Niger - Water Supply Project

Document of The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No. 10413 Report No. 10413-NIR Type: (PCR) TWEDDLE, E/ X31707 / T9073/ OEDD3 PROJECT COMPLETION REPORT NIGER FIRST WATER SUPPLY PROJECT (CREDIT 1309-NIR) FEBRUARY 28, 1992 Infrastructure Operations Division Sahelian Department Africa Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY AND EQUIVALENTS Currency Unit = CFAF 1/ US$1.00 = CFAF 260 2/ CFAF 1,000 = US$ 3.84 SDR 1 = US$ 1.0656 2/ FISCAL YEAR Government of Niger = January 1- December 31 NIGELEC = January 1- December 31 OFEDES - October 1- September 30 WEIGHTS AND MEASURES Cu.m Cubic Meter ( 1 cu.m = 264 Imp Gallons) ABBREVIATIONS AND ACRONYMS CCCE Caisse Centrale de Cooperation Economique IDA International Development Association ILO International Labor Organization KFW Kreditanstalt fur Wiederaufbau MH Ministry of Hydraulics NIGELEC Societe Nigerienne d'Electricite OFEDES Office des Eaux du Sous-Sol PPF Project Preparation Facility SNE Societe Nationale des Eaux UNCDF United Nations Capital Development Fund UNDP United Nations Development Program UNDTCD United Nations Department of Technical Cooperation in Development WHO World Health Organization 1/ The CFA Franc (CFAF) is tied to the French Franc (FF) in the ratio of FF 1 to CFAF 50. 2/ As of 9/15/90  FOR OFmFCIAL USE ONLY THE WORLD BANK Washington. D.C 20433 US.A. Office of Directot-Ceneral Opetais Evaluation February 28, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJErT: Project Completion Report on Niger First Water Supply Proiect (Credit 1309-NIR) Attached, for information, is a copy of a report entitled "Project Completion Report on Niger - First Water Supply Project (Credit 1309-NIR)" prepared by the Africa Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment 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 WorL1 Bank authorization.|  FOR OFFICIAL USE ONLY NIGER FIRST WATER SUPPLY PROJECT (Credit 1309-NIR) PROJECT COMPLETION REPORT Table of Contents Page No. Preface . . . ... ........... ........... ........... ............. ....... . i Evaluation Summary . . . . . . . . . . . . .. . . . . . . . ii PART I: PROJECT REVIEW FROM BANK'S PERPESPECTIVE . . . . . . . . 1 A. Project Identity . . . . . . . . . . . . . . . . . . . . . . . 1 B. Introduction . . . . . . . . . . ...... . . ........... 1 C. Project Objectives and Description . . . . . . . . . . . . . . 2 D. Project Design and Organization . . . . . . . . . . . . . . . 4 E. Project Implementation . . . . . . . .......... . . . . . . . . 4 F. Project Results . . . . . . . . . . . . .... . . . . . . 6 G. Institutional Improvements . lmprov..me.. . . n.s...... 6 H. Project Sustainability . . . . . . . . . . . . . . . . . . . 7 I. IDA Performance . . . . . . . . . . & .. . . .... ...... 7 J. Borrower Performance. . ....... * **....... 8 K. Project Relationship . . . . ... ... . ....... . 9 L. Consulting Services ... . . . . . '. ...... 9 M. Project Documentation and Data . . . . . ........ . . . 9 PART III. STATISTICAL INFORMATION. . . . . . . . . . . . . . . . 10 A. Related Bank Loans/IDA Credits . . . . . . . . . ... . . . . . 10 B. Project Timetable . . . . . . . . . . . . . . . . . . . . . . 10 C. Credit Disbursement . . . . . . . . . . . . . . . . . 11 D. Project Implementation . . . . . . . . . . . . . . . . . . . 12 E. Project Costs and Financing . . . . . . . . . . 13 F. Project Results . . . . . . . ......... . . . . . . . . . 14 G. Status of Project Covenants . . . . . . . . . . 15 H. Mission Data . . . . . . . . . . . . . . . # . . 17 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.  NIGER FIRST WATER SUPPLY PROJECT (Credit 1309-NIR) PROJECT COMPLETION REPORT PREFACE This is the Project Completion Report (PCR) for the First Water Supply Project in Niger for which Credit 1309-NIR in the amount of SDR 6.1 million (US$6.5 million) was approved on December 14, 1982. The Credit closed on June 30, 1988 (the original closing date was June 30, 1986). The undisbursed balance of SDR 234,839 has been cancelled. This was tbe first operation by the Bank Group in Niger's Water Supply Sector. The United Nations Development Program provided cofinancing in the amount of US$1.05 million. The Preface, Evaluation Summary and Parts I and III of the PCR were prepared by the Infrastructure Division, Sahel Department, Africa Region. A request to the Borrower to prepare Part II of the report was sent on April 11, 1989. No reply has been received from the Borrower. This PCR has been based, inter alia, on the Memorandum of the President to the Board on the Project; the Development Credit and Project Agreements; supervision reports; correspondence between IDA and the Borrower and internal IDA memoranda.  - ii - NIGER FIRST WATER SUPPLY PROJECT (Credit 1309-NIR) PROJECT COMPLETION REPORT EVALUATION SUMMARY A. Proiect Objectives 1. The objectives of IDA's first support to Niger's water supply and sanitation sector were to: (a) assist the Government to undertake studies leading to the strengthening of the institutional framework of the sector; (b) reinforce the management and operations of sector institutions through technical assistance; (c) improve sector planning and enhance its financial autonomy; and (d) support the Government's efforts to undertake the most urgent rehabilitation of the existing water supply facilities. B. Implementation Experience 2. The project got off to a slow start due to the unfamiliarity of Government officials with IDA procedtures, personnel changes within the Government and administrative bottlenecks within the Government machinery in contract processing. These led to a two-year delay in project completion (paras 9 and 11). 