Document of
The World Bank

Report No:ICR00003616

IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IDA-45060)
ON A
CREDIT
IN THE AMOUNT OF SDR 98.4 MILLION
(US$149 MILLION EQUIVALENT)
TO THE
PEOPLE’S REPUBLIC OF BANGLADESH
FOR A
DHAKA WATER SUPPLY AND SANITATION PROJECT
December 21, 2016
Global Water Practice (GWADR)
Country Department SACBN
South Asia Region

CURRENCY EQUIVALENTS

Exchange Rate Effective 10/30/2016

Currency Unit=Bangladesh Taka (BDT)

0.0128 BDT = US$

US$ 1.00 = 78.3 BDT

FISCAL YEAR July to June

Senior Global Practice Director:

/

Guang Zhe Chen

Country Director:

/

Qimiao Fan

Practice Manager:

/

Meike van Ginneken

Project Team Leader:

/

Sudipto Sarkar

ICR Team Leader:

/

Sudipto Sarkar

ICR Lead Author:

/

Susanna Smets with Nishtha Mehta

ABBREVIATIONS AND ACRONYMS

ADB / Asian Development Bank
BoD
CAS / Board of Directors
Country Assistance Strategy
DCC / Dhaka City Corporation
DMA / Dhaka Metropolitan Area
DPP
DSIP
DWASA
DWSSP / Development Project Proforma
Dhaka Sanitation Improvement Project
Dhaka Water Supply and Sanitation Authority
Dhaka Water Supply and Sanitation Project
EMF / Environmental Management Framework
FGD
FM
FSM
FY / Focus Group Discussion
Financial Management
Fecal Sludge Management
Fiscal Year
GFDRR
GoB / Global Facility for Disaster Risk Reduction
Government of Bangladesh
ICR / Implementation Completion and Results Report
IDA
IO
IRR / International Development Association
Intermediate Outcome
Internal Rate of Return
ISR / Implementation Status and Results Report
IWM
JMP / Institute of Water Modelling
WHO/UNICEF Joint Monitoring Program
LIC / Low Income Community
LICSIP / Low Income Community Service Improvement Plan
M&E / Monitoring and Evaluation
MDGs / Millennium Development Goals
MoF
MoLGRDC
MTR / Ministry of Finance
Ministry of Local Government, Rural Development & Cooperatives
Mid-Term Review
NPV
NGO / Net Present Value
Non-Governmental Organization
OP/BP
O&M
PAD / Operational Policy and Bank Procedure
Operations and Maintenance
Project Appraisal Document
PAH / Project Affected Households
PDO / Project Development Objective
PMU / Project Management Unit
PV
RAP / Present Value
Resettlement Action Plan
RPF
SO
STP
TA / Resettlement Policy Framework
Support Organization
Sewage Treatment Plant
Technical Assistance
WASA / Water Supply and Sewerage Authority
WSS
WSP / Water Supply and Sanitation Services
Water and Sanitation Program
WSUP / Water and Sanitation for the Urban Poor
BANGLADESH
Dhaka Water Supply and Sanitation Project
CONTENT
Data Sheet
A. Basic Information
B. Key Dates
C. Ratings Summary
D. Sector and Theme Codes
E. Bank Staff
F. Results Framework Analysis
G. Ratings of Project Performance in ISRs
H. Restructuring
I. Disbursement Graph
1. Project Context, Development Objectives and Design
2. Key Factors Affecting Implementation and Outcomes
3. Assessment of Outcomes
4. Assessment of Risk to Development Outcome
5. Assessment of Bank and Borrower Performance
6. Lessons Learned
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners
Annex 1. Project Costs and Financing
Annex 2. Outputs by Component
Annex 3. Economic and Financial Analysis
Annex 4. Bank Lending and Implementation Support/Supervision Processes
Annex 5: Summary of Borrower's ICR and/or Comments on Draft ICR
Annex 6. Comments of Co-Financers and Other Partner Stakeholders
Annex 7. List of Supporting Documents
MAP

DATA SHEET

A. Basic Information
Country: / Bangladesh / Project Name: / BD Dhaka Water Supply and Sanitation Project
Project ID: / P093988 / L/C/TF Number(s): / IDA-45060
ICR Date: / 11/02/2016 / ICR Type: / Core ICR
Lending Instrument: / SIL / Borrower: / GOVERNMENT OF BANGLADESH
Original Total Commitment: / XDR 94.80M / Disbursed Amount: / XDR 50.87M
Revised Amount: / XDR 50.97M
Environmental Category: B
Implementing Agencies:
Dhaka Water Supply and Sewerage Authority (DWASA)
Cofinanciers and Other External Partners:

