Jordan - Zarqa - Ruseifa Water Supply and Sewerage Project

Document of The World Bank FOR OFFICIL USE ONLY RePoit No. 8M1 PROJECT COMPLETION REPORT HASHEMITE KINGDOM OF JORDAN ZARQA/RUSEIFA WATER SUPPLY AND SEWERAGE PROJECT (LOAN 2213-JO) JUNE 25, 1990 Infrastructure Division Country Department III 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 offcial duties Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Jordan Dinar (JD) March 1982 - JD 0.365 US$1.00 June 1989 - JD 0.571 - US$1.00 GLOSSARY 0F ACRONYMS AWSA - Amman Water and Sewerage Authority CEHA - Center for Environmental Health Activities EDI - Economic Development Institute FAO - Food and Agricultural Organization IDB - Islamic Development Bank JVA - Jordan Valley Authority KfW - Kreditanstalt fur Wiederaufbau NPC - National Planning Council NRA - Natural Resources Authority SCADA - Supervisory Control and Data Acquisition UNDP - United Nations Development Program USAID - United States Agency for International Development WAJ - Water Authority of Jordan WHO - World Health Organiziation WSC - Water Supply Corporation JfRDAN'S FISCAL YEAR January 1 - December 31  THM WORLD SANK Foa OMCIA UE ONLY ,.$i"won. D.C. 20433 US A Olk6 ud Onow4ewa June 23, 1990 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Jordan Zaraa/Ruzsifa Watsr SuRppl and Sewerage Prolect (Loan 2213-JO) Attached, for information, is a copy of a report entitled "Project Completion Report on Jordan - Zarqa/Ruseifa Water Supply and Sewerage Project (Loan 2213-JO)" prepared by the Europe, Middle East and North Africa Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment The dacuqt hass a*cuddlsudban nd may be _i by vaipin ony hn tbspsfun of te offca dutiu In omtas, may natomm wabe discks withut word ank sutbaumon.  FOR OMCILM USE ONLY HASHEMITE KINGDOM OF JORDAN hLO 213-JO ZARQA/RUSEIFA WATER SUPPLY AND SEMERAGE PROJECT PROJECT CONPLETION REPORT TABLE OF CONTENTS PREFACE .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i BASIC DATA SHEET .... . . . . . . . . . . . . . . . . . . . . . . . . ii HIGHLIGHTS .... . . . . . . . . . . . . . . . . . . . . . . . . . . . vi I. INTRODUCTION .1... . . . . . . . . . . . . . . . . . . . . . . . . . I Background Data .1... . . . . . . . . . . . . . . . . . . . . . . I Bank Role in the Sector . . . . . . . . . . . . . . . . . . . . . . 1 Other Works in the Sector .... . . . . . . . . . . . . . . . . . 2 II. PROJECT PREPARATION, APPRAISAL AND IMPLEMENTATION ... . . . . . . . 2 Project Origin, Preparation, and Appraisal . . . . . . . . . . . . 2 Project Objectives .... . . . . . . . . . . . . . . . . . . . . 3 Project Description .... . . . . . . . . . . . . . . . . . . . . 3 Status of Loan Covenants .... . . . . . . . . . . . . . . . . . 4 Effectiveness and Start-up . . . . . . . . . . . . . . . . . . . . 5 Revisions to the Loan Agreement .... . . . . . . . . . . . . . . 5 Revisions in the Scope of Work .... . . . . . . . . . . . . . . 6 Project Implementation .... . . . . . . . . . . . . . . . . . . 6 Procurement .... . . . . . . . . . . . . . . . . . . . . . . . . 7 Project Costs .... . . . . . . . . . . . . . . . . . . . . . . . 7 Disbursements .... . . . . . . . . . . . . . . . . . . . . . . . 7 Performance of Consultants, Contractors and Suppliers . . . . . . . 7 Reporting .... . . . . . . . . . . . . . . . . . . . . . . . . . 8 III. INSTITUTIONAL PERFORMANCE .... . . . . . . . . . . . . . . . . . 8 Organizational Development .... . . . . . . . . . . . . . . . . 8 Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Training .... . . . . . . . . . . . . . . . . . . . . . . . . . 9 IV. OPERATING PERFORMANCE .11 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Water Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Unaccounted-for Water .11 Sewerage Coverage .12 Urban Poor ........ . 12 V. FINANCIAL PERFOR4ANCE .12 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Operating Results . . . . . . . . . . . . . . . . . . . . . . . . . 13 Tariffs .13 T:his document has a restricted distribution and may be used by fecipients only in the performance of their offcial duties. Its contents may not otherwise be disclose without World Bank authorization.  TABLE OF CONTENTS (Cont.) Page No. VI. WORLD BANK PERFORMANCE .... . . . . . . . . . . . . . . . . . . . 13 VII. PROJECT JUSTIFICATION . ........... ... ........ 14 Project Achievements .... . . . . . . . . . . . . . . . . . . . 14 Least-cost Solution . . . . . . . . . . . . . . . . . . . . . . . . 14 Socio-Economic Analysis .... . . . . . . . . . . . . . . . . . . 14 VIII. CONCLUSIONS AND LESSONS LEARNED ... . . . . . . . . . . . . . . . 15 Conclusions .... . . . . . . . . . . . . . . . . . . . . . . . . 15 Lessons Learned .... . . . . . . . . . . . . . . . . . . . . . . 15 ANNEXES 1.1 Withdrawal of Loan Proceeds . . . . . . . . . . . . . . . . . . . . . 