Guinea - Conakry Water Supply and Sanitation Project

Document of The World Bank Li LUPV FOR OFFICIAL USE ONLY Report No. 2127-GUI REPUBLIC OF GUINEA STAFF APPRAISAL REPORT CONAKRY FIRST WATER SUPPLY AND SANITATION PROJECT 'November 16, 1978 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 disclosed without World Bank authorization.  Republic of Guinea Conakry Wdater Supply and Sanitation Project Fiscal Year Ending December 31 CURRENCY EQUIVALENTS The official monetary unit is the Syli. 1 Syli=0.05$ I$=20 Sylis MEASURES AND EQUIVALENTS Kilometer (km) 0.62 mile Meter (m) 39.37 inches Hectare (hg) 2.47 acres Cubic Mleter (m ) 264 US gallons Cubic meter per 3 second (m /s) 22.8 millions US gallons,'day Liter (1) 0.264 US gallon Liter per second (l/s) 22,800 US gallons/day Liter per capita per day (lcd) Milligram per liter (mg/i) 1.0 part per million ABBREVIATIONS AND ACRONYMS UNDP United Nations Development Program WHO World Health Organization ADB Afrjican Development Bank MIE Mini'stry of Industry and Energy MLHW Ministry of Large Hydraulic Works MRD Ministry of Rural Deve]Lopment DEG Entreprise Nationale de Distribution d'Eau de Guinee DPH Division of Preventive Hygiene RAC Region Administrative de Conakry OCOFI Office de Coordination Financiere de l'Industrie  FOR OFFICIAL USE ONLY GUINEA FIRST WATER SUPPLY AND SANITATION PROJECT TABLE OF CONTENTS Page No. I. THE WATER SUPPLY AND SEWERAGE SECTOR ................... 1 General .......................................................... I Population oo.o ... o ............***ooe 1 Water Resources ...o. ..................... ......... .. . 1 Levels of Service .. . .. . .... ...... ... .......I. . 2 Sector Organization .. . . . ....... ................... .... . 2 Past Sector Investment and Financing ............... o... 3 Sector Programs and Priorities ......................... 3 International Drinking Water and Sanitation Decade ..... 4 Dependency on Foreign Imports ............ ................. 5 II. POPULATION, SECTOR SERVICES AND DEMAND IN THE PROJECT AREA .. .. . . .. . . .. . .....................oo ....... 5 The Project Area . ....... . . .. ...... ....... ....... 5 Existing Water Supply and Waste Disposal Systems. 6 Population Served ...... ..- ........ . ...... . ................... . 8 Population Forecasts . .............. ............. ....... 9 Urban Poor ..... o ..................................... 10 Forecast of Consumption ...... ..... ....... . . .. 10 III. THE PROJECT. ................... . 11 Project Preparation . .. 11 Project Objectives ..i2 Project Description . ..... .................... .o.... 13 A. *Water Supply -- .......... . ....... ....... 13 B. Drainage and Sanitation. . 14 C. Consulting Services and Technical Assistance 14 D. Training. 15 Cost Estimates ......... .-.. o.. 1.6 Project Financing and IDA Credit .. ..................... 16 Project Preparation Facility - .........-...... 18 Implementation ...................................... 19 This report was prepared by Messrs. E. H. Motte (Sanitary Engineer), H. Nickel (Financial Analyst) and J. W. Gilling (Economist). 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 disclosed without World Bank authorization.  TABLE OF CONTENTS (Continued) Pa,;e No. Local Construction Industry 9..a. ................. 20 Procurement .... . ......................................... 20 DisbursemenLt e -- ...... .a...... . 21 Environmental and Public Hiealth Aspects .... ............. 22 IV ECONOMIC ANE SOCIAL ANALYSTS _........................... 23 Project Benefits ................................ 23 Dr ainage Least Cost Solution . . a . ..aa.................... .... ........ 24 Cost Recovery ... ............ ..................... 2$ Justification...- ...... ........................ 24 Water Supply Least Cost Solution ....a a. a a a a a.2 3 :Rate of Return . ............. a................... 23 'Pricing Considerations ..................... ............ 27 House Connection Policy ......a...............2 7 Consumer Ability to Pay ........................ 23 Access to Water by Urban Poor _. .................... 2) V. 'THE BENEFICIT_RY ....... e.................. 29' Organization and Management a . ..a....................... 2' "IA Priori" Expenditu?re Contrrols ........ .......... 30 Foreign Exchange for Parts and Supplies . ......... 3-. Meter Reading, Billing and Collection ........ .......... 3: Accounting ....... .... .... ........................... 32 Audits a....o .. ....o. a.,o,aac....... a...3. Planning and Budgeting ,..a,........... ............ 3 Insurance ...eooe.. ........................ 3 Operations and Maintenance a..a........................ 3L l'echnical Assistance ..a........................... 3L S'taffing ..... .......a... ......ea,.a......,.. 35 Training ..e....... a...o.. ....................... 36 Management of t'he Conakry Drainage System ...... 37' VI. FINANCIAL ANA'LYSIS a.a.. ......................3 IntroductionA ...... ........................ 3a FEast and Present FinancieLl Performanace .... ............. 3; Tariffs a 3-a.aaa e .a aOa a ......I.......................... aC F'inancing P:Lan . a . o a a a o a a a a a o a . a. ..* '+1 F'uture Financial Performance .... ...... ...... ..... 