Ghana - Community Water and Sanitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 12406-GH STAFF APPRAISAL REPORT GHANA COMMUNITY WATER AND SANITATION PROJECT MARCH 21, 1994 MICROGRAPHICS Report No: 12406 GH Type: SAR Infrastructure Operations Division Country Department IV Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Cedis (C) US$1 = 0835 1l = US$0.00120 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank CfD Caisse Frangaise de Developpement CIDA Canadian International Developpement Agency CWS Community water and sanitation CWSD Community Water and Sanitation Division CWSP Community Water and Sanitation Project DA District Assembly DCD Department of Community Development DWST District Water and Sanitation Team ESA External support agency GOG Government of Ghana GTZ Gesellschaft fMr Technisc!,e Zusanmenarbeit GWSC Ghana Water and Sewerage Corporation HDW Hand dug well HE Hygiene education HP Handpump IAPSO Inter-Agency Procurement Service Office 3 International Competitive Bidding KfW Kreditanstalt ftr Wi5deraufbau KVIP Kumasi ventilated improved pit LCB Local Competitive Bidding MFEP Ministry of Finance and Economic Planning MLG Ministry of Local Government and Rural Development MOH Ministry of Health MWH Ministry of Works and Housing NGO Non-Governmental Organization NORRIP Northern Regional Rural Integrated Program PAMSCAD Program of Assistance to Mitigate the Social Costs of Adjustment PO Partner Organization PPF Project Preparation Facility PTA Parents and Teachers Association RWS Rural water supply RWST Regional Water and Sanitation Team SA Special Account SBDU Small Business Development Unit SIP Sector Investment Program SOE Statement of Expenditures TNC Training Network Center for Water and Waste Management UNDP United Nations Development Program UNICEF United Nations International Children's Emergency Fund UST University of Science and Technology, Kumasi VV Village Volunteer WATSAN Water and Sanitation Committees WHO World Health Organization WSRP Water Sector Rehabilitation Project WUA Water User Association WUG Water User Group WVI World Vision International FISCAL YEAR January - December FOR OFFICIAL USE ONLY REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT Table of Contents I. THE SECTOR ............................................. 1 A. Country Background ................................. 1 B. Sector Organization .................................. 3 C. Sector Issues ............... ...................... 7 D. Service Coverage and Past Projects ........................ 11I E. Lessons Learned in Past Water and Sanitation Projects ............ 12 F. Bank/IDA Lending Experience ........................... 13 II. GHANA WATER AND SEWERAGE CORPORATION .................. 14 A. Responsibilities .................................... 14 B. Organization ...................................... 14 C. Management andStffing ............................ 15 D. Financial Performance ................................ 16 E. Condition of Facilities ................................ 19 F. Operations andMaintenance ............................ 19 I1. NATIONAL COMMUNITY WATER AND SANITATION STRATEGY ....... 20 A. Objectives ........................................ 20 B. Overall Development Strategy ........................... 20 C. Definitions ....................................... 21 D. Sector Organization .................................. 21 E. Sector Policies ..................................... 24 F. Sector InvestmentPlan ................................ 26 IV. THE PROJECT ........................................... 27 A. Objectives ........................................ 27 B. Preparation ....................................... 27 C. Project Description .................................. 28 D . Costs ....................... .................. 33 E. Financing ........................................ 33 F. ImplementationPlan ................................. 34 G. Implementation Cycle in Rural Communities and Small Towns ....... 38 H. Environmental Aspects ................................ 41 I. Procurement ...................................... 41 J. Disbursements .. 45 K. Accounting, Audit and Reporting.. 47 L. Reporting and Supervision.............................. 47 M. Monitoring and Evaluation ............................. 48 This report is based on the findings of World Bank preappraisal and appraisal missions that visited Ghana in June 1992 and June 1993 respectively. These missions comprised of Messrs./Mmes. Robert Roche (Mission Leader), Eleanor Warner and Mark Makanda (Financial Analysts), Ato Brown (Rural Water and Sanitation Specialist), Godfrey Ewool (Infrastructure Engineer), Peter Hawkins (Institutional Specialist), and W. Van den Wall Bake (Rural Infrastructure Specialist). Peer reviewers were Messrs. Richard Verspyck (AFlIN) and Alain Locussol (EA31N). Ms. Elizabeth Novatny provided production support. Mr. James Wright is the Division Chief and Mr. Edwin Lim the Director. 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. V. PROJECT JUSTIFICATION AND RISKS ........................... 49 A. Sociallmpact .....'................................. 49 B. EconomicBvaluation ................................. 49 C. Risks .... 51 VI. AGREEMENTS AND REOMMEMNNDIATION. . 51 A. Agreements with GOG and GWSC ........................ 51 B. Recommendation ................................... 52 Annexes 1-1 The Sector Investment Plan 1-2 Institutional Plan 1-3 Letter of Sector Policy 1-4 Action Plan for Water Sector Restructuring 2-1 Project Costs 2-2 Implementation Schedule 2-3 Procurement Arrangements 2-4 Disbursements 2-5 Monitoring and Evaluation 2-6 Supervision Plan 3-1 Hygiene Education 3-2 Sanitation 3-3 Schools Program 3-4 Private Sector Participation 3-5 Training Program 3-6 Technology Choice REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Ghana Beneficiaries: Ghana Water and Sewerage Corporation (GWSC), Participating District Assemblies, and Participating communities and households Implementing Agency: Ghana Water and Sewerage Corporation Poverty Category: Program of Targeted Interventions Credit Amount: SDR 15.9 million (US$21.96 million equivalent) Terms: Standard with 40 years maturity. Onlending Terms: Proceeds of the credit would be passed on by Government in grant form to the Ghana Water and Sewerage Corporation. Project Objectives and Description: The main objective of the project is the full-scale demonstration of the proposed National Community Water and Sanitation Strategy. In so doing, it would help achieve the objectives of the National CWS Program - that is to (a) provide basic water and sanitation services to communities that would contribute towards the capital cost and pay the normal operations, maintenance and repair costs of their facilities; (b) ensure sustainability of these facilities through, community management, private sector provision of goods and services, and public sector promotion and support; and (c) maximize health benefits by integrating water, sanitation and hygiene education interventions. There are three main components: (i) provision of water and sanitation facilities to rural communities; (ii) provision of water and sanitation facilities to small towns on a pilot basis; and (iii) capacity building for public and private sector. In all some 1,000 water points and 30 small town water supplies would be provided. Project Benefits and Risks: The project would help address social equity issues and the high incidence of absolute poverty in Ghana, providing improved water supplies in conjunction with sanitation and hygiene education which would result in improved health conditions and time saved in fetching water. The project would also be a major step towards sustainability of the water sector by moving towards community management of rural and small town water supplies and private sector provision of related goods and services. This in turn would strengthen GWSC by separating rural and urban activities and allowing each division to focus on their areas of specialty. The project entails risk in trying to scale up investment based on community management of water supply and sanitation services. This risk involves the ability of GWSC's new Community Water and Sanitation Division to build capacity and the communities' ability to maintain their facilities. To reduce the risk, project preparation has included start-up of the project in one region. Also, use of a single implementation strategy in all regions would allow common training materials to be used and lesson learning between regional projects. If the project is not undertaken, future development of the sector would remain constrained by inadequate financing and human resources, and continued use of varied implementation strategies that result in water supply systems that are not sustainable. ii Estimated Project Costs and Financing Plan: A. Estimated Project Cost Local Foreign Totl Component (US$ million) Rural Water and Sanitation 3.03 4.91 7.94 Small Towns Water and Sanitation 3.74 5.13 8.87 Capacity Building for Public and Private Sector 2.80 3.16 5.96 PPF 0.19 0.36 0.55 BASE COST 9.76 13.56 23.32 Physical Covtingencies 0.55 0.72 1.27 Price Contingencies 1.28 1.13 2.41 TOTAL PROJECT COST 11.59 15.41 27.00 B. Financing Plan Local Foreign Total Sources uf Funds (US$ million) Government of Ghana 2.46 0.00 2.46 Communities 0.90 0.00 0.90 Government of Canada 0.62 1.06 1.68 IDA 7.61 14.35 21.96 TOTAL SOURCES 11.59 15.41 27.00 Note: Of the total amount US$0.94 million equivalent is for duties and taxes. Estimated IDA Disbursement Schedule (US$ million) FY 1995 1996 1997 1998 1999 2000 Annual 2.62 3.72 5.25 5.93 3.22 1.22 Cumulative 2.62 6.34 11.59 17.52 20.74 21.96 Econoinc Rate of Return: N/A REPUBLIC OF GIANA COMMUNITY WATER AND SANITATION PROJECT I. THE SECTOR A. COUNTRY BACKGROUND POPUIATION 1.1 The total population of Ghana is estimated to be 15 million, 10 million of whom live in rural communities of less than 5,000 people. Ninety percent of this rural population live in about 15,000 communities with populations between 100 and 5,000; the remainder in some 40,000 smaller settlements. Between 1970 and 1984, the date of the last national census, the population growth rate in rural areas was about 2.2%; continuation at that rate would result in a rural population of about 11.6 million in year 2000. The rural population is concentrated along the coast, between Accra and Kumasi, and in the Upper East Region. The Northern Region and northern half of Brong-Ahafo Region are the least populated areas. RURAL ECONOMY 1.2 Economic activities in the rural areas are based on agriculture and livestock, with cocoa production being the most important source of income. Traders, manufacturers and craftsmen are part of the rural economy, as are such services as repair workshops, but they account for a small share of total income. The poorest groups of the population are concentrated in small communities and the savannah regions in the north of the country. While half the total population lives in communities with less than 1,500 people, two-thirds of the poorest Ghanaians live in such communities. The concentration of poor people in the savannah areas is even more marked, with 60% of the extremely poor found there. Poverty displays important seasonal variations with a lean period prior to harvest, particularly in the savannah zone, which has only one cropping season and a prolonged dry period. In some areas shortages of food and cash occur just before harvest time. DECBNTRALZATION 1.3 The Governments's decentralization program is designed to make local governments more autonomous, more responsive to local needs and technically and financially capable of providing services. The program is intended to end dependency on central Government and "top down" planning. This is being achieved by giving the country's 110 district assemblies primary responsibility for planning and administering their own development programs, including collecting taxes. With the recent creation of 45 new districts, most are understaffed and have minimal facilities. In this decentralized approach individual communities are expected to take the lead in planning and implementing development projects based on their particular needs, to pay part of the capital costs and all of the recurrent costs. They are to receive support from district staff who in turn are supported by line ministries. 1.4 Community organization is an integral part of the tradition and culture of Ghana. The descending chain of authority and responsibility from the chief and elders to the people constitutes the basic social structure of a community. Religious groups and various organizations also provide channels for community action. Women have always had a significant economic role in Ghana in cash crop production, processing and transportation. 2 Increasingly women have assumed responsibility for all aspects of water projects, including payments of handpump tariffs to Ghana Water and Sewerage Corporation (GWSC), and maintenance of pumps where community management has been introduced. This reflects the fact that not only are the lives of women more adversely affected by inadequate water supplies, they are less likely than men to migrate and thus can provide more continuity to the management of the water source. There is also an increasing number of female-headed households, particularly where matrilineal customs prevail. About one household in three is female-headed in the south, compared to about one in fourteen in the north. HEALTH 1.5 Health conditions are poor but improving, this is reflected in the infant mortality rate falling from 120 to 90 per 1000 births between 1965 and 1988. In comparison, the infant mortality rate in 1988 was 110 in West Africa, 50 in middle income countries and 10 in high income countries. In Ghana the rate is about 25% higher in rural areas than in urban areas. This mortality rate is in large measure attributable to child health care practices and is associated with poor quality drinking water and inadequate sanitation facilities. Related diseases include diarrhea, dysentery, typhoid, cholera, schistosomiasis, and guinea worm. Dehydration caused by infant diarrhea is the main cause of death and could largely be avoided by simple methods of oral rehydration. Mortality rates could also be lowered by broader immunization coverage of children. Guinea worm is also prevalent in parts of the country, particularly in the Northern Region aud the lower Volta Region where about 5% of the population is infected. Only about 45% of communities in rural areas have ready access to health facilities. While community health workers and medical assistants are available at the district level, their ability to serve the rural population effectively is restricted by lack of funds for allowances and transport. WATER fESOURCES 1.6 The climate of Ghana is tropical, with a wide variation of rainfall, that is heavily influenced by the southwest monsoon. The mean rainfall varies from 2000 mm in the west coastal area, te about 850 mm in the east coastal area (Accra) and 1000 mm in the north. The Volta Lake stretches some 300 km through the center of the country. The Volta River, which has a total catchment area of 165,700 kmt within the country, drains the entire north, center and east of the country. The remaining rivers, all in the south and southwest, drain about one third of the country, but because of the high rainfall there, they account for more than 50% of Ghana's internal run off. In the north, major rivers such as the Black and White Volta and their main tributaries are perennial; the other rivers go dry during the dry season. In the South, major rivers like the Pra, Offin and Ankobra flow throughout the year. Surface water must be treated to meet WHO water quality guidelines for coliform and turbidity. 1.7 Most of the water for urban areas is supplied from rivers at dams and diversion structures. Surface water resources would be sufficient to serve all identified urban needs for the foreseeable future through a program of development and conservation, although new impoundments and conveyance to some urban areas would be expensive. In rural areas groundwater is the best option as it is usually available in sufficient quantities for household uses within the community, is more reliable throughout the year and in periods of drought, and does not require treatment. 3 1.8 Most of Ghana is underlain by crystalline and strongiy cemented sedimentary rocks which have low primary porosity and permeability. Groundwater in small but exploitable quantities is found in tie near surface secondary features such as joints, fractures and the zone of weathering. Groundwater has always accounted for a significant portion of potable water supplies in rural communities, particularly from shallow dug wells and springs. Some groundwater can be found almost everywhere with static water levels generally less than 10m, except in the western parts of the Northern and Brong-Ahafo Regions where they are more often between 10 in and 20 in. In a few locations static water levels exceed 20 m. The quality of groundwater is generally good except for the presence of iron and manganese in some locations. Saline water is found in some areas along the coast and in the Upper Volta Region, where chloride contents as high as 1,500 milligrams per liter have been encountered. Ru;AL VERSUS URBAN WAmaR SUPPLY 1.9 In Ghana, rural communities are generally considered to be those whose populations are under 5,000, and urban is everything larger. There is a growing consensus among water sector professionals that it is better to think in terms of community and utility managed systems rather than rural and urban systems, with larger systems managed on a commercial basis by GWSC and smaller systems managed by the communities themselves. The community managed approach is a return to the management system employed in small towns in Ghana before the Water Supply Division of the Public Works Department (GWSC's predecessor) established in 1958. The move to community management of rural and small town water supply systems would benefit both GWSC by allowing GWSC to focus on tht, largest 50 to 75 systems in the country where utility-based operations are financially viable, and would benefit communities by allowing the beneficiaries to manage their own systems. B. SECTOR ( GANIZATION MINIsRY oF WoS AND HOUSING 1.10 The Ministry of Works and Housing (MWH) has primary responsibility for urban development, sets urban and housing policy, and oversees the activities of various parastatal agencies. Among these is GWSC, which was established in 1965 and is responsible for urban and rural water supply as well as for piped sewerage. Its functions include sector planning and policy formulation, external support agency and NGO coordination, construction and operation and maintenance. In addition to the systems serving the four metropolitan areas, GWSC operates some 200 other smaller systems which mainly serve urban areas, and for the maintenance of about 7,500 drilled wells fitted with hand pumps that serve rural communities. GWSC currently has a staff of over 4,000, about 150 of whom are involved in rural water supply. More information about GWSC is provided in Section II. MINISTRY OF LocAL GOVERNMENT AND RURAL DEVELOPMENT 1.11 The Ministry of Local Government and Rural Development (MLG) is responsible for administering Ghana's decentralization program. As such it is responsible for developing policies and legislation with respect to district assemblies (DAs) and assisting, supervising, monitoring and auditing DAs as well as allocating financial transfers to them from Central Government. DAs were created under PNDC Law No. 207 and are mandated to "plan, initiate, coordinate, manage, and execute policies in respect of all matters affecting the people within their areas with a view to ultimately achieving localization of those activities", 4 including rural water supply and sanitation DAs have the ability to pass legislation, award contracts, loan or borrow funds, and levy taxes. They are thus the key legislative and administrative bodies havinj hoth legal and executive authority over all development activities in their area. 1.12 The Department of Comraunity Development (DCD) primarily provides technical advice and assistance to minor self-help construction projects in rural communities, often through support to the projects of other agencies. The DCD is the only government agency with staff below the district level, although the majority live in and work out of the district centers. It has traditionally provided government financed infrastructure to rural communities; cost recovery has not been given much consideration and it has made little use of the private sector. The DCD suffers from a chronic shortage of trained technical officers, inadequate transport and insufficient budget. This is due to the low government budgetary input it receives and inadequate allowance for community support services made by other agencies for their projects. MINISTRY OF HEALT 1.13 The Ministry of Health (MOH) has three divisions that are involved in water and sanitation: Environmental Health Services, Health Education Services and Epidemiology. Owing to the scarcity of public health engineers, all sanitary engineering and planning has for many years been centralized at its headquarters in Accra. The Environmental Health Services Division assists local authorities with organization and operation of refuse and night-soil collection and disposal and enforcement of public health regulations in homes, restaureats, markets and other public places. The Division is also involved in a number of water supply and sanitation projects and the Global 2000 campaign towards the eradication of guinea worm. While it does not execute sanitation projects, its health inspectors are trained in saitation e* the MOH Schools of Hygiene before being posted to DAs. Emphasis is being shifted from enforcement activities to the promotion of better sanitation practices. The Health Education Division is responsible for the development of public health education programs, aimed at improving public knowledge and understanding of the causes of diseases to help bring about changes in attitudes and behavior with the objective of reducing illness. The Epidemiology Division is involved in the planning, execution and evaluation of control measures against communicable diseases of major public health importance e.g. malaria, measles, yaws, bilharzia and guinea worm. Regionally based staff organize periodic health education and immunization campaigns at community centers. These programs are not very effective due to financial, personnel and transport constraints. NGOs 1.14 There are about 30 NGOs involved in water supply in all regions of the country. NGOs tend to work on a regional basis, although a few concentrate at the district level. The most active are WaterAid through local NGOs, the Catholic Church, and World Vision International. Recently NGOs have constructed more than 500 boreholes each year and a smaller number of hand dug wells. This represents a sizable implementation capacity; comparable to the bilaterally supported GWSC program. 1.15 The National Catholic Secretariat has had a long tradition of aiding parish communities solve water problems. Its most noteworthy recent interventions have been the Wenchi Village Water Project in the Brong-Ahafo Region and the Bole Parish Water Project 5 in the Northern Region. The former was initially managed by an expatriate missionary and still has a team of local staff equipped with a drilling rig, vehicles and workshop facilities. During the past five years about 1,000 boreholes equipped with India Mark II handpumps have been installed by the Catholic Church. Apart from the Wenchi Parish, most dioceses employ a drilling contractor and occasionally call on GWSC's drilling unit. The approach adopted by the projects in Wenchi and Bole begins with dialogue with communities, during which the obligation of both parties are explained, an agreement reached and formally signed. A contribution of C60,000 (US$72) per borehole which was later raised to 0200,000 (US$240) for construction must be collected by the community before drilling commences. Community handpump caretakers inspect the pumps, organize upkeep of the pump surrounds and report major faults to second-tier mechanics. 1.16 The Ghana unit of World Vision International (WVI) derives most of its support from its international affiliates, primarily in the United States. It is engaged in agriculture, pre- school education and primary health care of which its water and sanitation program is part. WVI has constructed about 1,000 boreholes the Northern, Volta, Central, Greater Accra, Western and Eastern Regions. It too uses a community participatory approach and requires the community to assume responsibility for long term maintenance. Its first boretioles were drilled by a drilling contractor, but it has since acquired its own drilling rig. 1.17 Water Aid, a charitable organization based in the United Kingdom and associated with the water industry, supports a number of rural water projects in Ghana most of which are implemented by local NGOs. The Presbyterian Church, Evangelical Presbyterian Church, Baptist Church, Anglican Church, Peace Corps and Canadian University Se.vices Organization (CUSO) also support water and sanitation activities in the country. Much valuable experience related to community management of maintenance has been obtained by these NGOs. In particulai, Water Aid has led the move toward improved hand dug wells and construction through the private sector. EXTERNAL SUPPORT AGENMhS 1.18 The rural water supply project in the Upper Regions financed by Canada and the 3,000 Wells Project in the south financed by the Federal Republic of Germany together have constructed about 6,000 boreholes providing water to about 1.5 million persons. Both began 20 years ago as drilling projects; since then, both have evolved good maintenance systems, although revenues only cover a small part of the maintenance cost. Also, the Upper Regions Project has developed a large scale health education program. In the next phase of their support to the Upper and Northern Regions, Canada is planning to shift to community based management by installing handpumps more suitable for community maintenance and training the communities to maintain them. Kreditanstalt fuir Wiederaufbau (KfW) is currently considering the privatization of the 3,000 Wells Maintenance Unit. 1.19 In the last few years, Japan has financed the construction of about 500 boreholes in the Northern and Western Regions which GWSC is responsible for maintaining, and Caisse Frangaise de Developpement (CfD) is currently implementing the first part of a two phase project to install 900 water points in the Central Region where community based maintenance in being employed; and Denmark is starting implementation of a community managed rural water and sanitation project in the Volta Region. UNDP is financing small rural water supply projects in the Volta and Eastern Regions with co-financing by The Netherlands. UNICEF is supporting the construction of 560 hand-dug wells and the rehabilitation of 500 handpumps 6 systems; it is also supporting a latrine program. Table 1.1 summarizes the support provided by the main external support agencies (ESAs) active in the sector. Table 1.1 ESA Sector Activity ESA Project Region Facilities Canada Water Utilization Project Upper E/W 2600 HP NORRIP II Water Component Northern 350 HP CWS Maintenance Project Northern 15 piped Denmark Water and Sanitation Project Vo!ta 850 systems France Rural Water Project Central 900 HP Germany 3000 Wells Project 7 regions 3000 HP Rehabilitation Project Eastern 33 piped Japan Rural Water Project Phase I Northern 159 HP Rural Water Project Phase II Western B/A 320 HP PAMSCAD Dug Wells & Latrine Project All regions 2000 HDW UNDP-Nether Rural WATSAN Project Eastern 200 HP UNDP Decentralized Maint. of RWS Volta 200 HDW UNICEF Borehole Rehabilitation Project 4 regions 500 HP UNICEF Small Com. WATSAN Project All regions 560 HDW World Vision Rural Water Supply Project Brong Ahafo, 500 HP Ashanti, Eastern HP - handpump HDW - hand dug well 1.20 GWSC is primarily responsible for coordinating the activities of the ESAs working in the water sector. In the past, the regionalization of projects and the lack of clear cut policies on the financing and maintenance of rural water supply systems and on technology selection have led each donor to make its own decisions based on its particular procurement and scheduling constraints and the peculiarities in its project area. The 1991 Rural Water and Sanitation Sector Strategy prepared by the UNDP/World Bank Regional Water and Sanitation Group in West Africa, and the series of workshops related to preparation of the current project are leading towards a national sector strategy that both the government and external assistance community can support (Section III). 7 C. SECTOR ISSUES MANAGEMENT 1.21 In the past rural water supply in Ghana was primarily directed by ESAs and NGOs with a view towards meeting project goals, where projects were not fitted into a national implementation strategy. GWSC has essentially been a channel through which external agencies have operated. While GWSC has established a capability of maintaining handpumps in rural areas, it has gained little capacity to implement new projects. 1.22 The Rural Water Supply Department has been given little attention by senior management and limited personnel and financial resources. This reflects the subsidiary role that it has come to play in project management. Presently it is staffed by a director and three professionals who were hired to manage a UNDP-financed, rural water supply project in the Volta Region. The director is a contact person for externally financed projects through whom government approvals are obtained and assistance is sought to resolve problems requiring government attention. The Rural Water Supply Department has done a good job in encouraging dialogue between financing agencies; it has not, however, taken an active role in redefining the sector strategy. PLANNING 1.23 Past rural water supply projects can be characterized by their "top-down" nature, where the type of technology and number of systems have been pre-determined, beneficiary communities have been determined during project design or by project implementation personnel, and borehole siting has been determined by hydrogeologists primarily concerned with maximizing the chance of locating successful wells. The communities' involvement has generally been limited to a yes/no decision regarding their participation. As a result water supplies have been installed with little consideration for demand and subsequent sustainability. Sector professionals are aware of this situation and have been moving towards a "bottom-up", community managed approach, as reflected in more recent project designs and the strategy proposed in the National Community Water and Sanitation (CWS) Program. 1.24 In recent years nearly all of GWSC's efforts have gone into maintaining the existing wells plus those constructed by NGOs/ESAs and turned over to GWSC to maintain. Significant further expansion of services would require a shift in responsibilities, with beneficiary communities taking responsibility for operations and maintenance and government becoming a facilitator - planning, mobilizing financial resources, and facilitating private sector provision of goods and services. 1.25 The key to successful community managed systems is informed decision making and training in operation, maintenance, revenue collection and accounting. Recent experience in Ghana and elsewhere in West Africa has shown that the participatory planning and training needed to establish community management requires special facilitators. These community extension agents do not have to be highly educated, but they need to be dedicated people who are good communicators and good problem solvers. They also need to receive financial compensation commensurate with difficult environmental conditions and frequent travel and overnight stays in the bush. Civil service personnel geneially lack the motivation, compensation and logistical support needed for this type of work; much better success has been had through NGOs. 8 FINANCING 1.26 CAPTAL COSTS In 1986 water tariffs were introduced in rural communities for the first time, and only recently have some projects required that communities contribute towards the capital cost of their systems. As a result systems were installed on the basis of perceived need rather than real demand, tariff collection is low, and the sustainability of many systems is in doubt. Most sector professionals now agree that sustainability requires community financing of all normal recurrent costs, and that a 5 to 10 percent contribution towards the capital cost is a practical measure of a community's commitment to maintaining the system once it is installed. The cost of these systems (US$200 million for 85% rural coverage) would necessitate continued external grants and concessionary loans over the next 15 years. 1.27 RECURRENT COSTS The average annual maintenance cost of a borehole fitted with a handpump is about US$200 per year in the Upper East Region, the 3,000 Wells Project area, and the Wenchi Project area. While approved tariff levels are adequate to cover recurrent costs, only about 25% of the tariff is collected. Revenue collection in rural communities is problematic because of the distances involved and because most boreholes were originally provided free of charge with no commitment made by the communities to maintain them. Furthermore, communities often see no clear relationship between services rendered and tariffs charged. Introduction of community based maintenance would avoid the near impossible task of maintaining systems and collecting revenue in dispersed rural communities. 1.28 Approved tariffs for rural piped systems are roughly equal to recurrent costs and half total costs including depreciation. As with rural systems, revenue collection is a fraction of the amount required for full cost recovery. Failure to charge at the water point and to bill customers for metered water delivered are at the root of the problem. Recent experience in community based revenue collection in a Gesellschaft ffr Technische Zusammenarbeit (GTZ) supported project in the Volta Region and in community management in a Canadian- supported, small towns project in the north, suggest that communities would be willing and able to manage their small piped systems. 1.29 Up to 1986, half of GWSC's operating expenses were regularly covered by Government subventions. At that time the Government withdrew its support, requiring GWSC to assume full responsibility for meeting its day-to-day operational costs. Subsequently, tariffs were introduced for the first time in rural areas, and a five-fold increase in the existing urban tariff was implemented. This has since increased at a rate of about 20% per year. Operating surpluses from the three metropolitan areas, allow GWSC to now meet all its operating costs, but revenues are not sufficient to cover depreciation and loan repayment. GWSC should not be required to divert revenues generated from its urban operations to finance the rural sector. Such requirements would prevent GWSC from fully commercializing its urban operations and would result in a serious neglect of the rural sector. Consequently, it is imperative that the Government of Ghana (GOG) fully finance the operation of GWSC's proposed CWS Division and that financing and accounting for GWSC's urban and community water sunply divisions be separated. Serious consideration should also be given to establishing community managed water supplies in towns that are too small to be operated on a financially independent basis by GWSC's Urban Water Supply Division. Practical experience is needed to draw conclusions, but roughly towns with a population of less than 15,000 would fall into this category. 9 TEcHNOLOGr 1.30 In the past projects have focused on boreholes, hand dug wells, or small piped systems. Communities have not been offered a choice of technologies and service levels, as project design has been based on what was considered to be the lowest cost option for a basic level of service. In shifting to community management and participatory planning, a choice of technologies is essential (otherwise planning would consist only of a yes/no acceptance of the technology being offered), and a community contribution towards the capital cost that is proportional to the capital and recurrent costs must be introduced (otherwise distortions would enter into the selection of technologies and communities may find that they do not have financial resources needed for longer term sustainability). 