Report No. 712-BO F CQPY Bolivia: Water Supply 19'75/77 and Sewerage Sector Studv (In Two Volumes) Volume 1: Text April 15, 1975 WHO/IBRD Cooperative Program Latin American and the Caribbean Regional Office Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the aank Group. It may not be published, quoted or cited without Bank Group authorzation. The Bank Group does not accept responsibility for the accuracy or completeness of the report. CURRENCY EQUIVALENTS Currency Unit Bolivian Peso ($B) US$1 $B20.00 MEASURES AND EQUIVALENTS Kilometer (km) 2 0.62 mile Square kilometer (km ) 0.386 square feet Meter (mi) 3.28 feet Cubic meter (m3) 35.3 cubic feet 264 gallons (US) 220 gallons (Imperial) ACRONYMS AND ABBREVIATIONS CONEPLAN National Economic and Planning Council CORPAGUAS Autonomous Agency, Water Supply and Sewerage for cities 500-10,000 population SAMAPA Autonomous Agency, Water Supply, La Paz SEMAPA Autonomous Agency, Water Supply and Sewerage, Cochabamba SAGUAPAC Autonomous Agency, Water Supply and Sewerage, Santa Cruz SETA Autonomous Agency, Water Supply, Oruro AAPOS Autonomous Agency, Water Supply and Sewerage, Potosi ELAPAS Autonomous Agency, Water Supply and Sewerage, Sucre CONASA National Sanitation Council NHCB National Housing and Construction Bank USAID U.S. Agency for International Development UNDP United Nations Development Programme UNICEF United Nations Childrens Emergency Fund IDB Interamerican Development Bank IBRD Internaticnal Bank for Reconstruction and Development IDA International Development Association PAHO Pan American Health Organization WHO World Health Organization UNIDO United Nations Industrial Development Organization TABLE OF CONTENTS Page No. I. SUMMARY AND RECOMMENDATIONS ........................... 1 Present Situation .............................., 1 Sector Policies ......... .................... 3 External Assistance . ............................. 3 Recommendations ......... .................... 5 II. PRESENT SITUATION ........... .................. 7 Background Information ............................. 7 Regional Characteristics and Water Resources .... ...... 8 Population ............................................. 9 Economy ............................................... 10 Public 11ealth .......................................... 10 Institutional Aspects ...................... ,11 Phase I ................. 16 Phase II ................. 17 Recommendation ................. 17 Water Supply and Sewerage Services ...... .............. 18 General ..................................... 18 Urban Water Supply .............................. 22 Urban Sewerage .................................. 23 Rural W4ater Supply ................. 23 Rural Sewerage and Excreta Disposal .... ......... 25 Recommendations ............. ..................... 26 Financial Aspects . .................................... 26 General ..... 26 Internal Sources of Finance .26 Recommendations .28 Metering and Control of Consumption .29 Recommendations .30 External Sources of Finance .30 Manpower and Training Aspects .33 Republic Relations and Education .36 Engineering Consultants and Contractors .36 Construction Materials .37 III. SECTOR PLANNING AND POLICIES .39 IPeriod: 1950-1970 .39 Period: 1970-1980 .39 Recommcndations .40 TABLE OF CONTENTS (Continued) IV. PROPOSED INVESTMENT PROGRATUME . . ........................ 41 Development Scrategy .................................. 41 Investment Progranme ............. ..................... 41 Urban Water Supply .......... ..................... 42 Rural Water Supply .......... ..................... 43 Urban Sewerage . .................................. 45 Rural Sewerage and Excreta Disposal ..... ......... 45 Institutional Development ....... ................. 46 Sources of Finance for Proposed Investment Programme .. 48 Table I Total Investment Programme Table II Institutional Development Programme Table III Capital Investment Programme: Engineering Costs Table IV Capital Investment Programme: Construction Costs Chart I Organization Diagram A, Phase I Chart II Organization Diagram B, Phase II Programme Data Sheets 001 Urban Public Water Supply for 12 Medium-size Cities 002 Urban Water Supply for 50 Minor Cities (2,000-10,000) 003 Rural Public Water Supply for 80 Communities (500-2,000) 004 Rural Water Supply lor 200 Population Conglomerates (500 or less) 005 Rural Water Well Installation and Spring Protection for Dispersed Populations 006 Urban Public Sewerage for 6 Large-size Cities (50,000-1,000,000) 007 Public Sewerage for 6 Medium-size Cities (10,000-50,000) 008 Rural Sanitation Facilities for Populations of 2,000 or less 009 Professional, Technical and Auxiliary Personnel Training Programme 010 Technical Assistance to the lHousing and Construction Bank and Other Agencies in Water Supply and Sewerage Sector 011 Technical Assistance in Institutional Administration and Management 012 Study for Establishment of Financial Policies of the Housing and Construction Bank 013 Administration and Management Assistance to CONAtA and the Housing and Construction lBank 014 Technical Assistance in Utility Accounting to the Housing and Construction Bank 015 Organizational Assistance to the lfousing and Construction Bank 016 Socioeconomic Study in the Urban and Rural Areas on a Nation- wide Scale APPENDICES 1. Climatology, Table 1 2. Estimate of Total Population, Table 2 Urban and Rural Population by Department, Table 3 3. Annual Per Capita Incomes in Various Latin American Countries, Table 4 Level of Accumulated External Debt, Table 5 External Debt Service and Export Values, Table 6 4. Budget Expenditures by Department, Ministry of Public Health, Table 7 Annual General FInrtality Rate, Table 8. Mortality: 1969, Table 9 Inctidence of the 'Fen Principal D)iseases, Table 10 Causes of Morbidity: 1967, Trable 11 (Caulses of Mortalitv: 1967, Table 12 A Samplingg of Nutritional Levels of tihe Population; 1970, Table 13 lHospital Beds by Departments: 1971, Table 14 Number and Distribution of Physicians, Table 15 5. Nlational InstittitionssResponsible for Water Supply and Sewerage: 1973, Table 1( 6. Population Served by Public Water Supplies: June 1973, Table 17 Population Served by Public Sewerage: June 1973, Table 18 Urban Public Water Supplies: June 1973, Table 19 Number of Cities witlh Public Water Supply and Sewerage Systems, Table 21 7. Supreme Decree, 'itional Council of Tariffs, Document 1 Water Rates and Sewerage Service Charges in Various Government Entities, Table 22 8. Supreme Decree, National llousing and Construction Bank, Document 2 9. Programme Alternatives for Population Coverage, Table A Phasing of Programme Implementation by Years, Table B Per Capita IJnit Construction Costs for Water Supply and Sewerage, Table C Service Qualitv Criteria, Table D Personnel Working in Water Supply and Sewerage, Tablv E Manpower Requirements for Sector Activities: 1974-1980, Table F-1 Manpower Training Costs: 1974-1980, Table F-2 IJrban Water Supply, Medium Programme Coverage and Costs, Table G Rural Water Supply, Maximum Programme Coverage and Costs, Table H Ulrban Sewerage, Medium Programme Coverage and Costs, Table I Rural Sanitation, Maximum Programme Coverage and Costs, Table J Urban and Rural Water Supply, Urban Sewerage and Rural Sanitation, Coverage and Costs, Table K APPENDICES (Cont'd) First Stage Investitent Coverage and Costs by Financing Source: 1974-1977, Table L, Second Stage-Investment Coverage and Costs by Financing SourceL 1978-1980, Table M Total Investment Coverage an(d Costs by Financing Source: 1974-1980, Table 4 10. Mission Composition and Terms of Reference MAPS A. Republic of Bolivia I)epartments B. Chuquisaca C. Beni D. Cochahamba F. La Paz F. Oruro G. Pandio It. Potosi I. Santa Cruz J. Tarija SUMMARY AND RECOMMENDATIONS 1.01 This report has been prepared from information gathered during a visit to Bolivia in September-October 1973 by a mission from the WHO/IBRD Cooperative Programme consisting of Messrs. John Robinson and Guillermo Morales, WHO/Geneva, and assisted by Mr. Guido Acruio, PAHO/Bolivia. Present Situation 1.02 The 1973 population of Bolivia is estimated at 5.3 million, of which approximately 3.5 million or 66 percent are in the rural area and 1.8 million or 34 percent reside in urban towns and cities. 1/ At an annual urban/rural average net growth rate of 2.6 percent, 2/ the total population is expected to reach 5.6 million by 1975 and 6.5 million by 1980. 1.03 Of the 108 communities comprising the urban area, only 37 communi- ties have public water supply systems serving an estimated 1.0 million in- habitants or slightly over 55% of the urban population, over 800,000 or about 44 percent being served by house connections, and 200,000 or 11 percent hav- ing easy access through public standpipes. The remaining 71 towns with 800,000 inhabitants or 45 percent of the urban population obtain their domestic water from unprotected sources. 1.04 There are 457 rural communities 3/ accounting for an estimated popu- lation of 600,000 or 18 percent of the rural total. The remaining rural dwellers of 2.9 million are largely dispersed, living in small population conglomerates of 200 inhabitants or less. Of the 457 rural communities, only 83 have any type of public water supply systems or protected water sources, serving an estimated population of slightly over 151,000 or less than 4.5 percent of the rural total; approximately 53,000 of these or about 1.5 percent are served through house connections and the remaining 98,000 4/ or less than 3.0 percent have easy access to public standpipes and/or protected common wells. 1.05 Only eight cities of the 108 urban communities have any organized system of public sewerage serving an estimated population of 420,000 or less than 24 percent of the urban total. 1/ Urban towns and cities are defined as having over 2,000 inhabitants. 2/ Annual urban/rural average net growth rate expe'rienced during the period 1950-1973. 3/ Rural communities having 200 - 2,000 inhabitants. 4/ 22,000 are served by public standpipes and 76,000 obtain their water at well sites from 730 protected wells. - 2 - 1.06 In the rural area an estimated population of 112,000 or about 3.2 percent of the rural total are served by individual waste disposal facilities such as septic tank systems, seepage pits and sanitary latrines, there being no systems of public sewerage. 1.07 An estimated 4.2 million urban and rural dwellers or over 78 percent of the nation's total population are thus forced to obtain their daily domestic water needs from sources of dubious sanitary quality, and often at considerable distance from their resident area. An estimated population approaching 4.8 million urban and rural inhabitants or 90 percent of the total country population lack adequate domestic waste disposal facilities. This situation is reflected in the endemicity of diseases attributable to unsanitary conditions due to lack of safe and adequate water supply and in- adequate waste disposal facilities. 1.08 In general, the quality of-water supply service is inadequate antd systems' operation and maintenance is at best deficient and, in most cases, non-existent. 1.09 Institutionally, there are 16 Government agencies, autonomous authorities and municipalities having responsibilities for the planning and execution of water supply and sanitation activities. Many of the functions of these entities or their areas of action.are not clearly defined, result- ing in overlapping of responsibilities, confused lines of authority, duplica- tion of efforts, ineffective and inefficient use of scarce financial material and manpower resources, and in general, a lack of coordination and collabora- tion in common sector activity. An important segment of the urban area con- sisting of cities in the population range of 10,000 to 50,000 is without technical, administrative and financial guidance, supervision and support from any Government entity or autonomous agency. 1.10 The sector in general and water supply in particular have been seriously handicapped financially over the past years, due to inadequate tariff policies and the Government's inability to allocate more of its scarce revenues to the sector. In almost all cases the tariffs are insufficient to cover even operation and maintenance costs, and there is no basis established on which to develop equitable water rates. 1.11 There is a severe shortage of specialized technical-administrative personnel at all levels. This is due principally to: the lack of employment opportunities; the lack of educational institutions to train skilled labor or professional, technical and auxiliary personnel and the very low salary existing in Government service, resulting in recruitment problems and high turnover of qualified personnel. 1.12 There are 10 Bolivian consulting engineering firms in the private sector and 15 construction firms qualified and competent to perform standard- type services in the water supply and sanitation sector. These firms would not be able to handle some of the more complex work envisaged over the next ten years without the continued assistance and collaboration of foreign firms. - 3 - 1.13 The great majority of construction materials and equipment that would be required in the sector over the next 10 years would most likely continue to be imported. Sector Policies 1.14 There have not been any established national policies in the sector in past years, nor any long or medium term goals or formulated programmes in either the rural or urban areas. However, the Government has subscribed to the sector goals for the present decade as established by the Meeting of the Latin American Ministers of Health in Santiago de Chile in October 1972. (See para. 3.04, footnote 2) 1.15 The Five-Year National Economic Development Plan (Plan Quinquenal 1973-1977) made no plans for the sector but proposed to allocate annually during the period 1974-1980, approximately US$6 million to the public ser- vices sector, which, besides the water supply and sanitation sector, includes energy and communications. The proposed proportion of this allocation to specific fields is not given. 1.16 The Ministry of Public Health in its Five-Year Health Plan (1973- 1978) proposed to provide in 15 years or by 1985, as part of the proposed National Rural Water Supply Programme, piped distributed water supplies to 500 rural communities or a coverage of about 20 percent of the rural popu- lation. The Ministry of Housing and Urban Planning, the agency charged with the development and supervision on a national scale of sector policies on urban infrastructure, is beginning to establish a sector policy on water supply and sanitation. The National Housing and Construction Bank has re- cently been created, through which Bank sanitary works, both urban and rural, would be financed. External Assistance 1.17 The major sources of external, technical and financial assistance to the sector during the past five years are: the Interamerican Develop- ment Bank (IDB); the Federal Republic of Germany; France; the United States Agency for International Development (USAID); UNICEF; the Pan American Health Organization/World Health Organization (PAHO/WHO). 