Burundi - Rural Water Supply Project

Document of TheWorld Bank FOR OFFICIALUSE ONLY PROJECT COMPLETION REPORT REPUBLIC OF BURUNDI SECOND WATER SUPPLY PROJECT (CREDIT 1625-BU) JUNE 11, 1 9 9 3 Infrastructure Operations D i v i s i o n S o u t h - C e n t r a land Indian Ocean Department Africa R e g i o n a l O f f i c e This document has a restricted distribution and may be used by recipients only in tbe performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  FISCAL YEAR OF BORROWER January 1 to December 31 CURRENCY EQUIVALENTS Currency Unit I Burundi Franc (Fbu) US$l.oo I Fbu 120 (October 1984) US$1.00 (Actual annual average) I Fbu 123 (85), Fbu 151 (86) Fbu 161 (87), Fbu 201 (88) Fbu 232 (89), Fbu 232 (90) WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS AfDB - African Development Bank (Banque africaine de d6veloppement) AGCD - Belgian Cooperation Agency (Administration g6n6rale de la coop6ration) Arab Bank for Economic Development in Africa (Banque arabe pour le dBveloppement Bconomique en Afrique) DGHER - General Directorate of Rural Water Resources and Energy DHA - Department of Rural Water Resources and Sanitation DHER - Department of Rural Water Resources and Electricity Kfw - Germany Aid Fund (Kreditanstlat fur Wiederaufbau) MDR - Ministry of Rural Development (Ministere du d6veloppement rural) MDRA - Ministry of Rural and Artisanal Development (Ministere du d6veloppement rural et de l'artisanat) REGIDESO - National Water and Electricity Authority (Rbgie des Eaux) UNICEF - United Nations Children's Fund  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. 'fice of Director-General Operatiow Evaluation June 11, 1993 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND TEIE PRESIDENT SUBJECT: Project Completion Report on Burundi Rural Water SUDD~YProject (Credit 1625-BUL - Attached is the report entitled "Project Completiou Report on Burundi Rural Water Supply Project (Credit 1625-BU)" prepared by the Africa Regional Office with Part 11 contributed by the borrower. The project represents a rare success of Bank involvement i n rural water supply. It features a high level of community participation, an effective approach t o (0 b M) cost recovery and an innovative health education campaign. The project achieved a l l its objective8 and, accordingly, it i e rated a s highly satisfactory, its sustainability as likely and its institutional development as substantial. The PCR is of excellent quality. The project may be audited t o assess its replicability. - - ~~~ This docunent has a restricted distribution and m y k used by recipients only in the porfornwce of their official duties. I t s contents m y not othenise k disclosed without Uorld Bank authorization.   FOR OmCIAL USE ONLY PROJECT COMPLETIOR REPORT nsmmm . PLY PRO-dit 1625 BVL Preface . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ................ii i Evaluation Sumnary PART Ir PROJECT REVIEW FROM BANK'S PERSPECTI= . . . . . . . . . . . . . . . . . . . . . . . . 1. Project Identity 1 . 2 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . . . . . . . . . . 3 Project Objective8 and Deecription 2 Project Objective8 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .............. 2 Project Deecription 3 . . . . . . . . . . . . . . . . . 4. Project Deeign and Organization 3 . . . . . . . . . . . . . . . . . . . . . . 5 Project Implementation 3 . . . . . . . . . . . . . . . . . . . . . . . . . 8 Bankperformance 7 10 Project Relationship . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . 11 Coneultant Servicee . 8 12. Project . . . . . . . . . . . . . . . . . Documentation and Data 8 . . . . . . . . 11: PROJECT REVIEW FROM -'S PEWECTIVE 9 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 dirclaed without World Bank authorization .  Table of Contern (Cont.) PART 111: STATISTICAL IN-TION 1. Related IDA credits . . . . . . . . . . . . . . . . . . . . . . .14 2. Project Timetable . . . . . . . . . . . . . . . . . . . . . . . .14 3. Credit Diebureemento . . . . . . . . . . . . . . . . . . . . . . 15 4. Project Implementation . . . . . . . . . . . . . . . . . . . . .16 5. Project Coete and Financing . . . . . . . . . . . . . . . . . . .17 . . . . . . . . . . . . . . . . . . . . . . . .17 A ProjectCoets . . . . . . . . . . . . . . . .18 B .. Credit Allocation by Category 6. Project Results . . . . . . . . . . . . . . . . . . . . . . . . .18 7. Statueof Legal Covenants . . . . . . . . . . . . . . . . . . . .20 8. Uee of Bank Resources . . . . . . . . . . . . . . . . . . . . . .21  PROJECT COMPLETION REPORT BURUNDI SECOND WATER SUPPLY PROJECT (Credit 1625-BU) PREFACE 1. Thie is the Project Completion Report (PCR) for the Second Water Supply Project (or Rural Water Supply Project), for which Credit 1625-BU in the amount of SDR 9.6 million war approved on September 10, 1985. The Credit wae closed on December 31, 1991, or originally rcheduled. Itwae fully disbureed and the laet diebureement wae on May 14, 1992. 2. The PCR war jointly prepared by the Infraetructure Operatione Divieion of the South-Central end Indien Oceen Department, Africa Regional Office (Preface, Evaluation Sumnory, Partr I and 111) and the Borrower (Part 11). 3. Preparation of thir PCB woe etarted during the Bank'e final eupervieion mireion of the project in April 1992, and ie based, inter alia, on the Staff Appraisal Report; the Credit Agreement; eupervieion reports; correepondence between the Bank and the Borrower; and internal Bank memoranda.   PROJECT COMPLETION REPORT BURUNDI 1) EVALUATION SUMMARY Objectivee 1. The project's mojor objectives were to: (i) improve the quality and quantity of water provided to the rural population; (ii) improve the living conditions of the rural population by reducing walking distances to water supply points; (iii) give the rural population greater responsibility in the area of maintaining its water supply facilities; and (iv) help the Government make proper institutional and financial arrangements for the rural water supply subsector (para. 3.01). Implementation 2. The Department of Rural Water Resources and Electrification (DEER) of the Ministry of Rural Development (MDR) was responsible for implementation of the whole project, assisted by the Project Unit (PAEMR) . This Unit was strengthened by three expatriates: a project coordinator, a water systems maintenance engineer and an accountant. By decree No. 1001209 of December 22, 1988, MDR became the Ministry of Rural and Artisanal Development (MDRA), and DEER became the General Directorate of Rural Water Resources and Energy (DGHER), with a new Department of Rural Water Resources and Sanitation (DHA). 