KENYA

NAIROBI RIVERS BASIN REHABILITATION AND RESTORATION PROGRAM:

SEWERAGE IMPROVEMENT PROJECT

PROJECT COMPLETION REPORT

(PCR)

AHWS DEPARTMENT

September 2017

AFRICAN DEVELOPMENT FUND

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Language: English

Original: English

AFRICAN DEVELOPMENT FUND

PROJECT: NAIROBI RIVERS BASIN REHABILITATION AND

RESTORATION PROGRAM: SEWERAGE IMPROVEMENT PROJECT

COUNTRY: KENYA

PROJECT COMPLETION REPORT

December 2016

PROGRAM

COMPLETION

TEAM

Task Manager:

Team Member:

Sector Manager:

Sector Director:

Director General:

Nancy A.N. A. OGAL

Christopher MUTASA

Osward CHANDA

Osward CHANDA (OIC)

Gabriel NEGATU

Senior Water & Sanitation Engineer, RDGE.2/AHWS.2

Principal Financial Analyst, RDGE.2/AHWS.2

AHWS.2

AHWS & AWF

RDGE

PEER REVIEWERS

Walter ODERO, Macroeconomist, RDGE.0

Justin ECAAT, Principal Environmental Safeguards Specialist, RDGE/SNSC

Benson NKHOMA, Principal Water & Sanitation Specialist, COMW/RDGS.2

2

I BASIC DATA

A Report data

Report date Date of report: 30th January 2017

Mission date (if field mission) From: 21st November 2016 To: 2nd December 2016

B Responsible Bank staff

Positions At approval At completion

Regional Director Ms. Diaretou GAYE Mr. Gabriel NEGATU

Country Manager Ms. Domina BUZINGO N/A

Sector Director Mr. Ali KIES Mr. Mohamed EL AZIZI

Sector Manager Mr. Sering B. JALLOW Mr. Osward CHANDA

Task Manager Mr. Osward CHANDA Mr. John SIFUMA

Alternate Task Manager N/A

PCR Task Manager Ms. Nancy A.N.A. OGAL

PCR Team Member Mr. Christopher MUTASA

C Project data

Project name: Nairobi Rivers Basin Rehabilitation and Restoration Program: Sewerage Improvement Project (NaRSIP)

Project code: P-KE-EB0-003 Instrument number(s): 2100150023655

Project type: ADF Loan Sector: Water Supply and Sanitation

Country: KENYA Environmental categorization (1-3): 1

Processing milestones – Bank approved

financing only (add/delete rows depending

on the number of financing sources)

Key Events (Bank approved financing

only)

Disbursement and closing dates (Bank

approved financing only)

Financing source/ instrument1: 2100150023655 (UA 35 million)

Date approved: 6th December 2010 Cancelled amounts: n/a Original disbursement deadline: 31st

December 2015

Date signed: 23rd March 2011 Supplementary financing: n/a Original closing date: 31st December 2015

Date of entry into force: 9th December

2011

Restructuring (specify date & amount

involved): n/a

Revised (if applicable) disbursement

deadline: 30th December 2016

Date effective for 1st disbursement: 31st

January 2011

Extensions (specify dates): 365 days (1 year)

10th June 2015

Revised (if applicable) closing date: 30th

December 2016

Date of actual 1st disbursement: 9th

December 2011

PROJECT COMPLETION REPORT FOR PUBLIC SECTOR OPERATIONS (PCR)

AFRICAN DEVELOPMENT

BANK GROUP

3

Financing source/instrument (add/delete

rows depending on the number of financing

sources):

Disbursed amount

(amount):

Percentage

disbursed (%):

Undisbursed

amount:

Percentage

undisbursed (%):

ADF Loan UA 29,306,175.87 83.73% UA 5,693,824.13 16.27%

Government of the Republic of Kenya USD 5,740,000 79.94% USD 1,439,987.10 20.06%

TOTAL (Approximate figures in light

of prevailing UA/ USD conversion rates)

UA 33,546,215.87 84.14% UA 6,323,784.13 15.86%

Financing source/instrument (add/delete

rows depending on the number of financing

sources):

Committed amount

(UA):

Percentage

committed (%):

Uncommitted

amount (UA):

Percentage

uncommitted (%):

ADF Loan 35 million 100% - -

Government of the Republic of Kenya 4.87 million 100% - -

TOTAL 39.87 million 100% - -

Co-financiers and other external partners: See above

Executing and implementing agency (ies): Ministry of Water & Irrigation (MWI) and Athi Water Services Board (AWSB)

D Management review and comments

Report reviewed by Name Date reviewed Comments

Country Manager n/a

Sector Manager Mr. Osward CHANDA

Regional Director (as chair of Country

Team) Mr. Gabriel NEGATU

Sector Director (OIC) Mr. Osward CHANDA

II Project performance assessment

A Relevance

1. Relevance of project development objective

Rating* Narrative assessment (max 250 words)

4 Overview. The Development Objective (DO) of the Project was to improve the access, quality, availability, capacity and

sustainability of wastewater services in Nairobi for a sustainable environment through the rehabilitation and extension of

sewerage services and wastewater treatment facilities.

Relevance – Strategies/Policies. The DO was pertinent with respect to strategies and policies in place at appraisal. The

Project Appraisal Report (PAR) reported that the Government of Republic of Kenya (GOK) Vision 2030 and Mid Term

Plan (MTP) for 2008 – 2012 underscored the importance of investing in Water Supply and Sanitation (WSS) services as a

fundamental need for productive livelihoods, giving WSS prominence among the flagship projects. The Project is part of

the Nairobi Rivers Rehabilitation and Restoration Program (NRRRP) which aims to improve the environment of Nairobi

city and in particular the polluted rivers through amongst other strategies, expanding waste treatment systems. The NRRRP

had been elaborated in the Nairobi Sewerage Master Plan Study (1998) and detailed in the Feasibility Study (2010).

Additionally, pillar I of the Bank Country Strategy Paper (CSP) for Kenya (2008-2012) focused on supporting

infrastructure for enhance growth and had identified inadequate wastewater management as a threat to the environment

including water resources. Pillar I of the 2014 – 2018 CSP notes the importance of the water and sanitation sector.

Relevance - Beneficiaries. The Project underwent consultations with national and local stakeholders which deemed it a

priority project. Documentation exists demonstrating the stakeholder consultation process that was undertaken both at

planning and implementation stages and their respective outcomes. Sampled quantitative and qualitative data reviewed by

the PCR mission including testimonials from affected business enterprises and households demonstrate the beneficiaries’

positive perceptions of the Project.

* For all ratings in the PCR use the following scale: 4 (Highly satisfactory), 3 (Satisfactory), 2 (Unsatisfactory), 1 (Highly unsatisfactory)

4

2. Relevance of project design

Rating* Narrative assessment (max 250 words)

3 Overview. As specified in the appraisal document, the Project comprised three components, namely: i) wastewater

infrastructure (UA 33.532 million), ii) Sanitation, Hygiene and Social Environmental Support (UA 3.273 million) and iii)

Institutional Support and Project Management (UA 3.064 million).

Design. Noteworthy aspects of design included:

A steering committee of the NRRRP, in collaboration with then Ministry of Environment and Mineral Resources

- now Ministry of Environment and Natural Resources (MENR), was to be constituted to monitor and guide the

Project implementation during its quarterly coordination meetings. The MENR being responsible for the NRRRP

would be in a better position to liaise and coordinate between the stakeholder Ministries and statutory bodies to

facilitate and monitor Project implementation.

Athi Water Services Board (AWSB) jointly with the City Council of Nairobi (CCN), now the Nairobi County

Government (NCG), and the Nairobi Water and Sewerage Company (NWSC) would be responsible for

implementation of the promotional hygiene and sanitation components with support from Non-Governmental

Organization (NGOs) and Community Based Organizations (CBOs). Involving the key actors would guarantee

advocating best practices and sustained awareness on sanitation and thereby address the past problem of low

sewerage connection rates within the Project area.

The procurement for the physical infrastructure works would be a two-stage tendering processes for design and

construction respectively.

Implementation of Design. The implementation structures put in place were appropriate for the context as they aimed to

address capacity gaps within the Project executing (MWI) and implementing agencies (AWSB). The PCR mission however

noted that the steering committee did not fulfil its mandated role. This impacted negatively on key processes and functions

including timely acquisition of wayleaves, security of Project sites and of Project staff, monitoring of some of the Project

outcomes, and implementation of some activities under the promotional hygiene and sanitation. As a result, aspects of E&S

safeguards were not systematically assessed and reported on although these formed the basis for the Project’s objectives.

In terms of Project design, such reporting would typically be important for the proactive identification of problems and any

eventual modification in scope.

The PCR mission learnt that a Consultancy firm was engaged to undertake tasks under the promotional hygiene and

sanitation components and that both the NCG and the NWSC were involved variously at implementation. Officials of the

MENR expressed concerns on the sustainability of this approach in light of the need for continuity in sensitization efforts

under the NRRRP. NWSC also lamented the low willingness amongst targeted beneficiaries to connect to the sewerage

systems despite the ongoing promotional campaigns. The PCR mission noted that only one training of trainers on health

and hygiene practices was conducted instead of the planned sixteen which targeted 24000 people. The understanding was

that the trainers would in turn train the general public through various channels and instruments, as the context may require,

and achieve the intended outcomes or higher with a higher level of efficiency.

Implementation of the tree planting was also shifted from MENR to the AWSB on grounds of capacity shortfalls within

MENR although MENR was initially reticent on adoption of this approach. Once mature, the 25,000 trees will be handed

over to MENR, who is also mandated with the role of environmental conservation, to ensure their sustainable growth.

