Original: English

RIFT VALLEY WATER SUPPLY AND SANITATION PROJECT

KENYA

PROJECT COMPLETION REPORT

OWAS DEPARTMENT

MARCH 2012

AFRICAN DEVELOPMENT FUND

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COMPLETION REPORT of PROJECT A. PROJECT DATA AND KEY DATES I. BASIC INFORMATION

Project Number Project Name Country (ies)

P-KE-E00-002 RIFT VALLEY WATER SUPPLY AND SANITATION PROJECT

KENYA

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

Loan Number : 2100150007895 Grant Number : 2100155002669

WATER AND SANITATION DEPARTMENT

Category 1

Original Commitment Amount Amount Cancelled Amount Disbursed

Percent Disbursed

UA 18.06 MILLION UA 1,518,570.64 (Loan 716,611.29 and Grant 801,959.35)

16,541,429.36 91.6

Borrower

REPUBLIC OF KENYA

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

RIFT VALLEY WATER SERVICES BOARD P.O Box 2451 Nakuru Tel. +254 51-2213557 Fax. +254 51-2214915

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

The project will be financed by ADF loan UA 13.04 million ADF Grant UA 5.02 million GOK UA 3.01 million Beneficiary Communities. UA 0.14 million

II. KEY DATES

Project Concept Note Cleared by Ops. Com.

Appraisal Report Cleared Board Approval

Jun-04 Jul-04

Restructuring(s)

The project was extended twice for an overall duration of 18 months bringing the Project closing date to June 30th 2011

Original Date

MM/DD/YY Actual Date MM/DD/YY

Difference in months (auto-calculated)

EFFECTIVENESS 03/22/06 10/30/06 7.4

MID-TERM REVIEW 0.0

CLOSING 12/31/09

For ongoing projects enter date of 98% disb.

rate 18.2

06/30/11

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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 3

Achievement of Outcomes 3

Timeliness 3

OVERALL PROJECT OUTCOME 3

BANK PERFORMANCE

Design and Readiness 3

Supervision 3

OVERALL BANK PERFORMANCE 3

BORROWER PERFORMANCE

Design and Readiness 3

Implementation 2

OVERALL BORROWER PERFORMANCE 3

IV. RESPONSIBLE BANK STAFF

POSITIONS AT APPROVAL AT COMPLETION

Regional Director Gabriel NEGATU, Director EARC

Sector Director Kordje BEDOUMRA Sering B. JALLOW, Director OWAS

Sector Manager Matondo FUNDANI Moumni. MONIA (OIC)

Task Manager Serring JALLOW Osward CHANDA, Manager OWAS.2

PCR Team Leader John SIFUMA

PCR Team Members Christopher MUTASA

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. [250 words maximum. Any additional narrative about the project's origins and history, if needed, must be placed in Annex 6: Project Narrative]

Nakuru, Kenya's fourth largest city is a major industrial and tourist centre. However, water supply problems have impacted negatively on the livelihoods of the residents resulting in scaling down and relocation of some industries. The GoK thus requested the Bank Group to fund a feasibility study for a medium term project for water supply and sanitation and a pre-feasibility study for long term interventions. The mid-term project was approved in July 2004 and seeks to improve water supply and sanitation services in urban, peri urban and rural communities under the Rift Valley Water Services Board's jurisdiction. In line with the Water Act 2002 and the National Water Services Strategy, the project objectives were to be achieved through creation of effectively functioning water and sewerage service institutions, rehabilitation and augmentation of water supply and sanitation systems, and implementation of a rural water supply and sanitation programme. The project was accorded a high priority in the Bank’s 2002-2004 CSP for Kenya, which advocates support to GOK’s efforts to achieve the water and sanitation MDGs, through rehabilitation and necessary expansion of infrastructure.

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At project appraisal time, the Bank had financed water supply projects for the towns of Nairobi,Ndia,Thika,and Nanyuki including sewerage projects for Nyeri, Muranga, Kisii and Bungoma towns. The performance of these projects was satisfactory. Recently approved projects in the sector include (i) Water Services Boards Support Project (ii) Small Towns and Rural Water Supply and Sanitation Project projects, and (iii) The Nairobi Rivers Rehabilitation and Restoration Programme - Sewerage Improvement Project.

C. PROJECT OBJECTIVES AND LOGICAL FRAMEWORK

1. State the Project Development Objective(s) (as set out in the appraisal report)

The Objective of the project is to improve water supply and sanitation services in urban, peri-urban and rural communities within the service jurisdiction of the Rift-Valley Water Services Board

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

Component Details Contribution to Project Objectives: A. Institutional support to Rift Valley Water Services Board (RVWSB) and Nakuru Water and Sanitation Services Company (NAWASSCO) which was aimed at enhancing their capacity to carry out their respective mandates as commercial oriented service institutions, per the Water Act (2002). B. Water Supply and Sanitation Improvements for Nakuru: This was to enable 290,000 people in Nakuru town access improved water and sanitation services through; Development of Olobanita wellfield with capacity of 15,000m3/day; Rehabilitation of existing sources to restore capacity from 30,000 to 40000m3/day, rehabilitation of water distribution, sewerage and storm water drainage systems; reduction of unaccounted for water and water wastage; provision of 15000 consumer meters, a meter test bench and meter repair kits, tools and equipment for operation and maintenance; provision of 106 public water kiosks, communal and public latrines for low income peril-urban areas; conduct public awareness campaigns on water, health, gender and other cross-cutting issues C .Water and Sanitation Improvements in Small towns in Rift Valley; This was to enable 120,000 people in the 5 towns of Njoro, Molo, Elburgon, Naivasha and Gilgil access improved water and sanitation services through implementation of feasible management options and short- term investment needs. D. Develop and implement a rural water supply and sanitation programme based on the demand responsive approach to benefit a total of 100,000 people.

PROJECT OBJECTIVES DIMENSIONS

ASSESSMENT WORKING

SCORE

RELEVANT

a) Relevant to the country's development priorities

The project is in line with the water sector policy of the country and the National Water Services Strategy(2003 - 2006) which seeks to promote wider access to water and sanitation services (See appraisal report and PRSP which links diminishing water resources, and access to water as contributing to growing poverty levels). The project is also in line with the national priorities of the MDGs and the Vision 2030 Social and economic pillars.

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ACHIEVABLE

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

The objectives are largely achievable within the project inputs and time frame; however there were delays in the start up of the project activities due to delays in signing of lease agreement between RVWSB and NAWASSCO which took long to negotiate. Acquisition of land for the borehole sites also took time and the implementation of the rural water supply and sanitation program posed a challenge to the EA due to capacity constraints of the communities and supervision challenges as the projects were widely spared.

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CONSISTENT

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

Consistent with the Bank’s 2002-2004 Country Strategy Paper focusing on poverty alleviation and MDG's.

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d) Consistent with the Bank's corporate priorities

Support for infrastructure rehabilitation pursuant to achieving MDGs and expand medium term demand growth is in line with the Bank's Water supply and sanitation priorities. The project is also in line with the Bank Group’s Integrated Water Resources Management Policy (2000), which supports priority rehabilitation of existing infrastructure and encourages ultimate cost recovery while taking into account social equity.

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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

Component A. Institutional support for Rift Valley Water Services Board (RVWSB) and Nakuru Water and Sanitation Services Company (NAWASSCO) .

Activity 1. Development of institutional capacity for technical and financial management and reduction of UfW in Nakuru and 5 other towns

Output 1 . Effectively functioning water and sewerage service institutions in the project area

Improve water supply and sanitation services delivery

New and commercially oriented service delivery institutions in place in secondary towns in RWSB area by 2007 O&M costs recovery tariffs in place by end 2007.

Unaccounted for water reduced from the current level of 70% to 25% by 2007. RVWSB and NAWASSCO fully operational and strengthened by 2007.

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Provision of 15,000 consumer meteres, meter test bench and meter repair kits, tools and equipment for operation and maintenance

Improved customer database and regular billing by end 2005: Regular billing and collection efficiency increased from about 60% in 2005 to 90% by end 2007.

Component B. Water Supply and Sanitation Improvements for Nakuru.

Activity 1. Development of Olobanita Wellfield and bulk transfer main

Output 1 and 2. Water supply and sanitation systems rehabilitated and augmented.

Improved water supply and sanitation services

Olobanita wellfield developed with 8 boreholes and 21km transmission mains and providing 15,000m³ to Nakuru by end 2006; 24 hours water supply restored to 290,000 people in Nakuru Municipality by end of 2007. Total Water production in Nakuru increased from 30,000m3/day to 55,000m3/day by mid 2007 with capacity to supply 500,000 consumers in the midterm (by 2015)

Activity 2. Rehabilitation of existing water sources, sewerage and drainage systems

Kabatini and Baharini groundwater sources, Mereroni water supply and bulk transfer systems restored to provide 15,000m³, 5,800 m³ and 5,900m³ respectively as per

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their design capacities and NWCPSC providing 13,500 m³/day as bulk water by 2007. Sewer network extended by 15 km and sewerage flow increased to treatment plants by end 2007; Reduced sewerage network blockages by 2007

Activity 3. Rehabilitation of water distribution and sewer network and extension of services to low income areas

Output 3. Water and sanitation services extended to high density, low-income areas;

106 Public fountains extended to low income areas by 2007. 35 public and communal latrines (disaggregated by sex) constructed in low income areas by 2007

Activity 4. Development of Acquifer management system

Output 4. Acquifer mangement system in place

Activity 5. Raise awareness about water and health issues

Output 5. Better informed community on water and health issues

Communities educated in community health issues, hygiene and water related diseases by 2007; 50% reduction in incidences of water borne diseases

Component C. Water and Sanitation Improvements in other Rift Valley towns.

