ethiopia - harar water supply and sanitation project - project

AFRICAN DEVELOPMENT FUND

ETHIOPIA

HARAR WATER SUPPLY AND SANITATION PROJECT

PROJECT COMPLETION REPORT

(PCR)

OWAS DEPARTMENT

December 2013

1

COMPLETION REPORT of PROJECT P/ET/E00/005 A. PROJECT DATA AND KEY DATES I. BASIC INFORMATION Project Number Project Name Country (ies)

P/ET/E00/005 Harar Water Supply and Sanitation Project Ethiopia

ID Number of all Lending Instrument(s) Department Environmental Classification

2100 OWAS Category 2

Original Commitment Amount Amount Cancelled Amount Disbursed Percent Disbursed

ADF Loan of UA19,890,000 & Grant of UA 1,120,000 Loan UA 18, 790,560.14 & Grant 434,093

Loan 94.17% and Grant 38.76%

Borrower

The Government of the Federal Democratic Republic of Ethiopia

Executing Agency(ies) [List the main Ministries, Project Implementation Units, Agencies and civil society organizations responsible for implementing project activities.]

Ministry of Water and Energy (former Ministry of Water Resources) Harar Town Water Supply and Sewerage Services Authority (HTWSSSA)

Co-financers and other External Partners [List all other sources and amounts of financing, technical assistance or other resources used in this project]

None

II. KEY DATES Project Concept Note Cleared by Ops. Com.

Appraisal Report Cleared Board Approval

None mars-02 02-sept-02

Restructuring(s)

There were some design changes after the Board Approval

Original Date MM/DD/YY

Actual Date MM/DD/YY

Difference in months (auto-calculated)

EFFECTIVENESS 09/12/03 04/16/04

7,2

MID-TERM REVIEW -

-

-

CLOSING 12/31/08

For ongoing projects enter date of 98% disb. rate

36,5 12/31/11

III. RATINGS SUMMARY All summary ratings are auto-generated by the computer from the relevant section in the PCR. CRITERIA SUB-CRITERIA RATING

PROJECT OUTCOME

Achievement of Outputs 4

Achievement of Outcomes 3

Timeliness 1

OVERALL PROJECT OUTCOME 3

2

BANK PERFORMANCE

Design and Readiness 3

Supervision 3

OVERALL BANK PERFORMANCE 3

BORROWER PERFORMANCE

Design and Readiness 3

Implementation 3

OVERALL BORROWER PERFORMANCE 3

IV. RESPONSIBLE BANK STAFF POSITIONS AT APPROVAL AT COMPLETION

Regional Director Mr. G. Negatu

Sector Director Mr. K. Bedoumra Mr. M. EL Azizi

Sector Manager Mr. Sering Jallow Mr. Osward M Chanda

Task Manager Mr. Barrow Lamin Mr. Christopher Mutasa

PCR Team Leader Mr. Teferi Menkir

PCR Team Members

Mr. Sisay Woldetensay (ADB-ETFO), Mr. Tafesse Tesfaye (Ministry of Water and Energy) and Mr. Gizaw Molla, (Financial/Economic Analyst - Consultant)

B. PROJECT CONTEXT

Summarize the rationale for Bank assistance. State: -what development challenge the project addresses, -the Borrower's overall strategy for addressing it, -Bank activities in this country (ies) and sector over the past year and how they performed, and -ongoing Bank and other externally financed activities that complement, overlap with or relate to this project. Please cite relevant sources. Comment on the strength and coherence of the rationale. Any additional narrative about the project's origins and history, if needed, must be placed in Annex 6: Project Narrative]

The Government of the Federal Democratic Republic of Ethiopia (FDRE) has shown great commitment to implement various Water Supply and Sanitation (WSS) projects, both in rural and urban areas in the country. Accordingly, since 2004, the FDRE has embarked on the implementation of major reforms in the water sector. In line with these reforms, policies and strategies were developed in order to empower beneficiaries to operate and maintain their water supply and sanitation (WSS) facilities. As part of the reform program, the WSS program was turned into a National Program, with the aim of improving WSS facilities in the whole country. The major objective of the reform program is increased access to sustainable water supply and sanitation services, for rural and urban areas, through improved capacity of stakeholders in the sector and better management of the water sector. Development partners, like the African Development Bank, are key to the successful implementation of the Water Supply and Sanitation (WaSH) program. Other donors such as WB, DFID, JICA, UNICEF, The Netherlands and Finland Governments, NGOs, etc has also been financing the WaSH Program in Ethiopia. As a result, in 2000, the Government of Ethiopia requested ADB to finance Harar Water Supply and Sanitation project (Harar WSS) as one of its priority projects. The project was appraised in May 2002 and approved by the Bank in September 2002. This is the first project of its kind to be financed by the Bank in the water

3

sector. The major motivation for the Bank's participation in financing the Harar WSS Project was the accute shortage of water in Harar and the surrounding towns, due to the drying up of Lake Alemaya. Regarding ADB's projects portfolio, from 2007/08 to 2011/12 (as at June 30th), the Bank funded 28 projects in Agriculture, Transport, Public Utility, Social, Multi-Sector and Multi-National Operations. The total cumulative disbursement of both loans and grants as at 30 June 2012 was UA 250,856,882. The disbursement for Harar Water Supply and Sanitation project was UA 18,790,580 (Loan) and UA 434,093.12 (Grant).

WORD COUNT 336

C. PROJECT OBJECTIVES AND LOGICAL FRAMEWORK 1. State the Project Development Objective(s) (as set out in the appraisal report)

The project objective was to improve access to water supply and sanitation services in the towns of Harar, Haremaya, Aweday, Adele and Dengego through improved water production, distribution and sanitation for improved health, poverty alleviation and economic growth

2. Describe the major project components and indicate how each will contribute to achieving the Project Development Objective(s).

The project had 4 components; (i) Water Production consisting of Construction of 4 boreholes and 75 km long 600 meter diameter water transmission main with 4 booster stations. (ii) Water Distribution involving the rehabilitation and extension of distribution network, provision of community managed public water fountains, procurement of 4,000 consumers meters, a meter test bench and meter repair kits. (iii) Sanitation involving the construction of drainage system, communal latrines, provision of vacuum tankers, refuse collection tankers; and refuse collection vehicles; also conduct sanitary study and (iv) Public education on water and health, HIV/AIDS and water tariffs. The first component (water production) contributes towards achieving the project objective through meeting the water demand of the project beneficiaries while the second component (water distribution) contributes to the achievement of the objectives through giving the communities access to piped water using public fountains and individual house connection. The third component (sanitation) contributes towards achieving project objectives through reducing sanitation related diseases; and the last component (public education) assists in the creation of awareness that will be instrumental in preventing water borne diseases, HIV/AIDS, etc as well as ensuring the sustainability of the Project.

3. Provide a brief assessment (up to two sentences) of the project objectives along the following 3 dimensions. Insert a working score, using the scoring scale provided in Appendix 1.

