RESTRICTED Report No. TO-387a Tnis report was prepared for use within the Bank and its affiliated organizations. They db not accept responsibility for its accLuracy or completeness. The report may not be pubiished nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF THE AZRAC)-TRRTD WATER STTPPT.Y PROJ).TrrT T T AL Cr T r T 1rnr .rY .fl% S t f t flr HrASHE.LIT E ± r. 1\I±NNGI`)2JJM OF JORDJJA*`LN Cepternber "6 I1963-, DeparmLen o f, A 7OuaiJ ,Departmnent of Technlical Operations CTTDDWTIJCV TI'ITATUAT. I.?iTZTC U.-S . -pi. 00 =JD 0. 357 JI) 1.00 = 1,000 Fils Jr) 1.00 = U.S. $2. 80 Jr) 1, 000, 000 = U. S. $2, 800, 000 Abbr eviat.insa -.3 M = cubic meter knm. = kilometer 1 cu. m. 264 U.-S. Gallons 100 Fils per cu. m. =U.S. $1. 00/1,000 U.S. Gallons APPRAISAI OF THE AZRAQ-IRBID WATER SUPPLY PROJECT THE HASIEM1ITE KINGDCI1i OF JORDAN TABLE OF CONTENTS Paragraphs SUMMARY AMD CONCLUSIONS ..... ......... ...... i -vii I. TNTRODUCTTON--1 - 3 IIT THE P'ROPOSED BOPROnETRn ,,j. 7 III. PRESE:NT WrATEP. FACILITIES AND CHJ-ARACTERISTICS OF IRBIDi, NAFRAQ, RAMITHA, AND HUSN. 8 - 28 Irbid City ................... 8 - 19 Raratha. 20 - 21 Mafraq . .22 - 23 HUsn ...24 WIater Quality and Health Statistics . .25 - 28 IV. WATER CONSUMPTION AND WATER DEMIAlND 29 - 45 P.Pvrnt Wviter CDnnS1PtiTont.J ; . -=-.-29 - 35 Population Growth ............................. 36 Futul1re Demann. 37 _ 3R ~~.. .. .. . .. . . .. . ... . . .. . . Water Rates,. Metering and Po:Licies .39 - 4-5 V. THE PROJECT ..6 - 71 The Transrission Main.. L6 - 55 Irbid Distribution System . .56 D:istribution Systems of Pvlafraq, Ramtha, and Husn ... 57 New Water Sources ............................. 58 - 63 Project P:Lanning. . . 64 Construction and Procurement.. 65 Management and Supervision . .66 - 69 Project Cost Estimates ....................... 70 - 71 VI. FINAiICING PLANS AND FINANCIAL PROJECTIONS ....... 72 - 80 Source of Funds .72 - 7u Financial Projections .75 - 80 VII. JUSTIFICATION OF THE PROJECT . ................... 81 - 84 VIII. CONCLUSIONS AND RECOI34ENDATIONS ................. 85 - 87 ANNEXES 1. Organi.zation Chart for Central Water Authority 2. Irbid Municipality - Organization Chart 3. Estimated Revenues and Expendituwes - Irbid Water Department i4. Health Statist,ics 5 Water Consumption 6e Population Growth of All Areas 7. Estimated Per Capita Consumption Per Day 8. Azraq Water Pipeline (Demand Tab:Le) 9. Proposed Construction Schedule Azraq-Irbid 10. Project Costs 11. Azraq--Irbid Pipeline - Pro Forma Income Statements 12. Azraq.-Irbid Pi.peline - Sources and Application of Funds 13. Irbid Distribution System - Pro Forma Income Staterments 14. Irbid Distribution System - Sources and Application of Funds 15. Assumptions for Financial Statements MAPS 1. Azraq-Irbid Water Supplv Prolect 2. Azraq-:[rbid Water Project - Water ;Oistribution Svtpin - Trbid I. INTRODUCTION 1. The Tshewm.ite Kingdorm of Jordan, ating through the Jordan Developmenlt Board, has requested a development credit from the Inter- nat-iorlal- DevreloP.-ment Associ;_+1_-0,n to bh_lp f-;nW-_ te +h Azrw-eIrb4 WnterM Supply Project. This project would include works for collecting water -P -- - II ,lff l,,fl f Pn-, 144-4 -,- --n ,,n- n -,n -'r+- 0 fromll spr;r.gs 1neUOr XLJL"zrq puUL.PLprPg fciites YelmairU-dpat relaying of an abandoned petroleum pipeline, substantial improvement uQ 1i4 Wd CU13L U±_E -DUD.LULU.Q LU1i Zy)IOI4 U±i WitD U 0L ±U L D.j.LU, i± CU.±da.9 C1L .L Ramtha, and construction of a distribution system for Husn. Provision is madue also for sulpplying an air base and seven desert waterilg points. Later connection of 46 villages to the pipeline is also foreseen. 20 Total project costs are estimated at JD493,000 (US$1,380,000). A credit of US$920,000 from IDA would cover two-thirds or the project costs. The source of capital to cover the remaining costs of JDl64.,000 (US$1460j,00') would be loans by the Municipal Loan Fund. 3a This ap:praisal is based on documentation prepared by the Central Water Authority (CWA), an agency of the Jordanian Government and field visits by Association staff. Two proposals were made. The ^irst proposed use of water from the Ain Zahar springs located 20 kilometers west of Irbid. Because of the highi cost, Association staff suggested another alternative be sought. This second one would provide for utilization of water from the Azraq springs located 130 kilometers southeast of Irbid. The development of a project using Azraq springs is cheaper to operate and maintain, will meet the needs for a longer period, and will benefit a greater number of people. Eecause an existing petroleum pipeline will be used as the trans- mission main, it also -will have a lorer cash cost. It, therefore, has been selected by the Jordan Government. II. THE PROIOSED BORROWER The proceeds of the credit to the Hashemite Kingdom of Jordan would be made available to CWA for construction of the transmission main and the execution of the distribution systePm work in the foilr cities of Irbid, Mafraq, Rarttha, and Husn. 5- CDOA wotld build and operalte the transmission main, which world consist oi the c fVr work at Athe r crz-r , si,a rmirr s n pipeline, desert watering stations, reservoir, and spur lines to the conser rn" rmri p I- rnl4 T+- 1, SIMI 'd 4-1, 4- - I. d 1, rea oA - loans made for the transmission main from the proceeds. 6. The cities of Irbid, Mafraq, Ramtha, and Husn are directly responsib}e for their water systems and would therefore carry responsibilit-y for repayment of loans made for improvement of their water distribution systems. Upon completion of tne work, CWA would transfer same to the muni- - ii. - at water raLtes greater than at present, but similar to the higher water rates in ef.fect elsewhere in Jordan (Paras. 72-80). vi. The project is necessary to provide for the potable water needs of the four major cities of Jordan by utilization of a water source now flowing to waste. It will contribute to better public health by making available safe water in adequate quantities. Expensive, limited and un-, safe haulage of water would be eliminated (Paras. 81-84). vii. W4ith the conditions agreed to by the Borrower, the project Drovides a suitable basis for an IDA credit of $920,000 (Paras. 85-87). APPRAT5OA. On TUE A7D A .TDnTTh 1.TA 'P qTTPPT.V PPO.TOJEGT fUL't TAl% UJLW.J.LJ VJf TKTr,t_ nrY .3. _TL 4.'dAUJ\ THE HAHMT KIN~GDOM OF JOQ^A3 OTTh1flfAfDV AMTr, rn'TOTTT0Tn1TC! QUrI ULLL 1 U'JV.tV l U. X ./W i. The Hashemite Kingdom of Jordan, acting through the Jordan Development BoUard has req-uested a de velopme-nt credit from, the Int er- national Development Association to help finance a comprehensive project to supply water in bulk tnrough a trLanmission main to irbid and thiree other municipalities, desert watering stations, and an air base. The project includes improvements to, and an installation of, municipal distributi.on systems. The Central Water Authority (CWA), to whom the credit would be relent, would execute the project and operate the trans- mission main. The distribution works would be transferred to the muni- cipalities with the repayment obligations for appropriate shares of the credit (Paras. 1-7). ii. Present water sources are inadequate and undependable. Each. municipality now hauls part of its water supply and one is entirely dependent on this method of supply once rain water cisterns are exhausted. Very limited water distribution systems exist in three of the municipa.ities and none in the fourth. Water quality is unsatisfactory, largely due t;o the contaaination inherent in periodic shutting-off of supply and to the handling of trucked water. Water consumption is very low, from 7 liters per person per dar in one city to 29 in another. Water-borne diseases are prevalent in the area (Paras. 