1.31 WELLs The success rates of boreholes varies from region to region; with rates from as high as 95% to as low as 30%. The national success rate of drilling is approximately 70%. More systematic use of well siting techniques including, where appropriate, the use of geophysical test equipment and test drilling prior to dug well construction, would increase the average success rate. The service population of a drilled well, usually constrained by the capacity of the pump, is about 300 people, and the number of people that can be served by an "engineered" dug well is usually constrained to about 200. Because the cost of a typical drilled well fitted with a handpump ($10,000) is much higher than the cost of a dug well with a bucket ($2,000) or a dug well with a handpump ($3,000), for a given investment, three to five times more people can be served with a dug well than with a borehole. 1.32 In addition to being less expensive, hand dug wells can also provide employment for local contractors and artisans and a substantial amount of self-help labor can go into their construction. Traditional hand dug wells suffer from several deficiencies: (a) they often do not provide a year round service due to insufficient penetration below the water table; (b) they are subject to contamination, primarily because their well platform and apron are poorly designed; and (c) they pose a risk of children falling into them. For this reason contractors equipped to work below the water table should construct wells and, particularly in larger communities, covered wells fitted with a handpump should be encouraged. Nonetheless, properly designed open dug wells usually provide a substantial quality improvement over existing sources. 1.33 HANDPUMPs For low-lift applications where the pumping lift is less than 15 meters direct-action pumps (configured like tire pumps with T-bar handles) have been developed that are less expensive than traditional lever pumps and are easy to repair. For higher lifts, pumps must provide a mechanical advantage using either lever or hydraulic principles. Several pumps have been developed that employ non-ferrous below ground components. The breakdown rate on these pumps is about the same as the earlier "unbreakable" pumps. Handpump projects in Ghana, particularly those in the south, have encountered problems due to the corrosivity of the groundwater. As a result the newer pumps have been introduced on a test basis and several are now being installed in larger numbers, including the Nira AF-85 direct-action pump, the Vergnet, and the Afridev. In addition, a pump has been developed through the 3,000 Wells Project that uses the chain link pump rod connector and pumphead configuration of the India Mark M but substitutes self-centering fulcrum bearings and thin- walled stainless steel rising main. 10 1.34 From a community perspective the best pumps are those that are inexpensive, easy to maintain, corrosion resistant and for which spare parts are assured in the future. The best way to reduce prices and assure availability of spare parts is for communities to purchase public-domain pumps that are made to international specifications. However, communities cannot buy pumps until they are available at local retail outlets, and local retailers won't stock them until a profitable market for them exists. To overcome this impasse, GWSC working with ESAs could contract local companies to procure, distribute and install pumps, and to establish repair services and spare parts outlets at selected locations for the pumps currently in use in Ghana (para 1.33). While specific pumps might be selected through competitive procurement and a minimum order guaranteed, any other manufacturer/distributor of pumps authorized by GOG would be free to sell pumps locally and communities would be free to purchase any one of the authorized pumps. Because handpumps are likely to be more expensive than most communities can afford, a voucher system would need to be introduced where government would pay a set amount and communities would pay the balance. 1.35 MOTORIZED P(mWS Other mechanized pumping systems have not been used much in Ghana in recent years. As noted above (paras 1 23-1.25) community based planning requires that a range of technologies be offered. On the basis of costs alone, there is good reason to consider motorized pumping options. For example, the high cost of boreholes warrant use of electric pumps, particularly in communities where more than one borehole is required, provided the communities' boreholes are near the national power grid and yield sufficient water for a motorized pump. Also, communities that are not located near the electric grid but have 1,000 to 2,500 people could best be served by a solar pump and larger communities may find diesel-generator sets and electric pumps a good option. Similarly, small piped systems have received scant attention in the last decade but are an option that many larger communities (particularly the higher-density, commercial centers) might prefer. A Canadian financed project in the north is having good success with a mixed technology approach, where different user groups in a town choose the type of system that best meets their needs. CONSTRUCTION 1.36 The boreholes for the Canadian financed RWS Project in the Upper Regions and the German financed 3,000 Wells Project in the south were constructed by private contractors as are the wells currently being constructed in the French financed RWS Project in the Central Region. In all some 90% of all boreholes have been constructed by the private sector. The policy of employing competitive procurement procedures for the construction of water supplies would provide no role for GWSC's drilling unit. Government would need to consider the future role and size of the drilling unit and whether or not all or part of it should be privatized or sold to private contractors. Current employees of GWSC's drilling unit should be encouraged to present an employees' buyout proposal. 1.37 To minimize their potential deficiencies (para 1.32) hand dug wells should be constructed to a standard design by a contractor who is trained and equipped to penetrate several meters below the water table. The resulting "engineered" dug wells can provide as good or better service than boreholes at a lower price since they can be operated without a pump and can be cleaned at a fraction of the price of boreholes. 11 OPERATIONS AND MAINTENANCE 1.38 The big Canadian and German financed projects began as drilling projects but thereafter shifted to maintenance programs through which centralized maintenance systems were gradually made as efficient as possible. When spare parts, vehicles and operating funds are available, more than 80% of the pumps can be kept in operating order. The shift to community based management would not result in substantial cost savings or much better performance indicators than have been achieved in the centralized maintenance programs. It would, however, allow government to shift its focus from the maintenance of existing systems to the installation of new systems, and would extricate government from its current adversary role with rural communities where it is seen as the agent of ever increasing tariffs that don't seem commensurate with services delivered. While individual projects financed by ESAs could be sustained as long as financial support continues, when that financing stops the majority of systems would fall into disrepair. In addition, a growing number of pumps are being installed by NGOs and there is a demand for many more, the maintenance of which would require a comprehensive solution not linked to any one support agency. 1.39 The shift to community management would free government and support agencies to focus more on new systems; nonetheless, Government would need to help pay for major replacements and borehole maintenance until the economic position of rural people improves considerably. D. SERVICE COVERAGE AND PASr PROJECTS 1.40 In 1990 the rural population was 9.4 million people of whom only 2.6 million (28%) had access to improved water supplies. At the current rate of growth of about 2% per annum, the rural population would reach about 11.6 million by the year 2000. Ninety percent of the rural population live in about 15,000 communities with populations between 100 and 5,000; the remaining 10% live in some 40,000 smaller settlements. In the next 15 years the rural population would increase to about 13.5 million; to reach 80% coverage by then an additional 8 million people would need to be served (Annex 1-1. There are currently about 10,500 drilled wells in the country and over 40,000 hand dug wells. However, most dug wells are not protected from contamination and many of them dry up during the dry season. In total, about 30% of the rural population has received an improved water supply (handpump or piped) during the last 20 years; however, about 30% of these systems are not operational, reducing effective coverage to about 20%. 1.41 A survey conducted in 1988 indicated that about 60% of the rural population has access to some form of public/communal sanitation facilities, usually trench latrines. About 1 % is equipped with flush toilets, 5% with bucket latrines, and the rest have no facilities. A review of coverage reveals communal latrine usage to be over 50%, with the highest use (95%) in the Central Region and the lowest (10%) in the Northern, Upper East and Upper West Regions. Low use in these regions could be partly attributed to availability of "open spaces" and to the dispersed nature of the communities. The Kumasi ventilated improved pit (KVIP) latrine was chosen as an appropriate rural sanitation technology in 1982 and since then some 500 have been constructed. It, however, has proved to be too expensive for most rural households to afford, so less expensive models are gaining in popularity. 12 E. LESSONS LEARNED iN PAST WATER AND SANITATON PROJECTS 1.42 The 1980s were characterized by innovations in technologies and management systems, when new handpump technologies and lower cost household latrines were developed and community based management was tested. Many of the lessons that have been learned are described in the previous discussion. Some of the more important are: (a) It is better to organize municipal water supply on the basis of community- managed and utility-managed systems rather than rural and urban systems. Under such an arrangement, rural communities and small towns (up to perhaps 15,000 in population) would generally be better off maintaining their own water supply systems, and GWSC would better off if its Urban Water Supply Division served only larger towns and metropolitan areas where operations can be commercialized. (b) Top-down planning needs to be replaced by bottom-up planning where communities are the decision makers and have real choices between different technologies at different prices. (c) External support agencies need to build capacity within GWSC's CWS Division to plan and implement new projects. Local and international consultants would be needed to train GWSC personnel, but only on an intermittent basis. (d) Extension services to help communities plan their water supply systems and to train communities to manage them requires special facilitators who are dedicated, good communicators and adequately compensated. This has proved to work much better through NGOs than civil service organizations. (e) To ensu.e that limited government funds are channeled to communities that would maintain their systems, communities should: (i) pay part of the capital cost for improved services, in proportion to construction and recurrent costs; and (ii) all recurrent costs while communities can pay recurrent costs. Until the economy improves considerably, government would need to assist communities by paying part of the cost of major replacements and borehole maintenance. (f) Technology choice for water supplies should be expanded to include dug wells and motorized pumps including those powered from the national power grid and by solar and diesel power. Household latrines should include low-cost options employing local building materials, slabs without vent pipes, and single pit latrines that can be relocated (with and without reinforcing bars). (g) The move to community management of rural and small town systems is basic to sustainability, as government has neither the capacity nor mandate to maintain the some 25,000 point sources that would be needed to provide near full coverage. 13 (h) Maintenance systems linked to individual externally financed projects are sustainable only as long as aid from that source continues. It is necessary to move toward a more comprehensive solution that provides for all systems and is not linked to individual ESAs. A maintenance system based on community management, private local mechanics and spare parts distributors is proving successful on Ghana and other parts of Africa. F. BANK/IDA LENDING EXPERIENCE URBAN WATER SUPPLY 1.43 The Bank has financed four water supply and sewerage projects in Ghana. The first project (US$3.5 million credit in 1969) which was completed in 1973, assisted in expanding the water supply distribution network in Accra-Tema Metropolitan Area and constructing a sewerage system in central Accra. The impact of the sewerage component was reduced by a reluctance of potential beneficiaries to connect to the system. The second (US$10.4 million credit in 1974) which was financed in parallel with Canadian International Development Agency (CIDA) and African Development Bank (AfDB), was intended to increase the installed capacity of the Accra-Tema Metropolitan Authority water system to meet existing and future needs for potable water. The entire project was completed in 1985 at 16% above the appraisal estimate of US$44.7 million. This project met its objective of increasing capacity, although some of the distribution system extensions were not constructed due to lack of local funds. The third project (US$13.0 million credit in 1983) was designed to strengthen the management of GWSC and rehabilitate one of the two major transmission pipelines supplying the Accra-Tema area. The fourth project (US$20 million credit in 1989) is co- financed with Austria, Overseas Development Administration (ODA) of the United Kingdom, Caisse Francaise de Developpement (CfD), and Overseas Economic Cooperation Fund (OECF) of Japan. This project which follows on from the third one, includes institutional development, as well as rehabilitation and expansion of water supply systems. The project became effective in 1990 and is due to be completed in seven years. Good progress has been made in certain areas, including the preparation of planning and detailed designs for the 33 town water supply systems covered under the project; the successful retrenchment of 1,500 GWSC staff; the improved finances of GWSC due primarily to regular tariff increases during the past few years; and the completion of plans to improve operations and maintenance and financial management. Nevertheless, more needs to be done, including the installation of essential equipment already purchased, improved billing and collection, reduced unaccounted for water, and greater decentralization and local accountability. RURAL WATER SuPPLY AND SANrTATION 1.44 The Bank has not had any stand alone rural water supply projects, although there have been hand dug well/borehole components as part of agriculture projects. In 1990, the Bank assisted GOG with the preparation of a sector strategy and action plan. This was approved by GOG in May 1991 and provides the basis for the proposed National CWS Strategy and the design of this first IDA financed community water and sanitation project. 14 II. GHANA WATER AND SEWERAGE CORPORATION A. RESPONSIBILITIES 2.1 GWSC is responsible for urban and rural water supply as well as for piped sewerage. In addition to the systems serving the four metropolitan areas, GWSC is responsible for the operation of some 200 other smaller water supply systems which mainly serve urban and semi-urban areas, and for the maintenance of about 7,500 drilled wells fitted with hand pumps that serve rural communities. To achieve near full water supply service coverage GWSC would need to take responsibility for some 25,000 handpumps. 600 piped systems in small towns, and 75 piped systems in larger towns and urban centers. GWSC currently has a staff of over 4,000, about 150 of whom are involved in rural water supply. It has a head office in Accra, 10 regional offices, 65 district offices, and drilling, construction and hand pump maintenance units based in Kumasi. GWSC's ROLE IN COMMUNBFY WATER AND SANITATION 2.2 The single most important factor in the success of a national CWS program is the Government's commitment to it and the executing agency. Assuming this commitment, the above considerations weigh in favor of GWSC continuing to be responsible for rural water supply - important factors being: (a) there is no good alternative to GWSC as an executing agency or compelling reason to remove CWS from GWSC; (b) GWSC's ability to offer better terms of employment, attracting more capable personnel and requiring better performance, than civil service agencies; (c) GWSC's ability to let contracts and make payments at the regional level; (d) the maintenance of existing systems during the transition period; and (e) use of existing personnel and facilities. In retaining responsibility for CWS, differences in financing, technologies, community involvement, cost recovery, personnel skills and management techniques between urban and community water supply operations, and differences in financing would necessitate separate divisions and separate accounting systems, 2.3 The National Community Water and Sanitation (CWS) Program would strengthen GWSC by separating its rural and urban operations and, over time, shifting the ownership and management of rural (populations less than 5,000) and small town systems (populations between 5,000 and 15,000) to individual communities. In the end GWSC would be responsible for maintaining the 75-100 largest systems in the country on a commercial (financially independent) basis and individual communities would be responsible for managing some 40,000 point sources and 500 small piped systems. The proposed CWS Project would build capacity within GWSC, districts and communities to provide community-managed water supply service where the private sector would help communities plan and construct their water supply systems, distribute spare parts supply, and provide maintenance/repair services. This would help strengthen GWSC. B. ORGANIZATION 2.4 At the senior level two Deputy Managing Directors (Operations and Finance & Administration) report to GWSC's Managing Director. The structure of GWSC at the regional level is essentially the same as at headquarters with Regional Engineers and Regional 15 Finance Administrators reporting to Regional Directors. Rural water supply planning, construction and maintenance is integrated into the Corporation at all levels; this does not allow for the substantial differences in the maniner in which the rural and urban sectors are supported. The most senior managers (i.e. the Managing Director and the Regional Directors) are good professionals. The problem is that there are few really competent middle level managers, and, being engineers, even senior managers have had little experience with running a commercial operation. In addition, there is not very good communication between headquarters and the regions. C. MANAGEMENT AND STAFFING 2.5 GWSC has reduced staffing by 1,500 persons in the last three years which brings its outal work force to some 3,500. About 650 of these are classified as management, technical professionals, administrative professionals and supervisory personnel. The low proportion of high and middle-level professional staff as well as skilled technicians, has acted as a hindrance to GWSC's performance. This situation is especially acute outside the major metropolitan areas and within senior management at headquarters partly due to a series of departures in recent years. In addition, the Board of Directors has extended its tenure several years and most members would like to be replaced. 2.6 In 1993 salaries of middle and senior level professionals in GWSC increased by 150%. They are now about two-thirds of current salaries of middle and senior level professionals in the private sector. GWSC is currently quantifying the monetary value of the non-cash benefits given its employees and intends to increase salaries while decreasing benefits that employees can not easily quantify. GWSC has also tried to recruit a greater number of higher level staff. In the last four years 90 professionals have been hired while 30 individuals left, leaving 25 vacancies for professional staff. While a salary increase would do much to attract and keep professional staff, the recruitment process needs to be streamlined as approval of new employees takes too long. 2.7 Decentralization of operations has, in principle, been accepted by GWSC for a number of years. However, revenues above a specified level must be sent to headquarters for its operations and for redistribution to regions that can not cover their operating costs. This acts as a disincentive to Regional Directors and their staff, whether they are in a metropolitan area where revenues exceed operational costs, or in more rural regions where revenues do not cover operational costs. A similar problem arises on the operational side where, for example, regional personnel are content to wait for long periods of time for headquarters to procure a critical part while a community goes without water - there is little accountability. 2.8 GWSC's management is amenable to considering privatization options. For example, privatized billing and collection with CfD support in the Accra is being tested, and GWSC is interested in learning more about approaches to reducing unaccounted-for-water through private sector involvement. A more rigorous evaluation of privatized options (drawing on experience from around the world) and experimentation is needed. Involvement of a cross section of GWSC personnel in this process as well as the planning of other issues affecting the future of the Corporation, including Regional Directors, is essential to the success of such operations; and, involvement of the external assistance community would better ensure that the requisite financing is available. 16 D. FINANCIAL PERFORMANCE PAST FINANCIAL PERFORMANCE 2.9 Analysis of GWSC's audited financial statements for the years 1988 through 1992 reveals that even though revenues from operations had been adequate to cover operating expenses, they were insufficient to allow GWSC to generate a positive net income annually. This has been due largely to exchange losses which wiped out the operating income in each year. Net losses were incurred each year ranging from a low of C239 million in 1988 to a high of C5.9 billion in 1990, and these results would have been worse if depreciation'expense was correctly stated based on a complete inventory of fixed assets and their revaluation. GWSC has accorded high priority to registering and revaluing its assets and an ongoing exercise is expected to end by mid-1994. TARLFS 2.10 The Government's objectives in the sector are to provide water of acceptable quality at tariffs which are affordable and sufficient to: (a) cover operation and maintenance costs; (b) enable GWSC to repay loans; and (c) finance a significant portion of its investment program from internally generated resources. This policy is consistent with the Act of 1965 under which GWSC was established. GWSC's current tariff structure is presented in Table 2.1. Domestic consumers are generally charged a minimum flat rate of C1,279 per month for house connections, while standpipe users are charged C890 per month. GWSC's water tariff is graduated and a.-ws for differential rates between high and low consumers. Currently, this graduated structure applies to industrial and commercial consumers and urban domestic consumers who are billed according to metered consumption. 2.11 The tariff is currently inadequate to cover full costs. However, merely increasing the general level of tariffs would not address the issue of whether the design of the tariff structure is the most economically efficient, whether it would maximize revenue and whether it is consistent with other considerations, such as equity. An ongoing tariff study is examining the appropriateness of the existing tariff structure, and would develop, as necessary, a tariff structure which would enable GWSC to meet all its financial requirements and help to discourage waste and excessive consumption, at the same time addressing the need for affordable water for the poor. CURRvr FINANCIAL PERFORMANCE 2.12 After years of delayed increases or no increase at all, GWSC succeeded in raising its tariffs for two years in a row: an average of 55% in 1992 and 34% in 1993. GWSC is projected to achieve a net operating surplus in 1993 as reflected in the summary table below: 17 Table 2.1 GWSC's Financial Perfornance - 1989-1993 (Cedis millions) 1989 1990 1991 1992 1993 Sales (billion gallons) 15.3 15.9 16.9 18.9 20.0 Average Tariff (Cedis 1000 gallons) 396.8 458.0 551.0 814.4 1,093.4 Revenues 6,054.0 7,263.8 9,308.8 15,625.9 24,039.6 Operating Expenses 4,903.9 5,423.2 8,048.5 11,050.5 15,762.3 Operating Income (Loss) 1,150.1 1,840.5 1,260.3 4,575.4 8,276.2 Less: Interest 438.0 696.9 683.0 1,057.4 1,565.0 Depreciation 2,501.0 1,120.8 1,051.9 1,326.1 1,925.7 Exchange Loss 2,609.1 2,042.0 1,898.6 6,286.7 4,600.0 NET INCOME (LOSS) (4,398.0) (5,925.2)' (2,373.2) (4,094.8) 185.5 Operating Ratio (%) 130 100 105 86 80 Current Ratio 0.6 0.4 0.5 0.8 1.7 Receivables (No. months' billings) 8.9 7.5 11.2 6.7 5.1 1) Included in the net income for 1990 is 3.906 million cedis for end of service benefits. 2.13 The annual operating surplus must be viewed with caution. Much work is needed and is ongoing to clean up GWSC's financial records to allow the Corporation to produce unqualified audited financial statements. As a result of its past weak accounting practices depreciation and interest expense are not accurately reflected. Maintenance costs are underreported pending the preparation and implementation of an adequate O&M program. A meaningful return on, at a minimum, average net fixed assets cannot be determined until GWSC completes its inventory of fixed assets and then revalues them. It is very likely that water tariff increases (in real terms) would still be required over the medium term. These increases are projected to average 10% over the four-year period 1994 to 1997, but these estimates would need to be refined upon resolution of outstanding financial issues specified in para 2.9 above. At the same time, it is expected that operation efficiency improvements under the Water Sector Rehabilitation Project (WSRP), including selective metering and a program to reduce unaccounted-for-water would help contain costs and mitigate the need for huge tariff increases. GWSC has also taken steps to reduce its fuel expenses (diesel, lubricants) by connecting some of its major water supply systems to the national electricity grid. Assuming that planned revenue enhancement measures are implemented and cost containment measures are fully effected, then GWSC could generate sufficient internal funds to cover O&M costs, provide adequate debt service coverage for ongoing projects and generate enough funds to contribute to the capital costs of future projects as covenanted in the Project Agreement of July 28, 1989 for the WSRP. Furm FINANCIAL PERORMANCE 2.14 Projections of GWSC's financial performance have been prepared assuming that GWSC would introduce further annual water tariff increases; water production would increase from 40.8 billion gallons in 1992 to 44.9 billion gallons by 1997 as a result of the physical rehabilitation work under the WSRP and other ongoing schemes; water sales would increase from 18.9 billion gallons in 1992 to 25.9 billion gallons in 1997; non-revenue water would drop from 54% to 42% 18 during the period. The metering program would be completed by 1994 and appropriate bills would be sent out reflecting actual consumption which is assumed to increase revenues. Pending the debt rationalization exercise currently underway, it has been assumed that interest expense would increase over the next four years as GWSC begins to service WSRP loans from Austria, Japan, France, U.K. and IDA. Depreciation expense is assumed to go up as construction in progress gets capitalized and begins to be depreciated; clearly this is an interim measure pending the outcome of the fixed assets registration and -revaluation exercise in mid-1994 which would provide a reliable basis for calculating depreciation expense. Table 2.2 GWSC's Projected Financial Performance - 1993 - 1997 (Cedis millions) 1993 1994 1995 1996 1997 Sales (billion gallons) 20.0 23.0 23.5 24.0 25.9 Average Tariff (Cedis 1000 gallons) 1,093.4 1,373.7 1,732.9 2,022.0 2,234.8 Revenues 24,039.6 34,799.0 44,889.4 53,531.1 63,879.5 Operating Expenses 15,762.3 18,736.4 20,610.0 21,640.5 22,961.0 Operating Income (Loss) 8,276.2 16,062.7 24,279.4 31,890.6 40,918.5 Less: Interest 1,565.0 2,911.4 3,669.4 4,003.6 3,960.1 Depreciation 1,925.7 2,159.1 2,415.9 2,698.3 3,009.0 Exchange Loss 4,600.0 5,290.0 5,819.0 6,110.0 6,415.4 NET INCOME (LOSS) 185.5 5,702.2 12,384.2 19,078.7 27,533.9 Operating Ratio (%) 80 70 60 50 50 Current Ratio 1.7 2.3 5.2 5.5 6.7 Receivables (No. months' billings) 5.1 5.0 5.0 3.7 3.7 2.15 The financial projections indicate that GWSC's financial position could gradually improve so that by 1997, GWSC would be able to contribute funds from internal sources to cover the local costs of capital expenditures incurred and debt service. The current ratio would be maintained well above adequate levels of 2.0, largely due to balances in the Special Account. Cash balances are expected to iccumulate during the latter project years which would be required to support GWSC's contribution to the capital cost of possible new operations. The operating ratio is projected to decrease from 80% in 1993 to 50% by 1997, which is admittedly ambitious, and could settle at 60% if depreciation expense were to increase at the end of the financial management improvements currently underway as part of the WSRP. The receivables position which has historically been high, peaking at 11.2 months of billings in 1991, is projected to conservatively improve to about 4 months of billing by 1997, but is projected to further improve to about 3 months of billing after 1997 when the benefits of the metering program would be felt, customer accounts fully computerized, and the ongoing arrears reduction program would have led to the write-off of uncollectibles. 2.16 Measures have been provided under the WSRP to help steer GWSC toward financial viability, and progress is being made as follows. Project consultants have produced for management action a report on Improvement of Financial Management which has been reviewed 19 internally, and work plans have been prepared for selectively implementing its recommendations, including a work plan for computerizing key financial activities of the corporation as follows: (a) the PMC/PCMU MIS team is developing software for arrears reduction management, fixed assets management and budget and debt management; and (b) software is being procured for computerizing the project accounts department at headquarters and the revenue accounts in pilot districts. An ongoing fixed assets registration and revaluation exercise would provide the corporation the required tool for proper management, supervision and control of its assets. 2.17 Medium-term plans envisage the computerization of GWSC's entire accounting system; a comprehensive training program for GWSC's finance and accounting staff; separate accounting for urban and rural operations and consolidation at headquarters; hiring of qualified chartered accountants in key senior finance/accounting positions (of the existing six accountants, three were recruited within the last year, and further recruitment is ongoing); and privatization of billing and collection. E. CONDITION OF FACILITlES 2.18 GWSC is currently rehabilitating 33 of its larger systems at a cost of US$125 million where co-financiers include IDA, Japan, Austria, France and the UK. Progress in the first two years of the project was quite slow, primarily due to delays in procuring consultant services. Orders have now been placed for the equipment required for the "immediate" action program and it is expected to be installed by the middle of 1994. In addition, hydrologic studies and planning reports have been completed for nearly all the systems and design work on most should be completed. Including the Canadian financed GAP Project in the north and a German financed project in the Eastern Region, about 65 systems would be rehabilitated. Nonetheless, even amongst systems that are being rehabilitated, capacity would need to be doubled during the next ten years to meet demand in many towns. F. OPERATIONS AND MAINTENANCE 2.19 Operating personnel should be given credit for keeping old, worn out equipment running. However, personnel are not equipped or resourced to do preventative maintenance, and have not been trained to do so. Considerable effort would be required to move from a repair to a preventative maintenance regime, and requisite budget must be set aside for it. The Water Sector Rehabilitation Project includes technical assistance aimed at improving operations and maintenance at the rehabilitated systems as well as generally in GWSC. At this time the organizational structure, personnel requirements and equipment needs for a typical region have been agreed upon. In fact, Japan has agreed to increase its contribution to the Water Sector Rehabilitation Project to cover the cost of equipping maintenance units in all regions. 20 III. NATIONAL COMMUNITY WATER AND SANITATION STRATEGY A. OBJECIVES 3.1 The objectives of the National Community Water and Sanitation Program are to: (a) provide basic water services to communities that would contribute towards the capital cost and pay the normal operations, maintenance and repair costs of their facilities; (b) ensure sustainability of these facilities through community ownership management including active involvement of women, private sector provision of goods and services, and public sector promotion and support; and (c) maximize health benefits by integrating water, sanitation and hygiene education interventions. B. OVERALL DEVELOPMENT STRATEGY 3.2 The Government's Decentralization policy is intended: (a) to make districts more autonomous, more responsive to local needs, and better able to assist communities to obtain improved services; and (b) to make communities decision makers, owners, and managers of their water supply facilities. This is being achieved generally by providing direct budget allocations to the districts to help them support local communities, and specifically in the National CWS Program by assisting communities to prepare Facilities and Management Plans and by having them manage operations and maintenance. 3.3 The National CWS Program would be demand driven, as resources would be channeled to individual districts and communities based on the demand for improved services by communities and district performance in supporting them. As a condition for participating in the National CWS Program, districts would be required to establish District Water and Sanitation Teams and to establish a sanitation fund to pre-finance household latrines. The district would be reimbursed for eligible works constructed to specification when project financing is available. 3.4 The private sector would be encouraged to provide all goods and services for community water and sanitation. This would increase implementation capacity, lead to more widespread and sustainable coverage and increased ewployment opportunities in rural areas. Procurement procedures would be designed to encourage the private sector: (a) to help communities to prepare their Water Supply Facilities and Management Plans; (b) to conduct hydrologic surveys and design piped systems; (c) to construct latrines, dug wells, boreholes and piped systems; (d) to help communities to operate and maintain their water supply facilities; and (e) to distribute equipment and spare parts. 3.5 The public sector would play a facilitating role, where GWSC would be contracted by the GOG through a performance contract and individual project financing agreements to manage the National Community Water and Sanitation Program and to provide technical assistance to districts and private sector participants. District Assemblies would promote the National CWS Program amongst their constituent communities, and assist them to obtain construction grants. 