENCY EQUIVALENTS (Exchange Rate Effective 2003) Currency Unit = Turkish Lira (TL) US$ 1 = TL 1,387,347 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS ALDAS Antalya Commercial Project Management Company AMM Antalya Metropolitan Municipality ANTSU Antalya Water (Private operating company) ASAT Antalya Water Supply and Sewerage Authority DSI State Hydraulic Works EIB European Investment Bank IB Iller Bank SPO State Planning Organization Vice President: Mr. Shigeo Katsu Country Director Mr. Andrew Vorkink Sector Manager Mr. Motoo Konishi / Lee Travers Program Team Leader Mr. Sudipto Sarkar Task Team Leader/Task Manager: Mr. Alptekin Orhon  TURKEY ANTALYA WATER SUPPLY AND SANITATION PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 4 5. Major Factors Affecting Implementation and Outcome 10 6. Sustainability 12 7. Bank and Borrower Performance 13 8. Lessons Learned 15 9. Partner Comments 16 10. Additional Information 31 Annex 1. Key Performance Indicators/Log Frame Matrix 32 Annex 2. Project Costs and Financing 33 Annex 3. Economic Costs and Benefits 34 Annex 4. Bank Inputs 35 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 37 Annex 6. Ratings of Bank and Borrower Performance 38 Annex 7. List of Supporting Documents 39 Annex 8. Project Components in the Loan. Agreement and Status of September 2003 40 Annex 9. Project Costs by Procurement Agreement 42 Annex 10. Updated Implementation and Financing Program by Year and Financier 43 Annex 11. Project Cost by Component and Source of Funds 44 Annex 12. Forecast and Actual Disbursements 45  Project ID: P009093 Project Name: ANTALYA WATER SUPPLY AND SANITATION Team Leader: Alptekin Orhon TL Unit: ECSIE ICR Type: Core ICR Report Date: May 28, 2004 1. Project Data Name: ANTALYA WATER SUPPLY AND L/C/TF Number: TF-21388; CPL-38930; SANITATION SCL-38936 Country/Department: TURKEY Region: Europe and Central Asia Region Sector/subsector: Water supply (51%); Sewerage (43%); Sub-national government administration (5%); Flood protection (1%) Theme: Water resource management (P); Other urban development (P); Pollution management and environmental health (P); Other financial and private sector development (S) KEY DATES Original Revised/Actual PCD: 09/27/1991 Effective: 10/03/1995 12/22/1995 Appraisal: 06/28/1994 MTR: Approval: 05/25/1995 Closing: 06/30/2003 06/30/2003 Borrower/Implementing Agency: ANTALYA WATER SUPPLY AND SEWERAGE AUTHORITY/ANTALYA WATER SUPPLY AND SEWERAGE AUTHORITY Other Partners: EUROPEAN INVESTMENT BANK (EIB), DSI, ILLER BANK STAFF Current At Appraisal Vice President: Shigeo Katsu Wilfried Thalwitz Country Director: Andrew N. Vorkink Rachel Lomax Sector Manager: Motoo Konishi Ricardo Halperin Team Leader at ICR: Alptekin Orhon Paul Blanchet ICR Primary Author: Klas Ringskog 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: U Sustainability: L Institutional Development Impact: M Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: U Project at Risk at Any Time: Yes  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The Staff Appraisal Report, dated April 26, 1995, lists the original project objectives as to: a. meet, at least cost, the demand for water supply, sewerage and stormwater drainage; b. develop new institutional arrangements for the management of municipal water supply, sewerage and stormwater drainage, and to introduce private sector participation in the operation of services; c. implement appropriate cost recovery policies to enhance self-financing of water and sewerage services; d. postpone the need to develop costly new water resources by improving the efficiency of utilization of existing sources and by reducing the volume of non-revenue water which is presently too high (46%); and e. improve and sustain environmental conditions and reduce health hazards that threaten the local population and the tourism industry by: (i) eliminating deficiencies in the collection and disposal of municipal sewage; and (ii) improving stormwater drainage in areas suffering seasonal flooding. The Loan Agreement lists the same objectives although the wording is not always identical to the one in the SAR. The Loan Agreement shortens the fourth objective to read "to improve the efficiency of utilization of existing water sources and of water usage in Antalya; and the fifth objective to read "to improve and sustain environmental conditions and reduce health hazards in Antalya." Assessment: The objectives were clear and responded to the needs to satisfy the project's economic feasibility (first and fourth objectives), its institutional feasibility (second objective), its financial feasibility (third objective); and its environmental feasibility (fifth objective). The technical feasibility was not in doubt for the water production and distribution works, nor for the collection of wastewater. However, the difficulties to create the political support for the introduction of the private operator (second objective) were underestimated. Interviews with stakeholders and Bank staff indicate that the borrower and the political authorities in Antalya only accepted the second objective (and subsequent loan condition) as necessary to receive the investment financing. 3.2 Revised Objective: The objectives were not revised. 3.3 Original Components: The original components as described both in the SAR and in the Loan Agreement comprised: Part A: Water supply works 1. Rehabilitation of existing distribution networks, including repair of some electrical installations, pumping stations and reservoirs. 2. Construction of about 24 new wells and replacement of eight pumps to increase production of three well fields. 3. Construction of about 40,000 m3 of distribution reservoir capacity to meet water demand and - 2 -  4. Replacement and extension of about 500 km of existing distribution networks to supply consumers, including construction of two new pumping stations, replacement of pumps and replacement of water meters. Part B: Sewerage works 1. Construction of a collection network of about 10 km including a small temporary wastewater treatment plant in the old part of Antalya and rehabilitation of the existing network and septic tank at the small-scale industrial area. 2. Construction of new collectors and collection networks of about 380 km to serve about 1,660 ha. in the western part of Antalya. 3. Construction of a preliminary wastewater treatment plant with a capacity of about 90,000 m3/day at the west end of Antalya, including a sea outfall. Part C: Stormwater drainage works 1. Construction of missing sections on the networks, such as culverts, curbs and channels, and removal of debris from existing rivers, channels and ditches. Part D: Technical assistance Provision of consultant services for: 1. Project implementation: a. Detailed design and construction supervision for the water supply, sewerage and stormwater drainage works. b. Hydrogeological survey of groundwater facilities. c. Site survey and investigations for mapping of the water supply systems; and d. Preparation of a comprehensive stormwater master plan. 2. Institutional development: a. Strengthening the Project Management Unit to assist the Borrower, the Antalya Metropolitan Municipality, the district municipalities and the Sirket in initiating, coordinating and supervising Project activities. b. Preparation of bidding documents, bid evaluation and contract negotiations for the private operation of water supply, sewerage and stormwater systems; and c. Assistance to the Sirket through a twinning agreement or contract with a water supply and sewerage operator for the management of the services, planning and administration of contracts and the implementation of a training program. 3.4 Revised Components: There were no major revisions to the components except under Part B (Sewerage works). Instead of constructing a small wastewater treatment plant in the old part of Antalya the sewage from this area will be directly pumped to the main collector which makes the intended small wastewater treatment plant superfluous. Under part B