Activity 1. Conduct management options and investments study and implement the recommendations for Naivasha, Gilgil, Njoro, Elburgon, Molo, Narok, Mogotio, Eldama Ravine, Maji Mazuri, Kabarnet, Kapenguria and Lodwar

Output 1.Management options and short-term investment for small Rift Valley towns implemented.

Outcome 1. Improved water supply and sanitation services

Study of management Options and investment needs completed and approved by mid 2006;

Water schemes in Naivasha, Gilgil, Molo, Njoro and Elburgon rehabilitated and production restored from 7500m3/day to

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11,650m3/day and serving about 120,000 consumers by end 2007.

Component D. Rural water supply and sanitation programme

Activity 1. Develop and implement rural water supply and sanitation programme.

Output 1. Rural water supply

and sanitation programme

developed and implemented

Outcome 1. Improved water and sanitation services in the rural areas of the RVWSB

Rural water and Sanitation programme developed by mid 2006.

Rural Water Supply and sanitation services extended to 100,000 people by mid 2008

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

A casual and logical chain of how the activities and outputs will result in the development objective is presented.

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MEASURABLE

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

Log Frame objectives and outputs are measurable and quantifiable.

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THOROUGH c) States the risks and key assumptions

Most institutional and policy level assumptions and risks are incorporated including mitigation measures. The challenges of implementing the rural water supply component using the new CPC approach were overlooked as the component was delayed and some projects suffered from poor workmanship.

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D. OUTPUTS AND OUTCOMES I. ACHIEVEMENT OF OUTPUTS

MAJOR ACTIVITIES

Working Score

Share of Project Costs in percentage (as stated in

Appraisal Report)

Weighted Score (auto-calculated)

Expected Outputs Actual Outputs

Component A. Institutional Support to RVWSB and NAWASSCO: Effectively functioning water and sewerage service institutions in the project area. New and commercially oriented services delivery institutions in place in Nakuru by 2005 and in the secondary towns by 2007. Improved customer database, 15,000 consumer meters installed and meter test bench provided by 2007.

NAWASSCO and RVWSB fully operational both with organizational structure and corporate plan with strategic goals by 2010. RVWSB is now ISO 9001-2008 certified as a result of continually improving the quality of its management and services provision. Improved customer database in place and 15,800 consumer meters installed including meter test bench by 2009. RVWSB status report was completed and Strategic and Business Plans updated and finalized; sub-agency agreements with WSPs and CBOs were prepared and negotiated; Financial and accounting manuals reviewed and accepted; ICT strategy finalized; Dynamics GP completed and implemented; Cost of service study submitted in Nov. 2007; Tariff Adjustment model approved in August 2007; Report and valuation of RVWSB assets accepted. Support to NAWASCCO has improved technical performance. It is however noted that institutional support was limited to Nakuru town and there was no provision for this activity in the secondary towns.

3 9.3 0.279

Component B. Water supply and sanitation improvements for Nakuru. 1 Total water production in Nakuru increased from

Total water production in Nakuru has increased from less than 30,000 m3/day to 50,000m3/day. 8 No boreholes with 21 km transmission main developed at new olobanita

3 52.5 1.575

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30,000 m3/day to 55,000 m3/day by mid 2007 with capacity to supply 500,000 consumers in the medium term (by 2015). 2. Olobanita Wellfield developed with 8 boreholes, 21km of transmission main, and providing 15,000 m3/day to Nakuru by end 2006. 3. Kabatini and Baharini groundwater sources, Meroroni water supply and bulk transfer systems restored to provide 15,000m3, 5,800m3, and 5,900 m3 respectively, as per their design capacities, and NWCPC providing 13,500 m3/day as bulk water by 2007. 4. Sewer network extended by 15 km and sewage flow increased to treatment plants by end 2007. 5. Reduced sewage network blockages by 2007. 6. 24 hours water supply restored to 290,000 Nakuru municipality Residents with access to water supply by 2007. Component B. Water upply and sanitation services extended to high density low income areas: 106 public fountains extended to low income areas by 2007. 35 public and communal latrines constructed in low income areas by 2007.

wellfield and providing 15,000m3/day to Nakuru. Including rising main, pump and control panel. b) Kabatini and Baharini groundwater sources, Meroroni water supply and bulk transfer systems restored and providing a total of 26,700m3 as per their design capacities through 3 new boreholes and rehabilitation. Extension of sewer lines in urban areas by18km of DN 200 mm uPVC pipes including rehabilitation of existing sewer disposal system. 18 hours of water supply restored to 372,366 residents of Nakuru town. Public fountains and communal latrines were not constructed as the project was restructured to enable completion of water supply pipelines.

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Component C. Water Supply and Sanitation Improvements for other Rift Valley Towns: 5.1 Study of management options and investment needs completed and approved by mid 2006.5.2 Water schemes in Naivasha, Gilgil, Molo Njoro and Elburgon rehabilitated andproduction restored from 7,500 3/day to 11,650 m3/day and serving about 120,000 consumers by end 2007

Management Options study undertaken and proposed structure discussed with stakeholders: Water schemes in Naivasha, Gilgil, Molo, Njoro and Elburgon rehabilitated and production restored from 7,500 m3/day to 11,650 m3/day and serving about 140,000 consumers by mid 2011

3 22.1 0.663

Component D.Rural water supply and sanitation programme developed and implemented. 6.1 Rural water supply & sanitation programme developed by mid-2006. 6.2 RWSS extended to 100,000 people by mid 2008.

A rural water supply and sanitation program was implemented using the Community Project Cycle approach. The Rural Water Supply and Sanitation component benefited 34 projects through the construction of 23 dams and pans, 20 boreholes, 3 gravity schemes, 4 spring rotections, 3 water supply extensions, 3 sub surface dams and 2 rock catchment. These constructed facilities are serving a population in excess of 144,000 people. The sanitation component resulted in the construction of 724 toilets at business centres and schools

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

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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 autocalculated score 3

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.

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OUTCOMES Working

Score Expected Actual

Component A . Improve water supply and sanitation services delivery. New and commercially oriented service delivery institutions in place in Nakuru and the secondary Rift Valley towns by 2007. Improved customer database and regular billing by end 2005. Unaccounted-for-water reduced from the current level of 70% to 25% by 2007. Regular billing from 2005 and collection efficiency increased from about 60% in 2004 to 90% by end 2007. O&M cost recovery tariffs in place by end 2007

NAWASCO and RVWSB fully operational and strengthened; UfW reduced from 70% to 46%; Improved customer database (all customers business information has been organised and stored in a computerised system for ease of access and updating) and regular billing done on a monthly basis by 2010. Collection efficiency improved from 40% to 95%; Improved Financial Performance by NAWASSCO;O&M cost recovery tarrif in place by 2010.

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Component B. Improve water supply and sanitation services in urban and peri urban areas of Nakuru town. Water services improved from 6 to 24 hours and sanitation services improved in urban and peri- urban areas for 290,000 people in Nakuru Regular billing from 2005 and collection efficiency increased from about 60% in 2004 to 90% by end 2007. Unaccounted-for-water reduced from the current level of 70%to 25% by 2007. O&M Cost recovery tariffs in place by end 2007

Total water production in Nakuru increased from less than 30,000 to 50,000m3/day by mid 2010 serving 79% of the population i.e. 372,366 (of whom 187,000 are women) consumers in 2011; 18 hours water services availed to Nakuru residents. UfW reduced from 70% to 46%; Improved customer database and regular billing by 2010. Collection efficiency improved from 40% to 95%; Improved Financial Performance by NAWASSCO;O&M cost recovery tariff in place by 2010.

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Public awareness campaigns started late and had not been completed by the time of the PCR mission. The activity will be completed under GOK funding in collaboration with other funding agencies.

Component C. Improve water supply and sanitation services in urban and peri urban areas of secondary towns. Water services improved from 6 to 24 hours and sanitation services improved in urban and peri- urban areas for 120,000 people in 5 other towns within Rift Valley Water Service Board area by 2008

Water services improved for 140,000 people(of whom 75,000 are women) in the towns of Naivasha, Gilgil, Njoro, Molo and Elburgon

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Component D. Expand access to water and sanitation services for the rural communities within the service area of the Rift valley Water Services Board; Rural water supply and sanitation services provided for 100,000 people in rural areas by 2008.

Water and sanitation services expanded to over 100,000 people (50% men and 50% women) in the rural areas of the Rift Valley Water Services Board.

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

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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 autocalculated score 3

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

Improved access to water supply and sanitation facilities has contributed to a better quality of life for women and the girl child. Women and the girl child, who earlier had to walk long distances to fetch water for household use now have more time to devote to more meaningful endeavors such as earning income, schooling, household and personal hygiene. In addition, more women are involved in the management of the rural water supply and sanitation projects increasing the likelihood of better accountability and hence sustainability. The CPC process advocates for a minimum of 30% representation of women in the committees. A reduction of water borne diseases was reported at the Mukutani water project visited during the PCR mission. Projects employed rural workforce contributing to employment creation. RVWSB is now ISO 9001-2008 certified as a result of continually improving the quality of its management and services provision.