8-h5). iii. The project consists of the reclamation of part of an abandoned petroleum pipeline extending from the Iraq border across Jordan to its western boundary. The nipeline passes *by the Azraq spr;ings, now flowine, to waste, by Mafraq municipality and air base, and on by the other mun:L- cinalities to be served. The water would be nuTmnpedl 17 kilometers to a reservoir from which it would be distributed to Irbid, Ramtha, and Husn. Mafran. the air base, and desert wat,ering stations wouild be sunnlied eia route directly from the pipeline. The project also includes extensions +.t+o r3;. crli e-rfhii+.Thri c,.ms f' TiMA_ Mnafrann nnd Ra'nT+.hn na wnll installation of a system in Husn (Peras. 46-63). iv. Consultants for the transmission main and pumping stations:have been hii,red by" MATA m-andn-I w rk i onj t>L Yn-+ --P +In-roet a -nredybe1 .3.f* C J. *3. J . ..vw - a . -. M I.fl - - -l, 17.L - V -~ -JS -9..J d. U ,C, -.~..~J.. '5 - CWA.will operate the transmission main and the distribution systems will be W,-.~Ow te. Lb,y each ol the respe Ip'iJ. VU ULJ.. J ULes. CL0O.Ls t ance will be obtained by CWA and made available to the municipalities. Total proJect COStS C will be $1,380,000 of -wh_i.ch o1reign CUrrenCy CoStsS are estimrated at about $797,000 (Paras. 64-71). v. An IDA credit of $920,000 would cover two-thirds of the project costs. The remaining portion would be financed by loans from the Mnici.pal Loan Funcd. Financial projections indicate a financially satisfactory basis - 2 - cipalities together with all appropriate assets and liabilities. The cities woulLd carry, their proportionate share of the costs of the pipeline and bulk service f'acilities through the payments made for water taken from the pipeline. 7. The Central Water Authority is an autonomous agency of goverrnment and is responsible for all development of water resources in Jordan. Although at present concerned only with the technical development aspects of water supply, provision is made in its charter for taking on administrative and management functions when necessary. CiA would be responsible for operating the transmission main and for providing management assistance to the cities. An organization chart for G7!UA is shcwn in Annex 1. The dotted lines on this chart reflect a proposed new division which would be concerned with the Azraq-Irbid transmission main operations and the management supervision and assistance to all municipalities throughout Jordan. III. PRESENT WATER FACILITIES AND CHARACTERISTICS nF TIRBID, IFARAQ, RATITNA, AND MjSN Irbid City 8. Irbid may be considered in two parts. One contains the city in general., VWA.iA tlhe fo4."L Wng watuer± Ucsrs LU inUU4.U.i VWi to dmsi JL.JULIt± L a) "ILIusU Lr± - Une ice ±acto1y, 3 ol±VY 0 6 flo-- 1ILL.LLs, 12 tile factories, 30 concrete block factories, 2 cotton mills, ulie eLectric comparnr. b) Commercial - 50 garages, l' bakeries, 3 hotels, 50 coffee houses and restaurants, 4 cinemas, 10 animal yards, 1,500 various shops. c) Institutions - 3 hospitals,, 43 schools, 8 mosques, 5 churchs, l slaughter nouse, pubDlic fountains and municipal buildinrgs. 9. Tne second part is the ref'ugee camp. There are 13,300 people in this camp at present. Prior to 1L948 the population of Irbid did not exceed 20C,000. Results from the 1961 national census placed the total population, including refugees, in 'the camp, at 44.,800. 10. Organization charts of the city and its Water Department are shown in Annex 2. An approximate pro forma income statement for the Water Department for the past'five years is given in Annex 3. 11. At present, the City of Irbid derives its water from four differen-t springs, three of which are 'Located 15 kilometers east of Irbid. The waters of Um--El-Fruth and Al Farah springs flow by gravity to a wet well in 1Wadi Rahoub. Shallalla spring water is pumped to the wet wel:L. The colliected wa-ters are then pumped to Irbid. The fourth source, wh-'ch - 3 - also is purmped to the city, is Khureibeh spring, 11 kilometers north of irbid. 12. It is estimated that the minimum yield of the springs, is some 900 cu m per day, with an average da:ily yield of at least 1,000 cu m. The springst flow has only recently been properly metered. 13. There are neither pumping stations nor treatment facilities wirthin the city. Pressure is controlled by the main reservoir on top of a small hill in the center of the city. Water is delivered to the reservoir directly from the spring pumping stations. 14. Water storage for the system consists of six reinforced concrete reservoirs with a total capacity of 460 cu m. 15. There is no work plan for preventive or routine maintenance. All such work is performed on a demand basis. Annual maintenance costs are reflected in the lWater Department's records of revenues and expenditures. ExDenditures have recently averaged JD700 annuallv. 16. The muinLcipality owns thp Pyiqting springs. Tt has the full rights to use all four sources of water. There have been no water right disnputesn, .ainfd none are pending= 17. All pipelines are laid either on public lan.ds adjacent to rolds or across fields where easement has been granted by right of eminent domain. Reservoirs are on city pmrperty 18. The cret, valu of the assetls ofl the1 ---4sti4- water system of Irbid have been estimated by OWA as follows: 1. Pumps and prime movers JD 15,000 2. Reservoirs in Irbid, Rahoub.., A Lureiuehi aiQ Dria±±l Ia 2,00UU ). U-.Li L p.Lpe 'rom±1 nciILlu UU UVULU ±U lUll 4. 4-inch pipe from Ain ShailaLla to Rahloub 6 in 8,000 5. 4-inch pipe from Khureibeh to Irbid 13 km 16,000 6. Pump station buildings, livirng quarters for guard and employees 15,000 7. Two chlcorinators 1,200 8. Two mobile water tanks and pick-up truck 3,000 9. Existing water mains and distribution network 100,000 10. Tools and spare parts 1,800 Total JD 204,000 19. There are 4,500 water meters installed. All are I-inch diameter except for three 4-inch meters at the Refugee Camp, Army Camp and TeachersT Training School. A 3-inch meter is installed at the Government Agricultural Nursery. Ramtha 20. According to the 1961 census, Ramtha had a population of 10,790. The Water Department is a part of the city administration under the Mayor and follows a pattern common to all of the small cities of Jordan in which accounting and engineering services are provided from outside the department. At present, there are 7 Water Denartment emDlovees. 21. The present water system consists of a limited distribution system installed in 1954 and since expanded. Supply has been from two makeshift dug wells with ant,iquated. equ-ipment=- After various attempts, WrIA was able to get a drilled well producing 10 cu m per hour on which l,as now been installed pmnpimng equinpment to deliver 200 GU m, daily- Thle frlWAt stArnnte of the systemts worth is JD29,400. l1lafraq 22. The same type of Water Departmient organization exists for Maf'raq asl. for4. .fl -. 4The4 ar 4 .14 -ployeesl. lIdJ.± v LP UL4In ± U W)ds Utwa l e L. '.411 V UI.. L.LLUe WC: X X D U PVVI y -L 1 Ja .1 |i with unsatisfactory equipment. A recently constructed elevated tank for waJer storage has out been used UecusIe SU`iU ent water is not avaiauL.LIe to fill itl. The clistribution system dates from about 1951 and serves the popuianUJI Ul ,5(). The c-u03 tJVo ', c m.n Thy are no alwaysr filled during the years of low rainfall. 31. Hauled water for the general population is pumped to roof tanks or o -e ci;st-erns anld used when Ieurd Haule waler f1or 4herefgls or U' 4UL1 UL2 UeJ 1I W I ~ U VJ111=1. L" AL±± U. 11G1dALV.1~ d e .1 UL L j camp is placed in the same reservoir with the piped water. 