Bolivia - Santa Cruz Water Supply and Sewerage Project

Documnent of The World Bank FOR OFMICIAL USE ONLY Report No. 8713 PROJECT COMPLETION REPORT BOLIVIA N. SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT (CREDIT 948-BO) MAY 31, 1990 Infrastructure and Energy Division Country Department III Latin America and the Caribbean Regional Office Tis docment bas a restricted distrbution and may be used by recipients only in the performance of their ofcial duties. Its contents may not otherwise be disclosed witbout World Bank authorization.  ThO WORLD SANK MOkI OMCLAL USE ONLY Washdton. DC N0433 U.S A 0sk ed omtw-4 1 Clwue m Dwcw.aubatw May 31, 1990 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Bolivia Santa Cruz Water SuDDil and Seweragg Proiect (Credit, 94-BO) Attached, for information, is a copy of a report entitled "Project Completion Report on Bolivia - Santa Cruz Water Supply and Sewerage Project (Credit 948-B0) prepared by the Latin America and the Caribbean Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This dwcmet ban a rtg dt_ tbtiuu may bed 11by isciltn oly il the * ein o,an e of thmofficialdute In eou mayt otbiwi be diatiosd w thout Word Bank authori$m.  FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT BOLIVIA SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT (CREDIT 948-BO) TABLE OF CONTENTS Page No. Preface ............................................ i Basic Data Sheet ................................................. ii Highlights ....................................................... iv CHAPTER I: Backgrourd .. 1 1.1 The Bank and the Association Lending to the Sector ..... 1 1.2 Sector Organization .................................... 1 1.3 SAGUAPAC System ........................................ 2 CHAPTER II: Project Preparation, Appraisal and Negotiation ......... 3 2.1 Origin and Rationale for the Project ................... 3 2.2 Project Preparation and Appraisal ...................... 3 2.3 Negotiations, Board Presentation and Effectiveness..... 5 2.4 Major Covenants of the Credit and Project Agreements ... 6 CHAPTER III: Project Execution and Costs ........................... 7 3.1 Timetable and Changes in the Project ................... 7 3.2 Project Costs .......................................... 9 3.3 Changes in Closing Date, Allocation of Credit Proceeds and Timing of Disbursements ............................ 10 CHAPTER IV: Proiect Justification ................................. 10 4.1 Achievement of Project Objectives ...................... 10 4.2 Rate of Return on Investment .. 11 CHAPTER V: Financial Performance .. 11 5.1 Comparison of Forecast and Actual Data . . 11 5.2 Assets Revaluation .. 12 5.3 Need to Improve Future Financial Performance .. 13 CHAPTER VIs Institutional Performance ............................. 13 6.1 SAGUAPAC ............................................... 13 6.2 Government and CORDECRUZ . . 14 6.3 The Association .. 14 CHAPTER VII: Lessons to be Learned ................................ 14 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  TABLE OF CONTENTS (CONT.) Page No. ANNEXES Annex 1 Major Covenants of the Credit and Project A8reements.... 16 2 Appraisal and Actual Timetable of Project Implementation 18 3 Appraisal and Forecast Project Costs . . 19 4 Actual and Forecast Accumulated Disbursements ........... 20 5 Forecast and Actual Loan Allocations . . 21 6 Rate of Return on Investment ............................ 22 7 Comparison of Forecast and Actual Income Statements (1980-87) ....... . 23 8 Comparison of Forecast and Actual Sources and Applications of Funds (1980-87) ......................... 24 9 Comparison of Forecast and Actual Balance Sheets (1980-87) .. 25 10 Monitoring Indicators .. 26 11 Consumer Price Index .. 27 12 Comments from SAGUAPAC ................................. . 28  (i) PROJECT COMPLETION REPORT BOLIVIA SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT (CREDIT 948-BO) Preface This is the Project Completion Report (PCR) for the Santa Cruz Water Supply and Sewerage Project, for which Credit 948-BO in the amount of US$ 9.0 million was approved on July 12, 1979. The Credit was closed on June 30, 1986, three years behind schedule. It was fully disbursed and the last disbursement was on February 3, 1987. The PCR was prepared by the Infrastructure and Energy Division, Country Department III, of Latin America and the Caribbean Regional Office and is based, inter alia, on the Staff Appraisal Report; the Credit, Guarantee, and Project Agreements; supervision reports; a final report prepared by the Cooperativa de Servicios P6blicos Santa Cruz Limitada (SAGUAPAC); correspondence between the Bank and SAGUAPAC; and internal Bank memoranda. The draft PCR was read by the Operations Evaluation Department (OED), and sent to the Borrower for comments on February 26, 1990. The comments from SAGUAPAC, dated April 20, 1990, have been incorporated into the text of the PCR and also set forth in Annex 12.  (i) PROJECT COMPLETION REPORT BOLIVIA SANTA CRUZ WATER SUPPLY AND SEWERACE PROJECT (CREDIT 948-BO) BASIC DATA SNEET KEY PROJECT DATA Appraisal Actual Total Proiect Cost (US5 million equivalent) (Excluding finance charges) 16.0 20.4 Cost overrun (or underrun) 27.52 l Loan Amount (USS million equivalent) Disbursed (as of April 30, 1989) 9.0 9.0 Cancelled (as of April 30, 1989) None None Repaid (as of April 30, 1989) 0.0 0.0 Outstanding (as of April 30, 1989) 9.0 9.0 Date Physical CoMponents ComPleted 12182 9/87 Return on Investment 122 4.92 Institutional Performance Good Good CUMULATIVE ESTIN&TED AND ACTUAL DISSURSDIZNTS (US$ Million) As of June 30, 1980 1981 1982 1983 1984 1985 1986 1987 (i) Appraisal Estimate 2.1 5.8 8.2 9.0 9.0 9.0 9.0 9.0 (ii) Actual 0.1 1.6 2.7 3.8 4.1 5.7 7.6 9.0 (iii) (ii) as 2 of (i) 5 28 33 42 46 63 84 100 1/ The costs are not fully comparable because some Project components were eliminated and other added to the Project. A comparison made between the components that were planned and implemented shows a cost overrun of 13.41 (para. 3.2.1).  (iii) STAFF INPUT (Staff Weeks) Bank FY 1978-79 1980 1981 1982 1983 1984 1985 1986 1987 1988 Total Preappraisal 18.0 18.0 Appraisal 24.9 24.9 Negotiations 18.0 0.4 18.4 Supervisions _ 9.7 11.2 11.4 9.5 9.0 7.4 10.7 2.6 0.1 71.6 60.9 10.1 11.2 11.4 9.5 9.0 7.4 10.7 2.6 0.1 132.9 MISSION DATA Month/ No. of No. of Staff Date of Type of Mission Year Weeks Persons Weeks Report Preparation 5/78 1 1 1 1 Appraisal 12/78 2 4 8 3/7/792 Supervision I 7/79 1 2 2 10/26/79 Supervision II 1/80 1 2 2 2/15180 Supervision III 8/80 1 2 2 10/21/80 Supervision IV 4/81 1 2 2 7/17/81 Supervision V 2/82 1 2 2 4/5/82 Supervision VI 3/83 1 2 2 5/10/83 Supervision VII 10/83 1.6 2 3.2 12/2/83 Supervision VIII 9/84 1 2 2 11/27/84 Supervision IX 11/85 1.6 2 3.2 1/15/86 Supervision X 5/86 0.6 2 1.2 6/13/86 OTHER PROJECT DATA Appraisal Actual First mention in files 3/28/78 Negotiations 5/7-11/79 Board Approval Date 7/12/79 Loan Agreement Date 7/27179 Effectiveness Date 10/29/79 Closing Date 6/30/83 6/30/86 Borrower: Republic of Bolivia Executing Agency: SAGUAPAC Fiscal Year of the Borrower: Calendar Follow-on Project: None CURRENCY EXCHANGE RATE3 1979 1980 1981 1982 1983 1984 1985 1986 1987 At year-end 20.0 24.5 24.5 197.9 504.9 8783.0 1692000 1923000 2.21 1/ Report was not available in the Project file. 2/ Yellow Cover issuance. 3/ Pesos bolivianos ($b) per USS through 1986, Bolivianos (BS) per US$ thereafter. The Boliviano was created in January 1987, equivalent to 1,000,000 pesos (Sb).  (iv) PROJECT COMPLETION REPORT BOLIVIA S TA CRUZ WATER SUPPLY AND SEWERAGE PROJECT (CREDIT 948-BO) Highlights 1. Credit 948-BO (US$ 9 million equivalent) helped to finance the expansior of the water supply and sewerage system of Santa Cruz. Water supply works included: a) the construction of two new wells and pumping equipment, a storage tank of 4,000 m3 and 173 km of distribution network; b) the acquisition of 258 km of pipelines, 30,000 water meters and communication equipment; and c) the installation of 16,000 new house connections. The sewerage works included: a) the construction of an oxidation pond, a pumping station, 2.2 km of main effluent channel, 2 km of trunk sewer and 97 km of sewer lines and laterals; and b) the installation of 7,500 new house connections. The Project also included the acquisition of 24 vehicles, and technical, administrative and management assistance compor.ents. 2. The majority of the Project's components were completed in September 1987, or about five years later than the target completion date. Due to this delay, the Project was partially successful in meeting its objectives of: a) providing water to an additional 108,000 inhabitants by 1983 and increasing the population served from 822 in 1978 to 852 in 1983; b) providing sanitary sewer services for an additional 66,100 inhabitants by 1983 and thus increasing the population served from 33Z in 1978 to 402 in 1983; c) assuring a more even water dibtribution and pressure, and d) improving the management efficiency and financial position of SAGUAPAC. 3. At the end of 1987, there were approximately 128,000 and 60,000 additional inhabitants with water supply and sewerage service, respectively, which can be attributed to the Project. The additional inhabitants with water service were higher and the additional inhabitants with sewerage service were somewhat lower than the targets established in the SAR for 1983, which was the year expected for full operation of the Project. However, at the end of 1987, the total population with access to water and sewerage service had declined to 712 and 292, respectively. This decline in service coverage was mainly caused by the higlh increase in population experienced by Santa Cruz in the period 1978-87. The other objectives of the Project achieved, were the following: the water pressure has improved, the area serviced by SAGUAPAC has water supply 24 hours a day, management efficiency has improved substantially and the financial position of SAGUAPAC has started to get better since 1986. 4. The main reasons for delay was the hyperinflation and the difficult economic problems faced by Bolivia in the period 1982-1985. These facts seriously affected the SAGUAPAC's finances, because, due to a large extent to these problems the costs of the Project, the operating expenses and the accounts receivable increased substantially, while tariff  (v) adjustments did not keep pace with the rise in operating costs. However, as was stated above, since 1986 the finances and the operating efficiency of SAGUAPAC have improved. In 1987, the rate of return on fixed assets in operation was the first positive one in the period (2.02), accounts receivable were reduced to 97 days of sales, the operating ratio was 762 and water losses, 27Z. This trend of improvements continued in 1988. S. The Project faced daunting problems, because in addition to hyperinflation and country economic problems, SAGUAPAC confronted the suspension of disbursements from the Credit account for about 13 months (para. 3.1.5) and a flood of the River Pirai that destroyed part of the works of the oxidation pond that was under construction (para. 3.1.4). Even under these circumstances, the Project was completed and is operating satisfactorily. The problems were overcome due in large part to the skill and dedication of SAGUAPAC's management and staff, and the active cooperation of the Corporacion Regional de Desarrollo de Santa Cruz (CORDECRUZ).  PROJECT COMPLETION REPORT BOLIVIA SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT (CREDIT 948-BO) I - BACKGROUND 1.1 The Bank and the Association Lending to the Sector 1.1.1 The Bank and the Association have made two lending operations to the water supply and sewerage sector to Bolivia. The first was Loan 1324-BO (US$11.5 million, 1976), which helped to finance a project designed to improve and extend water supply in 70 rural communities and two cities (Potosi and Sucre), and to extend sewerage in the city of Sucre. The Project Completion Report for this Project was issued in September 1987, and indicated that the Project was successful in expanding and improving water supply services in rural areas, although there was a completion delay of about f:.ve years, the components of two cities (Potosi and Sucre) were never implemented and the institutional objectives were not achieved. The second operation, Credit 948-BO (US$9.0 million, 1979), which is the subject of this report, was made to the Government of Bolivia, which relent the proceeds of the Credit to SAGUAPAC. It also has to be mentioned that in August 1987, the Association approved a Project Preparation Facility in the amount of US$750,000, to help the Republic of Bolivia in the preparation of the Major Cities Water Supply and Sewerage Rehabilitation r oject. The aim of this project is to improve and expand the water and sewerage services in La Paz, Santa Cruz and Cochabamba, and it is expected to be appraised in the last quarter of 1989. 1.2 Sector Organization 1.2.1 The water and sanitation sector in Bolivia is complex, comprising many institutions. At the central government level, three ministries, Planning (MP), Urban Affairs and Housing (MUV) and Health (MH), share responsibilities for formulating sector policies. Although not specialized in the sector, MP is the effective head of the sector overall, as it coordinates all external and government financing to the sector and endorses tariff adjustments. The MUV is responsible for the oversight of the urban sub-sector, especially for approving urban water and sewerage tariffs, subject to consultation with the MP. The MH is responsible for formulating sector health and sanitation policies. Autonomous companies are responsible for providing water and sewerage services and carrying out investments in the nine departmental capitals of Bolivia. These companies are private cooperatives in Santa Cruz and Tarija, and are semi-autonomous water utilities owned by the municipalities in the other seven Departmental capitals, including La Paz. The Corporacion de Agua Potable y Saneamiento (CORPAGUAS), a department of the 1NUV with a staff of about 250, is responsible for carrying out investments and overseeing the operation of the water systems of towns of over 2,000 people. The Direcci6n Nacional de Saneamiento Ambiental. (DSA), a Department of the MH with a staff of about  -2- 400, is responsible for carrying out water and sanitation investments and overseeing the provision of services for communities of less than 2,000 people and for the dispersed rural population. 1.3 SAGUAPAC System 1.3.1 At the time of the appraisal, SAGUAPAC was a decentralized public utility under the jurisdiction of the MUV. In August 1979, it became a private cooperative with the same responsibilities of providing water and sewerage services to the city of Santa Cruz. It is also in charge of street paving activity, which is financed by contributions from the Municipality of Santa Cruz and CORDECRUZ. The Association agreed with this change in legal status. SAGUAPAC is owned and ultimately controlled by all the users of services, and governed by a Board composed of members elected among and by the members of the cooperative. The decision to become a cooperative was influenced by the fact that Santa Cruz has been successful in ha..dling other publ c services (electricity and telephones) with this type of society. 1.3.2 Santa Cruz (departmental capital) is built in four concentric arings", but in recent years the population has settled beyond the fourth ring. The area populated is estimated at about 14,000 ha. In 1987, the city had a population of 577,000 inhabitants, which grew at an average rate of 8.62 p.a. in the period 1979-87. This fast growth was produced by large unemployment in other areas of the country and by the overexpectation created by the oil, gas and agricultural development. The population located within the four inner rings of the city obtains water of very good quality from house connections (almost all metered). The remaining population obtains water mainly from shallow wells, which are often contaminated by latrini on account of the high water table. Water and sewerage service cover&ae in 1987 was about 712 and 29Z, respectively, which were below the targets expected at appraisal (paras. 4.1.1 and 4.1.2). 1.3.3 Santa Cruz obtains its water supply from fourteen wells situated in the north and south of the city. The average depth of the wells is 300 m and the average combined production capacity is 1400 lps (compared to 790 lps at appraisal). From the wells the water is pumped into underground storage tanks of 14,000 m3. Here, it is chlorinated and pumped into the distribution networks, of about 800 km. The network consists of pipe of 50 mm to 500 mm of different materials (PVC, asbestos-cement and ductile iron). As of January 1989, the number of connections was 53,000 approximately. 1.3.4 Santa Cruz has separate sanitary ani storm sewer systems. The network has about 350 km of length, with diameter between 150 mm and 1200 mm. Most of the sanitary sewage is conducted by gravity; however, because of the topography some of the sewage has to be pumped through three pumping stations and transported to a treatment plant. Once treated, the effluent is discharged into the River Pirai. Sewerage service level is very low. People not connected to the sewerage system have bore-hole latrines, septic tanks or no service at all.  -3- II - PROJECT PREPARATION, APPRAISAL AND NEGOTIATION 2.1 Origin and Rationale for the Project 2.1.1 The Project had its origin in discussions held in June 1978 between SAGUAPAC and the Association staff during the supervision of Loan 1324-BO. This mission was undertaken to study the request of the Ministry of Urban Affairs and Housing (MUV) to transfer funds allocated to the cities of Sucre and Potosi to SAGUAPAC. After studying the matter, the Association and the Bolivian Government agreed that it would be preferable to consider a new and separate loan. The Project was selected on the basis of the urgent needs to improve water and sewerage service in Santa Cruz; a Government decision not to subsidize public ser ices (including water supply and sewerage in the city of Santa Cruz), and the advance stage of project preparation. The aim of the Project was to increase the service levels in Santa Cru,. and extend services to many of the urban poor, support the establishment of sound tariffs that would enable SAGUAPAC to become financially independent, ard provide technical assistance and training to make its operation and administration more efficient. 2.2 Project Preparation and Appraisal 2.2.1 The Project was prepared by SAGUAPAC staff. The sewerage part was based on the first stage of a master plan prepared by a consultant. The detailed engineering and bidding documents were done also by SAGUAPAC staff. However, to review the final design SAGUAPAC proposed to the Association the use of consultants, which the Association accepted to finance from the Credit proceeds (para. 2.2.4). 2.2.2 Based on the work of the June 1978 supervision mission for Loan 1324-BO (para 2.1.1), the Association decided to send the appraisal mission in December 1978. The main issues raised by the mission were the need to: a) assure the contributions of SAGUAPAC and CORDECRUZ to the Project of approximately US$3.9 and US$2.5 million,l respectively; b) undertake institutional improvement and hire technical and management consultants for the implementation of the Project, and c) solve the problem produced by the high cost of household plumbing (connection to the system and the interior plumbing), which often resulted in delays in achieving project objectives because many low-income households could not connect to the system because of the capital costs of the installation. 2 To deal with these issues the Association requested SAGUAPAC and the Government, before Credit negotiations, to approve tariff increases and assure the contributions of CORDECRUZ to the Project (para. 2.3.1), and as conditions of effectiveness, to put into effect the tariff increases, to create a planning and an engineering unit and to enter into an agreement with CORDECRUZ by which the latter would provide funds for the Project (para. 2.3.4). To solve the problem of high costs of house plumbing, the Credit Agreement included a provision for the creation of a revolving fund to I/ Excluding US$0.6 million of contributions of land, materials and equipment made by CORDECRUZ at the beginning of Project implementation. 2/ At the time of appraisal it was estimated that the cost of labor and materials for the interior installation (basin, toilet and shower), and water and sewer pipelines to the street main pipes was about US$450.  - 4 - finance connections of low-income households (para. 2.3.3). The fund would permit SAGUAPAC to finance the users' installation of their plumbing and lot lines for the water and sewer system. The loans would be made to low- income families at a minimum of 10 years term and a rate of interest of 9Z. The works would be done by local plumbers, contracted by the owner, and inspected by SAGUAPAC. During Project implementation, the fund would be financed by an initial contribution of US$50,000 from SAGUAPAC, the periodic reimbursements from the Credit of the amounts spent by SAGUAPAC for groups of small contracts, and the repayments of the users, which would be used as a revolving fund to finance additional similar facilities. After the grace period of the Subsidiary Loan Agreement, another source of financing for the fund would be the amounts withheld by SAGUAPAC on each payment of interest as a grant from the Government (para.2.3.2). 2.2.3 As defined in the credit agreements, the Santa Cruz Water Supply and Sewerage Project consisted of the following components: A- Water Supply System: 1) Completion of the Northeast well field. This included installation of a deep well pump, pipelines, a ground storage tank, a pumping station of 300 hp, chlorinator and power SUPt-*; 2) construction of two reinforced concrete storage tanks with a combined capacity of 8,000 m3 and 3) installation of about 200 km of distribution lines and about 20,000 metered connections. B- Sanitary Sewer Systems 1) purchase of land for the North sewage treatment plan; 2) construction of the North sewage treatment plant with about 25 ha of oxidation ponds; 3) construction of the North sewage pumping station with a capacity of about 200 hp power supply and bypass to the Rio Pirai; 4) construction of the North Emissary of reinforced concrete about 855 m in length and 1.5 m in diameter; 5) construction of a trunk sewer of plain or reinforced concrete 600 mm and 800 mm in diameter and about 4,450 m in length; and 6) installation of sewer lines and laterals of about 60 km in length 150 to 600 mm in diameter of clay andlor plain concrete pipe and about 10,000 new house connections. C- In-house Plumbin8 and Lot Lines 1) setting up of a revolving fund to finance the installation of water and sewer lot lines and in-house plumbing facilities.  D- Administration and Operation 1) purchase of data processing equipment; 2) purchase and installation of laboratory and communications equipment; and 3) purch - of vehicles for operation and maintenance. E- Tech -1b Assistance 1) hiring of consultants to study and determine the next source of water after 1986; 2) hiring of consultants to assist SAGUAPAC to improve its organization and management, develop its engineering and planning divisions; 4) training and upgrading of personnel, and 5) hiring of consulting engineers for the supervision of the Project. 2.2.4 The appraisal mission estimated that both the water supply and the sewerage components of the Project were the least-cost solutions. The proposed ground water solutions were the closest ones to Santa Cruz and required no treatment other than chlorination. Thus, both capital and recurrent ^osts were lower than other feasible alternatives. In the same way, the technical solution proposed for the treatment of sewage effluents (oxidation ponds) was the most economical one, since it required simple construction techniques and lower operating costs. The appraisal mission estimated the cost of the Project at US$ 16.0 million (excluding interest during construction), with foreign and local costs estimated at US$6.25 million and US$9.75 million, respectively. The Project was estimated to be financed as follows Association's Credit, US$9.0 million; SAGUAPAC, US$3.9 million and CORDECRUZ, US$3.1 million. The Project included a retroactive financing of US$ 300,000 for consultant services for the review of th- final Project design (US$50,000) and for the purchase of a computer (US$ 250,000). 2.3 Negotiations, Board Presentation and Effectiveness 2.3.1 It was agx?ed that before negotiations SAGUAPAC woulds a) approve a revenue package wPich included a gradual increase in tariffs per cubic meter of water billed from $b3.50 as of mid-1979 to 0b5.00 by June 30, 1980; b) provide the Bank with a draft financing agreement whereby CORDECRUZ would commit itself to support the Project through the provision of not less than US$600,000 per annum, up to a total of US$2.5 million;3 c) confirmed that CORDECRUZ would continue serving the Inter-American Development Bank (IDB) loan, that was contracted by the former institution in charge of the water supply and sewerage service in Santa Cruz, and that was used to finance part of the facilities that SAGUAPAC now operates. After all these conditions were fulfilled, the Association invited the 31 See footnote 1/ on page 3.  -6- Government and SAGUAPAC for negotiations, which took place May 7-11, 1979. 2.3.2 During negotiation some changes were introduced to the draft Credit Agreement, includings a) a change in the relending terms of the Subsidiary Loan Agreement, adding one year to the grace period (up to 5 years), establishing an interest charge of 0.75% per annum during the grace period and 7.92 thereafter; providing, however, that SAGUAPAC would withhold 372 of each payment of interest as a grant from the Government in order to capitalize the fund for in-house plumbing after the grace period; and b) a reduction in the interest rate on the revolving fund for in-house plumbing from 12Z to 9% on the unpaid balance and also to denominate the loans from the fund in US dollars instead of bolivian pesos. 2.3.3 Negotiations were substantially completed during the meeting held in Washington; however there was one issue that required more time to be resolved. This was related to the terms and conditions of the revolving fund for in-house plumbing (para 2.3.2), and was stirred by the concern of the senior administration of the Association that the agreement made during negotiations, that the beneficiaries of the revolving fund would bear the exchange risk, would defeat the intention that the funds be used by low- income households. Due to this concern, it was necessary to renegotiate the corresponding section of the Credit Agreement with the Government and SAGUAPAC, which agreed with the Association's proposition that the fund be denominated in bolivian pesos and earn an interest rate of 12X per annum. The rate of interest would be revised from time to time to maintain in constant terms the US-dollar value of the proceeds of the Credit used by the fund. Once this point was solved, the Board approved the Credit of US$9 million to the Republic of Bolivia. The term was 50 years including 10 years of grace and a service charge of 0.752 per annum. June 30, 1983 was established as Credit Closing Date. 2.3.4 Conditions of effectiveness includedt a) to hire satisfactory consultants to supervise the Project and to develop modern management systems and procedures; b) to put into effect tariffs to obtain an average revenue for water and sewerage services not less than $3.50 (US$0.175) per m3 billed, c) to create a planning and an engineering unit with functions satisfactory to the Association and, d) to sign an agreement by which CORDECRUZ would provide SAGUAPAC funds for the Project in an amount equivalent to no less than US$2,500,0004 . The Credit became effective on October 29, 1979, one month later than estimated at appraisal. 2.4 Major Covenants of the Credit and Project Agreements 2.4.1 Annex 1 includes the major covenants of the Credit and Project Agreements. The Government and SAGUAPAC generally complied with the covenants, except regarding the rate of return, level of accounts receivable and losses. This was basically due to the hyperinflation that Bolivia suffered from 1982 to 1985 (Annex 11). But even under these circumstances, SAGUAPAC made considerable efforts to comply with the covenants to the extent possible, and to continue with Project execution. 4/ See footnote 1/ on page 3.  -7- III - PROJECT EXECUTION AND COST 3.1 Timetable and Changes in the Project 3.1.1 Implementation of the Project started in October 1979 and ended in September 1987, or five years later than the original completion date. Annex 2 compares actual and forecast completion dates by principal Project components. 3.1.2 The main reason for late Project completion was hyperinflation. This situation seriously affected the finances of SAGUAPAC and limited its capacity to provide counterpart funds for the Project. Likewise, due to the country economic problems, Bolivia failed to service its debt with the Bank and the Association, and for this reason they suspended disbursements of all loans to the country on two occasions (para. 3.1.5), and consequently the execution of the Project was slow during these periods. 3.1.3 The first two years of Project execution (1980-1981) were quite normal. SAGUAPAC undertook in a satisfactory manner the final design and bidding process for the majority of the materials, equipment and civil works and initiated the construction process. As of December 1981, 57.3 kms of the water pipelines had been installed in 38 neighborhoods or 292 of the estimated target. The revolving fund for in-house connections was operating relatively well and a total of 1,255 connections of water and sewerage had been made. 3.1.4 The period 1982-1985 was characterized by hyperinflation. In May 1982, the Government, through Decree No. 18948, established a monthly adjustment of costs for construction works in line with inflation. The application of this adjustment increased the costs of the works by 10 times as of December 1983 and 312 times as of December 1984, both increments compared to the costs existing in May 1982. There were also technical problems that hindered the development of the Project. One was the sewerage works in three neighborhoods (Unidad Vecinal --UV--30,31 and 33). There were soil stabilization difficulties because of the high water table. This required work to stop from January to June 1983 to make adjustment in the design, which increased the costs. The other problem was that in March 1983, the Pirai River flooded part of the city of Santa Cruz. The flood also caused damage to the partially completed sewerage treatment pond. The works were approximately 582 completed as of March 1983, and the damage represented about 252 of the completed works. Due to these events, the implementation of the Project continued at a slow pace, and in some cases, it stopped. 3.1.5 In addition to the problems mentioned above, SAGUAPAC faced the suspension of disbursements from the Association's Credit on two occasions. The first was from January to August of 1984, and the second one, from July to December of 1985. The suspension was applied to all the lending operations of the Bank and the Association to Bolivia and it was mainly due to failure by the Government to service the debt. It has to be mentioned that, even under these difficult circumstances, SAGUAPAC continued with the implementation of the Project, due to imaginative actions of its staff and an increase in CORDECRUZ's contribution to the Project, which reached US$ 6 million compared to US$ 3.1 million estimated at appraisal (para. 3.2.2).  - 8 - 3.1.6 On its part, the Association was flexible and agreed to the SAGUAPAC's request to create a Special Account to expedite the disbursements of the Credit and counteract the problem created by the fact that, because the rate of devaluation was accelerated, and there was a time lag of two to three months between the payments to the contractors of civil works and the disbursements from the Credit account, SAGUAPAC lost money on these transactions.5 The Association also agreed to increase the disbursement percentage for civil work from 352 to 602, retroactive to January 1, 1986, on the grounds that the indirect foreign exchange expenditures for civil works exceeded the 352 estimated at appraisal due to accelerated increases in foreign costs and drastic devaluation of the peso. 3.1.7 At the end of 1987. the majority of the Project components had been finished and the facilities were operating satisfactorily. The principal components not finished were: a concrete storage tank with capacity of 4,000 m3, which was eliminated from the Project; a treatment plant, which was reduced in area from 25 ha to 9 ha; and the in-house connections financed with the revolving fund, which was reduced to assist only 2,734 households, instead of 8,000 estimated at appraisal. The main reason for not finishing these components was that SAGUAPAC identified, with the Association's agreement, other works of high priority not included in the original Project (para.3.1.8). In the case of the revolving fund for in-house connections, it has to be pointed out that because of the Association's recommendation (para.3.2.3), the loans to the customers were established in pesos with the conditions to adjust the rate of interest periodically. This was a reasonable arrangement for normal circumstances, but with the hyperinflation, this mechanism did not work, as the funds lent by SAGUAPAC lost practically all their value. SAGUAPAC stopped the functioning of the fund in 1984. However, in 1988, SAGUAPAC created a mechanism for financing household connections through short-term loans denominated in US dollar. This has been functioning adequately, except that the short term of the loans deters some low-income users from installing water and sewerage service. It is expected that this situation will improve when the fund for in-house connections starts to receive the grant from the Government derived from the 372 of the interest on the Subsidiary Loan Agreement that SAGUAPAC would withhold (para. 2.3.2) beginning 1989. 3.1.8 With the elimination or reduction of some of the Project components and an increase in counterpart funds from CORDECRUZ, it was possible to add the acquisition of equipment and the construction of two wells not included in the original Project. The construction of these wells was included in the master plan study carried out as part of the technical component and was consistent with the appraised objectives of the Project. There were also some quantities added to the original Project components, the main ones being the following: acquisition of 58 kms of water pipes, 10,000 water meters, and materials and accessories for about 5,100 residential connections. The reason for these additions was that SAGUAPAC considered, and the Association agreed, that the increment in the production of water and the acquisition and installation of distribution lines for water supply had a high priority, due to the accelerated growth of population experienced during Project implementation (para. 1.3.2). 5/ The Association's mission carried out in December 1985, estimated that through 1985, SAGUAPAC lost about US$400,000 due to this factor.  3.1.9 As part of the technical assistance component, SAGUAPAC, with the help of consultants, completed the following studiest a) a revised master plan to define the next water supply project, which the Association found satisfactory; b) a study of the utility's organization, with the description of the functions and procedures of the different departments (this study also gave the basis for strengthening the internal auditing, data processing and for creating the planning unit); c) a study of accounting, internal control and budgeting that helped SAGUAPAC significantly improve the keeping accounting records and preparing of timely reports for financial management; d) a study to develop a system and methodology for calculating fixed charges to recover part of the investments, which led to the creation of the 202 surcharge on water and sewerage monthly bills that SAGUAPAC now applies, and e) preparation of manuals and design of procedures for customer services, meter reading, ratification and distribution of bills, installation of new connections, determination of connection fees, handling of customers' complaints, and preparation of bidding and contract documents. SAGUAPAC also carried out a training program, under which eight of its staff attended degree program/courses/seminars/visits in urban planning, marketing, losses control, engineering economics, and business administration. The Association's staff who supervised the Project did not present an opinion about the result of this program, but it seems that it was not completely successful, because all the eight staff who received the training, except one, left SAGUAPAC. This did not affect the operation of the Company because the staff who left were substituted by staff with equivalent qualifications. The main reason for this high turn-over can be attributed to the low salaries that prevailed in most of the implementation period, a situation that has improved in recent years. As this seems to be a common problem in training programs, the Association should continue paying attention to it in order to find ways that can be recommended to the borrowers to minimize it.6 3.2 Project Costs 3.2.1 The total cost of the Project, including additional works undertaken, amounted to US$ 20.4 million (Annex 3), as compared with the appraisal estimate of US$ 16 million. However, because of changes in the Project (para. 3.1.8), the actual cost of the Project components, defiped at appraisal and implemented, amounted to US$ 13.5 million compared to an appraisal estimate of US$11.9 million (13.4t cost overrun). The increase in costs seems reasonable taken into account the longer construction period and the hyperinflation. 3.2.2 The detailed sources of financing are presented below: 6/ Periodical revision of salaries and conditions of work, and authorization to the staff to have some short-term consultant assignments outside the firm, are some of the options that could be explored.  - 10 - Appraisal and Actual Sources of Project Financing (in million of US$) Appraisal Actual IDA 9.00 9.00 CORDECRUZ Contributions 3.10 6.02 Loans 0.00 1.50 SAGUAPAC 3.90 4.11 16.00 20.63 3.3 Changes in Closing Date, Allocation of Credit Proceeds and Timing of Disbursements 3.3.1 The closing date was extended five times, the last time to June 30, 1986, and upon the request of SAGUAPAC, the Association agreed to a final disbursement date at December 31, 1986, in order to allow time to settle the pending bills related to civil works of the sewerage components. Annexes 4 and 5 compare actual and forecast accumulated disbursements and allocation of Credit proceeds by categories. IV - PROJECT JUSTIFICATION 4.1 Achievement of Project Objectives 4.1.1 The Project aimed to: a) provide water to an additional 108,000 inhabitants by 1983, increasing the population served from 82Z in 1978 to 85Z in 1983; b) provide sanitary sewer services for an additional 66,100 inhabitants by 1983, t-aus increasing the population served from 33Z in 1978 to 40Z in 1983; c) assure a more even water distribution and pressure, and d) improve the management efficiency and financial position of SAGUAPAC. 4.1.2 The Project was partially successful in meeting its objectives. Even though at the end of 1987 the population with water and sewerage services had increased by 128,000 and 60,000 inhabitants, respectively (both figures close to the number of inhabitants to be served established in the SAR), these targets were only achieved by the end of 1987, i.e. with a delay of about four years. By that time, the percentage of population with access to water had declined to about 712, and with access to sewerage, to 291; both percentages were lower than the targets of the SAR. This decline in service coverage was due to the high increase in population experienced by Santa Cruz in the period (about 8.62) and lower number of connections accomplished as of the end of 1987 (paras. 1.3.2 and 4.2.1). The other objectives of the Project achieved were the following: the water pressure has improved, water service is provided around the clock, management efficiency has improved substantially and the financial position of SAGUAPAC has started to improve since 1986.  - 11 - 4.2 Rate of Return on Investment 4.2.1 Annex 6 shows a reestimation of the rate of return on investment of 4.92, compared with 122 at appraisal. 7 The reason for this difference can be attributed to higher project costs (para. 3.2.1). lower sales and higher operating costs than estimated at appraisal. The lower number of connections is one of the major factors for explaining the low rate of return. The number of water and sewerage connections in 1987 were 51,000 and 21,000, respectively. These data on connections have been used to estimate the benefits during the life of the Project, and they seem to be low, if it is taken into account that the targets of the SAR for 1987 were higher than these figures.8 SAGUAPAC's staff believe that the Project allowed the construction of all the basic facilities and that with relatively small investment in distribution lines, about 10,000 new connections could be installed in a short term. This undoubtedly would increase the rate of return of the Project. There was no information readily available to calculate the rate of return with this scenario. It also has to be borne in mind that the rate of return has been estimated using the tariffs as a proxy of economic benefits of the Project. Since all benefits due to improved sanitation and nutrition are not fully reflected in tariffs, the resulting rates of return understate the economic benefits of the Project. V - FINANCIAL PERFORMANCE 5.1 Comparison of Forecast and Actual Data 5.1.1 Annexes 7 through 10 compare the appraisal and actual forecast income statements, sources and applications of funds, balance sheets and performance indicators of SAGUAPAC for the period 1980-1987. SAGUAPAC's financial performance during the period was inadequate, mainly due to hyperinflation and the high pace of devaluation of that period. The key financial indicators deteriorated (Annex 10). The rate of return on fixed revalued assets in service was negative during all the construction period (1980-1987), except in 1987, which seems to have been a turning point in the financial performance of the utility. The operating ratio was over 1002 during 1980-85, higher than the appraisal estimate. This ratio was 97Z in 1986 and 762 in 1987. This last value was close to the level estimated in the SAR for 1983. 5.1.2 SAGUAPAC's average combined revenues from water a..d sewerage charges, at mid-1979 prices, remained at about the same level of Sb3-1 per m3 billed from 1980 to 1983. Thereafter, it began to increase, reaching $b6.0 per m3 billed in 1987. This represented an average annual increase of 102 in real terms for 1980-87. However, average operating costs were higher that average revenues, and also increased at a high rate (7.4Z p.a), from $b4.5 per m3 billed in 1980 to $b7.4 per m3 billed in 1987. This structural 71 It was not possible to estimate the rate of return following the exact methodology employed in the appraisal report, because some of the assumptions utilized were not explicitly stated. Nonetheless, an effort has been made to follow to the extent possible an equivalent methodology. 8I The connections estimated in the SAR for 1987, weret 65,527 for water and 30,031 for sewerage.  - 12 - imbalance gave SAGUAPAC a negative operating income throughout 1980-87. with revenues insufficient to cover operating costs. In recent years the utility has been improving its financial performance by continuing to increase the tariffs in real terms while adjusting the operating costs at a rate slightly lower than inflation. In 1986 and 1987, for instance, SAGUAPAC was able to cover its cash operating costs with its operating revenues. SAGUAPAC's income statements for past selected years are summarized below: Summary of Income Statements (in million of $b pesos) 1980 1983 1986 1987 Revenues Water 40 328 5,046,339 7,585,000 Sewerage 19 168 2,765,037 4,049,000 Other 5 3 22,894 40,000 Total Revenues 64 499 7,834,270 11,674,000 Operating Costs O & M and other 65 732 7,607,445 8,868,000 Depreciation 20 57 4,754,630 5,521,000 Total Operating costs 85 789 12,362,075 14,389,000 Net Income -21 -290 -4,527,805 -2,715,000 Net Income (Excl. Depreciation) - 1 -233 226,825 2,806,000 Exchange Rate 24.5 504.9 1,920,000 2,210,000 ($b per USS) Operating Ratio9 100 147 97 76 5.1.3 Two other factors that contributed to the financial constraints of SAGUAPAC were the high level of accounts receivable and somewhat high level of system losses. The accounts receivable were high throughout the Project implementation period, increasing from 133 days of sales in 1980 to 259 days in 1984, thereafter beginning a declining trend reaching 97 days at the end of 1987. This was a result of the extreme dedication that SAGUAPAC has devoted to improve its operating efficiency. However, the level of accounts receivable of 1987 was still higher than the SAR's target of 60 days. The system losses kept an average level of about 302 during the period and were generally above the estimated target of the SAR. In 1987 the losses were 27Z, similar to the target established in the SAR for 1986, which was the last year of the financial forecast. 5.2 Assets Revaluation 5.2.1 Section 4.03 of the Project Agreement required SAGUAPAC to revalue its assets by the end of each fiscal year, beginning from 1979. The Association was generally unsatisfied with the assets revaluation made by SAGUAPAC, because it was normally lower than the rate of inflation. However, this situation improved in 1985 when the revaluation was based on 9/ Ratio of cash operating expenses to total revenues (definition used in SAR). Some differences that appear when calculating this ratio are due to rounding off.  - 13 - a technical assessment prepared by consultants. In 1986 and 1987, the assets revaluation was done using the index of variation in the exchange rate at the beginning and at the end of the year. which the Association considered satisfactory. 5.3. Need to Improve Future Financial Performance 5.3.1 The need to continue improving SAGUAPAC's financial performance is greater than in the past, because the population has increased substantially in the recent years and service coverage has declined. For these reasons, SAGUAPAC needs to expand the water and sewerage service, which will demand a large amount of resources as counterpart funds to the external loans that SAGUAPAC is seeking. It is also necessary to begin amortizing the Subsidiary Loan Agreement with the Government in October 1989. The original grace period of this loan ended in July 1984, but the Government, with the Association's agreement, extended it to August 1, 1987. The extension of the grace period was done because the Government wanted to compensate SAGUAPAC for various external problems, such as hyperinflation and the suspension in the Credit disbursements, which delayed the Project execution and affected SAGUAPAC's finances. For the same reasons, a second extension in the grace period to April 1, 1988, was agreed in July 1987. SAGUAPAC has asked the Government for a third extension of the grace period to allow it to begin repaying the Subsidiary Loan Agreement in October 1989. The Government is studying this request. 5.3.2 According to recent Bank reports, SAGUAPAC's present water and sewerage tariffs do reflect long-run marginal cost, and are affordable by the urban poorl with minimum cross-subsidy. Therefore, future improvement in SAGUAPAC's finances will most likely come from increases in efficiency and the volume of sales. VI - INSTITUTIONAL PERFORMANCE 6.1 SAGUAPAC 6.1.1 Throughout the Project's implementation SAGUAPAC made substantial improvement in its organization and has evolved into a well-managed utility with high-quality staff. It operates the water supply and sewerage system of Santa Cruz, which in 1987 had a population of about 577,000 inhabitants, with modern technical standards. But there is still room for improving its operating efficiency. 6.1.2 As noted (para. 3.1.9), SAGUAPAC carried out studies under the project to improve its organization, the accounting and internal control system, the procedures for billing, connections, handling of customers' complaints and bidding procedures. These studies were implemented, and the Association and SAGUAPAC agreed that they were important elements for improving its operating and financial efficiency. 101 The bill for 15 m3lmonth of water with surcharge for sewerage service represents less than 1Z of the household income prevailing among the lowest-income segment in the Santa Cruz area. This low percentage reflects the high incomes prevailing in Santa Cruz compared to the national average.  - 14 - 6.1.3 Though the Project suffered from financial problems, basically caused by hyperinflation, that delayed its commissioning by about five years, SAGUAPAC acted satisfactorily under the circumstances in carrying out the Project. The efforts of SAGUAPAC's management and staff were important factors in successfully completing the Project. The betterment in SAGUAPAC's management can be noticed in the improvement that has occurred in 1986 and 1987 in key indicators like accounts receivable. energy losses, operating ratio and in the timely preparation of accounting, operational and budget reports to management. 6.2 Government and CORDECRUZ 6.2.1 The Government's performance was satisfactory, except regarding the approval of SAGUAPAC's ta-4ffs, which was done with delay. However, the Government was flexible in extending the grace period of the Subsidiary Loan Agreement to help SAGUAPAC with for the external problems that it suffered with the hyperinflation and the suspension of Credit disbursements. CORDECRUZ's performance was satisfactory, its contributions to the Project were timely and above the amount estimated in the SAR (para. 3.2.2). It also cooperated from its own resources with a US$1.5 million loan to SAGUAPAC for the Project financing. 6.3 The Association 6.3.1 The performance of the Association can also be judged as satisfactory. It was flexible and timely in accepting changes in the project scope and in assessing compliance with covenants when SAGUAPAC encountered difficult problems due to the hyperinflation and the suspension of disbursements. The decision to continue sending supervision missions, even though the disbursements were suspended, can be regarded as positive, because the Association's staff continued advising the utility on different aspects of the Project's implementation, such as the revision of bidding documents, as well as encouraging efficiency in SAGUAPAC's management and staff, who were receptive to all the Association's advice. VII - LESSON TO BE LEARNED 7.1 The commitment of SAGMtPAC to the Project and the skills of its staff were the driving forces to complete the Project and to achieve, to a great extent, its objectives, in spite of the difficult economic conditions faced by Bolivia during part of the implementation period, coupled with the suspension of the Credit disbursements (on country grounds), from January to August 1984, and from July to December, 1985. The problems were overcome due to the skill and dedication of SAGUAPAC's management and staff who worked tenaciously to solve the difficulties produced by hyperinflation. which brought along staggering increases in construction expenditures and operating costs, the shortage of cash and the high level of accounts receivable. 7.2 Due to the same causes explained above, the Government and SAGUAPAC failed to meet some of the covenants of the Credit Agreement. The Association was flexible in assessing the compliance with covenants and continued sending supervision missions, even in the period when the disbursements from the Credit were suspended. This can be regarded as positive, because the Association continued advising the utility in  - 15 - different aspects of the Project implementation as well as encouraging efficiency in SAGUAPAC's management and staff, which at the end, were important elements that helped to complete the Project satisfactorily. 7.3 In the worst period of hyperinflation (1983-85), due to the drastic and accelerated devaluation of the Bolivian peso and the lag of two or three months between the payments made to the contractors of civil works and the disbursements from the Credit account, the value of the peso equivalent received by SAGUAPAC was significantly reduced. To counteract this problem the Association agreed to create a Special Account to expedite the disbursements of the Credit, which proved to be very useful. 7.4 Seven of the eight SAGUAPAC staff members who received training financed with the Credit proceeds are no longer working in the utility. The cause for this high turn-over was not analyzed by the Bank's staff who supervised the Project. It was most likely due to the low salaries existing in the period, a situation that has improved in recent years. As this seems to be a common problem in training programs, it shouid be studied carefully by the Bank and the Association, in order to find ways that can be recommended to the borrowers to minimize this problem.  ANNEX 1 - 16 - Page 1 of 2 BOLIVIA SAGUAPAC PROJECT COIQLETION REPORT (CREDIT 948) Maior Covenants of the Credit and Prolect ?.greements The performance of SAGUAPAC and the Government under the major covenants of the Credit and Project Agreements of the Santa Cruz Water Supply and Sewerage Project was generally satisfactory, except as noted: Credit Agreement 1) Section 3.01 required the Government to i) cause SAGUAPAC to perform in accordance with the Project Agreement and take all actions, including the provision of funds necessary to enable SAGUAPAC to perform such obligations, ii) relend the proceeds of the Credit to SAGUAPAC under a subsidiary loan agreement to be entered into between the Borrower and SAGUAPAC. Proiect Agreement 2) Sections 2.01 and 3.02 required SAGUAPAC to carry out the Project and manage its affairs with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and public utility practices and under the supervision of qualified and experienced management 3) Section 2.02 required SAGUAPAC to employ consultants satisfactory to the Association to prepare bidding documents and evaluate the bids received, and for carrying out the Part E of the Project. 4) Section 2.03 required SAGUAPAC to prepare a training program by March 31, 1980, present such program to the Association for comments and carry out the program agreed with the Association. 5) Section 2.05 required SAGUAPAC to establish by January 1, 1980, a revolving fund to finance the installation of water and sewer lot lines, house connections, in-house plumbing facilities and meters. These facilities would be financed by loans to beneficiaries over a period of not more than ten years at a rate of interest of not less than 122. This rate should be revised periodically to ensure that the fund had at all times an amount not lower than the equivalent in pesos of the proceeds of the Credit allocated to the fund. (Partially met, para. 3.1.7). 6) Section 2.07 required SAGUAPAC to prepare a progress report on the execution of the Project including monitoring indicators satisfactory to the Association. 7) Section 3.05 required SAGUAPAC to prepare and furnish to the Associations i) not later than December 31, 1979, a statement of SAGUAPAC personnel policy and ii) not later than March 31, 1980, a statement of the procedures to be followed for the internal auditing.  ANNEX 1 -17 - Page 2 of 2 8) Section 3.06 required SAGUAPAC to establish and maintain a planning unit and an engineering unit with functions satisfactory to the Association. 9) Section 3.07 required SAGUAPAC to prepare and furnish to the Associationt i) not later than December 31, 1980, a survey of the waste water disposal and sanitation problems, and ii) a program to solve the problems identified. 10) Section 4.02 required SAGUAPAC to audit its accounts and financial statements by independent auditors acceptable to the Association and furnish to it a certified copy of such statements not later than four months after the end of each fiscal year. 11) Section 4.03 required SAGUAPAC to revalue its fixed assets in service by November 30, 1979, and thereafter revalue such assets at the end of each fiscal year. (Met with delay, para. 5.2.1). 12) Section 4.04 required SAGUAPAC to obtain by June 30, 1980, revenues averaging $b5 per cubic meter of water supplied and billed, and b) an annual rate of return on net revalued fixed assets in service of not less than 1.5S in 1980, 52 in 1981, 5.52 in 1982 and 6Z in 1983 and thereafter. (Rate of return was not met, para. 5.1.1). 13) Section 4.05 required SAGUAPAC not to undertake any investment, other than the investments for the Project, that would exceed the equivalent of US$ 500,000 per annum.  - 18 - BOLIVIA AIZNX 2 SAGUAPAC SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT PROJECT COMPLETION REPORT Appraisal and Actual Timetable of Project Implementation SAR Actual Difference Estimate Completion (in Months) Water Supply Purchase of Pumps and Accesories 12/80 8/86 68 Installation of Pumps 12/80 1/87 73 Storage tack and Pumphouse 4,81 6/87 74 Purchase of Pipe and Accessories 4/82 6/87 62 instalation of Pipe 8/82 6187 58 Water Meters 12/81 9/85 45 Purchase of Pumping Equipment, Accesories and Civil Works for 2 wells -- 4/87 Sever System Treatment Plan and Bypass 4/82 8/86 52 Purchase of Pumps and Equipment 2/81 6/85 52 Construction of Pump Station 4/81 9/87 77 Construction of Emissary 5/81 9/87 76 Construction of Trunk Sewer (d-e) 10/81 3187 65 Construction of Network 12182 10/86 46 Other Components Household Plumbing and Connectionsl 12182 9/87 57 Data Processing 2 12/79 6/81 18 Vehicles 12/79 First Group 8181 20 Second Group 6185 66 Laboratory 12/80 NA Master Plan 12/81 9185 45 1/ SAGUAPAC made 2,734 water and sewerage connections, compared to 8,000 estimated at appraisal. 2/ Include peripheral and accesory equipment.  -19 - ANNEX 3 (Fl le:Costn) BOLIVIA 10-May-90 11:27 PM SAGUAPAC SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT PROJECT COMPLETION REPORT (CREDIT 848-80) Approisal and Forecast Project Costs 1/ (thousand of current US *) _______Appraisal _ --- Actual--------- Local Foreign Total Local Foreign Total Water Supply ____________ Punping system volls and storage tank 86s 782 1090 901 864 1265 Distribution networks 900 1565 2284 480 1891 2821 Water meters 17 407 428 21 382 858 Communications equipment 0 14 14 0 18 18 Vehicles 0 136 186 22 249 271 Wells and parts for water pumps 0 0 0 371 186 06o PipelInes for well interconnection 0 0 0 0 204 204 Equipment for moetr testing and meters' parts 0 0 0 128 123 Sub-Total 1266 2648 3981 1746 8881 6076 Administration 627 0 627 766 0 766 Technical Assistance 0 825 826 U5 0 66 Consultants 0 122 122 77 245 822 Total Water 1915 8000 06os 2646 857 6222 _ - - _ -- - -- _----- - - - - - -- _-- - -- -_- -- -- - Seworage Treate.it plant 462 6s 580 1T92 0 1792 Pumping station, laboratory and em ssary 644 886 1010 769 176 984 Trunk sewer and networks 4921 618 5784 9821 0 9821 Sewer cleaning equipment 0 0 0 2 14 16 Sub-Total 6027 1247 7274 11904 169 12008 Administration 1057 0 1057 768 0 766 Technical Assistance 0 186 186 52 0 52 Cons ultants 0 217 217 111 15 126 Total Sewerage 7064 1599 6668 12685 205 18W40 Other Components Land 800 0 8oo 80o 0 800 Household plumbing 822 1218 1540 887 467 608 Data processing equipment 182 880 471 11 41 62 Total Otbor Components 764 1S55 2811 646 506 1156 TOTAL PROJECT COSTS 0758 6247 16000 18128 4269 20417 1/ Actual costs have been converted Into US dollars at the official exchange rate prevailing at the tim of each transaction.  ANNEX 4 - 20 - BOLIVIA SAGUAPAC SANTA CRUZ WATER SUPPLY AND SEVERAGE PROJECT Actual and Forecast Accumulated Disbursements (In Million of US$) Actual Actual Disbursement as a IDA Total percentage of Appraisal Fiscal year Disburse- Appraisal Estimate (up to latest and Semester ments Estimate half-year) 1979/80 December 31,1979 0.6 0 0 June 30, 1980 2.1 0.1 5 1980181 December 31,1980 4.1 0.1 2 June 30, 1981 5.8 1.6 28 1981/82 December 31,1981 7.0 2.4 34 June 30, 1982 8.2 2.7 33 1982/83 December 31,1982 8.8 3.5 40 June 30, 1983' 9.0 3.8 42 1983/84 December 31,1983 9.0 4.1 46 June 30, 1984 9.0 4.1 46 1984/85 December 31,1984 9.0 4.6 51 June 30, 1985 9.0 5.7 63 1985/86 December 31,1985 9.0 5.9 66 June 30, 1986 9.0 7.6 84 1986/87 December 31,1986 9.0 8.7 97 June 30. 1987 9.0 9.0 100  ANNEX 5 - 21 - BOLIVIA SAGUAPAC PROJECT COMPLETION REPORT (CREDIT 948-BO) SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT Forecast and Actual Loan Allocation (in USS) Category Forecast Actual (1) Equipment, Materials and Vehicles for parts A, B, and D of the Project 3,000,000.00 3,762,366.00 (2) Civil Works 2,100,000.00 3,929,460.02 (3) Goods and Services for Part C of the Project 2,000,000,00 782,587.96 (4) Consultants' Services and Technical Assistance 400,000.00 525,005.93 (5) Unallocated 1,500,000.00 9,000,000.00 8,999.419.91 1 1l The balance of $580.09 was cancelled.  ~~~~~~~~~2 - ., - 22 - AMX 6 (Ff l:ROR3-*q) DOLIVIA 0O-JuI-89 08:54 PM AUPAC PROJECT COMPLETION REPORT (CR.948-OW) SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT Rate of Retuen oInv etment (mli Ion of Sol viones as of md-loU?) Revenue from Capital TOTAL Terlffs Other MOTAL Net Years Expand. 0 & V COSTS Water Sewerage Revenues IIENITS 8nfits 6/ cX / d/ e/ 1070 10n 1.1 1.7 0.0 -1.1 1061 4.2 4.2 0.0 -4.2 1912 7.0 0.5 J.1 0.8 o.$ 0.2 1.8 -8.6 1083 3.9 0.0 4.5 1.0 0.8 0.3 1.6 -8.0 1904 5.5 0.8 0.1 1.3 0.7 0.4 2.4 -8.7 1to" 9.5 1.1 10.0 1.6 0.8 0.5 2.0 -7.0 1908 10.0 1.2 11.2 1.9 0.0 0.6 5.2 -7.9 10? 2.2 1.4 3.0 2.a 1.2 0.7 4.1 0.4 lo" 1.4 1.4 2.3 1.2 0.7 4.1 2.6 i10 1.4 1.4 2.3 1.2 0.? 4.1 2.0 1900 1.4 1.4 2.8 1.2 0.7 4.1 2.0 1991 1.4 1.4 2.8 1.2 0.7 4.1 2.0 1092 1.4 1.4 2.3 1.2 0.7 4.1 2.6 1093 1.4 1.4 2.3 1.2 0.? 4.1 2.6 1034 1.4 1.4 2.8 1.2 0.7 4.1 2.6 1995 1.4 1.4 2.8 1.2 0.7 4.1 2.0 10S6 1.4 1.4 2.3 1.2 0.7 4.1 2.0 109 1.4 1.4 2.3 1.2 0.7 4.1 2.6 10031 1.4 1.4 2.8 1.2 0.? 4.1 2.6 199g 1.4 1.4 2.3 1.2 0.7 4.1 2.6 2000 1.4 1.4 2.8 1.2 0.7 4.1 2.6 2001 1.4 1.4 2.8 1.2 0.? 4.1 2.6 2002 1.4 1.4 2.8 1.2 0.7 4.1 2.6 2003 1.4 1.4 2.3 1.2 0.7 4.1 2.6 2004 1.4 1.4 2.3 1.2 0.? 4.1 2.6 2005 1.4 1.4 2.3 1.2 0.? 4.1 2.0 2000 1.4 1.4 2.8 1.2 0.7 4.1 2.6 2007 1.4 1.4 2.8 1.2 0.? 4.1 2.0 2006 1.4 1.4 2.8 1.2 0.7 4.1 2.6 2000 1.4 1.4 2.3 1.2 0.7 4.1 2.6 2010 1.4 1.4 2.8 1.2 0.7 4.1 2.6 2011 1.4 1.4 2.8 1.2 0.7 4.1 2.0 2012 1.4 1.4 2.3 1.2 0.7 4.1 2.0 2018 1.4 1.4 2.8 1.2 0.7 4.1 2.0 2014 1.4 1.4 2.3 1.2 0.7 4.1 2.0 2015 1.4 1.4 2.8 1.2 0.? 4.1 2.0 2016 1.4 1.4 2.3 1.2 0.7 4.1 2.0 2017 1.4 1.4 2.8 1.2 0.7 4.1 2.6 Rate of Return (0) 4.90 .1 Exclude financial charges. b/ Calculated with mid-1997 0 A M costs of 3S.0.17/*3 for water end 9s.0.10/m3 for se erage. c/ Calculated with oid-1907 tariff of Bs.0.6/m3. d/ Calculated with mid-1907 tariff of 8s.0.4/m3. */ correspond to the surcharge for recovery of investment of 20% of the water and sewerge monthy bills.  0--q sew~m -q - 0-!W0.or - -to wwow-f
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