Madagascar - Antananarivo Water and Sanitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-2741-MAG REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE DEMOCRATIC REPUBLIC OF MADAGASCAR FOR A WATER AND SANITATION PROJECT IN ANTANANARIVO March 13, 1980 W This document has a restricted distbutbn and may be used by recipients only In the perfonmsance of their oficial duties. Its contents may not otberwise be disclosed without World Bank authorizaton.  CURRENCY EQUIVALENTS Calendar 1979 January 1980 Unit Malagasy Franc (FMG) = Malagasy Franc (FMG) US$1.00 FMG 212.72 = FMG 201.91 FMG 1,000 = US$4.70 - US$4.95 FMG 1,000,000 = US$4,701 = US$4,952 (The Staff Appraisal Report is based on US$1 = FMG 210) ABBREVIATIONS JIRAMA Malagasy Electricity and Water Company WHO = World Health Organization DUH Direction de l'Urbanisme et de l'Habitat, Ministry of Public Works EEM . Eau et Electricite de Madagascar EdF = Electricite de France UNDP F United Nations Development Program Government Government of the Democratic Republic of Madagascar SODEMO = Societe pour le Developpement economique de la region de Morondava. SEM = Societe d'Energie de Madagascar GOVERNMENT OF MADAGASCAR FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY MADAGAS CAR ANTANANARIVO WATER AND SANITATION PROJECT Credit and Project Summary Borrower: Democratic Republic of Madagascar Beneficiaries: - Malagasy Electricity and Water Company (JIRAMA) - Municipality of Antananarivo (Fivondronana) Amount: US$20.5 million Terms: Standard On-Lending Terms: To JIRAMA US$7.3 million for a period of 25 years, including 5 years of grace, at an interest rate of 8 percent per annum. To Antananarivo Fivondronana US$13.2 million for a period of 35 years, including 5 years of grace at an interest rate of 4 percent per annum. Project (i) Objectives: The principal objectives of the proposed Description: project are: to increase access to treated water for the Antananarivo urban population and to improve sani- tation conditions in the city area, thereby reducing health hazards; to assist the beneficiary institutions to renew and modernize their facilities, improve the reliability and efficiency of their services and operations and strengthen their financial management. (ii) Main Project Components: The project components are: (a) Construction of water production works and trans- mission mains; extension and reinforcement of the water distribution system (reservoirs, pipes, booster station) and supply of heavy maintenance equipment; (b) construction of drainage collectors, a pumping station, river dykes, 10 storage basins and canals and dredging of an existing canal; (c) construction of a sewerage collecting system, a pumping station, pumping discharge mains and pilot stabilization ponds; (d) construction of collective dumping containers; purchase of collection trucks and maintenance equip- ment and upgrading of an experimental composting facility to produce 10,000 tons of compost annually; (e) Training for JIRAMA staff and sanitation staff. 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.  - ii - (iii) Benefits: Expanded water production to meet increased demand in the Antananarivo area until at least 1986; access to piped water supply for additional 200,000 urban dwellers; increased efficiency of JIRAMA's and the Sanitation Division's operations; improved health conditions through the provision of drainage facilities and the collection and disposal of refuse to meet the needs of the area until 1984. (iv) Risks: Inexperience of the implementing agencies in carrying out projects in accordance with acceptable standards. 'Failure to introduce the required water tariff increases and inability of the Sanitation Divi- sion to secure sufficient funds for its operations. To minimize thlese risks, consultants will be employed to assist in project execution and appropriate financial covenants haves been agreed upon with the Government. Estimated Costs: