Announcement of Water Supply Project to Benefit About 250,000 People in Colombia on February 23, 1978

- . FOR IMMEDIATE RELEASE eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/48 FEBRUARY 23, 1978 WATER SUPPLY PROJECT TO BENEFIT ABOUT 250,000 PEOPL.E .IN COLOMB IA About 250,000 people are expected to benefit directly from a water supply and sewerage project in Colombia to be supported with a World Bank loan of $13.8 mi 11 ion. The Second Cali Water Supply and Sewerage Project will have a total cost estimated at $42.9 mill ion. The project aims at improving the 1 iving conditions in Cali, the third largest city of Colombia with a population of over one mill ion, and in the nearby town of Yumbo. Some 180,000 of the 250,000 direct beneficiaries are among the poorest 40% • of the country earning less than $150 per capita per year. In addition, about 160,000 people, including 70,000 urban poor, wil 1 benefit through water house connections. A major feature of the program is the reduction of contamination levels of the Cauca River at the intakes of two existing water treatment plants that supply about 85% of the total potable water of the city. Presently, the contamination levels are 500 times greater than normal health standards allow. The loan to Empresas Municipales de Cali (EMCALI) -- a municipal agency responsible for the water supply, sewerage, power and telephone facilities within the c i t y of Ca l i wi 11 be repaid in 17 years, including 4 years of grace, at an interest rate of 7.45% per annum. In 1970 the Bank made an $18.5 million loan to EMCALI to finance half of the costs of the investment program in water supply, sewerage and drainage for tit the period 1970-73. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Second Cali Water Supply and Sewerage Colombia $42.9 million • BANK FINANCING: $13,8 mill ion for a term of 17 years, including 4 years of grace,with interest at 7.45% per annum. OTHER FINANCING: Government of Colombia, $5.7 million Banco Central Hipotecario, $5.7 million IMPLEMENTING ORGANIZATION: Empresas Municipales de Cali (EMCALI), Centro Administra- tive Municipal, Apartado No. 18, Cali, Colombia. Cable addresss: EMCALI, Cali PROJECT DESCRIPTION: The project consists of: Water Sup,ly Su~prolect.-Construction of a pumping station and a 7,500 m water storage tank and a distribution network in the low-income neighborhoods; and installation of house connec- tions, including 20,000 water meters. Yu!llb,? Subproject.- Construction of a 12-km water transmission pipeline and of services pipes along the route; and rehabilitation of exis~ ing water distribution system. Reforestation Subprojecte- Purchase and planting of abou~ one mill ion trees. Cauca IDterceptor Subprojec!.- Construction of two sewage collectors, a main sewage interceptor, a lateral collector; pumping facilities and a pressure 1 ine; and rehabilitation of two regulatory drainage lagoons, and construction of stormwater- sewage structures. Stormwater Subproject.- Excavation and construction of 2.5 km of concrete-1 ined stormwater drainage canal; rehabilitation of 8 km of stormwater drainage canal; .::'Ind construction of 22 km of stormwater drainage network. ~nitary Sewers .. Sub- ~oie~t.- Rehabilitation of old sewers; and construction of sewerage laterals and trunk 1 ines in low-income neighborhoods. Studies and designs for sewage treatment facilities; provision of maintenance equipment and engineering services. PROCUREMENT: Contracts wi 11 be let under international competitive bidding in accordance with Bank guidelines, except for civil works contracts under $300,000 equivalent, up to an aggregate of $2 mill ion equivalent, which will be let under local competitive bidding procedures satisfactory to the Bank. Colombian suppliers will receive a margin of preference of 15% or the import duties, whichever is lower, under international competitive bjdding procedures. CONSULTANTS: An estimated 240 man-month of consulting services to assist in the preparation of engineering drawings, specifications, bidding procedures and construction supervision, will be needed for the project. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 22% 1981 - 0 - •