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.

Public health campaigns and awareness creation on health and sanitation in Nakuru town started late and was hence not fully incorporated into the project, coupled with the fact that the project did not directly finance the connections to the sewerage system, many households may decide to continue using their septic tank-soak away systems and pit latrines and hence the health gains in terms of reduced incidence of diseases may not be fully realized. Another risk to sustained achievement of outcomes is the rapidly growing population of Nakuru town. During the planning stage, the target population was set as 290,000 for Nakuru town. By 2009, (and due to the political instabilities of 2007/8), the population had already hit 473,288 and it set to grow even faster, hence the percentage of population served may decline unless new sources are developed immediately. Third, solid waste management continues to be a major challenge causing significant environmental pollution in the town and resulting in continued incidence of water borne diseases including malaria and typhoid fever. This must be addressed urgently. Fourthly, declining income base of the residents of the other towns in the projects, particularly Njoro, Elburgon, Molo means that a growing number may not be able to afford clean water from the installed and metered kiosks and may continue to use the highly contaminated sources (eg.River Njoro remains the main source of water for the poor in Njoro town). For the rural water supply and sanitation projects, the sustainability arrangements are not fully implemented for most projects and there is the risk of beneficiaries’ not meeting operation and maintenance costs if no follow up of these projects is made by RVWSB. Unaccounted for water remains very high at 46% and this needs to be addressed if the project is to make enough revenue and extend services to the low income areas. The project did not make resources available for the extension and expansion of the distribution network, which further contributed to the failure to reduce the UFW to the target levels. This is an area that new investment must be focused at. The new constitution in Kenya has provided a new legal framework whereby provision of water and sanitation services is through county governments with no mechanism of ring fencing revenues generated from water services. This may deprive the sector the much needed resources for offering improved services and expanding coverage.

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.

[200 words maximum. Any additional narrative about implementation should be included at Annex 6: Project Narrative]

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Extensive consultations on the project were held between the Bank and the Government between 1993 and 2004. The project was preceded by a feasibility study completed in 2000 and the appraisal conducted in 2004 only when key institutional reforms in the water sector were being implemented in the country and an environmental impact study undertaken. During the Appraisal Mission consultations were held with Development Partners active in the sector (such as World Bank, GTZ,AFD,SIDA,JICA and DANIDA). The need to have a service provision agreement between NAWASSCO and RVWSB and an on-lending agreement between MoF and RVWSB were part of the loan conditions including the appointment of key staff to RVWSB. Having in place a programme for regular tariff adjustment were also part of the loan conditions. As a key lesson from previous interventions, the project also focused on institutional capacity development and interventions in rural areas, in addition to the physical urban infrastructure development. The water sector reforms resulted in a new community-based RWSS approach to service provision and the project grant component provided an opportunity to test the new mechanism (CPC) for improved and sustainable service provision by using a need-based bottom up approach. The CPC approach involves extensive consultations and involvement of beneficiary communities. The project (by coinciding with the implementation of the new water act 2002) faced challenges of capacity constraints in the new institutions and this justified the TA support.

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.

The GOK commitment in implementing the water sector reforms was evident with donors supporting various projects in the sector. GoK commitment and contributions envisaged was as expected.

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RISK ASSESSMENT AND MITIGATION

b) Project design includes adequate risk analysis.

The project identified the following risks (i) effectiveness of new institutions (ii) water tariffs (iii) connectivity to sewer network. However, the risk of delayed implementation and availability of quality contractors for the rural water and sanitation component was underestimated. The assumption of achieving 25% reduction in unaccounted for water was over ambitious as the distribution network and metering problems were not fully addressed in the project.

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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.

Procurement of all goods, works and services were in accordance with Banks rules and procedures. Despite initial challenges, the Executing Agency was able to implement the project in line with these procedures.

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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.

The Executing agency was clearly identified as RVWSB. Capacity building of the EA was a key component of the project.

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PROCUREMENT READINESS

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

The supervising consultants provided support in preparing the detailed specification and design documents. Bank procurement guidelines were provided and in due time the implementing agency was conversant with the bank procedures.

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MONITORING READINESS

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

The Appraisal Report had developed the logical frame work with monitoring indicators. Supervision schedules were specified but the MTR was not undertaken as planned.

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BASELINE DATA

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

Baseline data collected during appraisal was adequate for assessment of project achievements. The performance of NAWASSCO was assessed using monitoring guidelines in the service provision agreement with RVWSB and as approved by the regulator during the course of project implementation. Information from the regulator (from the Impact reports) was used in assessing the performance of both RVWSB and NAWASSCO.

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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. [200 words maximum. [Any additional narrative about implementation should be included at Annex 6: Project Narrative.]

Start-up activities were delayed due to delayed meeting of loan conditions and capacity limitations in the Executing Agency who did not fully understand Bank rules and procedures. Consequently, the project closing date was extended twice for a cumulative 18 months. However, through TA support and engagement of consultants, implementation of the urban water supply and sanitation component improved significantly with deadlines and schedules for most contracts being met. Supervision and consultancy services were to the required standards and quality of construction was good. The only implementation contract that was delayed was drilling whereby difficult geological conditions were encountered.

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Delays in obtaining tax exemptions and processing disbursements negatively affected the project. Delays in disbursements resulted in penalties and interest payments. The rural water supply and sanitation component was delayed as implementation modalities for the CPC took time to be developed. Despite being designed to involve and empower communities, utilisation of funds in the special account posed challenges to the EA. The performance of civil works contractors for the rural component varied by project with low quality of construction in some projects due to lapses in supervision. The limited time allocated for supervision in the CPC model and the quality of supervision need urgent review if the CPC model is to be effective. In most of the rural water supply and sanitation projects the implementation of the planned operation and maintenance arrangements had not commenced at project closure and these need follow up by the RVWSB. The public health hygiene and awareness campaign was started late in Nakuru town and at the time of project closure was not yet concluded. Supervision by the Bank focused on technical aspects and procurement issues. Aide-memoires and follow-up letters sent to the Government pointed to the delayed implementation of the project. The Country Field Office played an increasing role in supervising the project including addressing procurement and financial management issues. Supervision missions included officers from the line Ministries of Finance, and Water and irrigation. Bank showed flexibility by approving successive extensions of the closing date that were necessary to complete the rural water supply and sanitation works. However, resources from exchange rate gains which could have been used to address the problems of UFW were not fully utilised in the project. It is encouraging to note that NAWASSCO is in the process of addressing the problem of the high UFW using internally generated resources. Key environmental monitoring indicators such as quality of drinking water, quality of raw and treated sewage are being monitored by NAWASSCO. However, although technical assistance was provided for installation of an aquifer management system, this was not realized due to various reasons, the main one being that the response to expression of interest was low and lack of adequate experience in the operations of such a system. The water production and water levels of the boreholes are being monitored on a dialy basis to ensure that the extraction does not exceed the safe yield.

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 urban water supply and sanitation component attracted competent private sector consultants and contractors and their performance was satisfactory. However, the capacity of the local private sector contractors was very limited for the rural water supply and sanitation component. The small size of the projects and remoteness did not attract competent civil works contractors. Participation of NGO's in the implementation of the project was limited though the Catholic Diocese of Nakuru participated as consultants in some of the rural water supply and sanitation projects.

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

The Banks intervention took cognisance of other donor interventions in the country at the time of appraisal with extensive consultations being made with Development Partners in the sector. The interventions were planned to support the water sector reforms at the Rift valley water services Board. The rural water supply and sanitation program adopted the CPC approach as developed by the Water Services Trust Fund in collaboration with Development Partners (SIDA and DANIDA). In line with the donor partnership principles in the sector, there was no PIU and the RVWSB personnel were in charge of implementing the project.

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.

16

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)

The project was extended twice to allow for the completion of the Rural Water Supply and Sanitation component.

3

18.2

BANK PERFORMANCE

b) Bank complied with:

Environmental Safeguards An Environmental impact assessment was undertaken and the environmental and the social management plan implemented.

3

Fiduciary Requirements

The appraisal documents details the project accounting and audit requirements. The Bank reviewed the annual audit reports submitted by the EA and formally communicated its feedback.

3

Project Covenants Loan covenants were fulfilled and the Bank fulfilled its obligations under the financing agreements.

3

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

Supervision by the Bank focused on technical aspects and procurement issues. Aide-memoires and follow-up letters sent to the Government made recommendations to improve implementation of the project.

3

d) Bank provided quality management oversight

Supervision missions reviewed implementation of previous mission's recommendations and status of each project activity by component. The Implementing Agency noted that there were delays from Bank side in reviewing and approving procurement documents and disbursements. The delays in disbursements resulted in penalties borne by the borrower.

3

BORROWER PERFORMANCE

e) Borrower complied with:

Environmental Safeguards

EIA Certification sought for all the project works. However, Aquifer management system for the olobanita well field was not installed. However, NAWASSCO is currently monitoring the boreholes depth and production on a daily basis manually.

3

Fiduciary Requirements Audit of the project was undertaken annually. 3

Project Covenants Acquisition of land took long including the resolving of liabilities of government institutions to NAWASSCO

2

f) Borrower was responsive to Bank supervision findings and recommendations

Supervision missions reviewed implementation of previous mission's recommendations. Though delayed, the project implemented Bank findings and recommendations to a large extent.

2

17

g) Borrower collected and used monitoring information for decision making

Collection of monitoring information was not to the required standards

2

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 pcr@afdb.org 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)

06/30/11 -1357.5 4

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). [100 words maximum]

The PCR was prepared by a Water and Sanitation officer in KEFO and a financial analyst from Head Office. The mission was conducted jointly with the borrower and the implementing agency (RVWSB). Initial meetings were held with the ResRep and CPO in KEFO. During the field visits, meetings and discussions were held with the board of directors of NAIVASSCO and NAWASSCO. The mission also visited a rural water supply and sanitation project in Baringo (Mukutani water users association) and interviewed the beneficiaries, local leaders and project officials, where women constituted 30% and held key posts such as treasurer and secretary. Comments on the PCR were received from procurement, financial management specialists and peer reviewers.

H. LESSONS LEARNED Summarize key lessons for the Bank and the Borrower suggested by the project’s outcomes [250 words maximum. Any additional narrative about lessons learned, if needed, must be placed in Annex 6: Project Narrative]

Delays in disbursements should be minimised as they affect project implementation and are costly to the client. Delayed processing of disbursement requests from contractors resulted in significant amounts of interest penalties being paid by the borrower. This is an area requiring improvement to avoid loss of limited resources towards payment of penalties. The provision of monthly statements from the Bank will help the borrower to track direct payments made by the Bank and hence follow up on outstanding payments; Agreements and Covenants between institutions/agencies involved in project implementation should be designed and concluded before project approval to increase project readiness. Delays in effectiveness of the project were due to loan conditions which required setting up of new institutions under the wider sector reforms, which took long to implement. This would have been avoided if at the time the project was approved, these core institutional reforms would have been undertaken.

18

Mid Term review is a good opportunity to fully restructure a project/programme. The project did not conduct a Mid Term Review and hence the opportunity to make adjustments to the project and make full use of all available resources in good time was missed. The cancelled resources were as a result of exchange rate gains and these could have been used to provide more meters and improve the distribution network. The assumption of achieving 25% reduction in unaccounted for water was too ambitious as the distribution network and metering problems were not fully addressed in the project. The operator was unable to fully investigate the areas of losses and also curtail losses associated with the old distribution network. Project design should carefully evaluate and accommodate the complexities of community involvement and participation in the implementation of rural water supply and sanitation programs. The implementation of the rural component of the project adopted the CPC approach, which takes long to implement. There is therefore need for a review of the CPC model and strengthen it for future rural interventions. Financial resources should not be spread too thinly. The project targeted one Water Services Board (WSB) enabling better focus by the Bank and avoided spreading the limited resources too thinly. This combined with institutional capacity building increased the likelihood of the project achieving the desired impacts. However, the capacity building component should have been extended (not only to NAWSSCO) to the Water Service Providers in the other towns of Naivasha, Gilgil, Njoro, Elburgon and Molo. All project components are important and should be started on time. There were delays in implementing the public health campaigns and this should have formed part of the initial project activities to create awareness among the Nakuru town beneficiaries on the significance of safe drinking water, appropriate use and maintenance of sewerage system, on-premise latrines, roles of stakeholders and need for women's representation in decision making. It is recommended that this activity continues with funding from the Government and involvement of all stakeholders especially the local authorities.

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 3

Achievement of outcomes 3

Timeliness 3

OVERALL PROJECT OUTCOME SCORE 3

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.

4

Project design includes adequate risk analysis. 3

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

3

19

government and/or other partners.

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. 3

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 4

SUPERVISION SUB-SCORE 3

OVERALL BANK PERFORMANCE SCORE 3

BORROWER PERFORMANCE

Design and Readiness

Responsibilities for project implementation are clearly defined. 4

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 2

PROJECT DESIGN AND READINESS SCORE 3

Implementation

Borrower complied with:

Environmental Safeguards 3

Fiduciary Requirements 3

Project Covenants 2

Borrower was responsive to Bank supervision findings and recommendations.

2

Borrower collected and used of monitoring information for decision-making. 2

IMPLEMENTATION SUB-SCORE 2

OVERALL BORROWER PERFORMANCE SCORE 3

J. PROCESSING

STEP SIGNATURE AND COMMENTS DATE

Sector Manager Clearance 12-Dec-11

Regional Director Clearance 10-Jan-12

20

Sector Director Approval 20-Dec-11

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

N.B.: Les formules sont arrondies à la décimale supérieure ou inférieure. Pour les calculs, seuls des nombres

entiers sont retenus.

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 apprailsal 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.

PROJECT COSTS AND FINANCING ANNEX1

Table 1(a): Project cost estimates by component

Summary cost estimates by component

Kes (Million) UA (Million)

Component Forex Local Total Forex Local Total

A Technical Assistance to RVWSB and NAWASSCO

132.8 49.22 182.10 1.26 0.47 1.72

B Water Supply and Sanitation Improvements for Nakuru

497.64 530.39 1,028.03 4.71 5.02 9.73

C Water Supply and Sanitation Improvements for other RV

Towns

287.51 145.66 433.17 2.72 1.38 4.10

D Rural Water Supply and Sanitation

197.66 118.00 315.65 1.87 1.12 2.99

Total Base Costs 1,115.69 843.25 1,958.95 10.56 7.98 18.55

Physical Contingency (10%) 104.06 81.11 185.17 0.99 0.77 1.75

Price Contingency(3%pa and 7% pa on foreign and local

costs)

34.51 61.73 96.23 0.33 0.58 0.91

Total Costs 1,254.26 986.09 2,240.35 11.88 9.34 21.21

UA 1 = KES 105.606

Table 1(b): Sources of financing

SOURCE FC LC Total

ADF Loan 7.81 5.23 13.04

ADF Grant 4.06 0.96 5.02

GOK 3.01 3.01

Communities 0.14 0.14

Total 11.88 9.34 21.21

BANK INPUTS ANNEX 2

1. Bank Staff inputs Team Members Name Designation

During preparation/appraisal

Sering Jallow Principal Sanitary Engineer, ONIN.2

Lamin Barrow, Senior Financial Analyst, ONIN.2

Daniel Lekoetje, Senior Public Utilities Economist, ONIN.2

Idrissa Samba, Senior Environmentalist

Senior Environmentalist, ONIN

During supervision

Mr. E.H.J. Schroten Principal Sanitary Engineer, OWAS.2

Sering Jallow Manager, OWAS.2

Mr. Patrick Karani Principal Environmentalist, OWAS.2

Ms. A. Hamza Gender Specialist, OWAS.2

Mr. Boniface Aleobua

Principal Water and Sanitation Engineer, OWAS.2, Task Manager

Tom Opiyo Infrastructure Specialist, KEFO

John Sifuma Water and Sanitation Specialist, KEFO

Frank Mvula Regional Chief Procurement Coordinator

Patrick Owuori Procurement Assistant, KEFO

David Muthusi Financial Management Specialist

Ruth Charo Social Development Specialist, KEFO

James Opio Omoding Country Programs Officer, KEFO

Catherine Mwangi Disbursement Assistant, KEFO

Lakshmi Moola Disbursement Officer

Osward Chanda Chief Water and Sanitation Engineer, OWAS.2

2.2 PROJECT PERFORMANCE RATING

INDICATORS

RATINGS

Precedings report This report

06.05.2011 04.04.2009 21.09.2009 15.02.2010 26.09.2010

A. PROJECT IMPLEMENTATION

Compliance with loan conditions precedent to entry into force 2 2 2 2 2

Compliance with General Conditions 2 2 2 2 2

B. PROCUREMENT PERFORMANCE

Procuremet of Consultancy Services 3 3 3 3 3

Procurement of Goods and Works 3 3 3 3 3

C. FINANCIAL PERFORMANCE

Availability of Foreign Exchange 3 3 3 3 3

Availability of Local Currency 3 3 3 2 3

Disbursement Flows 2 2 2 2 2

Cost Management 2 2 2 2 3

Performance of Co-Financiers 0

D. ACTIVITIES AND WORKS

Adherence to implementation schedule 2 2 2 2 2

Performance of Consultants or Technical Assistance 2 2 2 2 3

Performance of Contractors 2 2 2 2 3

Performance of Project Management 3 2 2 2 3

E. IMPACT ON DEVELOPMENT

Likelihood of achieving development Objectives 3 3 3 3 3

Likelihood that benefits will be realized and sustained beyo 3 3 3 3 3

Likely contribution of the project towards an increase in 3 3 3 3 3

Current Rate of Return 3 3 3 3 3

F. OVERALL PROJECT ASSESMENT

Current Supervision Average

2.47

2.41

2.28

2.35

2.65

Current Trend over time

2.43

RATINGS: 3 = Highly Satisfactory, 2 = Satisfactory, 1 = Unsatisfactory, 0 = Highly Unsatisfactory, ‘ ‘ = Non

applicable

2.3 LIST OF MISSIONS

TYPE OF MISSION START DATE END DATE

1 Field Mission 14.07.2005

21.07.2005

2 Field Mission 28.10.2006 11.11.2006

3 Field Mission 28.04.2007

04.05.2007

4 Field Mission 30.10.2007

12.11.2007

5 Field Mission 19.07.2008

26.07.2008

6 Field Mission 22.11.2008

08.12.2008

7 Field Mission 04.04.2009

24.04.2009

8 Field Mission 21.09.2009

26.09.2009

9 Field Mission 15.02.2010

26.02.2010

10 Field Mission 26.09.2010

12.10.2010

11 Field Mission 06.05.2011

16.05.2011

12 PCR Mission 19.09.2011 30.09.2011

EIRR ANALYSIS ANNEX 3 RIFT VALLEY WATER SUPPLY & SANITATION PROJECT ASSUMPTIONS USED IN THE ECONOMIC EVALUATION

Currency: The analysis has been done in United States of America Dollars (USD).

