Jordan - Zarqa - Ruseifa Water Supply and Sewerage Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4049a-JO STAFF APPRAISAL REPORT ON THE HASHEMITE KINGDOM OF JORDAN ZARQA/RUSEIFA WATER SUPPLY AND SEWERAGE PROJT"'rn October 5, 1982 Water Supply and Sewerage Division Europe, Middle East and North Africa Regional Office 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 autborization.  CURRENCY EQUIVALENTS Currency Unit Jordan Dinar (JD) JD 0.3465 = US$ 1.00 1/ JD 1.00 = US$ 2.89 JD 1.00 = 1,000 fils MEASURES AND EQUIVALENTS Kilometer (km) = 0.62 mile Square Kilometer (km2) = 0.386 square mile Hectare (ha) = 2.47 acres Millimeter (mm) = 0.03937 inches Centimeter (cm) = 0.3937 inches Meter (m) = 39.37 inches Cubic Meter (m3) = 264 US Gallons Cubic Meters per second (m3/sec) = 22,800 US Gallons per day Liter (1) = 0.264 US Gallons Liters per second (1/sec) - 22,800 US Gallons per day Liters per capita per day (lcd) = 0.264 US Gallons per capita per day Milligram per liter (mg/l) = 1.0 part per million ABBREVIATIONS AND ACRONYMS GOJ = Government of Jordan NPC = National Planning Council NRA = Natural Resources Authority WSC Water Supply Corporation AWSA = Amman Water and Sewerage Authority JVA = Jordan Valley Authority JVC = Jordan Valley Commission USAID = United States Agency for International Development KfW = Kreditanstalt fuer Wiederaufbau IDB = Islamic Development Bank EGMC = East Ghor Main Canal ABBREVIATIONS ft = foot min = minute lcd liters per capita per day ppm = part per million m = meter sec = second m3 = cubic meters kg kilogram mm = millimeter gm = gram km kilometer kw = kilowatt MCM = million cubic meters kwh kilowatt-hour BOD5 = five day biochemical oxygen demand GOJ'S FISCAL YEAR JANUARY 1 - DECEMBER 31 1/ as of March 15, 1982  FOR OFFICIAL USE ONLY HASHEMITE KINGDOM OF JORDAN STAFF APPRAISAL REPORT ON THE ZARQA/RUSEIFA WATER SUPPLY AND SEWERAGE PROJECT TABLE OF CONTENTS Page No. I. THE WATER SUPPLY AND SEWERAGE SECTOR .............................. 1 Background ................. I Water Resources ............... 1 Sewerage .......... 2 Sector Organization ........................................... 3 Constraints to Sector Development ................................. 4 Performance in Previous IDA Credits ................ ................ 4 Bank Objectives for the Sector .................................... 5 II. PROJECT AREA ................................................. 6 General Features ................................................. 6 Existing Water Supply ............................................. 6 Sewage Disposal ................................................. 8 Stormwater Drainage ................................................ 8 III. DEMAND ASPECTS .................................................. 9 Population .................................................. 9 Forecast of Demand ................................................ 9 Forecast of Sewage Flows and BOD5 Loads ......................... 10 IV. THE PROPOSED PROJECT .............................................. 12 Project Objectives ................................................ 12 Project Description ............................................... 12 Cost Estimates ................................................. 14 Project Financing Plan ............................................ 16 Status of Engineering ............................................. 17 Procurement .................................................. 18 Disbursements ................................................. 18 Project Implementation ............................................ .19 Land Acquisition and Access ....................................... 19 Monitoring Criteria ............................................... 19 This report is based on the findings of an appraisal mission to Jordan in March 1982. Mission members included John W. Huang (Mission Leader), Johann Renkewitz and Xavier Legrain (World Bank), and Mrs. Jocelyne Jakob (consultant). 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.  TABLE OF CONTENTS (continued) Page No. V. ThE BENEFICIARY........................................ 20 Introduction ..................................--- ... 20 Organization and Management ................................... 20 Management Assistance ...........................O........ .. 21 Staffing ....... - ...... 21 Training ........,....... ..... ..=.= 22 Billing and Collection ... .......... 22 Accounting ........................ ......... 23 Audit .......................................... 24 Insurance ..... 24 VI. FINANCE............................................. 25 Past and Present Position. . . - .., 25 Tariff - Cost Recovery ........................ . . -.......... 25 Sewerage ........ 25 Water Services ..............................= 26 Agreements Reached . ...... 27 Financing Plan ................................ 27 Future Financial Performance . . . 28 VII. ECONOMICAL AND SOCIAL ASPECTS .................. ......... 30 Health Benefits and Environmental Impact ...................= 30 Least Cost Solution ....... ........ 30 Economic Analysis .........................= 30 Institution Building ............................32........... 32 Risks................................................. 32 VIII. AGREEMENTS REACHED AND RECOMMENDATIONS ......... -......... -. 33  LIST OF ANNEXES Annex I - Schematic Diagram of Wat2c Sources for Greater Amman Area Annex 2 - Population, Water Production and Sales, Connections (Past and Forecast) - Forecast of Population, Water Production and Consumption Annex 3 - Sewage Flows, BOD and Suspended Solids Loading - Sewage Flows and BOD5 Loads Annex 4 - Details of Project Components Annex 5 - Cost Estimate - Cost Estimate (by Project Component) - Cost Estimate - Project Components Proposed to be Financed by the Bank Annex 6 - Estimated Schedule of Disbursements Annex 7 - Project Implementation Schedule - Proposed Target Dates Annex 8 - Monitoring Indicators Annex 9 - Water Supply Corporation Organization Chart - Zarqa/Ruseifa Branch Proposed Organization Chart Annex 10 - Water Supply Corporation Water and Sewerage Tariffs Annex 11 - Water Supply Corporation Financing Plan 1982 - 1988 Annex 12 - Major Assumption Used in Financial Projection - Income and Expenditure Statement, Zarqa and Ruseifa Water Operations - Income and Expenditure Statement, Zarqa and Ruseifa Sewerage Operations - Consolidated Income and Expenditure Statement, Zarqa and Ruseifa Water and Sewerage Operations (I) - Consolidated Income and Expenditure Statement, Zarqa and Ruseifa Water and Sewerage Operations (II) - Balance Sheet, Zarqa and Ruseifa Water and Sewerage Operations - Cash Flow Statement, Zarqa and Ruseifa Water and Sewerage Operations - Income and Expenditure Statement, Water Supply Corporation - Cash Flow Statement, Water Supply Corporation - Balance Sheet, Water Supply Corporation Annex 13 - Economic Analysis - Water: Summary of Costs and Volume Sold - Economic Analysis - Water: Average Incremental Cost Annex 14 - Economic Analysis - Sewerage: Costs and Volumes Annex 15 - Financial Advisor - Terms of Reference Annex 16 - Tariff Study - Terms of Reference Annex 17 - Management and Organization Study - Draft Terms of Reference Annex 18 - Technical Advisor - Draft Terms of Reference Annex 19 - Selected Documents and Data Available in the Project File  MAPS IBRD Map No: 16424 Sewerage and Stormwater Drainage 16425 Water Supply Distribution System 16426 Land Value 16427 Water Supply Corporation -- Water Distribution System  HASHEMIIE KINGDOM OF JORDAN ZARQA/RUSEIFA WATER SUPPLY AND SEWLRAGE PROJECT I. THE WATER SUPPLY AND SEWERAGE SECTOR Background 1.01 Jordan is a semi-desert country with a land area of about 81,000 sq. km. Its only access to the sea is along a 25 km stretch of coastline in the soutn on which is situated the seaport of Aqaba. The country may be divided into four geographical regions: (i) the Jordan Valley which varies in width from 4 to 16 km and stretches from Lake Tiberias to the Dead Sea falling a total of 200 m over its 124 km length to an elevation of 400 m below sea level; (ii) the Highland region where ground elevations rise to above 1,000 m thus providing a more temperate climate to the region; (iii) the Wadi Araba region, which stretches from the Dead Sea scuth almost to the Gulf of Aqaba; and (iv) the Desert regions which cover the remainder of the country. Administratively the country is divided into five governorates: Amman, Irbid, Balqa, Karak and Ma'an. 1.02 Results of the latest census (November 1979) conservatively estimated the population in the country at 2.15 million and growing at a rate of 3.5% per annum. About 91% of the population is estimated to live in the northwestern quadrant of the country with the largest concentration in the area of Amman, the capital city of the country. Jordan is rapidly becoming an urban nation. In 1979 over 62% of the population lived within the political boundaries of urban areas with population of 10,000 or greater, increasing from about 56% in 1961. Population in urban centers is expected to continue to grow at a rate higher than the national average rate for some time. Water Resources 1.03 Water is one of Jordan's scarcest resources. 80% of the country is steppe and desert, where water is only minimally available. Most of the municipal water supply systems and industry in Jordan presently depend upon groundwater anc springs. Although some surface water sources exist on the nortnern border, in the Jordan Valley, and in some of the wadis flowing into the Jordan River, exploitation of surface water for municipal and industrial water supply has not so far occurred to any great extent due to sporadic flow patterns, proprietary use for irrigation, and relatively long distances from population centers. 1.04 Water resources in Jordan originate mainly from precipitation within the country. This provides surface flow as well as recharges ground water supplies. Average rainfall in Jordan is about 50 mm/year in the desert areas rising up to 600 mm/year in the highlands. Average annual volume of rainfall  is estimated to be 8,300 million cubic meters (MGM), but with high evaporation losses, the net yield is only about 1,100 MCM, of which 880 MCM is surface water and 220 MCM is groundwater. Studies by consultants have conclusively pointed out that Jordan's water resources will not be adequate to fully meet the potential future demands for irrigation, municipal and industrial uses, parti>11arly in north-west Jordan. The Government's present water policy gives priority to municipal and industrial use while at the same time it exerc_ses a high degree of water conservation through a steep increasing block rate tariff structure, and the use of return flow for agriculture. Recent efforts by the Government to provide water to major urban areas in Northwest Jordan are described in the following paragraph. 