1.18 The IDB has made loans to the country in the amount of US$15.5 million over the past five years, 74 percent of this amount being utilized in water supply and the remaining amount in sewerage. The IDB loans will have benefitted estimated population of 415,000 when the programmes financed in part by these loans are completed. 1.19 The Federal Republic of Germany has provided a loan of US$23.0 million for first phase improvements to the water supply system of the city of La Paz, and is ready to provide a second loan of US$14.5 million for second phase requirements of the same system. The French Government - 4 - granted a loan of US$2.2 million for improvements to the water supply system and a new water treatment plant in Sucre. The USAID has provided technical and financial assistance to water supply and sanitation projects costing an estimated US$17.9 million. 1.20 UNICEF has provided material assistance to the Ministry of Public Health for rural water supply and sanitation amounting to an estimated US$0.2 million. _1.21 Assistance from PAHO/WHO is estimated at US$0.3 million in the form of professional technical assistance in sanitary engineering, funds for fellowships and training, supplies and equipment, and grant funds to establish revolving fund systems in financing of rural water supplies. 1.22 The sector development strategy and the investment programme recom- mended on the basis of the various constraints identified in Chapter II of this report refer to the period 1974-1980, and have been prepared guided by the following general objectives: (a) the improvement of institutional infrastructure at all levels; (b) the integration, coordination, supervision and financing of water supply and sanitation agency activities by one national entity; (c) the organization of eventual sector operations on a regional basis through departmental water and sewerage entities; (d) the generation of adequate revenues through rates and charges for water and sewerage services to enable the sector to operate on a financially self-supporting basis to the maximum extent possible; (e) the provision of a stable source of financing for the sector through earmarked taxes, royalties and/or social security payments; and (f) the development of manpower at all levels to serve the sector adequately. 1.23 An investment programme is proposed consisting of an institutional development programme and a capital investment programme. The investment programme is designed to assist the nation in reaching by 1980 specific ser- vice level goals as described in paragraphs 4.08-4.19. Implementation is to be executed in two stages, the first stage 1974-1977, and the second stage 1978-1980. - 5 - 1.24 The investment programme calls for expenditures during the period 1974-1980, totalling slightly in excess of US$48 million. US$38.4 million or 80 percent, would be utilized in the urban area. The external and internal financial requirements of the program include external multilateral/bilateral financial and technical assistance of US$27.8 million or 58 percent and national counterpart support of US$20.3 million or 42 percent. First stage requirements would total US$30.3 million. A resume of the investment programme is shown in Table I. The major source of internal finance would be earmarked taxes, roalaties, etc., followed by internal cash generation and direct central and local government contributions. 1.25 The investment programme is predicated upon both the successful reorganization of the institutional infrastructure in the sector and upon the execution of an institutional development programme. The suggested institutional development programme, while extremely important to the sector, is relatively inexpensive, requiring only US$631,000 during the period 1974-1980 or about one percent of the total investment programme, with first and second stage expenditures of US$512,000 and US$119,000 respectively. The institutional programme would be implemented in conjunction and simultaneously with the capital investment programme in accordance with recommendations in Chapter Il. It would consist of planned technical and financial assistance not only to improve utility organization, administration, management and finance but also to provide training to all personnel engaged in sector activities, especially in systems' operation and maintenance. Table II provides details on the various projects comprising the institutional development programme. 1.26 In implementing the investment programme, Bolivia would require substantial support from international and bilateral assisting agencies, as well as strong commitments on the part of its Government. The Government would also reorganize the existing institutional infrastructure in the sector in order to provide a more manageable and effective institutional arrangement capable of achieving planned sector goals. Recommendations 1.27 It is recommended that the Government: (i) use the National Housing and Construction Bank as a channel for financing sector programmes as well as for supervising and coordinating sector activities. The Bank's Executive Secretariat (paragraphs 2.28 - 2.29 and 2.43 i) would be responsible for project evaluation and supervision; (ii) prepare a national development plan for the sector (paragraphs 3.01 - 3.04 and 3.05 i); (iii) implement the suggested capital investment and institu- tional development programme while making appropriate - 6 - provisions for counterpart funds and recurrent expenditures (paragraphs 2.75 i and 4.01 - 4.32); (iv) request assistance from international agencies and bilateral aid countries for the provision of technical and financial assistance required in the implementation of the capital investment programme and the institutional development programme (paragraphs 2.75 ii and 4.01 - 4.32); (v) implement a simple, comprehensive data and information recording, retrieval and reporting system (paragraph 3.05 ii); (vi) institute a permanent training programme for Bolivian personnel at levels called for in the investment pro- gramme (paragraphs 2.94 - 2.101 and 2.102 i & ii); (vii) implement socioeconomic tariff and metering studies in the urban and rural areas to provide a basis for investment decisions and for a rational and equitable tariff policy (paragraphs 2.82 - 2.84 and 2.86 i; 2.89 - 2.90 and 2.91 i); (viii) design and implement, at the earliest possible date, tariff structures and a metering programme based on the studies mentioned in (vii) or, in case no studies exist, on the guidelines outlined in paragraphs 2.85, 2.90, 2.86 ii and 2.91 i & ii; (ix) develop and implement a public relations and general education programme (paragraphs 2.103 and 2.104 i); (x) continue present practice of employing engineering firms and in-house use of local expertise, and re- view, study and enact legislation, if needed, to improve public bidding and project award procedures (paragraphs 2.105 - 2.109 and 2.110 i & ii); and (xi) develop and implement a programme for the promotion of a construction materials industry (paragraphs 2.111 - 2.117 and 2.118 i). II. PRESENT SITUATION Background Information 2.01 The Republic of Bolivia (Map A) is situated in west-central South America south of the Equator and landlocked between Peru on the northwest, Brazil in the northeast, Paraguay in the southeast, Argentina on the south and Chile closing with Peru on the southwest and west. It has a land area of almost 1.2-million square kilometers. The country is traversed in a general north-south direction along its western boundary by two main ridges of the Andes mountains, which divide the country geographically 1/ and ethnically. 2.02 Although the capital of the Republic and the site of the Supreme Court is the city of Sucre with a population of 52,000, the city of La Paz with a population of 620,000 actually functions as the capital of the country. La Paz is not only the seat of the Government's Executive and Legislative branches but also the commercial and industrial centre of the country. 2.03 Politically the country is divided into nine departments as follows: Department Capital Chuquisaca Sucre Beni Trinidad Cochabamba Cochabamba La Paz La Paz Oruro Oruro Pando Cobija Potosi Potosi Santa Cruz Santa Cruz Tarija Tarija 1/ Basic background information relative to geography is shown on Maps A to J (inclusive) of the country and the nine departments; information regarding climate and meteorology is provided in Table I of Appendix 1. The meteorological data is rather scarce and has been collected mainly for aviation purposes, but the precipitation records are valuable and complete over the past 20 years. In recent years, new meteorological stations have been installed, and others are now being installed, but it will be some time before this collected data can be effectively utilized. - 8 - Regional Characteristics and Water Resources 2.04 There are three distinct regions that are clearly marked, both geo- graphically and sociologically: (a) the high plains at elevations ranging from 3,500 to over 4,500 metres, located along the country's western boundary in the departments of Potosi, Oruro and part of La Paz, and in which region is found the great majority of the nation's population and the original "aymara and quechua" Indian races, the main economic base being almost exclu- sively centred in mining; (b) the valley at elevations between 1,000 and 3,000 metres, located along the eastern ridge of the Andes in the departments of Cochabamba, Chuquisaca and Tarija, where important urban communities have been developed with a substantial "quechua" population among this region's inhabitants, the major vocations being agriculture and, to a lesser extent, mining; and (c) the eastern low plains at elevations of 400 to 1,000 metres, the most extensive area of the country being in the departments of Pando, Beni, Santa Cruz and part of La Paz and having the lowest population, the economic activity centred in agro-industry, cattle and petroleum with a future potential in mining. 2.05 The country is divided three large watershed areas: the Amazon, the Plata River, and Lake Titicaca. The Amazon watershed is the largest of the three and has within its drainage basin many large rivers, some navigable, all tributary to the Amazon River and providing communication with certain areas of Peru and Brazil. The Plata River watershed is formed of rivers in the southeastern part of the country, the two najor rivers (both navigable) being the Pilcomayo and the Paraguay. The Titicaca water- shed is located in the high plains region of the country. It is formed by various rivers tributary to Lake Titicaca and is the highest navigable lake in the world at 3,812 metres. 2.06 Efforts to identify and exploit water resources have been, at best, sporadically carried out in the past. For future development policies and plans, basic information is needed. At present, groundwater is considered to be the most economical source for irrigation and for public water supplies in particular, even though the country's three large watershed areas (described in paragraph 2.05) contain major rivers whose tributaries have substantial river flows. Because of this and the very limited knowledge of groundwater potential in two of the three regions of the country, the high plans (Altiplano) and the valley (Cochabamba), the Government with the assistance of the UNDP, is conducting two groundwater projects to determine the availability and magnitude of the groundwater resources. The Altiplano project is expected to be completed shortly, while the Cochabamba project would terminate in 1975 or 1976. It is believed that the potential for groundwater development is probably better in the eastern low plains region (Santa Cruz) because of higher rainfall and because of recharge from various stream flows from the Cordillera. -9- Population 2.07 There has not been a national population census in Bolivia since 1950. Various Government entities have, however, attempted to conduct on their own initiative population studies in efforts to substantiate existing population data. The population data presented in this report have been collected from these sources. 2.08 The following Table shows that, as of June 1973, the estimated total population of the country was 5.3 million, of which 3.5 million or 66 percent were in the rural area and 1.8 million or 34 percent resided in the urban area in communities having 2,000 or more inhabitants. This indicates that Bolivia is a predominantly rural country. Classification Number of Population Population Range Communities (millions) % % Urban Total Urban Area: Urban Population Population 10,000 or more 18 1.35 75.0 25.0 2,000 - 10,000 90 .45 25.0 8.5 Total 108 1.80 100.0 34.0 Rural Total Rural Area: Rural Population Population 200 - 2,000 457 .60 17.1 11.3 Under 200 /1 - 2.90 82.9 54.7 Total 457 3.50 100.0 66.0 /1 Population conglomerates and dispersed population. Of the 565 communities, both rural and urban, 457 are classified as rural towns (200 - 2,000 inhabitants) with a population estimated at 600,000. The remain- ing rural population of 2.9 million reside in population conglomerates of 200 or less and are considered as dispersed. Of the 108 urban cities, only 18 communities each having 10,000 or more inhabitants account for 75 percent of the total urban population, or 25 percent of the total population in the country. - 10 - 2.09 During the period 1950-1973, the annual average net growth rate was around 2.6 percent and with this growth rate, the population is expected to reach 5.6 million in 1975 and 6.5 million in 1980 (Table 2, Appendix 2). A geographical distribution of this population indicates that approximiateLy 86 percent would be concentrated in the high plains and valley regions, while the remaining portion of 14 percent would be in the eastern low plains. The nation's urban and rural population is shown by departments (Table 3, Appendix 2) as well as the population densities. The average population densities as measured by persons per square kilometre of the three regions of the country are as follows: (a) the high plains, less than nine; (b) the valley, about 10; and (c) the eastern low plains, slightly more than one. Economy 2.10 The Bolivian economy is based essentially on its activities in min- ing and agriculture. In the field of mining, which represents 10.1 percent of the gross national product, the most important products for export are tin, zinc and silver, and in agriculture, with 16.3 percent of the gross na- tional product, cotton and sugar are the major items. In recent years, the petroleum industry with its exploitation of oil has been acquiring increasing importance, representing 3.2 percent of the gross national product in 1971. The annual per capita income rose from US$155 in 1960 to US$203 in 1969, this growth being superior to that of other Latin American countries such as Peru, El Salvador, Guatemala, etc. (Table 4, Appendix 3). Other informa- tion on growth of gross national product, external debt and debt service is presented in Tables 5 and 6, Appendix 3. Public Health 2.11 The national budget makes no significant priority to the public health sector. The 1972 budget assigned only $b 7.91 per person, or an equivalent of US$0.40 to the health sector (Table 7, Appendix 4). 