Project's horizon: The EIRR evaluation has been done for a 15 year horizon considering that the interventions were meant to address the immediate short term needs of the target towns. Additional interventions, mainly in the reticulation systems will need to be undertaken to spread the coverage to other un-serviced areas. Population: The estimated beneficiaries are 761,000 residents of Nakuru, Naivasha, Molo, Njoro, Elburgon, Gilgil, including 144,000 for the RWSS interventions. The number of beneficiaries has been assumed constant due to the fact that the interventions were short term in nature and did not expand the distribution network, especially for the urban centres. They merely increased water availability from 6 hours per day to 18 hours per day, in the case of Nakuru. Water production: Water production in the 5 towns is 34,680m3/day made up of Nakuru – 30,000, Molo – 840, Naivasha – 2,560, Njoro – 880 and Elburgon – 400m3/day.

Unaccounted for water: UFW is 46% in Nakuru and has been applied across the board.

Average tariff: The average approved water tariff in Nakuru is US$1/m3. Taking into account the other small towns and the rural component, the average tariff for the project is discounted by 15% to US$ 0.85/m3. Costs Investment Costs: These are based on actual disbursements converted to USD based on the exchange rate at PCR date.

Operation and Maintenance Costs: These are assumed at 6% of the investment costs. Benefits and Savings The assumptions utilise the findings of the WHO Evaluation of Costs and Benefits of Water and Sanitation improvements assessment at the Global Level. These findings indicate the benefits arising from reduced costs of health interventions arising from improved water and sanitation improvements. For the treatment of diarrhoea, health service unit costs are taken from WHO regional unit cost databases. The following broad parameters constitute the variables for the assessment; (i) time savings related to water collection or accessing sanitary facilities; (ii) patient health treatment and travel costs saved; and (iii) value of less adults, infants and students falling sick with diarrhoea. Time savings due to reduced diarrhoea sickness: These are the estimated savings of time due to availability of water and sanitation facilities in convenient places.

Value of (adult) productive gained due to less diarrhoea illness: This value estimates the value gained from availability of the productive members of the society from reduced illnesses arising from improved facilities. Patient treatment and travel costs saved: This estimates the savings arising from reduced medical treatments arising from reduced infections from water borne illnesses. Outcome

Based on the above assumptions, the EIRR is estimated at 21.35%, indicating that there are significant positive economic gains coming out of the interventions. Given below is the summary calculation of the EIRR.

KENYA: RIFT VALLEY WATSAN PCR EIRR ASSESSMENT Beneficiar

ies Capital

Investment

O&M Total Cost

Average revenue

from sales of water

Convinience time saving value

Per capita annual

time saving

s

Value of (adult)

productive gained due to less

diarrheal illness

per capita value of

productive days

gained of 0.19 US$

Per capita value of averted

deaths on 50% of popn

Predicted future

earnings from

averted death due

to improved WATSAN

Patient treatmen

t and travel costs saved

Per capita patient

treatment cost saved @US$ 0.16 @ 15% of

popn

Per capita health

treatment cost saved @ US$2.67

Health treatment costs saved

Healthy baby & School

attendance (value) gained due to less

diarrheal illness

school attendance gained due to less

diarrhoeal illness

@US$24.39 @

65% of popn

Total Benefits

Net Benefits

Year

US$'000 US$'000 US$'000 US$'000 US$'000

US$'000

US$'000 US$'000

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000

2011 660,366 30,043 1,803 31,846 5,813 94 0.41 130 0.198

1.5

984 42

0.06

1.20 793 10

0.02 7,867 (23,978)

2012 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2013 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2014 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2015 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2016 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2017 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2018 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2019 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2020 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2021 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2022 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2023 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2024 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

2025 660,366

1,803 1,803 5,813 94

130

984 42

793 10

7,867 6,065

NPV @ 10%

18,817

EIRR

24.06%

PROCUREMENT PLANS FOR CONSULTANCY SERVICES, CIVIL WORKS AND GOODS ANNEX 4 AND RURAL WATER SUPPLY PROGRAMME

Procurement Plan for Consultancy Services Description Cost in Ksh Selection

method Submit to ADF LOI, TOR, EOI

No Objection on EOI

Date of EOI Advert

Shortlist to ADB

No objection on Shortlist and LOI

Submission of Proposals by Consultants

Technical Evaluation to ADF

No Objection on Technical Evaluation

Submit Combined Evaluation to ADF

No Objection to Combined Evaluation

Draft negotiated contract to ADF

No Objection to draft contract

Contract signature

Completion of services

Supervision of Nakuru Works

Planned 61,820,000

Shotlist 30-Aug-04 30-Sep-04 30-Oct-04 15-Dec-04 15-Feb-05 30-Mar-05 15-Apr-05 30-Apr-05 30-May-05 15-Jun-05 15-Aug-05 30-Aug-05 30-Oct-05 15-Dec-08

Actual 63,290,000

Shotlist 30-Jan-05 2-Jun-05 3-Jun-05 7-Sep-05 28-Jan-06 17-Feb-06 6-Mar-06 14-Apr-06 6-Apr-06 6-May-06 26-Jun-06 30-Mar-10

Institutional Support to RVWSB

Planned 68,950,000

Shotlist 30-Aug-04 30-Sep-04 30-Oct-04 15-Dec-04 15-Feb-05 30-Mar-05 15-Apr-05 30-Apr-05 30-May-05 15-Jun-05 17-Nov-06 30-Nov-06 8-Dec-06 8-Dec-08

Actual 30,242,765

Shotlist 14-Dec-05 16-May-05 28-Sep-05 8-Dec-05 2-Feb-06 30-Jan-06 21-Jul-06 6-Sep-06 16-Oct-06 15-Dec-06 22-Dec-06 28-Dec-06 8-Dec-08

Institutional Support to NAWASSCO

Planned 63,140,000

Shotlist 30-Sep-04 15-Oct-04 30-Oct-04 30-Nov-04 30-Dec-04 28-Feb-05 17-Nov-06 1-Dec-06 16-Dec-06 30-Dec-06 6-Jan-07 15-Jan-07 25-Jan-07 25-Jan-09

Actual 38,312,965

Shotlist 5-Jun-06 21-Oct-05 16-Nov-05 13-Jun-06 21-Jul-06 18-Sep-06 17-Nov-06 11-Dec-06 28-Dec-06 22-Jan-07 20-Feb-07 26-Feb-07 3-Apr-07 3-Aug-09

Management Options Study for 13 Towns

Planned 55,000,000

Shotlist 30-Sep-04 15-Oct-04 15-Nov-04 17-Nov-06 1-Dec-06 18-Jan-07 9-Feb-09 23-Feb-07 9-Mar-07 23-Mar-07 30-Mar-07 6-Apr-07 27-Apr-07 27-Oct-07

Actual 28,250,000

Shotlist 23-Aug-05 15-Jun-06 16-Aug-06 18-Nov-06 28-Nov-06 23-Jan-07 12-Mar-07 5-May-07 29-May-07 7-Jun-07 18-Jun-07 21-Jun-07 21-Feb-08

Supervision of 5 Towns WSS Project

Planned 24,740,000

Shotlist 15-Jan-08 30-Jan-08 28-Feb-08 15-Mar-08 30-Mar-08 15-Apr-08 30-Apr-08 15-May-08 30-May-08 15-Jun-08 30-Sep-08

Actual Shotlist 16-Feb-08 26-Feb-08 22-Apr-08 06-May-08 20-May-08 25-Jun-08 18-Jul-08 29-Jul-08 31-Jul_2008 04-Aug-08 30-Nov-10

Rural Water Supply Programme

Planned 40,000,000

Shotlist 30-Aug-04 30-Sep-04 15-Oct-04 15-Dec-04 15-Jan-05 5-Jan-07 19-Jan-07 2-Feb-07 16-Feb-07 2-Mar-07 16-Mar-07 30-Mar-07 13-Mar-07 13-Sep-07

Actual Shotlist 16-Apr-06 13-Sep-06 23-Jan-07 26-Mar-07 Cancelled. Replaced with TA for Implementation of Rural Water Supply Programme.

Audit Services

Planned Shotlist 15-Dec-06 5-Jan-06 19-Jan-06 2-Feb-06 16-Feb-06 5-Apr-07 19-Apr-07 23-Apr-07 26-Apr-07 10-May-07 24-May-07 7-Jun-07 21-Jun-07 31-Dec-09

Actual 1,775,215

Shotlist 10-Sep-07 NA NA 8-Oct-07 17-Oct-07 28-Dec-07 10-Jan-08 14-Jan-08 18-Jan-08 28-Jan-08 7-Feb-08 26-Feb-08 16-Apr-08 31-Dec-11

Procurement Plan for Goods

Lot No.

Description Estimated cost in Ksh

Selection method

Submit to ADF Bid docs.

No Objection on Bid docs.