21 C. DEFINITIONS 3.6 The definitions of urban and community water supply, basic service, and recurrent costs are important in clarifying roles and responsibilities of communities and the government. (a) Community: A community is a group of households that refer to their settlement by the same name. (b) Urban and Community Water Supplies: Urban and community water supplies would be differentiated on the basis of their management with larger "urban systems" managed on a commercial basis by GWSC's Urban Division, and smaller "community systems", requiring government subventions for the foreseeable future, managed by the communities themselves. Community water supply would include rural communities (less than 5,000 people) and small towns (the upper limit to be determined). (c) Community Management: Community management means that one or more communities or parts thereof, own and manage their water supply facilities including planning, operation and maintenance and collection of revenues to pay recurrent costs. Communities may choose to contract operations, maintenance, repairs and/or revenue collection functions to a private company or to GWSC's urban water supply operations. (d) Water User Group: A Water User Group is a contiguous set of households that collectively plan, own and manage their water supply facilities, more than one of whom may join together to undertake these responsibilities for piped systems, in which case Water User Groups would typically collect revenues and supervise use of water facilities and drainage in their area (para 3.10). (e) Basic Service: Basic service for water supply means a protected, year-round supply of 20 liters per capita per day, preferably within 250 to 500 meters of all households and serving no more than 300 persons per outlet. (f) Recurrent Costs: Recurrent costs include operations, maintenance and normal parts replacement, but not the replacement of major components that exceed the community's financial means. D. SECTOR ORGANIZATION 3.7 The move to community management and private sector provision of goods and services would improve service by allowing the beneficiaries to be directly responsible for the management of their systems and would provide for sustainability by creating a market for spare parts, replacement equipment and repair services. It would also benefit GWSC by transferring management of water supplies in rural communities and small towns over to the beneficiaries, allowing it to focus on its operations in larger towns and urban centers that can be operated on a commercial basis. This would mean that GWSC would end up being directly responsible for about 75 of the largest systems in the country rather than some 25,000 handpumps, 500 rural piped systems, and 250 small towns (if full coverage were to be achieved). The feasibility of any organization anywhere in the world undertaking the latter is doubtful. Regional projects would be encouraged to include small town water supply components, so that experience can be gained in the process of establishing and supporting community management of such systems. 22 3.8 The move to community management and private sector provision of goods and services would also require a redefinition of roles and responsibilities at the local, regional and national levels. These are outlined below. COMMUNry LEVEL 3.9 The acquisition of an improved water supply would start with the application for financial assistance filed by a community through its district. Before a grant is provided, a water and sanitation committee would be formed (or its functions included in an existing group), a specialized bank account under community control would be opened with an initial contribution to the capital cost deposited, and other pre-project obligations met. During the planning, construction and follow-up period the community would participate in hygiene education and training and would be responsible for improving environmental sanitation. Communities would also be fully responsible for the operation and maintenance of their water supplies, including revenue collection. 3.10 The basic planning unit would be a Water User Group (WUG), that is a contiguous set of households which collectively plan for and own its water supply facilities. Each would form a Water and Sanitation Committee (or include its functions in an existing organization) to represent it during the planning process, to manage the system, and to facilitate hygiene education within the community. In the case of piped systems serving more than one WUG, a Water User Association (WUA) would typically be formed to own and manage the system. In this case WUGs would normally be responsible for revenue collection and supervision of facilities use and drainage in their area and the WUA would be responsible for managing the system. Depending on the size of the community and complexity of the technology, operations and maintenance and service of major equipment may be contracted to private companies or GWSC's urban water supply operations. LOCAL LEVEL 3.11 The private sector has the greatest potential and flexibility to respond to community needs for design and construction services, and operation and mainteniance support. The provision of community support (extension services) has traditionally been a government sector activity, however, this is usually only effective when the projects can improve staff motivation and mobility by providing allowances and transport, making it essentially a contract activity. Outside the public sector, NGOs in particular have shown themselves to be good at this type of work, based on an informal approach and highly motivated staff, and both they and the commercial private sector have already shown interest in taking on these activities in Ghana. This work would be carried out under contract, with government playing a supervisory role. 3.12 A further element of institutional development is the establishment of a District Water and Sanitation Team (DWST) in each district. This unit would consist of two or three persons representing skills in community development, hygiene education, sanitation and water supply, drawn from existing district personnel and locally-based, line-ministry staff. The team would manage the sanitation component at we district level and act as a focal point for the water supply component, providing information and coordinating the vetting of Construction Grants Applications and Facilities and Management Plans. Over time, as DWSTs gain more experience, individual districts could play a greater role in the water supply component by pre-financing and managing planning contracts with Partner Organizations (POs), i.e. local NGOs, and construction contracts with hand dug well contractors. They would be an integral part of the district 23 administration, reporting to the district chief executive and under the aegis of the infrastructure subcommittee. The infrastructure subcommittee may also co-opt personnel from GWSC and the decentralized line agencies and sit as a District Management Committee to ensure good coordination with other related sector activities. The development of human resources for the DWSTs and the establishment of financial capacity to invest in the water supply and sanitation sector are critical elements in the development of the CWSP at district level. An organization chart is presented in Annex 1-2. 3.13 Promotion and advocacy fall primarily to the district assemblymen, since politicians are likely to be motivated to bring the services to their electorate and to act as advocates for the communities that they represent. Assemblymen need also be involved as questions of prioritization of communities are likely to arise, and their initiative and leadership would help to establish a sense of ownership of the project by both the district and its people. However, NGOs and other Partner Organizations should also be encouraged to help communities bring forward grant applications. This would allow the CWS project to complement other on-going development activities in communities where they are active, and may also help to direct the project at poorer communities, which are often prioritized by NGOs. REGIONAL LEVBm 3.14 GWSC's Regional Water and Sanitation Teams (RWSTs) would be responsible for implementation of the regional projects. They would assist participating districts to form DWSTs and train them, facilitate the involvement of Partner Organizations and Hand Dug Well Contractors including training and financial assistance, and manage the Construction Grants Program in each region including the review and approval of Construction Grants Applications and Facilities and Management Plans and management of planning and construction contracts. Over time, as DWSTs gain experience and take greater responsibility for planning and construction, RWSTs would focus more on monitoring and evaluation and the improvement and consolidation of the strategy. More technically complex contracts for boreholes and piped systems would remain the responsibility of regional teams. Training units made up of GWSC personnel and individuals hired through the Training Network Center at the University of Science and Technology and a Small Business Development Unit (national NGO) would refine the training materials and methods and train trainers in each region. Additionally, specialist services would generally be provided through a local firm. International specialists would be retained only if persons with the requisite experience are not available locally. They would make periodic visits advising on key issues affecting project implementation. NATIONAL LEVEL 3.15 Just as the delivery of the local level activities is supported by the regional level, so the delivery of regional activities would need support from the national level. While the RWSTs would organize and run most of the training activities, they would need materials (training guides, handbooks, manuals, flip charts, etc.), assistance from more experienced trainers and someone to facilitate lesson learning in different regions. le would be the job of the national office of GWSC's Community Water and Sanitation Division (CWSD) to coordinate the production of such materials, in close collaboration with the Training Network Center for Water and Waste Management (TNC) at the University of Science and Technology, the leading organization in Ghana in this field. This would extend to the training of trainers (RWST and DWST staff) and overseeing the support given to other training institutions. 24 3.16 A related area of activity which should also be seen in the national context is research and development, including the continuous development of detailed project methodology, itself related to monitoring and evaluation, where the national unit would act as a clearinghouse for collating experience gathered in the field and organize the processing of this into improvements in the strategy. In most cases these development activities would need to be closely linked to field work, and they would be carried out by inter-regional specialist groups, as outlined above. The improvements made would be formalized and promulgated in the form of training materials/methods and standards and guidelines, building on those formulated during pre-project activities financed by the Project Preparation Facility (PPF). 3.17 The other main area of national level activity is in planning, budgeting, finance and regulation, tools which would keep the overall strategy on track. During the first years of regional projects, the number of new systems that can be constructed would be limited by implementation capacity. It is important during this period that financing not exceed delivery capacity, in order to avoid the tendency to revert towards a top-down, supply-driven strategy to meet unrealistic facilities quotas. Funds would be budgeted and administered on a region by region basis, with each region estimating its requirements according to existing implementing capacity, the realistic potential for increasing this, and the funds required for capacity building. Each region would establish and manage an imprest account, accounting directly for the operational and contract payments and reimbursement of approved expenditure pre-financed by districts. 3.18 A demand driven approach is essential to ensuring that limited government funds are channeled to communities that will maintain their new or improved water supply and sanitation systems. Such a demand driven strategy would be based on individual communities first deciding whether or not they want to participate in the program and then deciding the type of water supply and sanitation system that they want and how to manage its maintenance. To support this, a range of technical options would be available. Technical and management options would be presented to each community with the aid of easily understandable visual aids so that communities can make informed decisions after considering various alternatives. These extension services would be provided through Partner Organizations (NGOs and private companies) which would be contracted to help communities plan their systems and train them how to manage them, including operation, maintenance, revenue collection, accounting and record keeping. E. SECTOR POLICIES FINANCING 3.19 The CWS Division of GWSC would be contracted by GOG to manage the National CWS Program. Construction grants for communities, schools and health clinics would be channeled through the CWS Division, but districts would be encouraged to pre-finance and let construction contracts first for household and public latrines, and, later for planning and hand dug well contracts, once District Water and Sanitation Teams gain experience and local contractors have been fully pre-qualified. Although the Government would have the chief responsibility for funding the National CWS Program, sustainability is based on community participation. In financial terms this means that the beneficiaries would be required to pay part of the capital cost of basic services (5 to 10%) and all of the recurrent costs of their water and sanitation facilities. Higher levels of water and sanitation service are encouraged, but the beneficiaries would be required to pay a substantial part of the added cost. Community contributions would be paid in cash and in kind, where in-kind contributions correspond to the value of labor that is contributed 25 by the community. Community contributions would be collected in stages during the planning process and to the extent possible kept in bank accounts controlled by them. A rehabilitation fund, managed by GWSC's CWSD, would be established by the Government to which individual communities could apply through their DWST. The fund would provide for cost sharing between the Government and communities for expensive interventions such as when a borehole must be flushed or water supply facilities need to be replaced or completely overhauled. To be eligible for assistance, communities would be required to show records that annual preventive maintenance had been carried out. Refer to the Policies and Guidelines Chapter in the Implementation Manual for more information on channeling funds, community contributions, and grant eligible design criteria. TECHNOLOGY CHOICE 3.20 In a demand driven program, individual communities first decide whether or not they want to participate in the program and then decide the type of water supply and sanitation system that they want, can afford, and can maintain. Different priced water supply options for both point sources and piped systems and information materials, easily understood by community groups, showing typical designs and costs (capital and recurrent) must be available. Technology options would include dug wells with and without handpumps, boreholes with either direct-action or high- lift handpumps, and small piped systems utilizing either groundwater or surface water with appropriate pumping and treatment units. Latrines have been a problem because of their high cost; it is therefore important that a range of different cost designs for improved sanitation be promoted through the National CWS/S Program, both for household and public use. Technologies would include the single pit VIP latrine, the sanplat and Mozambique type latrines with and without a vent pipe, and in some cases the twin pit VIP latrine. Multiple pit VIP latrines (privately operated) would be used at health centers, markets and other public places. 3.21 Groundwater has a number of advantages over surface water for the provision of water supply and is recommended as the source of supply whenever possible: it is available within the community, is more reliable throughout the year and in periods of drought, and generally does not require treatment. Springs and hand dug wells are preferred sources of water because they are relatively inexpensive and provide a good basic service. More expensive machine drilled boreholes should not be encouraged if springs or hand dug wells are available. In all cases care must be taken that the source provides a year round supply of water. Surface water treatment for small piped systems should be based on slow sand filtration preceded by roughing filters and should make use of hydraulic rather than electro-mechanical processes. Infiltration galleries can provide even better and more reliable treatment at lower costs and should be used whenever technically feasible. CONsMaUCON 3.22 Construction would be done by private companies and awarded through competitive bidding, but would allow for in-kind community labor. For example, communities should be given credit for the construction of hand dug wells and pipe trenches as part of their capital cost contribution. Special assistance would be given to hand dug well contractors who could obtain construction equipment through lease-purchase arrangements and management/technical support from the Small Business Development Unit. The National Community Water and Sanitation Strategy's reliance on the private sector for construction services, does not provide a role for GWSC's maintenance unit, and its ongoing support results in unfair competition with private drillers. A review of GWSC's drilling unit would be made with a view toward privatization. 26 OPERATIONS AN MAINTENANCE 3.23 Maintenance of point source water supply systems (wells and spring catchments) would be the responsibility of individual communities with day-to-day management provided by their water and sanitation committees. The Water and Sanitation Committees would supervise use of the pump, collect revenues for recurrent costs, keep accounts, and make repairs themselves or hire the services of a private mechanic. Several water and sanitation committee members in each community (normally women) would be trained to perform all normal maintenance and repairs, and several local mechanics, including representatives of handpump suppliers, would be trained to make all types of repairs. The way in which communities pay for maintenance services would be changed from the current tariff system to a payment-for-services system throughout the country. In those districts where GWSC's 3,000 Wells Maintenance Unit operates and community based maintenance is being introduced, the way in which communities pay for maintenance services would be changed from the current tariff system to payment-for-services- rendered. An action plan for this transition is being prepared by GWSC with the support of consultants financed by KfW and the participation of ESAs active in the sector. Maintenance of piped water and sanitation systems would be the responsibility of the local municipality or Water User Associations who normally would contract operation, maintenance ar- repair functions to a private company or to GWSC's urban water supply operations. Water User Groups formed around one or more standpipes would be billed by the Municipality or Water User Association on the basis of metered water delivered to them. In the long run the best way to ensure that communities have access to replacement components and spare parts is for local retailers to sell pumps, appurtenances and spare parts, and install, warranty and service them. To encourage this, the direct importation of pumps and spare parts by government and international agencies would be phased out. F. SECrOR INVESrMENT PLAN ASSESSED NEED 3.24 A socioeconomic survey of northern and southern communities was carried out to estimate the capacity of villages to pay for, and subsequently sustain, different water supply technologies. The survey results provide some indicative data at the community level of the acceptability of a particular service level as opposed to generating a mass of household statistical data. The survey instrument was divided into three parts: (a) basic village information such as demographics, housing characteristics, settlement patterns and occupations; (b) sustainability issues pertaining to the capacity of villagers to operate and maintain their choice of technology; and (c) the ability and willingness of communities to pay for services. Communities' choice of technology was based on their perception of what option would be reliable, affordable and enduring. The priority in most communities was an increase in the number of water points. Communities that had experience with technological sophistication greater than the standard hand dug well were increasingly prepared to opt for higher levels of service. This suggests that the demand for service may increase incrementally over time. The majority of communities were comfortable with the prospect of managing their ov-i systems, where the technology is within their experience, such as hand dug wells which was in general the technology of choice. It was found that the typical rural household currently spends in excess of six hours per day collecting water from a source that is over one kilometer away in the dry season. An improved water supply can therefore reasonably be expected to reduce this distance significantly which would result in significant time savings. 27 ESTIMATED DEMAND 3.25 In 1990 2.6 million of 9.4 million rural inhabitants had access to improved water supplies. In the next 15 years (2009) the rural population is expected to grow to 13.6 million. To achieve 80% coverage, roughly the anticipated demand and the maximum investment expected to be secured for the sector, an additional 8.4 million people would need to be served. PLANNED INVESTMENTS (SIP) 3.26 To achieve 80% coverage, 15 years from now a total investment of some US$270 million for the planning, design and construction of new water supply facilities would be required. This would involve the construction of an estimated 25,000 dug wells, 7,500 boreholes fitted with handpumps, 500 rural piped systems, and the rehabilitation of the 15,000 existing handpumps. Other technical options such as spring catchments and small dams would be used, but only to a limited extent. This would provide a basic level of water supply service to about 11 million people at a cost of about US$25 per capita including planning, design and construction, and would require an annual investment of about US$18 million. An overview of the sector investment plan is given in Annex 1-1 and presented in more detail in the Implementation Manual. IV. THE PROJECT A. OBjECTIVES 4.1 The project would demonstrate the proposed National Community Water and Sanitation Strategy. In so doing, it would help achieve the objectives of the National CWS Program - that is to: (a) provide basic water services to communities that would contribute towards the capital cost and pay the normal operations, maintenance and repair costs of their facilities; (b) ensure sustainability of these facilities through community management, private sector provision of goods and services, and public sector promotion and support; and (c) maximize health benefits by integrating water, sanitation and hygiene education interventions. B. PREPARATION 4.2 A Rural Water Supply and Sanitation Workshop was held in February 1991 at Kokrobite to discuss a draft sector strategy and action plan (prepared by the UNDP/World Bank Regional Water and Sanitation Group in West Africa). The workshop, and subsequently the Government, adopted the proposed principles, that is community management with cost sharing for capital and full payment of recurrent costs, district focus, and independent CWS Division in GWSC. The Policies and Guidelines and an institutional plan for a National CWS Program, based on these principles, were then developed and refined through a series of national workshops involving organizations and professionals active in the sector. Project preparation was done by MWH, GWSC, Bank staff and consultants, including Co-Water International with financing from CIDA Inc. During pre-appraisal in March 1993 policies and guidelines and project components were agreed upon; and at appraisal in July 1993 implementation strategy was updated at a national workshop, and project details and conditionalities were discussed with the Govermnient and GWSC. 28 C. PROJECT DESCRIPTON 4.3 The project would form one of the elements of the 15-year Sector Investment Program (Annex 1-1 and would be based on the National CWS Strategy (Section II). It would be implemented by GWSC through a new Community Water and Sanitation Division (CWSD). The project would have three components: (a) water supply and sanitation in rural communities; (b) water supply and sanitation in small towns; and (c) public and private sector capacity building. These components are summarized below and described in more detail in Annex 2-1. WATER SUPPLY AND SANTATON IN RURAL COMMUNITIES 4.4 WATER SUPPLY Water supply facilities would be offered to rural communities, schools and health clinics that are prepared to pay part of the capital cost and all of the normal operations, maintenance and repair costs of their systems. In all some 350,000 people would be provided with improved water supply facilities. Potential beneficiaries would be required to submit a request for a construction grant through their District Assembly, and to prepare a Facilities and Management Plan with the assistance of a qualified Partner Organization (NGO paid by project) of its choice when its application is approved for funding. The Facilities and Management Plan would include: (a) a preliminary design and costing of the preferred system in sufficient detail to allow design drawings and specifications to be prepared and GWSC to check for conformance to the Policies and Guidelines for the National CWS Program; and (b) a management plan describing how it would be maintained and how revenues would be collected and accounted for. 4.5 Table 4.1 gives a breakdown of the numbers and types of systems expected to be requested by the 700 rural communities to be served by the project; the actual numbers will depend on demand and actual construction costs. Table 4.1 Estimated Number of Rural Water Supply Facilities to be Constructed by CWSP1 Borehole Rural Piped Region Dug Wells Boreholes Rehabilitation Systems Ashanti 245 55 50 4 Brong-Ahafo 195 105 50 4 Northern 55 45 20 2 Western 245 55 50 4 TOTAL 740 260 170 14 1) Facilities for about 700 rural communities. 29 4.6 Responsibility for implementing the water supply component would be as follows: (a) Communities through their Water and Sanitation Committees (and Water User Associations for small town piped systems) would plan, own and manage their water and public latrine facilities. (b) Districts would promote the National CWS Program through their assemblymen, existing departments and new District Water and Sanitation Teams (DWSTs). The DWSTs would provide a focal point for information about water and sanitation, manage the local sanitation, water and schools programs, support Partner Organizations in their hygiene education efforts, vet Construction Grant Applications and Facilities and Management Plans before passing them on to the District Infrastructure Committee and GWSC's Regional Water and Sanitation Teams (RWSTs), and initially let household latrine contracts and later hand dug well contracts. (c) RWSTs would be responsible for overall implementation of the project in each region including provision of training and technical assistance to districts and the management of planning and construction contracts. (d) Partner Organizations (POs) would assist rural communities to mobilize for planning, prepare their Facilities and Management Plans and train them to manage their systems and encourage them to use good hygiene practices. (e) A Small Business Development Unit (SBDU) would provide training and technical assistance to Partner Organizations and hand dug well contractors, and prepare and refine training materials and methods for them. (f) The Training Network Center for Water and Waste Management at UST would help GWSC to prepare and refine training methods and materials, to train RWSTs and DWSTs, and to monitor and evaluate implementation of the National CWS Program. 4.7 SANITATION Sanitation facilities for households, schools and public places would be provided under this component (Annex 3-2). DWSTs would have primary responsibility for implementing the sanitation sub-component but would be assisted by RWSTs. DWSTs would: (a) promote sanitation through local artisans, schools, assemblymen, and public organizations; (b) identify artisans and small contractors interested in constructing household and public facilities and organize training for them; and (c) manage the District Sanitation Fund. RWSTs would: (a) train district personnel and latrine contractors; (b) supervise the construction grants program; and (c) monitor and evaluate the component. Ten percent of the project construction budget is earmarked for sanitation, but it could be raised or lowered (5% to 15%) depending on demand. This will finance between 2,000 and 6,000 household latrines. 4.8 HYGIENE EDUCATION Hygiene education would be integrated into the process of mobilizing and training communities to manage their water supply and sanitation facilities in order to better ensure that the health aspects of water and sanitation are given a high profile throughout the project cycle. This means that all of those involved in community animation (DWSTs, POs, and WATSAN Committee members), including both hardware and software specialists, would be 30 given training in hygiene education and would play a role in promoting and delivering hygiene messages using participatory techniques. During PPF financed pre-project activities a set of priority messages would be selected on the basis of their relevance to water and sanitation, what is achievable by the target group, and what would have the greatest impact on health. Hygiene education would be taken on by the community as one of its obligations in developing a water supply, and would become a standard topic of discussion at WATSAN Committee meetings and discussed within the community by Village Volunteers). 4.9 To encourage children to use good hygiene practices and become accustomed to using latrines, a school hygiene education program would be offered along with improved sanitation and water (if needed) facilities. Participation would be conditioned on: (a) local Parent Teacher Associations requesting the facilities and agreeing to the financial and management arrangements required of individual communities; and (b) several teachers participating in a hygiene education workshop for the trainer of trainers. Materials and methods developed by the project would be used to instruct children in benefits of good hygiene practices and the proper use of water and sanitation facilities. DWSTs would coordinate the local program and RWSTs would train the teachers. WATm SUPPLY AND SANITATION IN SmALu Tows 4.10 WATER SUPPLY Water supply systems in about 30 small towns with populations between 5,000 and 20,000, serving some 250,000 people, would benefit from the project. Facilities for about 20 small towns in the three northern regions where a CIDA assisted small towns project is already underway and facilities for about 10 small towns in the three southern regions would be provided through IDA funding under this component. It is expected that a mix of technologies would serve a small town, where, for example, a piped system might serve the higher-density, higher-income central business district and individual wells would serve the peripheral areas. To gain as much experience as possible, at least one town in each of the three southern regions that has an existing system and would be prepared to take responsibility for managing it, would be selected at the beginning of the project and management of the system would be turned over to the community as quickly as possible. 4.11 Table 4.2 gives a breakdown of the numbers and types of systems expected to be requested by the 30 small towns to be served by the project; the actual numbers will depend on demand and actual construction costs. 31 Table 4.2 Estimated Number of Small Town Water Supply Facilities to be Constructed by CWSP1 Small Town Region Dug Wells Boreholes Piped Systems Southern Ashanti 65 20 4 Regions Brong-Ahafo 45 20 3 Western 55 15 3 Northern Northern 85 30 8 Regions Upper East 65 20 6 Upper West 65 20 6 TOTAL 380 125 30 1) Facilities for about 30 small towns. 4.12 The planning process would be much the same as used in the rural component starting with Construction Grants Applications by the towns, establishment of Water and Sanitation (WATSAN) Committees, preparation of Facilities and Management Plans, collection of community contributions for the capital cost, and construction. During the mobilization process Water User Groups (WUGs) (that is, households that collectively plan a water supply in their area, manage it, and collect revenue to maintain it) would be identified and WATSAN Committees representing them would be formed. In the case of piped systems serving more than one WUG, a Water User Association (WUA), made up of one or more representatives of each WATSAN Committee, would be formed to manage the, system including operations, maintenance, revenue collection, accounting and record keeping, and repairs. WATSAN Committees, unless otherwise specified in the town Facilities and Management Plan, would collect revenue from individual households and promote improved environmental sanitation and personal hygiene practices. 4.13 An experienced local planning and design firm (or joint venture) would assist small towns to mobilize for planning, formulate their Facilities and Management Plans, prepare engineering designs and specifications, supervise construction, and train the Water User Associations and WATSAN Committees to manage their facilities. They would be supported and managed by a small team within GWSC based in Kumasi serving Ashanti, Brong-Ahafo and Western Regions. 4.14 SANITATION Sanitation facilities for households, schools and public places would also be provided under this component (Annex 3-2) in the three southern regions. Similar to the rural component, local artisans and contractors would have key roles in promotion and construction. The appropriate pre-financing mechanism and local personnel responsible for coordinating the program would need to be decided on a case by case basis. About 10% of the construction budget for small towns would be set aside for sanitation. This could be higher or lower (5% to 15%) depending on demand. 32 4.15 HYGIENE EDUCATION As in the rural component hygiene education would be integrated into the process of mobilizing and training communities to manage their water supply and sanitation facilities. While good water use "atices and latrine use would be encouraged in this component, greater emphasis would be placed on solid waste and drainage in small towns than in rural communities. A hygiene education program in some local schools would also be introduced. PUBC AND PRIVATE SECM CAPACT BURMDfNG 4.16 PRIVATE SECToR The private sector would be encouraged to take the lead role in planning, construction, maintenance, and eauipment distribution for water supply and sanitation facilities (Apnex 34). Private firms and artisans would be contracted to provide these services and where necessary would be given practical training and financial assistance through hire- purchase arrangements. As far as possible reliance would be placed on existing NGOs and private companies. Specifically, the project would work through the private sector to assist communities to plan their water supply systems; to construct piped systems, boreholes, hand dug wells and latrines; to supply pumps and spare parts; and to provide maintenance and repair services to communities (para 6.1). As planning assistance to communities by Partner Organizations and construction of hand dug wells by local contractors are both essential to the success of the project, a Small Business Development Unit (i.e. an NOO experienced with working with communities and dug well contractors) would be hired to help identify potential Partner Organizations and dug well contractors and to provide training and on-the-job support to them. 4.17 PUsuc SECTOR Through this component of the project the public sector, specifically GWSC, would shift from providing services to facilitating private sector provision of goods and services and community management. GWSC's Community Water and Sanitation Division would be charged with managing the National CWS Program, and district assemblies would be responsible for directly supporting communities to obtain improved services. Training of decision makers, project personnel at the district and regional levels, teachers and community members is essential. The training program outlined in Annex 3-5 should ensure development of adequate capacity for the implementation of the National CWS Program. Activities include the refinement of the training materials and methods needed for the both the rural communities and small towns and training of trainers in each region. 