Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Kabul Municipal Development Program (P125597) SOUTH ASIA | Afghanistan | Social, Urban, Rural and Resilience Global Practice Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2014 | Seq No: 6 | ARCHIVED on 13-Dec-2016 | ISR24594 | Implementing Agencies: Kabul Municipality (KM) Key Dates Key Project Dates Bank Approval Date:03-Apr-2014 Effectiveness Date:11-Apr-2014 Planned Mid Term Review Date:15-Mar-2016 Actual Mid-Term Review Date:27-Apr-2016 Original Closing Date:31-Dec-2019 Revised Closing Date:31-Dec-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives are to: (i) Increase access to basic municipal services in selected residential areas of Kabul city; (ii) Redesign KM’s Financial Management system to support better service delivery; and (iii) Enable early response in the event of an eligible emergency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Infrastructure Upgrading Program (US$85 million):(Cost $85.00 M) Redesign KM’s Financial Management System (US$3.0 million):(Cost $3.00 M) Studies (US$5 million):(Cost $5.00 M) Project Management, Works Design and Supervision (US$17 million):(Cost $17.00 M) Contingency Emergency Response Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory 12/13/2016 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Overall Risk Rating  High  High Implementation Status and Key Decisions This ISR informs on Implementation Progress till September 21, 2016. KMDP could not be restructured after the Mid term Review as there was a change in leadership at Kabul Municipality, and the Bank got a request from Afghanistan's Ministry of Finance to restructure KMDP (November 18, 2016). An IDA mission to restructure KMDP will visit Kabul December 12-22, 2016. Project implementation remains satisfactory, and the Grant is expected to achieve the end of project indicator targets for physical improvements and the outcomes. In 30 months, KMDP has delivered 200 kilometers of high quality community roads, 272 kilometers of lined community drains, and 17 kilometers of trunk roads. KMDP’s achievements were recognized by the World Bank’s Vice President Awards program and commended by Afghanistan's Deputy Minister for National Environment Protection Agency for reducing air pollution and dust in Kabul's neighborhoods, making them livable. Grant disbursements (as of December 6, 2016) stand at US$30.93 million. By September 21, 2016, KMDP had committed US$48.5 million (44% of the Grant amount). Given the winter period in Kabul when construction work typically slows down, the Team will revise disbursement estimates during the restructuring mission December 12-22, 2016. Component A: Infrastructure Upgrading Program (US$85 million): 51 contracts for works valued at US$42.42 million have been awarded by September 21, 2016. ** 43 works contracts (US$37.2 million) are for "upgrading" or the delivery of basic economic infrastructure services in 43 "gozars" that occupy 144.9 hectares of land. Residents in these "gozars" have benefitted from the delivery of 160.4 km of paved community roads, 224 km of community drains, as well as small parks and public open spaces. The total number of direct beneficiaries in these" gozars" are 209,922 people. ** 7 Works contracts (US$5.1 million) have rehabilitated 18.05 kilometers of main or connector roads that link gozars to the main city fabric. 17.3 km are complete, and work is underway on 0.9 km. ** 1 Works contract was awarded for the emergency cleaning of about 2 km. of the Wazir Abad Kanal (US$0.098) to reduce the risk of flooding. Civil works executed by KMDP continue to be of high technical design and construction quality. A total of 503,894 people have benefited directly from the upgrading works in "gozars" and the rehabilitation of trunk roads. Over 70% of the beneficiaries are women and children. In addition there are 173,617 indirect beneficiaries including students, teachers and staff of several schools and institutions of higher education that are located in the upgraded areas. 14,850 tree saplings have been planted in 29 "gozars" with community contributions. Community solid waste collection mechanisms are functioning in most of the "gozars". About 50,630 man-months of temporary employment has been generated through the execution of Works contracts. KMDP's cost effective methodology for urban area upgrading is enabling equitable service delivery, strengthening the social capital of the beneficiary communities, and continues to entrench a culture of community participation in decision making over public expenditures that directly impact the community. There is a well functioning grievance redress mechanism. Of the 178 grievances received so far, all have been resolved, including the removal of obstacles in the rights-of-way of neighborhood roads, e.g. fences, containers, slabs, and septic tanks on the side walks. Complaints also focused on disruption of underground utilities. KMDP continues to deliver training for staff of contractors to ensure smooth implementation of Works