Date EOI Advert

List of suppliers to ADF

No objection on list of Suppliers

Submission of quotations by Suppliers

Quotation analysis report to ADF

No Objection on quotation analysis

Draft Contract to ADF

No Objection to draft contract

Contract signature

Delivery of supplies

1 Vehicles

Planned NS 5-Apr-05 5-May-05 15-Aug-05 17-Nov-06 1-Dec-06 16-Jan-07 16-Feb-

07 2-Mar-07 15-Mar-07 30-Mar-07 15-Apr-07 6-May-07

Actual

6,810,000 NS 23-Oct-06 17-Nov-06 27-Nov-06 15-Feb-07

12-Mar-07

19-Mar-07 23-Apr-07 25-Apr-07 17-May-07 3-Oct-07

2

Bulk Consumer Meters, Domestic Meters, Constant Flow Valves, Meter Testing Equipment & Fittings

Planned IS 5-Apr-05 5-May-05 19-Oct-06 15-Dec-06 29-Dec-06 12-Feb-07 9-Mar-07 23-Mar-06 15-Apr-07 30-Apr-07 15-May-07 4-May-07

Actual

87,293,168 IS 23-Oct-06 28-Dec-06 26-Jan-07 29-Mar-07 2-May-07 11-Jun-07 22-Jun-07 3-Jul-07 13-Jul-07 25-Mar-08

3 Leak Detection Equipment & Accessories

Planned IS 5-Apr-05 5-May-05 19-Oct-06 15-Dec-06 29-Dec-06 12-Feb-07 9-Mar-07 23-Mar-07 23-Mar-07 23-Mar-07 6-Apr-07 4-Oct-07

Actual 9,012,250 23-Oct-06 28-Dec-06 26-Jan-07 25-May-07 6-Aug-07 4-Sep-07 24-Sep-07 3-Oct-07 16-Oct-07 16-Jun-08

4(a) Office Equipment

Planned NS 5-Apr-05 5-May-05 19-Oct-06 15-Dec-06 29-Dec-06 12-Feb-07 9-Mar-07 23-Mar-07 23-Mar-07 23-Mar-07 6-Apr-07 4-Oct-07

Actual 14,246,618 23-Oct-06 28-Dec-06 26-Jan-07 20-Apr-07 6-Aug-07 4-Sep-07 24-Sep-07 3-Oct-07 9-Oct-07 29-Apr-08

4(b) Aquifer Management Equipment & Software

Planned

12,610,000 IS 5-Apr-05 5-May-05 19-Oct-06 15-Dec-06 29-Dec-06 12-Feb-07 9-Mar-07 23-Mar-07 23-Mar-07 23-Mar-07 6-Apr-07 4-Oct-07

Actual 23-Oct-06 28-Dec-06 6-Nov-09

4(c) Billing Software

Planned IS 5-Apr-05 5-May-05 19-Oct-06 15-Dec-06 29-Dec-06 12-Feb-07 9-Mar-07 23-Mar-07 23-Mar-07 23-Mar-07 6-Apr-07 4-Oct-07

Actual 3,524,656.

25 IS 23-Oct-06 6-Jan-09 23-Oct-09 13-Mar-09 15-Jun-09

5 Operation & Maintenance Tools & Laboratory Equipment

Planned IS 5-Apr-05 5-May-05 19-Oct-06 15-Dec-06 29-Dec-06 12-Feb-07 9-Mar-07 23-Mar-07 23-Mar-07 23-Mar-07 6-Apr-07 4-Oct-07

Actual 6946238.2

6 23-Oct-06 28-Dec-06 26-Jan-07 25-Jan-08 18-Jun-08 5-Oct-08 15-Nov-08 19-Mar-09

Procurement Plan for Civil Works

Description Estimated cost in Ksh

Selection method

Submit to ADF Bid Docs.

No Objection to Bid Docs.

Date SPN Advert

Submission of Bids by Contractors

Bid Evaluation Report to ADF

No Objection to Evaluation Report

Draft contract to ADF

No Objection to draft contract

Contract signature

Completion of services

Nakuru Works

Augmentation of Bulk Water Supply from Olobanita Wellfield - Contract No. RVWSB/WC/01/1

Planned 242,030,000 ICB 5-Apr-05 5-May-06 16-Nov-06 16-Jan-07 16-Feb-07 2-Mar-07 30-Mar-07 15-Apr-07 30-Apr-07 16-Dec-08

Actual 504,334,000 ICB 5-Apr-05 5-Jun-06 16-Nov-06 16-Jan-07 15-Feb-07 13-Mar-07 23-Apr-07 25-Apr-07 25-Apr-07 30-Sep-09

Development of Olobanita Wellfield, Additional Boreholes at Kabatini & Baharini Wellfields - Contract No. RVWSB/WC/01/2

Planned 194,880,000 ICB 5-Apr-05 5-May-06 16-Nov-06 16-Jan-07 16-Feb-07 2-Mar-07 30-Mar-07 15-Apr-07 30-Apr-07 16-Jun-07

Actual 127,373,510

ICB 5-Apr-05 5-Jun-06 16-Nov-06 16-Jan-07 15-Feb-07 13-Mar-07 23-Apr-07 25-Apr-07 25-Apr-07 30-Sep-09

Extensions and Improvements to Sanitation - Contract No. RVWSB/WC/01/3

Planned 227,430,000 NCB 5-Apr-05 5-May-06 16-Feb-07 2-Apr-07 30-Apr-07 14-May-07 15-Jun-07 30-Jun-07 30-Jul-07 28-Aug-08

Actual NCB 9-May-08 20-May-08 16-Jun-08 18-Aug-08 7-Oct-09 25-Feb-09 30-Mar-10

Rehabilitation of Bulk Transmission Mains from Mereroni, Kabatini and Baharini and Installation of Meters - Contract No. RVWSB/WC/01/4

Planned 71,650,000 ICB 5-Apr-05 5-May-06 30-Dec-06 16-Feb-07 16-Mar-07 30-Mar-07 15-Apr-07 30-Apr-07 15-May-07 12-Apr-08 Actual 164,992,460 ICB 5-Apr-05 5-Jun-06 16-Dec-06 16-Feb-07 13-Mar-07 29-Mar-07 24-Apr-07 25-Apr-07 25-Apr-07 31-Jul-09

Construction of Administration Building, Workshop, Public Toilets, Staff Houses & Ancilliary Works, Contract No. RVWSB/WC/01/5

Planned 168,950,000 NCB 5-Apr-05 5-May-06 30-Jan-07 16-Mar-07 13-Apr-07 30-May-07 30-Jun-07 15-Jul-07 15-Aug-07 11-Mar-08 Actual This Contract was not done due to budget. A workshop was rehabilitated for RVWSB offices and NAWASSCO stores as an

addendum for Contract 1

Other Works

Naivasha and Gilgil Towns Water Improvements

Planned 353,430,000 ICB 13-Oct-07 30-Oct-07 16-Nov-07 2-Jan-08 30-Jan-08 14-Feb-08 15-Mar-08 30-Mar-08 30-Apr-08 28-Feb-09

Actual ICB 2-May-08 16-May-08 16-Jun-08 18-Aug-08 9-Dec-08 23-Dec-11

Molo, Elburgon and Njoro Towns Water Improvements

Planned ICB 13-Oct-07 30-Oct-07 16-Nov-07 2-Jan-08 30-Jan-08 14-Feb-08 15-Mar-08 30-Mar-08 30-Apr-08 28-Feb-09

Actual NCB 16-Jun-09 3-Aug-09 12-Aug-09 9-Sep-09 12-Oct-09 12-Nov-09 10-Dec-09 11-Jan-10 18-Jan-10 30-Nov-10

LIST OF SUPPORTING DOCUMENTS ANNEX 5

1. Appraisal Report, ADB

2. RVWSSP Quarterly Progress Reports

3. Draft Project Completion Report

4. Mission Aide Memoires

5. Audited Project Accounts and Audit reports

6. NAWASSCO Performance Audit Report; Norken International, May 2010

7. Impact: A performance report of Kenya’s Water Services Sector: Issue No 4

8. 2009 Kenya Population and Housing Census; Volume I A

PROJECT NARRATIVE ANNEX 6

General Project Development Objective a) The project is designed to increase water supply and sanitation coverage in some parts of the Rift Valley Water

Services Board (i.e. Nakuru municipality and the town of Naivasha, Gilgil, Molo, Elburgon and Njoro and the rural communities). This will ensure that the RVWSB takes over schemes that have been rehabilitated to an acceptable state with low levels of UfW, and good knowledge of its consumers. The production capacity will be increased to meet current and medium term demand in Nakuru, current demand in the 5 other towns, and provide services to 100,000 rural consumers.

