Senegal - Sites and Services Project

RETURN TO REPORTS DESK RESTRICTED I.rl.1N Report No. P-1103 ONE WEEK FILE COPY This report is for official use only by the Bank Group and specifically authorized organizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE RETURN TO REPORTS DESK PRESIDENT WITHIN TO THE ONE WEEK EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF SENEGAL FOR A SITE AND SERVICES PROJECT June 12, 1972 RATE OF EXCHANGE US $1.00 = CFAF 255.79 CFAF 1.00 . US $ .0039 INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF SENEGAL FOR A SITE AND SERVICES PROJECT 1. I submit the following report and recommendation on a proposed credit to the Republic of Senegal for the equivalent of US$8.0 million on standard IDA terms to help finance a site and services project. PART I: THE ECONOMY 2. A report on "The Current Economic Position and Prospects of Senegal" (AW-15a) was distributed to the Executive Directors on June 10, 1970. A Bank economic mission visited Senegal in February-March 1972 to assess the country's current economic situation and prospects. The preliminary findings of that mission were summarized in Part I of my report to the Executive Directors in connection with the Second Railway Project (No. P-1084) dated June 1, 1972, and are reproduced in Annex II, which also contains country data on Senegal. PART II: BANK GROUP OPERATIONS 3. Bank Group lending in Senegal was discussed in Part II of my report to the Executive Directors concerning the Second Railway Project (No. P-1084) dated June 1, 1972. This material is contained in Annex I of this Report. PART III: THE URBAN SECTOR 4. Senegal, like most developing countries, is undergoing rapid urban- ization. While the national population of 3.8 million is increasing at 2.2 percent a year, its urban component (now 30 percent of the total) is growing at 4.5 percent a year and in Dakar alone at 6 percent per year. In 1960, Dakar had a population of 350,000. Its present population is about 550,000, and by 1980, it is expected to have 950,000 inhabitants. The next largest cities are the six regional capitals which together have a population of 360,000. The largest of these, Thies, has a population of 100,000. An estimated half of the annual urban population increase is due to migration from rural areas. In Dakar, however, over half the population increase is due to natural growth, around 3.6 percent per year, which is much higher than that of the country as a whole, since better hygienic conditions and medical services have reduced infant mortality to some 85 per 1,000, com- pared with 181 per 1,000 in the rest of the country. -2- 5. Urban population growth has outpaced the construction of housing and related infrastructure. While Dakar's facilities and services are gen- erally good in the business and high standard residential areas, over half of its population live in low standard districts where sewerage, drainage and water facilities are limited or completely lacking. About half of these low standard districts consist of illegal squatter settlements .where dwell- ings cover 70 to 90 percent of the land, and population densities are very high. While Dakar has grown by some 23,000 households since '1960, only 10,000 units' have been added to the housing stock by public and authorized private construction. Rural migrants and the growing number of locally born inhabitants have little alternative to residing in the squatter .settlements, which are proliferating rapidly. Similar -conditions are developing in the regional capitals, though the situation is not yet as bad as in Dakar. 6. Urban unemployment is high. In Dakar in 1970, only '30 percent of the active population (males and females over 14 years of age) 'had permanent jobs. However, because households are large, only 9 percent ,of families are without any steady income. Most incomes are nevertheless low. 'In 1970, some 40 percent earned less than US$50 equivalent per month; :20 percent earned more than US$100 equivalent per month. Thus although incomes in Dakar are much*higher than in the countryside, most of the wealth is con- centrated in the hands of a small segment of the population. 7. While the Government's efforts to accelerate rural development may ' in the long run reduce regional disparities, there is an urgent need to cope with urban growth, which will continue to be rapid for the ,foreseeable fu- ture. Past Policies 8. The Government has endeavored to cope with the problem of urban growth in three ways: a housing program, the relocation of squatter settle- ments and a site and services program. Between 1960 and 1970,, the public housing corporation, Office des Habitations a Loyer Modere '(OHLM), built about 3,800 units at an average cost of US$5,100 per unit '(including the cost of land and infrastructure). Over the same period, SICAP, the semi- public housing corporation, built about the same number of units. These units were relatively costly, and though subsidized, only those in the top 20 percent of urban incomes (that is, above US$100 equivalent per month), could afford the mortgage payments. Moreover, while the burden on the Gov- ernment's budget has been substantial (averaging about US$1.5 million equiv- alent in recent years), the program has only met a fraction of the demand for urban housing. 9. In addition to its public housing program, the Government has been demolishing squatter settlements in Dakar. The cleared land has been used for public housing and some of the squatters given serviced lots. This clearance program has resulted in considerable social and individual costs. Housing in the squatter settlements represents a substantial personal in- vestment and, though inadequate, is in many respects quite serviceable. -3- Destroying such settlements considerably reduces the city's housing stock. About half of the households relocated appear too poor to undertake self- help housing construction on the lots. Thus the wholesale eradication of squatter settlements has a negative effect on the overall housing problem. Some settlements, where population densities are very high, may warrant partial or total clearance on public health grounds, but at present the Government has insufficient detailed information to determine which settle- ments fall into this category. 10. The Government has also undertaken some elementary site and ser- vices schemes. During the Second Plan (1965-69), it developed serviced lots, to be given free to families displaced by urban renewal and squatter reloca- tion. By mid-1969, in the Cap Vert Region, some 5,000 lots had been graded and plotted, major streets laid out and public water fountain systems in- stalled. Some public lavatories and schools are now being built. The level of services provided to date is not much superior to that in squatter settle- ments, but densities are lower and the site planning will enable some improve- ments in situ as resources become available. Based on its initial experience with site and services, together with a growing awareness of the impossibil- ity of meeting more than a small portion of the demand by its public housing program, the Government decided to expand the use of the sites and services approach. For the Third Four-Year Plan (1969-1973), the Government initiated a National Sites and Services Program to be implemented in Dakar and the re- gional capitals of Senegal. However, while some 19,000 serviced lots were to be developed, only about 1,700 were completed by the end of 1971, prin- cipally owing to the lack,of finance and skilled manpower for project prepa- ration and implementation. Present Policies 11. The foregoing problems were discussed with the Government during Bank missions relating to the proposed project. The Government has now decided on a major revision of its housing policy. For the purposes of the Fourth Plan (1973-1977), now in the course of preparation, the Government has set three main objectives for the sector, namely, to increase the effi- ciency of investment, to reduce the burden on public finances and to dis- tribute the benefits more equitably among the different income classes. 