2.12 Health statistics are incomplete, but there is enough data to make a general appreciation of the health situation. The general mortality rate has decreased over the past 20 years from 22 deaths per 1,000 inhabitants in 1950 to 19 per 1,000 inhabitants in 1972 (Table 8, Appendix 4). The Five- year National Health Plan (Plan Quinquenal 1973-1978) of the Ministry of Public Health indicates that in 1969 the case mortality due to reducible illness from all sectors was around 33 percent of the total reported deaths. Within this group, the deaths from intestinal and parasitic diseases attri- butable to unsanitary conditions due to lack of safe water supply and in- adequate waste disposal, etc. amounted to 12 percent of the total reported deaths (Table 9, Appendix 4). 2.13 Other data covering the rural and urban areas reported in the Na- tional Water Supply Plan of the Ministry of Public Health clearly demonstrated the importance of the group of communicable diseases attributable to unsani- tary conditions with case mortality and morbidity in 1967 of 48 and 26 percent, - 11 - respectively. Further, intestinal parasitosis, enteritis and enterocolotis were listed in third, fourth and eighth places respectively, in incidence among the ten principal diseases of 1969 (Tables 10, 11 and 12, Appendix 4). 2.14 The general situation is further aggravated by the low nutritional level of the population. In 1970, there was an average national deficiency in calorie and animal protein intake of approximately 15 and 41 percent re- spectively (Table 13, Appendix 4). Such nutritional deficiencies make the public much more susceptible to those communicable diseases associated with unsanitary conditions. 2.15 The national development strategy for the health sector in the period 1970-1990 is to improve the level of health by increasing life ex- pectancy from 47 years to 70 years, lowering the mortality rate to 7 per 1,000 population and infant mortality to 50 per 1,000 population. To achieve these goals it is recognized that environmental conditions must be greatly improved through the provision of adequate services of water supply, sewerage and solid waste. Institutional Aspects 2.16 At present there are 16 Government agencies, autonomous authorities and municipalities 1/ having responsibilities for the planning and execution of water supply and sewerage programmes; they are: Entity Presently Executed Functions 2/ National in scope a. Ministry of Housing and Urban Urban water supply and sewerage; Planning, Division of Urban overall planning policy and Engineering supervisory activities b. Ministry of Public Health, Rural water supply and sanitation Division of Environmental (communities: 2,000 or less); Sanitation rural planning policy, design, construction, financing and some operations c. CORPAGUAS, Ministry of Water supply and sewerage (communi- Housing and Urban Planning ties: 500 - 10,000); design, con- struction, financing 1/ Table 16, Appendix 5. 2/ For those entities national in scope, functions presently executed are indicated; for those netities local in scope, functions are not indicated but include planning, design, construction, financing, operation and maintenance. - 12 - d. Ministry of Rural Affairs, Water supply (communities: 5,000 National Community Develop- or less); design, construction, ment Service financing e. Ministry of Defense, Armed Water supply (strategic communities Forces Civic Action, auto- on border frontiers); design, con- nomous or municipal entities struction, financing Local in scope f. SAMAPA Water supply (City of La Paz) g. Municipal Government, Sewerage (City of La Paz) City of La Paz h. SEMAPA Water supply and sewerage (City of Cochabamba) i. SAGUAPAC Water supply and sewerage (City of Santa Cruz); agency formed but not operational J. Public Works Committee, Water supply and sewerage (Department Santa Cruz Department and City of Santa Cruz) k. SELA Water supply (City of Oruro) 1. Municipal Government, City Sewerage (City of Oruro) of Oruro m. AAPOS Water supply and sewerage (City of Potosi) n. ELAPAS Water supply and sewerage (City of Sucre) o. Public Works Committee, Water supply and sewerage Tarija Department (City of Tarija) p. Public Works Committee Water supply and sewerage Beni Department (City of Trinidad) 2.17 Many functions of these entities are not clearly defined, resulting in overlapping of responsibilities, duplication of efforts, and in general a lack of coordination of current programmes. 2.18 While there are no established overall national sector policies, two Ministries of the five organizations national in scope actually engage in some sectoral planning. These agencies are the Division of Urban Engineering - 13 - of the Ministry of Housing and Urban Planning and the Division of Environ- mental Sanitation of the Ministry of Public Health. This is contrary to existing legislation which sets forth that the Ministry of Housing and Urban Planning must establish sector policies, while the Ministry of Public Health is given the responsibility of control and surveillance of water quality. 2.19 The Ministry of Housing and Urban Planning, through its Division of Urban Engineering, is beginning to formulate and implement certain policies, e.g. studies of water rates and sewerage service charges through the creation of the National Council of Tariffs and preliminary studies on water supply and sewerage design criteria in the urban areas. In addition, the Ministry prepared the documentation for the creation of the Housing and Construction Bank through which all financing would be channelled for both urban and rural sanitary works. 2.20 The Ministry of Public Health has only partially executed its func- tions to control water quality in both rural and urban areas of the country. However, through its Division of Environmental Sanitation it has established work programmes obtaining maximum collaboration of various local rural com- munity committees in its implementation of rural water supply systems and sanitation facilities. Since the rural area often lacks sufficient finan- cial resources to carry out planned projects, community participation or "self-help labour" in the installation of public water supply systems con- tinues to be strongly encouraged. 2.21 Four of the five agencies national in scope have similar objectives and are covering communities of equal size and social structure; they are: (a) the Division of Environmental Sanitation, Ministry of Public Health, in communities of 2,000 inhabitants or less; (b) the National Community Development Service in communities of 5,000 inhabitants or less; (c) the Armed Forces Civic Action in strategic communities with less than 2,000 inhabitants; and (d) CORPAGUAS in communities with populations of 500 to 10,000. These agencies provide technical assistance and other functions as indicated in paragraph 2.16. In some cases there may be technical assistance liaison with the Ministry of Housing and Urban Planning between t,he agencies. While overlapping and duplication of efforts are very evident, it must be noted that in urban communities with a population range of 10,000 to 50,000 there is no agency responsible for water supply and sewerage activities, nor any defined avenue of approach for securing technical and financial assistance. - 14 - 2.22 There are six autonomous authorities local in scope created by supreme decrees, among which are several that for financial and/or other reasons are either not operational, or are only partially discharging their responsibilities in administering water supply programmes, sewerage activi- ties having been turned over to respective municipal governments. In such respects, SAGUAPAC in Santa Cruz, although a legally recognized entity, is not in operation, its work being carried out by the Department of Santa Cruz Public Works Committee. AAPOS in Potosi, SAMAPA in La Paz and ELAPAS in Sucre are handling only the public water supply systems in their respective cities, while sewerage services are in charge of the municipal governments. The situation with SEMAPA in Cochabamba is even more acute; the legally creat- ed autonomous authority is autonomous in hardly any of its functions, depend- ing entirely on the muncipality in financing water supply and sewerage activities. SELA in Oruro is actually existing in name only, while the Oruro Development Corporation manages the water supply system and sewerage facilities. 2.23 The management of all the existing institutions in the sector is deficient due to insufficient material and manpower resources as well as low salaries in all personnel categories. 2.24 In the majority of the agencies, adequate systems of accounting, billing and collection, personnel records, warehousing and purchasing, etc. are lacking, limiting such work to be done in the most rudimentary manner. International agencies have made various studies of several organizations, such as CORPAGUAS, SEMAPA, SELA and AAPOS, but for various reasons implement- ation of recommended programmes has been very infrequent, and, when done, only partial implementation carried out. 2.25 The progress of water supply and sewerage programmes is slowed down by lack of administrative efficiency and continuity. Additional factors preventing opportune and adequate execution of planned projects include pro- longed periods of delay in obtaining approvals on diverse technical and administrative matters, in waiting for provision of needed funds, in the importation and acquisition of materials and equipment, etc. 2.26 An analysis of these facts argues strongly for the reorganization of the institutional infrastructure of the sector if any real achievement is to be made in the provision of adequate water supply and sewerage services to the Bolivian public. There seems to be a pressing need for uniform policies and standards as well as a unification of purpose, particularly in view of existing organizational and administrative deficiencies and the extreme scarcity of material and manpower resources. Both the mission and the Government authorities with whom these problems were discussed would favor the eventual organization of the sector on a regional basis by departments. 2.27 Major emphasis should be directed to: (a) the improvement of in- stitutional infrastructure, stressing clearly defined areas of action and functions of agencies operating in the sector; and (b) the coordination and supervision of agency activities by one central entity. - 15 - 2.28 The National Housing and Construction Bank 1/ (Document 2, Appen- dix 8) was created in January 1974. The Bank, among its other responsibi- lities in housing, planning and construction will, in addition, function as a lending agency for the water supply and sanitation sector. Specifi- cally: (a) all external funds from multilateral agencies and bilateral aid countries would be channelled through the Bank; (b) most internal, funds, in- cluding internal borrowing, governmental budgetary allocations, and repayment of loans for the water supply sector would be channelled through the Bank; and (c) internal and external funds of the Bank would be lent to the entities building water supply and sewerage projects. 2.29 In addition to its financing functions, the Housing Bank, through its Executive Secretariat, 2/ should: (a) set design criteria and standards, and review and approve all preliminary engineering, feasibility studies and final design; (b) supervise the construction of projects and provide tech- nical assistance in various stages of project planning and implementation to borrowers; (c) supervise the operations of the borrowers in both tech- nical and administrative aspects; and (d) establish qualitative standards and specifications relative to materials and equipment. The Housing Bank could preferably rely on the technical expertise available in the Division of Urban Engineering to perform the above-mentioned functions (a - d), as well as on the competence and experience of the staff of all other relevant Government agencies to enable it to fully discharge its proposed responsi- bilities in the sector. 2.30 The Minister of Housing and Urban Planning would be responsible for formulating broad sector policies and goals besides considering sector development programmes as proposed by the Housing Bank. 2.31 To improve the present institutional situation at the level below the Housing Bank, a reduction of the number of agencies now operating is manda- tory. This change should be accomplished in a short time period so as to cause only minimal interruption in the execution of current projects; the change should be as compatible as possible with existing political policy. Additionally, at an appropriate time to be determined by the Government, sector operations would be organized regionally by extending the responsibilities of existing departmental water and sewerage entities. 2.32 Of 16 agencies operating in the sector, it is suggested that the responsibilities for activities in water supply and sanitation be eliminated in five agencies: the National Community Development Service; the Armed Forces Civic Action; the municipal governments of La Paz and Oruro; and the Public Works Committee of Santa Cruz. 1/ Hlereafter called the Housing Bank. 2/ The mission devoted considerable study to the proper placement of the Executive Secretariat. Based upon the present situation in the sector and the experience of IBRD and WHO with similar institutional arrange- ments in other countries, the Executive Secretariat would function more effectively and efficiently at the Housing Bank level. BOLIVIA CHART I WATER SUPPLY AND SEWERAGE SECTOR STUDY ORGANIZATION DIAGRAM A - PHASE I MINISTRY OF HOUSING AND URBAN PLANNING 0 4' Deposits, Bonds, Shares-.