The World Bank Report No: ISR9590 Implementation Status & Results Nepal Urban Government and Development Program: Emerging Towns Project (P120265) Public Disclosure Copy Operation Name: Urban Government and Development Program: Emerging Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 13-Mar-2013 Towns Project (P120265) Country: Nepal Approval FY: 2011 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 10-May-2011 Original Closing Date 31-Jul-2016 Planned Mid Term Review Date 31-Jul-2014 Last Archived ISR Date 14-Dec-2012 Effectiveness Date 02-Oct-2011 Revised Closing Date 31-Jul-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to improve delivery and sustainable provision of basic services and priority infrastructure in the participating municipalities. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Service Delivery Improvement 5.00 Socio-economic Infrastructure Development 23.50 Institutional Development 6.62 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Implementation Status Overview The implementation support review carried out in January 2013 noted that many of the priority actions agreed during the previous mission in September 2012 have been met, albeit with delays. Implementation arrangements for the municipal block grants have been revised, following the establishment of the MoUD in May 2012 and the restructuring of implementation arrangements of the service delivery improvement component (municipal block grant) has been completed. Since the last review, some progress has been made in advancing the preparation of the Track I sub-projects and roles and responsibilities of PCO and TDF for the socio-economic infrastructure component have been clarified. However, there continues to be delayed in project implementation, and the project is still in problem status. Overall implementation progress is rated Moderately Unsatisfactory. Page 1 of 6 The World Bank Report No: ISR9590 Locations Country First Administrative Division Location Planned Actual Nepal Eastern Region Sunsari Public Disclosure Copy Nepal Western Region Palpa Nepal Western Region Kaski Nepal Eastern Region Jhapa Nepal Eastern Region Dhankuta Nepal Western Region Baglung Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage increase in the citizens who report Percentage Value 0.00 10.00 that the infrastructure services offered by the Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 municipality better meet their needsthan the Comments 49.2 percent of citizens in the Not yet due for measurement. previous year municipalities reported that infrastructure services improved relative to previous year (source: baseline survey). Target for project closure is 59.2 percent. Percentage increase in citizens who report that Percentage Value 0.00 10.00 they have participated in planning meetings at Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 ward level. Comments 24.7 percent of citizens Not yet due for measurement. reported participating in Public Disclosure Copy planning meetings at ward level in the municipalities. Source: baseline survey. Target for project closure is 34.7 percent. Total number of people benefited from urban Number Value 0.00 79558.00 100000.00 services and infrastructure improvements, of Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 which females and from disadvantaged groups. Comments Information collected by the MST from participating municipalities Page 2 of 6 The World Bank Report No: ISR9590 Total number of female beneficiaries Percentage Value 0.00 10.00 Sub Type Supplemental Public Disclosure Copy Total number of beneficiaries from Percentage Value 10.00 disadvantage groups Sub Type Supplemental Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Approved sub-projects that are on track in Percentage Value 0.00 0.00 90.00 meeting their infrastructure objectives Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Comments Indicator is monitored annually. Target for year 1 (FY12) was 60 percent. It has not been met since implementation has been delayed. None of the sub- projects has started yet. Approved social and utility sub-projects with Percentage Value 0.00 0.00 20.00 beneficiaries contributions Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Comments Indicator is monitored annually. Target for year 1 (FY12) was 10 percent. It has not been met since implementation has been delayed. None of the sub- projects has started yet. Municipal grant allocated to programs targeting Percentage Value 0.00 40.00 35.00 women, children and disadvantaged groups Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Public Disclosure Copy Comments The indicator is monitored annually. Based on information