4.18 Project manag-ment would be the responsibility of the CWSD within GWSC at the regional and national levels, while management at the district level would be the responsibility of individual districts and their DWSTs. The roles and responsibilities of GWSC and the district assemblies are summarized in paras 3.11 to 3.18 and given in more detail in Annex 1-2. Suitable consultants as required will be appointed by GWSC on terms and conditions agreeable to IDA to assist with project implementation (para 6.1). Consultant services by international specialists would be used only on a short term basis and for specific inputs. While the GOG would pay all district and GWSC CWSD salaries and operational costs in the long run, IDA would finance a part of these incremental costs on a declining basis in the CWS Project. 33 D. CosMs 4.19 The estimated total cost of the project is US$27.0 million (including taxes and physical and price contingencies) with a foreign exchange component of US$15.4 million equivalent or about 60% of the total project cost as summarized in Table 4.3 below. Detailed cost estimates are provided in Annex 2-1. The project cost includes an estimated US$9.2 million for water supply and sanitation facilities in rural communities (34%), US$10.3 million for water supply and sanitation facilities in small towns (38%), US$7.5 million for capacity building for the public and private sectors (28%) of which US$0.55 million was for a project preparation advance. Base costs are expressed in expected January 1994 prices. Import duties and taxes on project related components are estimated at US$0.9 million equivalent. Physical contingencies have been set at 5%; while this is lower than normal, the number of water points to be constructed can be more or less than the number estimated during project preparation depending on the mix of technologies selected by communities, the actual cost of each type of system and the available budget. Local inflation rates used to estimate price contingencies are 22.2%, 17.5%, 12.5%, 10%, 10%, 10%, and 10% for FY1994 through 2000 respectively and international inflation rates are 2.0%, 3.2%, 3.0%, 2.8%, 2.6%, 2.5%, and 2.5%. Exchange rates (cedis per US dollar) used are 810 (835 at negotiations), 1025, 1120, 1390, 1280, 1375, and 1475 for FY1994 through 2000. Table 4.3 Estimated Project Cost Local Foreign Total Component (US$ million) Rural Water and Sanitation 3.03 4.91 7.94 Small Towns Water and Sanitation 3.74 5.13 8.87 Capacity Building for Public and Private Sector 2.80 3.16 5.96 PPF 0.19 0.36 0.55 BASE COST (Jan. 1994) 9.76 13.56 23.32 Physical Contingencies 0.55 0.72 1.27 Price Contingencies 1.28 1.13 2.41 TOTAL PROJECT COST 11.59 15.41 27.00 E. FINANCING 4.20 The IDA credit would finance training, technical assistance and rural water and sanitation facilities in the Ashanti, Brong-Ahafo, Northern and Western Regions, as well as small towns water and sanitation facilities in Ashanti, Brong-Ahafo, Western, Northern, Upper East and Upper West Regions. CT' would provide training and technical assistance for the small towns component in the Northern, Upper East and Upper West Regions as part of its continuing assistance program there. 34 4.21 The financing plan is given in Table 4.4 below. It is proposed that US$21.96 million (80% of total project costs net of taxes) would be financed from IDA funds. The Government of Canada would finance US$1.68 million, and the Government of Ghana would finance US$2.46 million in equivalent local costs, and the communities would finance US$0.90 million in equivalent local costs. The IDA loan would be made to the Republic of Ghana and would be passed on to the implementing agency under the terms of a financing agreement with GWSC. The project would require annual budgetary allocations from the Government of about £60 million in 1994, C245 million in 1995, 1520 million in 1996, C830 million in 1997, C800 million in 1998, C300 million in 1999 for a total of C2,755 million (US$2.46 million). Requisite funds would be allocated for the Public Investment Program. Table 4.4 Project Financing Plan Local Foreign Total Sources of Funds (US$ million) Government of Ghana 2.46 0.00 2.46 Communities 0.90 0.00 0.90 Government of Canada 0.62 1.06 1.68 IDA 7.61 14.35 21.96 TOTAL SOURCES 11.59 15.41 27.00 CosT RECOVERY 4.22 Communities, schools and health clinics would be required to pay about 5 to 10 percent of the capital cost of a basic water supply and public sanitation facilities plus half the added cost of higher levels of service, and individuals would be required to pay half the cost of household latrines, plus the full added cost of higher levels of service (para 6.1). Communities would also be required to pay all recurrent costs for normal operations, maintenance and repairs. Specific cost sharing figures are given in Annex 1-2 and the Implementation Manual. These would be reviewed annually and modified as required. F. IMPLEMENTATION PLAN IMPLEfENTING AGENCY 4.23 The GOG has (a) signed a Letter of Sector Policy for rural water supply; (b) approved Policies and Guidelines and an Institutional Plan for its new National Community Water and Sanitation Program; (c) entered into a Performance Contract with GWSC to manage the Program, including the IDA-financed Community Water and Sanitation Project (CWSP); (d) agreed to carry out the IDA-financed project in accordance with the Implementation Manual and not to amend it without IDA agreement; and will enter into a Financing Agreement with GWSC through which the proceeds of the credit would be passed on by Government in grant form to GWSC (para 6.1). A Community Water Supply Division (CWSD), separate from GWSC's Urban Water Supply 35 Division whose head reports directly to GWSC's Managing Director, has been established for this purpose. In addition, an action plan for restructuring the overall water sector was agreed upon during negotiations and is given in Annex 1-4. The Action Plan will comprise (a) appointment of a steering committee; (b) selection of consultants (to be financed under a Japanese grant) to assess the feasibility of restructuring options; (c) workshop to review consultant report and recommend options; (d) decision by the Minister of Works and Housing to adopt a restructuring option; (e) preparation of a detailed implementation plan; and (f) implementation of the detailed plan. 4.24 Contractual terms for personnel to be employed in GWSC's CWSD (including fixed term contracts) that are as competitive as possible with the private sector have been approved by GWSC's Board of Directors. This is linked with GWSC's current effort to restructure its salary and benefit packages for all employees. Over a five year period some 100 professional and 200 support staff will be recruited for the CWSD, including the transfer of about 25 professional staff currently involved in GWSC's rural operations. To prepare for the project GWSC has also established offices for the CWSD in Accra, Kumasi and Sunyani; and District Water and Sanitation Teams have been formed in two districts in Brong-Ahafo Region. Refer to Annex 1-2 of this report and the chapter on project management in the Implementation Manual for more information regarding staffing and scheduling of project start-up and expansion. 4.25 RURAL COMMUNnflES The water and sanitation component in rural communities would be managed by Regional Water and Sanitation Teams within GWSC's CWSD, headed by a Regional CWS Coordinator and made up of specialists in community development, health, water and sanitation engineering, hydrogeology, accounting and contract management. Each team would be fully responsible for implementing the National CWS Program within its region and each would receive assistance from headquarters personnel and a zonal training team. The training team would be made up of several CWSD personnel and several training specialists contracted through the TNC. In this way the project can strengthen the TNC while best ensuring that lessons being learned by their staff in other regions would be immediately shared with the project. The training unit would be responsible for refining training materials and methods and training trainers in each region. As part of this they would organize training for specialist groups formed from personnel in each region who would meet regularly to draw on one another's experience. In addition, a Small Business Development Unit (national NGO specializing in rural water and sanitation) would be contracted to provide technical assistance to partner organizations and hand dug well contractors. 4.26 In addition to the TNC and SBDU, local and international specialists in participatory training, training materials preparation, water engineering and financial management, plus others as required would be made available to the project through a firm experienced in community managed water supply. Key individuals would visit for short periods from time to time to advise/train project personnel and to assist with monitoring and evaluation. A local person employed by the international firm would liaise with the Technical and Training Coordinators at GWSC's headquarters, TNC personnel, and would work closely with each of the Regional CWS Coordinators. He/she would provide ongoing monitoring and evaluation, advise on project implementation, and at nge for short term consulting services from the local and international specialists noted above. 4.27 SMALL TOWNS The water and sanitation components in small towns would be managed by Small Towns Units based in Tamale and Kumasi, serving the northern and southern three regions respectively. The northern unit already exists under a Canadian assisted project; the southern unit would be formed during first six months of project as part of GWSC's CWSD and 36 supported administratively by the RWST in Ashanti Region. The unit would be staffed by specialists in community development, water and sanitation engineering, and hygiene education, one of whom would be the team leader. The Unit would work closely with and be responsible to GWSC Regional Directors and Regional CWS Coordinators. They would be assisted by the short terms consultants hired internationally (para 4.25). Technical assistance would be contracted to a local firm to help small towns mobilize for planning, develop facilities and manageient plans, prepare designs and specifications, supervise construction, and train Water User Associations and WATSAN Committees to manage their systems. PROJECT START-UP 4.28 During the preparatory phase of the Project, the following actions were completed: (a) Policies and Guidelines, Institutional Plan and draft Letter of Sector Policy for the National Community Water and Sanitation Program were prepared, approved by GWSC's Board of Directors and submitted to the MWH and IDA. (b) The Letter of Sector Policy and GWSC's 1994 Performance Contract were signed. (c) A Community Water and Sanitation Division within GWSC was established that is financially independent of its urban operations and whose head reports directly to the Managing Director. (d) Contractual terms for personnel to be employed in GWSC's CWS Division, that are as competitive as possible with the private sector, including fixed term contracts, were formulated and approved by GWSC's Board of Directors. (e) Contracts were signed with the Training Network Center and Small Business Development Unit for their assistance during the PPF-financed phase. (f) CWS Division offices were established in Accra, Kumasi and Sunyani. Also key personnel needed for the start-up phase of the Project were either assigned to the Project from within GWSC or interviewed, shortlisted and invited to attend the introductory workshop scheduled for April 1994, following which final selection will be made. Key personnel include a headquarters technical coordinator (1), headquarters accountant/procurement officer (1), regional accountant/contract officer (1), regional community development and training officers (3), regional water and sanitation engineers (3), and regional sanitary engineer (1). (g) Two District Water and Sanitation Teams were formed in Brong-Ahafo Region and one Partner Organization was identified there. 4.29 During the start-up phase, project personnel will gain experience in going through the project cycle (mobilization, planning, design and construction) with selected communities, and initiating the district sanitation program. During this phase the initial participating districts in Ashanti and Western Regions, and Partner Organizations and hand dug well contractors in all three regions will be identified, small towns that would participate in the project would be identified, and additional staff recruited. Additional information on project start-up is given in Annex 2-2. PROJECT EXPANSION 4.30 The CWSP will start small and scale-up gradually, starting with two districts in Brong- Ahafo Region during the start-up phase of the project (one year PPF-financed, pre-project phase followed by the first six months after project effectiveness); expanding to the other three regions after that (January 1995), adding about two new districts per region each year. In each 37 participating district about 10 communities per year would receive a water supply construction grant allowing the construction typically of one or two water points each. This will require the construction of about 1000 new water points and rehabilitation of about 170 existing handpumps in the four regions during the project. Table 4.5 gives more detailed information about the numbers of districts, communities and water supply systems expected to be involved in the project each year. Planning activities will commence in all of the small towns in the first two years. 4.31 Prior to commencing activities in a region, a workshop would be held for regional and district decision makers and organizations involved in the water sector. Thereafter, RWST members would be available to address individual district assemblies to explain the CWS Program to them and advise them on related opportunities and responsibilities. Districts can participate in the project to varying degrees. In fact districts that want to participate fully would be required to start by establishing a District Water and Sanitation Team including an offices and a budget for it, setting up a district water and sanitation fund, and successfully implementing the household sanitation component of the project. Thereafter, they would be given priority for participation in the water supply and school components. During the six month period before a district begins full participation in the project, a start-up workshop would be held to inform local decision makers, line ministry staff and groups interested in becoming Partner Organizations about the project, its design principles and their role in it. During this six month period a Small Business Development Unit would identify potential Partner Organizations in the district and assist them to make the best possible proposal to GWSC for their selection. When one has been selected the SBDU would continue to provide management and technical advise to it for several years. Table 4.5 Numbers of Districts, Communities and Water Supply Systems Cumulative Totals Year 1 Year 2 Year 3 Year 4 Year 5 Number of DWSTs (partial participation) 0 3 6 9 10 Number of DWSTs (full participation) 6 12 18 24 30 Number of rural communities with improved water supplies 35 150 300 550 700 Number of rural water points constructed 50 200 450 800 1000 Number of small towns with planning complete 5 20 25 30 30 Number of small towns with construction complete 0 5 20 25 30 Number of household latrines constructed 200 600 1500 2500 4000 Number of schools participating 10 40 100 175 250 REVIEWS 4.32 During negotiations, the Government agreed that a mid-term project review will be carried out involving IDA and relevant government agencies no later than December 1996 to evaluate and assess: (i) overall progress made in project implementation with respect to key monitoring indicators agreed with IDA; (ii) effectiveness of GWSC as the implementing agency and districts as lead agencies at the local level; (iii) ability of comnunities to plan and manage their water supply facilities including their record of payment of capital and normal recurrent costs; (iv) effectiveness of Partner Organizations in assisting communities to plan their water supply systems and training them to manage them and private contractors in constructing water and sanitation facilities; and (v) effectiveness of sanitation and hygiene education programs. GWSC will prepare, two months ahead of time, the reports required for a comprehensive mid-term review. In addition to the mid-term review, it was agreed that annual reviews will be completed no later than December 31st of each implementation year to 38 assess progress and evaluate performance during the past year and review and agree on the work program and budgetary allocations for the following year with particular attention paid to capacity building and the training program (para 6.1). G. IMPLEMENTATION CYCLE IN RURAL COMMUNITIES AND SMALL TowNs INFORMATION AND REQUEST 4.33 The CWSD would provide printed and other material for use by District Assembly members, government and non-government field workers, schools and the National Literacy Program. The media, district assemblymen, line agency personnel, NGOs and/or Partner Organizations would disseminate information about the CWSP and help interested communities to prepare an application for a construction grant. The DWST would visit the community to verify and, if necessary, supplement the information given. All applications would be reviewed by the DA sub-committee responsible for overseeing the CWSP, which would endorse and forward them to the regional CWSD office. The CWSD would then divide the applications into packages for assignment to POs. MOBILIZATION AND PARTICIPATORY PROJECT PLANNING 4.34 A project preparation contract would be drawn up for each community in a package, and signed by the relevant PO, which would also receive an advance payment for each contract. Copies of the contract would be forwarded to the DWST, which would make regular visits to the communities concerned to supervise and support the PO activities, and also promote coordination of this work with other related activities being carried out in the same communities by other agencies. The POs would provide quarterly reports which the DWST should forward, along with any other comments and observations, to the regional CWSD office, which would be responsible for overall progress monitoring. 4.35 The second contract payment to the PO is conditional on community mobilization criteria set out in the project preparation contracts being fulfilled. This would be assessed by the DWST, with regional CWSD support. If the criteria are met, payment would be made and the PO would continue with the participatory project planning phase. If the criteria are not met and it can be shown that the extra work is required because of exceptional circumstances, additional payment may be made for this work under an addendum to the contract, and the PO would be authorized to carry out further mobilization work otherwise the contract for that particular community would be terminated. 4.36 Management of the participatory planning phase would be the same as for mobilization, except that the need may arise for specialized services such as hydraulic design or hydrogeological investigations (prospecting for hand dug wells would be done POs using a hand augur lent by the DWST). In these cases, the PO would make a request through the DWST, which would pass it on to the regional CWSD for assignment to a consultant selected through local competitive bidding. Under the terms of such contracts, the consultants would be required to coordinate their activities with the PO, since they would often involve socially sensitive work such as borehole siting, where the presence of the PO would be critical. 4.37 The final product of participatory planning is a Facilities and Management Plan setting out the design of the water supply and any communal sanitation facilities, as well as details of how the facilities are to be managed and financed and who is to undertake continuing hygiene 39 education. This would be checked by the DWST for completeness and any obvious errors, and, if found satisfactory, forwarded to GWSC's regional CWSD office to check for conformance to the CWSP Policies and Guidelines of the Ministry of Works and Housing. At this time the community would be required to show proof that its cash contribution to date had been deposited in a bank account and in the case of piped systems in a signatory account with the district assembly. Deposits would have been made in stages starting with a C100 per person application fee for all types of systems, plus a C500 per person fee if geophysical surveying is required to site a borehole, plus a 01,000 per person fee for piped system design. In the case of hand dug wells no cash contribution beyond the application fee would be required if the community uses self-help labor to dig down to the water table. In the case of boreholes, a community may need to top up its contribution depending on the type of handpump it purchases. And in the case of piped systems, a community would need to deposit the balance to its contribution in a joint signatory account with the District Assembly prior to a construction contract being let, part of this amount could be set aside for operations and maintenance if the community uses self-help labor to dig pipe trenches. Incomplete or otherwise defective Facilities and Management Plans would be returned to the community/POs for correction. CONSTRUCTION 4.38 Approved Facilities and Management Plans would be packaged by CWSD and either assigned to contractors previously selected or let to other contractors through local competitive bidding. All construction contracts would require a pre-construction meeting at the DWST office at which the contractor, community, Partner Organization and DWST would be represented. A work schedule would be agreed upon and communities would reconfirm their in-kind contributions. 4.39 During construction, the DWST would supervise and report on the progress of work both by the contractor and the PO, whose project preparation contract continues with hygiene education and community level capacity-building until a year after completion of the works. When a borehole is drilled, the yield test may show a substantially greater or lesser yield than that planned for, in which case further planning work with the community may be necessary. This can be arranged under an addendum to the project preparation contract negotiated between CWSD and the PO. On substantial completion of works, the CWSD would issue a certificate of satisfactory completion, and pay the contractor any outstanding sums, excluding the retention fee, which may be due. At a ceremony on site, the community would formally take over the system and countersign the certificate of satisfactory completion. FoLLow-UP 4.40 During the first 12 months after completion of the works, whilst the community now has full responsibility for the system, the contractor must make good any defects arising from faulty workmanship or materials, and the PO must finalize its work, leaving the community able to continue managing operations and maintenance and a continuing hygiene education program, having achieved the hygiene targets set during mobilization. Once the DWST provides a satisfactory report, final payments would be made to the contractor and PO. 4.41 After the 12-month warranty period is over and the contractors and PO discharged, the DWST would continue to monitor the project, focusing particularly on the length, frequency and causes and remedies for interruptions in water supply, key factors which would be needed for evaluating sustainability after five or ten years have passed. 40 Table 4.6 Community Level Project Cycle Phase Activities Promotion 0 Publicity: Media, district assemblymen, line agencies, NGOs and other POs disseminate information about the CWSP and promote community participation. * Construction Grant Application: Community requests assistance through DA 'r financial assistance to improve its water supply facilities. * Verification and review: Need and interest verified by DWST, endorsed by Di. JA passed on to RWST. Mobilization * Project preparation contract: RWST contracts PO (local NGO) to provide training and TA for communities. Assisted by SBDU PO fully qualified if initial contract completed satisfactorily. * Community mobilization: POs mobilize communities ensuring women and minority group involvement in planning, strengthen/establish WATSAN Committees and facilitate community needs assessment. * Commitment fee: Community deposits C100 per person in WATSAN bank account. * Action plan: Community takes action on improved hygiene and environmental sanitation program it sets for itself. * Mobilization assessment: DWST/RWST give approval to proceed with planning, requires further mobilization or terminate support for community. Participatory * Preliminary design: Technical option and service level chosen by community with Planning technical assistance from PO/STPC. * Water source siting: After community shows proof of 0500 per person deposit to WATSAN bank account, CWSD authorizes local firm to confirm feasibility of proposed water source and to site the proposed boreholes. No additional cash deposit required for hand dug wells. * Continued mobilization: PO continues support to community hygiene/environmental action program, strengthening WATSAN Committees and formation of WUAs for piped systems. * Facilities and Management Plan: With assistance of POs/STPCs community prepares FMP giving proposed design, expected cost and management/financing plan; submits it to DWST including proof of deposit of cl,000 per person deposit to WATSAN bank account for those wanting piped systems and full deposit of community cash contribution for dug wells and boreholes. * Appraisal of FMP: After endorsement of DA, FMP appraised by RWST. Dug wells and boreholes approved for construction and piped systems approved for detailed design. * Design: Piped systems designed. Construction * Community support: PO continues with hygiene training and strengthening of POs/WUAs. * Construction: Wells and boreholes assigned to construction contractors previously selected, piped system works packaged for local tendering after community cash contribution is paid in full. * Certification: WATSAN Committee, DWST and RWST sign certificate of completion after system tested and commissioned. Follow-up * Warranty: Equipment suppliers, contractors and POs all on 12 month retention. * Follow-up: PO consolidates WATSAN Committee and WUAs and supports establishment of community management. * Monitoring and Evaluation: PO, DWST and community carry out participatory evaluation one year after woks are commissioned to check progress and sustainability. DWST makes occasional visits to communities and always available to support them. CWSD Community Water and Sanitation Division RWST Regional Water and Sanitation Team DA District Assembly SBDU Small Business Development Unit DWST District Water and Sanitation Team STPC Small Towns Planning Company FMP Facilities and Management Plan WATSAN Water and Sanitation NGO Non-governmental Organization WUA Water User Association PO Partner Organization 41 H. ENVIRONMENTAL Assacrs 4.42 One of the principal objectives of this project is the improvement of environmental health. It would, therefore, have a beneficial impact on the environment and the quality of life. This primarily would be through improved sanitation and hygiene practices in the home and around the community. There are some potentially negative impacts, however, which must be considered during project implementation. The environmental category is B. (a) Improved water supplies bring more water for domestic use but also increase sullage. Without proper drainage this results in ponded water and muddy areas around water outlets (standpipes, yard taps, handpumps and wells) and along community pathways, and the creation of potential guinea worm reservoirs and mosquito breeding grounds. Provision of soakaway pits at water outlets and user training regarding the proper management of water point surrounds would safeguard against such problems and would be provided by the project. In addition, the few households that connect to a piped system and have multiple water fixtures would be required to install a septic tank and an adequately sized drain field. (b) Water wells are subject to contamination from surface water, livestock watering troughs and latrines. Consequently, it is important that wells and well aprons are designed to prevent contamination of the groundwater and that sources of contamination are separated by minimum adequate distances. Both designs and setback distances would be specified by the project. (c) Water quality can be a problem in coastal areas due to salt water intrusion of more permeable aquifers and in some localized areas iron and manganese concentrations are high. Water quality testing would be carried out for all water sources. (d) Water extraction in rural communities is too small to affect groundwater resources other than in the immediate surrounds of the well where the pumping capacity may exceed the aquifer yield and result in damage to the pump, but not the environment. Care would need be taken, particularly in small towns where higher yielding wells are required, to ensure that well yields are sustainable and pumping rates do not exceed yields. Similarly, spring fed and surface water supplies may not provide sustainable supplies in both wet and dry seasons and in drought periods, and extractions can adversely affect downstream users. In such cases a hydraulic study would be made to assess the sustainability of the supply and potential impact on downstream users. Actions would be taken as required to mitigate these problems. (e) The project does not involve dams or resettlement. I. PROCUREMENT 4.43 The procurement methods for the items to be financed by IDA are summarized in Table 4.7 and given in more detail in Annx 2-3. The major types of procurement in the project would be civil works, equipment and consultant services. Civil works would consist primarily of construction of small piped water supply systems, boreholes, hand dug wells and latrines as well as for the rehabilitation of some existing boreholes. Equipment would include handpumps, electrical/mechanical equipment for piped water supply systems, vehicles and office equipment. Consultants would be hired through five contracts: one with the Training Network Center for Water and Waste Management at the University of Science and Technology, a second with a local Small Business Development Unit (NGO), a third with a local planning/design firm experienced in participatory communication techniques, a fourth 42 with a geophysical survey company for well siting, and a fifth with a consulting firm to provide local and international specialist services on an as need basis. Both project specific and career related training would be provided. 4.44 Civil works valued at more than US$1.5 million per contract would be procured through ICB, including one or two contracts for borehole construction with an estimated value of US$6 million. All other civil works contracts would be let through LCB including some thirty contracts for hand dug wells with an estimated value up to US$3 million, and six to eight contracts for pipelines and storage tanks for piped water supply systems with an estimated value up to US$5.5 million, giving an aggregate limit of US$8.5 million. In addition some 2,000 contracts for household and public latrines with an aggregate limit of US$1 million would be let through District Assemblies as intermediate financiers. 4.45 Goods valued at more than US$200,000 per contract would be procured through ICB, including a single contract for 4-wheel vehicles valued at up to US$650,000 and another for motorbikes valued at up to US$250,000. Goods valued at more than US$50,000 per contract with an aggregate limit of US$200,000 would be procured through international shopping. Goods of lesser value could be procured through local shopping based on at least three quotations with an aggregate limit of US$100,000. The supply, installation and first year servicing of handpumps (initial contract valued up to US$0.5 million and later direct purchasing by beneficiaries under a voucher system up to a total value of US$1 million) and electrical/mechanical equipment for piped water supply systems (six to eight contracts with an aggregate value of up to US$1.5 million) would be procured through local competitive bidding. 4.46 Procurement documentation and arrangements for each consultant contract valued at US$25,000 or more would be subject to prior review by IDA. Contracts for works and goods estimated to cost the equivalent >f US$100,000 or more would also be subject to prior review by IDA. Other contracts that are below these limits but used repeatedly (including dug wells, latrines and technical ass.,tance for rural communities) would also be subject to prior review by IDA the first time they are employed in the project. Table 4.7 Summary of Procurement Arrangements (US$ millions Equivalent) Project Component ICB LCB Other TOTAL Civil Works 5.87 8.04 0.65 14.57 (5.52) (7.00) (0.36) (12.87) Equipment and Materials 0.91 2.51 0.20 3.62 (0.91) (2.30) (0.20) (3.41) Training & Consultant Services 0.00 0.00 6.10 6.10 (4.16) (4.16) Operating Costs 0.00 0.00 2.16 2.16 (0.97) (0.97) PPF 0.00 0.00 0.55 0.55 (0.55) (0.55) TOTAL PROJECT 6.7 10.55 9.66 27.00 (6.4) (9.30) (6.24) (21.96) 43 4.47 Internatonal competitive bidding (ICB) would be used to hire the services of one or two drilling companies to construct about 400 new boreholes. Procurement would be done through a single tender procedure at the beginning of the project with work divided into two lots along regional lines. A bidder could bid on either or both lots. Bids would be evaluated on the price offered for a typical well geometry, but a bill of quantities valued by the bidder would be used to price completed works. An annual price adjustment would be allowed. ICB would also be used to purchase vehicles and motorbikes, each under a single contract but with spaced delivery and price adjustment. 4.48 Local competitive bidding (LCB) would be used for hand dug wells, pipelines and storage tanks for piped systems, electrical/mechanical equipment for piped systems, and handpumps. (a) Hand dug wells: Some 1100 hand dug wells would be constructed under the project. Potential contractors would have to go through a qualification process: (i) meeting requirements for equipment and completion of civil works; (ii) successfully completing an introductory training course; and (iii) constructing about 40 wells under a first contract, starting with five during which on the job training would be provided and then constructing additional lots. Two companies per region would be contracted in the first year and at least one additional one in each of the following two years. When there are at least three fully qualified contractors in a region, wells would be packaged and contracts let annually through local competitive bidding by either RWSTs or District Assemblies. Districts would be required to pre-finance construction but would be reimbursed by the project for eligible work completed to specification. (b) Pipelines and Storage Tanks for Piped Systems: Civil works for piped systems for about 16 rural communities and 30 small towns would be packaged and let through one or more contracts each year. (c) Electrical/Mechanical Equipment for Piped Systems: Electrical/mechanical equipment for piped systems for about 16 rural communities and 30 small towns would be packaged and let through one or more contracts each year. The contract would include equipment, installation, a one year warranty, and a one year service contract renewable by the community for two additional years at the quoted price. (d) Handpumps: The project would finance the purchase of about 850 handpumps (250 high-lift and 600 low-lift) plus sufficient spare parts to fill the distribution chain. At the beginning of the project about half of the total number of pumps (125 high-lift and 300 low-lift) would be procured through local competitive bidding procedures with delivery spaced over the first two years. Suppliers could provide a low-lift (direct-action) handpump and/or a high lif+ pump from a list of pumps that are currently used in Ghana and have been approved by GWSC. These include the Ghana Modified India Mark II, the Nira AF85 (or equivalent), the Afridev, and the Vergnet. Payment would be such that the project would pay the national supplier 1/4 of the contract price up front to facilitate purchase of the first pumps. Regional sales representatives would then be paid up to the recommended sales price upon installation (about 2/3 by the project through a voucher system and the balance directly by the community). Additional pumps would be financed and 44 imported by the supplier. The bid price would include purchase, installation, plus a one-year warranty and service contract, and require at least the minimum after-sales maintenance and spare parts distribution services specified in the bidding documents. The evaluated price would be based on price (80%) and after sales maintenance and spare parts services (20%). Bid prices would be quoted in US dollars with an annual price adjustment allowed with the recommended sales price in Cedis adjusted accordingly. 