---.- CO External Credits - NATIONAL HOUSING AND Xa __________________ CONSTRUCTION BANK - . Debt Service (NHCB) Central Govt. Support sand Earmarked Taxes Executive Secretariat (DIU) > SAMAPA SEAPA SAGUAPAC SELA AAPOS m LAPAS CORPAGUAS OFMIN 4 City City of City-of City city city Communities PUBLIC HEALTH a of Cocha- Santa of of of Tarija Trinidad of Communities .o. La Paz bamba Cruz Oruro Potosi Sucre 1 500-50,000 of 500 or less 43~~~~~~~~~~~~~~~- C O N S U M E R S Legend: / Public W-Jorks Committee of Policy, Planning the Department of Tarija Supervision -- Flow of Financial 5 Public h'orks Committee of Resources the Department of Beni - 16 - 2.33 SAGUAPAC must be activated and take over its responsibilities in the sector from the Public Works Committee of the Department of Santa Cruz; SEMAPA, at present being financed by the municipal government of Cochabamba, must resume its responsibilities and autonomy; sewerage programmes must be returned to SAMAPA and SELA from the municipal governments of La Paz and Oruro, respectively. The Public Works Committees of Tarija and Beni should be transformed into autonomous entities responsible for water and sewerage. A similar autonomous entity should be created in the department of Pando. 2.34 An organizational plan in two phases is proposed for the Government's consideration: Phase r 2.35 Organization Diagram A (Chart I) shows an institutional arrange- ment in which the six autonomous authorities, SAMAPA, SEMAPA, SAGUAPAC, SELA, AAPOS and ELAPAS, representing respectively the cities of La Paz, Cochabamba, Santa Cruz, Oruro, Potosi and Sucre and two Public Works Committees (Tarija and Trinidad), togetlher with CORPAGUAS and the Ministry of Public Health, functioning as executing and operating agencies. It is to be noted that CORPAGUAS would be responsible for communities of 500 - 50,000. 1/ The liaison between the executing and operating agencies and the Housing Bank and CONASA is shown as well. 2.36 In the opinion of Government authorities and of the mission, the advantage of this organization is: one entity, the Housing Bank, is respon- sible for the financing and management of the sector and would thereby be in a position to secure more funds for the sector on a more stable basis. 1/ This arrangement would contribute to an orderly, coordinated development of the sector, allowing the most effective recuperation of investments in a rational and equitable way (taking into full account the economic capacities of colaborating communities). 2.37 It is also recognized that the utilization of CORPAGUAS may be a disadvantage, since the agency, for various reasons, has not been able to fully discharge its responsibilities as established by law. However, with assistance, CORPAGUAS could maintain its present duties and continue to function as a financial intermediary between the Housing Bank and the cities below 50,000 inhabitants during Phase I. 2.38 The rural water supply and sanitation activities of the Division of Environmental Sanitation of the Ministry of Health would continue with its present responsibilities during Phase I. The water supply and sanita- tion activities of CORPAGUAS and the Ministry of Health would be absorbed by the regionalized organization in Phase II. 1/ Presently responsible for communities of 500 - 10,000. There is no Government agency responsible for water supply and sanitation in communities with population range 10,000 - 50,000. 2/ Proposed financing of investment programme, paragraph 4.24. BOLIVIA CHART II WATER SUPPLY AND SEWERACE SECTOR STUDY ORGANIZATION DIAGRAM B - PHASE II MINISTRY OF HOUSING | AND URBAN PILANING I Deposits, Bonds, Shares - > ~~External Credits NATIONAL HOUSING AND r _____>_ Debt Service CONSTRUCTION BANK o2 Central Govt. Support MINISTRY OF I and Earmarked Taxes PUBLIC HEALTH Executive Secretariat (DIU) 1 ! X - - ! I SAMAPA SEMAPA SAGUAPAC SELA AAPOS ELAPAS Dept. of Dept. of Dept. of (D Dept. Dept. of Dept. of Dept. Dept. Dept. La of Cocha- Santa of of of a - Pad 2J La Paz bamba Cruz Oruro Potosi Sucre Tarita Beni Pando 0 4) C O N S U M E R S Legend: - Department Public Works Committee Policy, Planning Supervir5ion to be transformed into autonomous agency. ~~~~~~~~Flow of Financial Rosoi)r,ees -_ / agency. A Autonomous agency to be established Technical At siuality cntrl - - 17 - 2.39 Since it is extremely important to effect this change in institu- tional arrangement at the earliest possible date so as,to benefit the sector, it is suggested that a target date be established for the completion of Phase I, if possible by the end of the year 1977. This date coincides with the com- pletion date for the first phase of the investment programme 1974-1977. It should be kept in mind, however, that the target date is only a suggestion and that the Government will have to determine the most appropriate date, taking into account the progress being made when Phase I is fully operational. Phase II 2.40 Organization Diagram B (Chart II) shows an institutional arrange- ment very similar in structure to Phase I in that there are a number of entities operating at the executing level, with the National Housing and Construction Bank and CONASA at the supervisory and directory level. The basic difference between the two phases is that in Phase II the entities, while representing nine major cities, also have the added responsibilities for sector development in the nine departments formerly belonging to CORPAGUAS and the Ministry of Health. 2.41 The major advantage in this arrangement, in addition to those enumerated for Phase I, would be that execution and operation would be carried out on a regional basis, utilizing the more numerous and experienced technical personnel available in the departments to handle medium-size and small cities as well as rural areas. The eight departmental entities would be gradually reinforced to take on the responsibilities added to them. As stated in paragraph 2.33 a new entity would be established in the department of Pando. 2.42 Since it will take time to prepare all entities for regionalized operation, it is suggested that one or more of the departments with well functioning water supply and sewerage entities be singled out as a pilot region to be operated on a regional basis by June 1975. This would provide a sound base on which to determine the appropriate timing for, and most effective manner of, successfully implementing Phase II. The expertise and experience of CORPAGUAS would be fully utilized by the Executive Secretariat and regional units, and the Ministry of Health would be better able with its staff to provide technical assistance to the Executive Secretariat as well as to properly exercise its role in the surveillance and control of water quality in the rural and urban areas of the country. Recommendations 2.43 It is recommended that the Government: (i) utilize the Housing Bank (paragraphs 2.28 and 2.29) as the single and central entity responsible for the execution of all sector activities within the sector development policy and goals as established by the Minister of Housing and Urban Planning; - 18 - (ii) adopt the two-phased organizational plan proposed (paragraphs 2.31 to 2.42 inclusive, and Charts 1 and 2), giving early and serious consideration to the suggested implementation dates of Phase I and Phase II. Water Supply and Sewerage Services General 2.44 Of the total country population of 5,300,000, approximately 1,150,000 were served by pipe distributed water supplies, or less than 22 percent (Table 17, Appendix 6), 850,000 being served through house connected supplies, or 16 percent, and an estimated 300,000 having easy access through public taps or less than six percent. 1/ 2.45 Within these percentages of coverage, however, there are many de- ficiencies with regard to water quality and quantity, as well as to service and physical condition of existing systems. The physical, chemical and bacteriological quality is not adequate, with only 50 percent of the exist- ing water treatment plants in operation, and only a negligible percentage of the water supply systems employing any kind of disinfection; most systems have no treatment at all; continuous water service is rare, some communities hav- ing no more than two hours per day; insufficient water pressures exist in many systems; transmission and distribution networks are in bad condition, permit- ting water losses in some cases up to 60 percent and facilitating contamina- tion of supplies prior to reaching the consumer; very low percentage of the population is house connected, etc. 2.46 Of the country's total population of 5,300,000 only 530,000 or 10 percent have some type of domestic waste disposal (Table 18, Appendix 6); 420,000 or less than 8 percent are served by public sewerage exclusively in the urban area, while an additional 110,000 or slightly in excess of 2 percent in the rural area are served by other systems of individual waste disposal, ranging from septic tank systems to sanitary latrines. These figures give some indication of the gravity of the situation, especially in urban areas where public water supply systems are in operation and the need for waste water disposal is becoming increasingly critical, but where there are no organized systems for the collection and disposal of such domestic wastes. Further, this situation is not likely to improve in the near future due to the absence of adequate short- or medium-range policies or plans to alleviate existing conditions. 2.47 Bolivia compares poorly with other Latin American countries in terms of water supply and sewerage coverage: 1/ Easy access is defined as a distance from user to public tap of 200 to 250 meters. - 19 - Latin America and the Caribbean Countries 1/ in: Commnunities Served with Water Supply and Sewerage 2/(thousands) Water Supply 3/ Urban Sewerage & Rural Sanitation 4/ Countries - _ - ._ Total Total Total | Total Total Total Urban Rural Couizx Urban Rural Country _~ o l t Pob %Pob. Pob. % Pob. % Pob. % Pob0 | Bolivia 1,000 55 151 4 1,152 22 420 23 112 3 532 10 Chile 5,000 69 250 9 5025o 53 NA - INA - NA - aerru 41,200 60 500 7 4,-0oo 34 3,800 54 1,000 15 458oo .!35 iEcuador 1,S10 7!+ |244 |6 2,054 33 1,383 57 NA - 1,383 j22 ,olombia 143 88 2,680 131 14,173 65 9,817 75 3,060 35 12,877 159 jParaguay 187 20 81 | 5 268 |11 131 14, tA _ 131 ; 5 *Iruguay 2,163 95 / 60 }i0 o 2,' 23 77 2,135 93 66 1 2,201 176 { Costa Rica 657 98 639 55 |1,(6 171 442 66 467 40 909 j50 El 3alvadorI 986 |68 4'26 |21 1!t22140 917 164 272 13H 1.189 54 Guatemala 11583 198| 425 112 |2 0C8 139 808 50 515 Ki4 1,232 126 | 238 93 A NA - NA Haiti 616 764 jN |4 616 70 6 1 2 137 _ I _ _. 2/ Statistics from the World Health Organization Manual, WHO/Geneva, Vol. 26, No. ll, 1973. L/ 1970 figures for all countries except Bolivia, where figures are from 1973. y Population served defined as those served by house connections, public standpipes or with easy access. S/ Urban population served defined as those served by public collecting systems or individual systems, such as septic tanks. Rural popu- lation served defined as those served by septic tanks, latrines, etc. 2.48 The lack of coverage and quality of service in water supply and sewerage is in part due to the following technical limitations: (a) the lack of design criteria, standards and construction specifications, as well as an absence of preliminary engineering, feasibility studies, and final design on many projects; (b) the lack of adequate operation and maintenance of existing systems, it being estimated that less than 10 percent of exist- ing systems have proper operation and maintenance attention; and (c) the non-existence at national and local levels of any water resource informa- tion and data on which to base future projects. 2.49 An important factor to be considered in achieving coverage in the sector is that Bolivia is basically a rural country with 66 percent of its population located in the rural areas, and that even the smaller and minor towns that are now classified as urban are rural in their characteristics, with low socioeconomic levels. This condition is not likely to change in the forseeable future. Consequently, efforts to improve overall coverage of water supply and sanitation services in the rural and minor urban towns' would be emphasized. Additionally, efforts to provide improved rural cover- age must be compatible with the concept of regrouping dispersed populations into more manageable conglomerates. 2.50 The development and execution of improved operation and maintenance programmes and procedures in the sector by all agencies should be especially stressed in order to prevent early systems' deterioration and improve the quality and continuity of consumer service. 2.51 The operation and maintenance of water supply and sewerage sys- tems, while remaining a local responsibility, will need close support and supervision from a central entity, the Housing Bank and its Executive Secretariat, and from regional offices of that entity when eventually established for easier communication and supply of materials and equipment. Attention should be given in 1974 and 1975 to efforts to substantially im- prove operation and maintenance services through the training of all staff at all levels (paragraph 2.96) and the establishment of operational pro- cedures for regular systems' maintenance not only in each of the eight auto- nomous entities operating in the urban area but also in CORPAGUAS which has responsibilities in both urban and rural areas. 2.52 in that part of the rural area under the jurisdiction of the Ministry of Public Health, operation and maintenance should continue as at present, this service being provided by local community cooperatives or administrative boards. The Housing Bank should provide supervision and technical assistance when needed and aid in the training of staff. 2.53 The suggested quality objectives for the sector in rural and urban water supply with respect to: (a) type of service; (b) per capita consump- tion; (c) physical, chemical and bacteriological quality; (d) hours of daily service; (e) minimum allowed pressures; and (f) fire protection service are - 21 - shown in Table D, Appendix 9. Such service quality objectives have been es- tablished with the basic premise of providing safe piped distributed water supply to the maximum number of rural and urban inhabitants, in adequate amounts to satisfy health requirements and improve sanitation in the home and the community. Urban Water Supply 2.54 Of the 108 urban communities (Table 19, Appendix 6), only 37 have public water supply systems in various conditions of adequacy, serving an estimated 1,020,000 inhabitants, slightly over 55 percent of the urban population or around 19 percent of the total population of the country; some 800,000 or 44.5 percent are served through house connections and almost 20,000 or 11.0 percent having easy access through public taps. 2.55 Reliable information regarding water demands, production and actual consumption is rot available because .only a few of the 37 water supply systems had metered their daily production, let alone the consumption through house connections or public taps. However, estimations that are considered to be fairly accurate have been made in the public watersupply systems in the capital cities of the nine departments that cover approximately 75 percent of the urban population. Considering average losses or unaccounted for water of 40 percent, the daily per capita consumption is in the order of 100 liters. 