Announcement of Guinea Receives IDA Credits for Water and Power Projects on December 21, 1978

j, . ... r FOR IMMEDIATE ~ELEASE 9J\/orld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO 79/35 December 21, 1978 GUINEA RECEIVES IDA CREDITS FOR WATER AND POWER PROJECTS The International Development Association (IDA), the World Bank affiliate for concessionary lending, has approved credits totaling $13.63 million to help finance two projects in Guinea--$12.5 million for a water supply and sanitation project and $1. 13 million for a power engineering and repair project. Water Supply and Sanitation About 200,000 people in the Guinean capital, Conakry, will gain access to safe potable water through the water supply and sanitation project. The project includes the construction of water transmission and distribution mains and pipes, reservoirs, a booster pumping station, and a water treatment facility. Boreholes will be drilled and equipped; house connections, standpipes, water meters, and related equipment · wi 11 a 1so be prov i ded. • Improved drainage of contaminated water will help reduce the incidence of water- borne diseases in the most densely populated areas of Conakry. The management and operations of the National Water Distribution Company (DEG) are expected to be improved significantly through the technical assistance and training to be provided by the project. This would enable the company to expand services in Conakry and in second- ary centers. The total cost of the project is estimated at$21.9 million. IDA is assisting with a credit of $12.5 million. The African Development Bank is co-financing with a credit of $6 million. The balance of the project cost, about $3.4 million, will be provided by the Government of Guinea. The IDA credit will be on standard terms .of 50 years, including 10 years of grace, at no interest, except for a charge of 3/4 of 1% for administrative expenses. Power Engineering and Reparr This project will complete preparatory work on a large power rehabilitation pro- gram for the city of Conakry. It wfll finance a study to determine whether to repair or replace the Grandes Chutes Dam, which is the most important source of supply for the public power sector and meets a large part of Conakry's potable water needs. Technical assistance will be provided to the Societe Nationale d'Electricite for audit- ing and accounting procedures. The project will also finance emergency repair of four generating units and the telecommunications system between power generating plants. • The total cost of ttie project is estimated at $1.23 mi 1 T ion. Abol!t 9-2% __,:.,f this amount is being financed from the IDA credit of $1 ...(3 mi 11 ion. The remainder of the cost is being borne by the Government of Guinea. The IDA credit rs ·repayable in 10 years, including 2 years of grace, with 3/4 of 1% service charge. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Water Supply and Sanitation Guinea $2 1 . 9 mi 11 i on • I DA FI NANC I NG : $12.5 million, standard terms of 50 years, including 10 years of grace at no interest, except for service charge of 0.75% for administrative expenses. OTHER FINANCING: African Development Bank, $6 million; Government of Guinea, $3.4 million. IMPLEMENTING ORGANIZATION: Project Unit Cable: MINECOF pour Ministry of Industry and Energy MIE Conakry, Guinea Telex: 652 MINECOF PROJECT DESCRIPTION: It will upgrade water supply and sanitary conditions in Conakry through construction of water transmission and distribution mains and pipes, reservoirs, a booster pumping station, and a treatment faci 1 ity. Boreholes wi 11 be dri 1 led anci' equipped; house connections, standpipes, • water meters, and related equipment provided. It will also ffnance the purchase of chemicals and small vehicles for services responsible for well inspection and dis- infection; the upgrading of drainage ditches; and the installation of ten sanitary blocks for drinking a1'd washing in low-income parts of Conakry. Tech~ical assist- ance, including consulting services and training, as well as training quarters, office space, and housing for technical assistance, will be provided. PROCUREMENT: Procurement of goods and construction services to be financed from the credit will be by international com- petitive bidding and in accordance with Bank guidelines (except for force account works worth $600,000). Contracts for equipment and vehicles of less than Syl is one miilion ($50,000) aggregating to not more than Sylis ten million ($500,000) will be procured through local competitive bidding procedures acceptable to IDA. CONSULTANTS: The project will provide about 13 man-years of cons~lt- ing services and technical assistance to the Entreµrise Nationale de Qistribution d'Eau de Guinea (DEG) to help it set up operations and • maintenance practices, incbding strengthening its meter reading, billing and col- lection procedures. It will finance another 13 man-years of technical assistance to the Ministry of Industry and Energy (MIE) to help strengthen its pl~nning and· project implementation capabilities. Eleven man-years of consultant services will also be needed for various studies .under the prolect. In addition, the services of a training officer for 27 man-months will be needed to set up a training program • for the DEG labor force. ECONOMIC RATE OF RETURN: 16% ESTIMATED COMPLETION DATE: 1983 - 0 -  . <, FORM NO. 1121 (5-76) T E C HN I CA L DA T A • PROJECT: COUNTRY: TOTAL COST: Power Engineering and Repair .Guinea $1.23 million IDA FINANCING: $1. 13 million; repayable in 10 years, including 2 years of grace, with 3/4 of 1% service charge. OTHER FINANCING: Government of Guinea, $101,000. IMPLEMENTING ORGANIZATION: Ministry of Industry and Energy Telex: 652 MINECOF Conakry Cable: MI NECOF ~ur Guinea MIE PROJECT DESCRIPTION: It will complete preparatory work on a large power rehabi- 1 itation program for the city of Conakry. It wi 11 also • finance a study to determine whether to repair or replace the Grandes Chutes Dam, which provides potable water for Conakry and generates electricity for both Conakry and Kindia . Technical assistance will be provided to the Societe Nationale d'Electricite for audit- ing and accounting procedures. Emergency repair of four generating units and of the telecommunications system between generating plants will also be made. PROCUREMENT: The repair, replacement, and supply of spare parts for hydro-turbines under use will be performed by the French and American firms which supplied the equipment originally, subject to a demonstration of competitive prices. The relatively small amounts involved for the purchase of distribution tools and service vehicles will be procured through international shopping among known suppliers in accordance with the Credit Agreement. CONSULTANTS: Consultants will be employed to carry out the feasibility study of the Grandes Chutes Dam; 3 man-months of technical assistance also provided to improve the accounting systems and procedures of the Societe Nationale d'Electricite and to audit its 1978 financial statements . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: n.a. 1980 - 0 -