Benin - Cotonou Water Sanitation Engineering Project

Document of The World Bank FOR OFFICIAL USE ONLY fiLE COPY Report No. P-3083-BEN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE PEOPLE'S REPUBLIC OF BENIN FOR THE COTONOU WATER/SANITATION ENGINEERING PROJECT June 5, 1981 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.  CURRENCY EQUIVALENTS Currency Unit = CFAF US$1.00 CFAF 235 1/ CFAF 1,000 = US$4.3 CFAF 1,000,000 = US$4,255 FISCAL YEAR Government: January 1 - December 31 SBEE: July 1 - June 30 WEIGHTS AND MEASURES 1 mm = millimeter = 0.04 inches 1 cm = centimeter = 0.39 inches 1 m = meter = 3.28 feet 1 km = kilometer = 0.62 miles 1 1 = liter = 0.26 US gallons 1 m3 = cubic meter = 264 US gallons lpcd = liters per capita per day = 0.26 US gallons per capita per day LIST OF ABBREVIATIONS AND ACRONYMS MIME = Ministry of Industry, Mining and Energy MRD = Municipal Road Department SBEE = Societe Beninoise d'Electricite et d'Eau SONAGIM = Societe Nationale de Gestion Im mbiliere MPH = Ministry of Public Health MPWCH - Ministry of Public Works, Construction and Housing 1/ The CFA Franc (CFAF) is tied to the French Franc (FF) in the ratio of FF 1 to CFAF 50. The French Franc is currently floating.  FOR OFFICIAL USE ONLY BENIN COTONOU WATER/SANITATION ENGINEERING PROJECT Credit and Project Summary Borrower: People's Republic of Benin Amount: SDR 4.1 million (US$5.0 million equivalent) Terms: Standard IDA terms. Relending Terms: US$2.8 million equivalent would be relent to Societe Beninoise d'Electricite et d'Eau (SBEE) for 20 years including 5 years of grace, at 9.6 percent per annum. The foreign exchange risk would be borne by the Govern- ment. Project Description: The objectives of the proposed project are to address the most urgent water and sanitation needs of Cotonou, Benin's largest city and economic center, and through studies, to help define and implement long-range sector objectives and strategies. The proposed studies would include preparation of master plans for water supply and sanitation, and for urban development; review of exist-. ing tariff and accounting systems with recommendations for improvement; training program for staff of the principal project implementing agency (Societe Beninoise d-Electricite et d'Eau - SBEE); and detailed design and bidding documents for a first stage construction program to be carried out under a possible future project. The priority works provided for under the proposed Credit would include development of four additional wells to increase Cotonou's water production capacity, and the extension by about 82 km of the water distribution system to low-income areas; improvement of drainage in some urban areas which are subject to frequent floodings; and strengthening of solid waste collection and sanita- tion services. There are no particular risks associated with the proposed project. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Project Cost (net of taxes) Priority Works: Local Foreign Total -----US$ 000---- Construction of 4 water wells 190 265 455 Extension of water distribution system 250 410 660 Cleaning of existing drains 130 - 130 Construction of 14 culverts 10 25 35 Purchase of solid waste and sludge collection trucks - 685 685 Subtotal 580 1,385 1,965 Studies: Water supply/sanitation and drainage masterplans and engineering studies 200 1,060 1,260 Aerial photographic survey and mapping work 50 450 500 Urban development plan 50 450 500 Training of SBEE's key staff 10 130 140 Pilot plan for health education - 30 30 Water/sanitation tariff study 15 110 125 Financial studies including audit of SBEE's FY80/81 accounts 20 180 200 Sub-total 345 2,410 2,755 Base Cost 925 3,795 4,720 Physical contingencies 140 400 540 Price contingencies 235 805 1,040 Total 1,300 5,000 6,300 Financing Plan: IDA Credit - 5,000 5,000 SBEE 950 - 950 Government 350 - 350 1,300 5,000 6,300  - iii - Estimated Disbursements: FY82 FY83 FY84 FY85 Annual 1.0 1.8 1.6 0.6 Cumulative 1.0 2.8 4.4 5.0 Rate of Return: Not applicable Staff Appraisal Report: None Map: IBRD No. 13797 I   INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE PEOPLE'S REPUBLIC OF BENIN FOR THE COTONOU WATER/SANITATION ENGINEERING PROJECT 1. I submit the following report and recommendation on a proposed Development Credit to the People's Republic of Benin for an amount in various currencies equivalent to Special Drawing Rights 4.1 million (US$5.0 million) on standard IDA terms to help finance the Cotonou Water/Sanitation Engineering Project. US$2.8 million would be relent to Societe Beninoise d-Electricite et d'Eau for 20 years, including 5 years of grace, at 9.6 percent per annum to finance the foreign exchange cost of proposed studies and improvements in Cotonou's water distribution and sanitation systems. PART I - THE ECONOMY _/ 2. The latest economic report on Benin (Report No. 2079-BEN, issued in May 1979) was the result of a basic economic mission which visited the country in fall 1977. The paragraphs below are based on this report, but include updated information. Annex I provides basic country data. Introduction 3. After independence in 1960, a period of instability characterized by frequent changes in Government prevailed until the revolution in 1972 which brought to power the military Government of President Kerekou. The new regime immediately took steps to replace foreign dominance in the modern sector and strengthen the Government's involvement in the agricultural sector. These measures initially disrupted the economy since there was an inadequate number of trained Beninese to replace the departing expatriates. Yet, the Government also pursued conservative financial policies which resulted in budgetary surpluses and the maintenance of the debt service ratio at less than 7 percent. 4. Benin has now enjoyed a comparatively long period of political stability under a tight, centrally controlled one-party system. Following the adoption of a new constitution, Lieutenant Colonel M. Kerekou was recently confirmed in early 1980 as President of the Republic for a three-year term by the National Assembly. Mr. Kerekou has in turn appointed a civilian-dominated Government. 5. The nation is poised for a period of moderate growth propelled by major investments in the industrial sector. But Benin's near-term prospects should be assessed with caution, because they are dependent on a few key factors: the Nigeria and Niger markets, success of key industrial projects, and continuation of a prudent budgetary policy. 1/ The text of this section is essentially the same as that included in the President's Report for the Fourth Highway Project which was distributed to the Executive Directors on April 27, 1981.  -2- Recent Economic Developments 6. With a population of 3.3 million people and a GNP per capita of $250 (1979) per annum, Benin remains one of the least developed countries as defined by the U.N. Over the 1976-80 period, the country enjoyed an average real GDP growth rate of 4.6 percent, and a sound public finance position. Exports are limited (US$170 million per annum) and little diversified (mainly oil palm products and cotton). A large resource gap, 20 percent of GDP, is shown over the 1975-80 period according to Central Bank statistics. The gap is, in fact, smaller due to the substantial volume of informal, unrecorded exports, primarily to Nigeria. Also, an important part of the remaining shortfall is financed by a sustained inflow of workers remittances and capital grants, leading to only a modest reliance on medium- and long-term borrowing. 7. Agriculture, which employs about 70 percent of the population and generates about 40 percent of GDP (1980), has not substantially increased its output over the past decade. With respect to export crops, cotton peaked in 1972 at 50,000 tons, but has since fallen to around 15,000-20,000 tons. Palm oil production continued to increase until the mid-1970s, but output has been reduced since a severe drought in 1976. Institutional changes, insuffi- cient farmgate prices, lack of financial resources, and the absence of techni- cal assistance are the main reasons for the unsatisfactory performance of export crops. Foodcrop production, although beset by many of these problems, has fared somewhat better with sustained demand from Nigeria. The situation of the sector in general is slowly improving under renewed Government support through producer price increases, less interference with market forces, and better climatic conditions. 