Announcement of IDA Approves Twenty Million Five Hundred Thousand Dollars Credit for Water and Sanitation Project in Madagascar on April 7, 1980

FOR IMMEOIATE RELEASE .. World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/27 Apri 1 7, 1980 IDA APPROVES $20.5 MILLION CREDIT FOR WATER AND SANITATION PROJECT IN MADAGASCAR The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of $20.5 mill ion to the Government of Madagascar for a water and sanitation project in Antananarivo. The $33-7 mill ion project is designed to meet the increasing water supply needs of Antananarivo and its suburbs for the next six to eight years and to improve sanitation in the city area. • The !DA-supported project also contains an institution-building component. This will assist the Malagasy Electricity and Water Company and the Sanitation Division of the Antananarivo Municipality to renew and modernize their facilities and so improve the reliability and efficiency of their services and operations. The project will bring direct benefits to about 200,000 people about 49% of whom will be the urban poor, and who will, for the first time, have access to a piped water supply. The IDA credit will also help to finance improved drainage in the area which will benefit the whole community, particularly the poor, 1 iving mainly in the low areas of the city which are now period!cally flooded. The Government of Madagascar will contribute $8.2 mill ion and the Municipality of Antananarivo $5 mill ion towards the cost of the project. The IDA credit is for a term of 50 years, including 10 years of grace. It will bear no interest but will carry a service charge of 3/4 of 1% per annum to cover administrative expenses. • NOTE: Money figures are expressed in U.S. dollar equivalents . FORM NO. 1121 (5-76) T E C H N I C A L DA T A PROJECT: COUNTRY: Water and Sanitation Antananarivo Madagascar • TOTAL COST: $33.7 million IDA FINANCING: $20.5 mill ion, standard IDA terms OTHER FINANCING: The Municipality of Antananarivo, $5 mill ion; the Government of Madagascar, $8.2 million IMPLEMENTING ORGANIZATIONS: Malagasy Electricity and Water Company (JIRAMA) Antananarivo, Madagascar Telex: 22235 Fivondronana Antananarivo Antananarivo, Madagascar Telex: 22329 PROJECT DESCRIPTION: The project consists of the following: (a) construction of water production works, about 19km of water mains, extension and reinforcement of the water distribution system (reservoirs, pipes, booster station) and supply of heavy equipment for maintenance; (b) construction of • drainage collectors, a pumping station, river dykes, 10 storage basins, a new 3km drainage canal, dredging of an existing canal over 10 km and rerouting of an irrigation canal; (c) construction of sewage collecu-,rs and reticulation, a pumping station, discharge mains and pilot stabilization ponds; (d) construction of about 560 collective dumping containers, supply of about 19 collection trucks and heavy equipment to upgrade and properly maintain the existing dumping site, and upgrading of an experimental composting facility to produce 10,000 tons per year; (e) training for JI RAMA senior staff and middle and lower level staff as well as a contribution to the construction and equipping of.an extension to the JIRAMA training center in Antananarivo; and (f) training for lower level sanitation staff in Madagascar and for higher level staff abroad as well as supply of training equipment. PROCUREMENT: Construction works for the water supply component ($10.2 mi 11 ion) wi 11 involve three bidding packages: (a) supply of pipes, valves and fittings; (b) supply of electromechanical equipment and (c) civil works. Construction works for the drainage and sewerage components ($17.8 mill ion) will also involve three bidding packages: (a) supply, transportation and installation of electromechanical equipment; (b) civil works and (c) supply and layinq of sewerage mains. The solid waste component ($3.51 million) will involve several small contracts for civil works (phased construction of collective dumping bins, composting facility) and for equipment supply (plastic bins, vehicles, maintenance and composting equipment). Electromechanical equipment for water supply will be erected and water pipes laid on force account by JIRAMA's Electromechanical Department and Water Distribution Department. All other works will be carried out under contract. Works executed on force account will not be financed by this credit. All contracts o f . $100,000 or more will be awarded on the basis of international competititve bidding jn accordance with the IDA guidel Ines on procurement. Contracts under $100,000 ~Jill be awarded in accordance with local competitive bidding procedures acceptable to • (2) the Association. Total expenditures under such contracts will not without the Association's further approval exceed $400,000 for the water supply component and $500,000 for the sanitation components. A preference of 15% of the c. i .f. price or the applicable customs duty, whichever is lower, will be applied to the bids of local manufacturers of equipment. A preference of 7.5% of the c. i .f. price would be applied to bids from local civil works contractors. ECONOMIC RATE OF RETURN: 7.4% for the water supply component ESTIMATED COMPLETION DATE:1985 • •