The World Bank Report No: ISR15366 Implementation Status & Results Mexico MX Water Utilities Efficiency Improvement Project (PROME) (P121195) Public Disclosure Copy Operation Name: MX Water Utilities Efficiency Improvement Project (PROME) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 09-Jul-2014 (P121195) Country: Mexico Approval FY: 2011 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): CONAGUA Comision Nacional del Agua Key Dates Board Approval Date 09-Nov-2010 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 18-Nov-2013 Last Archived ISR Date 03-Dec-2013 Effectiveness Date 25-Nov-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to improve the efficiency of Participating Water Utilities through the provision of Technical Assistance and Financing. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: WSS sector information and knowledge management improvement 4.75 Component 2: Modernization of the services of participating water utilities 157.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Implementation Status Overview This ISR covers the period November 2013-May 2014. Overall project implementation has experienced significant improved progress during the last calendar year (CY13), in which 25% of the Bank loan, corresponding to 127 activities and amounting to US$25 million, has been executed. Nearly 90% of this amount has already been disbursed (US$21.83M) and the remainder is expected to be disbursed in the near future. This represents a major step forward compared to previous years in which there was minimum or no budgetary allocation for project implementation and which, in the case of CY12, for example, prevented the execution of any actions under the project. Prospects for the remaining project implementation period remain positive based on the progress made Page 1 of 4 The World Bank Report No: ISR15366 during the first half of the current year, in which around 40% of the allocated funds has already been committed and the procurement of the first activities is now being initiated. To date, the project has disbursed US$34.05 million. Approximately a quarter of the loan proceeds were disbursed within the last month, corresponding to the CY13 activities, with some 34% of the total loan proceeds now having been disbursed. This reflects the great implementation progress achieved in CY13 and compares extremely favorably to previous Public Disclosure Copy calendar years in which no, or a very small number, of PROME activities were executed. For CY14, CONAGUA has obtained a budget allocation of close to US$100 million, including local counterpart funds, which could allow for the execution of a substantial amount of the remaining Bank loan funds during the current calendar year. CONAGUA anticipates that this budget allocation will allow some 280 activities to be implemented in 85 water utilities from all states in the country during CY14. During the last full supervision mission of the project, held from April 28 to May 2, 2014, CONAGUA and the Bank discussed a list of potential activities to be financed under Component 1, including support to the development of the national WSS information system that CONAGUA intends to establish, as well as staff training activities related to its use. CONAGUA also informed the Bank: (i) of their decision to cancel the OBA pilot Sub-component 2C and reallocate the funds from it to Sub-components 2A and 2B; and (ii) of their intention to request an 18 month extension of the project closing date in order to allow project activities to be satisfactorily concluded. The corresponding request for these changes was received by the Bank on June 16, 2014. Locations Country First Administrative Division Location Planned Actual Mexico Not Entered Valle de Mexico Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of water utilities whose collected Number Value 0.00 16.00 30.00 revenues in Mexican pesos per cubic meter Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 produced increases by 5 percent in real terms. Comments Number of water utilities whose energy Number Value 0.00 3.00 8.00 consumption in kWh per cubic meter produced Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 decreases by 5 percent Comments Public Disclosure Copy Number of water utilities showing a commercial Number Value 0.00 13.00 30.00 efficiency improvement of 5 percent or more. Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 Comments Average absolute increase of global efficiency Number Value 0.00 2.00 2.00 in water utilities that participated in the project Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 for at lease 2 years Comments Intermediate Results Indicators Page 2 of 4 The World Bank Report No: ISR15366 Indicator Name Core Unit of Measure Baseline Current End Target Component 1: Number of water utilities' Number Value 0.00 670.00 800.00 employees trained in issues related to Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 Public Disclosure Copy efficiency programs Comments Component 1: Number of publications related Years Value 0.00 3.00 7.00 to efficiency issues available at CONAGUA's Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 website. Comments Component 1: National Tariff system is Yes/No Value No Yes Yes available in user friendly website Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 Comments Component 2: Percentage of implemented Text Value 0 100 60 actions that achieved their set targets. (the Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 respective targets for the different activities Comments No actions were implemented under this comp. will be established by CONAGUA. in 2012 Comp 2: Number of water utilities that Number Value 0.00 0.00 1.00 participated in the OBD window Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 Comments Number of water utilities that the project is Number Value 0.00 54.00 50.00 supporting Date 31-Dec-2010 09-Jun-2014 31-Dec-2014 Comments Data on Financial Performance (as of 16-Jun-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P121195 IBRD-79730 Effective 09-Nov-2010 14-Jun-2011 25-Nov-2011 31-Dec-2014 31-Dec-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P121195 IBRD-79730 Effective USD 100.00 100.00 0.00 34.05 65.95 34.00 Disbursement Graph Page 3 of 4 The World Bank Report No: ISR15366 Public Disclosure Copy Key Decisions Regarding Implementation There are no key Decisions pending. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 4 of 4