With respect to implementation of the physical works, the PCR mission noted shortfalls in unit operations at the inlet works

of the Dandora treatment facility. The screens and grit chamber are dysfunctional due to failure of the PLC control system

resulting in flow of screenings into the anaerobic ponds where once settlement occurs, results in reduction of the effective

depth necessary for anaerobic digestion. Essentially, the load on the waste water is excessive as it leaves the anaerobic

ponds and flows to the subsequent ponds resulting in effluent with higher loading of both BOD5 and Chemical Oxygen

Demand exceeding standards. The rehabilitation and duplication of the inlet works encompasses the scope of the proposed

NaRSIP II.

The conventional two-stage tendering was also found to be inappropriate for the Kariobangi Treatment Works owing to

the specialized nature of activities and given that only preliminary designs were available at the tendering stage. Instead a

Design, Supply and Install (DSI) contract was implemented. There was a significant time loss due to this modification.

Preparations and approvals of the various documents needed for the DSI contract required an additional four months and

procurement commenced in 2014 with the contractor commencing works in early 2015. Coupled with delays at

implementation (including acquiring tax exemption and processing payment certificates), as at the time of the PCR mission

only 55% of the works were complete against a time lapse of 92.03%. It was however noted that the DSI approach has

helped realize savings in actual activity timeframe, ensured better quality control for works and budget management and

also enhanced accountability. It this context, this element of design should be viewed as reasonably successful in as much

as there has been a knock-on effect on overall project implementation timeline.

5

3. Lessons learned related to relevance

Key issues (max 5, add rows as needed)

Lessons learned Target audience

1. Efficiency of

implementation

modalities - a need to

assure adequate

budgetary allocation to

facilitate coordination

At appraisal, it is critical to factor-in the requirements for the success of project

implementation arrangements within the project design. In the case of

operationalising a National project steering committee with a broad mandate

cutting across several Government Ministries, statutory bodies as well as

International Organizations (United Nations Environment Programme -

UNEP), it should be clear how the budgetary requirements to facilitate

coordination are met and by who. This will not only ensure effectiveness in

carrying out of project activities but will also enable monitoring progress of

both outcomes and outputs

GOK, Bank

2. Appropriateness of

contract model for

specialized engineering

works with insufficient

design details

In future GOK contracts for specialized works such as wastewater treatment

plants whereby it is not practicable to prepare detailed designs of works upfront,

a preliminary design shall be carried out by the design engineer for tendering

purposes whereas the responsibility of detailed design shall rest on the

contractor for the construction works as is the case under a Design and Build

contract model. This will ensure savings in both time and cost of project

implementation.

GOK, AWSB

B Effectiveness

1. Progress towards the project’s development objective (project purpose)

Comments

Overall Assessment of Progress. In general terms, the Project has made good progress towards the DO of rehabilitating and expanding

sewerage services management of Nairobi city for sustainable environment. For instance:

The Dandora Treatment Plant is complete and has an additional treatment capacity of 40,000m3/ day;

Rehabilitation of the Kariobangi Treatment Plant has progressed well (55% complete) and is expected to be completed by June

2017 with a restored operational capacity of 32,000m3/day;

Construction of an additional 63.3 Km Trunk Sewers and 43 Km reticulation lines is complete;

Planting 25,000 trees along riparian zones is complete;

Construction of ablution blocks in informal settlements is 67% complete;

Training of AWSC/NWSC staff on management of sewerage systems was conducted;

Training and dissemination targeting 25,000 people on health and hygiene was conducted.

The PCR mission team was also able to collect information suggesting progress towards the environmentally appropriate collection and

treatment of sewage (please refer to References section for sources of data). Although some of the PAR targets have not been met:

There is an improvement in the quality of river water with an average five days effluent Biochemical Oxygen Demand (BOD5)

of 67.5 mg/l attained for Nairobi River, 48 mg/l for Ngong’ River and 39 mg/l for Mathare River compared with the average

300 mg/l baseline value. Specific details are as follows:

o Nairobi River BOD5 ranges between 10 mg/l to 120 mg/l ;

o Ngong River BOD5 ranges between 10 mg/l to 75 mg/l ;

o Mathare River BOD5 ranges between 5 mg/l to 100 mg/l

There is indication of increase in the percentage of the population connected to the sewerage system in the Project area with an

additional 3,000 connections installed in the sections that have been handed over to NWSC;

In terms of water pollution, the Dandora treatment works is operational but the effluent BOD5 of 90 mg/l is higher than the

baseline value of 57 mg/l due to shortfalls in the inlet units. It is noteworthy that from the savings realized under the consultancy

services for the infrastructure works under the Project, a consultancy firm was commissioned to undertake an analysis of these

shortcomings and the corrective actions are expected to be implemented under the proposed NaRSIP II. The Kariobangi

treatment facility, once operational in June 2017, is however expected to meet the PAR target of below 30 mg/l BOD5 compared

to the baseline value of 231 mg/l BOD5; and

In terms of health outcomes, the incidence rates of new cases of typical water borne diseases has decreased by 45.5%.

6

Assessment against targets. The Project’s DOs including the targets identified at appraisal are discussed further in the sections on

Outcome and Output reporting.

Gender Equality. Although there was no specific gender strategy for the Project, gender issues were analyzed during the Project

preparation and appraisal and quantitative mechanisms to promote and report on gender were integrated into the Project’s Results Logical

Framework (RLF). Although there was no monitoring and reporting on the same at implementation, the PCR mission ascertained from

field visits that the requirement of ensuring that Self Help Group committees established under the Sanitation and promotional hygiene

component have at least 50% female active membership was mandatory and was observed. Additionally, 50 per cent of the 150

AWSC/NWSC staff trained on managing sewerage systems were women.

2. Outcome reporting

Outcome

indicators (as per

RLF; add more rows as

needed)

Baseline

value

(Year) (A)

Most

recent

value

(B)

End target (C)

(expected value

at project completion)

Progress

towards

target (% realized)

Narrative assessment (indicative max length: 50 words per outcome)

Core

Sector

Indicator (Yes/No)

Outcome 1: Quality of water of

the

Nairobi rivers

BOD5

300mg/l

(2009)

BOD5

averages

between 39

mg/l to

67.5 mg/l

BOD5 less

than 30mg/l

86.11 –

96.67%

The PAR targets have not been attained

although there is a notable improvement in

the quality of water as detailed under Section

B.1 on progress toward Project DO.

No

Outcome 2: Quality of

wastewater

effluent discharged

into the

Nairobi rivers

Dandora

effluent

BOD5

57mg/l;

Kariobangi

effluent

231mg/l

(2009)

Dandora

Effluent

BOD5

90mg/l;

Kariobangi

not yet

operational

Effluent

BOD5 less

than 30mg/l

81.82%

for the

Dandora

treatment

facility

- NEMA effluent standards are not fully

met at the operational Dandora

treatment facility due to ineffective

operations at the inlet works.

- It is anticipated that once operational,

by June 2017, the Kariobangi treatment

facility would meet NEMA BOD5

standards of < 30 mg/l based on the

design capacity of the facilities.

No

Outcome 3: Percentage of

population

in surrounding

areas with

access to Sewerage

facilities

40%

(2009)

- 59% - No information was collected during

supervisions and data was not available at

completion. Without the relevant data, it is

not possible to assess the outcomes against

this indicator. The only available

information is that so far a total of 3,000

sewerage connections (an approximate

18,000 people) have been installed in the

sections that were recently handed over to

the NWSC.

Yes

Outcome 4: Incidence of

waterborne

diseases

52 %

(2004)

6.5% 20%

227.5% In addition to the progress made,

information received from the county

disease surveillance coordinator of the NCG

indicate that there have been health

improvements with 22% reduction in

diarrhoea morbidity after the sanitation

improvements were carried out.

Yes

Outcome 5: Percentage of

residents in

the surrounding

areas practicing

good hygiene

Increase

from 25 %

(2009)

60% 37 % 291.6% The PAR target has been exceeded. It is

noteworthy that the data was not available at

the time of the PCR mission but was an

output of the survey conducted under the

Sustainable Communication component of

the Project which was concluded in March

2016.

No

7

Rating* (see IPR

methodology) Narrative assessment

3 General and high-level data as captured in Section B.1 on Progress towards the Development Objective and the

indicators above reveal that there are reasons to believe that progress in terms of reduced river water pollution

and reduction of water-borne diseases has indeed occurred. However, there are a number of issues which impede

the assessment of the Project’s outcomes against the indicators specified at appraisal. Lack of data obtained

during supervisions and made available at completion. It was not specified in the PAR how data would be

collected and monitored throughout implementation. It may be worth noting that there is no indication that the

Project has failed to meet the outcomes specified at appraisal. In fact, performance appears to be satisfactory.

The shortcoming, in this instance, is not on the achievement of objectives but rather on reporting of achievement.

Had these shortcomings been identified at an earlier stage, a framework might have been developed and capacity

enhanced.

3. Output reporting

Output indicators (as specified in the RLF; add more rows as

needed)

Most recent

value

(A)

End target (B)

(expected value at project

completion)

Progress

towards

target (% realized)

(A/B)

Narrative assessment (indicative max length: 50 words per output)

Core

Sector

Indicator (Yes/No)

Output 1: Length

of trunk lines

and reticulation

lines laid

Additional

63.3 km of

trunk sewers

and 43km of

reticulation

laid

Additional

54km of trunk

sewers and

40km of

reticulation

laid by 2014

+117.22%

(Trunk sewers)

+107.50%

(Reticulation

system)

The progress indicates that the end target has been

exceeded by 17.22% and 7.5% respectively for

the trunk sewers and the reticulation system. It is

worth noting that cost savings realized from the

consultancy services for the wastewater

infrastructure and some of the works contracts

services were mobilized towards laying more

sewers than planned at appraisal so as to increase

the level of connectivity.