32. The trucked water for :[rbid comes from Wadi el' Arab springs )Un 1. 'iLI o e -- -UJ-._ . -. .iiC ____ - ~- - -U 4.3 i--- ujie- -I1WI±nrjJ4.L L' _30 k_lom eer Uetz"'- W oU the ULMi b y. ItL Ls sould by thel m.ic11lUpJdiiDL y atu 200 lsL per cu m and by private vendors for 500 fils per cu m. The water is obtained free au vvauL e-l Arab. HauieU wc±bel foU I hUe U1W L cUltes comes froVm1 varlous springs and is sold at rates often higher than 500 fils per cu m. 33. In Irbid, the Water Department shuts the water off by areas at times of water scarcity; the periods of' no service sometimes extend to ten or more days. 3h. The project area will include a military installation now supplied by water from its own wells. The present supply is estimated to be deficient by 150 CIL m per day. 35. No data. are available on water consumption in the 46 villages near Irbid which will eventually be supplied by water through the project. Population Growth 36. Annex 6 shows the censused population of the principal communities of the project area for 1961 and the estimated numbers for the immediate future years. These projections on population growth have been made on an assumed 4 per cent increase per year for Irbid, a growth rate selected because of' the good potential of the area due to the irrigation benefits of the new Yarmuk River scheme. The other towns and villages are assumed to have a growth potential of 2,4 per cent annually. Future Demand 37. Demand for water in Irbid, Yiafraq, Husn, Raitha, and an air base, is rapidlyr increasing and present sources are unable to meet the projected demand. Annex 7 shows the estimated per capita consumption for the present and for the immediate future in each of the cities and Annex 8 shows the estimated annual demands. 38. Because it will be most economic for Irbid to utilize its existing sources to their fu11 nnani tv first and to take water frcm the nroposed pipeline only as needed, the average capacity of the present sources has been deducted before calculahting Irbidt deXmannd frovm the ninplinn- The new well in Runtha is also taken into account but the other wells of Ramthc and all the wel S of Plafraq ar epete tonn+r be% 'keptn ormly as ctan-nhIyVrlve lilater iLat.es. ..etering c.L ._A 37. In ±LU UI1rbi teUU tLL IiLJL= U.L lilt mtUr i sLI Vce f or UIthe past ul years have increased from 2,850 units to 3,410. 40. The meters are of three different makes and are owned by the consumer. Meter .repairs are made in pr.ivauely-owned shops and at the expense of the owner. CWA reports that a new meter operates satisfactorily for about five years, after which annuai maintenance is required with average meter life at ten years. An average of 40 meters were repaire(d and 100 meters replaced in each of the past unree years. 14i1. i'ietering practices in Raxutha and Viafraq are generally similar to those in Irbid. Metered connection- in each city for the past three years have been as follows: Ramxtha lMafraq 959j60 569 1,031 1960/61 604 I,i53 1961/62 621 1,280 . 7 - 42. The rates and fees charged for water in each of the three cities for 1961/62 were: Irbid Ramtha Mafraq General Service Charges Application 10 fils Not available Not available Subscription 30 fils 50 fils 10 fils Connection 1 JD 800 fils 750 fils Deposit 2 JD 500 fils 2 JD Reconnection 1 JD 250 fils 250 fils Reinstallation 500 fils Not available Not available Billing period 4 months 4 months 2 months i4inimum charge 600 fils 600 fils 480 fils Water Rates Residential 1-50 cu m @ 60 fils/ Flat rate of 1-8 cu m @ 60 filsl cu, nr, ovrr., 5cm -I r 5fll r' c m, A-1 m,I cm @ 100 fils/cu m. 80 fils/cu m, over .LU LL Il '~' 7 J _ -L-.i..n cu m. Places of worship and raU-_-Lic_l- builULngs s'ee Free Free Charity establishments, hospitals, schools 50S reduction 50$ reduction 50% reduction 43. From the available data it would appear that the unaccounted-for water of the Irbid system amounts to 30 per cent or more of total water produced. Part of this is no doubt attributable to free water, leaks, and defective meters. It should be possible to reduce these losses to 25 per cent by the first year after project completion and to 20 per cent within five years. To do this will require that all new meters installed be owned and serviced by the Water Department. As a general policy, all existing meters should be serviced by the water departments and, as these meters are replaced, ownership should be taken over by the departments. Policies and proceduxres for accomplishing the above objectives should be developed as soon as possible but no later than the time when the new project becomes operative. 44. It is Proposed by the government to eliminate all free water. I'losque, church and govermnent uses will 'be charged for water, to be paid for directly or by municipal funds. 0 -u - 45. Water would be given free or for only a nomTinal price to the Bedoulnas at the desert watering stations. T'ne quantity is not large anld tradition makes difficult any other course. It would be sold to private water carriers and other users. V. THE PROJECT The TransmLssion Main 46. The project consists of two major components, the transmission main and the distribution systems for four municipalities. Each is discussed separately-) 470 Map 1 shows the outline of the project. It is proposed to pwup water from the spr-ings at Druz Village-Azraq, a distance of 137 kilometers to a high 'Level reservoir west and above Husn and supply water to Mafraq on the wayv From the reservoir water would flow to the cities of Husn, Irbid and Ramtha by gravity. There would be 7 desert stations constructed along the way at approxarnately 17 kilometer intbervals to furnish water to nomadic desert tribes and their animals. 48, Aside from the future expansion of water service in the four cities to be servnd. suff-eiont water snurpr. qn(i nipnline nannti-tv e-xists to also serve 46 villages containing 31,000 people. Connections to these villages are considered aS a fut+ure expansion and nre not includrled aS a pnrt of the present project. 49. The Iraq Petroleum Company has transferred to the Government for its use +v1fD f-vdrtsA n~~c~ of r~4~ 4+vh vomDi.y rc g pipes, pulmps, nd punp- houses for:, among other things, water development projects. The principal asset is~ a pe+trolel ie efo h -wetr bodo +. --- -i+" TIrq on +l--uE; to the Jordan valley. Also included are certain pumping facilities at the Druz sp np,s at AZr- T~r4 & S-IJ - P 4J -OtiS.4 500~~L.LJ Vls ofL 1;het t ran.W 400son m.ain. wiou -LdLZ be IPC JJpipe, UcleCUV.edUi J,.td L ]ef in place. Hitherto unused, it will now be a productive asset for Jordan and one which pwil permit utilization of a water source previously flowing to waste. 51. One hunclred kilometers of the 16-inch steel petroleum pipeline would be cleared and left in place. .4n additional 32 Kilometers of 16-inch pipeline would be salvaged and relaid from the Druz spring, Azraq, to the now existing pipeline. On the westerna end of the line, 13 kilometers ol salvaged 12-inch pipe would be laid to connect the 16-inch line to Irbid. At an angle point on this 12-inch line some 5 kilometers east of Irbid, a new 6-inch line (10 kilometers) would be laid to supply Ramtha. - 9- 52. A single pumping station would be erected at Druz springs-Azraq with the necessary reservoir, supply pumps, and facilities for pumping in one lift t.o the 2,000 cu m reservoir west of Husn. 53. There will be no necessity for any treatment other than chlorination at the main pumping plant. 