The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) AFRICA | Kenya | Water Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 10 | ARCHIVED on 09-Dec-2019 | ISR39573 | Implementing Agencies: Water Services Trust Fund, The National Treasury Key Dates Key Project Dates Bank Approval Date: 13-Nov-2014 Effectiveness Date: 03-Dec-2014 Planned Mid Term Review Date: 31-Mar-2017 Actual Mid-Term Review Date: 02-Mar-2017 Original Closing Date: 30-Jun-2018 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to increase the number of people in low income areas with access to improved water supply and sanitation services in Kenyan towns and cities. This objective will be realized by incentivizing urban Water Services Providers to invest in water supply and sanitation improvement subprojects to benefit households in low income areas by applying one-off Output-Based Aid subsidies to make water and sanitation access affordable. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Implementation Support for project management, subproject preparation and supervision, and to contract an independent verification agent:(Cost $2.55 M) Output-Based Aid subsidies for water and sanitation subprojects:(Cost $8.56 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Unsatisfactory ►Moderately Satisfactory Overall Implementation Progress (IP) ►Moderately Unsatisfactory ►Moderately Unsatisfactory Overall Risk Rating ►Substantial ►Substantial Implementation Status and Key Decisions 12/9/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) A. Background. The Kenya Water and Sanitation OBA Fund for Low-Income Areas incentivizes Kenyan water service providers (WSPs) to extend water and sanitation services to low-income areas using a blended financing model of commercial loans from domestic lenders on market terms and results-based grants from the World Bank. WSPs also receive technical assistance to support sub-project preparation and implementation, including development of bankable proposals to secure commercial loans. B. Status. Under Component 1, the project has helped nine WSPs to prepare bankable proposals for financing, and US$2.4 million has been committed to technical assistance (TA) and project management activities. Under Component 2, eight WSPs have signed loan agreements with three commercial banks to finance nine sub- projects, valued at US$14.5 million. Three sub-projects are complete, and six are under construction. Most major construction works are complete in Naivasha, Nyeri, Kisumu, Embu, Murang’a South, and Mathira WSPs WSPs (approx 99 percent completion rate). However, household connections are pending and Embu and Nyeri need to complete payment to persons affected by resettlement under the project. In total, US$11.1 million of Bank funds have been committed (including for TA and output-based subsidy payments to WSPs against signed loans), and US$5.17 million has been disbursed (44 percent of project funds). To date, the project has delivered and independently verified a total of 7,604 household and 30 public water connections (52 percent and 75 percent of updated end of project targets, respectively), providing 43,733 people with access to improved water sources (54 percent of end of project target). As of November 2019, an additional 3,365 connections have been made and are pending verification for payment disbursement. C. Project Restructuring. A restructuring, including a 5 month closing-date extension was recently approved by the World Bank and was counter-signed by Kenya's National Treasury on November 29, 2019. The major changes to the project under the restructuring are as follows: 1. Cancellation of US$727,600 that will not be utilized 2. Revised disbursement of subsidy payment as follows: 10 percent upon securing the commercial loan; 45 percent upon verification of completion of major works; 45 percent against verified water and sanitation connections 3. Revised results framework with updated targets, including 120,500 total beneficiaries (down from 135,000). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- ►Moderate ►Moderate Macroeconomic -- ►Moderate ►Moderate Sector Strategies and Policies -- ►Moderate ►Moderate Technical Design of Project or Program -- ►Moderate ►Moderate Institutional Capacity for Implementation and Sustainability -- ►Moderate ►Moderate Fiduciary -- ►Moderate ►Substantial Environment and Social -- ►Moderate ►Substantial Stakeholders -- ►Substantial ►Substantial Other -- ►Moderate ►Moderate Overall -- ►Substantial ►Substantial Results PDO Indicators by Objectives / Outcomes 12/9/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Number of people in urban areas provided with access to Improved Water Sources under the project IN00774158 ►People provided with access to improved water sources (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 43,733.00 43,733.00 81,000.00 Date 05-Sep-2014 07-Dec-2018 07-Dec-2018 31-May-2020 IN00774159 ►People provided with access to improved water sources - Female (RMS requirement) (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,866.00 21,866.00 40,500.00 IN00774171 ►People provided with access to improved water sources - rural (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 IN00774172 ►People provided with access to improved water sources - urban (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 43,733.00 43,733.00 81,000.00 Number of people in urban areas provided with access to Improved Sanitation under the project IN00774160 ►People provided with access to improved sanitation services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 39,500.00 Date 05-Sep-2014 07-Dec-2018 07-Dec-2018 31-May-2020 IN00774173 ►People provided with access to improved sanitation services - Female (RMS requirement) (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 19,750.00 IN00774174 ►People provided with access to improved sanitation services - rural (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 IN00774175 ►People provided with access to improved sanitation services - urban (Number, Corporate Supplement) 12/9/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 39,500.00 Intermediate Results Indicators by Components Output-Based Aid subsidies for water and sanitation subprojects IN00774176 ►New household sewer connections constructed under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7,906.00 Date 15-Jul-2013 07-Dec-2018 07-Dec-2018 31-May-2020 IN00774178 ►New piped household water connections that are resulting from the project intervention (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,604.00 7,604.00 14,500.00 Date 15-May-2014 07-Dec-2018 07-Dec-2018 31-May-2020 IN00774180 ►Improved community water points constructed or rehabilitated under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 30.00 40.00 Date 15-May-2014 07-Dec-2018 07-Dec-2018 31-May-2020 Implementation Support for project management, subproject preparation and supervision, and to contract an independent verification agent IN00774177 ►Number of water utilities that the project is supporting (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 8.00 Date 15-Jul-2013 07-Dec-2018 07-Dec-2018 31-May-2020 IN00774179 ►Local private capital mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.50 12.50 12.50 12/9/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Date 15-Jul-2013 02-May-2019 02-May-2019 31-May-2020 IN00774181 ►Number of utilities accessing commercial loans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 9.00 Date 15-Jul-2013 02-May-2019 02-May-2019 31-May-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P132979 TF-16395 Effective USD 11.84 11.84 0.00 5.17 6.66 44% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132979 TF-16395 Effective 05-Sep-2014 05-Sep-2014 03-Dec-2014 30-Jun-2018 31-Dec-2019 Cumulative Disbursements 12/9/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Kenya Urban Water and Sanitation OBA Fund for Low Income Areas (P132979) Restructuring History Level 2 Approved on 16-Feb-2018 ,Level 2 Approved on 29-Oct-2019 Related Project(s) There are no related projects. 12/9/2019 Page 6 of 6