Announcement of Ten Million Forty Thousand US Dollars IDA Credit to Ghana for a Water Supply Project on July 1, 1974

.INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W., WASHINGTON D. C, 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/42 Subject: $10.4 million IDA credit to Ghana July 1, 1974 for a water supply project Canada, the African Development Bank (AfDB) and the International Development Association (IDA) are participating in Ghanars plans to provide a constant supply of water to the greater part of the population by the end of the decade. . IDA, a World Bank affiliate, has approvud a credit of $10.4 million to help finance the project, which is designed to increase and improve the water supply for the Accra-Terna metropolitan area and adjacent rural areas. Under collaborative financing arrangements, the Canadian International Development Agency (CIDA) is contributing about $7.5 million, and AfDB is lending $4.8 million directly to the Ghana Water and Sewerage Corporation (GWSC). The Accra-Terna metropolitan area has a population of about 900,000 and water shortages occur in the dry season. Without the project this situation would de- teriorate further, particularly with the pace of population growth, and increasing demands from commerce and industry . • In addition to improving the supply for the metropolitan areas, the project will provide a safe supply of water for about 200,000 people in the rural areas. Many of these people rely on polluted ponds, streams and wells. It will also help to prevent the progressive decline in health conditions in the metropolitan areas and improve health conditions in the rural areas. It is the second stage of implementation of a master plan, for water and sewerage for the Accra-Terna area, which was prepared with the participation of the United Nations Development Progrannne (UNDP) and the World Health Organization (WHO). In 1969 IDA approved a credit of $3.5 million, which helped to finance the first stage, for extension of water distribution in the metropolitan area and a new sewerage system for Central Accra. These works were completed by the end of 1973. The project features components which are variously assisted by the participating lenders and include the following: Construction of a new dam at Weija; improvements of existing Weija treatment works; extension of ~xisting secondary and tertiary water distribution systems in Accra-Terna; technical assistance for the new sewerage system; training and consulting services for design and procurement; civil works for treatment of plant and service reservoir; supply of transmission mains; extension of the existing primary distribution system in Accra- Tema; raw water pumps; supply of treatment plant and construc- • tion and supervision for other components . The IDA credit is being made to the Republic of Ghana for a term of 50 years with 10 years of grace. It is interest-free but carries a service charge of 3/4 of 1% to cover IDA's administrative expenses. Note: H:>ney figures are expressed in US dollar equivalents.  July 1, 1974 TECHNICAL DATA PROJECT: COUNTRY: TOTAL COST: Water supply project Republic of Ghana $44.7 million (net of import duties and taxes) • IDA FINANCING: $10.4 million, 50 years including 10 years of grace, interest free, except for a 3/4 of 1% service charge to cover IDA's administrative expenses. The proceeds will be relent to the Ghana Water and Sewerage Corporation (GWSC) for 25 years, including 6-1/2 years of grace, with interest at 7-1/4% per annum. 0':(HER FINANCING: The Government of Ghana, ™SC internal cash genera- tion, bilateral and multilateral sources of finance. IMPLEMENTING ORGANIZATION: The Accra/Terna Met:ropolitan Area Division (ATMA), the largest of the district management centers of GWSC, P.O. Box Ml94, Accra, Ghana, will be responsible for project implementation. PROJECT DESCRIPTION: The project will help increase water supply for the metropolitan area where the population is growing around 5.6 percent annually, as well as adjacent rural areas. The main components of the project are: earth dam, treatment plants, service reservoirs, transmission and distribution mains, water consulting and eng:f.neering • services and training facilities. PROCUREMENT: International competitive bidding, in accordance with IDA guidelines, will be used for all procurement contracts for major project items financed by IDA. Some minor items will be procured from selected suppliers to maintain standardization with existing equipment. Procurement under AfDB and CIDA-assisted project components will be in accordance with their respective guidelines. CONSULTANTS: For IDA-financed consultants, arrangements will be made in accordance with procedures acceptable to IDA. ESTIMATED COMPLETION DATE: 1978 •