3. Thanks to the skills of its local and expatriate staff, the Project Unit worked efficiently and obtained very good results. Despite suspension of the works for about six months in 1988 (see para. 5.02), all the worke were completed by August 1990, five months ahead of schedule, and within the appraisal cost estimate (para. 5.07). The bidding documents were prepared correctly and on schedule, and no particular problems arose during the bid appraisal process (para. 5.03). Supervision of the worke progressed satisfactorily, with the help of the consulting firm that had carried out the feasibility studies and the final engineering (para. 11.01). Contractor performance wae also satisfactory. Results were less marked on the institutional and financial sides. The local staff of the Project Unit were well trained and would have been able to implement the follow-up Water Supply Sector Project, but they were assigned to other departments before the end of the project (para. 6.05). 4. The project was based on the decision taken by the Government in January 1985 to entrust the local authorities, with the responsibility for operation and maintenance of the water supply systems, and to institute cost recwery measures. The Project Unit started to implement this policy, but three months after the September 3, 1987 coup dt6tat, the Government decided that the communes would pay the water charges and not the beneficiaries. It took a year to convince the  Gwernment to respect the original Agreement, which meant that implementation of the institutional and financial arrangements was also a year behind (para. 6.06). Results 5 . Overall, the project was successful in meeting its primary objective of improving access to potable water in rural areas covered by the project. In addition, it had a considerable impact on the subsector as a result of the proposed institutional and financial arrangements, which helped the Gwernment adopt a viable policy giving full responsibility for operation and maintenance of water-supply systems to the beneficiary population, with oversight from the communes (para. 6.06) and guidance from DGHER. Despite the difficulties encountered at the time the policy was adopted (para. 5) ,the project led to the creation of 82 Communal Water Authorities tR6gies connnunales de l*Eau] in the country's 114 communes. Although these authorities are not yet running smoothly, their creation represents an encouraging first step, and the ongoing Water Supply Sector Project, approved on July 16, 1991, should further improve the situation (para. 6.07). The project also financed the feasibility and final design studies for preparation of the ongoing Water Supply Sector Project (Credit 2288-BU) . Sustainability 6 . The project helped DGHER strengthen its management and its organization. It also paved the way for the Water Supply Sector Project (Credit 2288-BU), which covers almost the whole country and is financed jointly by IDA, Belgium (AGCD), Germany (KfW), UNICEF and NGOs. This project will enable the Government to implement the new institutional and financial arrangements nationwide (para. 7.01). Findings and lessons learned 7. The technical aspects of the project were performed by DGHER satisfactorily and on schedule with the help of foreign consultants. Hawever, as happens in many developing countries and with many projects, the financial and institutional arrangements were difficult to implement owing to Gwernment reluctance to impose a water charge on the beneficiaries and to give the local authorities the desired managerial and financial autonomy. Overall project assessment 8. The project clearly achieved its social, health and institutional goals. Preparation of the follaw-up Water Supply Sector Project, n w in progress, has also been satisfactory, and this latter project should help consolidate the present project's achievements w e r the long term, in particular by ensuring nationwide adoption of the system allocating responsibility for rural water scheme management to the Communal Water Authorities. Overall, the project may be considered satisfactory.  SECOND WATER SUPPLY PROJECT (CREDIT 1625-BU) PROJECT COMPLETION =PORT PART I: PROJECT REVIEW FROM BANK'S PERSPECTIVE 1. Project Identity Name : Second Water Supply Project Credit Number : 1625-BU RVP Unit : Africa Region Country : Burundi Sector : Water Supply and Sanitation 2. Background 2.01 Water supply in rural areas used to be the responsibility of the Department of Rural Water Resources and Electricity (DHER),established by Decree No. 100/18 of February 2, 1979 within the Ministry of Rural Development (MDR). DHER was in charge of planning, design, construction, operation and maintenance of all rural water supply schemes. However, due to the lack of funds, skilled personnel, and proper institutional and financial arrangements, most of the rural water supply systems in existence at the time the project was initiated were not being maintained. DHEKwas also responsible for the production and distribution of electricity in rural areas throughout the country. 2.02 The Second Water Supply Project was the second project financed by IDA in Burundi for the water and sanitation sector. IDA had been involved in an early water supply project (Credit No. 85-BU for USS1.1 million, signed on March 31, 1966). designed to improve and expand Bujumbura's water supply system. This project was completed in 1972. At the request of the Covernment, the Bank sent a mission to Burundi in b y 1979 to identify a second project in the water supply and sanitation sector. The mission identified a project comprising two components: sanitation works in Bujumbura, comprising in particular works not financed by the African Development Bank (AfDB) and the Arab Bank for Economic Development in Africa (BADEA), and rehabilitation of rural water supply systems throughout the country. The mission believed it would be possible to finance the sanitation works in Bujumbura as long as organizational and financial studiee were carried out, since thoee already in existence were inadequate and incomplete. Concerning the rural water supply component, feasibility studies would need to be carried out. 2.03 To finance thoee studiee, on March 13, 1981 the Government submitted a request for a PPF advance of US$470,000, which was approved on May 19, 1981. Feasibility studies for the rural water supply component were awarded to a French consulting firm. However, the Ministry of Finance had not approved the award to the firm concerned, and asked that the contract be awarded to the firm submitting the lowest price. Following lengthy discussions, the Association accepted this position on April 1, 1982.  