Nepal - Third Water Supply and Sewerage Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-2862-NEP REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE KINGDOM OF NEPAL FOR THE THIRD WATER SUPPLY AND SEWERAGE PROJECT July 8, 1980 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.  CURRENCY EQUIVALENTS Currency Unit - Nepalese Rupee (NR) Since March 20, 1978 US$1.00 = NRs 12.00 NR 1.00 = US$0.08 NRs 100 = US$8.33 METRIC SYSTEM ABBREVIATIONS ha - hectare lcd - liter per capita per day ACRONYMS DHS - Department of Health Services EEC - European Economic Community LDD - Local Development Department MWPI - Ministry of Water, Power and Irrigation MHP - Ministry of Home Panchayat WSSB - Water Supply and Sewerage Board WSSD - Water Supply and Sewerage Department UNDP - United Nations Development Programme FINANCIAL YEAR July 16 - July 15  FOR OFFICIAL USE ONLY NEPAL THIRD WATER SUPPLY AND SEWERAGE PROJECT Credit and Project Summary Borrower: Kingdom of Nepal Beneficiary: Water Supply and Sewerage Board (WSSB) Amount: US$27.0 million Terms: Standard Onlending: The proceeds of the Credit would be relent by the Govern- ment to the WSSB at 3/4th of one percent interest per annum for 25 years, including five years grace. Project Description: The project would assist the Government to meet its goal of providing safe water supply to all the urban population by 1990. The five year project (FY1981-85) would (i) improve and extend water supply and sewerage works ini- tiated under the previous two projects, to further extend the supply hours and increase the number of persons served; (ii) upgrade and extend water supply systems in six addi- tional towns; and (iii) provide institutional support to the WSSB. After completion of the project, about 97% of the population in the Kathmandu Valley and Pokhara and 60% of the population in the additional towns would have access to 24-hour service of safe water. Consultant services would be provided to assist with complex design works, preparation of specifications and bidding documents as well as tender evaluation of major contracts and for general construction supervision. This technical assist- ance, support for the in-house training program and the prudent project implementation schedule reduce the risks of slow project implementation. The tariff levels would be revised to attain minimal standards of financial viabil- ity for WSSB while not exceeding the consumer's ability to pay. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost US$ Million Equivalent of Project: Component Local Foreign Total I. Water Supply 8.10 8.84 16.94 II. Sewerage 1.33 0.31 1.64 III. Vehicles, Tools, Equipment 0.03 0.45 0.48 IV. Engineering and Administration 1.05 1.71 2.76 V. Training and Future Project Preparation 0.06 0.59 0.65 Base Cost 10.57 11.90 22.47 VI. Contingencies Physical 1.53 1.55 3.08 Price 3.23 3.64 6.87 Subtotal 4.76 5.19 9.95 PROJECT COST 15.33 17.09 32.42 VII. Taxes and Duties 0.90 - 0.90 TOTAL PROJECT COST 16.23 17.09 33.32 Financing Plan: US$ Million Equivalent Local Foreign Total IDA 10.5 16.5 27.0 Government 5.7 - 5.7 UNDP 0.6 0.6 Total 16.2 17.1 33.3 Estimated IDA US$ Million Equivalent Disbursements: IDA FY 1981 1982 1983 1984 1985 1986 Annual 2.2 6.0 8.6 5.5 3.4 1.3 Cumulative 2.2 8.2 16.8 22.3 25.7 27.0 Rate of Return: 3%, based on incremental revenues only. Staff Appraisal Report: No. 2925-NEP, dated May 29, 1980. Map: IBRD No. 14959  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE KINGDOM OF NEPAL FOR THE THIRD WATER SUPPLY AND SEWERAGE PROJECT 1. I submit the following report and recommendation on a proposed devel- opment credit to the Kingdom of Nepal for the equivalent of US$27.0 million on standard IDA terms to help finance the Third Water Supply and Sewerage Project. The Government would provide its own contribution to the project in the form of an equity contribution to the Water Supply and Sewerage Board (WSSB) and relend the NRs equivalent of the IDA Credit at 3/4th of one percent interest per annum for twenty five years, including five years grace. The United Nations Development Programme (UNDP) is expected to provide about US$0.65 million equivalent on a grant basis for technical assistance and training requirements of the project (para 37). PART I - THE ECONOMY I/ 2. The most recent economic report entitled "Nepal-Development Perform- ance and Prospects" (Report No. 2692-NEP) was distributed to the Executive Directors on December 14, 1979. The principal findings of the Report are described below. Country data are shown in Annex I. 3. Nepal is one of the least developed countries in the world. Per capita income is estimated at $110 (1977), and health and education standards are well below the average of South Asia: life expectancy at birth is about 45 years, infant mortality 150 per thousand, and adult literacy 19%. The population, growing at the rate of 2.6% a year, is estimated to be 13.3 million (1978). Over 90% of the population live in rural areas. 4. The economy of Nepal centers around agriculture. It accounts for more than 60% of GDP and 75% of merchandise exports, and provides a liveli- hood to over 90% of the population. In addition, most of the industrial sector, which comprises about 9% of GDP, processes agricultural raw materials. About 25% of total rural incomes are estimated to arise from non-agricultural activities. Cottage industries are one of the most important of these, engaging over 1 million people and comprising about 6% of GDP. They provide basic consumer goods in the many small, isolated markets where such goods would otherwise not be available. 5. As a small open economy, Nepal is highly susceptible to develop- ments in India. The Terai, which lies along the Indian border, has close and virtually free trading links with India, and accounts for about 60% of 1/ Part I of this Report is substantially the same as Part I of the Report and Recommendation of the President to the Executive Directors on a proposed credit to the Kingdom of Nepal for the Community Forestry Dev- elopment and Training Project (Report No. P-2763-NEP of April 2, 1980).  - 2 - the country's GDP, and about 40% of the population. The Kathmandu Valley, the administrative and commercial center, is closely linked with the Terai, but at significant transportation costs. The rest of the country, the Hills and Mountains, is almost inaccessible and consists of a large number of fragmented markets. 6. When Nepal adopted economic and social development as major govern- ment objectives in the early 1950s, there was virtually no economic or administrative infrastructure. Initial development efforts were necessarily concentrated on establishing a foundation for future development. During these early stages, it was inevitable that growth would remain slow and that there would be little if any increase in per capita income. However, the Fifth Development Plan (1975/76 - 1979/80) was to be a turning point; it was believed that the country was poised for more rapid growth on the order of 4 - 5% annually. The level of investment was to increase substantially and its focus to shift towards the more directly productive sectors and the social services. 7. Public investment performance has been excellent; development expenditures have grown at over 15% annually in real terms and the Government has been relatively successful in reorienting investment away from the trans- port sector towards agriculture and the social services. However, few of the other Fifth Plan objectives have been achieved. The GDP growth rate is likely to average only 2.4% per year, mainly because of poor agricultural performance. Little progress has been made in increasing agricultural productivity and agricultural production increased at an annual rate of only 0.7% during the first four years of the Fifth Plan. Growth in other sectors has been mixed, with the poor agricultural performance limiting the growth of agro-related industries. Production in several large industries including jute goods, sugar, leather goods, and cement have increased but most Fifth Plan targets will go unmet. In the services sector, tourism has been dynamic, but it still only contributes about 1% of GDP. 8. The economic situation deteriorated markedly in 1979/80 and is now worse than it has been in many years. The poor monsoon in South Asia in 1979 has had a severe impact on Nepal's foodgrain production in 1979/80. Both the maize and rice crops suffered major losses, and as a result, agricultural production is likely to decline by 4%. The non-agricultural sector continues to be constrained by supply bottleneck problems and delays in the preparation of new development projects in the public sector. This sector's growth is expected to be only about 4% in 1979/80, which when combined with the decline in agriculture, gives a 1% decline in GDP. 9. The disappointing overall performance of the domestic economy during the Fifth Plan period has been accompanied by a widening trade deficit. Imports have grown under the impetus of the Government's development program while the trend in export earnings has been sluggish due to declining rice exports. The deterioration on the trade account has been partly covered by increased tourism receipts and remittances from Gurkhas (soldiers from Nepal serving in the British or Indian armies). Foreign assistance in the form of grants and concessionary financing have generally ensured that the overall balance remained in surplus. Foreign exchange reserves in July 1979 were  - 3- equivalent to nearly nine months of imports. However, the shortfall in food- grain production in 1979/80 could have a serious impact on Nepal's external position, since not only will rice exports further decline, but foodgrains will have to be imported, this all coming at,a time when Nepal's oil bill is rising steeply. The Government has therefore appealed to the international community for emergency assistance in obtaining foodgrains and for help in distributing food to the shortfall areas; by the end of January 1980 donors had committed 33,000 tons of foodgrains. 10. On March 31, 1978, the authorities replaced a complex system of mul- tiple exchange rates and exchange and trade restrictions with a dual exchange system. Transactions with India, which were virtually free from restrictions, were unaffected by these changes. New treaties on trade and transit with India were also concluded in March 1978. Under the dual exchange rate system, Nepal maintains a basic rate of Rs 12.00 per dollar, with a second, premium rate applying for all merchandise trade with third countries except for imports of certain development goods. On February 21, 1980, the premium rate was changed from Rs 16.00 per dollar to Rs 14.00 per dollar, but the exemption from the second rate was restricted to only imports of petrol and petroleum products, cement and chemical fertilizers. These exchange rate adjustments involved an appreciation of about 14% for exports to third countries and an overall appre- ciation of about 2% for imports from third countries. But this was partly offset by (i) withdrawing the 12% duty on exports of raw jute; and (ii) raising import duties on a wide range of imports from third countries. However, with the exception of raw jute exports, earnings in domestic currency from exports to third countries will decline, leading to a possible shift of some exports to India. The overall trade balance is likely to be adversely affected by the recent measures. 11. The poor long-run performance of the economy is chiefly due to the failure of agricultural production to keep pace with population growth. Over the period 1967-77, foodgrain production grew at an average annual rate of only 1.5%. Increases in the area under cultivation account for almost all of this, since average yields rose by only 0.1% annually. Although poor monsoons have adversely affected agricultural production, the more fundamental reason is the failure to more fully exploit the irrigation infrastructure. In the past, insufficient attention has been paid to bringing water down to the farm level and this has been compounded by inadequate support services such as extension and research, timely supplies of improved seed and fertilizer and other inputs, credit and farm-to-market roads. However, recent major irriga- tion projects financed by IDA and the Asian Development Bank are addressing these problems by taking more comprehensive and integrated approaches. 12. In the Hills and Mountains, which contain only one-third of the country' s agricultural land and yet have nearly two-thirds of the population, population pressures have pushed cultivation up steep hillsides and onto marginal land; average yields have actually declined. Population density on agricultural land in these areas is higher than in Bangladesh. Malnutrition is acute; food production meets only two-thirds of minimum subsistence needs. Because they have little to trade except their labor, one-third of the inha- bitants of these Hill areas migrate seasonally to the Terai plains and northern India for food and work. Since the early sixties, an estimated 400,000 have migrated pe-rmanently, and there are signs that this exodus is accelerating.  13. The seriousness of the economic and social problems confronting Nepal calls for a well focused development strategy that directly addresses the difficult choices to be made. The revised Fundamental Principles of the Sixth Plan recently adopted by the Government and endorsed by members of the Nepal Aid Group at its January 31, 1980 meeting, is an important milestone in the Government's efforts to evolve a program that meets Nepal's needs. The highest priority is placed on developing agriculture, including revitalization of Hill food production to meet local requirements since significant agro- climatic specialization between the Hills and Terai is feasible only in the longer run. At the same time, since land holdings in the Hills are too small to generate much more than subsistence needs, programs will be started to encourage diversification into other activities such as small-scale and cottage industries to supplement Hill incomes. For the Terai, the strategy is to continue efforts to realize the Terai's considerable potential for increasing production of foodgrains and cash crops. The irrigation infrastructure is to be more fully utilized and improvements to extension services and associated inputs concentrated on those areas with irrigation facilities. Rural electri- fication is seen as an important element in providing for increased production in rural areas. Reafforestation programs are given priority in order to provide fuelwood and fodder as well as to reduce soil erosion. 