Announcement of IDA Assists Water Supply and Sewerage Project in Bolivia on July 16, 1979

' · FOR IMMEDIATE-. RELEASE I •World Bank 1818 H Street, N.W., Washington, D.C. 20433 1 U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/3 July 16, 1979 IDA ASSISTS WATER SUPPLY AND SEWERAGE PROJECT IN BOLIVIA The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a $9 million credit to Bolivia to support the urgently needed expansion of the water supply and sewerage system of the city of Santa Cruz de la Sierra. With an estimated total cost of $17.3 mill ion, the Santa Cruz Water Supply and Sewerage Project is expected to improve the health and environmental conditions of the inhabitants of Santa Cruz, the second 1a rges t city in Bo l iv i a. Santa Cruz is the administrative, financial, and educational center for a vast region of great agricultural potential and of oil and gas production in Eastern Bolivia. The city's present population, estimated • at about 280,800 in 1978, is expected to reach 650,000 inhabitants by 1990 • Demand for public services, including water supply and sewerage, is growing rapidly. The project is expected to provide public water supply to about 108,000 people and improve the existing service to about 22,000 people, increasing the percentage of population served to 85% by 1983. Sewerage services will be provided to about 66,000 inhabitants, expanding the service level to 40% in 1983. About one third of the beneficiaries are estimated to be urban poor, earning· less than $226 per person per year. A revolving fund to finance house plumbing and lot lines is expected to help about 8,000 low-income households to overcome the high costs of initial connection during the project construction period. The project will also improve the management, organization, and planning capacity of the Servicios de Agua Potable ·y Alcantarillado de Santa Cruz (SAGUAPAC), a public enterprise responsible for the water supply and sewerage system in the city. A study for determ'ining the next major sources of water supply for Santa Cruz is also included in the project. The $9 million IDA credit to the Republic of Bolivia is for 50 years, including 10 years of grace. The credit carries no interest, but bears a service charge of 3/4 of 1% per year to cover administrative costs. This is the second World Bank operation in the water supply and sewerage • sector in Bolivia • NOTE: Money figures are expressed in UoS. dollar equivalents. FORM NO. 1121 (5-76) TECH N I CA. L DA T A PROJECT: COUNTRY: TOTAL COST: Santa Cruz Water Supply and Sewerage Bo 1 i vi a $1 7. 3 mi l l ion • IDA FINANCING: $9 million, standard IDA terms OTHER FINANCING: Santa Cruz Development Corporation, $3.l million; Servicios de Agua Potable y Alcantari llado de Santa Cruz, $5.2 million IMPLEMENTING ORGANIZATION: Servicios de Agua Potable y Alcantari llado de Santa Cruz (SAGUAPAC) Casilla de Correo 3284 Santa Cruz de la Sierra, Bolivia CABLE: SAGUAPAC PROJECT DESCRIPTION: It consists of: a) expansion of the water supply system comprising the construction of a pumping station of about 300 liters per second capacity in the northeast well field of the city and installation of about 200 kilometers of distribution lines and about 20,000 metered connections; b) the expansion of the sanitary sewer system including the construction of a sewer • treatment plant with about 25 hectares of oxidation ponds and associated pumping station and emissary, construction of about 4,450 meters of trunk sewer and installa- tion of 60 km of sewer lines and lateral sewers and about 10,000 new house connec- tions; c) installation of in-house plumbing and lot lines; d) data processing and laboratory and communications equipment and vehicles; and e) technical assistance for determining the future.major sources of water supply for Santa Cruz, improving SAGUAPAC's organization and management, and training of SAGUAPAC's staff. PROCUREMENT: Contracts for equipment and materials will be awarded through international competitive bidding according to IDA guidelines. Local manufacturers ~ill be accorded a margin of preference of 15% of the c.i.f. price or the actual ~ .. :~)Ort tariff, whichever is lower. Contracts for civil. works estimated to cost less th2.. 1 $100,000 and contracts for equipment ~nd materials estimated to cost less than $50,000, up to an aggregate amount of $1,000,000, will be awarded on the basis of local bidding procedures acceptable to IDA. Minor civil works contracts of less than $10,000 up to an aggregate amount of $200,000 for the installa- tion of sewerage and ~ater supply distribution lines will be awarded after obtaining price quotations from registered local contractors. Installation of in-house plumbing and lot lines will be carried out by local contractors approved by SAGUAPAC. CONSULTANTS: About 80 man-m6nths of consultant services to assist SAGUAPAC and to prepare the water resource studies are required. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 12% 1982 - 0 - •