8. The industrial sector is still undeveloped due to a lack of skilled manpower, smallness of the local market, and institutional constraints. It employs less than 2 percent of the labor force, contributes 11 percent to GDP (1979), and consists mostly of processing of agricultural products and import- substitution activities. The sector achieved an 11 percent annual growth rate during 1972-76, but slowed down to 4.9 percent during 1977-80 because of a fall-off in demand from the Nigerian market. Currently, Benin is beginning to exploit its natural resources through several major industrial projects: the Onigbolo cement factory (limestone), the Save sugar plant, and the Seme off- shore oil field (para. 14). 9. The tertiary sector (mainly transport and commerce) accounts for about 40 percent of GDP (1980), and employs almost 40 percent of the labor force. The port of Cotonou has traditionally provided access to the sea for landlocked Niger and the western part of Nigeria. The Niger traffic through Cotonou Port rose from 180,000 tons in 1973 to 529,000 tons in 1977, and total transit traffic including Nigerian traffic rose to a peak level of 900,000 tons in 1979, and then declined slightly during 1980. 10. As a result of a prudent budgetary policy, Benin has been run- ning current surpluses averaging about 4-5 billion CFA during the last five  years. The Government followed a conscious policy of controlling current expenditures (which showed no increase in real terms during 1972-79) through limits on salaries of civil servants, and holding down maintenance expendi- tures. It also derived increased revenues from the rise in cross-border trade with Nigeria, and from increased small-scale industrial activities (textiles, beverages). However, the overall budgetary position has been in deficit because of substantial expenditures on investments and Government lending in support of unprofitable state enterprises. In 1979, the overall deficit of the central Government budget rose to 16 billion CFA, nearly three times the average level of the previous four years. This substantial shortfall was the result of the Government's efforts to mobilize resources for an accelerated implementation of the Three-Year Development Plan (see para. 15). The defi- cits have been financed mainly from external sources and domestic borrow- ing. For 1980, a 50 percent rise in the deficit was estimated, concurrently with a quadrupling of domestic borrowing. 11. Prices have been kept under control, and the overall rate of infla- tion was limited to 9-10 percent in 1978-80. The increased economic activity induced by the start-up of major industrial projects is likely to exert continuous pressure on prices in the next few years, with an inflation rate of 11-12 percent projected for 1981-82. 12. The Government is committed to broad-based socio-economic policies, but a key concern hitherto has been to keep wages and salaries low because of limited public revenues. In real terms, both public and private sector salaries have declined. Cash incomes of the farmers may have increased slightly, the losses resulting from the drop in cotton production probably having been maie up by increased exports of maize to Nigeria. Thus, Benin is one of the few countries in Africa where the urban-rural income gap has not widened in recent years. Education is one of the Government's top priorities. The Government is in the process of implementing reforms aimed at both adjusting the education system to the needs of the country, and reducing the high cost of formal education which absorbs 33 percent of the Government's recurrent budget. Health facilities are still poor, and the social indica- tors for Benin (literacy, life expectancy, etc.) remain well below the average for low-income developing countries. The Government's objectives are to expand health facilities in the provinces and to integrate modern and traditional medicines, but few resources have been made available to accom- plish these goals. 13. One of the most serious threats to health is the lack of access to clean and potable water both in urban and rural areas. The Government, with the assistance of IDA, the African Development Bank, UNICEF and bilateral aid is undertaking a program to develop public utilities in secondary centers and wells in rural areas. But these investments remain negligible in relation to existing needs. The 1978-80 Development Plan 14. A Three-year Plan (1978-80) was issued in October 1977, setting out the Government's economic goals. Its stated objectives are to raise the general standard of living, to strengthen national economic policies,  - 4 - and to promote broad participation in the conception and implementation of economic and social changes. Investment allocation in the Plan favors large- scale projects. The major items are: the Cotonou Port extension (US$50 million) financed by IDA and seven other agencies; a 40,000-ton sugar project at Save (US$210 million); a 500,000-ton cement plant at Onigbolo (US$159 million); and the Seme offshore oil production project (US$120 million), estimated to yield a total of about 11 to 20 million barrels. These projects together account for some 50 percent of Plan investment. Work on the Cotonou Port is far advanced. The sugar and cement projects are joint ventures with the Nigerian Government, with Nigerian marketing and financing guarantees. The production of sugar, cement and oil should commence around 1982. 15. In fact, the rate of implementation of the Three-Year Plan has been less than 50 percent of Plan objectives. Major difficulties include inade- quate project preparation and coordination, delays in obtaining foreign finan- cial commitments, and insufficient control over project execution. Recently, however, the Government has succeeded in accelerating commitments from foreign aid donors, and total public investment is likely to be some US$750 million in the five-year period 1978-82. This represents an increase in the public investment rate from 10 percent during 1972-77 to 19 percent in 1978-82. Prospects 16. The medium-term outlook for economic growth in Benin is moderately optimistic. Real GDP growth during 1981-85 is expected to average 5-6 percent per annum. The risks to Benin's economy are a slackening of export demand and the negative impact of problems which may arise in implementing the large projects. The benefits from these projects are, in turn, dependent upon price agreements (with Nigeria in the case of cement and sugar). Benin's agricul- tural growth prospects will, moreover, depend on effective pricing and market- ing policies in the rural sector. In the long term, Benin's growth potential will be limited by a poor resource base to perhaps 4 percent per year, and even the achievement of this rate will depend on the ability of Government to channel resources and orient programs (in social and economic infrastructure, training, marketing, etc.) towards the development of food and cash crops. 17. Benin's public finance and balance of payments situation may fluc- tuate more over the next five years than has been the case in the preceding half-decade. In the mid-1970's conservative public policies led to budget surpluses and a stable trend in foreign reserves. This partly reflected, however, the lack of sizable new initiatives in public investment. The situation is now changing with the increase in public investtent which places heavy demands on the Treasury for counterpart funding, and steps up the pace of capital and intermediate goods imports matched by foreign financial inflows. The balance of payments will undergo fluctuations between now and 1985 under the impact of the major projects. Since the large projects under- way will heavily influence the trade balance and public finances, their successful implementation is essential for Benin's medium-term outlook.  18. Benin's total external debt (including undisbursed), which until the end of 1980 had remained relatively low (amounting to US$425 million with a debt service equivalent to 4.5 percent of the country-s exports), is expected to rise substantially as investments increase and borrowing conditions harden. The debt service ratio is projected to exceed 20 percent of exports in the mid-1980s. This ratio is high, but up to 80 percent of the debt service is accounted for by the large projects, two of which are guaranteed by Nigeria. 19. In view of the country s low per capita income, the growing need for external funding of priority projects in an expanding economy, and Benin-s * narrow export base, it will be necessary to increase the volume of foreign financing on concessionary terms. Benin is expected to be able to finance no more than 10-15 percent of its overall public investment program, thus foreign * donors should continue to provide a large share of total project costs, including some financing of local costs. PART II - BANK GROUP OPERATIONS IN BENIN 20. To date, the Bank Group has extended twelve credits to Benin, in- cluding two supplementary credits, totalling US$104.8 million. Four of the credits were for agriculture (32 percent of total lending), five for highway construction and maintenance (45 percent), and one each for port expansion, education and small-scale enterprises development. Annex II contains a sum- mary statement of Bank Group operations in Benin, as well as notes on the execution of ongoing projects. 