54. The work on the transmission main has started and 13 kilometers of 12-inch. steel pipe have been moved from its trench west of Husn and relaid from Husn to Irbid. and welded in place. The main 16-inch pipeline from 35 kilometers east of a pumping station on the old petroleum line to Husn has been drained of oil. Removal. cutting. and transnorting to t.he Azran"!, relocation is now under way by force accounit. Placement and welding is being done by cont-ract. The Jordaninn Govcrnnment. hns advanced OJA IJDlO,000 for this work up-to-date. 55. Information supplied by OWA. shows the existing pipeline to be constructed of 16-inch pipe han6 a wa1l +hin--Ss of 0.75 i nche a test pressure of 1,000 psi (pounds per square inch). The pipeline has not been used since its pla^ement in- 1194F. ar.. Jt Js stated to be Jn excellepnt ~~ LA.Jt~~~'.A ~ ~ A. I.~~~ ,V) ' -V 4 *±I -L'&4'. -I'. - U .. Va V~'SV ' - J UI VL condition. The consultants now emplcyed. on the pipeline have stated that it -4,11 Ie satisfactory f1or the 620n psi ---ln presur to- -41ih itw b ~ JO 0 V~0L'~ V'JJ J J. ULI ~J £ ' S 4.; VVo±rk'.1ig, yJ. 00 u Li L,LJ ~V11_Lki.. 4-V VL.J.k...L. UV subjected. Irbid Distribution System 56. Consultants employed by the government in 1961 studied the Irbid water supply- problem and presented a prelim,tinary st-udy which included major improvements to the water distribution system in that city. It is proposed J. _ , -9 fnI LU n. 1 aEE115|I1jz*Zzf 'bU olLow essentially trne design suubmtLed at that time ksee Mviap IJ. his involves renovation of pumping facilities on the existing sources, construction of new loop mains and cross mains. and general reinforcement of the entire grid. Extension of branches to sections of the city not now served is also proposed. Distribution Systems of Nlairaq, Ramth.a, ana nusn 57. After the project was submitted, the government decided to include the improvement of existing distribution systems in Mafraq and Ramtha. They cLso decided to construct a new system for Husn. Designs for these works have not been started, but the goverrment estimates an amount of JD55,000 should be sufficient to cover all three. Of this amount, it is proposed to set aside an IDA credit of $103,000, equivalent to JD36,700, representing two-thirds of the total. Designs and. cost estimates, pro forma income state- ments, together with plans for organization and management, would be submitted prior to release of funds. New Water Sources 58. The pipeline will take water initially from the Druz springs, two of a group in the Azraq area. These springs have a yield of 250 cu m per hour as measured in 1963 by a UN team. A second set of springs, Sheshan, has a - 10 - water of somewhat poorer chemical quality than Druz but it can be used when mixed with the Druz supply in proportion of about 1:2. Sheshan has a measured yield of around 1,200 cu. m per hour. 59. Water from the springs now flows to waste. The government onms all water rights and CWA anticipates no problem in utilizing the springs for supplying the pipeline. 60. A theory has recently been presented by a UN team working in the Azraq area which suggests the possibility of the springs becoming saline as the result of reducing the flow into the salt marshes created by the spring overflow. The theorv is advanced that if water from the Druz spring is diverted to the pipeline it would reduce the level of the salt marsh and this, in turn. rMight in some way rhange the~ nattern of underground water flowr un- stream of the spring and cause salt water to contaminate the spring water. A st,udv oi' the risk involved as nrescnted in tho theorv has lead to the conclusion by CWA hydrogeologists that the likelihood of the salting of the springsq ns P+.rpmrnely remot+. Mnvaoverw +.he l irel of tfhe salt mn-rh normT1vl varies over a considerable range seasonally. It is concluded by CWA artd IDA staff +tha1+. Aivsion of the o¶rerfl rY from Druz spring sh onl in Yi way jeopardize its quality so long as no drawdown of the spring level is imposed. 61. Because salt layers exist in the area, care should be exercised to insure- tha4 *nV,,AnM~A. 1 , A-- ,,+ -r.n- -i n-+ a e~nlj n --J,4fny'~ _o__1- that rm^da, drilling doe no+v croscx_ unc a _-1ne _q tr - t a spring aquifer. Assuming that these precautions are taken, it appears Ulhat DrUn Spring c:an be rele.e on for a4; least 6,000 - - per da of gcod quality water and that at a future date, when more water is needed, Sheshan spring WatU;e coJ 'd.LL e rJIL-LxeU-d W-LUII t LCw Ut . oJfruz tUo UdL."LLue U±lh OiJ0"Cu± soc.rL-L2 Vy to acceptable levels for potable purposes. 62. Chemical. tests show the watier from Druz spring to be low in chlorides and sulfaies and riot very hard. Sheshan spring is high in chLorides (620 milli.grams per liter) and high in total solids. 63. Bacteriological tests have not been made on these sources but., because of' their isolation, little question snould exist as to their safety. Chlorination should provide an adequate safeguard in any event. Project Planning 64. The broad outlines of the project have been developed by the staff of CWA. Consultants have been employed to prepare detailed design and to super- vise the construction work on the transmission main and pumping stations. The design of the Irbi.d distribution system, utilizing the Ain Zaliar source, was ikade in 15961 by a separate firm of consultants; it will be revised for the new source by other consultants still to be selected. Construction and Frocurement 65. A tentative procurement ancd construction schedule is shown in Annex 9. As previously noted, work on the Husn-Irbid 12-inch line has already been finished except for testing and the! relaying of the Azraq line is proceeding. Orders for pumps and equipment have been placed. Expenditures are being met with funds advanced by the Jordan Development Board. Most of the work on the transmission main should be completed by January of i964 and on the Irbid distribution system by June 1964. Distribution system.s for the other three municipalities are proposed for completion by January l965. All supply items and construction contracts would be submitted for inter- national competitive bidding. CW.A would have responsibility for arranging and coordinating Eall work on the transmission main and on the distribution systems of Irbid, Mafraq, Ramtha, and Husn. E;anagement and Su)ervision 66. CWA wilL operate the pipel:ine after construction and will maintain separate accounts and records apart from its other operations. Staff l'or the pipeline would be paid out of revenues collected from the water sales. 67. The water departments of the four municipalities will require reorganization with additional staff. A policy of departmental ownership of water meters should be initiated and central repair facilities arranged. 68. Because the personnel from CWA who will operate the pipeline and the personnel of the municipal water departments will all require assi'stance during the first;years of operation to insure good administration, provision is made for funds to cover such advisory services. OJA is to create a division to provide for management assistance to water departments throughout the countrv and the pronosed services for Irbid and the other municipalities will be coordinated and channelled through the new division. 69. Contracts are to be made between CWA and each of the municipalities to the efp'c.t that they will receive- t.h.e works when romnTple+pd and i11 acpnt the financial obligations pertaining thereto. They must also agree to main- tnnn ad¢,uaterates,sep.ar1antion ofac.rt, andi n . deb lnm.