B. Key Dates

Process / Date / Process / Original Date / Revised / Actual Date(s)
Concept Review: / 02/01/2005 / Effectiveness: / 03/17/2009 / 03/17/2009
Appraisal: / 07/21/2008 / Restructuring(s): / 06/13/2013
11/23/2015
Approval: / 12/02/2008 / Mid-term Review: / 10/31/2012 / 11/28/2012
Closing: / 06/30/2013 / 06/30/2016
C. Ratings Summary
C.1 Performance Rating by ICR
Outcomes: / Moderately Unsatisfactory
Risk to Development Outcome: / Substantial
Bank Performance: / Moderately Unsatisfactory
Borrower Performance: / Moderately Unsatisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Bank / Ratings / Borrower / Ratings
Quality at Entry: / Moderately
Unsatisfactory / Government: / Moderately Unsatisfactory
Quality of Supervision: / Moderately Satisfactory / Implementing Agency/Agencies: / Moderately Unsatisfactory
Overall Bank Performance: / Moderately Unsatisfactory / Overall Borrower Performance: / Moderately Unsatisfactory
C.3 Quality at Entry and Implementation Performance Indicators
Implementation Performance / Indicators / QAG Assessments (if any) / Rating
Potential Problem Project at any time (Yes/No): / Yes / Quality at Entry (QEA): / None
Problem Project at any time (Yes/No): / Yes / Quality of Supervision (QSA): / None
DO rating before Closing/Inactive status: / Moderately Unsatisfactory

D. Sector and Theme Codes

Original / Actual
Sector Code (as % of total Bank financing)
Flood protection / 51 / 51
Public administration- Water, sanitation and flood protection / 8 / 8
Wastewater Collection and Transportation / 19 / 19
Wastewater Treatment and Disposal / 19 / 19
Water supply / 3 / 3
Theme Code (as % of total Bank financing)
City-wide Infrastructure and Service Delivery / 50 / 50
Urban services and housing for the poor / 50 / 50

E. Bank Staff

Positions / At ICR / At Approval
Vice President: / Annette Dixon / Isabel Guerrero
Country Director: / Qimiao Fan / Xian Zhu
Practice Manager/Manager: / Meike van Ginneken / Junaid Kamal Ahmad
Project Team Leader: / Sudipto Sarkar / Fook Chuan Eng
ICR Team Leader: / Sudipto Sarkar
ICR Primary Author: / Susanna Smets with Nishtha Mehta

F. Results Framework Analysis

Project Development Objectives (from Project Appraisal Document)

The Project Development Objective (PDO) is to improve the sustainable delivery of stormwater drainage, wastewater and waterservices by the Dhaka Water Supply and Sewerage Authority (DWASA) to the population of Dhaka through: (a) the installation ofselected stormwater pumping stations and the rehabilitation of selected canals to help improve drainage and minimize urbanflooding; (b) the rehabilitation, repair and expansion of priority investments in the city's sewerage network and treatment plantto help improve the urban environment; and (c) supporting DWASA's pilot expansion of water and sanitation services into selectedDhaka slums to help increase services to the urban poor.

Revised Project Development Objectives (as approved by original approving authority)

The revised PDO to improve storm water drainage in select catchments in Dhaka and improve DWASA's planning capacity

