Tunisia - Third Water Supply Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3914 PROJECT PERFORMANCE AUDIT REPORT TUNISIA: THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) May 4, 1982 Operations Evaluations Department 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.  PROJECT PERFORMANCE AUDIT REPORT TUNISIA: THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) TABLE OF CONTENTS Page No. Preface ......... .............................................. i Basic Data Sheet ....................................................... ii Highlights .......... ....................................... iv PROJECT PERFORMANCE AUDIT MEMORANDUM I. PROJECT SUMMARY ............................... ....1......1 II. MAIN ISSUES -........................................... 3 Project Preparation and Changes in Project Scope ....... 3 Incremental Financial Rate of Return (IFRR) ............ 4 Salinity Study ........................................ 5 Accounts Receivable ........ 5.........................5 III. CONCLUSIONS .............................. .............. 6 Appendix 1: Telex from the Government ................................ 7 Appendix 2: Telex from the Borrower ................................... 8 PROJECT COMPLETION REPORT I. Introduction ................................. ........... 9 II. Project Preparation and Appraisal ................. 10 III. Project Implementation, Cost and Operation ............... 12 IV. Financial Performance ................................. 14 V. Institutional Performance ...... -........................16 VI. Project Justification ....................... ......... 17 VII. Conclusions and Lessons Learned ........................... 19 Annexes 1. SONEDE - Organizational Chart .... ....... . 20 2. Personnel Data ...... ................... 21 3. Detailed Project Description ....................... ...22 4. Disbursement of the Loan Funds ....................... 26 5. Detailed Project Costs ................ ............. 27 6. Water and Sales Production - Sfax Area ............ 31 7. Comparison of Appraisal and Actual Income Statements (1973-80) .-............................ ... ......... 33 Comparison of Appraisal and Actual Balance Sheets (1973-80) ... . ................................ 34 Comparison of Appraisal and Actual Cash Flows (1973-80) .o ...... 35...... ........ 35 TABLE OF CONTENTS (Continued) Page No. Annexes (cont'd.) 8. Comparison of Major Indicators .............. ........... 36 9. Comparison of Appraisal Forecast and Actual Financing Plan .... ........................... 37 10. Re-calculation of the Internal Rate of Return ............ 38 Maps IBRD No. 10847 - Sfax Supply and Transmission Systems IBRD No. 10857 - Third Water Supply Project Rural Centers IBRD No. 19848 - Sfax Distribution System - 1 - PROJECT PERFORMANCE AUDIT REPORT TUNISIA THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) PREFACE This report presents the results of a performance audit of Tunisia's Third Water Supply Project, for which a loan of US$23.0 million was made to Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE)1/. The loan was signed in May 1974, became effective in September 1974 and was closed in June 1980. The Project Performance Audit Report (PPAR) consists of a Project Performance Audit Memorandum (PPAM) prepared by the Operations Evaluation Department (OED), and a Project Completion Report (PCR) prepared by the Europe, Middle East and North Africa Regional Office (EMENA). The PCR takes into account the findings of a project completion mission, which visited Tunisia in March 1981. The PPAM is based upon discussions with Bank staff and a review of the PCR against the Appraisal Report, the President's Report, the loan documents, the Minutes of the Board discussions and other documents in Bank files. An OED mission discussed the project experience with the Government and Borrower in February 1982 during the course of a country visit carried out for OED's review of water supply and waste disposal operations in Tunisia. The valuable assistance provided by the Government and Borrower is gratefully acknowledged. The audit finds that the PCR covers adequately the salient features of the project experience, except for the analysis of the changes in project scope and the question of SONEDE's accounts receivable. In addition to summar- izing the objectives and results of the project, therefore, the PPAM has discussed further the PCR's explanation of the elimination of the salinity study, the extent to which changes in project scope were due to deficiencies in project preparation and the issue of SONEDE's difficulties in collecting revenues from the municipalities. The PPAM also comments on the project's incremental financial rate of return. Following normal OED procedures, a draft copy of this report was sent to the Government and SONEDE for comments. Those replies which were received are reproduced as appendices to the PPAM. 1/ A Project Performance Audit Report has been prepared for the two previous water supply projects financed by Loan 581-TUN and Credit 209-TUN (see Report No. 1902, dated February 13, 1978).  - ii - PROJECT PERFORMANCE AUDIT BASIC DATA SHEET TUNISIA THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) KEY PROJECT DATA Appraisal Item Estimate Actual Total Project Cost (U:3$ million) 42.6 67.3 Overrun (%) 5&/a Loan (US$ million) 22.3 23.0/b Disbursed 22.3 23 L Date Physical Components Completed 9/1978 6/1980_ Proportion Completed by above date (%) 100 90 Time Overrun (%) 40 Incremental Financial Rate of Return (%) 8.8 4.0/d Financial Performance Rate of return Rate of return on assets of at on assets ex- least 5% in 1974 ceeded appraisal and in 1975 and expectations over 6% thereafter project period Institutional Performance Good Good Cumulative Estimated and Actual Disbursements (US$ '000) December 31: 1974 1975 1976 1977 1978 1979 1980 (i) Appraisal estimate 250 1,250 6,500 15,200 21,200 23,000 23,000 (ii) Actual - 300 11,900 17,500 20.300 21,200 23,000 (ii) as % of (i) - 24 183 115 96 92 100 OTHER PROJECT DATA Appraisal Estimate Actual First Mention in Files - 9/1972 Government Application - 4/4/1973 Negotiations - 4/23-5/1/1974 Board Approval - 5/28/1974 Loan Agreement - 5/29/1974 Effectiveness - 9/24/1974 Closing Date 6/30/1979 6/30/1980 Borrower Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE) Executing Agency SONEDE Fiscal Year of BorrowE,r January 1 - December 31 Follow-on Project Name Fourth Water Supply Project Loan Number 1445-TUN Amount US$21.0 million Loan Agreement July 5, 1977 /a Actual project costs are not comparable with appraisal estimate since the scope increased substantially. Cost overrun is mostly attributable to the increased scope (PCR para. 3.09). /b Loan amount increased during negotiations. /c The main elements of the water production facilities were completed in June 1979 (PPAM para. 3 and PCR para. 3.02). /d The PCR estimate is 5%. The IFRR is not strictly comparable with the appraisal estimate since the project was increased in scope (PPAM paras. 12-13 and PCR para. 6.03).  - iii - MISSION DATA Month/ No. of No. of Staff Date of Year Days Persons days Report Pre-appraisal 09/73 9 2 18 10/10/73 Appraisal 11/73 20 3 60 05/06/74 Total 29 78 Supervision I 09/74 n.a. 2 n.a. 10/24/74 Supervision II 06/75 14 2 28 06/25/75 Supervision III 04/76 6 1 6 04/23/76 Supervision IV 10/77 4 2 8 10/28/77 Supervision V 11/78 5 2 10 11/29/78 Supervision VI 08/79 6 2 12 08/28/79 Supervision VII 02/80 14 2 28 03/14/80 Completion/a 03/81 10 4 40 06/23/81 Total 53 126 COUNTRY EXCHANGE RATES Currency Dinar (D) Appraisal Year Average (1974) US$ 1.00 = D 0.435 Average Over Project Period US$ 1.00 = D 0.417 Completion Year Average (1980) US$ 1.00 = D 0.405 ACRONYMS SONEDE Societe Nationale d'Exploitation et de Distribution des Eaux RDE Regie de Distribution des Eaux SIDA Swedish International Development Authority /a Including supervision of on-going projects.  - iv - PROJECT PERFORMANCE AUDIT REPORT TUNISIA: THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) HIGHLIGHTS The project, which formed part of the 1973-76 National Water Supply Program of Tunisia, met its principal physical objective of increasing and improving water supply service in the Sfax area, where the number of connnec- tions more than doubled and the percentage of the population connected to the public water supply system increased from 37% to 71% (PPAM para. 4 and PCR para. 7.01). Although works in only 23 rural centers were financed under the loan, compared with 62 envisaged at appraisal, it is understood that works in the remaining centers have been or are being financed by SONEDE or as part of a follow-on project (PPAM paras. 4 and 10, and PCR para. 3.06). However, a salinity study was not implemented under this project (PPAM paras. 14-15 and PCR para. 3.06). The principal institutional and financial objectives were also achieved, although SONEDE's difficulties in collecting revenues from munici- palities and in reducing its unaccounted-for water are still matters for concern. The Bank continues to address both issues in its subsequent lending operations (PPAM para. 16). After Board approval of the loan, a major revision of the project was necessary to take into account the findings of additional pumping tests, which showed that the capacity of the aquifer supplying the Sfax system was much greater than anticipated at appraisal. The audit concludes that, as under current Bank practice, more detailed engineering should have been carried out prior to Board presentation of the project (PPAM para. 11). However, the increased scope of this project component means that the demand for water in the Sfax area can be met for a longer period than envisaged at appraisal (PPAM para. 4 and PCR para. 3.05).  - 1 - PROJECT PERFORMANCE AUDIT MEMORANDUM TUNISIA: THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) I. PROJECT SUMMARY 1. The Bank has extended four loans and one credit to Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE), an autonomous national water authority established in July 1968, as one of the conditions of the first loan. These lending operations have contributed a total of US$94.5 million to the financing of five water supply projects. The first two proj- ects were the subject of an earlier Project Performance Audit Report1/. The third project, supported by Loan 989-TUN, is the subject of the present audit. 2. The main components of the Third Water Supply Project were: source, transmission and distribution works to increase and improve the supply of water to Sfax and its neighboring municipalities; routine extensions to other distribution networks included in the ongoing national program; and source and distribution works to supply water to 62 rural centers with popula- tions exceeding 500. A minor portion of the loan was also allocated to a study of the economic zost of distributing potable waters which contain different levels of salinity (PCR para. 2.04). The project was estimated to be completed in September, 1978 at a cost of about US$42.6 million, and formed an important part of the 1973-76 National Water Supply Program (PCR para. 1.03 and 3.09). 3. In September, 1.974, the project was revised to take into account the findings of additional pumping tests which were carried out after appraisal and which showed that the capacity of the aquifer supplying the Sfax system was much larger than anticipated (PPAM paras. 9 and 11, and PCR para. 3.05). Implementation of the Sfax component of the project was consequently delayed and eventually completed in June 1980, although the main elements of the water production facilities were installed by June 1979. The salinity study was not implemented under this project (PPAM paras. 12-13 and PCR para. 3.06) and the rural component of the project was reduced in scope (PPAM para. 10 and PCR para. 3.06). The actual cost of the project was about US$67.3 million, i.e., 58% greater than envisaged at appraisal (PCR para. 3.09 and Annex 5), although, due to the revision of the project and its increase in scope, the two costs are not comparable. 1/ "Tunisia - First and Second Water Supply Projects (Loan 581-TUN and Credit 209-TUN), Report No. 1902, dated February 13, 1978. - 2 - 4. The project met its principal physical objective of increasing and improving water supply service in the Sfax area. In fact, as implemented, the project is expected to meet the demand for water in the Sfax area until 1990, a much longer period than envisaged at appraisal. The number of connec- tions more than doubled between 1974 and 1980 while, according to the PCR, the percentage of the population connected to the water supply system increased from 37% to 71%.1/, a substantial achievement (PCR para. 7.01 and Annex 6). SONEDE has, therefore, succeeded in improving the overall level of service in the Sfax area and in particular has extended the distribution system into lower-income districts. While works in only 23 of 62 rural centers were financed under the loan, it is understood that the remaining centers have been or are being financed from SONEDE's own resources or as part of the Fifth Water Supply Project (Loan 1702-TUN), which was approved in May 1979. Although the salinity study was not implemented under this project, economic and technical studies of desalination and blending of waters have been under- taken under the Fourth and Fifth Water Supply projects (PPAM paras. 14-15). 5. The principal financial and institutional objectives of the project were also achieved. The First and Second Water Supply Projects were instru- mental in establishing SONEDE as a strong institution; the Third Water Supply Project aimed at consolidating and continuing this institutional development, particularly with regard to SONEDE's project management capability, which had remained comparatively weak (PCR para. 7.02). SONEDE has managed its opera- tions well and is now able to appraise and supervise its own projects. Its personnel policies, covering salaries and other benefits, recruitment and training appear to be appropriate. Staff shortages at the technical level have been reduced as has overstaffing in certain categories (PCR paras. 5.03-5.05). Financial performance over the project period was satisfactory and the covenanted rates of return were achieved (PCR paras. 4.01-4.04). 6. While SONEDE has generally performed well in institutional and financial matters, two persistent problems remain. Firstly, although unac- counted-for water in the Sfax area decreased from 37% of production in 1974 to 25% in 1980, as anticipated at appraisal, the level of unaccounted-for water for SONEDE's overall operations has remained consistently at around 32% over the project period (PCR Annex 7). While about one-fourth of the unaccounted- for water is estimated to be due to leaks in the network, statistics on volumes of water production and sales are believed to be inaccurate because of faulty meters. A subsequent Bank loan to SONEDE is financing the supply and installation of meters to replace those which are defective. Furthermore, SONEDE is currently carrying out a leak detection program to keep losses to the lowest possible level. Secondly, SONEDE continues to face difficulty in collecting revenues for services rendered to municipalities, despite the inclusion of covenants in this and other loans requiring the Government to take appropriate action (PPAM para. 16)Z/. 1/ The appraisal report envisaged a coverage of 78% by 1986. 2/ The problem of high accounts receivable was also underlined in the Project Performance Audit Report for the first two projects. - 3 - 7. Although SONEDE's overall water sales exceeded the appraisal fore- casts by 2% over the period 1974-80, actual sales in the Sfax area fell short of appraisal projections by about 18% (PCR para. 3.10). In part, this may have been due to a decline in consumption per connection, which was apparently caused by increases in the water tariff in 1974 and 1979 and by the rapid extension of the distribution system into lower-income areas. Lower-than- expected sales in the Sfax area combined with higher investment costs caused the recalculated incremental financial rate of return to fall to about 4% compared to 8.8% estimated at appraisal, although the two rates of return are not strictly comparable (PPAM paras. 12-13 and PCR para. 6.03). 8. Bank supervision of the project was adequate in view of the compara- tively good institutional capability of the Borrower. However, in retrospect, the timing for the appraisal may have been premature. If the Bank's appraisal of the Sfax component of the project had been deferred until the consultants' feasibility study was finalized, the design and cost of the project could have been established more soundly prior to Bank approval of the loan. II. MAIN ISSUES Project Preparation and Changes in Project Scope 9. The appraisal of the major component of this project--the work at Sfax--was based on a preliminary feasibility report prepared by engineer- ing consultants and financed under the Second Water Supply Project (Credit 209-TUN). At the time the project was appraised, in November 1973, the aquifer supplying the Sfax system was found to be of limited capacity. Hence, the supply works were designed to meet the peak summer demand until about 1980 only. Between the time when the loan was approved (May 1974) and the date when the feasibility report was finalized (September 1974), pumping tests revealed a much larger potential capacity of the aquifer than expected at appraisal. Additional technical alternatives were then studied and the least cost solution was chosen. Consequently, the project was modified in scope and larger pipe diameters and pumping units were installed (PCR para. 3.05). 10. The rural component of the project was also modified after loan approval. At appraisal, about US$1 million of the Bank loan was allocated to finance part of the foreign exchange cost of supplying water to about 62 rural centers by developing local sources or connecting the centers to main supply lines located nearby. This component of the project was based on a nationwide survey which had identified 282 rural communities (with populations exceeding 500) without public water supply. By mid-1975, more detailed studies of the 1/ The problem of high accounts receivable was also underlined in the Project Performance Audit Report for the first two projects. rural centers revealed that the works needed to complete the program would be much more extensive than had been indicated by the preliminary studies which were available at appraisal. For this reason, it was decided that only part of the program (covering about 23 centers) would be implemented under the Third Water Supply project. 