2.04 I n April 1981, the Bank was asked t o include a water supply component for Bujumbura i n the project. The estimated cost of USS15 million would be financed 50%by IDA and 50%by KfW. On April 16, 1982, IDA responded that priority should be given t o the rural sector, i n view of the fact that a US$lS million credit had recently been approved for the First Urban Development Project. This meant that only one third of the proposed US$10 million credit would be allocated t o the urban sector, and thus neither the Bujumbura water supply nor the Bujumbura sanitation components could be included i n the project. It was then proposed to include an improved p i t l a t r i n e component for the low income areas of the city. The sanitation department of REGIDESO, was so reluctant t o implement a cost recovery system for the p i t latrine component, and t o have the works done by private contractors, that the appraisal mission decided t o abandon t h i s component. 2.05 Feasibility studies were carried out for 47 rural water systems. During the course of the studies, the number of water supply systems t o be rehabilitated was reduced from 47 t o 41: three systems were withdrawn because financing was found from another source, and three systems were combined with other systems. I n addition, eight systems located i n rural areas close t o towns served by REGIDESO posed problems of overlapping with systems b u i l t o r planned by REGIDESO with KfW financing. No agreement was reached on institutional and financial aspects, and i n July 1984, the preappraisal mission reconrmended withdrawing these 8 systems from the project, leaving a t o t a l of 33. 2.06 Currently, the respective responsibilities of REGIDESO and DIIER were not clearly defined, particularly i n the rural areas surrounding the towns served by REGIDESO. This was a serious problem, because standpipe users i n urban areas did not pay for water, since REGIDESO billed the communes for t h i s service. This question was addressed within the context of an institutional and t a r i f f study, financed by AfDB, which recoomended limiting REGIDESO'e activities t o urban areas. The Government eventually agreed with t h i s recommendation, which is t o be implemented under the ongoing Water Supply Sector Project (credit 2288-BU). 2.07 During project preparation, agreement was reached with UNICEF t o include i n the project the development and protection of 2,500 springs. UNICEF would have been executing agency for t h i s component and would have contributed t o its financing. The Government agreed i n principle t o include t h i s component i n the proposed project, but wished t o find a grant t o finance it. Since t h i s condition had not been met by preappraieal, MDR requested, on July 10, 1984, that t h i s component be withdrawn from the project. 3.01 Proiect obiectives: The project's major objectives were to: (i)improve the quality and quantity of water provided to the rural population; ( i i ) improve the living conditions of the rural population, i n particular by reducing walking distances t o water supply points; ( i i i ) increase the rural population's sense of responsibility for maintaining its water supply facilities! and (iv) help the GovernmentmPke proper institutional and financial arrangements for the rural water supply subsector.  3.02 Project description: The project consisted of the rehabilitation and extension of 33 existing rural water supply systems. It also included: (i) reinforcement of DHER, through the provision of technical assistance and equipment; (ii) a training program, offered both abroad and locally, for DEER and communal personnel, and a sensitization program for the local population; (iii) engineering services for construction supervision; (iv) external audits of DHER; and (v) feasibility studies of about 40 other rural water supply systems. 4. Project design and organization 4.01 The project concept was developed, with inputs from Bank staff, by the participating institutions and ministries over a five-year period (05179 to 07/84). The length of this preparation period was due to the time needed to recruit a consulting firm for the design work (three years), to the numerous changes in project scope requested by the Government (paras. 2.04 to 2.07), and to the reluctance of the Government to give full responsibility for operation and maintenance to the beneficiary population and to impose water charges on standpipe users. The formal decisionwas not taken until January 28, 1985, three months after project appraisal. Finally, the project was well prepared in terms of both timing and scope. 4.02 Since its creation in 1979, DHER had been executing all the rural water supply schemes of the rural communes on force account, also being responsible for their operation and maintenance, without any beneficiary involvement or any kind of cost recovery. During project preparation, it was agreed that the role of DHER would be limited to planning, financing, works supervision, and oversight of operation and maintenance. DHER, reinforced by a Project Unit, would thus be responsible for the monitoring of project implementation, carried out by contractors that were themselves overseen by consulting firms. The Project Unit comprised a technical assistance team of three persons: a project coordinator, a maintenance engineer, and an accountant, supported by local staff. By decree No. 1001209 of December 22, 1988, MDR became the Ministry of Rural and Artisanal Development (HDRA), and DHER became the General Directorate of Rural Water Resources and Energy (DGHER), including a Department of Rural Water and Sanitation (DHA). 5. Project Implementation 5.01 Credit effectiveness and project start-UD: The credit was approved on September 10, 1985 and signed on October 11, 1985. Effectiveness, originally scheduled for January 15, 1986, was postponed to March 31, 1986. The only condition of effectiveness was the recruitment of the project coordinator. The credit was declared effective on February 6, 1986. 5.02 Implementation schedule: Project implementation was originally scheduled to be completed by December 31, 1990. In August 1988, two of the water systems (Ntega and Ruhehe) were heavily affected by civil unrest in the north of the country, and construction was stopped for five months. Also in 1988, the worke were delayed because the Government was reluctant to charge the population for water use, and a supervision mission suggested that the project (para.6.06) be halted. Nevertheless, a11 the works were completed by August 1990. The only remaining activities were the final design studies for the follow-up project in  process of preparation, these studies not having been initially included in the project, and two additional water schemes. 