Morocco - Greater Casablanca Sewerage

 ICRR 10003 Report Number : ICRR10003 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: L2826 Project ID : P005449 Project Name : Greater Casablanca Sewerage Country : Morocco Sector : Sewerage L/C Number : L2826 Partners involved : EIB, CFD Prepared by : Ronald S. Parker, OEDST Reviewed by : Group Manager : Roger H. Slade Date Posted : 04/23/1998 2. Project Objectives, Financing, Costs and Components : rehabilitate the existing sewer systems; meet the growing demand for sewerage and storm drainage; identify the least-cost alternatives for the treatment, disposal and reuse of wastewater reduce environmental impact of wastewater; standardize designs: and develop appropriate institutional, financial and technical structures. Total estimated project cost was US$116.91 million, the Bank loan was US$60 million. Components included: (a) replacement of 60 km of sewers and three pumping stations; (b) rehabilitation of collectors and sewers, as well as cleaning and mapping the system; (c) construction of 410 km of new sewers; (d) equipment and training for RAD's sewerage department; (e) technical assistance, studies and works supervision; and (f) preparation of sewerage master plans, feasibility studies, and bidding documents. 3. Achievement of Relevant Objectives : Implementation of the works components was not carried out as planned : old system was rehabilitated, but new sewers were not built and housing developments in peripheral areas therefore were not connected . Little was done with reuse of wastewater but disposal solution (outfall) was implemented by donor. The components relating to equipment purchase, technical assistance and consulting services were largely completed . This project addressed sector problems in Morocco and, as the result, three other regies have been assigned responsibility for sewerage operations. There were two increases in sewer charges which raised revenues enough to cover all operating costs . The project succeeded to some extent in strengthening the capacities of the Sewerage Department within RAD, by involving it in the studies and in executing sewerage works . RAD was also supplied with modern equipment, and some steps were taken to provide training . Functions were privatized to a sole source provider . 4. Significant Achievements : Pollution has been reduced and environmental policy (protection measures) fortified. Acquisition of 56 new trucks for implementing agency. The signing of a contract with Lyonnaise des Eaux to operate the Casablanca system (privatization was not an objective initially ). Studies carried out under the loan have guided subsequent sector work . 5. Significant Shortcomings : Most of the proposed schemes and the treatment plant were not constructed. The sewerage master plan was flawed and as a result the physical components defined during appraisal were inappropriate, and others had to be selected during implementation. As of the closing date of the loan, three of eight sewerage works had been completed. Many of the remaining project components suffered delays. Some of the firms contracted under the loan were technically and financially weak. Technical problems were not anticipated. Land use authorizations and construction permits proved difficult to obtain. There were problems installing sewers in areas where access roads had to be built or slums had to be removed. Administrative procedures for contract approval were awkward. Study contracts were delayed as much as 19 months, and completion took up to 4 years including Bank and Borrower review. 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Marginally Satisfactory Most of the physical components identified at appraisal were not built, and this turned the project into a maintenance & rehabilitation effort. Institutional Dev .: Partial Modest These ratings are largely equivalent . Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Unsatisfactory Recovery of arrears inadequate, poor procurement & construction management, permitting difficulties, administrative problems and delays. Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : 1. Local and regional authorities should be involved in making the major project decisions to ensure their commitment. (Little borrower involvement during identification and appraisal led to land acquisition and permitting problems). 2. During the project appraisal stage steps should be taken to assess the financial capacity of the implementing agency. 3. The institutional framework should be identified at the project preparation stage, along with the appropriate actions for achieving institutional development objectives and resolving turf battles. 4. Time limits on contractors and consultants must be realistic and commensurate with the scale and difficulty of the work. 5. Steps should be taken to ensure that studies are of high quality. 8. Audit Recommended? Yes No Why? Privatization experience worthy of further study; possible building block for a future study on urban environment. 9. Comments on Quality of ICR : The ICR catalogues project achievements as well as areas needing further Government attention. It does not, however, adequately explain why the Bank appraisal failed to involve local stakeholders in making the major project decisions, nor why steps were not taken to assess the financial capacity of the implementing agency and required changes to the institutional framework. It was less than persuasive in presenting the sole source privatization as a significant project achievement. Tables in the Bank-prepared section preferred in English.