11. The PCR's conclusion that the appraisal of the Third Water Supply Project was based upon feasibility studies which were later found to be weak and incomplete (PCR para. 7.03) presumably reflects the fact that these studies were preliminary and contained only provisional data and leads the audit to conclude that appraisal of the project should have been delayed, at least until the consultants' feasibility report for the Sfax component had been finalized. The major revision of the design and the cost of the project which became necessary after Board approval could thereby have been avoided. Under current Bank procedures, substantial completion of detailed engineering would be required prior to Board presentation of the project. Incremental Financial Rate of Return (IFRR) 12. At appraisal, an incremental financial rate of return (IFRR) was calculated for the Sfax component of the project, which represented the major part of estimated total project costs (78%), and the investments in the rural centers; no IFRR was calculated on the network extensions which were part of the ongoing national program of expansion of distribution networks, since the benefits could not be separated from the benefits attributable to other investments in the national program. The IFRR on the Sfax and rural compo- nents combined was estimated at 8.8%. The PCR has re-estimated an IFRR on project completion for the Sfax component alone, accounting for 74% of actual total project costs; the re-estimated IFRR was found to be 5% (PCR para. 6.03). However, in the re-estimate, all capital costs for the period 1974- 1978 have been allocated to the year 1979; if these costs are distributed according to the actual time pattern of expenditures, the re-estimated IFRR would fall to 4%. 13. Comparison between the appraisal estimate of the IFRR and the PCR's re-estimate is made difficult by the fact that no details of the former were included in the Appraisal Report, there was a large increase in the scope of the Sfax component and the PCR re-estimate does not include the rural centers. Nevertheless, it would appear that the lower-than-expected IFRR is due to a lower growth in water sales in the Sfax area (PPAM para. 7 and PCR Annex 6) combined with higher investment costs. Although this shift in the relationship between sales and investment raises the question as to whether or not the investments in transmission and distribution might have been imple- mented in stages, the apparent excess capacity in the earlier years of project operation is probably justified b the fact that there are distinct economies of scale in these project items.l7 1/ During the course of the country visit by OED, SONEDE expressed the view that staging the works would not have been economic since the period for reaching full capacity was too short. -5- Salinity Study 14. The main population centers in Tunisia are on the coast, whereas the main sources of fresh water are located at a considerable distance inland. In consequence, the cost of supply is relatively high. Furthermore, the quality of the water is often reduced by salinity which makes it unfit for consumption. 15. At the time of appraisal, known water resources appeared to be ade- quate to meet the needs of the central and southern parts of the country up to 1980 and the northern part until 1990 and even then only by utilizing water of salinity levels higher than those generally considered desirable. For this reason, funds were provided in the loan to finance a study to compare the economic cost of using water of various degrees of salinity with the cost of alternative solutions--for example, dual distribution systems or treatment (including the blending of waters of different salinity) to arrive at a supply of water of acceptable quality to be distributed through a single network. As SONEDE doubted the immediate need for such a general study, particularly since a greater volume of water supplying the Sfax system was discovered shortly after appraisal of the Third Project (PPAM para. 9) and since by then studies on the cost of distillation and desalination were already under-way for the southern region of Tunisia, the Bank agreed in 1975 to delay the study on the economic effects of distributing salty waters. In the event, the salinity study was not carried out under the Third Project because, according to the PCR (para. 3.06), "other similar studies executed in other parts of the world and completed subsequent to the appraisal concluded that the use of a dual network to distribute waters of cifferent quality was not economical or even feasi- ble." However, the alternative of blending of waters of different quality to reduce salinity is being implemented under the Sidi Salem Multipurpose Project and the Fourth Water Supply Project; a desalination plant is being financed under the Fifth Water Supply Project. Furthermore, the Region has pointed out that additional economic and technical studies of desalination and blend- ing have been undertaken under the Fourth and Fifth Water Supply projects. Accounts Receivable 16. In the area of finance, the only major problem SONEDE has been facing is that of slow payment of water charges; the municipalities are the largest defaulters. Loan 989-TUN included a covenant whereby the Government was to take all necessary steps to enable the Borrower to receive full payment for services rendered within 120 days of billing. Under the Fourth and Fifth Water Supply Projects, the covenant has been changed from full payment within 120 days to within "a reasonable time period" after billing. However, in connection with the Fourth Water Supply Project (Loan 1445-TUN), made in 1977, the Government agreed that budgetary advances of 80% of the forecast annual water consumption of the municipalities would be made available to SONEDE during the earlier part of the year, with the balance settled when actual consumption was known. This agreement had previously been made with regard to payments for services rendered to Government agencies and had proven to - 6 - be successful and feasible. By the end of 1980, accounts receivable from Government agencies amounted to about 40 days of billings, while those for municipalities represented about seven months' billings. Although many municipalities are paying their bills within a reasonable time, some still have difficulties in reducing their arrears, which distorts SONEDE's average accounts receivable position. SONEDE believes that about 200 days of arrears will be the norm for the near future. The problem does not lend itself to an easy resolution. The Bank is continuing to address the problem in connection with subsequent loans. III. CONCLUSIONS 17. The revised project has made a major contribution to increasing the service level in the Sfax area. Water connections more than doubled between 1974 and 1980, and 71% of the population of Sfax is now connected to the public water supply network as compared to 37% in 1974. In as far as the appraisal was based on preliminary studies, the project was appraised prematurely. Detailed engineering design is now one of the Bank's require- ments for appraisal. Water supply was not extended to as many rural centers as envisaged at appraisal, although the Bank is continuing to finance rural development under a fifth lending operation to SONEDE. During the Bank's involvement in the water sector of Tunisia, SONEDE has developed into a mature institution and manages its operations well. The difficulties in collecting revenues for services rendered and the high level of unaccounted-for water remain matters of major concern. 7 APPENDIX 1 PROJECT PERFORMANCE AUDIT REPORT TUNISIA: THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) TELEX FROM THE GOVERNMENT 24 142' ''ORLDSANK" 242423 '!0RLDBANK "INFIN 137?2 TN "INFIN LE 1? MARS 1992 MONSIEUR SHIV S. KAPUP 7 DIRECTEUR DEPARTEMENT DE L'EVALUATION RETROSPECTIVE DES OPERATIONS IBANOUE MON2IALE W uI NiTON U.S.A. SIITE VOTPE LETTRE 911 11 JANVIER 1"A? RELATIVE RAPPOPT D'EVALHATION RETROSPECTI%E DU TROISIEME rROJET D'ADDUCTION D'EAU ( PRET c19 TUN ), WONNEUP OIIS INFOR'IER IJE CE RAPPORT N'APPELLE AUCUNE OBSERVATION DE MA PART. SALUTATIONS DISTINGUEES. LE DIRECTEUR GENERAL DES PROJETS MOHAMED ALI SOIJISSI. tINISTEPE DU PLAN ET DES FI'vGES T 'JM NI - T UN I S I TRANSLATION RE YOUR LETTER OF JAN. 11, 1982 CONCERNING PROJECT PERFORMANCE AUDIT REPORT ON THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) PLEASED TO LET YOU KNOW THAT I HAVE NO COMMENTS. REGARDS. L+++++, ?49427 '1OPLDPANk - 8 - APPENDIX 2 PROJECT COMPLETION REPORT TUNISIA: THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) TELEX FROM THE BORROWER L7- T - :rJET DtJCTC> j L. .: j ; Ty 4 ))* )CVLT 0 L~2J LL P.J5T T I C ULLI,-:OR fIAR 0 2 IMS 0176 TRANSLATION RE: PROJECT PERFORMANCE AUDIT REPORT ON TUNISIA THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) PLEASED TO LET YOU KNOW THAT WE HAVE NO COMMENTS ON THE PROJECT PERFORMANCE AUDIT REPORT YOU SENT US. - 9 - PROJECT COMPLETION REPORT TUNISIA THIRD WATER SUPPLY PROJECT (LOAN 989-TUN) I. INTRODUCTION 1.01 In 1967, the Government of Tunisia requested from the Bank and the Government of Sweden assistance in financing various water supply works. A Bank Loan (581-TUN) of US$15.0 million was signed in 1969 together with a Swedish Credit of US$5.0 million to finance water supply works in the regions of Tunis and Sousse, which were implemented by "Sociftd Nationale d'Exploitation et de Distribution des Eaux" (SONEDE), the national water authority. In 1970, a Credit (209-TUN) was signed by the International Development Association for US$10.5 million together with a Swedish Credit of US$3.5 million for a second water supply project designed to meet water supply requirements in eight areas of the country. Funds were provided under the preparation of a water supply project in Sfax, which was the major component of the Third Water Supply Project. 1.02 In Sfax, the second largest city, in the years preceding the completion of the Third Project, water was scarce and existing resources were sufficient to meet demand only through 1969. Rapid urban development outstripped construction of water supply and distribution systems, which were undersized and needed rehabilitation, resulting in consumers receiving water service which was unreliable in quality and quantity and suffered from pressure losses and possible contamination by sewage. In 1973, the year the project was appraised, only one-third of the Sfax population was connected to the distribution system. Two large villages within a 45-km radius of Sfax, Agreb and Mabres, had limited water distribution systems. 