12. A major improvement will be the increased proportion of resources allocated to the National Site and Services Program, of which the proposed project forms the first phase. The program will develop serviced sites at a minimum cost to the Government and individual families. Government in- vestment per lot under the proposed project in Dakar would average US$460 equivalent (excluding investment in health, and education and in linking the project areas to existing infrastructure. The financial cost to a family of building a house by self-help construction methods would be be- tween US$500 and US$1000 equivalent. These figures compare with the Gov- ernment investment in OHLM's housing units which has averaged US$5,100 equivalent per unit. The program has important associated objectives of mobilizing personal savings, using self-help techniques, and increasing -4- opportunities for employment and social development. It will be.available to families who wish to participate, rather than, as before, solely to house- holds which had been compulsorily relocated under the squatter relocation program. 13. The Government also proposes to increase the efficiency of invest- ment in its housing program, by adopting standards conducive to lower costs for the regular housing units constructed by OHLM (called "economic" units) which presently average about US$5,100 equivalent per unit, by introducing a much cheaper form of housing unit to be constructed by OHLM (called "super- economic" units) where the cost per unit should average less than US$3,000 equivalent (including the cost of infrastructure). 14. The Government has also decided to reduce the financial burden of its housing program. Subsidies to SICAP, which in recent years have averaged about US$600,000 equivalent, will be eliminated from the start of the Fourth Plan. The Government also plans to eliminate subsidies on OHLM's economic housing units over a period of ten years starting from the implementation of the Fourth Plan in July 1973. The Government feels unable to introduce a more rapid reduction until the success of the site and services project is demonstrated. Accordingly, the reduction should be much faster in the sec- ond five years than the first. Nevertheless, the Government has indicated that by the end of the first five years it will have eliminated 20 to 25 percent of the subsidies and have fixed a timetable for the elimination of the remaining subsidies during the subsequent five years. The exact amount of the present subsidy is not known, though it is estimated that present rents cover no more than half the real cost of the housing (including land, infrastructure and interest charges). The number of economic units to be constructed by OHLM will be reduced from a planned 4,500 in the Third Plan to 2,400 units in the Fourth Plan. The Government plans to have OHLM con- struct 2,200 supereconomic units for the Fourth Plan, limiting the subsidy on this class,of unit to the cost of land and infrastructure (about 30 per- cent of total cost) and making these units available only to lower income families than those which are presently benefitting from the Government's subsidized housing program. The combined effect of .these decisions will be a substantial freeing of Government resources for other purposes, both in the short run from the immediate elimination of all subsidies to SICAP, and in the longer term as repayments on OH1's units replenish its resources. 15. The Government's proposals for the Fourth Plan also represent a decisive shift towards benefitting low income groups. In the past, only those with salaries above US$100 equivalent per month were able to obtain a housing unit from OHLM or SICAP. For those earning less than this - about 80 percent of the urban population --there was little alternative to,the crowded low standard districts, with the remote prospect of a low standard site under the Government's site and services schemes. Under the Government's present proposals for the Fourth Plan, residents of Dakar earning between US$50 and US$120 equivalent per month will have the alternatives of a serv- iced site under the proposed project or, for a few of them, a supereconomic unit from OHLM. -5- 16. Those earning less than US$50 equivalent a month -- the bottom 40 percent of Dakar's income groups -- may also benefit from the proposed proj- ect since they will be able to rent quarters from resident lot purchasers. The Government has also taken two decisions that will benefit this low in- come group in important ways. First, it has decided to suspend further eradication of squatter settlements, after completion of its on-going clear- ance program involving some 4,000 households, until completion of a study, to be financed by the proposed project, which will establish criteria for identifying those settlements which should be upgraded by community improve- ment programs. Secondly, it has decided to undertake, as part of the pro- posed project, a pilot project for improving a low standard district in situ, by upgrading public facilities and, where necessary, part of the housing stock. Such a pilot project should provide valuable experience in techniques for directly addressing the accommodation problem of families in the lowest range of urban incomes. 17. While these proposals constitute a significant advance on previous policies, more comprehensive planning needs to be undertaken. One of the technical assistants, proposed to be financed by the UNDP under the project, will assist the Government in the task of further developing its national housing policy. On a broader level, the Government is endeavouring to plan for balanced urban and rural development on a national scale, at the same time as dealing with the problems of particular cities. The Regional Devel- opment Directorate under the Ministry of Planning is charged with drawing up plans and programs for the regions and cities of Senegal as a basis for in- vestment selection, coordination and evaluation. PART IV: THE PROJECT- 18. A report entitled "Appraisal of a Site and Services Project Senegal" (PS-11a) is being circulated separately to the Executive Direc- tors. A Credit and Project Summary is provided at Annex III. Background 19. In September 1970, the Government asked the Association to assist Senegal in implementing its National Site and Services Program. Considera- tion of this request led to the conclusion that such involvement would en- able the Association to enter a new area of lending where it could make a considerable impact for comparatively limited investment. The project, whose design is applicable to both the big city and the small town, should have a demonstration effect on the other urban centers in Senegal and in other countries. Through its involvement, the Association would be able to assist the Government to develop a more systematic and economic approach to the urban sector. Also, by aiding in the restructuring of the Government's .housing agency and supplying technical assistance for the implementation of the project and training, the Association would be helping the Government to establish an institution to carry on future programs. - 6 - 20. Bank missions in March, July and September 1971 assisted the Gov- ernment in preparing the project and joined in reviewing policies in the sec- tor. This work was assisted by information available from a UNDP-financed study for the Dakar Water and Sewerage Master Plan and a Bank-sponsored study being 6ndertaken on experience with site and services projects in some 32 mem- ber countries. Appraisal of the project was undertaken in November/December 1971, and negotiations were held in May/June 1972. The Government's delega- tion was led by the Secretary of State for Planning, Mr. Ousmane Seck. The Project 21. The proposed project consists of the preparation of sites on which purchasers would build their own dwellings, the provision-of social services for the purchasers and technical assistance for housing construction, com- munity development and the establishment of cooperative institutions to help carry out the project and promote community welfare. 