PROJECT OBJECTIVES DIMENSIONS ASSESSMENT WORKING SCORE

RELEVANT a) Relevant to the country's development priorities

a) The project is significantly relevant to contribute to the government's long term goal of providing clean and safe water and sufficient sanitation facilities for the whole population in the country. Accordingly, this project is relevant as it contributes towards meeting the demand for water by the communities in Harar and the surrounding towns.

4

ACHIEVABLE

b) Objectives could in principle be achieved with the project inputs and in the expected timeframe

b) Despite the project having achieved most of the results set at the beginning, which are providing water to the communities and improving the sanitation, the project incurred additional costs and it was extended several times thus failing to meet the target completion time stated in the appraisal report (PAD).

3

CONSISTENT

c) Consistent with the Bank's country or regional strategy

c) The project conforms with the Bank's Country Strategy Paper framework which gave emphasis on the sustainable economic development of the country.

4

d) Consistent with the Bank's corporate priorities

d) It is consistent with the Bank's corporate priorities such as the implementation of infrastructural development projects, i.e. road, water supply, power, poverty alleviation etc.

4

4. Summarize the log. frame. If a log. frame does not exist, complete the table below, indicating the overall project development objective, the major components of the project, the major activities of each component and their expected outputs, outcomes, and indicators for measuring the achievement of outcomes. Add additional rows for components, activities, outputs or outcomes if needed.

COMPONENTS ACTIVITIES OUTPUTS EXPECTED OUTCOMES

INDICATORS TO BE MEASURED

Water Production and Transmission:

Drilling and development of boreholes

Four new boreholes constructed at Hulahulul well-field and eight

Yield of 45l/s from each of the new

4 new boreholes constructed at Dire Jara

4

Construction of boreholes with collection chambers, 75 km long 600 mm diameter water transmission main, and with booster pumping stations

others developed out of exiting boreholes drilled at Hasseliso well-field. The sets of boreholes at both well-fields connected to a collection tanker of 200m3 each.

boreholes constructed.

wellfield and ground water monitoring initiated by 2006

Construction of water transmission pipeline

75 km long DN 600 mm DCI transmission pipeline laid.

Transmit water through 75 KM pipe line

Dire Jara well-field connected to Harar by 75 km, 600 mm transmission pipeline by 2006

Construction of booster pump stations

Four booster pumping stations constructed at different locations, each comprising of two 500m3 reservoirs equipped with valves housed in a valve room, pump house, compressor house, generator house, transformer house, operator dwelling house, etc.

Pump water to a higher elevation

Construction of Reservoirs Water storage reservoirs of 2000m3 at Dengego and 4000m3 at Harar constructed.

store water in the reservoir without leakage

Water Distribution: Rehabilitation and extension of Distribution Network, provision of community managed public water fountains, procurement of 4000 consumer meter, a meter bench and meter repair kits.

Extension of water distribution and drainage networks.

115 KM of distribution network of different size of PVC pipeline laid in Harar, Alemaya Aweday, Dengogo and Adelle towns and Five pressure break tanks of 200 m3 capacity each constructed to serve five new zones in Harar Town.

Provide access to potable water for 250,000 people

115 km distribution network rehabilitated and extended by 2005

Provision of water meters Water connection for 4,000 individual housing units fitted with water meters.

80% of the population get access to drinking water in their house

4000 water meters provided by 2005

Construction of public fountains

47 community managed public fountains constructed and maintained.

20% of the population get access in public fountain

47 public fountains provided by 2005.

Institutional Support to HTWSSA (Harar Town Water Supply and Sewerage Authority)

Institutional capacity building for HTWSSA

Better managed utility operating on commercial lines with improved customer data base, regular monthly billing and revenue collection reduction to unaccounted for water

Customer Data Base improved. Regular monthly billing; revenue collection improved to 85 % of billing. The reduction to unaccounted water has been improved to 10% by the year 2012.

Improved customer Data Base, Regular monthly billing ; revenue collection improved to to 90 % unaccounted for water reduced from 40% to 18% by 2006

Sanitation: Construction of drainage system, communal latrines, provision of vacuum tankers, refuse collection containers and refuse collection vehicles; also conduct sanitation study

Sanitation study conducted with the aim of improving the liquid and solid waste management system, construction of 2.2 KM open ditch,10 KM closed conduit drainage system, provision of 2 large and 1 small vacuum tankers, provision of 2 refuse transfer container, construction

Sanitation study conducted, construction of 2.2 KM open ditch, 10 KM closed conduit drainage system, provision of 2 large and 1 small vacuum tankers, provision of 2 refuse transfer container, construction of 3 public latrines and 35 community managed latrines

Improve the sanitation system and its coverage so as to reduce the incidence of sanitation related diseases.

3 vacuum trucks, 2 refuse collection vehicles, 35 refuse bins and sanitation study report provided by 2006 3 public latrines and 35 communal latrines provided for low-income areas by 2005 12.2 km of storm water

5

of 3 public latrines and 35 community managed latrines

drains constructed by 2005.

Public education campaign on water and health, HIV/AIDs and water tariffs

The use of media, seminars, workshops, development and wide dissemination of publicity materials

All the beneficiaries living in project areas were addressed through media

Create awareness among communities

Increased awareness about water and health relations

Increase water tariffs to meet the high cost of the proposed water supply system

Tariff study conducted Maintain the recovery of the project cost

Acceptance of new tariffs

5. For each dimension of the log. frame, provide a brief assessment (up to two sentences) of the extent to which the log. frame achieved the following. Insert a working score, using the scoring scale provided in Appendix 1. If no log. frame exists, score this section as a 1 (one).

LOG. FRAME DIMENSIONS ASSESSMENT WORKING SCORE

LOGICAL

a) Presents a logical causal chain for achieving the project development objectives

The project development objectives were achieved through strong logical linkages of the various project components except for the sanitation component.

3

MEASURABLE

b) Expresses objectives and outcomes in a way that is measurable and quantifiable

The objectives and outcomes of the of the project can be measured and quantified by the number of physical activities (4 new boreholes drilled, 8 boreholes developed, 72 km transmission pipelines and 91.3 km distribution network laid, 4 booster pump stations constructed and 16 surface pumps installed)

3

THOROUGH c) States the risks and key assumptions

In the PAD, there were risks such as interruption of power, the anticipated high power tariff increase that would be reflected in the water tariff and the cost sharing arrangements between the Harari and Oromia regions. Also, the other risk foreseen was the compensation to be paid to the project affected communities. Despite these risks, the project was able to manage them and made them effective.

3

D. OUTPUTS AND OUTCOMES I. ACHIEVEMENT OF OUTPUTS In the table below, assess the achievement of actual vs. expected outputs for each major activity. Import the expected outputs from the log. frame in Section C. Score the extent to which the expected outputs were achieved. Weight the scores by the activities' approximate share of project costs. Weighted scores are auto-calculated by the computer. The overall output score will be auto-calculated as the sum of the weighted scores. Override the auto-calculated score, if desired, and provide justification.