3. The project implemented was substantially as appraised except that more distribution extensions for Niamey were financed by the Credit because of funds freed when bilateral funding became available for the rehabilitation of water production facilities. Inspite of the two-year delay in project completion, project cost expressed in US dollars did not vary much from the appraisal estimate due to the devaluation of the CFAF against the US$ in the course of project execution (para 10). 4. IDA facilitated dialog between the Government, the implementing agencies, consultants and UNDP which cofinanced the project. Project supervision was regular except for for a 15 month hiatus coinciding with the period of the reorganization. Project implementation was substantially aided by the inputs of consultants in training, design supervision of works and studies (paras 15, 24 and 25).  i.ii - C. Prolect P.esults 5. The results of the project were mixed. Notwithstanding the completion delay, the project made a substantial contribution to the inFtitutional development of the water supply sector: the project led to the consolidation of the responsibility of all urban water supply under a single entity--the newly created Societe Nationale des Eaux (SNE); it led to an upgrading of the skills of sector staff and it also contributed to improving the physical facilities of the water supply system. However, the financial autonomy of the water supply sector has not improved, primarily because of the reluctance of the Government to raise water supply tariffs in the light of macro-economic and political constraints and the failure of the administration to pay for water bills (paras 14 and 15). D. Lessons Learned 6. The principal lessons learned from the experience of this project are that: (a) in cases of initial operation in a sector, project preparation and appraisal missions should put an emphasis on explaining Bank Group procedures to officials in order to minimize startup delays; (b) a careful review of the procurement process within project implementing agencies and measures to remove any administrative bottlenecks is essential for smooth project implementation; (c) without a cost-recovery policy which ensures the financial autonomy of the sector, any institutional strengthening effort is, at best, a half-hearted attempt; (d) where settlement of Government utility bills is a chronic problem it may be advisable to insist that the annual budget of the Government provide adequately for such bills and that adequate safeguards be put in place for the timely release of these funds to the utilities; (e) frequent supervision missions with the full complement of skills facilitate project implementation.  NIGER FIRST WATER SUPPLY rROJECT (Credit 1309 - NIR) PROJECT COMPLETION REPORT PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE A. Proiect Identity Project Name: First Water Supply Project Credit No. : 1309-NIR RVP Unit : Africa Region Country : Niger Sector : Water Supply and Sanitation ubsector : Water Supply B. w atroduct- a 1. . s completion report is a retrospective look at IDA's maiden intervenzion in the Water Supply and Sanitation sector in the Republic of Niger. IDA's involvement with the sector in Niger began in February 1981 when the Government invited representatives to participate in a donor's conference held at that time. An identification mission visired Niger in March 1981 and a pre-appraisal mission followed in september 1981. 2. At the outset, all the various water-related IDA missions to Niger were unanimous in the perception that financial assistance from the donor community to develop Niger's water slipply sector, while being ample, was not being effectively utilized. The reason for this was a number of severe constraints. The primary sector development constraint was the lack of coordination within the Government. Responsibilities for water sector development were dispersed among a multitude of public agencies without any apparent rationale. The second factor hindering the development of the sector was a financial one: the operating agencies did not generate sufficient revenues to enable them to maintain the sector installations, let alone to make any contribution to the financing of the water sector investme%nt program. The agencies were, therefore, obliged to go to the central Government for subsidies to cover operating lesses. These subsidies were, however, infrequent and insufficient and as a result water supply service deteriorated. Thirdly, there was an absence of skilled sector personnel in adequate numbers thus limiting the ability of the agencies to properly plan for, execute the constructior. of, operate and maintain water supply installations.  -2- 3. Against this backdrop, and with the encouragement of Niger's head of state, sector officials commissioned consultants to undertake a sector organization study with a view toward obtaining recommendations for rationalizing the sector. The pre-appraisal missior. that visited Niger around the period the sector study was about to be awarded surmized that the time allocated to the study and the scope, as then conceived, would not permit an in-depth analyLis of all of the sector's organizational and financial issues. It made recommendations, therefote, that a more detailed study encompassing the elements described above be carried out at a later date. C. Proiect Obiectives and Description 4. IDA's principal objective in preparing the First Water Supply Project in Niger was to assist the Government undertake studies leading to recommendations for strengthening the institutional framework of the sector; improving the financial and technical management of the sector and to rationalize the plarning of sector activities while concurrently ensuring the maximum utilization of the existing water supply infrastructure. The project, therefore, sought in the long term to prepare a financially viable and autonomous sector entizy and, in the short term, to help build up existing agencies in order to achieve improved operations and succesful transfer of their responsibilities. 5. With the objectives as described above the project comprised: (a) Technical a,v.sistance (17 man-years) (i) Eight man-years of a planner and two hydrogeologists to set up the Ministry of Hydraulics' regionalized services for the planning and supervision of rural water supply projects and to permit on-the- job training for the counterpart Nigerien staff who would subsequently take over the expatriates' responsibilities; (ii) 4.5 man-years of 3 technicians (a stores supervisor, a garage mechanic and a works superintendent) to strengthen OFEDES' logistic sections and to train and assist lonal officials; and (iii) 4.5 man-years of a commercial officer, a water distribution technician and a meter technician to reinforce the water supply operations of NIGELEC. (b) Consulting Services and Studies (10 man-years) (i) an inventory of water and power connections in NIGELEC's Niamey operations;  -3- (ii) feasibility studies to restructure sector entities and to advi se on the establishment of a national water supply service and the establishment of manpower requirements; (iii) feasibility and engineering design for follow up rural/urban water supply projects; (iv) detailed design and supervision of priority measures financed under this project (items under (d) below); and (v) development and implementation of financial and cost-accounting systems for OFEDES. (c) Training and Complementary Education (32 man-years) (i) Three man-years of a water specialist training officer to strengthen the curriculum and activities of NIGELEC's traning center and of the health schools; and 4 man-years of additional overseas training for accounting, financial and technical junior staff, together with equipment and material for the training of the water supply branch; (ii) about 25 man-years of scholarships for: (a) educating students and postgraduate nationals in regional African or overseas university- level schools focussing on water supply activities; and (b) enabling MH technical staff to complement their engineering training in the water supply field. (d) Investments (i) Construction of regional offices and workshops and supply of related equipment and vehicles for decentralizing MH's services; (ii) Reinforcem.-it of the Niamey and Dosso water supply schemes by upgrading the treatment plants in Niamey, drilling and equipmen t of boreholes, construction of a reservoir and extension of th e distribution network in Dosso; (iii) Provision of production and domestic meters and equipment and construction of meter maintenance workshops for the NIGELEC water operations; (iv) Provision of derricks, tow trucks and grab-buckets for OFEDES' maintenance operations.  -4- D. Prolect Design and Organization 6. It was clear at the outset that the primary problem of the water supply sector in Niger was an institutional one. Given the lead time required to achieve any meaningful institutional improvement and the paucity of qualified sector persoanel, it was evident that assistance from th^ Bank Group would need to proceed in stages if it was going to have any impact on the sector in Niger. In view of this the strategy adopted by IDA to assist Niger's water supply sector in stages was a good one. 7. The first stage of IDA intervention was o form the backbone for the projec'.,. It was to cormiprise, as its primar o ponent, a detailed water sector institutional study. This, it was hope. * .uld lead to the initiation of action to consolidate responsibility for the planning, operation and maintenance of the sector. Concurreaitly, the first pz-ojecc sought to gain immediate improvements in the three agene-ies involved in the sector--namely the Ministry responsible for water development (then called the Ministry of Hydraulics and Environment); NIGELEC, t}e electricity coa4ipany which elso provided water supply service in the conms with electricity service; and OFEDES, the borehole drilling and well construction company which was also responsible for the operation and maintenance of a few rect"-ulated water systems in the urban centers where NIGELEC did not operate. In this manner, the overriding concern of sector institution building was to be tackled while concurrently the most immediate rehabilitation needs of the sector were to be addressed by the project through a relatively modest financial commitment. 