22. The project would comprise: a. acquisition and preparation of 400 hectares in Dakar and 60 hectares in Thies. Provision would be made for 14,000 lots in Dakar and 1,600 lots in Thies for the construction of dwellings. On the basis of estimated population den- sity of 10 people per lot, the project would accommodate 140,000 people in Dakar and 16,000 in Thies (compared with the present total populations in these cities of 550,000 and 100,000 respectively). Land would be reserved for other activities, including commercial, small-scale indus- trial, recreational, cultural, and educational facilities; b. extensions to the primary road, water and power networks to and through the project area and the provision of roads, power, water and sanitation facilities within the new set- tlements; c. the construction of, and equipment for, 14 primary schools, 4 secondary schools and 5 health centers; d. provision of technical assistance for detailed engineering, management and training related to project implementation - and the formulation of national housing policy; and e. a study of the criteria for determining whether to relocate squatter.settlements or improve them in situ, together with a pilot project for improving 10 hectares of a squatter set- tlement,in situ in the center of Dakar. The total cost of the project is estimated to be US$12.9 million equivalent, including duties and taxes of US$2.8 million equivalent. The estimated for- eign exchange component is US$5.7 million. The Government of Senegal will contribute US$4.8 million. The proposed IDA credit would be disbursed -.7- against 67% of the expenditures under civil works contracts for site prepa- ration and infrastructure and 100% of costs incurred for technical assistants and consultants for engineering design, project management and training. The Government will finance the full cost of primary infrastructure and the balance of local costs of the on-site development. The UNDP would finance the cost of the advisers for housing policy and building materials. 23. Total annual operating costs are estimated to be US$1.6 million equivalent following completion of construction and settlement of all lot purchasers. Of the total, the cost of running the schools and health centers accounts for US$900,000 and US$160,000 respectively. These opera- ting costs will represent an annual increase over the project period of 1 percent and 0.3 percent of the budgets of the Ministries of Education and Health, and represent part of overall budgetary increases for which provi- sion has already been made. Project Standards 24. Water would be supplied to lot occupants by public water fountains (one per hundred households) and, in the case of the Dakar project, by indi- vidual lot water connection for those households (up to 15 percent of the total) who opt to pay for a private water connection and a septic tank. The density of public fountains would be comparable to that of medium standard districts in Dakar. The cost of water consumption, both public and private, would be charged to site owners. Households relying on public fountains for their water supply will build pit privies on their lot with the help of sani- tation personnel from the Ministry of Health. Households having a private water connection will be required to have a septic tank on their lot to dis- pose of the larger volume of water. Public lavatories with septic tanks would be constructed in public spaces and market areas. 25. Road construction would be limited to arteries permitting vehicular access for essential services, such as fire protection and garbage collection. Public lighting would be installed along vehicular streets and in public squares. Electricity connections would be provided to individual lots at the request and expense of occupants. 26. Twelve primary schools will be constructed in Dakar and two in Thies. Together, they will be sufficient to enroll 14,500 pupils or 50 per- cent of the estimated number of school age children living in the project areas. This level of enrollment is equal to the present average for Dakar as a whole. Land will be reserved for the construction of further schools so that eventually 80 percent of school age children -- the long-term goal of the education system -- will be able to attend primary schools in the project area. Four junior secondary schools will be constructed for the project in Dakar, providing about 1,700 places. 27. Four health centers would be constructed in Dakar and one in Thies. In .prder not to aggravate the regional disparity in the supply of medical - 8 - personnel (the Dakar region now having 73 percent of Senegal's medical doc- tors)', the Government has given assurances that the personnel for the medical centers will be obtained by relocation within the Dakar area or under tech- nical assistance. Project Management 28. Until now, the Government's site and service projects have been carried out by the Directorate of Urbanism within the Ministry of Public Works. The Government has decided, in agreement with the Association, that OHLM should be charged with responsibility for the national site and serv- ices program. Appropriate changes would be made in OHLM's governing decree. 29. The acting manager of OHLM, an experienced Senegalese, will short- ly be leaving. The Government has given assurances'that the qualifications and experience of his successor as well as subsequent appointments will be acceptable to the Association. The appointment of the new manager will be a condition of effectiveness. 30. In order that OHLM may carry out the project efficiently, the Government has decided to reorganize it into two directorates: Direction Construction to carry out the housing program and Direction Parcelles As- sainies to carry out the National Site and Services Program. Within the Direction Parcelles Assainies, a Section d'Assistance aux Communautes would be established-with responsibility for the.formulation, administration and implementation of the program of community development activities for-pur- chasers of lots. A Monitoring Committee would also be created to make as- sessments of the:project's progress from the physical, financial and socio- logical point of view and to make recommendations for any necessary*changes in OHLM's operations and the design of the project. 31. OHLM has ten expatriate technical assistants, but they are largely on short-term appointments and to help administer the project, further assis- tance will be needed. UNDP would finance two experts in housing policy and building techniques respectively. The proposed IDA credit would help finande the project manager, a civil engineer, an expert in savings and credit mechanism, an expert in community development, and the comptroller. The ap- pointment of the first three of these would be a condition of effectiveness. 