MAJOR ACTIVITIES Working Score

Share of Project Costs in percentage

(as stated in Appraisal Report)

Weighted Score (auto-

calculated) Expected Outputs Actual Outputs

4 new boreholes constructed, 75 Km transmission pipe laid, four boaster pump stations and water reservoir constructed

4 new boreholes constructed, 72 Km Transmission pipe laid, four boaster pump stations and water reservoir constructed

4 71 2,84

115 KM distribution network in Harar, Alemaya and Awedaye laid, 5 pressure break tanks of 200m3 capacity constructed, 47 community managed public fountains constructed and maintained

65.3 KM distribution network in Harar, 14.8 KM and 11.8 KM in Alemaya and Awedaye total 92 KM pipe laid, 5 pressure break tanks of 200m3 capacity constructed, 47 community managed public fountains constructed and maintained

3 19 0,57

Sanitation study conducted with the aim of improving the solid liquid and solid waste management system, construction of 2.2 KM open ditch,10 KM closed conduit drainage system,

Sanitation study conducted that will result in improving the solid liquid and solid waste management. Due to the areness created, more than 35 communities have managed to construct their own latrines.

1 6 0,06

6

provision of 2 large and 1 small vacuum tankers, provision of 2 refuse transfer container, construction of 3 public latrines and 35 community managed latrines

All the beneficiaries living in project area were addressed through media and tariff study was conducted and implemented.

About 75 % of the beneficiaries living in project area were addressed through media and tariff study was conducted

3 4 0,12

OVERALL OUTPUT SCORE [Score is calculated as the sum of weighted scores]

4

Check here to override the auto-calculated score

Provide justification for over-riding the auto-calculated score

Insert the new score or re-enter the auto calculated score

II. ACHIEVEMENT OF OUTCOMES 1. Using available monitoring data assess the achievement of expected outcomes. Import the expected outcomes from the log. frame in Section C. Score the extent to which the expected outcomes were achieved. The overall outcome score will be auto-calculated as an average of the working scores. Override the auto-calculated score, if desired, and provide justification.

OUTCOMES Working

Score Expected Actual

Yield of 45l/s from each of the new bore hole constructed.

Yield of 45l/s was achieved from each of the 4 wells, transmitted, stored in the reservoir and pumped to a higher elevation

4

Transmit water through 75 KM pipe line Delivery of water to the community was achieved through the construction of 72 km pipeline.

4

Pump water to a higher elevation Water pumped at a higher elevation 4

store water in the reservoir without leakage Water stored in the reservoir. 4

Provide access to potable water for 250,000 people

250,000 people got access to potable water 4

80% of the population get access to potable water in their house

70 % of population have been provided access to potable water in their house

3

20% of the population get access in public fountain

15% of the population have been provided access to public fountain 3

Improve the sanitation system and its coverage.

Only Sanitation study conducted. But awareness on sanitation has been conducted which has helped the communities to construct their own latrines

1

Improved customer regular monthly billing, revenue collection improved to 90% by2006

Revenue collection improved and customer complaints reduced to 85% by 2012

3

Create awareness among communities for sustainability and for operation & maintenance cost recovery

Awareness has been created for 75% of the population in terms of hygiene, education, HIV prevention, cost recovery, sustainability etc 3

OVERALL OUTCOME SCORE [Score is calculated as an average of the working scores]

3

Check here to override the auto-calculated score

Provide justification for over-riding the auto-calculated score

Insert the new score or re-enter the auto calculated score

7

2. Additional outcomes. Comment on the project's additional outcomes not captured in the log. frame, including cross-cutting issues (e.g., gender).

1. The project has helped the reduction in water-borne disease by 75% and the time spent by women fetching water has also been reduced by 50%. The women involvement in managing water facilities has also increased to 50%.

3. Risks to sustained achievement of outcomes. State the factors that affect, or could affect, the long-run or sustained achievement of project outcomes. Indicate if any new activity or institutional change is recommended to help sustain outcomes. The analysis should draw upon the sensitivity analysis in Annex 3, where appropriate.

(1) Funding for the remaining distribution network, (2) O& M and investment cost recovery, (3) reinvestment, (4) population growth

E. PROJECT DESIGN AND READINESS FOR IMPLEMENTATION

1. State the extent to which the Bank and the Borrower ensured the project was commensurate with the Borrower’s capacity to implement by designing the project appropriately and by putting in place the necessary implementation arrangements. Consider all major design aspects, such as extent to which project design took into account lessons learned from previous PCRs in the sector or the country (please cite key PCRs); whether the project was informed by robust analytical work (please cite key documents); how well Bank and Borrower assessed the capacity of the implementing agencies and/or Project Implementation Unit; scope of consultations and partnerships; economic rationale of project; and provisions made for technical assistance. Any additional narrative about implementation should be included at Annex 6: Project Narrative]

During the appraisal of the project, the capacity of the borrower to implement the project was assessed leading to the setting up of elaborate implementation arrangements at the Executing Agency level (Ministry of Water and Energy) and project level (Project Coordination Office- region). These institutional arrangements were effective for commencing the project. However, over time, the many design changes and increased size of the project gave rise to challenges in project implementation. Since the Executing Agency was the MoWE, the project staff were stationed in Addis Ababa and managed the project through the Coordination Office located in Harar which created some gaps in closely managing the project. Also the project was understaffed as it consisted only of the Project Manager, a Water Supply and Sanitation Engineer and an Accountant. All these, among others things, contributed to delays in project completion.

Due to the above reasons, there were implementation challenges such as: (i) Frequent design changes, (ii) lack of close supervision of the consultants and failure by the consultants to closely monitor the contracts, (iii) Slow physical progress as result of failure to timely commence and complete physical activities and utilize the allocated budget as planned, and (iv) Delays in finalizing the procurement process, mainly due to the lengthy procurement process ("No Objection", Cancellation, etc.).

WORD COUNT 215

2. For each dimension of project design and readiness for implementation, provide a brief assessment (up to two sentences). Insert a working score, using the scoring scale provided in Appendix 1.

PROJECT DESIGN AND READINESS FOR IMPLEMENTATION DIMENSIONS

ASSESSMENT WORKING

SCORE

REALISM

a) Project complexity is matched with country capacity and political commitment.

a) The project was complex from the water source up to reaching the beneficiaries and the choice of technology for the project. The source of water is under the Diredawa Administration and the beneficiaries are in Harari and Oromia regions. Thus, the transmission pipes were laid for about 72 km, and in the process farmers were required to be compensated for the land that they lost as a result of the project intervention. The compensation process also took longer than expected. Despite the complexity of the Project, solutions acceptable to all stakeholders involved in the project area were found which enabled the project to achieve its intended objectives. This was mainly achieved through existing implementing capacity of the country and a strong commitment on the part of the GoE. Regarding the choice of technology, the PCR mission observed that it has become well managed by the local people but for its sustainability there is still a need to empower staff from the Authority to take up the operation of the telemetry system from the equipment suppliers.

3

RISK ASSESSMENT

b) Project design includes adequate risk

b) There were risks anticipated in terms of increase in energy costs and increase in water tariffs. However, all these were accommodated

2

8

AND MITIGATION

analysis. through a small increase of electricity tariffs and an affordable water tariff as reflected in the Consumer's Willingness to Pay for the increased tariff. In general, risk assessments and their mitigation measures were properly maintained and implemented. However, unforeseen risks such as cost variations as result of engineering design changes and the increase in the cost of construction materials were encountered during the project implementation periods.

USE OF COUNTRY SYSTEMS

c) Project procurement, financial management, monitoring and/or other systems are based on those already in use by government and/or other partners.

c) The procurement rules and procedures applied were those of the African Development Bank while for financial management and auditing the project used local systems. There is ongoing procurement reform being undertaken by the Government which will eventually form the basis for using the country procurement system as and when it reached the level acceptable to the Bank.

3

For the following dimensions, provide separate working scores for Bank performance and Borrower performance:

WORKING SCORE

Bank Borrower

CLARITY d) Responsibilities for project implementation were clearly defined.

d) The responsibilities were clearly defined. 4 3

PROCUREMENT READINESS

e) Necessary implementation documents (e.g. specifications, design, procurement documents) were ready at appraisal.

e) The detailed engineering designs were made after the negotiations with the Bank. Also, due to the change of designs, there were repetitively preparations of design, specifications and procurement documents 3 3

MONITORING READINESS

f) Monitoring indicators and monitoring plan were agreed upon before project launch.

f) The Monitoring and Evaluation systems, including monitoring indicators and plan were in place before the commencement of the project. Due to these, there were timely Supervision Missions of the Bank but the borrower had very limited follow up capacity.

3 3

BASELINE DATA

h) Baseline data were available or were collected during project design.

g) The necessary data were collected during appraisal and design stages of the project respectively

4 4

F. IMPLEMENTATION

1. State the major characteristics of project implementation with reference to: adherence to schedules, quality of construction or other work, performance of consultants, effectiveness of Bank supervision, and effectiveness of Borrower oversight. Assess how well the Bank and the Borrower ensured compliance with safeguards. Any additional narrative about implementation should be included at Annex 6: Project Narrative.]

The Borrower monitored the implementation of the Project through the Executing Agency (EA), the Project Management Unit (PMU) and the Water Resources Development Fund (WRDF) which is responsible for managing and monitoring the loan part of the project. The EA established the project Steering Committee of the major stakeholders to oversee project implementation. There were design modifications and the contractor did not mobilize his manpower and machinery on time contributing to delays in the implementation of the Project. Though the Project was delayed, the quality of the work was to the standard as per the redesign. Compensation and resettlement committees were established in March 2005 to address the safeguard issues. All the issues were resolved through the committees in consultation with Hareri and Oromia Regions. The Bank supervisions were also helpful in advising and making recommendations for the issues. The missions were planned twice a year. Refer to Annex 4. The water quality test from some of the wells indicates high quality of Calcium and Magnesium which have an effect in clogging of

9

pipes. This issue has been already addressed by Harar Water Supply and Sewerage Authority to find permanent solution.

2. Comment on the role of other partners (e.g. donors, NGOs, contractors, etc.). Assess the effectiveness of co-financing arrangements and of donor coordination, if applicable.

The Project is funded by the African Development Bank and the FDRE. The UN-Habitat was involved only to undertake the needs assessment for the capacity building for Harar Water Supply and Sewerage Authority. In the country, the government, with assistance from donors and development partners, is implementing projects both in urban and Rural Water Supply and Sanitation. For the rural water supply and sanitation, donor coordination falls under the WaSH Coordination Office in the Ministry of Water and Energy. The Donors, (AfDB, WB, DFID, JICA, EU, Finland Embassy etc.), NGOs, private sector and the Government conduct the Joint Technical Review (JTR) of the program twice a year and Multi Stakeholders forum once in a year. In addition to this, there is also Donor technical committee which meets every month to assess the implementation of the Program. The contractors are involved in the construction work and drilling of Deep and Shallow wells. The private sector is involved in the consultancy services and capacity building components.

3. Harmonization. State whether the Bank made explicit efforts to harmonize instruments, systems and/or approaches with other partners.

For the Harar Water Supply and Sanitation Project, since the project was financed by the Bank with limited input by the UN-Habitat, it may not be relevant to state the harmonization aspect with other development partners. It has to be noted that the involvement of the WRDF can be considered as the positive implementation step for harmonization.

4. For each dimension of project implementation, assess the extent to which the project achieved the following. Provide a brief assessment (up to two sentences) and insert a working score, using the scoring scale provided in Appendix 1.

PROJECT IMPLEMENTATION DIMENSIONS ASSESSMENT WORKING

SCORE

TIMELINESS

a) Extent of project adherence to the original closing date. If the number on the right is: below 12, "4" is automatically scored between 12.1 to 24, "3" is automatically scored between 24.1 to 36, "2" is automatically scored beyond 36.1, "1" is automatically scored

Difference in months between original closing date and actual closing date or date of 98% disb. rate. (auto-generated)

a) The project did not adhere to the original closing date. It rather took 36 months more to complete the project. Thus, the project faced delay in implementation and high cost overruns 1

36,5

BANK PERFORMANCE

b) Bank complied with:

Environmental Safeguards

b) One of the conditions of the loan is to consider the environmental impacts of the project. This was made effective by clearing ESIA before the start of the project

3

Fiduciary Requirements

All fiduciary requirements like submission of quarterly progress reports and annual financial audit reports were effectively made over the project's implementation periods

3

Project Covenants The project covenants were respected by the Bank and disbursements were made effective as per the accepted procurement procedures

3

c) Bank provided quality supervision in the form of skills mix and practicality of solutions

c) The feedback from the Bank's Supervision Mission helped the Client take corrective measures. However, the skill mix lacked other experts such as environmentalists.

3

d) Bank provided quality management oversight

d) Through various Supervision Missions, the Bank provided management oversight 3


e) Borrower complied with:

Environmental Safeguards

Since the project is environmentally categorized as Category 2, there are no significant environmental impacts in the surrounding areas. However, environmental safeguards such as bush replantations around the pump stations/reservoir, backfilling of trenches and excavated areas, proper

3

10

protection of cultural heritage, community graveyards, protection of erosion with gabion in some pump stations, etc. were properly made

Fiduciary Requirements

All fiduciary requirements were fulfilled by the borrower. However quarterly reports, financial and audit reports were not timely submitted both to the Government and the Bank

3

Project Covenants The project covenants were respected by the Client and as such government's contributions were effective over the project periods.

3

f) Borrower was responsive to Bank supervision findings and recommendations

f) The project assisted the Supervision Mission to get all the required information and based upon these data the Mission's findings were put forwarded to the Client. In view of this, therefore, the Client positively responded to the findings and recommendations that were provided by the Bank.