21. IDA's first operation in Benin was the HINVI Agricultural Devel- opment Project (FY69) which provided for oil palm plantings and foodcrop development. The project was completed in 1974. As stated in the Project Performance Audit Report (M78-451 of May 19, 1978), poor rainfall delayed palm tree development, while foodcrop production remained below appraisal estimates mostly because of labor constraints. To overcome this difficulty, an accelerated program of ox-drawn cultivation was initiated. Animal trac- tion expanded rapidly, resulting in substantial increases in maize yields. The project was successful in assisting SONADER, the executing agency, to continue its good performance and supporting cooperative developments. The second agricultural credit, the Zou-Borgou Cotton Project (FY72) has also been completed (Project Performance Audit Report M78-353, April 20, 1978). This operation aimed at expanding cotton and foodcrop production in the Zou-Borgou provinces. Due to frequent changes in Government policy, and reorganization of institutions within the sector, the project failed to achieve its objective of increasing cotton production. Foodcrop production, on the other hand, was expanded mainly due to growing demand from neighboring Nigeria. While the OED Report did not conclude that a larger maize component in the project would have made it successful, experience suggests that agricultural packages should be more diversified by combining export cash crops and staple food crops, with the latter included to satisfy farmers subsistence needs and to supply domes- tic markets and those of neighboring countries. It was clear that careful project monitoring was also necessary to provide a measure of flexibility to  - 6 - the implementing agency. The third project in the agricultural sector was the Technical Assistance Project (FY77) designed to strengthen the country's agri- cultural institutions, carry out pilot projects, conduct foodcrop research, and re-train extension services. Although the project did not fully meet all the set objectives, it did result in satisfactory preparation of two follow- up operations to the Zou-Borgou project (including appropriate measures to improve the managerial and technical performance of the various executing agencies). The first of these two projects focusing on the Borgou Province was approved by the Executive Directors in April 1981. 22. The Bank Group's involvement in the transport sector in Benin began in 1969, when the Bank acted as Executing Agency for a UNDP "Land Transport Study." This study led to the financing of a four-year Highway Maintenance 9 Project in FY69. The Project Performance Audit for this project (Report No. M77-758) of October 25, 1977 indicated that significant strengthening of the Government department then responsible for maintenance operations occurred under the project. The Second Highway Project (FY73), co-financed by USAID, comprised the reconstruction of 320 km (Parakou-Malanville) and short sections (between Godomey and Bohicon) of Benin's north-south trunk road, continuation of the road maintenance program initiated under the first project, and train- ing. The project was satisfactorily completed. The rate of return of the Parakou-Malanville road is estimated at 16 percent versus 13 percent at appraisal, and 30 percent versus 19 percent at appraisal when including benefits to Niger from its transit traffic. The Third Highway Project (FY78) provided for further rehabilitation of a 107 km section of the Godomey-Bohicon road and expansion of the maintenance program, including elimination of the backlog in resurfacing bituminous laterite roads. A Fourth Highway Project aimed at improving the efficiency of routine and periodic maintenance, and continuing the elimination of the backlog maintenance of laterite roads was approved by the Board earlier this fiscal year. The project provides for the rehabilitation of about 500 km of gravel roads and the reconstruction or resealing of about 84 km of paved roads. The paved road sections were origin- ally to be resurfaced under the Third Highway Project, but have now deterior- ated to the point where full reconstruction is required. A feeder road develop- ment program was initiated under the First Feeder Road Project in FY77. This project has been completed, and a second one to continue the program was also approved earlier this fiscal year. The major objective of a Port Project approved in 1978, is to raise the cargo-handling capacity of the port by providing additional berth (660 m), storage capacity, and technical assistance to improve port operations. Implementation of the project has encountered technical problems resulting in cost overruns, and Government is seeking supplementary financing from the co-lenders. 23. The First Education Project (FY74) emphasized the non-formal sector. Its aim was to train rural youth and upgrade the country's voca- tional training capacity. The rural youth training component is now being evaluated to determine whether a follow-up project would be justified. A Second Education Project (scheduled for FY83) would consist of training for primary, secondary, and technical school teachers, and production of didactic materials.  - 7 - 24. In FY80, IDA granted a Credit to the Banque Beninoise pour le Developpement (BBD), the national development bank providing medium- and long-term loans to both the public and private sectors. The project is aimed at providing BBD with resources needed to finance small- and medium-scale enterprises up to 1982, and strengthening BBD's management and capacity to promote small- and medium-size investments. 25. The remainder of the planned program until 1985 is devoted to continuing work in sectors with existing IDA involvement, such as highways, education, and possibly small-scale industry, and initiating Bank Group support in oil exploration and in the urban sector. The proposed project would help define and implement long-range objectives and strategies for water/sanitation and urban development, and assist in the preparation of follow-up projects. PART III - THE WATER SUPPLY AND SANITATION SECTOR Water Resources 26. Water resources in Benin come from rivers, lakes and groundwater. There are several rivers: the Oueme (with its tributaries, the Zou and the So), the Mono, the Couffo and the Niger. They have a variable flow, and often carry no water during the dry season. Several lakes are located in the south of the country. Groundwater, which is available throughout the country, is the principal source of drinking water. About 25 percent of existing wells have a depth in the 80-meter range; the remainder are shallow ones, with an average depth of about 20 meters. Water Supply 27. Surveys of the water supply/sanitation sector were carried out in 1978 and 1980 under the World Health Organization/Bank Cooperative Program. Information collected under the survey revealed that only 50 percent of the urban population have access to safe water, of which slightly less than half are served by house connections, with an average consumption of about 50 liters per capita per day (lpcd). The remainder are served by standpipes, with an estimated average consumption of about 10 lpcd, or use private wells. There are seven piped urban systems in the country. Six of them (Cotonou, Porto Novo, Abomey, Bohicon, Ouidah and Lokossa) use groundwater, while Parakou uses water from a surface source. In the rural areas of Benin, only about 20 percent of the population have access to safe water. There are about 470 pumped wells, but only about three-quarters of them are in operation because the corrosiveness of the water has damaged the well casings. Most of the unserved population uses rain water stored in private cisterns. 28. Cotonou is located on a sand reef on the average 2-3 meters above sea level and separated from the mainland by a lake (Nokoue) which varies in salinity according to the season. The city is divided by a dredged channel which connects the lake to the sea. The city-s potable water system is sup- plied by seven wells, operated by Societe Beninoise d Electricite et d'Eau (SBEE), with a total capacity of 15,000 m3 per day. According to ongoing  preliminary hydrogeologic studies, the total aquifer safe yield is estimated at 20,000 m3/day. While the estimated yield of this aquifer would be sufficient to meet Cotonou's demand at least over the next five years, addi- tional water sources to meet the long-term needs have to be identified. The water supply master plan to be financed under the proposed project would consider all potential water resources for the Cotonou region. 