2.56 In the great majority of the water supply systems, operation and maintenance is very deficient or non-existent. Sixty percent of the systems are gravity operated, requiring only a minimum of attention and, therefore, the need for operation and maintenance has not been made apparent. However, in the remaining systems, which all employ pumping equipment, etc., the lack of adequate and regular operation and maintenance is rapidly becoming a major problem. In none of the autonomous authorities, except in Santa Cruz, La Paz and Sucre, are there any operation and maintenance programmes, with the consequent deterioration of equipment and appurtenances, resulting in very poor conditions of service. Deficient operation and maintenance cause par- ticularly serious sanitary problems in Cochabamba, Oruro, Potosi, Tarija and Trinidad. 2.57 Of the 37 water supply systems, seven have surface water sources and of these, only two, La Paz and Sucre, have water treatment plants in operation. With the exception of only three water supply systems, La Paz, Sucre and Santa Cruz, the remaining 34 systems do not employ any system of disinfection or bacteriological quality control. 2.58 The water supply systems generally constructed in the 1920's by the municipalities used design criteria and standards based on those employed in that period, and consequently they are considered somewhat outmoded today. Over the last ten years, design criteria and standards have been utilized that are compatible with the requirements of international lending agencies. - 22 - Per capita daily consumption figures of 100 to litres are used. 1/ The water supply systems that have been constructed for the nine capital cities of the departments, decentralized organizations, public works committees and partially for CORPAGUAS were executed by construction firms contracted through competitive bidding. The preliminary engineering, feasibility, and final designs for most large systems were completed under contracts with national and foreign consulting engineering firms, while the designs for minor water supply systems were done by the entity responsible for project execution, e.g. CORPAGUAS. 2.59 It must be noted that, due to the lack of adequate public education campaigns and public relations with the urban populations, various basic sanitation programmes and their needs and importance are not made known to the general public. Consequently, this makes it extremely difficult to enlist community support in any improvement programme. Urban Sewerage 2.60 As of June 1973, approximately 420,000 inhabitants in the urban area or less than 24 percent were served by public sewerage (Table 20, Appendix 6). This is less than 8 percent of the total population. Of the 108 urban commu- nities in the country, only eight cities have public sewerage and, in each of these, the sewerage systems offer only partial coverage, usually the central and commercial areas of the towns. 2.61 Only the city of Santa Cruz has sewage treatment (primary) in the form of oxidation lagoons; the remaining seven cities discharge their sewage effluents directly to the most conveniently available water courses, such effluents in many instances being utilized for irrigation or even domestic purposes downstream of the discharges. 2.62 The majority of the sewerage systems have been constructed between 1920 and 1940, and since then have not been extended or improved with consequent serious sanitary problems resulting. Separate systems, sewerage and storm drains were initially constructed, but tlhrough the years with sewerage service demands increasing and the very slight possibility existing of securing new works, the separate systems were gradually operated as combined systems, with consequent sanitary problems. Rural Water Supply 2/ 2.63 Of the 457 rural communities (see paragraph 2.A8), only 83 have any kind of public water systems which serve an estimated population of 151,000 or 1/ See Table D, Appendix 9, Service Quality Criteria. The Table suggests certain broad criteria in accordance with the classification of the area to be served. Detailed design criteria would have to be the subject of further study by the Executive Secretariat of the Housing Bank. 2/ Population range: 200 to 2,000 inhabitants. - 23 - less than 4.5 percent of the total rural population; 53,000 or about 1.5 per- cent are served through house connections, and 98,000 or less than 3.0 per- cent have easy access to public standpipes and/or protected common wells. 2.64 Of the 98,000 inhabitants that are served by public standpipcs and common wells, 22,000 or about 0.6 percent of the rural population are served by public standpipes, while an estimated 730 wells provide water at well sites to 76,000 inhabitants. It is therefore indicated that only 2.1 percent of the rural population or approximately 75,000 inhabitants have the benefits of piped distributed water supplies, thus clearly delineating one of the nation's most urgent needs. 2.65 The remaining 374 communities with some 45,000 inhabitants and the balance of the dispersed population of 2,900,000 have no piped distributed supplies nor any safely protected common wells. This group of rural inhabi- tants, constituting over 95 percent of the rural sector and 63 percent of the nation's total population, obtains water from unprotected sources, such as rivers, creeks, streams, dug wells, ponds, etc. 2.66 In the rural area, the public water supply systems have been con- structed principally by CORPAGUAS, and, to a lesser extent, by the Ministry of Public Health, the National Community Development Service and the Civic Action Agency of the Armed Forces. In the provision of protected common wells, these, in the majority of cases, have been constructed by the Ministry of Public Health. CORPAGUAS executes its work mainly by contract with outside firms and some forced account within its own agency. The Ministry of Public Health constructs its works exclusively with community self-help labour under forced account within the Ministry. 2.67 The design criteria and standards in use in this sector have also been varied. While CORPAGUAS has designed its systems using daily per capita consumption of 40 to 100 litres, the Ministry of Public Health used daily per capita consumption of up to 10 litres from dug well supplies. The other entities, i.e. Community Development Service and Civic Action, use their own standards and construction methods depending upon the pressure and demands by the com- munities for public water supply services. Information regarding such stand- ards is not available. 2.68 The control of water quality in the rural sector is not consistent. Physical and chemical water quality is controlled in the water supply systems executed by CORPAGUAS and the Ministry of Public Health. There is no bacter- iological quality control of finished water exercised by.any of the four entities mentiored above. In spite of having disinfection equipment in various water supply systems, the equipment is not operational, and in fact disinfection is not practised by any of the agencies responsible for rural water supplies. Consequently, the safeness or bacteriological quality of the rural water remains doubtful, even though the raw water sources generally are protected to some degree. - 24 - 2.69 In the water supply systems constructed by CORPAGUAS, generally between 40 to 80 percent of the population are served by house connections. Information is not available in this respect for systems installed by the Community Development Service and Civic Action agencies, while the systems executed by the Ministry of Public Health in most cases consist simply of dug or drilled wells and public standpipes. In systems involving pumping, the pressures in the distribution networks and the daily hours of service have wide ranges, and, in most cases, do not meet even minimal standards. 2.70 There is no information on the production and consumption of water in the rural area. The design parameters are quite low and the majority of the drilled wells or groundwater sources have relatively small yields, usually insufficient for the requirements. 2.71 Operation and maintenance of water supply systems is sporadic. When provided, it is carried out by local cooperatives with supervision by CORP4GUAS and the Ministry of Public Health. This arrangement is inefficient and should be improved. 2.72 In relation to rural water supplies where self-help labour is employed, there are two points that must be noted: (a) the community self-help labour, provided in a majority of the schemes, represents an estimated 20 percent of the capital investment; and (b) the operation, maintenance and administration of the systems on the part of the community, without help or support from the central Government, even with its imperfections is much better than would be expected, and should be continously encouraged and reinforced whenever possible. Rural Sewerage and Excreta Disposal 2.73 Domestic waste disposal in the rural area is in the form of individual excreta disposal facilities, such as septic tank systems, seepage pits, sanitary latrines, etc., there being no systems of public sewerage. An organized pro- gramme of rural sanitation was developed by the Ministry of Public Health in 1970, and until that year very little, if any, attention was given to sanitation in the rural area. At the present time, an estimated population of 112,000 or about 3.2 percent of the rural population are served by some form of excreta disposal. This is only slightly in excess of 2 percent of the total population. 2.74 The Ministry of Public Health is the only entity in Government at the moment that has programmed activities in this field. Special emphasis is being given to installation of adequate facilities in the rural schools, sanitary units, health clinics, etc. Operation and maintenance of these units is in the hands of the users with supervision provided by the Division of Environmental Sanitation of the Ministry of Public Health. Individual units are cared for by their users with the same type of supervision as provided to the schools, etc. but, of course, not as efficiently due to the dispersed character of the population and the number of units involved. Hence, the success of the programme depends on educating the public in the proper use and maintenance of such facilities. - 25 - Recommendations 2.75 It is recommended that the Government: (i) implement the suggested capital investment and institutional development programme and make appropriate provisions for counterpart funds and recurrent expenditures as detailed in paragraphs 4.05 to 4.32 inclusive, and in Tables I, II, III and IV; and (ii) request assistance from international multilateral agencies and bilateral aid countries for the provision of technical and financial assistance required in the implementation of the capital investment programme, and for similar provision of organizational, management and technical assistance to the Housing and Construction Bank, its Executive Secretariat and the various autonomous agencies operating in the sector in the implementation of the institutional development programme. 1/ Financial Aspects General 2.76 The financial situation of the sector is characterized by a short- age of funds that has not permitted development of programmes adequate to serve an appreciable percentage of the population. The principal reasons for this are summarized as follows: (a) insufficient revenues are generated by water supply and sewerage service charges which, for the majority of the Government agencies, autonomous entities or local administrations, do not cover even the cost of administration or of systems operation and maintenance; (b) the shortage of Government budgetary funds and/or counterpart funds to match existing external financial assistance makes it impossible for the Government to support the development of water supply and sewerage programmes to the extent that would be desirable Internal Sources of Finance 2.77 With the possible exceptions of SAMAPA in La Paz, ELAPAS in Sucre, and the Public Works Committee acting for SAGUAPAC in Santa Cruz, all of wlhom are attempting to implement more adequate tariff structures, other entities active in the sector are short of investment and operational funds. This lack, of course, imposes severe limitations on current projects and on the planning of extensions and improvements urgently needed in the immediate 1/ Details of the assistance required for institutional improvement to the various organizations and agencies are briefly summarized in programme Data Sheets 009 to 016, inclusive. A strongly recommended approach or- method of programming this assistance is provided in paragraphs 4.21 to 4.23 inclusive. - 26 - future. In sewqerage, with the exception of the Department of Santa Cruz, which has the greatest and most available financial resources in the country, the total income from sewerage service charges in all of the remaining auto- nomous entities only covers a small percentage of the expenditures required for minimal systems' operation and maintenance. 2.78 The entire sector of water supply and sewerage is subsidized 1/ by the Government in one form or another. 2.79 The Government is concerned about this inadequacy, and recently has created a National Tariff Council that will be responsible for providing technical assistance in the formulation of adequate tariff structures, and coordinate and supervise this work in each region of the country. 