5.03 Procurement: The procurement process started out slowly but proceeded satisfactorily. The works were divided into three packages of about 10 water systems each, to be awarded over three years. Since the final engineering had been completed for packages I and 11, it was decided to issue a blanket bid call for the two of them. The process started in June 1986, and bids were submitted on September 17, 1986. The bid appraisal report proposed awarding packages 1 and 2 to the same contractor. The bid prices were about 10% below the appraisal estimates. IDA approved the award on January 12, 1987, and the contract was signed on March 10, 1987. 5.04 Package 111 was divided into two parts: one to be awarded by international competitive bidding (10 water supply systems) and one by local competitive bidding (3 systems). On April 21, 1987, MDR proposed extending the contract for packages I and I1 to include package 111, in order to save time and money, based on the initial prices, which were very competitive. The Association agreed, except for the three systems to be awarded locally. 5.05 During the appraisal mission, MDR requested the Belgian aid agency (AGCD) to finance the salary of the project coordinator in the Project Unit. This was approved, and the coordinator was appointed on December 24, 1985 (this appointment being a condition of effectiveness). His contract expired in June 1986, and MDR informed the Belgians that it would not be able to extend his assignment. The Belgian cooperation service refused to finance another expert, with the result that a call for proposals was issued to recruit another coordinator. The Association accepted the new expert proposed by MDR on December 23, 1986. 5.06 The contract for the feasibility studies of 40 other rural water supply systems was awarded to a French consulting firm, approved by the Association on March 9, 1987. The studies were completed in December 1988. Since the depreciation of the US dollar against the SDR had led to an increase of over USS3.0 million in the amount of the Credit, IDA agreed to finance the final design studies for the follow-up project under Credit 1625-BU. MDR proposed offering the contract directly to the same consulting firm, because the feasibility studies had been carried out on time and satisfactorily. IDA had no objection to this proposal, but the Central Awards Committee of the Ministry of Finance did not approve. An international invitation to consultants was issued, and the resultant proposals were submitted on November 8, 1989. The contract was awarded to the Belgian consulting firm already responsible for supervision of the construction works. 5.07 proiect costs: A comparison between the appraisal estimates and the actual costs of the project is given in Part 111, section 5. The appraisal cost estimate was USS10.87 million (about SDR 11.0 million). During project implementation, the US dollarlSDR exchange rate went from USS0.99 to USS1.37 to SDR 1, increasing the amount of the Credit from USS9.5 million (originally SDR 9.6 million) to USS12.5 million. This made it possible to finance not only the final design studies of the follow-up project (para. 5.06), but also additional training and equipment for DEER, as well as two additional water supply systems.  5.08 Disbursements: In Part 111, Table 3, actual annual disbursements of the Credit are compared with the appraisal estimates and the profile of water and eanitation project disbursements in Africa. Disbursements were spread over 6.5 years, following pretty closely the profile of water supply projects in Africa. A six-year disbursement period had been estimated at appraisal, but as the result of the US dollarlSDR depreciation USS12.5 million was disbursed, against the appraisal estimate of USS9.5 million. The original closing date of December 31, 1991 was respected, and disbursements took place through May 14, 1992. The Credit was fully disbursed. 5.09 Credit allocation: The original allocations by category and the actual disbursements under Credit 1625-BU are shown in table 5.B. Part 111. There was no formal reallocation, but the denomination of Category 111 was changed by a letter dated July 9, 1987 requiring the term "Project Implementation Unit" to be inserted before the term "Consultant Services," to cover the disbursement of the funds for the Project Unit. Category I (civil works) shcrved a cost overrun of SDR 820,000, while category I1 (vehicles, equipment and supply of pipes) was underrun by SDR 767,000, because the categories as defined in the Credit Agreement did not correspond to the contracts signed, in particular with respect to the supply of pipes, which was included in the main civil works contract. Since there was no overrun for the actual works component, most of the unallocated category was ueed for consultant services and training. In addition to the feasibility studies of the 40 new rural water supply systems originally planned, the Credit financed the final design studies of these 40 new systems and also the preparation of the Water Supply Sector Project now under implementation. 6. Project results 6.01 Pro.iect obiectives: Overall, the project was successful in meeting its principal objectives of improving access to potable water in the 33 areas covered by the project. The project also assisted in strengthening the management and organization of DHER and its capacity to implement subsequent projects, even though several key local staff members left the department before the end of the project. 6.02 The project has contributed to the overall development of the rural water supply subsector in Burundi. In particular, the institutional and financial arrangements implemented under the project for the rural water supply subsector have had a substantial impact, helping the Government adopt a policy allocating full responsibility for operation and maintenance of the water supply schemes to the beneficiary population, with oversight from the caPlmunes. The project paved the way for preparation of the Water Supply Sector Project (credit 2288-BU, signed on August 7, 1991) which covers the whole country and involves two other cofinanciers (Belgium and Germany), as well as UNICEF and NGOs. 6.03 In addition, the project helped the Government to improve organizational structures, particularly that of DHER, and to better identify the respective responsibilities of DEER and REGIDESO. 6.04 Phvsical results: The physical targets of the project were substantially achieved. The 33 rural water supply schemes included in the project were rehabilitated and expanded ae planned. In addition, since there were some funds  available at the end of the project, owing to the appreciation of the SDR against the US dollar, two additional water systems were financed. 