32. The Directorate of Urbanism and Housing would be responsible for issuing building permits to settlers and for the enforcement of building codes. A draft code was agreed with'the Government during negotiations. The municipalities would be responsible for the collection of garbage, maintenance of water fountains and lavatories, public lighting and cleaning of public areas. Consideration would be given to turning over some of the maintenance responsibilities to the local communities. Community Development Program 33. Success of the project to a great extent will rely upon the posi- tive response and involvement of the families who will occupy the serviced -9- lots. This would be fostered through community organization. In organizing the families assigned to the lots, the existing social structure and formal and informal associations would be utilized. At present in urban areas, the major local administrative unit is the quartier headed by a chef de quartier who is a local leader or an appointee of the regional governor, assisted by an advisory council of local personalities. Existing quartiers vary greatly in size. In the initial phase of the project in Dakar, quartiers would be of the order of 100 to 150 households. The site occupants would be organized to undertake both core activities essential to all communities and ancillary activities that would vary in type and number among communities. 34. Core activities would, with the exception of housing construction, begin at the time of the selection of families to occupy the lots. They in- clude the organization of quartier units for decision-making and management, the establishment of cooperative institutions (as discussed in the following paragraph), organization of manpower for employment in the project construc- tion, and housing construction. Ancillary activities would typically be initiated after core activities and after site occupancy. These activities are voluntary and are to be decided upon by the individual quartiers' mem- bership. They will vary in type and number among community units, and may include such activities as construction of community buildings, namely, as- sembly halls, mosques, extensions to schools and the building of garbage bins, training programs in domestic hygiene and refuse disposal, child care, sewing, carpentry and other vocational skills. Further development of co- operative organizations like creches, production and consumer cooperatives are also envisaged. 35. Cooperative institutions, called Associations Cooperatives d'Habitats would be created to help execute the Project by collecting monthly payments to be made by members, acting as a saving mechanism, undertaking other activi- ties to be determined, from time to time, such as extending credit for build- ing materials. A model Statuts for these associations was agreed during nego- tiations; as experience is gained from the response of lot purchasers, OHLM will develop variations on the model to suit the needs of particular communi- ties. Financing Plan 36. All project funds including IDA funds and the Government's contribu- tion would be channeled through OHLM during project execution. The cost of detailed engineering, site preparation and infrastructure (except power) and management prior to lot sale, totalling some US$5.5 million equivalent, would be passed on to the settlers by OHLM. The repayments would be used to create an investment fund for continuation of the national site and services program after completion of the proposed project. The Government would bear the cost of schools, health centers and electrification. The power facilities would be held by the Government pending completion of negotiations with the private power company currently responsible for power operations in Senegal. Assur- ances were obtained that any subsequent disposition of the project's power facilities by the Government would be on terms and conditions acceptable to the Association. - 10 - 37. Lot attributees would have the option to pay for their lot in a lump sum or, following a down payment of 8 percent, in monthly installments. In the second case, families settling in'Dakar would be paying CFAF 920 (US$3.60 equivalent) per month for 15 years for the common lots (which in- cludes interest at 7 percent and the cost of management and administration) and CFAF 2,400 (US$9.40 equivalent) per month for the lots with private water connection and septic tanks. In Thies, the monthly payment would be CFAF 530 (US$2.10 equivalent). Families relying on public water both in Dakar and Thies would also pay a monthly sum of CFAF 280 (US$1.10 equivalent) toward the estimated cost"of water consumption at the public fountains. Households with private water connection would be metered separately. 38. Separate accounts would be kept for the Direction Construction and Direction Parcelles Assainies. OHLM's present auditor is the Commission des Comptes de la Cour Supreme. This body is overloaded with work and OHLM's accounts have not been audited promptly. The appointment of a private firm of auditors is a condition of effectiveness of the credit. Execution 39. Project execution would take place over a five-year period. In Dakar, there would be four construction phases, each averaging 100 hectares with 3,500 lots each. The first phase would begin mid-1973. Infrastructure works for this phase are expected to be completed by late 1973 with occupa- tion of the serviced lots starting immediately and extending over a one-year period to late 1974. In Thies, there would be two phases of 30 hectares each. Infrastructure construction for the first phase would take place in 1974 and that for the second phase in 1976. 40. The construction of infrastructure would be designed for labor in- tensive building methods, except for earthwork and grading for the roads and site preparation for which contractors in Senegal usually use heavy equipment. To encourage participation of local contractors, separate civil works con- tracts would be drawn up for the various functional components: (a) site preparation and streets, (b) water distribution, (c) electrification, and (d) septic tanks and public lavatories, (e) sch'ools and (f) health facili- ties. Contracts for work in Dakar and Thies would be separate. Contractors would be given the option to bid for any or all the components, and both for Dakar and Thies. Contractors would be awarded on the basis of international competitive bidding following prequalification. It is doubtful that con- tractors from outside Senegal and neighboring countries would be interested in bidding, because of the small size of the individual components of the project and the fact that they are spread over five years. Bid invitations will be advertised in Senegalese and regional publications and notified to embassies in Dakar. Economic Justification 41. The main purpose of the project is to initiate a realistic program for stimulating building of housing and for providing related facilities on - 11 - a scale large enough to alleviate the shortage of housing for those within the middle range of Senegalese urban incomes. The project would also assist the lowest income groups as indicated above in paragraph 16. The project provides a lower cost approach to housing than public housing programs. In Dakar, over a five-year period, the project would accommodate some 14,000 families at a cost to the Government of about US$6.4 million equivalent (ex- cluding the cost of social services). Over an equal time period (1967-71), a Government investment of US$10.1 million equivalent both in public and semi- public housing programs has resulted in the production of some 4,000 new hous- ing units, which only those within the highest range of urban incomes can afford. 42. It is difficult to quantify the economic benefits that would result from the project investment as such and therefore to calculate a conventional economic rate of return since the site and service investment is only one com- ponent in the final product, which is housing. However, housing is an eco- nomic service for which people are prepared to pay, and the rental value of housing that the project would assist in generating gives some measure of the economic benefits. Rental values for housing generated by the project would give a likely rate of return of 18 percent on a total investment of US$24.5 million, including land value and self-help labor. 