(a) PDO Indicator(s)
Indicator / Baseline Value / Original Target Values (from approval documents) / Formally Revised Target Values / Actual Value Achieved at Completion or Target Years
Indicator 1 : / Direct project beneficiaries (number), of which female (%)
Value
quantitative or
Qualitative) / 1500000 / 4000000 / 3600000
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 90% achieved; introduced at restructuring. The number is from the drainage impact modeling exercise;it is the population of wards that would see a change in flood depth and duration for a 1 in 10 year event; the percent of femalebeneficiaries is 50%.
Indicator 2 : / Increase in permanent storm water pumping capacity (m3/d)
Value
quantitative or
Qualitative) / 0 / 40 / 40
Date achieved / 12/08/2008 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved; before restructuring this was an IO level indicator, lifted to PDO level atrestructuring. Due to the completion of Rampura (25 m3/s) and Kamalapur (15 m3/s) the indicator is achieved;
Indicator 3 : / Increased capacity of rehabilitated drainage canals (m3/s)
Value
quantitative or
Qualitative) / 0 / 250 / 250
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved; introduced at restructuring; this indicator is achieved through the rehabilitation anddevelopment of 13 sections of drainage canals
Indicator 4 : / Number of plans prepared and approved by DWASA Board of Directors
Value
quantitative or
Qualitative) / 0 / 4 / 2
Date achieved / 06/13/2013 / 06/30/2015 / 06/30/2016
Comments
(incl. %
achievement) / 50% achieved; introduced at restructuring; The sewage master plan was approved on Sep 30, 2014; Thedrainage master plan on Jun 23, 2016. 2 other plans were prepared, but not approved. These plans were prepared with BE funds &not attributed to project
Indicator 5 : / Water level and number of days of waterlogging in the eastern part of Dhaka
Value
quantitative or
Qualitative) / NA / NA
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / Indicator dropped at restructuring in June 2013; DWASA does not have the systems to monitor this indicator
Indicator 6 : / Number of households with access to sewerage services
Value
quantitative or
Qualitative) / 50853 / 57000
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / Indicator dropped at restructuring in June 2013; sewerage investments were cancelled at restructuring.
Indicator 7 : / Increase in number of people in project area ward slums with access to safe water
Value
quantitative or
Qualitative) / 0 / 180000 / 49000
Date achieved / 12/12/2008 / 06/30/2013 / 06/30/2016
Comments
(incl. %
achievement) / Indicator dropped at restructuring in June 2013; LIC investments were cancelled. However, the projectincluded some small LIC works, and 49000 LIC residents gained access to safe water supply as a result of project activities.
Indicator 8 : / Increase in number of people in project area ward slums with access to improved sanitation
Value
quantitative or
Qualitative) / 0 / 218000
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / Indicator dropped at restructuring in June 2013; LIC investment component was cancelled
(b) Intermediate Outcome Indicator(s)
Indicator / Baseline Value / Original Target Values (from approval documents) / Formally Revised Target Values / Actual Value Achieved at Completion or Target Years
Indicator 1 : / A new sewerage master plan for Dhaka city is approved by DWASA's Board of Directors
Value
(quantitative
or Qualitative) / no / yes / yes
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved; introduced at restructuring; The sewerage master plan was approved by DWASA's Board ofDirectors on September 30, 2016
Indicator 2 : / Diagnostic study on septage management practices in Dhaka
Value
(quantitative
or Qualitative) / no / yes / yes
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved; introduced at restructuring; a diagnostic study on septage management was carried outand completed by June 30, 2016;
Indicator 3 : / length of storm water canals constructed/rehabilitated (m)
Value
(quantitative
or Qualitative) / 0 / 30000 / 20885 / 20885
Date achieved / 12/08/2008 / 06/30/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved
Indicator 4 : / A new drainage master plan for Dhaka city is approved by DWASA's Board of Directors
Value
(quantitative
or Qualitative) / no / yes / yes / yes
Date achieved / 06/13/2013 / 12/31/2015 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved; indicator introduced at restructuring; The drainage master plan was approved by DWASA'sBoard of Directors on June 23, 2016
Indicator 5 : / Drainage modeling undertaken of the impact of the project's i) khal rehabilitation and ii) storm water
Value
(quantitative
or Qualitative) / no / yes / yes / no
Date achieved / 06/13/2013 / 12/31/2015 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / Not achieved; indicator introduced at restructuring; drainage impact modeling was completed by June 302016 with Bank-executed funds. Rated not achieved as this is not attributable to the project
Indicator 6 : / Number of project affected households successfully compensated
Value
(quantitative
or Qualitative) / 0 / All entitled PAH fully compensated prior to relocation from project site / 500 / 441
Date achieved / 12/08/2008 / 06/30/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved as this represents all households affected by the project eligible for compensation(indicator continued)
Indicator 7 : / Service Improvement Plan for LICs is prepared
Value
(quantitative
or Qualitative) / no / yes / no
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / Not achieved; indicator introduced at restructuring; LIC service improvement plan was developed inclose collaboration with DWASA. This was completed using Bank-executed funds; rated not achieved as not attributable to the project;
Indicator 8 : / Annual statutory audits for DWASA demonstrating transparent and accountable financial management (cumulative)
Value
(quantitative
or Qualitative) / 0 / No fiduciary issues with project funds / 4 / 4
Date achieved / 12/08/2008 / 06/30/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / 100% achieved; Annual audits have been submitted regularly; indicator was continued
Indicator 9 : / Water utilities that the project is supporting
Value
(quantitative
or Qualitative) / 1 / 1 / 1
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / Core indicator introduced at restructuring
Indicator 10 : / Development of an institutional structure for DWASA’s decentralization and an action plan for its implementation
Value
(quantitative
or Qualitative) / no / yes / no
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / Not achieved. Indicator introduced at restructuring; a diagnostic and options study for DWASA'sdecentralization was completed with Bank executed funds; rated not achieved as not attributable to the project.
Indicator 11 : / A new decentralized zonal management structure and action plan for its implementation are approved byDWASA's Board of Directors
Value
(quantitative
or Qualitative) / no / yes / no
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / Not Achieved; indicator introduced at restructuring; Plan was completed with Bank-executed funds, inclose coordination with DWASA. Following DWASA's preferred option for decentralized management, detailed organogram was prepared;not yet approved by BoD
Indicator 12 : / DWASA zonal office refurbished and equipped
Value
(quantitative
or Qualitative) / 0 / 1 / 6
Date achieved / 06/13/2013 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / Target surpassed; indicator introduced at restructuring; due to fund reallocation a total of 6 zonaloffices have been refurbished and equipped, compared to the target of one zonal office
Indicator 13 : / Length of sewage lines rehabilitated/extended (km)
Value
(quantitative
or Qualitative) / 0 / 30
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / This indicator was dropped at restructuring in June 2013 due to the cancellation of sewerage investment
Indicator 14 : / Volume of solid waste collected along the canals (tons)
Value
(quantitative
or Qualitative) / 0 / 20000
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / Indicator dropped at restructuring in June 2013; DWASA does not have the monitoring systems or mandateto ensure collection
Indicator 15 : / Increase in population in project area ward slums with access to safe water
Value
(quantitative
or Qualitative) / 0 / 56000 / 49000
Date achieved / 12/12/2008 / 06/30/2013 / 06/30/2016
Comments
(incl. %
achievement) / Indicator dropped at restructuring; some LIC investments were completed. 49000 LIC residents gainedaccess to safe water supply as a result of project activities.
Indicator 16 : / Increase in population in project area peri-urban unions with access to safe water
Value
(quantitative
or Qualitative) / 0 / 124000
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / Indicator dropped at restructuring
Indicator 17 : / Increase in population in project area ward slums with access to improved sanitation
Value
(quantitative
or Qualitative) / 0 / 94000
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / Indicator dropped at restructuring
Indicator 18 : / Increase in population in project area peri-urban unions with access to improved sanitation
Value
(quantitative
or Qualitative) / 0 / 124000
Date achieved / 12/12/2008 / 06/30/2013
Comments
(incl. %
achievement) / Indicator dropped at restructuring