6.05 Institutional ~erformance: On the institutional side, the project objectives were twofold: (1) strengthen DGHER, the implementing agency, and (ii) put in place new institutional arrangements for the operation and maintenance of rural water supply systems. The first objective was satisfactorily achieved, thanks to a comprehensive training program and to the continuing education provided by the technical assistance team. This highly-qualified and efficient team remained on hand throughout the implementation period. Hawever, the project's impact on DGHER was lees marked than expected because the local supervisory staff of the project unit were transferred to other positions: the local project coordinator was promoted to the post of director general of the Tobacco Agency [ROgie des Tabacs], the accountant was promoted to the post of chief of the new Planning and Studies Bureau [Bureau de la planification et des ~tudes],reporting directly to the Minister, and the maintenance engineer moved to REGIDESO. 6.06 The process of introduction of the new institutional arrangements for the operation and maintenance of rural water supply systems was not without difficulties. As early as the project preparation stage, the Government had expressed reluctance about giving full responsibility for the operation and maintenance of rural water schemes to the beneficiary population, and introducing cost recovery measures. Official Government approval was not forthcoming until January 28, 1985, three months after project appraisal (this being a condition of negotiations). The Project Unit launched a sensitization program for the communal authorities and the local population concerned by the project, but this was halted by the Government in December 1987, three months after the September 3, 1987 coup d'btat. The Government officially informed the Association in June 1988 of its decision to have the communes, and not the beneficiaries, pay the water charges. Since this decision did not conform to the provisions of the Credit Agreement, and indeed ran counter to the project's principal objectives, the Association decided in October 1988 to suspend the works. The decision to adhere to the original agreement was ultimately taken by the Minister of Rural Development in Washington in January 1989. The new institutional and financial arrangements were initially implemented in three pilot communes, and were then extended to all of the project water systems. These various problems held the project up by more than a year. 6.07 Despite the problems involved in the adoption of these measures they led to the creation, within the project framework, of 82 Communal Water Authorities (in a total of 114 communes). Not all these Authorities are yet working to expectations: most of the 32 set up by the project are operating relatively well, 25 are acceptable, and 25 are in need of a supervisory structure and training facilities. Cost recovery arrangements have been established in most of these communes, not only for standpipe users, but also for the users of developed springs. The rate of recovery varies from 78% to less than 20% in the communes where Water Authorities were established only recently. Nonetheless, this is a good start, and the Water Supply Sector Project should ensure that the situation continues to improve and that the system is extended to all the communes.  6.08 Financial verformance: The project accounts were regularly audited by an external auditor, and the reports were received (with some delays) by the Bank. There was some discussion about the accounts being presented i n Burundi francs, US dollars and SDRs. However, the auditor never had any problem with this. On the other hand, the accounts of DHER, and subsequently of DGHER, were criticized by the auditor every year, ond he refused t o approve those for 1989. In October 1990, the Water Supply Sector Project appraisal mission recommended that an expert be hired for 4-6 months t o update and complete the 1989 accounts, have them audited, and submit them t o IDA before the Water Supply Sectoral Project was presented t o the Board. This was done, the situation improved appreciably, and the 1989 and 1990 accounts were approved. 6.09 With respect t o payment of the water charges, the Communal Water Authorities were t o b i l l customers with house connections and standpipe users as soon as the syetems were i n operation, so as t o cover operational and maintenance costs. Despite certain delays, mainly resulting fromthe Government's hesitancy (para.6.06), this new system i s n w being implemented i n the 82 Communal Water Authorities that have been oet up. The water charges are FBu 36/m3 for customers with a house connection, FBu 2001yearlhousehold for users of gravity-operated standpipes, FBu 500/year/household for users of pump-operated standpipes, and FBu 50 or FBu 1001year/household for users of developed springs. The recwery rate varies from 78% t o 20% i n communes where the cost recovery system was established only recently. Details are given i n Part 111, section 6. 7. Project sustainability 7.01 The project has had a significant positive impact i n that it has caused new institutional and financial arrangements t o be put i n place i n the rural water supply subsector, giving f u l l responsibility t o the beneficiary population for operation and maintenance of rural water schemes, with the oversight from the communes, and assuring cost recovery and hence the sustainability of the installed facilities. DGHER and the Government need t o continue their efforts i n the areas of institutional development and coat recwerp. The ongoing Water Supply Sector Project is expected t o provide immediate assistance on this aspect, but efforts w i l l need t o continue. 8. Bank performance 8.01 Supervision by IDA was relatively continuous, with only one change i n task manager, which occurred twards the end of the project. During implementation, a total of 12 successive supervision missions visited Burundi, a t the rate of 2 a year. Some 117.1 staff-weeks were spent on this project over the entire project cycle, which i s lw. The details of staff input and miseions are given i n Part 111, section 8. 8.02 IDA'S performance was satisfactory. The project was well prepared, appraised and supervised. IDA'S efforts i n the institutional and financial areas were effective, particularly i n 1988, when it convinced the new Government t o respect the terms of the Credit Agreement and not to override the decisions taken i n January 1985 on institutional and cost recovery policies.  