8. The scope of the project W43 appropriate in the light of the objectives it sought to achieve namely to rationalize and consolidate the water supply sector in Niger. It was timely in the sense that it came during a period when the Government itself had come to the realization that the water sector lacked the institutional capacity to undertake the massive investment program necessary to meet its objectives for the sector. All three organizations with significant responsibility in the sector were included in the project so that a comprehensive framework for institutional restructuring could be established. In this way, the sector organization study was able to encompass the planning and regulatory agency as well as the sector operating agencies. E. Project Implementation 9. The imilementation of the project got off to a slow start. The Credit which was approved by the Board in December 1982 did not become effective until January 1984. The main reason for this delay was the unfamiliarity of the key sector personnel with Bank Group procedures as well as delays within the Nigerien administration in obtaining the necessary legal and administrative clearances. In retrospect, it would have been useful for the Bank staff involved in project preparation and appraisal to provide more information o-& Bank requirements and procedures given the fact that for the majority of the Nigerien staff concerned, this was their first contact with  a Bank project. It is doubtful, however, that any time savings in the delay referred to would nave been enough to offset the effects of the bureaucratic delays. which, affected rot only pro,ect star6up but also subsequent implementation. L1. The principal difference between the project as implemented and the one appraised is that, at the Government's request, the component for the rehabilitation of the Yantala treatment plant (US$ 800,000) was deleted from the IDA financed program because grant financing from German bilateral assistance became available - the Government had apparently sent requests for financing to both IDA and German bilateral aid for the same component at the time the Credit was being processed. The IDA funds so freed were used to finance more distribution extensions in Niamey. In addition, the project actually executed included financing for the feasibility study for the expansion of the Niamey water supply system. In retrospect, this feasibility study should have been included in the IDA financed project at the inception of project preparation given its importance and the lead time required for such studies. This oversight is, however, excusable considering that at the time of project preparation the primary emphasis was on institutional strengthening. At any rate, the initial omission did not have any adverse effect on the project or the development of the sector because of the depreciation of the CFA Franc relative to the US dollar during project implementation, final ptoject cost, expressed in US dollar terms, did not vary much from the appraisal estimate. 11. The s, swness in decision making or at leas.. in the transmission of the results of cisions made by the Nigerien administration was an important factor which affected project execution adversely. For instance, the bidding documents for the expansion of the Dosso water supply system were still officially not issued more than a year after NIGELEC, its consultants, technical staff of the Ministry of Hydraulics and the Bank had reached agreement on the draft copy. Project completion was delayed as a result. In retrospect, this eventuality could not have been foreseen and, therefore, very little could have been done to forestall it either before or during project implementation. 12. Quite apart from the slowness in decision making there was the problem of the shortage of counterpart staff with the requisite training to enable sector authorities take full adva.ntage of the project. For instance, the technical assistance for setting up decentralized offices of the Ministry of Hydraulics in Maradi and Zinder was not fully utilized because the Nigerien authorities were slow in assigning counterparts to be trained in decentralized sector planning. While this was due, in part, to the paucity of personnel with the requisite skills, it was also doubtlessly due to the ponderous nature of decision making within the Government bureaucracy.  -6- F. Project Results 13. The results of the project can be described as mixed. On the one hand, the primary objective of undertaking studies leading to recommendations for a strengthened and more rational sector institutional framework was achieved. The training program and the technical assistance to improve the management of the sector were also largely successful and resulted in the techniical management of the sector being improved significantly. The physical components of the project were also substantially achieved leading to noticeable improvements in the water supply service obtained from the sector installations existing at the time of the appraisal. On the other hand, the sector's financial autonomy did not fare any better as a result of thie project. This situation is due to the fact the Niger Government has been and continues to be extremely reluctant to adopt adequate cost-recovery policies in a sector which the Government considers to be social such as water supply. G. Institutional Improvements 14. The primary aim of the project was to assist the Government to carry out studies leading to the avoidance of the fragmentation and dispersal of responsibilities of the water supply and sanitation sector. The consultant cbosen for this study made alternative rscommendations for a strengthened sector ranging from a fully privatized water supply through a mixed private/public company to a state-owned but autonomous agency with full responsibility for sector investment as well as for operation and maintenance. These recommendations were discussed at length between the Government and IDA. Given the little likelihood of attracting private sector participation, the Government opted to create a national water supply company vested with the responsibility for construction and operation of urban water systems. The national water supply company created, Societe Nationale des Eaux (SNE), came intu existence in September 1988 and started operations in January 1989. As of that date, SNE assumed responsibility for the planning and execution of all urban water supply investments. This was previously exercised by the Ministry of Hydraulics. SNE also became responsible for the operation and maintenance of all urban water supply systems. These latter responsibilities were previously dispersed among NIGELEC, the electricity company and OFEDES, the drilling and well maintenance company. This consolidation of sector responsibilities in a single agency resulted in a strengthened sector. 15. The technical assistance program of the project resulted in considerable strengthening of the water supply sector. Billing and collection procedures of the urban water system is much better than it was before the project. OFEDES' accounting system has also improved. Decentralized planning in the regions of Maradi and Zinder has been successfully introduced, by and large, resulting in improved sector operations. Decentralized planning would have been even more effective had the counterpart staff been assigned on time (para 12). While the actual  training program carried out, both on the job and outside, was less than what was envisaged, the results were largely successful as there are now more highly skilled sector operating staff than at the time of appraisal. H. Project Sustainability 16. The project's principal benefits have been in: (a) establishing an institutional framework which sets the pace for the rationalization and consolidation of the water supply sector; and (b) strengthening the management and staff of the water sector institutions to enable them sustain a reasonable level of water supply service to the population. 17. In order to reinforce these benefits, the Government will need to adopt a more rational cost-recovery policy based on the need for ensuring the financial integrity of the sector. In addition, the Government would have to institute a mechanism for regular payment of water bills in order not to jeopardize the liquidity of the operating entities. I. IDA Performance 18. Through its involvement in project preparation, appraisal and supervision, IDA made a constructive contribution to the development of the water supply and sanitation sector in Niger. IDA was instrumental in facilitating dialogue between the Government, project executing agencies, consultants and contractors. IDA remained firm when the Government wanted to deviate from the procurement guidelines thus ensuring the integrity of the project. IDA maintained supervision at regular intervals (6-8 months) except during the period of reorganization when there was a 15 month period without supervision. Due to staffing constraints, project supervision for the first two years of implementation comprised of technical staff only and, hence, lacked a full review of the financial aspects of project implementation. In retrospect, project execution and the success of the project could have been strengthened if the following lessons learned from the project could have been internalized: (a) considering that this was the first IDA operation in the o:ector in Niger, IDA should have perhaps spent a little more time to explain to the project implementation authorities the requirements for projects to be declared effective. While this would not have completely removed the startup delay in the case of this project (key changes in Government accounted for part of the delay), it would have attenuat ed the effect; (b) appraisal missions should carefully review Government procuremen1. procedures particularly with regards to the different levels of contract review and the approximate time it takes to obtain the necessary clearances for contracts to be signed once the basic agreement in principle has been obtained and make ipropriate recommendations for removing potential roadblocks;  -8- (c) in cases where the settlement of bills owed by Government agencies to utilities is