Benin - Cotonou Water Sanitation Engineering Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 7534 PROJECT COMPLETION REPORT PEOPLE'S REPUBLIC OF BENIN COTONOU WATER AND SANITATION ENGINEERING PROJECT (CREDIT 1171-BEN) DECEMBER 8, 1988 Infrastructure Operations Division Occidental and Central Africa Department Africa Regional Office This document has a restricted distribution and may be used bv recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Name of Currency: CFA Franc (CFAF) At Appraisal US$1 - CFAF 235 At Project Completion US$1 - CFAF 2o8 At PCR Date US$1 - CFAF 280 ABBREVIATIONS AND ACRONYMS DVU Direction de la Voirie Urbaine GOB Government of Benin SBEE Societe Beninoise d'Electricite et d'Eau SONAGIM Societe Nationale de Gestion Immobiliere WHO World Healtlh Organization FISCAL YEAR Government January 1 - Decem)er 31 SBEE July 1 - June 30 (up to June 1982) January 1 - December 31 (from July 1982 on)  FM O<IOL U OMLY T1 WOOD SANK Washwhton. DC 20433 USA 06m. ad OV(lW.dAi Ops.aium iaw IimInK December 8, 1988 MEORANDLUE TO THE tXECUTIVE DIUCCTORS AND THE PRBSIDINT SUBJECT: Project Completion Report on People's Republic of Benin Cotonou Water and Sanitation Engineering Project (Cred't 1171-BEN) Attached, for information, is a copy of a report entitled 'Project Completion Report on People's Republic of Benin - Cotonou Water and Sanitation Engineering Project (Credit 1171-BENI' prepared by the Africa Regional Office. Full evaluation of this project has not been made by the Operations Evaluation Department. Attachment This document has a restncted distribution and may be used by recipients only in the performance of their ofTcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  FOR OFFICIAL USE ONL Y PROJECT COMPLETION RIEPORT PEOPLE'S REZPULIC OF DENIN COTONOU WATER AND SANITATION ENGCINRING PROJZCT CREDIT 1171-BZ1 TABLE OF CONTENTS Page No. Preface ........................................................... i Basic Data Sheet .................................................. ii Highlights ................... iv I. INTRODUCTION ...................., 1 II. PROJECT PREPARATION ....................................... 1 Project Objectives ..................................... 2 Project Components ..................................... 2 Project Financing and Onlending Arrangement . III. PROJE(,T IMPLEMENTATION .................................... 3 Priority Works ......................................... 3 Studies ........ . . . ...... 4 Implementation Schedule and Credit Management.4 Project Costs and Credit Disbursement .. ................ 4 Compliance with Credit Covenants ....................... 5 IV. PERFORMANCE OF BORROWERS, CONSULTANTS AND BANK .5 V. CONCLUSIONS AND LESSONS LEARNED ........................... 6 ANNEX Project Costs .......... ................................... 7 MAP IBRD 13797R 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 discm3sed without World Bank authorization.  l PEOPLE'S REPUBLIC OF BENIN COTONOU WATER/SANTTATION ENGINEERING PROJECT CREDIT 1171-BEN PROJECT COMPLETION REPORT PREFACE l. This report represents a review of the above Project for which Credit 1171-BEN of SDR 4.1 million (US$5.0 M) to the Government of Benin was signed on October 26, 1981. The Credit was closed on June 30, 1987, two years after the original closing date by which time it was fully disbursed. Physi- cal works were completed by March 1987, 27 months later than expected at appraisal. 2. The Project Completion Report was prepared by the Infrastructure Operations Division of the Africa Regional Office on the basis of the review of the President's Report, the Loan Agreement and other reports related to the project implementation. 3. In accordance with the revised procedures for project performance audit reporting, this Project Completion Report was read by the Operations Evaluation Department (OED), but the project was not audited by OED Ptaff. OED sent copies of the draft report to the Borrower for comments, however, none were received.  -~ ~ ~ ~ ~ ~~~~~-i P9LE'S RWUC O DENI aW!utU WW |WrrAN1 N DI!D PR JET, CREDIT 1171-N M1JT atuIwlI IWRT BASIC DMA 9Ht K E Y P R O J E C T D A T A It- pt l Faq~~ectatActua Total Project Cost (US$ illflm) 6.3 6.3 Cost Ovemrr - (z Credit AMmt 5.0 (4.1 SCR) 5.5 (4.1 93) Disbrsed 5.0 (4.1 S) 5.5 (4.1 SDR) CaweUed 0 0 Date Physical Campnexwts Cacpleted 12/84 03/87 Proporticn Cc1pleted by Target Date - 60 Pruportim of Tim Overnnm 75Z Ecm=dc Rate of Return (Z) N.A. N.A. CUMULATIVE DISBURSEMENTS Fiscal Year Apprasal Actual _ 1982 1.5 - - 1983 2.8 .92 33 1984 4.4 2.15 49 1985 5.0 2.73 55 1986 - 4.16 83 1987 _ 5.50 /b 110 1988 - - - 0 T H E R P R 0 J E C T D A T A Item Estirate Amended Actual First Mention in Files or Timetable - 05/80 First Considered by Bank 04/80 - - Government Applicatim 10/79 - - Negptiations - - 04/81 Board Apprwal 06/81 - 06/25/81 Credit Agreem.nt Sigring 10/81 10/09/81 10/26/81 Effectivernss 12/81 - 04/11/83 Closing Date 06/30/85 06/30/86 06/30/87 Borrower People's Republic of Benin Executing Agency SBEE/ Fiscal Year of the Borrowr January OltDecember 31 Follow-o Project Name Second lhter Supply Project Credit Number 1721-BEN /a It was July 01 - June 30 until June 30, 1982. 7 The disbursed amount in SDR uas 4.1 million, exactly the amout of the Credit.  - it.