G. Ratings of Project Performance in ISRs

No. / Date ISR
Archived / DO / IP / Actual Disbursements
(USD millions)
1 / 05/25/2009 / Satisfactory / Satisfactory / 0.75
2 / 07/29/2009 / Satisfactory / Satisfactory / 0.75
3 / 11/28/2009 / Satisfactory / Satisfactory / 3.30
4 / 05/26/2010 / Satisfactory / Moderately Satisfactory / 3.22
5 / 12/19/2010 / Satisfactory / Moderately Satisfactory / 5.61
6 / 07/10/2011 / Satisfactory / Moderately Satisfactory / 5.61
7 / 06/05/2012 / Satisfactory / Satisfactory / 8.42
8 / 12/31/2012 / Unsatisfactory / Unsatisfactory / 15.49
9 / 06/22/2013 / Unsatisfactory / Unsatisfactory / 15.49
10 / 10/09/2013 / Unsatisfactory / Unsatisfactory / 22.04
11 / 12/14/2013 / Unsatisfactory / Unsatisfactory / 22.04
12 / 06/22/2014 / Moderately Satisfactory / Moderately Satisfactory / 27.82
13 / 11/23/2014 / Moderately Satisfactory / Moderately Satisfactory / 40.03
14 / 06/10/2015 / Moderately Satisfactory / Moderately Satisfactory / 44.76
15 / 11/17/2015 / Moderately Unsatisfactory / Moderately Unsatisfactory / 58.34
16 / 02/02/2016 / Moderately Unsatisfactory / Moderately Unsatisfactory / 65.19
17 / 06/30/2016 / Moderately Unsatisfactory / Moderately Unsatisfactory / 71.39

