Tanzania - Dar Es Salaam Sewerage and Sanitation Project

Document of EL % t-; I j The World Bank FOR OFFICIAL USE ONLY Report No. P-3423-TA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT IN AN AMOUNT EQUIVALENT TO US$22.5 MILLION TO THE UNITED REPUBLIC OF TANZANIA FOR A DAR ES SALAAM SEWERAGE AND SANITATION PROJECT November 29, 1982 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 = Tanzania Shilling (TSh) TSh 1.00 = US$0.11 US$1.00 = TSh 9.40 US$1.00 = SDR 0.91 (As the Tanzania Shilling is officially valued in relation to a basket of the currencies of Tanzania's trading partners, the USDollar/Tanzania Shilling exchange rate is subject to change. Conversions in this report were made at US$1.00 to TSh 9.40 which was the level set in the most recent exchange rate adjustment in March 1982. The USDollar/SDR exchange rate used in this report is that of July 31, 1982.) ABBREVIATIONS AND ACRONYMS ARDHI - Ministry of Lands, Housing and Urban Development DCC - Dar es Salaam City Council DCS - Dar es Salaam Water Corporation Sole DSSD - Dar es Salaam Sewerage and Sanitation Department MWE - Ministry of Water and Energy NUWA - National Urban Water Authority PMO - Prime Minister's Office TANESCO - Tanzania Electric Supply Company, Limited FISCAL YEAR Government - July 1 to June 30  - i - FOR OFFICIAL USE ONLY DAR ES SALAAM SEWERAGE AND SANITATION PROJECT Credit and Project Summary Borrower: United Republic of Tanzania . Amount: SDR 20.6 million (US$22.5 million equivalent) Terms: Standard Relending Terms; US$12.8 million would be onlent to DCC under a Transfer Agreement for 25 years including 5 years of grace at an interest rate of 11% p.a. Project Description: The project would be the first phase of a long-range program to rehabilitate the existing sewerage system and to develop basic sanitation services in Dar es Salaam. It would focus on low-cost, on-plot sanitation and the development of the services, institutions, and management practices required for improved sewerage and sanitation. The project would finance construction of pit latrines and replacement or conversion of existing on-plot sanitation units; improvement of the Dar es Salaam City Countil (DCC) pit emptying service; establishment and development of a Sewerage and Sanitation Department (DSSD) in DCC; provision of offices, workshops, equipment and spare parts; and technical assistance and training both for DSSD and the National Urban Water Authority. Benefits: The project would improve sewerage and sanitation services in Dar es Salaam and strengthen urban water supply services throughout the country. Risks: The major project risk is that DSSD may not develop promptly enough as an efficient organization capable of collecting adequate charges for sewerage and sanitation services. The project has been designed to minimize this risk by including considerable training and technical assistance. Future projects would attempt to maintain the momentum of institutional development in the sector. This document has a restricted distribution and may be used by recipients only in the performance of their offMcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Local Foreign Total Project Costs:1 US$ million