4.49 Other tendering procedures would be used to contract consultant services, to construct latrines, and to procure office equipment. (a) TNC and SBDU: Direct contracting would be used in the case of the TNC and the SBDU, as both have unique qualifications. The TNC would provide the services of one full time training specialist and other staff and associated consultants to prepare and produce training materials needed by the project, to train CWSD and DWST staff, and to monitor and evaluate key implementation issues (Annex 3-5). Use of the TNC would help establish it as a focal point in the country for rural water and sanitation training and information. It would also ensure that lessons learned through similar arrangements with projects in other regions would immediately be available to the project and vice-versa. The SBDU would be contracted to provide training and support to partner organizations and dug well contractors, including preparation of relevant training materials (Annex 3-5). The NGO scheduled to do this work has provided similar assistance to other local NGOs in Ghana, and as such is uniquely qualified to do this type of work now. (b) Partner Organizations: At least four local NGOs in each participating region would be selected and assigned a group of communities to help through the planning cycle. Lump sum payments based on average times and costs for each phase of the planning cycle (mobilization, planning and construction, and follow-up) would be made. In cases where communities are not responding to training, the DWST, RWST and Partner Organization would discuss the situation and determine whether or not to invest more time and effort with it. To become fully qualified for future contracts a partner organization must successfully assist 20 communities to get through the construction phase. (c) Small Towns Planning and Design: A consultant contract would be let to a shortlisted local firm at the beginning of the project for mobilization, planning including preparation of a facilities and management plan, design and construction supervision of all small town systems in the southern three regions (Brong-Ahafo, Ashanti and Western). Consultant selection would follow the World Bank's Guidelines for the Use of Consultants; and a short list of qualified firms would be employed. CIDA has already made arrangements for these services in the northern regions. (d) Household Latrines: Districts would pre-finance and let contracts for household latrines (minimum 5 per contract) and the project would reimburse them every three months for 50% of eligible costs (the other 50% would be paid by the beneficiaries). DWSTs would pre-qualify local artisans annually and arrange on-the-job training for them. Payment for household latrines would be based on a lump sum basis, set by RWSTs each year in consultation with experienced latrine artisans. Public facilities would be contracted 45 according to local tendering procedures for small works and limited to pre- qualified artisans and small contractors. (f) Specialist Services: A group of nat.onal and international specialists in participatory training, training materials preparation, water engineering and financial management, plus other skilled persons as required, would be contracted through a shortlisted international firm following standard World Bank hiring procedures for consultants. Key persons would make intermittent visits to ensure continuity and shareholding in the project, but would not assume management responsibilities. (g) Well Siting: A single well siting contract would be let at the beginning of the project to a shortlisted local firm for all well siting required during the project. An annual price adjustment would be allowed. (h) International shopping or the Inter-Agency Procurement Service Office (IAPSO) would be used to procure most office equipment. PRoJEcT PREPARATION FACILIrY (PPF) 4.50 IDA has approved a PPF of US$550,000 equivalent to assist the Government finance early start-up of the project. J. DISBURSMENTS 4.51 The proposed IDA Credit would be disbursed over a 75 month period, from September 1993 through December 1999, including the 9 month PPF financed pre-project phase from September 1993 through June 1994. The estimated disbursement schedule is given in Annex 2-4. Table 4.8 gives the categories and proposed amounts to be financed out of the IDA credit, and the percentage to be financed in each category. Table 4.8 Disbursement of IDA Credit Amount of Credit Allocated Category (US$ million) % of Expendit-res to be Financed Civil Works 12.42 100% foreign and 75% local Equipment 3.18 100% foreign and 75% local Training & Consultants 3.87 100% foreign and 90% local Operating Costs 0.97 75% until June 30, 1997 and 25% thereafter PPF 0.55 Unallocated 0.97 TOTAL 21.96 4.52 To facilitate disbursement, a Project Account in local currency would be opened with an initial deposit by GOG of 150 million (estimated to finance three months' of GOG eligible expenditures) as a condition of credit effectiveness (para 6.2). This would need to be increased to about C300 million when the project is at maximum disbursement. Adequate counterpart contributions acceptable to IDA will be allocated to cover the local counterpart 46 contribution for the project. The specific amount in local currency will be agreed with IDA by October 31 each year and deposited into the Project Account on a quarterly basis (para 6.1 and Annex 2-4). All local counterpart funds and most IDA eligible expenditures paid in local currency would be disbursed from the Project Account. IDA eligible expenditures disbursed from the Project Account would be replenished from the Special Account as required. 4.53 In view of the large number of small works to be carried out under the project, an imprest account would be opened in each participating region with an initial deposit of C25 million at the start of the project from the Project Account. The ceiling would be increased to 050 million in year three of the project to accommodate the increased disbursements planned for the second half of the project. The CWSD regional offices would have authority to make payments for dug well and partner organization contracts, to replenish district Water and Sanitation Accounts, and to maintain a petty cash account to cover their operational costs. 4.54 Applications for Replenishment of Regional Imprest Accounts would be prepared by the RWSTs and processed according to the procedures given in Annex 2-4. Replenishment requests would be accompanied by Statements of Expenditure and supporting documentation including invoices, evidence of payments, and certification of works carried out and/or goods supplied. Final payment of all construction contracts would include Certificates of Completion and Acceptance signed by the community (advised by the Partner Organization that is assisting them to plan their water supply facilities), the district and the RWST in the case of water supply and public sanitation facilities, and by the household, district and RWST in the case of household latrines. 4.55 Participating districts would be required to open Water and Sanitation Accounts in local banks to which they would make an initial deposit to pre-finance latrines, and, later if they choose, planning (Partner Organization) and hand dug well contracts. Eligible expenditures for completed works would be reimbursed every quarter from Regional Imprest Accounts on the basis of fully documented statements of expenditures and Certificates of Completion and Acceptance signed by the community (advised by the Partner Organization that is assisting them to plan their water supply facilities) and the district in the case of water supply and public sanitation facilities, and by the household and district in the case of household latrines. Participating communities would be required to open a bank account or make other arrangements to secure their part of the capital cost. An initial deposit of C10,000 per person would be required at the time that a community submits an application for a construction grant (equal to their contribution for a single hand dug well), and the community would be required to deposit the full amount of its share of the capital cost before its facilities and management plan is approved and a construction contract is let. 4.56 A Special Account in foreign currency of up to US$1.0 million equivalent (estimated to finance three months' IDA eligible expenditures) would be established in a commercial bank on terms and conditions acceptable to IDA. Fifty percent of the authorized allocation would be disbursed when the project becomes effective. The Special Account would be used to replenish the Project Account for IDA eligible expenditures made in local currency and for direct payment of IDA eligible expenditures made in dollars. In the rare case of a direct IDA- payment to a third party, the amount should exceed $50,000. All direct IDA-payments must be according to the procedures set out in The World Bank Disbursement Handbook (1992 edition). Funds in the Special Account cannot be mixed with other funds (such as counterpart funds or funds from other donors). 47 4.57 Disbursements of the IDA credit would be fully documented except those of less than US$100,000 equivalent for works, goods and services which may be disbursed against Statements of ExperAitures. Supporting documents for the SOEs would be retained by GWSC for review by auditors and IDA supervision missions. Disbursement and withdrawal procedures are detailed in The World Bank Disbursement Handbook (1992 edition) and outlined in Annex 2-4. All disbursements are subject to the conditions of the Development Credit Agreement and the procedures defined in the Disbursement Letter. K. ACCOUNTING, AUDIT AND REPORTING 4.58 The accounting for all Special Account transactions and for all other project-related accounts would be maintained in accordance with international accounting standards. Training of local staff in accounting procedures would be provided under the project as described in the Inplementaton Manual. Independent auditors acceptable to IDA would be appointed as a condition of project effectiveness (para 6.2). Annual financial statements of IDA-financed components would be prepared and audited in accordance with international auditing guidelines by suitably qualified independent auditors acceptable to IDA. By June 30th of each year, the implementing agency would submit to IDA an auditor's report, management report and audited financial statements for the Special Account, Project Accounts and SOEs for the preceding calendar year, audited by an independent accountant acceptable to IDA, as well as GWSC as a whole (para 6.1). Audits of the Water Sector Rehabilitation Project (Cr. 2039-OH) implemented by GWSC are current. 4.59 In addition to the annual auditing requirements specified in para 4.58, the CWSD would contract external auditors to audit the SOE statements and Special Account withdrawals on a 6-monthly basis, and to assist headquarters and RWSTs to improve their accounting practices. In particular, the auditors would examine if: (a) the procurement rules have been followed; (b) the withdrawals have taken place in accordance with project procedures; (c) SA funds have not been used to advance funds to beneficiaries; (d) no subprojects have been financed twice through other donor funds; and (e) SOE- fully document expenditures and include eligible expenditures only. L. REPORTING AND SUPERVISION 4.60 Semi-annual progress reports covering all project components would be prepared by each participating RWST, consolidated by GWSC, and sent to IDA within two months after the end of each period. These reports would include: (a) progress against agreed implementation and disbursement schedules and key performance indicators; and (b) work programs and cost estimates for the coming year. The main purpose of the reports would be to provide managers timely and updated information on implementation of project components, highlighting issues and problem areas, recommending actions and commenting on progress in resolving previous recommendations. Within six months of the project closing date a Project Completion Report in accordance with IDA guidelines would be prepared by the implementing agency and submitted to IDA. During negotiations, agreement was reached on these reporting requirements. 48 4.61 A mid-tern project review would be carried out involving IDA and relevant government agencies not later than December 1996 to evaluate and assess: (a) overall progress made in project implementation with respect to key monitoring indicators agreed with IDA (Annex 2-5); (b) effectiveness of GWSC as the implementing agency and districts as lead agencies at the local level; (c) ability of communities to plan and manage their water supply facilities including their record of payment of capital and normal recurrent costs; (d) effectiveness of Partner Organizations in assisting communities to plan their water supply systems and training them to manage them and private contractors in constructing water and sanitation facilities; and (e) effectiveness of sanitation and hygiene education programs. GWSC would prepare, two months ahead of time, the reports required for a comprehensive mid-term review. Based on the mid-term review, an Action Plan, acceptable to IDA would be prepared by GWSC for the further implementation of the Project (para 6.1). 4.62 In addition to the mid-term review, annual reviews would be completed no later than December 31st of each implementation year to assess progress and evaluate performance during the past year and review and agree on the work program and budgetary allocations for the following year with particular attention paid to capacity building and the training program (para 6.1). M. MONrfORING AND EVALUATION 4.63 Monitoring and evaluation would be integrated into the everyday running of the project at all levels and used to encourage innovation, team building, and local ownership of the project, and getting all those associated with it to be active participants who feel their ideas and initiatives are valued. To do this monitoring and evaluation must be participatory, drawing out people's ideas and encouraging them to be active partners in change. It must also be structured, as issues and options need to be clearly defined and tested through comparative studies between different regions, districts and communities. The big advantage of this approach is that change and diversity can be introduced while avoiding the tendency of developing different implementation strategies in each region at the whim of individual project managers and advisors. 4.64 Everyone associated with the project would be involved in monitoring and evaluation through either project or advisory groups. There would be two types of monitoring and evaluation groups at each level: one project related (WATSAN, DWST, RWST, and CWSD), and the other advisory (community, district, regional and national), each of whom would meet at least once a year to discuss performance, policy and resources. The CWSD with the assistance of the TNC would coordinate this effort and ensure that key issues are brought to the attention of project staff and advisory groups and that the consensus emerging from discussions at all levels is recorded and disseminated. Within the IDA-financed project regions the zonal training team would take the lead in coordinating monitoring and evaluation efforts. 4.65 Indicators for each project objective, associated targets, data collection methods and monitoring groups for each are given in Annex 2-5. 49 V. PROJECT JUSTIFICATION AND RISKS A. SOCiAL IMPACT HEALTH IMPACT 5.1 The project would help to improve the health status of rural residents by improving hygiene through increasing the quantities of water consumed, and changing behavior through hygiene education, by improving the quality of drinking water, and by improvements in sanitation. All diarrhea related diseases transmitted by fecal-oral routes would be expected to decline. Installation of handpumps and improved dug wells would also interrupt the transmission of guinea worm. POVERTY ALLBVIATION 5.2 The project targets the rural poor and improves the quality of their life by providing convenient good quality water and sanitary latrines plus management training and hygiene education. In doing so the project improves health, decreases the amount of time and effort women must spend collecting water, and increases income generating opportunities and food security. The project requires communities (water supply facilities) and households (latrines) to apply for a construction grant, and builds capacity within the community to plan and manage their facilities, enabling them to extend these skills to other development activities. FAMLY IMPACT 5.3 By providing water sources that are closer, more reliable and more plentiful, the project would reduce the work burden of women and girls and make improved hygiene possible for all members of the family. On the other hand, capital and recurrent contributions towards improvements in water supply would impose and additional pressure on incomes. Opportunities for women to participate at all levels of the project would help them develop skills in decision-making, in management and other areas, which would be applicable to other sectors. B. ECONOMIC EVALUATION 5.4 The capital cost and resultant economic benefits of different technological options were compared in a choice of technology analysis. For each technology, assumptions were made about the demographic, economic, and community water use parameters of a typical village. These were based to the extent possible, on the results of the field surveys. The two parameters critical to the quantification of water supply benefits, the value of time and the price of water, were assumed to be inter-related such that the price of water was assumed equal to the value of the time that was required to collect it (Rural Water Supply - The Handpwnp Option, World Bank 1988). This assumption makes sense to the degree that a liter of water collected from a source located close to the point of consumption is worth less than a liter of water collected from a source further away from the point of consumption. However, the health benefits that would likely result from an improved water supply were not quantified, nor was value place on the water itself. The field surveys indicated that extensive 50 health education would be required to sensitize most people before the health value of an improved water supply is appreciated to the extent that communities would be prepared to spend resources (time or money) to obtain this benefit. 5.5 For the four basic technology packages that were adopted for planning purposes, the capital outlay per installation, and per capita, and annual (capital plus recurrent) costs per installation and per cubic meter of water delivered were compared. Table 5.1 Costs of Principle Technology Options Capital Outlay Annual Cost Unit Cost Technology Total Per Capita (US$) (US$) (US$1yr) (US$/a&) Dug Well with Bucket 1,500 7.50 350 0.30 Dug Well with Handpump 2,300 11.50 525 0.45 Borehole with Handpump 10,000 33.00 2,500 0.95 Piped System (2500 pop.) 60,000 24.00 16,000 0.75 5.6 The consumer benefits in two ways from a closer water source: first, the price of the original quantity consumed falls by the value of the time saved collecting it; and second, more water is collected because of the reduced price. The total cost was subtracted from the total benefits to enable the internal rate of return to be calculated over a 20 year period. The following table presents the results of sensitivity analysis of the two parameters, value of time and distance, for the four basic technology packages that were adopted for planning and pricing purposes. From the results of the sensitivity testing, the technologies can be ranked, based on their economic rates of return, in the order: dug well with bucket, dug well with handpump, piped system (mains electric), and borehole with handpump - the same ranking as suggested by the costs. Table 5.2 Indicative Economic Rate of Return for Principal Technologies (%) Distance (m) Value of Time ($/hr.) Pop. Old New 0.02 0.04 0.06 Dug Well with Bucket 200m 1000m 500m 20% 60% 135% Dug Well with H/P 200m 1000m 500m 5% 25% 50% Borehole with H/P 300m 1000m 500m (5%) 5% 15% Piped System 2500m 1000m 250m 5% 25% 45% * Piped system connected to electric mains. * Average per capita consumption 15 liters per day from a source 1000 meters from the household, 20 liters at 500 meters, and 25 liters at 250 meters. * Increasing old distance 50% (1500m) increases rate of return by a factor of 3. Decreasing new distance 50% (500m) increases rate of return by a factor of 2. 51 C. RiSKS 5.7 The project entails risk in trying to scale up investment based on community management of water supply and sanitation services. This risk involves the ability of GWSC's new Community Water and Sanitation Division to recruit qualified personnel and the communities' ability to maintain their facilities. The effectiveness of Partner Organizations, dug well contractors, and handpump distributors would have direct bearing on the success of the project. To reduce the risk, implementation arrangements required the establishment of regional offices, procurement of essential equipment and recruitment and training of key personnel during the PPF period. Throughout the project particular attention would be paid to the recruitment and training of CWSD and DWST personnel and private sector participants. The National CWS Strategy upon which the IDA financed project is based on is being used by other externally financed project. As a result training materials can be shared and lesson learning between regions can result in improved implementation. If the project is not undertaken, future development of the sector would remain constrained by inadequate financing and human resources, and continued use of varied implementation strategies that result in water supply systems that are not sustainable. VI. AGREEMENTS AND RECOMMENDATION A. AGREEMENTS WfH GOG AND GWSC 6.1 During negotiations, confirmation and agreement was obtained from Government and GWSC that: (a) The project would work through the private sector to assist communities to plan their water supply systems; to construct piped systems, boreholes, hand dug wells and latrines; to supply pumps and spare parts; and to provide maintenance and repair services to communities (para 4.16). (b) Suitable consultants as required will be appointed by GWSC on terms and conditions agreeable to IDA to assist with project implementation (para 4.18). (c) GWSC shall ensure that: (i) communities, schools and health clinics will pay part of the capital cost for their water and sanitation facilities (para 4.22); and (ii) communities will own and manage their water and sanitation facilities and will pay all normal operations, maintenance and repair costs (para 4.22). (d) The Borrower will enter into a performance contract with GWSC in which performance indicators will be specified, and shall have a financing agreement with GWSC under which the funds required for the project will be transferred to GWSC (para 4.23). (e) GWSC will carry out the project in ac zordance with the iplenentation Manual and shall not amend it without IDA's agreement (para 4.23). (f) GWSC will implement the agreed action plan (appended to the Minutes of Negotiations) for improving the overall water sector in Ghana (para 4.23). 52 (g) Adequate counterpart contributions acceptable to IDA will be allocated to cover the local counterpart contribution for the project. The specific amount in local currency will be agreed by October 31 each year with IDA and deposited into the project account each quarter (para 4.52). (h) After credit effectiveness, by June 30 each year, GWSC will submit to the IDA an auditor's report, management report and audited financial statements of the Special Accounts, Project Accounts and SOEs for the preceding calendar year, audited by an independent accountant acceptable to IDA, as well as an audited report for the GWSC as a whole (para 4.58). (i) A mid-term project review will be carried out involving IDA and relevant goveinment agencies not later than December 1996 to evaluate and assess: (i) overall progress made in project implementation with respect to inter alia, key monitoring indicators agreed with IDA; (ii) effectiveness of GWSC as the implementing agency and districts as lead agencies at the local level; (iii) ability of communities to plan and manage their water supply facilities including their record of payment of capital and normal recurrent costs; (iv) effectiveness of Partner Organizations in assisting communities to plan their water supply systems and training them to manage them and private contractors in constructing water and sanitation facilities; and (v) effectiveness of sanitation and hygiene education programs. GWSC will prepare, two months ahead of time, the reports required for a comprehensive mid-term review. Based on the Mid-Term Review, an Action Plan, acceptable to IDA will be prepared by GWSC for the further implementation of the project (para 4.61). (j) In addition to the mid-term review, annual reviews will be held no later than December 31st of each implementation year to assess progress and evaluate performance during the past year and review and agree on the work program and budgetary allocations for the following year with particular attention paid to capacity building and the training program (para 4.62). 6.2 The following actions will be taken before effectiveness: (a) A Project Account in local currency will be opened with an initial deposit of C150 million (para 4.52). (b) Auditors for the project will be appointed (para 4.58). B. RECOmmENDATION 6.3 With the above agreements and actions, the proposed project would be suitable for an IDA credit of SDR 15.9 million (US$21.96 million) equivalent to the Republic of Ghana. 53 Anne 1-1 Page 1 of 3 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT THE SECTOR INVESTMENT PLAN A. NATIONAL STRATEGY 1. As part of the process of moving towards a national program for community water supply and sanitation (CWS), and to establish the context for the first IDA supported project in this sector, an overall implementation strategy was developed. Basic principles for the program were agreed to by sector specialists and representatives of national and international agencies involved in rural water supply in Ghana at the 1991 Kokrobite Workshop. These included community management, district support for communities, and a Community Water and Sanitation Division in GWSC headed by a deputy managing director. Workshop recommendations were subsequently approved by the Minister of Works and Housing and the Committee of Secretaries. 2. As part of the preparation of the IDA financed CWS Project these principles were elaborated on and refined through a series of national workshops. The outcome is the sector investment plan, policies and guidelines, institutional plan, and letter of sector policy included in Annexes 1-1 to 1-4. These are intended to form the basis for planning, implementation, consultation with and coordination of ESAs, and long-term budgeting by CWSD and the Ministry of Finance and Economic Planning (MFEP). It is not in final form and is not intended to ever be final, in the sense that the investment program, policies and guidelines, and institutional arrangements will be reviewed continuously by individual projects and updated annually during a national workshop. B. SIP 3. Planning for many small, scattered, rural communities requires flexibility, particularly if communities are allowed to determine the type of system that they want. Projects that identify in advance the communities and facilities to be provided can be implemented relatively easily, but will not be sustainable, whereas plans that allow consumer choice and provide financing to meet this demand are more likely to be sustained. While the sector investment plan given here makes assumptions about the demand for different types of facilities, these will need to be refined as experience is gained, and the investment plan updated annually. 4. The SIP presents: (a) demographic information by community size and region; (b) hand dug well potential by region; (c) anticipated demand for the various types of water supply facilities by community size and region; (d) number of participating districts by year; (e) expected implementation capacity and demand in terms of communities per district by year; (f) number of new and rehabilitated systems by community size by region; (g) the number of communities and population who would be served as a result; and ( h) the estimated cost of the national program (planning, management, and construction) where implementation capacity is limited first by human resources, then by financing, and later by demand. 54 Annex 1-1 Page 2 of 3 5. The unit costs used for each type of facility are based on the work done in the choice of technology analysis (SAR, Annex 3-7 and Implementation Manual, Chapter 12). Of the more than 30 possible technology packages for which cost estimates were developed, four 'standard' packages were selected to be the basis for broader planning purposes. These are hand dug wells without handpumps, hand dug wells with handpumps, boreholes with handpumps, and small piped systems with electric powered pumps. The indication of population served by each technology package are based on a consistent set of numbers which relate well yields, pump capacities and per capita water use figures, to water use demands of the population served from each facility. C. ANALYTICAL APPROACH 6. The model uses demographic and existing coverage data as a baseline, and calculates a potential implementation capacity and demand for new and rehabilitated systems. Assumptions are provided in the tables for population projections by community size, numbers of users per system, demand for hand dug wells, boreholes, and piped systems; and implementation capacity in terms of numbers of communities per district per year served and number of districts per region joining the national program each year. On this basis, the costs and numbers of facilities required to fulfill any proportion of the total potential demand can be calculated. 7. At first human resources is likely to be the biggest constraint to increasing water supply coverage. A scenario was therefore used where implementing capacity builds up as individual districts are able to assist more communities each year and new districts join in the national program. In each region, two districts start up in the first few years and three per year thereafter until all districts in the region are covered. The assumptions and results are shown in the following graph and tables. D. REsULTs 8. Some of the results of this exercise are as follows: (a) a 15-year program entailing a capital outlay of about US$200 million equivalent on new water supply facilities would meet the total potential estimated demand until 2009, with about 11 million people served, or 80% of the rural population; (b) with the expected mix of technologies, the approximate numbers of dug wells, boreholes and piped systems installed would be 25,000, 7,500 and 500 respectively; (c) the software costs of delivering technical assistance, community mobilization, hygiene education, participatory planning and follow-up would be around 15% of the total cost; and (d) currently committed donor funds (including this IDA project) amount to around US$50 million equivalent, and community contributions in the base case scenario would amount to US$15 million equivalent. This leaves a shortfall of around US$145 million equivalent, not including other investments required for institutional strengthening, training development, etc. 55 Annex 1-1 Page 3 of 3 Sector Investment Plan 300 - 100% US$270 million investment over 15 years. Construction u 250 Design 80% Planning 200 I coverage 60% 150 - 40% 100- 20% 50 0 """-0% 1995 1997 1999 2001 2003 2005 2007 2009 Year Table 3.1 Strategic Investment Plan 1994-2009 Polation Served 1990 Population Served 2009 Number of New Systems Cost Number Rural Number Rural Dug Boreholes Boreholes Piped US$ of People Coverage of People Coverage Wells Rehab. (000s) Region (O0s) (%) (00s) (%) Ashanti 1,568 21% 2,284 84% 5,400 1,000 2,100 130 46,800 Brong-Ahafo 920 23% 1,340 84% 2,600 1,100 1,300 70 31,800 Central 949 17% 1,383 77% 3,200 600 1,100 60 26.200 Eastern 1,405 18% 2,047 65% 3,800 900 1,500 70 34,100 Greater Accra 282 4% 411 92% 700 600 100 40 13,500 Nordiern 987 22% 1,438 76% 2,200 1,300 1,300 60 33,100 Upper East 785 60% 1,144 84% 1,700 400 2,400 30 18,800 Upper West 456 88% 664 91% 600 200 2,000 10 10,400 Volta 1,124 23% 1,637 76% 3,400 800 1,500 70 31,400 Western 896 29% 1,305 82% 3,100 500 1,600 50 23,800 TOTAL 9,372 27% 13,653 79% 26,700 7,400 14,900 590 270,000 Institutional Arrangements for the Community Water and Sanitation Program Ministry of - Works and Housing CoodInafing CWS Coordina- -- Body --- Direct authorty or contract Traming CWSD TNC and other Re~ource Personnel RWST9 and Zonam TeMM Supplers and Design Construction Dug We Latrin con~ Dnpm Dstrlbutors Ong,anIonsCCO~ Bulderr 57 Annet 1-2 Page 2 of 2 Community Water and Sanitation Division o7t Headquarters CWSD Technical MWM/rafaing Planning Accountant arnal Personnel Coordinator Coordinator Coordinator Procurement Officer Auditor INS and Data Support Staff: Processing Officer Book-keeper 2 Secretaries 2 Clerks 2 Typists 3 Drivers Regional Regional Water and Sanitation Teams Coordinator *II Tralning, SM Schoo and Training, M& Wae Supply Sanitation Accounts, MIS and and CD Officer HE Officer and CD Officer Engineer Engineer Contracts Officer Zonal Support Team (Kumas, Tamale and Acora) Support Staff. ________________________________________________ ________________________SecretaScrrtrie Clerk Urban Water Training, M&E Urban Sanitation a C Supply Engineer and CD Officer Engineer Support Staff: Secretary Typist 2 Drivers District Management of Water and Sanitation Dsrt istrict Assembly -District Commilte 1 District Chief Executive Senitatio and Commturtity Rural Hyglene Educallont Developmnt WaterSupply Officer .- I Officer Technician *DMC also Includes representatives of GWSC and relevent district tne departmnents. 