9. Borrawer performmce 9.01 On the technical side, thanks t o the help it received from the Project Unit, DCHER turned i n an excellent performance: the bidding process progressed on schedule, with the bid appraisal reports prepared on time and the contracts concluded without any problem and within the appraisal cost estimates. On the financial side, the results were not so good: there was no problem with the project accounts kept by the Project Unit, which was not the case with the DCHER accounts (para. 6.08). On the institutional side, implementation of the new policy f o r the r u r a l water supply subsector was delayed by one year, due mainly t o hesitancy on the part of the Government. 9.02 Quarterly reports were submitted by DCHER t o IDA i n a timely manner up t o the end of 1989. There have been no progrees reports since then. DCHER retained an independent auditor t o prepare both its own and the project accounts. Audited accounts were prepared regularly up t o 1991. There were same delays a t the beginning, but generally the audit reports were received within one year a f t e r the end of the f i s c a l year concerned, instead of the six months stipulated i n the Credit Agreement (Section 4.0l.b.ii). 9.03 Despite requests from the missions, DCHER has not yet prepared a completion report. Part 11of the Project Completion Report should be submitted t o the Bank within two months. 10. Project relationehip 10.01 IDA'S relationship with DGHER on the project has been very good. Relations with the Government were d i f f i c u l t as a result of problems connected with implementation of the institutional and cost recovery measures, and IDA had t o threaten t o suspend disbursements i n order t o get the Government t o agree t o t h e i r implementation. Borrower-contractor relationships were alsovery good, but relations between the Borrower and the consultante were strained. 11. Consultant .emice. 11.01 The successful completion of the works, on schedule and within the limits of the appraisal estimate, would not have been possible without the high-quality consultant inputs received during project preparation and implementation. 12. Project documontation md data 12.01 The original documentation f o r the project was adequate and appropriate. The appraisal report provided a useful fremework f o r both IDA and DCHER i n t h e i r review of project implementation.  If: PRWBCT REVIEW FROM BORROWER'S PERSPBCTIW Part I of t h e PCR covets the project review from t h e Bank's perspective and represents, i n t h e Borrower's opinion, an excellent overview of the progress of t h e Second Water Supply Project (Credit 1625-BU). Its conclusions regarding t h e overall success of t h e project cannot be questioned. The Borrower has consequently decided t o use t h i e second part of the report eimply t o offer its viewpoints on certain components t h a t it found particularly gratifying and on certain aspects t h a t might have been dealt with differently a t t h e the of appraisal. The Borrower wishes t o emphaeize t h a t thanke t o t h e excellent relations of mutual t r u s t t h a t have always existed between the Bank on t h e one hand and t h e s t a f f of the General Directorate of Rural Water Resources and Energy (DGHER) and of t h e Project Unit on t h e other, it was possible, particularly towards t h e end of project implementation, t o bring a more focused approach t o t h e actions contained i n the project objectives, and t o establish continuity between t h i e project and the Water Supply Sector Project (Credit 2888-BU). Institutional organisation Although the Credit Agreement (1625-BU) s t a t e s t h a t t h e Borrower entruete t h e coamunee with "reeponeibility f o r t h e operation and maintenance of water supply systems," e f f o r t s by the Communal Water Authorities [R(lgien C o ~ n a l e nde 1'Bau] led t o t h e empowerment and Lnvolvement of t h e users of those systems . I n t h e f i r s t stage of t h e project, responsibility for t h e infrastructure lay primarily with t h e coamunal administration (the coramunal accountant keeping t h e accounts for the embryo water service) and the water supply attendants were more o r lese selected. Starting i n 1990, with application of the "Note of Instructions t o Governors o f t h e Provinces and Communal Administrators on the Organization of t h e Water Supply [?System] i n Rural Areas,' t h i s organization evolved considerably, with the o f f i c i a l creation of t h e Coamunal Water Authorities, based on the "r6gie an8ociativeWprinciple. This organization starts a t graasroote level, with a democratically elected coarmittee for each water point, be it a developed opring, a standpipe, o r a protected w e l l . These Water Point Coamitteee, composed of four o r five  benmficiariee per water point, of whom at l e a e t one must be a woman, together with reprmeentativee of houeeholde with private connectione and of t h e comune'e largest coneumere, conetitute t h e General Aeeembly of Ueers, which i n t u r n e l e c t s t h e Communal Uemre Coounittee, thm adminietrative and management organ of thm Communal Water Authority. One of t h e function. of t h e General Assembly of Ueers is t o approve the annual budget. of the Water Authority, and hence t o determine t h e level of chargee (monmtary contributions) t o be collected from t h e beneficiariee each year. The Communal Ueere Committee appoint. from among its members a chairman, vice-chairman, treaeurer and deputy treasurer, who are responsible f o r t h e day-to-day operation of t h e Water Authority. Thanke t o aeeietance from t h e Bank and t h e project etaf f , and t o t h e resourcee made available by t h e credit, t h i e organization, endowed with strong principle. and guidelinee, wae rapidly put i n place, even exceeding t h e project's 32-comune limit. I n tenw of developpent i n general, t h i e organization may be regarded as a eucceee, eince the operation, maintenance and management of the f a c i l i t i e s made available t o them by t h e camunity (Government) w e r e a l l taken over by t h e beneficiariee. Sxtureion-er~eitisationcampigno targmting thm bmnmficiary population The Project Appraieal Report referred t o a "program of sanitary education [deeigned t o ] eeneitize t h e population t o t h e uee of potable water." Ae i n t h e came of organization of t h e Water Authorities, t h e project here again exceeded i t e mandate. During implementation (June 1990) t h e expert i n charge of water eyetem maintenance l e f t t h e project f o r e t r i c t l y personal reasons. The German consulting firm replacod himwith another expert whose experience had been mainly i n t h e area of r u r a l eociology. e hie replacement expert arrived at t h e Project Unit just at t h e time when t h e local technical aeeietante aeeigned t o t h e Water Authorities w e r e largely able t o take reeponeibility f o r t h e i r aeeignmente. With e f f e c t from t h e l a e t quarter of 1990, t h e new expert'e work consisted almost exclusively of s e t t i n g up and developing