42 N[onitoring TLldicators a a a a a a a... ..... a a . .................. +4 VII. SUMM_RY, ACGRfELNJSNTS A.ND RECONMENDATIONS ... ............. q,4 Project Risks ......................................!,5 Agreements Reached and Recommendations .................  LIST OF ANNEXES AND MAPS Annex 1-1 Selected Documents and Data Available in the Project File 2-1 Population Forecast 2-2 Water Forecast 2-3 Demand Forecast 3-1 Project Costs 3-2 Project Implementation Schedule 5-1 1977 DEG Organization Chart 5-2 Proposed DEG Organization Chart 6-1 DEG Income Statements 6-2 DEG Conakry Operations - Income Statements 6-3 DEG Funds Flow Statements 6-4 DEG Balance Sheets 6-5 Assumptions for Financial Projections 6-6 1977 Income - Conakry vs. Secondary Centers 6-7 Foreign Borrowing 6-8 Monitoring Indicators 7-1 Improvement Plan to be Implemented by DEG Map 13734 Location of Urban Water Systems 13735 Project Components   CHAPTER I THE WATER SUPPLY AND SEWERAGE SECTOR General 2 1.01 Guinea has an area of some 246,000 km . Bordered by Guinea Bissau, Senegal and Mali to the north, Ivory Coast to the east, and Liberia and Sierra Leone to the south, the country has about 300 km of coastline on the Atlantic Ocean to the West (Map 13734). The country can be divided in four geographical regions: the narrow coastal belt (lower Guinea), the pastoral Fouta Djallon (Middle Guinea), Upper Guinea and the South Eastern forest region. Western Africa's largest rivers, the Niger, the Gambia and Senegal, all rise in the Fouta Djallon. The coastal region and most of the country inland have a tro- pical climate with one rainy season, relatively high and uniform temperatures and high humidity. Annual rainfalls vary between 2 meters in the forest and Fouta areas, and up to 4 meters in the coastal belt. Population 1.02 The last census carried out in 1972 put the population at 4.2 mil- lion with an annual growth rate estimated at 2.8%. About 78% of this popula- tion lives in rural areas and is directly engaged in agriculture. The re- mainder, or 22%, live in 17 towns of 10,000 people or above. The urban growth rate is estimated at 4% per annum. If this trend is maintained as expected, the percentage of urban population will increase to more than 27% by the turn of the century. 1.03 About 55% of the urban population is concentrated in the City of Conakry, the nation's capital, which dominates the pattern of urban growth. Its present population is estimated to be around 540,000 inhabitants. It is forecast that without decentralization policies, which are still in the process of being developed and implemented, the capital's population will represent more than 75% of the urban population and about 20% of the total population by the year 2000. Water Resources 1.04 Compared to the neighboring countries, Guinea is well endowed with water resources. The country relies mostly on surface water for its water supply as there have been no serious attempts to investigate the extent and utilization of ground water. Most of the rivers tapped are perennial and have low flows well above present water supply requirements of nearby centers. There are springs close to some centers, but they usually yield insufficient water to satisfy these cities. Apart from Conakry no inventory, monitoring or use of aquifers has yet been undertaken. A first UNDP project is now being implemented with World Meteorological Organization's assistance, and is devised to set up monitoring of river flows and selected ground water resources and to assist and strengthen the national hydrological bureau of the Ministry of Large Hydraulic Works (MLHW).  - 2 - 1.05 The GovernlmerLt of Guinea has recently approached the Association to request assistance in the preparation of a national water master plarL for the use of its surface water resources for power, irrigation, water su ')ply and, possibly, flow regularization for fluvial transport. Discussions a.re under way both to define a pragmatic. approach to this multi-sectoral s-udy, and to obtain the participation of other multi and bilateral agencies. Levels of Service 1.06 Presently, the rural population obtains its water supply essEr.tially from shallow wells and running streams; they depend primarily on hand Jug wells which often dry out in the dry season and revert to farther and lEsser surface resources. Until recently, little investigation has been undertaken to find alternatives for improving this unsatisfactory situat:ion and t) re- lieve the population from long and weary travel in search for water. 