Tanzania - Economic development and prospects (Vol. 3 of 4) : Volume III

RESTRICTED FLt.E CciY Report No. AE-26 This teport is for official use only by the Bank Group and specifically authorized organizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION THE ECONOMIC DEVELOPMENT AND PROSPECTS OF TANZANIA (in four volumes) VOLUME III ANNEX IV: WATER SUPPLY AND SEWERAGE SECTOR May 22, 1972 Eastern Africa Department  CURRENCY EQUIVALENTS 1 Tanzanian Shilling = US$o.14 1 U.S. Dollar = Sh 7.14 ABBREVIATIONS AND ACRONYTS MWDP - Ministry of NJater Development and Power TANESCO - Tanzania Electric Service Corporation I4gd - Million Imperial gallons per day Iged - Imperial gallons per capita per day This report is based on the findings of a mission composed of Messrs. J. Warford, C. Spangler, and E. Greenwood (IBRD) and Messrs. G. Bachmann, G. F. Heide and T. R. Jacobi (NbhO) who visited Tanzania in the period September 26-October 25, 19710 and a follow-up mission composed of Messrs. Warford, Spangler (IBRD) and Kent (WHO) from April 19-May 1, 1972.  TANZANIA WATER SUPPLY AND SEWERAGE SECTOR TABLE OF CONTENTS Page No SUMMARY ................................ I. INTRODUCTION ................ ...... 1 II. 'tHE PRESENT SITUATION ................ 1 Geography and Climate ...... 1 Water Resources and Health ............ .......... 1 Population . ....... . 2 Water Systems . ................................ 2 Sewerage ..............................0..*.0"o... . 3 Organization and Finance .... .. ........ . 3 Manpower and Training ....... 5 III. SECTOR OBJECTIVES AND STRATEGY ....................... 6 Expenditure History and Projections ........... 6 Program Feasibility ....... e ....... 9 IV. PROBLEM AREAS FOR SUCCESSFUL SECTOR DEVELOPMENT ...... 11 Financial Policy ,... ........ * .. ............. 11 Planning and Procedures ... ... ... .... ..... ... ... 13 Technical Services ....*..... 000..*******e**..... 13 Manpower and Training . .... .....***.............* 14 V. CONCLUSIONS - THE ROLE OF EXTERNAL AGENCIES .......... 15   LIST OF APPENDICES Appendix 1 Population and Area Summary 2 Urban Water System Characteristics by Regions 3 Extract from Terms of Reference for Consultancy Service- Scandiaconsult 4 Orgarization Chart - Ministry of Water Development and Power 5 Regional Organization - Ministry of Water Development and Power 6 Urban Water Rate Summary 7 Cost Estimates 8 Projections of Population and Rural and Urban Water Development Costs 9 Budget Estimates - Ministry of Water Development and Power 10 Internal and External Finance and Development Expenditures - Ministry of Water Development and Power 11 Regional Water Master Plan Study Support 12 Water and Sewerage - Dar es Salaam Map IBRD 2802R2 Regions and Districts IBRD 3722R1 Water Supplies   TANZANIA WATER SUPPLY AND SEWERAGE SUMMARY i. This report has been prepared from information gathered by two visits to Tanzania by joint WHO/Bank missions, one in September/ October 1971 involving about four man months in the field; and a follow-up mission in April/May 1972 involving about one and a half man months. The Bank has not been previously involved in the sector in Tanzania and so far as can be determined no reports on current studies carried out by others appear to exist. While the limited data presented in this report is believed accurate, it will be apparent that because of pecularities in the definition of rural and urban; the fact that the organization respon: `- e for water supply is in process of major reorganization; and because mnuch data which is needed for sound analysis is not available; it becomes extremely difficult to reach meaningful conclusions with respect to the long-range out- look for the sector and what future investment policy should be. ii. A piped water supply is available to about 80% of the urban popu- lation but only about 10% of the rural population has access to supplies which are reasonably convenient and safe. The 80% figure is considerably better than most countries of Africa and is somewhat better than most countries of Latin America. The 10% figure for rural supplies, while low, is probably not much different than for most other countries with similar economic condi- tions. Use of either figure for comparison purposes is not meaningful, how- ever, because the definitions of urban and rural supplies in Tanzania differ from those used in nearly every other country. Urban supplies in Tanzania are defined as systems on which consumers are charged for the water and while such systems can usually be expected to meet the definition of urban in other countries, smaller systems in Tanzania now classed as rural, might in many other countries be considered as urban (urban is frequently defined as communities with populations greater than 2,000). A further problem in using the data for planning purposes is that presence of a piped water system does not necessarily mean that water is available from the system. Where supply works are not made to keep pace with urban growth and extensions to the system, service must be reduced or new customers, including industrial, denied service. The 80% figure for population served in urban areas of Tanzania is consequently difficult to interpret. It is known, for example, that indus- trial water users are not able to satisfy their needs at present in several of the urban communities. 