Jordan - Water Supply and Sewerage Projects

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 8092 PROJECT COMPLETION REPORT JORDAN EIGHT CITIES WATER SUPPLY AND SEWERAGE PROJECT (LOAN 2425-JO) AND GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT (LOAN 2483-JO) SEPTEMBER 28, 1989 Infrastructure Division Country Department III Europe, Middle East and North Africa Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their offical duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURHENCY EQUIVALENT Currency Unit - Jordanian Dinar (JD) March 1984 - JD 0.365 = US$1.00 (Loan 2425-JO) October 1984 - JD 0.370 = US$1.00 (Loan 2483-JO) January 1988 - JD 0.326 = US$1.00 (Loans Closed) GLOSSARY OF ACRONYMS AWSA - Amman Water and Sewerage Authority CERA - Center for Environmental Health Activities EDI - Economic Development Institute EIB - European Investment Bank JVA - Jordan Valley Authority KEW - Kreditanstalt fuer Wiederaufbau NPC - National Plianning Council NRA - Natural Res.urats Authority USAID - United States Agency for International Development WA - Water Authority WHO - World Health rga-nization F' WSC - Water Supply Corporation FISCALYYE& January 1 - December 31  TO* WORLD BANK FOR OFFICIAL URE ONLY Th WO21D SN W&0"gon.DC C0433 U.$ A. September 28, 1989 NEORAND To THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT3 Project Completion Report on Jordan Eight Cities Water Supply and Sewerage Project (Loan 2425-JO) and Greater Anman Water Supply and Sewerage Project (Loan 2483-JO) Attached, for information, is a copy of a report entitled *Project Completion Report on Jordan - Eight Cities Water Supply and Sewerage Project (Loan 2425-JO) and Greater A_man Water Supply and Sewerage Project (Loan 2483- JO)* prepared by the Europe, Middle East and North Africa Regional Office. No audit of this project ho. been made by the Operations Evaluation Department at this time. Attachment of d&ather... daUse In =smam may m ot ehtile be dbioelmd withou Woil akethuuUa  FOR OFFICAL USE ONLY PROJECT COMPLETION REPORT JORDAN EIGHT CITIES WATER SUPPLY AND SEWERAGE PROJECT (LOAN 2425-JO) AND GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT (LOAN 2483-JO) P'aa No. PREFACE ........................................................ i BPSIC DATA SHEES ............................................... ii HIGHLIGHTS ............................................. vii I. INTRODUCTION .................................. 1 Background Data ....................................... 1 Bank Role rt the Sector ............................... 1 II. PROJECT PREPARATION, APPRAISAL AND IMPLEMENTATION ....... 2 A. Loan 2425-JO ............... ........................... 2 ProJect Origin, PreparatJon and Appraisal ..... ........ 2 Project Objectivez .......... .......................... 2 Project Description .......... ......................... 3 Loan Covenants ............. ........................... 3 Effectiveness and Start-tip ............................ 4 Revision of Financing Plan. 4 Revision of the Scope of Works. 4 Project Implementation. 5 Procurement .5 Project Costs .e Disbursements. 6 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 Boak authorization.  TARE OFC!O )rd) (c tinud) PagzeNo B. Loan 2483-JO ................................ 6 ProJect Origin, Preparation and Appraisal 6 Project Objectives 7 Project Description 7 Effectiveness and Start-up . . 8 Revision of the Soope of Work . . 8 Project Implementation .. 8 Procurement . . 9 Project Costs .. 9 Disbursements. 9 C. Factors Common to Both Loans . .10 Reporting . .10 Performance of Consultants, Contractors and Suppliers 10 III. INSTITUTIONAL PERFORMANCE .10 Organizational Development . .10 Staffing . .11 Training . .11 IV. OPERATING PERFOrEANC .12 introduction ......... .. ........... 12 Water Supply ......... .. ........... 13 Unacoounted-for Water ........... ........... 13 Sewerage ...................... 13 Urban Poor ......... ............. 14 V. FINANCIAL PERFORMANCE ...................... 14 Introduction ......... .. ........... 14 Operating Results ........... ........... 14 Tariffs ......... ............. 15 VI. WORLD BANK PERFORMANCE ...................... 15 VII. PROECT JUSTIFICATION ...................... 16 Project Achievements ........... ........... 16 Least-Cost Solution ........... ........... 16 Socio-Economic Analysis ...................... 16 VIII. CONCLUSIONS AND LESSONS LEARNED ........................... 17  IhBLLX CF., C0F (Continued) Loan 2425-JO 1.1 Details of Water Supply and Sewerage Components .............. 18 1.2 Withdrawal of the Low . ........... 19 1.3 Comparison of Actual and Appraisal Costs.20 Loan 2483-JO 2.1 Details of Water Supply and Sewerage Components .............. 21 2.2 Withdrawal of the Loan .................. .................... 22 2.3 Comparison of Actual and Appraisal Costs ...... ............... 23 Loan Disbursements 3.1 Loan 2425-JO . ................................................ 24 3.2 Loan 2483-JO . ................................................ 25 Organization 4.1 Organization of the Water Authority - 1984-1987 ..... ......... 26 4.2 Organization of the Water Authority - 1988 ..... .............. 27 4.3 Organization of a Governorate Administration - 1988 ..... ..... 28 Operating Performanoe 5.1 Components of UnacCAunted-for Water - Greater Awian Area .... 29 Financial Staements 6.1 Comparison of Appraisal and Actual Income Statements ......... 30 6.2 Comparison of Appraisal and Actual Cash Flow Statements ...... 31 6.3 Comparison of Appraisal and Actual Balance Sheets ..... ....... 32 6.4 Water Tariffs ................. ............................... 33 Project Justification 7.1 Greater Amman & Eight Cities Projects. Internal Rate of Return for Sewerage Investments .............. 34  i PROJECT COMPLETION REPORT JORDAN EI5HT CITIES WATER SUPPLY AND SEWERAGE PROJECT (LOAN 2425-JO) AND GREATER AMMAN WATER SUPPLY AND SEWERAGE PROJECT (LOAN 2483-JO) PREFACE This report reviews the preparation, implementation and achievements of the Eight Cities Water Supply and Sewerage Project (Loan 2425-JO), for which a loan of US $30.0 million was made to the Hashemite Kingdom of Jordan. The Loan Agreement was signed in Juxne 1984, became effective in January 1985, and was closed in December 1988. The Water Authority was the implementing agency for the project. This report also reviews the preparation, implementation ar.d achievements of the Greater Amman Water Supply and Sewerage Project (Loan 2483-JO), for which a loan of US $30.0 million was made to the Hashemite Kingdom of Jordan. The loan Agreement was signed in January 1985, became effective in September 1985, and was fully disbursed in December 1987. The Water Authority was the implementing agency for the proJect. The Project Completion Report r-s prepared by the Infrastructure Division CD III of the Europe, Middle East and North Africa Region on the basis of a Completion Report prepared by the Water Authority (EMENA Files No H21106) and on the review of Staff Appraisal Reports, Loan and ProJect Agreements, and other pertinent reports related to proJect implementation. This PCR was read by the Operations Evaluation Department (OED). The draft PCR was sent to the Borrower on August 7, 1