14. While these efforts in the directly productive sectors merit urgent attention, Nepal faces similar challenges in developing its human resources. Although curbing population growth requires major actions, selective programs in education and health can greatly assist population planning as well as alleviate human suffering and lay the basis for future increases in productiv- ity. The Government's strategy recognises that the approach must be selective since programs for meeting basic needs generally have only a long-term impact on manpower development but divert resources away from activities more directly and immediately related to production. Increasing foodgrains production will meet the major need of improved nutrition. Better and more readily available supplies of drinking water and fuelwood will meet other needs, while also freeing labor currently spent in their collection. Basic health facilities are to be expanded through integrated community health posts, while in educa- tion, stress is placed on improving the quality of primary and adult vocational education. Family planning programs are to be stepped up. The other basic need to be met in rural areas is improved transport, and the Sixth Plan will include programs to improve trails, tracks, and suspension bridges. 15. For Nepal to establish a basis for more rapid and sustained growth, the structure of its economy will need to change since its present dependence on agriculture limits the economy's overall growth potential to about 4% per year. Tourism offers perhaps the best near-term potential for increased foreign exchange earnings; however, efforts are needed to reduce its capital intensity, strengthen linkages with other local industries and extend its benefits beyond the Kathmandu Valley. Hydropower also offers some possibil- ities, but neither it nor tourism will ever be substantial generators of employment. In the long run, Nepal must diversify and develop its indus- trial sector. Obviously, efforts in this sector must be on a highly selective basis. The multiplicity and complexity of the constraints to industrial development, including the lack of natural resources and skilled labor force,  Nepal's small domestic market and landlocked position,will nullify any general- ized approach. Public enterprises need to operate more efficiently, village and cottage industries should be promoted. Beyond this, joint ventures with India, for example, as in cement production, may be attractive. The precon- ditions for industrialization must be established in the near future or there is a danger that Nepal will always be struggling to move its economy beyond subsistence. These include providing financial incentives, research and extension services on the technical, financial and marketing aspects of enter- prise, and the upgrading of manpower skills in the areas where Nepal may have a comparative advantage. 16. Nepal has made significant progress in mobilizing domestic resources to support its development efforts, considering the extreme poverty, low degree of monetization, and fragmented nature of the economy. Revenue grew at 16% a year in current terms between 1969/70 and 1978/79, while as a percentage of GDP it increased from 5% in 1969/70 to about 9% in 1978/79. Over the same period, the Government was able to maintain savings on current account in excess of 2% of GDP, a good achievement for a country in Nepal's economic position. However, this excellent record is now in jeopardy. Revenues from income and land taxes declined in 1978/79 and although total revenues grew by 14%, the bulk of the increase came from taxes on international trade as a result of higher imports. No real growth in total revenues is expected during 1979/80, after allowing for inflation. This slowdown reflects not only the weak economy in 1979/80, but also the impact on the tax system of the political difficulties facing Nepal. While only limited scope exists for discretionary tax measures, there is a potential for increased tax revenues from agriculture, particularly in the Terai. Revenues could be increased through improving the tax machinery, and the government has approved, in principle, various admin- istrative reforms in this direction, including the formation of a Special Revenue Service. 17. Foreign assistance has been a decisive factor in Nepal's development. During the Fifth Plan, foreign financing equalled about 45% of development expenditures. In view of the limited prospects for increased domestic resource mobilization, foreign financing requirements may be about 60% of planned Sixth Plan development expenditures, which amount to about Rs 10 billion or over $800 million at 1979/80 prices. Aid commitments need to average about $225 million annually during 1980-82 compared with $160 million during 1977-79. However, even this level of foreign assistance would not provide the Government with sufficient resources to meet increasing consumption demands. Additional aid, either through financing a higher proportion of total project costs or in the form of commodity assistance, could provide budgetary support to meet pressing recurrent expenditure requirements, particularly in the social sectors. In order to assist in the overall coordination of financial and technical assistance efforts, the Nepal Aid Group was formed in 1976. The Group has met three times at plenary meetings under the chairmanship of the Bank to discuss overall external assistance needs as well as at the local level in Kathmandu to discuss and coordinate strategy. At the latest plenary meeting, which was held in Paris on January 31, 1980, and was attended by representatives from eight countries and six international organizations, Nepal received aid indications exceeding US$200 million equivalent. 18. Although foreign aid commitments and disbursements grew by over 25% annually during the Fifth Plan period, only 40% of disbursements included  -6- in the Government's budget were from foreign borrowing, the remainder being grants. As of December 31, 1978, official foreign debt outstanding was only $88 million, of which $75 million was due to multilateral agencies. These loans were obtained on a highly concessional basis and the grant element of total aid remains in excess of 90%. As a result, debt service payments were only US$3.1 million during 1978/79, equivalent to less than 2% of exports of goods and services. Medium-term prospects are also good; by 1981/82 total service on existing debt is expected to amount to only US$5.1 million, still less than 2% of projected goods and services exports. PART II - BANK GROUP OPERATIONS IN NEPAL 19. Bank Group operations in Nepal began in FY70 with an IDA credit of US$1.7 million equivalent for a telecommunications project. Since then, 20 additional credits have been approved, bringing total IDA assistance to Nepal to US$234.4 million equivalent, net of cancellations. In view of Nepal's many development needs, IDA assistance has been for projects in a wide variety of sectors. Six of these sectors account for 83% of IDA credits by amount: agriculture (US$75.0 million for 5 projects), power (US$40.8 million for 1 project); telecommunications (US$21.7 million for 3 projects); highways (US$19.2 million for 2 projects); water supply and sewerage (US$19.8 million for 2 projects), and rural development (US$19.0 million for 2 projects). The remaining US$38.9 million of IDA assistance has been for one project in each of the areas of settlement, technical education, tourism, technical assistance, forestry and industrial development finance. The proposed credit would be the first in FY81, bringing the total amount of IDA assistance to Nepal to US$261.4 million equivalent, net of cancellations. No Bank loans have been made to Nepal. IFC made its first investment in Nepal (US$3.1 million) in a hotel project in Kathmandu in FY75. Annex II contains a summary statement of Bank Group operations as of May 31, 1980, and notes on the execution of ongoing IDA projects. It shows certain delays in the implementation of these projects, particularly during the initial periods. These delays have been largely due to Nepal's limited technical and managerial capabilities. In order to assist Nepal in coping with this constraint, considerable technical assistance is being given by Bank Group staff, including the Resident Mission in Kathmandu. As a result, improvement in the rate of disbursements is being realized. During FY1978, US$11.4 million equivalent were disbursed compared to US$12.8 million equivalent disbursed during the entire previous seven years; disburse- ments during FY1979 indicated a further improvement, disbursing a further US$18.2 million equivalent. Disbursements through the first eleven months of FY1980 amounted to US$19.5 million. 