Angola - Lobito Benguela Urban Environmental Rehabilitation Project

% ~ ~ ~~~~~~~~~~~~~~~~~~I _ _q Document of y ) The World Bank FOR OFFICIAL USE ONLY Report No. 9794-ANG STAFF APPRAISAL REPORT ANGOLA LOBITO BENGUELA URBAN ENVIRONMENTAL REHABILITATION PROJECT NOVEMBER 27, 1991 South-Central and Indian Ocean Department Infrastructure Operations Division Africa Region Thi document ha a roficted dltdbidtlon o my be used by rdpknts ondy In tbe peformauia of their officead dutoe Its cottes way not oherwise be disosed wthout Wofid Bank anthozaton.  CURRENCY EQUIVALENTS Currency nitew Kwnza Mar.91-Nov.91 US$1.00 NKz6O From Nov.16, 1991 US$1.00 NKz9O Base Ratel/ If Applicable to petroleum and diamond exports, official financial transactions and five basic consumer imports. Other rates apply as follows: NKz18O for raw materials and selected other consumer imports; and NKz55O for remaining exports and imports. Individual transactions may be conducted through the commercial banks at parallel market rates (NKz780 as of Nov. 25, 1991). MEASURES AND EQUIVALENTS 1 Meter (m) 3.28 Feet 1 Kilometer 0.625 Miles 1 Square Meter (mi)- 10.76 Square Feet 1 Hectare 10,000 ni2 or 2.47 Acres 1 Liter 0.264 Gallons (0.22 Imp. Gal.) 30 Liters per day 7.92 Gallons per day 1 m3 (1,000 Liters) 264 Gallons (220 Imp. Gal.) 1 rn3 per hour 6,336 Gallons per day ABBREVIATIONS AND ACRONYMS AfDB African Development Bank CFB = Benguela Railway Company DNPT = National Directorate of Territorial Planning DPS Provincial Directorate of Health DPSC Provincial Directorate of Commun ty Services EPAB Provincial Water Company of Benguela GIS Geographic Information System GPB Provincial Government of Benguela GPP Provincial Planning Office ICB International Competitive Bidding INPF National Institute of Physical Planning KAP Knowledge Attitude Practice Survey LARGIS Land Registration Geographic Information System LCA Lobito Corridor Authority LCB Local Competitive Bidding MINFIN Ministry of Finance MINPLAN Ministry of Planning NA Not Applicable NORAD Norwegian Agency for Development Cooperation ORT Oral RehydrationTherapy PPF Project Preparation Facility SADCC Southern Africa Development Coordination Conference SATCC Southern Africa Transport & Communications Commission SEUHA State Sec tariat for Urbanism, Housing and Water SIDA Swedish international Development Authority TA Technical Assistance UNDP United Nations Development Program UNV United Nations Volunteers FISCAL YEAR January 1- December 31  FOR OFFICIAL USE ONLY ANGOLA LOBrTO BENGUELA URBAN ENVIRONMENTAL REHABILITATION PROJECT TABLE OF CONTENTS Page No CREDIT AND PROJECT SUMMARY i-v I. BACKGROUND A. Introduction I B. Sectoral Context 2 C. Sectoral Issues 2 D. Rationale for Bank Group Involvement S II. THE PROJECT A. Project Objectives 5 B. Project Description 5 Environmental Sanitation 6 Low Income Sanitation 8 Institutional Development 9 Studies 11 C. Project Costs 12 D. Project Financing Plan 14 HI. PROJECT IMPLEMENTATION A. Institutional Arrangements 14 B. Project Implementation Staff 15 C. Action Plan 16 D. Procurement 19 E. Disbursements 21 F. Project Accounting, Auditing, and Reporting 21 G. Key Indicators 22 H. Mid-Term Review 22 IV. FINANCIAL AND ECONOMIC ANALYSIS A. Empresa Provincial de Aguas de Benguela (EPAB) 23 B. Cost Recovery 24 C. Private Sector Development 25 D. Project Benefits 25 E. Project Justification 26 F. Project Risks 26 G. Lessons Learned 27 V. AGREEMENTS, CONDITIONS AND RECOMMENDATION A. Agreenents Prior to Negotiations 28 B. Agreements Reached at Negotiations 28 C. Conditions of Credit Effectiveness 29 D. Conditions of Disbursement 29 E. Recommendation 29 This report is based on the findings of an apptaisal mission to Angola in May, 1991, consisting of Mr. R. Chavez (senior urban planner and mission leader), Ms. T. Genta-Fons (senior counsel), and consultants Messrs./Mesdames B. Brandberg (sanitation specialist), E. Echeverria (engineer and planner), J. Ladd (financial analyst), M. Lar-Resnde (ecological planner), M. Pamer (geographer), and G. Tannerfeldt (architect planner, SIDA). Messrs. B. Menezes and R. Beardmore were the poer reviewers for the project. Mr. M. Blanc and Mr. F. Aguirre-Sacasa arm the managing division chief and director respectively for the operation. This document has a restricted distribution and may be used by recipients only in the performance of their oMficiol duties. Its contents may not otherwise be disclosed without World Bank authorization.  .jj, Table of Contents (Cont'd) ANNEXES PROJECT-RELATED I Preliminary Environmental Assessment 2 Water, Sewer, and Storm Drainage Rehabilitation 3 Low Income Sanitation 4 Solid Waste Management 5 Implementation Plan and Key Indicators 6 Detailed Project Costs 7 Financial Analysis 8 Geographical Information System TERMS OF REFERENCE 9 Water and Sewer Tariff and Institutional Reorganization Study 10 Environmental Management and Monitoring Study 11 Land Registration Study 12 GPP Key Staff BACKGROUND 13 Selected Documents Available in the Project File MAPS IBRD No. 23181 Angola - Project Location Map IBRD No. 23182 Lobito Benguela - Project Component Map  -iii- ANGOLA LOBITO BENGUELA URBAN ENVIRONMENTAL REHABILITATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: People's Republic of Angola Beneficiary: Provincial Govemment of Benguela (GPB) Amount: SDR 33.6 million (US$45.58 million equival.nt). Tenns: Standard IDA Terms with 40 years maturity. Co-Financing: Norway (NORAD) and Sweden (SIDA) Project Objectives: The project is a free-standing environmental project whose main objectives are to: (a) restoie the water supply and failed sanitary services in order to help eliminate life-threatening epidemics, improve the health of the population, and halt the degradation of the physical environment; (b) improve living conditions in the squatter settlements by providing access to clean water and improved latrines; (c) strengthen the institutions responsible for project management and for operation, management, and control of urban services and the environment by providing technical assistance, logistical support, and training; and (d) assist in policy reform through water and sewer tariff, land registration, and environmental studies. Project Description: The project consists of the following components: a) Environmental Sanitation - rehabilitation and expansion of the water supply and distribution and sanitary sewer systems; rehabilitation of the solid waste management system; and rehabilitation of the storm drainage and erosion control network; b) Low Income Sanitation - provision of clean urban water to all unplanned settlements via a network of 500 standpipes and laundry facilities; a massive improved latrine and sanitary- environmental education program; and a modest urban revegetation program in the unplanned settlements; c) Istitutional Development - consisting of technical assistance and training, and logistical and administrative support for the Provincial Water Company (EPAB); for the Provincial Community Services Department (DPSC); and for the Provincial Planning Office (GPP) to manage and monitor the project as a whole. d) Studies - to assist the Govermment to reorganize the Provincial Water Company and set economic water and sewer tariffs; to define policy issues and action plans for environmental management and monitoring; and to develop a geographic information system and land registration pilot program. The project would also finance the detailed engineering design and supervision of the water, sewer, and storm drainage components; and studies for the preparation of follow-up projects in the infrastructure sector identified during project implementation.  -iv- Benrits and Risks: While justified on health and tnvironmental concerns alone, the proposed project would facilitate the development of the larger Lobito Corridor rehabilitation program. Major direct benefits of the project would be measured in terms of improved health of the population, and in particular of women and children; alleviation of poverty among the lowest income groups in the squatteT settlements; increased productivity of the urban population; positive impacts on the physical and socidl envirornment; and increased efficiency of key institutions serving the cities of Lobito and Benguela. The risks inherent in the proposed project are due to institutional and technical weaknesses which may cause delays in project implementation and lead to further environmental and economic deterioration. There is a potential risk that the govermment may interfere in the administrative autonomy of the provincial water company thereby hindering reorganization efforts and the cost recovery objectives of the project. Unfamiliarity with Bank procedures, problems with communications, and a potentially unstable political environment could lead to significant delays as well. Delays in the overall urban rehabilitation effort could affect the rehabilitation of the Lobito corridor, once it gets underway. Technical assistance, training, and logistical support, initiated during project preparation, are intended to minimize these risks. Project Cost: The total cost of the project is estimated at US$58.88 million equivalent with foreign costs of US$49.20 million which represent 84 percent. The detailed cost estimates in prices as of July 1991 are shown below. Project Cost Estimates (USS million) Percent Local Foreign Totat Totat Foreign 1. EIVIRONNENTAL SANITATION S4.94 $21.24 126.18 45X 81X A. Water Rehabilitation 1.44 8.16 9.60 16 85 B. Sewer Rehabititation 1.18 6.70 7.88 13 85 C. Storm Drainage Works 1.74 4.06 5.80 10 70 D. Solid Waste Collection & Disposal 0.58 2.32 2.90 5 80 11. LOW INCOhE SANITATION $1.55 $2.37 $3.92 7X 601 A. Improved Latrines 1.08 1.72 2.80 5 61 B. Sanitary-Environmental Education 0.15 0.48 0.63 1 77 C. Urban Revegetation 0.32 0.18 0.50 1 35 III. INSTITUTIONAL DEVELOPMENT $0.59 S8.08 58.67 15S 931 A. Technical Assistance 0.31 5.45 5.76 10 95 B. Training 0.04 0.34 0.38 1 90 C. Aclninistrative/Logistical Support 0.25 2.29 2.54 4 90 IV. STUDIES $0.16 S6.13 56.29 11X 97X A. Engineering Design & Supervision - 3.49 3.49 6 100 B. Water & Sewer Tariff & Reorganiz, Study 0.67 0.67 1 100 C. GIS/Land Registration Study 0.08 0.31 0.39 1 80 D. Environmentat Mgt & Monitoring Study 0.08 0.70 0.78 1 90 E. Other Studies - 0.95 0.95 2 100 V. TOTAL BASE COST $7.24 $37.83 $45.06 77X 84K Physical Contingencies 0.99 3.81 4.80 8 79 Price Contingencies 1.45 7.56 9.01 15 84 VI. TOTAL PROJECT COST $9.68 S49.20 S58.88 1001 841 Price contingencies are based on estimated international inflation over the life of the project, averaging 3.9X p.a. per recent IDA guidelInes. Base costs include taxes on locally procured goods estimated at USS1.3 million equivalent, financed entirely by Government.  Financing Plan: (US m;llion) Percent Locat Foreign Total of Total IDA Credit $3.38 $42.20 $45.58 77K NORAD Co-Financing - 3.50 3.50 6Z SIDA Co-Financing - 3.50 3.50 6X Goverirwent 6.30 - $6.30 11X Total $9.68 $49.20 $58.88 100l Estimated Disbursenents: (USM zillion) FY93 FY94 FY95 FY96 FY97 FY98 Total Co-Financing 4.92 2.08 - - - 7.00 IDA - 5.81 10.52 13.14 7.89 8.23 45.58 Govermrient 0.63 0.94 1.26 1.57 0.95 0.95 6.30 Total 5.55 8.83 11.78 14.72 8.83 9.17 58.88 Percent 9% 15% 20% 25% 15% 16X 100X IDA Cueulative - 5.81 16.32 29.47 37.35 45.58 Percent of Total - 13X 36K 65X 82 100S Economic Rate of Return: Not applicable Staff Appraisal Report: Angola-Lobito Benguela Urban Environmental Rehabilitation Project Report No. 9794-ANG Maps: IBRD No. 23181 Angola Project Location Map IBRD No. 23182 Lobito Benguela Project Component Map  I. BACKGROUND A. Introduction 1.1 Angola is one of the richest countries in Africa in land and mineral endowment. In the years since Independence in 1975, however, the economy has become highly distorted because of the rass exodus of skilled manpower, a debilitating civil war, war-induced rationing and ill-designed economic policies. The oil industry, developed as an enclave, has grown rapidly and represents about half of GDP. In contrast, non-oil sectors have performed poorly; growth has been negative and output is significantly less today than in the early 1970s. Manufacturing industries are crippled by lack of raw materials, spare parts, and maintenance. Commerce is atrophied by rationing, state ownership, and rigid govermment controls. Personal incentives are a pervasive casualty, reflected in low wages, high absenteeism, and flourishing informal markets. The foreign exchange markets provide a measure of the distortion with a street rate, NKz800, thirteen times the official rate of NKz6O per US$1.00. Agricultural production and distribution have been severely curtailed by the disruptive civil war in the countryside. Prior to Independence Angola was an important net exporter of agricultural products, but in recent yeara has become increasingly dependent on food imports, including food aid, to supply urban populations, which have burgeoned because of the civil war. 1.2 The Port of Lobito heads the major transportation route of central Angola, the Lobito transportation corridor, serving 99 market towns, one-third of Angola's population of about 10 million, and the neighboring countries of Zaire and Zambia. Prior to Independence the Port of Lobito was one of the most important shipping terminals of South-Central Africa. By 1973 port traffic exceeded three million tons, more than half Angola's shipping tonnage; and exports were more than half the total. Agricultural exports accounted for about 20% of total tonnage; and trans-shipment of minerals from Zaire and Zambia, especially copper, magnesium, zinc, and cobalt, represented 35% of port traffic. 1.3 Caminhos de Ferro de Ben& uela (CFB), Angola's only international railway, links the port of Lobito and the provincial capital, Benguela, 33 kilometers down the coast, with the mineral belts of Zaire and Zambia, traversing a total distance of 1,336 kilometers (see Map IBRD No. 23181). Freight rail activity has been severely curtailed since Independence because of the civil war. The rai way is closed to international traffic; and national traffic, mostly within Benguela province, has fallen by about 70%. With the signing of the peace accord on May 31, 1991, a major objective of the Government is to reactivate the flow of goods along the route served by CFB. IDA and other donors are actively involved in the preparation of a rehabilitation program of the Lobito transportation corridor 1.4 Lobito and Beneuela, twin cities on the coast of central Angola, reflect the problems which afflict the country. The population of Lobito and Benguela has nearly quadrupled to 800,000 since Independence, but the delivery of basic services, especially clean water, has diminished by as much as two-thirds. The problems brought on during the civil war have led to a breakdown of the water, sewer and waste collection systems in the face of rapidly growing populations. The cities now face public health and environmental crises of major proportions. Lack of water and basic sanitation have led to chronic outbreaks of cholera, typhoid and yellow fever. Child mortality is reported at 325 per thousand, exceeding the Angolan national average, 292 per thousand, and more than twice the rate for Sub-Saharan Africa (157 per thousand). Morbidity rates, i.e., the incidence of debilitating disease, are in excess of 35%. Environmental degradation is manifested by other factors, including incipient desertification, erosion, and pollution of wetlands.  2 1.5 The proposed urban rehabilitation project was first identified at the Southem Africa Transport and Communication Commission (SATCC) Coordinating Conference held in Luanda in January 1989 to review the 10 Year Development Plan for the Lobito Transport System of the Lobito Corridor Authority (LCA), SADCC Project G-CE-1. The Swedish and Norwegian delegations expressed interest in the rehabilitation of Lobito and proposed that the World Bank, as executing agent, undertake project preparation and appraisal. A Bank identification mission in June 1989 included both Lobito and Benggwla because the two cities form an enviicnmvuial microregion and socio-economic conurbation. In April 1990 the Swedish International Development Agency (SIDA) and the Norwegian Agency for Development Cooperation (NORAD) created a Project Preparation Trust Fund of Swedish Kroners (SEK) 6.8 million (US$1.2 million) to support the project. SIDA also provided an Emergency Equipment Fund of SEK 10 million (US$1.8 million) to provide short-term support to the water and sewerage systems. In May, 1990 the Bank approved an advance under the Project Preparation Facility of $750,000 to complete the preparation process. B. Sectoral Context 1.6 The Bank's Introductory Economic Review (Rerort No. 8906-ANG) indicates Ont Angr!&_s estimated urban population rose from 15 % in 1970 to 23 % in 1985. Urban growth has been most dramatic in the relatively secure cities along the Atlantic coast. Despite lack of census data it is estimated that the population of Luanda, the capital city, tripled from 450,000 to 1.3 million in the ten years following Independence in 1975, and that the Lobito-Benguela conurbation grew from about 200,000 at Independence to more than 800,000 today. 1.7 Lobito and Benguela no longer stand alone as they did a few years ago. The intensive war- induced urbanization brought a proliferation of small communities around the cities and rapid, unplanned settlement in the low hills parallel to the coast (see Map IBRD No. 23182). The alluvial plain between the hills and coast is well irrigated and intensely cultivated with sugar cane and vegetables, providing work, food and head-loaded water for many. The railway, unable to ply its cross-country route, provides the prncipal means of tra sportation between Lobito and Benguela for the urban poor. CFB shutdes over four million passengers per year, averaging four round trips daily. Though somewhat smaller than Lobito, Benguela is the provincial capital and has an airport which serves the two cities. C. Sectoral Issues 1.8 Environmental Deradation. Environmental degradation in Lobito and Benguela stems from the intensity of the urbanization process and the deterioration of urban infrastructure and services. The population has quadrupled since 1975, due in part to the destabilizing effects of the war, while the delivery of urban services has fallen sharply. Negative environmental impacts include coastal, surface and groundwater pollution, soil erosion and depletion of arable land, changes in surface water regimes and aquatic ecosystems, deforestation and incipient desertification around the conurbation. The adverse impacts of the degradation of the environment on land and water resources, and in tum on human health and economic potential, have reached critical proportions. 1.9 Infrastructure and Services. The newer urban population has severely over-burdened the infrastructure and public utility systems. There has been a significant decline in service and coverage from levels prior to Independence. With limited investment, severe shortages of replacement equipment and spare parts, and inadequate maintenance, the basic urban services of water supply, sewerage, sanitation, and refuse collection are now in a critical state. The Catumbela River basin and aquifer serving Lobito hold an abundance of water year round; however, the Catumbela wehfield and pumping equipment are badly deteriorated. Many older wells have been abandoned and of the four water pumps serving Lobito and Catumbela ten years ago, only two are now in operation. The Benguela weUlfield is likewise totally inadequate. Nearly 80% of the urban population of Lobito- Benguela receive no piped municipal water whatsoever. These people use grey water in the streets and  3 canals or rely on private trucks selling water at exorbitant prices to meet minimum daily needs. The price of trucked water is NKz5O for 30 liters or more than 50 4imes the base rate (see para 1.15). 1.10 Sanitation. The sanitary sewer networks of the central residential areas ate inadequate and largely inoperative due to lack of rnaintenance. Their reconstruction will serve only 42,000 people in Lobito and 34,000 in Benguela, about 10% of the present urban population. Hence, Were is an urgent need for a massive sanitary latrine program to counter observed health and environmental hazards. The management of increased volumes of solid waste is well beyond the municipalities' present capacity. The vehicle fleet, 80% non-operational, is obsolete and has been largely cannibalized for spare parts. Consequently, there are numerous spontaneous garbage dumps along roadsides, in gullies and vacant lots within the urban area. 1.11 Improved sanitation is critical to hygiene, health and general living conditions in any developing country. This is especially true in the cities of Lobito and Benguela and their environs. Even the casual visitor to the unplanned settlements of the Lobito-Benguela conurbation will be shocked at the lack of water and sanitation, and especially by the open fields of human faeces. Cholera, often reaching epidemic proportions, has been the most recent killer with a faecal-oral cycle of transmission, but other diarrhoeal diseases along with malaria and schistosomiasis point to the urgent need for imnprovement in basic sanitation and sanitary-environmental education. Morbidity rates average 35 % in the urban area; child mortality in the Province is reported at 325 per thousand, among the -;;hest in the world, exceeding the national average, 292 per thousand, and more than twice the average for Sub- Saharan Africa (157 per thousand). 1.12 HousiLg. While the urban expansion on the periphery of Lobito is characterized by unserviced squatter settlements, the housing stock in the consol;dated areas, including high-rise apartment buildings, is severely deteriorated from lack of maintenance. Some buildings with broken pipes and plumbing have become almost uninhabitable. In general the housing stock of the periphery is of fair standard: a common house type is two room adobe or cement block. Traditional roofing material is no longer available, and most houses are covered with corrugated sheet metal, which offers little insulation. In addition, there are pockets of grass-thatched shelters throughout the spontaneous settlements. The unplanned layout of settlements will further complicate eventual upgrading. The main problem, however, is the almost total lack of services and infrastructure. 1.13 During project preparation IDA and SIDA initiated investigations into the housing situation with a view to possible inclusion of housing components in the project. The investigations revealed many serious protbems, including a general housing shortage; acute shortages of building materials; outdated maps and cadastral information; lack of socioeconomic information; non-existence of a housing policy; lack of clear ownership status of buildings and land; and lack of a housing finance system. The conclusion during appraisal was that the problems of the housing sector are of a magnitude and complexity that will require a concerted effort by government and donors commencing with policy reform at the national level. 1.14 Institutions. The Provincial Govermment of Benguela overshadows the municipal and local governments which are weak. As is the case throughout the country, administrative bodies at all levels were depleted of qualified human resources after independence. The main problems continue to be lack of managers and technicians at all levels, lack of equipment and spare parts, low salaries, and excessive absenteeism. Among institutions there are conflicts in jurisdiction, overlapping responsibility and authority. A system of 'dupla suborcdLao", or double subordination to central ministries and provincial government, prevails although there is a trend toward decentralization. The Director of the Provincial Planning Office, for example, reports both to the Provincial Governor and to the Ministry of Planning in Luanda. Until March, 1990 the water and electrical authorities were provincial branches of national parastatals; today they are provincial authorities.  4 1.15 Financial Constraints: Low Rents and Tariffs. Rents, tariffs, uses charges and taxes are totally inadequate. For example, monthly runts of state-owned apartments and houses are fixed at NKz2000 for a two bedroom house or apartment with a living room, kitchen and bath, and NKz2S00 for a three bedroom unit. These figures represent US$33 and US$42 per mon'th at the official rate (NKz60 per US$), and a nominal rent of only US$2-3 per month at the parallel market rate (NKz800 per USS). Many tenants opt to pay twelve months rent at a time as a matter of convenience. Water tariffs are fixed at the rate of NKz1O per cubic meter of estimated consumption. Proposals are pending to double or triple the water rate to NKz2O or NKz3O per cubic meter, US$0.33-0.50 at the official exchange rate, but only US$0.03-0.04 at the parallel market rate. There is apparent willingness to address the problem of inadequate rents and tariffs in the Government's financial and economic adjustment plans. A tariff study to determine economnic water and eewerage tariffs is included in the project. 1.16 Financial Constraints: Control of Loal Resources. The state of disrepair of local infrastructure is partially explained by the centralized budgetaiy and financial management system in effect in recent years. Local revenues were ehannelled entirely to the central government which made partial budgetary allocations to local service providers. Although there is movement toward decentralization in some sectors, housing rents continue to accrue to the central budget. The allocation to the Secretariado Provincial de Habitacao, Urbanismo e Aguas (SEUHA), the agency charged with management of the state-owned housing stock, has averaged about 20% of rents collected, sufficient to meet payroll and administrative overheads but inadequate for even rudimentary maintenance. 1.17 International Aid. Several foreign governments and many private non-governmental organizations have active aid programs in Angola. Prominent among these are Sweden, Norway, Portugal, France, Germany, Italy, Spain and Canada. The United Nations group has a large presence in Angola ranging from military observers of the cease fire agreement to numerous economic, social and humanitarian assistance programs. The UNDP, for example, has identified over 100 projects which it is funding or promoting to other donors. The African Development Bank (AfDB) is also active in Angola with projects planned in infrastructure and productive sectors. 1.18 Angola joined the World Bank Group in September 1989. Bank lending strategy is in three parts. The initial focus is on technical assistance and pre-investment operations, which has led to the first two IDA credits: the Economic Management Capacity Building Project (US$23.0 million) and an Infrastructure Rehabilitation Engineering Project (US$42.0). These projects will help formulate economic policy strategies and recommendations, and provide studies for the rehabilitation of key transport and urban infrastructure systems. A second part of Bank lending strategy is assistance in the rehabilitation of key infrastructures. The proposed Lobito Benguela Urban Environmental Rehabilitation Project is the first of these. Other projects in the social services, transport (including the Lobito/Benguela rail corridcr), and electric power sectors are in preparation. Finally, the Bank may consider financial support for the Government's economic adjustment program, once the authorities have demonstrated a commitment to reform and made sufficient progress in adopting key policy measures emanating from the studies financed in this and other Bank supported projects. 