OBA Urban Sanitation Facility for the Greater Accra Metropolitan Area (GAMA) (P145139)

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1 Public Disclosure Authorized AFRICA Ghana Water Global Practice Recipient Executed Activities Investment Project Financing FY 2014 Seq No: 3 ARCHIVED on 10-May-2017 ISR25522 Implementing Agencies: Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:05-May-2014 Original Closing Date:30-Jun-2018 Project Development Objectives Effectiveness Date:07-Mar-2015 Revised Closing Date:30-Jun-2018 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to increase access to improved sanitation to people living in low income communities in the Greater Accra Metropolitan Area (GAMA). The development objective will be achieved by providing Output based Aid (OBA) subsidies to service providers as an incentive to provide access to improved sanitation to low-income households. OBA subsidies will be provided for the construction of sanitation facilities and the provision of desludging services. The subsidies will bridge the gap low-income households face when trying to install in-house sanitation facilities and stop open defecation or the use of public toilets. The project will also leverage financial resources from micro-financing institutions and support the scale up of business models that include soft loans for the provision of sanitation facilities in low income communities (LICs) of the GAMA. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Public Disclosure Authorized Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Implementation Status and Key Decisions 5/10/2017 Page 1 of 6

2 The GPOBA Sanitation Project became effective on March 7, 2015 when the grant agreement was signed by the World Bank and the Government of Ghana. There was a delay in commencement of project implementation due to the delay in effectiveness of the broader GAMA Sanitation and Water Project which the current project complements. Overall implementation under the OBA project, and the household sanitation component of the associated GAMA project, has been slow. While there has been some progress, in terms of the number of toilets completed, up to 755 in April 2017 from 360 in December 2016, the pace has been too slow to achieve the targets envisaged in the original Results Framework. The slow progress is attributed to factors such as: (a) the relatively high cost of onsite sanitation options suitable for low-income urban communities (average cost of a complete sanitation facility is GHC 3,500); (b) delay in hiring the Independent Verification Agent due to procurement issues; (c) challenges due to the limited financial capacity of sub-project Implementers ; (d) challenges finding eligible households for the desludging component of the project due to having overestimated the need, geographic location (neighborhoods where at least 75% of the residents live in a single room), and slower than anticipated toilet construction. The overall project performance has remained Moderately Unsatisfactory. During the most recent mission (April 2017), the Bank team urged implementing partners to make every effort to establish the financing scheme for households and the SPIs, including the guarantee, in order to make the facilities affordable and advance the project implementation. The project is in the process of restructuring and in conjunction with the GAMA project (P119063) is also initiating additional measures to increase demand (through more targeted and follow up marketing); to facilitate household and SPI financing (through setting up a guarantee to support MFIs in lending for sanitation), and promoting appropriate savings and credit services; to lower the cost faced by households by increasing the subsidy from 50% to 70%; and to address supply side constraints (by arranging for large-scale contracting). Progress is expected to improve with the restructuring of the project. However, the project Do and IP ratings would only be upgraded once there is evidence of significant progress in terms of results. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall Moderate Substantial Substantial Comments The risk remains substantial, especially given the issues being faced by the project, the limited implementation timeframe, and the need for timely completion of the restructuring and substantial achievement of targets. Results Project Development Objective Indicators Direct project beneficiaries (Number, Custom) Value , , , /10/2017 Page 2 of 6

3 Female beneficiaries (Percentage, Custom Supplement) Value People provided with access to improved sanitation services (Number, Corporate) Value , , , People provided with access to improved sanitation facilities - urban (Number, Custom Breakdown) Value , , , People provided with access to "improved sanitation facilities" - rural (Number, Custom Breakdown) 5/10/2017 Page 3 of 6

4 PHINDIRITBL PHINDIRITBL Value Date 07-Mar Apr Apr Jun-2018 People provided with access to subsidized desludging services under the project. (Amount(USD), Custom) Value , Date 07-Mar Apr Aug Jun-2018 Overall Comments Intermediate Results Indicators Improved sanitation facilities constructed under the project. (Amount(USD), Custom) Value , Number of desludging operations supported under the project. (Amount(USD), Custom) Value , Date 07-Mar Apr Aug Jun-2018 Overall Comments 5/10/2017 Page 4 of 6

5 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P TF Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P TF Effective 05-May Mar Mar Jun Jun-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. 5/10/2017 Page 5 of 6

6 Related Project(s) There are no related projects. 5/10/2017 Page 6 of 6

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