+n + ons,. and to generally conduct their operations i.n accordance with sound business, finan- cial, anr.c' publJc 1 4uiity --tractnces. Ir.An-enA- --u -dAi+v are +o b required. Project Cost Estimates 70. The project cost estimateS total JD493,000 ($1380,000) and are sunmarized be P- Te costs of' th~e Az;^aqT-Irbid --4-isio --n ar. th Irbid distribution are presented in more detail in Annex 10. Azraq-Irbid transmission main JD 294,000 IrUid dUstr.tuutUIn system 1h, e)uu Yiafraq, Ramtha, Husn distribution system 55,00() Total JD 493,00() The estimates on the transmission main and Irbid distribution have been submitted by WvIA and are quite f'irm., in some details they reflect actual expenditures. Pie amount for the distribution systems of iafraq, Ramtha, and Husn, are based on an educated guess. 71. Although. the IDA credit would cover two-thirds of the total project cost (including interest during construction), foreign currency costs for the transmissi.on main are estimated at $376,600 (JD134,500), or 46 per cent. of the total.. In the case of the Irbid distribution system, foreign currency expenditures are estimated at $308,600 (JD110,200), or 77 per cent. The foreign currency costs for the distribution system works for Mafraq, Husn, and Ramtha, may amiount to $112,000 (JD40,000), or 73 per cent. Total foreign exchange costs for the project are estimated at q797,200, or 58 per cent of the total. VI. FINANCING PLANS AM) FINANCIAL PROJECTIONS Source of Funds 72. The financial plan contemplates that two-thirds of the total costs of the project will be financed by the IDA credit. The credit would be relent at h per cent interest with a three-year grace period followed by a twenty-ye.ar amort:ization period. Municipal Loan Fund credits would covrer the remai:ning one.-third of thA oronect nosts and be made available at IL per cent, two-year grace, and a subsequent eight-year amortization period. 73. The financial projections, Annexes 11 and 12, for the transmLssion main indiGate a bulk sale rate of 60 fils per c-u m This compares urinth an anticipated bulk sale rate of 100 fils per cu m.for the Ein Samiya, Jerusa'lo supply. would have to sell its water at an a.verage retail price of 110 fils per cu m. ThiL- Ls les hlLan uLh'e rate anicipLatLjJd.LeUd 1n UtsaLLeLmL1I1, bLJut aIL,ost W.L. Uth present Irbid and Zarqa rates. It can also be compared with the 200 fil per L,L ~~ j9. .~ QU V1LLI.~11 L'LV _...L L..LX4 W~ U"CJ. L '. J.~ JJ cu la prlice atlv which 4thL-e c4ty se'lls trucked water - ar,d hEf500 fil; pI charged by private trucks. Financial Projections 75. The pro forma Iricome statement for the transmission main presented in Ainnex * l anow3 a deiicii. in -tUhe I tb t*wo years VI opVderUVL i aer I interest payments. The return on net fixed assets, including the prosont salvagG value of the pipeline, in the valuation: Of the fixed assets, ranges from 0.4 per cent in the 1964/65 financial year to 8.4 per cent in 1974/75. Excluding tne salvage value, tnese rates start at 1.1 per cent initially and reach 26.3 per cent ten years later.. 76. The souarces and applications of funds for the transmission main, as set out in Annex 12, show an increasingly strong cash position, reaching almost 5() per cent of sales in ten years. Debt service coverage rises. from a low of 1.21:1 the second year of operation, but rises qu.ickly thereafh,er, -. 13 - 77. The price for the bulk sales has been calculated in the financial pro- jections at a single price per cu m regardless of quantity. A more economically sound policy would be to charge each municiDalitV an annual fee, plus a cubic meter water charge to cover direct pumping costs. The fees would have to yield sufficient revp.nue to eover fixed costs, incluDirng depreonLattinn and add:Ltinnal amounts necessary to service the debt beyond the depreciation account or to e'arn an adequate returrn on investmq.nEntT whiohrnror womld be greater Suiih a rate structure would tend to encourage greater use of water from the trans- mTni-,n mnnin in t:he ea-ly years. 78. The pro formn incnme s++-.nrnnn+. for the Irbid dir;u,thii+on :nystem, Annex 13, shows a growing return on net investment of 2.8 per cent in the first wyear after project co,,,pevivr to 8. pe cen rn, yes^tmYs The operating ratio decreases very slowly, reflecting the flat rate pricing .^5;^t- -V 4ranosmAi sJ r -^lE |_4 I - ^4_ 4 .4 l AAA r .r L4LI1ne e.Li J U . IJ L%J.AJU IIAC.LLi, .9 .9 L.LIJ Wa.IJW.L UV IDJU decrease appreciably with greater volume. 79. Annex 14, illustrates the sources and applications of funds for Irbid. ±ues are m_Uir cEas arawuWnT- Ln. bnLe inidaal years aster completion of the project construction but tho cash roservo remains adequato. Dobt usrv'1ie cverage Degins irom an InIta1l lOW Of 1.Z1:1 DUt rises satisfactaorl y thereafter. 80. The financial assumptions used in the calculation of Annexes 10 through 13 are given in Annex 15. VII e JUSTIFICAT]:ON OF THE PROJECT 81. T'he cities included in this project are major population centers in the northeast section of Jordan. It -is an area of some agricultural prcduction and, in the case of Irbid at least, oine expected to grow substantially due to the developmient projects in the area. All the present supplies are very in- adequate, cnd in ore case, all water must be brought in by road transport. 82. The project, as proposed, will provide a new source of water in adequate quantity and quality to meet the needs of the entire area for a number of yrears in the future and, by supplying an entire area, the unit costs woulcd be reduLced and would be within the capacity of each municipality to repay. 83. Improvement of the distribution systems in the four municipalities, installation of seven desert watering stations. and provision for later connections to 46 villages will provide that substantial benefits to health, basic needs, and small industry will result. 8h. The nroiect is essential for Tmeting pnresnt and continuaLly ex- panding needs in the entire area and 1ith the existence of an abandoned pipe- line which will takre water from -spri;ngs now flnwing tn waste, prersents a com- bination of factor, which will meet these needs with a minimum of investment. - 14 - VIIIr. CONCLUSIONS AND RECOMENDATIONS 85. T:he project provides a new source of water which is urgently needed by all of the communities of the area. After completion, a dependable source, adequate in quantity and quality, should exist to meet needs until at least 1975, and additional quantities would be available of somewhat poorer chemical quality to meet needs for many years in the future. Improvements to dis- tribution systems and supplies of water to communities, villages, and desert stations will insure definite public h!ealth benefits to the people resid.ing within the area. 86. The Borrower has agreed to the following conditions in respect of this project should the credit be granted: (a) Local loan funds will be made available to CIWA at an intprpst ratp of Li nor crnt.. a two-vyar grane neriod. and with repayment of capital in eight equal annual -if nqn I monf+.-Q (bh r.WA T.T.4ll constz+ctP+ +.ha pro,ec and its- com..plnetionr operate the transmission main and transfer to the munricipalities the di stributvion works together with the liability for repayment of the loans corresponding to Vl SIC5, %.L 0 UJ._LJ tIS J I LVJ 0V~i.k±dJ.V-1 I .1 L. V L.U0I )L. I.~ {vhese dist-buun on -44t,4- (c) uFds0 wrill nVot bue withUra,.n ur,t.l. -wsiLVttnL asurr.e hav e been submitted from each of the municipalities that they W--ll. follw ba.iU f u; ac _y i ±±liUJ_ rL Ii malagei1aL PU±l±c±t!b (d) In the construction oI tne project, OWA will employ satis- factory consultants and, in the operation of transmissiort main, CWJA will utilize the services of management consultants. In addition, the municipalities will utilize the assistance of management cons-ultants to be provided by GwA; (ej mne Irbid Water Departnent will f-unction under satisfactory reguilations and have such functions and staff, separatiorn of accounts, and safeguar,ds against diversion of funds as are necessary for diligent and efficient operation and maintenance; (f) Water rates will be maintained so as to cover operating expenses, including taxes, if any, interest, maintenance, depreciation, debt repayments in excess of depreciation, normnal extensions and a reasonable part of future expans-ion. To 'this end, an initial rate of 60 fils per cu m is proposed for the bulk transmission sales with an operating ratio of less than 80 per cent within four years after construction; Irbid would establish an initial rate of 110 fils and ma:intain from the outset an operat:ing ratio of not more than 90 per cent; (g) The municipalities will. not Incur any long-term indebtedness in respect of their wat,er operation, unless net revenues -from water supply operations in. any 12 consecutive months in the preceding 15 exceed 1.5 times total projected debt service requirements; (h) The accounts of CWA and the municipalities in respect to the transmission main and the water supply system will be audited annually by an outside accountant; (i) All necessary action shall be taken to insure protection of the Druz and Sheshan springs against pumpage of water beyond overflow rates and safeguard such springs against damage by hydrological explorations and other acts; and () The right to use the pipeline and fixed assets of IPC remaining in place will be confirmed. to the satisfaction of the Association. 87. The project provides a suitable basis for an IDA credit of $920,000 to the Hashemite Kingdom of Jordan to be relent to the Central Water Authority at 4 per cent interest, a three-year grace period, and a twenty-year 4.morti zati on per ori September 16, 1963 AZRAQ-IRE31D WATER SUPPLY PROJECT JORDAN C)RGANIZATION OF CENTRAL WATER AlJTHORITY L BOARD OF I DIRE:CTC)TRRS FDIRECTOR GENERAL nFPHTY DlRECTOR (73E) (22 2') (38) 1(20) _(3_ (4!) _- (67) CONSTRUCTION DRIL.LINGD I PLANNING A IOVATENR HYDROLOGY ADMINISTRATION DIVISION DIVISION DIVISION L DIVISION DIVISION DIVISION DCIVISION I Operations cind Manogement Division I I_ _I ._ _ __ __. __. _ _ Irbidl Pipeline I > z x AUG USTI9'63 I BRID - 1155 R I ANNEX 2 IRBID MUNICIPALITY Organization Chart MAYOR Mun icipality Council I I I - Sanitory General Inspector Engineer Adrrm inistrotion Accountancy Water Dept. F-I I C h i f I f cee~~I H urveyor Cef C lrk Accountant Orgai zation IL I - ~~~~~~~~~~~~~~~~~~~~~~~~~~C h n rt Ir l r-- l l l ~~~~~~~~~below) LTwo Help Tv Cb Iow per s ITw Clerks Cashier _~~~~~~~~mT> I I rr#orc L I } I vv v v L lessenger NOTE; Two drivers aid two messengers are also employed to serve the various departments af the Municipality. IRBID WATER DEPARTMENT Organization Chart F MAYOR II~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Municipolity Director of A ccountoncy Water Department Meter S Distri bution Inspector Supuervsor Supervisor lII S E [ Mechanic MeIhanic Mechanic Mechanic [Ass t. Mech. As __Mech.] Ass t. Mech. A t. AUGUST 1963 IBRD- 1204 IRBID WATER DEPARTMENT ANNEX 3 Estimated Revenues & Expenditures (One Thousand Jordan Dinars) FISCAL YEARS A ¢ t u a 1 Budget '' 5" /.59 'I959/60 196,01/6-' - n1961f/ 96', 4n/A J. -L~~~~~~.7uLJJ. .JC. JL7.JZ.l %J.)J Total wat-er pro- duced (1,o00 M3) 427 427 427 427 427 Total Water Sales (1,000 M3) 222 261 258 280 300 % unaccounted for 48 39 40 34 30 AVera -water- reves per MN - fils 50 50 60 60 610 REVENUES Revenue from water rates 11.2 11.52 13.5 13.7 15.0 Meter Rega.istration Fees P25 .96 _27 .28 . Fees for Reconnection of service liles .06 ° eu I0 Water delivery charges (Mobile tanks) e45 .50 .53 .60 .7 Totadl Revenlues le" 12.24 14.4 14,7 15,9 EXPENDITJRES Fuel 3.15 3.2 3.3 3.45 3,5 OheminiLca .u5 a.5 .05 .05 .05 Maintenarnce .70 .70 .72 .80 1.50 Salaries including Cost of Living 2.46 2.47 3.15 3.40 3.70 Assumed Akdnin. Costs (Pqr% of salaries) 162 a62 =80 a85 *93 Direct Operating Costs 7.0 700 8.0 806 9,7 Interest n.a. o76 .84 n,a, 09 Assuled I)epreciation 2.2 268 3.4 4,o 4e6 Total Operating Costs 9*2 10,6 12.2 12,6 15.2 Plus Capital Improve- ment Exem nditnres 2:3 4.6 2=3 1,2 20 Less Assumed Administra- tion & Depreciation 208 3.4 4.2 4o91 Total Reported Em mend- itures 8,7 11.8 10.3 8.9 Surplus 3.3 .6 4.1 5.8 n.a. - not available. ANNEX 4 AZRAQ-IRBID WATER SUPPLY PROJECT CASE OF COMMUNICABLE DISEASES IN PROJECT AREA* Year Typhoid Paratyphoid Dysentery Total Population Cases per g** l~;OCOO population 1957 :L29 11 3415 485 249,997 10594 1958 1L97 3 21, 145-5 26l,h98 1.'9 1959 L97 17 253 467 270,1j,46 le73 1960 1L81 3 213 402 281;164 1e413 1961 272 1 95 368 258;452 1.02 *>Souarce: Statistical Year Book, Jordan GoVernm.ent Department of Statistics for Ajlun District. ***Note: A census was made in 1961. Population figures jC~.0 eJ Q~L U.LM"iIJV"J C&"UJtAOWPLJ.I Uv to the 1952 censu.s figure. AC.QVC OV fC4)MT"TTThIAnIDT DTOI°TAS TIN TnDI-D .J% J.. J.M .LA WX UU~JfJ.~i ~ iJ2, ±Liq .".L .UI Year Typhoid Paratyphoid Dysentery .LX)'.) JALTL .L - ~-. ±10 --1 CUases L1ea-huis Cases iiuauls Cases- Dea-uhsl 19.7) V85 1 - - 1 4 ,Inrl, n ss l / on ±y.I.D I) 1.. - 00 1960 82 14 3 - 24 J 1961 132 14 - - 5 4 1962 * 40 4 5 _ 48 - ' 1962 figures are only to the end of August. ANNEX 5 AZRAQ-IRBID WATER SUPPLY PROJECT Domestic Water Consumption Liters per Ti +.trs cqn i ta per Total average Total metered plus per capita day metered mIetered w ate, rlAM n l-. r tl iipl l g.lar Year Population pe:r day cu m day (7 mths,) cu m metered (7 months) IRBID CITY 1l959/60 28,100 586 789 21 2?8 1960/61 30,300 598 801 20 :26 1L961/62 32,500 646 849 20 26 IRBID - REFUGEES 1959/60 10o,00 74 138 7.1 :13 1L960/61 11.300 62 126 5.5 11 1961/62 12,300 54 118 h.4 9.6 IiAFRAO AND RAI'TFA (1961/62) Yearly consumption Population cu m Liters/capita/day Ramtha 10,791 29,000 8 E4afraci 9,h99 102,000 29 AN(EX 6 AZRAQ-IRBID WATER SUPPLY PROJECT Population Growth Estimates of All Areas Census Area 1961 1962/63 1963/64 1964/65 1969/70 1974/75 Irbid TomTn 32,500 33,800 35,200 36,600 44,500 54,200 Irbid Refugees 12;300 12;.8I0 13.300 13,800 16,800 20,00 Rarntha 10;791 11.0r,0 11;300 11.600 13.000 l;.600 4lafraq 9n;499 9.73C) 1n;00 10;200 11;I00 12.900 HUSn 3,728 3,820 3,900 4,000 4,500 5,000 7iillarges 'Test of Irbid (19) 19,919 20,48CI 20000C 21,400 24,000 27,000 VTillages west of Husn (14) 7,825 r8 R 8,200 o E8r,4 -I0 10,60 IT;11 --- ---4- 0 p Husn (13) 3,315 3,hoc 3,500 3,600 4,000 1,500 Total 99,877 103,090 106,300 109,600 127,800 1L9,300 ANNEX '7 AZRAQ-IRBID WATER SUPPLY PROJECT Estimated per capita consumption per day Average litem,per capita Average daily rate of C:ity per day increase per yezr 1961 1964 Irbid 26 40 2 liters Irbid Refu.gees 11 20 1 liter Husn n.a. 20 1 liter Ramth.a 7 20 1 liter Mafraq 29 30 1 liter AZRAQ WATER IPIPELINE DEMA.f TiBkLE 1000 cu mr/Year Needed Ra,ntha Needed Mafraq Desert Fiscal Year Irbid. Irbid Irom Tot Flamtha FroTn Tjal Husn Pipeline Watering Pipeline 4aa,h31 Cr-s 3tion Availa'bil.'j y pelinm 1 Availability Pipeline A iirbase Demand Stations Producrion 1961±/65 847 365 482 120 73 47 157 l1± 150 877 50 927 1965;/66 913 365 548 130 73 57 165 1±5 150 965 50 1,015 1966/67 982 365 617 138 73 65 174 48 150 L,054 50 1,104 1967/68 1,055 365 690 147 73 74 181 51 150 1,1L46 50 1,196 1963/69 1,129 365 764 157 73 814 188 5k 150 1,240 50 1,290 1969/70 1,206 365 841 168 73 95 197 60 150 1,343 50 1,393 1970/71 1,306 365 941 1.80 73 107 202 62 150 1.