16 1.2 Comparison of Appraisal Estimates and Actual Project Costs . . . . . 17 1.3 Details of Water Supply and Sewerage Components . . . . . . . . . . . 18 2.1 Loan Disbursements ........................ . 19 3.1 Organization of the Water Supply Corporation . . . . . . . . . . . . 20 3.2 Zarqa/Ruseifa Branch - Proposed Organization Chart (1982) . . . . . . 21 3.3 Organization of the Water Authority - 1984-1987 . . . . . . . . . . . 22 3.4 Organization of the Water Authority - Ministry of Water and Irrigation (1988) .... . . . . . . . . . . . . . . . . . . . 23 3.5 Organization of a Governorate Water Administration - 1988 . . . . . . 24 3.6 Organization of the Zarqa Water Administration . . . . . . . . . . . 25 4.1 Components of Unaccounted-for-Water - Greater Amman Area ... . . . 26 5.1 Income and Expenditure Statement - Water Authority Consolidated . . . 27 5.2 Sou' e and Application of Funds - Water Authority Consolidated . . . 28 5.3 Balance Sheets - Water Authority Consolidated . . . . . . . . . . . . 29 5.4 Water and Sewerage Tariffs ..................... . 30  HASHEMITE XINGDOM OF JORDAN LOAN-2213-JO z*maRO/RUSFA 'WATER SUPPLY AND SEWERAGE PROJECT PROJECT COMPLETION REPORT PREFACE This report reviews the preparation, implementation and achievements of the Zarqa/Ruseifa Water Supply and Sewerage Project (Loan 2213-JO), for which a loan of US$17.0 million was made to the Hashemite Kingdom of Jordan. The loan agreement was signed on January 17, 1983, became effective on July 21, 1983, and was closed on June 30, 1989. The Water Supply Corporation was the implementing agency of the Borrower until January 1984 when the Corporation was absorbed into the newly created Water Authority, This Project Completion Report was prepared by the Infrastructure Division CDIII of the Europe, Middle East and North Africa Region on the basis of a Completion Report prepared by the Water Authority (EMENA File No. H27424) and a review of the Staff Appraisal Report, the Loan and Project Agreements, and other pertinent reports related to project implementation. The commendable efforts of WAJ's staff for a well prepared report, and in particular of WAJ's Technical Advisor, are hereby acknowledged. This PCR was read by the Operations Evaluation Department (OED). The draft PCR was sent to the Borrower on May 8, 1990 for comments by June 15, 1990 but none were received.  HASHERITE KINGDOH OF JORDAN LOAN 2213-JO ZAROAIRUSEIFA WATER SUORL= AND SEWERAGE PROJECT PROJECT COMPLETION REPORT BASIC DATA SHEET KEY PROJECT DATA Item Appraisal Actual Total Project Cost (US$ million) 103.68 85.88 (JD million) 35.92 33.02 Loan Amount (US$ million) 17.00 17.00 Disbursed 17.00 Repaid to 01/31/90 3.93 Outstanding 01/31/90 13.07 Beneficiary Hashemite Kingdom of Jordan Executing Agency Water Authority Follow on Projects: Eight Cities Water Supply and Sewerage Project (Loan 2425-JO) Greater Amman Water Supply and Sewerage Project (Loan 2483-JO) Jordan Water Supply and Sewerage Project (Loan 2694-JO) Financial Performance Revenue covenants not met Institutional Performance Construction: Good Operation and Maintenance: Insufficient Q"nu_d EOdbd nd Ad Dkbub_a m -m -m - im im i XAppMtS E0mai 040 4.20 60 12.70 1.30 17.00 17.0 Omburaenn PMII 0.00 1.02 &74 687 1s60 16.49 17.00 ACum 0.0 9.26 10.90 12.35 14.2 1657 17.00 A a % of Entm 16n0 22024 12Z47 9724 9=33 97.47 100.0 A as % d Obbu. - 00K6 291.44 142.45 105.00 10Q49 100.00 Dale of Rnal DtSbumnl * Decembe 12 1969  a - ili - Protect Timetable Date Date Date Item Planned BULWeytOt Aetual - Identification 01-Apr-81 (Executive Project Summary) - Preparation 12-Sep-81 - Appraisal Mission 25-Feb-82 - Loan Negotiation 13-Sep-82 - Board Approval 07-Dec-82 - Loan Signature 17-Jan-83 - Loan Effectiveness 17-May-83 01-Aug-83 21-Jul-83 - Project Completion 31-Dec-88 31-Aug-88 - Loan Closing 30-Jun-89 30-Jun-89 Use of Bank Resources - (A) Staff InMuts (Staffveeks) Stage of Proiect Cycle Planned _Revised / Final Comments Through Appraisal 39.6 Appraisal through 66.5 Board Approval Board Approval 3.5 through Effectiveness Supervision 32.4 Actual to November 30, 1989. Total 142_Q In Not available.  - iv- Us,e of B&aik Resources - (B) Missions Stage of Month/ Number of Days Specialization Types of Project Cyce year _eXsons In Field Represented 1/ Problems 1/ Through Appraisal: Identification 2/ Apr-81 3 8 SE/FA/SE Preparation I Sep-81 2 6 SE/FA Preparation II Jan-82 2 SE/FA Appraisal throueh Board: Appraisal Mar-82 4 23 SE/FA/OP/CO Appraisal Update 2/ May-82 2 10 SE/FA Board thX2Mgb ffectiveness: J/ Feb-83 2 14 SE/FA M/O SunervLsion: Supervision I i/ Sep-83 1 7 SE M/O Supervision II i/ Feb-84 2 11 SE/FA M/O Supervision III 2/ Jan-85 2 10 SE/FA M/O Supervision IV 4/ Jul-85 1 13 FA M/O Supervision V 4/ Sep-86 2 7 SE/FA M/O Supervision VI i/ Apr-87 2 21 SE/FA M/O Supervision VII