43. The project would have other benefits, including the creation of substantial employment.and the improvement of the physical environment and the quality of life for a considerable number of people. The project would also have an income distribution effect by directing government investment toward lower income groups than those currently benefitting from the public housing program. 44. The project would also create the financial basis for a national sites and services program. Besides constructing their own houses, the settlers would repay the Government for its investment in land preparation and infrastructure (excluding power and primary infrastructure networks). Repayments would constitute an investment fund which, over an 18-year period, should obtain about US$7 million equivalent for reinvestment in the national sites and services program. PART V: LEGAL INSTRUMENTS AND AUTHORITY 45. A draft Development Credit Agreement between the Association and the Republic of Senegal, a draft Project Agreement between the Association and OTLM, the Recommendation of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement of the Association and the texts of draft resolutions approving the proposed credit are being distributed to the Executive Directors separately. - 12 - 46. The agreements would give the Association the right to suspend or premature the credit if legislation defining the status of OHLM, the Programme National de Parcelles Assainies and the Associations Cooperatives d'Habitat were amended, suspended, abrogated or terminated in such a way as to materially and adversely affect the carrying out of the Project. 47. I am satisfied that the proposed development credit would comply with the Articles of Agreement of the Association. PART VI: RECOMMENDATION 48. I recommend that the Executive Directors approve the proposed credit. Robert S. McNamara President by J. Burke Knapp Attachment Washington D.C. June 12, 1972 ANNEX I THE STATUS OF BANK GROUP OPERATIONS IN SENEGAL A. Statement of Bank Loans and IDA Credits (as of April 30, 1972)* Loan or Amount (US$ million) Credit Number Year Borrower Purpose Bank IDA Undisbursed 96-SE 1966 Senegal Railway 9.0 1.2 493-SE 1967 Port of Dakar Port 4.0 1.2 140-SE** 1969 Senegal Agricultural 6.0 1.7 Credit 198-SE 1970 Senegal Highways 2.1 1.8 252-SE 1971 Senegal Rice 3.7 3.7 Development 253-SE 1971 Senegal Technical and Agri- 2.0 2.0 cultural Education 254-SE 1971 Senegal Settlement 1.3 1.3 Scheme Total, less cancellation 4.0 24.1 12.9 of which has been repaid 0.5 - Total now outstanding 3.5 24.1 Amount sold 0.4 of which has been repaid 0.4 Total now held by Bank and IDA 3.5 24.1 Total undisbursed 1.2 11.7 12.9 B. Statement of IFC Investments (as of April 30, 1972) Amount (US$ million) Type of Equity Year Obligor business Loan Investment Total 1966 Societe Fertilizer 1.7 0.8 2.5 Industrielle Plant d'Engrais au Senegal Total commitments now held by IFC 2.4 0.8 3.2 Total undisbursed - - * The Second Railway Project, comprising a loan of US$6.4 million and a credit of US$3.2 million, will be presented to the Executive Directors on June'15, 1972. ** A loan of US$3.5 million for agricultural credit (584-SE) made in 1969 was cancelled on March 25, 1971. ANNEX I Page 2 C. Projects in Execution First Agricultural Credit (FY1969) - Credit 140-SE 1. This project is discussed in para. 21 of the President's Report. First Railway Credit (FY1966) - Credit 96-SE 2. The project involved the relaying of track, the doubling of the:. Dakar-Thies line, the purchase of locomotives, rolling stock, spare parts and equipment, and the provision of consulting services. All project items have now been delivered, with the exception of a few spare parts for motive power, and material for the renewal of 39 additional kilometers of track, financed with savings under the credit, for which contracts have been placed. The project is due to be completed in June 1972, about three years behind the original schedule. 3. The financial performance of the Regie during the first project fell considerably short of expectations, principally because traffic did not increase as expected at the time of appraisal. Thus freight carried by the Regie increased from 1.67 million tons in 1965/66 to 1.78 million tons in 1970/71, rather than to 2.76 million tons as projected. As a result, gross annual revenues stayed more or less constant at about CFAF 2.5 mil- lion instead of increasing to CFAF.3.7 million. At the same time, the Regie's effort to cut personnel costs was largely offset by an increase in its material costs. As a result, the Regie- is still operating at a loss as compared to a target rate of return for 1969/70 of 4 percent on investment as agreed in 1966. 4. The shortfalls in the Regie's performance under Credit No. 96-SE must be viewed in the light of the Senegalese and Malian economies' failure to move ahead as rapidly as expected (para. 3, Annex II). Thus the recent economic recovery in both countries will make it easier to re- habilitate the railways, which remains an urgent task, given the Regie's role as the most important freight carrier in Senegal and as a vital link for the land-locked economy of Mali. D. Bank Group Operations 1. Bank Group lending for projects in Senegal is planned to quadruple from US$13 million in 1964-68 to US$55 million in 1969-73. As a result, the Bank Group has now become one of the major lenders to Senegal providing roughly one fifth of official external capital requirements. 2. The credit would be the ninth Bank Group, project in Senegal, fol- lowing the Second Railway Project to be presented to the Executive Di- rectors on June 15, 1972. Total lending to date has been US$28.1 million (net of cancellations) in the form,of five credits, one loan and one blend operation. The Second Railway Project would comprise a loan of US$6.4 mil- lion equivalent and a credit of US$3.2 million equivalent. Disbursements ANNEX I 103 have proceeded satisfactorily except in the case of the first agricultural credit (para 4 below) and the first railway credit (Annex I, Part C). It is expected that the agricultural credit will be fully disbursed by Decem- ber 1972, and the first railway project completed in June 1972. 3. In line with the Government's development objectives, Bank Group assistance to Senegal will continue to help the Government in (a) broadening and strengthening the economic base; and (b) improving the utilization of human resources and strengthening public institutions. 4. Regarding the first objective, past lending in agriculture has been aimed mainly at improving the productivity and efficiency of groundnut produc- tion and marketing as well as extending production to.new crops and new re- gions. The First Agricultural Credit (FY1969) suffered at first from the sharp fall in groundnut production. As a result, disbursements were slow. However, the Bank's continuous presence and supervision helped the Govern- ment to take strong action in 1970, which was one of the factors leading to the recent recovery of production. Since the credit is expected to be fully disbursed by the end of 1972, and in order to complete the institutional im- provements which it began, a follow-up operation is being prepared. Two credits approved during FY1971 (Casamance rice, Terres Neuves) and another scheduled for FY1973 (Delta Rice), will help to diversify agricultural pro- duction, as well as to assist rural development in the broader sense. Thus in the Casamance Project, the Government will provide education and health facilities, and in the Terres Neuves project new communities are being estab- lished in the scarcely populated eastern region of the country. Preparation of further projects for vegetables and livestock development will be initiated soon. 5. While agricultural diversification is thus progressing, it is not likely to provide the full answer to Senegal's development problems over the years to come. Diversification of manufacturing production is a possibility. But for the reasons stated