20. Bank Group lending to Nepal has so far been at a modest level com- pared to the country's need for external assistance. The international com- munity has shown considerable interest in Nepal's economic development and, to date, shortage of funds has not been a bottleneck. The main constraint on the utilization of increased aid has been Nepal's limited absorptive capacity, affecting the pace of project preparation and implementation. The Bank is assisting the Government in project preparation through the Technical Assis- tance Credit and by acting as Executing Agency for a number of technical  - 7 - assistance projects in the current UNDP Five-Year Program. The Bank Group has also addressed the problem of absorptive capacity through its role in organizing the Aid Group for Nepal (para 17). 21. The Bank Group's current strategy places major emphasis upon the directly-productive sectors (particularly agriculture) and the development of complementary infrastructure, including feeder roads (particularly con- necting the Hills to the Terai), communications and hydroelectric power. Preparation of projects in agriculture/irrigation, Hill food production, cottage/small industry, and power is underway. PART III - WATER SUPPLY AND SANITATION SECTOR IN NEPAL 22. The water supply and sanitation sector in Nepal is still in an early stage of development. Of the total estimated population of 13.3 million (1978), only about 10% enjoy access to safe water through house connections or standpipes. Due to insufficient sources, inadequate storage and distribu- tion capacity, and extensive leakage and wastage, most of the piped systems are only able to provide water intermittently and service is generally re- stricted to a few hours a day. In some urban areas, coverage is as high as 80% (of which about 70% through standpipes), while in rural areas it is only about 6% (all standpipes). The population which is not served by piped sys- tems uses springs, ponds, canals, streams and rivers, which are not protected and which frequently have high levels of pollution. The overall average level of consumption is only about 45 liters per capita per day (lcd). Due to the long distances often involved from source to homestead in rural areas, water use is of necessity reduced to a bare minimum. Sanitation is unsatisfactory and only Kathmandu and the neighboring city of Bhaktapur have water-borne sewerage systems, both of which are being rehabilitated. The old combined sewerage system in Kathmandu was established around 1800, but due to lack of adequate maintenance, became virtually non-operational. The existing cover- age is about 9% of the population of these two cities, or about 5% of the total urban population. In larger towns in the provinces, less than 20% of the population has some type of latrine facilities, whereas practically no sanitation facilities exist in smaller towns and in rural areas. Drainage systems, much needed in view of the heavy rain during the monsoon, exist only in a few towns. 23. There are three main Government agencies operating in the sector: (a) Water Supply and Sewerage Board (WSSB), formed in 1973 under the Ministry of Water, Power and Irrigation (MWPI), is the Government's executing agency for the two IDA assisted Water Supply and Sewerage Projects (Credit No. 470-NEP of May 8, 1974, US$7.8 million equivalent, plus Supplementary Credit No. 470-1 of May 27, 1977, US$4.0 million equivalent, and Credit No. 704-NEP of May 27, 1977, US$8.0 million equivalent). WSSB is presently responsible for the construction and operation of the facilities in the Kathmandu Valley, Pokhara, Biratnagar and Birganj, with services to about 480,000 of the 565,000 inhabitants. It  - 8 - is intended that WSSB gradually assume responsibility for the urban water and sanitation sector in communities with a population of more than 10,000 inhabitants. Frequently, fringe villages in surrounding areas also fall under its authority. WSSB carries out planning, design and con- struction of works within its areas of responsibility and continues to operate the completed systems. (b) Water Supply and Sewerage Department (WSSD), also under MWPI, is responsible for the water supply and sanitation sector in communities with populations between 1,500 to 10,000. In discharging its responsibilities, it carries out planning, design and construction of systems and normally hands them over for operation to the respective local government (panchayat). In case the community does not have the expertise or the funds for operating its system, WSSD assumes the responsibility of operating it. (c) Local Development Department (LDD) was created in 1971 under the Ministry of Home Panchayat (MHP), to serve rural communities with a population below 1,500. It carries out planning, design and construction of water supply and sanitation systems, but transfers the operation of the completed systems to the respective panchayats. 24. In light of the International Drinking Water and Sanitation Decade, the Government has established a ten-year plan (1981-90) for sector develop- ment. Utilizing the agencies described above, the Government expects to reach the following goals by 1990: (i) provide water supply services to all the urban population; and (ii) provide at least one reliable source of water supply in each rural community, covering about 65% of the rural popu- lation. The overall population coverage would be about 68% by 1990. WSSB is expected to continue to take over additional urban systems so that before the end of the decade it would operate all 22 urban water systems. With respect to rural water supply, about 2,250 piped systems in the Hills and Mountains and about 35,000 shallow tubewells in the Terai would need to be constructed. WSSD is expected to construct all medium size systems and about half the shallow tubewells, and LDD all small size systems and the remaining shallow tubewells. In addition to providing sanitation facilities in urban areas through WSSB, the Government plans to promote and coordinate environmental sanitation activities through the Department of Health Services (DHS). The immediate objective is to promote appreciation of the importance of sanitary disposal of waste water, excreta and solid wastes through educating and motivating school authorities, government departments and local communities. Similarly, WSSD and LDD plans to develop latrine construction programs in collaboration with panchayats. The United Nations Development Programme (UNDP) Global Project on low cost sanitation, for which the Bank is execut- ing agency, is establishing two demonstration projects in Nepal for improving sanitation in urban environments. 