1.05 The Government's water projects to help relieve water shortage in the Amman, Zarqa, Ruseifa conurbation include the construction in 1979 of a 80 km pipeline to transport some 10 MGM per annum from groundwater sources in Azraq to Amman, and a proposed pipeline project (about 50 km in length against a pumping head of some 1,300 m) to transfer 45 MCM per annum from the East Ghor Main Canal (EGMC) to the Greater Amman area including Zarqa and Ruseifa, with a pump storage scheme at Wadi Arab to augment dry weather flow in the canal. The return flow will drain into the King Talal Reservoir and then be released to a lower section of the EGMC. The EGMC water carrier project is being financed by the United States Agency for International Development and the Arab Fund for Economic and Social Development. Tenders for this work have already been awarded. A schematic diagram of this system is shown in Annex 1. At the same time, the Government plans to protect the King Talal Reservoir (49 MCM capacity) for irrigation purposes. To achieve this aim, it is preparing a project to increase the impounded capacity of tnis reservoir by about 30 MCM, and taking active measures to reduce pollution in the Zarqa River, which receives wastewater discharges from Aiman and the Zarqa/Ruseifa area. Other sources for development could include the Maqarin Dam to harness the water resources of the Yarmouk River, transporting water from the Euphrates River, and desalination of underground brackish water, all of which are going to be very costly. Sewerage 1.06 Domestic and industrial wastewaters in Jordan are treated and disposed of primarily in on-site facilities. Only three central municipal sewage treatment facilities exist at present, the largest serving Amman, and smaller installations serving Salt and Aqaba. In rural areas, human wastes are generally disposed of in pit latrines and privies serving individual housing units or groups of units. In most urban areas, household cesspits or septic tanks are commonly used. Liquid effluents are discharged into surrounding soil via open-jointed pipes or openings in pit walls. Accumulated sludge, following varying degrees of anaerobic digestion, is pumped out by municipal or private tank trucks for disposal in approved dumping areas. Industrial wastewater is often discharged into nearby streams or ponds, with little or no treatment. Jordan has recently issued regulations (Industrial Effluent Standard 202) requiring industries to treat their effluent to a high degree of purity before discharge to a water course or to cesspools in areas where groundwater is used for municipal purposes. Enforcement of these regulations has been entrusted to the Ministry of Trade and Industry.  - 3 - 1.07 Of the three cities which at present have sewage collection systems, Amman has a treatment plant which utilizes the activated sludge process; Salt operates aerated lagoons; and Aqaba uses only primary treatment with stabilization ponds under planning. The three systems serve a user population of about 350,000 covering about 18/o of the total Jordanian population. Other communities (towns and villages) with piped water systems have their wastes treated in septic tanks, cesspools and other similar facilities, and they account for about 60% of the total population. The remaining 22% of the population use pit privies and latrines or have no system at all. 1.08 Rapid growth in urbanization, rising standards of living, and extensive but uncoordinated land development have caused individual wastewater disposal facilities to become inadequate in many large urban centers. In cities such as Zarqa and Ruseifa, the soil is no longer capable of disposing of the increasing amount of effluents from cesspools and septic tanks: these have to be pumped out regularly to prevent overflows. As the cost of septage pumping is very high, residents frequently empty sullage water into streets to relieve the load on their cesspools, an act which is subject to municipal fine. Overflows from cesspools occur when maintenance is lacking, giving rise to serious health hazards. Severe outbreaks of cholera have occurred in Jordan, the latest in 1981, although the extent that these can be attributed to poor sewage disposal has not been established. 1.09 Serious contamination occurs in groundwater in the upper aquifer underlying communities using cesspools. While this groundwater is not used for potable water supply, the danger of this polluted water entering potable water mains during periods of depressurization (for whatever reason) exists. The quality of the groundwater in the lower aquifer, which is principally used for potable water supply, has not been impaired. Sector Organization 1.10 The Natural Resources Authority (NRA) has, in principle, overall responsibility for water resources studies and planning throughout Jordan. Responsibility for community water supply and sewerage is at present divided between the Water Supply Corporation (WSC), the Amman Water and Sewerage Authority (AWSA), the Jordan Valley Authority (JVA), all three of which were created in 1973, and a number of larger municipalities. AWSA is responsible for water supply and sanitary and stormwater sewerage in the city ot Amman serving in 1981 some 650,000 people. JVA is responsible for development in the Jordan Valley and provides water supply to communities in the valley. WSC, in 1981, supplied and operated the water systems in some 350 large and small communities, and provided bulk water supply to some 432 communities which operated their own systems. WSC's charter also requires it to provide sewerage to communities as part of its service. Eight municipalities, including Zarqa and Ruseifa operated their own water systems with independent groundwater sources. The Government has recently announced its intention to have all municipality-run systems except Amman and those in the Jordan Valley managed by WSC. The process of taking over the municipality systems by WSC is already in progress and systems in the cities of Irbid, Madaba, Aqaba, Salt and Tafila have already been taken over. Takeover of the Zarqa and Ruseifa systems is scheduled for completion in January 1, 1983. This matter is dealt with in more detail in Chapter V.  1.11 Water Geve--pment activities are coordinated and assisted at the national leveL by the National Planning Council (NPC) which is the central planning authority of the country. With growing demand for the country's critically scarce water resources, and the perceived need for inter-basin water transfer, additional co-ordination at an execution level of water development efforts of the three major water agencies becomes desirable. NPC has requested advice from the Bank regarding the form and functions of a national water organization which would provide this coordination, as well as formulate policies and plans for equitable resource development, allocation and management, and the Bank has made recommendations to the Jordanian Government. Draft review copies of the proposed legislation for this organization have been submitted to interested agencies for comments. The establishment of this national water organization has been included in the current five-year plan (1981-85). Constraints to Sector Development 1.12 While water supply and sanitation services are relatively well developed in Amman, and concrete plans for further improvement have already been formulated, these services are still deficient in most other parts of the country. To assist the Government to formulate a plan for the development of these services, the Bank has agreed to the Government request to undertake a sector study which will identify the water supply needs of communities outside Amman, assess the strategy to develop available water resources in the country to meet these needs as well as other competing needs, establish general recommendations on appropriate means for wastewater disposal, and formulate and recommend a feasible investment program. Timing for the study is tentatively scheduled for FY 1983. Performance in Previous IDA Credits 1.13 The Bank Group involvement in the water supply and sewerage sect-r was initiated in 1961 and has continued through IDA's participation in financing the following water supply and sewerage projects: (a) Credit 18-JO, 1961: US$1.5 million for financing foreign exchange costs for improving and augmenting the Amman water supply. Total project cost was US$3.5 million. (b) Credit 43-JO, 1963: US$2.5 million for financing water supply projects in Ramallah and El-Bira (Jerusalem), Nablus, Azraq, Irbid and Zarqa. Total project cost was US$4.0 million. (c) Credit 385-JO, 1973: US$8.7 million for financing 75% of the foreign exchange cost of extension and improvement of the Amman water supply and sewerage systems. Total project cost was US$13.9 million. (d) Credit 780-JO, 1978: US$14.0 million for financing expansion of Amman water supply and sewerage services. Total project cost is estimated at US$33.9 million.  - 5 - The first two projects were implemented prior to the separation of the West Bank almost twenty years ago. The two more recent projects were for expansion and improvement of water supply and sewerage services in Amman. Credit 385-JO was instrumental in building up the institutional capability of the then newly formed Amman Water Supply and Sewerage Authority (AWSA) during a period of serious water shortage and high inflation. The completion report of this project noted that while substantial effort had been taken to ameliorate institutional problems, some inherent weaknesses, particularly in the financial department, still remained unresolved. This institutional development effort is continued in the follow-up project financed under Credit 780-JO, which is now near completion. Recent increases in operating costs due to high fuel prices have affected somewhat the financial performance of AWSA. However, this was rectified with the tariff increases which came into effect on April 1, 1982. AWSA is now a well established institution, and its performance can be expected to improve further with time. General performance of the technical aspects of the project has been good with contracts awarded on time at very competitive prices. Bank Objectives for the Sector 1.14 The Bank's objective in the sector is to continue to (i) help the Government to rationalize utilization of water resources, and (ii) develop the institutional and operational capabilities of major institutions to enable them to provide effective water supply and sewerage services to the urban and rural population in Jordan. The proposed water sector survey (para. 1.12) is part of the Bank's effort towards achieving the first objective. IDA's efforts on institutional development for AWSA in Amman have proved to be fruitful. The Bank will now focus its attention on WSC, another major institution in this sector. This institution will, in the near future, assume responsibilities for water supply, sanitary and stormwater sewerage for all municipalities outside of Amman and the Jordan Valley, as an effort by Government to centralize water supply responsibility to achieve economy of scale, as well as permitting greater freedom for more efficient distribution of water resources within WSC's service area. The technical assistance provided in the project will help strengthen the management of WSC and assist it to establish sound financial and tariff policies.  -6- II. PROJECT AREA General Features 2.01 The project area covers the adjoining cities of Zarqa and Ruseifa which are located about 20 km northeast of Amman. These cities rank second and fourth in size in Jordan and are included in the Greater Amman Region for planning purposes. The Zarqa/Ruseifa area is one of the principal industrial centers in Jordan. Major industries include breweries, soft drink bottling plants, food industries, weaving industries, phosphate production, tannery and various chemical industries. The two cities are linked to other parts of the country by a good system of highways, and a railway link exists with Aqaba, the only seaport of the country. 2.02 Households in the two cities have an average size of seven persons and are generally characterized as low and middle income families. About 60% to 70% of the households are owner-occupants. Based on an income survey in 1974 by the Royal Scientific Society and a more recent survey by consultants in 1980, the 1980 household income distribution for the two cities is estimated to be as follows: Percentile 1980 Household Monthly Income JD US$ Equiv. 20th 82 237 40th 107 309 60th 135 390 80th 205 592 Heads of households are mostly unskilled or semi-skilled workers employed in the construction industry, in local manufacturing industries, retail shops, the civil service, or at the army base. Existing Water Supply 2.03 Nearly the entire population of the two cities derives its water supply from the public water systems which are presently operated by the municipality departments but will be taken over shortly by WSC. There is no public standpipe supply: residents who do not have their own metered connections depend on the metered connections of their neighbors. A small number of the population, who lives at elevations higher than the water storage reservoirs, is supplied from municipality owned and private tank trucks. While water supply is available to most parts of the cities, water pressure is low. The distribution system does not reach many newly developed areas and these are now served by long temporary connections, most of which are laid above ground. The water supply distribution systems in both cities therefore need strengthening, and rehabilitation in some places, in order to cope with existing needs as well as future growth.  