Burundi - Rural Water Supply Project

- Document of The World Bank FOR OFFICIAL USE ONLY C& 6~QC-s6c/ Report No. 5445-BU STAFF APPRkISAL REPORT BURtUNDI RURAL WATER SUPPLY PROJECT August 19, 1985 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Burundi Franc (FBu) Flu 1.00 - US$0.00-83 (October 1984) US$ 1.00 - FBu 120 (October 1984) SDR 1.00 - US$ GLOSSARY OF ABBREVIATION AND ACRONYMS AfDB: African Development Bank AIDR: Association Internationale de Developpement BRB: Banque de la R4publique du Burundi CIDA: Canadian International Development Agency DHER: Department of Rural Water Resources and Electrification FED: Fonds Europeen de Developpement Rural GTZ: German Technical Cooperation HCR: High Commissariat for Refugees KfW: Creditanstalt fur Wiederaufbau REGIDESO: National Water and Electricity Authority SETEMU: Municipal Technical Services U.A.: Unit of Account UNICEF: United Nations Children's Fund USAID: United States Agency for International Development FISCAL YEAR Government of Burundi: January 1 - December 31  FOR OMCIAL USE ONL V TANLS or Page - Credit and Project Summary ...................................1 I. THE SECTOR - .onr acgon .................................................... 1 - Country Bckground .......... *..*... ..... 2 - water Resourc e . -..s - --2 - Sector OrgaTniation ......... 2 - Levels of Service e....................0..... 3 - Water Supply - Sanitatlon - Sector Objectlves 3 - Sector Development *. *...... ... . 4 - Sector Constraints ....... 4 - Previous Bank Involvement 5 ........ 5 _I. POPULATION, WATER SUPPLY SERVICE AND DEMAND IN THE PROJECT AREA - Project Area ..-*.........**....... o*....o........**........ 6 - Organization .....6 - Population-Level of Service o..o. ................... 6 - Existing Water Supply ............... .... ......... ........ .. 6 - Water Consumption and Demand ..........o ........ . **.a ... 7 - Rationale for Bank participation ....... ......... 7 III. THE PROJECT - Genesis *@e*...* ........ e............... ..... 8 - Project Objectivea . ......... ... ........................... *. 8 - Project Description * ........................................ 9 - Project Cost ...... ........... .................. 11 -Project Financing Plan ........ ... ....... ............ 11 - Project Cost Summary ........ . . . ............... ........... 12 - Implementation .. ... .9.o....o ........ . .............. ... 13 - Procurement **..... . . ...................*. 13 - Procurement Arrangements . ............. .. 14 - Disbursement ..... . . . .15 IV. THE BENEFICIARIES - Introduction ...o.... .. .. ...... .. . 16 - The Coimnes . ............ . . ., . . ....... 16 - The Department of Rural Water Resources and Electrification . ............................. 16 - Organization/Management .............................. 17 - Finance .*o ........................... 19 - Personnel/Training ... ...20 - Accounting, Billing and Collection . . .21 - Management System. . ... .22 This document has a restrictd distribution and may be used by recipients only in the performance of| their oflicial duties. Its contents may not otherwise bc discosed without World Bank authorization.  Page - Audit ............................................................ 22 - Insu'rance o ... oe ........................................... 0.0 23 V. FINANCIAL ANALYSIS - Introduction ................ .................................. 23 - Cost Recovery . ........................ ....................... 24 - Billing Collection and Accounting of Use Charges ......... ...... 24 VI. ECONOMIC AND SOCIAL ANALYSIS - Project Benefits ................................ 6-........................ 26 - Project Rationale ........................................ .............. .* 27 - Affordability ............................................................ 27 - Least Cost Solution . ..... ..................................... 28 - Impact on Poverty Group ..... ............................... ....... 28 - Project Risks ........................ .. ... e.e ...*.. * ... 28 - Monitoring ............................................................. 29 VII. AGREEMENTS REACHED AND RECOMMENDATIONS . .... ... 29 LIST OF ANNEXES 1. Morbidity and Mortality-Rates 1976-1980 .................... 