Sri Lanka - Water Supply and Sanitation Rehabilitation Project

Dame of The World Bank FOR OFFCIIAL USE ONLY C F />& C C)- Report No. P-4297-CE REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDRs 32.1 MILLION TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A WATER SUPPLY AND SANITATION REHABILITATION PROJECT April 30, 1986 This document has a restricted 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.  CURRENCY EOUIVALENTS Currency Unit = Sri Lanka Rupee US$1.00 = SL Rs 27.4 SL Re 1.00 = US$0.0365 ABBREVIATIONS AND ACRONYMS AIC - Average Incremental Cost CAB - Comnon Amenities Board Decade - International Drinking Water Supply and Sanitation Decade FRP - Financial Recovery Program MIP - Macro-Investment Plan UDA - Urban Development Authority WDB - National Water Supply and Drainage Board FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY SRI LANKA WATER SUPPLY AND SANITATION REBARBILITATION PROJECT Credit and Project Summary Borrower: Democratic Socialist Republic of Sri Lanka Beneficiary: National Water Supply and Drainage Board (WDB) Amount: SDRs 32.1 million (US$37.0 million equivalent) Terms: Standard Relendina Terms: The Government would relend US$21.4 million equivalent of the credit proceeds to WDB at a 12 percent interest rate, repayable over 24 years including 2 years of grace, while US$15.3 million equivalent would be made available as equity. The Goverment would bear the foreign exchange risk. (The Government would retain US$0.3 million equivalent to implement the lov-cost sanitation component.) Project Description: The project seeks to improve public health and sector manage- ment by rehabilitating and augmenting vater supply, sewerage, sanitation and drainage systems in the Amparai, Anuradhapura and Colombo areas, vhile strengthening WDB's financial management and enhancing its operations and maintenance capacity. The primary benefits expected to accrue to the areas' populations, about 40 percent of whom fall below the poverty threshold, are improved services, decreased vater- borne diseases, savings in health care costs, improved worker productivity, and a favorable environmental impact. The project faces no special risks, although achieving the objectives would depend upon a growing capacity for sound financial management by WDB. This document has a restncted dtribution and may be ued by recipients only in the performance of their ofl duties. Its contents may not otherwie be disclaoed without World Bank authoriation.  - ii- Estimated Costs: a/ Local Foreign Total -----(Us$ Million)- - Civil Works 13.5 2.4 15.9 Materials and Equipment 8.6 11.8 20.4 Engineering Design, Training and Technical Assistance 3.0 4.0 7.0 Base Costs 25.1 18.2 43.3 Physical Contingencies 2.8 2.4 5.2 Price Contingencies 9.4 6.9 16.3 Subtotal of Contingencies 12.2 9.3 21.5 TOTAL PROJECT COSTS 37.3 27.5 64.8 ===e- =:= S Financins Plan: Local Foreign Total -----(US$ Million) - - IDA 9.5 27.5 37.0 GOSL 27.8 - 27.8 Total 37.3 27.5 64.8 Estimated Disbursements: Bank Group Fiscal Year FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 ------------------ -(us$ Million) ----