a chronic problem, agreements related to Bank projects should ensure that adequate provision is made in the annual public sector budget for these bills and that an acceptable pay-nent system is put in place before a project is declared effective; (d) frequent supervision missions comprising the full complement of technical, financial, institutional and training skills are essential for effective project implementation. J. Borrower Performance 19. The overall performance of the project's beneficiaries--the Government, NIGELEC and OFEDES--is best described as mixed. As far as Government performance is concerned, on the one hand, the components directly under its control-technical assistance in training, planning, studies on sector restructuring and reinforcement of water supply systems were satisfactorily carried out. On the other hand, the Government was slow in taking action to get the project declared effective and in processing contracts; and, it was tardy in assigning counterpart staff to the decentralized centers of Maradi and Zinder, thus not fully utilizing the technical assistance provided. Most importantly, the Government did not take the necessary action to ensure the financial autonomy of the sector operating entities. 20. NIGELEC successfully carried out both the physical and technical assistance components of its portion of the project and its audit reporting was timely and of consistently good quality. 21. OFEDES was also able to carry out its portion of the project successfully although the level of technical assistance needed was considerably more than envisaged in the course of project preparation. Its audit reporting was sporadic and the quality of the audits was adequate. The reason for the relatively weaker performance of OFEDES compared to NIGELEC is its generally lower level of technical and managerial skills compounded by a lack of continuity in the key management. For instance, in the course of project execution, OFEDES went through as many as three different director generals. The resulting discontinuity adversely affected progress of implementation of OFEDES' portion of the project as, with each change, time was lost in getting the chief executive sufficiently familiar with the project. 22. From the experience of this project, the main lessons that can be gleaned by the borrower are that: (a) streamlining procurement procedures so that contracts already cleared can be signed without undue delay is essential for timely project completion; and  -9- (b) a cost-recovery policy which ensures the financial autonomy of sector operating entities is long overdue; and, furthermore, such a policy will need to be backed up with a budgetary process which provides adequate funds for Government agencies to pay utility bills. K. Project Relationship. 23. Throughout the preparation and execution of the project, the relations between IDA, the Government and the project executing agencies remained cordial. 24. In addition, relations between IDA en.d UNDP, which financed the planning and institutional assistance to the Government, were good and mutually supportive. However, in its evaluation of the UNDP component of the project, UNDTCD (acting as evaluation consultants for UNDP) was very critical of both IDA performance and that of the consultants who carried out the planning and institutional assistance. These criticisms, however, did not appear to have any solid foundation. One of the principal recommendations of the evaluation report was for a follow-up technical assistance project to be executed by UNDTCD. The support for this recommendation may have influenced the criticisms. L. Consulting Services. 25. Project implementation was substantially aided by the inputs of consultants who assisted the beneficiaries in institution building, design and supervision of works as well as in training of staff. There was considerable transfer of knowledge from the consultants to the beneficiaries of the Credit. Because of a greater need for technical assistance to design management systems and train staff in using these systems, actual disbursement for consultants were about 70 percent higher than estimated. Cooperation between the consultants and the beneficiaries was good. M. Project Documentation and Data. 26. The President's Report served as a useful basic document for supervision and the project implementation units. Since this was an engineering project, an appraisal report was not prepared. It would, therefore, have been useful to have a separAte document detailing project working papers, underlying assumptions and other implementation data for the use of the beneficiaries and IDA supervision missions.  - 10 - NIGER FIRST WATER SUPPLY PROJECT CREDIT 1309-NIR PART III: STATISTICAL INFORMATION A. Related Bank Loans/IDA Credits 27. None. This project was the first operation by the Bank Group in Niger's Water Supply Sector. An IDA PPF in the amount of US$330,000 was granted to the Government on June 18, 1982 to finance: (a) detailed design for the expansion of the water supply systems of Niamey and Dosso; (b) study for increasing the capacity of the Niamey water treatment plant; (c) establishment of general accounting systems in OFEDES; and, (d) the preparation of an inventory of water and power connections in Niamey. B. Project Timetable Table 1: Planned, Revised and Actual Dates of Project Timetable Planned Revised Actual Identification 03/81 03/81 Preappraisal _ 03/81 _ Appraisal 11/81 _ 11124/81 Negotiations 04/82 06/82 10/07/82 Board Approval 07/82 10/82 12/14/82 Credit Signature _ _ 06/13/83 Credit Effectiveness 03/83 03/83 01/31/84 Project Completion 12/85 12/87 12/31/88 Credit Closing 06/86 06/88 02/14/89  - 11 - Comments on Prolect Timetable 28. The project was appraised in November 1981. Negotiations took place in Paris on October 7-8, 1982 and Board Presentation took place on December 14, 1982. This remarkable project processing schedule was, however, marked by delays in subsequent steps. 29. For instance, project signing took place six months after Board Ar,proval and the project did not become effective until January 31, 1984 some 13 months after Board approval notwithstanding the urgency accorded the project by the Government. The reasons for these delays was slowness of the Nigerian bureaucracy--a reason which appears to play an important role in the execution of subsequent project steps. 30. The closing date of the project was postponed, on two occasions, at the request of the Government. Thc initial request was to postpone the closing date by a year (from June 30, 1986 to June 30, 1987) in order to allow for: the completion of the water supply system at Dosso; completion of water sector restructuring study and the feasibility study for the expansion of the Niamey water supply system; further tecThnical assistance to NIGELEC and well as the contiiuation of intermediate and higher level training program. The second postponement also by 12 months was again to allow for the completion of the works at Dosso as well as for the completion of the purchase and renovation of the headquarters for the national water supply company and for additional technical assistance to strengthen OFEDES accounts. C. Credit Disbursement Table 2: Cumulative Estimated and Actual disbursements (SDR million) FY Appraisal Actual Actual Estirate Disbursement as Z Apr 83 0.47 0.00 0 84 2.81 0.76 27 85 5.63 1.36 24 86 6.10 2.12 35 87 - 3.66 60 88 _ 4.97 81 89 - 5.87 96  - 12 - Date of Final Disbursement: February 14, 1989. Comments on Disbursements 31. An amount of SDR 234,839.15 being the undisbursed balance as of the date of last disbursement was canceled. Following the closing date, the Government presented a disbursement request no. 285-BIS for CFAF 16.9 million which was returned unpaid. 32. Disbursement lagged primarily because of the slow implementation of the project especially during startup which was the result of bureaucratic delays on the part of the Government in processing items such as contract awards. D. Project Implementation Table 3: Planned and Actual Completion Dates Planned Actual Months Completion Completion Delay Technical Assistance To Ministry of Hydraulics December 1985 December 1986 - To NIQELEC June 1986 June 1987 24 To OFEDES October 1984 Jun. 1988 32 Consulting Services and Studies Inventory of Connections February 1983 March 1984 14 Sector Restructuring and Manpower August 1983 December 1987 and Training Assessment February 1984 December 1987 Audit Accounts and Internal Audit June 1984 June 1988 Set-up Detailed Design and Supervision Traininc Graduate and Post Graduate Training December 1986 August 1987 Complementary Training April 1986 June 1986 Secondment of Trainers at CMEE April 1986 June 1988 Accounting, Financing and Technical October 1986 August 1987 Training Investments Construction of Offices and Workshops October 1983 December 1987 C Meter Supply April 1984 December 1984 Niamey Treatment and Distribution Works May 1984 March 1988 Dosso Production and Distribution Works June 1984 June 1988 Well Maintenance Equipments October 1983 December 1984  - 13 - E. Proiect Costs and Financing Table 4: Actual and Estimated Proiect Costs l T USS (000) -___________ _ Estimated Actual Differenc- T<chnical Assistance UNDP financed 1200 1066 -llX IDA financed B00 Consulting Services and Studies 1070 3220 72% Training 630 270 -49% Water Supply Investments also 3700 1ex Contingencies 1440 TOTAL 1 8220 8266 ON  - 14 - F. Project Results Table 5: Allocation of Credit Proceeds (SDR) Category Allocation Actual Actual | _______________________________ Disbursement Allocation (%) (1) Consultant's and expert's 1,650,000 2,762,811 187 services (2) Training and education 470,000 228,126 47 assignments abroad; training *qulpment (3) Goods 1,600,000 598,488 40 (4) Civil Works 1,310,000 2,140,818 1683 (6) Refunding of project preparation 310,000 152,151 49 advance (6) Unallocated 860,000 234,839 0 TOTAL 100,000 8,100,000 100 !/ The amount remaining an of the 2/14/89 lost disbursement date was concelod.  - 15 - G. Status of Credit Covenants Table 6: Comnliance with Credit Covenants SECTION/COVENANT J STATUS OF COMPLIANCE A. Development Credit Agreement l Subsidiary agreement of Complied. 3.01(b) Government with NIGELEC and OFEDES to be submitted to IDA __|| 3.02 Employment of consultants Complied. All consultants were satisfactory to IDA engaged in accordance with IDA guidelines. 3.04(a) Construction documents to be Complied. submitted to IDA 3.04(b) Quarterly reports to be Complied. submitted to IDA I 4.03(a) Government to cause NIGELEC Complied. and OFEDES to maintain separate project accounts. 