2.04 The present water supply comes from three wells in Zarqa and two in Ruseifa, and the total allowable extraction, estimated at about 28,000 m3/day, is adequate to meet the demand up to year 1986. The aquifer of these wells also provides water supply to industries. WSC plans to take over this industrial groundwater source and providing a supply to industry through the municipal systems. Demand in Zarqa/Ruseifa beyond 1986 will likely have to be met from new sources. The Government of Jordan is constructing a pipeline, pumping stations, and treatment facilities (with financial assistance from the United States Agency for International Development and the Arab Fund) to transport some 45 million cubic meters per year of water from the East Ghor Main Canal (EGMC) in the Jordan Valley (para. 1.05) to the Greater Amman area which includes Zarqa and Ruseifa. This project is expected to be completed in 1986 and will be linked to the Azraq water supply system, to which the Zarqa/Ruseifa system will be connected. The Yarmouk River which feeds the EGMC has a base flow of about 218 MCM per annum, and an average annual flow of about 400 MCM. The Government has confirmed that the flow in the EGMC will be adequate to sustain the supply to the Amman area with the proposed flood pumping arrangement at Wadi Arab. Electrical energy will be used for pumping, and the power requirements for the EGMC Carrier Project (estimated to be about 30 MW at full capacity) has been included in planned expansions for plants in Amman (264 MW to be added by 1984), and the Bank financed Fifth Power Project in Aqaba (260 MW) which provides also for power to be transmitted to Amman. Industrial water consumption may also be supplied from recycled wastewater. During loan negotiations assurance was obtained that Government will allocate sufficient water resources for the Zarqa/Ruseifa system to ensure prevailing water consumption levels. 2.05 The systems are at present managed by water departments of the two municipalities. The operations are governed by the National Municipal Ordinance, while the Municipal Council issues necessary administrative regulations and has responsibility for water rates. Present operation of the water supply systems in the two cities is deficient. Because of the absence of an adequate distribution system, long lengths of house services are constructed at the expense of house owners to obtain connections. Most of these lines are of easily corrodable material and are laid above or very close to ground surface, resulting in extensive leakage which the house owners have no incentive to repair, because the water is lost prior to metering. All services in both cities are metered, with unaccounted for water estimated at 46% of which about 15% is probably attributed to leakage and the remainder from improper or inaccurate meter readings and unauthorized connections or use. In Zarqa the meters are municipality-owned and are serviced in a workshop which can handle 25 to 30 meters per day. In Ruseifa, however, meters are owned by the customers and, only when a meter stops recording is the customer required to have it repaired at a private workshop. Privately owned meters are of inferior quality and not standardized in manufacture. During loan negotiations assurance was obtained that WSC will replace for the purpose of standardization all service water meters in Ruseifa, and will ensure that it has the right to inspect, repair and replace these meters by December 31, 1983 at the latest. Replacement of these meters as well as part of the municipality owned meters in Zarqa is envisaged in the project (para. 4.10).  -8- Sewage Disposal 2.06 All sewage in the two cities is at present disposed of in cesspools. The density of the population, coupled with the nature of the land, characterized by shallow soils underlain by rock of very limited permeability, not only make this method of sewage disposal no longer adequate but also give rise to serious health hazards. Newly constructed cesspools fill up in a relatively short period of time and begin to overflow if not pumped out periodically, causing very unsanitary conditions. 2.07 There are approximately 32,000 cesspools in the two municipalities. Cesspool emptying operation is carried out by eight municipality-owned tankers and some 50 private tankers to an approved dumping site about 25 km north-east of Zarqa. It is estimated that about 90,000 tanker trips are made in a year at a charge to consumers of JD 2.5 to JD 3.0 for municipality-operated tankers, and JD 3.0 to JD 5.0 for private tankers. Stormwater Drainage 2.08 No underground stormwater drainage system exists at present in the two cities. During rainfall, stormwater flows over streets and roads (which are provided with a good gradient because of the steep terrain) to wadis (natural watercourses), some of which still run through the limited undeveloped parts of the cities. Flooding occurs during rainstorms in low areas of the cities at the end of long watersheds which are improperly drained causing inconvenience, danger to life and property damage. While underground stormwater drainage in the majority of the streets and roads is not considered essential at this stage, the need to improve stormwater drainage in these lowlying frequently flooded areas is pressing.  -9- III. DEMAND ASPECTS Population 3.01 Population data for Zarqa and Ruseifa are obtained from the results of a national census conducted in November 1979 which estimated the populations of the two cities at 215,687 and 61,700 respectively. The census also reported that populations of the two cities had grown significantly in the past 20 years, with an average growth rate of 4.5% in Zarqa and nearly 13% in Ruseifa, the former growth supported by the presence of a large army base and the latter growth prompted largely by the development of a phosphate mine which provides one of the country's main sources of export. 3.02 Future growth is expected to continue due to the following factors: (i) the strong industrial base coupled with the potential for further indus- trial development, (ii) proximity to the capital city, (iii) presence of good communication links, (iv) availability of land for development, and (v) the Government's policy to improve infrastructural services in the two cities. The population in the two cities is expected to grow at a rate of 4.5% per annum from 1979 at least to 1989. Growth in Zarqa may moderate to around 3.5% per annum after 1989. Forecast of Demand 3.03 Present demand projections are based on measured production and sales in 1979 for Zarqa and in 1977 for Ruseifa for which reasonably accurate figures are available. Unaccounted for water is estimated to be about 47% in Zarqa and 39% in Ruseifa (average of 46% in the two cities). It is considered that of this only about 15% is from leakage, the remainder being due to incorrect meter readings and unauthorized usage. Normal annual increase in per capita production is assumed to be about 1.0 liter per capita per day (lcd), a figure which is considered reasonable and is supported by data in other similar cities of the region. In addition, consumers who are connected to the sewer system are assumed to have a one time increase of 15 lcd. The basis of the demand projections is summarized below: liters per Capita per day (l.c.d.) Zarga Ruseifa Year Sewered Non-Sewered Sewered Non-Sewered Consumers Consumers Consumers Consumers 1979 75 - 48 1982 - 78 - 51 1986 98 83 71 56 1990 103 88 76 61 1995 109 94 81 66 2000 114 99 87 72  - 10 - It is further assumed that unaccounted-for water will be reduced gradually to 30% in 1990 following takeover by WSC, and as a result of the institutional development efforts of the project to reduce waste and improve meter readings. The results of the demand analysis are shown in Annex 2. Forecast of Sewage Flows and BOD5 Loads 3.04 Domestic sewage flows are estimated from water use with reductions due to uses such as gardening and car washing and increased by an estimated amount of groundwater infiltration. The per capita sewage flow in the analy- sis is shown below; Liters per capita per day (l.c.d.) Zarga (including army base 1/) Ruseifa Water Sewage Infil- Total Water Sewage Infil- Total Use 2/ Flow tration Sewage Use I' Flow tration Sewage Flow Flow 1986 83 66 8 74 60 48 8 56 1990 88 70 8 78 65 51 8 59 1995 93 73 9 82 69 54 9 63 2000 97 77 9 86 74 58 9 67 3.05 There is no sewage flow at present in Zarqa and Ruseifa and measure- ments of sewage strength and pollution loads are therefore not possible. Reports on test samples collected in the Amman sewerage system indicate a per capita BOD5 (five day biochemical oxygen demand) of 60 grams per day, but these results are not conclusive because of difficulties in estimating actual per capita water use and suspected dumping of cesspool emptier contents into city manholes. For the purpose of forecasting BOD5 load, a per capita BOD5 load of 40 grams per day is used. This figure is more in line with values found in major cities in the region. In addition, the sewage treatment plant will be designed to treat also septage from cesspools used by the still- unconnected population. The BODs load contribution from this source is assumed to be 10 grams per capita per day. 3.06 The sewage flow and BOD5 load received at the proposed sewage treatment plant will build up over a period of six years (1986 to 1992), which is the time estimated to be required to complete the house plumbing for the roughly 30,000 connections provided in the project. To accelerate the use of the facilities it is envisaged that houseowners or residents in areas where 1/ Army base has separate water supply, but its sewage will be disposed of in the Zarqa/Ruseifa system 2/ Water use is based on 85% of per capita production.  - 11 - collection sewers have been constructed will be asked to convert their plumbing systems and be given dry connections with a line break as of 1985, a year before the sewage treatment plant is ready for service. These connections can then be completed speedily as soon as the treatment plant is put into service. WSC intends to notify the residents early in order that they can make arrangements to connect to the sewer system as soon as the sewers are ready and it is likely that the connection program can be further accelerated. These arrangements are covered in the provisions of WSG's sewage ordinance. During loan negotiations assurance was obtained from the Government that it would arrange for financial assistance if required to enable low income families in Zarqa and Ruseifa to be connected to the sewer system. Projected sewage flows and organic loadings are shown in Annex 3.  IV THE PROPOSED PROJECT Project Objectives 4.01 The project will provide the much needed improvement in water supply and will eliminate inadequate cesspools in Zarqa and Ruseifa. This should lead to general upgrading of health and environment of the two cities. The project will in addition help to alleviate pollution in the Zarqa River, thus resulting in better quality water in the King Talal Reservoir. 