±462 50 1,512 1971/72 1,411 365 1,o46 188 73 115 210 67 150 1,588 5o 1,638 1972/73 1,521 365 1,156 200 73 127 218 71 150 1,722 50 1,772 1973/74 1,639 365 1,274 212 73 139 227 75 150 1,865 50 1,91.5 1974/75 1,7614 365 1,399 228 73 155 236 80 150 2,020 50 2,070 i/ Rantha, Mafratq, and Husn total includes 10% other than domestic and :20% system loss. PRiD?OR-ED CONSTRUCTION SCHEDlULE AZRAQ-TREIIlD WATER SIJPPLY FRO.jECT OLt. Nc. Dec. Jar. Feb. Ma. !,~p Mav Ju jne ,y Aug. Seet; rct. Nev 1ee jnc Fah M.r pr. My .Jl1fh *!an. 62 62 62 63 63 63 63 63 63 63 63 63 63 63 63 614 64 64 61i 614 614 65 Pipelines-Transmission (a) husn-Irbid 12' S … -I (b) Azraq-I.P.C. Line L6" s …-------, -------- -…-------I Cleaning 16" Line A- ------S--------------------I-----------------------------I Pwnps ard engines C- --. -D--------I PipelinesDistribution C----O---- ------- - I Mechanical Equipmuent C------O------------------------D - I Popp houses and swnps C- ------- - ---------------I Reservoirs s----------------------I Revamping Presernt Pwnps Ct------0-------------D---------- I Engineering, Design1 and Pipeline Construction Sumar7ision A-----------------------------------------------------------I Irbid A--- ---------------------------------------------------------------I A-------------------------C-------A------------------------------I Rarmtha, Mafraq and Hsisn S - Start of construaction by force account. A - Award of Contract. - -Order of' Material. C - Completion of Design. D - Delivery of Material I - Final Installation or Completion. '0 Ah1N4EX 10 Page 1 AZRAQ-IRBID WATER SUPPLY PROJECT Project Costs Azraq-Irbi.d 'Transmission Main Foreign Local Total JD JD JD Pumzps and prime movers 26,000 - 26,0co Pnmm) house rent-vor'.-iO ~ 1,000 nolnO(n Pump house suction tank - 2,000 2,0CO Chiorinators and master meters 2,000 - 2,000 Valves and manifolds 1,000 2,000 3,0CO Auxiliary pumping, pipes from Sheshan 6,000 9,000 15,000 Local- transport - I _1,0 100 nc w vv .^~, -Y - _, _, Related civil. works at Azraq - 5,ooo 5,000 Subtotal collection works and nimnina n st+tions 35 ° 20nn00 55noC)O Cutting, removal transport of 14 im 16-inch line - 21,000 2JC)UUU Cleaning same 5,000 6,000 11,000 32 km Druz-junction line - 39,000 39,000 Uleaniing 10u 0L Lii 'i-UU sU_-J' 1 ,0, U0( Seven desert wateringt stations 3,000 )4,000 7,000 Husn-Irbid 12-inch line - 10,000 .10,000 i-awara-Ramthal 6-inch li,e1800 2,000 . 20000 Bevelling, welding, placing catnodic protection 8 ,000 2,000 . . 10,0 00 Steel reservoir - 7,000 7,000 Valves and meters 1,000 1,000 2,000 Local transportation - _ om 1.000 Subtotal pipeline and reservoir 50,000 98,000 148,000 Contingencies 18% 15,300 21,200 36,500 Engineering services 8% 19,200 - 1 i9,200 Management services 10,000 _ 10,0(0 Mobile equipment and spares 5,000 - 5,00o IrT'rlir;a onni i-2l _ 1), -Rnn IO),.nn Interest during construction - 5S500 5,500 Total Transmission lain 134,500 159,500 29h,000 ANTEX 10 Page 2 Irbid Distribution Foreign Local Total JD JD JD Distribution system 70.000 22.000 92.000 Revamp of existing p-amp station 3,000 1,000 4,9000 Subtotal distribution cost 73,000 23,000 96,ooo Contingencies 18% 13,100 k,100 17,200 Engineering services 8% 9,100 - 9,,100 Management services 10,000 _ 10,000 Mobile equipment and spares 5,000 - 5, 000 Interest during construction - 6,700 6,700 Total Irbid Distribution 110,200 33,800 144,000 Mafraq. Ramtha. and Husn Total Distribution System 40,000 15,000 55,000 Total 'Project Costs 284,700 208,300 493,o(Oo AZRAQ-IRBII) TRANSMISSION MALIN PRO-FORMA INCOME STATEMENT (thousands of Jordanian Dinars) Fiscal Year PMarch 31 1964/65 1965/66 1966/67 1967/68 1968/69 1969/70 1970/71 1971/72 15972/73 1 Q7I/7), 1Q7L/7< Total Water Pumped (1,00o mJ 927 1,015 1,104 1,:L96 1,290 1,393 1,512 1,638 1,772 :L,915 2,070 Total Water Sold (1,0)0 m3) 877 965 1,05 1,:Lb6 1,240 1,31±3 1,1±62 1,588 1,722 1,865 2,020 Avie. Water Revenues (Fils/m3) 60 60 60 60 60 60 60 60 60 60 60 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - In Thousand Jorclanian Dinars Revenues -7ater Sales 52.6 57.9 63.2 68.8 714.4 80.6 87.7 95.3 103.3 111.9 121.2 Operating Cost SaLaries 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 8.7 8.7 Pumping Costs 10.4 11.4± 12.4± 13.5 14.h 15.6 :16.9 18.3 19.8 21.4 23.2 Chlorine 0.5 0.5 0.6 0.6 0.7 0.7 0.8 0.9 0.9 1.0 1.1 System Maintenance 4L. 4.0 kL.o i4.0 L.o 4.0 4.0 4.o 4.0 1±.0 4.o Cathodic Projection 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Administrative & General 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 2.2 2.2 Contingenc ies 2.5 2.6 2'.7 2.8 2.9 n3.1 3.2 h I, O C 3 9 1 I Total Operating Costs 27.7 28.8 30.0 3:L.2 32.3 33.7 35.2 36.9 38.5 43.2 145.3 Other Rcpenses Depreciation 21.8 21.8 21.8 2:1.8 21.8 21.8 :21.8 21.8 21.8 21.8 21.8 Interest - IDA 7.8 7.8 7.8 7.6 7.4 7.1 6.8 6.5 6.2 5.9 5.5 Interiest - Local 3.9 3.9 31.4 2.9 2.5 2.0 1.5 1.0 0.5 - - Total Other ]Epenses 33.5 33.5 33.0 32.3 31.7 10.9 30.1 29.3 28.5 27.7 27.3 Total Cost and Expenses 61.2 62.3 63.o 63.5 6h.o 64.6 65.3 66.2 67.0 70.9 72.6 Net Income (8.6) (4.14) C).2 5.3 10.41 16.0 :22.Ll 29.1 36.3 41.0 48.6 Net Income before Interest 3.1 7.3 11.4 15.8 20.3 25.1 30.7 36.6 1h3.0 L16.9 54.1 Average Net Fixed Assets 860 838 816 795 773 751 730 707 686 6614 642 Return on Net Fixed Assets 0.4% 0.9% 1±.4% 2.0% 2.6% 3.3% 4.2% 5.2% 6.3% 7.1,% 8.4 Average Net FPixed Assets exc'Luding IPC Pipeline 276 269 2,62 255 248 211 231 227 220 213 206 Return on Net Fixed Assets 1.1% 2.7% L.8% 6.L% 8.2% 10.4% 13.1% 16.1% 19.5% 22.0% 26.3% uiatio orl Cost; and Depreciation to Revenues 9h% 87% 82% 77% 73% 69% 65% 62% 581 58% 55% 1z AZRAQ-IRBID TRANSMISSION MAIM Sources Lnd Applications of Funds kthousands of Jordanian lfinarsF Constru ction Period: Fiscal Year March 31 -_196]/64 196L/65 1965/66 1966/67 1967/68 ]968/69 1969/70 1970/71 1971/72 15972/73 1973/74 1974/75 Sources of Funds Net TncI-e- before Interest - 3.1 7. 11.4 15.8 20.3 25.1 30.7 36.6 13.0 b6.9 51.1 Depreciation 21.8 21.8 21.8 21.8 21.8 21.8 21.8 21.8 21.8 21.8 2L.8 Total from Operations . 29.1 33.2 37.6 ls2.1 I'I 5. i 6E7 7'7i IDA - Credit 196,,0 - - Local Loan 98,,0 Total Loans 297;O - - - - Total Sources 294,,o 24.9 29.1 33.2 37.6 42.1 46.9 52.5 58.4 6h.8 68.7 75.9 Hlication of Funds, Total Foreign Cost 134.5 - - Total Local Cost 139,,2 Tot1ial Project Investment 7j7 - - - - - - - _ _ 'Working Capital (including cash) 1,,8 - - - - - - - - - - _ Dlebt Service: Amortization IDA - - - 3.3 6.7 7.0 7.2 7.5 7.8 8.2 8.5 8.8 Interest IDA 3,,9 7.8 7.l8 7.6 7.4 7.1 6.8 6.5 6.2 5.9 5.5 5.2 Amortization Local Loan - 12.3 12.2 12.3 12.2 1L2.3 12.2 12.3 12.2 - - Interest Local Loan 1.,6 3.9 3.9 3.4 2.9 2.5 2.0 1.5 1.0 0.5 Total Debt Service § 77 11.7 72 5 29.3 277 27 .3 M I 5 Total Applications 294,.O 11.7 24.0 26.5 29.3 28.8 28.3 27.7 27.3 26.8 l4.o 11.0 Changes in Cash Position 13.2 5.L 6.7 8.3 13.3 L8.6 24.8 31.1 38.0 cL.4 61.9 Cash End Period - 13.2 18.:3 25.0 33.3 h6.6 65.2 90.0 121.1 159.1 213.5 275.4 Debt Service Coverage 2.13:1 1.21:1 1.25:1 1.28:1 1.46::1 1.66:1 1.90:1 2.14:1 2.42:1 L..90:1 5.42:1 I> IRBID DISTRIIBUTION SYST'E Pro Forma Income Statements Total Construction Fiscal Year Ending March 31 1964/65 Period 1965/66 1966/6f7 19676 1968/69 1969/7 I 197D/ 71 17/2LIL,2 1~27 19-73/74 947 Total Water Produced, Exist-ing Wells jooorm3 365 365 -365 365 365 365 365 365 36; 365 65 365 Total Water Purchased, PlpeIinea 10C0Dm3 - 482 - 5'48 617 690 764 841 941 1,046~ 1,156 1, 276 1,399 Total Water Produced 365 847 - 913 982 1I,055 1,129 1,206 1,306 1,411 1,521 1,639 1,764 % UJnaccoointed F7or 25 25 - 24 23 22 21 20 20 20 20 20 20 Total Sales 273 635 - 694 756 823 892 965 1,0345 1,1293 1,217 1,311 1,411 Average Water Rlate - fila/in3 60 110 - 110 110 110 110 110 110 110 110 110 110 ----(T~~~~~~~~~~~~'n thouasand's olfju-d4-ilan Dinars) --…-- Revenues WateBr Sales 16.4 619,9 86.3 76.3 83.2 90.5 98.1 106.2 115.0 124.2 133.9 144.2 155.2 Meter & Connection Fees &, Hatuled Water 1.0 0.2 1.2 0.4 0.4 0).4 0.41 0.4 0.4 0.4 _0-5 0.1 0-5 Total Revenues 17.4 70. 