FOR OFFICIAL USE ONLY RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING THE INFORMAL SETTLEMENTS IMPROVEMENT PROJECT CREDIT 4873-KE

Transcription

1 Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY Report No: Public Disclosure Authorized Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE INFORMAL SETTLEMENTS IMPROVEMENT PROJECT CREDIT 4873-KE APPROVED ON MARCH 24, 2011 TO THE REPUBLIC OF KENYA March 22, 2016 Public Disclosure Authorized Social, Urban, Rural and Resilience (SURR) Country Department 2, AFCE2 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 ABBREVIATIONS AND ACRONYMS AFD IDA ISR KISIP PAD PCT Sida Agence Française de Développement International Development Association Implementation Status and Results Report Kenya Informal Settlements Improvement Project Ministry of Land, Housing and Urban Development Project Appraisal Document Project Coordination Team Swedish International Development Cooperation Agency Regional Vice President Country Director: Global Practice Senior Director: Acting Practice Manager: Task Team Leader: Makhtar Diop Diarietou Gaye Ede Jorge Ijjasz-Vasquez Sameh Naguib Wahba Abebaw Alemayehu

3 KENYA INFORMAL SETTLEMENTS IMPROVEMENT PROJECT CONTENTS A. SUMMARY... 1 B. PROJECT STATUS... 1 C. PROPOSED CHANGES... 2 ANNEXES Annex 1: Results Framework and Monitoring... 5 Annex 2: KISIP Provisional Procurement Plan for July 1, 2016 May 31, Page iii

4 DATA SHEET Kenya Kenya Informal Settlements Improvement Projects (P113542) and Additional Financing (P144966) AFRICA GSURR Report No: RESxxx Basic Information Project ID: P and P Lending Instrument: Investment Financing Regional Vice President: Makhtar Diop Original EA Category: Partial Assessment (B) Country Director: Diarietou Gaye Current EA Category: Partial Assessment (B) Senior Global Practice Director: Practice Manager/Manager: Team Leader(s): Ede Jorge Ijjasz-Vasquez Original Approval Date: 24-March-2011 and 8-Jun-2015 Sameh Naguib Wahba Current Closing Date: 30-Jun-2016 Abebaw Alemayehu Borrower: Responsible Agency: National Treasury Ministry of Land, Housing and Urban Development Restructuring Type Form Type: Simple Restructuring Paper Decision Authority: Country Director Restructuring Level: Level 2 Financing (as of 27-Jan-2016 ) Key Dates Project Ln/Cr/TF Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P IDA Effective 24-Mar May Jun Jun May-2018 Disbursements (in Millions) Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disburs ed P IDA Effective XDR Key Dates Project Ln/Cr/TF Status Approval Signing Date Effectiveness Original Revised Closing iv

5 Date Date Closing Date Date P TF Effective 8-Jun July Jul Jun May-2018 Disbursements (in Millions) Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbursed v Undisbursed % Disburs ed P TF Effective USD Policy Waivers Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ] Does the project require any policy waiver(s)? Yes [ ] No [ X ] A. Summary of Proposed Changes The proposed changes are to extend the Project closing date by 23 months, to change the disbursement arrangements, to change the disbursement forecast, and to make revisions to the results framework. No changes are proposed in the safeguard category, and no new safeguard policy will be triggered. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change to Financing Plan Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ X ] No [ ] Reallocation between Disbursement Categories Yes [ ] No [ X ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ ] No [ X ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ]