Yes

Output 2: Volume

of waste water

treated

Additional

40,000m3/d

treatment

capacity at

Dandora

Additional

40,000m3/d

treatment

capacity at

Dandora;

Kariobangi

restored

capacity to

32,000 m3/day

56.7% The target for the Dandora Treatment Facility

have been met based on the supervision reports

provided by NWSC. In the case of the Kariobangi

Treatment Facility, the implementation status is

55% complete and it is projected that the 32,000

m3/day target for operational capacity will be met

once the plant becomes operational in June 2017.

Yes

Output 3: Quality

of water of the

Nairobi rivers

3,000 72,553

sewerage

connections

installed

4.1%

The figure indicated is only for sewers that were

recently handed over to NCWSC. At the time of

the PCR mission, there was no detailed report

indicating the area, no. of connections installed

and resultant no. of people served. It is however

worthy to note that this is an ongoing activity and

connections are expected to increase especially

with the implementation of the proposed NaRSIP

II which will focus on construction of reticulation

sewers so that more people can be served.

Yes

Output 4: Number

of public ablution

toilets

67 ablution

blocks

constructed in

informal

settlements and

run by CBOs

100 ablution

blocks

constructed in

informal

settlements and

run by CBOs

67% The target has been partially met. The Project IA

indicated that the contract for the first batch of 50

ablution blocks consumed the entire budgetary

allocation for the ablution blocks. However,

during construction, some savings were realized

and directed towards construction of additional

17 ablution blocks for public use in order to

increase impact.

Yes

8

Output 5: Number

of trees planted

25,000 trees

planted

11,000 trees

planted

227.27% This target has been exceeded by 127.27%. As at

the time of the PCR mission, some of the

burgeoning tree saplings had withered and were

reportedly being replaced by the contractor to

ensure a 100% tree survival rate to maturity prior

to handing over to MENR.

No

Output 6: Number

of NWSC/ AWSC

staff trained

150 staff from

AWSB and

NWSC trained

to manage

sewerage of

which 50% are

women

About 150

staff of which

40% are

women of

AWSB and

NWSC trained

to manage

sewerage by

2014

100% This target has been reportedly met through

various customized trainings held for the targeted

AWSB/NWSC staff. It is worth noting that the 40

per cent target for gender equality was exceeded

as 50 per cent of the 150 staff that were trained

were women.

No

Output 7: Number

of sensitization

campaigns in health

and hygiene

practices

1 no. training

and

dissemination

of information

through posters

on health and

hygiene

targeting

25,000 people

of whom 50%

were women

16 no. health

and hygiene

sensitization

campaigns

targeting

24,000 people

of whom at

least 50% will

be women

104.17% Despite the alteration in the defined approach for

hygiene and sanitation sensitization campaigns,

the targeted population of 24,000 people was

reportedly exceeded as 25,000 people were were

sensitized. The PCR mission also noted from

field visits the mandatory requirement of 50 per

cent women membership in the management

committees of community self-help groups to be

responsible for the operations of the installed

ablution blocks. The target can therefore be

viewed as having been exceeded.

No

Rating* (see IPR

methodology) Narrative assessment

4 Out of the seven output indicators selected at appraisal, it was possible to fully assess the progress on six. Of

these, two have fully met the target and one is expected to meet the target upon Project completion, projected at

June 2017. Specifically: i) the operational capacity of the Dandora treatment works has been increased, ii) 150

staff of the AWSB/ NWSC staff have been trained on sewerage management and iii) one training aimed at

sensitizing 25,000 people was conducted. Furthermore, the full operational capacity of the Kariobangi Treatment

works is expected to be restored upon Project completion. Two of the seven outputs have exceeded the targets

at the time of the PCR mission. These are the laying of the trunk mains and the reticulation system and planting

of trees. It is however not possible to assess the level of attainment of the output on connectivity to the sewerage

network given no records were maintained although it is highly likely to be met progressively as completed

sections are handed over to the utility company (NWSC) and under the proposed NaRSIP II.

4. Development Objective (DO) rating

DO rating (derived from

updated IPR)* Narrative assessment (indicative max length: 250 words

3 As per the Staff Guidance on Implementation Progress and Results Reporting (2012), the ratings for

outcomes and outputs are combined to assess the progress towards meeting the development objective.

The Project may eventually achieve its development objective provided that the remaining outputs are

completed in good time, the AWSB and GOK are fully committed to the outcomes specified at appraisal

and funds mobilized in time towards implementation of the proposed NaRSIP II.

9

5. Beneficiaries (add rows as needed)

Actual (A) Planned (B) Progress towards target (% realized) (A/B)

% of

women

Category (e.g. farmers, students)

150 no. 150 no.

(Staff trained)

100% 50% Staff of AWSB and NWSC

25,000 no. 24,000 no.

(People sensitized)

104.17% 50% Populations living within the Project areas

Tentatively

*18,000 people

from the 3,000

sewerage

connections

72,553 no.

See Section B.3 output 3 for

explanation

- Institutions, business enterprises and

households within the Project areas

*This figure is arrived at based on a best estimate assumption of eight beneficiaries per installed connection.

6. Unanticipated or additional outcomes (add rows as needed)

Description Type (e.g. gender,

climate change, social,

other)

Positive or

negative

Impact on project (High, Medium, Low)

Direct and indirect job creation. It is estimated that a total of 2,000 jobs

were created at the implementation stage of the sewerage and sanitation

infrastructure facilities and an additional 200 anticipated to be created at

the post commissioning phase. This enumeration includes WSS related

income generating activities within the Project areas

Economic Positive Medium

Co-generation. It is anticipated that upon completion, 0.5 megawatts of

electricity will be generated each month from digesting the sludge at the

Kariobangi treatment facility. This would represent 62.5% of the

electricity needs (0.8 megawatts per month) of the Treatment Plant.

Climate change Positive Medium

Recycling/reduction in environmental degradation. It is anticipated

that an estimated 30,000 kg/day of treated sludge from the treatment

facilities (both Kariobangi and Dandora) usable as soil conditioner or

largely meeting NEMA standards for dumping at landfill site.

Environmental Positive Small

7. Lessons learned related to effectiveness (add rows as needed)

Key issues (max 5, add rows as needed) Lessons learned Target audience

Results monitoring framework and supporting

institutional arrangements

Given the constraints in assessing some of the

indicators for Project effectiveness at completion, a

lesson to be learnt is the importance of establishing

appropriate mechanisms for monitoring and

reporting on progress. It is critical to introduce

mechanisms to gather data over the course of Project

implementation at the Project design stage. In order

to support this, institutional arrangements should be

assessed in detail, and recommendations for filling

fiscal and capacity gaps defined.

Bank, MWI

Satisfactory progress towards development objective The lessons to be learnt concerning the satisfactory

performance is that performance monitoring can

facilitate reporting on outputs and outcomes at

completion. It can also impact the actual achievement

of outputs and outcomes. The satisfactory

achievement in the DO is attributable to the

satisfactory achievement in terms of outcomes. This

may be more a reflection of the performance

monitoring framework than of the Project’s

achievement.

Bank

10

C Efficiency

1. Timeliness

Planned project duration – years (A)

(as per PAR) Actual implementation time – years

(B) (from effectiveness for 1st disb.) Ratio of planned and actual

implementation time (A/B)

Rating

*

5 years (60 months) 6.42 years (77 months) 0.78 3

Narrative assessment (indicative max length: 250 words)

Given that some Project components remain under construction, this section considers an earliest Project completion date of 30th June

2017.

The Project implementation was planned for a period of five (5) years from the date of effectiveness to the date of the last disbursement

of ADF funds. Actual implementation timeline was however 6.42 years (77 months). A 365 days’ time extension was granted in 2015

to allow completion of outstanding works given the disbursement rate of the ADF loan at the time was only 72.37% against a time

lapse of 95.83%. The PCR mission noted during field visits that implementation of the wastewater infrastructure component, which

accounts for 82% of the overall Project cost, are at an estimated 80% completion rate and are expected to be finalized by June 2017.

Other outstanding activities include the Sustainable Communication Consultancy which is expected to be concluded in March 2017.

Some of the difficulties and site constraints encountered during Project implementation and which had an impact on time include: i)

difficulties in obtaining permits from Government and statutory organizations and liaison with the same organizations; ii) encountering

of existing underground services including Kenya Power and Lightning Company cables and recurrent breakages of NWSC water

pipes; iii) construction work challenges occasioned by having work sites spread out over the whole of Nairobi county and the southern

part of Kiambu county which resulted in logistical challenges; iv) high percentages of rock and marsh in some areas; v) imposition

of incommensurate fees for wayleaves, crossings and relocations and the need for extensive traffic diversion; vi) heavy encroachment

of the riparian reserves; vii) lack of authenticated ownership of land parcels, given that the project areas covered informal settlements

within an urban setting, which affected implementation of the Resettlement Action Plan (RAP); and viii) matters regarding road re-

instatement. In addition, there was stoppage of works following court restraining orders filed by some of the Persons Affected by the

Project (PAPs). There were also security risks to Project staff at Project sites located within the informal settlements.

These problems are not unique to this Project. Working underground and within heavily encroached riparian zones has its own

peculiarities. In most countries there are no records of buried infrastructure (pipes, cables, etc.) and it is thus not uncommon that works

commence without detailed studies and records.