4.02 The project will also attempt to attain the important sectoral goals of improving the operating and financial performance of a major institution in this sector, and of achieving more efficient allocation and use of scarce resources through the introduction of appropriate pricing and management poli- cies. The technical assistance provided in the project will strengthen the management of WSC and a new organizational unit that will be set up to operate the Zarqa/Ruseifa system, and to help establish sound financial and tariff policies. Project Description 4.03 The water supply component of this project is the first phase of a staged program to strengthen the distribution system in existing populated areas of the two cities and to expand the distribution system to rapidly developing areas. In Zarqa these developing areas are principally south and west of the existing population center. In Ruseifa new development is expect- ed to be eastward and south of the old Amman - Zarqa highway and northward in the Jebel Al Shamali area, and north of the Musheirfeh area. Included in the project will be a 600mm supply line to connect the Zarqa and Ruseifa distribu- tion systems to the East Ghor Main Canal Water Carrier/Amman/Azraq pipeline in order to provide additional water supplies to meet the growing demands of the two cities. The improved networks are designed to meet the needs of the saturation population in the areas to be served, which is expected to be reached before 2020. The next phase of distribution works will be required between 1990 and 2000, when the distribution systems will be further expanded to new areas which are expected to continue to develop to the west of Zarqa and to the north of Ruseifa. 4.04 The sewerage component is also the first phase of a staged sewerage program and will serve 11 districts (subareas) out of the 21 districts into which the project area is divided. Served districts include the commercial centers and the more densely populated areas of the two cities with a total population in these areas of 288,000 in 1982, which is expected to increase to 324,300 in 1990 and 442,100 in 2000. 4.05 Under the project, sewage from the districts in Zarqa and Ruseifa will be collected by a system of sewers into trunk sewers. In Zarqa two trunk sewers ranging in diameter from 300 mm to 1,100 mm will be constructed, running northwards on the east and west of the city center. Sewage from the east trunk sewer will be pumped at the northeast corner of the city to the  - 13 - west trunk which continues northwards another 1.5 km to the proposed treatment works. A trunk sewer will be laid along the Zarqa River from Ruseifa and will convey sewage from the Ruseifa districts and industries located at the fringe of this city and Zarqa to the west Zarqa trunk sewer. The effluents from a number of industries will require pretreatment prior to discharge to the sewer system, and this will be enforced through the WSC Sewage Ordinance. 4.06 The trunk sewers will eventually also carry future sewage from other districts for which sewers are not yet provided through this project. They are sized to carry sewage flows from the two cities up to year 2020, i.e. for a 40 year design period. A present worth analysis comparing this with a two stage proposal with sewers at half the year 2020 capacity shows the two stage proposal to be more expensive for discount rates up to 13%. 4.07 The treatment plant, in view of the strength of the sewage, will consist of primary settling followed by biological treatment, which will upgrade the quality of the effluent so as to allow its use for irrigation in the Jordan Valley under controlled conditions. Sludge after thickening will be digested in heated anaerobic digestors. Gas from the digestors will be used to generate electricity for use in the plant, a measure which is found to be cost effective because of the high cost of energy in Jordan. 4.08 The stormwater drainage component will provide underground culverts and sewers in six low-lying heavily inhabited areas in Zarqa and one area in Ruseifa to relieve flooding which occurs annually in these areas. These areas also contain important road and highway intersections. The work comprises the construction of the principal stormwater drainage outlets in the two cities and serves to carry away rapidly the accumulated runoffs from higher parts of the respective watersheds. 4.09 Institutional development assistance will be provided in the project. There will be a component for training of WSC operating staff (para. 5.10). In addition, consultants will continue to be retained during the start-up of the treatment plant to provide hands-on training to plant operators. Experts to be funded from the project will be recruitea to assist in developing and implementing a public utility accounting system, to study the long term organizational needs of WSC, to recommend operating procedures and to help implement recommended organizational proposals. Consultants will be provided to work out water and sewerage tariff proposals for WSC and for the Zarqa/Ruseifa water supply and sewerage branch. 4.10 The project will also provide for the construction of a depot/workshop to serve as a base for WSC's Zarqa/Ruseifa operating crews and to carry out necessary maintenance work. Included in the workshop will be facilities for meter repair and testing. About 12,000 supply and production meters will be procured in the project. These will be used to replace many of the privately owned meters in Ruseifa which are found to be of poor construction and not functioning properly. In addition a number of defective meters in Zarqa also needs replacement. Operational equipment such as leakage detection devices, sewer cleaning equipment, trucks and tankers will also be procured in the project.  - 14 - 4.11 The project elements are listed in Annex 4 and shown on IBRD maps 16424 and 16425. The components are summarized below: (i) Water Supply Construction of about 133 km of trunk and distribution mains, and supply of 12,000 supply and production meters; (ii) Sewerage and Sewage Treatment Construction of about 364 km of trunk, subtrunk and collection sewers (including 30,000 house laterals) and force main, sewage pumping station and sewage treatment plant; (iii) Stormwater Drainage Construction of about 13.7 km of stormwater culverts; (iv) Buildings, Equipment and Vehicles Construction of maintenance workshop and procurement of vehicles and equipment requirea for operations; (v) Institutional Development Assistance Provision of experts and consultants to develop accounting system, conduct tariff study, and assist in organizational study, and training of WSC staff. Cost Estimates 4.12 Cost estimates for the project are detailed in Annex 5 and are summarized below:  - 15 - JD Million I US $ Million % of Local Foreign Total Local Foreign Total Project Cost Water Supply distribution & transmission 1.06 2.06 3.12 3.06 5.95 9.01 9.9 Sewage Treatment Plant 1.18 3.60 4.78 3.41 10.39 13.80 15.1 Sewage Pumping Station 0.07 0.18 0.25 0.21 0.52 0.73 0.8 Sewer trunk, subtrunk & Force Main 1.02 1.20 2.22 2.94 3.46 6.40 7.0 Collection sewers, laterals 4.04 4.38 8.42 11.66 12.63 24.29 26.7 Storm Drainage 0.58 0.62 1.20 1.66 1.80 3.46 3.8 Workshop and operating equip. 0.06 0.38 0.44 0.17 1.11 1.28 1.4 Construction Supervision 0.78 0.98 1.76 2.26 2.83 5.09 5.6 Managem't Services, Training 0.06 0.36 0.42 0.18 1.03 1.21 1.3 Land Acquisition 1.50 - 1.50 4.33 - 4.33 4.8 Base cost (Dec 82 prices) 10.35 13.76 24.11 29.88 39.72 69.60 76.4 Physical Contingencies 1.33 2.06 3.39 3.83 5.96 9.79 10.8 Price Contingencies 1.65 2.44 4.09 4.74 7.03 11.77 12.8 Total Cost (Current Prices) 13.33 18.26 31.59 38.45 52.71 91.16 100.0 Interest During Construct'n including Front End Fee 1.41 2.92 4.33 4.08 8.44 12.52 Total Financing Required 14.74 21.18 35.92 42.53 61.15 103.68 4.13 The cost estimates prepared by the consultant in the feasibility studies were based on construction costs and equipment prices procured under USAID financing. These were updated at appraisal using the results of recent competitive bidding for similar work undertaken by AWSA under Credit 780-JO and  - 16 - other work carried out by WSC. Base costs have been adjusted in the above table to reflect costs at the end of December 1982. Physical contingencies of 15% have been allowed on project costs (excluding land). To provide for price increases through the expected date of project completion the following rates for price contingencies have been used for both local and foreign cost components: 8.0% for 1982 and 1983, 7.5% for 1984, 7.0% for 1985 and 6.0% for 1986. The cost estimates do not include import duties and taxes as WSC is exempt from these. Project Financing Plan 4.14 A tentative Project financing plan is given below: Local Foreign Total % Requirements ------ US$ Million ----- Water Supply distribution & transmission 4.01 7.74 11.75 11.3 Sewerage treatment plant 4.53 13.60 18.13 17.5 Trunk sewers & pumping station 4.16 5.23 9.39 9.1 Collection sewers 15.88 17.24 33.12 31.9 Storm drainage 2.04 2.21 4.25 4.1 Workshop & operating equipment 0.22 1.43 1.65 1.6 Consultants (supervision) 3.04 3.89 6.93 6.7 Management services & trainings 0.24 1.37 1.61 1.5 Land 4.33 - 4.33 4.2 38.45 52.71 91.16 87.9 Interest during construction 4.08 8.44 12.52 12.1 including Front End Fee Total Financing required 42.53 61.15 103.68 100.0 Of which: Physical contingencies 3.83 5.96 9.79 Price contingencies 4.74 7.03 11.77 Financing Proposed Bank Loan - 17.00 17.00 16.4 USAID Financing 1/ - 15.00 15.00 14.5 KfW Financing 1/ - 14.43 14.43 13.9 TDB Financing - 7.80 7.80 7.5 Government's contributions 1/ 29.86 - 29.86 28.8 Government Loan Capital Charges 1/ 4.08 8.44 12.52 12.1 Customers' Contributions 7.07 - 7.07 6.8 Total 41.01 62.67 1/ 103.68 100.0 1/ The net amount of US$ 1.52 million in foreign currency financing results from local cost financing by other co-financiers according to their procurement guidelines over GOJ's foreign cost financing in the Bank and IDB financed components and interest during construction.  - 17 - 4.15 Project financing arrangements are well advanced. At NPC's invitation representatives of the co-financing institutions (United States Agency for International Development, Kreditanstalt fuer Wiederaufbau of the Federal Republic of Germany, and Islamic Development Bank) were present in Jordan at the time of the Bank's project appraisal to review project preparation and Lo identify components for their financing. The various components proposed to be financed by the different co-financers are shown on page 2 of Annex 5, and the components proposed to be financed by the Bank are further elaborated on page 3 of the Annex. During negotiations, the Project Financing Plan was confirmed by the Government. In view of the future debt of WSC, the Government contribution of JD 10.4 million (US$ 29.9 million) would be passed onto WSC in the form of equity. 4.16 The Bank loan would be made to the Government of Jordan (GOJ), which coordinates all foreign financing for public sector investments through NPC, on standard terms for Jordan, i.e., for 17 years including 4 years of grace. GOJ will onlend the Bank loan to WSC with a repayment period of 17 years including a 5 year grace period at a fixed interest rate substantially in line with that applicable to the loan, under a separate subsidiary loan agreement. These on-lending terms conform with the Government's general practice for on-lending to comparable public sector institutions in Jordan. WSC will bear the foreign exchange risk. Interest and other charges during the construction period over a maximum of five years and the front end fee will be added to the subsidiary loan and be paid for by GOJ. The execution of the subsidiary loan agreement related to the Bank loan shall be a condition of loan effectiveness. Furthermore, signing of loan agreements between the Government and the co-financiers for the agreed amounts would also be a condition for Bank loan effectiveness. Agreement was reached during negotiations that the Government would meet any project cost overruns. Status of Engineering 4.17 Consultant services for the preparation of design and contract docu- ments were provided under USAID assistance. The work is now essentially com- pleted with the exception of minor additional work required to update the design to include recent rapid development that has taken place in the two cities and to modify contracting documents to accomodate the procurement requirements of the various financing agencies. Funds for this remaining work will be provided under the USAID financed component of the project. The USAID financed project component will also be used to obtain foreign and local consultant services required for the supervision of the construction work. Additional consultant and expert services, totalling about 50 manmonths at an average manmonth cost of $11,200, including salary, costs, fees, international travel and subsistence, will be provided from the Bank-financed component to conduct the tariff and organization studies. For the entire project, altogether 380 manmonths of foreign consultant time at an estimated manmonth cost of $12,000, and 210 manmonths of local consultant time at an estimated manmonth cost of $6,000, will be required.  - 18 - Procurement 4.18 The physical project components to be financed by the Bank include the sewage treatment plant, collection sewers, sewer laterals and water distribu- tion pipes in 4 subareas, the workshop and consultant services. All major contracts financed by the Bank would be awarded on the basis of international competitive bidding in accordance with the Bank's Guidelines for procurement. Prequalification of bidders will be required for the sewage treatment plant contract because of the special nature of this work, and for other contracts expected to exceed US$ 10 million, in order to ensure that bidders have the required financial capabiLity to carry out the work. For all civil contracts expected to last more than one year, a price adjustment clause is considered to be essential. During negotiations, understanding was obtained from the Government and WSC that for civil works contracts financed by the Bank expected to last longer than 12 months, bid documents will allow inclusion of a price adjustment provision for major construction materials with administered prices. Provision would be made for other major materials to be procured within 12 months, or in a manner to be agreed between the Government and the Bank. For bid evaluation purposes, a 15% margin of preference or an amount equal to customs duties, whichever is lower, would be applied in the case of equipment manufactured in Jordan. Contracts for civil works, materials and equipment of less than JD 121,000 (US$ 350,000) aggregating to not more than JD 347,000 (US$ 1,000,000) would be awarded on the basis of local competitive bidding according to WSC's guidelines which were found by the appraisal mission to be acceptable to the Bank. Prior review of procurement documents by the Bank will be required for all contracts which are estimated to cost the equivalent of JD 347,000 (US$1,000,000) or more. Disbursements 4.19 The proposed Bank loan of US$ 17 million would be disbursed over a period of approximately six years as follows: 1. Sewage Treatment Plant 100% of foreign expenditures. and other workshop equip- 85% of expenditures for ment (US$ 8,400,000) locally procured items. Annex 4, items II(g), IV(a) 2. Civil Works 38% of total expenditures (US$ 6,400,000) Annex 4, items I(c), II(b) II(g), IV(a) 3. Consultant services 100% of foreign expenditures ((US$ 500,000) Annex 4, items V(c), V(d) 4. Unallocated (US$ 1,700,000) 4.20 The forecast disbursement schedule (Annex 6) is based on the Project Implementation Schedule and takes into consideration the standard disbursement profile for Jordan. Although there are some differences between the forecast schedule and the standard profile for Jordan, the differences are minor and  - 19 - are the result of advances in design and rather straightforward project imple- mentation. All disbursements will be made against fully documented expenditures. The loan closing date would be June 30, 1989. Project Implementation 4.21 The project would be executed in the years 1983 to 1988. WSC will be responsible for project execution and has agreed to set up a project manage- ment unit for this work. Early establishment of this unit and adequate staff- ing by experienced personnel in project work are essential to ensure success of project implementation. During loan negotiations, assurances were obtained from WSC that all key administrative and technical personnel for the project management unit will be employed not later than September 30, 1983. The setting up of this unit together with the appointment of the project manager will be a condition of effectiveness of the loan. Land Acquisition and Access 4.22 The land required for the sewage treatment plant, the sewage pumping station and part of the trunk sewers is on privately owned land presently used for agriculture. A law on Expropriation (Law No. 6 of 1980) exists which allows land to be expropriated against equitable compensation for projects giving public benefit. Entry can be made as soon as the application for expropriation is approved by the Council of Ministers, a process which usually takes about six months. WSC has already commenced taking active steps for land acquisition. No problem in gaining access to the land for construction purposes is expected. Monitoring Criteria 4.23 The proposed project implementation schedule is shown in Annex 7. This schedule includes construction activities as well as activities required for WSC's institutional development which form part of this project. Key indicators for the measurement of the technical, financial, institutional and training objectives for the project are shown in Annex 8. During negotiations the project implementation schedule and the key indicators were discussed with WSC and agreement on an acceptable schedule and set of key indicators was reached. These would serve as targets which WSC would strive to achieve. Assurance was obtained during negotiations that WSC will prepare quarterly progress reports on all aspects of project work and in sufficient detail to be reviewed by and discussed with the Bank, and that WSC will carry out promptly any agreed remedial actions resulting from the review. 4.24 Assurance was also obtained that, within six months following the closing date of the Loan, WSC will prepare and submit to the Bank a project completion report reviewing the planned objectives and the achievements of the project, including: costs and benefits derived; performance and contribution of all parties associated with project execution and system operation.  - 26 - V. THE BENEFICIARY Introduction 5.01 The Hashemite Kingdom of Jordan will be the Borrower of the proposed loan of US$ 17 million and will on-lend the loan to the Water Supply Corpora- tion (WSC) which has been designated as the project implementation agency as well as the agency responsible for the operation of the Zarqa/Ruseifa water supply and sewerage system. Presently the water supply activities of the two cities are carried out by the city municipal departments. Responsibility for WSC to carry out water supply and sewerage services in Zarqa and Ruseifa has already been assigned by the Prime Minister and takeover is scheduled to be completed by January 1, 1983. Organization and Management 5.02 WSC was established in 1973 under Temporary Law No. 56 as a Corpora- tion enjoying independent financial and administrative status reporting to an eight member Board of Directors, chaired by the Minister of Municipal and Rural affairs. The original function of WSC was to provide cities, villages and other population groups outside of Amman and the Jordan Valley with potable water supply, sanitary and stormwater drainage services through Water Councils to be overseen by WSC. Throughout the years this practice has changed, and WSC is now providing direct service to many municipalities, which it is empowered to do under Article 17 of Temporary Law No. 56, and providing bulk water supply to some larger municipalities. WSC's water supply distribution system is shown on IBRD Map 16427. As mentioned in para. 1.10 WSC is in the process of taking over the operation of these latter systems, as well as those that are operating with their own water sources such as Zarqa and Ruseifa. 5.03 The present organization of WSC is shown on page 1 of Annex 9. Operations of WSC are presently conducted through four regional offices (to be increased to five in the near future), one in each governorate of the country. While heads of regional offices report to WSC's Director General, they are also responsible informally to the governors of the respective governorates on matters relating to the provision of services. Reporting directly to the Director General are also eight WSC departments stationed in Amman - Administration, Finance, Design, Follow-up, Operation and Maintenance, Legal, General Inspection and Planning. In addition the Director General directly supervises the heads of project implementation units set up for large projects. The function of the Deputy Director General is not explicitly defined. He acts for the Director General in his absence and assumes other responsibilities assigned to him by the Director General. Currently, the WSC Director General is a new appointee from another organization, and the Deputy Director General is presently taking up most of the responsibility of day to day running of the organization. Up to now, planning and preparation of projects is being carried out by NPC for WSC. As an independent entity WSC should be expected to carry out this function on its own. WSC has just recently established a Planning Department, with the top two positions already filled. Development of this department will be followed up through the project monitoring system suggested in para. 4.23.  -21 - 5.04 For the operation of its future Zarqa/Ruseifa system, WSC plans to establish a management unit reporting initially to the regional office for Amman Governorate, to be upgraded to regional office status at a later date. Accounts for this operation will be kept and processed in Amman. The proposed organization chart for the Zarqa/Ruseifa Branch is shown on page 2 of Annex 9. The takeover by WSC and effective management of the Zarqa/Ruseifa water supply and sewerage operations are necessary to ensure achievement of anticipated project benefits, and this will be monitored as outlined in para. 4.23. Management Assistance 5.05 With WSC's increasing responsibilities and the expected organization- al growth made necessary to cope with these responsibilities, it is vital for WSC to re-examine and study how its organizational structure should be modi- fiea to meet the requirements brought about by these changes. This organiza- tional study would: (i) identify and define WSC's present and future role and responsibili- ties in the framework of national and sector goals, and propose in broad outline the Corporation's organization; (ii) develop detailed organization structures for all WSC's departments, regional and branch offices, and assess staffing needs; (iii) prepare job descriptions and statements of objectives for all mana- gerial positions; (iv) review personnel policies and procedures and recommend needed changes; (v) develop administrative procedures and reporting systems; and (vi) develop operating and maintenance procedures. The project will provide the services of a management and a technical expert who will assist in the execution of this work. The schedule for these activities was agreed during loan negotiations and will be monitored as outlined in para. 4.23. Staffing 5.06 The staff of WSC numbered about 1,200 in 1981 benore the takeover of other municipal systems, corresponding to about 20.8 employees per one thou- sand connections served by its distribution systems. This is due to the fact that WSC is operating water supply systems with a wide geographical spread and low population densities. The absorption of larger urban systems into WSC's operations in the near future should help reduce WSC's employee/connections served ratio. WSC's salary levels are comparable to those of the national airline company which are among the highest in the country, and pay levels should not therefore be a deterrent to increased productivity. It is consid- ered that by 1985 when WSC would have taken over the majority of the larger municipal operations, its employee/connections served ratio for water supply should fall to about 12.4 employees per thousand and is expected to continue to improve with time. The proposed organization study (para. 5.05(ii)) will address this issue.  - 22 - 5.07 The present municipality staff responsible for operating the Zarqa and Ruseifa water systems number 162 and 32 respectively, and correspond to 6.2 and 4.2 employees per one thousand connections served. These ratios are low, and coupled with unattractive municipal employee salary levels are partly responsible-for the present inadequate level of water supply service to the two cities. With takeover of the systems, WSC has the opportunity to select and retain only those municipality staff that are productive and to supplement this with its own staff or new recruits of good caliber. Together with higher salary levels improvement in service levels can possibly be achieved without any significant increase to the number of employees. 5.08 For the future Zarqa/Ruseifa sewerage operations the number of employees estimated to be required in 1986, when the system becomes operation- al, is 90. This number is expected to increase as more users are added to the system and is estimated to reach 150 in 1992 when the accelerated program for sewer connection ends. At that time the employee/connections served ratio should be about 4.1. 5.09 The major staff capability needs of WSC are in the managerial, engi- neering and accounting areas. Such skills are not easy to find in Jordan. In particular, experienced sewerage managers and operators are not easily available as sewerage operations are at present still very limited in the country. The training component of this project will partly address this issue. WSC staff employed in project implementation will also be able to gain useful knowledge of the systems as they are constructed, and training by con- sultants will be provided during system start-up (para. 5.10). Training 5.10 Training for WSC staff will be provided by the United States Agency for International Development (USAID). A sum of about US$ 200,000 has been allocated from project funds for the training of 12 managerial and profes- sional staff abroad and about 100 other operating staff at local training institutions. Excellent facilities exist at the Amman Polytechnic Institute which now provides training for up to 600 technicians per year in the mechan- ical (including hydraulics), chemical, electrical and civil engineering fields. Training in water supply and wastewater engineering is being planned and will be offered shortly. In addition, consultants will be retained during the start-up phase of the treatment plant to advise on sewerage and sewage treatment operations, and to provide "hands-on" training to plant operators. Accounting staff will also receive on-the-job training from the financial advisor to be recruited in the project (para. 5.15). Billing and Collection 5.11 WSC will take over the water systems in Zarqa and Ruseifa by January 1, 1983. Billing and collection will then be carried out by WSC. WSC is billing industries and large volume consumers on a monthly basis, and others on a two-month cycle. WSC recently signed an agreement with a computer service bureau, a subsidiary of a large bank, to have all transactions affect- ing the billing cycle including file maintenance performed by this bureau.  - 23 - The staff of this service bureau is experienced and the physical facilities are up-to-date. Billing programs for WSC have already been established and are presently being tested. According to a schedule, which was found realist- ic by the appraisal mission, billing for all of WSC's accounts will be per- formed by the service bureau by the end of 1982. 5.' Collection from private customers poses no difficulty. Bills for services provided to government agencies are also settled within a reasonable time. In the event that such bills become overdue, either the Minister of Rural Affairs and Municipalities for agencies under his supervision or the Minister of Finance for all other agencies can authorize payments from the operating budgets accounts of these agencies. In this way, bills are normally settled within 120 days after rendering. During negotiations, assurance was obtained from GOJ that it will continue to see to it that water/ sewer bills of government agencies will be settled within 120 days. Accounting 5.13 WSC's present accounting system follows the system prescribed for government agencies which is on a cash basis. Although all transactions are recorded properly and allow identification of expenditures by major cost categories, branch offices and projects, this system does not meet the accounting requirements for managing a public utility providing water and sewerage services throughout Jordan. WSC is aware of this deficiency and is considering steps to introduce a public utility accounting system that would be based on accrual accounting. Such a system would have to be operated in parallel with the government system, and this can be achieved through appro- priate coding. 5.14 Public utility accounting systems are presently being developed for computer use in neighboring countries. It should, therefore, not be too dif- ficult to adapt these to a system for WSC, which could become operational by the end of 1984. This new computer based accounting system will in future provide expeditiously data required for WSC's operations. Implementation and operation of this system would be carried out with the computer service bureau which handles WSC billing operation. This service bureau has sufficient capa- city both in manpower, as well as in hardware for operating the WSC accounting system. With this approach, WSC would be able to benefit from a staff of experienced programmers without having to devote sizable resources to estab- lish a computing department of its own initially. 5.15 As details and programs of an appropriate utility accounting system can be made available and because an experienced computer service bureau can be used, WSC would not have to retain the expensive services of consultants to design and thereafter to implement a new accounting system. Instead, engaging a financial advisor experienced in public utility accounting and management is more appropriate. WSC has already contacted prospective candidates and intends to have this position filled by January 1983.  - 24 - 5.16 WSC will over the next few years take over a number of municipal water and sewerage services. WSC's assets are already inventoried and some efforts were made at the time of takeover of the various systems to establish values at depreciated replacement costs. Whilst Aor part of these assets proper values have still to be determined the values of the remainder will only need confirmation. It is estimated that this valuation will be completed by the end of 1984, thus allowing its incorporation into the accounting sys- tem, which is now scheduled to become operational by January 1, 1985. Comple- tion of the valuation of the assets by December 31, 1984 and operation of the new accounting system by January 1, 1985 will be monitored through the project implementation reports. The accounting system will be set up in such a form that it will separate the activities of the various branch offices, including those of the proposed Zarqa/Ruseifa Project. Audit 5.17 Like all government agencies and government corporations whose investment program forms part of the government budget, WSC is subject to an interlinking system of expenditure controls and final audit by the Auditing Department. The apriori control by the agent of the Auditing Department as well as the one of the Ministry of Finance ensures that payments are made only against established budgets and that all existing rules and regulations have been observed. The final audit by the Auditing Department is an expost con- trol to ensure that all laws and regulations have been observed. 5.18 The Auditing Department is independent as it reports only to the Consultative Council (Parliament). Scope and direction of its audit differ from audits normally undertaken for public utilities. Also, the Auditing Department faces difficulties in recruiting qualified and experienced auditors that not only can audit the accounts established on the basis of an accrual system but also make recommendations concerning the accounting system itself. It therefore would be advisable that in future WSC's accounts be audited by auditors experienced in public utility accounting systems once sufficient progress has been made in implementing the public utility accounting system. During negotiations assurances were received from WSC that (i) from fiscal 1985 onwards WSC's accounts will be audited by auditors experienced in public utility accounting systems and acceptable to the Bank; (ii) that the audited financial statements including the auditors report will be received by the Bank within six months after the end of the fiscal year; and that (iii) for the intervening time, the Government Auditing Department would continue to audit WSC's account and WSC will forward to the Bank not later than six months after the end of the fiscal year, copies of the audited financial statements, as well as its audit report. Insurance 5.19 WSC carries insurance adequate to cover the risks of a public utili- ty. The policies are with a Jordanian insurance company and relate to work- man's compensation and third party liability of operating its vehicles. In view of the future expansion of WSC's operations, it would be appropriate that the extent of insurance coverage be assessed at least once a year. During negotiations agreement was obtained from WSC that it would assess annually the adequacy of its insurance coverage and make adjustments if necessary and forward such report to the Bank before the end of the calendar year.  - 25 - VI. FINANCE Past and Present Position 6.01 WSC's past and present financial position reflects its operations, which consist of providing water in bulk to municipalities and operating rural water systems and desert water wells. These rural water systems are operated by WSC on behalf of the Government, as part of its program to enhance living conditions in those areas. Unit production costs for some of these systems are up to ten times higher than those found in the urban agglomerations because of the lack of economies of scale. Tariffs in line with these costs would be prohibitively high and costs of these operations exceeding the corresponding revenues are covered by the Government. 6.02 Because of shortcomings in WSC's existing accounting system which is on a cash basis and follows the one prescribed for Government Agencies, only the results of the past three years (1979-1981) could be compiled with some degree of accuracy (Annex 12). These results have to be interpreted with caution and serve primarily statistical purposes. WSC's overall net cash flow including Government subsidies for rural areas was adequate to meet its opera- tional requirements and to provide some limited financing for works under construction. The Zarqa - Ruseifa municipal water systems achieved better results due to lower operating and capital costs associated with economies of scale, and a larger portion of new works were financed out of the net cash flow. 6.03 The low debt/equity ratio (WSC 15:85 in 1981 Zarqa/Ruseifa 10:90 in 1981) shows that a large portion of the assets was constructed with Government contributions . Although the municipalities of Zarqa/Ruseifa have over the years obtained a number of loans for their water systems, the amounts were small and their servicing will in future pose no difficulty. The increase in WSC's debt between 1979 and the end of 1981 is primarily due to four borrow- ings related to the construction of the Aqaba water system. Tariff - Cost Recovery 6.04 WSC's tariffs are subject to approval by the Council of Ministers. Annex 10 provides detailed information on existing tariffs. Whilst water tariffs for urban areas are in line with the cost of water supply services, cost of these services in rural and desert areas which cover a population of about 150,000 are supported by GOJ (para. 6.01). The structure of the water tariff is adequate with an average tariff for municipal areas estimated at JD. 0.205 per m3, after the last tariff increase in May 1982. Sewerage 6.05 WSC has a schedule of sewerage tariffs. However, these were set with little reference to current operating cost as to date WSC is not operating full scale sewerage facilities including treatment plants. This, will change in the future as WSC will not only operate the Zarqa/Ruseifa sewer and sewage disposal system but also those of Irbid, Jerash and Aqaba, which are either being built or where construction is about to start.  - 26 - 6.06 Existing laws provide that, once a municipality has taken the deci- sion to construct sewerage, landlords must contribute to its cost by paying for 20 years a tax of 4% on the annual rental value of the property which is based on the prevailing annual rent. The one time contribution together with the annual 4% assessment on the rental value aggregated over 20 years based on 1981 data totalled to JD 95.500 (US$ 276) for a typical plot which is deemed to be affordable. In addition, at the time of connection to sewers, landlords have to make a onetime contribution amounting to 25% of the annual rental value. The rental value is established or adjusted either once a rental agreement is concluded or a major structural improvement has been made. Due to these infrequent adjustments the rental value is not the most appropriate basis for making the benefitting population participate sufficiently in the cost of constructing sewers. However, increases in land value will accrue in the future from sewerage. This is particularly the case in Zarqa/Ruseifa where sewerage would replace the existing system of cesspools and would relieve users from having to bear the cost of frequent and costly cesspool emptying. It would, therefore, be appropriate to recuperate at least part of the increases in land value through an adequate combination of specific charges or levies. Such a combination of levies, together with user charges and tariffs would have to be developed within the framework of a tariff study (draft terms of reference, Annex 16), the execution of which will be monitored through the project implementation schedule. 6.07 As some of these charges (para. 6.06) may be collected by the Govern- ment, measures should be taken to ensure the financial viability of WSC's sew- erage operations. Minimum financial performance should therefore require WSC to set its tariffs and its user charges for sewerage at such levels that the combined revenues, including payments by Government collected in the form of direct assessment on the beneficiaries, cover at least operating and maintenance expenses including depreciation or debt service whichever is higher. This objective should become applicable for all WSC sewerage operations once fully commissioned, which, in the case of Zarqa/Ruseifa would be by January 1, 1986. Water Services 6.08 WSC's tariffs for water services in urban areas should over the med- ium term cover the full cost of service and provide 10% of the respective investment program. For the rural areas where WSC is providing basic water services on behalf of the Government full cost coverage of this operation is not feasible due to the high cost of these operations. Likewise it is not possible for WSC to achieve financial viability through cross-subsidization because of the relatively small number of urban consumers that WSC is servic- ing. Consumers in rural areas, with the exception of the desert areas, contribute towards the operating and maintenance cost. The extent to which these costs are covered cannot at present be established due to the absence of an adequate accounting system (para. 5.13). Once this system becomes opera- tional, it should provide the necessary data base. 6.09 Existing water tariffs for WSC's urban services, in particular those prevailing in Zarqa/Ruseifa, meet in general the aforementioned objective. Nevertheless, the proposed tariff study (para. 6.06) would also reassess the adequacy of WSC's water tariffs.  - 27 - Agreements reached 6.10 Agreement was reached during negotiations that upon completion and review of the tariff study, WSC would implement for its sewerage operation, an appropriate combination of user charges and tariffs that would, together with payments by Government collected in the form of direct assessment on the beneficiaries, cover in full operating and maintenance costs and debt service or depreciation on properly valued assets, whichever is higher, and that such combination of user charges and tariffs for the Zarqa/Ruseifa operation would be applicable from the time of full commissioning. In order to ensure that beneficiaries contribute to the investments in sewerage, agreement was obtained from the Government that: (i) upon review of the tariff study, it will, after consultation with the Bank, implement a system of sewerage user charges and fees related to benefits due to the provision of sewer services including increases in land value; and that (ii) such user charges and fees would become applicable for the Zarqa/Ruseifa system by January 1, 1986, at the latest, and for all other systems where significant benefits including increases in land value due to sewerage are observed once these systems are fully commissioned. 6.11 As far as WSC's future water tariffs are concerned, agreement was reached during negotiations that WSC will: (i) for its urban water services maintain or adjust water tariffs that: (a) would in each of its fiscal years till the end of its fiscal year 1985 produce revenues sufficient to cover its operating and maintenance costs as well as debt service or depreciation on properly valued assets whichever is higher; and (b) would from fiscal year 1986 provide revenues sufficient to cover operating and maintenance expenses (excluding depreciation), debt service and increased working capital, and to finance not less than 10% of the average investment cost in each consecutive three-year period comprising an actual and two forecast years; and (ii) for its rural water services review tariff levels and implement adjustments as needed to cover from January 1, 1987 a reasonable percentage of operating and maintenance expenses to be agreed upon with the Government. Also assurances were received from the Government that it would continue to provide sufficient funds for operating the rural water systems. The aforementioned cash generation covenant would be monitored by annual reviews. During negotiations agreement was reached from WSC that it would provide the Bank three months before the beginning of each fiscal year with copies of its proposed forecast budget for such fiscal year and financial projections for the following two years, as well as the proposed tariff actions. Financing Plan 6.12 The table below shows WSC's estimated financing requirement and the sources of funds for the construction period (1983-1989) of the Zarqa/Ruseifa system. WSC's overall financing plan is shown in Annex 11.  - 28 - FY 1983 - 1989 JD us$ X Sources of Funds ------ million ---- Internal Cash Generation 7.58 21.88 Less: Debt Service 4.48 12.93 Available from Operations 3.10 8.95 7.8 Proceeds of Bank Loan 5.89 17.00 14.7 Other Project Loans 12.90 37.23 32.3 Gvt. Loan Cap. Charges 4.34 12.53 10.9 Loans not Identified 0.30 0.87 0.8 Government Contribution 10.79 31.14 27.0 Customers' Contributions 2.45 7.07 6.1 Deposits .17 .49 0.4 Total 39.94 115.28 100.0 Application of Funds Increase in Working Capital .97 2.80 2.4 Proposed Project - Water 4.66 13.45 11.7 Proposed Project - Sewerage 26.94 77.75 67.4 Other Works - Water 1.10 3.17 2.8 Other Works - Sewerage 1.93 5.58 4.8 Interest Capitalized 4.34 12.53 10.9 Total 39.94 115.28 100.0 The proposed Bank loan would be made to the Government which would onlend it to WSC on substantially similar terms and conditions including capitalized interest and commitment charges. Similar arrangements are assumed to apply to the other loans related to the project. In view of the sizeable investments in sewerage, which will be fully utilized only over a long period of time, internal cash generation will be modest. Customers' contributions collected in the form of a special tax on rental values (para. 6.06) will over the construction period provide about 6.1X of the funds needed. Future Financial Performance 6.13 Forecast financial statements including the underlying assumptions both for the Zarqa/Ruseifa operation, as well as for WSC as a whole are shown in Annex 12. In view of WSC's formative phase projections longer than three years beyond the current Government Five-Year-Plan (1981-1985) would not be meaningful. The financial statements for WSC, therefore, go to 1988. As the Zarqa/Ruseifa operation is straightforward the financial statements were projected through 1992. The principal assumptions used in these projections are that: (i) tariffs would after project start-up be adjusted annually for meeting the proposed covenants; (ii) the Government would cover part of the operating losses associated with the rural water systems; and (iii) operating  - 29 - costs would increase reflecting higher inputs due to greater production levels and adjustment for inflation which is assumed to be 8% for 1982, decreasing to 6% for 1986 and thereafter. Financing of overall annual investments out of internally generated funds would be rather limited for WSC as a whole. 6.14 Internal cash generation should cover debt service adequately, both for WSC as a whole as for the Zarqa/Ruseifa operation. Debt service coverage is projected to be around 1.0 from 1989 onwards.  - 30 - VII. ECONOMICAL AND SOCIAL ASPECTS Health Benefits and Environmental Impact 7.01 The present level of public water supply service in Zarqa and Ruseifa is generally unsatisfactory. Many inhabitants are unable to obtain an ade- quate supply because of low water pressures, and polluted groundwater finds its way into the system through leakages in the system endangering public health. The project is designed to correct this situation by improving the distribution system and reducing pollution in the groundwater through replac- ing present cesspools with sewerage. 7.02 Sanitary conditions in the two cities will be greatly improved by the proposed system which will eliminate the present health hazards caused by overflows from cesspools. Removal of cesspool effluent from the soil will also remove the threat of contamination of the lower aquifers below the two cities, which are presently used for public water supply. Direct discharge of untreated sewage into the Zarqa River will also be curtailed, and with the treatment facility provided in the project the quality of water in the Zarqa River as well as in the King Talal Reservoir will be improved. Least Cost Solution 7.03 The proposed project is the least-cost solution for the improvement of the water supply distribution and for proper disposal of wastewater in the cities of Zarqa and Ruseifa. Consultants have conducted a comprehensive hydraulic analysis of the water distribution networks for the two cities and have studied various configurations of the sewerage system to come up with the present proposal which is considered to be optimal. The sewage treatment plant and pumping station will be staged and the size of the present proposed phase is found to be the least cost alternative. The trunk sewers will be built to their ultimate capacity as this is the most economical and feasible solution. Economic Analysis 7.04 For the purpose of economic analysis, financial costs and benefits are expressed in constant December 1982 prices, and project costs were adjusted for duties and taxes. Since unemployment is low and there is no minimum wage in the country, shadow pricing of labor was not considered to be necessary. In fact, Jordan employs a substantial amount of imported labor, particularly in the construction field, and this has the effect of keeping labor wages at very competitive levels. There is no foreign exchange control in Jordan and the Jordanian Dinar is allowed to float in the open market. For this reason, shadow pricing of foreign exchange was not needed. 