The World Bank Report No: ISR14687 Implementation Status & Results Ukraine Urban Infrastructure Project (P095337) Public Disclosure Copy Operation Name: Urban Infrastructure Project (P095337) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 13-Jun-2014 Country: Ukraine Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Regional Development, Construction, Housing and Communal Services Key Dates Board Approval Date 28-Aug-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 01-Jun-2011 Last Archived ISR Date 24-Nov-2013 Effectiveness Date 10-Nov-2008 Revised Closing Date 30-Sep-2014 Actual Mid Term Review Date 31-May-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The revised Project objective is to improve the quality of water and wastewater services and increase energy efficiency of select water and sanitation utilities. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost INSTITUTIONAL CAPACITY 1.15 REHABILITATION INVESTMENTS 61.53 ENERGY EFFICIENCY 76.47 PROJECT MANAGEMENT 2.00 Overall Ratings Public Disclosure Copy 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 Implementation Status Overview After over 5,5 years since effectiveness the project continues making implementation progress, with disbursement reaching US$ 119.3 million (85% of the total loan amount). Total commitments to date represent around 99% of the loan amount. Out of 85 major contracts only 22 remain ongoing, others have been successfully completed in amount of US$ 67.2 million. All planned procurement processes have been completed, including the last major contract in Odessa for Pumping Station 8. Out of 14 participating cities, eight successfully completed implementation of planned subprojects and exceeded the target of 15% energy efficiency gain: Cherkassy - 30%, Drogobych - 25%, Kamyanets-Podilskyi - 21%, Kolomya Page 1 of 6 The World Bank Report No: ISR14687 - 35%, Nova Kakhovka -20%, Kharkiv - 19%, Chernihiv 32%, and Boryspil - 35%. Some of them continue to have minor procurement packages (shopping) under accumulated savings, as agreed with the Bank. Implementation is ongoing in six cities - Ivano-Frankivsk, Kalush, Kremenchuk, Novograd-Volynskii, Slovyansk and Odessa. Satisfactory completing of subprojects and achievement Public Disclosure Copy of targeted results in Novograd-Volynskii (disbursement rate - 99%), Kremenchuk (disbursement rate– 75%) and Ivano-Frankivsk (disbursement rate – 80%) by late July is likely. Implementation progress in Kalush, Odessa and Slovyansk has been relatively slow. Subproject in Slovyansk (disbursement rate – 72%) has been impeded by security situation in the city. Once the situation allows contractor mobilization, the outstanding two contracts can be completed in about two month time. Timely completion of subprojects in Odessa (disbursement rate - 74%) and Kalush (disbursement rate - 68%) is under the risk, facing very intensive implementation deadlines. Commencement of activities for the Pumping Station 8 in Odessa has been delayed substantially, but contract became effective on May 15, contractor is mobilized, and construction permit was issued on May 26. The detailed project implementation plan till the closing date with milestones for all major contracts in the six project cities has been agreed by counterparts and the Bank. Project closing date is September 30, 2014. Implementation pace has been high under the UIP Sida Grant. The disbursement level is low, but three major consulting assignments are well under implementation and disbursement is expected to pick up by June 2014 and continue during the additional disbursement period. Under the Bank executed component, the Water Sector note and the Solid Waste Management Study have been completed, printed and broadly disseminated. Under the recipient executed component of the Grant the assignment for feasibility studies for the Urban Infrastructure Project 2 (UIP2) subprojects is underway. Feasibility studies for five cities have been finalized and the contract was amended to include preparation of bidding documents. The Corporate and Capacity Development assignment (US$ 1.3 million) was signed on October 2, 2013 and implementation is well underway. The contract for preparation of feasibility studies for three cities under the District Heating Energy Efficiency Project (DHEEP) is also progressing well. The Grant closing date is June 20, 2014 and all three ongoing consulting contracts are likely to be completed on time and fully achieve set objectives. Fiduciary and safeguard arrangements for the UIP and the Grant are satisfactory to the Bank. There are no outstanding audits. Locations Country First Administrative Division Location Planned Actual Ukraine Donets'ka Oblast' Sloviansk ✔ ✔ Ukraine Not Entered Odessa Ukraine Zhytomyrs'ka Oblast' Novohrad-Volyns'kyy ✔ ✔ Public Disclosure Copy Ukraine Kherson Nova Kakhovka ✔ ✔ Ukraine Poltava Kremenchuk ✔ ✔ Ukraine Ivano-Frankivs'ka Oblast' Kolomyya ✔ ✔ Ukraine Kharkivs'ka Oblast' Kharkiv ✔ ✔ Ukraine Khmel'nyts'ka Oblast' Kamieniec Podolski ✔ ✔ Ukraine Ivano-Frankivs'ka Oblast' Kalush ✔ ✔ Page 2 of 6 The World Bank Report No: ISR14687 Country First Administrative Division Location Planned Actual Not Entered Not Entered Ivano-Frankivs'k ✔ ✔ Public Disclosure Copy Ukraine L'vivs'ka Oblast' Drogobych ✔ ✔ Not Entered Not Entered Donets'k ✔ Not Entered Not Entered Chernihiv ✔ ✔ Ukraine Cherkas'ka Oblast' Cherkasy ✔ ✔ Ukraine Kiev Boryspil' ✔ ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduced discharge of untreated wastewater Cubic Meter(m3) Value 137.00 137.00 0.00 during dry weather conditions - Odessa Date 01-Jan-2008 08-May-2014 30-Sep-2014 (Arkadia) Comments Works in Progress. The current value is same as basleline. Not yet due. Improved energy efficiency of water and Percentage Value 0.00 25.00 15.00 sewerage pumping systems Date 01-Jan-2008 11-Oct-2013 30-Sep-2014 Comments Target value is % reduction in Not yet due, but eight Every utility shall achieve at energy use from current level subprojects completed and least 15% energy energy use (measured in kWh per m3 exceeded the target of from current level (measured pumped). Baseline is 15% energy efficiency in kWh per m3 pumped) available for every utility but gain: Cherkassy - 30%, can not be reported in this Drogobych - 25%, format. Kamyanets-Podilskyi - 21%, Kolomya - 35%, Public Disclosure Copy Nova Kakhovka -20%, Kharkiv -19%, Chernihiv - 32%, Boryspil - 35%. Improved bacteriological quality of treated Percentage Value 24.00 24.00 5.00 drinking water- Ivano-Frankivsk Date 01-Jan-2008 08-May-2014 30-Sep-2014 Comments Percentage of Noncomplying Works are in Progress. Not water samples yet due. Page 3 of 6 The World Bank Report No: ISR14687 Reduction of pollution loads discharged to the Percentage Value 35.00 12.00 5.00 environment from WWTP - Ivano-Frankivsk Date 01-Jan-2008 11-Oct-2013 30-Sep-2014 Comments Works are in progress. Not Public Disclosure Copy yet due, but indicator has already substantially improved. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of utilities which completed business Number Value 0.00 2.00 3.00 plans and update annually performance targets Date 01-Jan-2008 11-Oct-2013 30-Sep-2014 Comments Number of Utilities Ivano-Frankivsk and Chernihiv submitted updated business plans in September 2013. Number of km of water and sewerage pipelines Kilometers Value 0.00 laid/replaced Date 01-Jan-2008 08-May-2014 15-Aug-2014 Comments 0 km replaced pipeline in 3,7 3,5 each of the cities: 6,0 5,0 Borispyl 4,0 4,8 Chernihiv 8,0 6,6 Drohobych 7,0 4,7 Kamyanets-Podylskiy 0,64 0,6 Kolomiya 4,0 5,7 Nova-Kakhovka 4,6 11,0 Novorhad-Volynskyy 4,2 Slovyansk 10,0 Very good progress. Number of utilities already achieved target values or exceeded it. Water losses reduction in city water distribution Percentage Value 0.00 7.00 3.00 Public Disclosure Copy network - Chernihiv Date 01-Jan-2008 08-May-2014 30-Sep-2014 Comments Work in Progress but already exceeded the target over two- fold. Number of pumping/booster stations Number Value 0.00 rehabilitated Date 01-Jan-2008 08-May-2014 30-Sep-2014 Comments 0 rehabilitated stations in 31 30 each of the cities: 12 12 Borispyl 144 12 Page 4 of 6 The World Bank Report No: ISR14687 Cherkassy 48 28 Chernihiv 23 25 Drohobych 35 31 Kalush 25 25 Public Disclosure Copy Kamyanets-Podylskiy 10 10 Kharkiv 31 32 Kolomiya 10 4 Kremenchuk 30 21 Nova-Kakhovka 2 28 Ivano-Frankivsk 21 Novorha d-Volynskyy 31 Slovyansk Number of utilities which completed energy Number Value 0.00 8.00 12.00 efficiency investment subprojects Date 01-Feb-2008 08-May-2014 15-Aug-2014 Comments Eight cities completed subprojects and exceeded expected results. For more are scheduled to completed by August 2014. Number of blockages in sewers eliminated per Number Value 0.00 2.00 2.00 month in Odessa Date 01-Jan-2008 11-Oct-2013 31-Dec-2013 Comments Works in progress but target achieved already. Data on Financial Performance (as of 27-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P095337 IBRD-48690 Effective 28-Aug-2007 26-May-2008 10-Nov-2008 31-Dec-2012 30-Sep-2014 P095337 TF-91769 Effective 22-Oct-2008 22-Oct-2008 22-Oct-2008 30-Jun-2012 20-Jun-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095337 IBRD-48690 Effective USD 140.00 140.00 0.00 122.00 18.00 87.00 P095337 TF-91769 Effective USD 5.52 5.52 0.00 1.59 3.89 29.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR14687 Public Disclosure Copy Key Decisions Regarding Implementation It is critical to continue intensive monitoring and regular implementation support for investment sub-projects in six participating cities with ongoing subprojects - Ivano-Frankivsk, Kalush, Kremenchuk, Novograd-Volynskii, Slovyansk, Odessa - to avoid delays in project implementation and ensure full compliance with the agreed milestones set in the detailed Project Implementation Plan. There will be particular focus on Odessa, which is the largest and technically most complex subproject, facing major delays. It is critical to closely follow the agreed implementation schedule for the Odessa Pumping Station 8 (PS8) contract. In April 2013 UIP sub-borrower utilities commenced loan repayment according to the repayment schedule. However, as tariff levels have not been adjusted sub-borrowers are facing major difficulties with repayment and some have accumulated arrears. Adjusting tariff levels, reducing operational cost, and setting up appropriate financing mechanisms for capital investments are critical to the sustainability of these investments and broadly for the sector. The Bank team is engaged in an active dialogue with the government on this important issue and will continue providing technical assistance. Restructuring History Level one Approved on 13-Jul-2012, Level 2 CD Decision on 17-Oct-2013 Public Disclosure Copy Related Projects There are no related projects. 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