2. Resource use efficiency

Median % physical implementation

of RLF outputs financed by all

financiers (A) (see II.B.3)

Commitment rate (%) (B) (See table 1.C – Total commitment rate of all

financiers)

Ratio of the median percentage

physical implementation and

commitment rate (A/B)

Rating

*

100% 100% 1 4

Narrative assessment (indicative max length: 250 words)

In terms of project realization of desired results at output level, the project has significantly made progress and is expected to ultimately

improve the lives of intended project beneficiaries. Analyses of the integrated progress data indicate great success in this regard

(88.39% performance achievement) based on the 84.27% funds disbursement level to the executing agency (EA). As at the time of

the PCR mission, 100% of the project funds had been committed with USD 29.07 million out of the USD 35 million ADF loan and

USD 5.74 of the counterpart funds disbursed to the project translating to disbursement levels of 83.1% and 91% respectively. This is

highly satisfactory in light of the current level of project progress (88.39%). It is expected that 100% of the project funds will be

disbursed by the project closing date of 31st March 2017 given all pending payments are currently being processed to be paid against

bonds in lieu of release of retention funds and payment of any pending works.

Five out of the eight project output indicators have been fully achieved or exceeded. The targets of the remaining three outputs that

have not been achieved are due to i) inadequate budgetary allocation for the component (ablution blocks – 67% achievement level);

ii) inadequate infrastructure for reticulation and low willingness to connect to sewers in some cases (connectivity to sewerage system

– 4.1%); and iii) delayed completion of works in the case of the Kariobangi treatment facility which is excepted to treat an additional

43.3% of sewerage). It is anticipated that the level of sewerage connectivity within the project area will increase in the wake of the

recently concluded Sustainable Communication Consultancy Services, a sub-component of the Project, which also addressed issues

on willingness to connect and pay for sewer services. This notwithstanding, the target specified in the log frame might not be fully

met due to a limited reticulation infrastructure system (augmentation proposed under NarSIP II).

It is noteworthy that in accordance with PCR Guidelines, the resource use efficiency is calculated as the median value (not the average)

of the rate of achievement of all outputs compared against the commitment rate (100% in this case). The impact of extreme values

thereby balance out between the exceeded and the underachieved outputs to arrive at the stated value.

11

3. Cost benefit analysis

Economic Rate of Return

(at appraisal)

Updated Economic Rate of Return

(at completion)

Rating

*

20.2% 22.6% 4

Narrative assessment (indicative max length: 250 words)

As reflected in the output and outcome sections, the main Project targets and objectives have been attained or are on course to be met.

The main target that was unmet was the construction of 100 ablution blocks. These are interventions that have a massive impact in the

informal settlements. It is hoped that lessons learnt from the construction of the 67 ablution blocks can be used to ensure continued

interventions in those areas.

The major output that was exceeded of laying 54km trunk lines and 40km of reticulation lines will contribute to increased numbers of

connections, which will lead to improved system performance, reduction of pollution of water systems, reduction in water borne

infections and enhancing environmental aesthetics in the city and surrounding areas. With those assumptions in mind, the project is

already delivering economic benefits to the beneficiaries with an EIRR of 22.6%, which is still higher than the estimated opportunity

cost of capital of 10%. The beneficiaries are already connecting to the sewerage system, and more numbers are expected to be added,

which will improve the financial capacity of the NWSC.

The economic analysis assesses the wider beneficial impact of the interventions and also highlights the broader strategic socio-

economic and environmental impacts associated with the project interventions in terms of improving living environment of people

living around the Nairobi rivers, improved access to sewerage services, employment generation, reduction in incidence of waterborne

and water-related diseases and, reductions in mortality rates and building local capacities through training in sewerage management.

The following broad parameters constitute the variables for the assessment; (i) patient health treatment and travel costs saved; and (ii)

value of less adults, infants and students falling sick with diarrhoea.

4. Implementation Progress (IP)

IP Rating (derived from

updated IPR) *

Narrative comments (commenting specifically on those IP items that were rated Unsatisfactory or Highly

Unsatisfactory, as per last IPR). (indicative max length: 500 words)

3 The Implementation Progress rating takes into account the following aspects:

Compliance with covenants. In addition to the General Conditions precedent to Entry into Force, the Loan

Agreement included three Conditions Precedent to the First Disbursement, notably MWI to: i) Provide

evidence to the Fund of a Subsidiary Financing Agreement between GOK and AWSB, on terms and

conditions acceptable to the Fund; ii) Provide evidence of having opened two special accounts in a Bank

acceptable to the Fund, and iii) evidence of issuance of a certificate from NEMA for construction in the

specified way leaves.

All these conditions were fulfilled although not within the stipulated timeframes.

The Undertakings were notably the requirement for the Borrower to submit evidence satisfactory to the Fund

of: i) a Service Provision Agreement signed between AWSB and NWSC for the second 5 year period; ii)

evidence of land transfer to AWSB for sewerage infrastructure development and proof of compensation for

persons whose properties are affected; iii) evidence of transfer of the urban WSS infrastructure from CCN

to AWSB.

The first and third conditions have been substantially fulfilled. With respect to the second condition, over

95% of the RAP issues have been settled. For the few remaining minor cases, there is need for proof of

ownership in order that payment can be made.

In terms of audit compliance of the Project, the PCR mission noted that an unqualified clean opinion was

given for the 2015/16 audit report for the Special Account whereas a qualified opinion was issued for the

Project Accounts. It was also noted that although the Statements of Expenditure were not issued, they were

included in the audit scope. The Bank Financial Management division, in its conclusion of the review of the

audited statements however accepted the audited financial statements on the basis that both the PIU and the

auditors had substantially discharged their duties and responsibilities and that the issue raised as a

qualification point had been resolved during the 2014/2015 financial year. Furthermore, the PIU was required

to implement the recommendation of the auditors by 31st March 2017.

With respect to E&S safeguards, additional details can be found in the relevant sections of the PCR report.

12

Project systems and procedures. An assessment of procurement performance revealed that Annual

Procurement Plans for the Project were prepared by the IA and approved by the Bank. An assessment of the

actual performance indicates time slippages, of up to four (4) months for some of the activities which has

been attributed to delays in both processing and approval of the various outputs, poor performance with

respect to processing tax exemptions for contractors and with issues concerning contract planning in the case

of the Kariobangi Treatment works. There were however savings realized under some of the Project

components (Lots I and II of works contracts and the consultancy services) which were used to implement

additional works under the Project including the feasibility study and detailed design for the proposed

NaRSIP II.

Project execution and financing. Bank financing can be considered to be highly satisfactory based on the

fact that 83.1% of the funds were disbursed against a progress of 88.39% before the deadline.

Monitoring and Evaluation (M&E) Framework. Whereas specific parameters for monitoring Project

outcomes and outputs were clearly established at appraisal and captured in the logical framework, some of

the qualitative and quantitative data notably the i) sewerage connectivity, ii) quality of the effluent discharge

at the Treatment Facilities and iii) water quality along the Nairobi Rivers iv) prevalence of waterborne

diseases in the Project area may have been collected by the responsible Government bodies and Statutory

Organizations but were not regularly reported on by the Project.

5. Lessons learned related to efficiency

Key issues (max 5, add rows as needed) Lessons learned Target audience

Mitigating delays in

implementation of works by

ensuring Quality at Entry

While Project delays were caused by a number of factors, the timeframe

specified at appraisal was overly optimistic given that only preliminary

designs were available at appraisal for some of the wastewater

infrastructure components - notably the Kariobangi Treatment facility.

Some of the problems encountered in practice could have been better

anticipated by adopting appropriate contract management approaches or

ensuring that the detailed designs of the works were prepared by the time

of appraisal to assure Quality at Entry.

AWSB/MWI

D Sustainability

1. Financial sustainability

Rating

* Narrative assessment (indicative max length: 250 words)

3 The financial sustainability of the intervention will depend a lot on the sustained drive to connect as many beneficiaries to

the system as possible. Judging by the enthusiasm and commitment of the NWSC and the AWSB to ensure more beneficiaries

are connected to the sewer system, the outlook is positive. Since the sewerage bill is a factor of the water bill, initiatives to

increase water coverage in greater Nairobi, will have a knock on effect on the overall revenue attributable to the sewerage

component, and therefore improving on the financial sustainability of the sewerage business. The main revenue driver will

be the number of additional connections. The NWSC and AWSB are engaged in driving connectivity to the systems, and a

number of organisations and NGOs are also involved in encouraging customers to connect to the system Some of the

initiatives include revolving credit schemes where soft loans are availed to encourage more customers connecting to the

system.

Thus sustainability should also be looked at from the perspective of billing and collections. The NWSC has a credit and

billing system in place that enables the company to bill and collect appropriately.

13

2. Institutional sustainability and strengthening of capacities

Rating

* Narrative assessment (indicative max length: 250 words)

3 Sector Overview. NWSC is the utility responsible for wastewater services delivery operates under the aegis of the CCN,

presently transformed into the Nairobi County Government. Further, the NWSC has indicated plans to separate water and

wastewater services provision within its internal organizational structures in order to streamline services delivery.

Assessment. The Project has made some contributions towards strengthening of institutional capacities. Specifically 150

AWSB/NWSC have been trained on sewerage management and 1 no. training and dissemination of information through

posters on health and hygiene targeting 25,000 people held. However, the Project might have played a more significant role

had a comprehensive institutional assessment taken place at appraisal and a corresponding action plan for capacity building

developed. In terms of staffing, there is evidence of skill existing within both the AWSB and the NWSC. The Project has

also scheduled a phase for capacity building of NWSC staff on facility operations and maintenance (O&M) procedures by

the contractor for the Kariobangi Treatment works. However the PCR mission noted a lack of formal written operational

procedures for support functions like finance. Based on the financial management and procurement assessments conducted

during the PCR mission, the use of Bank systems in the water and sanitation sector remains appropriate although the use of

country systems is still under consideration.