7.05 The water supply component constitutes about 14 percent of the total project cost and is only part of the costs required for future water supply (see Annex 13, page 1). The major cost of meeting future water demands of the two cities will be in the purchase of additional water required after 1986, when the allowable groundwater extraction from the aquifer is expected to be reached (para. 2.04). This external source of water, which is assumed to be  - 31 - from the East Ghor Main Canal, is estimated to cost about JD 0.300/m3 and its use would about triple the present cost of water production. It is not possible to estimate meaningful benefits for water supply, and so an internal rate of return for the water supply component of the project cannot be computed. The average incremental cost (A.I.C.) of water supply has however been calculated and is found to be JD 0.341/m3 at a discount rate of 10 percent (Annex 13), of which about JD 0.240/m3 is attributable to future water purchases. Thus, prior to the need of WSC to purchase water from an external source around 1986, WSC's average tariff (JD 0.140/m3 in 1982, Annex 12, page 3) will be more than adequate to recover costs (the A.I.C. excluding the cost of water purchase from the East Ghor Main Canal is estimated to be about JD 0.100/m3). Looking ahead beyond 1986, WSC's tariffs with a highest block rate of JD 0.400/m3 (Annex 10) already reflect the A.I.C. and will therefore promote conservation and economic water use. The proposed tariff study (para. 6.06) will further examine the appropriate tariff structure that will allow adequate cost recovery also beyond 1986. 7.06 Costs for the sewerage component are shown in Annex 14. Benefits will accrue from improvement in health, both in the Zarqa/Ruseifa area and, as a result of a general upgrading in the Zarqa River, providing better quality water for downstream usage such as agriculture. In addition, savings will arise from reduction and eventual elimination of costly cesspool operations in the two cities. Sewerage will also provide more reliable service, and will make it possible to avoid the nuisance and inconvenience associated with cesspool operations. However, the majority of these benefits cannot be quantified, and so it is not possible to compute a meaningful rate of return for the project. It is nevertheless possible to compute the A.I.C. for sewerage and this is found to be JD 0.286/m3 at a discount rate of 10%. 7.07 For the purpose of determining consumers' willingness to pay, an attempt was made to estimate what residents are now paying for cesspool operation. Based on the size of the tanker fleets operating in the two cities, a total amount of about JD 450,000 is estimated to be spent by city residents annually for cesspool emptying alone. In order to maintain the service even at the present less-than-satisfactory level it is estimated conservatively that cesspools will have to be reconstructed every 20 years, otherwise cost of cesspool emptying will become excessive. Even now some residents have to have their cesspools emptied almost every two weeks, paying an equivalent of about JD 1.00 per mi3 of water consumed. At an average cost of JD 450 (in December 1982 prices) for constructing an 18 m 3 cesspool, the average size in Zarqa/Ruseifa, the annual cost for reconstructing 32,000 cesspools in the cities is JD 720,000. The total annual cost of cesspool operation for the two cities amounts therefore to JD 1,170,000. With an estimated water consumption of 4,500,000 m3 in 1982 residents are thus paying for their cesspool operation an equivalent of about JD 0.260 (in 1982 prices) on every cubic meter of water consumed. In light of this analysis the users should be willing to pay for sewerage at least JD 0.260/m3 of water consumed, and up to the A.I.C. of JD 0.286/m3 in view of the better quality service they would be receiving (para. 7.06). 7.08 The amount that a family in the 20th percentile income level is currently paying for water supply, based on existing water tariffs (Annex 10),  - 32 - on the assumption that consumption is approximately 30 lcd., is about 0.9% of the household income. For the same family sewerage charges as determined in para. 7.07 will take up about 2.1% of the household income. The combined water and sewerage charges will therefore amount to 3.0% of household income and are considered to be within the affordability to pay of the population in the two cities. Institution Building 7.09 The Government has recently announced its intention to have all water and sewerage systems outside of Amman and the Jordan Valley to be managed by WSC in an effort to better utilize scarce managerial resources in the sector and to provide improved services. In the next few years WSC will be in a stage of rapid expansion in order to cope with its enlarged responsibilities. The project will offer the opportunity to help develop the managerial and financial capabilities of this very important sector organization. In addition WSC's staff, through association with the supervision consultant and Bank staff, will be able to acquire skills in project preparation and analysis, project management and construction supervision, all of which will be invaluable for the development of further projects. Risks 7.10 There will be some risks involved in the execution of the proposed project. Only a limited amount of construction work on sewerage and sewage treatment plants has been executed in Jordan and WSC, the executing agency, has no experience with largeseweragesystems at all. There is therefore a risk of delay in project construction and cost overrun. WSC staff, as well as the municipality staff that it will be taking over, have no experience in the operating of sewerage systems and sewage treatment plants and will have to be trained for this work. A very intensive program for sewer connection will be needed upon commissioning of the sewage treatment plant. This will require good administrative procedures as well as dedication of staff, to enable this program to be accomplished in the time planned, in order that project benefits may be achieved as expected. Much effort will be required of WSC to enable it to develop institutionally into an efficient well-run organization. Success of this will rest heavily on the commitment of WSC's management and on its ability to overcome the present serious shortage of experienced staff. However, these risks are worth taking in view of the good record of the Jordanian Government in implementing projects. 7.11 The measures recommended in this report, such as (i) the assistance of consultants for construction supervision and conducting tariff studies; (ii) experts to assist in the development and implementation of an appropriate accounting system; (iii) experts to assist in conducting the organization study and to implement organizational changes; (iv) the proposed training for WSC staff; (v) the Bank's monitoring of key performance indicators for WSC and the Zarqa/Ruseifa system and providing necessary advice during supervision, should help to minimize the project risks.  - 33 - VIII. AGREEMENTS REACHED AND RECOMMENDATIONS 8.01 During negotiations, agreement was reached on various issues referred to in Chapters II through VI of this report. 8.02 The Project Financing Plan was confirmed by the Government (para. 4.15). 8.03 Conditions for loan effectiveness are: (a) signing of loans by co-financiers (para. 4.16); (b) execution of the subsidiary loan agreement (para. 4.16); (c) setting up of the project management unit and employment of project manager (para. 4.21). 8.04 Agreement having been reached on the issues set forth in this report, the project is suitable for a Bank Loan of US$ 17 million to the Hashemite Government of Jordan.  HASHEMITE KINGDOM OF JORDAN ZARQA/RUSEIFA WATER SUPPLY AND SEWERAGE PROJECT Schematic Diagram of Water Sources for Greater Amman Area Elevationi (m) above mean sea level _ ______1,200 Terminal Reservoir 1,100 Azraq__________ Pipeline__ /_______________ AMMAN & SUBURBS 1,000 _ (existing) ,_ Ain Ghazal AMMAN 9 00 ---_____________ -_______________ _________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 0 0 AZRAQ 700 ___________________ 600 Wells ______ >i+>__ ______ _ __ _ 500 / King Talal Dam / I East Ghor Main Canal Water Carrier (under construction) 400 Se,<_____ "I ______________ (49 MCM storage existing L.0 _______________________IRBIL 30 MCM extension proposed) L 300 Future I Maqarin Dam/ 200 Winter fIo __/ _ 100 /purnping / | (proposed) / - _ __ 0 8 ^r / Wadi A~~rab Dam (under construction) DIERALLA \ 0 Der ivers (16 MCM storage) TetetWrs; Tiberias__EastGho _ . and Pumping Station Diversion 200 300 - - - - - - - - ~~~~~~~~~~~~Dead =_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _S ea -4 0 0 ()Pumping station ' -t El Treatment plant Storage reservoir Not to Scale World Bank-23951  - 35 - ANNEX 2 Page 1 HASHEMITE KINGDOM OF JORDAN ZARQA/RUSEIVA WATFR SUPPLY AND SEWERAGE PROJECT POPULATION, WATER PRODUCTION & SALES, AND CONNECTIONS Zarqa/Ruseifa (Past and Forecast) Population Produced Sold Peak Day Av.Per Cap. Av.Per Cap. ------------------------------- --------------------- --------------------- Unaccounted- Production Production Sales Year Zarqa Ruseifa 1/ Total .3/day 1000m3/yr m3/day 1000m3/yr for water % (=3/day) (I.c.d.) (I.c.d.) 1979 215,7UO /2 61,700 /2 277,400 /2 19,040 6,950 10,290 3,750 46.0 20,940 68.6 37.1 1980 225,400 64,400 289,800 20,200 7,380 10,920 3,980 46.0 22,220 69.7 37.7 1981 235,500 67,300 302,800 21,460 7,830 11,600 4,230 46.0 23,610 70.9 38.3 196, 246,100 70,400 316,500 22,800 8,320 12,330 4,500 46.0 25,080 72.1 39.0 1983 257,200 73,500 330,700 24,230 8,840 13,420 4,900 44.6 26,650 73.3 40.6 1984 268,800 76,900 345,700 25,710 9,380 14,730 5,370 42.8 28,280 74.4 42.6 1985 280,9uO 80,300 361,200 27,290 9,960 16,130 5,880 41.0 30,020 75.6 44.7 1985 293,500 83,900 377,400 29,950 10,930 18,260 6,660 39.1 32,950 79.4 48.4 1987 306,700 87,700 394,400 32,430 11,830 20,370 7,440 37.1 35,670 82.2 51.6 1988 320,500 91,700 412,200 35,000 12,780 22,640 8,270 35.3 38,500 84.9 54.9 1989 335,000 95,800 430,800 37,650 13,750 25,040 9,130 33.5 41,420 87.4 58.1 1990 346,700 100,1O0 446,800 40,150 14,660 27,420 00,010 31.7 44,170 89.9 61.4 1991 358,800 104,600 463,400 42,740 15,600 29,920 10,920 30.0 47,010 92.2 64.6 1992 371,400 109,300 480,700 45,420 16,580 31,800 11,610 30.0 49,960 94.5 66.2 1993 384,O00 114,200 498,600 47,740 17,430 33,420 12,200 30.0 52,510 95.7 67.0 1994 397,800 119,400 517,200 50,190 18,320 35,140 12,820 30.0 55,210 97.0 67.9 1995 411,700 124,700 536,400 52,750 19,250 36,930 13,480 30.0 58,030 98.3 68.8 1996 426,200 130,300 556,500 55,380 20,210 38,770 14,150 30.0 60,920 99.5 69.7 1997 441,100 136,200 577,300 58,070 21,200 40,650 14,840 30.0 63,880 100.6 70.4 1998 456,500 142,300 598,800 60,920 22,240 42,650 15,560 30.0 67,010 101.7 71.2 1999 472,500 148,700 621,200 63,900 23,320 44,730 16,330 30.0 70,290 102.9 72.0 2000 489,000 155,400 644,400 67,010 24,460 46,910 17,120 30.0 73,710 104.0 72.8 Col. z - Growth rate of 4.5% per annun assuned from 1979 to 1989 and 3.5% thereafter. Col. 3 - Growth rate of 4.5% per annum assumed from 1979 to 2000. Col. 10 - Max. day to average day factor = 1.1 (low value because of presence of roof tasks). ;ol. 11 & Col.12 - Includes allowance of additional water usage due to sewerage and sales to industry. /I Population of Ruseifa cncludes Al Musheirfeh /2 1979 popuiation estinates based on figures from national census conducted in Novenber.  HASHEMITE KINGDOM OF JORDAN ZARQA/RUSEIFA WATER SUPPLY AND SEWERAGE PROJECT Forecast of Population, Water Production and Consumption Population Production ('000) and _ 9 Consumption ('000 m /day) 800 80 - 700 - 70 - Production to be supplemented 600 - 60 - by purchased water 500 50 / 400 - 40 - 300 30- Per Capita Unaccounted- Consumption for (liters per Wvater 200 - 20 - capita day) Watep 200 20 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-100 100 l ~~~~~~~~~~~~~~~~~~~~~~~~~~~~Per capita .onsuimption _-_ 100 10 - - 50 _ 50 - - - - - - - - Unaccounted-for Water 0 0 I IIII0 0 1978 1980 1982 1984 1986 1988 199G 1992 1994 1996 1998 2000 World Bank- 23949  - 37 - IC -' jEWEl 3 N C C C C C C C C C C C C C C C I CC,1 C C CCCCCC C C 4 C C C I 0)0)1 .- C C C - C C C C C C C C C C I CO