Uganda - Second Water Supply Project

Docwnent of The World Bank FOR OFFICIAL USE ONLY Repot No. P-5214-UG MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 45.1 MILLION TO THE GOVERNMENT OF UGANDA FOR A SECOND WATER SUPPLY PROJECT MARCH 22, 1990 This document has a restricted distribution and may be used by recipients only In the performance of their official duties. Its eontents may oot otherwie be disclosed without World Bank authorization.  CURRE (December 1, 1989) Currency Ut - Uganda Shilling (USh) US$1.00 USh 370 USh 1.00 . US$0.0027 SDR 1.00 - US$1.26 FISCAL YEAR Governmet, NSC July 1 to June 30 WEIGHTS AND IMKSURES metric System ABBRVIATIONS ANID ACRONM Af DI - African Developmet Bank CTB - Central Tender Board DANIDk - Danish Internatinal Development Agency EEC - European Economic Cmity aOU * Government of the Republic of Uganda sTz - Gesellachaft fuer Techniche Zusamearbeit ICB - Iaternational Competitive Bidding KCC - Kampala City Council KEW - lredtanstalt fuer Wiederaufbau LCB - Local Comtitive Bidding NPED instry of Planning and Ecoamic Development SWED - MMinistry of Water and Mineral Development NWSC - National Water and Sewarage Corporation PCU - Project Coordination Unit RIG - Regional Water and Sanitation Group (Nairobi) UNICEF - United Nations International Children's Emergency Fund WHO - World Health Organization UDD - Water Development Department  FOR OFFICML USE ONLY UGANDA SECOND WATER SUPPY PROJECT CREDIT AND PROJECT S9HMARY Borrower t The Government of Uganda Beneficiary s National Water and Sewerage Corporation (NWSC) Amount $ SDR 45.1 million (US$60.0 million) Terms s Standard, with 40 years maturity Relendina Terms s Government to provide US$58.44 million of the proceeds half as equity and half as loan to NWSC Prolect Financing Plan : IDA - US$ 60.0 million Other Donors - US$ 45.9 million GovernmentlNWSC - US$ 11.9 million ERR s About 8 percent Staff Aiwraisal Report : Report No. 8254-UG dated March 8, 1990 map s IBRD No 21985 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 authorizatio-!j  HEKORANDUN HAD RECONMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DRVELOPKENT ASSOCIATION TO THE mCUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE GOVERNMENT OF UGANA FOR A SECOND ATER SUPPLY PROJECT 1. *The following memorandum and recommendation on a Proposed Credit to the Government of Uganda for SDR 45.1 million (US$60.0 million equivalent) is submittod for approval. The proposed Credit would be on standard IDA terms with 40 years maturity; Government would provide US$58.44 million of the proceeds to the National Water and Sewerage Corporation (NWSC), half as equity contribution and half as a loan at commercial interest rates. 2. Country Strategy and World Bank Support. The Bark's country assistance strategy aims to support, in collaboration with the IMF, the Government's short and medium term development strategy. Its major thrust is to stabilize the domestic and external imbalances in the economy through prudent fiscal and monetary policies and a flexible exchange rate policy. These policies are to be supported by actions which serve to remove key impediments to efficient productionz qnd exports and provide the basis for a more effective management of public resoarces over the medium term. The rehabilitation of physical and social infrastructure, the effective axnagement of the environment and support for human capital development in turn underpin these actions. The Bank assistance strategy contains both policy adjustment and project investment operations. The proposed Project is an important componcat of Uganda's investment operations and fits in Uganda's sector strategy for water supply and sanitation. 3. Water Suvply and Sanitation Sector Strat