3

g) Borrower collected and used monitoring information for decision making

Like any other projects, information was collected in order to monitor the performance of the project. Thus, the monitoring information helped take appropriate corrective and remedial measures for the problems that the project encountered.

3

G. COMPLETION 1. IS THE PCR DELIVERED ON A TIMELY BASIS, IN COMPLIANCE WITH BANK POLICY? Date project reached 98% disb. Rate (or closing date if applicable) (auto-generated)

Date PCR was sent to [email protected]

MM/DD/YY

Difference in months

(auto-calculated)

WORKING SCORE if the difference is 6 months or less, a 4 is scored. If the difference is 6.1 or more, a 1 is scored (auto-calculated)

12/31/11

2. Briefly describe the PCR Process. Describe the Borrower’s and co-financers' involvement in producing the document. Highlight any major differences of opinion concerning the assessments made in this PCR. Describe the team composition and confirm whether a site visit was undertaken. Mention any major collaboration from other development partners. State the extent of field office involvement in producing the report. Indicate whether comments from Peer Reviewers were received on time (provide names and positions of Peer Reviewers).

The PCR process was initiated by the Bank in consultation with the Ministry of Water and Energy. Following this, the PCR's Mission composed of Water and Sanitation Specialist (ADB), Procurement Assistant (ADB), Socio-Economist (Ministry of Water and Energy) and Financial/Economic Analyst (Consultant) undertook the field visits to all project sites from 26th to 30th June 2012. In addition to the site visits, discussions were conducted with various stakeholders. These consultative meetings helped the Mission to get the necessary information to prepare the PCR. During the PCR mission, there were no major differences of opinion between the Bank and the Government.

WORD COUNT 100

H. LESSONS LEARNED

Summarize key lessons for the Bank and the Borrower suggested by the project’s outcomes Any additional narrative about lessons learned, if needed, must be placed in Annex 6: Project Narrative]

1. Key Issues This is really a typical project with many complicated issues from the inception of the project period until its completion. To mention some of them 1.1 The distances of the sources of water and the ownership of the land; 1.2 Heavy bureaucracies and understaffing of the project team (1 Project Manager, 1 Water Supply and 1 Accountant). 1.3 Lack of project specific Procurement specialist, resulting in procurement activities being undertaken by the MoWE’s procurement office which is highly burdened with other projects 1.4 Inconsistencies and a lot of modifications of the Project Engineering Designs 1.5 The existence of power interruptions in the project areas will be one of the major challenges for project sustainability. Therefore, alternative sources of energy such as the installation of generators are commendable.

11

2. Key Lessons Learned 2.1 The project is a good ground to draw a lot of lessons in terms of its successes and failures as a typical water supply and sanitation project: (a) Before Project Appraisal, there should be a project preparation phase which help test the details of technical, financial and socio-economic feasibility of the project. The Feasibility Study could have easily captured some of the issues raised during implementation of the project and then the Appraisal stage would be more refined (b) Emphasis should be given on the protection of water resources in the future not to repeat the same mistakes that led to the drying up of Lake Haremaya due to unsustainable use of this water resource. Universities like Haremaya and others need to be involved in the development and sustainability of water resources in the country in general and in the regions in particular. (c) There should be a lean effective Organization and Management (O&M) structure of the project even with the existing hierarchal structure. On top of this, there should be an independent Project Office that can closely implement and follow up the details implementation activities of the project. Unlike other projects, this is one of the big projects that needed close monitoring and supervision. (d) In terms of selecting Contractors and Consultant, building up a competent project management team is of paramount importance before embarking upon the implementation of such types of projects. (e) Timely procurement of Goods and Services are critical areas to be given due attention. Thus, intensive training on procurement needs to be widely provided for procurement specialists in order to properly accomplish both procurement plans and its timely done activities (f) There should be a provision for Communities’ training and mobilization (g) The integration of both water and sanitation components should be given due attention. This is one of the shortcomings of this project in which it completely excluded the sanitation component from the implementation processes even though it had been included in the PAR (h) Integration and raising of awareness among other institutions and ministries involved (particularly, education and health) in implementing the project is important for the sustainable management and operation of the infrastructure. This project excluded some of these institutions even at a level of awareness creation. (i) The Mid-Term Review (MTR), which would have helped identify and recommend possible solutions to some of the problems encountered in the course of project implementation, was not undertaken. It is important to undertake the Mid-Term reviews as this helps in improving implementation. (j) It will be necessary to plan and utilize the grant portion at the beginning of the implementation of the project in order fully to utilize the allocated budget. (k) Before commencing the construction activities, it will be important to resolve all the safe guard issues and settle the required compensation for the smooth implementation of the project. (L) frequent change in the Bank Task Managers for the Project

WORD COUNT 594

I. PROJECT RATINGS SUMMARY All working scores and ratings are auto-generated by the computer from the relevant section in the PCR.

CRITERIA SUB-CRITERIA WORKING

SCORE

PROJECT OUTCOME

Achievement of outputs 4

Achievement of outcomes 3

Timeliness 1

OVERALL PROJECT OUTCOME SCORE 3

12

BANK PERFORMANCE

Design and Readiness

Project Objectives were relevant to country development priorities. 4

Project Objectives could in principle be achieved with the project inputs and in the expected time frame.

3

Project Objectives were consistent with the Bank’s country or regional strategy 4

Project Objectives were consistent with the Bank’s corporate priorities 4

The log frame presents a logical causal chain for achieving the project development objectives. 3

The log frame expresses objectives and outcomes in a way that is measurable and quantifiable. 3

The log frame states the risks and key assumptions. 3

Project complexity was matched with country capacity and political commitment. 3

Project design includes adequate risk analysis. 2

Project procurement, financial management, monitoring and/or other systems were based on those already in use by government and/or other partners. 3

Responsibilities for project implementation were clearly defined. 4

Necessary implementation documents (e.g. specifications, design, procurement documents) were ready at appraisal. 3

Monitoring indicators and monitoring plan were agreed upon during design. 3

Baseline data was available or were collected during design. 4

PROJECT DESIGN AND READINESS SUB-SCORE 3

Supervision:

Bank complied with:

Environmental Safeguards 3

Fiduciary Requirements 3

Project Covenants 3

Bank provided quality supervision in the form of skills mix provided and practicality of solutions.

3

Bank provided quality management oversight. 3

PCR was delivered on a timely basis 0

SUPERVISION SUB-SCORE 3

OVERALL BANK PERFORMANCE SCORE 3


Design and Readiness

Responsibilities for project implementation are clearly defined. 3

Necessary implementation documents (e.g. specifications, design, procurement documents) are ready at appraisal.

