Public Disclosure Authorized

The World Bank

Small Town Water Supply and Urban Septage Management Project (P156738)

REPORT NO.: RES52371

RESTRUCTURING PAPER

ON A
Public Disclosure Authorized

PROPOSED PROJECT RESTRUCTURING

OF
SMALL TOWN WATER SUPPLY AND URBAN SEPTAGE MANAGEMENT PROJECT
APPROVED ON DECEMBER 19, 2016
TO

THE REPUBLIC OF BENIN

Public Disclosure Authorized

WATER

WESTERN AND CENTRAL AFRICA

Regional Vice President: Ousmane Diagana

Country Director: Coralie Gevers
Public Disclosure Authorized

Regional Director: Simeon Kacou Ehui

Practice Manager/Manager: Yogita Mumssen
Task Team Leader(s): Yeli Mariam Dakoure Sou, Georges Comair
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

ABBREVIATIONS AND ACRONYMS

ANAEPMR Agency for Rural Water Supply (Agence Nationale d’Approvisionnement en Eau Potable en
Milieu Rural)
AQUA-VIE Benin Rural Water Supply Universal Access Program
FSTP Fecal Sludge Treatment Plant
GoB Government of Benin
IDA International Development Association
O&M Operation & Maintenance
M&E Monitoring & Evaluation
PDO Project Development Objective
PEPRAU Projet D’approvisionnement En Eau Potable En Milieu Rural Et D’assainissement Des Eaux
Usées En Milieu Urbain
PPP Public Private Partnership
SAEPmV Rural Multi-village Water Supply Systems, (System d’Approvisionnement en Eau Potable Multi-
village)
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

BASIC DATA

Product Information

Project ID Financing Instrument

P156738 Investment Project Financing

Original EA Category Current EA Category

Partial Assessment (B) Partial Assessment (B)

Approval Date Current Closing Date

19-Dec-2016 31-Dec-2022

Organizations

Borrower Responsible Agency

The Republic of Benin

Project Development Objective (PDO)

Original PDO
The proposed development objectives of the Project are to: (i) increase access to water supply and sanitation in selected
small towns and urban areas in the Recipient’s territory; (ii) strengthen service delivery capacity of water supply and
sanitation sector institutions in selected small towns and urban areas in the Recipient’s territory; and (iii) in the event of
an Eligible Crisis or Emergency, to provide immediate and effective response to said Eligible Crisis or Emergency.
Current PDO
The proposed development objectives of the Project are to: (i) increase access to water supply in selected small towns
and improve safe disposal of fecal sludge in selected urban areas; (ii) strengthen service delivery arrangements of water
supply and sanitation services in selected small towns and urban areas; and (iii) in the event of an Eligible Crisis or
Emergency, to provide immediate and effective response to said Eligible Crisis or Emergency.
OPS_TABLE_PDO_CURRENTPDO
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

Summary Status of Financing (US$, Millions)

Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed

IDA-59310 19-Dec-2016 20-Jan-2017 23-Jun-2017 31-Dec-2022 68.00 60.66 9.08

Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No

I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING

1. This Restructuring Paper aims to seek approval for an extension of the closing date of the Small-Town Water Supply and
Urban Septage Management Project (PEPRAU) Project (P156738) in Benin. The length extension requested is six months,
from December 31, 2022, to June 30, 2023. Additional change introduced includes a revision of two intermediate indicators’
targets of the Results Framework.
2. The PEPRAU project was approved by the Board on December 19, 2016, and became effective on June 23, 2017, with an
original closing date of December 31, 2022.
3. To date, the project has been restructured two times, and with no previous extension of the closing date:
a) The first restructuring was approved in May 2018. The GoB primarily requested this restructuring to modify the
implementation arrangements of the Project as the fiduciary responsibilities for the Project were transferred from the
Ministry of Water to the ANAEPMR (Agence Nationale d’Approvisionnement en Eau Potable en Milieu Rural – Rural Water
Supply National Agency). Additional changes introduced by this first restructuring included: (i) a modification to the Project
description to expand its scope and make eligible the financing of the construction of piped rural water supply systems as
well as the financing of technical assistance in support of institutional reforms in the rural and urban water sectors, that were
not considered at the time of Project appraisal, and (ii) a revision of some indicators and targets of the Results Framework.
b) The second restructuring was approved in May 2019. This restructuring followed the decision of the GoB to (i) move from the
subsidized concessions model in the rural water supply sector to a regional affermage model in line with the strategic
orientations of its national program for universal access to drinking water (anchored to the AQUA-VIE PforR – P164186), and
(ii) focus resources of the PEPRAU on activities in line with the GoB’s priorities, benefiting from solid ownership of the
implementing agencies and that can be implemented within the remaining three and half years of the Project’s
implementation. In that framework, some activities no more relevant regarding the institutional shift of the rural water
service delivery model or not benefiting from sufficient ownership and commitment from some of the Project’s implementing
agencies were canceled. Therefore, the PDO, the project’s description, and the Result Framework were revised accordingly to
reflect the modified scope of the project.
4. To date, the project has disbursed US$59.30 million (a 58 percent disbursement ratio for FY22) against a total project budget
of US$68 million (85.28 percent disbursed). The disbursement rate has increased over the past months as significant
infrastructure works have been completed. The remaining funds to be disbursed (US$10.23 million) are committed to three
activities: (i) the construction of 16 rural multi-Village water supply systems (SAEPmV) of which 5 SAEPmV are still under
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