6 Appraisal Summary Change in Social Analysis Yes [ ] No [ X ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Assessment Yes [ ] No [ X ] B. Project Status Implementation of the KISIP started slowly, but accelerated significantly in 2014 and Disbursements totaled only US$8.4 million on April 16, 2013, but they totaled US$56.9 million in January Moreover, all available IDA funding for KISIP has been committed. As a result, disbursements are projected to rise steadily during the next phase of implementation. The project has consistently been rated moderately satisfactory for overall implementation progress and for progress towards achievement of the Project Development Objectives. An action plan has been agreed with the Client to bring the rating up to a satisfactory level. The Bank team has been closely monitoring implementation of the action plan to quickly identify issues and seek solutions to challenges. The plan is largely on track, and the project is likely to be upgraded following the next implementation support mission. There have been no significant issues with compliance with Environmental and Social Safeguards, or with fiduciary management. Currently, most of the KISIP s planned works contracts are under implementation. These are providing drainage systems, roads, high mast security lights, and water supply and sanitation systems in 27 informal settlements in six urban centers. About 250,000 people are benefiting from the improved infrastructure. In addition to civil works, KISIP has undertaken preparation of settlement-level development plans, surveys, registry index maps, and letters of allotment/titles that has so far strengthened security of tenure for some 8,500 people. KISIP has recently received additional financing of about US$8.3 million from the Swedish International Development Cooperation Agency (Sida) and about US$40 million from the French Development Agency (AFD). In anticipation of the additional financing, the KISIP Project Coordination Team (PCT) has prepared upgrading plans, and detailed engineering designs for infrastructure in 23 additional settlements. However, procurement of the additional works is stalled because the works require months to complete, which would bring their end dates beyond the current closing date of the project. With an extension of 23 months in the closing date, it is expected that the project will achieve its PDO and key performance targets. C. Proposed Changes Change in Results Framework Explanation: Changes are proposed to the results to reflect activities and targets that will be achieved under the project. Change in Loan Closing Date(s) Financing vi

7 Explanation: An extension of 23 months in KISIP s closing date is proposed. The framework structure of the original Project design meant that infrastructure works under the Project would be designed and constructed during implementation. This made the original five-year implementation period unrealistic. In addition, additional financing from Sida was approved only in June 2015 and that from AFD in December To complete activities financed under these funds will require an extension in the project closing date of 23 months. Ln/Cr/TF Status IDA Original Closing Date Current Closing Date Proposed Closing Date Effective 30-Jun Jun May Jun-2016 TF Effective 30-Jun Jun May Jun-2016 Change in Disbursement Arrangements Explanation: The disbursement arrangements have changed to reflect the funds from AFD Co-financing. Change in Disbursement Estimates Explanation: (including all sources of Financing)PHHCDE With a 23-month extension of the Project closing date, the disbursement forecast has changed. Expected Disbursements (in USD Million)(including all Sources of Financing) Previous Closing Date(s) Fiscal Year Annual Cumulative Change in Implementation Schedule Explanation: KISIP s implementation schedule has changed to reflect the Project s new closing date of May 31, The change is required to allow for the completion of ongoing works and consultancies, and procurement of new works to be financed with additional funds from Sida and AFD. vii