32 2. Fourth Development Plan 1983-1987 ..... ..................... 33 3. Water Supply and Sanitation Projects ....................... 35 4. Level of Service .............................................. 37 5. Detailed Description of the Works .......................... 38 6. Detailed Cost Estimate of Works ..... ....................... 43 7. Program of Project Expenditures ........ .............. 44 8. Implementation Schedule .. ............... ..... ... . ................... . 45 9. Estimated Schedule of Disbursements ........................ 46 10. Job Descriptions .................. ........ .......... ........... 47 11. Outline of Training Program ............... ................. 51 12. Projected Tariff Levels .................................... 56 13. Consolidation of 33 Centers ................................ 57 14. Assumptions For Financial Projections ....... ............... 60 15. Proposed Organizational Chart of DHER ............... I ...... 62 16. Selected Documents and Data Available in Project File ...... 63 Map IERD 18670 Rural Water Supply Project This report is based on the findings of an appraisal mission which visited Burundi in October 1984. The mission consisted of Messrs. G. Tenaille, J. Renkewitz (IDA), and I. Nahmias (Consultant).  BURUNDI RUKAL WATER SUPPLY PROJECT Credit and Project Summary Borrower Republic of Burundi Beneficiary: Ministry of Rural Development Amount : SDR 9.6 million (US$9.5 million equivalent) Terms : Standard IDA terms Project The main objectives of the project would be (a) to improve the Objectives : quality and quantity of water provided to the rural population, thereby improving public health and the living conditions of women and children who often must walk long distances to carry water; (b) to strengthen institutional arrangements and introduce cost recovery measures for the rural water supply sector; and (c) to increase the responsibility of local communities in the maintenance and management of water supply facilities. Project (a) Rehabilitation and extension of rural aqueducts in 33 Description: areas; (b) Strengthening the organization of DHER and improving its management effectiveness through the provision of technical assistance and equipment; (c) Training for DHER's staff and for the communal administrators, accountants and water supply attendants. A program of sanitary education would sensitize the population to the use of potable water. Benefits : The major benefit of the proposed project would be the availability of safe potable water for about 160,000 persons living in scattered rural settlements, and an improvement of their health. Quantification of health benefits due to safe water supply is not possible as a variety of other factors influence improvements in health such as health education, availability of food, level of economic activity and hygienic practices. The proposed project would be however a necessary condition of success for public health prcgrams in the areas concerned. The project would also foster the development of communal responsibility for infrastructure serving the population directly and result in considerable improvements in the planning, implementation, and supervision of rural water programs at the country level. Risks : The major risks concern the maintenance of the systems. Experience in Africa has shown that the most promising results are derived from delegating responsibility to the village level and fostering the sense of communal ownership, while providing adequate back-up services and technical assistance. Questions still remain whether the beneficiaries can be sufficiently motivated over a long time to make the necessary monetary outlays, and to join into communal efforts to maintain and repair the system. The planned health demonstration campaigns as well as the efforts to sensitize local leaders and administrators should help minimize this risk.  - ii - Estimated Local Forelgn Total Project Costs 11 ---USS million- - 1. Rehabilitation & Extension of 33 Rural Aqueducts - Pipes 0.090 1.715 1.805 - Equipment 0.025 0.482 0.507 - Installation 0.178 0.179 0.357 - Earthworks 0.562 0.062 0.624 - Civil Works 0.974 0.974 1.948 - Miscellaneous 0.063 0.064 0.127 Sub-Total 1.892 3.476 5.368 2. Strengthening of DHER -- Equipment 0.017 0.233 0.250 - Technical Assistance 0.343 0.577 0.920 - Operating Costs 0.076 0.033 0.109 Sub-To:al 0.436 0.843 1.279 3. Training 0.052 0.044 0.096 4. Consulting Services - Supervision 0.198 0.198 0.396 - Audit 0.080 0.080 -- Feasibility Studies 0.208 0.678 0.886 Sub-Total 0.406 0.956 1.362 Total Base Costs 2.786 5.319 8.105 Pbysical Contingencies 0.227 0.417 0.644 Price Contingencies 0.776 1.341 2.117 Sub-Total 1.003 1.758 2.761 Total Project Cost 3.789 7.077 10.866 1/ Taxes are negligible.  - tii - Financing Plan Local Forelgn Total -----USS m1lllow--- - IDA Credit 2.42 7.08 9.50 Governmnt and ComUnes 1.37 - 1.37 Total 3.79 7.08 10.67 Estliated Disbursements IDA Fiscal Year: FY86 FY87 FYms FY89 FY90 FY91 FY92 - --- USS imll$1oU-- ---- -- Annual 0.1 1.8 2.1 1.8 1.3 0.9 0.3 Cumulative 0.1 2.9 5.0 6.8 8.1 9.2 9.5 Economlc Rate of Return: Not applicable Staff Appraisal Report: Burundl Rural Water Supply Project. Report No. 5445-BU Map: IBRD - 18670  BURUNDI RURAL WATER SUPPLY PROJECT I. THU SECTOR Country Background 1.01 Burundi is a small land-locked country in East-Central Africa. It covers a territory of 27,835 square kilometers and has a population of 4.5 million inhabitants (160 per kn2). It is the second most densely populated country in Africa. About 4.2 million people (93% of the total population) are scattered in rural areas in small hamlets of less than 300 inhabitants. Only 7% of the population lives in urban centers and the country has only one real city, the capital, Bujumbura, with a population of 200,000 inhabitants. The growth rate is high, 2.65X. Urban growth reaches 7 to 8 2 for the capital. The birth rate was 44 per thousand in 1979 and death rate 20 per thousand. 1.02 With an estimated Gross National Product of US$240 per capita, Burnndi is one of the world's least developed countries. The overall literacy rate is about 25%, average life expectancy is 45 years for men and 48 years for women, and basic social infrastructure is still lacking. Limited natural resources, population pressure, scarcity of qualified and experienced manpower, and isolation from main trade routes are the main contributors to the country's poverty. 1.03 The local administration was reorganized by Decree-Law No. 1/29 of September 24, 1982. The number of provinces was increased from 8 to 15 and the number of districts, or -communes- from 79 to 114. Most of these provinces have a small urban center, which is closely linked with rural development and serves as a catalyst of economic activity and as the delivery point for the provision of iLaproved services. Decentralization of urban growth, by increasing investments in selected secondary centers, is a major goal of the Government's Fourth Five-Year Plan. Moreover, many ministries and administrative services are expected to move from Bujumbura to Gitega, the second city of Burundi. In rural areas, the Government is seeking to concentrate the population into larger villages in order to facilitate the delivery of community services: water, electricity, dispensaries, schools, etc. Up to now only 38 new villages have been established in 25 communes, hecause the farmers are reluctant to move. The local finances were reorganized in January 1984, principally to increase local involvement and responsibility. In particular, new taxes were established, which are to be collected by the communes. The head of the commune is the Local Administrator, appointed by the Minister of Interior and reporting to the Province's Governor.  -2- later Resources 1.04 Burundi is a hilly country with good rainfall and two rainy seasons. Therefore, it has adequate water potential for comunity water supplies. Because of Its geology and climate, there are many sprlgs and surface waters in the country. However, due to a lack of sanitary protection, the quality of the water provided by these sources is eIther doubtful (unprotected springs) or really poor (streams, marshlands). This leads to water-borne diseases which represent more than 70Z of all endeidc diseases (see Annex 1). Sector Organization 1.05 A national commission for water (Commission Nationale Permonente des Eaux) was created in March 1976 to coordinate the activities of the different Government agencies involved In the sector and to plan the development of water resources. It Is chaired by the Minister of Agriculture and includes 13 directors from the ministerial departments Involved in the sector and three persons appointed by the Minister of Agriculture. So far, this commission has not been very active. 