2.80 There have been sporadic attempts to improve tariff structures in the cities of La Paz, Santa Cruz and Sucre, but to date for political reasons among others, these studies have not been completely implemented. The auto- nomous authorities of SELA, ELAPAS and SAGUAPAC (Santa Cruz), the latter not yet in operation, have water rate structures classified by domestic, commer- cial and industrial categories, with rates based on additional charges for excess water used over the basic limits. The other agencies have water rate structures based on a fixed price per cubic meter consumed, or based upon real property values, as in the case of sewerage service charges. Most tariff structures neither consider ability to pay nor the costs required for adminis- tration, operation and maintenance (Table 22, Appendix 7). 2.81 The majority of the autonomous authorities operating in the larger cities have sewerage service charges based on real property vlaues, e.g. SAMAPA, SELA, ELAPAS, SEMAPA, AAPOS and CORPAGUAS. The listings of regis- tered property owners in the cities and communities in which the aforemen- tioned authorities operate are completely obsolete and are not accurately maintained. Consequently, it is practically impossible to identify and bill clients correctly or to enforce payment, resulting in constant shortages in collections. In the cities of La Paz and Santa Cruz a revision of the prop- erty listings is underway in an effort to improve the situation. 2.82 The generation of adequate revenues through water rates and sewerage service charges should receive high priority, with major emphasis to study and restructure tariffs and create revolving funds to enable to sector to operate on a financially self-supporting basis to the maximum extent possible. Progrmmes for the installation of meters should be studied and recommended for those systems where it proves to be economically and engineeringly justified. 1/ All of the autonomous entities, with the exception of SAMAPA in La Paz and the Public Works Committee acting for SAGUAPAC in Santa Cruz, receive subsidies from the Central Government, from department development committees, from local municipal governments, or, in some cases, from all three simultaneously. The exceptions noted above receive subsidies from either department Public Works Committees or local municipal governments. - 27 - 2.83 Generally, any water rates proposed should be determined to the maximum extent possible on an individual system basis, the cost of the fin- ished water, the consumption, number of consumers and their capacity to pay, etc. This would vary with locale or region and with the size of the commu- nity, town or city. 2.84 The tariff policy able to generate adequate revenues would probably call for substantial increases in existing tariffs and could, therefore, be expected to arouse the resistence of water consumers accustomed to the tradi- tional idea that the provision of water supply is an obligation of the National Government. Such tariff increases would have to be implemented gradually, and a programme of public education in tariff rates and policies through the various communication media should be strongly pursued. 2.85 The following types of water rates are suggested as an objective for the medium term (3-5 years) or until a more accurate basis will be deter- mined through tariff studies: (a) in cities of 150,000 to 1,000,000 inhabitants, water rates would cover administration, operation and maintenance costs, principal and interest payments on capital investment loans, depreciation to allow for certain system improvements and extensions; cities in this classification are La Paz, Cocha- bamba and Santa Cruz; (b) in cities of 10,000 to 150,000 inhabitants, water rates would cover all items as shown in (a), with the exception of depreci- ation; these cities include Oruro, Potosi, Sucre, Tarija, Trinidad, Camiri, Riberalta, Montero, Vallaquz, Villazon, Huanuni, Quilla- collo, Uyuni, Viacha and Tupiza; (c) in communities with 2,000 to 10,000 inhabitants, water rates would cover only administration, operation and maintenance costs, and principal payments on capital investment loans; and (d) in communities of less than 2,000 inhabitants, essentially small rural villages or population conglomerates, water rates would cover only basic system costs, those being costs of operation and maintenance. Other expenditures or costs in- volved would be subsidized by the Government. 14herever possible, however, water rates would also cover administration costs and principal payments on loans. Recommendations 2.86 It is recommended that the Government: (i) implement tariff studies including socioeconomic aspects in the urban and rural areas to provide a basis for invest- ment decisions and for a rational and equitable tariff policy (paragraphs 2.82 to 2.84 inclusive); and - 28 - (ii) design and implement tariff structures based on the studies recommended in paragraph 2.86 (i), or (in case no studies exist) tariffs based on the guidelines outlined in paragraph 2.85 (a-d). Metering and Control of Consumption 2.87 There is no national policy on the metering of public water supplies and, consequently, there are no guidelines to be followed by the agencies operating in the sector. The individual entities that have considered or are considering the installation of water meters in their water supply systems must formulate their own policy and programme. Very few meters are installed in the country. This lack of meters is inconsistent with the fact that in the majority of the autonomous entities, existing water rates are based on the monthly per cubic metre consumption of the consumer. It follows in most cases that such consumption has to be estimated, and that it can be estimated accurately is extremely doubtful. Since unaccounted for water ranges anywhere from 40 to 70 percent of system production, adequate revenues can hardly be generated under such loose conditions of control, nor can any base for the establishment of fair and equitable water rates be developed. 2.88 Only the public water supply systems in the cities of Santa Cruz and partially in La Paz and Sucre have any organized programme of metering the production and consumption of water. Cochabamba and Potosi have been acquiring meters, but at present no programme has been organized for their installation. In the remaining cities and communities of the country, there are no programmes for metering public water supply systems. In the case of La Paz, the metering installation programme is progressing very slowly, and is not expected to have an appreciable percentage of coverage for another four to five years. 2.89 A national plan for metering of public water supply systems was required by the end of 1974, which should include an installation programme for the period 1974-1980. Metering studies in various cities are necessary in order to formulate the plan. The national plan should be initially implemented in the major cities of the country. In line with meter installa- tion, it will also be necessary to train technician and skilled labour per- sonnel in the various agencies and cities involved in the installation programme in meter operation, repair and maintenance. 2.90 Before the results of metering studies are available, the follow- ing guidelines are suggested: (a) in cities of 150,000 to 1,000,000 population, 60 percent of the consumer connections should be metered, with meters installed in the following sequential order by consumer categories: industrial, commercial and domestic in successive steps from heavy to light consumers. The cities in this classi- fication are La Paz, Cochabamba and Santa Cruz. In the case of - 29 - Santa Cruz, already 60 percent metered the target should be increased to 80 percent; (b) in cities of 10,000 to 150,000 population, 30 percent of the consumer connections should be metered with the same meter installation schedule by consumer categories as suggested in (a) above. Of the communities in this classification, which are too numerous to list, Potosi and Sucre have already acquired water meters, but have not initiated their installation. They are planning, however, to begin an installation programme in a short time. In the case of these two cities, the suggested goal should be increased to 40 percent; and (c) in communities having less than 10,000 inhabitants a metering policy must be further studied to provide the most practical plan to follow. An average goal of 5 percent would appear to be reasonable with, of course, the metering of industrial, commercial and domestic categories proceeding 4n that order or, failing such categories, proceeding with installations from heavy to light consumers. Recommendations 2.91 It is recommended that the Government: (i) implement metering studies in the urban and rural areas to provide the basis for establishing a national policy on metering and for the development of a national metering plan by the end of 1974. The plan will include an installation programme for the period 1974-1980 (paragraphs 2.89 and 2.90 (a-c)); and (ii) develop and conduct, parallel to the metering programme, training programmes in meter operation, repair and mainte- nance (paragraph 2.89). External Sources of Finance 2.92 As in other developing countries, Bolivia has had to rely on external assistance, both technical and financial, in order to compensate for shortages in material and manpower resources. Substantial external assistance has been provided in water supply and sanitation by various international multilateral agencies, such as the Interamerican Development Bank (IDB), UNICEF and WHO/ PAHO, and bilateral aid countries such as the Federal Republic of Germany, France, USAID and Great Britain. 2.93 Technical and financial assistance during the past five years, which is still continuing, has amounted to approximately US$57.35 million - US$16 million from multilateral agencies and US$41.35 million from bilateral - 30 - aid countries. The following is a resume of this assistance in the water supply and sanitation sector. (a) The Interamerican Development Bank (IDB) has made loans to the country over the last five years in the amount of US$15.5 million. Of this amount, 74 percent has been utilized in water supply and the remaining amount in sewerage. It is estimated that a population of 415,000 will have benefitted from the in- vestment programme financed in part by the Bank loans. The loans were distributed in the following manner: US$3.8 mil- lion to Cochabamba for water supply; to Santa Cruz US$2.6 mil- lion for water supply; to Potosi US$1.4 million for water sup- ply; and US$1.8 million to CORPAGUAS for water supplies in 70 communities. The majority of the programmes have been delayed for approximately two years. 1/ For technical reasons, among others, additional delays of a serious nature are ex- pected. The Government is asking the Bank to advance the date for granting a new loan of US$5.0 million, of which US$3.5 million is destined for sewerage in La Paz and the balance for water supply and sewerage studies in the cities of Cochabamba, Oruro, Sucre, Trinidad, Riberalta and Tarija. The new loan would be on soft terms. 2/ The payment of interest on the loans granted to the cities of Cochabamba, Oruro, Potosi and La Paz by the Interamerican Development Bank has been made from funds provided by the Central Government due to the inability of the autonomous authorities representing these cities to generate the necessary revenues through water rates, etc. At the same time, due to technical delays and, again, the inability of government agencies to provide the required coun- terpart funds, the loans have not been disbursed in the manner anticipated at the time the loans were contracted. (b) The Federal Republic of Germany is providing technical and financial assistance through a loan of DM 56.5 million, 3/ equivalent to US$23.0 million, to the city of La Paz (SAMAPA) for the water supply system. These works have been completed and bring additional benefits to approximately 450,000 inhabi- tants. Under negotiation at present is a new loan of DM 36.0 million, 4/ equivalent to US$14.5 million, for the second stage 1/ By September 1974, of the loans committed in 1968 and 1972 to Cochabamba and Potosi, only 30 percent had been disbursed to Cochabamba and 50 per- cent to Potosi. Both loans were to be fully disbursed by January 25, 1974. 2/ Annual interest of 2.0 percent, loan terms of 30 years, interest during 10-vear grace period of 1.0 percent, and commission of 0.5 percent on committed but undisbursed funds. 3/ First loan term of 30 years, 10-year grace period, annual interest of 2.0 percent, and commission of 0.25 percent on undisbursed funds. 4/ Second loan term of 25 years, 10-year grace period, annual interest of 3.0 percent, and commission of 0.25 percent on undisbursed funds. - 31 - of the water supply project. The loan has been signed by both Governments and its manner of implementation is under study. The Federal Republic of Germany, through its Embassy in La Paz, has expressed a special interest in other water supply projects that may be formulated, particularly rural water supply, and would want to receive for their review and possible future assistance at the earliest possible date any project or proj- ects requiring technical and financial assistance. (c) The French Government has made one loan to Bolivia, in the amount of US$2.15 million, for improvements and extensions to the water supply system and construction of a new water treatment plant in the city of Sucre. This work has been completed. The French Government is interested in the more commercially-oriented types of assistance calling for very short-term financing over periods of five years with annual interest in the range of 5.0 to 7.0 percent. They have no future plans for assistance in the water supply and sewerage sector. (d) The British Government has not to date provided any tech- nical or financial assistance in the water supply and sewerage sector. The city of La Paz, through the Bolivian Government, has discussed the possibility of the British Government conducting an engineering feasibility study in connection with sewerage for La Paz. The study was not made since a similar study had been made in 1965 by a German consulting firm under technical assistance from the Federal Republic of Germany. However, new negotiations are likely to take place in the near future regarding this matter. At the present time, the British Government is not in a position to provide financial assistance for systems construction, but would be interested in providing technical assistance through British consultants and contractors for projects in which the financing had already been secured. They also may be interested in financing and executing pre- investment projects in rural and/or urban water supply and sewerage projects, and have requested that any such projects formulated be submitted to them for their review and possible action. (e) The USAID is providing varied technical and financial assistance to water supply and sewerage projects, costing