25. The funds required to cover the ten year plan are estimated at US$162 million in 1980 prices, US$59 million for the urban sub-sector and  - 9 - US$103 million for the rural sub-sector. In the past, HMG's investments in the sector have been low compared with the overall development expenditures, although the sector's share of social service investments has increased to reasonable levels. To meet the goals of the ten-year plan, however, invest- ment levels must be increased considerably, from about 3% of total develop- ment expenditures to about 7%. 26. Development of the water supply and sewerage sector faces three major constraints: manpower, supply of materials and finances. It will only be possible to overcome gradually the shortage of manpower through continuous and patient training efforts. WSSB, assisted by technical advisors, has pre- pared a training program and the proposed third project would provide facil- ities for its implementation. In addition, the new Institute of Engineering, assisted under the Technical Education Project (Credit No. 772-NEP), has introduced graduate courses for engineers, with the first diploma level class to graduate in 1981. The timely supply of material has in the past been a problem due to Nepal's geographical remoteness. However through the two previous IDA-assisted projects, WSSB has gained experience in dealing with this matter effectively through appropriate packaging of procurement contracts. Sector financing continues to be problematic mainly because of the low level of average income. As a result, the sector relies heavily on the Government budget for development costs. WSSB has barely been able to cover its operat- ing expenses and there is virtually no cost recovery for the rural schemes. Fortunately, a number of donors have been assisting Nepal in the development of the sector and most of this assistance has been provided on a grant basis. Germany is providing assistance for the construction of a water supply system in Bhaktapur, while India and Switzerland have provided similar assistance to activities sponsored by WSSD and the LDD. The United Nations International Children's Emergency Fund has also assisted the latter with the construction of small schemes in rural areas. The United Kingdom has provided WSSB with a team of experts for technical assistance in engineering and financial admin- istration. UNDP provided financing for Master Plans for the development of water supply and sewerage facilities in the Kathmandu Valley, as well as water supply facilities in other towns. 27. The first IDA-assisted water supply and sewerage project provided for the extension and improvement to water sources, transmission and primary distribution in the Kathmandu Valley and Pokhara and a new trunk sewer and treatment facility to service Kathmandu and Lalitpur. The second project is for the most part a continuation of the first water supply and sewerage project, enabling WSSB to extend its water supply services to larger areas in the Kathmandu Valley and Pokhara, and to extend the sewerage collection system in the most densely populated core areas of Kathmandu and Lalitpur. Also included in the second project are works to increase the water pro- duction capacity and extend the distribution systems in two additional towns, Biratnagar and Birganj. Project implementation for the first project is about three years behind the original schedule, primarily due to WSSB's inexperience in the early years dealing with relatively complex contracts, which resulted in delays in letting contracts and assembling materials. This problem has since been overcome as WSSB gained more experience as reflected in good  - 10 - progress in implementation of the second project. At the time of the appraisal of the first project, it was recognized that works of the type and magnitude in the project had never before been executed in Nepal, and, there- fore, background data for cost estimation were not available. After receipt of bids for major contracts, cost estimates were revised upward from US$10.4 million equivalent to US$16.4 million equivalent. A supplementary credit of US$4.0 million equivalent was approved April 1977 to finance part of these cost overruns. All works of the first project are now expected to be com- pleted by December 1980 and those of the second by December 1981. A European Economic Community (EEC) Special Action Credit (US$3.0 million equivalent, No. 26-NEP) was approved in July 1979 to cover some of the Government's share of the local costs of these projects. PART IV - THE PROJECT 28. The Project was prepared by the Water Supply and Sewerage Board (WSSB) with assistance from consultants funded under the Second Water Supply and Sewerage Project (Credit No. 704-NEP) and the Bank Group's Project Prepar- ation Facility (No. PPF 092). It was appraised in January 1980, and negotia- tions were held in Washington in May 1980. The Nepalese delegation was led by Mr. P.P. Shah, Secretary, Ministry of Water, Power and Irrigation. The Staff Appraisal Report (No. 2925-NEP, dated May 29, 1980) is being distri- buted separately. A supplementary data sheet is attached as Annex III. Project Objectives 29. The proposed project would assist the Government to meet its goal of providing safe water supply to all the urban population by 1990 (Map No. IBRD 14959). Its principal objectives would be to: (i) augment water sources and improve and extend water supply systems in the four areas now covered by the second project; (ii) augment water sources and improve and extend water supply systems in six additional towns; (iii) extend the sewerage system in the Kathmandu Valley; and (iv) provide institutional support to the WSSB. Project Description 30. The five year project (FY1981-85) would comprise the following: (a) construction of tubewells, river/spring intakes, trans- mission mains, a new treatment plant, chlorination stations, primary network and secondary network distribution mains, and service reservoirs; (b) supply of about 17,500 water meters; (c) construction of trunk sewers, laterals, and overflow structures; (d) construction of operational buildings;  - 11 - (e) provision of about 150 manmonths of consultants services for preliminary and final engineering and supervision; (f) fellowships for overseas training and provision of equipment and facilities for the ongoing in-service training program; and (g) consultants services to begin preparation for projects in the remaining 10 towns to be assigned to WSSB. 31. On the basis of studies commissioned under the previous projects, it has been determined that the most feasible new sources of water for the Kathmandu Valley and Pokhara are groundwater. While additional surface sources are available, they are much further from the service area and thus more costly. Groundwater sources of relatively good quality are also avail- able in the Terai and would be exploited for the water supply systems in Biratnagar, Birganj, Bhairawa, and Janakpur. The towns in the Hills just north of the Terai (Butwal, Dharan, and Retauda), would continue to rely on river and spring