Turkmenistan - Water Supply and Sanitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No: 27758-TM IMPLEMENTATION COMPLETION REPORT (SCL-41710 TF-25244 PPFB-P3120) ON A LOAN IN THE AMOUNT OF US $30.3 MILLION TO THE GOVERNMENT OF TURKMENISTAN FOR THE TURKMENISTAN WATER SUPPLY AND SANITATION PROJECT April 29, 2004 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (Exchange Rate Effective November 2003) Currency Unit = Turkmen Manats TMM 1 = US$ 0.000201878 US$ 1.00 = TMM 4, 953.48 US $ 1.00 = 5,194 TMM (Appraisal) (Exchange Rate Effective at Closing Date February 2004) Currency Unit = Turkmen Manats TMM 1 = US$ 1.92231 US$ 1 = TMM 5,199.93760 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CC - Component Coordinator COM - Cabinet of Ministers DRWSA - Dashogvuz Regional Water and Sanitation Authority ECSSD - Environmentally and Socially Sustainable Development FSU - Former Soviet Union GDP - Gross Domestic Product GOT - Government of Tajikistan GOST - Russian Standards IBRD - International Bank for Reconstruction and Development ICB - International Competitive Bidding IS - International Shopping KAP - Knowledge, Attitudes and Practices MOA - Ministry of Agriculture MOH - Ministry of Health and Communal Services MWR - Ministry of Land Reclamation and water MAnagement NCB - National Competitive Bidding NGO - Non Governmental Organization O&M - Operation and Maintenance PCC - Project Coordination Committee PHRD - Japanese Policy and Human Resource Development Grant PIU - Project Implementation Unit PPF - Project Preparation Facility SAR - Staff Appraisal Report SES - State Epidemiological Services TOR - Terms of reference UFW - Unaccounted for Water UNICEF - United Nations Children's Fund  Vice President: Shigeo Katsu Country Director Dennis de Tray Sector Manager Sumter Lee Travers Task Team Leader/Task Manager: Jonathan Kamkwalala  TURKMENISTAN Water Supply and Sanitation 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 6 5. Major Factors Affecting Implementation and Outcome 10 6. Sustainability 14 7. Bank and Borrower Performance 14 8. Lessons Learned 17 9. Partner Comments 18 10. Additional Information 19 Annex 1. Key Performance Indicators/Log Frame Matrix 20 Annex 2. Project Costs and Financing 21 Annex 3. Economic Costs and Benefits 23 Annex 4. Bank Inputs 24 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 26 Annex 6. Ratings of Bank and Borrower Performance 27 Annex 7. List of Supporting Documents 28  Project ID: P008867 Project Name: Water Supply and Sanitation Team Leader: Jonathan S. Kamkwalala TL Unit: ECSIE ICR Type: Core ICR Report Date: April 30, 2004 1. Project Data Name: Water Supply and Sanitation L/C/TF Number: SCL-41710; TF-25244; PPFB-P3120 Country/Department: TURKMENISTAN Region: Europe and Central Asia Region Sector/subsector: Water supply (77%); General public administration sector (7%); Health (7%); Sanitation (7%); Other social services (2%) Theme: Rural services and infrastructure (P); Fighting communicable diseases (P); Other urban development (P); Pollution management and environmental health (S); Civic engagement, participation and community driven development (S) KEY DATES Original Revised/Actual PCD: 03/22/1995 Effective: 08/15/1997 08/15/1997 Appraisal: 12/11/1996 MTR: 11/15/2001 Approval: 05/27/1997 Closing: 02/28/2004 Borrower/Implementing Agency: GOVT. OF TURKMENISTAN/MINISTRY OF LAND RECLAMATION AND WATER MANAGEMENT (MWR) Other Partners: STAFF Current At Appraisal Vice President: Shigeo Katsu Johannes F. Linn Country Director: Dennis de Tray Yukon Huang Sector Manager: Hossein Razavi Robert B. Liebenthal Team Leader at ICR: Jonathan S. Kamkwalala Rita Klees ICR Primary Author: Sanyu Lutalo 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: HUN Institutional Development Impact: N Bank Performance: U Borrower Performance: U QAG (if available) ICR Quality at Entry: U Project at Risk at Any Time: Yes A Quality at Entry review by the Quality Assurance Group was not carried out for the project because this process was not required at the time.  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The project was part of the Aral Sea Program designed to address the environmental impacts of the Aral Sea disaster. It was specifically intended to improve the health of the population in the region most affected by the disaster, by investing in water and sanitation infrastructure. The project targeted under-served areas with particular attention to secondary cities and the rural population. Due to the significant sector institutional weaknesses both at the national and regional levels, the project was designed to include institutional restructuring and strengthening. Specific objectives of the project were (i) to improve water supply and sanitation in seven etrap centers and nine collective farms in Dashogvuz Velayet; and (ii) to initiate institutional changes in the water and sanitation sector to ensure sustainability of the project. The project objectives were highly relevant, given their consistency with both regional and national priorities to mitigate the impacts of the Aral Sea environmental disaster, as well as with the Bank's Country Assistance Strategy for Turkmenistan. 3.2 Revised Objective: The project objectives were not revised. 3.3 Original Components: The project consisted of four main components: (a) water supply improvements; (b) sanitation and health; (c) institutional strengthening; and (d) project management and construction supervision. Details of each of these components are outlined below. Component (a): Water Supply Improvements Cost: US$20.14 million (IBRD: US$15.36 million, GoT: US$4.78 million) This component was designed to rehabilitate and expand water systems in seven etrap centers and nine collective farms in Dashogvuz Velayet, and to provide a supply of spare parts and repair materials to assist in operating these systems for the first year after completion. Project identification and preparation determined that the piped water systems already in place, although in a state of disrepair, were appropriate for the region and the least cost solution for improving drinking water supplies. Since the major needs for access to a safe water supply were found outside the capital city, it was decided to focus the project on the secondary cities, etrap centers and rural farms. The three subcomponents of the water supply improvements included: 1. Urban Water Supply Systems Improvement (US$8.7 million). This sub-component mainly comprised rehabilitation of water facilities in seven etrap centers in the Velayet (Akdepe, Boldumsaz, Gubadagh, Kune-Urgench, Niyazovsk, Tagta, and Yilanly), from the water sources to the public street standpipes. The sub-component aimed to reduce water losses, reduce operation and maintenance costs, improve water quality by reducing the risk of groundwater infiltration to the system, as well as to provide extended hours of water supply to the project areas at adequate pressures. Specific activities under this sub-component included: