Algeria - Algiers Urban Renewal Project

Report No. PIC4530 Project Name Algeria-Algiers Urban Renewal Project Region Middle East and North Africa Sector Urban Development Project ID DZPA4957 Borrower Government of Algeria Implementing Agency Provincial Government of Algiers Date this PID November 1996 Project Appraisal Date October 1997 Project Board Date April 1998 Background 1. With a current population of 1.8 million, Algiers is the largest urban agglomeration in Algeria. It is also the nation's capital and its political, economic and cultural center. Its infrastructure was originally designed to support a population of 500,000. This infrastructure, particularly the road arteries, was expanded during the last decade. A major increase in water supply and sewerage was also provided to the city. However, some major improvements are still needed to upgrade refuse collection services and reduce traffic congestion. 2. Since independence in 1962, the population of Algiers has tripled. The housing stock, however, has not kept pace with the population growth. In 1967 the housing occupancy rate was 5.1 persons per residence. It has now reached 7.8. Water supply is rationed all over the city. Wastewater generated in the agglomeration is not treated before its discharge into the Algiers Bay. 3. Collection of solid wastes in the city is not regular. About half the refuse generated in the city is disposed of in a saturated landfill known as Oued Smar. The rest is dumped in nine unauthorized locations. There is evidence that the population living around the landfill and other dumping places is suffering from health problems created by the unsanitary disposal of the wastes. Project Scope and Objectives 4. The proposed project would seek to improve and expand the provision of public services in Algiers. It would aim to put in place the institutional framework necessary to provide efficient urban water supply, sewerage, and solid waste collection and disposal. It would also provide support for the implementation of the necessary user fees and taxes that would lead to the rational use of these services. 5. As part of the project, the Oued Smar landfill would be renovated to abate the major environmental problems it now causes. Meanwhile, a study would be undertaken to locate a new sanitary landfill outside of Algiers. It is estimated that more than 50 percent of gas emissions  polluting the air in Algiers are coming from transportation sources and improper disposal of solid wastes. A survey of air pollution sources would be carried out, and recommendations would be made on ways to reduce the emission of gas pollutants. Project Description 6. The proposed project would include three main components: (a) urban water supply; (b) sewerage services; and (c) solid waste collection and disposal. The urban water supply component would provide for institutional assistance in changing the existing water utility into a privately run commercial enterprise. It would also cover a program for contracting out a number of services of the water utility, together with a rehabilitation of the water distribution system. 7. The sewerage component would comprise an overhauling of the existing wastewater treatment plant and sewage pumping stations in the city. The objective would be to restart treatment of wastewater generated in the city. Two new sewage pumping stations would be built along the waterfront to curtail water pollution in the bay. 8. Under the solid wastes component, the Oued Smar landfill would be rehabilitated to extend its useful life by five more years. In parallel with this rehabilitation, a study would be carried out to locate and design a new sanitary landfill outside of Algiers. The project would also include the provision of equipment for the collection and transport of garbage and refuse generated in Algiers. Two transfer stations would be built to compact the wastes, and then haul them for final disposal in a sanitary landfill. 9. To help reduce the volume of refuse that needs disposal, the project would introduce recovery of inorganic material and composting of organic wastes. It would supply cans and containers for removal of residential and commercial wastes, and individual incinerators to hospitals in the project area. Under the proposed project, a central facility would also be built to dispose of hazardous wastes. Project Cost and Financing 10. The estimated total project cost is US$132 million, with a Bank loan tentatively placed at US$92 million. Implementation 11. The project would be implemented by the provincial government of Algiers, which is composed of local representatives of the central government ministries. The representative of the Ministry of Equipment would be responsible for implementing the urban water and sewerage components. The city's local government is directly in charge of managing refuse in the city. Its management is supervised by the Ministry of Interior. During project preparation, serious efforts would be made to promote consumers' participation in designing the project components. Benefits -2-  12. The principal benefits would be the recovery of 30 Mm3 of potable water, which is now lost through leaks in the network; elimination of pollution sources of water resources for urban supply and irrigation in Greater Algiers; reduction in health expenses as a result of sanitary collection and disposal of solid wastes, and reduction of traffic congestion in the city. The city population of 1.8 million would benefit from the project, particularly the poor (about 620,000) living in the lower-level land of the city. Environment 13. The project is proposed for category A. The project will have a major positive environmental impact through more effective collection and disposal of wastewater and solid wastes generated in Algiers. It also aims at curtailing gas emissions that are now polluting the air. As a result of the project, water and air quality will be substantially improved in Algiers. Contact Point: Mr. F. Rodriguez, Task Manager The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)473-2820 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. Processed by The Public Information Center week ending December 13, 1996. - 3 -