collected by the MST from the participating municipalities. Direct beneficiaries of capital projects financed Number Value 0.00 79558.00 50000.00 by the municipal grants Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Comments The indicator is monitored at mid term (FY14) and project closure (FY16). Current Page 3 of 6 The World Bank Report No: ISR9590 numbers based on information collected by the MSTfrom participating municipalities. Public Disclosure Copy Standard project appraisal systems established Text Value N0 Y1 Yes (systems established and and applied to all TDF sub-projects. applied) Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Comments Standard sub-project appraisal systems have been established at TDF. SoP have been approved. They are expected to be applied to all TDF sub-projects. Guidelines for enforcement of planning Text Value No No Yes (guidelines approved and byelaws and building codes approved by applied) MPPW and implemented by DUDBC in the Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 participating municipalities. Comments The guidelines are expected to be prepared in year 2 (FY13) and applied in year 3 (FY14) of project implementation. Policy guidelines and procedures for Text Value No Yes (systems and guidelines Yes (systems and guidelines municipalities on governance and budget revised, but not yet revised and implemented) planning updated and implemented by implemented) MoFALD Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Comments The indicator has been revised as part of project restructuring in February 2013. Previous indicator was not relevant since guidelines for fiscal transfers had been revised by MoFLAD under a Public Disclosure Copy separate program. Increase in municipal own-source revenues Percentage Value 15.00 25.00 25.00 Date 02-Oct-2011 08-Nov-2012 31-Jul-2016 Comments Indicator is monitored annually. The target for year 1 is 15 percent. The target has been met based on information collected by MST Page 4 of 6 The World Bank Report No: ISR9590 Number of municipalities with funded O&M Number Value 0.00 0.00 6.00 plans. Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Comments Indicator is monitored Public Disclosure Copy annually. The target for year 1 was 0. TDFs key financial ratios meet prescribed Number Value thresholds (D/E, DSCR, collection rate) Date 02-Oct-2011 31-Jan-2013 31-Jul-2016 Comments Noted below. TDF collection ratiio meets prescribed Number Value 75.00 90.00 thresholds. Sub Type Date 02-Oct-2011 08-Nov-2012 31-Jul-2016 Breakdown Comments Indicator monitored at mid- term (80 percent) and project closure (90 percent) TDF Debt Service Coverage Ratio meets Number Value 0.56 1.20 prescribed thresholds Sub Type Date 02-Oct-2011 08-Nov-2012 31-Jul-2016 Breakdown Comments Target values set for mid-term (1) and project closure (1.2) TDF Debt-Equity Ratio meets prescribed Number Value 8.00 6.00 thresholds Sub Type Date 02-Oct-2011 08-Nov-2012 31-Jul-2016 Breakdown Comments Target values set for mid-term (7) and project closure (6) Policy guidelines and procedures for Text Value No No Yes (developed and municipalities on physical planning and implmented) infrastructure development developed/updated Date 08-Feb-2013 08-Feb-2013 30-Jun-2015 and implemented by MoUD Comments New indicator introduced as part of project restructuring in February 2013 Public Disclosure Copy Data on Financial Performance (as of 22-Jun-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120265 IDA-49050 Effective 10-May-2011 30-Jun-2011 02-Oct-2011 31-Jul-2016 31-Jul-2016 P120265 IDA-H6610 Effective 10-May-2011 30-Jun-2011 02-Oct-2011 31-Jul-2016 31-Jul-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120265 IDA-49050 Effective XDR 8.80 8.80 0.00 0.00 8.80 0.00 Page 5 of 6 The World Bank Report No: ISR9590 P120265 IDA-H6610 Effective XDR 7.20 7.20 0.00 3.34 3.86 46.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The fifth implementation review has identified the need to increase project oversight at the MoUD level, and project ownership at DUDBC level; expedite implementation of Track I municipal sub-projects, and further develop the Track II municipal sub-project pipeline based on the agreed readiness criteria; and strengthen Institutional Development support to the municipalities. Furthermore, the adverse loan-grant mix issue for the socio-economic infrastructure component still remains to be resolved, and the budgetary issue needs to be addressed to ensure availability of the budget in line with the annual program of the project. Restructuring History Level two Approved on 22-Feb-2013 Public Disclosure Copy Related Projects There are no related projects. Page 6 of 6