- M I S S I O N D A T A No. of Ds lb. of tm ]Mb./Y.r in F1.rd ?shmu - taffdmys Date of Report Idmteiftcation 04/SO 6 1 6 05/80 Idtinlfctiwon 06/80 5 1 5 0/30 hppra1al 11/80 8 2 16 12/80 &Vu'is1.cum 1 12/81 3 1 3 02/82 9Suervision 2 03/82 3 1 3 03/82 upervisimo 3 06/82 4 1 4 07/29/82 SuporviIion 4 07/82 5 1 5 07/29/82 a9pervislon 5 02/83 3 1 3 03/83 Spervisimon 6 03/83 4 2 8 05/03/83 Surervi.icm 7 11-12/83 12 2 24 02/06/84 7 1 7 " 8 1 8 " &9pervisi8m 8 06/84 11 4 44 08/13/84 9upervl8iom 9 11/84 10 4 40 11/31/85 9Pervisidn 10 03/86 8 2 16 0/31/86 PCR 11/87 2 1 2 12/87 Total 99 194  - iv - PEOPLE'S REPUBLIC OF BENIN COTONOU WATER/SANITATION ENGINEERING PROJECT CREDIT 1171-BEN PROJECT COMPLETION REPORT HIGHLIGHTS 1. The project was based on the findings of surveys of the water supply and sanitation sector carried out in 1978 and 1980 under the World Heatth Organization/Bank Cooperative Program. Tt was designed to address the urgent basic needs of the sector, contribute to the Government's efforts to define coordinated and coherent policies and strategies, and help build viable sector institutions (para 2.04). 2. The project was financed by an !DA Credit in the amount of SDR4.1 M (US$5.0 M equivalent). The Credit was approved on June 25, 1981, became effective on April 11, 1983, and was closed on June 30, 1987 after two post- ponements of the closing date. These delays allowed financing of additional consultant services and physical works (para 3.06). 3. The Credit was originally divided into about US$2.8 M for water sector related expenditures, and US$2.2 M for urban sector related activities. This division was, however, somewhat arbitrary since there were studies and activities in both groups that affected both sectors (mapping, surveys, and tariff studies, for instance). 4. The total cost of the project as implemented was US$6.3 M, that 4.s the same amount as originally estimated in US dollar terms, but about 22% higher than estimated at appraisal in terms of CFAF (para 3.07). 5. The physical components of the project were completed satisfactorily but with an overrun of about two years. However, the sanitation component was not t!illy successful due to weakness of the institutions in charge of the sub-sector, and inadequate definition of their responsibilities. Moreover, while the institutional study for the urban sanitation sub-sector was carried out, no improvement or follow-up has been made by the Government in urban and sanitation sector policies, and the appropriate institutional arrangement has not yet been established. The project provided the basis for the preparation of the ongoing Second Water Supply Project (para 4.01). 6. The Bank should continue to pursue its dialogue with Benin and encourage it to introduce sound management practices in the urban sector (para 5.02).  PEOPLE'S REPUBLIC OF BENIN COTONOU WATER/SANITATION ENGINEERING PROJECT CREDIT 1171-BEN PROJECT COMPLETION REPORT I. INTRODUCTION 1.01 The project was the first Bank Group lending in the Benin vater supply and sanitation sector. The first identification mission vas made in April 1980. It was followed by a World Health Organization (WHO) mission il June 1980, which was joined by a Bank urban planner. 1.02 The Borrower was the Government of the Republic of Benin. The executing agency was the power/water company, Societe BUninoise d'Electricitg et d'Eau (SBEE), to which US$2.8 M were onlent to finance the foreign exchange cost of improvement of the Cotonou water supply and sanitation system, as well as consultant services for water supply studies and training activities. SBEE was also the executing agencv for US$2.2 M worth of studies and Tarious preparatory activiti3s in support of the country's urban sector. Subsidiary executing agencies in the urban sector were the "Institut National de Cartographie (INC) (the National Mapping Agency); the Direction de la Voirie Urbaine (DVU), the urban roads department of the Ministry of Public Works; the Societe Nationale de Gestion Immobiliere (SONAGIM), a parastatal ir, charge of land development; and the "Service de la Voirie," the technical department of the Cotonou local Government. 1.03 This PCR was prepared by AFlIN on the basis of a review of Bank files, including the President's Report, credit documents, supervision re- ports, and information from SBEE. There was no staff appraisal report. II. PROJECT PREPARATION 2.01 In October 1979, the Government requested financing for a lars,e urban infrastructure project in the capital city of Cotonou to include the power, water, sanitation, and urban sectors. Because of lack of data and absence of project preparation, the Association suggested to the Government that it would be more appropriate to first carry out an engineering project as a basis for preparing a future infrastructure project. 2.02 The project was identified by a Bank mission in April 1980. In June 1980, a WHO/Bank joint mission further analyzed water sanitation needs and prepared TOR for the urban studies. SBEE actively participated in project preparation. 2.03 The project was apptaised in November 1980. The main issue raised in the Issues Faper of December 11, 1981 was -he need to upgrade SBEE's financial management by introducing a cost accounting system which would provide information on the cost of water and power. As SBEE's cash position was being weakened by slow collection of customer arrears, especially from the local and central Government agencies, a covenant was introduced in the Credit Agreement requiring the Government to improve its payment performance. Close coordination between the urban study on one hand, and the water/sanitation  studies' an the other, was called for, possibly by using the same consultants to dto both. While SBEE is primarily a power company, the proiect never envisaged to address issues of this sector. Negotiations were held in Wash- ington in April 1981. A Credit of STR 4.1 M was approved in June 1981 and signed on October 26, 19