sources. The basic design criteria of the project works have been kept at the most modest appropriate technical level. The choices of water sources and service standards have been determined to be least cost solutions, amounting to about US$20 equivalent per capita for the major towns where project works are largely extensions to systems under implementation and to about US$42 equivalent per capita in the six provincial towns where project works include basic facilities such as source works and transmission mains. For some parts of the systems, components such as transmission mains and tubewells have been designed to be able to utilize the full capacity of the respective sources beyond the estimated 1990 demands. This additional investment is justified as the marginal incremental cost is small compared to the cost of additions which would undoubtedly be needed after 1990. The water supply systems are planned to enable 24 hour service, with service reservoirs expanded to at least three hours storage capacity at peak hour flows. Organization and Implementation 32. WSSB would be directly responsible for the design of secondary net- works, chlorination stations and all operational buildings and would assume overall responsibility for overall project implementation and supervision of project works. Although it is adequately staffed to carry out its operational requirements, WSSB needs the assistance of consultants for more complex design work, preparation of specifications and bidding documents, as well as tender evaluation for major contracts and for general construction supervision. The consultants would also provide specialist assistance in tubewell drilling. Since early appointment of the consultants is important for timely project implementation, completion of arrangements satisfactory to the Association to employ these consultants would be a condition of effectiveness (Section 7.01(a) of the draft Development Credit Agreement (DCA)). 33. WSSB's organization and staffing are satisfactory. The position of Project In-Charge, the chief executive officer of WSSB, would continue to be filled by a person with qualifications and experience appropriate for that position (Section 4.02(b) of the draft DCA). WSSB would take over the assets  - 12 - and operations of the existing water supply systems in the six towns to be added to WSSB's responsibility (Bhairawa, Butwal, Dharan, Hetauda, Janakpur, and Nepalganj) as equity, free and clear of indebtedness; the takeover of such assets and operations would be completed prior to commencement of physi- cal project works for each respective town (Section 4.05 of the draft DCA). The Government and WSSB would also acquire all land and secure all rights of way for project works in accordance with the agreed project construction schedule (Section 3.05 of the draft DCA). 34. WSSB has established a connection and metering program which takes into account the projected availability of additional water, the willingness of the public to take connections, and WSSB's capability of carrying out con- nections and installing meters. Details of the program are outlined in a letter supplementary to the draft DCA. The FY1980-85 program calls for the number of water connections to increase by about 29,000, with a further 15,000 existing unmetered connections to be metered, bringing the total number of metered connections to nearly 62,000, up from about 18,000 at the beginning of FY1980. The number of sewer connections would increase from about 1,000 to about 10,500. 35. Water regulations, satisfactory to the Association, have been issued which, inter alia, allow WSSB to work in an orderly fashion, to enter premises for the purpose of carrying out construction and maintenance work, and to charge for its services. WSSB is presently in the process of amending some of the technical stipulations of the regulations in order to bring them into line with current country requirements. Draft sewerage regulations, satisfac- tory to the Association, have been prepared by WSSB. As these will form the legal basis for all aspects of operation of the sewerage sytems, as well as for levying of sewerage charges, it would be a condition of credit effective- ness that sewerage regulations applicable to WSSB's operations which are satisfactory to the Association have come into force (Section 7.01(b) of the draft DCA). WSSB would make available to the Association for comment drafts of any rules or regulations proposed to be issued by or relating to WSSB (Section 4.04(d) of the draft DCA). Training 36. Experts financed by the Overseas Development Administration of the United Kingdom have been working with WSSB since mid 1974 and have provided assistance to upgrade WSSB staff capabilities in general engineering, project management, finance, leak detection, metering, water production and laboratory work. The United Nations Development Programme (UNDP) is expected to provide funding to support the ongoing in-house training program through the provision of additional training materials and equipment and fellowships for overseas training for senior level staff. Cost and Financing 37. The total cost of the project is estimated at about US$33.3 million equivalent, including contingencies and about US$0.9 million equivalent of taxes and duties. Water supply and sewerage works would represent about 79% and 8% respectively of project cost (net of taxes and duties). Cost estimates  - 13 - are based on tender prices obtained for similar works between October and December 1979 and include physical contingencies of 10% for common services, buildings, and equipment, 15% for service reservoirs and primary networks, and 20% for secondary networks, tubewell schemes and sewerage works. Price con- tingencies have been calculated assuming that price escalations would closely follow those estimated for the Indian economy: 10% for 1980, 8% for 1981, 7% for 1982 and 1983, and 5% for 1984 and thereafter. The foreign exchange cost is estimated at about US$17.1 million equivalent or about 53% of total project cost (net of taxes and duties). The proposed IDA Credit would cover all the foreign exchange cost (excluding the financing for training and future project preparation to be provided by UNDP) and about US$10.5 million equivalent of local costs, amounting to about 83% of total project cost (net of taxes and duties). UNDP would provide about US$0.65 million equivalent on a grant basis. The Government would contribute the remaining US$5.7 million equivalent as equity. The Nepalese rupee equivalent of the IDA Credit would be relent to WSSB under a subsidiary loan agreement, satisfactory to the Association (Sec- tion 3.01(c) of the draft DCA). The cost of individual consultant's services was calculated at about US$10,000 per manmonth including salary, costs, fees, international travel and subsistence, based on recruitment experience under the previous projects. Financial Aspects 38. Under the EEC Special Action Credit Agreement and amended Develop- ment Credit Agreements for the previous projects, WSSB is required to achieve a rate of return of at least 2% on average net fixed assets in operation for the FYs 1980-1982, rising gradually in subsequent fiscal years to 6% in FY1987 and thereafter. A water tariff increase of 60% in FY1975 enabled WSSB to realize small surpluses in FYs 1976-79, but prospects for achieving a positive rate of return have deteriorated due to the delay in implementing the