3. Ownership and sustainability of partnerships

Rating

* Narrative assessment (indicative max length: 250 words)

3 Ownership: At Project formulation, stakeholder consultation was undertaken and the Project was prioritized as part of the

NRRRP. A series of participatory meetings and discussions were conducted by all stakeholders including beneficiaries

during Project design. Stakeholder consultation at implementation stage resulted in formation, with support from the Nairobi

County Government, of Community Based Organizations (CBOs) which subsequently applied for funding for ablution

blocks under the Sanitation, Hygiene and Social Environment Support Project component. The Project can there be assessed

as having highly satisfactorily inculcated a sense of ownership amongst stakeholders.

Partnerships between Sector Institutions. For the most part, responsibilities for the Project remained clear. The NWSC is

responsible for billing and collections arising from the constructed assets as formalized by the “Services Provision

Agreement” while the AWSB will continue to oversee ownership of assets. While the current arrangement appears

sustainable on account of cross-subsidy of wastewater functions, it is difficult to assess the impact of separation of the

wastewater functions from water supply delivery functions within the NWSC as anticipated under the ongoing Organization

Study for Sewerage Improvement Services. The GOK would need to carefully plan and execute any such separation in order

to ensure the ongoing sustainability of institutional arrangements in the sector.

Beneficiaries and Stakeholders. An area which appears to have received insufficient attention is involvement of

beneficiaries through strengthened partnerships with the MENR, Nairobi County Government, internal security organs as

well as civil society organizations at Project implementation. This is typically an important element for the continued

maintenance and hence sustainability of Project outputs. However, a lack of information provided at appraisal and during

implementation impedes any meaningful assessment of the sustainability of these partnerships.

4. Environmental and social sustainability

Rating

* Narrative assessment (indicative max length: 250 words)

3 The PCR mission undertook an assessment of the E&S safeguards and found as follows:

E&S management, monitoring, and reporting mechanisms were established and the ESMP was prepared as a

standalone document. The environmental mitigation measures, which were broadly identified in this framework of

a plan, were included by AWSB in bidding documents. There is also a dedicated team with E&S expertise within

both AWSB and the consultancy firm. The AWSB Project team worked with the contractors and supervising

consultant in devising practices to resolve E&S impacts and complaints by the affected communities as they arose.

There was also documentation prepared on the implementation of the ESMP.

The Project was designed so as to minimize relocation of communities as much as possible with 1174 persons

considered as Project Affected Persons (PAPs) under the Resettlement Action Plan (RAP) prepared in accordance

14

with Bank’s Policy to address the needs of vulnerable groups including women and children. At the time of the

mission, a total of KShs 166 million (approximately USD 1.66 million) had been paid from the GOK Escrow

account as compensation to a total of 1667 PAPs so as to secure wayleave for the sewer lines. The PCR mission

noted that the PAPs were included in the RAP implementation committee and were involved in the community

sensitization and awareness activities under the Project. Most of the affected people are reportedly owners of the

temporary structures on the riparian land. A limited number of the affected population have no recognizable legal

right or claim to the land they are occupying in the Project area. The latter minority has been attributed to the

inconclusive implementation of the RAP as at the time of the PCR mission.

NEMA and the Water Resources Management Authority (WRMA) are expected to conduct post-Environmental

Impact Assessment (EIA) monitoring in order to guarantee Project compliance with national legislation and

regulations. A laboratory testing program conducted by the NWSC at the Dandora Treatment facility indicates that

the quality of treated effluents from the plant presently does not comply with the requisite standards for BOD5 < 30

mg/l.

The Quarterly Progress Reports submitted by AWSB to the Bank lacked details on the management of E&S

concerns as the Bank did not formally make E&S reporting a requirement for the Project. No significant collection,

monitoring, or reporting of quantitative data on the Project’s environmental impacts was conducted and social

monitoring was generally lacking.

Social impacts of the Project were not examined as part of the post-EIA monitoring activities. However, the tariff

structure for wastewater services incorporates social concerns through the use of increasing block tariff structure.

5. Lessons learned related to sustainability

Key issues (max 5, add rows as needed) Lessons learned Target audience

1. Need for cost recovery in wastewater services

provision

Inability to cover operational costs for wastewater

services appears to be a challenge for NWSC

although the MWI in its National Water Services

Strategy (2007-2015) aims to gradually achieve

operational cost recovery of all WSS systems with

the exception of targeted subsidies to the poor. An

Organizational Study is reportedly underway to

assess the viability of the sewerage services

provision under the NWSC. It is expected that the

study will define clear guidelines for ensuring cost

recovery including rationalized tariff regimes of the

sewerage systems so as to ensure sustainable

operations. For future revenue-generating

wastewater projects, Bank supervision should entail

periodic assessment of the costing model and the

levels of returns.

Bank /

AWSB/NWSC

2. Adopting an integrated approach for attaining the

intended goal of the NRRRP of environmental

sustainability

The PCR mission noted that the Project addressed

one key element of the larger NRRRP i.eto reduce

environmental pollution from treatment facilities. In

order to ensure attainment of the overall NRRRP

objective, the following aspects equally require

urgent attention: - i) Increased capacity of sewerage

systems including installation of additional service

connections, augmentation of the existing

reticulation systems and incorporating further

treatment in existing treatment facilities (tertiary)

where necessary so as to ensure compliance with

NEMA standards, non-point-pollution source

treatment facilities. The activities have already been

captured within the scope of the proposed NaRSIP II;

ii) Establishment of an integrated solid waste

GOK,MENR,MWI

15

management system to address the current

proliferation of wastes dumps within and along the

Nairobi Rivers’ courses. JICA reportedly financed a

study on integrated SWM and the recommendation

are under consideration by GOK; iii) Establishment

of an effective storm water management system

incorporating river bank protection facilities, and

enhanced flood control capacity so as to reduce the

risks of floods and drought; iv) Enrichment of the

river ecosystem through introduction of ecological

buffer zones, such as wetlands, and v) Effective

management of encroachment by informal

settlements and economic activities along the river

basins so as to enhance the local economy.

3. Sustainability of partnerships and stakeholder

ownership for safeguarding Project outputs

The consultancy firms and the contractors engaged

under the Project decried the inadequate links

between Government institutions and statutory

Organizations as a major setback to acquisition of

wayleaves and permits, relocation of services and

monitoring of Project results amongst others

impediments. There were also reported security

challenges which impacted on the productivity of the

Project field staff and which could have been avoided

through effective cooperation and collaboration with

both the Internal Security agencies and the local

administration. The PCR mission observed that in

order to ensure sustainable operations of the

facilities, continued partnership through cooperation

and liaison across stakeholder organizations is

crucial. This may entail restoration and full

operationalization of the Project Steering Committee

within the MENR.

GOK

III Performance of stakeholders

1. Bank performance

Rating

* Narrative assessment by the Borrower on the Bank’s performance, as well as any other aspects of the project

(both quantitative and qualitative). See guidance note on issues to cover. (indicative max length: 250 words)

3 The Borrower stated that overall performance of the Bank was commendable. In particular, the Borrower expressed satisfaction

with Bank’s performance in terms of timely responding to Borrower’s needs and promoting Project sustainability through

provision of sustainable training to the AWSB/NWSC staff and Project stakeholders in general. The Borrower however

expressed concern over the delays (of up to 8 months) in processing disbursements of the Project funds by the Bank under the

direct payment method which impacted on overall Project progress.

Comments to be inserted by the Bank on its own performance (both quantitative and qualitative). See guidance note on issues

to cover. (indicative max length: 250 words)

The Bank supervised the Project regularly, provided quality supervision, maintained regular dialogue with the authorities and provided

necessary solutions where required. Yet, the Bank may have inadequately addressed shortcomings in a number of areas (E&S, M&E)

during implementation, the latter being mostly a result of an inactive project steering committee during Project implementation. This

was a particular problem as concerns the regular measurement and reporting of E&S risks and benefits, given the Project’s justification

on environmental grounds and its environmental classification. During supervisions and at the mid-term review, measures might have

been introduced to facilitate the collection, monitoring and reporting of Project information, with a view to continuous performance

improvements. The supervision missions however benefitted from a multidisciplinary skills mix (environmental, fiduciary and

procurement experts) in order to adequately support the Project by reviewing and processing of procurement, safeguards, financial

management and disbursement documents.

16

Key issues (related to Bank performance, max 5, add rows as needed) Lessons learned

1. Identifying implementation challenges and solutions A number of challenges might have been identified during

implementation including the inadequate collection and monitoring

of performance information. Whereas the results framework was

well-defined at appraisal, measures for monitoring of the level of

attainment of both outcomes and outputs indicators could have been

improved.

2. Establishing an Escrow account for direct payments to

contractors

Lessons drawn from similar projects within the country financed by

other Development Partners indicate that processing of direct

payment requests have been a major challenge. Specifically, the

different levels of approvals required within Government has been

a major cause of delay of up to six months in the case of the

NaRSIP. Moreover there is expressed concern that some of the

contractors within the country now refrain from direct payment

contracts. Other DPs active in the country have reportedly required

the project EAs to set up an Escrow account from which direct

payments are made with little delays. These claims of efficiency by

use of Escrow accounts however require adequate assessment and

validation prior to adaptation in future Bank projects.

2. Borrower performance

Rating

* Narrative assessment on the Borrower performance to be inserted by the Bank (both quantitative and qualitative,

depending on available information). See guidance note. (indicative max length: 250 words)

3 There are a number of areas in which the Borrower performed well. GOK through MWI provided leadership at Project

planning and implementation ensuring adherence to Guidelines and Procedures as required by the Bank as well as the various

stakeholder Government institutions and statutory bodies. Furthermore, Government was found to be responsive to the Bank

supervision mission’s findings and recommendations. The Borrower also subjected the Project operations to regular internal

audits and concerns raised were expeditiously addressed. However, the contractors and consultants engaged under the

Project expressed dissatisfaction at the Government’s performance with respect to timely processing of tax exemptions and

disbursement of Project funds - the latter attributed to lack of adequate counterpart funds. The delays in flow of funds to the

consultancy firms and contractors could have resulted in increase in Project costs due to interests on delayed payments but

was countered by a contract clause stipulating zero interest on delayed payments. The Borrower did not also seek to establish

concrete measures to ensure the implementation of robust procedures to ensure data collection as part of the M&E framework

for the benefit of the Project nor was the need to fulfill the higher objectives of the NRRRP by fostering an integrated

approach to the identified challenges carried on through to the implementation phase of the Project. The Project Steering

Committee within the MENR intimated that they did not have adequate budget to facilitate implementation of their intended

roles under the Project and that generally the national goodwill for the Project had diminished.