1.19 Sectoral Obiectives - The Government's main objectives for the sector are: a) Rehabilitation of basic urban services; b) Provision of water and basic urban services to the lower income population; C) Decentralization of management and control of public utilities serving principal municipalities; d) Gradual divestiture of public enterprises responsible for manufacture and distribution of building materials; e) The gradual divestiture of the publicly owned housing atock; and  5 f) Introuuction of cost recovery principles through economnic rents, tariffs, and user charger. D. Rationale for Bank Group Involvement 1.20 The Bank's Introductory Economic Review identified rehabilitation of urban infrastructure and services as one area vital to the renewed economic viability of the country. In this case, the project would help reverse the environmental degradation which has reached crisis proportions and threatens tho sustained development of one of the country's key urban areas, It would also have a major impact on public health and make a significant contribution to the alleviation of poverty. Experience gained from the project, and the studies financed by the project, will deepen the Bank's '-nowledge of the urban sector and of related environmental issues, thereby contributing to the dev ;lopment of Bank- supported infrastructure projects in other urban centers. The project will also lay the foundation for urban policy reforms, including cost recovery. In addition, by taking the lead in this project, with the support of Sweden and Norway, the Bank will better be able to coordinate the contributions of numerous donors in the large projects emanating from the Lobito Corridor Development Program, estimated at nearly a billion dollars over the next 15 years. II THE PROJECT A. Project Objectives 2.1 Environmental improvements were a major focus of project preparation which led to its classification as a Category D Environmental Project under the guidelines of Operational Directive 4.00, Annex A on Environmental Assessments. The main objectives of the project are: (a) to eliminate life-threatening epidemics, improve the health of the population, and halt the degradation of the physical environment by restoring the water supply and failed sanitary services; (b) to improve living conditions in the squatter settlements by providing clean wLer, improved latrines, and a revegetation program; (c) to strer ,then the institutions respr. -ble for current operation, management, and control of urban services and the environment by prov.. X technical ass.stance, logistical support, and training; and (d) assist in policy reform througii water and sewer tariff, land registration, and environmental studies. 2.2 Worldwide experience documents a high rate of falure of sanitation programs and projects when focus on the technology disregards socio-economic, cultural, religious, and political factors. Therefore, the low cost sanitation component includes a major sanitary-environmental education program designed on the interests, needs and knowledge level of community participants, identified through intensive dialogue. Initial talks with community leaders in the squatter settlements, the director and staff of the Provincial Ministry of Health, and the director of public health of the University of Luanda show a high level of concern for emergency measures, and a deep commitment to long-term development of a successful sanitary-environmental education program. Elements under consideration include emergency measures, studies, education and training, described below. B. Project Description 2.3 The project would consist of the following four basic components (detailed analysis of each of the componenes is shown in the respective annexes): a) Environmental Sanitation, including rehabilitation of the water and sanitary sewerage networks; the solid waste management systems; and the storm drainage networks;  6 b) Low lncome Sanitation, including major improved latrine and sanitary-enviromental education programs and a small urban revegetation component; c) Institutional Development, including technical assistance and training for Provincial ,enlementing agencies responsible respectively for the operation and maintenance of the provincial water and sewer systems (EPAB); solid waste management; low cost sanitation, and sanitary- environmental education programs (DPSC); and overall planning, project management, and monitoring (GPP). Administrative and logistical support to the project includes acquisition of vehicles, telecomnmunication and office equipment, supplies, and spare parts for project use. d) Studihf, including detailed engineering design and supervision of the water, sewer, and storm drainage components; and the following area-specific studies: a water and sewer tariff and institutional reorganization study; an environmental mnanagement and monitoring study; and a geographic information system and land registration study. The project would also finance annual audits of project accounts, and studies for the design and preparation of follow-up projects in the infrastructure sector, identified during project implementation. Environmental Sanitation 2.4 Water Supply - Lobito. The objectives of this component are to rehabilitate the present networks, to double the water supply in both cities, and to extend the municipal water supply to the entire urban area, via public standpipes in all squatter settlements, nearly 400,000 people, or half the urban population. Expected demand for water at the standpipes in both cities is estimated at about 20% of the total urban demand (10,000 m3 of the combined new capacity of 48,000 m3 per day). In Lobito installed capacity will be increased from 300 m3 (nominal 600 n3) to 1,000 m3 per hour (24,000 m3 per day) with the rehabilitation of the existing wellfield and the installation of a new wellfield of six new wells along the Catumbela river; a new chlorination station; and a new 500 mm transmission main feeding the existing 500 mm main to Lobito, Bela Vista, and Alto Liro. Pumping stations and reservoirs will be refurbished to provide storage capacity of over 50% of daily production. The rehabilitated network is designed to supply about 100 liters per capita per day to those with house connections. A network of 300 standpipes will provide 25-30 liters per capita daily to other settlements. Each standpipe with four taps and laundry facilities would serve about 150 families (800- 1,000 persons) within a maximum walking distance of 200 meters. Each standpipe will be equipped with a securely locked water meter set into the standpipe. The main commercial and industrial enterprises, apartment buildings, and residential areas will be connected with new water meters that will remain the property of EPAB. The estimated cost of the Lobito water supply rehabilitation is US$5.4 million. 2.5 Water Supply - Beneuela. In Benguela the existing wellfield is surrounded by residential and industrial buildings with no room for expansion. Present capacity is a nominal 470 m3 per hour; however current output is estimated at less than one-third, or about 150 m3 per hour. Water demand in Benguela in 1990 is calculated at 760 m3 per hour. The increased water production to 1,000 n3 per hour corresponds to projected demand for Benguela in the year 2000. Nine non-functioning wells will be abandoned while three will be rehabilitated by cleaning, video inspection, repairs, well head improvements, testing, and disinfection. In addition, a new wellfield would be constructed along the Cavaco River aquifer consisting of six new wells. The new wellfield has been designed for a peak flow of 500 m3 per hour. The treatment plant has a present capacity of 500 m3 per hour and is designed to remove iron and manganese from the water. Water quality in terms of bacteria count is satisfactory with no harmful pathogens; therefore, the project does not include expansion of the treatment plant. A network of 200 standpipes and wash basins would be provided for the squatter settlements on the periphery of Benguela in a pattern similar to the Alto Liro and Bela Vista programs described above. As in Lobito, the standpipes would be equipped with water meters; and the main commercial and industrial users and larger apartment buildings would also be metered. The estimated cost of the Benguela water supply rehabilitation is US$4.2 mnillion.  7 2.6 SantrSE~rs - Lobito. The present network, serving the main commercial area and low- rise aparment buildings, is clogged in at least half its length, while in the other half raw sewage drains directly into the tidal lagoon - a habitat of the pink and white flamingos. A new gravity network would be provided with two lift stations and a force main connected to the Cornpao system. The Compao network and lift stations were virtually complete in 1975; however, since Independence, no work has been done. The gravity lines have become choked and the abandoned pumping station filled with debris and sludge. This network would be rehabilitated along wish the house connections. Two lift stations would be rehabilitated and equipped with new pumps and controls, and a third would be equipped with a force main to a series of oxidation ponds two kilometers south of the city. The ponds will be located on what is waste land today. The treated effluent would be used to irrigate fruit trees and a tree nursery to close the cycle. The estimated cost of Lobito sewer rehabilitation is US$3.9 million. 2.7 Sanitary Sewers - Benouela. The sanitary sewage network, serving only a small portion of the center of Benguela, is partially broken and clogged. Part of the raw sewage eventually leaks onto the beaches in front of the city. Most of the buildings have septic tanks that overflow into hallways, back patios and streets. This condition is one of the main sources of cholera in Benguela. The central area of Benguela including all buildings above two stories will be connected to a new gravity network. An interceptor sewer will pick up the open sewer pipes that dump raw sewage into the Coringe storm drainae channel. Two sewage pumping stations would be provided along with a force main of four kilometers that will connect to a series of oxidation ponds to the south of the city, where there is adequate capacity for future needs. As in Lobito, the treated effluent would irrigate fruit trees and a tree nursery to close the cycle. The estimated cost of Benguela sewer rehabilitation is US$3.98 million. 2.8 Storn DrainaFe - Beng_uela. The Vala do Coringe drains a major portion of the city of Benguela and has a drainage basin of 60 square kilometers extending inland about 18 kilometers. Over the years the four kilometer channel that traverses the urban area has become choked with garbage, raw sewage and vegetation. With the scarcity of fresh water, slum dwellers have dug mud holes amongst the debris to wash their clothing. The mud holes attract children who play in the dirty water, thus turning the Vala into a rzajor source of disease and a health hazard to the city. The project would provide a 3.8 kilometer dressed open channel that follows the present alignment and gradient to a sea outfall. Lateral storm drains with large inlets on the south side have been included to reduce the flash floods in adjacent neighborhoods (bairros). To lower peak flows an earthen retention pond has been designed east of the airport to provide a five to six hour retention of about 600,000 cubic meters capacity. In addition eight small velocity check dams of 2.5 to 3.0 meters in height, using gabions, would be built upstreama and downstream of the main dam as well as the parallel tributary. Trees would be planted along both sides of the chasnel to provide a canopy of shade. The estimated cost of Benguela storm drainage rehabilitation is US$3. 18 million. 2.9 Stor-m Drainage - Lobito. The seven major storm drainage gullies in the bairros of Alto Liro, Bela Vista, and Vila de Catumbela, overlooking the port and industrial area, have become heavily eroded as squatters have occupied the slopes, cutting the vegetation and notcbing small ledges to build their huts. Many have built in the bottoms of the gullies, The April rains this year demolished many huts and caused fourteen deaths. Before Independence the Portuguese built a few erosion control dams. Most of these are now filled with debris and sediment but do function as velocity check dams. The project would provide a series of retention/velocity check dams in each of the seven drainage basins. A prototypical design using gabions has been prepared with heights of dam between three and four meters. A total of fifty such dams would be provided, set 300 to 400 meters apart. The estimated cost of Lobito storm drainage rehabilitation is US$2.56 million, 2.10 Solid _Wste Mananemnt. While some equipment has been acquired recently to improve the capacity of the DPSC to manage solid waste, only about 15% of urban waste is now collected, primarily in the downtown areas, and only part of that is disposed in the garbage dumps of Lobito and  8 Benguela. Service to the peripheral settlements is hampered by lack of equipment and poor road conditions which in turn contribute to the breakdown of vehicles. As a result, spontaneous dumps have proliferated along the main roads and in vacant areas in the low income settlements, where pigs and chickens feed and children scavenge for recyclable materials. Due to the lack of latrines, the dumps have a high content of human faeces. The situation results from lack of resources for equipment and spare parts (85% of the recurrent budget is dedicated to salaries), low technical capacity, inefficient organization and weak management. Not surprisingly, the work force is poorly motivated and productivity is very low. 2.11 The solid waste management component would respond to this situation with a two phase plan providing the municipal authorities of Lobito and Benguela with vehicles, tools and equipment, technical assistance and training. The first phase would consist of the urgent removal of the spontaneous dumps from the peripheral settlements, while beginning to establish a system of 2.5 m3 and 10 m3 containers in these areas, and repair of the municipal vehicle maintenance workshops, accompanied by techhical assistance and the sani-.ry-environmental education campaign described below. The second phase would complete the distribution of containers in the periphery and introduce the use of 800 liter containers in the built-up downtown areas of Lobito, Benguela and Catumbela. Provision of equipment for shop rehabilitation, vehicle maintenance, and enclosure and management of the dumps would be concluded in the second phase. Technical assistance would develop the strategic plan for solid waste management and train staff at the various levels. Completion of the program is scheduled two years after the arrival of the management advisors (see institutional development below) and the first part of the tools, materials and equipment. The estimated cost of the solid waste management component for Lobito and Benguela is US$2.9 million. Low Income Sanitation 2.12 Improved Latrines. This component consists of the dissemination of a low cost sanitation technology, based on the production and sale of a dome-shaped improved latrine slab. The slab incorporates important features for hygiene and child safety, and can be easily installed on the top of a simple pit (1.10 meters in diameter). During project preparation a pilot program was launched, in which over 1,0(X) latrine slabs were built, to test the design, methods of production, and acceptability of the improved latrine. DPSC has organized centralized materials storage and production in Lobito and Benguela in order to control quality and the use of cement. As a consequence, trucks will be required to transport building materials to production centers in Lobito and Benguela, and finished slabs to distribution centers throughout the urban area. The latrine slabs are sold for cash (NKz3000 in July 1991) directly to beneficiaries, with free advice on proper ways to prepare pits for installation. Local cart transport will deliver the slabs from the point of sale to the latrine building sites. While trucks will be imported, the hand-pushed carts will be produced locally. The improved latrine program aims to install 100,000 units by 1998 representing nearly 90% of the estimated requirements of the low income population. 2.13 A vigorous promotional campaign is necessary to support the program, as use of latrines is not yet customary. Particular attention will be given to the active involvement and training of community leaders who will conduct the bulk of the promotional program using a wide range of media, including conventional sanitary-environmental education, drama and festivals, community sports competitions, leadership training and commercial stratagems. Promotional materials include T-shirts, caps, ball-point pens, stickers, etc., featuring hygiene and the use of improved latrines. The goal of the promotional component is to create a strong sustained demand for latrines. On-the-job training will be supervised by the resident sanitation adviser with the assistance of two United Nations Valunteers, an instructor in sanitary-environmental education and a construction supervisor. In addition, draft manuals have been prepared on management of the program, construction of improved latrines, promotion, sanitary education, and how to work with people. Study tours will be arranged to visit similar programs in other African countries (e.g., Mozambique and Zimbabwe), to exchange experience and encourage conmmitment to the project. The estimated cost of the improved latrine component is US$2.80 million.  9 2.14 Sanitarv-Environmental Education. The low income sanitation program includes a major element in sanitary-environmental education, designed to safeguard the investment in improved infrastructure (water and sewerage), and to improve the health of the population. Initial talks with community leaders in the squatter settlements (musseques), with the director and staff of the Provincial Ministry of Health, and the director of public health of the University of Luanda show a high level of concem and deep commitment to long-term development of a successful sanitary-environmental education program. Elements under consideration include emergency measures, studies, education and training. Current disease patterns highlight water-borne and water-washed disease transmission, especially cholera and diarrhoeal diseases. While teaching oral rehydration therapy (ORT) and personal hygiene, health workers should also emphasize the basic links between health, water and sanitation. As the ORT program is enhanced, a sanitary-environmental education component can easily be introduced in a way that concern about diseases would lead to increased use of latrines. 2.15 Base-line studies would be carried out in selected pilot areas to help determine the actual environmental health profile of the musseques. The studies would be undertaken with the assistance of public health students of the University of Angola, and should include a knowledge, attitude, 'nd practice survey (KAP-study) covering such specifics as water, sanitation, personal hygiene, faecal-oral disease transmission, and latrine use. There are various channels for community-based education which can successfully reach the targeted population. Official channels would include sanitary-envirommental education elements in the broader program of health education and in the schools. As in the latrine program, leadership training is crucial to the success of sanitary-environmental education; and community religious, political, and cultural leaders would receive maximum support from the project. Educational techniques include radio, television, posters, music, theater, puppets, and promotional material. Several radio interviews have already been aired; selected musicians and artists have shown interest in developing popular material to amplify the community-based education focus. The estimated cost of the sanitary-environmental education component is US$0.63 million. 2.16 Urban Revenetation, including trees, shrubs, and grasses, will improve soil fertility and the microclimate and provide an important measure of erosion control. The program is divided in two parts, revegetation of poor neighborhoods, linked to the latrine program; and erosion control on the beaches and major storm water channels. A tree planting program started in March 1991 by the GPP and DPSC, following guidelines provided during project preparation, met with good initial acceptance. The program would be extended to all standpipe-wash basin stations; to the Vala do Coringe in Benguela; and to escarpment slopes and drainage channels suffering major erosion in Lobito. To strengthen the program the project would provide three water trucks, cacimbas (open wells) with pumps, and other tools and equipment to develop the capacity of DPSC nurseries to produce and distribute the required stock and assist the communities in planting, care, and maintenance. Trees distributed by the latrine program would be irrigated with domestic wastewater. Benefits include increasing the life span of latrines and decreasing stagnant water in backyards, streets and common areas. The estimated cost of the urban revegetation component is US$0.5 million. Institutional Development 2.17 Technical Assistance. An important aspect of project preparation has been the assessment of the capacity and work load of the implementing agencies: GPP, DPSC, and EPAB. All three agencies are staffed with a nucleus of dedicated and capable people. Each agency, however, is faced with multiple tasks and responsibilities, in addition to the project. It was therefore deemed essential to support the existing structures with important inputs of technical assistance in order to ensure timely implementation and to meet the institutional improvement objectives of the project. With this in mind teams have been designed to support each implementing agency with long- and short-term consultants, including two United Nations Volunteers. A condition of credit effectiveness is appointment of the key staff of GPP, including confirmation of the Director as Project Manager, and employment of the project technical coordinator, the financial controller, and the procurement advisor, on terms satisfactory to IDA. Terms of Reference for GPP Key Staff are included at Annex 12.  10 2.18 The proposed DPSC consulting support is in two parts: a) the solid waste management component, comprising two long-term resident engineers to organize and operate solid waste collection and disposal and to organize the vehicle and equipment maintenance workshops; and b) the low income sanitation program, consisting of a long-term resident sanitation advisor, assisted by two United Nations Volunteers, for sanitary-environmental education, and for construction supervision. The proposed technical assistance for EPAH consists of three resident long term nanagers, an operations manager, a mechanical engineer, and a financial manager. Terms of reference for technical assistance to EPAB would be defined during the EPAB institutional reorganization studies (para 2.24). Consultants will be hired through experienced firms insofar as possible in order to ensure team integrity and responsibility, and to minimize Bank supervision requirements. All consultants, firms and individuals, will be contracted in accordance with the Bank's Guidelines: Use of Consultants by World Bank Borrowers and bv World Bank as Executina Agency, dated August, 1981. The budget for Terhnical Assistance, in Annex 6 Detailed Project Costs, covers the cost of ten long term resident advisors, including two United Nations Volunteers, at 36 months each (360 months), and three short term advisors (30 months), a total of 390 man months at an average monthly cost of about US$15,000. The estimated cost of technical assistance is US$5.76 million. 2.19 Training. The principal form of training in the proposed project is on-the-job training which is a direct benefit of the technical assistance inputs described above. A limited amount of overseas training would supplement on-the-job training, a total of US$375,000 for GPP, DPSC, and EPAB staff. GPP overseas training includes six man/months of seninars for the project director and key staff in project management, six man/months of training for specialists in the Geographical Information System, and three man/months in environmental issues. DPSC overseas training anticipates twelve man/months in municipal management, solid waste management, and low cost sanitation. EPAB overseas training would be formulated in the Water and Sewer studies described in parm 2.24 below. The education budget for sanitary-environtental education and promotion of improved latrines, described above, is US$625,000. Thus, the total estimated cost of the training budget is US$1.0 million. 2.20 Adninistrative and Logistical Support. The project contains a substantial administrative equipment budget of US$2.54 million to support the implementing agencies and their respective consulting teams. Need for administrative and logistical support has been clearly established during project preparation and confirmed at appraisal; it is a consequence of the poor condition of equipment and scarcity of supplies as a result of the civil war. The largest item, US$850,000, is budgeted for office repair and equipment for GPP, DPSC, and EPAB, including furniture, computers, printers and software, photocopiers, and drafting and reproduction equipment. US$500,000 is budgeted for project vehicles, allowing one each for the use of long-term resident foreign consultants and their local counterparts. The telecomrmunications equipment budget, US$250,000, provides for small networks of Walkie Talkie type equipment for key emnployees of the implementing agencies, and a dedicated telecommunications system for direct communications with Luanda, not now possible because of the obsolete, mostly inoperative, phone system in place. Finally, there is provision in the project for US$150,000 to purchase furniture and appliances for the housing of long-term expatriate consultants, US$15,000 for each of ten households. The balance of the administrative and logistical support budget is for spare parts (15%), and office supplies (10% per annum for three years). 2.21 For its part the Provincial Government provided assurances during negotiations that it would provide counterpart personnel and adequate office facilities for the technical, administrative, and consulting staffs of GPP, EPAB, and DPSC. The project would finance the repair of office facilities for GPP, EPAB, and DPSC, and the Government would be responsible for ongoing maintenance and operation of these facilities. The Government would be responsible for the provision, necessary repair, and maintenance of appropriate housing for each of the long-term consultants. In addition, the Government would pay all costs of vehicle operation and maintenance, including fuel costs, insurance, and repair services of the vehicles purchased by the project for the use of staff and consultants.  12 ecological baseline for the area. The action plan will assist local authorities responsible for enviromnental management and economic development within the region. The findings and recommendations of the environmental studies will provide the comerstone for environmental rehabilitation and sustainable management of the area's resources and ensure proper monitoring of the impacts of the project. The studies will organize environmental information in an applied form to permit direct use by local decision makers and to assist local government build a capacity for environmental rehabilitation, planning, management and monitoring within the Lobito-Benguela region and the Province. In addition, specific monitoring studies will complement data collected for the diagnostic, thus contributing to the implementation of all major components of the project. The environmental studies will be carried out by GPP to ensure adequate consideration at an approprIate level of government in the context of overall economic and social planning. This work will be complemented by the sanitary-environmental education program, which will provide the education and training necessary to introduce and ensure enviromnental management at the community and individual levels. The studies call for a total of 33 man/months of effort, including a project manager/environmental advisor in residence for 21 months. The proposed studies are scheduled to commence in March 1992 and have a duration of 21 months, until December 1993. An interim report will be completed by December 1992 in anticipation of the project mid-term review. Total cost of the environmental studies is estimated at US$783,000. 2.2, Land Reaistration Study (Annex 11). The cadastral information system in Lobito Benguela covers only part of the built up downtown areas and has not been updated since Independence. There is essentially no socio-economic or geographic data for 80% of the present urbanized areas. Cost recovery, or any other measures of control requiring basic spatial and economic information, are virtually impossible. The Land Registration GIS (LARGIS) is a simplified computer-based land registration system which will make it possible to identify all taxable property. User charges and property taxes would be assessable and levied for the first time, thereby recovering costs and generating financial resources for the provision of improved urban services. The objective of the proposed two-year study is to utilize the GIS component of the project to develop a Land Registration G3IS (LARGIS) application and pilot program. While the specific use of LARGIS is to support taxation management for project cost recovery, a more general use of LARGIS extends to overall project management. The tasks of physical addressing, land registration, and popular participation would require substantial fieldwork in the pilot study areas, involving local staff and local training. Study implementation is programmed over nine calendar months and would involve 13.5 man/months of expatriate effort, two-thirds on site, and 27 mnan/months of local input. The budget for the land registration study is estimated at US$393,000. C. Project Costs 2.27 Total Project Costs are estimated at US$58.88 million of which US$49.20 million is foreign and US$9.68 million local expenditure. The Detailed Cost Tables are set forth in Annex 6 and summarized in Tables 2.1 and 2.2 below. Base cost estimates are in constant prices as of July 1991. The cost of civil works was estimated based on the consultant's final designs and recent bid prices or quotations for similar works or equipment. Imported goods and equipment would be free of customs duties and internal taxes. Taxes on locally procured goods, mainly fuel, are estimated at 15 percent of local costs, or US$1.287 million, and have been included. These would be financed entirely by counterpart funds. Physical contingencies of 15% have been added to the base cost of civil works and equipment, since the final cost of rehabilitation of the water and sewer systems will not be known until the networks are cleaned and tested. No physical contingencies have been allowed for technical assistance, training and education, studies, or other consulting services.  11 2.22 Geonamuhical InforMation System. The Geographic Information System (GIS) is a user friendly, low cost, desktop conmputing facility for processing, using and printing digital maps and images. Preparation of the GIS component started following the June 1989 identification mission, when it was discovered that the most recent mnaps where almost twenty years old. The work thus far includes installation of equipment, spatial data acquisition and processing, development of appropriate tools and methods, training, hardcopy imagemap production, and documentation. The two primary tasks of the GIS are: a) to design and implement a Land Registration GIS system (LARGIS) in support of tax managament for overall project cost recovery; and b) to provide technical support for the environmental and low income sanitation components, and mapping for the environmental management and monitoring studies. The budiget to complete development of the GIS is US$336,000, of which US$135,000 is for short term consultancy; US$79,000 is for computer equipment, site preparation, and supplies; and US$57,000 is for overseas training. The balance, US$65,000, is the value assigned to local salaries, the responsibility of the Provincial Government. The GIS technology, progress to date, and program, including the Termns of Reference for the consultant, are described in Annex 8. Studies 2.23 The studies budget for the proposed project is US$6.29 million including US$3.49 million for engineering design and supervision and US$1.85 for three studies agreed during appraisal: a) Water and Sewer Tariff and Reorganization Studies; b) Environmental Management and Monitoring Studies; and c) a Land Registration Study. In addition, US$750,000 is included to prepare follow-up projects to be agreed during implementation; and US$200,000 is reserved for annual audits of project accounts during the six-year life of the project. The studies agreed during appraisal, along with draft Terms of Reference, are described briefly in the following paragraphs and in detail in the respective Annexes. 2.24 Water & Sewer Tariff and Reorganization Studies (Annex 9). The water and sewer studies are integral components of the proposed project. The objective of the tariff study is to assist the Provincial Government to define and implement economic rates for water and sewer services so that the full costs of investment, operation, maintenance, and replacement of the rehabilitated systems can be recovered without recourse to subsidy. The purpose of the institutional reorganization study is to assist the Provincial Government in the establishment of an autonomous and efficient service company capable of assuming operating responsibility for the rehabilitated networks. To this end the institutional reorganization study wili assist provincial authorities in the design of the reorganized entity, in an analysis of alternative ownership and operating arrangements, and in the selection of appropriate manAagemenAt, technical assistance, and training inputs. In addition, the stuOy team will design and monitor a Rilot vrogram to test selected methods of organization, billing and collection of water sold at standpipes in Lobito and Benguela (pam 3.15). It is anticipated that one firm will be awarded a contract to undertake the water and sewer tariff and institutional reorganization studies and to organize and monitor the standpipe pilot program. The studies would involve a total of 30 man/months of consultant inputs. Contract signature, scheduled for March 1992, is a condition of effectiveness of the IDA Credit. Mobilization of the consulting team will begin immediately thereafter, and the first of three visits to Lobito and Benguela is scheduled for May 1992. All studies would be completed by lanuary 31, 199?. The findings and recommendations of the reorganization and tariff studies constitute important inputs into the decision-making process incorporated in the annual water and sewer tariff review (pam 4.7) and the project mid-term review (pam 3.38). Startup of civil works on rehabilitation of the water and sanitary sewerage networks is scheduled for July 1992; and the mid-term review is scheduled to begin in September, 1993. Thus the consultant's final reports and recommendations would be available for review by the Provincial Government and the World Bank approximately eight months prior to the mid-term review. The estimated cost of the water and sewer institutional reorganization and tariff studies is US$670,000. 2.25 Environmental ManaWaMent and Monitoring Studies (Annex 10). The primary objective of the shudies is to prepar an enviromnental diagnostic and action plan for the Lobito-Benguela microregion. The diagnostic will complement the preliminary environmental assessment and set the  13 Table 2.1 Project Cost Estimates (USS million) Percent Locat Foreign Total Total Foreign 1. EWVIROWIENTAL SANITATION $4.94 $21.24 $26.18 45X 81 A. Water Rehabilitation 1.44 8.16 9.60 16 85 B. Sewer Rehabititation 1.18 6.70 7.88 13 85 C. Storm Drainage Works 1.74 4.06 5.80 10 70 D. Solid Waste Collection & Disposal 0.58 2.32 2.90 5 80 II. LOW INCOME SANITATION $1.55 $2.37 $3.92 72 60 A. Improved Latrines 1.08 1.72 2.80 5 61 B. Sanitary-Environmental education 0.15 0.48 0.63 1 77 C. Urban Revegetation 0.32 0.18 0.50 1 35 111. INSTITUTIONAL DEVELOPNENT $0.59 $8.08 $8.67 15X 93 A. Technical Assistance 0.31 5.45 5.76 10 95 B. Training 0.04 0.34 0.38 1 90 C. Administrative/Logistical Support 0.25 2.29 2.54 4 90 IV. STUDIES $0.16 $6.13 $6.29 11X 97 A. Engineering Design & Supervision (15%) - 3.49 3.49 6 100 B. Water & Sewer Tariff & Reorganiz. Study - 0.67 0.67 1 100 C. GIS/Land Registration Study 0.08 0.31 0.39 1 80 D. Environmental Mgt & Monitoring Study 0.08 0.70 0.78 1 90 E. Other Studies * 0.95 0.95 2 100 V. TOTAL BASE COST $7.24 $37.E3 $45.06 77X 842 Physical Contingencies (15%) 0.99 3.81 4.80 8 79 Price Contingencies 1.45 7.56 9.01 15 84 VI. TOTAL PROJECT COST $9.68 $49.20 $58.88 lOO1 84X Price contingencies are based on estimated internationaL inflation over the life of the project, averaging 3.9% p.a. per recent IDA guidelines. Base costs include taxes on Locally procured goods estimated at US$1.3 million equivalent, financed entirely by Government. Table 2.2 Prqject Cost Summary by Type of Expenditure CUSS Million) Percent Local Foreign Total Total Foreign Works $5.77 $18.92 $24.69 42% 77X Goods 0.82 6.50 7.32 12X 89X TechnicaL Assistance 0.31 5.45 5.76 10% 95X Design, Supervision, Studies 0.16 5.38 5.54 9X 97X Training 0.18 0.82 1.00 21 82% Total Base Costs $7.24 $37.07 S44.31 75x 842 Physical Contingencies 0.99 3.81 4.80 8% 791 Price Contingencies 1.45 7.56 9.01 151 84K Refinancing of PPF - 0.75 0.75 2% 100X Total Project Costs $9.68 $49.20 $58.88 10X2 84( 2.28 Price Contingencies have been added to base costs plus physical contingencies. Lnsumuch as there is no index of domestic inflation in Angola (underlying inflation is esti-nated at 20% per annum), local and foreign costs are calculated in dollars, and all price contingencies are based on recent estimates of intemational inflation. Following current IDA guidelines an average annual rate of inflation of 3.9% is assumed for the years of projected disbursement, Fiscal Years 1993-1998. Price contingencies so calculated are estimated at US$9.01 million, or 19.99% of total base costs (including the Project Preparation Facility).  14 D. Project Financing Plan 2.29 IDA, together with the Swedish and Norwegian aid agencies, would finance 100% of the foreign exchange costs of the project and 90% of the total cost of the erosion control and low income sanitation components. The Government would finance approximately 65% of local currency expenditures, primarily in the form of locally procured labor and building materials. The Swedish and Norwegian Governments have expressed interest in participating via project grants in the amount of US$7.0 million. These grants would be administered by IDA. Thus the Financing Plan in the table below shows IDA's participation at US$45.58 million, the Government's participation at US$6.30 million, and co-financing of US$7.0 million, representing 77%, 11 %, and 12% respectively of total project costs. Table 2.3 Project Financing Plan CUS$ sit I ion) Percent Locat Foreign Total of Total IDA Credit $3.38 S42.20 $45.58 77X NORAD Grant - 3.50 3.50 6X SIDA Grant - 3.50 3.50 6X Goverrunent 6.30 $6.30 11% Total $9.68 $49.20 $58.88 100X III. PROJECT IMPLEMENTATION A. Institutional Arrangements 3.1 Gabinete Provincial do Piano (GPP . Overall responsibility for project implementation resides with the Director of GPP, who reports directly to the Provincial Governor and, under the system of "double subordination", to the Ministry of Planning in Luanda. In addition to its role as chief planning office, GPP enjoys broad executive powers and is generally well regarded in the Province. An important aspect of project preparation has been to obtain assurances from the Central Government of adequate provincial autonomy for project implementation. At negotiations the Government has furnished IDA with: (i) a Ministerial Decree signed by the Ministries of Planning and Finance, empowering the Provincial Government of Benguela, represented by its Planning Office, GPP, to act as project executing agency; and (ii) Implementation Agreements, acceptable to IDA, between GPP and EPAB and between GPP and DPSC, for the implementation of the respective project components. The draft documents were prepared and submitted to the Association during the appraisal mission. 3.2 Emgresa Provincial de Aguas de Benguela (EPAB). EPAB is the provincial water company, with a common Director, but separate operating personnel, for Benguela and Lobito, which are, in effect, subsidiaries of the Provincial holding company. The present condition of the water companies in both Lobito and Benguela reflects the uncertain mandate, lack of resources, and deterioration of physical plant during the years since Independence. During project preparation IDA and the local authorities have confirmed that the water companies are indeed in bad shape. Office and technical facilities are inadequa-te; there is no master plan of water supply and distribution for the cities or the province, and except for the proposed IDA supported project, there are no investment programs. Human resources are inadequate in nearly all key positions, including financial management. The financial organization of EPAB is analyzed in the following cihapter, Financial and Economic Analysis.  15 3.3 The local authorities have been willing to address EPAB's shortcomings frankly and have assured IDA they are ready to take the necessary steps to build efficient organizations. IDA strategy is to begin as soon as possible the water and sewer tariff and reorganization studies to effect an in-depth analysis of technical and administrative problems, as well as alternatives of operation and ownership. The studies would develop and recommend a program of action, to be agreed upon at mid-term, during the period when rehabilitation and construction take place. In addition, the project would finance technical assistance to EPAB to reorganize the accounting system (see pam 4.2), and to operate and maintain the water and sewer networks upon completion of rehabilitation work supervised by the consulting engineer. 3.4 Direcao Provincial de Servicos Comunitarios (DPSC). DPSC's mandate covers a broad spectrum of municipal services, including solid waste collection and disposal, urban road maintenance, licensing and collection of fees for public market operations, cemeteries, parks, gardens, and sport facilities. DPSC faces problems of inefficiency and reorganization similar to those of EPAB. The Provincial Government is aware of DPSC's problems, and with budgetary support of the Central Govermment has contracted long-term expatriate consultants to assist in the reorganization effort. IDA's strategy is to support this effort with additional technical assistance, logistical and administrative support, directed specifically to the relevant project components, i.e., solid waste management, and the low income sanitation and revegetation programs, described in paras 2.17-2.22 above. 3.5 DPSC will implement the solid waste management and low income sanitation programs, including the sanitary-environmental education component, in conjunction with the Diretoria Provincial de Saude (DPS), the Provincial Directorate of Health. Technical assistance under the project would include developing and coordinating the sanitary-environmental education component, one of the principal tasks of the resident sanitation adviser, who will coordinate and train local staff in the implementation of the program. B. Project Implementation Staff 3.6 GPP would have overall management responsibility for the project, including contract management and coordination of the various components through the implementing agencies, EPAB and DPSC. The Director of GPP would be the project manager, supported by a project technical coordinator, a financial controller, and a procurement advisor, as key support staff, financed by the prK,ect under the program of technical assistance outlined in paras 2.17-2.22 Institutional Development above. The appointment of the key staff of GPP, including confirmation of the Director as Project Manager, and employment of the project technical coordinator, the financial controller, and the procurement advisor, on terms satisfactory to the Association, would be a condition of gdi Efftivenes (para 5.3). Tenrs of Reference of GPP Key Staff are included in Annex 12. 3.7 The project manager would be responsibie for coordinating and monitoring all managerial and technical aspects of project implementation. His duties would include liaison of project activities with central, provincial, and local government authorities; compliance with the provisions of the Implementation Agreements, annual action programs, and implementation schedules for the respective project components; supervision of procurement arrangements; timely contracting and overall performance of the technical assistance and studies provided for in the project; ensuring and maintaining appropriate counterpart staff during project implementation; prompt allocation of housing and office space for project consultants; supervision of project financial accounts; and timely compliance with the reporting and auditing obligations of the project. 3.8 The project technical coordinator, supported by appropriate local counterpart staff, would assist the project manager in the supervision and monitoring of all work and study contracts under the project; and jointly with the financial controller, would develop and maintain budgets and systems of  16 cost control, critical path, and physical and financial performance indicators for each project component. 3.9 The financial controller, supported by appropriate local counterpart accounting staff, would keep financial accounts for all project components; ensure appropriate compilation and maintenance of project documentation and files; and prepare and maintain consolidated accounts of expenditure, quarterly reports, annual financial plans and reports, and internal audits, in sufficient detail and format satisfactory to IDA. 3.10 The procurement advisor would carry out, in close coordination with the project manager, the technical coordinator, and the financial controller, all procurement arrangements for project implementation, including packaging lots for consultants' services; purchase of vehicles, equipment, and material, computer systems, hardware and software, printed material, office equipment and supplies; and housing repair and acquisition of furniture and appliances to meet the housing needs of long-term consultants, to be financed under the project. 3.11 In order to ensure timely project implementation a key objective of the project would be to provide each of the three executing agencies with ample technical and logistical support as described in Jntitutional Development (paras 2.17-2.22) above. The organization of the project is outlined in the Project Coordination Arrangements Chart 3.1, and in the Action Plan set forth below. Chart 3.1 Project Coordination Arrangements C. DAretor b Other Depteb t nh G o rocurement te, Thea t ech nical ro ormentatl GPP Control Advisor Coordination Advisor staffUwouldnexpediteiport cernooUnit Superyisory _ _ _ _ _ _ Consulting _ ~~~~~~~~~~~~~Engineer |Accountin Stafffl |Tchrial Technia| C. Action Plan 3.12 Water Rehabilitation. GPP will be responsible for contracting the major civil works through ICB & LCB. Cost controls and rnanagement would be provided by the supervising engineering consultants. The implementation schedule of the ICB civil works of water and sanitary sewage would be coordinlated by the GPP project management team, headed by the technicai coordinator with the assistance of the financial controller and procurement advisor, who, with the assistance of OPP local staff would expedite port clearance of the many items of material and equipment that the contractor  17 must import in a timely manner. Detailed coordination of construction and cost control would be provided by the supervisory engineering consultant. 3.13 The start-up in July 1992, in both cities, is scheduled three months after the contracts are signed as shown in the attached Schedule of Works in Annex 5 Key Indicators and Schedule of Works. The rehabilitation of the Catumbela wellfield and the eight wells in the Benguela wellfield would start simultaneously. Well rehabilitation in Lobito and Benguela would be complete nine months after start-up, along with eight of the twelve wells in Lobito and all six new wells in Benguela. Thus, the increased supply could be delivered to the completed portions of the standpipes in both cities by mid-1993. 3.14 The schedule for standpipes and washbasins is based on one work brigade installing one unit per week. With six brigades ICB contractor would complete the 300 units in Lobito (in the neighborhoods of Alto Liro, Bela Vista and Vila da Catumbela) in one year. The installation of the 63 mm and 75 mm distribution lines would be undertaken by different construction teams who would coordinate their work to connect the lines as the standpipes and washbasins are completed. For Benguela the 200 standpipes and washbasins would be installed by four work brigades in the same twelve month period as in Lobito. Each standpipe will be equipped with a recessed water meter inside a locked steel box, installed by the ICB contractor. The 300 water meters for commercial, industrial, and apartment building users in Lobito, and a similar number in Benguela, will be installed, owned, and maintained by EPAB. 3.15 For each of the 500 standpipe and washbasin facilities DPSC would organize groups of approximately 150 families. The communities would participate in maintenance of the washbasins, periodic cleaning of the sandtrap, and in tree planting. Various schemes for collecting water tariffs at the standpipes were considered during project preparation. At negotiations agreement was reached on the preferred method of organization, billing, and collection of water sold at the standpipes. EPAB will franchise private individuals, similar to gas station concessionaires, who would resell water to individual consumers at agreed prices and margins. EPAB would make periodic visits to ensure proper maintenance and to read the water meter for purposes of billing and collection. This approach has been used successfully in other projects in the region and would be tested in a Rilot program as part of the water and sewer tariff and institutional reorganization studies described in para 2.24 and in Annex 9. The interim water tariff would take into account cost recovery, affordability, and cross subsidy considerations discussed in the following chapter, Financial and Economic Analysis (paras 4.4-4.7). 3.16 Sewer Rehabilitation. Construction of the sanitary sewers for both cities has been coordinated to ensure that the gravity networks and pumping station are in place and connected to the force mains and completed sanitary sewage lagoons before the full supply of water is turned on. This is a necessary precaution to prevent sewage backup and overflow. Sewage management functions are being transferred from DPSC to EPAB under the project. Operation and maintenance of the oxidation ponds would also be the responsibility of EPAB; whereas management and usage of the treated effluent would be controlled by DPSC. 3.17 For Lobito, the rehabilitation of the Compao gravity network will start simultaneously with the start of the water supply works three months after contract signature. At the same time work on the new gravity sewer networks and pumping station for the Commercial Zone and Caponte will start as noted on the schedule. The work is scheduled for completion in one year to coincide with the completion of the full water supply hook up. Two emergency power generators are provided at the key pumping stations to eliminate sewage overflows in the networks. 3.18 For Bengiela, the task is easier since the city drains toward the beach. Only one pumping station and short force main are required within the city center. The major portion of the network will flow by gravity to the main pumping station on the south sides of the Vala dy Coringe, 2.70m below the present grade. This main gravity sewer must be built before the concrete lining machine for the  18 channel reaches this location at the bridge to Baia Farta. The demolition of the bridge must Also be coordinated and the bridge completed before the gravity main is installed. While these are simple tasks, they require careful coordination. 3.19 Vala do Coringe Storm Drainage Channel. The six months construction schedule for the Vala do Coringe Channel must be first coordinated with the rainy season which ends in April and begins in October. If the Coringe Channel cannot start in May '92, due to delays in effectiveness, it must be re-scheduled to May '93. This would not affect the sanitary sewer schedule, but would mean that the people of Benguela would suffer another year with the Vala do Coringe's unsanitary condition. 3.20 The manpower requirement of each of the civil works components has been analyzed to ensure that construction activity employs appropriate labor-intensive construction methods using small pre-st or cast-in-place components. A careful accounting of employment generation would be maintained and fully reported by the contractor and supervising engineer during project implementation. GPP would assemble this information in quarterly employment reports as part of its normal reporting responsibility. 3.21 The project implementation schedule of major civil works is planned over a two-and-a-half- year period with some of the storm drainage dams, latrine program, and lines of credit for building materials extending to six years. The contract approval procedures of the major works have been packaged to reduce processing time to the minimum. GPP and the project technical coordinator would monitor the progress of each component and coordinate the overall project. A series of action plans have been developed for the various components which would be updated for the mid-term review. For each municipality work schedules would be overlaid to determine the criteria for implementation of the project as follows: Table 3.1 Sunmary Work Schedule PHASE DETAILED EXECUTION ENGINEERING & BID OF WORKS DOCUMENTS E.lm I Water Supply-Rehab & Expansion 05/91 - 09/91 07/92 - 7/94 II Sanitary Sewers 05/91 - 09/91 07/92 - 7/94 III Vala do Coringe Drainage Channel 05/91 - 09/91 05/92 - 12/92 IV Storm Drainage Works 04/92 - 10/92 07/92 - 12/97 V Latrine Program 02/91 - 07/91 05/91 - 12/97 VI Solid Waste Collection & Disposal 03/91 - 07/91 07/92 - 12/94 Municipal Services Support 3.22 Plans I & II, Water Supply & Sanitary Sewers, would be phased to ensure early delivery of water to the first completed sections of standpipes and water networks in the two cities and to coordinate the rehabilitation of the utility networks and installation with the surface and sub-surface drainage works. Effectiveness is expected in March, 1992 and the completion date for these works would be July 1994. The 24 month schedule for major civil works is considered realistic in view of the urgent need for water supply and sanitary sewerage, the close attention paid to the packaging of the  19 project, and the combined management skills of GPP and the supervising engineers. Completion date for the Storm Drainage Works (Plan IV) and the Latrine Program (Plan V) would be December 1997. The completion of the project is scheduled for March 31, 1998, with the closing date Se-ptember 30, 1998. The project implementation period of approximately six years is comparable to that of a similar larger project in Mozambique and seven years generally for urban projects supported by the Bank. 1. Procurement 3.23 Contracts for works and goods valued greater than US$500,000 would be awarded under procedures for International Cornpetitive Bidding (ICB), as set forth in Guidelines for Procurement under IBRD Loans Rod IDA Credit, published by the Bank in May 1985. Contracts for works and goods less than US$500,000 would be awarded on the basis of local competitive bidding (LCB), under procedures satisfactory to the Association. Accordingly, contracts for the major civil works (US$27.92 million) would be awarded, after prequalification, on the basis of ICB. The works would be packaged into two contracts including supply, installation and commission of a) water supply and distribution, and b) sanitary sewerage and storm drainage. Contracts for lesser works such as repair of the municipal vehicle maintenance shops and other offices, and construction of the small erosion-control retention dams (aggregate value of about US$4.63 million) would be awarded th:ough Local Competitive Bidding (LCB). as these are labor-intensive smaller contracts unlikely to attract foreign bidders. These LCB contracts would, nevertheless, be open to foreign bidders, following local procedures that are being revised with IDA's assistance (see para 3.24 below). Minor works, including the fabrication of improved latrine slabs, sold at cost, and the revegetation program, scattered throughout the project area and spread over time, would be carried out through force account by the DPSC. The aggregate amount of works carried out under force account would not exceed US$S(.8 million. 3.24 Contracts for the acquisition of vehicles and equipment (US$ 4.56) for the solid waste management and low income sanitation components would be awarded on the basis of ICB, in accordance with Bank guidelines cited above. Other logistical support, including project management vehicles, office and telecommunications equipment, furniture and supplies, with an aggregate value of US$3. 11 million would be purchased in several lots (up to US$500,000 each) through LCB because of the variety of goods and the need to have service representatives in the country, especially for computers and office equipment. Finally, local construction materials and seedlings for revegetation, with an aggre.gate value of US$2.22 million, would be purchased through LCB as defined in the procurement guidelines, as these are locally available at competitive prices. 3.25 Consultants would be selected in accordance with the Bank's Guidelines: Use of Consultants by World Bank Borrowers and by The World Bank as Executing Agency, dated August, 1981, for technical assistance (US$6.91 million), detailed design and supervision (US$3.44 million), studies (US$3.35 million) and training (US$1.2 million). Technical assistance would be provided to OPP, the main implementing agency responsible for carrying out all procurement under the project, except the force account works carried out by DPSC. GPP's procurement capacity would be strengthened by employing an experienced procurement expert, a financial comptroller and a technical coordinator. This team would also be responsible for training local counterpart staff throughout the life of the project (see para 2.19). 3.26 Under the Economic Management Capacity Building project (CR 2274-ANG), the Borrower's procurement regulations and procedures will be reviewed and streamlined, including the design of standard bidding documents and contracts. For the purposes of the proposed project the Borrower has agreed to apply the Bank's guidelines and procedures set forth in Guidelines for Procurement under IBRD Loans and IDA Credits, May 1985. Local competitive bidding procedures would be reviewed by the Bank prior to application; these will include local advertising, public opening of bids, clarity in evaluation criteria, award to the lowest bidder, and non-exclusion of foreign bidders.  20 3.27 To encourage an early start up of project implementation, the following conditions have been introduced in the project implementation schedule: a) completion of the draft bidding documents satisfactory to the Association for the major civil works, prior to negotiations; and b) employment of key technical assistance staff satisfactory to the Association as a condition of effectiveness (para 5.3). 3.28 During project supervision, all works contracts above a threshold of US$ 200,000 would be subject to IDA's prior review procedures. The review process would cover about 95% of total works value procured through ICB and LCB ( 100% ICB and 70% LCB). Goods contracts above US$ ! 100,000 would also be subject to prior review, covering about 80% of total value of goods financed by i the Project. All consultant's contracts would also be subject to prior IDA review. 3.29 Procurement information will be collected and recorded as follows: a) comprehensive quarterly reports will be prepared by GPP, indicating i) revised cost estimates for individual contracts and the total project, including best estimates of physical and price contingencies; ii) revised timing of procurement actions including advertising, bidding, contract award, and contract completion times.; and, b) a completion report prepared by GPP within three months of the closing date. 3.30 Table 3.2 summarizes the procurement procedures to be applied to the various components. Table 3.2 Procurement Arrangenents (USS million) Percent of Project Elements ICa LCB Other KA Totat Totat 1 WORKS a) Water Rehabilitation 12.96 12.96 (11.02) (11.02) 21X t; Sewer & Storm Drainage 14.96 14.96 (12.07) (12.07) 23X c) Retention Dams 3.51 3.51 (3.14) (3.14) 6X cl Building Repair (1) 1.12 1.12 (1.00) (1.00) 2X e) low Income Sanitation (2) 0.79 0.79 (0.71) (0.71) 1X 2 G(.0S a 'thictes & Equipment 4.56 1.00 5.56 (4.56) (1.00) (5.56) 11X b) S4aterials 2.22 2.22 (1.99) (1.99) 4X c) Lo ,atical Support 2.11 2.11 (2.11) (2.11) 4X 3 CONSUL(ANTS a) Tachnical Assistance 6.91 6.91 (6.54) (6.54) 122 b) Design & Supervision 3.44 3.44 (3.44) (3.44) 72 c) Studies 3.35 3.35 (3.17) (3.17) 6X 4 TRAINING 1.20 1.20 (1.08) (1.08) 2X 5 REFINANCING OF PPF 0.75 0.75 (0.75) (0.75) 1X TOTAL $32.47 $9.96 $15.70 $0.75 $58.88 ($27.64) ($9.25) ($14.94) (0.75) ($52.58) 100X 54% 162 282 1X 1002 Notes: (1) Repair of DPSC workshops and GPP, DPSC, and EPAB offices. (2) Fabrication of improved latrine stabs and urban revegetation by DPSC force account. (3) Figures in parentheses are amounts to be financed by IDA and Co-Financing. (4) Cost figures include contingencies.  21 E. Disbursements 3.31 Disbutrsements under the IDA credit are proposed at the rate of 100% against eligible foreign expenditures aJ 90% of total expenditures of selected categories. All disbursements would be net of taxes and duties. Amounts to be disbursed by IDA are indicated in Table 3.3 Disbursement Arrangements. Disbursements against Statements of Expenditure (SOEs) would be made for contracts for works, goods, and services valued at less than $20,000. Documentation in support of the SOEs would be retained by the executing agencies for inspection by IDA's supervision missions. Table 3.3 Disbursement Arrangements (USS Miltion) Percentage of Amount Expeditures Category Allocated to be Financed 1 Works S17.95 a) Water Rehabilitation $7.07 100X of Foreign b) Sewer & Storm Drainage Rehab 7.75 100% of Foreign c) Retention Dams 2.03 90X of Total d) Building Repair 0.64 90X of Total e) Low Income Sanitation 0.46 90X of Total 2 Goods $6.21 a) Vehicles & Equipment $3.57 100X of Foreign b) Materials 1.28 901 of Total c) Logistical Support 1.36 100X of Total 3 Consultants $9.40 a) Technical Assistance $4.73 100X of Foreign b) Design & Supervision 2.38 100X of Foreign c) Studies 2.29 100X of Foreign 4 Training $0.78 901 of Total 5 Refinancing of PPF $0.75 Amount Due 6 Unatlocated $10.50 Total $45.58 3.32 In order to accelerate disbursements and project implementation, a SNecial Account would be established in a commercial bank to serve all project components. In addition, the Government would establish a Project Account in US dollars for counterpart funds. The Financial Controller in the Provincial Planning Office would approve all payments from the Special Account and would be responsible for record keeping, aggregation of documents, and reconciliation of bank statements as required by IDA, and for preparation of applications for replenishment for signature by authorized officials. Assurances on disbursement arrangements were obtained from the Government Ma negotiations. 3.33 Conditions of Disbursement of specific components would be: a) confirmation of the availability of SIDA and NORAD co-financing for the project; and b) proof of ownership or non- existence of encumbrances of the lands occupied by the proposed new wellfields, the oxidation ponds, and the pumping stations for the water supply and sanitary sewer civil works. The Closing Date for the Credit is September 30, 1998. P. Project Accounting, Auditing, and Reporting 3.34 GPP will maintain consolidated accounts in dollars and in kwanzas for the entire project. Responsibility for detailed accounting for all provincial water and sewer works would be with the  22 EPAB, with separate aggregation for Lobito and Benguela. DPSC would maintain separate detailed accounts in dollars and in kwanzas for the solid waste component, the storm drainage works, and the latrine program. 3.35 At neeotiati the Government provided assurances that audited financial statements for GPP, EPAB, and DPSC, including operating statements, comparative balance sheets, and funds flow statemente, acceptable to IDA, would be submitted to IDA within six months of the end of each fiscal year. Statements of Expenditure (SOEs) would be included in the audit and specifically addressed in the audit report. The studies budget includes US$200,000 to cover the costs of annual audits over the life of the project (para 2.23). 3.36 In addition to their annual accounting and audit reporting responsibilities, the GPP would prepare auarterly progress reports which shall include physical, financial, and employment budget indicators for each component, showing actual and projected expenditures, disbursements by category, and performance. These quarterly reports shall be the responsibility of the implementing agencies, EPAB and DPSC, reporting to GPP, and of the project technical coordinator and financial controller, who will compile the consolidated report. Quarterly reports would be due within one month of the close of each quarter. GPP will also provide a project completion report in a format stipulated by IDA within six months of the Closing Date of the Credit. G. Key Indicators 3.37 A detailed timetable and schedule of physical works for each of the major components of the project is set forth in Annex 5 Implementation Plan Key Indicators and Schedule of Works. Other monitoring criteria would include data on employment generation attributable to the project and basic indicators of public health and sanitation developed by the project with the assistance of the low income sanitation advisor (para 2.15 above) and the environmental advisor as outputs of the environmental management and monitoring studies (paras 24-32 of Annex 1). In addition, the Project Implementation Schedule sets forth target dates for important project milestones, including the contracting of consultants, major works, and studies financed by the project, with expected completion and delivery dates of interim and final reports. H. Mid-Tenn Review 3.38 During negotiations agreement was reached to hold a mid-term review approximately 18 months after the date of credit effectiveness. The purpose of the mid-term review is to assess progress achieved in: i) project implementation based on the agreed key indicators for each component; ii) reorganization of EPAB and implementation of economic water and sewer rates based on the findings and recommendations of the water and sewer reorganization and tariff studies; iii) cost recovery of the golid waste and improved latrines programs; iv) implementation of the environmental action plan, based on the environmental studies; and, v) implementation of the land registration pilot program based on the land registration studies. The rmd-term review would result in a revised implementation program, including an action plan and timetable for: i) revision of water and sewer tariffs; ii) the institutional reorganization of the water authority; and iii) application of cost recovery mechanisms for the project components. The mid-term review would also result in a revised list of Key Indicators, including criteria for monitoring the performance of EPAB and DPSC.  23 IV. FINANCIAL AND ECONOMIC ANALYSIS A. Empresa Provincial de Aguas de Benguela (EPAB) 4.1 OQraniation. During the Portuguese colonial regime the Water Service of Benguela was one of the multiple Departments of the extinct Municipal Council (Camara Municipal) of Benguela. In 1976 the Provincial Water Central (Central Provincial de Aguas), the predecessor of EPAB, was created as a dependency of the Ministry of Construction. In 1980 the Water Central was transferred to the Secretary of State for Urbanism, Housing, and Waters (SEUHA), which administers state owned housing property. In March 1990 operating control of the local water companies and water authorities was transferred to the provincial governments by decision of the Council of Ministers. The intent of this decision is to decentralize the operation of the local water companies; however, appropriate corporate charters, by-laws, and regulations to ensure local autonomy are not yet in place. These and other important issues would be addressed and clarified in the water and sewer reorganization an.; tariff studies financed by the project, including the power to set tariffs, and questions of title, ownershlp, and organizational structure. A logical structure would include a provincial holding company and operating subsidiaries for the municipalities of Lobito, Benguela and oiher towns in the interior of the province. 4.2 Financial Accounting. Meaningful financial information is not available owing to weak financial management and the absence of accrual accounting systems. Bookkeeping is essentially cash accounting which is very deficient. There are no annual reports, no inventories, or depreciation, and no funds flow statements. The income and expense statements include a mix of unreconciled current and capital accounts. Charges from the sale of water are mixed with subsidies and grants from central govemment, advances and sales of material to other provinces, sales of basic food stocks to employees, and loan repayments of employees. Expense items include salaries and loans to employees, expenditures for repair and for purchase of equipment. Furthermore, accounting treatment is inconsistent from year to year making comparisons hazardous. Difficulties of financial analysis are compounded by the foreign exchange valuation structure which may make translations into dollars quite misleading. For example, EPAB Benguela received annual subsidies of NKz12.0 and NKzl5.1 million in 1989 and 1990 for investments, worth US$400,000 and US$500,000 respectively at the then prevailing official rate of Kz3O to the dollar. If valued at the unofficial market rate (NKz800 to the dollar), similar kwanza amounts would yield only about US$15,000 and US$19,000. Not surprisingly, there has been no attempt to consolidate the accounts of Lobito, Benguela, and the other municipalities of the province. A priority of the technical assistance to EPAB will be the establishment of coherent accrual accounting systems in Lobito and Benguela. 4.3 Financial Projections. The objective of the Financial Projections (Annex 7) is to determine a range of rates from breakeven to an economic level of full cost recovery of the rehabilitated and expanded water and sewer networks. The financial projections start from a number of key assumptions: a) in the absence of balance sheets, funds flow and income statements only the investments of the project are considered; in other words the project investment is viewed as zero-based or standing alone; b) only incremental water is considered; c) production is assumed at 85% of marginal capacity; d) consumption is taken at 75 % of marginal production; e) the annual cost of operation and maintenance is assumed at 7.5% of initial investment, based on experience in other countries. Thus a breakeven operating tariff for the rehabilitated and expanded water and sewer networks works out in the projections to about US$0.28 per i3. Full cost recovery requires an additional return on investment. A combined water and sewer tariff of US$0.44 would provide an annual return on investment (ROI) of about 10%, sufficient to allow for depreciation and eventual replacement of plant and equipment.  24 4.4 Affordability. These values seem high when compared to present or proposed tariffs of the water company. They are, in fact, conservative when compared to the prevailing prices of vendor- distributed water at free market rates, as shown in Annex 7 Financial Analysis (Page 3). A family of six may p.irchase today only 60 liters per day (10 liters per person), or 1.8 m3/month to meet sub- minimal household needs, paying NKz3000 per month at vendor rates, equivalent to US$3.75 at the parallel rate of NKz800 per US$. After completion of the new standpipe program, the same family would be able to purchase the design standard, 30 liters per person per day, or 5.4 m3 per month at the suggested 'economic rate* of US$0.44 (NKz352) per m3, costing NKz1900 (US$2.37) - three times the volume for 63 % of the price. Thus, despite the lack of reliable socio-economic survey data, there is little doubt based on observed consumption patterns that suggested economic rates are affordable to much of the population. 4.5 Residents in outlying areas and squatter settlements would not benefit directly from the rehabilitated sewer network and, contrary to current practice, should pay less for water than residents in the inner city. The water and sewer tariff and reorganization studies would make appropriate allowance for these important differences in benefits in recommending an economically sound rate structure incorporating generally accepted principles of equity and cross-subsidization. B. Cost Recovery 4.6 Cost recovery is a major issue addressed by the project. The problem is manifested in the low tariff levels prevailing in the water sector, the absence of user charges for the sewer network; and the extremely low rents paid by occupants of state-owned housing. The problem is exacerbated by the overvalued, artificial exchange rate. The project proposes to address the problem of cost recovery through cost accounting in both dollars and kwanzas, and through studies and agreements. The maincenance of all project accounts in dollars will provide a useful benchmark for cost recovery objectives. 4.7 Water and Sewer Tariffs. A proposal has been pending for over one year to double the prtsent rate to NKz20 per m3. Preliminary indications from the financial projections, however, are that the proposed rate increase, based on the official rate of exchange, is artificial and quite inadequate. During negotiations a Water and Sewer Tariffs Action Plan was agreed, which is attached to the Terms ot Reference. for the Water and Sewer Tariff and Reorganization Studies (Annex 9, Appendix 1). The agreed underlying principle is that tariffs will be revised annually to reflect the true economic cost: a) of the cxisting water networks; and b) of the rehabilitated and expanded water and sewer networks. True economic costs are defined as full costs of operation, maintenance, and replacement, converted at a realistic exchange rate. The exchange rate, in tum, is defined as a Reference Value taken as the approximate average of the official and unofficial exchange rates (NK400 as of October 1991). Based on these principles, a first interim water tariff of NK53 per m3 was agreed, which is 5.3 times the present rate, to become effective January 1, 1992 upon ratification by the Provincial Price Commission and the Provincial Government. The agreement calls for a second interim water tariff, at least equal to 80% of the breakeven cost at the prevailing Reference Value for the dollar, to become effective no later than January 1, 1993, based on the findings of the studies financed under the credit (para 2.24). Subsequent tariff reviews would be scheduled during the mid-term project review to take place approximately 18 months after the date of credit effectiveness (para 3.38). 4.8 Solid Waste Collection and Disposal. Cost recovery would be achieved through the gradual introduction of garbage collection fees and charges for emptying of septic tanks and for the disposal of waste at the municipal garbage dumps. Beginning in January 1991, the DPSC began to charge a fee for garbage collection in the served downtown areas. The nominal fee of 100 NKz is collected together with apartment rental payments at the local branches of the Banco Popular de Angola. The technical assistance for the solid waste management component will include a study to determine an appropriate fee structure and methods of collection for the different levels and types of service provided, with the  25 objective of covering recurrent expenditures of the system. The proposed rate structure will be agreed upon during the mid-term review. 4.9 Improved Latrines will be sold at cost plus a small charge for overheads to eligible beneficiaries. Costs would be maintained in both Kwanzas and U.S. dollars. The mechanism for price setting was agreed during negotiations. C. Private Sector Development 4.10 After fifteen years of a highly centralized economic system, Angola is beginning to move towards a market economy. The provincial government has begun to divest some real estate and a number of businesses, including small scale industries and fishing enterprises. The proposed project will stimulate local private sector initiatives at various levels. The informal sector will play i significant role in the low cost sanitation program, by transporting latrine slabs, and providing local materials such as sand and gravel. Repairs of municipal buildings and offices, as well as the construction of small erosion-control retention dams, will provide opportunities for small contractors. Finally, the study for the reorganization of the w'ter company, EPAB, will consider a range of options from management contracts to full privatization. After rehabilitation of the solid waste management system a similar approach would be considered. D. Project Benefits 4.11 Major benefits of the project would be measured in terms of improved health of the population, positive impacts on the physical and social environment and increased productivity of the urban population. These are summarized as follows: Realth and Environmental Benefits: a) Expansion of the water supply will bring clean water for the first time to 80% of the largely low income population, thus elimninating the single most important cause of disease and directly contributing to a reduction in the critically high rates of infant mortality and morbidity; b) Rehabilitation of the existing water distribution network of Lobito and Benguela will help reduce water losses due to leakage, currently in excess of 50%; c) Rehabilitation and extension of the sewage network will divert sewage from the city streets, squatter settlements, wetlands, and bays to oxidation ponds where the treated efflut'nt can be usefully recycled; d) Storm water control will decrease peak flows, thus diminishing erosion and associated flood hazards in the major natural and man made storm water channels; rehabilitation of the Vala do Coringe will clean up one of Benguela's major sources of disease; e) Solid waste management will improve sanitary conditions by providing daily waste collection in most neighborhoods, thus eliminating the accumulation of waste throughout the urban area; f) The improved latrine program will introduce new technology to bring affordably priced sanitation to 80% of the mostly low income population in the project area beyond the reach of the sanitary sewer networks; g) The sanitary-environmental education component will design, promote and implement intensive education in public health and hygiene, control of water-borne diseases, and water- soil conservation; and  26 h) Neighborhood revegetation will help improve the microclimate, soil fertility, erosion control, and nutrition, thus contributing to the ecological, scenic, health and recreational condition of the Lobito-Benguela conurbation. Economic and Social Benet: a) The entire population will benefit economically from access to affordable clean water and improved sanitation, which are expected to reduce morbidity rates measurably, enabling more of the population to work productively more of the time; b) Women and children will be the biggest beneficiaries of ready access to urban water inasmuch as they are primarily responsible for household water supplies and now spend inordinate amounts of time and energy hauling water at great distances; c) Abundant water in the low income settlements for the first time will permit important increases in gardening and production of edible vegetables for home consumption thus helping reduce the real cost of living of the urban poor; and d) The project will create an estimated 2,800 man-years of employment from the construction of the rehabilitated water and sewer networks, the storm drainage works, the solid waste management program, and the low cost sanitation program, including the improved latrine, sanitary-environmental education, and urban revegetation components. Institutional Benefits: The proposed project will help establish sound institutions responsible for water supply and sewage and solid waste management. By establishing appropriate cost recovery mechanisms, the project will enable these institutions to operate and maintain the rehabilitated infrastructure. B. Project Justification 4.12 The proposed project is justified on the health, environmental, social, economic, and institutional benefits outlined above. The fact that over half a million people are presently without water lends urgency to the justification. In addition the project would facilitate the development of the larger Lobito Corridor Rehabilitation Program. Bank experience in similar cases shows that dealing with the urban problems a posteriori can result in costly delays. No Economic Rate of Return has been calculated owing to the difficulties in quantifying the major benefits of the project. While justified on health and environmental concerns alone, the proposed project would facilitate the development of the larger Lobito Corridor rebabilitation program. Major direct benefits of the project would be measured in terms of improved health of the population, and in particular of women and children; aleviation of poverty among the lowest income groups in the squatter settlements; increased productivity of the urban population; positive impacts on the physical and social environment; and increased economic efficiency of the cities of Lobito and Benguela. The project involves mostly rehabilitation of existing infrastructure. Although the Government has not yet been able to formulate a public investment program, the proposed investment is clearly a top priority in the reconstruction of Angola's war- ravaged economy. F. ]Project Risks 4.13 The risks inherent in the proposed project ate due to institutional and technical weaknesses which may cause delays in project implementation and lead to further environmental and economic deterioration. There is a potential risk that the government may interfere in the administrative autonomy of the provincial water company thereby hindering reorganization efforts and the cost  27 recovery objectives of the project. Unfamiliarity with Bank procedures, problems with communications, and a potentially unstable political environment could lead to significant delays as well. Delays in the overall urban rehabilitation effort could affect the rehabilitation of the Lobito corridor, once it gets underway. Other minor risks involve the effectiveness of some of the environmental rehabilitation efforts such as the revegetation component. Technical assistance, training, and logistical support, initiated during project preparation, are intended to minimize these risks. 0. Lssons Learned 4.14 Applying a lesson leamed during preparation, the Bofrower has agreed to delegate to the Provincial Government full authority to execute the project and manage project funds, thus avoiding the costly delays of central government involvement in project management. The proposed project is the first investment project supported by IDA in Angola, and there are no implementation lessons yet to draw from Bank experience. Nevertheless, Angola presents institutional and technical weaknesses that make it comparable to other African countries, and in particular to the Portuguese-speaking nations that share a common colonial heritage and gained Independence at the same time. One of the main sources of lessons learned is Mozambique. In particular the Mozambique Urban Rehabilitation project (Cr. MOZ 1949) which became effective in January, 1989, has components and methods of implementation similar to those in the proposed project. 4.15 A number of these lessons have been applied to the project concept. The project has been scaled down from its original design and now involves fewer components, fewer agencies, and more realistic objectives and expectations. With regard to implementation, the use of an ad hoc Project Implementation Unit has been abandoned in favor of strengthening existing institutional structures. In Mozambique the role of the implementing agency has been successfully defined to that of contract M.nnuement for civil works, supervision, and technical assistance. This management approach, rather than attempting to perform implementation tasks directly, is being applied in the proposed project. In order to avoid time-consuming contract review, the Borrower has agreed to use standard bidding documents and Bank ICB contracts for works and technical assistance. 4.16 The technical design of two project components has also benefitted from the Mozambique experience. Both the solid waste management and the improved latrine programs are designed after successful, wel tested programs in Mozambique, and some early flaws have been avoided. The improved latrine design, which uses no structural reinforcement other than its slightly conical shape, was perfected in Mozambique. Through completion of over 1,000 slabs during project preparation, IDA has effectively transferred a successful low cost technology.  28 V. AGREEMENTS, CONDITIONS AND RECOMMENDATIONS A. Agreements Prior to Negotiations 5.1 Prior to negotiations the Government furnished IDA with: a) a Joint Ministerial Decree, satisfactory to IDA, signed by the Ministries of Planning and Finance, empowering the Provincial Government of Benguela, represented by its Planning Office, GPP, to act as project executing agency (para 3.1); b) Implementation Agreements, satisfactory to IDA, between GPP and EPAB and between GPP and DPSC, for the implementation of the respective project components (para 3.1); c) draft tender documents, satisfactory to IDA, for the water and sewer reorganization and tariff study including terms of reference, draft contract, proposed short list of firms, and letters of invitation, prepared by GPP and approved by the Ministries of Planning and Finance (para 2.24); and d) draft bidding documents satisfactory to the Association for the major civil works, i.e., the water, sewer, and storm drainage rehabilitation (para 3.27). B. Agreements Reached at Negotiations 5.2 During negotiations assurances were obtained from the Government on the following matters: a) terms of reference and a timetable of employment of key project consultants (pam 2.17); b) a Water and Sewer Tariffs Action Plan (para 4.7 and Annex 9, Appendix 1); c) a mid-term review to be carried out 18 months after the date of credit effectiveness (para 3.38), to monitor progress achieved in: i) project implementation based on the agreed key indicators for each component (parm 3.37); ii) cost recovery of the water and sewer systems and of the solid waste and improved latrine programs (paras 4.6 - 4.9); iii) implementation of the environmental action plan, based on the environmental studies (para 2.25); and, iv) implementation of the land registration pilot program based on the land registration studies (para 2.26). d) in conjunction with the mid-term review, agreement on an implementation program, including an action plan and timetable, for: i) revision of water and sewer tariffs; ii) the institutional reorganization of the water authority based on the findings and recommendations of the water and sewer reorganization and tariff studies (para 2.24); and iii) application of cost recovery mechanisms for the project components (paras 4.6-4.9); e) the establishment and maintenance of a Special Account in U.S. dollars for IDA funds and a Project Account in U.S. dollars for Government counterpart funds (pam 3.32);  29 f) adoption of accounting and reporting procedures, satisfactory to IDA, including maintenance of all project accounting in dollars and in kwanzas (para 3.34); the timely preparation and submission of quarterly and annual financial reports (paras 3.35-3.36); and of external audits within six months of the end of each fiscal year (pam 3.35); and g) appointment of project counterpart staff and provision of adequate office space for the technical, administrative and consulting staffs of GPP, EPAB, and DPSC; provision of adequate transportation for all project consultants; and appropriate housing for long-term consultants (para 2.20-2.21); C. Conditions of Credit Effectiveness 5.3 Conditions of Effectiveness would be: a) appointment of the key staff of GPP, including confirmation of the Director as Project Manager, and employment of the project technical coordinator, the financial controller, and the procurement advisor, on terms satisfactory to the Association (paras 2.17 and 3.25); and b) signature of the contract for the water and sewer institutional reorganization and tariff studies on terms satisfactory to the Association (para 2.24); and c) approval by the Provincial Government of Benguela of the Water and Sewer Tariffs Action Plan and implementation of the first interim water tariff increase, agreed at negotiations (paras 4.7 and 5.2 (b) and Annex 9, Appendix 1). D. Conditions of Disbursement 5.4 Confirmation of the availability of SIDA and NORAD co-financing for the project would be a condition of disbursement for specific items under the project (para 3.33). 5.5 Proof of ownership or non-existence of encumbrances of the following lands occupied by the proposed new wellfields, the oxidation ponds, and the pumping stations would be a condition of disbursement for the water supply and sanitary sewer civil works: (i) the new wellfield, 150 by 1000 meters (15 hectares), on the west bank of the Catumbela River, approximately three kilometers upstream from the existing well field (pam 2.4); (ii) the new wellfield, 150 by 1000 meters (15 hectares), on the south bank of the Cavaco River, approximately 1.3 kilometers upstream from the existing well field (parm 2.5); (iii) sanitary sewer pumping stations located in: (1) the Lobito Commercial Zone; (2) Caponte; (3) the Benguela central area; and (4) adjacent to the Coringe Channel, as located on the consultant's drawings (paras 2.6-2.8); and (iv) sanitary sewage oxidation ponds of four hectares each for the Lobito lagoon, located on the waste land approximately two kilometers south of the Bairro Cabata, and the Beaguela lagoon, located approximately two kilometers southwest of the airport (paras 2.6 and 2.7). E. Recommendation 5.5 On the basis of the above actions, conditions, and agreements, the proposed project would be suitable for an IDA credit of US$45.58 million.  TABLE OF ANNEXES PROJECT-RELATED 1 Preliminary Environmental Assessment 2 Water, Sewer, and Storm Drainage Rehabilitation 3 Low Income Sanitation 4 Solid Waste Management 5 Implementation Plan and Key Indicators 6 Detailed Project Costs 7 Financial Analysis 8 Geographical Information System TERMS OF REFERENCE 9 Water and Sewer Tariff and Institutional Reorganization Study 10 Environmental Management and Monitoring Study 11 Land Registration Study 12 GPP Key Staff BACKGROUND 13 Selected Docwments Available in the Project File MAPS IBRD No. 23181 Angola - Project Location Map IBRD No. 23182 Lobito Benguela Project Component Map  AnnxI Page I of 18 LOBITO-BENGUELA URBAN ENVIRONMENTAL REHABILITATION PROJECT THE LOBITO-BENGUELA CONURBATION PRELIMINARY ENVIRONMENTAL ASSESSMENT I. INTRODUCTION 1. This annex contains a brief environmental analysis of the Lobito-Benguela Conurbation (LBC). It provides a first understanding of the LBC's natural environment and its interaction with the social, technological and economic conditions of the region; identifies the features and characteristics of the Conurbation leading to or undergoing environmental degradation, and the possible causes of such degradation; and outlines the potential environmental impact of planned or proposed projects. 2. The data available for the area is limited and the existing socio-enviromnental interactions are complex. Therefore, this report introduces the issues as a first step for further action. The information outlined below is restricted to identifying most immediate issues, and raising questions about the needs and potentials of the Lobito-Benguela Conurbation in relation to the present Project. The information reviewed provides a minimum base for identifying the need for specific environmental impact statements, and for establishing the data necessary for ecologically based planning and management within the Conurbation. Specific components and actions necessary to reverse environmental degradation and prevent or mitigate further negative impacts in the project area are identified, and monitoring of project components is proposed to guarantee proper attention to potential or unforeseen negative impacts. The analysis will be complemented by the environmental studies component of the Project, and followed by preparation of a medium-term environmental action plan. 3. The environmental issues in the Lobito-Benguela Conurbation reflect conditions within and beyond its urban limits and need to be considered within the context of a larger region. These conditions result largely from lack of infrastructre and basic services, and the destabilizing effects of the war, which have caused massive in-migration into the area. The resulting environmental degradation affects land, water, and human resources beyond the Lobito-Benguela Conurbation. I. REGIONAL SETTING 4. The Benguela Province. The Lobito-Benguela Conurbation is located on the coast of the Benguela Province, on the Southwest of Angola. With a territory of 32,927 kn2, the Province holds around 1.2 million inhabitants, some of the higher population densities in the country, and Angola's second most important industrial center. The Province's major economic activities are agriculture, fisheries, industry, and port and railroad tansport, all concentrated within the Lobito-Benguela Conurbation and Baia Farta, about 23 km south of Benguela. At present, these activities are significandy below potential levels as a result of both difficulties following independence and the war. Nonetheless, they continue to play a major role in the development of the Angolan economy. The Benguela Province's industrial development is responsible for approximately 35% of the country's industrial complex. Fish catch accounts for roughly 40% of the Angolan total catch. The Province provides sonm of the major export agriculturd products, and raw material for the Lobito-Benguela 1  Annal Page 2 of 18 Conurbation's agro-industries. 'rotal agriculturl production is difficult to assess since production, except for state-owned agriculture, is largely in the subsistence sector, and surplus is traded in the parallel market, for which statistics are not available. S. The Benguela Province las three climatic areas varying from desert to humid tropical, with an average of 230 C and a rainfall ranging from 100-1000 mm/yr. About half the Province is identified as inappropriate for agriculture due to poor soils; only 1/10 of it presents good agricultural potential. Patches of alluvial soils, however, are spread throughout the poor soils region allowing localized high value agricultural development. The coastal plain holds the Province's best agricultural soils (calcareos pardos and arildicos pardos), and the two largest patches of alluvial deposits. The Benguela Province has two river basins, the Catumbela and Coporolo, with a total catchment area of 28,010 km2. The surface water potential of both rivers is low due to the watersheds' high rates of soil absorption and high evaporation (1300-1500 mm), and low precipitation. The water table is generally 5 metrs deep. 6. The Province's flora and fauna are diverse, albeit poorly managed. The vegetation varies on an eastward axis from the coastal plain, changing from steppes to forests, open forests, and savannas nixed with shrubs. The rate of regeneration for the natural forests where wood has an economic importau-e is reported at 846 m31yr, and the rate of sustainable exploitation at 750 m3/yr. Current wood demand largely exceeds supply, and the Province's deficit is estimated at 45,390 m3/yr. The rate of deforestation is high due to clearings for cash crop cultivation, use of wood as fuel and construction material, and war activities. The area currently cut specifically for wood exploitation adds to 700 ba/yr. Reforestation is limited and the only plantations somewhat managed are those belonging to the paper industry. These plantations are generally of exotic species, mostly eucalyptus spp. and pints spp. The Benguela railroad owns the country's largest eucalyptus planttion. The Province is tich in land and aquatic fauna. TLe meeting of the cold and warm sea currents of Benguela and Agulhas provide optimum conditions for sardine and horse mackerel, Angola's main commercial species. Tropical species predominate off the coast of the Province, which is rich in fish, as well as mollusks and cretaceans. Coastal wetlands provide habitat and resting areas for land and aquatic species, especially birds and fish. Hunting as currently practiced has a certain economic importance within the Province, and is considered a major potential attraction in the development of a tourist industry. The Province has two nature reserves (Chimolavera and Buffalo) about 45 km from Benguela. The Bonguela Province's wildlife and tourist potential, and coastal and marine resources remain largely untapped. On going proposais recommend implementation of a wetland reserve in the Lobito coast, and rehabilitation of the Chimolavera Reserve. 7. The infrastructure and the economic and socio-cultural framework of the Benguela Provincoe is damaged partly as a result of the war. Its coastal area, however, is relatively secure which accounts in part for the currently high population rates and the Province's high participation in the country's agicultural and industral performance. m. THE LOBITO-BENGUELA CONURBATION 8. Physical d Climatic Setting. The Lobito-Bnguela Conurbation lies on the northwest cosal plains of the Benguola Province. It has a tropical, dry, semi-desert climate, with a precipitation of 100D-300 mm/yr. The rainfall is distributed in a six month season rnning from October to April, and often consists of intense storms. lTe average evaporation rate is 1300 mm/yr. The soils throughout the Conurhation are alluvial deposits on quaternary bedrock. In the surrounding region, the soils arm mostly calcakos pardos and aridicos pardos of cretaceous and tertiary formation. The native 2  Ana@xU Page 3 of 18 vegetation isformacao de estepes (steppes). Two major rivers, the Catumbela and Cavaco, provide the Conurbation with rich estuary ecosystems. On the alluvial depressions of the Catumbela and Cavaco rivers, the we er table is at 0.5-4 meters. The chemical composition of well water is that of naturally potable water. 9. Lobito and lBenguela are connected by a railroad and a parallel paved road cutting southward through the coastal plain. The Lobito-Benguela Conurbation is limited by the Atlantic ocean on the west and a escarpment on the east, and presents the most fertile land of thA Benguela Province. The Conurbation's coastal plain is currently cultivated, the main crop being sugar cane. Lobito and Catumbela are located just beyond the border of the coastal plain and the central plateau. 10. Ih LUrban Setting. The urban areas of Lobito and Benguela are 33 km apart. There is however an overlap of the current land use and environental conditions of both cities and the region connecting them. The area linking Lobito to Benguela is presently taken by almost continuous spontaneous settlements; only Damba Maria and Catumbela are planned towns. The 1990 population of the Conurbation is estimated at around 800,000 p.ople, over half the total for the Benguela Province and roughly 89% of Angola's total population. The LBC is located in the Province's highest density area, which reached 95-111 people/km2 by 1989, and is the major determinant of the urban infrastructure of the Benguela Province. 11. The spatial pattem of the LBC results from insecure conditions of the rural areas rather than from opportunities provided by the urban setting. The Angolan state of war has taken a toll on the Province's natural and human resources, setting forth migration out of the inland agricultural areas. The Lobito-Benguela region provide one of the few pockets in the country with relatively stable economic activities and safety. This has led to a rapid increase in the Conurbation's population and resulted in overburdening the area's already meager infrastructure. Most of the population expansion occurred in squatter areas with no basic infrastructure. Urbanization of the incoming population is restricted to urban clusters with no access to agricultural land. The massive presence of urban- unskilled war immigrants complicates planning and policy making for the area's development. There is no local consensus on whether the migrant population will return to agricultural land following establishment of peace. The most common assumption seems to be that the majority will return, but part of the younger generation may remain in the cities. 12. The Coastal-Urban Context. Benguela is the center for the Province's administration and has one of Angola's main airports. Lobito provides a transportation network combitiing a coastal outlet directly connected to the east-west railroad axis, which links Lobito and Zaire; it is a natural port and a major export outlet. It is believed locally that Lobito's privileged natural characteristics, complemented by its connection to the TransAfrican Pathway, the Benguela railroad, and the new Catumbela airport six kilometers south of Lobito will lend it regional and intemational importance. These charderistcs of the Conurbation at the same time provide a base for the region's economic development, and set the framework for degradation of its coastal zone and marine resources. 13. Lobito: The city of Lobito has a population of approximately 415,000 people, while the Municipality of Lobito reaches 545,700 people (See Figure 1). Only about 1/5 of this population lives in the former Portuguese city area, and the major neighborhoods are the Restinga, Compao, Caponto and Bela Vista. The rest of the population inhabits mostly spontaneous settlements (musseqtu) on the hill slopes beyond the city limits, above the port and towards Catumbela, around Bela Vista, and on the plateau Alto Liro. Lobito is characterized by the NE hills, the SW plains and the Peninsula do Lobito 3  Annex 1 Page 4 of 18 (Restinga), five kilometers long and 200-300 meters wide. The city's environment is complemented by the Mousld.o do Lito bay, about 1-2 km wide and 35 ms deep, the coastal wetlands and salt Sede (Lobito Sed 410.000 ponds. The peninsula provides a Jomb* 326 natural breakwater to the port and holds Hlan Noun 4,600 one of the major residential areas, with Hot" PrA_ colonial buildings of two and three Cauumbcla Vila Caum 98,21 stories. Lobito holds the largest Siopio AucareIo 931 industrial development within the LBC. Lanlo 569 Angola's fishing industry is partly based - - in Lobito, Benguela and Baia Farta. Biopio Biopio 3,90 - Estimates for Lobito's annual population Canjala C4jala 5$22 growth vary from 7% to 10%. C..nd 986 - Sat lnon 2,417---- 14. Benguela: Benguela has about 300,000 inhabitants. The city has a EgPo Pa Egit Pf i multi-store central core concentrated between the railroad station and the sea, Priat dehinl 322C.- and houxses about 60,000 people. The 27 "MOwr 328 central core is surrounded by one and two-floor planned residential areas and Toal Population 5455729 spontaneous settlements. The Source: ConaaadodoLobito, Lobito, Jasuaz i991. Municipality of Benguela is formed of -aver 54 bairros (neighborhoods). Tie over 4 barros(neigborhods) TFe 1 Population of tbo Lobito Municipality. industrial area of Benguela lies mostly between the Cavaco river, the railroad and the Benguela-Lobito road. Most fish processing industries are along the coast. Benguela enjoys no natural harbor as such; its roadstead is used chiefly for fishing boats, and the city has Angola's second largest fleet of artisanal fishing boats. Benguela's annual growth is roughly 7 %. 15. The housing stock of the Lobito-Benguela Conurbation is made up of mostly adobe. Thatched roofs are rare, and most older constructions have roof tile. These original materials are being replaced by cement and roof sheets, either corrugated asbestos-cement or tin sheets. The replacement results from the current inaccessibility to wood supplies for roof structuring, lack of roofing leaves and grass, lower prices of the new roofing sheets, and a belief that adobe is both of inferior quality to cement and an inferior technique. The roofing cement-asbestos and metal sheets have raised dissatisfaction due to microcimatic discomfort and a perceived increase in health problems affecting young children. A number of old adobe buildings within the cities are dilapidated or near collapse, threatening the region's colonial architectural heritage. 16. Industry in Lobito-Benguela is largely agro-industry, responsible for 29 % of the Province's labor. Industrial activities are often located next to the water on the coast or the river edge. The major fish-packing industries are in Baia Farta. Along the coast, from Benguela to the Namibe desert, there are several small fishing communities and a few former Portuguese tourist developments. 4  Anex 1 Page 5 of 18 17. The Lobito-Benguela Conurbation suffers from a general lack of infrastructure and basic services, particularly of sanitation, water, low cost energy, and waste management. The LBC also lacks the institutional capability, technical skills and financial ability necessary towards the environmental recovery, planning, implementation and management of its coastal zone resources. IV. MAJOR ENVIRONMENTAL ISSUES 18. Environmental degradation resulting from man's activities within the Lobito-Benguela Conurbation is manifested both within and beyond the Conurbation's limits. Water and land resources are affected, in turn degrading human health and potential economic resources. Negative impacts include coastal, surface and groundwater degradation; soil erosion; changes in aquatic ecosystems; and desertification.l/ Lack of adequate infrastructure and services, and the poverty conditions of the war refugees are major contributors to the current environmental degradation. This degradation, followed by depletion of usable resources --particularly contamination of water and food sources-- increases the vulnerability of the poor further stressing the scant socio-economic conditions of the Conurbation. Following is a brief discussion on the status of some of the major current problems. Water Resources 19. The impact of the Lobito-Benguela Conurbation on the region's water resources currently relates to decrease in water quality, rather than quantity. This results from lack of adequate water supply for both urban use and irrigation. Nonetheless, the lack of water conservation policies, the state of degradation of the water distribution network, and the lack of water-saving techniques and devices, have lead to high water waste. Water losses in the existing water distribution system of both cities is conservatively estimated at 50%. Further unaccounted losses occur in the local open-surface daylight irrigation system which is inefficient in use and conservation of water. Washing streets to keep down the dust is a common sight where water is available. It is crucial that increases in water supply be preceded by an awareness program to avoid escalation of water waste. 20. Water Supply and Demand. Estimates of supply and demand within the Conurbation are complicated by lack of data, as well as by uncertainties concerning the future of the region's refugee population. Deterioration of the existing water supply systems and monitoring equipment results in that there are no actual estimates of the amount of either surface or groundwater withdrawn for urban use. Estimates of consumption are at best shaky. 21. Considering current population trends, estimates of water demand for the Lobito-Benguela Conurbation by 1995 add to 51,500 m3/day. Lobito's pumping capacity is about 7,000 m3/day, and Benguela's roughly 10,000 m3/day. The Water and Sewerage project would increase pumping capacity to 24,000 m3/day each for Lobito and Benguela. This will supply the population of the urban core of both cities with in-house piped water, and provide standpipes for most of the Conurbation's settlements at a maximum distance of 200ms for each and all residences. The rural settlements of Damba Maria and Praia Bonita, in the Municipio of Lobito, will not be serviced by the project. Project estimates indicate that both short and medium-tern water demand (up to the year 2020) within the Lobito- Benguela Conurbation can be met through exploitation of the region's groundwater resources. Water I/ Information on desertification around the project ares is not available. lTis report deals only with the causes of existing desertification (man-induced desentiztion) as identified duing proect prepartion, and by the local commnuities and authorties. 5  Annex I Page 6 of 18 losses will be minimized and monitored in the proposed systems. Overall water conservation, however will depend on both policy development and irmplementation, and user awareness (See par. 19). 22. Lone-Term Water Supplv and Demand. Plans to increase water supply for the region include the construction of a medium-size dan on the Catumbela river and a series of small dams upstream for cattle and agricultural use. There are to date no official proposals or feasibility studies for the above plans; small dams and ponds for agricultural and cattle use are currently built on an ad hoc individual basis. It is recommended that an environmental and resources analysis should be incorporated at the first stage of the above plans, since they may negatively affect downstream water quality and quantity, eventually affecting the Lobito-Benguela Conurbation and its coastal resources. These projects -as well as future projects for industrial, residential and agricultual water use- should be analyzed for their possible negative impact on the water .,sources of the region. Water Oualitv. Sanitation and Public Health 23. The majority of the Conurbation's population inhabits squatter areas lacldng water supply and latrines. The few existing public standpipes (cwfarizes) have intermittent or no water, the few communal latrines are out of service, and the local government does not have enough trucks to provide water delivery on a regular basis. It is estimated that Benguela produces 60 tons of solid waste/day, and Lobito-Catumbela 90 tons/day. Both cities lack the equipment and financing to provide for waste collection, so most of the solid waste accumulates in the streets. The portion collected is dumped in open sites (lixeiras) which are inappropriately located, close to residential areas, water sources and environmentally sensitive areas. Waste collected from septic tanks is dumped on abandoned agricultural sites belonging to the sugar cane plantation in Lobito, and in the Benguela lUxera. 24. Most settlements between Lobito and Catumbela are relatively clean, as consumption is very limited and household waste is usually burnt or buried either in common piles or near the houses. Household, commercial, and industrial waste within the cities are all combined. Where available, industrial garbage collection and disposal is inappropriate and further exposes workers and the public to contamination. 25. Fecal matter, frequently disposed of with the garbage, is present throughout Lobito's and Benguela' streets exacerbating health problems. Wastewater drips from broken sewage and water pipes in multi-store buildings, and sewage seeps onto the cities' streets and sidewalks, providing play ares for children. Existing sewage and drainage channels are often open, and Lobito's major drainag channels are clogged by trash and silt. Faeces are found next to and inside irrigation and drainage channels throughout the Lobito-Benguela road. In unpaved settlements, literal accumulation of faeces clearly indicates production has long surpassed the soils capacity to recycle organic waste. Breeding sites for mosquitoes and rats abound, closing a cycle of environmental contamination and disoase. 26. These conditions pose furter health hazard in areas subject to flooding during the rain season, and are complicated by the regular use of waste water by the population in areas lacling watr supply. In Lobito, water from drainage channels and stagnant pools is used for household cores especially in Alto Liro, Bela Vista and Consta. Wells dug next to and even inside the sewage/storm water outlet Vala do Coringe provide water to neighboring population; and the irrigation-dainage channel parallel to the Lobito-Benguela road provides a major source of water for washing and bathing for nearby populations. Sewage and storm water are used to prepare adobe blocks. 6  Annex Page 7 of 18 27. The combined lack of sanitation and adequate water and food increases vulnerability to diseases spread by air, contaminated water and faeces. Lack of water leads to inadequate hygiene fostering infections. Use of contaminated water for washing or cleaning hands and food related utensils lead to increased risks of typhoid, cholera, diarrhoea and hepatitis. Stagnant water provides habitat for mosquito,s increasing incidence of malaria. Infectious diseases are rampant, and five out of the eight most reported diseases in the Province are water related. Table I lists major diseases in the Benguela Prvince, their relationship to water supply and quality, their rank in the Province's mortality and morbidity rates for 1989, and Angola's infant and child motality rates. Cholera and typhoid often reach epidemic proportions. Diarrhoea is a major cause of malnutrition, which in turn increases vulnerability to diarrhoea. Diarrhoea, malaria and mralnutrition are among the six major causes of infnt and child deaths in Angola. The 1990 morbidity ates for the municiplos of Benguela, Lobito and Baia Farta are 59.2%, 18.1% and 45.4% respectively. Mortality for the saue period is 6.6/1000, 1.3/1000, and 4.5/1000 respectively. Table II ranks the major causes of morbidity and mortality for diseaes in the three municipios and the Benguela Province in 1990. The actual figures may be more alarming, considering that existing statistics do not estimate unreported cases. Table 1: Maior Diseases of the Benruela Province DISEASE WATER 1989 RATES polluted inad. inapprop. most. morb. supply storap typhoid x x 12 cholera x x 6 8 diarrhoea x x 1 2 hepatiis x 8 6 bilhardizia x 4 nularia x 2 1 infan 16911000 child 325/1000 Sources: Adapted from WB/UNDP (1989) in Campos and Ramos, 1990. 4 Stuwaco da Saude er. Angola'. Draft. ps. 40, 41/Tab. 5-2, 424Tab. 5-3. Table H: Rankinz of Maior Diseases in the Benmela Province for 1990 diseas Lobito Benguela Bais Farta Benpuela Prvince * .. e *. a ** a a diarrhoea 1 2 1 2 1 2 12 malaria 3 1 2 1 3 1 31 cholera 5 S 4 5 4 7 5 8 hepatitis 7 7 7 4 6 6 7 6 bilhardizia 6 10 10 5 11 4 typhoid 10 16 1118 12 17 m nortality rate ** morbidity rate Source: lffonnacao Anuai, 1990. Quadros no. 3 a 4. Delegacao Provinial da Saude, Benguela, 1990. 7  Annex-1 Page 8 of 18 28. 'The situation is worse where settlements are concentrated. However, the consequences of this environmental degradation reaches beyond the urban-corridor limits. The resulting diseases spread throughout the countryside through direct and indirect means, and the conditions described lead to contamination of coastal, surface and groundwater affecting existing and potential water supply and water related activities. Bacterial contamination of groundwater poses especial problems in the lower area of Lobito, where the water table is high; groundwater from the well field of Catumbela is contaminated from periodic flooding of the adjacent river. Surface water contamination affects daily activities such as washing and bathing. At major risk are those in direct contact with the river, irrigation water and irrigation canals. Children provide the highest risk group due to their constant exposure to water through either playing or carrying on household tasks, and their higher vulnerability to diseases. 29. The industrial complex of the Lobito-Benguela Conurbation is formed by heavy, medium, light, and a number of cottage industries. No records are available for either water or air pollution due to industrial activities within the LBC, and it is generally reported that the existing industries manage their own wastes. Lobito employs about 30,000 industrial workers. Benguela's industrial development includes 262 light and 26 heavy industries; and '8 fish and derivatives, 24 food processing, and 24 construction industries, employing about 25,000 people. 30. Most industries are operating below capacity, and pollution is thus held relatively low. However, the existing industries have high polluting potential indoors as well as outdoors. Water pollution poses a threat, along with human exposure to fumes and wastes. The most direct environmental impacts of the existing industries result from their production of liquid and solid wastes, and the consequent pollution of the area's water resources. Their effluent typically include high BODs (biological oxygen demand), SS (suspended solid contents), organic matter (which results in high BOD and SS), organic wastes (highly putrescent and with high bacterial population), relatively high pH, and toxic chemicals. Some industries regularly dispose of waste and wastewater into the streets or neighboring rivers. Africatextil (textiles) releases wastewater directly into the Cavaco river; children are seen playing in blackwater streams in the surroundings of Embalagens D'Angola (packaging) and other smaller industries. Changes in wind patterns often lead dust from Lupral (cement) to the residential area of Morro da Quileva. Coasta Resources 31. The Lobito-Benguela Conurbation's coastal resources are affected by water pollution and lack of coastal zone management. Wetlands, bays and estuaries are degraded, with a consequent decline in the products and functions of these systems. Lobito's coast is lined with salt ponds and marshes. Shallow depressions along the north side of the bay provide a natural area for salt extraction. The coasta wedands play a dual role in maintaining the coastal zone. First, they support aquatic and semi- aquatic species at different levels of the food-chain, and provide habitat for economically and aesthetically important species. Second, they provide storm protection for inland areas. Aside from their importance in maining such goods and services, coastal wetlands as well as bays provide major potential for recreation and tourist development. The salines are exploited by fishermen's families, providing direct (salt) and indirect (salted/dried fish) income especially to the Alto Liro's population. About 56% of the fish consumed and 24% of fish landing in Angola is salted/dried exclusively by hand and mostly by women. This labor intensive operation provides a long-lasting, easy storage and light weight product ideal for a domestic market in search of increasing protein availability, and Lobito has the only salt refining factory in the country. Present production is 4,000 tons, with potec ial for greatly increasing, considering the instaled capacity of 80,000 tons. 8  Annex 1 Page 9 of 18 32. Lobito's wetlands, however, are heavily polluted. Few patches of mangroves are left, between Conata and Compao. The wetlands are used for dumping wastes and are further contaminated by urban and storm water runoff mixed with sewage. The salt flats are degraded due to waste pollution and lack of maintenance. There is a proposal that the wetlands housing the pink flamingos become a protected area; other wetlands however are considered to interfere with port maintenance and urban expansion, and are supposed to be filled; similarly, the salt flats are seen as hindering urban order. Lacking a working sewerage network, some of residents of the Compao are installing their own private sewage outlets into the lagoons. Lobito's bay is polluted by sewage and waste from surrounding residential areas, untreated liquid and solid waste from industries located at the edge of the bay, and untreated waste and oil leaks from the ships. Faeces, garbage and trash mixes in with the sand and water at the bay's beaches. 33. The rich tropical waters of the Benguela coast provide Angola with one of its major fishing territories, and the base for two of the Conurbation's most promising economic activities, fisheries and its related industry. The Benguela Province owns the second largest fleet of artisanal fishing boats, and the country's only sNlt refining factory. Fish consumption in the coastal provinces of Angola is 44.5 kg/capita; the national average is 21 kg/capita. Domestic consumption is expected to reach 23.2 kg/capita by 1995. Consumption at Angola's hinterlands -currently at a low of 2.7 kg/capita due to the war- should increase following improved security and food distribution, further strengthening the fisheries sector. This economic importance is complemented by the fact that fish provides 40% of the animal protein consumed by the Angolan population, and provides the basic -and often the only- food source for the poor along the coast. Fisheries are recognized as one of the major resources for potential development in the Benguela Province. Existing data show official fish landings in Benguela add to 31.4% of the national total. It is estimated that current local catch will more than double by the year 2000. 34. Demand for high quality species provided by artisanal and coastal fishing is increasing rapidly. This has led the Angolan government to adopt a strategy towards increased support for artisanal and coastal fisheries, which are especially important in generating employment for the local population. Artisanal fishing is important especially in Benguela. However, this promising economic activity as well as all related industrial development could be threatened by pollution of the Benguela Province's coastal waters. Experience from other countries show localized pollution due to urban runoff and sewage, wetlands pollution, and coastal erosion affects coastal fishing resources through changes in habitat and food chain; and regular use of ports for oil transporting increases the potential for coastal water pollution due to oil leaks and waste. Demersal species and crustaceans, of major importance to artisanal fishing, are especially vulnerable to water pollution.2/ Contamination of shellfish can lead to health hazards, posing special problems in the presence of cholera. Studies on the status of Angola's coastal fisheries are limited, and information on catch declines are limited to the effects of over-fishing. Fishermen throughout the Lobito-Benguela Conurbation and Baia Farta, however, report steady decline in fish catch along the coast. Further threats to the Province's coastal water resources result from erosion of the Benguela coast, above Lobito, and especially around the city of Benguela. Land Resouxrces 35. Degradation of land resouces within the Lobito-Benguela Conurbation involves localized degradation resulting from urban sprawl, as well as from lack of natural resources management at the 21 Denmeral species live close to the seabed, and ae abundant in the shallow waters of the coast. 9  Annex 1 Page 10 of 18 local and national levels. This involves degradation of agricultural and urban land, forests and living resources, and desertification. 36. Agricultural Land. The poor agricultural potential of most of the Benguela Province naturally increases the agricultural value of the Province's patches of alluvial land. The Lobito-Benguela Conurbation, however, is located on the Province's largest stretch of alluvial land. This siting has directly affected the Province's potential agricultural development by diverting prime agricultural land into urban use. Agricultural land within the LBC is increasingly allocated to urban uses. Erosion of the hillsides bordering farmland negatively affects agricultural performance. The Conurbation's agricultural land is further degraded through high rates of soil erosion resulting from upstream deforestation and a generalized lack of soil management. Relatively large scale deforestation for cultivation of land in the headwaters of the Caimbambo directly affects land and water quality in the Cavaco river basin. 37. Urban Land. In Lobito, the hiUsides and escarpments of Alto Liro and Bela Vista are seriously eroded, threatening part of the existing housing. In Bela Vista, squatter houses are built inside the major storm water channel, further carving the channel's heavily eroded sides. Streets and paths in settlements throughout the escarpment area from Lobito to Benguela are rapidly eroding away. In some areas, carving the soil for the production of adobe blocks ignores on-going or potential erosion, and negative effects in soil fertility. Urban trees are often illegally pruned --and sometimes cut- for fuel wood, regardless of the existence of heavy fines (NKz 50,000). 38. Degradation of Forest Land and Desertifi . Lobito and Benguela's energy is provided mostly by charcoal, together with bottled gas. Fuel wood is the major source of energy for aU other LBC's households. Charcoal is largely used in commercial operations. Available estimates show total demand for wood at the Lobito-Benguela Conurbation, considering the Benguela Province's rate of consumption of 0.04 mn/person/yr, adds to 24-28,000 m3/yr. The current sustainable supply of wood within the Benguela Province is estimated at 750 m3 yr. Assuming that the LBC, with roughly half the population of the Province, consumes 350-400 m3 yr of the sustainable supply, the LBC's wood deficit adds to 23,600-27,600 m31yr. This accounts for roughly 60% of the Province's estimated deficit of wood supply. There are currently no plantations targeting fuel wood production. 39. Insecurity caused by the war lead to a pattern of concentration of wood exploitation in areas of relative security. As a result, wood exploitation outnumbers natural regeneration within specific forest land in Angola, contributing to the current degradation of forest resources. Irregularity in the supply of wood to urban areas due to the war, and high prices, lead to uncontrolled cutting of fuel wood within and new urban land. The result is depletion of vegetation, followed by increased erosion and decreased soil fertility, and the formation of patches of desert-like land. Women report collecting wood up to 30 kilometers away from the LBC. Around Baia Farta, Caota and Caotinha, the traditionally careful selection of tree branches for fuel wood has been replaced by drastic cuttings, often leading to death of the whole tree. Existing regulations concerning forest reserves prevents legal exploitation of wood resources up to a distance of 75-100 kms from the LBC, adding to the costs of commercial wood and fuelwood within the ar considered. 40. Desertification of land along the border of the Namibe desert south of Baia Parta poses a tra to the survival of the Lobito Benguela Conurbation. No estimates are available on the rate at which desertification is spreading towards the north. However, it is locally reported that the desett, beyond Baia Farta in the mid 1970s, already engulfed most of the city's spontaneous settlements. The shnzbs and small trees successfully grown in the area as part of a 1970's desertification control project were 10  Annex I Page 11 of 18 cut for fuel wood following supply shortages due to the war. A pilot reforestation project started within the last two years is failing mostly due to goat gmzing. Despite major difficulties, the Provincial authorities are looking at appropriate alternatives to address the problem, including extending efforts in reforestation and establishing the use of solar stoves. 41. The Lobito-Benguela Conurbation's living resources include a full spectrum of aquatic fauna, ranging from salt to fresh water species. The economic, nutritional and aesthetic values of this fauna prosent excellent potential for development of the local communities. Particularly important are coastal fisheries and the pink flamingos of Lobito. However, although fish, mostly coastal species, are locally and nationally recognized as an important resource, other fauna do not have the &%me eriuomic connotation. 42. Poliution of waterways, wetlands, bays and estuaries affects flora and fauna, decreasing the local wealth of aquatic, semi-aquatic and terrestrial species. Species diversity is affected, potentially threatening possible economic activities including coastal and fresh water fishing, tourism, and recreation; and directly affecting nutrition and health of the poorest sectors of the LBC's population, which are largely dependent on fish protein. Decline in the number of flamingos and egrets is reported by Lobito's population and authorities. Decrease in coastal fish catch and contamination of fish and shellfish by sewage water and faeces are reported throughout the LBC's coast. Use of mangrove vegetation for fuelwood following expansion of Catumbela led to a near extinction of Lobito's oyster, a major former local resource both as a shellfish and raw material for limekilns. 43. The terrestrial fauna around the Lobito-Benguela Conurbation is varied, and presents a potential both towards economic and nutritional uses. Small species as well as large game offer a special attration. About eight hunting ranches exist within a 125 km radius of Benguela; however, some of the locals report that uncontrolled hunting and lack of resources management already led to decline of local and national species. 44. Angola's lack of management, regulations, control and/or enforcement of existing legislation concerning fisheries directly affects artisanal fishing within the Lobito-Benguela Conurbation. Foreign fleets are considered responsible for over fishing, leading to stock depletions and over-exploitation. Angolan and foreign industrial fishing vessels illegally compete with artisanal fishing by invading territory officially set aside for artisanal and coastal fishing. A management plan for sea water fishing exploitation is being drawn at the national level. However, the LBC needs a local plan able to guarantee the sustainable exploitaltion of said resources along its own coast. V. CONCLUSIONS AND RECOMMENDATIONS 45. The Lobito-Benguela Corridor's environmental degradation range from decrease in water quality to fast advance of desertification. The consequences of such degradation include serious health deterioration, depletion of existing and potential natural and human resources, and destruction of the physical characteristics that provide the base for the region's survival as an economic center. Water resources are degraded due to pollution caused by lack of sanitation and waste management, erosion of upstream and urban soils, and deforestation within the Catumbela and Cavaco watersheds. This degradation is present at both the urban and rural settings, and directly affects the Lobito-Benguela 11  Annex 1 Page 12 of 18 Conurbation's coastal resources; coastal, surface and groundwater; bays; estuaries; wetlands and beaches. 46. Environmental degradation takes a special toll on the population's health. The resulting diseases decrease the population's ability to perform at the individual, social and economic levels, posing a constraint to economic productivity and thus becoming a burden on the State. Other effects of the LBC's current environmental degradation include decreases in the economic performance of seemingly unrelated sectors. For example, pollution of wetlands may decrease their ability to support and replenish stocks of coastal fisheries, which in turn affects economic returns from existing and potential activities such as fisheries, fishing and fish related industries, and tourism. Desertification, still beyond the geopolitical limits of the Lobito-Benguela Conurbation, is approaching Benguela from Baia Parta at an alarming speed. Its implications on the medium-term reach beyond natural resources' depletion to threat the very survival of the individuals and societies within the LBC. Its most immediate impact in the LBC is the potential increase in population pressure following migration out of affected areas. 47. The direction taken by development within the cities of Lobito and Benguela will largely determine the environmental future of the Benguela Province. The extent to which the Lobito-Benguela Conurbation's impact on the region's natural resources and environment is negative or positive will depend on carefil consideration of both the opportunities and the constraints presented by the coastal zone and its resources. 48. The local government has recognized the significance of the Conurbation's environmental issues, along with the need to consider environmental rehabilitation of the region, and base its further development on enviromnentally sustainable decisions. The lack of data, particularly applied information is recognized as hindering both correction of policies negatively affecting the environment and natural resources, and the development of appropriate policies and projects. Assistance was requested to start a basic information and data center targeting solution of major environmental problems, determine these problems' sources and degree, and stressing short-term, on-the-job training of local staff to carry out environrment-related projects. 49. The serious degradation of the environment and of natural resources highlights the need to establish environmental priorities according to an emergency strategy. That is, considering immediate solution to problems posing highest threat to public health, and to the physical and economic survival of the Lobito-Benguela Conurbation. These include lack of sanitation and water supply, soil erosion, and desertification. Parallel to providing emergency solution to these problems, it is necessary to develop basic information and local capacity towards further rehabilitation, planning and policy making conceming development and conservation of the region's resources. A. SHORT-TERM MEASURES 5o. Sanitation and Water Supply: a) Accelerate and expand the latrine and basic water supply programs to reach the totality of the population. b) Expand the latnne program to include environmental education relating to existing and potential water-health issues; treat said education as a prerequisite to water supply particularly to residential neighborhoods as to prevent uncontrolled increase in 12  Annex 1 Page 13 of 18 diseases. Include awareness of the dangers of inadequate water use and storage in both its urban and rural aspects, due to the urban-rural nature of activities and conditions within the LBC. Environmental education should emphasize water conservation, erosion control and rehabilitation of areas immediately threatened by desertification; each and all these items should be combined with health improvements. c) Implement service areas as to provide for minimum conditions towards health improvement. These areas should include a minimum of common water (chqfariz), sink for washing clothes, and a well for disposal of used water. The surface next to the water should be paved with permeable material to prevent formation of pools of stagnant water. Used water should be used to irrigate shade and fruit trees. d) Expand the sewerage system to cover the central urban cores of Lobito and Benguela; develop a system to allow rapid rehabilitation of the sanitary core of all existing multi- store buildings. 51. Soil and LWater Conservation a) Stabilize dirt streets and eroding slopes by planting the cactus spp. common in the region (and locally used for protective fences, erosion control, medicine and food) until resources for implementation of better accepted species (e.g., fruit trees) become available. b) Implement storm water control above Lobito and Benguela to decrease erosion and other flooding hazards along major storm water channels; reinforce existing legislation concerning removal of housing inside storm water channels. c) Implement regular cleaning of all major storm water channels. d) Stabilize the borders of secondary storm water channels with the local cacts spp. to both provide for erosion control, and act as a barrier in the use of the channels as playground areas and for bathing and washing clothes. e) Develop policies and public awareness concerning water use and conservation prior to implementation of new water distribution systems. f) Implement water re-use systems and techniques. 52. Desertification Control a) Re-institute the desertification control project, preferably considering methods approved 'in loco' in the 1970's. b) Develop and implement re-vegetation projects targeting local supply of fuelwood, construction material and improvement of microclimate; extend and support on-going efforts by local agencies and communities to implement reforestation. 13  Page 14 of 18 c) Create incentive and maintenance systems for re-vegetation of poor residential neighborhoods as part of project(s) in improvement of child nutrition and health. 