1.06 Water supply in urban areas (Bujumbura and 25 secondary centers) is managed, o- soon will be managed by REGIDESO, a Government-owned corporation which is also in charge of power supply in the country. It was established by Decree-Law No. 1/196 of October 2, 1968, and is supervised by the Ministry of Public Works, Energy and Mining. REGIDESO Is assisted by several German engineers and professionals from the German Technical Cooperation (GTZ). This assistance is directed at both REGIDESO's electricity and water supply activities. It is complemented by the consulting services provided by a German consulting firm (GKW) supported mainly by GTZ funds. Sanitation in Bujumbura was handled through a sanitation department attached to REGIDESO, but the Covernment decided to transfer responsibility for uunicipal technical services Lncluding sanitation to the new autonomous corporation SETEMU (Services Techniques Municipaux). SETEMU is already active in Bujumbura and would extend its activities to the 15 chief province towns. Sanitation services would be financed by property and rental taxes from January 1, 1984. SETEHU Is assisted by a German engineer, financed by GTZ. 1.07 Since February 1979, water supply in rural areas has been the responsibility of the Department of 'Hydraulique et Electrification Rurales" (DHER) created by Decree No. 100/18 of February 2, 1979. It Is an autonomous department, under the Ministry of Rural Development. The DHER is in charge of planning, design, construction and operation and maintenance of the rural water supply schemes. Actually, due to the lack of funds, skilled management and proper institutional and financial arrangements, most of the rural water supply systems are not being maintained. An important component of the proposed project would be to strengthen DHER. In fact, the respective responsibilities of REGIDESO and DHER are not clearly defined, particularly in the rural areas surrounding the towns operated by REGIDESO (see para. 4.05).  -3- Levels of Servlce 1.08 : About 92% of the urhan population (defined as communities with 3,000 peope or more) is served throuiRh private connections or public standpipes. In Bujumbura, 50,000 m3 per day are distributed to 6,098 private connections (17% of the population) and 163 standpipe. In Gitega, the second city of hurundi, 89Z of the population is served through 365 private connections and 20 standpipes. In the nine other towns already operated by REGIUESO, about 60,000 lnhabitants are served through 284 private connections and 60 standpipcs. About 222 of the rural population ls served mainly through springs more or less protected and throuigh rural aqueducts. Water quality control is inadequate. UsualIv, the rtral aqueducts are old, their capAcity inadequate and they dtre in poor condition. Peoplc not scrved rely on tunprotected gprlngs and polluted streams or ponds which are at relattvelv great distance since people generally live in the upper part of the hi ll while water sourcec are at lower levels. 1.09 Sanitation: In Bujumhtirn. 11 of the population Is served through a sewerage svystem. 9% through seprle tanks and S0% through pit latrines, often used by severnl families. It iR estimated that 12,onO new pit latrines wnuld be needed to reach n reason.hle level of service. In rural areas, about 30Z nf the population Is estimated to be served through pit latrines. The rest of the ri:ril pori3.atlon lacks formal waste diposoal facilities. Sector Objectives 1.10 In the first Nptino.il Workqher nn the 'Water Stipplv and SantLAtion Decade, heldi in inniiuarv 19H ', tb. frlInwing target l.r-v.'Is have been set: 1Urbnn Areas 1999 1992 Watt-r S;upply 9q P (71 0hy st:andpip.,o) (45 by standpipes) snnintntion 80%tS( Ruiral Arearc. Water Stupp . Sanitation 85 1.11 InvpeNtnent ci::pend1turiC nedcted tt rean' the-;e ti-r.ietn are estimated ('n 1981 pricep) at: