Liberia - Urban Water Supply and Sanitation Project ...

1 Language: English Original: English Project : Urban Water Supply and Sanitation Project COUNTRY: Liberia Project APPRAISAL REPORT April 2010 Task Team Team Leader: Team Members: Sector Director Reg. Director: Sector Manager Mr. Tom Mugoya Mr. Rex Situmbeko Mr. Paul Dzimiri M. S. Sahle Mr. Idrissa Samba Mr. M. A. Ibrahim Ms. N. Kgosidintsi Mr. S. Jallow Mr. Ms. Awa Bamba Task Manager, Principal Water and Sanitation Engineer, Financial Analyst, Senior Financial Analyst, Water and Sanitation Engineer, consultant Environmentalist, Consultant Financial Analyst, consultant Health Expert, Consultant OIC, OWAS/AWF ORWB Peer Reviewers Mr.

2 M. Ndong-Ntah Principal Policy Economist-ORCP Ms. Senior Water Engineer, AWF Ms. Saloua Sehli Sr. Country Economist, Ms Grace Kyokunda Investment Officer, OPSM TABLE OF CONTENTS I STRATEGIC THRUST & RATIONALE .. 1 Project linkages with country strategy and 1 Rationale for Bank s involvement .. 1 Donor coordination .. 2 II Project DESCRIPTION .. 3 Project components .. 3 Technical Solutions retained and Other Alternatives explored .. 5 Project 6 Project Costs and Financing 6 Project s target areas and beneficiaries.

3 8 Participatory process for Project identification, design and implementation .. 8 Bank Group experience, lessons reflected in Project design .. 8 Key performance indicators .. 9 III Project FEASIBILITY .. 10 Economic and financial performance .. 10 Environmental and Social Impacts .. 10 IV IMPLEMENTATION .. 12 Project Implementation Arrangements .. 12 Monitoring .. 13 Governance .. 14 Sustainability .. 15 Risk management .. 16 Knowledge building .. 16 V LEGAL INSTRUMENTS AND 17 Legal instrument .. 17 Conditions associated with Bank s intervention .. 17 Compliance with Bank Policies .. 18 VI RECOMMENDATION.

4 18 Appendix I. Country s comparative socio-economic 19 Appendix II. Table of ADB s portfolio in the country .. 20 Appendix III. Key related projects financed by the Bank and other development partners in the country .. 21 Appendix IV. Map of the Project Area .. 22 iCurrency Equivalents July 2009 1 UA = US Dollar (USD) 1 UA = Liberian Dollar (LD) 1 USD = Liberian Dollar (LD) FISCAL YEAR 1st July- 30th June WEIGHTS AND MEASURES 1metric tonne = 2204 pounds (lbs) 1 kilogramme (kg) = lbs 1 metre (m) = feet (ft) 1 millimetre (mm) = inch ( ) 1 kilometre (km) = mile 1 hectare (ha) = acres 1 gallon = litres 1 inch = mm MEASURES AND ABBREVIATIONS km = Kilometre km3 = cubic kilometre l/c/d = liters per capita per day l/c/y = liters per capita per year l/s = liters per second MGD = Million Gallons per day m = Meter m3 = cubic meter m3/d = cubic meters per day mgd = million gallons per day mm = Millimetre mm3 = million cubic meter ii LIST OF ABBREVIATIONS AND ACRONYMS AfDB (F) African Development Bank (Fund)

5 AID Agricultural and Infrastructure Development Project by WB AWF African Water Facility hosted by AfDB DFID Department for International Development - United Kingdom DFID TC Fund DFID Technical Cooperation Fund available in the AfDB EA Executing Agency EC(U) European Commission (Union) EOCC Economic Opportunity Cost of Capital EOI Expression of Interest EPA Environmental Protection Agency EIRR Economic Internal Rate of Return ESA External Support Agency ESMP Environmental and Social Management Plan CIF Cost including Insurance and Freight FIRR Financial Internal Rate of Return GoL Government of Liberia GPN General Procurement Notice HSB Hydrological Service Bureau of the MLME IBSP Infrastructure and Basic Services Pillar ICB International Competitive Bidding ICRC International Committee for the Red Cross PRS Poverty Reduction Strategy of Liberia IRWR Internal Renewable Water Resources ISN Interim Strategy Note by