8 RESTRUCTING PAPER A. SUMMARY 1. The restructuring of the Kenya Informal Settlements Improvement Project (KISIP) is required to: (a) extend the Project s closing date by 23 months, (b) revise the disbursement arrangements, (c) update the disbursement forecasts in line with the revised implementation schedule, and (d) make changes to the results framework to reflect what the Project will achieve. In a letter dated October 27, 2015, the National Treasury requested an extension of three years to the closing date of the KISIP and for additional financing from IDA of US$50 million. However, as the Agence Française de Développement (AFD) has just signed a financing agreement with the government to provide 35 million euro (US$38.9 million) for KISIP, the Bank and the government have agreed to consider the request for additional financing once most of those funds have been exhausted. A review of ongoing and planned contracts indicates that a 23-month extension in the closing date will be adequate to complete work planned under funds from the International Development Association (IDA), from the Swedish International Development Cooperation Agency (Sida), and from AFD. Details of the changes are presented below. B. PROJECT STATUS 2. Despite initial delays arising from the post-constitutional reform transition and reorganization, as of March 17, 2016, the project had disbursed US$64.3 million of the IDA credit. All remaining funds are either committed or will be committed once the proposed restructuring has been approved, and the Client can sign contracts that have negotiated, but which have end dates that extend beyond the current project closing date of June 30, The project has been consistently rated as satisfactory or moderately satisfactory for project development objective and for implementation progress. The government is committed to the project, and has complied with the covenants specified in the Financing Agreement. Compliance with environmental and social safeguards has been satisfactory. There are no outstanding or unresolved fiduciary safeguard problems. An assessment of the project s financial management arrangements, including compliance with the legal covenants related to financial management, found that they provide reasonable assurance that the project funds are used for the intended purposes. The project account has been audited for the fiscal years ending June 30, 2011, 2012, 2013, 2014, and 2015 and an unqualified report has been issued for each year. Recent Implementation Status and Results (ISRs) rate financial management as satisfactory and procurement as moderately satisfactory. 4. Currently, most of KISIP s planned works contracts are under implementation. Civil works are complete or underway in 27 settlements in seven urban centers, including Eldoret, Machakos, Malindi, Mombasa Nairobi, Naivasha, and Nakuru. Procurement of works will be finalized for another seven settlements, once the extension of the project s closing date is approved. Settlement upgrading plans have been prepared for settlements in six urban centers, and civil works will be financed under funds from AFD. In addition to civil works, KISIP has 1

9 undertaken preparation of settlement-level development plans, surveys, registry index maps in 13 settlements in five urban centers, and letters of allotment/titles that has so far strengthened security of tenure for some 8,500 people, and work is underway in another 50 settlements in 12 urban centers, with work planned to start in additional settlements soon after the extension of the closing date is approved. With an extension of 23 months in the closing date, it is expected that the project will achieve its revised PDO and revised key performance targets. C. PROPOSED CHANGES 5. The proposed changes are to: (a) extend the Project s closing date by 23 months, (b) update the disbursement forecasts in line with the revised implementation schedule, (c) revise the disbursement arrangements, and (d) make changes to the results framework to reflect what the Project will achieve. No changes are proposed in the PDO or in the safeguard category, and no new safeguard policy will be triggered. Therefore, the proposed restructuring is a level 2 restructuring. Details of the proposed changes are presented below. 6. Extension of the Project closing date. An extension of 23 months in KISIP s closing date has been agreed with the government. The framework structure of the original Project design meant that infrastructure works under the Project would be designed and constructed during implementation. This made the original five-year implementation period unrealistic. To complete activities financed under IDA and Sida funds will require an extension in the project closing date of 23 months. Moreover, designs and bidding documents have been prepared for another 12 settlements in six urban centers, for a total cost of about US$44 million. Contracts for civil works in these settlements can be procured shortly after the extension of the project s closing date has been approved. These works will be financed using the funds from AFD, allowing the full use of those funds within the revised project implementation period (see the provisional KISIP procurement plan in annex 2 for the details). The disbursement forecasts have been updated to reflect the Project s revised implementation schedule. 2

10 7. Changes in the disbursement arrangements. AFD is providing co-financing to KISIP of 35 million disbursed directly to the Government of Kenya through a Financing Agreement signed on December 17, AFD has asked the Bank to provide overall implementation support, including fiduciary and safeguards, for the expanded project activities. For this purpose, the Bank and AFD signed a co-financing agreement, including a reimbursable advisory services agreement, in November This agreement provides for joint co-financing of KISIP in the proportion to which each development partner has provided funds for the project. At this stage in project implementation, some US$36.1 million of IDA funds are undisbursed or undocumented and US$8.3 million of Sida funds are undisbursed. With US$38.9 from AFD, the total financing still available for the project is about US$100.8 million. The table below present the financing available by development partner and the percentages of each payment to be drawn from each source each. Table 1: Funds remaining to be documented, estimated at the time of restructuring* IDA Sida AFD Total US$ millions Percentage 53% 8% 39% 100% * This table reflects the funds the funds that have been disbursed to the Designated Account, but which have not yet been documented. 8. To reflect the funds from AFD, the disbursement schedule must be changed. The current and revised disbursement schedules are: Category (1) Goods (including vehicles), and consultants services for Parts A, B and D of the Project, and training costs for all parts of the Project (2) Goods, works, consultants services, for Part C of the Project Current Disbursement Schedule: IDA* Amount of the IDA Percentage of Expenditures to be Financing (expressed in Financed (inclusive of taxes) SDR ) 12,798,665 89% 50,500,000 89% (3) Operating Costs 1,700,000 89% (4) Refund of Preparation 1,335 Advance Total 65,000,000 3

