Morocco - Sewerage Engineering Project

Document of The World Bank FOR OFFICLIL USE ONLY Report No. 5131 PROJECT COIPLETION REPORT KINGDOM OF MOROCCO SEWERAGE ENGINEERING PROJECT LOAN S-7 MOR June 14, 1984 . Water Supply and Sewerage Division Europe,Yiddle East and North Africa Region This document has a resticted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  FOx OMCIAL USE ONLY KINGDOM OF MOROCCO SEWERAGE ENGINEERING PROJECT LOAN S-7-MOR PROJECT COMPLETION REPORT TABLE OF CONTENTS Page No. PREFACE ............................i...............i BASIC DATA SHEET .ii HIGHLIGHTS. v I. INTRODUCTION ................-----------------------..... 1 II. PROJECT PREPARATION..................................... 1 III. PROJECT IMPLEMENTATION. 1 Implementation ................................1 Outcome of Studies ............................... .. ... 2 Follow-up Project. 2 Project Cost and Loan Disbursements. 2 Borrower, Consultants and Bank Performance. 3 IV. CONCLUSIONS AND LESSONS LEARNED. 3 ANNEX I - Implementation Schedule .............................. 4 APPENDIX I - Comments Received from Regie Autonome Inter- communale de Distribution d'eau et d'Electricite de Casablanca (RAD) .*......................... 5 MAP - IBRD 18032 This document has a restricted distnbution and may be used by recipients only in the performance of their ofricial duties. Its contents may noL otherwise be disclosed without World Bank authorization.  KINGDOM OF MOROCCO SEWERAGE ENGINEERING PROJECT LOAN S-7-MOR PROJECT COMPLETION REPORT PREFACE . This completion report reviews the preparation, implementation and achievements of a sewerage engineering project for which Loan S-7-MOR was made in August 1977 to the Kingdom of Morocco for US$ 1,500,000 of which US$ 51,371 was cancelled in early 1984. The implementing agency was the Prefecture of the City of Casablanca. This report was prepared by the Europe, Middle East and North Africa Regional Office on the basis of the findings of a project completion mission which visited Morocco in November 1983 and a review of the President's report, the loan documents, supervision1 reports, progress reports and other documents related to project implementation. In accordance with the revised procedures for project performance audit reporting, this PCR was read by the Operations Evaluation Department (OED) but the project was not audited by OED staff. Following standard procedures, OED sent copies of the draft report to the Government and the implementing agency for comnmmt. Comments were received from Regie Autonome Intercommunale de Distribution d'Eau et d'Electricite de Casablanca; these have been taken into account and are attached as Appendix I.  - ii - KINGDOM OF MOROCCO SEWERAGE ENGINEERING PROJECT LOAMJ S-7-MOR PROJECT COMPLETION REPORT BASIC DATA SHEET KEY PROJECT DATA Appraisal Iten Estimate Actual Total Project Cost (US$ million) 2.461 3.024 Overrun Z - 30 Loan amount (Us$ million) 1.500 1.500 Disbursed 1.500 1.449 Cancelled - 0.051 Date of physical completion 10/79 10/83 Proportion completed by above date X 0 100 Proportion of time overrun Z 150 CUMULATIVE DISBURSEMENTS (US$ Thousands) Appraisal Fiscal Year Estimate Actual 1978 550 1979 1,350 1980 1,500 - 1981 420 1982 750 1983 1,380 1984 1,449  - iii - BASIC DATA SHEET (Contd.) OTHER PROJECT DATA Appraisal Item Estimate Actual First mention in files 05/23/75 First considered by Bank mission 11/00/76 Government application 04/00/77 Negotiations in Rabat 06/00/77 Board approval 08/09/77 Loan agreement 08/30/77 Effectiveness 11/30/77 10/27/78 Closing date 04/30/81 10/31/83 Borrower Kingdom of Morocco Executing Agency Prefecture of Casablanca Fiscal year of borrower January 1 - December 31 MISSION DATA No. of No. of Man- Date of Mo-nth/Yr* Days Persons Days Report Identification 05/75 2 1 2 05/23/75 Preparation I '12/75 2 1 2 12/29/75 Preparation II 11/76 2 1 2 01/07/77 Preparation III 04/77 2 1 2 04/19/77 Negotiations, Rabat 06/77 4 2 8 07/11/77 Supervision I 07/78 2 1 2 07/30/78 Supervision II 11/78 2 1 2 05/12/78 Supervision III 05180 3 1 3 06/06/80 Supervision IV 10/80 4 1 4 10/21/80 Supervision V 04/81 5 1 5 05/07/81 Supervision VI 07/81 6 1 6 08/19/81 Supervision VII 01182 3 1 3 01/28/82 Supervision VIII 06/82 4 2 8 06/29/82 Supervision IX 10/82 4 2 8 11/16/82 Supervision X 05/83 4 1 4 06/24/83 Supervision XI 11/83 7 1 7 01/20/84 TOTAL 68 * All missions were combined with supervision of water supply