first project, slow progress in connecting new customers due to low service avail- abilities, and reluctance to adjust tariffs before improved service was pro- vided. A tariff study was carried out under the second project. Taking into account the revised pace of work, the study concluded that in order to achieve the previously agreed rate of return, tariffs would have to be set at levels which require customers to spend at least 5% of average family income for water (and higher for the lower income groups), levels much higher than for similar water supply systems in the subcontinent and higher than what we consider affordable in Nepal. It is proposed, therefore, to revise tariffs so as to obtain levels representing about 3% of average family income. As part of a phased program to reach this level, tariffs would initially be set to cover at least WSSB's annual cash operating expenses and depreciation in FY1981 and FY1982 (Section 4.06(a) of the draft DCA). This would require about a 45% tariff increase in FY1981, which would be a condition of effectiveness (Section 7.01 (c) of the draft DCA). Starting in FY1983, rates, including tariffs for water supply and sewerage and Government payments for standpipe water, would be set to cover WSSB's annual cash operating expenses, and amor- tization and interest on debt or depreciation, whichever is higher (Section 4.06(b) the draft DCA). The sewerage charge, which would apply from the start of operations of the rehabilitated and extended system (expected end 1980), would be set at a level of at least 25% of the water charge in FY1981 and at a level of at least 50% of the water charge in FY1982 and thereafter (Section  - 14 - 4.04(c) of the draft DCA). A review of these financial targets would be made in FY1983, including the possibility of achieving at least modest positive rates of return after FY1983. As the price paid by consumers at the tariff level corresponding to 3% of family income would amount to only NRs 1.25 per cubic meter, compared to the average incremental cost of service of about NRs 2.36 for water sales only, WSSB intends to apply a block tariff structure which features a low cost block for the first 10 cubic meters per household per month, but to charge tariffs much closer to the average incremental cost of service for any additional consumption. 39. The payment for water supplied from standpipes would be made by the Government. It would be a condition of effectiveness that the Government had agreed with WSSB on the number of standpipes in the WSSB service area and had appropriated funds to pay all amounts due to WSSB as of end FY1980 on account of water consumed through these standpipes (Section 7.01(d) of the draft DCA). In the future, the Government would make timely payment for the total number of standpipes in WSSB supply areas and would annually establish its payment rate per standpipe at rates to be agreed with the Association (Section 4.04(b) of the draft DCA). On-Lending 40. Under the previous two projects, the proceeds of the IDA Credits were relent to WSSB at roughly the cost of capital prevailing in Nepal at that time (6% and 9% under the first and second projects respectively). Analysis of WSSB financial position and projections indicate that, even after full operation of the first project and achievement of the tariff levels men- tioned in para 38 above, WSSB would not be in a position to pay its full debt service under the first on-lending agreement before FY1983. The first subsi- diary loan agreement would therefore be amended as follows; (i) extending the grace period and deferring the first debt service payment until after June 30, 1981; (ii) setting the total annual debt service payments in FY1981 and FY1982 at levels not exceeding the amount of WSSB's annual depreciation; and (iii) amortizing the debt outstanding at end of FY1982 in 40 equal semi-annual installments of principal and interest commencing in FY1983. With tariffs set at levels which correspond to about 3% of average family income, WSSB revenues are estimated to be sufficient to cover only the obligations of the first two onlending agreements (as amended), plus amortization and a very low interest charge for the proposed third project. It is therefore proposed to relend the proceeds of the third IDA Credit to WSSB on terms and conditions similar to those of IDA, but with a 25 year repayment period, including five years grace. Execution of a subsidiary loan agreement, in form and substance satisfactory to the Association, would be a condition of credit effectiveness (Section 7.01(e) of the draft DCA). Procurement 41. Materials and equipment amounting to about US$11.8 million equi- valent would be purchased under the project. All major materials and equip- ment contracts, pipe materials, fittings, valves and water meters amounting to about US$10.6 million equivalent, would be awarded on the basis of inter- national competitive bidding (ICB) in accordance with IDA guidelines. Con- tracts of less than US$75,000 equivalent each, amounting to about US$1.2  - 15 - million equivalent, would be procured under Government local competitive bid- ding (LCB) procedures, which are satisfactory to the Association. Civil works contracts would amount to about US$16.9 million equivalent. Contracts for the construction of primary networks in Nepalganj and Janakpur, all secondary net- works and operational buildings, and other minor works not exceeding US$30,000 equivalent per contract (about 30% of the total value of civil works) would be awarded on the basis of LCB. All other contracts would be awarded on the basis of ICB. In the evaluation of bids, the standard domestic preferences would apply--15% on the c.i.f. price or the prevailing duty, whichever is lower, for equipment and 7.5% for civil works. Disbursement 42. Disbursement of funds would be on the following basis: (i) 100% of foreign expenditures and 40% of local expenditures for civil works; (ii) 100% of foreign expenditures for directly imported goods and equipment, 100% of local expenditures (ex-factory cost) for locally manufactured goods and 60% of local expenditures for other goods procured locally; and (iii) 100% of total expenditures for consultant services. Disbursements against civil works carried out by the contracts of less than US$30,000 equivalent would be made against statements of expenditure. The documentation would be retained by WSSB and made available for inspection by IDA representatives during the course of project supervision. Requests for disbursements against all other items would be fully documented. Advances drawn from the Project Preparation Facil- ity (PPF 092), with any service charge accrued thereon, would be repaid out of the proceeds of the proposed Credit as soon as it is declared effective. Accounting and Audit 43. The Government would cause WSSB to maintain records of its opera- tions and financial condition in accordance with sound accounting practices and would ensure that these accounts and financial statements would be audited by an independent auditor, acceptable to IDA, and furnished to the Association within six months of the close of the fiscal year; the audit report would be required to include a statement that funds disbursed against statements of expenditure had been used for the purpose for which they were provided (Sec- tions 4.01(a) and (c) of the draft DCA). The documents evidencing the expend- itures on account of which withdrawals