in para 2, Annex II, it has not yet made much head- way. The Bank Group's only involvement has been IFC participation in a fertil- izer plant near Dakar (Societe Industrielle d'Engrais au Senegal). The Govern- ment has recently submitted to the Bank a proposal for a supertanker repair pro- ject (total cost about US$90 million) which may provide an opportunity to take advantage of Dakar's location and existing industrial infrastructure. The proposal is being studied. Probably more important in the near term than manufacturing are possibilities 'in tourism. Major emphasis will be given to tourism in the Government's Fourth Plan (1973-1977). So far, the only Bank involvement in this sector is the recently appraised Dakar airport project (FY1973), the justification of which will depend in part on increased tourism. However, further projects in this sector suitable for Bank Group financing can be expected as the project content of the Fourth Plan is firmed up. ANNEX I Page 4 6. As to the second objective, the Bank Group is assisting the Govern- ment in several ways. The proposed site and services project will provide the basis for housing a quarter of Dakar's population and one sixth of that of Thies. It will generate substantial employment and improve.the levels of health and education services. Also, the restructuring of the Government's housing agency and supplying technical assistance for implementing the proj- act, the institutional foundation will establish for carrying on future pro- grams in the housing sector. A number of our other operations are also aimed at improving the financial, technical and managerial- viability of public en- tities. The first railway credit of 1966 falls into this category. By in- creasing and modernizing the capacity of the Regie des Chemins de Fer du Senegal (Regie), the project was designed to put the Regie on a sound tech- nical and financial footing. This objective was not fully met. However, the transformation of the railway into a viable institution remains an urgent task, and the second railway project is expected to provide th.e basis for this rehabilitation. A furtherexample is the first.-port project approved in 1967 which has been instrumental in transforming the Dakar Port Authority into a technically and financially successful operation and an -im- portant contributor to public savings. Similarly, the recently appraised telecommunications project (FY1973) will substantially increase.capacity and thus provide the basis for a more efficient and profitable operation.of the telecommunication authority. The improved utilization of human resources.is the objective of our involvement in the field of education. During FY1971, a credit was approved for technical and agricultural education. which will soon be followed by a larger general education project. 7. The proposed tanker repair project is a good example of the ad- visory role the Bank can assume in Senegal. The Government asked the Bank to take the lead among the potential lenders in assessing the economic and financial viability of this project based on preliminary studies and to suggest the further studies needed to complete the preparation of the proj.- ect. Given the complexity and the novelty of the project, the Bank has hired consultants to assist in this work. ANNEX II SENEGAL SITE AND SERVICES PROJECT THE ECONOMY Past Developments 1. During the 1960's, the first decade after independence, real GDP growth (2.5 percent per annum) hardly exceeded population growth; per capita income stagnated at around US$200. Two factors were responsible for this situation. 2. First, with independence Senegal lost its privileged position as the center of French West Africa. This resulted in the loss of important ex- port markets for manufactured goods, as domestic industries developed in other West African countries. At the same time, the departure of most French civil and military personnel reduced demand for services and locally produced goods. Stagnation in agriculture further accentuated the already difficult internal market situation for manufactured products. Senegal has not yet been able to fully offset the loss of markets in Africa by developing new export markets. A number of obstacles made the transition from African- oriented to world-oriented exports difficult: (i) high tariff barriers and resulting inefficiencies; (ii) limited size of the local market which does not permit economies of scale; and (iii) monopolistic organization of produc- tion resulting in high profit margins and costs. 3. Secondly, the difficult process of adjusting to the new political, economic and administrative dimensions was seriously jeopardized in the sec- ond half of the 1960's when groundnut production fell by 50 percent due to a combination of bad weather and falling export prices. This had a strong adverse impact on an economy in which groundnuts account for almost half of agricultural output and 15 percent of GDP. These adverse developments caused the rural population to pay more attention to food crops than cash crops in recent years. Food crop production increased by 2 percent per annum between 1962-64 and 1969-71, in line with population growth. However food crop consumption increased at 4 percent per annum during this period, causing an increase in imports of cereals and starches of more than 3 per- cent a year. 4. In these circumstances, Government finances deteriorated through- out most of the 1960's. Public savings slowly but continuously declined to virtually zero by 1968/69. Revenues stagnated, in spite of a substantial tax effort, because of the decline in imports, the most important tax source. Keeping the tax ratio at roughly 20 percent of GDP was quite an achievement. But current expenditures grew, albeit moderately, at some 3 to 4 percent annually, thus eroding the current account surplus. This situation was ag- gravated further by a continuous increase in the public enterprises' deficits. ANNEX II Page 2 5. After 1968/69 better tax collection and substantial surpluses of the groundnut stabilization fund following rising world market prices led to a recovery of public savings in 1970/71, when they represented some 7 percent of current revenues or 1.3 percent of GNP. Yet locally financed public investment continued, as it had throughout the 1960's, to exceed savings by a wide margin, resulting in a complete depletion of Treasury deposits by mid-1971. Rising deficits of public enterprises have in re- cent years contributed heavily to the Treasury's liquidity squeeze. This is particularly constraining within the framework of the West African Mon- etary Union where the possibilities of credit expansion are very limited. 6. Senegal's current account balance has deteriorated rapidly since 1966, due mainly to a fall in groundnut export earnings after the drought years. From US$2.0 million in 1966, the current account deficit reached more than US$50 million or 6.5 percent of GDP in 1970, and is likely to largely exceed this amount in 1971. Exports fluctuated between 18 and 22 percent of GDP during 1965-70. Groundnut exports represented about three quarters of total exports during 1965-68, but only 50 percent in 1969-70 and less than 40 percent in 1971, due both to a decrease in groundnut production and a rapid increase in exports of other items, (fish, textiles, phosphates and arabic gum). Even if groundnut exports had remained at their all-time high of 1966, their proportion would have nevertheless fallen from 77 to 60 percent of the value of total exports between 1966 and 1971, an encouraging start in diversifying exports. Exports other than groundnuts grew at an average annual rate of 18.5 percent during this period. Imports have been growing at about 5 percent per annum during 1966-71, or at twice the rate of increase in GDP. They represented about 27 percent of GDP in 1970, versus 23 percent in 1965. The proportion of food and finished con- sumer goods in total imports decreased from 66 percent in 1965 to 54 per- cent in 1971. This partly reflects the fact,that Senegal is being successful. in a number of import-substitution projects such as rice, vegetables, and fruit production. Although cotton growing started only in 1963, by 1968. Senegal was able to satisfy the entire needs of .the local textile industry and to export a substantial surplus by 1971. 