1.03 The Third Water Supply Project (loan 989-TUN) approved in May 1974 was part of SONEDE's 1973-1976 Development Plan which foresaw, inter alia, a program of improved water supply and distribution facilities for Sfax, as well as extensions to the existing distribution systems and water supply to all settlements with more than 500 inhabitants. Project Area 1.04 The major components of the project provided for the supply of water to the city of Sfax (Map 3), located on the east coast of Tunisia and to the smaller centers of Agareb, Mahres and Menzel Chaker (Map 1). The rural centers included in the project are located throughout Tunisia (Map 2) and the extensions financed by the loan were part of SONEDE's ongoing national program of expansion of the distribution networks. Organization of the Borrower 1.05 Responsibility for the provision of water supply in Tunisia rests with the "Societe Nationale d'Exploitation et de Distribution des Eaux" (SONEDE). This national water supply authority is owned by the Government, and is responsible to the Ministry of Agriculture, but has the status of an autonomous public enterprise. Annex 1 shows the organizational structure of SONEDE. The Board of Directors comprises nine public officials and - 10 - three non-public officials. Day-to-day management is delegated to a General Manager, with subordinate managers for Finance and Administration, Engineering Studies, New Works, and Operations. At the time of Appraisal in May 1974, SONEDE had 2,100 staff; as of December 1980, there were 3,607 staff (Annex 2). II. PROJECT PREPARATION AND APPRAISAL Origin, Preparation and Appraisal 2.01 In September 1972, discussions were held with a Tunisian delegation then visiting the Bank regarding project for FY1974, which included the development of water supply ari distributLon works in Sfax, and nearby villages. Bank staff subsequencly visited Tunisia in December 1972 and July 1973. In September 1973 a Bank mission reviewed the feasibility study prepared by SONEDE for the project and considered the project ready for appraisal. The Bank initiated the appraisal in November 1973, noting that certain actions needed to be taken by the Tunisians, prior to negotaitions. The key issues were: the question of future water resources for Sfax and a required tariff increase to comply with the existing rate-of-return covenant. By later December 1973, the issue of resources was considered resolved. However, following appraisal, the project design was modified in September 1974 to take into account greater available resources than those projected in the feasibility report. In April 1974, a tariff study was completed by consultants, and the Bank accepted the tariff option selected by the Government and SONEDE. The implementation of an increase in the average tariff from D 0.061/m3 to D 0.084/m3 became a condition of effectiveness of the loan. This condition was met by SONEDE in September 1974. Negotiations and Approval 2.02 In April 1974, the Bank invited the Government and SONEDE to negotiate a US$22.3 million loan for the project. Negotiations were held from April 23 through May 1, 1974, in the course of which the loan amount was increased to US$23.0 million. The loan was approved on May 28, 1974 and became effective on September 24, 1974. Major Objectives of the Project 2.03 Water resources in Tunisia are limited, particularly in the central and southern parts of the country. In addition, the quality of the waters in these parts is marginally acceptable for human consumption. In Sfax, located in the central part of Tunisia, water had been scarce for many years and the then existing sources insufficient to meet the demand. The project provided for more water supply to Sfax, so that suppressed and future demand could be met and the development of the city could proceed - 11 - more rationally. The project also included a national program of network extensions and house connections to increase by about 60% the number of customers by 1980. Project Description 2.04 The project consisted of a number of sub-projects to improve water supply in Sfax, and its neighboring municipalities, as well as works which formed part of a program of network extensions in urban and rural centers. A detailed project description is given in Annex 3. A summary follows: (i) drilling of wells 165 km inland from Sfax, construction of a well-field collection system and transmission reservoirs, a pipeline to Sfax, distribution reservoirs adjacent to the city; (ii) expansion and renewal of parts of the existing distribution system in Sfax, which were in extremely poor condition; (iii) supply mains and distribution system improvements in the adjacent towns of Agareb, Mahres and Menzel Chaker; (iv) a package of routine extensions of distribution networks (including meters) which formed part of the ongoing national program; (v) a program to bring water to approximately 93,000 dwellers in small rural communities not then supplied; and (vi) a study of the economic cost of distributing potable water which contains different levels of salinity. Loan Covenants 2.05 The Loan Agreement contained the following main covenants: (a) The Borrower shall, as a condition of loan effectiveness, increase its tariffs at levels which will produce an average rate of not less than D 0.084/m,3 of water delivered to consumers. (b) Annual return on the Borrower's net fixed assets in operation shall be at a rate of not less than 5% in the years 1974 and 1975 and not less than 6% in each successive year. (c) The Borrower shall maintain records adequate to reflect, in accordance with consistently accepted accounting practices, its operation and financial conditions. - 12 - (d) The Borrower shall have its accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accord with sound auditing principles consistently applied by independent auditors acceptable to the Bank, and shall submit the audited statements to the Bank along with the auditors' report no later than six months after the end of such year. In May 1977, as part of the Fourth Water Supply Project (Loan 1445-TUN), the loan covenant noted in para. 2.05 (b) was changed to increase the rate of return to 7.5% for year 1978 and each year thereafter. III. PROJECT IMPLEMENTATION, COST AND OPERATION Effectiveness and Start-Up 3.01 The condition of effectiveness related to the implementation of increased tariffs was fulfilled in September 1974 and the loan became effective within the original period specified in the loan agreement. Implementation Schedule 3.02 The Loan Agreement provided that the Project works would be completed by September 30, 1978. The closing date for the loan was June 30, 1979. The main elements of the water production facilities were completed in June 1979, some 15 months behind the appraisal schedule, due to delays in the final design of the project and the transmision pipeline installation. In April 1979, the original closing date was extended to June 30, 1980. Procurement 3.03 All goods and services (other than the services of consultants) required for the project were procured on the basis of international competitive bidding in accordance with the Bank Guidelines for procurement, and the provisions set forth in Schedule 4 (Procurement) of the Loan Agreement. The Borrower found no difficulty in complying with these guidelines and procurement was accomplished in a satisfactory manner. In general, SONEDE obtained bids compatible with their consultants' estimates. With the exception of the locally manufactured concrete and asbestos-cement pipes, all equipment contracts were awarded to foreign manufacturers. All but one of the civil works contracts went to local contractors. Disbursement of Loan Funds 3.04 A comparison of actual with projected disbursements is presented in Annex 4. On June 30, 1979 when the Loan was expected to be fully disbursed, actual disbursements reached 90% of the total loan amount. - 13 - Revision - Project Design 3.05 The project was revised in September 1974; this had a major impact on the final costs. At first it was anticipated that the capacity of the aquifer, which would be used to supply the project area, would be so limited that the original scope of the project would only meet the peak summer demand until about 1980, a relatively short design period. However, after pumping tests revealed a much larger potential capacity of the aquifer, the project design was modified to take advantage of the volumes of water available, which are now considered capable of meeting the demand up to the year 1990. Consequently, a larger pipe diameter and bigger pump units were selected for the project. 3.06 The Sfax portion of the project was completed as per the revised design, except that some minor elements were modified as a result of the increased work program. Three other changes took place with Bank concurrence during project implementation. First, further detailed studies of the water supply situation in Menzel Chaker showed that no immediate improvements in the water supply system were required. Second, the salinity study was not carried out because other similar studies executed in other parts of the world and completed subsequent to the appraisal concluded that the use of a dual network to distribute waters of different quality was not economical cr even feasible. Third, because of severe inflation in the construction industry, SONEDE decided to use the proceeds of the Bank loan to cover the foreign exchange costs of the Sfax program and to resort to its own funds to finance the works in the rural centers. Consequently, works in only 23 of the originally planned 62 rural centers were financed with proceeds from the Bank loan, although SONEDE carried out works in all the centers. 