29. Current water production meets less than half of Cotonou's normal demand. The production problems are aggravated by the fact that the water is very corrosive, and some of the wells installed have had short lives. The water is treated in a modern and well-maintained plant, and distributed through a system which supplies about 6,500 house connections and 70 public standpipes. Only about 40 percent of Cotonou's population is served by the water distribution system, which has yet to be extended to those new areas occupied by recent migrants to the city. That part of the population not served by the system either buys its drinking water from water vendors or from people connected to the distribution system (at very high rates, almost 15 times the normal tariff), or they take it from rainwater stored in private cisterns or from shallow wells, which are very often polluted, and particularly during the rainy season. 30. The water distribution system comprises about 21 km of transmis- sion main and about 250 km of distribution network. There are three elevated reservoirs which have a total volume of 2,000 m3 (13 percent of daily consump- tion). Although the transmission system of the water distribution network has sufficient capacity to carry the projected demand during at least the next five years, the distribution network is inadequate and requires urgent improve- ments and extension in order to serve a larger segment of the population. The proposed project would provide for the construction of additional wells and the rehabilitation and extension of the water distribution system. The new wells would be equipped with corrosion-resistant casings. Since at present most of the 70 existing standpipes are not connected or closed because daily water consumption has reached production capacity, SBEE would undertake to open the standpipes as soon as additional production capacity becomes available from the new wells included in the priority works component of the proposed project (draft Project Agreement, Section 2.03). Sewerage and Solid Waste Collection 31. There is no water-borne sewerage system in Benin. About 20 percent of the urban population has access to excreta disposal service. Only two main cities, Cotonou and Porto Novo, have a municipal service for emptying septic and holding tanks. In the rural areas, only an estimated 5 percent of the population have latrines. Organized waste collection and disposal exists only in Cotonou and Porto Novo, and present service level is grossly inadequate. 32. Sanitation in Cotonou is even less developed than water supply. As noted earlier, there is no water-borne sewerage. About 35 percent of the population have septic and holding tanks, and less than 5 percent still use the pan system for which municipal collection service has practically ceased. Due to the high groundwater level, there are relatively few latrines and most  - 9 - of them in the outlying areas. The remaining 60 percent of the population of Cotonou lack sanitary facilities, thus posing a severe pollution risk. The Municipal Roads Department which is responsible for emptying of septic and holding tanks, has recently purchased a fleet of five suction trucks, but is not able to satisfy present needs. The proposed project would provide financ- ing for two additional suction trucks to alleviate this problem. The sludge is disposed of in an abandoned rainwater-filled quarry which is considered a temporary measure because of its potential danger for groundwater pollution. 33. Refuse collection is inadequate. Uncontrolled dumping is wide- spread. People spread uncovered refuse over nearby low-lying areas including roads. The few surface drains that exist are frequently blocked by solid waste. The Municipal Roads Department has only four garbage collection trucks and is unable to meet existing needs. About 20 percent of the city's total population is not being served at all; in the remaining areas, the frequency of collection varies from about once a week to once a month. The existing procedures are inadequate and represent a danger to public health. The proposed project includes a study that will suggest an improved organization for solid waste collection and disposal. Storm Drainage 34. Three cities in Benin have a storm drainage system: Cotonou, Porto Novo and Parakou. The storm drainage system in Cotonou which totals about 23 km was constructed during the mid-1960s and serves a portion of the western part of Cotonou, while the recently settled left bank section of the city has no drainage. The three major open channels of the west bank have a total length of about 5 km. The remainder of the system consists mostly of underground drains which feed into these channels. These in turn discharge into the dredged channel which connects the inland lake Nokoue with the sea and divides the city into its eastern and western areas. The flow in the existing drainage system is impeded by solid waste, sand, as well as abundant growth of vegetation in the open channels. Moreover, the existing concrete channel lining is severely damaged. The drainage problem in Cotonou is very difficult because the city is only two to three meters above sea level with many low-lying areas. Sometimes, flooding in the western section is severe, and in the eastern section, i.e. the left bank, highly polluted storm water levels can rise up to half a meter above the ground. The proposed project includes a drainage study to assess alternative solutions and to develop an investment program with due consideration to public health, engineering, operational and economic aspects. Urban Planning 35. The difficulties in providing adequate infrastructure in Cotonou are compounded by the fact that no urban development plan exists for the development of this city which, by choice of both Government and the private sector, is destined to continue growing at a rate which is above average for cities even in countries having similar rural/urban ratios. Lack of a coher- ent planning framework and comprehensive technical studies, compounded by inadequate mapping documents and insufficient staffing of planning agencies,  - 10 - has allowed ad-hoc extension of urban development to areas sometimes subject to flooding, resulting in costly development. It is evident that an urban plan is necessary, not only to provide for economic development of infrastruc- ture, but indeed to avoid occupation of areas which it may never be economical to equip with adequate infrastructure. The proposed project would provide for preparation of an urban structure plan to serve as a guide to urban development in Cotonou over the next ten years. It would include the formulation of a coherent public investment program on the basis of the urban development plan and the drainage and water supply waster plans. Detailed maps for the Cotonou region would be drawn up to allow effective preparation of the proposed plans. Studies of urban management would also be carried out focusing on both techni- cal and planning agencies for efficient delivery of services, and for better physical planning and monitoring of urban development. Public Health 36. The incidence of intestinal and parasitic diseases is high through- out the country. However, no reliable statistics on specific water-borne and sanitation-related diseases exist. The most frequently observed water-related diseases are: amoebiasis, malaria, various diarrheas, dysenteries and parasitic infections directly attributable to environmental deficiencies. Cholera is endemic principally in the south of the country; riverblindness is concentrated in the northern state of Mono. The proposed project includes financing for the preparation of a pilot health education program for Cotonou which should provide guidance to its population for efficient use of water and sanitation facilities. Sector Institutions 37. Four ministries (Planning; Industry, Mining and Energy - MIME; Public Works, Construction and Housing - MPWCH; and Public Health - MPH) are involved in the planning, development and provision of water supply/sanitation and health services. Several other agencies are also active in the sector: the Societe Beninoise d'Electricite et d'Eau (SBEE), for power and urban water supply; the Hydraulics Department of MPWCH, for development of water resources; the Municipal Road Departments (MRD), for urban sanitation and urban road construction and maintenance; and the Societe Nationale de Gestion Immobiliere (SONAGIM), under MPWCH, for urban planning and housing development. The two principal project executing agencies, SBEE and MRD are discussed below (para. 38 to 43). A review of the sector and of these agencies indicate that the principal constraints which hinder development are: (i) lack of long-term or even medium-term planning and lack of data to support such planning; (ii) the need to review sector organization, especially arrangements for carrying out rural water supply programs; (iii) inadequate budget provisions, especially for recurrent costs (only for MRD); (iv) shortage of qualified personnel and absence of training programs; and (v) the need for a hygiene education program to optimize impact of investments on health, and encourage public participation in the construction and maintenance of village water supply facilities. 