Key issues (related to Borrower performance, max 5, add rows as needed) Lessons learned

1. Building and sustaining partnerships for Project effectiveness The AWSB stated that all stakeholder organizations and statutory

bodies were involved in the various activities under the Project as

planned. Documentary evidence were submitted indicating that

NWSC and Nairobi County Government were either informed or

consulted whenever a major decision requiring their input had to

be made. On the contrary both NWSC and MENR expressed

dissatisfaction on the manner in which the EA engaged them in the

Project activities despite being major Project stakeholders. On this

basis, a lesson on effectiveness of Project implementation

mechanisms is that stakeholders and actors responsible for various

aspects of the Project need to be involved in the most appropriate

and effective manner. This may entail information, coordination,

collaboration, or partnership depending on their mandate and level

of influence with respect to the matter at hand. Also there is need

for adequate budgetary allocation under Projects to ensure the

success of partnerships and in this case, avoidance of sapping

momentum of the Project steering committee.

17

3. Performance of other stakeholders

Rating

* Narrative assessment on the performance of other stakeholders, including co-financiers, contractors and service

providers. See guidance note on issues to cover. (indicative max length: 250 words)

3 Stakeholders and other actors including service providers: Some progress has been achieved towards harmonizing

activities between the Project stakeholders and actors. For instance, AWSB prepared quarterly reports for the Project which

were submitted to the MWI for circulation to stakeholder organizations. Additionally, NWSC continuously compiles data

on the effluent quality for disposal at the operational Dandora treatment facility as stipulated by NEMA. The WRMA also

produces periodical reports on the status of the Nairobi Rivers Basin, whereas the Ministry of Health periodically compiles

data on health and hygiene for the Project area. Additionally, MWI through NWSC commissioned a Study in 2016 on

profiling of the Nairobi Rivers’ water quality as part of results monitoring under the Project. The PCR mission however

observed that better results could have been achieved had the formal structures for liaison and collaborations between the

stakeholder and actors been defined under the ambit of the Project Steering Committee, MENR. This could have afforded

the Project team a wider and long-term outlook with respect to Project planning (mobilizing funding for subsequent phases)

while addressing emerging Project issues.

Key issues (related to performance of

other stakeholders, max 5, add rows as needed)

Lessons learned (max 5) Target audience (for

lessons learned)

Good working relationship with the

Project team cultivated

Despite the challenges encountered from time to time, the good

working relationship between the AWSB, contractors, consultancy

firms, and the NWSC impacted positively on implementation of

Project activities. AWSB involved NWSC in activities including

document review, whenever their input was required, and updated

them on Project progress. AWSB also provided information whenever

required by the MWI. This ensured that challenges were addressed at

Project level which translated in time and cost savings on the Project.

Bank, GOK

IV Summary of key lessons learned and recommendations

1. Key lessons learned

Key issues (max 5, add rows as needed) Key lessons learned Target audience

1. Leadership and effective

coordination crucial for rolling out

multifaceted projects

The NarSIP (the Project) is part of the larger NRRRP. Implementation

of the Project is steered by the AWSB Project Implementation Team

which coordinates with the MWI, NSWC and the Nairobi City Council

- the latter specifically with respect to the Sanitation, Health and

Hygiene Promotion component. The Project expanse is both broad and

intermittent, encompassing riparian zones within the Nairobi, Ngong’,

Mathare and Kiu Rivers Basins. The wastewater infrastructure

component was subdivided into 4 individual lots and contracted to one

supervising consultancy firm and several contractors with most of the

construction works done concurrently. GOK through MWI provided

leadership, adopting a systematic approach to ensuring that the various

activities synchronized to ultimately achieve the targeted Project

outputs and outcomes. However, it is generally appreciated that a lot

more could have been achieved in terms of savings in Project duration

and therefore costs and forward planning had the Project Steering

Committee of the MENR been active during the implementation phase.

Bank, GOK

2. Results monitoring Efficiency of data collection and posting modalities is integral for the

success on any M&E framework. The challenges faced in measuring

results under the Project include inadequate capacity for data collation

at the level of the Executing Agency. Furthermore, data collected is not

disaggregated such that evaluation of E&S aspects including gender,

beneficiary level of satisfaction etc. cannot be done.

Bank, GOK

3. Early Contractor Involvement as

a means to assuring effectiveness

of construction contracts under the

There is need to consider inclusion of additional provisions in the Bank

Procurement Rules to enable the Engineering and Construction

Contract to be used in an early contractor involvement approach which

Bank

18

two - stage procurement method

(Follow-up to lesson 2, Section

II.A.3)

allows the Contractor to be appointed before details of what is to be

constructed have been fully developed and priced. This approach is

already adopted under the NEC3 Standard Contract recommended for

public sector organizations (Institute of Civil Engineers, United

Kingdom) which presents the following two options: i) The Employer

appoints a consultant to carry out design, and the Contractor assists the

consultant in designing the project. The Contractor may or may not be

required to carry out specific elements of the design in addition to

assisting the designer. The Contractor is in this case instructed to

proceed with the works, including any outstanding design, under a

standard arrangement following agreement of the Prices for Stage Two;

ii) The Employer appoints a Contractor to carry out the design, and the

Employer’s consultant works with the Contractor in completing the

design. In using one of the options, the Contractor is incentivized to

provide a cost-effective solution by sharing in the savings on the

Employer’s Budget – including other costs incurred by the Employer.

2. Key recommendations (with particular emphasis on ensuring sustainability of project benefits)

Key issue (max 10, add rows as needed) Key recommendation Responsible Deadline

1. Project planning - Integrated and

holistic approach is fundamental for

development impact

An integrated approach for planning encompassing all aspects of

effective River Basin Management is crucial for the ultimate success

of a basin-wide Program with environmental and social outcomes.

Whereas the NRRRP recognized the need for a holistic focus in all

critical areas including storm water management, integrated solid

waste management, river ecosystem enrichment, very little progress

has been achieved so far towards these aspects. Moreover, the PCR

mission is of the view that more could have been achieved by Project

completion had simultaneous complementary initiatives (including

installing additional service lines where necessary) been effected to

increase the capacity of the newly installed sewerage systems. On

this basis, future projects should put measures in place to consider

these needs at the planning phase.

GOK TBD

2. Situation presents an opportunity

for promoting a programmatic

approach to investment on the

Program

The NRRRP was planned to be implemented in phases under four

key strategies: i) (re)afforestation ii) reduction of environment-

related diseases, iii) environmental conservation, iv) pollution

control and waste management. The ongoing NaRSIP was designed

to largely address the fourth strategy while contributing to realization

of the other three. The Program challenges are therefore broad and

cut across various sectors/ and sub-sectors, thereby involving several

actors. The magnitude of funding envisaged to realize the overall

Program goal is equally enormous. It could be worthy to consider

tackling the strategic objectives in a programmatic way with

emphasis on viewing the Program not just as a collection of

individual projects through; i) collective analysis and planning, ii)

creating synergy between interventions, as well as iii) linking and

learning between relevant stakeholders/actors. This way, it would be

possible to secure buy-in of actors and and to facilitate leverage of

funding from several sources including Development Partners,

Government and beneficiaries. Lessons drawn from past Bank

funded interventions have listed high level development impacts

within short implementation timelines and less Program overhead

costs amongst merits of programmatic aid delivery.

GOK,

Development

Partners

TBD

19

V

Overall PCR rating

Dimensions and criteria Rating*

DIMENSION A: RELEVANCE 3.5

Relevance of project development objective (II.A.1) 4

Relevance of project design (II.A.2) 3

DIMENSION B: EFFECTIVENESS 3

Development Objective (DO) (II.B.4) 3

DIMENSION C: EFFICIENCY 3.5

Timeliness (II.C.1) 3

Resource use efficiency (II.C.2) 4

Cost-benefit analysis (II.C.3) 4

Implementation Progress (IP) (II.C.4) 3

DIMENSION D: SUSTAINABILITY 3

Financial sustainability (II.D.1) 3

Institutional sustainability and strengthening of capacities (II.D.2) 3

Ownership and sustainability of partnerships (II.D.3) 3

Environmental and social sustainability (II.D.4) 3

AVERAGE OF THE DIMENSION RATINGS 3.25

OVERALL PROJECT COMPLETION RATING S

20

VI Acronyms and abbreviations

Acronym (add rows as needed) Full name

ADF African Development Fund

AWSB Athi Water Services Board

BOD5 Five days Biochemical Oxygen Demand

CBOs Community Based Organizations

CCN City Council of Nairobi (Now the Nairobi County Council Government)

CSP Country Strategy Paper

DPs Development Partners

DO(s) Development Objective(s)

GOK Government of the Republic of Kenya

EA Executing Agency

EIA Environmental Impact Assessment

EIRR Economic Internal Rate of Return

ESIS Environmental and Social Impact Study

ESMP Environmental and Social Management Plan

IAs Implementation Agency

IPR Implementation Progress and Results Report

MENR Ministry of Environment and Natural Resources

M&E Monitoring and Evaluation

MTP Medium Term Plan

MOF Ministry of Finance

MOH Ministry of Health

MWI Ministry of Water and Irrigation

NaRSIP Nairobi Rivers Sewerage Improvement Project

NEMA National Environment Management Authority

NGOs Non-Governmental Organizations

NRRRP Nairobi Rivers Rehabilitation and Restoration Program

NWSC Nairobi Water and Sewerage Company

O&M Operations and Maintenance

PAPs Project Affected Persons

PAR Program Appraisal Report

PCR Project Completion Report

RAP Resettlement Action Plan

RLF Results Logical Framework

UA Units of Account

UNEP United Nations Environment Programme

WSS Water Supply and Sanitation

21

REFERENCES

African Development Bank (2010) Appraisal Report: Kenya: Nairobi Rivers Rehabilitation and Restoration Program:

Sewerage Improvement Project.

African Development Bank (2011) Loan Agreement between the Republic of Kenya and the African Development Fund:

Nairobi Rivers Rehabilitation and Restoration Program: Sewerage Improvement Project.

African Development Bank (2010) Technical Documents for the Appraisal Report: Nairobi Rivers Rehabilitation and

Restoration Program: Sewerage Improvement Project.

African Development Bank (2012) Staff Guidance on Project Completion Reporting and Rating.

African Development Bank (2012) Staff Guidance on Implementation Progress Reporting and Rating (IPR) for

Public

Sector Operations.

African Development Bank (2015) EARC, Kenya: 7th – 11th December 2015 Supervision Mission Aide-Memoire: Nairobi

Rivers Rehabilitation and Restoration Program: Sewerage Improvement Project.

African Development Bank (2015) RDGE, Kenya: IOM REF. ORPF.2/RPT/2017/02/011 dated 22 February 2017:

Comments on Financial Statement and Audit Report of the Nairobi Rivers Rehabilitation and Restoration Program: Sewerage

Improvement Project for the Year Ended 30 June 2016.

Escrow Account Agreement (2011): The Cooperative Bank of Kenya Limited and the Athi Water Services Board.

Government of the Republic of Kenya, Kenya National Audit Office: Reports of the Auditor General on the Financial

Statements of the Athi Water Services Board (2011 – 2015).

Government of the Republic of Kenya, Ministry of Environment and Mineral Resources (2007) Technical Brief:

Rehabilitation and Restoration Programme of Nairobi Rivers Basin.

Government of the Republic of Kenya, Ministry of Water and Irrigation (2015) Quarterly Progress Reports: Nairobi Rivers

Rehabilitation and Restoration Program: Sewerage Improvement Project (NaRSIP).

Government of the Republic of Kenya, Ministry of Water and Irrigation, Water Sample Analytical Certificates –

Bacteriological, Effluent and Physico-chemical Results (2016): Water Resources Management Authority.

Government of the Republic of Kenya, Ministry of Water and Irrigation, Athi Water Services Board (2012): Volume I -

General and Special Conditions of the Services Provision Agreement Between Athi Water Services Board and the Nairobi

City Water and Sewerage Company for Nairobi City Cluster.

Government of the Republic of Kenya, Ministry of Water and Irrigation, Athi Water Services Board (2015): Training Report

On Operations and Maintenance for Ablution Block Operators: Consultancy Services for Community Mobilization and

Sensitization, Design, Supervision and Works Coordination for Implementation of the Ablution Blocks under the Nairobi

Rivers Sewerage Improvement Project (NaRSIP).

Government of the Republic of Kenya, Ministry of Water and Irrigation, Athi Water Services Board: Project Status Report

on Tree Planting Along Nairobi Rivers Basin (2015): Contract No. AWSB/NaRSIP/TP/06/2015.

NEC3 Standard Contract recommended for public sector organizations: Institute of Civil Engineers, United Kingdom.

Subsidiary Loan Agreement between the Government of the Republic of Kenya and Athi Water Services Board (2011);

Nairobi Rivers Basin Rehabilitation and Restoration Program: Sewerage Improvement Project (ADF Loan).

I

APPENDIX I

Officials Met During PCR Mission in Kenya, 21st November – 2nd December 2016

Name of participant Organization

/Institution/Position

Tel. no./

Cell phone no.

Email address

Mr. James Ntabo MWI (+254)0722250530 okemwajim@gmail.com

Eng. Damaris Oyaro MWI (+254)0707559944 damkeb@yahoo.com

Ms. Faith Githinji MWI (+254)072473950 faithginjinji@yahoo.com

Mr. Erick F.N. Akotsi MENR (Director – Urban Rivers

Restoration Programme)

(+254)0721367601 akotsierick@gmail.com

Mr. Hudson M. Mukanga MENR (Environmental Planner) (+254)0721792455 hmmukanga@gmail.com

Mr. Jeckly Bitok MEMR (+254)0713462453 jeqbit@gmail.com

Ms. Patricia K’omudho NCCG (+254)0733790546 patking@gmail.com

Mr. Simon M. Kibachio MOWI (+254)0722593664 simonmwas@yahoo.com

Eng Joseph Kamau AWSB (HPES) (+254)720714766 jkamau@awsboard.go.ke

Eng. Emily Kilongi AWSB (Technical Manager) (+254)0721947853 ekilongi@awsb.go.ke

Eng. Joshua W. Ichang’i AWSB (Civil Engineer) (+254)0721606 958 jichangi@awsboard.go.ke

Eng. Philip Gichuki NCWSC (Managing Director)

Mr. Msafiki P. Wambua NCWSC (+254)0725847441 mwambua@nairobiwater.o.ke

Eng. Nahason Muguna NCWSC (+254)0722524415 nmuguna@nairobiwater.co.ke

Eng. Lucy Njambi NCWSC (+254)0722763221 lnjambi@nairobiwater.co.ke

Mr. Timon Ogendo NCWSC (+254)0721336409 togendo@nairobiwater.co.ke

Mr. Lusiri Lukwa F. NCWSC (+254)0723450622 llukwa@nairobiwater.co.ke

Mr. Jackson Wacira GIBB Africa (+254)0721438595 jwantech@yahoo.com

Mr. Sunya O. Fredrick GIBB Africa (+254)0724615283 fredricksunya@gmail.com

Eng. Agnelo Fernandes GIBB Africa (+254)0726524201 afern27@gmail.com

Eng. Caroline Owako GIBB Africa (+254)0720870038 cowako@yahoo.com

Mr. Ma Ziheng Stecol Corporation (+254)0739125606 dandora0120@gmail.com

Mr. Tora Zhang Stecol Corporation (Site Agent) (+254)0700126196 mathareproject@nfec.co.ke

Mr. Horman Wang Stecol Corporation (Assistant

Site Agent)

(+254)0734429793 mathareproject@nfec.co.ke

Mr. Guo Gao Peng Stecol Corporation (Assistant

Site Agent)

(+254)0791079234 mathareproject@nfec.co.ke

Eng. Ephantus Mugo NCWSC (Regional Manager –

Informal Settlements)

(+254)0722347900 emugo@nairobiwater.co.ke

Mr. John K. Chege NCWSC (+254)0710115268 kchege@nairobiwater.co.ke

Ms. Habiba Roba NCWSC (+254)0715933886 hroba@nairobiwater.co.ke

Ms. Hilda Kinyanyi NCWSC (+254)0722985253 hkinyanyi@nairobiwater.co.ke

Mr. Song Xu Sinohydro (+254)0739036249 Songxu72785@gmail.com

Mr. Moses Njuguna GIBB Africa (+254)0729435054 nmoses20@yahoo.com

Mr. Alphaxard Kitheko AWSB (Civil Engineer) (+254)0721512740 akitheko@awsboard.go.ke

Mr. A. Venkataiah Technofab Eng. Ltd (+254)0736958403 keny@Technofabengineering.c

om

Mr. Amit Ranaway Technofab Eng. Ltd (+254)0786760250 keny@Technofabengineering.c

om

Mr. M. L. Vijayakumar Technofab Eng. Ltd (+254)0739329257 keny@Technofabengineering.c

om

Mr. N. Srinivasan Technofab Eng. Ltd (+254)0737211820 keny@Technofabengineering.c

om

Mr. Sharafat Yar Khan Technofab Eng. Ltd (+254)0732296926 keny@Technofabengineering.c

om

Mr. Didacus Otieno NCWSC (+254)0722830062 dotieno@nairobiwater.co.ke

Ms. Lilian Rugiri MOWI (+254)0728366143 njerikazi@yahoo.com

Mr. Simon Mwaniki AWSB (+254)0723975646 smwaniki@awsb.go.ke

Ms. Keziah Adhiambo AWSB (Environmental Officer) (+254)0720352697 kadhiambo@awsboard.go.ke

Ms. Janet Langat AWSB (Procurement Unit) (+254)0715 688 272/

0722240103

jlangat@awsboard.go.ke

Mr. Pedro Cardoso Brazilian Embassy (+254) 020 712 5766 pedro.cardoso@itamaraty.gov.b

r

Mr. John Ngugi JICA (+254) 020 2775 000 ky_oso_rep@jica.go.jp

II

Name of participant Organization

/Institution/Position

Tel. no./

Cell phone no.

Email address

Mr. Kuria Kimemia Frame Consultants Ltd. (Civil

Engineer)

0720457016/

0720523850

kuria@frameconsultants.com

Mr. Michael Kimotho AWSB (Manager – Financial

Planning & Analysis)

(+254)020 272

4292/3 (+254)0715

688 272

mkimotho@awsboard.go.ke

Mr. John Ndegwa AWSB (Accountant) (+254)0715 688 272/

(+254)020 272

4292/3

jndegwa@awsboard.go.ke

Ms. Janet Sakiva Kawangware Market, Ablution

Block Operator

(+254)0707310593

Mr. Patrick Kariuki Ushirikiano Self Help Group,

Kawangware, Chairman

(+254)0723094091

Mr. Titus M. Simiyu Frame Consultants Ltd.