3.07 Construction on the project was of good quality. Data with respect to acceptance of work performance, quality and quantity were reviewed with SONEDE which stated that final designs were appropriate and that the project facilities achieved their objective in all respects. Withdrawal of Proceeds of the Loan 3.08 Schedule 1 of the Loan Agreement was revised in June 1977 as noted below: Loan Agreement Revised Actual ----------US$ Million--------- Category I - Equipment & Materials 11.89 19.20 18.80 Category II - Civil Works 2.05 2.20 3.80 Category III - Consultants Services 0.87 1.00 0.40 Category IV - Unallocated 8.19 0.60 - 23.00 23.00 23.00 - 14 - Project Costs 3.09 The total project costs are summarized below: Local Foreign Total Local Foreign Total ------- D Million----- ----- US Million----- Appraisal Estimate 8.01 10.52 18.53 18.43 24.19 42.62 Actual 15.88 23.40 29.28 36.51 30.80 67.31 Increase 7.87 2.88 10.75 18.08 6.61 24.69 As noted in para 3.05, the project design was revised and as a result of the revision, the water production facilities as built are much larger than those of the Appraisal Report. Therefore, the cost estimates of the Appraisal Report and the actual costs cannot be compared. The resulting cost increase of US$24.69 million or about 58% of the original estimate can be mostly attributed to the changes in project design, which resulted in the installation of a larger pipeline, bigger reservoirs and pump units. Actual foreign exchange costs increased by 27% over the appraisal estimates; the increase of US$6.61 million was financed by the Government. A comparison of the Appraisal cost estimate and actual costs is shown in Annex 5. Operations 3.10 A comparison of projected and actual water sales in the project area is shown in Annex 6. The projected volumes of water sold in the project area were over-estimated by about 15% over the eriod 1974-1980. Volumes of 12.8 Mm3 were forecast for 1980, but 10.5 Mm were actually sold in that year, or about 18% below the forecast. However, SONEDE's overall water sales in the country exceeded the appraisal estimates by about 2%. At the time of appraisal, unaccounted-for water in the project area was about 37% and the objective was to reduce it to 25% by 1980. This objective has been reached and unaccounted-for water today accounts for less than 25% of the volume of water produced. 3.11 There were no operating performance covenants, which was appropriate given the straightforward nature of the work and the capabilities of the Borrower and local contractors. IV. FINANCIAL PERFORMANCE General 4.01 The appraisal forecast and actual consolidated Income Statements, Balance Sheets and Cash Flows of SONEDE in the years 1973 through 1980 are compared in Annex 7. Also a comparison of key indicators of SONEDE's financial performance is shown in Annex 8. In general, it can be said that - 15 - the financial performance o1C SONEDE was satisfactory. The covenanted rates of return and specified operating ratios were achieved throughout the period of project implementation. Consolidated Results 4.02 Selected financial data for SONEDE in 1979 together with appraisal projections are given below; Appraisal Actual % Increase/Decrease ----------------D Million--------------- Revenues 14.23 22.80 +60 Operating Expenses 6.66 9.23 +39 Depreciation 2.62 5.05 +93 Operating Income/(Loss) 4.95 8.52 +72 Interest 1.76 2.60 +48 Net Income/(Loss) 3.19 5.92 +86 A major factor in the successful financial performance of SONEDE is the total volumes of water produced and sold which have remained above the appraisal estimates. In addition, the average tariff was increased by 41% at the end of 1978 and consequently was higher than forecast in 1979 and 1980. Part of the higher revenues was offset by higher operating expenses, primarily payroll and materials. But all in all, the final results were better than expected. Financing Plan 4.03 SONEDE's overall actual financing plan during the project construction period as compared with the appraisal estimates is shown in Annex 9. Total requirements more than tripled mostly due to a considerable increase in the works carried out, including the project. Higher inflation than expected also contributed to this increase. Local inflation averaged 7.5% over the project implementation period vs. the appraisal estimate of 5%. Foreign inflation averaged 11.3% vs. the appraisal estimate of 8.9%. The higher investment requirements were met by a substantial increase of customers' contributions and Government equity contribution, which together provided more funds than originally foreseen in both absolute and relative terms. In particular, customers' contributions rose from a forecast of 11% of total requirements to an actual of 25%. Although the amount of borrowings increased by 58%, their relative share in financing was reduced from 29% to 14%. This is also reflected in the debt/equity ratio which never exceeded 31:60, instead of a forecast maximum of 36:64 (see Annex 8). Audit 4.04 Audits were performed by a qualified Tunisian firm. In 1978, SONEDE received from the Gbvernment title to the assets received upon its creation in 1968, and the auditors' only qualification of the financial - 16 - statements, in relation to the value of those assets, was removed. Audit reports were submitted to the Bank on a timely manner in accordance with the covenants. Other reporting documents (quarterly reports) were also submitted regularly and in a timely fashion. V. INSTITUTIONAL PERFORMANCE General 5.01 SONEDE has developed into an efficient and well-managed institution that has exceeded the expectations of its future growth at time of appraisal. External and internal factors contributed to this success. Organization and Management 5.02 Annex 1 shows the organizational structure of SONEDE. A Board of twelve members, chaired by SONEDE's General Manager, supervises the company's activities. Nine Board members are public officials and represent the Government Ministries and other public agencies involved in the water resources sector. The remaining three Board members, though appointed by the Ministry of Agriculture, represent the private sector and SONEDE's customers. The overall control exercised by the Government, beyond the appointment of the Board of Directors, covers other decision processes such as approvals of the company's investment programs, borrowings and tariff levels. Staff Recruitment and Growth 5.03 At the time of appraisal (1974), SONEDE employed 2,100 staff at the professional, technical and workers levels. No significant staffing gaps existed and the only training needed at that time was at the technical level. A salary structure was introduced in 1972 which included an overall benefit package covering health insurance, housing allowance and loans which were instrumental in meeting SONEDE's staff needs. In addition, the quality of the national educational system and SONEDE's reputation for being a rapidly expanding and well managed enterprise greatly facilitated recruitment during the period 1974 through 1980. In order to ensure good quality among professional staff, SONEDE implemented a twelve-month probationary period system during which it evaluates new staff members' performance and determines whether permanent employment should be offered or not. 5.04 In the period 1974 to 1980, SONEDE staff increased from 2,543 to 3,744, for an average annual growth of 6.7%. However, this growth rate was not uniform at all levels: professional staff increased from 69 to 173 at an average annual rate of 16.5%; technical level staff increased from 382 to 1,532 at an average annual rate of 32.6%; while the number of workers decreased slightly. The overstaffing at the workers level and the shortage - 17 - at the technical level, were problems that SONEDE had inherited when it took over RDE staff in 1968. SONEDE has thus done a creditable job of redressing the imbalance in its staff. 5.04 The number of employees per 1,000 connections decreased continuously from 12.4 al: the end of 1974 to 8.5 at the end of 1980. Personnel turnover remained low at a yearly average of less than 1%, with a high of 1.3% in 1975. Training 5.06 SONEDE's training needs over the project implementation period mainly concerned the san:Ltary engineer and technical levels. SONEDE does not have its own training facilities, but meets its training needs with the aid of the "Office de 'emploi et de la formation professionnelle," a Government-operated agency. This agency is partly funded out of a special tax paid by all employers in Tunisia. 