11 Category (1) Goods (including vehicles), and consultants services for Parts A, B and D of the Project, and training costs for all parts of the Project (2) Goods, works, consultants services, for Part C of the Project Revised Disbursement Schedule: IDA* Amount of the IDA Percentage of Expenditures to be Financing (expressed in Financed (inclusive of taxes) SDR ) 12,798,665 53% 50,500,000 53% (3) Operating Costs 1,700,000 53% (4) Refund of Preparation 1,335 Advance Total 65,000,000 * This table reflects the percentage of each expenditure item that IDA will finance. Sida will finance 8 percent of each expenditure item, and AFD will finance 39 percent. The government contribution will be used to finance expenditures that the development partners will not finance, such as costs associated with implementation of the resettlement action plans. 9. Changes in the results framework. Revisions have been made in the results framework to reflect what the project will actually achieve. One indicator that was associated with an activity that is no longer relevant has been dropped. Targets for some indictors have been revised, based on information from completed, ongoing, and negotiated contracts. The outcome target for People benefiting from improved tenure security under component 2 of KISIP has been reduced from 71,000 people to 25,000 due to slow progress so far in distributing ownership documents to residents of informal settlements. The project supports planning and surveying consultancies, which include (a) preparation of base maps, (b) participatory preparation of local physical development plans, (c) surveys of plots, and (d) development of survey plans. These survey plans are then submitted for approval to the county administrations and the Ministry of Land, Housing, and Urban Development. The KISIP team does not have control over this approval process, and cannot issue ownership document until the approvals are granted, which has taken longer than previously expected. The reduction in target of people benefiting from enhanced tenure security is not expected to prevent the project from achieving its objectives, as the number of people benefiting from improved infrastructure and services has increased from the Project Appraisal Document stage from 200,000 to 1 million. See annex 1 for details of all the changes in the results framework. 4

12 Kenya Informal Settlements Improvement Project Annex 1: Results Framework and Monitoring PDO Revisions to the Results Framework Current (PAD) The Project s development objective is to improve living conditions in informal settlements in selected urban centers in selected counties in Kenya. PDO indicators Current (PAD) 1. Direct project beneficiaries (number), of which female (percent) People in informal settlements provided with access to improved drainage infrastructure under KISIP. 3. People in informal settlements provided with access to all-season roads within a 500 meter range under KISIP. 4. People in informal settlements provided with access to improved water sources under KISIP. 5. People benefiting from improved tenure security under component 2 of KISIP. Proposed No change. Proposed change* No change, target slightly reduced. No change. No change. No change in indicator, target increased. No change in indicator, target reduced. Comments/ Rationale for Change The target has been reduced to reflect the reduction in the target for people benefiting from improved tenure security under KISIP. The overall target for this indicator is the sum of the population benefiting under components 2 and 3. Ongoing and planned work indicates that more household connections will be made than previously expected. Moreover, all residents of Machakos will benefit from the construction of a new borehole and distribution system under KISIP. Prior to the start of the planning and surveying consultancies, there is considerable uncertainty as to the number of households that will be eligible to receive ownership documents. Moreover, the county administrations and the Ministry of 1 Direct beneficiaries are people or groups who directly derive benefits from the project intervention (for example, people living in informal settlements who benefit from improved water and sanitation services, or people who benefit from increased tenure security). People who benefit from more than one intervention (for example, people benefiting from both enhanced tenure security and from improved infrastructure) will be counted only once with respect to this indicator. 5