projects (Loans 850-, 1724- and 2006-MOR)  -iv- BASIC DATA SHEET (Contd.) EXCHANGE RATES Currency Unit Dirham (DH) Appraisal Year Average 1977 US$ 1 = DR 4.50 1980 US$ 1 = DR 3.83 1981 US$ 1 = DH 5.36 1982 US$ 1 = DH 5.78 1983 US$ 1 = DH 6.60  KINGDOM OF MOROCCO SEWERAGE ENGINEERING PROJECT LOAN S-7-MOR PROJECT COMPLETION REPORT HIGHLIGHTS The Bank had been involved in the Moroccan sewerage sector through the Bay of Agadir Tourism Project (Loan 1202-MOR of February 1976). Engineering Loan S-7-MOR, which was approved in August 1977 for US$ 1.5 million, was the Bank's first free-standing loan to the Moroccan sewerage sector. Subsequently, Loans 1528-MOR, 1944-MOR, 2245-MOR and 2272- MOR provided relatively small amounts for the construction of sewers and slum upgrading and land development components of urban development projects. Project preparation was carried out expeditiously with the assistance of the Bank and WHO. The project consisted primarily in the preparation of a sewer system feasibility study and a first-stage project for the Casablanca- Hohbanedia area (para. 2.01). Substantial time overrun was incurred due to lengthy coordination problems during project start-up (para. 3.01). Consultants mobilized rapidly however, and project implementation progressed smoothly. The Consultants' contract was amended in September 1982 (para. 3.02). The project studies have been successfully completed. In addition to setting the stage for the development of sewerage in the Casablanca-Mohammedia area, the studies will assist the Government to address the major aspects of the sewerage sector in general (para. 3.03). Preparation of a follow-up sewerage project for the Casablanca- Mohammedia area is well advanced, although progress is being held up because of difficulties arising out of the stringent limits placed on foreign borrow- ings (para. 3.04). Project costs amounted to uS$ 3.0 million (appraisal US$ 2.5 mil- lion). The overrun was due to delays in project implementation and the exten- sions of the project scope (para. 3.05). The start-up delay underscores the need for timely establishment of an executing agency with requisite decision-making authority (para. 4.01).  KINGDOM OF MOROCCO SEWERAGE ENGINEERING PROJECT (LOAN S-7-MOR) PROJECT COMPLETION REPORT I. INTRODUCTION 1.01 At the time of appraisal, the development of the sewerage sector had failed to keep pace with the urban population growth of over 5% per annum and the country's rapid industrialization. The existing infrastructure consisted essentially of combined waste and storm water collection systems in the major urban centers and primitive excreta disposal systems in rural areas. Institu- tions were weak, lacking technical expertise and financial autonomy. 1.02 The Government had become increasingly aware of the need to assign high priority to the sewerage sector, and the 1978-82 Development Plan under preparation was expected to allocate more funds for sewerage. Engineering Loan S-7-MOR was the first direct Bank Group operation in the sewerage sector. Prior to this, the Bay of Agadir Tourism Project for which Loan 1202-MOR had been approved in February 1976, had included US$ 1.7 million for the construc- tion of sewers and for carrying out a sewerage study in the Agadir area. Sub- sequently, Loans 1528-MOR, 1944-MOR, 2245-MOR and 2272-MOR proviaed relatively small amounts for the construction of sewers in slum upgrading and land development components of urban development projects. II. PROJECT PREPARATION 2.01 The project was identified in November 1976. Preparation consisted in defining the scope of the work to be carried out by the sewerage unit of the Ministry of the Interior. This work was carried out expeditiously with the assistance of the Bank and WHO. The project consisted of (i) the prepara- tion of a feasibility study of the sewer system for the Casablanca-Mohammedia area (see Map No. IBRD 18032); (ii) the preparation of a priority project constituting the first implementation stage of the sewerage master plan; and (iii) the acquisition of oceanography equipment. The terms of reference for the studies were discussed and a draft proposal agreed upon in Morocco in April 1977. 