extension-eenmitization campaigns on t h e following topicsr (i) Water i e l i f e ; drinking water i e health (ii) Continued acceee t o drinking water mean8 getting organized and paying our water chargee. Two exteneion teame were met up t o carry out these campaigns, each one coneieting of a male and female exteneion worker and having its own all- t e r r a i n vehicle. Tmaching aide were a100 aeeembledr picture boxes (health, and eector organization), flannelgraphe (organizationof Water Authorities), posters, booklete (drinking water 80 t h e eource of health and progress). After a three-  month training couree, theee two teame went out into the hillaides where they held exteneion-eensitieation meetings around the water points, encouraging the people to elect Water Point Committee6 and helping to eet up General Aeeembliea of Ueere. Here again, as with the eatabliehment of the Water Authorities, this exteneion-eeneitization drive was not limited to the project'e target communee, extending into all the other areae where the new Water Authoritiee wanted help in getting the local inhabitante to organize. The ecale of the effort actually expended in carrying out theee eeneitization programs wae much larger than the appraieal miaeion had foreeeen. In addition to the direct impact of the programs on the comunitiee involved, they aleo made it poeeible to develop teaching teame and tools that were eubeequently taken over by the new project. Both the extension methode and teaching aide ueed were offered to other agente, who have already started to make uee of them. Looking at the way the rural communitiee reacted to thie exteneion effort, the Borrower feele that the method by which thie component wae developed wae eucceeeful and ehould eerve as an inepiration to other agents, particularly in the areas of health and hygiene. Consultant services The proceduree for hiring coneultanta, obeerved right from the time of credit effectiveneea, met with the Borrower'e full approval. Following a eucceeeful proceee of competition, coneultante and experte were hired who were both experienced and highly competent. The feaeibility studies for providing water eupply facilitiee in the provincee of Karuzi, Kayanza, Muyinga and Ngozi, the finaldeeign etudiee for 43 echemee to be implemented in thoee eame provincee, and the feaeibility etudiee for water eupply in the provinces of Gitega and Muramvya (financed through a PPP under the new project, but awarded, implemented and euperviaed within the preeent project framework) made it poeeible to develop an entire methodology for the eetabliehment of provincial programs for maximum coverage of water requiremente and to etandardize the detailed design format for the new echemee. At the same time, they provided elemente that were ueed to improve the bidding documente and contract documente (epecificatione, echedulee of pricee, bille of quantities). The data generated by theee eucceeefully completed activitiee provided DGHER with reference information for the operatione launched within the framework of the new project and of German-Burundian financial cooperation, and of the ongoing operatione with the European Community. Construction Thank6 to the grouping of certain iteme aeeociated with conetruction of the water supply achemes (euppliea and pipe laying and civil works) and a certain broadening of the financial baee (eee Part I, eection 5 . 0 7 ) , it wae  poeeible to introduce a large number of adaptations into the systems, designed to improve the eervice and ensure greater facility of maintenance and operation. The water dietribution echemee presented certain problems. These parts of the systems were often in very bad condition and in need of replacement; however, the coneultante retained them on the recommendation of the firet coordinator, whose ealary was funded by Belgian Aid, and they did not study them in any great detail. This led to delays in work completion timee and coat overruns. Several echemee covered by the project included pumping eyeteme, one of which, an entirely new one, ale0 came with a complete treatment facility. The costs of maintenance and operation of thie type of scheme will be very high for the beneficiarieeto bear, unleee other facilities with lower operating coete are incorporated into the Water Authoritiee* aeeete, bringing the charges down to acceptable levels. Althoughtheee networks are all operational, the quality of operation of the above more complex pumping system is not very good, dietribution being reetricted to ehort hourly intervale each day. It would perhaps have been preferable right at the beginning to pace the conetruction of these eyeteme until the communes operating a large number of distribution facilitiee were able to paee on their high operating costs to a larger number of beneficiaries. Training of DQHER poreonnml Training wae provided throughout the project, both on the job, for the local staff of the Project Unit, and through internships abroad, and thie training also benefitted DGHER pereonnel. However, the Borrower regrete: - that the water eupply unite were too widely diepereed for the DGHER engineere and technicians to be able to receive better supervision or training; - that the technical aeeietante, few in number and taken up with day- to-day management of the project, were unable to devote more time to this training. On the other hand, the traneparency of project activitiee where DGHER wae concerned, and the varioue taeke carried out by the project for DGHER, enabled the latter to considerably improve ite working relationehipa with the other agente and donors. Like the Bank, the Borrower regrete the various personnel transfers that occurred during project implementation when certain officials were rewarded for their reliability and dynamiem through promotion to positions of reeponeibility. Trursition from thm Smcond Watmr Supply Projmct to thm Smctor Projmct  Thanke t o mound programing on t h e Bank'e part, t o t h e dynamiem of DGHER and project etaff i n monitoring t h e project activitiee, and t o euetained management of t h e project funds a t t h e time of cloeure, it wae poeeible t o make a emooth traneition from t h i e project (completed on December 31, 1991) t o t h e Sector Project, which started on January 2, 1992. Thie continuity, making it poeeible t o pureue t h e operatione under way i n t h e r u r a l water sector without t h e need f o r a "traneition periodw ae such, obviated a l l d i f f i c u l t i e e i n operation of t h e project etructuree and i n t h e use of i t e personnel and f a c i l i t i e s . The Borrower wae very appreciative of t h i e continuity, which undoubtedly reeulted i n eavinge of both money and time i n getting t h e Sector Project a c t i v i t i e e under