6 AfDB/WB IWRM Integrated Water Resources Management IWRMP Integrated Water Resources Management Policy KVA Kilo Volt Ampere LHS Liberian Hydrological Service LISGIS Liberia Institute of Statistics and Geo-Information Services LWSC Liberia Water and Sewer Corporation M&E Monitoring and Evaluation MDGs Millennium Development Goals MIA Ministry of Internal Affairs MLME Ministry of Lands, Mines and Energy MOA Ministry of Agriculture MOF Ministry of Finance MOHSW Ministry of Health and Social Welfare MOT Ministry of Transport MPEA Ministry of Planning and Economic Affairs MPW Ministry of Public Works NCB National Competitive Bidding NGO Non Governmental Organization NS National Shopping O&M Operation and Maintenance PCR Project Completion Report PT Project Team SIU Special Implementation Unit SPN Special Procurement Notice iii PSCC Programme Steering Coordinating Committee TA Technical Assistance UA Unit of Account UFW Unaccounted-For- Water UK United Kingdom UNDP United Nations Development Program UNICEF United Nations

7 Children s Fund USAID United States Agency for International Development USD United States Dollar WB World Bank WSS/WATSAN Water Supply and Sanitation WTP Water Treatment Plant ivGrant Information Client s information GRANT RECEPIENT: Government of Liberia BENEFICIAY/EXECUTING AGENCY: Liberia Water and Sewer Corporation Financing plan Source Amount (UA) Instrument ADF million Grant FSF Pillar I million Grant FSF Pillar III million Grant Government of Liberia Nil TOTAL COST million ADB s key financing information Loan / grant currency Grant Interest type NA Interest rate spread NA Commitment fee* NA Other fees* NA Tenor NA Grace period NA FIRR, NPV (base case) , USD million, at 5% EIRR, NPV (base case) %, USD million at 15% *if applicable Timeframe - Main Milestones (expected)

8 Concept Note approval May 2009 Project approval May 2010 Effectiveness August, 2010 Completion December, 2013 Last Disbursement December, 2014 Last Repayment NA vProject Summary 1. Project Overview The provision of Water Supply and Sanitation on a sustainable basis to the rural and Urban population of Liberia constitutes a priority development objective for the Government of Liberia (GOL), which significantly contributes to the fight against poverty and disease. The goals of the GOL are to achieve the Millennium Development Goals (MDGs) for Water and Sanitation targeted at halving the proportion of the un-served population in both the Urban and rural areas by 2015.

9 After the end of the civil war, GOL prepared a post-conflict recovery program, which gives priority to the rehabilitation and expansion of basic infrastructure destroyed and vandalized during the 14 years of conflict. One component in this endeavour is the provision of safe and adequate Water Supply and Sanitation facilities at affordable costs to restore 50% of the pre-war Water distribution capacity, promote good health, fight disease and reduce morbidity and mortality rates resulting from poor Water Supply and Sanitation (WSS) services. The proposed Project is the first Water and Sanitation investment by the Bank in Liberia and is an extension of the ongoing Monrovia Water Supply and Sanitation Rehabilitation Project (MWSSRP) funded by DFID and managed by the Bank.

10 The proposed Project is a key contribution to increasing national Water Supply coverage from the current 25% to 50% and Sanitation coverage from 15% to 40% by the end of 2012. The Urban Water Supply and Sanitation Project for Monrovia and the three county capitals contributes directly to the GOL s Water Supply and Sanitation recovery program (2009-2012). Monrovia and the three county capitals have a combined population of million, with very low safe Water coverage at 17% for Monorvia, below 10% for Kakata and Zwedru and 0% for Buchanan. These cities were selected based on their importance as political and economic centers, and the impacts of Water related diseases on the health of their population.