3

Monitoring indicators and monitoring plan are agreed upon 3

Baseline data are available or are being collected 4

PROJECT DESIGN AND READINESS SCORE 3

Implementation

Borrower complied with:

Environmental Safeguards 3

Fiduciary Requirements 3

Project Covenants 3

Borrower was responsive to Bank supervision findings and recommendations. 3

Borrower collected and used of monitoring information for decision-making. 3

IMPLEMENTATION SUB-SCORE 3

OVERALL BORROWER PERFORMANCE SCORE 3

J. PROCESSING STEP SIGNATURE AND COMMENTS DATE

Sector Manager Clearance 20th August 2012

Regional Director Clearance 31-août-12

Sector Director Approval 5th September 2012

13

APPENDIX 1 Scale for Working Scores and Ratings

SCORE EXPLANATION

4 Very Good- Fully achieved with no shortcomings

3 Good- Mostly achieved despite a few shortcomings

2 Fair- Partially achieved. Shortcomings and achievements are roughly balanced

1 Poor- Very limited achievement with extensive shortcomings

NA Non Applicable

LIST OF ANNEXES Mandatory 1. Project Costs and Financing a. Project costs by component b. Financing by sources of funds

2. Bank Inputs. List the key team members, and their specialties, during preparation and supervision. Provide a consolidated list of Preparation, Supervision and Completion Missions in chronological order. Provide the date and ratings of the last supervision report.

3. Economic Analysis (ERR) and Financial Analysis, if appropriate Re-estimate the economic rates of return based on costs and benefits at completion, and compare with appraisal estimates. Break down by components as appropriate. Analyze the sensitivity of the ERR to key assumptions. Present a financial analysis for project beneficiary entities.

4. Procurement Plan. Please attached the most recent Procurement Plan

5. List of Supporting Documents Optional 6. Project Narrative. Key factors not covered in the main template that affected the design and implementation of the project. Such factors, both positive and negative, could include: climate and weather, political changes, contractual or personnel matters, technical issues, procurement processes, and interactions with other partners. If any of these factors is significant enough to affect the evaluation ratings, it should be noted in the template with a reference to this annex.

I

Annex 1

Comparison of Costs between Appraisal and PCR

Appraisal PCR

(Estimate) (Actual) 1. Total Cost (UA/Million) 27.11 22.03 2. Financing Plan (UA/Million)

Source Estimate at Appraisal Actual at PCR

Total % Total %

ADF 19.89 73.4 18.79 85.29

TAF 1.12 4.1 0.43 1.95

FDRE 6.10 22.5 2.81 12.76

Total 27.11 100.0 22.03 100.0

II

Annex 2

Harar Water Supply and Sanitation Project Completion Report

Disbursement by Source of Finance in UA and Birr

Sources 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

Loan(AfDB) 0 0 250 503,16 676 674,97 530 156,59 4 034 639,85 3 211 141,93 6 399 658,99 1 193 550,27 494 297,50 1 993 936,88 18 790 560,14

0 0 4 412 139,71 11 918 350,88 9 337 706,34 71 062 555,49 56 558 196,04 112 717 897,75 21 022 132,20 8 706 116,24 35 225 108,26 330 960 202,71

Grant(AfDB) 0 0 0 0 0 14 278,16 53 199,19 20 372,10 10 340,99 106 071,63 229 471,05 434 093,12

0 0 0 0 0 251 482,80 937 003,19 365 156,76 182 136,99 1 868 251,29 4 041 698,85 7 645 729,87

Government Contribution 0 0 0 185 176,63 611,9 171 419,30 324 420,99 983 432,40 666 590,97 298,624,.65 177 579,54 2 807 856,38

0 0 0 3 261 536,35 10 777,50 3 019 227,00 5 714 062,60 17 321 303,00 11 740 740,00 5,259.708.89 3 127 728,00 49 455 083,34

Total (UA) 0 0 250 503,16 861 851,60 530 768,49 4 220 337,31 3 588 762,11 7 403 823,49 1 870 482,23 898 993,78 2 406 987,47 22 032 509,64

Total(Birr) 0 0 4 412 139,71 15 179 887,03 9 348 483,84 74 339 265,29 63 209 261,82 130 404 357,51 32 945 009,19 15 834 076,42 42 394 535,11 388 061 015,92

III

Annex 3

Harar: HWSSP – PCR Financial Analysis

Basic Assumptions for the Computation of Financial Analysis:

1. The life of the project is 30 years 2. The Operation and Maintenance (O &M) cost is 10% of the original investment cost 3. Physical Contingency of 5% and price contingency of 3% are applied on the total cost of the project 4. The existing Commercial Bank’s lending rate of 12% is used as a yardstick for measuring the Financial Internal

Rate of Return (FIRR). The exchange rate is 1UA=Birr 17.61311 5. A salvage value of 10% of the original cost is considered as a benefit to the project at the end of the project life, 6. The numbers of beneficiaries are estimated based upon the information available from the field visits. The base

for these estimates are Central Statistical Agency 7. The water consumption is estimated based upon the number of beneficiaries and the average per capita

consumption of water in the urban areas (20 liters per day) 8. The average water tariff of 2 major categories estimated to be Birr 11.50/m3 ($0.66/m3). This is equivalent to

$0.001 per liter (Birr 0.012 /liter) 9. Domestic market prices are used for valuing all costs and benefits

IV

Harar: Water Supply and Sanitation Project- Project Completion Report Computation of NPV and IRR for Financial Analysis Year Cost Benefit Net Benefit

2004 5 073 960,67 - (5 073 960,67)

2005 17 456 870,09 - (17 456 870,09)

2006 10 750 756,41 - (10 750 756,41)

2007 85 483 255,08 - (85 483 255,08)

2008 72 690 651,10 - (72 690 651,10)

2009 149 965 011,14 - (149 965 011,14)

2010 37 886 760,57 - (37 886 760,57)

2011 19 994 268,75 15 199 217,61 (4 795 051,14)

2012 50 538 796,24 15 885 087,54 (34 653 708,70)

2013 1 716 423,72 16 603 028,25 14 886 604,53

2014 1 716 423,72 17 354 576,58 15 638 152,86

2015 1 716 423,72 18 141 344,23 16 424 920,51

2016 1 716 423,72 18 965 021,43 17 248 597,71

2017 1 716 423,72 19 827 380,79 18 110 957,07

2018 1 716 423,72 20 730 281,36 19 013 857,64

2019 1 716 423,72 21 675 672,92 19 959 249,20

2020 1 716 423,72 22 665 600,37 20 949 176,65

2021 1 716 423,72 23 702 208,51 21 985 784,79

2022 1 716 423,72 24 787 746,90 23 071 323,18

2023 1 716 423,72 25 924 575,05 24 208 151,33

2024 1 716 423,72 27 115 167,83 25 398 744,11

2025 1 716 423,72 28 362 121,17 26 645 697,45

2026 1 716 423,72 29 668 158,03 27 951 734,31

2027 1 716 423,72 31 036 134,65 29 319 710,93

2028 1 716 423,72 32 469 047,17 30 752 623,45

2029 1 716 423,72 33 970 038,48 32 253 614,76

2030 1 716 423,72 35 542 405,53 33 825 981,81

2031 1 716 423,72 37 189 606,89 35 473 183,17

2032 1 716 423,72 38 915 270,74 37 198 847,02

2033 1 716 423,72 40 723 203,30 39 006 779,58

2034 1 716 423,72 42 617 397,55 40 900 973,83

2035 1 716 423,72 44 602 042,54 42 885 618,82

2036 1 716 423,72 46 681 533,00 44 965 109,28

2037 1 716 423,72 100 196 269,06 98 479 845,34

FNPV (166 897 127)