Project Background a) Nakuru is the fourth largest urban centre in Kenya with a population of about 285,000 and growing at an annual rate of

3.5%. It is situated on the northern shores of Lake Nakuru on the floor of the Great Rift Valley in Central Kenya, with rich agricultural hinterland and high tourism potential as a result of Lake Nakuru, an alkaline water body 1800m above sea level, habitat for one third of the world’s lesser flamingo, and the surrounding wildlife park. The area also has many industries.

b) Despite the importance of Nakuru in the Kenyan economy, the water supply suffers from the problems of (i) insufficient capacity of water sources and (ii) weak institutional capacity to operate and maintain, bill and collect revenues from the water supply and sanitation facilities. These problems reached a level where they are impacting on poverty levels, health and livelihood of the people, thereby causing an increase in water borne diseases with families buying water of doubtful quality at high cost from vendors. Some industries closed down or relocated to other areas, while there is increasing competition between the different sectors of demand. In view of these problems, the Government of Kenya, in 1993, requested the Bank Group to finance a feasibility study of a medium term project for water supply and sanitation for the town of Nakuru and a pre-feasibility study for the long-term project.

c) The study, completed in 2000, proposed a two-phased approach to the solution of the water and sanitation problems in Nakuru. The first phase, the Immediate Works Project, involves rehabilitation of the existing water supply and sanitation facilities to restore production from less than 30,000 m3/day to the design capacity of 40,000 m3/day; capacity augmentation by 15,000 m3/day by development of a new well field at Olobanita; and institutional capacity building to improve billing, revenue collection and reduce Unaccounted-for-Water (UfW). The second phase would involve construction of a dam on the Itare River to increase capacity to 100,000 m3/day and extension of the sewer network to other parts of the town.

d) In early 2001, the Government requested the Bank Group to finance the Immediate Works Project, but the appraisal process could not be completed due to failure to resolve key institutional and financial issues. The Government renewed the request for funding the project under ADF IX in October 2002, but this time included other towns and rural areas within the Rift Valley Water Services Board area, in line with the policy and institutional reforms initiated under the Water Act (2002). The Bank appraised the project in December 2003, with a follow up mission in March 2004 to firm up the outstanding institutional issues. This Appraisal Report is the outcome of these missions.

e) Unlike earlier Bank Group financed projects in Kenya, which focussed on physical infrastructure, this project will ensure that new institutions are put in place and strengthened while the infrastructure is being rehabilitated and extended. The project, as designed, will provide technical assistance to RVWSB and NAWASSCO, the WSP for Nakuru, to ensure that RVWSB develops adequate institutional capacity to manage its contracts with the WSPs, and that NAWASSCO will have adequate capacity for operation and maintenance, as well as financial management of the Nakuru schemes.

Project Implementation Institutional support to RVWSB and NAWASSCO

Institutional support to both RVWSB and NAWASSCO is fully implemented and has registered success with RVWSB being fully operational and exercising its mandate as per the Water Act 2002. The RVWSB is now ISO 9001-2008 certified as a result of continually improving the quality of its management and services provision. Support to the project included the performance audit of NAWASSCO which was undertaken by an independent consultancy firm (Norken International Ltd) during the project duration. The report not only acknowledges progress made in institutional strengthening but also makes recommendations for improvement in the areas of (i) non-revenue water (ii) revenue collection (iii) recruitment and training of suitable qualified persons at middle and lower levels including outsourcing opportunities. The performance report of Kenya’s water services sector (Impact issue no 4) by the regulator (WASREB) has ranked NAWASSCO favourably with a metering ratio of 92%, collection efficiency of 69%, coverage of 79%, 18 hours of water supply and non –revenue water of 53%. Monthly revenues collection has increased from KSh 5 Million in 2007 to KSh 40 Million in 2011.

Water Supply and Sanitation Improvements for Nakuru, and other Secondary towns

The project capital investment works, comprising new and major rehabilitation works of the existing water supply and sanitation facilities were satisfactorily implemented including the Rural Water Supply and Sanitation program. A list of goods, services and works procured under the project, as of June 2011, is shown below:

FINANCING

SOURCE START DATE STATUS

WORKS CONTRACTS

Augmentation of Bulk water Supply from Olobanita wellfield ADF 2007 Completed

Development of olobanita well field and additional boreholes at kabnatini and baharini wellfields

ADF 2007 Completed

Extensions and improvements to sanitation ADF 2009 Completed

Rehabilitation of Bulk Transmision mains from mereroni, Kabatini and baharini and installation of meters

ADF 2007 Completed

Construction of administration block

ADF 2007 Completed

Naivasha and Gilgil towns water improvements ADF 2008 Completed

Molo, Njoro and Elburgon towns water improvements ADF 2010 Completed

SERVICE CONTRACTS

Supervision of Nakuru Works ADF 2006 Completed

Institutional support to RVWSB ADF 2006 Completed

Institutional support to NAWASSCO ADF 2007 Completed

Management option study for 13 towns ADF 2007 Completed

Supervision of 5 secondary towns ADF 2008 Completed

TA support for Rural Water Supply and Sanitation Program ADF

Audit ADF 2008

GOODS

Vehicles ADF 2007 Completed

Meters, Valves and test bench ADF 2007 Completed

Leak detection equipment ADF 2007 Completed

Office equipment ADF 2007 Completed

Billing software ADF 2009 Completed

Operation and Maintenance Tools and Laboratory equipment ADF 2008 Completed

Rural Water Supply and Sanitation program

The Rural Water Supply and Sanitation program was implemented following the Community Project Cycle (CPC) approach as developed by the

Water services Trust Fund. A total of 36 projects were implemented and the list of projects is shown below;

ADB PRJ. NO PROJECT NAME

District Location AMOUNT DISBURSED WORKS STATUS

1 Mangoik Mogotio Kapkechui 2,237,005 Excavation of pan 100%

Construction of VIP latrine 100%

Construction of Communal water point 100%

Construction of cattle trough 100%

Fencing 100%

Community training 100%

2 Chelit Pokot East Korossi 3,628,653 Borehole (Including drilling, pump set and pipe work) 100%

Pump House Construction 100%

Water tank construction 100%

Water Kiosk construction 100%

Cattle trough construction 100%

Sanitation Facilities (3No.) 100%

3 Molos Mogotio Kamar 5,916,995 Excavation of pan 100%

Construction of 2 Ferro cement tanks 100%

Construction of 5 VIP latrines 100%

Construction of communal water point 100%

Construction of cattle trough 100%

Fencing of pan 100%

Community training 100%

4 Saruni Narok North

Entontol 5,968,967 1 Drilling of Saruni Borehole 100%

2 Construction of Olnchhorro Dam 100%

3 Desilting of Ilkurman and Oleserikali Pans 100%

4 Construction of Oloonkabobok Dam 100%

5 Construction of Oloingojine dam 100%

6 Construction of 4No. VIP latrines 100%

7 Management Training 100%

5 Letwa West Pokot

Tamugh 3,013,349 1 Construction of Letwa Sand dam 100%

2 Construction of Chepsekek Sand dam 100%

3 Construction of 2No. 2-Door VIP latrines 100%

4 Construction of Store/Office 100%

5 Repair of Ptira dam 100%

6 Repair of Poghyotwo dam 100%

7 Construction of 4N. Cattle Troughs 50%

8 Construction of 4No. CWPs 100%

9 Management Training 100%

10 Community Training 100%

6 Kamasai Mogotio Kapnosgei 5,494,779 1. Installation of booster pump. 100%

(1437653 in phase 2) 2. Digging of trenches for the water pipes. 100%

3. Purchase and laying of pipes for rising main and gravity line. 100%

4. Completion of cattle troughs. 100%

5. Completion of water kiosks. 100%

6. Construction of VIP latrines 100%

7 Kollowa East Pokot Kollowa 6,093,272 1 Spring Intake Protection Works 100%

2 Transmission Gravity Main 100%

3 Construction of 100m3 Tank 100%

4 Construction of 25m3 Tank 100%

5 Fencing Works 100%

6 Laying of distribution pipes 100%

7 Construction Valve Chambers 100%

8 Construction of concrete Beams 100%

9 Construction of Cattle Troughs 5No 100%

10 Construction of CWPs 6No. 100%

11 Construction of VIPs 5No. 100%

12 Construction of Bathrooms 100%

13 Environmental Protection 100%

14 Management Training 100%

15 Community Training 100%

8 Oro SDA East Pokot Loyamorok 12,679,230 Construction of Pipeline 100%

Desilting of pans 100%

Purchase and installation of control panel 100%

Payment to KPLC 100%

Construction of water kiosks 100%

100%

9 Cherumbo East Pokot Kaptuya 3,361,481 Water Pan 100%

Cattle trough 100%

3No. Toilets 100%

10 Loiwat East Pokot Loiwat 5,227,250 1 Construction of Water Pan 100%

2 Provision of appurtenance structures 100%

3 Construction of communal water points 100%

4 Construction of cattle trough 100%

5 Fencing Works 100%

6 Construction of VIP latrines 10No. 90%

7 Construction of Bathrooms 2No 100%

8 Environmental protection 100%

9 Management Training 100%

10 Community Training 100%

11 Tuluongoi Baringo Central

Tuluongoi 10,970,934 Drilling of Borehole 100%

Equip borehole 100%

Construction of Borehole maintenance gantry 100%

Construction of Pump house 100%

Trenching of rising main 100%

Construction of rising main 100%

Construction of masonry storage tank 100%

Construction of water kiosks 100%

Payment to KPLC 100%

12 Koiserat Baringo North

Kaboskei 3,763,861 Borehole 100%

Genset House 100%

Pipe works 100%

Water Kiosk 100%

10m3 Water Tank 100%

50m3 storage Tank 100%

cattle trough 100%

VIP latrine (3No) 100%

13 Mogila Turkana West

Mogila 5,958,101 1. Protection of Kathelem Spring 100%

2. Construction of 50m3 storage tank 100%

3. Construction of toilets for market place/ church/school 100%

4. Piping works 100%

5. Equip 3 Boreholes 100%

6. Construct 2 No. Cattle Troughs 100%

7. Construct 2 No. Ablution Blocks 100%

8. Purchase Plastic slabs No. 100 100%

9. Management Traing 100%

10. O&M Training 100

14 Songot Turkana West

Songot 6,254,850 1.Acquisition and installation of wind mill water pump on existing Borehole 100%