38. Societe Beninoise d'Electricite et d'Eau (SBEE) was legally estab- lished in 1973 as a national enterprise which plans, constructs, operates and maintains power and urban water supply facilities throughout the country. It  - 11 - has a Board of Directors and seven functional departments (operations, elec- tricity, water, administration, commercial, accounting and budgets, and civil engineering services). SBEE is a fairly well organized public utility, con- scious of giving good services to its consumers, and with competent key person- nel in both water and power functions; however, at middle and lower levels, there are many vacancies. The German aid agency (GTZ) is currently providing a training program for SBEE's technicians and semi-professional staff. The proposed project provides for scholarships and additional training for SBEE's professional staff. s 39. The Municipal Roads Department of Cotonou, which is primarily responsible for road construction and maintenance, is also in charge of maintaining the storm drainage system, garbage collection, emptying of septic tanks, and operation and maintenance of the water standpipes. About 70 percent of its 400 employees work in the above mentioned areas. As the Municipal Roads Department has been carrying out its various responsibilities to a limited extent only, the drainage study financed under the proposed project would analyze its performance in detail and suggest appropriate institutional alternatives for Cotonou's drainage and sanitation operations. Financial Performance of Sector Institutions 40. For FY79/80, SBEE's revenues from electricity sales were CFAF 2.0 billion (US$8.5 million), and from water sales CFAF 0.7 billion (US$3.0 million), according to preliminary figures. SBEE billed 8.3 million cubic meters of water; the number of water customers was about 10,400 at the end of June 1980, including 6,500 in Cotonou. Total revenues exceeded cash operating expenses plus debt service. The operating ratio for FY79/80 was 63 percent. Long-term debt was only CFAF 1.4 billion (US$6.0 million) at the end of FY78/79, and the relation of debt to equity was 24:76. Debt service amounted to CFAF 155 million (US$0.7 million). The debt service coverage ratio was about 6. 41. SBEE's cash position has been weakened by slow collection of custo- mer arrears, especially from the Government. The total of water and power customer accounts amounted to CFAF 1.4 billion (US$6.0 million) for the Government and CFAF 1.38 billion (US$5.9 million) for private customers at the end of June 1980, equalling about 18 and 7 months of billing respectively. Government has agreed under the proposed project to pay arrears owed to SBEE for water and electricity consumption by Government departments services, and agencies, in accordance with a plan acceptable to the Association (draft Development Credit Agreement, Section 4.02). The proposed plan would be submitted to the Association for review no later than March 31, 1982 following completion of the planned financial studies (para. 42). The Government has also agreed that in future, its entities would pay to SBEE, within not more than four months after billing, all charges for water and electricity consumption, and would present to Government their proposals for budgetary appropriations to cover such charges on the basis of consumption levels during the current fiscal year and estimates of consumption increases (draft Develop- ment Credit Agreement, Sections 4.02 (a) and (b)).  - 12 - 42. SBEE's annual financial statements are reviewed by Government audi- tors; however, these reviews have been limited in scope and depth. Therefore, the proposed project includes financial studies, including an audit of SBEE's FY80/81 accounts and a review of accounting procedures and financial controls. Thereafter, annual audits of SBEE-s accounts would continue to be carried out by independent accountants acceptable to the Association (draft Project Agreement, Section 4.03). 43. The operating expenses of Cotonou's Municipal Roads Department are paid through the budgets of the six districts of the city; all employees of the Municipal Roads Department are carried on the payrolls of the districts. The Municipal Roads Department does not have an autonomous budget, except for minor revenues from the emptying of septic tanks, which are used for the purchase of spare parts and other supplies. Expansion of the Department's operations to match growth of the city has been hampered by lack of funds. The proposed project would provide for studies to improve institutional and financial arrangements for services currently performed by the Municipal Roads Department. Tariffs 44. The water tariff was increased to CFAF 80 (USd34) per m3, effective July 1, 1979, and is applied countrywide. 1/ The charge to homeowners for the emptying of septic tanks is around CFAF 5000 (US$21) per truckload in Cotonou. There is no tariff policy yet regarding drainage and solid waste collection. A water and sanitation tariff study would be financed under the proposed Credit. Government and SBEE have provided assurances that, depending on recommendations of the proposed tariff study, water tariffs would be revised as necessary in consultation with IDA; until implementation of such a tariff revision, SBEE and Government would take all necessary measures (including if necessary increases of the water tariffs) to ensure covering of cash operating expenses of the water supply operation and meeting debt service requirements (draft Development Credit Agreement, Section 4.03, and draft Project Agreement, Section 4.02 (c)). Bank Group Role and Strategy 45. The proposed Engineering Credit would be the Association's first ope- ration in the water supply and sanitation sector in Benin. The Bank Group objectives, other than addressing urgent basic needs, are to contribute to the Government's efforts to define coordinated and coherent policies and strategies, and to help build viable sector institutions. At present, there are no long- range strategies for these sectors. The overwhelming concern of the Government is the precarious water and sanitation situation in Cotonou, and particularly the drainage problem. The continuing unplanned growth of the city compounds the problem. While the priority works component to be financed under the pro- posed project will address immediate needs, the studies, as well as preparation of follow-up projects, would help define and implement long-range sector objec- tives and strategies. The proposed studies will suggest viable institutional set-ups for the sewerage and drainage subsectors; the water subsector will be strengthened through implementation of a training program for SBEE's staff, and through recommendations arising from the financial and tariff studies. 1/ Average water tariffs in other West African countries are (US4 per m3 equivalents): Cameroon: 50, Senegal: 48, Guinea: 38.  - 13 - PART IV - THE PROJECT Cotonou - The Project Area 46. Cotonou, with 350,000 inhabitants (1979 estimate) is the largest city in Benin. Because of its rapid growth in importance as the center of economic life in the country, the Government over the past few years has moved many of the ministries to Cotonou from the official capital city of Porto Novo. Most international organizations represented in Benin, embassies, and * the head offices of the largest companies are located in Cotonou. The recent opening of a new bridge providing access to Cotonou from Lagos and of a major market-place near the bridge, as well as expansion of the deep-water port in Cotonou (partly financed by the Association under Credit 826-BEN), will help develop and consolidate Cotonou's role as a major regional center of commerce and transit. 47. In October 1979, the Government requested the Association to finance a large urban infrastructure project for Cotonou covering the water/sanita- tion, power and urban sectors. However, the absence of project preparation and urban planning made it impossible for the Association to consider such a project immediately; it was agreed that the Association would first proceed with this priority works and engineering project. 48. A Bank Group mission visited Cotonou in April 1980 to identify the possible scope and components of the proposed project. The water and sanita- tion components, including the priority works, were further analyzed in detail during a WHO mission in June 1980 under the Bank/WHO Cooperative Program. Also in June 1980, a Bank urban specialist visited Cotonou to assist in preparation of draft terms of reference for the urban studies. The project was appraised in November 1980. Negotiations were held in Washington in April 1981 with a Beninese delegation led by the General Manager of Societe Beninoise d'Eau et d'Electricite. There is no separate Staff Appraisal Report. Annex III contains supplementary project data. Project Objectives and Description 49. The main objectives of the proposed project would be: (i) to provide relief to the most urgent water and sanitation needs in Cotonou; and (ii) to finance studies which would examine long-term solutions (using low-cost technology) to Cotonou's water, sanitation and urban problems; prepare specific projects for possible financing by the Bank Group and other lenders; suggest 4f appropriate institutional arrangements; and determine alternative sources of revenue for the water/sanitation sector. The project also provides for formulation of a health education program aimed at encouraging better use of water/sanitation facilities, and for design and implementation of a training program for professional staff of SBEE.  - 14 - 50. The project would include: (a) Priority Works (i) construction of 4 water wells, including provision of pumps and related equipment; (ii) rehabilitation and extension of the distribution system into the poorer areas of Cotonou, including 82 km of pipeline, 30 standpipes and 17 fire hydrants; (iii) cleaning of existing drains and construction of 14 culverts; (iv) purchase of 2 dumptrucks, 1 mechanical shovel, 2 suction trucks and 1 solid waste collection truck. (b) Studies (i) updating of the water supply master plan, and preparation of feasibility studies, detailed engineering and bidding documents for a first stage water supply construction program; (ii) preparation of a drainage master plan, and feasibility studies, detailed engineering and bidding documents for a first stage construction program; (iii) preparation of a sanitation (sewerage and solid waste) master plan, together with engineering studies and bidding documents for a first-stage construction program; (iv) aerial photographs and preparation of detailed maps for the Cotonou region; (v) urban development plan, including formulation of an urban investment program; (vi) water/sanitation tariff study, including assessment of alterna- tive modes for financing of house and yard connections; (vii) financial studies concerning SBEE, including review of SBEE's accounting systems and procedures and its internal controls; audit of its 1980/81 financial statements; review of cost accounting with emphasis on separation of accounts for water and power operations; review of the financial planning and budgetary control systems; assistance in implementation of the proposed improvements; and evaluation of training needs of the financial and accounting staff; (viii) pilot plan for health education; and (xi) training program for SBEE-s professional staff. Project implementation is expected to commence in the second half of 1981 and to be completed by the end of 1984.  - 15 - Project Cost and Financing 51. The total cost of the project (net of taxes and duties from which the project would be exempt) is estimated at US$6.3 million equivalent, of which US$5.0 million in foreign exchange (about 80 percent) to be financed by the proposed Credit. Cost estimates are based on March 1981 prices, taking into account similar operations recently implemented by SBEE and the Munici- pality, and consultancy contracts awarded in Western African countries over the past year. Costs for consulting services (about 190 man-months in total) average US$10,000 monthly, including reimbursable costs such as travel and subsistence. Physical contingencies ranging from 10 to 15 percent have been included for all items. Average price contingencies of about 10 percent per year have also been applied throughout the project implementation period based on expected annual increases in international prices for foreign cost items, and on country-specific inflation estimates for local cost items. Onlending Arangements 52. The Government would onlend US$2.8 million equivalent of the Credit proceeds to SBEE for 20 years including a five-year grace period, at 9.6 percent per annum to finance the foreign exchange cost of the project items to be executed by the SBEE (draft Development Credit Agreement, Section 3.03 (a)). The local cost component of this portion of the project (US$950,000 equivalent) would be financed by SBEE. The Government would provide a contribution of US$350,000 equivalent to cover the local cost of the other components of the project which would be executed by several public agencies (para. 54). The Government would also bear the foreign exchange risk of the Credit. Execution of a subsidiary loan agreement between the Government and SBEE, under terms and conditions satisfactory to IDA, would be a condition of effectiveness of the proposed IDA Credit (draft Development Credit Agree- ment, Section 6.01 (b)). Retroactive Financing 53. Retroactive financing of up to US$50,000 equivalent is recommended to cover the aerial photographic survey of the Cotonou region which needs to be done during the current dry season and before preparation of master plan studies (draft Development Credit Agreement, Schedule 1). Project Execution 54. SBEE would be responsible for construction of the water wells and for improvements to the water distribution system. Engineering plans and bidding documents for these components have been prepared by SBEE and reviewed by IDA. The Cotonou Municipal Roads Department would, under the supervision of SBEE, rehabilitate the existing storm drainage system, construct culverts, and purchase vehicles for construction and solid waste and sludge collection. The water, sanitation and urban studies, as well as aerial photography and mapping work would be implemented by consulting firms under the supervision of SBEE and the Ministry of Public Works. Terms of reference and shortlist of consultants have been reviewed by IDA and found acceptable, and most contracts  - 16 - are expected to be awarded between October 1981 and March 1982. The pilot plan for health education would be monitored by the Ministry of Health. The water/sanitation and urban studies are expected to be carried out by a single consulting firm, or a joint venture of two firms, in order to insure optimal coordination. Staff of SONAGIM, a recently created Government agency in the urban sector, would participate in carrying out the urban development study, which would give it the opportunity to upgrade its competence in urban planning. Procurement 4 55. Supplies for the four wells and the 82 km of water distribution system would be subject to international competitive bidding in accordance with procedures satisfactory to IDA. Civil works estimated at about US$570,000 equivalent--being part of the local contribution--would essentially be carried out by SBEE, with a minor part done by the Cotonou Municipal Roads Department. Consultants for the studies component would be selected in accordance with Bank Group guidelines. The six vehicles for the Municipal Roads Department estimated at about US$625,000 would be of the same make as the already existing fleet of about twenty vehicles, in order to keep spare parts standardized and to facilitate maintenance. Vehicles would be purchased on the basis of formal quotations from at least three local and/or foreign suppliers (Schedule 3 of draft Development Credit Agreement). Disbursement 56. Proceeds of the IDA Credit would be disbursed against 100 percent of the cost of consultant services, and in the case of equipment, materials and vehicles, against 100 percent of the foreign exchange costs or, if purchased locally, 90 percent of local exenditures, representing the estimated foreign exchange component. Proceeds would be allocated as follows: (i) consultant services for the water, sanitation and urban studies, aerial photographic survey and mapping work, health education plan, and training (US$3,000,000); (ii) equipment and supplies for the water and sanitation priority works and purchase of service vehicles (US$1,600,000); and (iii) unallocated (US$400,000). Disbursements would be fully documented. Project Benefits and Risks 57. The priority works component of the proposed project would bring relief to the most urgent problems of water distribution and sanitation in Cotonou. Water production capacity would be increased to a level sufficient for the next three to four years. Water distribution would be improved and extended to low-income areas of Cotonou not yet served. Drainage would be improved in urban areas which at present are frequently flooded by polluted storm water. Collection of solid waste and emptying of septic tank sludge-- services which at present are below minimum needs--would be strengthened and extended. 