construction; (ii) complementary works on the fecal sludge treatment plant that were not part of the original bidding
contract; and (iii) the completion of the National Laboratory for Water Quality Control. All these activities are expected to be
achieved by March 2023.
5. The project complies with World Bank fiduciary requirements and has no overdue audit reports or outstanding audit issues.
The project also complies with the World Bank safeguard policies and remains rated Moderately Satisfactory. The project’s
scope will not be changed as part of this restructuring.
Project Status
6. The PDO is to (i) increase access to water supply in selected small towns and improve safe disposal of fecal sludge in selected
urban areas; (ii) strengthen service delivery arrangements of water supply and sanitation services in selected small towns and
urban areas; and (iii) in the event of an Eligible Crisis or Emergency, to provide an immediate and effective response to said
Eligible Crisis or Emergency. At present, the likelihood of fully achieving the PDO is rated as Moderately Satisfactory due to
strong progress on the construction of the infrastructure both for Component 1, which focuses on SAEPmV construction to
increase access to water services and for component 2, which focuses on the construction of the Fecal sludge treatment plant
to improve fecal sludge management.
7. Component 1: Increase Access to Water Services (US$33.5 million). The PDO level indicator for this component is “the
Number of people in rural areas provided with access to Improved Water Sources under the project”; to do that, 16 rural
water supply systems (SAEPmV) have been planned to be constructed and transferred in the global rural water asset to be
managed by regional operators through three affermage contracts (see para 3 on the second restructuring). The construction
of the 16 SAEPmV will be completed by the project closing date in December 2022. But the signing of the affermage contracts
took 1.5 years longer than originally envisaged and were signed in April 2022. The orders of service of the contracts are
expected in August 2022, followed by the water provision service that will start by the project closing date. The Regional
Operators will use the six-month extension period to provide the water service through household private connections and
standpipes, allowing the project to supply improved water source to the targeted 196,000 people as mentioned in the PDO.
8. Component 2: Improving Fecal Sludge Management (US$27.5 million). The PDO level indicators for this component are “the
volume of sludge per month being brought to the Fecal Sludge Treatment Plant (FSTP) for treatment under the project”, and
a “service delivery arrangement for the Operation and Maintenance (O&M) of the FSTP is operational”. The target for the
volume of sludge is 5140 cubic meters per month. Currently, fecal sludge is emptied from households but there is no
appropriate FSTP to treat the sludge produced in Cotonou and Porto Novo. Regarding the second PDO indicator level, the
GoB committed to managing the FSTP under a PPP affermage contract. The signature of this contract is still pending, which in
turn is delaying the effective treatment of the fecal sludge. The World Bank Task Team closely monitors the PPP contract
signature with the GoB. An order of service of the affermage contract is expected by the end of the project closing date,
meaning that during the six-month extension period, the O&M of the FSTP will be operational to treat the targeted volume of
5140 cubic meters per month.

II. DESCRIPTION OF PROPOSED CHANGES

9. The Ministry of Finance issued a letter on June 23, 2022, requesting a restructuring of the project to extend its closing date
by six months up to June 30, 2023. The extension was requested to account for delays linked to reforms in the water and
sanitation sector through the PPP contract to manage the rural water service, which is a prerequisite to achieving the
PEPRAU PDO. After further discussions between the World Bank and the Client, it was agreed that an extension to June 30,
2023, was sufficient at this stage, given the excellent progress in achieving the water supply and sanitation infrastructures.
10. The construction works will be achieved by the end of the original closing date. The beneficiaries will have access to
drinking water through standpipes and household connections. The GoB long-term objective beyond the project is to
provide drinking water to rural populations mainly through household connections, rather than standpipes. This will greatly
reduce fetching water, especially carrying water from the standpipe to the house, a chore that is mainly done by women
and girls. Having water at home through a private connection also reduces bacterial contamination of the water that often
occurs when the potable water distributed at the standpipes is collected in unsuitable containers and stored for several
days at home before being consumed. To reflect and contribute to this long-term objective, the number of standpipes
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

planned in the project has been reduced and the number of household connections has been increased. The revised targets
are summarized in the table below:

Intermediate indicator: component 1 Original target Revised target

New household connections built under the Project (functioning) 4000 4740

New standpipes built under the Project (functioning) 400 329

The PDO as well as the remaining indicators of the Result Framework remain unchanged.
11. The proposed extension for the project closing date will provide more time to implement the following key activities that
were envisioned under, and are currently part of, the project, specifically: (i) provision of 4740 private household
connections in all the rural areas of Benin ad 329 standpipes (reaching 196,000 beneficiaries, PDO target for component 1);
(ii) collection and treatment of 5140 cubic meters of fecal sludge per month (PDO target for component 2)
12. The project team confirms that World Bank’s requirements under World Bank Directive for Investment Project Financing
(IPF) are met. The proposed extension will support the implementation of the remaining key project activities.