5.07 From 1974 to 1980, SONEDE trained 20 staff members as sanitary engineers, 14 of whom were sent to French-speaking European countries. In addition, 25 staff at the technical level participated in a special training program organized by the "Office de 1'emploi et de la formation professionnelle," and about 850 staff participated in various seminars and short-term training programs. VI. PROJECT JUSTIFICATION 6.01 The project was designed in 1973 to provide potable water to the growing population of Sfax, three adjacent villages, and 62 rural centers. About 95% of this objective were covered by Bank financing. If other minor works originally included in the project, but later executed with SONEDE's own funds are taken into account, it can be said that the project has fully met all its objectives. In addition to the benefits realized in Sfax, the main project area, the project has enabled SONEDE to: (i) meet social objectives by supplying water to low income groups in cities and medium-size urban communities; (ii) provide health benefits from a safe and adequate water supply to a greater population; (iii) set up a tariff structure which reflects the marginal cost of water, contains an element of income redistribution and penalizes excessive consumption; and (iv) extend the distribution networks to allow low-income consumers living in the outskirts of the cities to connect their dwellings to the water supply systems. - 18 - Internal Rate of Return 6.02 A uniform tariff structure is applied all over Tunisia and the average rate itself is based on the medium-term marginal cost of providing water to urban and rural agglomerations. Such a tariff system allows a certain redistribution of income, particularly from the main urban agglomeration, Greater Tunis, where almost one-fifth of the total population lives, to smaller urban centers and rural areas. The costs are discounted at an average rate of 9%, which is a good return on water supply investments. Because of the existence of uniform tariffs, a rate of return calculated on the Sfax project, isolated from the remaining investment program in the sector, is not meaningful from an economic point of view. 6.03 However, in order to determine how the Sfax project stood in the overall sector program and to make a comparison between the executed scheme and the appraisal one, the internal rate of return on the investments was calculated. On the basis of actual costs and revenues through 1980 and projected costs and revenues through the year 2028, the internal rate of return was found to be about 5%. Detailed calculation of the rate of return is given in Annex 10. The expost calculation of the return on the project investments as proposed in the Appraisal Report was found to be about 4%. This demonstrates that the revised project as implemented was a better alternative than the proposed design in the Appraisal Report, as the former provided a 25% higher return on investment. Bank Performance 6.04 At the time of the project appraisal, SONEDE was considered a well managed utility which needed minor institutional changes. The First and Second Water Supply Projects were instrumental in establishing SONEDE as a strong institution. However, in spite of these two projects, SONEDE's capability for project implementation had remained weak. One of the achievements of the Third Project was to help improve SONEDE's project management capability. 6.05 The project was regularly supervised. From the time of Loan effectiveness in September 1974 until the completion of the Project in 1980, there were a total of eight supervision missions. It should be noted that visits to SONEDE included supervision missions for Water Supply I and II though 1977, and then included Water Supply IV and V. Visits to the Third Water Supply Project Area (Sfax) were made on four of the eight missions. The visits were followed by mission reports highlighting issues in project execution noted during the mission and by letters to SONEDE's management urging that corrective actions be initiated where required. The Bank's advice and suasion were instrumental in improving SONEDE's operations and management. Borrower's Opinion 6.06 The Borrower is pleased with the results of the project and with the Bank's performance during project supervision. - 19 - Consultants' Performance 6.07 Detailed design and bidding documents for the project were prepared by consultants who also participated in the evaluation of bids and undertook various construction supervision assignments at the specific request of SONEDE. The 3taff of SONEDE who worked with the consultants found their work very satisfactory. VlI. CONCLUSIONS AND LESSONS LEARNED 7.01 The overall project implementation was successful and has met the main objective which was to provide Sfax City with an increased water supply of better quality,. Project costs in real terms were reasonable although above appraisal estimates. At the present time, almost 71% of the population of Sfax is connected to the public water supply network, as compared to 37% in 1974, the year the project implementation started. The revision of project design improved the return on the investments. Small delays in final design and construction did not affect project benefits and most project objectives were achieved. 7.02 An institutional objective of the project was to improve SONEDE's project implementation capability. This objective has also been achieved. The construction supervision of the project was carried out efficiently by SONEDE's staff. The project was completed with a relatively small delay which was due in part to temporary unavailability of construction materials (such as cement, reinforcing steel bars, etc.) and equipment (such as concrete pipes). The quality of the project construction was good. 7.03 One lesson which may be drawn from this project concerns the degree of project preparation required for appraisal. The Third Water Supply Project was appraised on the basis of feasibility studies which were later found to be weak and incomplete. Consequently, the project design as well as the appraisal cost estimates had to be revised. Detailed engineering design is now required for appraisal. June 23, 1981 TUNISIA TIIIRD WATER SUPPLY PROJECT LOAN (989-TUN) SONEDE - Organlzational Chart Nt ~ ~ ~ ~ ~ GNA A O NI,CH i L, ilT Uoil s CE p cl~UN GANOLZACTIN AI7 NIANdkAl LEG.ALSR( C.S ,, i NgN. tAEPIUhs &3 CO~ STPTIST4AS ISTONALTIO CONThutiG1 ý $0.T.4 D4RCIP IAlt"UROY PAfOCU#4£h4ENT PIROCUAkM(NT A 09EHAQA00 P G C Oth PAGRAwas$F#AOC&NG bI$TIIIUsIO.4 flU'.IGIN MiAL npodVRA v T DAT SDhCT.TAlTACT E CTCT04N5 iN S OT4ONS 16T PHOCA&MNT DkThCT D6TACTx sacToNsii stTioN iaI-' - 21 - ANNEX 2 TUNISIA THIRD WATER SUPPLY PROJECT LOAN (989-TUN) PROJECT COMPLETION REPORT Personnel Data Number of Staff per Category 1974 1975 1976 1977 1978 1979 1980 Management 69 81 92 117 134 155 173 Techniciens 382 883 913 1,358 1,372 1,481 1,671 Laborers 2,092 1,806 2,015 1,637 1,717 1,814 1,900 TOTAL 2,543 2,770 3,020 3,161 3,223 3,450 3,744 - 22 - ANNEX 3 Page 1 of 4 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Detailed Project Description 1. Sfax System Headworks - Appraisali In addition to the existing supply from Sbeitla (spring and wells yielding 320 1/sec), a new well field in Djilma will supply 400 1/sec. The new wells will tap the Djilma-Ouled Asken- Hadjeb El Aioun aquifers. These aquifers yield water with an aveage salinity of 1.45 grams/liter. A total of 9 new wells are to be put in operation (2 are newly drilled, while the 7 others previously drilled will be equiped). Collection headworks include: - 42.5 kms of 300 mm pipes - 13.5 kms of 800 mm pipes - I storage tank of 250 m3 - 9 well umps and transfer stations - 1,500 m storage tank Headworks - Revised to: - 36.2 kms of 300 mm pipes - 3.4 kms of 250 mm pipes - 5.2 kms of 200 mm pipes - 13.0 kms of 800 mm pipes - 5,000 m3 storage tank - 9 well pumps and transfer stations 2. Transmission Line - Appraisal The new pipeline runs parallel to the existing line. The new line will includet - 10.9 kms of 1,100 mm pipes - 109.5 kms of 800 mm pipes - 6.0 kms of 600 mm pipes - 6.4 kms of 500 mm pipes - 7.6 kms of 400 mm pipes - 8 pressure breakers - 23 - ANNEX 3 Page 2 of 4 Transmission Line - Revised to. - 65.1 kms of 1,100 mm pipes - 59.0 kms of 800 mkm pipes - 16.9 kms of 600 nu pipes - 1.3 kms of 500 mm pipes - 8 pressure breakers 3. Distribution - Appraisal The distribution system was to improve pressure in the lower network covering the center of the town, including the "Modern Quarter", the "Medina and the "R'bats". It involved recalibration works and pipe replacement, plus a 300 mm pipe to the port for bunkering ships. The higher network covered the industrial and residential suburbs. Quantities: - 2 kms of 800 mm pipes - 7.2 kms of 600 mim pipes - 5.2 kms of 500 mm pipes - 5.2 kms of 400 mim pipes - 4.4 kms of 300 mm pipes - 7.9 kms of 250 mm pipes - 4.6 kms of 200 mim pipes - 0.8 kms of 150 mm pipes - 20.0 kms of 150 mm pipes - 10.9 kms of 80 mm pipes - 3 reservoirs of 5,000 m3 Sfax Distribution - Revised to; - 6.4 kms of 1,250 mm pipes - 15.4 kms of 800 mm pipes - 10.5 kms of 600 mm pipes - 5.2 kms of 500 mm pipes - 5.8 kms of 400 mm pipes - 2.0 kms of 300 mm pipes - 4.0 kms of 250 mm pipes - 7.0 kms of 200 nm pipes - 2.0 kms of 150 mm pipes - 22.0 kms of 100 mm pipes - 14.0 kms of 80 nim pipes - 3 reservoirs of 5,000 m3 4. Adjacent Towns - Appraisal The towns of Agareb and Mahres will be connected to the transmission line. The distribution networks and the network of Menzel Chaker are to be developed. Works include: - 24 - ANNEX 3 Page 3 of 4 - 5.8 kms of 300 mm pipes - 14.5 kms of 250 mm pipes - 23.4 kms of 200 mm pipes - 12.7 kms of 150 mm pipes - 2 reservoirs of 250 m3 - I reservoirs of 1,000 m3 - I pressure breaker Adjacent Towns - Revised to; The distribution network of Menzal Chaker was eliminated from the project. - 34.2 kms of 300 mm pipes - 12.0 kms of 200 mm pipes - 2.2 kms of 150 mm pi es - 2 reservoirs of 250 m - 1 reservoirs of 1,000 m3 5. Extensions Program - Appraisal Material and maintenance equipment including: - 400 kms of 80 mm pipes - 140 kms of 100 mm pipes - 120 kms of 150 mm pipes - 70 kms of 200 mm pipes - 40 kms of 250 mm pipes - 40 kms of 300 mm pipes Extension Program - Revised to. - 405 kms of 80 mm pipes - 143 kms of 100 mm pipes - 122 kms of 150 mm pipes - 66 kms of 200 mm pipes - 43 kms of 250 mm pipes - 45 kms of 300 mm pipes - 2 kms of 350 mm pipes - 2 kms of 400 mm pipes - 5 kms of 450 mm pipes - 10 kms of 500 mm pipes - 2 kms of 800 mm pipes 6. Rural Centers - Appraisal Works in 62 rural centers included; - 33 storage tanks of various sizes (50 to 1,000 m3) - 15 wells drilled and equipped - 2 springs developed - 25 - ANNEX 3 Page 4 of 4 - 111.6 kms of 80 mm pipes - 78.1 kms of 100 mm pipes - 78.5 kms of 150 mm pipes - 14.0 kms of 200 mm pipes - 3.0 kms of 30) mm pipes Rural Centers - Revised to: Works in 23 rural centers includedi - 127 kms of 80 mm pipes - 88 kms of 100 imm pipes - 91 kns of 150 ram pipes - 15 kms of 200 vum pipes - 4 kms of 250 mm pipes - 2 springs developed 7. Salinity Study - Appraisal During the 1980's the quantity of water available will be closely related to the quality, and in particular the salinity of the water resources which are available. It was considered possible that the entire population could be faced with continuous consumption of waters having salinity levels at the maximum of 1.5 grams/liters. WHO set the standard of a maximum of 1.5 grams/liter and the Bank has drawn this matter to the attention of WHO. It is felt that a study relating to the economic cost resulting from the accelerated deterioration of household plumbing systems, and the cost of treating water by industry to make it suitable for industrial use should be made considering alternative solution for various degrees of salinity. The outline of the study to be established by experts in consultation with SONEDE. Salinity Study - Actual Not carried out. - 26 - ANNEX 4 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Disbursement of the Loan Funds (US$ '000) Appraisal Actual Year Annual Cumulative Annual Cumulative 1974 250 250 - - 1975 1,000 1,250 300 300 1976 5,250 6,500 11,600 11,900 1977 8,700 15,200 5,600 17,500 1978 6,000 21,200 2,800 20,300 1979 1,800 23,000 900 21,200 1980 - - 1,800 23,000 - 27 - ANNEX 5 Page 1 of 4 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Detailed Project Costs (Million Dinars) Revised Project Appraisal (1974) Estimate (1977) Sub-Project Local Foreign Total Total Actual Sfax Headworks .59 .63 1.22 1.89 2.26 Sfax Transmission 2.79 3.32 6.11 11.55 13.91 Sfax Distribution .61 .68 1.29 4.77 4.17 Agareb, Mahres and Menzel Chaker .14 .19 .33 .79 .93 Extensions (National Program) .83 .92 1.75 5.0 Rural Centers .59 .67 1.26 1.37 7.69 Construction Sub-Total 5.55 6.41 11.96 25.37 Physical Contingencies .87 .95 1.82 3.80 6.42 7.36 13.78 29.17 28.96 Engineering Salinity Study .20 .10 .30 .30 - Design and Supervision .43 .28 .71 .71 .32 Sub-Total 7.05 7.74 14.79 30.18 29.28 Price Escalation Contingency .96 2.78 3.74 3.02 - Total 8.01 10.52 18.53 33.20 29.28 Average annual inflation rates in %t 1974 1975 1976 1977 1978 1979 1980 Appraisal - Local 5 5 5 5 5 Foreign 14 11 7.5 7.5 7.5 Actual - Local 9.6 5.3 6.7 5.4 7.7 10.1 Foreign 14.4 1.8 8.6 18.3 14.5 12.5 9.0 - 28 - ANNEX 5 Page 2 of 4 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Project Costs I. Imported Equipment & Materials 8,288,485 II. Locally Procured Equipment & Materials 11,963,053 III. Civil Works 7,833,087 IV. Consulting Services 314,949 V. Customs Duties 897,000 Total D 29,278,574 - 29 - ANNEX 5 Page 3 of 4 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Project Costs (TD) Item Local Foreign Total Imported Equipment & Materials 879,000 8,288,485 9,167,485 Local Equipment & Materials 8,972,290 2,990,763 11,963,053 Civil Works - 5,874,815 1,958,272 7,833,087 Consulting Services 154,612 160,337 314,949 Total 15,880,717 13,397,857 29,278,574 % 54.2 45.8 100.0 - 30 - ANNEX 5 Page 4 of 4 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Project Costs (Million Dinars) Local Foreign Total Appraisal Actual Appraisal Actual Appraisal Actual Sub-Project Sfax Headworks .59 .57 .63 1.69 1.22 2.26 Sfax Transmission 2.79 6.05 3.32 7.86 6.11 13.91 Sfax Distribution .61 1.06 .68 3.11 1.29 4.17 Agareb, Mabres .14 .50 .19 .43 .33 .93 Extensions .83 742 .92 1.75 742 Rural Centers .59 .67 1.26 Physical Contingency .87 .95 1.82 Engineering Design/ Supervision .43 .28 .28 .31 .71 .59 Salinity Study .20 .10 .30 Price Escalation 0.96 2.78 3.74 Total 8.01 15.88 10.52 13.40 18.53 29.28 % of Total 43.2 54.2 56.8 45.8 100.0 100.0 - 31 - ANNEX 6 Page 1 of 2 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Water and Sales Production Sfax Area Total Sfax Mahres Ageb Actual Appraisal Connections (Units) '74 17,582 869 11 18,462 N.A. '75 20,358 1,040 11 21,409 '76 23,357 1,202 11 24,570 '77 27,048 1,285 239 28,572 '78 29,434 1,447 261 31,142 '79 31,859 1,596 289 33,744 '80 35,654 1,741 305 37,700 Water Production (1,000 M3) '74 3,640.5 167.3 13.8 8,821.6 N.A. '75 9,031.6 195.7 20.6 9,247.9 '76 9,627.5 204.4 22.8 9,854.7 '77 1L,223.1 216.0 42.6 11,480.3 '78 1L,730.5 255.0 42.6 12,028.1 '79 13,117.3 268.0 54.9 13,440.2 '80 13,721.6 272.0 58.1 14,051.7 Water Sold (1,000 M3 ) '74 5,485.4 98.0 5.2 5,588.6 5,700 '75 6,002.6 140.7 8.8 6,152.1 7,000 '76 6,264.2 143.4 9.0 6,416.6 7,000 '77 7,466.0 155.6 23.7 7,645.3 7,000 '78 7,977.1 183.9 33.4 8,194.3 9,000 '79 8,464.1 193.3 32.4 8,689.8 11,200 '80 10,284.0 195.6 41.0 10,520.6 12,800 - 32 - ANNEX 6 Page 2 of 2 Sfax Mahres Agareb Project Area Appraisal (AcTual) (Actual) (Actual) (Actual) Production/Conn(M3/month) '74 40.95 16.04 104.5 39.82 N.A. '75 36.97 15.68 156.1 35.99 '76 34.35 14.17 172.7 33.42 '77 34.58 14.04 14.16 33.48 '78 33.21 14.68 13.60 32.19 '79 34.31 13.99 15.83 33.19 '80 32.07 13.02 15.87 31.06 Consumption/Conn(M /montb) '74 26.00 9.40 39.39 25.23 N.A. '75 24.57 11.27 66.67 23.95 '76 22.35 9.94 68.18 21.76 '77 23.00 10.09 8.26 22.30 '78 22.58 10.59 10.66 21.93 '79 22.14 10.09 9.34 21.46 '80 24.04 9.36 11.20 23.26 Unaccounted for Water - % '74 36.52 41.42 62.32 36.65 N.A. '75 33.54 28.10 57.28 33.48 '76 34.94 29.84 60.53 34.89 '77 33.48 28.16 41.63 33.41 '78 32.00 27.88 21.60 31.87 '79 35.47 27.87 40.98 35.35 '80 25.05 28.09 29.29 25.13 TLNISIA - TEIMO VATFJÅ SIPPLY PROJrCT (989-TuN) PROICT COMPLETION kIPOMT Cofparison of Apr!a n k lgoeStme~ents 197-2g 1973 1974 1975 1976 1917 1978 1979 19s0 Ytacal Year [.adin8 December 3 p Actal Appröisal Accal Appra14a1 Act..l Appraisal Ac..1 Apprasial Actual Appra18al ACCal Appraiaal Accual Appra1.1 Actua1 3) 8120.4 119.8 126.0 127.2 134.0 136.6 143.0 145.8 151.0 160.6 163.0 171.8 174.0 176.7 181.2 192.84 vatar PTrce4d (milliga * 8 . 0.8 - 0.94 - 0.70 - 0.58 - 0.8 - 0.8 - 0.8 2.8 0.8 vat.r r.rchase4 (hållt0on a) L4.5 1:4CCOndd-Tor vlarar <33 33 32 33 31 33 30 33 30 32 30 31 30 31 30 31.0 w.tcf S*Id (million 83) - 80.7 81.9 85.7 88.4 '92.5 93.5 100.0 97.6 106.0 109.8 114.0 118.6 121.7 120.8 128.8 132.02 Co. of CoLnion, at Year End (Thouand) 178 176 198 206 219 242 239 281 260 315 280 331.16 301 388.5 321 422.8 ölrqy Lae (>illineafao) 61.0 62 69.0 65.6 84.0 84.5 90.0 84.7 94.0 87.8 94.0 85.0 94.0 120.0 94.0 118.0 O..erarine Revenue. lL,1 5-144 s4.92 3.08 5.92 3.80 7.77 7.9 9.00 8.27 9.96 ;.64 10.71 10.03 11.44 14.76 132.10 15.58 e-CZr O CSal&ege 0.84 0.73 0.91 1.59 0.97 2.28 1.02 2.73 1.07 2.82 1.13 3.27 1.18 3.29 1.24 4.09 other C .nneion Charge* 0.67 0.74 0.75 0.85 0.84 0.84 0.91 0.97 1.00 1.16 1.08 1.24 1.16 2.27 1.25 2.61 Ot-errin and Prior Tea' - (.01) - 0.21 - r.47. - 0.50 - 0.72 - 1.33 - 1.81 - 0.96 o cr 0.21 0.28 0.25 0.35 0.33 0.46 0.39 0.54 0.43 0.71 0.46 0.79 0.49 1.04 G.52 1.14 1, sr Sale* EPrv0.20 - 0.22 - 0.09 _-_ 0.0 0.01 0.30 0.03 nii .L1 L2 . ni gL LjSS Bad UbKa. Prov14194 - - - - -0-.O i Total Revanu44 6.64 6.62 7.83 8.58 9.91 11.86 11.32 12.61 12.45 14.76 13.35 16.27 14.23 22.80 15.08 24.08 Operating Fgeel 2.09 2.22 2.25 2.77 2.38 3.20 2.52 3.87 2.66 5.18 2.81 5.75 2.98 6.68 3.15 8.09 y.na 0.43 0.42 0.46 0.55 0.55 0.64 0.63 0.12 0.76 0.96 0.84 1.20 0.91 1.23 1.08 1.53 L ord luel 0.25 0.28 0.29 0.47 0.33 0.44 0.38 0.49 0.43 0.56 0.48 0.68 0.54 0.68 0.63 0.60 Ct.ecicala 1.40 1.09 1.60 2.02 1.70 3.14 1.79 4.25 1.90 3.64 2.00 2.94 2.11 3.4¢ 2.24 4.86 1/ettala ate. - 0.07 - 0.08 - 0.06 - 0.05 - 0.07 - 0.08 - 0.08 0.17 0 08 I-.re Purch,.40.593 069 124 07 .ater P.1c Tax ad Other TAxe 0.35 0.34 0.43 0.45 0.51 0.58 0.58 0.63 0.62 0.84 0.66 0.93 0.69 1.24 0.73 1.50 ather up.aeta 2 0.49 0.141 0.54 0.52 0.59 0.67 0.62 0.90 0.66 1.10 0.70 1.19 0.74 2.05 0.79 2.48 her Ex -ad XXP2ECOnICUres 0.3 1.8 l01 1.98 .L 09 -Lz 1.13 3.9x ,1. 9 .6 12 K 131 61 .6 61 Toal 4.38 4.03 4.56 4.88 4.97 6.26 5.39 6.99 5.84 7.09 6.24 7.17 6.66 9.23 7.38 23.17 D#preclatILon 1.31 1.54 1.60 1.95 1.98 2.11 2.09 2.49 2.34 2.97 2.55 3.73 2.62 5.05 2.69 6.61 Total Opararing Expcoaca 5.69 5.57 6.16 6.83 6.95 8.37 7.48 9.48 8.18 10.06 8.79 10.90 9.28 14.28 10.07 39.78 Tet Ceratir. Trco. 0.93 1.05 1.67 1.75 2.96 3.49 3.84 3.13 4.27 *..70 4.56 3.37 4.95 8.52 5.01 4.3 Intereat 0.41 0.47 0.72 '0.61 0.97 0.79 1.01 1.00 1.21 1.39 1.44 1.96 1.76 2.60 2.10 2.78 eInco.c 0.54 0.58 0.95 1.14 1.99 2.70 2.83 2.13 3.06 3.31 3.12 3.41 3.19 3.92 2.91 1.52 X-crius Lacion 86 84 79 79 70 70.6 66 75.2 646 46.2 66 67 65 63.0 67 82.1 acora or Avar-&e M, t vimLd Aa..I 3.4 3.4 4.1 4.8 5.3 9.03 6.5 7.23 6.3 9.3 6.1 8.5 6.6 10.9 6.5 5.5 }/ 1980 regulta preli~-ry. Tlml17A. - 11n8 6. -I. 14'L?.> (99-VN ,!I0ECT C>,PI i TI n4 R.P,,RT 50:1111 Co~arison of AppraI .l dorcat engA_A.oa .l.nc.e fh.,t. (1973-1980> 1,.cal T.ar radL. Dø."er 31 1973 1974 1975 1976 1977 1978 2979 lit ..............----------- ------------. --------. -.. - •••••---------. D MIlI& l . --................. . . . . . . . . ... . . . . . . . . . - - - Akppr411.1 kctueLL Aa#flAts pria A'tual1 kppraf..sa_ctual åpap cul grie cu grfl Aga g rL.ad A-s.ca 33.22 %8.86 80.97 67.89 85.68 80.32 91.18 94.06 207.13 14.10 040 6 114.01 176.96 1663 148.80 Le.* D.ractktto~ 2.4 25.68 26.91 27.52 78.77 31.01 30.75 35.04 379 39.77 35.46 4..37 18.00 52.68 10.62 56.73 1et IFL-d &aset& 27.78 33.18 34.06 40.37, 36.91 49.11 60.43 59.02 74.14 74.33 74.94 102.29 76.01 324.28 77.18 132.01 ork la tr-gr466 37.97 11.99 1.91 970 2.07 10,88 7.72 27.83 L.50 2L 2 69. 25.63 16.74 31.42 23.77 62.81 Total IL.0d Aa.ota 45.73 43.17 55.97 50.07 58.98 59.99 68.15 86.85 75.64 107.62. 