2.Rehabilitation and enhancement of Loupe II Rock Catchment 100%

3.Laying of Pipeline 100%

4.Construction of 100m3 Tank 100%

5.Construction of VIP latrines 10 No. 100%

6.Construction of CWPs 10 No. 100%

7.Management Training 100%

8.O&M Training 100%

15 Loteteleitt Turkana West

Loteteleitt 6,843,070 1 Acquisition and installation of wind mill water pump at existing Lolemoe Borehole 100%

2 Rehabilitation and enhancement of Lolemoe Rock Catchment 100%

3.Laying of Water Pipeline 100%

4.Construction of 100m3 Tank 100%

5.Construction of Water Kiosks 2 No. 100%

6.Construction of VIP latrines 10No. 100%

7.Management Training 100%

8.Community Training -

16 Silonga Marigat Ng'ambo 5,554,720 Capital payment to KPLC for power connection. 100%

Purchase and installation of pump. 100%

Trenching of pipeline of 10kms. 100%

Construction of sanitation (10 VIP latrines) 100%

Community training. 100%

Construction of 8 water points and chambers 100%

17 Kalapata Pokot North

Kalapata 4,297,627 1 .Lodwar Sand Dam 100%

2 Natukutan Dam 100%

3 2 Intakes 100%

4 50m3 stone tank 100%

5 .Purchase 25m3 Plastic Tank 100%

6 Management Training 100%

18 Naita Turkana North

Naita 3,380,015 Construction of Lobonyo Water Pan 100%

Construction of 7No. VIP Latrines 100%

100% 19 Kaeris Turkana

North Kaeris 7,137,596 1.Drill Borehole at Kaeris 100%

2.Drill Borehole at Lodwarakipi 100% 3.Fit Kaeris Borehole with wind turbine 100% 4.Construction of Office/store 100% 5.Laying of Pipeline 100%

6.Construction of 50m3 Tank 2No. 100% 7.Construction of Cattle Troughs 2No 100% 8.Construction of CWPs 2No. 100% 9Purchase and Install Duba pump 100% 10.Construction of VIPs 8No 100% 11.Management Training 100%

20 Kibish Turkana

North Kibish 3,479,115 Asak Water Pan 100%

6No. VIP Latrines 100%

21 Tasekuang Marigat Kiserian 5,654,501 Trenching to Sokotei Primary school 100% Piping to Sokotei primary school 100% Replacement of Eroded GI pipes with Plastic pipes 100% Trenching to Lorok village 100% Cleaning of treatment plant 100% Rehabilitation of Lighting system at treatment plant 100% Procurement and installation of control panel 100% Trenching to GSU village 100% Trenching to Lorok primary school 100% Procurement of all PVC pipes 100% Meeting with Eldume community on cooperation in rehabilitating the intake and distribution line 100%

Construction of nine single VIP latrines 100% Rehabilitation of intake 100%

22 Lowarengak Turkana

North Ngissiger 6,343,280 1.Drill Borehole at Loarengak 100%

2.Rehabilitate old pipeline 100% 3.Repair of wind pump 100% 4.Pipeline Works 100% 5.Construction of Cattle Troughs 5No. 100% 6.Construction of CWPs 2No. 100% 7.Construction of VIP latrines 9No. 100% 8.Management Training 100% 9.Community Training -

23 Napeikar Turkana North

Meyan 3,341,000 Liwan Water Pan 100% VIP latrines 100%

100%

24 Napeitom Turkana East

Napeitom 2,552,500 1. Borehole drilling, casing, installation of pump and Generator (or substituted Power Source Unit)

100%

2. Construction of VIP Latrines – 100%

3. Training 100%

25 Nadome Turkana East

Nadome 2,139,450 Drilling of Borehole 100%

26 Kapedo Turkana East

Kapedo 2,444,800 Borehole drilling, casing, installation of pump and Generator (or substituted Power Source Unit)

100%

27 Eldume Marigat Eldume 23,058,547 Construction of 1920m of 3”(75mm) Ф GI class B pipe including all fittings 100%

Installation of 2610. Of 2” GS class B pipe including all fittings 100%

Rehabilitation of 100m3 storage tank at Kailler 100%

2 No. Water Kiosk(2x1.8m) 100%

Installation of 5310m of 2”(50mm) Ф GS class B pipe including all fittings 100%

Installation of 5310m of 2”(50mm) Ф GS class B pipe including all fittings 100%

Construction of 100m3 masonry storage tank 100%

2 No Water kiosks(2x1.8m) 100%

Installation of 3870m of 1 ½” Ф Gs pipe class C pipe including all fittings 100%

Installation of 330m of ¾” Ф PVC class C pipe including all fittings 100%

10000m3 water pan and watering trough 100%

2 No. 10000m3 water pan and watering troughs 100%

Grand Total 156,794,948

28 Mukutani Baringo 9,556,520 Intake works 100%

Spring protection 100%

Water points 100%

Storage tank 50m3 (2 No) 100%

Rehabilitation of pipeline 100%

New pipeline 100%

6No. Pit latrines 100%

3No. Cattle trough 100%

29 Silale Baringo

8,827,605 Construction of 3No. Water pans,1No. 30m3 masonry tank, 4No. Cattle trougns, 2No CWPs, 8No 7-door Pit latrines, community training 100%

30 Rikbwo Baringo

9,304,555 Construction of 2No. Water pans,1No. 30m3 masonry tank, 4No. Cattle trougns, 2No CWPs, 8No. 7-door Pit latrines, community training 100%

31 Yapakuno Turkana

10,168,046 2No. Borehole drilling and equipping with duba pumps, construction of 2No. Cattle troughs, 10No. Pit latrines and Office/store, life fencing andcommunity training 100%

32 Loruth Turkana

7,630,194 2No. Borehole drilling and equipping with duba pumps, construction of 2No. Cattle troughs, 5No. Latrines and Office/store, life fencing and community training 100%

33 Riokomor Turkana

7,285,021 2No. Borehole drilling and equipping with duba pumps, construction of 2No. Cattle troughs, 10No. Pit latrines and Office/store, life fencing andcommunity training 100%

34 Lomeyan Turkana

9,188,239 Borehole drilling and equipping, pipeline works and 3No. CWPs, construction of 1No. 100m3 tank, pumphouse, 6No. Latrines and community training 100%

35 Lorengelup Turkana

9,196,198 Borehole drilling and equipping, pipeline works and pumphouse, 5No. CWPs, construction of 1No. 100m3 tank, 5No. Cattle troughs and 9No. Latrines, community training 100%

LESSONS LEARNT

1.1 Delayed processing of disbursement requests from contractors has resulted in significant amounts of interest penalties being paid by the borrower. This is an area requiring improvement to avoid loss of limited resources towards payment of penalties. One possible solution would be the provision of monthly statements from the Bank which will enable the borrower to track direct payments made by the Bank;

1.2 Delays in effectiveness of the project were due to loan conditions requiring the establishment and operation of new institutions under the wider sector reforms which took long to implement. This would have been avoided if at the time the project was approved, these core institutional reforms would have been undertaken.

1.3 A holistic approach to reducing unaccounted for water (whereby both technical and commercial losses are addressed) is crucial to

the success of that objective. This project did not provide all zonal meters and improvements of the distribution network. Hence the operator was unable to fully investigate the areas of losses and also curtail losses associated with the old distribution network.

1.4 The implementation of the rural component of the project adopted the CPC approach, which takes long to implement. There is therefore need for a review of the CPC model and strengthen it for future rural interventions.

1.5 The project targeted one Water Services Board (WSB) and Water Service Provider under that WSB, enabling better focus by the

Bank and avoided spreading the limited resources too thinly. This combined with institutional capacity building increased the likelihood of the project achieving the desired impacts.

CONCLUSIONS AND RECOMMENDATIONS Conclusions

Project Outcomes

The overall rating for the achievement of the project outcome is satisfactory with the project development objective being relevant and in line with the sector goal of ensuring equitable provision of adequate water and sanitation services. Achievement of outputs was satisfactory with implementation of key components under (i) the Institutional support to RVWSB and NAWASSCO; (ii) Rehabilitation of the existing urban water and sanitation facilities in Nakuru; (iii) 5 secondary towns under the RVWSB; and (iv) rural water supply and sanitation program.

Borrowers Performance

The Borrower’s performance is rated as satisfactory though delays in completing the setting up of the required institutions contributed to the delayed commencement of project implementation. The GoK remains committed to increasing access to water and sanitation services in the country through increased financing to the sector and sustained implementation of the sector reforms. Counterpart funding was provided though delays were experienced in the obtaining tax exemption. The Executing Agency was adequately staffed and progress reports submitted. Implementation of the planned activities was satisfactory.

Bank Performance

The performance of the Bank is rated as satisfactory with supervision missions having being conducted on a regular basis by both KEFO and Headquarters. Though no Medium Term Review for the project was conducted, key issues were identified during supervision and resolved.

Recommendations

Further to the agreed action points in section 4 of the Aide memoire, the following recommendations are made for the project:

There is need for extension of the distribution networks in all the towns to ensure the increased coverage of water supply and sanitation services;

The ability and capacity of NAIVAWASS to operate and maintain the infrastructure and provide water supply and sanitation services in Naivasha town needs to be urgently reviewed and immediate remedial action instituted.