13 Revisions to the Results Framework Intermediate Results indicators for each component Current (PAD) Component 1 1. Policies, frameworks, and guidelines for slum upgrading developed and adopted by the. 2. Database with slum inventory operational and accessible to the public. Component 2 1. Informal settlements benefiting from enhanced tenure security under KISIP. 2. GIS labs at the upgraded and operational. Component 3 1. People in settlements provided with access to improved shared sanitation facilities under the KISIP. 2. New piped household water connections under KISIP. 3. New sewer connections constructed under the project. Proposed change* No change. Database with KISIP project data and inventory of informal settlements in KISIP urban centers operational and accessible to the public. No change in indicator; target increased. No change. No change in indicator; target increased. No change in indicator; target increased. No change in indicator; target increased. 4. Roads rehabilitated, non-rural No change in indicator; target reduced. 5. New high mast security lights put into place under KISIP. Indicator revised because KISIP is supporting only high mast security lights; target increased. Comments/ Rationale for Change Land, Housing, and Urban Development have to approve the draft plans and lists of people to receive ownership documents, processes over which the KISIP team has no control. The end of project target has been reduced to reflect this uncertainty. The indicator now has more detail on what the database will cover. Ongoing and planned work indicates that more settlements will benefit from planning and surveying than previously expected. The planning and surveying work is generating maps, survey plans, and lists of residents who are eligible for ownership documents all key outputs in the process of land tenure regularization. The estimate of the average number of people served by an ablution block has been raised in line with benchmarks for developing countries. Ongoing and planned work indicates that more households will benefit from connections than previously expected. Ongoing and planned work indicates that more households will benefit from connections than previously expected. Ongoing and planned work indicates that fewer kilometers of roads will be constructed than previously expected. Target increased to reflect completed and planned work. 6

14 Revisions to the Results Framework Comments/ Rationale for Change 6. Drainage systems rehabilitated. No change in indicator; target increased. Target increased to reflect ongoing and planned work. 7. Footpaths rehabilitated. No change in indicator; target increased. Target increased to reflect ongoing and planned work. Component 4 1. Situational analysis. No change. 2. Survey of housing conditions in four urban centers... No change. * Indicate if the indicator is Dropped, Continued, New, Revised, or if there is a change in the end of project target value 7

15 Core Kenya Informal Settlements Improvement Project REVISED PROJECT RESULTS FRAMEWORK Project Development Objective (PDO): The project s development objective is to improve living conditions in informal settlements in selected urban centers in selected counties in Kenya. Progress Unit of Cumulative Target Values 2 PDO Level Baseline To Date Mea- Results Start (December Frequencsurement Indicators (2009) 2015) 1. Direct project beneficiaries (number), of which female (percent) People in informal settlements provided with access to improved drainage infrastructure under KISIP. X Number 0 151,100 (50% female) 0 2,015 (50% female) 151,100 (50% female) 262, , million (50% female) Number 0 142, , , ,000 1 million Before start, and a year or so following end of intervention. Socioeconomic surveys to be carried out in each beneficiary settlement, and project implementtation reports. Before start, and a year or so following end of intervention. Socioeconomic surveys to be carried out in each beneficiary settlement, and project implementtation reports. Data Source/ Methodology Responsibility for Data Collection 2 Target values are entered for the years data will be available, not necessarily annually. Target values are normally cumulative. 3 Direct beneficiaries are people or groups who directly derive benefits from the project intervention (for example, people living in informal settlements who benefit from improved water and sanitation services, or people who benefit from increased tenure security). People who benefit from more than one intervention (for example, people benefiting from both enhanced tenure security and from improved infrastructure) will be counted only once with respect to this indicator. 8