53. Envi_c'nmental MAngement and,Monitoring a) Complement the preliminary environmental analysis of the LBC, focusing on the gathering and organization of information necessary for ecological planning and monitoring. b) Prepare a phased environmental action plan for the LBC focusing on control of existing, as well as prevention of future enviromnental degradation and resources depletion. c) Strengthen local capacity for environmental planning, monitoring and management. B. MEDIUM AND LONG-TERM MEASURES 54. Preventing the occurrence of negative environmental impacts from economic development is an essential part of a region's rational development policy. The Lobito-Benguela region, as Angola in itself, is undergoing a transition period characterized by the need of substantial physical and economic rehabilitation. As difficult as this situation may be, it offers the unique opportunity of re-ordering development. As it stands now, such rehabilitation may result either in an uncontrolled increase of ecological and environmental problems, or in a solid base towards sustainable development. The difference lies largely on the choice of products and technologies to be applied to and implemented by said rehabilitation. The following concerns should play a part in an environmental action plan for the region in question. 55. Urban Rehabilitation. Plans for development and improvement of the Benguela Region include focus on public health, energy and water supply for residential and industrial use, revanping existing industries and establishing new ones. These plans imply eventual rehabilitation of the majority of Lobito's and Benguela's housing, infrastructure and induistrial operations. It is possible to direct this rehabilitation as to prevent the increase and/or introduction of environmental and ecological problems, correct existing problems, and create a base for sustainable development of the Lobito-Benguela Conurbation and the Benguela region. This requires selection and regulation of the use of materials, equipment, techniques and methods utilized; and identifying solutions compatible with the local natural and human resources and conditions. 56. Water Supplv. The ecological conditions of the Benguela Province determine the need for maumum conservation of its hydrologic resources. Environmental education stressing water conservation should be developed within the sanitary-environmental education component of the latrine program. However, this component is, by itself, unable to guarantee optimum use and conservation of the region's water. It is crucial that policy making be directed towards developing and establishing the use of techniques, technologies and systems which are able to guarantee long-term water conservation within the region. (e.g., low-flow water devices; drip and night irrigation). 57. Industrial Development. The indirect impacts of the LBC's industrial activities on the larger environment of the Benguela Province need to be revised as to allow for policies and regulations to both prevent environmental and resources degradation and enhance the region's economic resources. 14  nnA l Page 15 of 18 'I i ist of the industries within the Lobito-Benguela Conurbation utilize equipments and methods relatively outdated leading to high pollution and low etxiNency in the use of raw materials. It is crucial that: a) Rehabilitation of the industrial center considers methods and technologies which at the same time maximizes use of raw material and leads to minimum degrees of environmental pollution (e.g., the sugar-cane industry can function as a closed circuit by utilizing its own waste for combustion, thus avoiding river pollution and freeing capital from other fuel use; disposal and waste from the fish processing industry should be re-used; and the tobacco curing industry should have a major role in reforestation). b) Implement adequate industrial waste water and solid waste management. c) Develop and implement industrial pollution legislation and regulation. d) Develop local capacity to evaluate, monitor, and control industrial pollution. 58. Agriculture, Inadequate agricultural management lead to soil exhaustion, salinization, and waterlogging within the Lobito-Benguela Conurbation, largely contributing to the sector's poor performance. It is necessary to: a) Introduce and re-introduce methods and technologies promoting soil and water conservation, preventing health hazards, and allowing sustainable development; b) Develop alternative systems of production and of exploitation of the region's natural resources as to include wild flora and fauna; and c) Provide incentive towards an adequate production system both adapted to the region's natural conditions (e.g., species resistant to saline soils) and local needs (e.g., promote production and use of coconut for health treatment and complementation of child nutrition). 59. Institutions and Le2islation. Angola's environmental legislation is still largely limited to the former Portuguese legislation, which covers mostly forest development and wildlife protection, and hunting. Coastal and sea fishing legislation is being reviewed on economic terms, and several individual efforts are on the way to complement legislation at the agriculture and energy ministries. Discussions are on the way both at the govermnental and NGO levels, to develop a system (committee, secretary, ministry, or other similar structure) to oversee environmental issues. Legislation and regulations at the Provincial level are restricted to those existing at the national level. The institutions, technical resources, information and data currently available at the national level or in the Lobito- Benguela Conurbation microregion are limited in scope, and inadequate for either its environmental rehabilitation, or for its resource analysis, planning, management and monitoring. In addition, the local govermment does not have the human and technical resources necessary to prepare an environmental action plan for the region. Regardless of efforts at the national level, the Benguela Province needs to: a) Establish the integration of and/or eooperation among different departments and institutions in charge of services directly related to environmental and ecological issues. b) Review the existing environmental legislation to complement laws and regulations according to current environmental and resources' status. 15  Anne" Page 16 of 18 c) Utilize environmental legislation as an integral part of planning for resources' use and development. d) Establish awareness of the environment as a major factor in economic development and a basic element in the maintenance of the quality of both individual and social life. This awareness acts to minimize the need for environmental legislation and control, maximizes sustainable use and development of natural resources, and improves living conditions (e.g., understanding the cycle of waterbome environmental diseases leads to improved health, decreasing health costs for both the State and individuals). d) Develop the local capacity for coastal zone management. VI. ENVIRONMENTAL IMPACTS OF THE PROPOSED PROJECT 60. Subsequent to information in the Preliminary Environmental Assessment, environmental rehabilitation is approached by each of the project's components by including solutions to both their inherent environmental problems and the current critical environmental status of the Conurbation. The following section describes major characteristics of each project component. Envirnm,ental Sanitation 61. The environmental sanitation components of the project will divert sewage and solid waste from the wetlands, bays and ocean water and from the cities and settlements' streets. The project should result in a decrease of the current water and other environmental pollution, with a consequent decrease in related diseases and improved health status, and overall improvement of the scenic and recreational conditions of the Lobito-Benguela Conurbation. The different components of the project are integrated to allow for rehabilitation and maintenance of vital environmental functions and properties presently under stress due to enviromnental degradation (e.g., soil fertility, wetland and estuary productivity, and clean water); correction of natural constraints (e.g., microclimate management through neighborhood reforestation); and enhancement of environmental opportunities (e.g., wetlands and beach rehabilitation and protection). 62. Sewage and Water Supply. Rehabilitation and extension of the sewage network includes diverting the wastewater into oxidation ponds. The treated effluent and sludge wiU be used in tree plantations next to the ponds, supervised and managed by the DPSC. These plantations wiU produce fuelwood for low income groups, and shade and fruit trees for a combined latrine-neighborhood revegetation project (See par. 66, 67). Quality of the effluent from the oxidation ponds will be monitored dhrough the environmental studies. Expansion of the water supply will draw on the region's groundwater resources to provide water for unserviced settlements. The wells will be sealed to avoid wster contamination, and monitored for changes in both water quality and quantity. Rehabilitation of the existing water network of Lobito and Benguela will involve minimizing and monitoring water losses, currently over 50%. Wastewater from the standpipe-wash basin stations (dhqfarizes) will pass through a grease trap and a natural filtering system, and be directed to irrigate shade trees around the stations. Daily management and maintenance of these stations wiUl be the responsibility of the communities and community centers, under the supervision of the DPSC, which wil be in charge of ovrall management and maintenance. Health and water conservation education will be provided as part of the sanitay-environmental education of the Low Income Sanitation Program (See par. 65, 66). The project opted for the use of asbestos-cement pipes for the sewage system because it involves the 16  Annex 1 Page 17 of 18 use of local products, is less expensive than imported material, and implies negligible health risks for final users. In the event that this helps revamping the local industry, occupational health hazards will arise and need to be considered; tender documents for the project require that asbestos cement pipes be produced in environmentally and health acceptable conditions. 63. Stonn Water Control. Storm water control will be provided to decrease peak flow and speed of the water, thus diminishing erosion and associated flood hazards in the major natural and man made storm water channels. The project involves a series of small check dams above Lobito and Benguela, correction of the capacity of the channels in Alto Liro and Bela Vista, and rehabilitation of the Vala do Coringe in Benguela. Rehabilitation of the Vala do Coringe will remove one of Benguela's major source of diseases. The development of drainage works in Lobito's Caponte and Commercial Zone will consider compatibility with Lobito's lagoons' daily regime and capacity to avoid negative effects of large inflows. Along with the series of check dams there will be a revegetation and tree planting program implemented through the sanitary-education and revegetation program and drawing largely on community participation (See par. 68). Private and community efforts towaid controlling storm water are seen specially in Alto Liro and Bela Vista, and will provide the base for community participatior. in erosion control. The checkl dams will keep the water for a maximum of five hours on peak days and dry out for the rest of the time. Therefore, they do not pose potential threats toward increasing the incidence of water-bome diseases, particularly schistosomiasis. 64. Solid Waste Management. This program will improve the sanitary conditions of Lobito and Benguela by eliminating the current accumulation of waste throughout the cities and by providing daily waste collection at most of the cities' neighborhoods. Periodic waste collection will be provided to eiiminate the illegal dumps (lixeiras) of other urban and peri-urban neighborhoods until daily collection becomes available. The program will be developed to minimize pollution and health hazards, and consider maximum use of altemative management, appropriate technology, and resources recycling. Environmental education in regard to solid waste recycling and re-use will be dealt with as part of the sanitary-environmental education project of the Low Income Sanitation Program. Low Income Sanitation 65. The Low Income Sanitation Program is designed to introduce improved latrine construction and techniques, allowing reasonably priced sanitation for about 80% of the population in the project area. Most of the latrines will be built in the escarpment settlements, and groundwater pollution is not anticipated. Monitoring of groundwater quality will be provided, and a latrine installation and waste (faeces) removal monitoring program -already started- will comnplement local data to determine health and overall improvement within different neighborhoods following increased utilization of improved latrnes. 66. The~ Program's sanitary-environmental education component will desigu, promote and implement an intensive program combining education in public health and hygiene, control of water- bome diseases, and water-soil conservation. The component includes neighborhood revegetation and erosion control based on distribution of fruit and shade tree saplings in connection with the sales of improved latrine slabs, and will draw largely on community participation. 67. Neighborhood revegetation will provide for improvement of microclimate, soil fertility and nutrition, and erosion control. The program is divided in two parts, the latrine-revegetation of poor neighborhoods, and erosion control in Lobito and Benguela's beaches and major storm water channels. 17  Annex Page 18 of 18 The trees distributed by the latrine program will be irrigated by the owner with wastewater produced by kitchen and bath use, avoiding filling of the latrines (thus increasing their life span), and decreasing the stagnant water streams and ponds frequently seen in the settlements' backyards, streets and common areas. A revegetation project was started in March 1991 by the GPP and DPSC following guidelines provided during project preparation, to test the acceptance, interest and participation response from latrine slab buyers and from the communities. The project will be strengthened to carry out tree planting in all standpipe-wash basin stations and along the Vala do Coringe, and revegetation (trees, shrubs or grasses) of the escarpment slopes and drainage channels undergoing major erosion. The program also considers a more extended urban project including school, hospital and neighborhood afforestation. Strengthening the program involves providing basic equipment to develop the capacity of the DPSC's nurseries to produce the required tree ssPlings, provide for their distribution, and supply basic maintenance where applicable, that is, where maintenance is outside the scope of private or community care. Studies 68. The environmental management and monitoring studies will organize environmental information for direct use by local decision makers, and assist the local govermment build the capacity for enviromnental rehabilitation, planning, management and monitoring. An Environmental Diagnostic and an Environmental Action Plan will be prepared to identify resources and constraints, develop priorities for environmental issues, and provide the framework for enviromnental rehabilitation of the Lobito-Benguela microregion (See par. 49, 54). Monitoring will cover information needed for health improvement; identification, correction, control and prevention of water poRution sources; recovery and/or maintenance of economicaUy iraportant or unique living resources; and soil conservation. This work will be complemented by the sanitary-environmental education program, which will provide the education and training necessary to introduce and ensure environmental management at the community and individual levels. 18  Annex 2 Page 1 of 5 LOBITO BENGUELA URBAN ENVIRONMENT REHABILITATION PROJECT WATER, SEWER AND STORM DRAINAGE REHABILITATION 1. WATER REHABILITATION A. Objectives 1. Over the past decade the urban population of Lobito and Benguela has more than doubled, during which time there has been no expansion nor real maintenance of the water supply and networks. What water arrives in Lobito is both insufficient and inferior in quality. As a result more than 60% have no house connections today, and over one-third of these families have no water within one kilometer. Those that can pay have to purchase water from clandestine suppliers at exorbitant prices. Sanitary conditions in Lobito and Benguela are a serious public health risk. The raw sanitary sewage in the back patios, hallways, and the main streets is a major source of cholera, especially in Benguela. 2. The prime objectives of this component are: (a) to double the present water supply in both cities so as to provide a minimum level of service to the squatters; (b) to rehabilitate and expand the present network of water supply to cover the entire urban area and to provide public fountains in all the squatter settlements; (c) to rehabilitate and rebuild the sanitary sewer network and pumping stations to serve the central area; and (d) to provide sanitary sewage treatment to close the cycle - eliminating raw sewage in the streets of both cities. B. Population and Water Demand 3. Detailed population and water demand statistics are provided in the consultant's Feasibility Study (August 1991), available in the project file, and summarized below. Population is estimated at about 480,000 in Lobito, Catumbela, and environs and 320,000 in Benguela, Baia Farta and environs, or a total of about 800,000 in the conurbation in 1994, when the rehabilitated and expanded water works will come on stream. Specific domestic water consumption is estimated at 70-100 liters per capita in the serviced areas, and 25-30 liters in the squatter settlements. Industrial, commercial, public, and municipal consumption is presently very low, about 10%, although it is expected to increase to about 40% over the next 20 years. The unserviced population is estimated at 52% in Lobito and 49% in Benguela. Thus, while population of the unserviced settlements is about half the total urban population, daily demand in the unserviced areas is estimated at 10,000 n3, about 21% of the total expanded production capacity of 2,000 m3 per hour, or 48,000 m3 per day. C. Lohito Water Supplv 4. The supply for Lobito comes from a wellfield in Catumbela, consisting of cacimbas (infiltration sumps) and shallow wells plus direct pumping of raw water from the river. Mhe total installed capacity is about 600 m3 per hour, but it is barely able to discharge 300 m3 per hour. The supply must be increased to 1,000 m3 per hour. Six new wells 50 meters deep would be drilled and connected to the existing 300 mm diameter rising main to the open reservoirs at the old treatment plant. The water supply for the Town of Catumbela will also be improved along with the transmission main. 1  Annex 2 Page 2 of 5 5. The new wellfield located two kilometers upstream, east of Catumbela, would be developed as a gallery of six wells 50 meters deep along with observation wells and a cniorination station at the beginning of a new 500 mm transmission line. This would feed directly into the existing 500 mm transmission to Lobito, Bela Vista and Alto Lira. 6. Treatment Plant - The existing plant, built around 1947, has three slow filtration units and th-se open reservoirs. With the shift from surface to ground water sources, the raw water quality will be satisfactory so that only chlorination will be required. Therefore, the inefficient filtration plant can be closed down. The three open reservoirs should be roofed as protection against contamination; however, this investment can be postponed until the future of the existing reservoirs can be determined. 7. Pumping Stations and Reservoirs - The pumping station EE2, built in 1972, was designed to serve the lower ponion of Bela Vista, but has never worked. The existing inlet pipe will be moved to the bottom of the suction chamber so that the pumps can become operational. The EE 3 pumps, between the circular reservoirs of R3, also have never worked for lack of water. Only minor repairs are needed to make them operational, so they will not be included in the international tenders. Today Bela Vista is supplied by two old smaller stations that barely reach the service contour of 150 meters serving less than one-third of the population. Reservoir 4, which is the highest at elevation 170 meters, has also never functioned for lack of water. It will be served by an existing 300 mm main. When all of the above reservoirs in service, there will storage capacity for 54% of the daily production. 8. Networks - The First Phase will supply about 100 liters per capita for those with house connections. For the squatter settlements of Alto Lira, Bela Vista and Catumbela, a network of 300 standpipes would be provided along with washing facilities. Each standpipe of four taps would serve 150 families (800-1,000 persons) within a maximum walking distance of 200 meters. Each standpipe will be equipped with a securely locked water meter set into the standpipe. The main commercial and industrial enterprises and apartment buildings, including the Restinga residential area, will be connected with water meters that will remain the property of EPAB. D. Benguela Water Suppyi 9. Benguela relies entirely on ground water pumped from the existing wellfield in the vicinity of the water treatment plant. The wellfield has gradually been surrounded by residential and industrial buildings, with no space for future expansion. The present output is a theoretical 470 e3 per hour; however, this rated capacity does not represent the true output as there are no measuring devices. Only the three wells drilled after 1980 are presently operating. The rising main from the wellfield to the treatment plant increases in diameter from 250 mm to 500 mm. 10. In the existing wellfield, nine non-functioning wells will be abandoned while three will be rehabilitated by cleaning, video inspection, repairs, well head improvements, testing and disinfection. A new wellfield would be constructed along the Cavaco River aquifer consisting of six new wells along with two observation wells. Supply will be increased to 1000 m3 per hour. 11. Treatment Plant - The Italian designed plant has a present capacity of 500 m3 per hour. The final engineering exists for a second phase of 500 m3 per hour to double the present capacity. The plant is designed to remove the iron and manganese from the water, but the water quality in terms of bacteria count is satisfactory with no harmful pathogens. Therefore, the first phase does not include the expansion of the plant. Nevertheless,there should be periodic monitoring of the iron and manganese content. 2  Annex 2 Page 3 of 5 12. Pumping Stations - The EEI pumping station is located at the treatment plant (ETA) which pumps into the reservoir RI. From there the main part of the town is supplied along with reservoirs R2 and R3; however, the available head is only 11 meters. The project would double the capacity of EE;I where three new pumps would to be installed with a 400 or 500 mm main to reservoir R6. Pumping station EE2, located at reservoir R3 pumps water to reservoir R5. An emergency power supply of 50 kilowatt would be installed at this critical link. Pumping station EE3, located at the small reservoir R4, serves reservoir R7 which supplies Baia Farta. A new pump set would be installed as a standby for EE3. The existing storage is 45 % of the present water consumption. At a later stage, the storage capacity of RO should be increased. 13. Networks - The increased production to 1,000 m3/hour corresponds to the projected demand by the year 2000. The 1990 water demand is calculated at 760 m3/hour. The demand at Baia Farta today is 63 m3/hour; while the population receives less than one-third. The capacity of the main pumping station EE 1 would be doubled and a new rising main of 400 mm would be provided to the rehabilitated reservoir R6. In the near future, a new transmission line from the new wellfield to the airport will be required along with new reservoirs to serve the expansion areas and Baia Farta. For the squatter settlements on the periphery of Benguela a network of 200 standpipes equipped with water meters would be provided along with washing facilities similar to the pattern for Alto Lira and Bela Vista. The main commnercial and industrial users and large apartment buildings of Benguela would also be metered. I1. SEWER REHABILITATION A. Lobito Sanitary Sewers 14. The present network, serving the main commercial area and low-rise apartment buildings, is clogged in at least half the length, while in the other half raw sewage drains directly into the tidal lagoon - a habitat of the red and pink flamingos. A new gravity network would be provided with two lift stations and force main connected to the Compao system. The Compao network and lift stations were virtually complete in 1975; however, since Independence no work has been done. The gravity lines have become choked and the abandoned pumping station filled with debris and sewage sludge. This network would be rehabilitated along with the house connections. The lift stations EE9 and EE1O would be rehabilitated and equipped with new pumps and controls. EE1O would be equipped with a force main to the series of oxidation ponds two kilometers south of the city. A section of the main will be submerged under the lagoon. This system can be expanded easily to serve the 'restinga' residential and commercial areas. The ponds are located on waste land today. The treated effluent would be used for irrigating fruit trees, tree nurseries and grain crops to close the cycle. The cost estimates for the commercial area are based on an entirely new network; however, the cost of rehabilitation of the Compao will be half that of a new system. B. Benguela Sanitary Sewers 15. The sanitary sewage network, serving only a small portion of the center of Benguela, is partially broken and clogged. Part of the raw sewage eventually leaks onto the beaches in front of the city. Most of the buildings have septic tanks that are continually overflowing into the back patios, hallways, and streets. This condition is one of the main sources of cholera in Benguela. The central area of Benguela including all the buildings above two stories will be connected to a new gravity network. Included in the network is an interceptor sewer that will pick up all the small sewers that dump raw sewage into the Coringe channel today. One small lift station and one main sewage pumping 3  Annex 2 Page 4 of 5 station would be provided along with a force main of four kilometers that will connect to a series of oxidation ponds to the south of the city where there is adequate room for expansion for future needs. As in Lobito, the treated effluent would irrigate tree nurseries and grain crops. Ill. VALA DO CORINGE STORM DRAINAGE CHANNEL 16. The Vala do Coringe drains a major portion of the city of Benguela and has a drainage basin of 60 square kilometers extending inland about 18 kilometers. Over the years the four kilometer channel that traverses the urban area has become choked wi.h garbage, raw sewage and vegetation. With the scarcity of fresh water, slum dwellers have dug mud holes amongst the debris to wash their clothing. The mud holes attract children who play in the dirty water, thus turning the Vala into a major source of disease and a health hazard to the city. 17. The project would provide a 3.8 kilometer dressed open channel that follows the present alignment and gradient to a sea outfall. Lateral storm drains with large inlets on the south side have been included to reduce the flash floods in adjacent bairros. Since the annual rainfall is between 100- 300 mm per year and falls mainly during the summer months, February, March, and April, the channel will be virtually dry for about seven months of the year. The lower section of the channel from the sea outlet to the airport bridge, 1,400 meters, will be reinforced concrete 120 mm thick to withstand the ground water lift pressure, with side drainage weep holes at two meter (o.c.) intervals. Above the bridge, the channel would be pre-cast slabs of 100 to 120 mm thickness set in mortar bed with geotextile mesh and strategically located drains for the periodic rise in the water table. 