FIRR 3,19%

III

Annex 4 Harar: HWSSP – PCR

An Economic Analysis Basic Assumptions for the Computation of Economic Analysis:

1. The life of the project is 30 years 2. Shadow prices are used to convert all financial costs and benefits into to their equivalent economic costs and

benefits by 3. The Shadow prices in terms of various Conversion Factors are used based upon the information obtained from

the Ministry of Finance and Economic Development (MoFED)

4. The Conversion Factors are Standard Conversion Factor (0.90), Shadow wage Rate for skilled labor (0.76) and unskilled labor (0.33) and an Economic Discount Rate is 10.23%. These are some of the National Economic Parameters estimated in Ethiopia for Economic Analysis of projects in Ethiopia

5. All transfer costs such as taxes are excluded (Zero Conversion Factor) from the estimation of economic costs because they are not real economic costs.

6. The average per capita water consumption of 20 liters per day is considered to estimate the annual water

consumption (demand). To arrive at this result, the 3% annual population growth is taken into account.

7. The direct economic benefits are calculated based upon the Consumer Willingness to Pay (CWP) for the water they collected. In view of this fact, therefore, the average consumers’ willingness to pay in the project sites which is estimated to be Birr 1.50 //Jerkin/day (20 liters per day).

8. The economic benefits of time saving is calculated on the bases of the difference between the “With” and “Without” the project situation of the time spent in collecting water. Accordingly, this the time spent is reduced from 1 hour to 30 minutes on average. The 30 minutes time saved is converted to an average daily wage rate. The average daily wage rate in the project areas is Birr 70. Therefore, 30 minutes time saving is an equivalent of about Birr 4.38 per day (Birr 8.75 per hour). This amount is equivalent to about 6% of the daily wage rate in urban areas.

9. The sanitation services’ coverage by the project is found to be nil due to the fact that the sanitation components

were not implemented. The communities used to travel about 30 minutes to execrate their human feces. However, as a result of the project’s intervention in terms of providing communities with water, the sanitation related diseases would be reduced. Accordingly, the reduction in sanitations related diseases are implicitly incorporated in the health benefits.

10. As per the information gathered from the project sites, the communities are exposed to water borne diseases

and lack of sanitation facilities and thus they require medication services. The cost of medication for the disease will be about Birr 500 per person per year, including registering and transport costs to and from communities’ houses

11. The health benefits are estimated based upon the assumptions of: (i) the major incidence of water borne-disease is dysentery, (ii) the prevalence rate for the incidence is 100/1,000 (iii) as a result of the project intervention, the incidence has reduced by 80%, and (iv) the diseases treatment cost is Birr 500 per person per year.

IV

12. Benefits from income generating activities such as poultry farm were observed around the well field areas during the field visits. These are just beginnings that will give rise for the development of more SMEs to flourish up in the project areas. It should also be noted in towns like Harar, Haremaya and Aweday; the private sector will be encouraged and motivated either to expand its current businesses or opening up other new business ventures. These all are simply said economic benefits that cannot be quantified and incorporated in the meantime in the economic analysis. In the future, however, if these economic activities are well integrated and maintained their sustainability, they will bring about economic benefits to the communities. In general, the socio- economic benefits are the overall trickle down effects of the project.

Harar: Water Supply and Sanitation Project- Project Completion Report Computation of NPV and IRR for Economic Analysis (in Birr)

Year Cost Benefit Net Benefit

2004 4 726 201,55 - (4 726 201,55)

2005 16 260 411,12 - (16 260 411,12)

2006 10 013 921,07 - (10 013 921,07)

2007 79 624 403,75 - (79 624 403,75)

2008 67 708 579,25 - (67 708 579,25)

2009 139 686 709,20 - (139 686 709,20)

2010 35 290 077,77 - (35 290 077,77)

2011 18 623 901,56 147 118 392,36 128 494 490,80

2012 47 074 968,23 153 982 557,11 106 907 588,89

2013 1 662 735,00 161 158 921,96 159 496 186,96

2014 1 662 735,00 168 685 420,54 167 022 685,54

2015 1 662 735,00 176 579 788,89 174 917 053,89

2016 1 662 735,00 184 860 691,03 183 197 956,03

2017 1 662 735,00 193 547 768,98 191 885 033,98

2018 1 662 735,00 202 661 695,57 200 998 960,58

2019 1 662 735,00 212 224 230,24 210 561 495,24

2020 1 662 735,00 222 258 277,82 220 595 542,83

2021 1 662 735,00 232 787 950,74 231 125 215,74

3022 1 662 735,00 243 838 634,60 242 175 899,60

2023 1 662 735,00 255 437 057,48 253 774 322,48

2024 1 662 735,00 267 611 363,11 265 948 628,11

2025 1 662 735,00 280 391 188,17 278 728 453,18

2026 1 662 735,00 293 807 743,89 292 145 008,90

2027 1 662 735,00 307 893 902,31 306 231 167,31

2028 1 662 735,00 322 684 287,34 321 021 552,35

2029 1 662 735,00 338 215 371,09 336 552 636,09

2030 1 662 735,00 354 525 575,48 352 862 840,48

2031 1 662 735,00 371 655 379,76 369 992 644,76

2032 1 662 735,00 389 647 434,07 387 984 699,08

2033 1 662 735,00 408 546 679,51 406 883 944,51

2034 1 662 735,00 428 400 474,96 426 737 739,97

2035 1 662 735,00 449 258 731,27 447 595 996,28

2036 1 662 735,00 471 174 053,02 469 511 318,03

2037 1 662 735,00 494 201 866,32 492 539 131,32

ENPV 797 514 120,30

EIRR 27,65%

V

Harar: Water Supply and Sanitation Project- Project Completion Report

Computation of NPV and IRR for Economic Analysis

Summary: Sensitivity Analysis

(in Birr)

Scenario 1 Scenario 2 Senario 3 Scenario 4

Year Net Benefit 1 Net Benefit 2 Net Benefit 3 Net Benefit 4

2004 (4 253 581,40) (5 198 821,71) (4 726 201,55) (4 726 201,55)

2005 (14 634 370,01) (17 886 452,24) (16 260 411,12) (16 260 411,12)

2006 (9 012 528,96) (11 015 313,18) (10 013 921,07) (10 013 921,07)

2007 (71 661 963,37) (87 586 844,12) (79 624 403,75) (79 624 403,75)