16 Core Project Development Objective (PDO): The project s development objective is to improve living conditions in informal settlements in selected urban centers in selected counties in Kenya. Progress Unit of Cumulative Target Values 2 PDO Level Baseline To Date Mea- Results Start (December Frequencsurement Indicators (2009) 2015) 3. People in informal settlements provided with access to allseason roads within a 500 meter range under KISIP. 4. People in informal settlements provided with access to improved water sources under KISIP People benefiting from improved tenure security under X Number 0 142, , , ,000 1,000,000 X Number , , ,000 Number 0 8, ,015 8,500 12,000 18,000 25,000 Before start, and a year or so following end of intervention. Socioeconomic surveys to be carried out in each beneficiary settlement, and project implementtation reports. Before start, and a year or so following end of intervention. Socioeconomic surveys to be carried out in each beneficiary settlement, and project implementtation reports. Before start, and a year or so follow- Enumeration of genuine settlement resident, Data Source/ Methodology Responsibility for Data Collection 4 This is calculated as follows: number of connections, each serving an average of 20 people plus the 42,000 people living in urban core of Machakos, who will benefit from the rehabilitation of a borehole. 9

17 Core Project Development Objective (PDO): The project s development objective is to improve living conditions in informal settlements in selected urban centers in selected counties in Kenya. Progress Unit of Cumulative Target Values 2 PDO Level Baseline To Date Mea- Results Start (December Frequencsurement Indicators (2009) 2015) component 2 of the KISIP. 5 ing end of intervention. and project implementtation reports. Data Source/ Methodology Responsibility for Data Collection 5 People directly benefiting from enhanced security of tenure are members of households that receive an ownership document. People in households that receive an ownership document will be counted only once, even if they benefit from more than one step of the process (for example, a person may first receive a right in a community title and later receive an individual title to his or her living unit, but will be counted only once). 10

18 Core Intermediate Results Indicators Unit of Measurement Baseline Original Project Start (2009) Progress To Date (December 2015) Target Values Frequency Data Source/ Methodology Responsi bility for Data Collection Component 1: Strengthening institutions 1. Policies, frameworks, and guidelines for slum upgrading developed and adopted by the. Number Annual records. 2. Database with KISIP project data and inventory of informal settlements in KISIP urban centers operational and accessible to the public. Number 0 Database designed, populated and tested. 0 0 Database designed, populated and tested. Database operational and accessible to the public. Database operational and accessible to the public. Database operational and accessible to the public. Semiannually. Visits to the to access the database. Component 2: Enhancing security of tenure in selected informal settlements 1. Informal settlements benefiting from enhanced tenure security under KISIP. 6 7 Number 0 13 (218 hectares) Annual records. 6 These figures are very preliminary, based on incomplete information. More accurate data will come through the perimeter survey and population enumeration work that is being supported under component 2 of the project. 7 These include slums at any stage of tenure formalization (from settlement registration to survey to issuance of titles). 11

19 Core Intermediate Results Indicators Unit of Measurement Baseline Original Project Start (2009) Progress To Date (December 2015) Target Values Frequency Data Source/ Methodology Responsi bility for Data Collection 2. GIS labs at the upgraded and operational. Yes/No 0 GIS lab upgrade designed and tested. 0 Computer hardware procured GIS lab upgrade designed and tested. GIS lab operational GIS lab operational GIS lab operational Semiannually. Visits to the to access the database. Component 3: Investing in infrastructure and service delivery 1. People in settlements provided with access to improved shared sanitation facilities under the KISIP. 8 Number ,640 3,030 3,030 Annually Independent supervision consultant. 2. New piped household water connections under KISIP. X Number ,000 5,000 6,000 Quarterly 3. New sewer connections X Number ,500 2,500 4,600 Quarterly under KISIP. 9 Independent supervision consultant. Independent supervision consultant. 8 KISIP is financing 21 ablution blocks, six at schools (with an average number of three toilets per block), and 15 (with an average of eight toilets per block) within settlements. Each ablution block at a school will serve about 130 people, and each of the community ablution blocks will serve an estimated 150 people. 9 The trunk sewer constructed in Kayole Soweto has been completed and handed over to the county. Procurement of a contractor that will undertake the connections is complete and work is expected to start in February The contract is financed by the Global Partnership on Output Based Aid, and is managed by the Bank. Connections in other informal settlements will be financed and implemented directly under KISIP. 12