are requested on the basis of state- ments of expenditure would be retained until one year after the closing date (Section 4.01(b) of the draft DCA). Benefits and Justification 44. With completion of the project, the population served in the project area would increase by about 28%, up from about 565,000 (1980) to about 720,000 (1985), representing 83% of the total population in the project area. Average consumption per capita is expected to increase from about 80 lcd to 105 lcd in the Kathmandu Valley and from about 60 lcd to 70 lcd in the other towns. It is also expected that 50% or more of the population served would be served by private house connections. In keeping with the Government policy to ensure the minimum level of safe water supply to the lower income groups, which would otherwise have to depend on unsafe and occasional sources of water, the number of standpipes in the provincial towns would also be increased. Sewerage  - 16 - service would be restored and extended for central areas of Kathmandu city and Lalitpur; the population served would nearly triple, up from about 25,000 (1980) to about 67,000 (1985). 45. The main benefits of the proposed project are not quantifiable - the improved health of the inhabitants of the project area and the further reduc- tion in the level of pollution in the Bagmati River. The provision of water systems will also release significant manpower now occupied in transporting water for more productive tasks. The improved environmental quality and health conditions would also benefit the tourism industry which is an important source of foreign exchange. A rate of return, based only on incremental revenues accruing to WSSB as the result of investments under the project and assuming tariff rates at about 3% of average family income, has been calculated to be about 3%. 46. The risk that project implementation may be delayed has been reduced through measures to improve WSSB's capabilities. Over the course of the last several years, WSSB and the local contracting industry have significantly improved their implementation capacity, gaining experience through working on the first two projects and working with the international consultants. Furthermore, in-house training is taking place for WSSB sub-professional staff, which will be expanded (para 36) and technical assistance from consultants (para 32) would also be provided under the project. It is also expected that future bid invitations should attract more competitive offers than in the past, particularly from India as many project works are reasonably close to the Indian border in the Terai. The risk that the tariff increases, sub- sequent to the initial 45% increase (para 38), may be delayed, and therefore the financial viability of WSSB impaired, is being addressed in the ongoing dialogue with the Government regarding project finance as well as the overall resource position of the Government in the Sixth Plan. PART V - LEGAL INSTRUMENTS AND AUTHORITY 47. The draft Development Credit Agreement between the Kingdom of Nepal and the Association and the Recommendation of the Committee provided for in Article V, Section l(d) of the Articles of Agreement, are being distributed to the Executive Directors separately. 48. Special conditions of the project are listed in Section III of Annex III. Special conditions of effectiveness are that: (i) WSSB had completed arrangements satisfactory to the Association for employing the engineering and supervision consultants (para 32); (ii) the Government had caused appro- priate sewerage regulations, satisfactory to the Association, to come into force (para 35); (iii) WSSB had increased tariffs by an average of 45% (para 38); (iv) the Government had appropriated funds to pay all amounts due to WSSB on account of water consumed through standpipes (para 39); and (v) a subsidiary loan agreement between the Government and WSSB, in form and substance satis- factory to the Association, had been executed (para 40). 49. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association.  - 17 - PART VI - RECOMMENDATION 50. I recommend that the Executive Directors approve the proposed credit. Robert S. McNamara President July 8, 1980 Attachments  -18 - Annex I TABLE 3A Page 1 of 5 sages NEPAL - SOCIAL INDICATORS DATA SHEET NEPAL REFERENCE GROUPS (WEIGHTED AVfRAGES LAND AREA (THOUSAND SO. KM.) - MOST RECENT ESTIMATE) E TOTAL 140.8 MOST RECENT LOW INCOME ISIDDLE INCOME AGRICULTURAL 40.1 1960 /b 1970 /b ESTIMATE /b ASIA & PACIFIC ASIA 4 PACIFIC GNP PER CAPITA (USS) 40.0 60.0 120.0 197.9 894.8 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 5.0 15.0 11.0 166.0 842.4 POPULATION AND VITAL STATISTICS POPULATION, MID-YEAR (MILLIONS) 9.3 11.4 13.6 URBAN POPULATION (PERCENT OF TOTAL) 3.1 3.9 4.8 20.8 39.1 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 21.0 STATIONARY POPULATION (MILLIONS) 46.0 YEAR STATIONARY POPULATION IS REACHED 2160 POPULATION DENSITY PER SQ. 104. 66.0 81.0 97.0 193.2 376.1 PER SQ. PM. AGRICULTURAL LAND 243.0 286.0 339.0 409.6 2350.4 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 40.3 42.0 42.4 42.0 40.4 15-64 YRS. 57.0 55.0 54.6 55.0 56.2 65 YRS. AND ABOVE 2.7 3.0 3.0 3.0 3.4 POPULATION GROWTH RATE (PERCENT) TOTAL 1.1 2.0 2.2 2.2 2.4 URBAN 6.5 4.3 5.0 3.9 4.1 CRUDE BIRTH RATE (PER THOUSAND) 46.0 45.0 45.0 37.4 28.7 CRUDE DEATH RATE (PER THOUSAND) 29.0 23.0 21.0 14.6 7.9 GROSS REPRODUCTION RATE 3.0 3.0 3.2 2.6 1.9 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. 37.4 138.8 USERS (PERCENT OF MARRIED WOMEN) .. 0. 7/c 4.3/c 15.6 39.0 FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 106.0 101.0 91.0 101.4 116.9 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 93.0 96.0 91.0 92.4 108.9 PROTEINS (GRAMS PER DAY) 50.0 51.0 48.0 49.8 60.3 OF WHICH ANIMAL AND PULSE 9.0 9.0 9.0 12.0 18.8 CHILD (AGES 1-4) MORTALITY RATE 35.0 27.0 23.0 17.9 5.3 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 36.0 41.0 43.0 50.8 63.0 INFANT MORTALITY RATE (PER THOUSAND) *- 152.Od .. .. 52.8 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 2.0 9.0 30.2 42.4 URBAN .. 53.0 81.0 66.0 62.1 RURAL .. .. 5.0 20.0 29.7 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. 1.0 1.0 17.7 52.8 URBAN .. 14.0 14.0 71.3 71.1 RURAL .. .. .. .. 42.4 POPULATION PER PHYSICIAN 72000.0 49770.0/e 35207.0/e 6322.7 4120.1 POPULATION PER NURSING PERSON .. 68320.O/e 51222.0 9459.0 2213.6 POPULATION PER HOSPITAL BED TOTAL 8060.0 6750.0 6289.0 1758.4 819.4 URBAN .. .. .. 502.9 RURAL .. .. .. 10524.1 ADMISSIONS PER HOSPITAL BED .. .. .. .. 28.8 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. 5.5 URBAN 5.4 .. RURAL .. .. AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. URBAN 2.0 .. .. RURAL .. .. .. ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. .. URBAN 30.2 .. .. RURAL .. .. ..  - 19 - Annex 1 Page 2 of 5 pages TABLE 3A NEPAL - SOCIAL INDICATORS DATA SHEET NEPAL REFERENCE GROUPS (WEIGHTED AVERAOES - MOST RECENT ESTIMATE)- MOST RECENT LOW INCOME MIDDLE INCOME 1960 Ab 1970 Ab ESTIMATE /b ASIA & PACIFIC ASIA & PACIFIC EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 10.0 26.0 71.0 80.9 98.6 MALE 19.0 44.0 108.0 94.3 99.2 FEMALE 1.0 8.0 32.0 66.7 97.7 SECONDARY: TOTAL 6.0 9.0 14.0 26.6 55.5 MALE 11.0 15.0 23.0 34.8 60.7 FEMALE 2.0 3.0 5.0 18.2 49.9 VOCATIONAL ENROL. (X OF SECONDARY) 0.2 6.0 22.Ojf 9.9 13.7 PUPIL-TEACHER RATIO PRIMARY 33.0 22.0 31.0 41.1 34.6 SECONDARY 32.0 21.0 28.0 20.5 28.5 ADULT LITERACY RATE (PERCENT) 9.0