H. Restructuring (if any)

Restructuring Date(s) / Board Approved PDO Change / ISR Ratings at Restructuring / Amount Disbursed at Restructuring in USD millions / Reason for Restructuring & Key Changes Made
DO / IP
06/13/2013 / Y / U / U / 15.49 / The project was restructured to scale-down investments and focus on activities that could be completedwithin an additional 2.5 year period. The restructuring also increased project focus on institutional strengthening and capacitybuilding activities
11/23/2015 / N / MU / MU / 58.34 / A six-month extension was required to complete crucial investments (e.g. one of the pumping stations)and other ongoing activities
If PDO and/or Key Outcome Targets were formally revised (approved by the original approving body) enter ratings below:
Outcome Ratings
Against Original PDO/Targets / Unsatisfactory
Against Formally Revised PDO/Targets / Moderately Unsatisfactory
Overall (weighted) rating / Moderately Unsatisfactory

I. Disbursement Profile

1

1. Project Context, Development Objectives and Design

1.1Context at Appraisal

  1. From 2000 to 2008, Bangladesh’s economy grew at 5.8 percent per annum. At the same time, in 2008, about 40 percent of the population continued to live below US$1.25 per day. While majority of this population was in rural areas, at least 25 percent of the poor population lived in Bangladesh’s urban areas. Urban poverty was further exacerbated by rapid urbanization.
  2. Between 2000 and 2008, Bangladesh experienced faster urbanization than South Asia as a whole (World Bank, 2015). In 2008, about 40 million people lived in urban areas across the country, with about 15 million living in the Dhaka Metropolitan Area (DMA). While Dhaka was the center for manufacturing, commerce and construction for the country,the city’s rapid growth also led to considerable infrastructure and environmental challenges.
  3. In 2005, 29 percent of Bangladesh’s urban population had access to piped water services and 55 percent had access to other improved water sources, while access to improved sanitation was 58 percent (JMP)[1]. Dhaka was the only city with a water-borne sewerage systemthat served about 20 percent of its population. The large majority of households were not connected to the combined sewer system and either used septic tanks or had no on-site facility in place at all. As a result, septic tank effluent and black water discharged directly in the storm water canals and drains. This affected the drainage systems and led to pollution of water sources and contamination of water supply. In the absence of adequate planning and enforcement, the canals also became dumping areas for solid waste. In 2008, only 26 out of Dhaka’s 43 canals (or khals) were functional.
  4. In 1996, the Government of Bangladesh adopted the Water Supply and Sewerage Authority (WASA) Act. Under this Act, Dhaka WASA (DWASA)was assignedthe responsibility of providing water, sewerage and stormwater drainage[2]services in Dhaka. As per the Act, DWASA’s management was answerable to a Board of Directors, which included stakeholders appointed by the GoB. In order to increase DWASA’s autonomy and improve operations, the GoB also approved various regulations and signed aPerformance Agreement with DWASA. Despite these steps, the increasing population, increased risk of flooding due to inadequate drainage systems, and limited infrastructure resulted in critical challenges for DWASA.
  5. The Dhaka Water Supply and Sanitation Project (DWSSP) was designed to address some of the issues confronting DWASA. The Bank had a long history of supporting water supply and sanitation infrastructure in Dhaka - financing four projects since the 1960s. Despite a gap after the closure of the Fourth Water Supply and Sanitation project in 2002, the Bankwas able to prepare DWSSP bringing its experience and relevant sector knowledge. DWSSP was also well aligned with the Country Assistance Strategy (CAS) 2006-2009 objectives of improving the governance and efficiency of infrastructure services, including in the water sector.

1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved)

  1. The PDOwas to improve the sustainable delivery of stormwater drainage, wastewater and water services by the Dhaka Water Supply and Sewerage Authority to the population of Dhaka through:

a)The installation of selected stormwater pumping stations and the rehabilitation of selected canals to help improve drainage and minimize urban flooding;