20 Core Intermediate Results Indicators 4. Roads rehabilitated, non-rural 5. New high mast security lights put into place under the KISIP. 6. Drainage systems constructed or rehabilitated. 7. Footpaths rehabilitated. X Unit of Measurement Baseline Original Project Start (2009) Progress To Date (December 2015) Target Values Frequency Quarterly Number Quarterly Kilometer Quarterly Quarterly Data Source/ Methodology Responsi bility for Data Collection Kilometer Independent supervision consultant. Independent supervision consultant. Kilometer Independent supervision consultant. Independent supervision consultant. Component 4: Planning for urban growth 1. Situational analysis Yes/no Yes No No Yes Yes Yes Yes Annually records 2. Survey of housing conditions in four urban centers. Yes/no Yes No No Yes Yes Yes Yes Annually records 13

21 Annex 2: KISIP Provisional Procurement Plan for July 1, 2016 May 31, 2018 Status Planned Type of Contract Contract name Type of works Town Sum of Contract amount in USD Est. Start date Est. End date Consultancy Social Safeguards Specialist n/a n/a 100,000 1-May-16 1-May-17 Supervision of Construction Works in Embu + Kitui Various Embu, Kitui 650,000 1-May-16 1-May-17 Supervision of Construction Works in Mombasa + Malindi Various Mombasa, Malindi 650,000 1-May-16 1-May-17 Supervision of Construction Works in Nakuru + Eldoret Various Nakuru, Eldoret 650,000 1-May-16 1-May-17 Works Drainage + Road Works Eldoret Roads/Footpaths and Drainage Eldoret 9,720,046 1-Jul-16 1-Jan-18 Drainage + Road Works Embu Roads/Footpaths and Drainage Embu 2,297,254 1-May-16 1-Aug-17 Drainage + Road Works Kitui Roads/Footpaths and Drainage Kitui 5,926,754 1-May-16 1-Aug-17 Drainage + Road Works Malindi Roads/Footpaths and Drainage Malindi 5,565,262 1-May-16 1-Aug-17 Drainage + Road Works Mombasa Roads/Footpaths and Drainage Mombasa 3,394,966 1-Jul-16 1-Jan-18 Drainage + Road Works Nakuru Roads/Footpaths and Drainage Nakuru 10,820,215 1-Jul-16 1-Jan-18 Floodlights Eldoret Floodlights Eldoret 365,522 1-Jul-16 1-Jan-17 Floodlights Kitui Floodlights Kitui 15,467 1-May-16 1-Aug-17 Floodlights Malindi Floodlights Malindi 20,880 1-May-16 1-Aug-17 Floodlights Mombasa Floodlights Mombasa 22,739 1-Jul-16 1-Jan-18 Floodlights Nakuru Floodlights Nakuru 286,456 1-Jul-16 1-Jan-18 Water and Sanitation Embu Water and Sanitation Embu 315,105 1-May-16 1-Aug-17 Water and Sanitation Kitui Water and Sanitation Kitui 1,587,849 1-May-16 1-Aug-17 Water and Sanitation Malindi Water and Sanitation Malindi 622,300 1-May-16 1-Aug-17 Water and Sanitation Mombasa Water and Sanitation Mombasa 724,678 1-Jul-16 1-Aug-17 Grand Total 43,835,492 14