2.02 Loan S-7-MOR for US$ 1.5 million was negotiated in Morocco in June 1977 and approved in August 1977. It was intended to finance the entire foreign exchange requirements of the project, the total cost of which was estimated at US$ 2.5 million. The hiring of consultants was a condition of effectiveness which was expected to take place in December 1977. III. PROJECT IMPLEMENTATION Implementation 3.01 The project was advertized internationally in September 1977 and, of the 24 companies and joint ventures which expressed interest, eight were pre-  selected in November 1977. Although the project had been prepared by the Ministry of the Interior, other agencies, e.g. the Ministry of Equipment and the Prefecture of Casablanca were directly concerned and lengthy coordination problems appear to have existed until April 1980, when the Prefecture of Casablanca was designated as executing agency for the project /.This coincided with the signing of the contract of the joint venture of BCEOM-SAFEGE (France) SAEM (Morocco) and Engineering Science (USA) to carry out the project studies. Long before this, in October 1978, the Consultants had been selected and the Bank had declared the loan effective. A detailed implementation schedule appears in Annex 1. 3.02 The consultants mobilized rapidly and began working in Casablanca in early May 1980. Project implementation progressed smoothly according to con- tract schedule, and was completed two years and eight months after contract signing. The Consultants' contract was amended in September 1982, to include topographical and geotechnical studies required for the first-stage follow-on project, and a study of the rehabilitation component of the project. These were completed in December 1983. Outcome of the Studies 3.03 The studies have been successfully completed.- They form the basis for the medium and long term development of sewerage in the Casablanca- Mohammedia area, the largest urban and industrial center in Morocco. They also address the questions of design criteria for wastewater collection, treatment and disposal facilities; the monitoring of receiving waters and industrial wastewater effluents; the development of domestic and industrial wastewater management practices and of technical criteria for wastewater reclamation for agricultural and industrial purposes and for possible use of sewage solids for soil conditioning; the creation of regional autonomous sewerage authorities; and the establishment of adequate charges for industrial and domestic wastewater disposal services. The project will thus assist the Government directly in implementing its long-range program to reorganize the sewerage sector. Follow-up Project 3.04 Preparation of a follow-up project for the Casablanca-Mohammedia area is well advanced and 2ould be appraised as soon as the question of project financing is resolved, 2 The difficulty has arisen in recent months as a result of the austerity program on which the Government of Morocco has embarked and the stringent limits on foreign borrowing. The possibility of financing the proposed project without recourse to the Government is currently being examined. Project Costs and Loan Disbursements 3.05 Total project costs amounted to US$ 3.0 million (appraisal US$ 2.5 million). The cost overrun was due to delayed project implementation and expanded scope. The entire overrun was in local currency and was financed by the Government. OED Notes: 1l Responsibility was assigned to Regie Autonome Intercommunale de Distribution d'Eau et d'Electricite de Casablanca, a public agency with financial autonomy. See Items B and C- of Appendix I. 2/ See items D and E of Appendix I.  - 3 - 3.06 The loan was fully disbursed except for US$ 51,371 which was can- celled in early 1984. Reflecting the implementation slippage caused by the delayed hiring of consultants (para. 3.01), the longer implementation schedule for the original project components (para. 3.02) and the extended scope (para. 3.02), the last payment was made in early 1984, some three years later than originaLly foreseen. Borrower, Consultants and Bank Performance 3.07 The Borrower experienced some coordination problems in the early stage of project execution (para. 3.01). However, with the setting up of a project Steering Committee under the chairmanship of the Governor and the appointment of the Prefecture of Casablanca as executing agency, project implementation progressed smoothly. The consultants' performance was also excellent. For its part the Bank provided the necessary support to the Government in independently reviewing progress and helping to ensure that the studies produced would meet the requisite standards of appropriateness, com- pleteness and quality. IV. CONCLUSIONS AND LESSONS LEARNED 4.01 The project was successfully completed albeit with substantial time overruns during start-up (para. 3.01). This underscores the need for the early establishment of a competent and effective coordinating body empowered with the requisite decision-making authority.  