an estimated US$17.9 million. Of this amount, assistance is provided in the form of grants to projects costing US$3.0 million, while the remaining projects are receiving assistance from loan funds to work estimated at US$14.9 million. As of September 1973, work being financed from grant funds was prac- tically completed with US$2.9 million expended of the US$3.0 - 32 - million, while progress of the work being financed from loans was around 32 percent completed. Of the 44 communities bene- fitting from this assistance, 41 communities have water sup- ply projects and three have sewerage projects. It was not possible to determine the actual value of the technical and financial assistance provided by the water supply and sew- erage projects, but it is estimated at US$1.7 million. The funds are provided from loans and grants to the Government: Development Programme Loan No. 511-L-045, US$20 million; Emergency Project Loan No. 511-L-041, US$12 million; and Emergency Project Grant No. 511-N-610, US$2 million. The loans and grants are used by the Government to develop the productive sectors and the economic and social infrastruc- ture of the country. (f) UNICEF has over the past years provided technical and material assistance to the Ministry of Public Health in an estimated amount of US$200,000. Well drilling rigs, vehicles, and other equipment have been given for use in rural community development programmes. This assistance continues. (g) The Pan American Health Organization has provided in the period 1970-1973 technical and financial assistance in the amount of approximately US$300,000, proportioned in the following manner: US$180,000 in technical assistance for professional staff and consultants in sanitary engineering and administration and management; US$75,000 in fellowships and training; US$5,500 in supplies and equipment; and US$39,500 in grant funds to create revolving fund systems for assisting in the financing of rural water supply facili- ties. Assistance from the Organization continues. Manpower and Training Aspects 2.94 There is a shortage of specialized technical-administrative personnel in the country. The actual number of the total personnel types working in water supply and sewerage could not be determined precisely. Partial informa- tion, however, was secured covering the numbers of professionals, technicians, etc. (Table E, Appendix 9). 2.95 There are approximately 1,150 1/ personnel in Government Ministries, autonomous agencies and Public Works Committees working in the water supply and sanitation sector. Of the 109 professionals within this group, 16 are sanitary engineers, 63 are civil engineers and 30 are other professionals, some of whom may be engineers who work only part-time. In addition, there are 292 technicians and 79 administrative personnel of which 30 are considered professionals. It is estimated that there are over 400 auxiliary personnel in administrative work and 250 skilled labourers working in the sector. 1/ Estimate only. Table E, Appendix 9, identifies 884 of the 1,150. - 33 - 2.96 Among the factors contributing to the shortage of skilled manpower are: (a) a salary structure which by comparison with other sectors is not attractive to professional personnel; (b) the lack of national training programmes of a permanent nature for administrative personnel in the various auto- nomous utility agencies having responsibilities in the water supply and sewerage sector; (c) the shortage of training or educational centers in tech- nical matters at the professional and technician levels with specialization in water supply and sanitation; and (d) the lack of a short- and long-term policy for the develop- ment of professional and administrative personnel in the sector. 2.97 Academic courses in sanitary engineering at the post-graduate level are provided by foreign universities and institutions. Within the country, only short courses of 15 days to one month in special sanitary engineering subjects at the graduate level are given at the Institute of Sanitary Engineer- ing of the University of San Andreas in La Paz and at the University of Oruro. There is a shortage of courses available in the country aimed at providing specialized training in sanitary engineering subjects to civil engineers in the field of sanitary engineering, especially water supply and sewerage. Substantial numbers of professionals could be made available for work in the sector by specialist training and preparation through intensive courses of 3 to 4 months' duration. The only education facility for the training of technician and skilled labour levels of personnel is the Institute of Sanitary Engiaeering in La Paz, where there are specialized courses in the various skills required in systems' operation and maintenance. 2.98 In relation to utility management, technical assistance has been provided by international multilateral agencies and foreign management firms to improve internal administration and management, train personnel, etc. such assistance includes that provided by the Pan American Health Organization to CORPAGUAS, SE1APA, SELA and AAPOS and by a private foreign firm contracted to assist SAGUAPAC in Santa Cruz. There have not been any national firms engaged in these activities. The per capita cost of such technical assistance in management varies from US$3.00 to US$4.00 for the urban area and about US$1.00 for the rural area. 2.99 During the period 1974-1980, there is an estimated need for some 970 additional staff in the various disciplines, such as engineers, technicians, administrative and auxiliary personnel, skilled labourers, etc. Table F-1, Appendix 9, shows the annual requirements of new staff by years and discipline. A suggested training programme has been outlined which attempts to cover the aforementioned needs. The programme would provide training to 970 personnel - 34 - over the 7-year period at an investment of US$270,000. Table F-2, Appendix 9, shows the numbers and types of personnel to be trained, together with the estimated programme costs. Details of the training programme are provided in Programme Data Sheet 009. 2.100 The training programme would be prepared, coordinated and supervised by the Executive Secretariat of the Housing Bank in collaboration with Gov- ernment ministries and autonomous agencies. Outside assistance could be requested from the Pan American Health Organization (PAHO) and other multi- lateral and bilateral technical assistance agencies. It is suggested that training in the various disciplines be provided by: (a) Sanitary Engineering Institute, University of San Andreas, La Paz (sanitary engineers, administrative personnel and technicians); (b) School of Public Health, Ministry of Public Health (technicians, sanitary inspectors); (c) autonomous agencies and Public Works Committees 1/ (all types of skilled labourers and in-service train- ing for technicians); and (d) Pan American HIealth Organization/World Health Organization; short courses in various disciplines for professionals (technicians, academic fellowships for professionals). 2.101 In addition to the training programme, it is necessary that the Government (a) develop a plan to attract qualified professionals to govern- ment service by providing more competitive salaries and economic benefits and (b) establish a policy that provides stability to government employment by providing more incentive, opportunity and security to the job. Recommendations 2.102 It is recommended that the Government: (i) institute a permanent training programme for Bolivian person- nel at all levels as called for in the institutional develop- ment programme in paragraph 4.21, fully taking into account the present deficiencies, considerations and suggestions discussed in paragraphs 2.94 to 2.101 inclusive; and 1/ Each of the autonomous agencies and Public Works Committees will have to be examined to determine Very precisely the present situation in their operation and maintenance departments, and their capacity to provide an in-service type of training. Based on these findings, a training programme must then be developed and appropriate site selection made for such training. - 35 - (ii) plan to begin the training programme at the earliest possible date, but integrate it with and parallel it to the other institutional development components. The programme should continue in operation for the full development period, 1974-1980. Public Relations and Education 2.103 An important factor for the successful financing and execution of water supply and sewerage projects is the education of the general public regarding the benefits of such activities in order to motivate them to pay economical and equitable water rates and sewerage service charges. The general public must be kept informed through the various communication media regarding new water supplies and sewerage facilities or extensions as well as improvements to the existing systems, the resulting benefits, the costs involved in providing these services and the importance to the community of their participation and support. At present there are no organized public relations programmes in the sector. The high rate of illiteracy among the general population makes such public relation efforts and educational programmes extremely complicated and important. Recommendations 2.104 It is recommended that the Government: (i) develop and prepare a public relations and general education programme relative to water supply and sanitation activities, and that such a programme be prepared at an early date by the Housing Bank. The programme would be used for the Housing Bank as well as for relevant Ministries and the various autonomous agencies. Engineering Consultants and Contractors 2.105 There appears to be sufficient numbers of private consulting engi- neering firms and contractors competent to work in the projects now under development in the country; these projects are concerned with rather simple conventional problems of design and construction. However, in the design and construction of more complicated works like treatment processes and plants, foreign firms would be called in to collaborate with the local firms, and this arrangement would probably continue for many years in the future. 2.106 There are in operation to date 10 national consulting engineering firms in the private sector and 15 contracting firms in the field of construc- tion. The consulting firms employ approximately 35 engineers. Information as to the numbers of professionals on the staffs of the contracting firms is not available. 2.107 The preparation of pre-feasibility studies as well as preliminary and final engineering designs are executed by the national consulting firms, - 36 - which, in almost all cases, are associated with foreign firms. Further, when financing is provided by international multilateral agehcies or from bilateral aid countries, foreign consulting firms are used almost exclusively. 2.108 National and/or foreign consulting firms have been utilized or are currently employed for engineering studies and designs in Oruro (SELA), Santa Cruz (SAGUAPAC), Potosi (AAPOS), Cochabamba (SEMAPA), and La Paz (SAMAPA). Studies and designs for minor cities and communities in the rural area are normally executed by the administrations of the appropriate entities, as in the cases of CORPAGUAS and the Ministry of Public Health. 2.109 The bidding process and subsequent award of contracts in public works, including both water supply and sewerage projects, is cumbersome and slow. Delays in receiving bids once they have been invited and the evaluation procedure prior to award run to many months. It is not abnormal to find that for various reasons the whole process has had to be repeated, thus con- pounding the delays occasioned in theCfirst instance. At times, delays of a month or several weeks hinge merely on the lack of required signatures necessary for the official enactment of approved awards. It must be realized that delays occur even at the end of this process since the successful con- tractor can only begin to order necessary equipment and materials, most of which must be imported, when he is awarded the work and the contract is signed. Thus the construction of the project can be detained from one to two years following the completion of working plans and specifications. Recommendations 2.110 It is recommended that the Government: (i) continue the present practice of employing private consul- ting engineering firms, both national and international, and also continue to use "in-house" expertise wherever possible; (ii) review and study in depth the entire process of public bidding and project award, and ensure that proper legis- lation be prepared and enacted in order to substantially improve the procedure thus benefitting the sector by con- siderable savings in time and money. The study and imple- mentation of recommendations should be undertaken by the Executive Secretariat of the Housing Bank. Construction Materials 2.111 Construction materials used in water supply and sewerage have traditionally been imported. In 1967, the production of plastic pipe (PVC) began with the manufacture of water supply pipe and inside sanitary plumbing pipe and fixtures. At present, there are two plants in La Paz producing plastic pipe, an asbestos-cement plant under consideration in Cochabamba and - 37 - various plants both in the public and private sector manufacturing clay and concrete pipe. Most of the capital investment in the local manufacturing plants is from foreign sources. There are no standards or specifications in effect and no testing of the final product. 2.112 The two manufacturing plants producing PVC pipe could, if the national market demands it, produce up to 1,000 tons per year, which is equi- valent to approximately 2,000 kilometers of 4" diameter, 150 pounds per square inch pressure pipe. The PVC pipe that is now being produced (4" diameter or less) is, wherever possible, replacing asbestos-cement, cast iron and galva- nised iron pipe. In diameters greater than 4", the prevalent pipe is imported. However, at present, the substitution of PVC pipe for the other type is not of great magnitude, and furthermore the replacement process is carried out at a relatively slow pace. 2.113 Domestic manufacturers have successfully produced concrete sewer pipe for the city of La Paz and the Public Works Committee of the Department of Santa Cruz, the former using concrete pipe in diameters up to 0.8 metres and the latter up to 1.5 metres. Medium diameter asbestos-cement pipe is presently imported and even though prime materials are found in the country, the manufacture of this type of pipe is not feasible for the time being. In terms of large diameter pipe and accessories, presently all imported, local manufacture is at least 4 to 5 years away. 2.114 The structural reinforcing steel and other steel products used in the construction of sanitary works is imported in its totality. The cement for the concrete structures is produced in Bolivia at three cement plants, Viacha in La Paz, Sucre in Sucre, the two plants working at 75 percent capacity, and Irpa-Irpa in Cochabamba producing at 60 percent capacity. The cement pro- duced simply covers the requirements of the local market, i.e. cement required in construction in the area where the plant is located. The Public Works Committee of the Department of Santa Cruz is planning the construction and installation of a new cement plant. 