subprojects, and distributes a monthly newsletter in 10 KM District offices, to the 10 KM departments, the Upgrading department of the Ministry of Urban Development Affairs. Component B: Redesign of KM's Financial Management System (US$3.0 million). An international Municipal Finance Advisor mobilized in March 2015. The following activities have been completed: (I) Advocacy paper for KM Leadership discussing limitations of current system to build support for a comprehensive budget; (ii) Model of an integrated comprehensive report by services in keeping with international standards; (iii) A report assessing the current IFMIS operations and the changes needed to ensure the needed hierarchy/authority and independence from line departments. (iv) Computerization of KM's database on registration of Transfers of Ownership of Real estate - 4 staff have been contracted to undertake data entry. The following work is underway ; (I) Empirical analysis of KM's financial performance; (ii) Report on the efficiency of collection of vehicle tax (KM collects 55% of what it could collect - could enhance revenues by US$7million per year); (iii) A proposal for the collection of safayee tax through the bi-monthly electricity bill; (iv) Report on Safayee Tax performance and Administration. (iv) Report on the impact of GPSs (financed by KMDP) on fuel consumption and budgetary savings. The consulting firm recruited for the Redesign of KM's Financial Management system has submitted all the deliverables including the final draft of IT reports. The Bank's task team will work with Kabul Municipality in December to assess the feasibility of implementation of the recommendations of the study within the life of KMDP, and restructure KMDP accordingly. Component C: Studies. While the HH survey and the master plan for drainage were dropped from KMDP, upon request from the Ministry of Finance US$1.0 million will be allocated for Feasibility Studies for the Solid Waste sector to inform future investments . Component D: Project Implementation, Design and Supervision: There has been turn over of key staff in KMDP (procurement), some decline in the momentum of implementation in the first quarter of this year, but appears to be picking up. Component E: Contingency Emergency Response: Not Applicable as this is not triggerred until there is an emergency. 12/13/2016 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) 12/13/2016 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) 12/13/2016 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  High  High Sector Strategies and Policies  --  High  High Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  High  High 12/13/2016 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Other  --  --  -- Overall  --  High  High Results Project Development Objective Indicators PHINDPDOTBL  Number of beneficiaries from upgrading in both planned and unplanned areas that are upgraded. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 445274.00 503894.00 775000.00 Date 14-Feb-2014 20-Mar-2016 21-Sep-2016 31-Dec-2019 PHINDPDOTBL  Number of people in urban areas provided with access to all season roads within a 500 meter range under the project. (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 235352.00 235352.00 775000.00 Overall Comments Intermediate Results Indicators PHINDIRITBL  Area Upgraded (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1101.00 1449.00 1773.00 Date 14-Feb-2014 20-Mar-2016 21-Sep-2016 31-Dec-2019 12/13/2016 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) PHINDIRITBL  Kilometers of community roads paved (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 160.42 200.00 0.00 Date 14-Feb-2014 20-Mar-2016 21-Sep-2016 31-Dec-2019 PHINDIRITBL  Kilometers of trunk road paved (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.59 17.30 0.00 Date 14-Feb-2014 09-Apr-2015 21-Sep-2016 31-Dec-2019 PHINDIRITBL  Kilometers of community drains lined (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 223.95 272.00 0.00 Date 14-Feb-2014 20-Mar-2016 21-Sep-2016 31-Dec-2019 PHINDIRITBL  Kilometers of trunk drains lined (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.17 13.17 0.00 Date 14-Feb-2014 09-Apr-2015 21-Sep-2016 31-Dec-2019 Overall Comments Target values for community roads and drains cannot be known. While the overall number of hectares for upgrading can be estimated from satellite imagery, the actual length of roads to be paved within each neighborhood or "gozar" is confirmed only upon field surveys for the annual upgrading program, as each "gozar" is different. 12/13/2016 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P125597 TF-17016 Effective USD 110.00 110.00 0.00 30.93 79.07 28% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P125597 TF-17016 Effective 11-Apr-2014 11-Apr-2014 11-Apr-2014 31-Dec-2019 31-Dec-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 12/13/2016 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kabul Municipal Development Program (P125597) There are no related projects. 12/13/2016 Page 9 of 9 Public Disclosure Copy