2008 (60 937 721,33) (74 479 437,18) (67 708 579,25) (67 708 579,25)

2009 (125 718 038,28) (153 655 380,12) (139 686 709,20) (139 686 709,20)

2010 (31 761 070,00) (38 819 085,55) (35 290 077,77) (35 290 077,77)

2011 130 356 880,96 126 632 100,65 113 782 651,57 143 206 330,04

2012 111 615 085,71 102 200 092,06 91 509 333,17 122 305 844,60

2013 159 662 460,46 159 329 913,46 143 380 294,76 175 612 079,15

2014 167 188 959,04 166 856 412,04 150 154 143,49 183 891 227,59

2015 175 083 327,39 174 750 780,39 157 259 075,00 192 575 032,78

2016 183 364 229,53 183 031 682,53 164 711 886,93 201 684 025,14

2017 192 051 307,48 191 718 760,48 172 530 257,08 211 239 810,88

2018 201 165 234,08 200 832 687,08 180 732 791,02 221 265 130,13

2019 210 727 768,74 210 395 221,74 189 339 072,22 231 783 918,27

2020 220 761 816,32 220 429 269,33 198 369 715,04 242 821 370,61

2021 231 291 489,24 230 958 942,24 207 846 420,67 254 404 010,81

2022 242 342 173,10 242 009 626,10 217 792 036,14 266 559 763,06

2023 253 940 595,98 253 608 048,98 228 230 616,73 279 318 028,23

2024 266 114 901,61 265 782 354,62 239 187 491,80 292 709 764,43

2025 278 894 726,68 278 562 179,68 250 689 334,36 306 767 571,99

2026 292 311 282,40 291 978 735,40 262 764 234,51 321 525 783,28

2027 306 397 440,81 306 064 893,81 275 441 777,08 337 020 557,54

2028 321 187 825,85 320 855 278,85 288 753 123,61 353 289 981,08

2029 336 718 909,59 336 386 362,59 302 731 098,98 370 374 173,20

2030 353 029 113,98 352 696 566,98 317 410 282,93 388 315 398,03

2031 370 158 918,26 369 826 371,26 332 827 106,78 407 158 182,73

2032 388 150 972,58 387 818 425,58 349 019 955,67 426 949 442,48

2033 407 050 218,01 406 717 671,01 366 029 276,56 447 738 612,46

2034 426 904 013,47 426 571 466,47 383 897 692,47 469 577 787,46

2035 447 762 269,78 447 429 722,78 402 670 123,15 492 521 869,40

2036 469 677 591,53 469 345 044,53 422 393 912,72 516 628 723,33

2037 492 705 404,82 492 372 857,82 443 118 944,69 541 959 317,96

ENPV 822 883 820,13 772 144 420,46 692 393 008,43 902 635 232,16

EIRR 29,46% 26,03% 25,87% 29,28%

Note:

1. Scenario 1: Cost Decreased by 10%

2. Scenario 2: Cost Increased by 10%

3. Scenario 3: Benefit Decreased by 10%

4. Scenario 4: Benefit Increased by 10%

VI

Bank Input for Harar Water Supply and Sanitation Project Annex 5

No. Date of Mission Composition of Team Type of Mission

1 7th – 18th Nov/2011 C.Mutasa, Financial analyst, T. Menkir, Water and Sanitation Specialist ETFO, F. Assaye Procurement officer ETFO. I. Camps. YPP Dev. Economist

Super vision Mission

2 9th - 20th May/2011 S, Jallow, Manager OWAS 2, C. Mutasa, Financial analyst, T. Menkir, Water and Sanitation Specialist ETFO, F. Assaye Procurement officer ETFO, Melaku Tadesse, Disb. Assistant ETFO.


3 24th Feb-March 4/2011 Mehedi Khooli, Investigator Principal Control Mission

4 24th – 26th March/2010 L. Barrow, Resident representative, T. Menkir, Water and Sanitation Specialist ETFO

Follow up Mission

5 26th Nov- 10th Dec/2010 N.A. Ogal, Water and Sanitation Engineer, C. Mutasa Financial analyst ,O. Chanda, Water and Sanitation Engineer, T. Menkir, Water and Sanitation Specialist ETFO, F. Assaye Procurement officer ETFO, Melaku Tadesse, Disb. Assistant ETFO.


6 6th -10th June 2009 Eskinder Alemseged, Water and Sanitation Engineer ETFO, Senidu Fanuel, Financial Management Specialist ETFO


7 13 Nov/2008 C. Okonkwo, M.Ba, R. Mammh, K.onyango Audit Mission

8 17th - 21st /2008 T. Robert, Water and Sanitation Engineer, Eskinder Alemseged, Water and Sanitation Engineer ETFO,P. Dzimiri, Financial Analyst, Senidu Fanuel, Financial Management Specialist ETFO


9 17th -30th May/2008 Dr. Johanna Maula, Principal Socio Economist, Rahel Kaba , Water and Sanitation Consultant ETFO


10 3rd – 13th Dec/2007 T. Robert, Water and Sanitation Engineer, A. Bilal, Water and Sanitation Engineer, , Rahel Kaba , Water and Sanitation Consultant ETFO


11 28th May-9th June/2007 T. Robert, Water and Sanitation Engineer, Eskinder Alemseged, Infrastructure Expert ETFO, Rahel Kaba , Water and Sanitation Consultant ETFO, Y. Ahmed, Financial Specialist


12 13th -27th October/2006 T. Robert, Water and Sanitation Engineer, Eskinder Alemseged, Infrastructure Expert ETFO, Thizier Seya, Resident Representative, N. Okagbue, country Operation Officer.


13 3rd – 11th April/2006 S. Jallow. Acting Manager OWAS2, T. Roberts, Water and Sanitation Engineer, Thizier Seya, Resident Representative, N. Okagbue, country Operation Officer. Eskinder Alemseged, Infrastructure Expert ETFO,


14 4th – 16th September/2005 L. Barrow, Financial Analyst, Thizier Seya, Resident Representative, Eskinder Alemseged, Infrastructure Expert ETFO,

15 1st – 13 August/2004 Sering Jallow, Principal Sanitary Engineer, Ahmed Benbarka, Principal Procurement Specialist, Josephine Ngure, Senior Financial Analyst

VII

Annex 6

Aide-Memoir – PCR of Harar Water Supply and Sanitation Project

N.B.: The AM is separately attached.

VIII

Annex 7

Rating for the Last Supervision Mission

IX

Annex 8

List of Reference Documents

1. Harar Water Supply and Sanitation Project – Project Appraisal Document (2002) 2. National Economic Parameters and Conversion Factors for Ethiopia (2008) 3. Education Statistics Bulletin for Hareri Region and Eastern Harerge Zone of the Oromia Region 4. AfDB HWSSP Supervision Missions Aide-Memoirs 5. HWSSP Quarterly Progress Reports 6. PCR – Malawi Rural Water Supply and Sanitation Project