1 87.5 76.7 83.6 90.9 98.. 106.6 115.4 124.6 1'34.4 1414.7 155.7 OperatinR Costs124 2. Salaries 3.7 11.5 15.2 11.5 11.5 11.5 1 1.51 24 1. 12.4 12.4 12.4 12.4 Fuel 3.0 3.0 6.0 3.0 3.0 :3.0 3.0 3.0 3.0 3.0 3.0 3.,0 3.0 Maintenance 1.5 '4.7 6.2 5.0 5.3 5.6 5.9 6.3 6.6 6.9 7.2 7(. 5 7.9 Chlorine 0.2 0.2 0.4 0.2 0.2 0.2 0. 2 0.2 0.2 0.2 0.2 0,.2 0.2 Administration 0.9 2.9 3.8 2.9 2.9 ~ 2. 9 2.9~ 2.9 3.1 3.1 3.1 3.,1 3.1 Contingencies ,0.9 2.2 3.1 2.3 2.3 2.3 2. 4 2A5 2; 2.6 2. 6 2.6 2.7 CuaL or Pipeline Wvater- 60 fi,Ls,'m 2b. 2b.92 32.9 37.0 41.8 45-1 50.5 56-5 62.7 659.4 76.4 83.9 Total Operating Costs 10z2 53.4 63.6 57.8 62.2 67.3 71.-7 77.8 84.3 90.0 937.9 105.,2 113.2 Other Expenses Depreciation - Old Facilities 6.1 6.1 12.2 6.1 6.1 6.1 6.1i 6.1 6.1 6.1 6.1 6.1 6.1 Depreciation - 'New Facilities - - - 3.6 3.6 3.6 3.59 [4.2 4i.6 5.0 5.4~ 5.9 6.14 Interest - IDA -- -3.8 3.8 3.7 3.6 3.-5 ",.3 3.2 3.0 2.9 2.7 Interest - Other New Loan -- - 1.9 1.7 1.4 1 .2 1.0 0.7 0.5 0.2 - - Interest - Existing Lo)ans 0.6 0.4 1.10 0.3 0.2 - - - - - - -- Total Other Expenses 6.7 6.5 13.2 15.7 15.4 lJs.8 314.ki 114.8 114.7 114.8 :L14.7 114.9q 15.2 Total Costs and Expenses 16-2 76.8 73- 776 82.1 86.:3 92.6 99*O 105.7. 112.6 120.1 128.14 Net Income 0.5 10.2 10,.7 3.2 6.0 8.8 1.2.0 114.0 16.4 18.9 21.5 241.6 27.3 Add Back Interest 0.6 0.4 - 6.o 5.7 5.1 4. 8 4.5 4. 0 3:I-2 292. Net Income Before Interest 1.1 1.06 - 9.2 11.7 1:3.9 16.8 18.5 20.14 22. 25.0 27.5 30.0 Average Net Fixed Assets 201 195 - 331 321 318 321 325 -330 336, 3142 350 359 Return on Net Fixed Assets 0.5%; 5.4% - 2.8% 3. 6% 41.4% 5.2% 5.7% 6.2% 6.7% 7.3% 7.8% 8.14% Ratio of Operating Costs (Lncluding94 m86 858Y3% 12 i 3%81 % depreciation) to Total Wdater Revenue 94 8% - 8 6 5 3 3 2 1 1 1 1 IRBID DISTRI.U1TION SYSTEM Sources and Acplication of Funds (Tn thoulsands ef Jordanian Dinars Total Construction Fiscal Year Ezding Narch 31 1963/64 1964/65 Period 1965/66 19&/67/ 1967/68 1968/69 1969,/70 1970/71 1971/72 1972/73 1973/74 19714/75 Scources o FuAnds Net Incozme Before Interest 1.1 Lo.6 11.7 9.2 Li ,7 13.9 16.8 18.5 20.4 22.6 25.0 27.5 30.,0 Depreciation 6.1 6.1 12.2 9.7 9,,7 9.7 10.0 10.3 10.7 11.1 11.5 L2.0 12,,5 Total Funds -eLerated 7.2 :L6.7 23.9 18.9 21,4 23.6 26.8 28.3 31.1 331.7 36.5 39.5 42,.5 Ne%r !4eter Deposlit 0.4 0.4 0.8 0.4 0o.4 0.4 0.4 0.14 0.4 0.4 0.5 0,5 0.5 IIAL Credit 86.7 9.3 96.0 - - Local LoaLn 10.2 37.8 h8.0 - - - - - - - - - - Total Loans 96.9 147.1 314.0 - - - Total Sourcets 10C4.5 614.2 168.7 19.3 21,8 2A4.0 27.2 29.2 31.5 34.1 37.C 40.0 143.0 4:ppication o ' Funds Totl1 reai Costs 85.0 25.2 1.0. 2 - - - - _ - _ _ Total Local Cost 10.0 17.1 27.1 Toltal Project Investments 95.0 L42.3 137.3 - - - -.- - Extensiorns and Improvements - - - 12.5 13.7 14.8 16.o 17.3 18.7 20.2 21.7 Additions to Working Capital - - - 1.0 1.6 1.7 1.8 1.9 2.0 2.2 2.3 2.4 2.5 Interest - IDLA Credit, 1.7 3.7 5.4 3.8 3,8 3.7 3.6 3.5 3.3 3.2 3.0 2.9 2.7 Interest - New Local Loan 0.2 1.1 1.3 1.9 1.7 1.4 1.2 1.0 0.7 (.5 0.2 Interest - Exisiting Loan o.6 0.4 1.0 0.3 0,,2 - - - - - - - Amortization - MA Credit - - - - 1,6 3.3 3.14 3.5 3.7 :,.8 4.0 4.2 4.3 Amortization - New Local Loan - - - 6.o 6,.0 6.0 6.0 6.0 6.o 6.0 6.o - - Aortization - Existing Loans 3.6 3.6 7.2 3.6 2.,9 o.6 - - - - - - Total Debt Service 6.1 _ 8.8 114.9 15.6 16.2 15.0 124.2 1L4.0 13.7 13.5 13.2 7.1 7.0 Total Applications 101.1 51.1 1'2.2 22.6 17,8 29.2 29.7 30.7 31-7 3-°) 34.2 29.7 3L- COhmges in Cassh Position 3.4 13.1 16.5 (3.3) 4.0 (5.2) (2.5) (1.5) (0,2) :L.l 2.8 10.3 11.7 Cash End Period 3,4 L6.5 16.5 13.2 17.2 12.0 9.5 8.0 7.8 8.9 11.7' 22.0 33.7 Debt Service Coverage 1.19:1 1.90:1 - 1.21:1 1.32:1 L.57:1 1.89:1 2.06:1 2.27:1 2.50:1 2.77:1 5.56:1 6.07:1 ANNEX '_ AZRAQ-IRBID WATER SUPPLY PROJECT ASSUMPTIONS FOR FINANCIAL STATEIENTS Azraq - Irbid Transmission Main and Irbid Distribution System 1. The IDA credit will be relent at four per cent interest, a three- year grace period, and amortizatiorL in 40 equal semi-annual installments. 2. Local loan funds will be made available at four per cent interest, a two-year grace period, and with eight equal annual capital repayments. 3. Salary and rnaintenance cc.sts are CWA estimates. 4. Chlorine costs are based on a dosage of 2 milligrams per liter andr a chlIrine eot+. nf JT 265 repe ton 5. nnad General is estimnated at 25 per cent of salJ2- ries; contingencies at 10 per cent of other costs. 6. Depreciation of old facilities has been calculated at 3 per cent, ne.v facili-+e at 2pe cent. Azraq-Irbid Transmission Main Only 1. The amounts of water pumped and water sold are taken from c. UIP-,L16 aLU -)UVJ cU.1m1. JpeUL hou1 L A-~ toV requi 2., HP hours per cu.m. with a 74 per cent overall efficiency. Fuel consumption equals 200 gns. per HiP hour at JD 22.5 per ton; lubrican, at 2.-4 gins. per HP hours at JD 0.15 per kilogram. Total cost 11.2 fils per cu.m. pumped. 3. For purposes of depreciation and the calculation of net fixed assets, JD 592,000 has been added to project costs to represent the value of 148 kilometers of petroleum pipeline had it been sold for salvage ratiher tliari used in UtUs project. It is estimated t wiat it will cost ar average of JD 0.7 per meter to rencivate and use and that it has a salvage value of' JD 4 per meter. The 12-inch pipe which wiould have been required in lieu, would have cost JD 8 per meter installed. Irbid Distribution System Only 1. The fuel costs are based on present experience; chlorine costs apply orly to water locally produced. 2. Extension and improvements are estimated at 15 per cent of the previous years total water revenues beginning in 1967/68. 3. Extensions and improvements are added for depreciation purposes the year after their installation. 4. Working capital additions are estimated at 25 per cent of the preceding year's increase in total revenue, except for the first year after construction when 10 per cent of the preceding year's total sales were taken. 7--~~~~~~~~~~~~~~~~~~~~~~~~~7 SEIDUP .. * . . DOGAR 2 > ' -- * . , ZABDAo-'%4, HOFA( N 'H IRBICD (El. 620) I' IRBIDE) VMrMA *\ °7 \) . ' J_JMHA rL LJ °A,r\° A_ § IR8lDIEI.620) . KUFRAN0 NKUFR YUBA AHO > _,v.TaEBlYA0%A QDEAIRESSIMA N N 'b * '- - JENIN SAMU M BEIT YAFA\4WNAT FAH ?E [)UN) 5 < 8U^^tt$" *- * ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~JUHFIYAH H)F< TABYA"- DE'IREYSSIMA~ < HII~~~~~~~~~~~~~~~MNASIRAO US EL C A AREA OEL RAFaG 54~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~. W 0SMUN4;I^ M'NG AUA;SE,N SBY ' ,,_ oAjlIn u AM EJL J'~ C)AB OEL AUFTEIN . ........,, . E O A;ITIn \ O ~~~~~~~~~~~~~oDATYANA -N E6 0 R_AR AM TUE fl F zurqoO HASHEMYlITE KINGDOV OF SJORDAN E AZRAQ - IRE31D WATDER SUP'PLY PROJE CT 3M MAN * lot r,-EpEion.R Iolar _ . P oVEYoTYld EY:pEhr.iA A .. F.l....c pip. li...\ g PYnOPTSOd 2000 M3 -Y'ACEVOEi fEl Azroq D 5 10 5stj0 raose les-rtxe A jILnn (JSH VIT rKTNGOM VOF JORANE.i3SYEEV AZFJAQUNIREE1D WATER1963PLYPT RD-35R JUNE;963 1 D7 3'R \ :sAM s f t s > ' X tAb A -lLX :~~~~~~~~~~~~~~~~6 ' S~n K /~~~~~~~~~~~~~~~~~~~~~~~~ -eie ;teu n9 \t Q s 4k_Q e | t /~~~~~~~~~~~~~~~~~~~~~~~~ n 6'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ WATER~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -ITIUII -YTMIBD - \ - ----- - - ----- 6 MAY 1963BRD - 6 60RA 6~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ VlExsigssenVle > N~~~~~~~~~~~. ' %~~I Ne ei fo, uI M4Y 1963 BRD-1 6OR~~~~~~~~~. 6 6