18. Five pedestrian crossings (fords) have been designed with raised stepping treads across the bed of the channel and steps notched into the slopes. While the channel is essentially self-cleaning, it would be cleaned manually of debris to eliminate any vegetative growth. The accesd ramps for the two vehicular fords have been designed for small tractors and wagons to haul the debris out from each section. An additional access ramp has been provided between the three vehicular bridges for the same purpose. The sea outfall has been designed for self-cleaning under all weather conditions. 19. There are two existing vehicular bridges, one to the airport and the other to the south along the coast to Baia Farta. The consultants have determined that the sub-grade girder on the first bridge can be lowered to enlarge the channel section under the bridge so that the bridge does not have to be replaced. However, the second bridge must be replaced as it has temporary reinforcements under one of the main girders that failed. A third bridge is planned at the rnid-point of the length of the channel so that the main traffic generated by the cemetery and the seven adjacent barrios on the south side will have a conventional vehicular bridge crossing. Upstream two vehicular fords will provide access to the spontaneous settlements extending to the southeast. Vehicular traffic volumes projected for the next ten years do not justify another grade level bridge crossing. Pre-cast pavers would be set on edge to provide a curb and gravel stop along the stabilized earth and gravel walk and cycle path along the south side and a service road on the north side. Trees would be planted to provide a canopy of shade along both sides of the channel. 20. To lower peak flows an earthen retention dam has been designed about 1,200 meters east of the airport to provide a five to six hour retention of about 600,000 cubic meters capacity. The dam has been designed with a three meter head. It would serve as a recharge basin and sedimentation trap which would be cleaned periodically. In addition eight small velocity check dams of 2.5 to 3.0 meters in height, using gabions, would be built upstream and downstream of the main dam as well as on the 4  Annex 2 Page 5 of 5 parallel tributary. Trees would be planted along both sides of the channel to provide a canopy of shade. 21. Preliminary cost estimate of the channel is $2.64 rnillion and for the eight check dams $540,000. Detailed engineering will be completed by July 1991 and bidding documents will be issued to pre-qualified bidders by September, 1991. IV. LOBITO STORM DRAINAGE FOR ALTO LIRO AND BELA VISTA 22. The seven major storm drainage galleys have become heavily eroded as squatters have occupied the slopes, cutting the vegetation and notching small ledges to build their huts. Many have built in the bottoms of the gullies. The April rains this year demolished many huts and caused fourteen deaths. Before Independence the Portuguese built a few erosion control dams. Most of these are now filled with debris and sediment but do function as velocity check dams. 23. The project would provide a series of retention/velocity check dams in each of the seven drainage basins. A prototypical design using gabions has been prepared with heights of dam between three and four meters. A total of fifty such dams would be provided, set 300 to 400 meters apart. The average cost of these check dams is $50,000; total cost is $2.56 million. 5  ' A4 .  .2c  - . A ,.. .    i': .\-. . .. ., .    \ _%~ ~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. . . . . .% ... -_9  Annex 3 Page 1 of 7 THE LOW INCOME SANITATION PROGRAM I. SUMMARY 1.1 Backgromund. Improved sanitation is critical in improving hygiene, healdth and general living conditions in any developing country. This is especially tme in the cities of Lobito and Benguela and their environs. Even the casual visitor to the unplaned settlements (mussegucsi of the Lobito-Benguela conurbation will be shocked at the lack of water and sanitation, and especially by the open fields of hunmn faeces only inches apart. Clearly, conditions define an emergency stuation. Cholera has been the most recent kdller with a faecal-oral cycle of transmission, but other diarrhoeal diseases along with malaria and schistosomiasis point to the urgent need for improvement in environmental sanitation. 1.2 Instituional Arrangements. Under the general direction of the Director of the Gabinete Provincial do P?ano (GPP), Provincial Directorate of Phnning, the Diretora Provindal de Servicos Comunitauios (DPSC), Provincial Directorate of Community Services, will undertake implementation of the Low Cost Sanitation Program. A sanitary-environmental education component will be undertaken by the Diretoria Provincial de Saude (DPS), Provincial Directorate of Health. 1.3 Current Status and Progress. The Low Cost Sanitation Program of the Urban Environmental Rehabilitation Project is advancing slightly ahead of schedule, due primarily to the high level of motivation of the involved staff, and a firm political commitment by both the Provincial and the cities' governments. Due to shortages of cement and appropriate rnsportation for the latrine slabs, production was tempoadly curtailed, after an early high-quaity output of some 450 slabs. Direct interference by the Govenor has allowed restoring the cement supply, leading to fast recovery of production. The slabs have been distributed to community conters where they are being sold to the public at a price easily covering the official production cost. The slabs are being installed in self-built latrines, by the owners or by builders contracted directly by the owners. The sanitary-environmental education component is only in the beginning stages of implementation. Although some education is already part of the ongoing work, a full program is yet to be finalized. 1.4 Cost and Cost Recovery. The cost of the improved latrine slab is presently NKz 2000-3000 (New iKwanzas), while the value of the superstructure and the pit may vary from NKz 2.000 to 20.000, depending on how and by whom it is built. The actual level of cost recovery is difficult to calculate, since esimaes vary depending upon use of the official or the parallel dollar mtes. Presently the finished slab is sold for NKz 3000, about US$S50.00 at the official exchange rate of NKz 60, but only US$4.00 at the unofficial ruta of NKz 750. It is expected that the kwaa price of finished slabs, and other building materials sold by the project, will be adjusted to reflect fully future devaluations of the currency. 1.5 Production, Promotion and Sales. Production and sales of the slabs have so far been in balance. Given that present production is foreseen to increase considerably, a strong promotional component has been projected, aiming at a total coverage of around 60% of the area's popuation by the end of the latrine project (1995), and 90% coverage by the year 2000. 1.6 Sunitary-Environmental Education. The sanitary-environmental education component has been included as a major part of the low cost sanitation progrm due to it being crucial to safegurd the investments in improved infra-structures (water and sanitation), as woll as to guaantee results in health imprvement. Developing and coordinating the sanitay-environmental education compxent will be one of 1  Annex 3 Page 2 of 7 the principal tasks of the Resident Sanitation-Environmental Adviser, who will also coordinate and train local staff in the implementation of the program. 1.7 Staffing. Most government positions required for implementation of the program have already been filled within the government recurrent budget, implying that the posts will continue beyond the end of the present Low Cost Sanitation Program. The need for any further positions will be addressed during the execution of the program. Once the Resident Sanitation-Environmental Adviser is in place, all currently projected salaried positions would have been filled. The enthusiasm of those directly and indirectly involved in the latrine project, and their high expectations regarding development of the program indicate that a successful program may be policy setting for the country over the coming decade. Indeed, the project is already being extended, through local initiative, to other regions within the Benguela Province. H. COSTS AND SCHEDULE FOR IMPLEMENTATION 1.8 Implenentation Plan. Plans for implementation, including initial cost projections, procurement timetables, and disbursement schedules, have been discussed with those concerned in the Gabinete Provincial de Piano de Benguela and in the provincial office of the Director of Servicos Comunitarios. The plan considers 60% coverage by 1995 (57,600 units) and full coverage (90%) by the year 2000 (124,000 units). This implies that the initial production plans of 2,400 latrines for 1991 will double each year, with a peak implementation in 1995 of 22,000 units per year. The key factors in the implementation of this program are the promotion and sanitary-environmental education components. Provision of transport and the supply of cement are, however, critical to successful implementation of the program (See summary sheets in Annex A. These projections should be reviewed once peace is established, and the local authorities have a better idea of the population changes that may follow. 1.9 Costs. For the initial period of latrine installation, a nominal cost of NKz 3000 is levied for slabs. That cost will be reassessed from time to time, as the program grows. Government and conmmunity contribution towards total cost recovery will be assessed latter in the program. Given the unofficial market in operation today, it is difficult to significantly relate these costs to US$ figures. However, agreement was reached at negotiations to maintain cost accounting in US dollars, in order that prices of latrine slabs and other building materials may be adjusted to reflect fully the value of expected currency devaluations. 1.10 Budgeting. A total of US$ 4,800,000 has been budgeted for implementation of the Low Cost Sanitation Program, of which US$ 522,000 as PPF. Project funding is principally intended to cover expenses for international experts and consultants, training, equipment and building material (cement). A separate account has been opened for the latrine building project. Revenues from the sale of finished latrine slabs will be reinvested fully in the low income sanitation program, thereby reducing capital costs. 1.11 Bottlenecks. The principal immediate problems facing the project are shortage of cement, lack of appropriate transport for the slabs and lack of transport for supervision, and lack of an adequate program for promotion and sanitary-environmental education. Initial steps are underway to expand the promotion and sanitary-environmental education component, with involvement of staff members of the Ministry of Health. Experimental arrangements are underway for truck-bed transport of slabs arranged verticaly to avoid breakage. The cement issue has been taken up at higher political levels, and temporarily resolved. The continuous supply of cement throughout the life of the project, however, needs to be given special consideration, since the Low Income Sanitation program is otherwise vulnerable. 2  Annex 3 Page 3 of 7 ImI. INSTITUTIONAL ARRANGEMENTS Latrine Construction and Sanitary-environmental educstion 1.12 Under the direction of the Director of the Gabinete Provincial do Piano de Benguela and the guidance of the Sanitation Consultant, personnel in both the Servicos Comunitarios and the Ministerio de Saude ( Health Ministry - MINSA) are responsible for implementation of the plans for improved low cost sanitation, along with sanitary-environmental education. Although there should be an overlap between the two institutional bases, the Servicos Comunitarios and related municipal staff are solely responsible for slab production and promotion, leading to installation of new latrines. The staff of MINSA are primarily involved in the promotional aspect linked with sanitary-environmental education. The personnel involved in the project and their specific duties are listed in Figure 1. Aside from the official personnel in Figure 1, key personnel include those involved in the life of the peripheral areas, such as local political figures, religious leaders, community organizers, etc. The Governador Provincial (Provincial Governor) has given especial support to the program since its outset, promoting latrine building through public speeches and by providing a unique backup and moral support to program officials. Also involved to round out local personnel are artists, teachers &nd cultural figures, all focusing on education. 1.13 Local Staff. There are currently no major local personnel vacancies, as the posts listed in Figure 1 are already filled; it is expected that later needs witl be met as necessary. The major concern is on-going in-service training, to be organized by the Resident Sanitation-Environmental Adviser. As indicated below, there may be temporary need for public health students' assistance regarding baseline studies (see par. 1.31). IV. TECHNICAL ASSISTANCE 1.14 Resident Sanitation-Enviromnental Adviser. One Resident Sanitation-Environmental Adviser will be recruited for the time of the project. He will advise government staff on the implementation of the Low Cost Sanitation Program, the Sanitary-Environmental Education Component, Solid Waste, and domestic water management and other environmental programs. A draft contract, including terms of reference, has been submitted to the Government for final appointment of a Resident Sanitation- Environmental Adviser, who should be in place within a few months. The terms of reference, which may yet be modified, are attached in Annex A. 1.15 Consultants. There is a need for extemal assistance for a) regular support by the Supervising Consultant, who will also continue with the production of manuals and promotional materials; and b) occasional visits by specialists in sanitary education from nearby countries, as well as specialists in such technical concerns as the pollution of groundwater by latrine use. V. TECHNOLOGY Low Cost Sanitation 1.17 The Govemment, in agreement with the World Bank Sanitation Consultant, has opted for a lowest cost sanitation technology principally based on the production and commerciali2 ation of a dome-shaped improved latrine slab. The slab incorporates important feaures for maximum hygiene and child safety, as described in Figure 2. 3  Annex 3 Page 4 of 7 iector Prvincl do Pao (Provinoial Director of Pling) - diects the low oot anitation pject, assit ,by the Prejot Engner nd staff of the Planning Directorate, - hvcto ProvIial do Servkos Comualtrlo (Provincial Directr of CommuWty Services) - provides overall _idan to the iVplementation of the low oDt sanitation program. i)fr:os Micpals dos Service Comualtar (Munioipal Diremtor of Community Services) of Lobito nd BEpguk - coordinato physial iiplmentation of the progmn at the municipal level, contidering othor ongoing ctivities. Cdor esl u M ukcpab de Sancameato (Municipal Sanitation Coordiaors) . direct the implmentaion of the low pram I speell municipalities. Ch: S .- Produeae (Wo*ksop Poremen) - organize the production of latinn slab. in the oentalized worshop. direct th waok of those actually prducing the slabs, The formnn and the wod aso appot individual households i thei Oonstruction of te inmproved latrines in whic th sl are inalled. ct Prfvinl 4 Saade (wvinaial Ditector of flelth). +provids overall guidance to tho nit i Jt r P 'O l 4 N epidewlolga (Ptovia Dirtotr of Hygiee ind pideniolol ) ^ supe the work health atorncludi a focs on nitaty .du - c. (kuj&t 4. Sau4. - special gmup of health *orknsat the provicial level wiich ctpnes het e , us t*snad he vQmedl:t tah th pubic bette health psutiesexA;. :0 rinaed ioy he Mnii , t4 at s fr ..... lot la4iiiud tFrine -insta)1tira i a *ounrexpast, the DirectI -of ommuniity Services. Th Advisr WIl repor directly to the r iia Di6kto o. Pla F nn4f " vSA *XMi 1 Pigure 1: Petsonnel and duties of the Low Cost Sanitation Program. 1.18 Easy to install. The latrine slab can be easily installed on the top of a simple pit (1.10 m in diameter) by any layman. Where the soil is unstable, the pit can be lined with stone, bricks or cement blocks. Where the soil is difficult to dig, pit volume can be increased by mounting the pit-lining above the ground level. 1.19 Self-built superstructure. The superstructure, roof and walls, can be build according to the owner's stipulations and preference, thus providing the desired level of privacy. TrManpr 1.20 Centralized production. In order to facilitate the control of both production and the use of cement, the Government has opted for a centralized system for production of the improved latrine slabs. 4  Annex 3 Page 5 of 7 As a consequence, there is a need for motorized ............... transport not only of the building material, but also eeated foots - hel e user fid the t to transport the slabs to the selling points within the poBition even at n ight when th ltrin is ttay dad;; various housing area . Furthermore, there is a need for local cart transport of the slabs from the selling keyhole shaped dropj-bole - the foor points to the individual latrine building sites. reduction and reshaping of the drophole t4 a mninsm size, mnking it compately ute for ven tli 1.21 Lorries and Hand pushed carts. The need arnillet hidren; of motorized transport (lorries) for building material and slabs has been estimated in the implementation lig latrig installation n t diueiint altowing kAine insSation in th Wmiatnedi YiCill.ty plan, and provided for in the budget for the Low t h w th u oowne. d Cost Sanitation Program. It is anticipated that the unwanted "mell Od fli*'; vehicles will be imported for the project. Additional capacity can be hired locally as required. Hand sloplag surfads Of the dome shapedslab . :p"r ; pushed carts will be produced locally based th sweeping of oxtoior mnaerl ito th- l principally on the use of scrap material such as old hence avoidn rapid iwiA nWm. e0 mpoab car wheels, water pipes, etc. If required, small tt; ; quantities may be imported. a o r Inwvard slopln susfWe#l Xi, i Urpoe- diW uAm "V imd | X Ptomotion diroa mia sl - d 1.22 Multi-Media Promotion. Latrine building ase of -ean duo t oi X is not a usual custom in the area of the Low Cost vOWy smooth finh of thw srfae, wc Sanitation Program, a strong promotional component h a r e s d n i v ig is necessary to support its production, sale and use. The project's promotional component will use a wide range of media from conventional sanitary and environmental education, drama and festivals, to commtunity competitions, leadership training and commercial stratagems. It is anticipated that the local leaders will carry the lion' share of the promotional program. 1.23 Promotional Material. The promotional activities will be supported with especially designed promotional goods presently difficult to acquire in the project area, though commonly used in industrialized countries. These include ball-point pens, stickers, t-shirts, solar-powered calculators, caps, etc; all items will feature promotional printing encouraging both consttuction of improved latrines and improvement of hygiene. 1.24 The Clean Cities. The ultimate goal of the promotional component is to create in the cities of Lobito and Benguela a collective will to transform today's disastrous sanitation conditions, to become the cleanest cities in Angola. VI. TRAINNG 1.25 Supervised On-The-Job Training. As a general rule, taining will be carried out as suptvised on-the-job training. It is anticipated that the Resident Sanitation-Environmental Adviser will coordinate these activities, supported as required by the Supervising Consultant. 1.26 Manuals. Draft manuals have been prepared by the Supervising Consultant as follows: 5  Annex 3 Page 6 of 7 (a) Gestao (Management); (b) Manual de Construcao de Latrinas Melhoradas (Manual for Construction of Improved Latrines); (c) Promocao e Educacao Sanitaria (Promotion and Sanitary Education); (d) Como Trabalhar corn Pessoas (How to Work with People). 1.27 It is anticipated that the manuals will be revised and completed by the Supervising Consultant based on continued findings during program execution. It is expected that the manuals will ultimately be useful for implementation of an eventual nationwide low cost sanitation program. 1.28 Study Tours. Study tours will be arranged to visit similar programs in other African countries (e.g., Mozambique and/or Zimbabwe), with the purpose of exchanging experience and encouraging commitment to the project. These tours would provide first-hand opportunity to learn from relatively successful programs implemented by local communities and citizens. The study trips should be arranged by the Resident Sanitation-Environmental Adviser and the Superviag Consultant. 1.29 Training of Community Leaders. Given that the eventual success of the program depends on the active involvement of community leaders, considerable attention will be given to their training. Emphasis will be placed on dialogue, as focused on program implementation, and training will include basic principles of sanitation and development of the ability to work with people. The following aspects will receive especial attention: a) construction and maintenance of imptoved latrines; b) importance of personal and environmental hygiene; c) monitoring and evaluation; and d) how to work with people. Im. SANITARY-ENVIRONMENTAL EDUCATION 1.30 Worldwide experience documents a high rate of failure of sanitation programs and projects, particularly when focus on the techl^ology disregards socio-economic-cultural-religious-political factors. Therefore, the Low Cost Sanitation Prognrm is designed to include a major element in sanitary- environmental education, which adopts a procedure based on the interests, needs and knowledge level of the community participants, in tun to be identified through dialogues with the local people. Initial talks with key community leaders in the musseques, the director and staff of the Provincial Ministry of Health, and the director of public health of the University of Luanda show a high level of concern for emergency measures, and a deep commitment to long-term development of a successful sanitary-environmental education program. Elements under consideration include emergency measures, studies, education and training, and an integrated approach to sanitation, as described bellow. 1.31 Emergency Health Measures. Current disease patterns highlight water-borne and water-washed disease transmission, especially cholera and diarrhoeal diseases (See Annex A). This makes the low-cost sanitation program the more relevant. It is proposed that, while teaching oral rehydration therapy (ORT) and personal hygiene, health workers should also respond to individuals' concems about illness in the family -particularly diseases resulting from faecal-oral transmission- by educating them about the links between health, water and sanitation. D.Ipite the reportedly widespread administration of ORT in the project aea, death statistics from cholera and diarrhoeal diseases suggest the need for further improvement. As the ORT program is enhanced, a sanitary-environmental education component can easily be introduced in a way that concern about diseases would lead to increased use of latrines. Another proposal being considered refers to introduction of temporary municipally managed irench latnnes in the open defecation fields, along with an educational program to help clarify the link between faecal contamination and disease. 6  Annex 3 Page 7 of 7 The result nay be that people would become more comfortable with the use of latrines, and want to have their own close to home. 1.32 Base-Line Studies. Base-line studies should be carried out in selected pilot areas to help determine the actual environmental health profile of the musseques. The studies could be undertaken with the assistance of public health students of the University of Angola, and should include a knowledge, attitude, and practice survey (KAP-study) covering such specifics as water, sanitation, personal hygiene, faecal-oral disease transmission, and latrine use. Some data is already available covering illness and death in Benguela, Lobito (includes Catumbela), and Baia Farta, along with province-wide data, at the provincial health office. The data needs .o be analyzed for local patterns; e.g., the 1990 data shows 3408 reported cases of cholera in the province, of which 3005 within the Lobito-Benguela conurbation; the total number of deaths is 445, of which 273 in t1e project area. However, only 25% of the deaths are children under 15 years old, suggesting either an effective child-health program, inadequate data collection, or the strength of children who have suvived the war, drought, and poverty (UNICEF estimates one-third of Angolan children die before the age of five). 1.33 Conmnunity-Based Education. There are various channels for community-basxd education which can successfully reach the targeted population. Official channels allow including sanitary-environmental education, for example, in the broader program of health education and in the educational units for children, youth, and adults. Community organizations -religious, political, cultural, etc- will be explored as possible channels for community education. Initial contacts with different groups suggest promising involvement. This program would cover matters emerging from the above KAP study, as well as particular points such as latrine installation, maintenance, and use. Other specific examples include: a) literature about sanitation taylored to the newly-literate; b) academic training for school children covering the basic concepts of disease transmission via water contaminated by improperly disposed human waste; and c) simple instructions about latrine siting, pit digging, superstructure options, and maintenance. 1.34 Leadership Training. As discussed before, leadership training is crucial to the success of the Program, and it is of the utmost importance that community leaders receive maximum support in their own training of the communities. 1.37 P rovince-Wide Education. Educational techniques useful for the area include radio, TV, posters, music, theater, puppets, and various promotional items. Several radio interviews have already been aired; selected musicians and artists have shown interest in developing popular material; and experimental use of t- shirts, ball-point pens, and stickers has been launched. These especial sources and techniques could amplify the community-based education focus. 1.38 Integration. Sanitary-environmental education must be integrated into the broader concerns of the society, becoming part of nation-level programs, and the broader developmental concerns of the province. It is important that distinct sanitary education programs be pursued. Nonetheless, sanitary-environmental education is intrinsic to areas or sectors of wider concerns, and should be treated as such. The most obvious example is that of primary health care, which is understood a priority and normally conveys a positive response by the targeted population. Sanitation not only complements primary care, but indeed ensures that its results are maintained. Primary health care c'nuld readily incorporate sanitary-environmental education as a major pillar of good health. This integration would ensure that the results of sanitation and sanitary- enviromental education could be at leart as effective as those of the parent project. 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