81.80 127.92 92.23 153.70 100.95 194.81 A.ccout. RckL. ab1e - LaongTr 2.57 2.78 3.03 3.51 3.46 4.94 3.83 8.44 4.14 12.00 4.41 13.07 4.63 13.84 4.81 11.71 Investent 0.84 0.87 1.31 1.50 1.51 2.12 0.74 1.27 0.23 0.41 4 0.33 4 1.84 . 0.71 stocka 0.90 1.03 1.00 1.39 1.10 1.71 1.12 3.22 1.1$ 3.86 1.16 3.1. 1.24 å.counts lacoivable • hor1-T.rs 3.20 3.19 3.42 3.49 2.66 4.76 3.16 4.79 3.40 4.71 3.64 6.33 3.8 7.81 4.13 2.56 d 0.71 J 1.86 1.9 . 2.86 U1 1.87 LUl ..9. L60 1.68 1.20 0.3 1.95 Total c.rret A4"tå 4.61 5.94 4.94 6.74 6.46 8.44 7.14 8.33 4.42 9.j8 1.7 11.06 6.73 11.33 5.73 Total A...ac& 53.97 34.77 65.23 61.82 70.41 75.49 79.86 104.91 86.43 129.81 94.04 132.5* 103.63 1*1.87 111.46 Goverr.cat ConLtibtioos 26.26 26.26 29.36 28.76 32.59 31.68 37.14 35.73 37.14 42.23 37.14 6. 37.14 32.31 31.14 62.01 LI) Cust.mr. C.ctrIL.bctond 2.$9 2.A7 3.73 4.14 4.48 6.55 5.21 12.12 5.94 36.33 6.66 26.6 37.31 32.319 4.01 63.&0 1r..eA . lo e 3.66 3.70 4.61 4.84 6.40 7.54 9.43 9.67 2.49 12.98 13.61 16.39 1.80 22.31 21.71 23.8 kav&luation B..erve • - - -- 2.0a -L 4.71 156 -1.9 2.1 17 23.G3 "-- - ___ .7. .1.9! ...:- 11.85 ---.~... MJ.i. 22.81 Tocal Eq.1cy 32.91 32.93 37.90 37.74 43.67 48.23 31.78 62.23 55.57 79.70 39.41 300.37 63.31 122.65 66.92 148.4 Leoa-T.r D.bt: Uviou&s 180D/IDA 5.41 5.29 10.00 6.77 10.24 8.42 9.83 14.19 9.42 17.01 8.99 18.ø 8.31 19.10 809 21.17 S hCe.dica 1.86 1.82 3.47 2.36 3.68 3.05 3.68 4.80 3.68 6.50 3.66 7.03 3.63 7.0 3.0 1.61 Prp~d M a • - 0.10 - 0.54 - 2.82 - 6.60 . 6.91 . 9.32 7 3.2 0.r 7.99 7.98 7.18 737 7,16 L. .74 6.73 6.31 .,•3 11,64 11.80 11.65 86.11 11.3L Total Lo.&-T.ra Debt 15.26 15.09 1. 16.70 21.62 18.63 23.07 23.72 26.01 33.21 29.13 37.18 33.30 37.81 37.05 44.0 Cons~r DwposIts and "apayr.ot 0.58 0.57 0.68 0.73 0.78 0.87 0.88 0.99 0.98 1.1$ 1.08 1.31 1.18 1.31 1.38 .3 Accont . od A-zr'a16 4.66 5.60 4.83 6.04 3.53 7.53 3.29 15.20 3.03 14.97 3.29 12.67 4.49 19.03 1.ly 01.5 rr..L ba"rti.sD *L...Tr0.6 0.8 0.6 0.61 0.81 0.21 0.83 .15 0..0 Total Curr4nc. Li iI1Las 5.80 6.73 6.19 7.38 5.12 8.61 5.00 16.94 4.86 16.90 5.48 13.03 6.82 21.41 7.50 32.70 Told .Icy and Li iiie 33.97 54.71 65.24 61.62 70.41 75.49 79.45 104.91 86.44 129.81 94.04 152.54 103.63 u1.87 111.47 225.27 0.y76y ~3216&. 316 36&64 31169 33&67 28å71 31:69 2ø:M 3164 29in1 33:61 28t72 33&63 34&76 M4#8 2137? J 1980 roalts peIaaa.ry. PROJECT C0'ÆTIIN IEPORT SONVDE Coe-.1rson_of _Apaja. and Act.al Cnsh F1o. (1973-1980> it.cal Y.ar Lnding Dect=br 31 1973 1974 1975 1976 1977 1978 1979 19.0 ------------------------------------------------------------------ D Illion --------------------------------------.---------------.------------------------- Amaraisal Actual Anria cuL Apprnal Acul Arasal Actual Appralmal Actual Appratsal Accu,.1 Amprasae kct%ml Avgraisal Actual Irra <rur.v ti fu.nd* rei- Ir:ccre before D'pr'ciati3n 2.26 2.59 3.27 3.70 4.94 5.60 5.93 5.62 6.G1 7.67 7.11 9.10 7.57 13.57 7.70 10.91 Operrt o-al PeqaIrcrent. Increasø <ccrease) tn Uorking C&pital oth,r chan Cash (0.74) (1.28) 0.05 (0.07) 0.54 (0.04) 0.66 (6.26) 0.43 0.64 (0.09) 3.03 (1.05) (5.49) (0.48) (4.13) Interett ]ar-ed to Uptation: I P3*/I-A Prjectz 0.26 0.24 0.57 0.37 0.81 0.64 0.86 0.81 1.07 1.19 1.25 1.21 1.33 1.33 1.29 1.43 5--dis Cr,dita 0.01 0.01 0.02 0.02 0.03 0.02 0.03 0.02 0.03 0.02 0.03 0.04 0.03 0.07 0.03 0.08 Ocher L-a.s 0.14 0.22 0.13 0.22 0.13 0.13 0.12 0.17 0.11 0.18 0.16 0.71 0.40 1.20 0.78 1.25 Sub-Total 0.41 0.47 0.72 0.61 0.97 0.79 1.01 1,.00 1.21 1.39 1.44 1.96 1.76 2.60 2.10 2.78 A.rtr.:Ion of Lo.ns: I - ./ s Pojects - - 0.15 0.17 0.27 0.19 0.39 0.21 0.40 0.21 0.42 0.21 0.66 0.47 0.69 0.47 S C.Ji., credits - - - - - - - - - - - 0.02 - 0.03 0.04 Och,r L1a.s 0.39 0.39 0.41 0.41 0.41 0.42 0.42 0.00 0.42 0.54 0.43 0.57 0.43 0.58 0.43 0.56. I s.b-Toc.l 0.39 0.39 0.56 0.58 0.68 0.61 0.81 0.21 0.82 0.75 0.85 0.78 1.11 1.05 1.11 1.07tn Total opr.tlo.al &equiree.nts 0.06 (0.42) 1.33 1,26 2,19 1.36 2.48 (5.05) 2.46 2.78 2.20 5.77 1.82 (1.84) 2.77 (0.85) B1a-ce of forl. Available for Investet 2.20 3.01 1.94 2.44 2.75 4.24 3.40 10.67 4.13 4.89 4.91 3.: 5.75 15.41 4.93 11.79 Proje-t Fund, 8.08 7.65 11.89 6.85 5.10 9.95 11.38 26.72 9.97 20.51 8.94 20 1 13.20 29.04 11.59 38.62 tr.c.rae (dureaw)>la Investment ad Long-Ter, A 1.21 1.2 0.94 1.35 . 0.63 2.05 (0.4) 2.65 (0.18) 2.70 0.02 1.) 0.22 1.04 0.18 (1.06) Total Capital Iv:tmcnt 9.29 8.85 12.83 8.20 5.73 12.00 10.98 29.37 9.79 23.21 8.96 21.^ 13.42 30.08 11.77 36.5" ala.ca to be FInanced 7.09 5.84 10.89 5.76 2.98 7.76 7.53 18.70 5.64 18.32 4.05 17., 7.67 14.67 6.84 24.77 ILRDIUA 3.02 2.52 6.47 2.09 0.84 1.45 - 5.98 - 3.16 - 2.1 - 1.69 - 3.17 Sw&dish Lending - 0.35 - 0.54 - 0.69 • 1.75 - 1.70 - 0.1 - 0.01 - 0.5 Och.r _ __ _._ .10 (Q.i) Q0L 3.40 4.25 5.50 4-60 3-4,1 S.b-Tocal 3.02 2.87 rý.5) 2.22 1.28 2.14 2.28 7.84 3.78 5.27 4.25 5.02 5.50 1.70 4.60 7.38 C r-.nt C,,ntributions 2.29 2.29 3.30 2.50 3.03 2.92 4.55 4.07 - 6.48 • 4.t - 5.66 - 10.70 C,st.ra, Contribution 0.81 0.73 0.83 1.17 0.85 Z.81 0.86 5.17 0.8" 4.43 0.88 8. ' 0. 6.91 0.1 6.1-1 lotal F.ndin& 4.12 5.89 10.70 >.89 5,16 7.87 7.69 17.08 4.65 19.18 5.13 18.1. 6.4 14.27 5.51 24.51 C..h r..... (decr.a..) for Year (.97) 0.05 (0.19) 0.13 2.18 0.11 0.16 (1.62) (0.99) 0.86 1.08 0.. (1.27> (0.4) <1.33) (0.25) Ca..h t ugtnn... of y"ar 1.68 1.68 0.71 1.73 0.52 1.56 2.7 1.97 2.86 0.35 1.87 1.21 2.95 1.60 1.68 1.20 Cash at End of Yar 0.71 1.73 0.52 1.86 2.70 1.91 2.hå 0.35 1.87 1.21 2.95 61. 1.65 1.20 0.35 0.95 D*t Service Cov*rag. (TI..) 2.8 2.9 4jj) 3.0 3.0 4.0 3.3 4.6 3.3 3.6 3.1 3.2 2.6 3.7 2.4 2.83 Inter.a1 rir.a~cing of Capical Inv*scant (%> 24 34 15 30 48 33.3 31 36.3 42 21.1 55 15 43 51 42 20 1 60 results prel1ioinry. - 36 - ANNEX 8 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Comparison of Major Indicators SONEDE Appraisal Appraisal 1974 1978 1980 1974 1978 1980 Water Produced (Mm3) 126.0 163.0 181.2 127.2 171.8 192.8 Water Sold (Mm3) 85.7 114.0 128.8 88.4 118.6 132.0 Unaccounted for Water (%) 32.0 30.0 30.0 31.0 31.0 31.0 Connections at Year End ('000) 198.0 280.0 321.0 206.0 351.0 423.0 Average Rate (millimes/m3) 69.0 94.0 94.0 65.6 85.0 118.0 Revenues (D Million)- 7.83 13.35 15.08 8.58 16.27 24.92 Operating Expenses including Depreciation (D Million) 6.16 8.79 10.07 6.83 10.9 17.93 Net Operating Income (D Million) 1.67 4.56 5.01 1.75 5.37 6.99 Operation Ratio - (%) 79.0 66.0 67.0 79.0 74.0 72.0 Return on Net Fixed Assets - % 4.1 6.1 6.5 4.8 8.5 6.3 Net Fixed Assets in Service 54.06 74.94 77.20 40.40 102.40 126.90 (D Million) Debt Service Coveage 2.6 3.1 2.4 3.0 3.3 2.8 Debt Equity Ratio 36:64 33:67 36:64 31:59 28:72 26:74 Internal Financing of Capital Investment (%) 15.12 54.80 32.24 30.00 16.50 30.5 Internal Financing as % of Net Fixed Assets plus Work in 3.46 3.83 2.53 4.87 2.6 6.04 Progress (Annual Average) - 37 - ANNEX 9 TUNISIA THIRD WATER SUPPLY PROJECT LOAN 989-TUN PROJECT COMPLETION REPORT Comparisot, o -i sal Forecast and Actual Friancing Plan Fund Requirements and Sources Appraisal Actual D Million % D Million % Requirements Project Expenditures 18.53 41 29.28 22 Other Capital Expenditures 20.78 46 106.25 81 Investments & Long-Term Advances 1.01 2 8.92 8 Increase (Decrease) in Working Capital 1.59 4 (12.92) -10 Increase (Decrease) in Cash 3.04 7 (0.78) -1 Total Requirements 44.95 100 130.75 100 Sources of Funds Net Income Before Interest and Depreciation 27.86 62 56.17 43 Lessi Debt Service 9.07 20 16.18 12 Net Internal Generation 18.79 42 39.99 31 Bank Loan 10.00 22 9.40 7 Other Loans 1.65 4 8.74 6 Total Borrowing 11.65 26 18.14 13 Government Contribution 10.22 23 36.75 28 Consumers' Contribution 4.29 9 35.87 28 Total Contribution 14.51 32 72.62 56 TOTAL SOURCES 44.95 100 130.75 100 一38一獻州EX 10 ：手〕呂齋望三”排排排排排排排排排話 屆】：::;:::::::::::::::::::::::::::：韭：: 謂：:!：寫：;::：·……”&&&&&&&&&&&&&&&& 劊！,”〕〕且〕；: IBRD 10847(PCR) TUNISIA I JUNE-1981 A4 e di terrcyn e o n Cýt THIRD WATER SUPPLY PROJECT B,.e,te Sfax Supply and Transmission Systems PROJECT EXISTING 0 wý115 Sterage reserveirs Transmiss,on moms -El Feede, ains 37' Distribulion systems 37'- Doms R,eirs To b., k. 0 Towm; % International boundary -ýýKel,b,a T 15 ------ guture development af Sfox 01 supply system Major worýs financed under orevious Bank loan and eredil Grombolia ý15 9CH il b~,ý BIRD 10-1 1-1-1 M4, Ild Nabeul Ih- nn-P b- praned t, efiwi he P-t Gulf Of 0. L e Kef C) 36'- < C) Kel b,. 0 10 3P 4ý 5P 6? ýO 8P Mona5tir Kilo-re,s LLJ 0 '0 20 30 4 50 Kairouan Skt S,,1,;ý < SID16. el H... Mohdia Hadje',_ 13 E3 El D,.m sbet14 DJ'ILMÅ C Medi te rra n e a n Seo ø 800 -n. a, Tiý n, so 'kine K k . G.m.uda 35*- PA M,,,,,i Ch,ký '12 < SFAX Is. Mah,re Skl en Nouel GýIf ol Gabe5 I BYA lo,  11\I&l一甫 11、I必■訪閑 I日、＿_＇力口變I -―坤11州1 fl 11凡－」｀～沌一－－一一－一一～八）I卻― I顱＇!,｀、｀遲膩■驕― 11＇、、〝Bl乏＇州 l&＇、｀&j瞭■。＇才b[I l＇州fl、，■q＇屹n憤＇l 1 11,1,kll變＇州‘S，奮 -&＇一｀、｀侈巨栽＇＇州I,- -&J／、一、｀I！耳－閑＇Z- l、「】、｀｀〞l乙一＇&&! 一日州汰｝一＼、、甦少矓i〕 k、響k〞l&｀、〞大h竺jl鬥〕l I)N皴l＇髡、〞j妒“鬥二二必必必―.HI I＼、濺、l＇、1 ljl上！州J＇黠J―一I 1 Jk絀｀I&1 1 jj,,‘兀仕于不―,-l lj、騙了、．.＇、l』勰＇＇么、＇,&~l豐才l 口 刃 口 －豳 O 印 平 中 j．州 刀 O 刀 k&f  IBRD 10857 JANUARY 1974 TUNISIA Mediterraneaon Sea THIRD WATER SUPPLY PROJECT RURAL CENTERS 6 6500 1' 6 B/ZERTE ) 3900 Numbers of centers served by the ___6e project per province ? T« U N 5 392 Total populotion of these centers 51 per province E 0 \ Provncial capitals J DJENDOULYA"' 1 NA 8E1 ----- Provincial boundanes DjendoubaN - -- International boundaries fl Centers devetoped .nd., (fl' LeI<n® KefSIDA (mn ing Tunjs o Le KefKnTunisn 3 ) --36*5 0 36'- IE KE F A F R I C A KA/ROUMAN/ SoussE Kosserine ~~. IFAX69 ,1.. d. 611 S F A X GUfs. 8 700 0 lp o 2 0 s 40 5o G A SA O 4 MILES -0 t 4P Io 80 6 ULF OF GA BES KILOMETERS -34 - - - fri or l,,tq,e .> the 30 Gobes X- - 6 *\ x''G,A 27E00 "-5 6..deninb GA ED5 L0B 1' MEDENINE LBY L l