58 Annex 1-3 Page I of 6 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT LJm r OF SEcToR PoLIcy January 12, 1994 Mr. Edward V. K. Jaycox Vice President, Africa Region The World Bank WASHINGTON Dear Mr. Jaycox, Re: Letter of Sector Policy for Community Water and Sanitation The purpose of this letter is to describe the sector policies that we plan to follow during implementation of the proposed Community Water and Sanitation Project (IDA). Specific actions are included in the attached actiou plan. Overall Development Strategy The overall development strategy for community water supply is the decentralization of planning and management of services. The Government's decentralization policy is intended (i) to make districts more autonomous, more responsive to local needs, and better able to assist communities to obtain improved services; and (ii) to make communities decision makers, owners, and managers of their water supply facilities. This is being achieved by providing direct budget allocations to the districts to help them support local communities, and by assisting communities to prepare Facilities and Management Plans, and by having them manage operations and maintenance. The National CWS Program will be demand driven, as resources will be channeled to individual districts based on the demand for improved services by communities and district performance in supporting them. As a condition for participating in the National CWS Program, districts will be required to establish District Water and Sanitation Teams and to establish revolving funds to help households, schools, clinics and communities to construct latrines. The private sector will be encouraged to provide all goods and services for community water and sanitation. This will increase implementation capacity, lead to more widespread and sustainable coverage and increased employment opportunities in rural areas. Procurement procedures will be designed to encourage the private sector (i) to help communities to prepare their Water Supply Facilities and Management Plans; (ii) to conduct 59 Annex 1-3 Page 2 of 6 hydrologic surveys and design piped systems; (iii) to construct latrines, dug wells, boreholes and piped systems; (iv) to help communities to operate and maintain their water supply facilities; and (v) to distribute equipment and spare parts. The public sector will play a facilitating role. On current institutional arrangement, GWSC will be contracted by the GOG to manage the National Community Water and Sanitation Construction Grant Program and to provide technical assistance to districts and private sector participants. This arrangement will be reviewed in the first year of implementation of the Project, in light of Government's proposed policy to commercialize the urban operations of GWSC, and to bring the rural operations under the direct control of the Ministry of Works and Housing. Districts will promote the National CWS Program amongst their constituent communities, and assist them to obtain construction grants. Sector Policy We wish to increase access to water and sanitation for our people living in rural communities and small towns. As indicated above, we intend to increase water supply coverage and ensure sustainability through a combination of community management, private sector provision of goods and services, and public sector promotion and support. We intend to maximize health benefits by integrating water, sanitation and hygiene education interventions. Individual communities will be directly responsible for the planning, operating and maintaining their water supply systems and for collecting revenues to pay recurrent and replacement costs. Communities may choose to contract operations, maintenance, repairs and/or revenue collection functions to a private company or GWSC's Urban Water Supply Division. Urban and community water supplies would be differentiated on the basis of their management with larger "urban systems" managed on a commercial basis by GWSC's Urban Division, and smaller "community systems", requiring government subventions for the foreseeable future, managed by the communities themselves. Community water supply would include rural communities (less than 5,000 people) and small towns (the upper limit to be determined). Regional projects will be encouraged to include small town water supply components, so that experience can be gained in the process of establishing and supporting community management of such systems. Implementation The difference in approaches between urban and community water supply necessitates that a Community Water and Sanitation Division be created in GWSC of the Ministry of Works and Housing. This division will be managed by a Director and staffed by a multi-disciplinary team of community development, health, water and sanitation specialists at headquarters and regional offices within the RCC. These units in turn will work to build capacity at the district level by helping interested district assemblies to form small Water and Sanitation Teams and train them to take increasing responsibility for supporting communities to obtain improved facilities. They will work within the Works Department of the District Assemblies. Technical assistance to communities to help them plan and learn to manage their systems in accordance with the Local Government law recently passed by Parliament, will be contracted to local NGOs; construction will be done by private contractors, with hand dug wells and household latrines employed wherever possible to support small contractors and provide local employment opportunities; and repair and spare parts services would be through private retailers and local mechanics. 60 Annex 1-3 Page 3 of 6 Financing Although the Government will have the chief responsibility for funding the National CWS Program, sustainability is based on community participation. In financial terms this means that the beneficiaries would be required to pay part of the capital cost of basic services and all of the recurrent costs of their water and sanitation facilities. Higher levels of water and sanitation service are encouraged, but the beneficiaries would be required to pay a substantial part of the added cost. Community contributions would be paid in cash and in kind, where in-kind contributions correspond to the value of labor that is contributed by the community. A rehabilitation fund, managed by GWSC's CWSD, would be established by government to which individual communities could apply through their DWST. The ftnd would provide for cost sharing between the government and communities for expensive interventions such as when a borehole must be flushed or water supply facilities need to be replaced or completely overhauled. To be eligible for assistance, communities would be required to show records that annual preventive maintenance had been carried out. Technoloa Choice In a demand driven program individual communities first decide whether or not they want to participate in the program and then decide the type of water supply and sanitation system that they want, can afford, and can maintain. Different priced water supply options for both point sources and piped systems and information materials, easily understood by community groups, showing typical designs and costs (capital and recurrent) must be available. Technology options will include dug wells with and without handpumps, boreholes with either direct-action or high-lift handpumps, and small piped systems utilizing either groundwater or surface water with appropriate pumping and treatment units. Latrines have been a problem because of their high cost; it is therefore important that a range of different cost designs for improved sanitation be promoted through the National CWS/S Program, both for household and public use. Technologies would include the single pit VIP latrine, the sanplat and Mozambique type latrines with and without a vent pipe, and in some cases the twin pit VIP latrine. Multiple pit VIP latrines (privately operated) would be used at health centers, markets and other public places. Construction Construction will be done by private companies and awarded through competitive bidding, but would allow for in-kind community labor. For example, communities should be given credit for the construction of hand dug wells and pipe trenches as part of their capital cost contribution. The National Community Water and Sanitation Strategy's reliance on the private sector for construction services, does not provide a role for GWSC's maintenance unit, and its ongoing support results in unfair competition with private drillers. A review of GWSC's drilling unit will be made with a view toward privatization. Operations and Maintenance Maintenance of point source water supply systems (wells and spring catchments) would be the responsibility of individual communities with day-to-day management provided by their water and sanitation committees. The Water and Sanitation Committees would supervise use of the pump, collect revenues for recurrent costs, keep accounts, and make repairs themselves or hire the services of a private mechanic. Several water and sanitation committee members in each community (normally women) would be trained to perform all normal maintenance and repairs, and several local mechanics, including representatives of handpump suppliers, would be trained to make all types of repairs. The way in which communities pay for maintenance services would be changed from the current tariff system to a payment-for-services system throughout the country. Maintenance of piped water and sanitation systems would be the responsibility of the local municipality or Water 61 Anne 1-3 Page 4 of 6 User Associations who normally would contract operation, maintenance and repair functions to a private company or to GWSC. Water User Groups formed around one or more standpipes would be billed by the Municipality or Water User Association on the basis of metered water delivered to them. In the long run the best way to ensure that communities have access to replacement components and spare parts is for local retailers to sell pumps, appurtenances and spare parts, and install, warranty and service them. To encourage this, the direct importation of pumps and spare parts by government and international agencies will be phased out. Action Plan An action plan for the National Community Water and Sanitation Program generally, and the IDA-finance Community Water and Sanitation Project in particular is outlined in the following table. Important actions needed to establish the Program and monitoring indicators to track progress are listed. Yours Sincerely, [C.M.K. Sowul Minister Ing. Sqn. Ldr. C.M.K. Sowu (Rtd) MP 62 Anner 1-3 Page 5 of 6 ACTION PLAN Stafg and Oftes * Establish GWCS's CWS Division. December '93 * Establish Regional Water and Sanitation Teams and offices for December '93 them at headquarters, Brong Ahafo Region and Ashanti Region. * Establish District Water and Sanitation Teams in two districts in March '93 Brong Ahafo Region. * Recruit at least 75% of the personnel needed in GWSC's CWS December '94 Division for the IDA financed CWS Project Division and establish RWST offices in all participating regions. * Establish Regional Water and Sanitation Teams and offices for December '95 them in all regions. * Establish District Water and Sanitation Teams in at least half of December '97 all districts in all regions. Private Sector Support * Fully pre-qualify at least 4 dug well contractors (i.e. equip and July '95 construct at least 10 dug wells to specification) in Brong Ahafo, Western and Ashanti Regions. * Fully pre-qualify at least 4 dug well contractors (i.e. equip and December '97 construct at least 10 dug wells to specification) in all regions. * Fully pre-qualify at least 4 Partner Organizations (i.e. equip and July '95 successfully assist 10 communities to prepare Facilities and Management Plans) in Brong Ahafo, Western and Ashanti Regions. * Fully pre-qualify at least 4 Partner Organizations (i.e. equip and December '97 successfully assist 10 communities to prepare Facilities and Management Plans) in all regions. * Establish regional equipment and spare parts outlets for December '94 handpumps in Brong Ahafo, Western, Ashanti and Northern Regions. * Establish regional equipment ad spare parts outlets for December '96 handpumps in all regions. * Privatize and/or make fully autonomous GWSC's Drilling Unit. July '95 63 Annex 1-3 Page 6 of 6 Policies and Guidelines * Prepare/update policies and guidelines for National CWS Annually Construction Grants Program. * Prepare annual monitoring and evaluation report including Annually assessment of targets set in GWSC's Performance Contract for Community Water Supply, and preparation of an evaluation report on key issues affecting implementation of the National CWS Program as specified in annual workplan. Implementation issues to include sustainability/performance of Community WATSAN Units and Water User Associations, partner organizations and hand dug well contractors; suitability/effectiveness of training methods/materials for communities and schools; and availability of spare parts and performance of private handpump mechanics and operators of small town water supply systems. * Update designs, specifications and sample bidding documents for Annually CWS. * Update implementation manual. Annually Financng * While GWSC's Urban Water Supply Division is to be financially Annual budgeting indepenlent, its Community Water and Sanitation Division must Monthly replenishment be financed through the Public Investment Program. Funds for personnel, operation, and counterpart construction funds will be budgeted for annually and GWSC's CWS Account will be replenished monthly. Management * Computerized Management Information System for the National March '94 CWS Program will be established to inventory water resources and water supply facilities, track contracts, and keep expenditure accounts. * Conduct semi-annual review of regional project accounts and Semi-annual reviews status of planning and construction contracts as well as an official Annual audit annual audit. Water and Sanitation Coverage * The IDA financed CWS Project will provide water supply 30% by July '96 facilities for about 700 rural communities (some 1000 point 100% by July '99 sources and 15 piped systems) and 10 small towns in Brong Ahafo, Western, and Ashanti Regions. Plus, about 20 systems for small towns in Northern, Upper East and Upper West Regions as part of the CIDA-financed GAP Project. * Nationally, the existing 10,000 handpump-based systems will be 70% by January '98 converted to community management. 100% by January '00 * Rural water supply coverage. 35% by January '98 50% by January '01 80% by January '04 64 Annex 1-4 Page I of 2 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT ActioN PIAN FOR WATER SECTOR RESTRUCTURING 1. The Ghanaian delegation reaffirmed the Government's intention to restructure the institutional arrangements in the water supply and sewerage sector in order to improve management and operation. The objectives would be to ensure an adequate and reliable water supply in both urban and rural areas and to improve the efficiency, effectiveness and replicability of water supply operations. Restructuring of the sector would be undertaken within the Governent's overall decentralization policy. Autonomy and financial viability of the water utiity(ies) would be important means of achieving these objectives. 2. The delegation confirmed that the Government, through the Ministry of Works and Housing, will carry out an Action Plan leading to the restructuring of the water supply and sewerage sector. This action plan will comprise the following phases: (a) Appointment of a Steering Committee to oversee the restructuring process. (b) Selection of consultants (to be financed under a Japanese Grant) who would work under the Steering Committee to assess the feasibility of restructuring options; while the first step of reorganization has been indicated (decentralization of ATMA), staffing, financing and logistical options would still need to be considered as well as new management systems. Organizational issues such as the most appropriate location for the present rural water supply activity of GWSC and the possibility of improving efficiency of some functions by introducing private sector participation could also be considered. (c) Workshop attended by key water sector and other relevant participants to discuss the Report of the Consultants and to make recommendations to the Minister of Works and Housing. (4) Decision by the Minister of Works and Housing (the Government) to adopt a recommended restructuring option. (e) Preparation by MWH, with assistance of Consultants, of a detailed implementation plan and an analysis of the resource needs and other financial implications to implement the adopted restructuring option. At the same time, consultants could begin to outline possible medium and longer-term development options which could be considered at a later time. (f) Implementation of this detailed plan. 65 Annex 1-4 Page 2 of 2 3. The Steering Committee would have some 8-10 members, including representatives of relevant ministries (MWH being chairman), GWSC (including a few Regional Directors), consumers, chamber of commerce, academia, etc. The Workshop would be attended by representatives of relevant Government ministries and agencies, chamber of commerce, consumers, academia, bilateral and multilateral aid agencies, etc. The Consultants would help facilitate the Workshop. 4. The Ghanaian delegation confirmed that the Government, through the Ministry of Works and Housing, will undertake the following steps to implement the above-mentioned action plan: Action Completion Dates 1. Preparation of TORs and appointment of Steering Committee and March 1994 Consultants; Bank will send draft TOR to MWH for approval. 2. Preparation of Report on analysis of selected restructuring options June 1994 3. Holding Workshop - Decision by the Government July 1994 4. Preparation of detailed implementation plan for adopted August 1994 restructuring option 5. Implementation From 1/1/1995 5. The Ghanaian delegation was informed that, to assist the Government in the water sector restructuring exercise, the Bank has obtained Yen 20.1 Million (grant) from the Japanese Policy and Human Resources Development (PHRD) Fund to finance consulting services. The Bank will send an appropriate legal document for signing by the Government. Community Water and Sanika~ion Project Table 1. Rural Waler Supply and Santation Detalled Costs BaE Costs (uSS' 00s) Total Costs (US$'0005) Breakdown of Totals «S$000s) 1994 1995 1996 1997 1998 Total 1994 1995 19% 1997 1998 Tol Foreign Locl Taes A. Adsh~ 1. Had Dug Webs Hnddugwenconsructon 28.2 84.5 140.8 197.1 112.6 5630 28.6 92.6 163.6 237.9 139.4 462.2 270.1 359.0 33.1 Handpump sppy andnstantion 23.7 15.8 15.8 15.8 7.9 78.9 24.9 17.3 18.0 18.5 9.5 88.2 67.0 13.7 7.5 Subtotal Hnd Dug WeRs 51.8 100.2 156.5 212.8 120.5 641.9 53.5 109.9 181.6 256.5 148.9 70.4 337.1 372.7 40.6 2. Boreholes Boreoe consdruction 27.5 82.6 137.7 192.7 110.1 550.7 28.9 90.8 157.3 226.9 132.6 636.4 480.7 123.9 31.8 Hdpump supply and nstallon 20.7 13.8 13.8 13.8 6.9 69.0 21.8 15.2 15.7 16.2 8.3 77.2 58.6 1210 6.6 Subtotal9oreholes 48.2 964 151.5 206.5 117.0 619.7 50.7 105.9 173.1 243.1 140.9 7134 5394 135.9 384 3. Piped Systes Boreholeoonstruc~ton 7.1 214 35.6 49.9 28.5 142.6 7.5 23.5 40.7 58.7 34.3 144.8 124.5 32.1 8.2 Ppe and storage tacontrucion 6.0 18.0 30.1 42.1 24.1 120.3 6.2 19.8 34.8 60.5 29.6 140.8 71.5 62.2 7.0 Mech.& Eect. sup~y and~nstan 4.4 13.3 22.2 31.1 17.7 88.7 4.7 14.6 25.3 36.5 21.3 102a 77.3 16.4 8.7 Subtota0 P1ed Systems 17.6 52.7 87.9 123.1 70.3 351.6 18.3 57.9 100.8 145.7 85.2 408.0 273.3 110.7 24.0 4. Handpump Reh~Stion Borehoe redevelopment 2.5 7.4 12.3 17.2 9.8 49.2 2.6 8.1 14.0 20.3 11.8 56.8 42.9 11.1 2.8 Hndpump upply and ~tllton 19.2 12.8 12.8 12.8 6.4 64.1 20.2 14.1 14.6 15.1 7.7 71.7 54.5 11.1 6.1 SubtotaINadpumpRhobtaion 21.7 20.2 25.1 30.0 16.2 113.2 22.8 22.2 28.7 35.3 19.5 28.5 974 22.2 8.9 5. Sitation Ltine constructon 4.3 12.9 21.5 30.1 17.2 85.9 4A 14.1 25.0 36.3 21.3 10t.0 41.2 54.8 5.1 6. Plannng (TA for commun es) 10.5 41.9 73.4 62.9 21.0 209.6 10.6 46.0 85A 76.0 26.0 244.0 100.0 144.0 0.0 7. WeU Sn 4.0 16.2 28.3 24.3 8.1 81.0 4.1 17.8 33.0 :?4 10.0 943 38.6 55.6 0.0 Subtotal Ashni Region 158.1 3406 544.2 689.7 370.3 2.102.9 1644 373.8 627.5 822.2 451.8 2,439.8 1.426.9 895.9 117.0 a. kmg A~af m~la 1. Had Dug Weis Hand dug wel consructon 21.9 65.8 109.7 153.6 87.8 439.0 22.3 72.2 127.6 185.5 108.7 SWd.5 210.6 279.9 25.8 Handpump spply and nstallation 19.2 12.8 12.8 12.8 6.4 64.1 20.2 14.1 14.6 15.1 7.7 71.7 54.5 11.1 6.1 Subtot Hnd Dug Webs 41.2 78.7 122.6 166.5 94.2 -03.0 42.5 86.3 142.2 200.6 116.4 88.0 265.1 291.0 31.9 2. Soreholes Borehoe construction 54.8 164.5 274.1 383.8 219.3 1,096.5 57.5 180.7 313.2 451.7 264.0 1,267.2 957.1 246.7 63.4 Handpumpi spy d nstanat~on 41.4 27.6 27.6 27.6 13.8 138.0 43.5 30.3 31.5 32.4 16.6 i54A" 117.3 24.0 13.1 Subototloreholes 96.2 192.1 301.7 411.4 233.1 1.234.5 101.1 211.0 344.7 484.1 280.6 1.421.6 1,0744 270.7 76.5 3. Piped Systems Borehoeconstrucion 7.1 214 35.6 49.9 28.5 142.6 7.5 23.5 40.7 58.7 34.3 t4.e 124.5 32.1 8,2 Plpen and storage tank constructon 6.0 18.0 30.1 42.1 24.1 120.3 6.2 19.8 34.8 50.5 29.6 140.8 71.5 62.2 7.0 Mech. & Elect. supply and isnatol~n 4.4 13.3 22.2 31.1 17.7 88.7 4.7 14.6 25.3 36.5 21.3 r02.4 77,3 164 8.7 Subtota1 Pied Systems 17.6 52.7 87.9 123.1 70.3 351.6 18.3 57.9 100.8 145.7 85.2 408.0 273.3 110.7 24.0 4. Hondpump Rehab~tation Borehole redevelopment 2.5 7.4 12.3 17.2 9.8 49.2 2.6 8.1 14,0 20,3 11.8 56.8 42.9 11.1 2.8 o Handpump supply and nstalaton 19.2 12.8 12.8 12.8 6.4 64.1 20.2 14.1 14.6 15.1 7.7 71.7 54.5 11.1 6.1 Subtotal andump Rehablitaton 21.7 20.2 25.1 30.0 16.2 113.2 22.8 22.2 28.7 35.3 19.5 128.5 97.4 22.2 8.9 5. S~ntation Latne construclon 5.5 16.5 27.4 38.4 21.9 109.7 5.6 18.1 31.9 46.4 27.2 129.1 52.6 70.0 6.5 . 6. Plaring (TA for communfiles) 10.5 41.9 73.4 62.9 21.0 209.6 10.6 46.0 85.4 76.0 26.0 244.0 100.0 144.0 0.0 7. Wel Sitng 5.2 21.0 36,7 31.4 10.5 104.8 5.3 23.0 42.7 38.0 13.0 122.0 50.0 72.0 0.0 SubtotalBrongAhatoRegon 197.9 423.0 674.8 863.6 467.3 2.626.5 206.3 464.4 776.3 1.026.1 567.9 3,04F. 1,912.7 980.6 147.8 Community Water and Sanitation Project Table 1. Rural Water Supply and Sanitation Detailed Costs (continued) Base Costs "US$ O00s) Total Costs(US$ 00s) Breakdown of Totals 000s) 1994 1995 1996 1997 1998 Total 1994 1995 1996 1997 1998 Total Foreign Local Taxes 1. Hand Dug Wells Hand dug well construcilon 6.0 17.9 29.8 41.8 23.9 119.3 6.1 19.6 34.7 50.4 29.5 1403 57.2 76.1 7.0 Handpump supply and installation 4.4 3.0 3.0 3.0 1.5 14.8 4.7 3.2 34 3.5 1.8 16.5 12.6 2.6 1.4 SubtotalandDug Wells 10.4 20.9 32.8 44.7 25.3 134.1 10.7 22.9 38.0 53.9 31.3 1568 69.8 78.6 8.4 2. Boreholes Borehole constructlon 24.3 73.0 121.7 170.4 97.4 486.8 25.5 80.2 139.0 200.5 117.2 562.6 424.9 109.5 28.1 Handpump supply and installation 17.7 11.8 11.8 11.8 5.9 59.1 18.7 13.0 13.5 13.9 7.1 66.2 50.3 10.3 5.6 Subtotaloreholes 42.1 84.8 133.5 182.2 103.3 545.9 44.2 93.2 152.5 2144 124.3 628.7 475.2 119.8 33.8 3. Piped Systems Borehole construction 4.4 13.3 22.1 31.0 17.7 88.5 4.6 14.6 25.3 36.5 21.3 102.3 77.3 19.9 5.1 Pipeline and storage tank construction 3.9 11.6 19.3 27.0 15.4 77.0 4.0 12.7 22.3 32.3 18.9 903 45.8 39.8 4.6 Mech. & Elect. supply and installation 2.7 8.1 13.6 19.0 10.8 54.2 2.9 8.9 15 22.3 13.0 62.6 47.2 10.0 5.3 SubtotalipedSystems 11.0 33.0 54.9 76.9 43.9 219.7 114 36.2 63.0 91.1 53.3 255.0 170.3 69.8 14.9 4. Handpump Rehablitation Borehole redevelopment 1.0 3.0 4.9 6.9 3.9 19.7 1.0 3.2 5.6 8.1 4.7 22.7 17.2 4.4 1.1 Handpump supply and Installation 7.4 4.9 4.9 4.9 2.5 24.6 7.8 54 6.6 5.8 3.0 2.6 20.9 4.3 2.3 Subtotal Handpump Rehabilitation 8.4 7.9 9.8 11.8 6.4 44.3 8.8 8.7 11.2 13.9 7.7 50.3 38.1 8.7 3.5 5. Sonitation Latrine construcion 2.4 7.2 11.9 16.7 9.5 47.7 24 7.8 13.9 20.2 11.8 56.1 22.9 30.4 2.8 6. Planning (A for communities) 3.6 14.3 25.0 21.4 7.1 71.4 3.6 15.7 29.1 25.9 8.9 83.2 34.1 49.1 0.0 7. Well Sting 1.9 7.6 13.3 11.4 3.8 38.1 1.9 8.4 16.5 13.8 4.7 444 18.2 26.2 0.0 CA Subtotal Northern Region 79.7 175.6 281.4 365.2 199.4 1,101.3 83.2 192.8 323.3 433.2 242.0 1,2745 828.5 382.6 634 D. WeslmaReio 1. Hand Dug Wels Hand dug well construction 28.2 84.5 140.5 197.1 112.6 563.0 28.6 92.6 163.6 237.9 139.4 662.2 270.1 359.0 33.1 Handpump supply and Installation 23.7 15.8 15.8 15.8 7.9 78.9 24.9 17.3 18.0 18.5 9.5 88.2 67.0 13.7 7.5 Subtotal and Dug Wells 51.8 100.2 156.5 212.8 120.5 641.9 53.5 109.9 181.6 256.5 148.9 750.4 337.1 372.7 40.6 2. Boreholes Borehole construction 27.5 82.6 137.7 192.7 110.1 550.7 28.9 90.8 157.3 226.9 132.6 636.4 480.7 123.9 31.8 Handpump supply and installation 20.7 13.8 13.8 13.8 6.9 69.0 21.8 15.2 15.7 16.2 8.3 77.2 68.6 12.0 66 Subtotal oreholes 48.2 96.4 151.5 206.5 117.0 619.7 50.7 105.9 173.1 243.1 140.9 713.6 539.4 135.9 38.4 3. Piped Systems Borehole construction 7.1 21.4 35.6 49.9 28.5 142.6 7.5 23.5 40.7 58.7 34.3 164.8 124.5 32.1 8.2 Pipeline and storage tank construction 6.0 18.0 30.1 42.1 24.1 120.3 6,2 1N.8 34.8 50.5 29.6 140.8 71.5 62.2 7.0 Mech. & Elect. supply and instailotion 4.4 13.3 22.2 31.1 17.7 88.7 4.7 14.6 25.3 36.5 21.3 1024 77.3 16.4 8.7 Subtotalped Systems 17.6 52.7 87.9 123.1 70.3 351.6 18.3 57.9 100.8 145.7 85.2 408.0 273.3 110.7 24.0 4 Handpump Rehabilitation Borehole redevelopment 25 7.4 12.3 17.2 9.8 49.2 2.6 8.1 14.0 20.3 11.8 56.8 42.9 111 2.8 W Hondpump supply and installation 192 12.8 12.8 12.8 6.4 64.1 20.2 14.1 14.6 15.1 7.7 71.7 54.5 11.1 6.1 Subtotal andpump ehabilitatlon 21.7 20.2 25.1 30.0 16.2 113.2 22.8 22.2 28.7 35.3 19.5 128.5 97.4 22.2 8.9 ?1 5 Sanitaton Latrine construction 4.3 12.9 21.5 30.1 17.2 85.9 4.4 14.1 25.0 36.3 21.3 101.0 412 64.8 5.1 6. Planning (TA for communivtos) 10.5 41.9 73.4 62.9 21.0 209.6 10.6 46.0 85.4 76.0 26.0 244.0 100.0 144.0 0.0 7. Well Siting 4.0 16.2 28.3 24.3 8.1 81.0 4.1 17.8 33.0 29.4 10.0 94.3 38.6 55.6 0.0 SubtotalWesternRegIon 158.1 340.6 544.2 689.7 370.3 2,102.9 164.4 373.8 627.5 822.2 451.8 2,439.8 1,426.9 895.9 117.0 TOTALfortJRAL WATER 593.8 1,279.7 2,044.5 2,608.2 1,407.4 7,933.6 618.3 1,404.9 2354.6 3.103.7 1.713.6 9198.1 5.595.1 3.165.0 445.1 Communly Water and sanaon Projec Table 2. Smal Towns Water and Sanktalon Detalled Costa Bse Costh (US$ C005) Total Costs (US '000 ) Breakdown of Totds <.18$ '000s) 1994 1995 1996 1997 1998 Totd 1994 1995 1996 1997 1998 Toal Foreign Locd Taxes 1. INVES~MENT COSIS A.No~e eln 1. Hand Dug Wels Hand dug weD construction 22.4 67.3 112.1 157.0 89.7 448.5 22.8 73.8 130.4 189.5 111.1 027.5 215.2 286.0 26.4 Handpump supply and Instotion 19.2 12.8 12.8 12.8 6.4 64.1 20.2 14.1 14.6 15.1 7.7 71.7 54.5 11.1 6.1 Subtotd Hand Dug WeRs 41.6 80.1 124.9 169.8 96.1 512.6 43.0 87.9 145.0 204.6 118.8 99.2 269.6 297.1 32.5 2. BoMhOles Borehole constructton 21.6 64.9 108.2 151.4 86.5 432.7 22.7 71.3 123.6 178.3 104.2 500.1 377.7 97.4 25.0 Handpump suppy c-d nstalation 16.3 10.8 10.8 10.8 5.4 54.2 17.1 11.9 124 12.7 6.5 60.6 46.1 9.4 5.2 Subtotd Boreholes 37.9 75.7 119.0 162.3 92.0 486.9 39.8 83.2 136.0 191.0 110.7 0.7 423.8 106.8 30.2 3. P~ped Systems Bomehole construction 40.8 122.4 204.1 285.7 163.2 816.2 42.8 134.5 233.1 336.3 196.5 943.3 712.5 183.6 47.2 Pipelne and storge tank constructilon 130.2 390.6 651.0 911.3 520.8 2603.8 133.7 428.5 753.0 1,092.3 639.6 3,047.0 1.548.0 1,346.7 152.3 Mec. & Elect. supply and Installafion 30.8 92.4 154.0 215.6 123.2 616.1 32.4 101.6 175.7 253.3 148.0 711.0 536.5 114.1 60,4 Subtotl Piped Systems 201.8 605.4 1.009.0 1.412.7 807.2 4.036.2 208.9 664.6 1.161.9 1.681.8 984.1 4701.3 2,797.0 1.644.4 260.0 4. Sanitaflon Larine construcfton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5. Planning. desgn and contucDon supen 37.2 148.6 260.1 222.9 74.3 743.1 37.7 162.9 302.6 269.5 92.1 8650 354.5 510.5 0.0 6. WelSiting 2.9 11.4 20.0 17.1 5.7 57.2 2.9 12.5 23.3 20.7 7.1 6.5 27.3 39.3 0. CY Subtotd NorheM Regons 321.4 921.3 1,533.A 1.984.8 1.075.3 5,835.9 332.3 1.011.2 1.768.7 2,367,7 1,312.8 6792.7 3,872.1 2,598.0 322.6 0o 8. Såuh~ R~gn 1. Hand Dug Wells Hond dug well construction 11.2 33.6 56.1 78,5 44.9 224.3 11.4 36.9 65.2 94.8 55.5 263.# 107.6 143.0 13.2 Handpump sly and ~nstaaton 8.9 5,9 5.9 5.9 3.0 29.6 9.3 6.5 6.7 6.9 3.6 31 25.1 5.1 2.8 SubotalHand Dug Wells 20.1 39.6 62.0 84.4 47.8 253.8 20.7 43.4 71.9 101.7 59.1 0.4 132.7 148.1 16.0 2. Boreholes orehole constructlon 10.8 32.5 54.1 75.7 43.3 216.3 114 35.7 61.8 89.1 52.1 250.0 188.8 48.7 12.5 Handpump supply and stallton 7.4 4.9 4.9 4.9 2.5 24.6 7.8 5A 5.6 5.8 3.0 27.6 20.9 4.3 2.3 Subtotl Boreholes 18.2 374 59.0 80.6 45.7 241.0 19.1 41.1 67A 94.9 55.1 277.6 209.8 53.0 14.8 3. Pped Systems Boreho construction 20.4 61.2 102.0 142.8 81.6 408.1 21.4 67.3 116.6 168.1 98.3 471.6 356.2 91.8 23.6 Pipeline and storage tank constru~con 65.0 194.9 324.9 454.8 259.9 1.299.5 66.7 213.9 375.8 545.1 319.2 1,520.7 772.6 672.1 76.0 Mech.& Elect. spply and nstallaton 15.3 45.8 764 107.0 61.1 305.6 16.1 50.4 87.2 125.6 73.4 352,7 266.1 56.6 30.0 SubtotMP~pedSystems 100.7 302.0 503.3 704.6 402.6 2,013.2 104.2 331.5 579.5 838.9 490.9 2,345.0 1.394.9 820.5 129.6 4. Sanitaton t.aline consrucon 6.2 18.6 31.0 43.4 24.8 124.1 6.3 20.4 36.1 52.4 30.7 145.9 59.5 79.1 7.3 5. Pannng,desgnand costuctionsupen~ 18.6 74.3 130.0 111.5 37.2 371.5 18.9 81.5 151.3 134.8 46.1 432.5 177.2 255.3 0.0 äu 6.WeDiSUim 1.4 5.7 10.0 8.6 2.9 28.6 1.5 6.3 11.6 10.4 3.5 33. 13.6 19.6 0.0 SubtotdSouthernRegions 165.2 477.5 795.3 1.033.1 561.0 3.0322 170.7 524.1 917.9 1.233.1 6854 3,531.1 1.987.8 1.375.6 167.7 TOTAL.forSMALu TaWNS 486.5 1,398.8 2.3284 3.017.9 1,66.3 8,868.0 803.0 1,636.2 2,686.6 3.400.8 1,998.2 10,32.9 5,889.9 3,9736 490.3 Commun~y Wat and san aon Procf Table 3. caC fy &u~dng in P~ ~d vae sc~s Dstaed Costs BM. Costs (USS'000s) Totd Costs (USS'000s) Brakdown of Totals (USS'000s) 1994 1996 1997 1998 Total 1994 1995 1996 1997 1998 Total Foreign roca Taes A. C~ns EaLemntandVhee 1. Oco Renovaion CWSD 47.7 0.0 0.0 0.0 0.0 47.7 50.8 0.0 0.0 0.0 0.0 60.8 22.4 26.0 2.5 D~sricts 8.6 14.3 14.3 14.3 5.7 57.3 9.2 16.4 17.4 18.1 7.4 68.6 28.3 36.8 3.4 Subta Ofceenovtion 56.3 14.3 14.3 14.3 5.7 105.0 60.0 16.4 17.4 18.1 74 119.4 50.7 62.8 6.0 2. OMM Eqdment CWSD 63.8 21.3 0.0 0.0 0.0 85.0 68.0 23.4 0.0 0.0 0.0 91,4 91.4 0.0 0.0 D~smcts 12.0 20.0 20.0 20.0 8.0 80.0 12.8 22.0 22.6 23.2 9.5 90.1 90.1 0.0 0.0 Owab Tra~g Schoo 5.0 8.0 5.0 2.0 0.0 20.0 5.3 8.8 5.7 2.3 0.0 22.1 22.1 0.0 0.0 SubtotalO e 0~Equpment 80.8 49.3 25.0 22.0 8.0 185.0 86.1 54.2 28.3 25.5 9.5 203.6 203.6 0.0 0.0 3. Vehicles CWSD 450.0 150.0 0.0 0.0 0.0 600.0 502.9 172.8 0.0 0.0 0.0 675.8 675.8 0.0 0.0 OlsMcts 30.0 50.0 50.0 50.0 20.0 200.0 33.5 57.6 59.3 60.8 24.8 236.1 236.1 0.0 0.0 Subtotal Vehicles 480.0 200.0 50.0 50.0 20.0 800.0 536.4 230.4 59.3 60.8 24.8 911,8 911.8 0.0 0.0 SubtotalOffices. Equmentand Vehicles 617.1 263.6 89.3 86.3 33.7 1.090.0 682.6 301.1 105.0 104.4 41.7 1.234.8 1,166.1 62.8 6.0 mNCcontact 70.6 141.1 117.6 94.1 47.0 470.4 70.7 154.6 137.8 115.0 59.0 537.1 140.4 3%.7 0.0 S8DU contract 49.4 98.8 82.3 65.9 32.9 329.3 49.5 108.2 96.5 80.5 41.3 376.0 98.3 277.7 0.0 CWSD triCndesvery 56.4 112.9 94.1 75.3 37.6 376.3 56.5 123.7 110.3 92.0 47.2 429.7 1124 317.3 0.0 Specl~st servces- souhemregions 117.6 235.3 196.1 156.8 78.4 784.2 123.0 258.4 224.4 185.1 94.7 885.7 674.1 211.6 0.0 Speclst servmces- northen reglons 117.6 235.3 196.1 156.8 78.4 784.2 123.0 258.4 224A 185.1 94.7 885.7 674.1 211.6 0.0 Sta development trning 23.5 47.1 39.2 31.4 15.7 156.8 24.6 51.7 44.9 37.0 18.9 177,1 134.8 42.3 0.0 Specal udies (apled research) 21.6 43.2 36.0 28.8 14.4 144.1 22.1 47.4 41.7 34.6 17.7 1636 84.3 79.3 0.0 Misceneous 10.8 21.6 18.0 144 7.2 72.0 11.1 23.7 20.9 17.3 8.9 81.8 42.1 39.7 0.0 Subtotal TraLnng nd Consltants 467.6 935.2 779.3 623.5 311.7 3,117.4 480.6 1,026.2 900.9 746.6 382.5 3,536.7 1,960.6 1.576.1 0.0 Dtal rnesment Coss 1.084.7 1,198.8 868.7 709.8 345.5 4,207.3 1.163.2 1,327.2 1,005.9 851.0 424.2 4,771.5 3,126.7 1,638.8 6.0 .RECURRENM COMI A. P e møgm Stoff salaes(CWSD) 117.9 235.8 294.7 353.7 176.8 1,178.9 120.8 270.2 366.5 461.1 237.1 1455.6 0.0 1.465.6 0.0 Opertlons (CWSD) 58.3 116.7 145.9 175.0 87.5 583.4 63.4 134.2 175.7 217.9 111.5 702.8 464.0 238.8 0.0 ofatPcurrentCosts 176.2 352.5 440,6 528,7 264.4 1,762.4 1842 404.4 542.2 678.,9 3486 21584 464.0 1,694.4 0.0 TOAL fr CAPACITY MUlLDING 1,260.9 1,511.2 1,309.2 1,238.5 409.8 5,949.7 1,3474 1,731.7 1,548.1 1,529.9 772.8 6.929.9 3,Y907 3.M.2 6.0 TOTAL PROJECCOST 2341.3 4229.8 5,682. 1 464.6 3,63.S 2,771.4 2,468.7 4671.8 68~9.4 0,234.4 44U6 2644.9 15,0467 10,461.8 941.4 70 Annex 2-2 Page 1 of 5 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT IMPLEMENTATION SCHEDULE A. PROJECT START-UP I. During the start-up phase of the project (one year PPF-financed, pre-project phase plus the first six months following project effectiveness), the CWSD is being established, staffed and equipped, and offices for it are being established in Accra (GWSC headquarters), Kumasi (Ashanti Region) and Sunyani (Brong Ahafo Region). Project activities began first in Brong Ahafo Region with a regional start-up workshop for local decision makers and organizations involved in the rural water sector. Subsequently, the first two districts to participate in the project were selected and offices for their District Water and Sanitation Teams established. 2. Key staff who later will be assigned to Ashanti, Northern and Western Regions are either being recruited from outside GWSC or reassigned to the project. During the start-up phase of the project implementation strategies and training materials will be under intensive development, and will be refined through field work and a series of evaluation sessions. A workplan for the start-up phase of the project is given in the following tables. It will be updated each year and agreed to during each annual review. B. PROJECT EXPANSION 1. Shortly after the project becomes effective regional workshops will be held in Ashanti, Northern and Wester Regions for regional and district decision makers and organizations involved in the water sector to discuss the project policies and the proposed implementation strategy. Thereafter, RWST members would be available to address individual district assemblies to explain the CWS Program to them and advise them on related opportunities and responsibilities. Districts that want to participate fully in the project would be required to start by establishing a District Water and Sanitation Team including an offices and a budget for it, setting up a district water and sanitation fund, and successfully implementing the household sanitation component of the project. Thereafter, they would be given priority for full participation, that is participation in the sanitation, water supply and school components. Six months before a district begins full participation in the project, a start-up workshop would be held to inform local decision makers, line ministry staff and groups interested in becoming Partner Organizations about the project, its design principles and their role in it. During this six month period a Small Business Development Unit would identify potential Partner Organizations in the district and assist them to make the best possible proposal to GWSC for their selection. When one has been selected the SBDU would continue to provide management and technical advise to it for several years. Each year two or three new districts are expected to be invited to participate fully in the project. 71 Annax2-2 ägK I gggliiw i li ill i- ig eil Pilge 2 of 111 0i 11Fl ~7IJIh I -• 1993 1994 1995 WHAA T WHO Jul ¡AuglSepiOct NovjDc Jan ;Feb Ma Apr May Jun Jul AugiSep Oct Nov Dec Jan Feb Mar Apr May:Jun rAFFING _ _ _ _L ..... ppointleadprsonforprject earati-on =crut staff for CWSD J Setm of employment GwSC ,Preparjob ptions and advert CWSD JAdvese positions _wsc Prepare shortlist of canididates Gwsc Interview shortlisted canididates GwSc 1 .bitapplication for Nat'l Serice prsonnet GWSC t FFICES AND EQUIPMENT entifyoffices at HQ, Kumasi & Sunyam åGwc - ntdfy offices at Takoradi Gwsc ccify and arrange for rehabilitation work GWSC habilitateexisting GWSC facilities GWSc u entifyoffice at wlyparticipatingdsticts A i ~ecify and a lange forrehabilitation wok DA dobila faclities DA are conactdc's for vehicles& equipnent Lws . bain quotatons for vecles & equipmen ~ -- sD rder vehicles & equipment -ws. ARTNERORGANIZATIONS are TORandsamplecontractforPO wr umL ssistdistrict based POs topreparepros ssDU ] cPOs CWSD _] RAINING NETWORK CENTER pare TOR and contract wr 1mF egotiatc and letconact wscmc ristaconsultants _cm- ep=c coinpe~iu oftrv~n ~abl -- eand rfie basic skilsmoduining CWSD staff IcnTrT are program iformation brochure c pare and rf matrals for o hygen educationw -- pa and ree latine bui module training DWSTs mc e d handpump echanic module, training DM j pare and refine DWST implemetation manua, training -T - esign and insta CWSD MIS and accounting system ACr. FIRM rin CWSD and district persomel to use MIS system AC. FRM F,-m 73 Amwx2-2 Page4of5 -ii-- TV TF - 1 1 -~ 4-- Vr~L '1 ~vL Lj A' iLy! 11 iril XIIIIXiIi 1 -- - - Ii1i1~11iiii11iii -- fl 1 ..~...fiTiIiiv. - 1 tA'1 1 1 1 L 1 ~ 1 1 II Iv _ _ i 1 pjIjJ 1 1. 1 1 1 9 c JJ ig ~I1~i 1993 1994 1995 WHAT WHO JOct 4Nov Dec Jan Feb MarÄAprJ nJulAug Sep Oct Nov.Dec Jan Feb Mar Apr My un [DW CONTRACTrORSI ill I 'paresample bidding docuens for HDWs ¯ppT --¯- eryHDW equipmentWs kdvertisc for potential contractors CWSD _ onduct inoductoryw sp for mterestedConrtor ,WSSBDU Jeotistptentialconractos RwSTj.i~ '1-.~-~..-. end bidding documents toshortlistedcompanies aws valuate tenders and select contractor(s).RwsT leotat and let c¯mta~s)¯¯¯ !RWSrT ign TA/asing agreement RST 4 E L-- t_ ---~- onstuct prototype dug wels-otI AR - T MALL TOWNS CIVIL WORKS CONTRACTORSL repare sample bidding documents and speficaömns c - 11m_m_mm MALL TOWNS CIVIL WORKS CONTRACTORS repare sample bidding docunents¯andspecifcticais¯¯ Im- LANDPUMPMAINTENANCE repar TOR_for haum maintenanc study KIW onn steering committee GwSc _E_. view and falizeTOR CWSD,sc -mmi [old initial steeringcomttee/onsultantwlcshop sc coN repare plan for conversion toconitymanagement ONS teering committee to review and advise on draft plan sc IANDPUMP SUPPLY . repar sample bidding douents _ r ____ dvertise for otentialisuppers cwsD. 