III. SUMMARY OF CHANGES

Changed Not Changed

Results Framework ✔
Loan Closing Date(s) ✔
Implementing Agency ✔
DDO Status ✔
Project's Development Objectives ✔
PBCs ✔
Components and Cost ✔
Cancellations Proposed ✔
Reallocation between Disbursement Categories ✔
Disbursements Arrangements ✔
Disbursement Estimates ✔
Overall Risk Rating ✔
Safeguard Policies Triggered ✔
EA category ✔
Legal Covenants ✔
Institutional Arrangements ✔
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

Financial Management ✔
Procurement ✔
Implementation Schedule ✔
Other Change(s) ✔
Economic and Financial Analysis ✔
Technical Analysis ✔
Social Analysis ✔
Environmental Analysis ✔

IV. DETAILED CHANGE(S)

OPS_DETAILEDCHANGES_LOANCLOSING_TABLE

LOAN CLOSING DATE(S)

Original Revised Proposed Proposed Deadline

Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal
Applications
IDA-59310 Effective 31-Dec-2022 30-Jun-2023 31-Oct-2023

.
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

.
Results framework
COUNTRY: Benin
Small Town Water Supply and Urban Septage Management Project

Project Development Objectives(s)

The proposed development objectives of the Project are to: (i) increase access to water supply in selected small towns and improve safe disposal of fecal
sludge in selected urban areas; (ii) strengthen service delivery arrangements of water supply and sanitation services in selected small towns and urban
areas; and (iii) in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to said Eligible Crisis or Emergency.

Project Development Objective Indicators by Objectives/ Outcomes

RESULT_FRAME_TBL_PDO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6
Increase access to water supply in selected rural areas and improve safe disposal of fecal sludge
People provided with
access to improved water 0.00 0.00 0.00 0.00 0.00 65,000.00 130,000.00 196,000.00
sources (Number)
Including rural
0.00 0.00 0.00 0.00 0.00 65,000.00 130,000.00 196,000.00
(Number)
Including female
0.00 0.00 0.00 0.00 0.00 32,000.00 64,000.00 98,000.00
(Number)
Volume of sludge per
month being brought to
the FSTP for treatment 0.00 0.00 0.00 0.00 0.00 1,927.00 3,500.00 5,140.00
under the Project (Cubic
Meter(m3))
Strengthen service delivery arrangements of water supply and sanitation services
A new institutional and
No No No No No Yes Yes Yes
contractual framework
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

RESULT_FRAME_TBL_PDO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6
for the urban water
sector is defined (Yes/No)
Service delivery
arrangement for the
Operation and
No No No No No Yes Yes Yes
Maintenance (O&M) of
the FSTP is operational
(Yes/No)

PDO Table SPACE

Intermediate Results Indicators by Components

RESULT_FRAME_TBL_IO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6
Component 1: Increase access to rural water supply and institutional strengthening
New household
connections built under
0.00 0.00 0.00 0.00 0.00 1,000.00 2,708.00 4,740.00
the Project (functioning)
(Number)
Action: This indicator has
been Revised
New standpipes built
under the Project 0.00 0.00 0.00 0.00 0.00 100.00 300.00 329.00
(functioning) (Number)
Action: This indicator has
been Revised
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

RESULT_FRAME_TBL_IO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6
Piped rural water supply
systems included into
information system to
control and monitor rural 150.00 150.00 0.00 350.00 580.00 580.00 580.00 580.00
water supply assets and
regional operators
(Number)
Inventory of water
consumer associations
No No No No No No Yes Yes
(ACEPs) is completed
(Yes/No)
Organizational and
institutional audit of the
DG-Eau and
No No No No No Yes Yes Yes
Deconcentrated Water
Services is approved
(Yes/No)
Component 2: Improving Fecal Sludge Management
An urban hygiene
promotion and sanitation
No No No No No Yes Yes Yes
strategy is approved
(Yes/No)
A unit responsible to
structure the fecal sludge
service chain and
regulate private fecal No No No No Yes Yes Yes Yes
sludge emptying firms is
operational within the
MCVDD (Yes/No)
 The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)

RESULT_FRAME_TBL_IO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6
Component 3: Project Management, Monitoring and Evaluation
Grievances registered
related to delivery of the
0.00 0.00 80.00 80.00
Project benefits that are
addressed (Percentage)

IO Table SPACE
The World Bank
Small Town Water Supply and Urban Septage Management Project (P156738)