7. A heavy inflow of foreign aid and, to a lesser extent a depletion of net foreign exchange reserves which were less than the equivalent of two months of imports at the end of 1971, financed these current account deficits. Aid was mostly on concessionary terms. About two-thirds of public investment has been financed by foreign aid which averaged US$34 million per year be- tween 1967 and 1971.or slightly more than 4 percent of GNP. These invest- ments were mainly financed by the European Economic Community (29 percent) and France (25 percent); USAID, the World Bank Group and Germany contributed, respectively, 14, 10 and 8 percent of the total. During 1967-71, the Euro- pean Communities were mainly lending for rural development (60 percent) and infrastructure (34 percent). During the same period,.France (FAC and CCCE) helped finance projects.in the agricultural field (41 percent),,education ANNEX II Page 3 and urban development (16 percent), infrastructure (15 percent), and tourism (13 percent). Of importance was technical assistance, mainly in education, which amounted to US$28 million annually. Seventy-five percent of this was financed by the French Government. 8. Finally a constraint to more rapid economic growth has been the limited capacity of the Government technical services, particularly con- cerning project preparation and the setting of economic priorities. How- ever, considerable progress has recently been made in this respect, which is reflected in the large pipeline of projects now becoming ready for Bank Group and other external financing (paras 4-7, Annex I). Furthermore, a team of four planning experts including one regional planner from the UN is expected to join the Secretariat for Planning in the,near future to help draw up the Fourth Plan (1973/74-1976/77). Prospects 9. Prospects for the coming years are brighter. Following a 30 per- cent producer price increase, other supporting Government measures (e.g. a planting bonus to farmers, cancellation of old debt) as well as more favor- able weather, groundnut production increased by about 60 percent in 1971/72. This has been instrumental in triggering economic recovery and creating for the first time in several years an atmosphere of optimism in Senegal. At the same time, several projects, mainly for the production of rice, cotton, and more recently, vegetables will allow Senegal in the longer term to broaden its agricultural base. It is estimated that rice production could grow at more than 15 percent a year in the next six years while cotton production might well double between 1971/72 and 1974/75. The livestock sector has already started to recover from the 1968 drought; prospects for meat exports through the introduction of feeding ranches are encouraging. 10. In,spite of the obstacles described in paragraph 2, industrial pro- duction increased by 6 percent in 1970 and by 11 percent in 1971 (excluding groundnut processing) mainly in textile, shoes, and building material. This trend is expected to continue, helped by higher purchasing power following the recovery of groundnuts and recent encouraging signs in the export markets. Moreover, two sectors, fishing and tourism, have helped offset the 1968-1970 recession in agriculture and are expected to continue to expand rapidly in the coming years. Fish production has increased by 30 percent in 1971, while expansion of tourism was hampered by the lack of adequate hotels. This should change during the coming season, when hotel capacity will in- crease by about 75 percent. 11. However, diversification is bound to be a lengthy process. For many years to come Senegal's economic performance will continue to be -closely associated with groundnuts and the vagaries of weather and world market prices. The outlook for groundnuts seems bright. A bumper crop is expect- ed for 1972/73 and possibly also for 1973/74, which may reach the 1965 ANNEX II Page 4 record production of 1.1 million tons. Medium and longer term prospects, however, depend largely on the future trend in world market prices. Since the beginning of 1971, groundnut prices have fallen by some 16 percent, but are still some 50 percent above the 1967 level. Even if world market prices further decline, it should be noted that present Government revenues from groundnut exports are sufficiently high to absorb a further decline in world market prices of 15 percent without necessitating a reduction in producer prices. Thus, except in the case of a very substantial decline in groundnut prices, GDP growth over the next five years should be much higher than over the last'decade, possibly reaching as much as 4-5 percent per year. 12. Such acceleration of economic growth is essential to help improve public finances. Since tax rates are already relatively high, the urgently needed revenue increases will have to come from a combination of better col- lection and economic growth. In addition, the Government is determined to keep the necessary expansion of current expenditures to a minimum. Probably the most promising way to generate more resources for investment within the public sector is to improve the financial performance of public enterprises, thus eliminating their substantial drain on the Treasury in recent years. The combination of these measures ought to result in some increases in public savings. However, no spectacular results can be expected in the short-run and Senegal will remain heavily dependent on foreign aid. 13. The forecast acceleration in economic growth for the coming years will be reflected in a continued increase in imports. Preliminary estimates indicate that although exports will increase substantially with the recovery of groundnut production and continued growth in fish, textile, phosphate, arabic gum and vegetable exports, the deficit on current account may remain at an annual average of US$50 million for the period 1971-75, or about 5 per- cent of GNP as compared to US$33 million in 1966-70. This deficit could be significantly higher should groundnut prices continue to fall. France and the European Communities are expected to continue to finance about one half of the resource gap; the share of the Bank Group would increase from 9 per- cent in 1966-70 to about 20 percent in 1971-75. Other contributors will in- clude USAID, Germany, Canada and the USSR. 14. In view of the difficult financial situation of the country, it is important that the proportion of grant aid not fall below its present level, i.e. about 50 percent, of total foreign aid (excluding technical as- sistance) and that foreign aid make an appreciable contribution to local cost financing. Although the present and foreseeable low external debt service ratio (4-5 percent of exports) indicates that there is some limited margin to borrow on Bank terms, Senegal should obtain the bulk of its borrowing on IDA terms. AHiEE II COUNTRY DATA COUNTRY, SENEGAL AREA. 16,0o0 k.2 POPULATIONt 3.87emillonl July 1970 DENSITY, 20 Pe~k RoWes00 2rowth 2.2 % (from 1960 t0170 = 34 pr 2 of arable land POPULATION CHARACTERISTICS. HEALTH, Crude Firth Rate (per 1,0) 1u 0970) lation per physician 15,30(1968) Crude Death Rate (per 1,000) 22 0970) Population per hospital bed 735(1968) Infant Mortality (per 1,000 live birth.) 