ANNEX I KINGDOM OF MOROCCO SEWERAGE ENGINEERING PROJECT LOAN S-7-MOR PROJECT COMPLETION REPORT Implementation Schedule Invitation for preselection 09/00/77 Preselection 11/16/77 Bank's No Objection to Preselection 01/17/78 Selection of Consultant 07/15/78 Proposal to Award Contract 04/01/80 Bank's No Objection to Award 04/09/80 Contract Signed 04/15/80 Start Feasibility Study 05/05/80 Completion of Feasibility Study 04/15/81 Final Report, including Bank and Government coments 12/15/81 Start 2nd phase 05/01/81 Draft Report 06/15/82 Final Report, including Bank and Government coments 12/15/82 Variation Order No.1 03/10/82 (Economic Justification and Topographical & Geotechnical Studies) Start Economic Study 05/01/81 Completion of Economic Study 05/15/82 Rehabilitation: Start Final Design and Bid Documents-3rd phase 09/01/82 Variation Order No.2 09/20/82 (Detailed Investigation of Rehabilitation Works Final Design and Bid Documents) Draft Report 09/15/83 Final Report 12/15/83  - 5- TRANSLATION OF TELEX APPENDIX I COMMENTS RECEIVED FROM REGIE AUTONOME INTERCOMXUNALE DE DISTRIBUTION D'EAU ET D'ELECTRICITE DE CASABLANCA (RAD) SUBJECT: Project Completion Report on Morocco Casablanca-Mohamnedia Region Sanitation Prolect (Loan S-7 MDR) SHIV S. KAPUR, Director, Operations Evaluation Department, World Bank. OED Notes Ref: Your letter of April 18, 1984 Following your letter cited in reference, in which you asked for my comments on this report, I am pleased to inform you that the description of the project's progress from signing to the date of completion (December 1983) needs some additional information, as followt: A. The project consisted of 3 phases: 1. Phase 1 - Feasibility study PCR, para.2.01 2. Phase 2 - Before project study, examining the organizational, institutional and financial aspects of the project; PCR, para.3.03 3. Phase 3 - A study of the rehabilitation of the waste water pipelines and identification of an urgent first PCR, para.3.02 stage component. B. The Moroccan Government decided to give the responsibility for Footnote added managing the sanitation works to a public agency with financial to PCR, para.3.01 autonomy. That agency was R.A.D. C. The management contract made with R.A.D. and the city of Footnote added Casablanca became a concession contract. The city council recently to PCR, para.3.01 met to discuss this subject. D. The financial equilibrium of the project is tied to numerous Footnote added to administrative constraints of a financial and technical nature. PCR, para.3.04 For this balance to be maintained, a number of steps must be taken very soon. E. In conclusion: All the studies are finished. We now have the plans for the Footnote added most urgent works (the new works and rehabilitative works). Nov to PCR, para.3.03 the financing of this part must be set up in direct and indirect currencies and this must be made firm by modification of the pro- curement conditions for the sanitation works in the greater Casablance area by R.A.D. on the one hand and through tariff measures taken as a result of the study done, these two aspects being linked, besides. It is these five points which in my opinion warrant inclusion in the report. The rest of the report did not raise any observations from me. DIRECTOR GENERAL A BOUKHARI R.A.D. May 31, 1984  A / an tic e a x n Z/ C a s A b I a -* c: / - ;L _,; r, C -I ~~~~ LGE IMAURITANIA ( I P !A L I  :BRD 18032 MAEC-HUU MOROCCO GREATER CASABLANCA SEWERAGE PROJECT MASTER PLAN / s _ _S o ~~~~~~~~~~~~~SEWERAGE 3:ETWNORKS ~~>-~~~~- ~~~ - ~ ~ ~ ~ ~ ~ ~ jV~~om Seevers - d / , * - ~~~~~~~~~~~~~~~~~~~~~~~OutfaIis -- c ~~~~~~ ~~ e~~~/< / --' : _ ~~~~~~~Rehob.I.or on Pumnpmng Sto.orns ., - = F.rst Phase - Mo.n Se.ers Second 2hose -- ?VY \ ~ t.on Se-ers -l J ~~~PuJITp.JIg Sto?.ons ~~~~~~~~~~~~~~~~~- B3St \ uvfl / _ / _ B~~~~~~~~~~~~~~u-it-uD Area. - o. oads ---Urban L rstCr(2000j R,,.e's IOveds/ V - internow.onol Boundor.e-. - --Internotronol 3oundor es(fAarox.mole) o ? 2 3 * Ind.ckwes the Terr,tory of ?he former ------- Scon,:n SoharklJ[espern Sahara) -~~~~~~~~~~~~~~~~~~~~..d. _ _