1.07 The level of service in urban centers is not significantly bat.ter. Apart from three mining centers whic:h have piped water systems serving their entire population, the water service levels remain very low. It is estimated that about 10% of the urban population benefits from a piped system. Ocnakry has probably the highest level of service, with 42% of the population served through about 6000 private connections and 100 standposts. In other urlcan areas the situation is worse; besides four centers with piped water ogerated by Entresprise Nationale de Distribution d'Eau de Guinee, DEG, the remainder of urban centers have piped water supplies limited to serving areas oc :upied by administrative authorities. The remainder of the population not served by these piped water systems obtain their water supplies from shallow Wells, ponds or running streams, all of which may be polluted. The quality )f service is poor even from the piped water systems; is often provided i-lter- mittent:Ly for a few hours a day and seldom chlorinated; in general, wa-Er works are old and in poor condition; many of the standpipes are not opera- tive, and in cases where they do operate, the surrounding sanitary con- ditions are so bad that they frequenitly constitute a health hlazard. 1.08 Only Conakry and the mining centers of Kamsar and Fria have 3enitary sewage systems. The Conakry network of sewers is limited to pre-indep2rdence city limits and appears clogged in many points; connections between the drain- age and sewerage systems have been made to help dispose of sewage, but these arrangements do not constitute satisfactory long-term alternatives. SeFtic tanks, soakaways, and pit latrinaes are in common use in urban areas and a fre- quent source of contaminiation to private wells too closely located. Sector Organization 1.09 Among various entities dealing with water supply and sanitat:cn, two institutions assume a predomina-nt and effective role. The Ministry of Industry and Energy (MIE) is responsible for planning and executing al.l water silpply and sewage systems. DEG, established in 1.961 following takeover of the fo:-eign concessionaire of the Conakry Twater and sewerage systems, has been ent:-usted with nation-wide operations of such systems; apart from water supply srstems  - 3 - in mining towns managed by the mining companies and embryonic municipal sys- tems managed by the regional ministries of rural development (MRD), DEG now manages systems in five towns and will manage all new systems for which iong- term borrowing is foreseen. Operating and maintenance performance, adequacy of staff and technical assistance and training needs are discussed in paras. 5.21-5.27. 1.10 Rural water supplies are the responsibility of MLHW, also responsi- ble for water resources inventory and allocation. The Division of Preventive Hygiene (DPH) within the Ministry of Public Health is responsible for quality control and supervision over all water supply sources, but due to its man- power and material shortage limits its role to wells in urban areas; in Conakry, the control of well construction dug by private parties and the monitoring of water quality is effectively undertaken, and inspection and disinfection of all wells takes place yearly before the rainy season, to the extent permitted by DPH's fleet of vehicles and availability of chemicals. Drainage and solid wastes disposal are the responsibility of Regional Admin- istrative Authorities (Region Administrative). Their related activities are minimal because of deteriorating means, lack of planning of operations and investment resources and shortage of qualified staff (para. 5.28). Past Sector Investments and Financing 1.11 Capital expenditures in the sector have been very low over the past decade, depending entirely on external financing. Total public investment in the water sector represented $12 million over the past 5 years. Since the ex- tension of the Conakry production and transmission works in 1965, water supply and sewage and drainage investments suffered severe cutbacks until 1973. At that time, the Government received financial aid from Italian bilateral aid and supplier's credit (approx. US$6.4 million) to expand water systems in four pro- vincial centers; eventually the amount benefited only the cities of Kindia and Kankan, because of project cost increases and currency devaluation. In 1971, the Russian Government provided US$1.9 million loan for the center of Nzerekore, and in 1975 the African Development Bank (ADB) provided about US$3.7 million to rehabilitate the production facilities and improve the transmission network of the Conakry operations. Investments in the rural areas have been negligible; recently the European Development Fund awarded a grant of about US$4.5 million to finance drilling equipment and the training of drillers and maintenance units within MLHW. Sector Program and Priorities 1.12 Early in 1974 and following cholera outbreaks in Conakry, the Govern- ment decided to give the highest priority to the capital city. Feasibility studies of water supply, drainage and sanitation for the capital city of Conakry are nearing completion; these are respectively financed by ADB and UNDP, with WHO acting as executing agency. The water supply study indi- cates that investments for this sub-sector may reach US$74 million by 1990. The drainage and sewage disposal studies to extend such facilities to the entire urban area of Conakry have not yet led to final conclusions and cost  - 4 -- estimates will depend on level of service to be agreed on. As a first a:Drox- imation, costs for the drai`nage network might reach USD70 million; costs for rehabilitating the sewerage network in parts of Conakry and exterlding appro- priate service in other areas would be in the order of -US$1