156 0968 INCOME DISTRIBUTION- DISTRIBUTION OF LAND OWNERSHIP: % of national income, lowest quintile n. a. % of land owned by top 10% owners n. n. highest quintile n. a. % of land owned by smallest 10% owners n. a. ACCESS TO POTrABLE WATER (% of population) ACCESS TO ELECTRICITY: (% of population) Urban n. a. Urban n. a. Rural n. a. Rural n. a. NUTRITION GNP PER CAPITA. $201 (197( EDUCATIONt CaTarie intakes 2300 per day per capita (1970) Ad t teracy rate (9) 5-10 (1970) Per capita protein Intake eatimated to be high as compared Primary achool enrolment (%) 26 (1967) to other Africencountrief, GROSS NATIONAL PRODUCT 1970 oan Ate fri coUAL RATE OF 0 . constant rise9 jnoise in S $ mIn.) 19W1-65 1957 90 ONP at market prices 779 1A0 2.61 1.8 0.8 Gro06 Investment 1oE 13.6 7.6 / 5.1 n. a. Grosa National Savinge 55 7.1 _3. -0.4 n._a. Current Account Deficit 51 6.5 Iports of Goods, NFS 191 24.5 n. a. 2.2 15.0 Imports of Goods, NFS 229 28.9 n. a. 5.6 4.6 n. n. 5.2 1.8 OUTP'UT. LIt" "ORC AND1 ValuelAddd (GDP factor costs) Labor Force Value Added Per Worker (us i millions (US $) % of national average Agriculture 210 30 n. a. n. a. n. a. Industry2 139 20 n. a. n. a. n. a. Srvices 354 50 n. a. n. a. n. a. Total/Average 701 1 PUBLIC FINANCES IN 1970/71 All Goernenta Central/Federal Goernment % of GOP average ) of CDP average CEF billion % of GDP lost three years CFAF billion 8 of GDP last three years Current Recelipt / 11.4 18.8 18.2 Current Expenditures (inel. transfers) / 0.1 16.2 17.4 Current Surplus/Deficit (.) 1.3 0.6 0.7 Capital Expenditures 9.1 4.1 3.3 External Assistance (not) 6.2 2.8 2.1 PRICES AND CREDIT* end of year, ea.Pa.aTwin Bak Crolit to Public Sector Bank Credit to Private ecolr (Monthly a Index (1963-100) % channe CFAF billion c hage CFAF billion S change 1968 11L.0 5.1 -2.40 - 31.87 5.0 1969 119.0 4.1 0.18 - 35.61 2.1 1970 123.6 3.9 -0.0% - 38.56 8.3 1971 131.4 6.3 -1.26 - 38.95 1.0 BALANCE OF PAYMNOTS IN (last three yeare), 1968 1969 1970 IfECHANDISE EXPORTS (Average of the last three years): (milYTIB uS $) ($ mn.) % Exports of Goods, NFS 20. 170 191 Groundnuta 77.3 52 Imports of Goods, NPS 226 216 225 Phosphatea 10.3 7 Reseurce Gap (deficit 22) -L -3h Fish 6.1 h Cotton Textiles 4.0 3 Interest Payments (not) -1.1 -1.0 -2.0 Arabic Gum 3.1 2 Workers' Remittances ) -16.3 -15.2 -14.6 All Other Cosmedities L9.4 32 Other Factor Paymenta (net) ) Bot Transfere 9.3 8.6 9.0 Balanc an Current Account(including transfers)-30.1 -53.6 -1,1.6 Total Direct Foreign Investment 6.8 3.1 3.0 Medium and Long-term Loana (not) 11.2 20.9 8.7 Di.bursments (11.0 ) (21.5 ) (12.2 ) EXTENAL DEBT ON DECEMBR 31. 1970 Amortisation ( 2.8 ) (3.6 ) (3.5 ) ($ mn.) Official Grante 1L.7 15.2 21.1 Medium and Long-term Credits, Public 81.1 Other Capital (not) -9.8 - l.3 Non-Guaranteed PrIvate MLT n. a. Increase in Not Reserves (Banking Institutiona20.8 -17.5 21.0 Total Outstanding and Disbursed All other items -13.6 -3.1 25.2 Gre.. Reserves 21.9 13.6 30.9 DEBT SERVICE RATIO 1971 1.3 Net Reserves 3.1 -11.1 6.9 IBRD/IDA LWDING, APRIL 30, 1972 ( n.) IBRD IDA Outstanding and Disbursed 2.8 12.1 U.diabursed 1.2 11.7 Outstanding incl. Undiabureed 4.0 2L.1 Rts of Exchange. US $1.00 - CPAF 255.79 Date, May 23, 1972 CFAF 1.00 * US $009 Department. Western Africa 1. 1962-1965 2/ Including Construction and artisanal activities I/ local government budgets are not available; as a percentage of Central Government operation, they represented about 6 percent of current receipts, 9 percent of current expenditures, and 7 percent of capital expenditures in 1967/68. ANNEX III SENEGAL - SITE AND SERVICES PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Senegal Amount: US$8,000,000 Terms: Standard Project Description: a. acquisition and preparation of 400 hectares in Dakar and 60 hectares in Thies. Provision would be made for 14,000 lots in Dakar and 1,600 lots in Thies for the construction of dwellings. On the basis of estimated population density of 10 people per lot, the project would accommodate 140,000 people in Dakar and 16,000 in Thies. Land would be reserved for other activities, including commercial, small-scale in- dustrial, recreational, cultural, and educational facilities; b. extensions to the primary road, water and power networks to and through the project area and the provision of roads, power, water and sanitation facilities within the new settle- ments;, c. the construction of, and equipment for, 14 primary schools, 4 secondary schools and 5 health centers; d. provision of technical assistance for detailed engineering, management and training related to project implementation and the formulation of national housing policy; and e. a study of the criteria for determining whether to relocate squatter settlements or improve them in situ, together with a pilot project for improving 10 hectares of a squatter set- tlement in situ in the center of Dakar. ANNEX III Page 2 Estimated Cost (including taxes) US$ Million Total Forein Local Site preparation 2.91 1.63 1.29 Project infrastructure 2.89 1.39 1.50 Education and Health Facilities 2.60 .55 2.05 Community improvement 0.06 0.02 0.04 Technical assistance 0.83 0.61 0.22 Land acquisition 0.40 - 0.40 Primary infrastructure 0.95 0.44 0.51 10.64 4.64 6.00 Contingencies 2.30 1.03 1.27 Total 12.94 5.67 7.27 Financing Plan: Association 8.00 Government 4.82 UNDP 0.12 Total 12.94 Estimated Disbursements: Fiscal Years $ million 1972/73 0.3 1973/74 0.8 1974/75 2.0 1975/76 2.0 1976/77 1.8 1977/78 1.2 ANNEX III Page 3 Procurement Arrangements: Procurement would be civil works contracts awarded on the basis of international competitive bidding, with advertisement limited to Senegalese and regional publications and notification to embas- sies in Dakar. Separate civil works contracts will be drawn up for (a) site preparation and streets, (b) water distribution, (c) electrifica- tion and (d) septic tanks, public lavatories, schools and health facilities. Contracts for work in Dakar and Thies would be separate. Con- tractors would be given the option to bid for all or any of the components and both for Dakar and Thies. Consultants: (i) the positions in OHLM of project manager, con- troller, civil engineer, expert in savings and credit mechanism, expert in community develop- ment and expert in building materials and tech- niques; (ii) adviser to the Government on national housing policy; (iii) detailed engineering for the Project; (iv) study of criteria to assist the Government de- termine which squatter settlements should be improved in situ and which eradicated; (v) feasibility study and detailed engineering of a pilot community improvement project in Dakar. Rate of Return: 18 percent. (Financial) Appraisal Report: PS-11a dated June 9, 1972. M,pl 少 Мор 4 1ТЭО' V'I5' SENEGAL Site and Services Project DAKAR METROPOLITAN AREA RESIDENTIAL ENVIRONMENTAL COND1T10NS -1969 г СА ЕиЕ GOLE - � . i' Т �� �, � i i Q � 1 � � � ,�`�' ,'УеимвеиТ lV _ , - .. � r Т. Р � V / � i 16voF�,� j Р 1 �� тнlАвоУЕ � � _- с о �`` QR GRANDE N1AYE 7Г� � � kгп 1а I4'45'О � Т^� а д.л NGOR / 1д•д5' 80 аи - _ _� / �' - - AIRPORT THIAROYE-MER V о � � �Т flE510ENTIAL ABEAS �� � ANN 8 де �ю h S� aids .уааь. .� � ^1 :.'DK / � Е Point Е \ 1TOUAKAM Сд�и Р�е Resd Q � - S1CAP 51СА �� HANN ок оегкт „ Си сапыпе и FH Fапп Hnck ~ M1L TARY � 0 Oi�on Чауе р А Zone А Q 0 Ооивпе Роп {� F Fass Limr BU Вшlдегг в мелгип sгалеагдк Агвак RoadS ® метпа M1цдта 1NDU5TR1At ЕС Fагг Caver ZONE С 1пw S�апдsгдг Агеаг ,��-Raltroad в сгапд оакаг -сг��- �- 1 Grand Уо11 Сапд УоЧ С1 СоlоЕагк 1 ----- Тгаддгопоl vdloges еР сс сматок дв сои<ке CR С11 Pikii�e Aneren Rkirк Ancicn � 0 Very Law Лапдыдs Аrеаь U1 Тд reгиlГбагГаг - ® FP Fas Pa�Ilaгes �� PORT R Ras м�тпп АЕ АеЬеия �н GM GianE hkdina Rkme Ехгепvпп Rkme Емеnдпn lпге 8 игисееl P�kme ЧгериЬеi РМ�пе Inegui�er � �� М А V R 1 Т А N 1 А � Л GOREE 15�AND г _.,. --� �AZ \1\�UT) !~ � Q 1д•д0' 4, Н ~�1 l, ~ � г.�,\ ._ О 5 { �'� 1 G,"\ N Projsei огаа �� (llt 5 Е N Е G А L [ � умд11 ( 0 1 2 Э д 5 6 ti j 1_ 1 1 1 1 1 ...1 г С j �~�...� � � КдемаЧгs С 1' �.г � �'� - _ � ti _ Т Q ... � i� ._.�._ _` t 17•25' irC1RTUGUESE GUINEA f G U 1 N Е А s FEBRUARY 1972 18RD Э8д7