58. The studies component would include preparation of a first stage construction project in the water/sanitation sector for possible Bank Group  - 17 - financing. The studies would become the basis for rational urban development of Cotonou; they would chart the necessary extensions of the water distribu- tion and drainage systems, and the first stage of a sewerage system. They would also make proposals for appropriate institutional and financial arrange- ments in the water/sanitation and urban sectors. 59. The project faces no significant risks. Detailed terms of reference for studies have been reviewed by IDA and found acceptable. The Government is keenly interested in the project, and has given high priority to its prompt implementation. PART V - LEGAL INSTRUMENTS AND AUTHORITY 60. The draft Development Credit Agreement between the People's Republic of Benin and the Association, the draft Project Agreement between SBEE and the Association, and the Recommendation of the Committee provided for in Article V, Section l(d) of the Articles of Agreement of the Association, are being distributed separately to the Executive Directors. 61. Special conditions of the project are listed in Section III of Annex III. A special condition of Credit effectiveness would be the execu- tion of a Subsidiary Loan Agreement between Government and SBEE with terms and conditions acceptable to the Association (para. 52). 62. I am satisfied that the proposed Credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 63. I recommend that the Executive Directors approve the proposed Credit. Robert S. McNamara President Attachments Washington, D.C. June 5, 1981  18 _ Annex 1 pop. I BENIN - SOCIAL INDICATORS DATA SHEET BENIN REFERENCE GROUPS (WEIGHTED AV4ACES LAND AREA (THOUSAND SQ. KM.) - HOST RECENT ESTIHATE)- TOTAL 112.6 AGRICULTURAL 33. 0 MOST RECENT LOW INCOME MIDDLE IC0IME 1960 /b 1970 /b ESTIMATE fb AFRICA SOUTH oF SAHAPA AFRICA SOUTH OF SAHARA GHP PER CAPITA (US$) 90.0 120.0 250.0 260.0 868.0 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 39.0 42.0 56.0 80.0 699.4 POPULATION AND VITAL STATISTICS OPULATION, MID-YEAR (MILLIONS) 2. 1 2.6 3.3 URBAN POPULATION (PERCENT OF TOTAL) 9.5 12.6 14.0 17.3 29.q POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 6.0 STATIONARY POPULATION (MILLIONS) 15.0 YEAR STATIONARY POPULATION IS REACHED 2160 POPULATION DENSITY PER SQ. KH. 19.0 23.0 29.0 27.4 61.7 7 PER SQ. KH. AGRICULTURAL LAND 62.0 77.0 97.0 82.6 126.0 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 44.2 44.9 46.0 44.9 45.5 15-64 YRS. 53.2 52.6 51.3 52.2 51.6 65 YRS. AND ABOVE 2.6 2.5 2.7 2.8 2.8 POPULATION GRCWTH RATE (PERCENT) TOTAL 2.2 2.6 2.8 2.7 2. 7 URBAN 6.0 5.5 4.2 6.8 4.9 CRUDE BIRTH RATE (PER THOUSAND) 51.0 49.0 49.0 47.4 46.8 CRUDE DEATH RATE (PER THOUSAND) 27.0 22.0 19.0 19.6 16.4 GROSS REPRODUCTION RATE 3.3 3.3 3.3 3.2 3.2 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) USERS (PERCENT OF MARRIED WOMEN) .. .. FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 95.0 101.0 92.0 91.8 94.0 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 93.0 96. 0 98. 0 90. 2 92. 7 PROTEINS (GRAMS PER DAY) 51.0 53.0 51.0 53.0 53.0 OF WHICH ANIMAL AND PULSE 14.0 15.0 13.0 18.4 15.6 CHILD (AGES 1-4) MORTALITY RATE 41.0 32.0 27.0 27.7 21.3 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 37.0 42.0 46.0 45.3 50. 1 INFANT MORTALITY RATE (PER THOUSAND) 206.0 .. ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. .. 20.0 23.2 31.0 URBAN .. .. 42.0 58.0 66.8 RURAL .. .. 16.0 16.8 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. 14.0 .. 28.9 URBAN .. 83.0 .. 67.0 RURAL .. 1.50 POPULATION PER PHYSICIAN 47000.0 28920.0 26908.0 30910.4 14508.2 POPULATION PER NURSING PERSON .. 2910.0 3007.0 5793.2 3279.5 POPULATION PER HOSPITAL BED TOTAL 748.0 847.0 736.0 1198.9 1141.5 URBAN .. .. 209.0 .. .. RURAL .. .. 3876.0 ADMISSIONS PER HOSPITAL BED 30.2 17.7 HOUSING AVERAGE SUZE OF HOUSEHOLD TOTAL .. .. URBAN .. .. RURAL .. .. AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. URBAN .. .. RURAL .. .. ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. URBAN .. .. RURAL .. ..  -19 - Annex 1 Page 2 BENIN - SOCIAL INDICATORS LATA SHEET BENIN REFERENCE GROUPS (WEICHTED AVE9ACFO - MOST RECENT ESTIMATE)-a HOST RECENT LOW INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE /b AFRICA SOT1H OF SAPARA AFPICA 50UTH OF SAHARA EDUCATION ADJUSTED ENROLLMENT fATIOS PRIMARY: TOTAL 26.0 40.0 58.0 5 7. 7 61.7 MALE 38.0 56.0 80.0 74.2 69.2 FEMALE 15.0 25.0 37.0 54. 1 51.4 SECONDARY: TOTAL 2.0 5.0 11.0 10.0 20.6 MALE 2.0 8.0 16.0 13.7 29.2 ENMALE 1.0 3.0 6.0 7.1 14.7 VOCATIONAL ENROL. (X OF SECONDARY) 13.0 4. 1 2. 1 6.0 7.0 PUPIL-TEACHER RATIO PRIMARY 41.0 44.0 48.0 45.2 36.6 SECONDARY 23.0 26.0 31.0 25.2 24.3 ADULT LITERACY RATE (PERCENT) 8.I .. .. 25. 5 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 1.0 4. 0 5.4 3.6 38.8 RADIO RECEIVERS PER THOUSAND POPULATION 12.0 32. 0 48.0 31. 5 83. 5 TV RECEIVERS PER THOUSAND POPULATION .. .. 0. 1 1. NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 2.0 1.0 0. 3 4. 6 24. 2 CINEISA ANNUAL ATTENDANCE PER CAPITA 0.2 0.4 .. .. 0 7 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 1048.9 1285.7 1530.2 FEMALE (PERCENT) 45. 1 44.9 44.9 33. 5 38. 1 AGRICULTURE (PERCENT) 54.0 49.7 47.0 80.7 54.3 INDUSTRY (PERCENT) 8.9 11. 0 46.0 8.1 17.8 PARTICIPATION RATE (PERCENT) TOTAL 51.2 49.0 46.4 42.2 38.8 MALE 57.1 54.9 51.0 55. 1 40.4 FEMALE 45.5 43.3 42.1 29.5 29.4 ECONOMIC DEPENDENCY RATIO 0.9 1. 0 1. 2 1. 2 1.3 INCOME DISTRIBUTION PERCENT OF PRIVATE INCEtSE RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS 31. 4/c HIGHEST 20 PERCENT OF HOUSEHOLDS 51. 7/c LCWESI 20 PERCENT OF HOUSEHOLDS 5. 5/c LOWEST 40 PERCENT OF HOUSEHOLDS 15.8/c POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 138. 2 RURAL 8 * * 4.0 86. 1 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 107.0 RURAL * * 82.0 65.0 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. RURAL * .. 55. 0 66.9 Not available Not applicable. s N~~~~~~~~~~~~~~~~~~~~~~OTES /a The group averages for each indicator are population-weighted arithmetic means. Coverage of countrEes among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Moat Recent Estimate, between 1974 and 1978. /c Population. Most recent estimate of GNP per capita is for 1979, all other data are as of April, 1980. October, 19800  - 2P - ~~~ANNE I Page 3 DIPIITtflWS OP SOC0KI IND5ICATORS 1400..: Although thu detu.r frees ..o. ecorose gnruly judged the men .uthtet.tioo sod oliablo, it ehuld also b. toted tou they my not be teno- catio..ully cos...ebie h.... f the luck of steodsrditsd dotnttor ...o.d Ico...pte ued by differeot rCuotrIes totoiot the date. The date c, o. th.1e...s., ucful to deecrih old"r of epitude. iodicete creds, and oh-reteotee certain oJor dlffer..... bato.... couc.Ier.. The,rfernc troupe at (I) the t. cutry groP of the subject tocotry ud (2) s outo group cith scoerht higloor -verus ino- thur thu cotoo trout oft sujctcutry (ecet,fo 'Capital fuoplus00 Oil o It.r . gop obor "Middle leco_ Noth Africa end Middle tut"ichose he_uos of stoL- t ect-ctrlsfiitte. in thx reforen gino duca tho s-ro . Ppuano, oigho-d rnhtteaoOoach odio-tor end eho- only e. at lsuetWolf f the ..ou. ttoi ins trc hu duta for htha tidionro. fI.os thu ooog of -cnoteis aes the indi--or dryods Io the rliaiihlity of data uc jonotun.ifo.