1ihere this is the situation, it may be that high priority should be given to investment in urban systems whereas the 80% figure by itself suggests that the urban areas are not in great need. iii. The Government has stated that its objective is to make water reasonably accessible to the entire rural population in 20 years. The average annual investment necessary to reach this goal is estimated at Sh 75 million. No express objective for urban water supplies has been adopted, but estimates are that the cost of fuU coverage in the same period would be equivalent to an annual average investment of some Sh 16 million. Sewerage, which is cur- rently provided in five towns serving some 150,000 people, is given a much  -ii - lower priority than water supply but some investment, increasing as time goes on to a level similar to the one for urban water supply, will be called for during the twenty-year period. iv. A program of water supply developed along the lines now proposed would require an annual average capital investment in excess of Sh 100 million. In contrast, the average investment in water supply during the first five-year plan (196h-1969) was about Sh 25 million per year, and during the first three years of the current second five-year plan it has been Sh 49 million. There should reasonably be some doubt about the feasi- bility of such a large increase, especially given the acute limitations on available staff and local funds. A mechanism for grouping of projects has been studied that can be used as a guide for establishing priorities and for reaching decisions on the systems to be selected for construction once the spending level has been fixed. The approach taken and the results of the study are shown in Appendix 7 of this report. v. One of the most difficult problems likely to be encountered is that of assuring a sufficient growth of local funds for surveys, feasibility studies, preliminary engineering and to provide for the construction, opera- tion and maintenance expenditures for the new systems. This problem will be accentuated as a consequence of the priority given to rural water supplies, which currently do not produce any revenue at all. It is clearly conceivable if no change in policy occurs, that a point will be reached where further assistance for new construction cannot be used with benefit because sufficient funds for operation and maintenance will not be available. It is thus of vital importance to the long term success of the Tanzanian water program that the potential of water systems for raising revenue, at least to cover recur- rent expenses, be utilized. Steps should be taken to introduce as rapidly as possible the concept of total cost support by charges for water systems. In particular, rural systems should be upgraded by introducing and gradually increasing charges as communities become more able to make some contribution to the cost of supply. vi. Present procedures require that capital and operating expenditures for water supply be made available from funds provided in the national bud- get, all receipts from the sale of water at each system being turned over to the national treasury. In recent years allocations to the sector have varied widely, depending on the budgetary constraints prevailing at the time. Because of the uncertainties which occur as the result of these practices and because funds for maintenance are usually the first to be cut when national budgets have to be pared down, local managers cannot be held responsible for the efficiency of their operations. There is need for a review of these policies and for the establishment of as much fiscal independence for water authorities as possible. vii. Changes need to be made in the accounting and budgeting system of the newly created Ministry of Water Development and Power (MWDP) so that costs and revenues for urban (revenue-producing) systems can be related to each other and to the needs of the systems. With knowledge of the costs, proper charges for water can then be established. viii. It seems clear that if anything like the program contemplated for the sector is to be achieved, Tanzania will need not only continued but  -iii- also increased foreign assistance. A number of countries have indicated their willingness to support various parts of the development program. Considering this and taking into account the manpower and local financing problems, coordination is required so that a rational high-priority prog- ram can be composed without duplication of efforts. A process of manor reorganization has been in progress and a mid-plan review of the second five-year development plan has recently been completed. It is desirable that the results of this review be studied as soon as available to deter- mine to what extent some of the existing problems mentioned above are blng overcome. Until these problems are on the way to solution, new investment should be tailored to the capacity of local funds and staff.   I. INTR03JCTION 1.01 Joint IBRD/WHO missions visited Tanzania!/ in September-October 1971 and April-?Uy 1972 in order to evaluate the existing sitaation in the water supply and sewerage sector, to review development plans for the sector, to identify problems restricting progress, and to consider and discuss possible solutions to these problems with national officials. This report is based on the findings of these missions. II. THE PRESENT SITUATION Geography and Climate 2.05 Tanzania (see Maps) is the ninth most populous nation in Africa, i.iith a mainla.nd population of over 13 million- its area is about 362 000 sq mAles. The country lies between 10 and 126 south latitude and 30U and 400 east longitude. Mount Kilimanjaro in the north rises to over 19,000 feet and a high ridge runs southwest from the Usambara mountains west of Tanga to the highlands around the tip of Lake Nyasa. Most of the country is made up of a plateau of about 4,000 feet elevation. 2.02 Rainfall ranges generally from 30 to 40 inches per year except in a small area west of Lake Victoria where the variation is between 80 and 90 inches annually. On the interior plateau there is a single short rainy season, while along the northern coastal belt there are two--November to January, and March to May. There are wide variations throughout the country as to temperature, humidity and wind; in the coastal belt temperature ranges from a mean low of 75