Announcement of First Rural Water Supply Project will Benefit 63,000 People in Paraguay on December 15, 1977

• World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/27 DECEMBER 15, 1977 FIRST RURAL WATER SUPPLY PROJECT WILL BENEFIT 63,000 PEOPLE IN PARAGUAY Some 63,000 people will benefit from a rural water supply project in Paraguay supported by a World Bank loan of $6 million. This project wi 11 constitute a major improvement in public health in areas where infant mortality rates of 85 pe1- thousand births are among the highest in Latin America. The project, the first Bank operation entirely geared to rural water supply and adequate waste disposal, will have an estimated tot~l cost of $11 ·million. It will serve 42 rural communities with populations between 100 and 4,000 inhabitants in the three most densely populated departments in Paraguay -- Central, Paraguari and Co rd i 11 era. The project was prepared with assistance of the Pan American Health Organi- • zation (PAHO) • At present, some 36 percent of the urban population and only 6 percent of the rural population have access to safe and adequate sources of water. This compares with an average of over 76 and 24 percent in urban and rural areas in Latin America. Moreover, only in the country's capital of Asunci6n is the water treated; water supply in other cities is based on raw water without chlorination. Only ten villages (of 134 communities of less than 4,000 inhabitant~) have completed water supply systems; in another 22 communities, systems are partially completed or under construction. As a whole, service levels are the lowest in South America. The project is considered by the Paraguayan Government as a basic and essential part of the National Health Plan of 1976-1980. This program will lead to a general improvement in health conditions in the rural sector as well as contribute to the eradication of certain endemic diseases. The project wi 11 also assist in achieving a better balance in economic opportunities through the improvement of key elements of social infrastructure which supports the country's agriculture-based development. • The loan to the Republic of Paraguay wi 11 have a term of 17 years, including four years of grace, with interest at 7.9 percent per annum. NOTE: Money figures are expressed in U.So dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Rural Water Supply Paraguay • $11 mi 11 ion FINANCING: $6 million for a term of 17 years, including four years of grace, with interest at 7.9% per annum. OTHER FINANCING: Government of Paraguay: $3.4 million Local community: $1.6 million IMPLEMENTING ORGANIZATION: Servicio Nacional de Saneamiento Ambiental (SENASA) Mariscal Estigaribia y Tacuari Asuncion, Paraguay PROJECT DESCRIPTION: It consists of: (I) Construction of new water supply systems or extension of existing water supply systems in 42 communities with populations of 100 to 4,000; (II) execution of a pilot project for individual w,aste disposal solutions, 2,000 sanitary units (including toilet, shower and laundry facilities) and • 4,500 tile fields (privies provided with septic tanks with percolating systems); (111) ex execution of a pi lot community health education program oriented toward village participation in the construction and administration of sanitary facilities; and (IV) implementation of a technical assistance training and equipment program for SENASA aimed at strengthening its financial management and project administration capabilities. PROCUREMENT: Contracts for well construction, materials and equipment with an estimated cost of over $30,000 wi 11 be awarded under international competitive bidding, in accordance with Ba~k Guidelines. Domestic materials and equipment manufacturers tendering under these procedures wi 11 be al lowed a preferential margin equal to the prevailing tariff for non-exempt imports, or 15% of the c. i .f. cost of competitive imports, whichever is lower. Contracts under $30,000 wi 11 also be open to foreign contractors and would be awarded on the basis of local procurement acceptable to the Bank, provided that the aggregate shall not exceed the equivalent of $300,000. CONSULTANTS: An estimated 55 man-months of consulting services will be required for project management; preparation of bidding documents; analysis of tenders; construction supervision; and construction programing and control. Appointment of the consultant in project management wi 11 be a condition of loan effectiveness. In addition, SENASA wi 11 look for assistance in training, community education and other s peci f i c fields. ECONOMIC RATE OF RETURN: ESTiMATED COMPLETION DATE: n.a. 1981. • - 0 -