Announcement of IDA Assists Water Supply Project in Malawi on May 16, 1977

·eWorldBank ··JW18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/57 May 16, 1977 IDA ASSISTS WATER. SUPPLY PROJECT IN MALAWI Malawi is to receive a $7 million credit from the International Develop- ment Association (IDA), the ~Jorld Bank affiliate, for a water supply project in Blantyre. Malawi is rich in water resources. Lake Malawi, the third largest in Africa, is a gigantic ~eservoir, which dis~harges at its southern end into the Shi re river. ·Although some 70 percent of Malawi 1 5 urban population already have access to piped water, the level ·of service varies. In Blantyre -- one of the principal cities -- the demand for potable water wi 11 greatly increase with an expected doubling of population by the mid-1980 1 s. The project wi 11 assist the fifth stage of the Blantyre Water Board (BWB) water supply expansion program. It is designed to improve and extend existing pumping and treatment facilities at the Walker 1 s Ferry intake station, improve supply between • the intake station and Blantyre and improve the distribution system in the city area . Construction of staff housing and workshop buildings, procurement of vehicles, spare parts, tools and office equipment are also included in the project. Engineering and management consultant services as well as training, wi 11 be.provided. In addition to responding to the increased demand, it is anticipated that this least-cost scheme for supplying treated water to the Blantyre area, wi 11 reduce health hazards. In particular, some 50,000 people presently relying on supplies of doubtful quality in unplanned low-income·areas without piped water service, will bene- fit from the improved public health standards. The African Development Fund and the Commonwealth Development Corporation are cofinancing the $16.6 mi 11 ion project in an aggregate arrount of approximately $6. 7 mi 1 Ji on. The IDA credit of $7 million being made to the Republic of Mala\.\!i, will be on standard IDA terms of 50 years including 10 years of grace .. The credit is interest free except for a charge of 3/4 of 1% for administrative expenses. The Government will relend the proceeds of the credit to BWB for 24 years, including a grace period of 4 years, wi~h interest at 8.5% per annum. - 0 - • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Blantyre Water Supply Republic of Malawi $ l 6 . 6 mi 11i on • IDA FINANCING: $7 mi 1 lion, standard IDA terms OTHER FINANCING: The African Development Fund and the Commonwealth Development Corporation are cofinancing the project in an aggregate amount of approximately $6.7 million. IMPLEMENTING ORGANIZATION: The Blantyre Water Board (BWB), P.O. Box 30369 Chichi ri, Blantyre 3,. Republic of Malawi, which is responsible for water supply to Blantyre and adjacent areas, wi 11 carry out the project. PROJECT DESCRIPTION: Improvement and extension to existing pumping and treatment facilities at the ~Jalker's Ferry intake station, improvements to the supply main be- tween the intake station and Blantyre, and improvements to the distribution system in the Blantyre area. The project includes the construction of staff housing and work- shop buildings, the procurement of vehicles, spare parts, tools, accounting and other office equipment, and the provision of engineering and management consulting services • as well as training. PROCUREMENT: Contracts for civi 1 works and equipment to be financed from the IDA credit, wi 11 be aHarded on the basis of international competitive bidding in accordance with Bank Group Guidelines. Should local manufacturers bid for supply contracts, a preference of 15 percent or the applicable customs duty, whichever is lower, will be applied to such, bids. A preference of 7.5 percent will be applied to bids by domestic firms for construction contracts. Supply and construction contracts to be financed by the African Development Fund would be awarded in accordance \-Ji th the procurerren t rules of that co lending ins ti tut ion. CONSULTANTS: Engineering consultants wil 1 be retained for detailed design, preparation of tender documents, evaluation of tenders and supervision of construction (about 275 man-months). BWB \•Ji 11 also, by 1980, retain engineering consultants to carry out studies to determine the rrost economic mode of future operation of the Walker's Ferry supply system. Management consultants wi 11 be retained for a short term (about 3 man-months) to assist in the selection and initial use of data processing eq1Jipment. ECONOMIC RATE OF RETURN: 7% (Based on tariff levels to be achieved by the time of project ·comp 1et ion). • ESTIMATED ~OMPLETION DATE: 1980 - 0 -