way. Like t h e Bank, t h e Borrower f inde t h a t t h e project a s a whole wae eucceeeful. From t h e Borrower'e perepective, t h i e eucceee i e i n particular due to: (i)implementation of a etrong and eoundly baaed eectoral organization, with t h e beneficiaries of t h e infraetructuree participating i n t h e i r maintenance and operation; (ii)completion o f t h e eeneitization campaigne designed t o educate t h e population i n mattere of hygiene, and aleo t o get them t o organize, enabling them t o aeeume reeponeibility f o r t h e infraetructuree set up by t h e local authority. Theee two points, which w e r e particularly w e l l addreeeed by t h e project and i n which it wae eubetantially involved, a r e key vectors of t h e development of Burundi'e r u r a l environment i n general, and ehould be able t o inspire varioue other agente i n t h a t area.  14 .PROJECT COMPLETIOW REPORT BURUNDI SECOND WATER SUPPLY CREDIT (CREDIT 1625-BUL PART 111: STATISTICAL INFORMATION 1. Related IDA credits Credit Purpose Approval Status Credit 85-BU: First To help the Government 03/31/66 Completed in 1972 Water Supply Project finance improvement and expansion of water ........................................................................................... supply in Bujumbura Credit 2288-BU: To help the Government 07/16/91 Under Water Supply Sector finance rural water implementation Project systems throughout the country 2. Project timetable ............................................................................................. Planned date Revised date Actual date Identification 05/79 Preparation 09180-12183 Appraisal 10184 10184 Negotiations 04/15/85 06/17/85 Board apprwal 06/18/85 09110185 Credit signature lOllll85 Credit effectivenese 01/13/86 03120186 02/06/86 Credit closing 12/31/91 12/31/91 Prolect cam~letion 12/90 12/91  3. Credit Diebure.mente Cumulative Emtimated and Actual Diebure.m.nte (in million. of dollar.) WB Fiscal Year SAR Estirmrtes Actual XDisbursed Africa Profile and Quarter - - - - 1986 Sept. 30, 1985 Dec. 31, 1985 March 31, 1986 June 30, 1986 1987 Sept. 30, 1986 Dec. 31, 1986 March 31, 1987 June 30, 1987 1988 Sept. 30, 1987 Dec. 31, 1987 March 31, 1988 J ~ n e30, 1988 1989 Sept. 30, 1988 Dec. 31, 1988 March 31, 1989 June 30, 1989 1990 Sept. 30, 1989 Dec. 31, 1989 March 31, 1990 June 30, 1990 1991 Sept. 30, 1990 Dec. 31, 1990 March 31, 1991 J ~ n e30, 1991 1992 Sept. 30, 1991 Dec. 31, 1991 March 31, 1992 June 30, 1992  4. Projact Implmmmntation  5. Projact Coata and Thanciag A. Projact Coata ( d l l i o ~f~Wu) o SAR Estimtea Actrvl Local Foreign Total Local Foreign Totrl 1. &habilitation and extension of 33 Mucductn piw 13.876 263.645 277.521 0 270.527 270.527 Installation nd civil works 213.314 153.425 366.739 422.278 282.903 705-181 Total 1 227.190 417.070 644.260 422.270 561.430 983.70~ Equfplmt 1.990 28.010 30.000 44.913 20.912 65.1125 Technical assistance 41.200 69.200 110.400 5.6% 333.731 339.427 Operational cost 9.080 3.960 23.040 118.W 38.283 157.087 Total 2 52.270 101.170 153.440 169.413 392.926 562.339 --- - - - - -- - - Total 4 48.779 114.782 163.561 93.971 190.236 284.207 Physical c o n t i n g d w 27.262 50.046 77.310 0 0 0 Price contlntmwiea 153.179 265.128 418.307 0 0 0 General Totrl  b. C d i t Allocation by Category (in 8DR) cat.aorv Eetimate Actual 1. Civil work., including pip. laying 2,500,000 3,386,350 2. Vohiclom, oquiplwnt, piper 3,000,000 2,233,178 3. Consultant aorvicoa, training 1,500,000 3,552,989 4. Refunding of PPF No. P 158 470,000 427,483 5. Unallocatod 2,130,000 0 In thm 32 coamunom covord by tho projoct, tho umerm of 1,058 standpipes (of which 693 arm now and 365 wmrm alrmady i n mxistence) represent 30,333 houaoholdm. Thm mnual chargmm paid by a hoummhold a r m : FBu 100 i n 1 comrmuno (Ryabikoro) FBu 200 i n 28 cooparunma FBu 400 i n 1 cornnuno (Gamhoho Ruyanqo) FBu 500 i n 2 cornnunma (Bugabira and Songa), which have pumping mtationm In thoam comrmnoa, tho uaora of tho 3,573 dovo1op.d apringm represent 85,906 houmoholdm, which oach pay an annual chargo of:  19 FBu 200 i n 2 conrnunee (Ngori and Bweru) FBu 100 i n 6 commune8 (Buhinyuza, Isale, Kabezi, Kayokwe, Kigamba and Kiganda) FBu 50 i n 15 conrnunee FEU 0 i n 9 cormmunee The recovery r a t e of theoe chargee i n 1991 varied between 78% and lees than 20%. It ehould be noted that a l l communal water officee were created in 1991, eo t h a t t h i e wae the f i r e t year t h a t t h e feee etarted t o be collected.  20 7 . Statum of legal covenant8 Section Covenant Compliance 2.02(b) special account Bull 3.Ol(b)(ii) Project Advance Account and i n i t i a l Bull 3 , 0 l ( b ) ( i i i ) depoeit 3.03(a) Preparation of updated three-year Bull program f o r t h e water supply sector by August 31 3.03(b) Guarantee t h a t propoeed inveetments Bull are just i fied 3.03(c) Preeentation of proposed DGHER Not done budget by AUgUet 31 Guarantee t h a t the communes w i l l contribute 5%of t h e t o t a l coat of t h e c i v i l worke performed Q.Ol(b)(ii) Presentationof audit reports on Compliance, but with t h e project accounts and DGHER delaye accounte by June 30 Separate accounts f o r w a t e r and Bull e l e c t r i c i t y operatione 5.01 Eetabliehment of a steering Bull committee t o monitor t a r i f f e and t h e inetitutional etudy Review of adequacy of t h e level of Not done, REGIDESO's charges f o r e l e c t r i c a l services r a t e e w e r e adopted Guarantee t h a t water charges w i l l Full be paid by the beneficiariee Review of w a t e r chargee by t h e end Bull of October i n each year  A. Staff input8 (8taff-uooks) LOP 2.7 0.6 2.3 1.1 LEMP 2.8 8.8 8.7 0.3 LENA 25.9 LENn 0.2 0.7 PAD 2.4 SPN 2.0 3.3 4.4 6.0 6.8 6.3 5.8 Thia gives a total of 117.1 etaff-weeke for the entire project cycle. Stage of project Period in Number of Number of cycle Month/year field (daye) pereone etaff-days Identification 1 05/79 Identification 2 11/79 Preparation 1 Preparation 2 Preparation 3 Preparation 4 Preparation 5 Pre-appraieal Appraieal Poet-appraieal Superviaion 1 Supervieion 2 Superviaion 3 Supervieion 4 Supervieion 5 Supervieion 6 Supervieion 7 Supervieion 8 Supervieion 9 Supervieion 10 Supervieion 11 Supervieion 12 Thie givee a total of 238 miseion staff-day8  9. Project mtudiem Statur 1. Feamfbility mtudiem of Project preparation Completed 48 water mupply project. 2. Final deaign atudiea for Preparation of f i n a l Completod 33 water mupply mymtemm deaignm for project works 3. Feamibility mtudiem for Preparation of follow-up Completed 40 other water aupply project i n water aupply mystemm i n 4 provinces aector (Credit 2288-BU) 4. Final demign mtudiem for Not included i n the Completed t h e 40 new water mupply project a t t h e t i m e of mystemm appraimal