Public Disclosure Authorized LATIN AMERICA AND CARIBBEAN Brazil Water Global Practice IBRD/IDA Specific Investment Loan FY 2012 Seq No: 11 ARCHIVED on 30-Jun-2017 ISR28569 Implementing Agencies: SEMARH, State of Sergipe, DESO-SE, SEMARH-SE Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:26-Jan-2012 Planned Mid Term Review Date:29-May-2015 Original Closing Date:30-Jun-2017 Project Development Objectives Effectiveness Date:11-Dec-2012 Actual Mid-Term Review Date:29-May-2015 Revised Closing Date:30-Apr-2019 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The project development objective is to promote the efficient and sustainable use of water in the Sergipe River Basin, by strengthening the State's sector management, enhancing land management practices and improving water quality. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Integrated Water Resource Management and Institutional Development:(Cost $17.10 M) Public Disclosure Authorized Component 2: Water for Irrigation:(Cost $14.20 M) Component 3: Water for Cities:(Cost $83.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions 6/30/2017 Page 1 of 8
Although improved when compared to previous ISR project implementation still face difficulties and needs to focus on implementation and in procurement of key actions. The SPN mission found compliance with the overall goals of Project performance agreed in the mid-term review mission, as well with fiduciary and safeguards obligations. FM problems were adeqtaely solved and rating upgraded accordingly. The contracted amounts is still running at 31% of the loan agreement (LA), while the values in ongoing bidding processes reaching 51%, with no significative changes from the last ISR. This is a result of failures in three key procurement processes, one under componen 1 and two under component 2, as follows: Implementation of integrated procedures and tools for environmental licensing and granting of water use: the procurement process was completed, however, as the winner consulting firm was debarred by the Bank (for a problem not related to this project). The consulting firm ranked second also faces problems (again not related to this project, under investigation). As a result, the procurement process was cancelled and has to be relaunched. Bidding process of the irrigation modernization failed, after a lond time to complete technical assessment and dilgencies with the winning firm, as the proposal was considered substantially unsatifscatorely. Acquition and instalation of micro-irrigation kits failed due to lack of qualified bidders. The Bank team and the PMU discussed the reasons for such failures and found that insufficient dissemination is the main cause of unsucessfull bids together with unclear requirements. Sepecific actions were agreed during the SPN mission, including the more intense use of the specialist hired to support procurement processes. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results Project Development Objective Indicators Integrated procedures and tools for environmental licensing and water rights implemented (Yes/No, Custom) 6/30/2017 Page 2 of 8
Value N N N Y Date 30-Dec-2011 30-Nov-2016 30-Nov-2016 30-Apr-2019 Improved efficiency irrigation techniques implemented in agricultural areas targeted by the Project (Hectare(Ha), Custom) Value 0.00 0.00 0.00 800.00 Date 30-Dec-2011 12-Jun-2017 12-Jun-2017 30-Apr-2019 Pollution load discharged by the municipalities targeted by the Project s wastewater investments is reduced (tons of BOD/year) by 2019 (Number, Custom) Value 600.00 2,125.00 2,125.00 4,000.00 Date 31-Dec-2012 01-Jun-2017 01-Jun-2017 30-Apr-2019 People provided with access to improved sanitation services (Number, Corporate) Value 102,000.00 197,000.00 197,000.00 230,000.00 People provided with access to improved sanitation services - Female (RMS requirement) (Number, Corporate Supplement) 6/30/2017 Page 3 of 8
Value 54,300.00 104,000.00 104,000.00 122,000.00 Overall Comments Intermediate Results Indicators Number of water utilities that the project is supporting (Number, Custom) Value 1.00 2.00 2.00 2.00 Date 30-Sep-2014 19-Dec-2016 19-Dec-2016 30-Apr-2019 Proposal to create or designate the state agency responsible for water resources management is submitted to the Government (Yes/No, Custom) Value N N N Y Demarcation, preservation, conservation and recovery of protected areas in water supply reservoirs in the Sergipe River Basin (Hectare(Ha), Custom) Value 0.00 0.00 0.00 266.00 6/30/2017 Page 4 of 8
Adoption of water and soil conservation practices by rural producers who benefit from irrigation kits (Number, Custom) Value 0.00 0.00 0.00 30.00 Date 31-Dec-2011 01-Jun-2017 01-Jun-2017 30-Apr-2019 Establishment and implementation of water tariffs for farmers operating within the Poção da Ribeira and Jacarecica I irrigation perimeters. (Yes/No, Custom) Value N N N Y Date 30-Dec-2011 19-Dec-2016 19-Dec-2016 30-Apr-2019 Number of domiciliary connections to wastewater collection services increased by 2018 in the municipalities of the Sergipe river basin targeted by the project (Number, Custom) Value 55,000.00 105,400.00 105,400.00 127,000.00 Date 30-Dec-2011 30-Dec-2016 30-Dec-2016 30-Apr-2019 DESO s EBTIDA margin improved by in 2018 (Percentage, Custom) Value 9.75 10.30 10.30 17.00 Date 31-Dec-2013 19-Dec-2016 19-Dec-2016 30-Apr-2019 6/30/2017 Page 5 of 8
Elaboration of water user registry in the Sergipe River basin (Yes/No, Custom) Value N Y Y Y Date 31-Dec-2012 01-Jun-2017 01-Jun-2017 30-Apr-2019 Establishment of classification of water bodies in the Sergipe River Basin (Yes/No, Custom) Value N N N Y Date 31-Dec-2012 01-Jun-2017 01-Jun-2017 30-Apr-2019 Water Users Benefited from Improved Irrigation System (Number, Custom) Value 0.00 0.00 0.00 600.00 Training of rural producers and rural technical assistance agents as replicators of technologies and practices of soil and water conservation targeting the enhancement of natural resources management (Number, Custom) Value 0.00 0.00 0.00 1,000.00 6/30/2017 Page 6 of 8
Number of people benefiting from improved water supply system by the Project (Number, Custom) Value 0.00 0.00 0.00 290,000.00 Reduction of energy costs in the irrigation perimeters supported by the project (Percentage, Custom) Value 0.00 0.00 0.00 40.00 Date 12-Jun-2017 12-Jun-2017 12-Jun-2017 30-Apr-2019 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P112074 IBRD-81130 Effective USD 70.28 70.28 0.00 25.42 44.86 36% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P112074 IBRD-81130 Effective 26-Jan-2012 13-Sep-2012 11-Dec-2012 30-Jun-2017 30-Apr-2019 Cumulative Disbursements 6/30/2017 Page 7 of 8
Restructuring History Level 2 Approved on 14-Jun-2017 Related Project(s) There are no related projects. 6/30/2017 Page 8 of 8