4.03(b) Audited accounts of projects Partially complied with. All and implementing agencies to NIGELEC accounts were submitted on be submitted to IDA. time. OFEDES accounts for 1983-1985 submitted on time and late thereafter. 4.05 Government to cause NIGELEC Implemented in October 1984. to establish not later than June 30, 1983 a separate Water Supply Department to be responsible for water operations. ._11 4.06(a) Government to carry out Complied in essence. Study was sector restructuring study completed in December 1985. by December 31, 1983. 4.06(c) Plan of action for sector Complied. restructuring to be submitted to IDA. l 4.06(d) Government to carry out Complied. National water company sector restructuring established in April 1988. following recommendations of study in 4.06(a).  - 16 - 4.08(a) Government to take action to Complied. New tariffs put into increase water revenues by effect in January 1983 were not less than 20Z by sufficient to raise revenues for March 1, 1983. 1983 by 20Z. 4.08(b) Government to provide Partially complied. subsidies to NIGELEC and OFEDES to cover deficits from water operations. 4.09(a) Government to take action to Partially complied. A 12t tariff ensure that starting in 1985 increase was implemented in January revenues from water tariffs 1985 which enabled NIGELEC to cover would be sufficient to cover the required expenses in 1985 in all operating expenses, subsequent years is sustained taxes, depreciation and deficits. Water tariffs have not l_______ interest charges. chanRed since 1985. 4.09(b) Government to provide funds Partially complied. to uFELES for the maintenance of rural wells and boreholes not reimbursed by users on municipalities. 4.10(a) Government to ensure that Partially complied. Receivables accounts receivable from outstanding over 4 months were water activities of NIGELEC eliminated in 1984 (see below) but and OFEDES do not exceed the then began to build up again equivalent of four months thereafter. l _______ sales. 4.10(b) Government to provide a plan Essentially complied. Government of action by was able to reduce outstanding December 1, 1983 ensuring receivables owed to NIGELEC within elimination of Government four months in 1984 but this was arrears to NIGELEC for water made possible only because of a consumption outstanding by loan from CCCE. more than four months.  - 17 - H. Mission Data Table 7: Mission Data j~ ~~~~~_________ .=. = . ._________ _- Item ~ Io./Ye-r No. of Mission Man Status Problems Date of Porsons Composition Weks Report _| icdentification 03/a11 2 S 4.0 04/22/81 Preoaration 07/78 2 H.E 2.0 10/81/78 d/ Appraisal 11/81 2 S,F 4.0 01/04/82 e/ Post-Appraisal 03/79 1 H 1.0 08/01/79 Pre Negotiations 08/79 2 H,E , .5 08108179 Supervision I 06/88 1 S - .1C_, 07/28/83 Supervision 2 03/84 1 S __ _o 04/12/84 Supervision a 10/84 2 S.T 2.0 _02/06/86 Supervision 4 08/85 2 S.F 2.0 08/02/86 Supervision 5 10/85 1 S 1.0 12/24/86 Supervision 6 02/88 1 S 3.0 04/14/86 Supervision 7 10/86 1 S 1.0 10/27/__ SuDervision 8 03/88 2 S.F 2.0 04/16/88 Supervision 9 02/89 2 S.F 2.0 j 04/04/89 Comments on Project Implementation 33. The project was modified to include financing of the future headquarters of the new water supply company. The purchase and renovation of the building was completed in december 1987. 34. Due to delays in startup and in the signing of the contract for the Dosso water supply system, completion of this phase was about 4 years behind schedule. 35. The contract to provide technical assistance to OFEDES was extended to June 1988 to allow for the setting up of an analytical cost accounting system and the training of staff to use the improved accounting system. Comments on allocation of Credit Proceeds 36. About 67 percent more was disbursed for technical assistance and consultant services than was initially allocated. This is due to the need to extend the technical assistance to both OFEDES and NIGELEC in order to provide further strengthening and on-the-job training for their staff. The increase also reflects the fact that the feasibility study for the expansion of the Niamey water supply system was later added to the project.  - 18 - 37. The training program realized was about half of what was envisaged because of delays in the prenaration of the t:aining program and difficulties in getting the few sector staff, already stretched, to leave their jobs for any sustained period of time. 38. A little over 60 percent more was spent on civil works than was envisaged at appraisal because IDA agreed, at the Government's request, to include the financing of the headquarters for the national water company in the project. 39. Goods financed by the project were about 40 percent of the appraisal estimate. The primary difference was that IDA agreed to the Government's request that KFW finance the rehabilitation of the water production system in Niamey. This was originally to have been financed by IDA. 40. The closing date was extended for two 12-month period with the final closing date being June 30, 1988. As of February 14, 1989 the undisbursed amount of SDR 234,839 was canceled from the Credit.  4~~5 ' '3>w; t Ao 2 r 4 - - \, ^ , . ! . o g E~ \- 0E\ 3,~ \ ~ I r , x , O.~8