2.115 Local sand and gravel used as aggregates in concrete are not always of a good quality and/or are not usually available in correct specification sizes or quantities, and therefore must be transported to job sites at con- siderable cost. Exceptions to this are in special cases of sand required for filter media in water treatment plants. The other materials and equip- ment used in sanitary works, i.e. pumps, accessories, etc., are not produced in the country and must be imported, the exception being the casting of small manholes, covers, etc. which represents a beginning industry. 2.116 The proposed investment programme (paragraph 4.05) contemplates a substantial programme of construction in urban and rural water supplies and urban sewerage, and it is estimated that pipe requirements for the water supply programme will be in the order of 3,000 kilometers in diameters of 2 to 20 inches. No estimates could be made of the sewer pipe requirements. To be able to produce water supply pipe locally would bring considerable savings not only in costs, but also savings in time due to long delays at present in the importation of pipe of certain sizes. Thus a national con- struction materials industry would be extremely beneficial to the country. 2.117 The mission was not able to secure the precise kind and quality of information and data required to analyze the changes needed in existing manufacturing plants or in the new industries required to produce sanitary works equipment and materials in adequate quantity and quality. Neither could it investigate how to promote the development of such an industry. Recommendations 2.118 It is recommended that the Government: (i) conduct a study in concert with the industrial sector and the relevant government agency or agencies to develop a national construction materials industry. The study should be undertaken under the jurisdiction and supervision of the Ministry of Housing and Urban Development with the required technical assistance of the Executive Secretariat of the Housing Bank, or through the Secretariat by an outside firm or group specialized in such matters. Possible international technical and financial assistance for the study could be sponsored by bilateral aid countries or a multilateral agency, e.g. the United Nations Industrial Development Organization (UNIDO) which has conducted similar studies in other countries. III. SECTOR PLANNING AND POLICIES Period: 1950-1970 3.01 Bolivia has always been operating without an established national sector plan in water supply and sewerage, and has had no long or medium-term goals nor well formulated programmes in either the rural or urban areas. The nation has had, however, as a general guide to their efforts in the water supply and sewerage sector, the Punta del Este Charter Goals of the Alliance for Progress Decade formulated in the early 1960's. While the coverage of water supply was not appreciably advanced during the ten years of that period, several important changes took place, e.g. the creation of autonomous author- ities such as CORPAGUAS, SAMAPA, SEMAPA, SELA, etc. in an attempt to re- solve institutional problems in the sector. Period: 1970-1980 3.02 The Five-Year Development Plan (Plan Quinquenal), 1973-1977, con- tains no programs in the water supply and sewerage sector. Instead, the Plan emphasizes such sectors as mining, metallurgy, petroleum, manufacturing industries, etc. - 39 - 3.03 Thie Ministry of Public Hiealth in its Five-Year Health Plan (1973- 1978) contemplates achievement of the water supply and sanitation goals in the rural area as established in the National Rural Water Supply Plan. This national plan proposes to provide in 15 years or by 1985, some 500 communi- ties 1/ with piped water supplies, which would represent a coverage of approx- imately 20 percent of the rural population. 3.04 The goals in the 1970's for the provision of water supply and sanitation services established in Latin America, to which Bolivia has sub- scribed, were set at the Meeting of the Latin American Ministries of Health in Santiago de Chile in October 1972. 2/ It is not possible for Bolivia in its cdurrent position to comply entirely with such goals, but efforts to achieve the maximum possible coverage should be made. The success of these efforts would depend greatly on the removal or minimization of existing in- stitutional (paragraphs 2.16 - 2.43), financial (paragraphs 2.76 - 2.86) and manpower (paragraphs 2.94 - 2.102) sector constraints. Recommendations 3.05 It is recommended that the Government: i) prepare a national sector plan in accordance with the development strategy outlined in Chapter IV (paragraphs 4.01 - 4.04), the planning and programming of all water supply and sanitation activities in the sector to rest with the Ministry of Housing and Urban Development as well as the Housing Bank (paragraphs 2.28 - 2.30) and to be coordinated on a multi-sectoral basis by CONEPLAN; and ii) implement a simple, comprehensive data and information recording, retrieval and reporting system to be developed by the Executive Secretariat of the Housing Bank to pro- vide the basis for an orderly and adequate planning of water supply and sanitation projects. The information and data system should be coordinated with CONEPLAN, the national statistical office, and other agencies so as not to duplicate efforts to collect information and data already on hand. 1/ 2,000 inhabitants or less. 2/ (a) In the urban area to provide 80% of the populatfon with house connected supplies or to reduce by 50% the present population without such service. (b) In the rural area to provide 50% of the population with piped distribu- ted supplies or to reduce by 30% the present population without such ser- vice. (a) In the urban area to provide sewerage service to 70% of the population or to reduce by 30% the present population without such ser- vice. (d) In the rural area to provide adequate domestic waste or excreta disposal facilities to 50% of the population or to reduce by 30% the population without such facilities. - 40 - IV. PROPOSED INVESTMENT PROGRAMME Development Strategy 4.01 The proposed programme for the development of the water supply and sewerage sector has been made for the period 1974-1980 to conform with the period as established in the Meeting of Latin American Ministers of Health held in Santiago de Chile in October 1972 (paragraph 3.04); the coverage of both rural and urban populations with public water supply and sanitation facilities proposed for this period is commensurate with available internal (paragraph 4.24) and external (paragraph 4.31) resources, and it is con- sidered to be within the capacity of the country to reduce or eliminate other limiting constraints so that the proposed goals could be attained. 4.02 The provision of public water supply to the rural area would be stressed since this area is in most urgent need of the service (paragraphs' 2.47, 2.49, 2.63 - 2.65). The present lack of coverage, which has severely limited rural development, justifies this priority. Emphasis would also be placed on urban communities having populations ranging from 2,000 to 50,000 inhabitants, while existing projects underway in the six largest cities in the country would continue. 4.03 Various programmes providing different levels of coverage have been developed and analyzed in accordance with suggested sector development strategy for the period 1974-1980, relative to recommendations for institu- tional development (paragraph 2.43), finance and tariffs (paragraphs 2.86 and 2.91), quality of service (paragraph 2.53), systems' operation and maintenance (paragraphs 2.50 - 2.52), manpower development (paragraph 2.102), and public information (paragraph 2.104). 4.04 The general development strategy (paragraphs 4.01 - 4.03) is followed in the selection of one of three alternative programmes recommended for im- plementation in urban water supply (paragraph 4.09), rural water supply (paragraph 4.13), urban sewerage (paragraph 4.15) and rural sewerage and excreta disposal (paragraph 4.18). Each alternative programme selected, therefore, represents a plan that will provide the maximum possible coverage in terms of the available internal and external financial expenditures, and a plan that takes into account the country's capability of removing or minimizing existing sector constraints. Investment Programme 4.05 The programmes consist of: (a) an institutional development pro- gramme; and (b) a capital investment programme, including funds for required engineering services and systems' construction, extensions and improvements. The investment programme is designed to attain suggested sector goals by 1980. The programme will be implemented in two stages, the first stage 1974-1977, and second stage 1978-1980. - 41 - 4.06 In determining the investment funds required for urban sewerage, rural sanitation and systems' construction of urban and rural water supplies, per capita unit costs were developed based on available information and records of past experience in the construction of sanitary works in the nine departments. The unit cost estimates are supported by national author- ities and are shown in Table C, Appendix 9. High per capita unit costs for water supply and sewerage in the departments of Beni and Pando result from the lack of ground transportation, there being no trains or roads adequate to transport men, materials and equipment into these two areas from the coun- try's commercial centre, La Paz. 4.07 The cost of the recommended investment programme 1/ calls for ex- penditures totalling slightly in excess of US$48 millio during the period 1974-1980. External multilateral/bilateral financial and technical assistance would finance US$27.8 million (paragraph 4.31), 2/ and internal sources would contribute approximately US$20.3 million (paragraph 4.29). 2/ The First Stage 1974-1977 would require a total-of US$30.3 million and Second Stage 1978-1980 a total of US$17.7 million. Of the US$48 million expenditures required for investment in water supply and sanitation, including US$630,000 for institutional development in the sector, US$38.4 million or 80 percent would be utilized in the urban area. A resume of the total investment pro- gramme financial requirements are shown in Table I. Urban Water Supply 4.08 The alternative programmes 3/ when applied to the urban area would provide the following population coverage by 1980: maximum, 77 percent, slightly more than 70 percent increase in present coverage; medium, 67 per- cent, providing almost a 50 percent increase over present coverage; and minimum, 45 percent, which is equal to existing coverage and would merely keep pace with net population growth. The only portion of the urban area that would not be provided with service during the period, regardless of which coverage goal is selected, would be 21 communities in the population range 2,000-10,000, whose 1980 population is estimated at 730,000. 4.09 The medium programme alternative 3/ is considered as the most acceptable in the urban area, and would provide by 1980: 1/ All cost estimates are approximate and tentative. Constant prices: 1973 are used in costing the programmes. 2/ Table I. 3/ The suggested implementation of the programme by years during the period 1974-1980 is shown in Table B, Appendix 9; alternative programme cover- age is shown in Table A, pages 1 and 2, Appendix 9. TAlLE I PC7.7.Y 1.DTh'A 7 .Ct~1 ~YtS~000*. ''"0 *1974 - 117?; 1978 -1930k'r15jrP1,1RI4 Q; G~..-.nt (S.. TABUE I F~olt-.y Note.. .W 'srtIO eih-*. iA IOoo*. jp t; 'Il pr.Ies CooSt..t 1973 level.) u n A N N 1J6IAL RtItAL/UPflIN T 0T AL 3 r.i. 4 WPerwe,PY -reas 11.ttr 0opply Oaxlt.tlon rnwttflon.ll Ye..r jA- - - - - T* /ST -tr1oe..Io - 2 1,.tl o1e.. Co.trutlo t.t1 o'6~1 oaoelr- o1l.1. ol tvCl,- Tq ltl / lCs .2/B S :.~~~/B 0 02/0 0~~~a N GM/I 0 N/B 01/8 G14/ N/B S M/B G V1/B a M./8 'G 1/B a V4/l &O 1)7 !v 225 105 2.5~15 1._98 2,671 1,503 725 110 2o'? 286 612 136 o 1. 3 19 53 00 - 42 IIS 42 166 219 45 224 3,755 2,150 5,905 195 220 110 313,70 1.758 13.2 ., 11 15 61 89 1~60 v,4 50 24 30 22 J0 0 60 240 60 241 130 39 1&7 5..,51 8.753 1976 1 M C . .,31 178. 13,415o X,T 25 5 956 9851.011 990 45 26 sp ~ 57 - 1 60 21.0 dl 241 18 5 230 5,092 3,66 8,756 1977 60 60 ,5 .0 .1 .6 I 1 7'21 6 -, Zq 59 237 45 11 56 5,917 5,029 6.6 _____ 966 985 966 0~~~~~~ ~~~ ~~~~~~~~~~~~~~~~85 45 26 0 1 ---. . - --- __ - :0111 -.t stog 670 560 ~11,290 6.079 1ii.&oo 6. 1)q 75 250 3.119 3.115 3 ,F66 3,~65 190 94, 1.528 1,1378 1 7' 1,172 - 2 9 2 8 1 0 52 1.9 2211015 * 1978 60 6 i,421 765 I, 1,4 8,5 - - 9C6 9616 966 q,6 5 11 a78 6 69 615 - 2 59 2136 59 2138 18 5 2.3 3,233 2, 6(9 5.902 ~0 1979 60 60 1.4Z7 767 1,467 b,1 - 9866986 966 486 5 678 64678 607 2 59. 213 59 238 44 11 55 3.254. 2.609 5.723 ' ' 1960 40 6 1.1.97 765 1,467 82 - 66 9P5 966 .196 2 h178 678 605 2 59 235 59 2137 33 8 41 3,223 2,667 5. [90 .ot ,.110 d9 S,r 160 I20 '1.21<1 2.13(0 4,41<I 2.480 - - 1958 P958 2,458 P2,os8 5 16 2,07,4 1,14 2.5' ,11 6 17 0 177t 713 95 24 119g 9.710 8.005 17.715- 10A2N0 TO-AL 760 5101.7 ,3o1,118.910 1750 250 6,077 6.073 6276.723 1915 110O 13546 319 13,71 I,~ '; 10 '398 1,588 50 1,576 507 124' 631 2/804 ,207.266 48,U070 TAPLE I Explanatorv Notes / Data from Table ITTI 2/ Data from Table IV 31 Data from Table II Investment period cc-nfzrrrs to that established by the :leeting of l atin Akerican Ministers of Health, Santiago de Chile, Octber 1972, and agreed to by the Republic of Bolivia. Note: The (Loverrrrent counterpart investmer: as sho:;n in the Tab]e lnder "C" represents only the anount of funds req
Группа Всемирного банка · Pre-2003 Economic or Sector Report
Bolivia - Water supply and sewerage sector study (Vol. 1 of 2) : Text
Открыть оригинал документа
Полный текст размещён на сайте публикующей организации. lawenc.com индексирует метаданные и ведёт на официальный источник.
Полный текст
Основные сведения
Организация
Группа Всемирного банка
Тип документа
Pre-2003 Economic or Sector Report
Страна
Боливия
Источник
Всемирный банк