'onduct inrouctory workshop for interetedsupliers c~s hortis potential i smewd -- - - end biddingdocumentsto~shortlised suppliers SD valuate tenders and selectsupplier(s) cw legotiate and let contract(s)¯ ¯¯¯¯¯¯¯ i RILLING UNIT entify privatization option for Driling Unit cwsD banconepua apprva from Board & gov't MwSD VIPLEMENTATION MANUAL olicies _ _ _ - -- roject Management and Implementation Methods m_r-1- rivate Sector Support _ _‡PPT1 rocurement, Disbursement, Accounting and Auditing wr amm‡- raining IPPTmm onitoring and Evaluation Project Supervision _ _ echnicalAssistance and ConsmWnte ____T _ ~cncal Specification m mm - iewandrefineimpflemen tatinmnualgCwsD repare CWSD procedures and authority linits cwsc lmrkshoptorefineimplementationmanual cwD,WB COMMUNITY WATER AND SANMTATION PROJECT Details of ProcurementAnangements Base Costs (US$'000s) Total Costs (US$'000s) Breakdown of Totals (US$'000s) 1994 1995 1996 1997 1998 Toal 1994 1995 1996 1997 1998 Total Foreign Locl Taxs RURALCOMPONENT 1. Hand Dug Wes Hand dug wel cns ion 84.2 252.6 421.1 589.5 336.9 1,684.3 85.7 277.0 489.5 711.8 417.1 1.981.0 808.0 1.073.9 99.1 HanumpsupplyandInstalla~n 71.0 47.3 47.3 47.3 23.7 236.8 74.7 52.0 54.0 55.6 28.4 264.6 201.1 41.1 22.5 2. Boreholes greh~o onsnrctn 134.2 402.7 671.2 939.6 536.9 2,684.6 140.8 442.4 766.9 1,108.0 646.5 3,102.6 2,343.5 604.0 156.1 Humpsuplyandnstaalon 100.5 67.0 67.0 67.0 33.5 335.2 105.8 73.7 76.5 78.7 40,3 374.9 2B4.8 5.2 31.9 3. P$pd Systems Brhor~ constkudjn 25.8 774 129.1 180.7 103.3 516.3 27.1 85.1 147.5 212.7 124.3 5967 450.7 116.2 29.8 Pen ad storage tanknstrucon 21.9 65.7 109.5 153.3 87.6 438.0 22.5 72.1 126.7 183.7 107.6 5125 260.4 226.5 25.6 Mech.&ElecK.supplyandinstallon 16.0 48.1 80.1 112.1 64.1 320.4 16.8 52.8 91.4 131.7 77.0 369.7 2790 59.3 31.4 4. Hmn R&pRem Bor~holeredevelpment 8.4 25.1 41.8 58.5 33.4 167.2 8.8 27.6 47.8 68.9 40.3 193.2 145.9 37.6 9.7 Han mpsupplyandinsa alI n 68.1 43.4 434 43,4 21.7 216.9 68.4 47.7 49.5 50.9 26.1 242.6 184.3 37.7 20.6 5. Sannulon Lte oonsbua~n 18.5 49.4 82.3 115.2 65.8 329.2 16.7 542 95.7 139.1 81.5 3872 157.9 209.9 19.4 6.Pla*in(TAforWom%mnle.) 35.0 140.0 24.1 210.1 70.0 700.2 35.5 153,5 28.2 254.0 86.8 815.1 334.0 481.1 0.0 7. WeG SWig 15.2 61.0 106.7 91.5 30.5 304.8 15.5 66.8 124.2 110.6 37.8 354.9 145.4 209.4 0.0 Suii RuralComponnt 593.8 1.279.7 2,044.5 2,608.2 1,407.4 7,933.6 618.3 1,404.9 2,364.6 3,103.7 1,713.6 9,196.1 5,595.1 3.155.0 445.1 SMALI.1011S COPONENT 1. HanDug We Handdugweeonsbud~on 33.8 100.9 168.2 235.5 134.6 672.8 34.2 110.7 195.5 284.3 16.6 791.3 322.8 429.0 39.6 HanumpsuppyWdinsala8on 28.1 18.7 18.7 18.7 9.4 93.6 29.6 20.6 21.4 22.0 11.3 104.8 79.6 16.3 8.9 2. Boreholes Borehole consu~on 32.5 97A 162.3 227.2 129.8 849.0 34.1 107.0 185.4 267.4 156.3 750.1 566.5 146.0 37.5 Haumpsupplyadnalano 23.7 15.8 15.8 15.8 7.9 78.9 24.9 17.3 18.0 18.5 9. 882 67.0 13.7 7.5 3. Pþed Systems 8oholecnsbucton 61.2 183.8 306.1 428.5 244.9 1,224.3 642 201.8 349.7 504.4 294.8 1,414.9 1.068.7 275.5 70.7 Ppesne ands tankn~suoon 1952 585.5 975.8 1,366.2 780.7 3,903.4 200.4 642.4 1.128.8 1,637.4 958.8 4,567.7 2,320.6 2.018.7 228A Mech.&E~~d.uydnswala~n 48.1 138.3 230.4 322.6 184.3 921.7 48.5 151.9 262.9 378.9 221.5 1,063.7 802.6 170.7 904 4. Sanitaffon Lainecons~uc0n 62 18.6 31.0 43.4 24.8 124.1 6.3 20.4 36.1 52.4 30.7 145.9 59.5 791 7.3 5. Plannng, desig and Ont. sup. Nortem Regons (CIDA) 37.2 148.6 260.1 222.9 74.3 743.1 37.7 162.9 302.6 269.5 92.1 865.0 354.5 510.5 0.0 S«u~h Regons 18.6 74.3 130.0 111.5 372 371.5 18.9 81.5 151.3 134.8 46.1 432.5 177.2 255.3 0.0 6. Weß Sing No~hem Regons (CIDA) 2.9 11.4 20.0 17.1 5.7 57.2 2.9 12.5 23.3 20.7 7.1 66.5 27.3 39.3 0.0 Soulhem Regons 1.4 5.7 10.0 8.6 2.9 28.6 1.5 6.3 11.6 10.4 3.5 33.3 13.6 19.6 0.0 Subol SMaR TMs CoMponent 486.5 1.398.8 2,328.4 3,017.9 1,636.3 8,868.0 503.0 1,5352 2,86.6 3.600.8 1.998.2 10,323.9 5.859.9 3.973.6 490.3 CAPAC BLM COMPONNT 1. Oflce Renovaon 56.3 14.3 143 14.3 5.7 105.0 60.0 16.4 17.4 18.1 7.4 119A 50.7 822 6.0 2. Ofilæ Eqipment 80.8 49.3 25.0 22.0 80 185.0 86.1 542 28.3 25.5 9.5 203.6 203.6 0.0 0.0 3. Veh~es 480.0 200.0 50.0 50.0 20.0 800.0 536.4 2304 59.3 60.8 24.8 911.8 911.8 0.0 0.0 4. TNC contrac 70.6 141.1 117.6 94.1 47.0 470.4 70.7 154.6 137.8 115.0 59.0 537.1 140.4 396.7 0.0 5. SBDU cninxi 49.4 98.8 823 65.9 32.9 329.3 49.5 108.2 96.5 80.5 41.3 376.0 98.3 277.7 0.0 6. CWSDranigdalvery %84 112.9 94.1 75.3 37.8 376.3 56.5 123.7 110.3 92.0 47.2 429.7 112.4 317.3 0.0 7. $pep~ sen4æs N~RthemRegons(CDA) 117.6 235.3 19M.1 158.8 78.4 784.2 123.0 258A 224A 185.1 94.7 885.7 874.1 211.6 0.0 Southem Regans 117.6 235.3 196.1 156.8 78.4 784.2 123.0 258.4 224.4 185.1 94.7 8B5.7 674.1 211.6 0.0 8. Stalfdevepe#n~tIminig 23.5 47.1 39.2 314 15.7 156.8 24.6 51.7 44.9 37.0 18.9 177.1 134.8 423 0.0 9. Spedal sludes~(Cpedresech) 21.6 43.2 36.0 28.8 14.4 144.1 22.1 47.4 41.7 34.8 17.7 163.6 84.3 79.3 0.0 10. 1v11m90eous 10.8 21.6 18.0 14.4 7.2 72.0 11.1 23.7 20.9 17.3 8.9 81.8 42.1 39.7 0.0 11. S~?sala (CWSD) 117.9 235.8 294.7 353.7 178.8 1,178.9 120.8 2702 368.5 481.1 237.1 1,455.6 0.0 1,4^.6 0.0 12. Oper~ons(CWD) 58.3 116.7 146.9 175.0 87.5 M63.4 634 1342 17.7 217.9 111.5 7028 464.0 238.8 0.0 SubI~l CqadyB&~SdgComponen 1,20.9 1,51.2 1,309.2 1,23.5 M.B 5969.7 1,347.4 1,731.7 1,5481 1ß29.9 772.8 ~g29.9 390.7 3,333.2 6.0 PF4CTTOTAL 2,341.3 4,22B.S 562.1 8,854.6 3,653.5 22,771. 2,468.7 4,671.8 6,894 8,234A 4,484. 25,448.9 15.46.7 10,461.8 941A COMMUNITY WATER AND SANITATION PROJECT Summary of Procurement Arrangements Proc. Total Costs (Us$ '000s) Breakdown of Totals Method 1994 1996 1996 19197 S8 Total Foreign Local Taxes Civil Works Dug wel construction LCB 119.9 387.7 685.0 996.1 583.6 2,772.3 1,130.8 1,502.9 138.6 Borehole wonstruction ICB 268.2 836.3 1,449.6 2,090.5 1,221.9 5,864.3 4,4294 1,141.7 293.2 Borehole redevelopment LCB 8.8 27.6 47.8 68.9 40.3 193.2 145.9 37.6 9.7 Pipeline and storage tank construction LCB 222.8 714.5 1,255.4 1,821.1 1.066.3 5,080.2 2,580.9 2,245.2 254.0 Latrine construction FIN-INT 23.1 74.6 131.7 191.5 112.2 533.1 217.6 289.0 26.7 Office renovation 60.0 16.4 17.4 18.1 7.4 119.4 60.7 62.8 8.0 Subtotal 700.8 2,057.0 3,588.9 5,186.2 3,031.8 14,562.6 8,555.2 5,279.3 728.1 Equipment Handpump supply and installation LCB 303.3 211.2 219.3 226.8 115.5 1,075.1 816.8 166.9 91.4 Mech. & Elect. supply and Installation LCB 65.3 204.7 364.3 610.7 298.4 1.433.4 1,081.6 230.0 121.8 Office equipment INT-SHP 86.1 64.2 28.3 26.5 9.5 203.6 203.6 0.0 0.0 Vehicles IcB 538.4 230.4 59.3 80.8 24.8 911.8 911.8 0.0 0.0 Subtotal 991.2 700.6 661.2 822.8 448.2 3,624.0 3,013.8 396.0 213.2 Training and Consultants TNC contract CON 70.7 154.6 137.8 115.0 59.0 537.1 140.4 398.7 0.0 SBDU contract CON 49.5 108.2 96.5 80.5 41.3 376.0 98.3 277.7 0.0 Specialist services Northern Regions (CIDA) CON 123.0 258.4 224.4 185.1 94.7 885.7 674.1 211.6 0.0 Southern Regions CON 123.0 258.4 224.4 185.1 94.7 886.7 674.1 211.6 0.0 Planning (PO assistance to rural communl CON 35.5 163.5 285.2 254.0 86.8 815.1 334.0 461.1 0.0 Planning, design and const. sup. (small to Northem Regions (CIDA) OTH 37.7 162.9 302.6 269.5 92.1 865.0 354.5 610.6 0.0 Southern Regions CON 18.9 81.5 151.3 134.8 46.1 432.6 177.2 255.3 0.0 Wel siting Northem Regions (CIDA) OTH 2.9 12.5 23.3 20.7 7.1 66.5 27.3 39.3 0.0 Southern Regions CON 16.9 73.1 135.8 120.9 41.3 388.1 159.1 229.1 0.0 CWSD training delivery OTH 56.5 123.7 110.3 92.0 47.2 429.7 112.4 317.3 0.0 Staff development training OTH 24.6 51.7 44.9 37.0 18.9 177.1 134.8 42.3 0.0 Special studies (applied research) OTH 22.1 47.4 41.7 34.6 17.7 163.6 84.3 79.3 0.0 Miscellaneous OTH 11.1 23.7 20.9 17.3 8.9 81.8 42.1 39.7 0.0 . Subtotal 592.5 1,509.8 1,799.1 1,546.5 665.9 6,103.9 3.012.7 3,091.2 0.0 Project Management Staff salaries (CWSD) OTH 120.8 270.2 366.5 461.1 237.1 1,455.6 0.0 1,455.6 0.0 Operations (CWSD) OTH 63.4 134.2 175.7 217.9 111.5 702.8 464.0 238.8 0.0 Subtotal 184.2 404.4 542.2 678.9 348.6 2,158.4 464.0 1,694.4 0.0 Project Total 2,468.7 4,671.8 6,589.4 8,234.4 4,484.6 28,44.9 15,045.7 10,461.8 944 77 Anne 2-4 Page 1 of I REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT DISRUMSEMENn Schedule of Disbursements Disbursements by Calendar Year (Cedis million) 1994 1995 1996 1997 1998 1999 2000 TOTAL The Government 72 235 473 837 857 619 0 3,094 Communities 17 78 190 324 308 213 0 1,132 Disbursements by Fiscal Year (July-June) (US$ '000s) 1994 1995 1996 1997 1998 1999 2000 TOTAL The Government 0 145 290 530 825 470 200 2,460 Communities 0 35 110 220 305 160 70 900 IDA 550 2,070 3,720 5,250 5,930 3,220 1,220 21,960 CIDA 0 150 380 500 440 150 60 1,680 TOTAL 550 2,400 4,500 6,500 7,500 4,000 1,550 27,000 IDA Disbursements by Semester Disbursements (US$ '000s) Fiscal IDA Semester In Semester Cumulative Cumulative Year Ending as % of Loan FY95 Dec-94 1,310 1,310 6% Jun-95 1,310 2,620 12% FY96 Dec-95 1,860 4,480 20% Jun-96 1,860 6,340 29% FY97 Dec-96 2,625 8,965 41% Jun-97 2,625 11,590 53% FY98 Dec-97 2,965 14,555 66% Jun-98 2,965 17,520 80% FY99 Dec-98 1,610 19,130 87% Jun-99 1,610 20,740 94% FYG3 Dec-99 1,220 21,960 100% 78 Annex 2-5 Page 1 of 5 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT MONTORING AND EVAmuATION A. PRINCIPLES 1. Monitoring and evaluation would be integrated into the everyday running of the project at all levels and used to encourage innovation, team building, and local ownership of the project, and getting all those associated with it to be active participants who feel their ideas and initiatives are valued. To do this monitoring and evaluation must be paricipatory, drawing out people's ideas and encouraging them to be active partners in change. It should also be structured; this is because issues and options need to be clearly defined and tested through comparative studies between different regions, districts and communities, particularly if a National Community Water aia 7anitation Program is to be achieved. The advantage of this approach is that change and diNrsity can be introduced while avoiding the development of different implementation strategies in different regions at the whim of individual project managers and advisors. Communities and districts should be encouraged to identify important issues in terms that are as clear as possible, brainstorm to come up with different options for addressing them, and then try them out. Similarly regions and national planners/advisors should identify issues and options and design experiments to see what works best. 2. Performance at all levels (community, local, regional and national in both the public and private sectors), options (policy and implementation), and resources (numbers of facilities and water quality/quantity) need to be monitored. Each requires a different approach. Performance must be internalized, as top down assessments lead to reports but not change; here participation and self assessment are most important. Options work both ways - new ideas/approaches should be encouraged from the bottom-up but there is nced for comparative assessments from the top-down. Monitoring resources is essentially a counting exercise, with data aggregated from districts, to regions, to the national level. B. ACToRs 3. All sets of stakeholders in the project should be actors in the monitoring and evaluation exercise. This is important because individuals representing different interests need to be involved if the project is to be successfully scaled up and sustained. Individuals that should be involved in the project, and hence in monitoring and evaluation, are listed in the follnwing table. Practically, they can be divided into two groups at each level: project and advisory. Both groups would deal with performance, policy/implementation options, and resources, but from somewhat different perspectives - project groups from the point of view of a contractor, and advisory groups as clients. Project groups would include WATSAN committees at the community level, Water and Sanitation Teams at the district and regional levels, and zonal training teams and GWSC's headquarters based CWSD personnel at the national level. Advisory groups would include government officials, community representatives and private sector participants. 79 Amer 2-5 Page 2 of 5 Monitoring and Evaluation Actos Level Stakeholders Groups Community Women, men, children, households; Community Advisory Committee chiefs, elders and leaders; WATSAN Committee women's and minority groups; WATSAN committees and village volunteers. District District assemblymen, District Advisory Committee district infrastructure committee, DWST program management committee, department heads, line ministry staff, partner organizations, latrine artisans and pump mechanics. Regional Regional Minister, department heads, Regional Advisory Committee NGOs involved in water sector; RWST partner organizations, dug well contractors and equipment suppliers; Regional Water and Sanitation Team. Zonal RWSTs, Zonal Training Team, Zonal Training Team CWSD lead advisors, consultants, World Bank National Government ministries including National Advisory Committee Finance, Works and Housing, Local CWSD Government and Health; NGOs involved in the water sector; private sector water association, and CWSD 4. The monitoring of performace, options, and resources requires different approaches and different groups of evaluators at each level. The monitoring of performance should go on at all levels in the form of self evaluation and training, rather than traditional external criticism. For this purpose WATSAN Committees, DWSTs, RWSTs and CWSD personnel at headquarters would each hold regular meetings to evaluate their performance and identify ways of overcoming problems and improving the way they do things. Often facilitators and resource persons from higher levels would join in the discussion and share ideas. Policy and implementation options would generally be discussed by these same groups but there would be need for a more coordinated effort to synthesize ideas, agree on options, set up a testing program and track results. While DWSTs and RWSTs would be encouraged to discuss these issues and try out new ideas, the issues would be taken up more formally at district, regional and national workshops held every year to assess progress and improve performance. Resource monitoring, that is the tracking of coverage and facilities constructed, would be a joint effort of DWSTs, RWSTs, and CWSD headquarters. Data would be collected and recorded in the MIS system starting at the district level and aggregated at the regional and national levels. Checking would be done by both the RWSTs and CWSD headquarters. 80 Anne 2-5 Page 3 of 5 5. In summary then there would be two types of monitoring and evaluation groups at each level: one project related (WATSAN, DWST, RWST and CWSD), and the other advisory (community, district, regional and national). Project groups would meet regularly with monitoring and evaluation being an integral part of work planning. Advisory groups would meet at least once a year to discuss performance, policy and resources. The CWSD with the assistance of the TNC and other consultants would coordinate this effort and ensure that key issues are brought to the attention of project staff and advisory group, and that the consensus emerging from discussions at all levels is recorded and disseminated. Within the IDA-financed project, the zonal training team would take the lead in coordinating monitoring and evaluation efforts. C. INDICATORS, TARGETS AND METHODS 6. As noted above two important principles in monitoring and evaluation would be followed in the project: participatory evaluation and structured learning. Participatory evaluation encourages bottom-up dialogue while structured learning facilitates systematic definition of options and field testing. Next, one needs to decide what to monitor. It makes sense to track project objectives, but for that measurable indicators that relate to them and data collection methods for each need to be identified. Indicators and corresponding targets, data collection methods and monitoring groups for each project objective are listed in the following table. Monitoring and Evaluation Indicators and Targets Objective 1: Provision of Water and Sanitation Facilities to Rural Communities and Small Towns Indicator Target Methods Monitorlag Gromp Cumulative Totals Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 No. rural water points constructed 50 200 450 800 1000 MIS DWST RWST No. rural communities with improved water supplies 35 150 300 550 700 Records CWSD DAC No. small towns with planning complete 5 20 25 30 30 RAC NAC No. small towns with construction complete 0 5 20 25 30 No. household latrines constructed 200 600 1500 2500 4000 No. schools participating 10 40 100 175 250 CAC Community Advisory Committee DWST District Water and Sanitation Team DAC District Advisory Committee RWST Regional Water and Sanitation Team RAC Regional Advisory Committee ZTT Zonal Training Team NAC National Advisory Committee CWSD Community Water and Sanitation Division PO Partner Organization 81 Annex-2-5 Page 4 of 5 Objective 2a: Sustainability through Community Management of Water and Sanitation Facilities Indicator Target Methods Monitoring Use of water supply facilities 100% of new water supplies in good operating Inspection DWST RWST condition with proper sullage control. Use of sanitation facilities 100% of household latrines being used and kept Inspection PO, DWST clean. Observation Affordability and willingness to Communities are willing and able to pay 5-10% of Discussions DWST RWST pay for water and sanitation the construction cost of their water supply facilities Interviews CWSD facilities. in cash and kind (with the cash contribution equal to Case study CAC DAC RAC or greater than the normal recurrent costs). NAC Households can pay at least half the capital cost in cash and kind and all of the maintenance costs of their latrines. Community management. Community, including women and minority groups, Discussions DWST RWST decide the type of system they want and how to Interviews CWSD manage it. Case study CAC DAC RAC NAC Community group can effectively operate, maintain, repair, collect revenue, keep records and accounts, evaluate and resolve problems, and can arrange for assistance as required. Objective 2b: Sustainability and Repliability through Private Sector Provision of Goods and Services Indicator Target Methods Monitoring Group Planning Eight qualified partner organizations per region. Discussions DWST RWST Two POs added each year. Observation RAC NAC Construction Four qualified dug well contractors per region. Discussions DWST RWST One contractor added each year. Observation RAC NAC Four qualified latrine artisans per district by the end of year two of a district's participation. Operations and maintenance Two qualified handpump mechanics per district by Discussions DWST RWST the end of year two of a districts participation. Observation CWSD DAC RAC NAC Handpumps available at regional centers and fast moving parts at district centers. Qualified companies available to provide O&M services for piped systems in all regions. Manufacturers' representatives of motorized pumps and power supplies available to provide after sales service in all regions. 82 Anner 2-5 Page S of 5 Objective 2c: Sustainability and Replicability through Public Sector Promotion and Support Indicator Target Methods Moaltoring Group Cumulative Totals Yr I Yr 2 Yr 3 Yr 4 Yr 5 Number of DWSTs (partial participation) 0 3 6 9 10 (full participation) 6 12 18 24 30 CWSD and DWSTs Personnel knowledgeable about the CWSP and their Discussions RWST CWSD area of specialty. Interviews MWH WB CWSD and DWSTs relatively autonomous and fly MS records DAC RAC NAC accountable. Case studies Leadership visionary, participative, and builds Reports individual initiative and capacity. Procedures for self-evaluation, problem solving and flexible work planning used regularly. Permanent institutional framework and budget security. Clear administrative and implementation procedures. 1. Partial participation includes training of DWST and household sanitation component. 2. Full participation includes water supply and schools components. Objective 3: Improved Health through Integrated Water, Sanitation and Hygiene Education Indicator Target Methods Monitoring Group Water quantity and quality All individuals in the community use improved Observation PO DWST RWST sources. Measure water use by season including Measure ZTT sources, quantity and time required to collect it. Interview CAC DAC RAC Check water quality by season including color, Discussion NAC taste, odor, turbidity, and level of protection. Numbers and characteristics of users an non-users. Hygiene All persons in community use good water hygiene Observation PO DWST RWST practices. Check water use practices between source Measure ZT and mouth including drawing, carrying, storage and Interview CAC DAC RAC use. Also, check hand washing before cooking and Discussion NAC eating and after defecation, Environmental sanitation Improved excreta disposal in household, including Observation PO DWST RWST handling of infant feces. Measure Z7T Interview CAC DAC RAC Improved management of solid waste and drainage Discson NAC in community. Proper water use at outlets, including keeping surrounds clean and drainage preventing muddy areas and ponded water. Distances between water supplies and latrines sufficient to prevent contamination. 83 Ane 2-6 Page 1 of 2 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT SUPERVISION PLAN 1. Because of the innovative nature of the project and the potential for lesson learning and extending experiences to other World Bank financed projects in Africa, supervision requirements will be relatively high during the first two years of the project, when it is intended that most implementation constraints will be identified and corrected. A concerted effort will be made at the beginning of the project to set up an effective lesson learning process and mechanism for modifying the project design. After the mid-term review supervision requirements would be more typical of other Bank financed projects. 2. Throughout the project a special link will be maintained with the Informal Institutions Unit in the Water and Sanitation Division of the Transportation, Water and Urban Development Department to gain from and contribute to their structured learning efforts. In addition to the specialist services outlined in the following table, it is expected that funds equivalent to about 8 staff weeks per year would be provided to pay the services of a national to furnish day to day support to the project and to facilitate interactions between GWSC, the Ministry of Works and Housing, and external assistance agencies active in the sector to support and refine the National Community Water and Sanitation Program. This person would be administered by the UNDP/World Bank Water and Sanitation Program and would work closely with staff at the resident mission in Ghana involved in infrastructure related projects. Approximate Activity Expected Skill Staff Dates Requirements Weeks 4/94 Introductory workshop for project staff with Task manager 8 special emphasis on project design concepts, Engineer workplanning, and participatory Training specialist communications. 7/94 Second workshop for project personnel with Task manager 12 special emphasis on the establishment of the Engineer monitoring and evaluation component. Other Inst. specialist focus areas will include the community project M&E specialists cycle, the household sanitation component, and Financial analyst accounting and procurement procedures. 11/94 First annual review workshop to assess Task manager 10 progress, refine the Policies and Guidelines, Engineer Institutional Plan and Implementation Strategy, M&E specialists and set the '95 workplan and budget. Workplanning for the small towns component would receive special attention. 84 Anner2-6 Page 2 of 2 Approximate Activity Expected Skill Staff Dates Requirements Weeks 3/95 Supervision mission with special emphasis on Task manager 10 partner organizations and dug well contractors, Engineer and the management information system, Institutional specialist particularly accounting and procurement. MIS specialist Disbursement spec. Financial Analyst 7/95 Supervision mission with special emphasis on Task manager 8 District and Regional Water and Sanitation Engineer Teams, the Training Network Center, and Institutional specialist Small Business Development Unit. Local gov't specialist 11/95 Second annual review with normal assessment Task manager 8 of progress, policies and strategies, and setting Engineer of '96 workplan and budget. Special emphasis Institutional specialist would be placed on an assessment of the suitability of GWSC as the implementing agency. 5/96 Supervision mission with special emphasis on Task manager 8 communities' role in planning and management Community participation of their water and sanitation facilities as well as specialist their ability to meet their financial commitments towards capital and recurrent costs. 11/96 Midterm review to assess progress against Task manager 16 monitoring indicators for the rural and small Engineer towns components; the performance of the Institutional specialist CWS Division and DWSTs; the ability of NGO specialist communities to carry out their responsibilities; the effectiveness of POs, TNC, SBDU small towns consultants and specialist services; and effectiveness of the sanitation, hygiene and schools components. 5/97 Supervision mission with special emphasis on Task manager, Engineer, 8 areas of weakness identified in mid-term and relevant specialists review. 11/97 Fourth annual review. Task manager, Engineer, 10 and relevant specialists 5/98 Supervision Mission. Task manager, Engineer, 8 and relevant specialists 11/98 Fifth annual review. Task manager, Engineer, 10 and relevant specialists 5/99 Supervision mission. Task manager, Engineer, 8 and relevant specialists 11/99 Final review. Task manager, Engineer, 8 and relevant specialists 85 Annex 3-1 Page 1 of 2 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT HYGIENE EDUCATION A. PROGRAM DESCRIPHON 1. Hygiene education (HE) is defined as all activities aimed at encouraging behavior and conditions which help to prevent water and sanitation-related diseases. Improved water supply and sanitation facilities are necessary, but not on their own sufficient, to produce substantial health benefits. They need to be combined with hygiene education. Hygiene education can help motivate people to improve and sustain their water supply and sanitation facilities, encourage them to use the new facilities in a safe way, and promote improved hygiene practices. Hygiene education is needed at all phases of the CWSP in order to make people more pro-active in improving their health. In the past, projects have suffered from an overabundance of messages, often poorly chosen, and in some cases conflicting with those promoted by different agencies. In the CWSP a limited set of priority messages will be selected on the basis of their relevance to water and sanitation, what is achievable by the target group, and what would have the greatest impact on health standards. Specific messages would be introduced at each phase of the project cycle - eg. information about the links between hygiene and water supply would be presented and discussed in the earlier phases before construction is complete. 2. Integrated Approach Hygiene education needs to be closely integrated into the overall approach of developing community ownership and management. Its effective integration with the community mobilization and support work would ensure that the health aspects of water and sanitation are given a high profile throughout the project cycle. In practice this would mean that all of those involved in community animation - the District Water and Sanitation Teams, the POs and the WATSAN Committee members themselves - would need skill training in HE and play a role in promoting hygiene messages. The use of volunteers as hygiene educators has had considerable success in water projects in Ghana. Village Hygiene Volunteers (VHVs) selected to conduct HE at the village level would be drawn from WATSAN Committee members. There would be a team of about three resident community volunteers - two women and one man, selected for their interest and willingness to take on this responsibility. They would receive on-the-job and specific training to work as a team in various educational sessions targeted to key groups in their community. 3. Educadon Methods and Materials The project would make a break with the didactic, lecture-based approach, which treats villagers as passive objects for one-way information transfer and is largely ineffective for bringing about behavioral change. Instead the project would adopt the participatory techniques of modern adult education, which are much more effective in inducing behavioral change. This approach emphasizes learning through doing, discussion, peer group interaction, demonstration, and visual reinforcement. Villagers would be encouraged to identify and analyze health problems and look for solutions and ways to meet goals. As much as possible, VHVs would be encouraged to persuade through example and using simple visual materials, rather than through mere talk. The District Health Management Team and the Environmental Health Department of the District Assembly (the most decentralized of the government extension services) would be encouraged to become 86 Annex 3-1 Page 2 of 2 collaborators in the HE program after receiving training in participatory methods and would support the VHVs. In addition, the radio would be used as a means of reinforcement and a way of legitimizing the HE messages. 4. Target Audiences An important target for the HE program would be members of the WATSAN Committee: by persuao.ag them about hygiene, one would have the support and influence of a powerful local group to help mobilize the community to adopt new habits. Women in the village would also be a primary target; they are responsible for all of the hygiene related domestic activities, including the fetching and storing of water, cooking, and care of children (including cleaning after defecation). B. PROJECT CYCLE 5. Hygiene education would be integrated into the process of helping the community plan, construct and maintain its water supply and sanitation facilities. In the initial phase, the WATSAN Committee members would be briefed on the development and implementation of the hygiene education program. They would be required to make a commitment to implementing HE as part of their input to developing the water supply and sanitation services, and be asked to select three volunteers to receive specialized training and take the lead on this activity. The community would have to set targets for the HE program over time. Once the facilities are constructed, the main program of hygiene education would be initiated. The aim would be to keep the water clean from the well/pump to the point of consumption and to develop other hygiene practices to reduce the disease transmission. Topic areas would include: (a) water management at the source and in the household; (b) latrine use and hand washing; and (c) personal hygiene. Indicators of behavioral change and self assessment activities would be incorporated into monitoring activities. C. DEVELOPMEmT OF THE PROGRAM 6. A three step approach would be followed. The initial step would be to set up a small working group under the TNC for overall strategy design and development of guidelines, specific message design, materials production, and trainer training. This group would consist (apart from TNC staff) of one or two staff from each of the National Office of the CWSD, the Health Education Unit (MO/Accra), and the Health Education Center (Kumasi). The second step would be to develop specific messages for each project phase, a process which would be "front loaded" but would also respond to M&E data. Once the initial messages are defined, they would be reviewed and endorsed by agencies in a workshop. The third step would be to develop new materials or adapt existing ones. Materials produced would cover: (a) aims and objectives of the HE component; (b) training of WATSAN Committee members, VHVs and Environmental Health field workers; and (c) monitoring and evaluation. Materials would be tested in the field. Field testing would include both the testing of pictures (a major part of the materials) and the testing of methods and educationa processes (eg. the effectiveness of the questions). 87 Anner3-2 Page ) of 2 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT SANITATION A. PROGRAM DESCRIPTION 1. The Rural and Small Town Sanitation Components would support the provision of various types of household and public latrines for rural and urban communities, schools and health clinics. The two components would be implemented in a similar fashion with two major differences. The small towns component would include construction of public facilities and the use of more sophisticated building designs and materials. Although several thousand latrines would be built under these components, they are essentially demonstration activities, designed to provide a limited number of units in each of a large number of communities. These will serve to introduce the different type of latrines to rural and urban communities where they are little known or used, and to create contacts between communities, households or groups and qualified latrine builders. The ultimate objective is to establish a market for latrines, with buyers and suppliers acting independently of any continued public sector support. 2. A budget allocation has been made for the construction of about 100 household latrines per district per year for the rural component, which would result in the construction of about 7,000 latrines in the 4 regions (30 districts) participating in the rural water and sanitation component. However, funds could be transferred to or from other budget lines such that the allocation for sanitation can be halved or doubled depending on demand. The following table shows the expected number of latrines to be constructed in a region during the project. The number of systems installed for the small towns component would, like the rural component, also be budget limited and allow for the same flexibility in terms of responding to demand. 3. The CWSP will promote latrine construction through direct marketing by latrine artisans, POs and DWSTs, as well as through the school water, sanitation and hygiene education program. It is expected that private sector capacity to respond to the resulting demand by training individual artisans will be established. The strategy would be for DWST members to obtain recommendations from villages around the district for candidates to become fully qualified latrine artisans, authorized to prepare contracts with individual households for latrines paid in part by a government grant. Starting with about 40 candidates it is expected that five will eventually be fully qualified by the DA and authorized to obtain applications for household units and submit these to the DWST for co-financing. A total of about 150 artisans would eventually be licensed in the four project regions. 4. Technology choice by the users is fundamental, and householders and community groups will be encouraged to choose from a number of options. Designs would include: (i) a basic pit latrine using traditional building materials; (ii) a mozambique style latrine (i.e. non- reinforced concrete slab) with - and without a vent pipe; (iii) a san-plat style latrine (i.e. 88 Anner 3-2 Page 2 of 2 reinforced concrete slab) with - and without a vent pipe and; the multiple (10-unit) KVIP, a tried and tested public facility in Ghana. 5. Public school and health center latrines would be as follows: public facilities would only be supported by the CWSP in heavily used public places such as markets, lorry parks, etc. Their management requires special attention, and as far as possible, would be undertaken as a commercial enterprise by a contractor charging controlled user fees. Proposals for the management of public facilities will be rigorously examined before granting any subsidy. Schools and health centers will benefit from the project an arrangement where they provide labor and materials such as bricks only. The schools and health centers may serve as demonstration projects, and er.try points for hygiene education and community action. B. SANIfATION DELIVERY 6. Whilst water supply is a community-wide activity, household latrines involve only individual householders. Even in a highly mobilized community, complete sanitation coverage is likely to take a number of years to achieve, whilst in other communities this may take several decades. Thus, whilst the promotion of latrines can and should be undertaken continuously at community level, it will only be viable to provide latrine building capacity at the district or sub-district level. For this reason, the DWSTs will be the main focus of activity for the sanitation component of the CWSP and the DWST will have direct responsibility. Even before becoming involved in the CWSP, District Assemblies would be encouraged to form Water and Sanitation Teams and to begin implementation of the sanitation component. In keeping with the demand driven nature of the CWSP, such positive action would be an important consideration in the selection of districts for full participation in the water supply component of the project. 