-. reuion bust be sosroiod inosltiop urou f on todi..oo to ntnr Th.. ... ccly . ocful io -op-ro nth -01c of cc. todic_to at notie earg the routry cod re sco- fOu Lois kP. (chouceod eq b-.) foruiton coo rhoscocec - fpulutton outut by tostoo 00 practitan psy- T-no - tota1 lsuface ure -,roi.tng Wd u-oeaad tolatad vut.os. eltiee qoliflod Iron eedioul school at unineceity I- o uAticolt-Io - te-t.nt of agrulncoel Los uos -d st-poc*rll or- OsOiy Polto P.r Mitosins P'4o- Fplto ided b~.y xh o pratttioa. too c-p. P. ous, sur -.sa sod kscchoo eodo to ha Cello,; 1yydsu al sd0enl reun f I _ rese Pru .iJu ote,ed esioat netee.. GfF PIR CAPITA lUit) - GOP p. caPote osni-oss .... ube ots .. cx- urbse.n. rrl d ivided by n,'bns -.pet to e f hepoa bod -uleosdby sen con-oio -shod es Wo itluok ni (1977-79 baste); i900, ere1ibla to pobltr ad priocto asru1 sod eportlisod Ox-Pitalsd 19'S. sd 1979dnte. habilitanioc osonoos. Rooinsle arc eablishusts pseucesotly stffd INJeCY c0ysUnoPTo FtP CAPITA - A-ooul ...neuaPtion of cosuriu1l...ogy (coo byIsn louse on pbyeicien. Btstbtl.hesoo P poi4ieg Prinnipally tctodai c- _ r too itoclded. ural. hospinst hoou *-. t-olds helnb sad .sdicel edligrits. ctoen uue eec ud hydoo..-.. uo-e end sothor.l elec- cetr x onasoysa edb bscao(u ya.dts esnn toiictoy) in kWlogra of coolI oquirelet per ..pita; 196h, 1970, n 197 arsadi .eo)eiho oicpteteosdto o rvd dana. lisi~~~~1.tod ..eogs of ecdioal fecpitloe. Fo ttsla orosuhshot Total P-PHIMI-B- h.1.~~~~~~~~~~~al seclde WNeV potac otal geso bt a pofcte-lloshaspitaI, ad corel PopULatLion `Es yyT'. STAT-ISTI-C Bheiu. oa rrrlheiossdmdolsdetoiyo-te Totl Pouotio. Wri-oo (sil11ioxe.. Aof July 1; 19sf, 1970. ued i975 dtsue00Oeia a oe osco dlsost rdahre Orben Pooul..xio . Irooso of!total) R- uic of u-bso no total populanion;b, f d df sra detlniti Id of -ubecrse esy fsIlent o...rbilt', of dat-pg eat cootorce; 1960, 1970. end 1970 den.tAoaote fMusbl oouopr oehl)-ttl.chx n ot total PoPulation by .go ood se endhbir e-rosioy u-d furoility ....e. . dtufntall fo s bunto dcu proe. d. . ii84 t. tug life oopecxu..y at birth iuo.aoaio rOth coutry's- parcp`iet iO- br fPros 0 o,Iaaluhc,s uu ncpo netoa lstel end telI ieepouc tabillitna at 77.5 7oare. Tie Falb- dela,r.pcvsy ellos ..lde I I c-picou4n eatoocxoo s oeer frI erni.ty roe lo ov bra ssl ustne dtlo i uootpi uos ftotilityo..c..d;eg no in- levelw an _et faty lci- efosnc. u dot P---.t leon idolinl- co.ub. o oe ah tou Ytry Is - -bonsegad oneof bsa nle -oabieation of mooa.lint Cnecou olsesoe loott i .t liio -uarn. - pretg ordta fertlty I tredsfo trojoot`n pxrpoe is oh.i ot 1. f sot1, urba, aod -1ro dwlliogeoeepactively. the btttb oats Is q,-J to tho daatb out, abd ala thu ass -n-o-tUoA re- _L.. _oteaet. Thie ie ohisoed oely ft.er flrtilityrao declet Adustoosutats ufoxs osPi.o itet ucnly. ibs snuefuoury poptaletion etes yo.rlLao of_ale tthu pof=er levl es parceetoe of ooPattie osiinted on hu eet of thu Poojeoted tbar iotuietso of thu popolanion14 hr teYear 2000, and th. rts of detilts of fertility rats to r-plu_- poiser eosolepopxlaion; erlly toluda chIdre ags 6-1l I_aj ~~~~~~~~~~~~~~~~~yeeoe bux edjusond fordffuen soths of promary edccuton for Year ottiooaoo poneultion is -sabed - The your rhe etotsonar ppraLeico so-tet. O th pup iseshbno ebore =1 s oionlel .4 etho ego. , steo hue been oxoohed. Pocon-darn etbuol - not . enla aed lat Cenpucd - above; sa-odar FonxlucbonPhnsixyP- educa-.. 10 bI..) f tion reqot-utan`leat four Feoe of ppoored oruay erotin tonal ar.uxlyo Yi-oi aso age; oovepnentcar aemoal FoPe. he. on 1iou ..uruL.is - Coopend ba. b o e ritutot elland aldod.f Outtlaron use nouctos (ournt) - CIldren 0-la pare), ahIeg-oo (15- soludonechetol, indsorisi,or otbrtprofo eblpbopaS,tsindeia Oh yo-s) end retire (65 yer doeo sprate fod-.oP dently or ax depons cf e-onA." itst.totn- lat In; 1960, 1970, -od 1978 dana. Iuc-uce Iutiu-o,: r.adseMdr -Ttletdeesooldi Porolocon lrenr baeIllol-ccl- snu vec ee o os 06 ou aId eeoonday level divtded by osbers of tubr in nhc puopp "ets c 19104, 140-70.1 so 1970-PS. corospandio lvis.. Povoaltion Cot-r Wae aroenl-t db -_r~ - Ades1u pooch reto of uohu p0p0- Adult litur-y rate loerce..c) - Li tarat edults lble no rea an nine) lotin for -1150-60. 1960-7d~I1978 7, - a par-etafe of total adult poplulaico aed 15 years anWvr Clode ttrtb ea.e (our choee - Adeul ltvo booths per theeo a.. sudof Poptlstien; 1940. 1970, ..d 1978 dto. .floff'nis Crxde oath Sane (toe tbnaaad) - uAoux danhe per ohttau.d of nid-os ...uesescoa Car . cs. thousd co-l.tco - .uago loo nPa:Laau moor pnptlniso;1940 190an 1979 dta.cac esxnt le than etht PareTo ouc1udes sbulbo1o, h--oe an he-a-I orooioperiod if obb aputisnoa presast uoo-s.e.t. to fsr ellixery veofhicle. tIlltycexte;usxuly lie-yea voee abdo9s l 1960, 1970. - l, ...ado ...etvote (g.0I pbIuocdy-oltho - 0.11. plti-e o rnovsr foroud F-ill !l %El, A-I th.--")t- AaE-rI oen t gourl oblc artbosutdif-oplofco -Pt.d..olO ftIbd_al iIotr.Mu oosoe utu trn cetr c..-a r ieroec rounte ood In year eb "oit-atoo of redi soa orbobonrldviaudoaeie of ni-P 1 ETalyoce PoI- o. . ea teffect; date for ou-t y0s0* esy ac be coeperblu sis- men fasul rlaslaa- bae icocu of a h serin sn b- "-Prctag xlsrie oaora aohe ienta Frs of bs-beuola ag (1145 er) h s oohcnctfoiec F, .teciter (co ibteud= tlpoton - TV roicore foo IIocat allario sa .ts- use groop. senuvl public nor theusoo Populectun; -acidetunienn TV o-tI-e rOot) ANt OUTITI0Ie ic oo _tre .. A.d in pY-r rhcroi trto of yr sn rs to olbtn. produticoof al foo cdiies.Frodotionsorldee sen p od lendt - 1 to,oIIIiygnrl ceennecppr,defnda. periodic albos- to ancaena yea hsbie. C.-ditlee core potaury soode (u.5. tt.-Ot to hr 'doily" if It eppeare on .est ifour tou asset I.e... o1f~ suul)tich re edible and -onIt cotrietne (e.g.acOT e itauna cauc 0 eoofrte-uo nten oo eaoxl S.ea ptoAduoe inc otebt; 1961.65, .17h.Y- 1u978 dun..I bl-i. xurgy eqivalent of to foodsppieaaabto oetry pr sPLtta 1 FOC Per day. Av-il.ble supplioso. rs d tinei prd.ao= , loporte I.e. otlLbor Poc too- d(-Oootclyatv poreoca. iaudiag euprre en cho0e -ostck ret ouela aldn aulfed- ad, td forseen uapoy` utooLAoe bce t,vo tndn.,co quttiteeuad it-fod proo....Ioa, an I.se.e is dietoibuti-n bequtr- D.f ition. ovuc c-ocosaenc -oprble; 19b0, 1970 end ast wr oosted by PAD band on physio1ojital ends for aoIlI= s 1970 dat.. ecudu d-inobotioc of ppeeto. ndelosia Ii Percat fo tot ec. Aeicluo (bcot)-L forc Is f-rongfoetylste en hu..eehold leve; 1961-65, 1970, end 1977 dan.tfsia.opretg o ca.eo oc;190 90ed17 aa Per cnto ucolyof oote (are cooduo) - LPoti oontat of Pa. cepita Oxduety (ourcat) - isbor force Ixsua.cstcio. sioooiatotcur_f- Io cot rppip f fod perday,ten sopl fofoud Ie doflnud us shun. R- end --ticr.oue n ue sooa oo tona Iob tr 0004iO, quir-t-ec for.11 co-ties entbliebnd by iSDA provide f0 or 1n- 1970 and 1070 der.I.b f 1 . albonsuc of AU-o of toctal prototn per day and20pEa- of eolaa .-A rerticloraionbe (reocc-c) - cocel. sal., ud ft-el - FertictoiatinO Pc lsepotoico.of hbich 10 Eloo shouldbo ecla prtin. 2Tbeea tnnd- ecioyrteoccpue esttl l,adfeaelbrtre soeo oe b those of 75 gras o totalooni so 3 gra of d PI f..f i PIt-o an-a pro b-M .t.Thl-tei seenavroe fcc the rIld, Poop ..nd by ooto M hid 19rcoooe of70 toal ale sad- fele p .p -ieticoo ltesg raetiey Orold Fo toooey 161-g 1970 au 1977 daca.190 1970, -od lof dc. PPIi.. - ibse r icsprIobodeiu rata el P.c ccoic. roccoic boply f! -s olal oo puls - Pctetoi eupply of food do- tg-s tncoeo h.opat.ndlnit tsed A Ion set- crd9Irnotueedoleei r e a;101-65, 1970 -c 1977 dec.. Ioui Psoodec Rtio - tIc fppltc oeri 5udo Child (anne 1-u) Otortolity Rate (cur tbctaeandl - uanaal datbe per thoosee ix tc the total taboo forte. age".. orrup -u o , to children Is thie oge urop; f. orme dorelopio ou-- itise datado-i-d fro lit. r blee; 1960. 1970 cad 1977 data.. UDSTI~TO uouiscPcaeso PtseOco (botPh i cat sod kid) - Raotd by richeec Life fococtacyU atOto (eas A- Avsoa xt0- of peac of lifo osoioix I ern.orot fpren oret2 aco,ed poo... dO parent ec birth; 0060 1971 an(Y7dao of ho-eholte. Ixfatoo tslt oate hrs thoon) - unexal ducts of tefate ud.r Po oa OVERTY yARGET GtOUPS of opt I0 oh.uoo 1ourshithsOtisted Absolnt. P-crc IT c La- (01Sprt"io-uhe dcrl- canhr ofprope Ctnai.ochn, sd coal) lob aaruhlearc-s toeafo notonionllycdoqnto iet lo eeantal 00-fodf rqed itAbi to oeoso suPPly ("I'lle creatd surf-ac ontere or c txtd hut --tnnl-tnd sfroodblc. race eahasthatIloo proterted hbohole.: apoing. end -nit.ry ve1s) as tetiJsansl lon oecylo oa (Dip -oo. c-neit aeasd ) P_orc.otoge if their repococco populations . O en ure ala a pobliu suu!oln tepeoc ccI- Levl, n-br feoaspocpt fooao reedpcet Il...oed xot moo rhao 200 ester fren a h-.ue oa o poenl n of ch. acp Otanlee i 1-otn f. co teoxa Access to Oucocca hisoostl lonocoot cI ucculatior - cotel urben ad~~~~~~~~~~~I I.;l ,hdi. 000.1 - fliahur o tot . urhac, and rural). servedI by dancreon4 diePoe... I ccrcP oo-onee of checrepecoepopoloxiooo. t-cotc die- Oco-ol en -oi.1 Dsta Dto-loto pir pricier erd sinc1- Oo-11lltocoe.  - 21 - ANNEX I ECONOMIC INDICATORS Page 4 GROSS NATIONAL PRODUCT IN 1980 ANNUAL RATE OF GROWTH (CURRENT PRICES, IN 7) US$ Million