Mr. Dan Asiebelah Kangemi, Ablution Block

Operator

(+254)0714228927

III

APPENDIX II

Project Performance Rating from last Supervision Mission, June 2016

IV

APPENDIX III

Implementation Progress Report, updated during December 2016 PCR Mission

Implementation Progress and

Results Report (IPR)

AFRICAN

DEVELOPMENT

BANK GROUP

A Report summary and proposed actions

Report data

Report type: Date of report: 02/12/2016 Mission date (if field mission)

Launching/field supervision/MTR/Desk/Review/ other

(specify): PCR mission

From: 21/11/2016 To: 02/12/2016

Prepared by: PCR Team Leader:

Ms. N. OGAL

Task Manager:

Mr. J. SIFUMA

Division Manager:

Mr. O. CHANDA

Project data

Project code: P-KE-EB0-003

Instrument number(s): 2100150023655

Project name: Nairobi Rivers Rehabilitation and Restoration Program: Sewerage

Improvement Project

Country: Kenya

Sector: Water Supply and Sanitation

Processing milestones Key Events Disbursement and closing dates

Financing source/instrument 1: 2100150023655 (UA 35 million)

Date approved: 06/12/2010

Date signed: 23/03/2011

Date of entry into force: 09/12/2011

Date effective for first disbursement:

31/01/2011

Date of actual first disbursement:

09/12/2011

Cancelled amounts: n/a

Supplementary financing: n/a

Restructuring: n/a

Extensions: 365 days (1 year) approved

on 10/06/2015

Original disbursement deadline: 31/12/2015

Original closing date: 31/12/2015

Revised disbursement deadline: 30/12/2016

Revised closing date: 30/12/2016

Financing source/instrument Foreign currency (UA): Local currency

(UA):

TOTAL (UA)

Financing source/instrument:

2100150023655

24.988 million 10.012 35 million

Financing source/instrument Disbursed to date

(amount, UA):

Disbursed to date

(%):

Undisbursed to

date (amount,

UA):

Undisbursed to date

(%):

Financing source/instrument:

2100150023655

29.306 million 83.73 5.693 16.27

Executing and implementing agency (ies):

Executing and implementing agency (ies): Ministry of Water and Irrigation (MOWI), Athi Water Services Board (AWSB)

Co-financiers and other external partners:

Government of the Republic of Kenya (GOK)

V

Performance status

Progress towards development objective

Rating on

Development

Objective (DO)

Performance rating Summary of key findings

Current Previous Please refer to PCR for details

3 3

Implementation progress

Rating on

Implementation

Progress (IP)

Performance rating Summary of key findings

Current Previous Please refer to PCR for details

3 2.29

Overall project performance classification

Overall Project

Performance

Classification

Project status Summary of key findings

Current Previous Please refer to PCR for details

n/a Non PPP

Issues, risks and actions for management consideration

Issues affecting project implementation

Key issues Corrective actions Responsible Deadline

Please refer to PCR for details n/a n/a n/a

Main risks and mitigation

Risks Mitigation measures applied or

proposed

Responsible Deadline

Please refer to PCR for details n/a n/a n/a

Management review and comments

Report reviewed by Name Date reviewed Comments

Country Manager n/a

Regional Director Mr. G.NEGATU, EARC

Sector Manager Mr. O. CHANDA, OWAS.2

Sector Director Mr. E. MOHAMED, OWAS & AWF

B Results reporting and assessment

Progress towards development objective (project purpose)

State the project development objective and assess progress

The Development Objective (DO) of the Project was to improve the access, quality, availability, capacity and sustainability of wastewater

services in Nairobi for a sustainable environment through the rehabilitation and extension of sewerage services and wastewater treatment

facilities. In general terms, the Project has made progress towards achieving the DOs. In terms of outputs, most of the Project components

are complete. General data collected by the PCR team indicates that significant progress has been made in achieving the Project outcomes.

In spite of this, the lack of progress monitoring mechanisms for the gender mainstreaming and beneficiary sensitization indicators makes it

difficult to accurately report on progress towards the Project DOs.

VI

Outcome reporting

Outcome indicators Baseline

value

Most

recent

value

End target Progress

towards target

Assessment

Outcome 1: Quality of water of the

Nairobi rivers

BOD5 300mg/l

(2009)

BOD5

averages

between 39

mg/l to

67.5 mg/l

BOD5 less than

30mg/l

86.11 – 96.67% See PCR report for

assessment

Outcome 2: Quality of wastewater

effluent discharged into the

Nairobi rivers

Dandora

effluent BOD5

57mg/l;

Kariobangi

effluent

231mg/l

(2009)

Dandora

Effluent

BOD5

90mg/l;

Kariobangi

not yet

operational

Effluent BOD5

less than 30mg/l

81.82% for the

Dandora

treatment

facility

See PCR report for

assessment

Outcome 3: Percentage of population

in surrounding areas with

access to Sewerage facilities

40%

(2009)

- 59% - See PCR report for

assessment

Outcome 4: Incidence of waterborne

diseases

52 %

(2004)

6.5% 20%

See PCR report for

assessment

Outcome 5: Percentage of residents in

the surrounding areas practicing good

hygiene

Increase

from 25 %

(2009)

60% 37 % See PCR report for

assessment

Outcome rating

Rating on project

outcomes

This report Previous report Justification

3 n/a (old format) Please see explanation in PCR report.

Output reporting

Output indicators Most Recent

Value

Annual

Target

End Target (expected

cumulative value

at completion)

Progress

towards

annual

target

Progress

towards end

target (%)

Assessment

Output 1: Length of

trunk lines

and reticulation lines

laid

Additional 63.3

km of trunk

sewers and 43km

of reticulation

laid

n/a Additional

54km of trunk

sewers and

40km of

reticulation

laid by 2014

n/a +117.22%

(Trunk sewers)

+107.50%

(Reticulation

system)

See PCR report

Output 2: Volume of

waste water treated

Additional

40,000m3/d

treatment

capacity at

Dandora

n/a Additional

40,000m3/d

treatment

capacity at

Dandora;

Kariobangi

restored

capacity to

32,000 m3/day

n/a 56.7% See PCR report

Output 3: Quality of

water of the Nairobi

rivers

3,000 n/a 72,553

sewerage

connections

installed

- -4.1% See PCR report

VII

Output indicators Most Recent

Value

Annual

Target

End Target (expected

cumulative value

at completion)

Progress

towards

annual

target

Progress

towards end

target (%)

Assessment

Output 4: Number of

public ablution toilets

67 ablution

blocks

constructed in

informal

settlements and

run by CBOs

n/a 100 ablution

blocks

constructed in

informal

settlements

and run by

CBOs

n/a 67% See PCR report

Output 5: Number of

trees planted

25,000 trees

planted

n/a 11,000 trees

planted

n/a 227.27% See PCR report

Output 6: Number of

NWSC/ AWSC staff

trained

150 staff from

AWSB and

NWSC trained to

manage sewerage

of which 50%

are women

n/a About 150

staff of which

40% are

women of

AWSB and

NWSC trained

to manage

sewerage by

2014

n/a 100% See PCR report

Output 7: Number of

sensitization

campaigns in health

and hygiene practices

1 no. training and

dissemination of

information

through posters

on health and

hygiene targeting

25,000 people of

whom 50% are

women

n/a 16 no. health

and hygiene

sensitization

campaigns

targeting

24,000 people

of whom at

least 50% will

be women

n/a 104.17% See PCR report

Output rating

Rating on project

outputs

This report Previous report Justification

4 n/a (old format) Please see explanation in PCR report.

Development objective (DO) rating

Development

objective rating

This report Previous report Justification

3 3 Please see explanation in PCR report.

C Project implementation progress reporting and assessment

Compliance with covenants

Criteria Number/Percent

of conditions

complied with

Rating Assessment

This

report

Previous

report

Compliance with covenants All 3 3 Refer to PCR for additional details

Compliance with E&S

safeguards

n/a 3 n/a Refer to PCR for additional details

Audit compliance n/a 4 n/a Refer to PCR for additional details

VIII

Project systems and procedures

Criteria Rating Assessment

This report Previous report

Procurement 4 2.5 Refer to PCR for additional details

Financial management 3 2.67 Refer to PCR for additional details

Monitoring and evaluation 2 n/a Refer to PCR for additional details

Project execution and financing

Criteria Total

amount

(a)

Cumulat

ive

amount

to date

Cumulative

amount at

beginning of

the year

Annual

projectio

n

Progress

towards

annual

projectio

n

Progress

towards

total (%

realized)

Rating

This

report

Previous

report

Disbursement (Bank only) UA

29.31

million

UA

29.31

million

n/a n/a n/a 83.73% 3 2

Budget commitments (Bank

only)

UA 35

million

UA 35

million

n/a n/a n/a 100% 4 4

Counterpart disbursements

USD

5.74

million

USD

5.74

million

n/a n/a n/a 79.94% 3 TBC

Criteria Assessment

Disbursement (Bank approved financing only) Refer to PCR for additional details

Budget commitments (Bank only) Refer to PCR for additional details

Counterpart funding disbursements Refer to PCR for additional details

Co-Financing disbursements Refer to PCR for additional details

Overall implementation

IP rating This report Previous report Justification

Refer to PCR for additional details

IX

APPENDIX IV

Calculation of Economic Internal Rate of Return

Assumptions made:

1. Current connections – 492,531

2. Assumed current beneficiary population – 985,062

3. Average population growth – 3.5%

4. O&M costs – 5% of investment costs

5. The assumptions utilize the findings of the World Health Organization (WHO) Evaluation of Costs and Benefits of Water and Sanitation improvements assessment at the

global level.