7. The initial step would be the training of the DWST and District Management Committee, which would include formal sessions run by the Regional CWSD, and visits to other regions where similar programs exist. The training course would include information on the project cycle, financing arrangements and accounting, selection and training of artisans, marketing techniques, latrine technology and construction, and monitoring and evaluation. POs, VWVs and other field workers (both government and non-governmental) would be involved as trainees or trainers. The latrine builders trained would then be trained to provide services based on clearly defined procedures for financing and construction. Finally, mass media such as leaflets, posters and local radio would be used for promotion and information dissemination purposes. The approach should not rely entirely on the hygiene education rationale, but should rather emphasize social marketing messages such as status, ownership, privacy and convenience, to reinforce the health and hygiene messages disseminated at community level. The development of the social marketing campaign will be undertaken by the hygiene education working group. 8. Monitoring and evaluation of the components would be established right from the start, with the close involvement of the District Management Committee, and would include not only quality control of latrines constructed, but also the effectiveness of user education, and the identification of any problems or innovations emerging at field level, which would be shared with the RWST. 89 Anne 3-3 Page I of 2 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT SCHOOLS PROGRAM A. OVERVIEW 1. There would be an initial demonstration phase under the CWSP in which about 10 ,.chools per district would improve their latrines. This adds up to 250 schools in the 24 districts of the 3 target regions. Another 100 or so schools (mostly from this same group) would improve their water supplies, generally by installation of a single well or borehole. As for the community water supply and sanitation components, hygiene education is an essential complementary activity, but the nature of schools as educational institutions, and their young communities of pupils, demand a slightly different approach. B. DESCiPON OF AcTIVmES 2. A detailed survey of existing school sanitation facilities and the content of hygiene promotion in the school curriculum would be reviewed. The survey would be carried out by the DWST and other local extension agents who would also use this opportunity to promote the CWS program. PTAs would make applications on standard forms very similar to those used for community Construction Grant Applications, with an additional undertaking to provide all labor and superstructure materials (principally sun-dried bricks) for the latrines. Information given would be confamed by the DWST, and the applications would be endorsed by the District Assembly and passed to the Regional CWSD for action. 3. Based on the application from the Parents and Teachers Association (PTA), selected schools in the targeted District Assembly areas would have their existing facilities rehabilitated or new improved latrines constructed. The units would be of comparable designs to those used in homes, augmented by handwashing basins and urinals. Usually, a battery of 5 home latrines per school would be provided on the basis of 2 units each for boys and girls and 1 unit for the teachers. A commitment to excavating the pit, and more importantly, molding of sufficient sun-dried bricks for the superstructure (about 30% of the cost), as well as the formation of a health education club in the school would be criteria for qualifying for a latrine grant from the project. 4. Funding would be available initially for 10 schools in each district, although this may be increased if demand is high. Management and financing would be specified in much the same way as for water supplies in the Facilities and Management Plans. These would be drawn up for the latrines and (if required) the water supply, and submitted through the DWST to the District Assembly and the Regional CWSD office, where the appropriate contracts would be prepared and let. School contributions for water supplies would be calculated on the same basis as for communities, whilst contributions for latrines would be limited to in- kind inputs, including excavation and superstructure materials. Latrine construction contracts would be let directly by the CWSD to licensed artisans, or, in the early phases of the project, may be used as training exercises for the artisans. 90 Anner 3-3 Page 2 of 2 C. TRAINING STRATEGY 5. Training and support would be provided directly by the Regional CWSD. with assistance from the hygiene education working group coordinated by the TNC. If any Partner Organizations are working in the area served by the school, they would be asked to attend relevant planning sessions for the school project, so as to coordinate activities and enlist the help of teachers in reinforcing community hygiene education and latrine promotion. 6. Specialized training materials would be required for the schools program, and their development and production would be coordinated by CWSD's Regional schools and hygiene education officers, with support from the zonal training officer and the hygiene education working group. Development, pre-testing and production of appropriate teaching/training materials as well as the establishment of a collaborating framework between PTAs and the District Assemblies would be carried out to ensure sustainability of the program. 7. Training of facilitators (teachers and health education extension workers) would be carried out as part of this component activity. Each school would select four teachers for hygiene education training, which would be provided in workshops of about one weeks' duration for groups of up to 40, during holiday periods, where they would also be provided with reference manuals and teaching resource materials. During the first subsequent school term, the main activities would be focused on gaining an understanding of water and sanitation related disease and its importance, particularly diarrhoea, intestinal parasites and, if relevant, guinea worm. This would be coupled with some basic epidemiology about how small quantities of faecal matter are transmitted through the environment, and how this can be reduced by containment of faeces in latrines, protection of water sources and improved personal and domestic hygiene. 8. Children can be a highly effective means of introducing messages to adult household members, and are particularly sensitive to peer pressure; they may thus be an important element in persuading their parents to construct household latrines, or to support a water supply project. Once the improved facilities have been constructed, the accent would be on adopting improved hygiene practices, such as handwashing, cleaning and maintenance of water points and latrines, including a clearly-defined schedule and responsibilities for the latter. 91 Annea Page 1 of 4 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT PRIVATE SECTOR PARTICIPATION A. INTRODUCTION 1. The project has been designed to encourage private sector involvement in planning, design, construction, maintenance and spare parts distribution for water supply and sanitation facilities. Private firms would be contracted to provide these services and where necessary would be given financial support as well as technical and management training. Specifically, the project would work through the private sector to assist communities to plan their water supply systems; to construct boreholes, hand dug wells, piped systems and household latrines; to supply pumps and spare parts; and to provide maintenance and repair services. B. HAND DUG WELL CONSTRUCTION 2. Over 30,000 communities with populations under 1000 are scattet.-d over rural Ghana. Where hydrogeological conditions permit (about 2/3 of cases), hand dug wells are the most economical way of providing safe water to these small communities as about four can be constructed for the price of a single borehole. If a contractor produces hand dug wells only, the optimum number of wells is between 50 to 80 per year. The capital cost for the basic equipment needed to construct this number of wells is ab<ut C10,000,000 (US$16,500). Construction companies with other activities could operate on smalk numbers. This means that in every region about 3 to 5 private contractors can make a living, when the National Community Water and Sanitation Program is at full scale. In the first year of the IDA-financed CWS Project two dug well contractors will be selected through LCB following pre-qualification. Two or three additional contractors per region will be added in the remaining years of the project, probably one per year. 3. The CWSP would generally work through existing construction companies that have a track record of successful civil works and sound management (both financial and organizational) and basic equipment. Potential hand dug well contractors would have to go through a qualification process: (i) first meeting requirements for equipment and completion of civil works; (ii) then successfully completing an introductory training course; and (iii) constructing about 40 wells under a first contract, starting with five during which on the job training would be provided and then constructing additional lots. When there are at least three fully qualified contractors in a region, wells would be packaged and contracts let annually through local competitive bidding procedures. Pre-qualification and training would be provided by SBDU personnel. All training materials and teaching aids are readily available. 4. The CWSP would also assist contractors by providing credits for basic equipment (refer to the implementation manual for details) under lease-purchase arrangements with repayment made through contract work. After a contractor has proven capable of doing the 92 Anne3 Page 2 of 4 work he would be eligible to receive additional financing for the optional equipment included on the list. Vehicles would be excluded from the assistance package as the use of existing transport capacity will be required. In addition, a large stock of equipment is available in the country from former projects such as PAMSCAD. This equipment could be made available to the private sector under similar hire-purchase arrangements, and NGOs already operating would be encouraged to commercialize their operations. C. DisralatroN oF EQUIPMENT AND SPARE PARTS 5. There is not enough money to be made in spare parts supply to attract legitimate equipment suppliers. Consequently, contracts will be let for a packagi of services including equipment sales, spare parts supply, and installation and maintenance services. Responsive bids must demonstrate that pumps and all spare parts are available at specified regional centers (about 2 per region) and that service representatives in each participating district (about 30 total m four regions) are selected and trained to install and make all types of repairs. The CWSD would prepare a list of recommended spare parts sales prices for all the standardized pumps. This list would be reviewed and agreed on annually together with the pre-qualified suppliers/manufacturers. The price list would be published as recommended prices so that the communities would know what the spare parts cost. 6. It is not possible to prescribe a definite way how these would be achieved. However, the distribution network could have the following appearance. (a) The national supplier manufactures/imports the pumps as well as the spare parts required. He keeps fully comprehensive stocks of the spares in his central store. (b) In each region sales representatives would keep adequate stocks of pumps and spare parts at strategically located towns, usually two per region. In the case that the components would not be in stock with the regional dealer, he should be able to order the parts within one week from the national supplier. The regional dealer would sell the spare parts either directly to communities or through service representatives (associated area mechanics) and would have a margin of about 30% on all spares. The bulk of the spare parts sales would be parts that are to be replaced during the preventive maintenance inspection. This would allow the regional dealer to plan fairly closely the annual turn over on spares. (c) The area mechanics are the principal outlets for spare part sales at the district level. They would also try to establish service contracts with individual communities and do annual preventive maintenance inspections during which the fast wearing parts of the handpumps are replaced. The area mechanics would have a margin of about 20% on all spares. They would typically stock only fast moving parts such as those replaced during the annual preventive maintenance inspection and R few pump rod and rising main sections. Other parts would have to be ordered from a regional sales representative. 7. The IDA financed CWS Project would facilitate the supply of a high-lift and low-lift pump through the private sector by purchasing half the requirements for the project through 93 Annex 3-4 Page 3 of 4 local competitive bidding where responsive bids would have to offer one or more of the four handpumps currently commonly used in Ghana and approved by GWSC, and offer at least the minimum after-sales maintenance and spare parts distribution services specified in the bidding documents. Nonetheless, communities would be free to purchase one of the four recommended handpumps from any supplier that offers at least the minimum after-sales maintenance and spare parts distribution services specified in the bidding documents. Other ESAs would be encouraged to similarly support the distribution and sale of one or more of the recommended pumps through the private sector. 8. More specifically the project would finance the purchase of about 850 handpumps (250 high-lift and 600 low-lift) plus sufficient spare parts to fill the distribution chain. At the beginning of the project about half of the total number of pumps (125 high-lift and 300 low- lift) would be procured through local competitive bidding procedures with delivery spaced over the first two years. Suppliers could provide a low-lift (direct-action) handpump and/or a high lift pump from a list of pumps that are currently used in Ghana and have been approved by GWSC. These include the Ghana Modified India Mark II, the Nira AF85 (or equivalent), the Afridev, and the Vergnet. Payment would be as described in para 4.47. 9. It would be necessary to establish quality control procedures which ensure that the pumps produced in Ghana as well as imported pumps are made to specification. This would be done through independent third party quality assurance where the pumps purchased under CWSP would be checked for conformity to specifications at the manufacturer's premises. In addition, local suppliers would be trained to check that the pumps they procure are made to specification. D. HANDPUMP MANUFACT'RE 10. It is estimated that the market for handpumps in Ghana will be 2,500 to 3,000 per year. Local manufacturers could supply about half of this market, i.e. about 1,500 pumps per annum. The investments required for equipment and tooling as well as substantial demand for working capital constrain the choice of companies. Small scale and cottage industries would financially not be able to undertake such a venture and would not have the managerial ability for sustained successful production. Economic conditions in Ghana have considerably improved over the last 4-5 years. Under the Ghana Investment Code it is possible to obtain quite favorable relaxations on import restrictions and tax and duty exemptions. However, it is still very difficult for local industries trying to compete against imported products. Constraints that affect the local production include: (i) Ghana does not have a traditional manufacturing industry, because of this there is a deficiency in managerial skills and trained personnel; (ii) confidence in the future of Ghana's economy is lacking so most companies do not have access to venture capital and are not willing to invest if they do not have immediate returns; (iii) it is difficult to obtain foreign currency; (iv) manufacturers have to pay for raw material through Letters of Credit, they pay import duties on raw material as exemptions are troublesome to obtain; (v) procurement is done by international competitive bidding for equipment only; and (vi) handpumps can be imported duty free, and (for instance) manufacturers in India profit from export subsidies 11. Realistically, local manufacture is not always feasible, some countries just do not represent a big enough market. In Ghana, two and possibly three local manufacturers could enter the market. Their first offering should probably be a direct action pump since that is Annex 34 Page 4 of 4 the niche where locally made pumps can now compete with offshore offerings. The production of high lift pumps might materialize if a particular pump proves to be popular with consumers. To facilitate the local manufacture of a direct action handpump the project would purchase up to 100 pumps from a local manufacturer with the requisite metal fabrication equipment and financial resources to enter the market. Procurement would be staged starting with 10 prototypes and then increasing the order to 50 and 100 pumps if subsequent batches are made to specification. Technical assistance would be provided to the local manufacturer to ensure good in-house quality control procedures. E. MAINTENANCE AND REPAIR SERVICES 12. A number of maintenance options were considered but the two that appeared the most viable were either a very small or a very large enterprise. The small option would be typified by an area mechanic equipped with a bicycle who services about 50 pumps; and the large would be an organization such as the 3000 Wells Maintenance Unit that provides comprehensive services including spare parts and borehole flushing for several thousand pumps in a number of regions. A combination is also possible where the 3000 Wells Maintenance Unit would provide borehole flushing services, back-up repair services to associated area mechanics (local service representatives), distribute equipment and spare parts, and install pumps. With the exception of borehole flushing, this would be essentially the same sei , :es as proposed for national handpump distributors. The CWSP will pursue both approaches. It will finance the establishment of a national handpump distributor and associated regional sales and district service representatives, and will support efforts to privatize GWSC's 3000 Wells Maintenance Unit so that it can undertake similar activities. Communities could choose to purchase pumps and after sales services from either. Over the course of the project the most viable sales and service system will become apparent. 13. In the short run the GWSC Maintenance Unit is particularly important, as existing handpump communities rely on them for maintenance services during the transition to community management. The Unit could also have an important long term role as a private company. A study financed by KfW will be undertaken in the first half of 1994. Ways will be sought to ensure sustainability of existing pumps during the transition period and to evaluate privatization options. A preliminary financial analysis made during preparation of the ID-financed CWS Project showed that the Unit, if only maintaining and repairing handpumps, would not be commercially viable. Additional activities with a higher economic return would need to be performed, while unprofitable ones such as day to day maintenance and annual inspections delegated to local service representatives. KtW would likely provide technical and financial assistance in making this shift to a privatized operation. 14. To obtain a construction grant for an improved water supply system communities would be required to agree to have their facilities inspected by a CWSD approved mechanic on an regular basis (handpumps once a year, piped systems according to the technical requirements) and encouraged to enter into service contracts with local service representatives. During inspection the fast wearing parts would be exchanged and other repairs made to ensure trouble free operation. The communities will have to pay for this service to the mechanic. An inspection report will be prepared in duplicate (copies for the community and DWST). Any other repairs and additional spare parts which become necessary between the inspections would also have to be paid by the communities. In order to perform the preventive maintenance inspections area mechanics would need to be certified by CWSD. 95 Annex 3-5 Page 1 of 4 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT TRAINING PROGAM A. TRAINING APPROACH 1. Community-managed water supply and sanitation is a relatively new concept and activity in Ghana. An important aspect of the CWSP is therefore the establishment of a new institutional structure for the sector to enable meaningful community participation. Existing sector personnel and those to be newly recruited will need preparation for their new roles and responsibilities, and the new institutions themselves will require support as they develop within the new institutional structure. Additionally, the interactive nature of the program means that the methods used for project implementation must evolve continuously in response to field experience, incorporating feedback from fieldworkers and participating communities. The training program must therefore be seen not as an isolated component of the CWSP, but rather as a major tool in project management and implementation, continuously involving personnel at all levels from communities to senior management. 2. Fundamental to this approach is training as a two-way process. It will communicate the CWSP approach and guidelines and impart the skills, confidence, and awareness needed by project implementors at various phases of the project cycle; at the same time it will serve as the means through which fieldworkers, and, through them, commumties, can raise the practical problems and concerns of trying to implement the CWSP in the field, and give their ideas on how to make it work. Training workshops will bring these two perspectives together and provide an opportunity for joint learning, evaluation, problem-solving, and planning. 3. This two-way partnership has implications for the way in which training is conducted: it will need to adopt a highly participatory, interactive, and problem-solving form, in which participants are treated as responsible and capable of critical analysis, creative thinking, problem-solving, and action planning, and not mere objects of skill 4nd information transfer. By giving trainees a role in defining solutions to practical problems in project implementation, evaluating their own performance, and shaping the strategies used in project planning and implementation, an effective and realistic system can be created, ensuring a greater sense of commitment and ownership from the CWSD's partners in the program, the POs and communities. Through this two-way process and bottom-up feedback, the training workshops will contribute to the evolutionary development of the CWSP methodology. 4. In addition to the establishment of appropriate methods for the training program, effective two-way communication within the CWSP requires that all those concerned acquire a set of basic skills and knowledge that will enable them to work together in making a fully integrated package of technology, hygiene education and management accessible to the target communities. Thus, technical personnel need to develop the attitudes and listening skills needed to appreciate the ideas, aspirations, concerns and problems of communities and field workers, and the ability to present technical information in a way that can be understood; they have specialized knowledge, but this is only one element of the solution in any given 96 Anne 35 Page 2 of 4 situation, which they alone can not prescribe. Simila-ly, community animators and hygiene educators need to understand the technical possibilities for, and the constraints to, providing improved water supply and sanitation facilities. Such a basis of shared knowledge and attitudes is an essential prerequisite for effective teamwork at all levels in the CWSP. 5. A list of the training techniques that would be used include: action/reentry planning, action-refl.ction cycle, mix of prescriptive training and problem-based learning, simple teaching methods used uniformly, keeping the content simple, participatory, learner-centered approaches, learning in small groups, modeling, every trainer a trainee, team bunding and network building. A description of each of these techniques is provided in the Implementation Manual. B. TRAINING STRUCTURE 6. Training for the CWSP will be provided for all those involved in implementation of the project. At the zonal level (regions paiticipating in the IDA-financed CWSP) the training of trainers will be the responsibility of a zonal training team (ZTT) and small business development unit (SBDU). The zonal training team, composed of personnel from the GWSC's CWSD and the Training Network Center at the University of Science and Technology, wi!l develop and produce training materials for RWSTs, schools, latrine artisans and handpump mechanics; the training of RWSTs; and the monitoring and evaluation of key factors affecting project implementation and sustainability. A Small Business Development Unit, experienced in working with local NGOs to implement community based water supply projects, will train and support Partner Organizations and hand dug well contractors and prepare training materials for them. RWSTs will provide general operational support the to DWSTs and assist them to implement the latrine, schools, hygiene education and handpump maintenance components; and Partner Organizations will train individual communities. A diagram showing this training support structure is given in the following chart. CORE GROUP CWSD HQ RESOURCE ZONAL TNC WATER PERSONNEL TRAINEnS AID RWSTsSBDU CONRATOR CNSLTATs SUPLIRs DISTRICT A'smmLIs POS DUe WELL DWSTS CONTRACTORS LATRINE HANDPUMP SCHOOLS COMMUNITIES BUILDERS MECHANICS PROGRAM 97 Annex 3-5 Page 3 of 4 C. TRAINING AUDIENCES 7. Regional CWSD and DWST Staff New regional and district staff will need a combination of classroom instruction and field experience. Classroom instruction will be provided at the Owabi Training School and field experience will be provided in operational regions. Each part of the training will last about one month and graduates will receive a certificate in CWS. Follow-up training will be provided by the core training team (who will help to plan and run the course at Owabi). 8. Partner Organization Staff Partner Organization staff (community development, RWS technology, hygiene education and sanitation specialists who constitute the POs) will also be trained at the Owabi Training School. Field and classroom training activities will last about two months and graduates will receive a CWS certificate. Follow-up training and supervision will be provided by the regional CWS team. 9. Handpump Mechanics Many regions already have trained handpump mechanics who are employed by GWSC. In addition, local vehicle and bicycle mechanics etc. would be encouraged to take on handpump maintenance as a sideline. These mechanics would be offered training on repairing new types of pumps and, more importantly, learning to operate a private business. This training would be provided by the equipment and spare parts contractor. 10. Hand Dug Well Contractors Existing and new contractors interested in this business will need financing and training. This training will be provided by a group made up from the regional CWSD teams to develop hand dug well construction technology and capacity. Follow-up construction inspection and training will be provided by regional CWSD and DWST staff. 11. Lattine Artisans Latrine artisans will need several weeks of initial instruction and follow-up supervision. Instruction will include not only technical aspects of construction but also promotional and business aspects, as they will need to generate business for themselves through personal contacts with individual households in their area. Initial training will be given at district centers by the regional sanitation specialists and follow-up supervision will be made by district sanitation specialists. 12. WATSAN Committees and VHVs Although most education and training for these cadres will be provided in the community by the POs, they will also be brought together in larger groups at zonal level for direct training on short courses with the participation of the DWST. 13. District Assembly and Line Agency Staff These personnel will be given an overview of the project so that they can coordinate it with their other activities. In addition, specialized training will be provided for the relevant workers, in hygiene education, financial management and administration. It is relevant to note in this connection that the EC micro-projects program, operating throughout almost all of the project area, is also providing institutional strengthening in administration and management to the District Assemblies. District Assembly Members will also receive orientation on the project at district workshops facilitated by the regional CWSD and DWST. 98 Annex 3-5 Page 4 of 4 D. TRAINING MATERALs 14. The development of training materials, training methods, and training courses would go hand in hand with the implementation of pre-project activities in Brong-Ahafo Region, and their refinement would be an integral part of the full-scale CWSP. The CWSD, TNC and SBDU should work closely together on these tasks. Generally, the TNC would focus on training modules directed at the RWSTs, DWST! and the groups, whilst the SBDU(s) would focus on materials for the Partner Organizations and hand dug well contractors. 15. In order to standardize training to the greatest extent possible, common curricula and training materials of four basic types should be developed for use in the training program: (i) Trainers' Guides, providing more detailed background information than can be included in a field handbook; (ii) resource materials for use in training; (iii) handbooks or guidelines for the trainees, covering the major topics of the training courses and serving as on-the-job reference tools; and brochures providing information on the CWSP for selected target groups. 16. Detailed descriptions of the training modules to be prepared, indicating responsibility for their preparation, target groups, format and content are given in the following table. Their development involves three main blocks of activity: (i) collation of existing materials; (ii) development of the materials through an iterative process of drafting, field testing and review; and (iii) training materials review workshops where a wider group can provide inputs to improving the quality, methodology and consistency of the materials and training methods. Table 1. Training Modules and Target Groups Module Content Material Type ' Target Group B H R T Prepared by Basic Skills2 RWSTs, DWSTs, SBDUs, POs * 0 0 TNC Program Information Decision Makers 0 TNC Beneficiaries and Service Providers TNC Community Support and Hygiene Education WATSAN Committees & Volunteers 0 0 SBDU Partner Organizations * 0 * SBDU School Teachers 0 0 0 TNC Technical Services Hand Dug Well Contractors 0 * SBDU Latrine Builders 0 0 TNC Handpump Mechanics 0 0 TNC Management CWSD (Implementation Manual) 0 CWSD DWST (Implementation Manual) 0 0 TNC 1) B: Brochure, H: Handbook, R: Resource materials, T: Trainers' Guide 2) Basic skills includes modules on project information, health and hygiene, participatory communications, teamwork, and management. 99 Annex 3-6 Page I of 2 REPUBLIC OF GHANA COMMUNITY WATER AND SANITATION PROJECT TECHNOLOGY CHOICE A. WATER SUPPLY TECHNOLOGY 1. It is important that communities are able to choose the technology that will give them the highest service level that they want, can afford, and can maintain. To be acceptable to consumers and sustainable, - higher level of service should accompany any increase in costs where service level is deter-mined by a number of factors, including the quantity and quality of the water, the amount of time needed to collect water, and the reliability of the system. Technologies supported by the project would include hand dug wells aru bcreholes; latrines; handpumps; electric, diesel and solar pumps; and small piped di-tribution networks. Further information about each is provided in the Implementation Manual. For each the CWSD Technical Unit would prepare and maintain (a) specifications including technical drawings, bills of quantities, and construction and quality control procedures; (b) sample bidding documents and model contracts; (c) acceptance inspection procedures including acceptance criteria; (d) pre-qualification and licensing procedures; and (e) guidelines for O&M. 2. Groundwater has a number of advantages over surface water for the provision of water supply and should be used as the source of supply whenever possible: it is available within the community, is more reliable throughout the year and in periods of drought, and generally does not require treatment. Springs and hand dug wells are preferred sources of water because they are relatively inexpensive and provide a good basic service. More expensive machine drilled boreholes should be used only if springs or hand dug wells are not suitable. In all cases care must be taken that the source provides a year round supply of water. Where required, surface water treatment for small piped systems should be based on slow sand filtration preceded by roughing filters and should make use of hydraulic rather than electro-mechanical processes. Infiltration galleries can provide even better and more reliable treatment at lower costs and should be used whenever technically feasible. 3. Different priced water supply options for both point sources and piped systems and information materials, easily understood by community groups, showing typical designs and costs (capital and recurrent) should be available. The technologies described in the Implementation Manual would be the typical options. They include dug wells with and without handpumps, boreholes with either direct-action or high-lift handpumps, and small piped systems utilizing either groundwater or surface water with appropriate pumping and treatment units. Pumping options would include electric submersible pumps powered by the electric grid, photovoltaic cells or diesel generating units. Lower cost surface-mounted, gas- powered centrifugal pumps with locally made storage tanks would also be an option. Generally, hand dug wells would be the least cost option, regardless of the community size. Where hand dug wells are not feasible due t) hydrogeological constraints or a community wants a piped system, the least cost technology would depend on the population size, well yield, and proximity of the water wells to the national electric grid. Typical capital outlays and annual costs for each basic technology options are given in Table 1. Costs, however, vary with the size of the community and the type of pumping system employed. This is illustrated in Table 2 where systems are ranked in terms of their capital cost. 100 Annex 3-6 Page 2 of 2 Table 1: Costs of Principle Technology Options Capital Cost Annual Cost Unit Cost Technology Total Per Capita (US$) (US$) (US$/yr) (US$/m3) Dug Well with Bucket 2,000 10.00 350 0.30 Dug Well with Handpump 3,000 15.00 525 0.45 Borehole with Handpump 11,000 36.50 2,500 0.95 Piped System (2500 pop.) 80,000 32.00 16,000 0.75 Table 2: Ranking of Water Supply Options by Capital Cost' Community Size and Pumping Lift Small size Medium size Large size Type of System < 500 people 1500 people > 2000 people Low lift Medium lift High lift <lom lift 20m lift >40m lift Hand Dug Wel2 1 1 1 Borehole + Handpump 2 5 5 Borehole + Grid4-1 3 2 2 Borehole + Solar5 4 3 4 Borehole + Diesel' 5 4 3 Notes: 1) 1 denotes the least cost option and 5 the highest. 2) Hand dug wells have capacity to serve up to 200 people. 3) The dynamic pumping level is less than 45 meters. 4) The water wells are in close proximity to the electric grid. 5) A single well has sufficient capacity to serve the community. B. SANITATION TECHNOLOGY 4. The demand for latrines has in the past been a problem because of the high cost; it is therefore important that a range of different cost designs for improved household and public sanitation be promoted through the National CWS Program to allow communities and individuals to choose the options most appropriate to their particular needs and resources. Technologies would include the single pit VIP latrine, the sanplat and Mozambique type latrines with and without a vent pipe, and in some cases the twin pit VIP latrine. Multiple pit VIP latrines (privately operated) would be used at health centers, markets and other public places. Standard designs and technical specifications will be prepared for each including drawings, bills of quantities, construction and quality control procedures, and sample bidding documents and contracts.