Madagascar - Water Supply Sector Project

Report No. PIC2998 Project Name Madagascar-Water Supply Sector Project (@) Region Africa Sector Water Supply and Sanitation Project ID MGPA1564 Borrower Republic of Madagascar Sector Infrastructure Implementing Agencies Directorate of Water of the Ministry of Energy and Mines BP.: 527, Antananarivo Fax: 277-90 JIRAMA (Electric Power and Water Utility) 149, rue Rainandriamampandry - BP.: 200 Antananarivo Project Appraisal Date June 1997 Projected Board Date November 1997 Background In spite of an adequate potential water supply, access to safe water is low in Madagascar: 23.3 percent in urban areas and 12 percent in rural ones. The health situation has been seriously affected by the prevalence of waterborne diseases, that account for more than 70 percent of all endemic illnesses. Many governmental agencies are involved in the water sector. The Ministry of Energy and Mines (MEM) is responsible through its Directorate of Water (Direction de l'Eau, DE) for developing water supply policy, assessing water resources and providing general guidance for water supply undertakings. MEM has supervisory authority over the state electric power and water utility (JIRAMA) created in 1976. Among the 120 secondary centers of the country, 65 are the domain of JIRAMA and 55 report to the state through the Collectivites Decentralisees (CDs). The Directorates of Rural Engineering, and Water and Forestry of the Ministry of Agriculture and Rural Development are involved in rural water supply, irrigation and water protection, while the Directorate of Health and Population of the Ministry of Interior, Decentralization and Security oversees the health aspects of the sector. An interministerial National Committee for Water and Sanitation (CNEA), under the Ministry of Budget, Finance and Planning, is in charge of coordinating actions in the sector and has completed a Sector Strategy and Action Plan (SSPA) for water and sanitation in the country. UNICEF and some NGOs such as FIKRIFAMA, Caritas and FJKM are also very active and efficient in the provision of rural water supply. Project Objectives The project will provide safe water to about 575,000 beneficiaries in urban and rural areas. The proposed program aims: (i) to provide a  continuous and reliable water supply in selected urban areas, and to meet the growing demand for water in particular in the peri-urban poorest neighborhoods; (ii) in the rural subsector, to improve local maintenance capacity for rural water supply facilities, maximizing the impact and use of safe water supply. The project is expected to create a genuine ownership of the facilities by the villagers, whereas actions on hygiene and sanitation should ensure long-term health benefits; (iii) to increase economic and management efficiency in the water supply sector through reform of the legal and regulatory framework covering the water sector, and through the restructuring of JIRAMA. The efficiency gains would be shared by consumers through adequate tariff regulation, and according to the results of JIRAMA's restructuring study, greater sustainability would be reached through options for splitting certain support activities, which could be contracted out and later privatized. Project Description and Financing The project consists of three major components: (i) technical assistance to improve personnel management and actions to support the restructuring of JIRAMA, according to commercial principles; (ii) rehabilitation and extension of water supply systems in the 14 largest centers of the country (11 served by JIRAMA and 3 by CDs), not already included in other donor-financed programs, and encompassing provision of infrastructure, equipment, tools and work vehicles for maintenance, and setting up of a water loss reduction program; and (iii) water supply extension and maintenance for rural communities (some 500 drillings in the South of the country and 200 gravity pipe water systems to be carried out by UNICEF and NGOs). Hygiene education and skills in managing and monitoring rural water supply facilities will be incorporated into the promotion, mobilization and training program for communities interested in improving their water supply facilities. The approximate US$37 million project cost will be financed through an IDA credit of US$32 million equivalent. The remaining 13 percent of required financing will be provided through NGOs and UNICEF (participation in kind and in funding of US$1.2 million equivalent) and by the Government of Madagascar and JIRAMA, which will altogether contribute US$3.8 million to local investment costs of improved water supply. Project Implementation The DE will implement the new legal framework and reform of the water sector (water law, water sector policy letter) and has shown a real capacity to address institutional problems in participating actively in the elaboration of the SSPA. The three municipalities, Anosibe An'Ala, Ihosy and Andriamena, will be in charge of the rehabilitation of the CD centers. JIRAMA will implement its financial and organizational restructuring program and supervise the rehabilitation and extension program in the 11 centers which it already serves. The rural component will be carried out by specialized and qualified NGOs (FIKRIFAMA and Caritas) and UNICEF, based on their expertise and geographic distribution. Social Aspects -2-  The proposed project adopts a strong participatory approach. First, in its demand-driven nature: a beneficiary assessment has been carried out as part of the preparation process of the project. The recommendations of this study will feed into the project design. Regarding the rural component, a request to participate in the project will be submitted to UNICEF or NGOs by the villagers, who will prove their real willingness to be involved in such a program, including a financial participation in maintenance. Secondly, because of the participation in maintenance: capacity building through training, communication and education campaigns will be provided to help the population acquire new skills in managing and monitoring rural water supply facilities. And third, in its involvement of NGOs: UNICEF and the NGOs FIKRIFAMA and Caritas have shown their efficiency in implementing rural water supply and will lead the rural component of the project. By focusing on rural communities which do not have access to safe water, the project will benefit the poorest strata of the population. Women would be the primary target of the mobilization process, as the sustainability of cost recovery mechanisms will depend highly on their contribution. Project benefits will also consist of time saved by women and children in fetching water, which would translate into improved productivity and greater opportunities for education and training. Health benefits will be generated by the extended use of safe water sources. Thus, the proposed program focuses on poverty alleviation and women's involvement. This investment operation also makes a contribution to basic infrastructure and public sector management in the water supply sector. Environmental Aspect The project has been classified in category B. An environmental impact evaluation will be carried out during appraisal. Moreover, IDA will assist the Government to implement a water resources management action plan. Hygiene education in the rural areas will bring improvements to the village environment. Groundwater resources to be mobilized will be minimal. Water quality will be tested and monitored. The interactive design and implementation process should also result in better siting of water points, with regard to potential contamination and improved management by the villagers. Contact Point: Public Information Center The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. Processed by the Public Information Center week ending February 7, 1997. - 3 -