Document of The World Bank Report No. 20990 - COM PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR8.8. MILLION (US$11.4 MILLION EQUIVALENT) TO THE ISLAMIC FEDERAL REPUBLIC OF THE COMOROS FOR AN INFRASTRUCTURE, WATER AND ENVIRONMENT PROJECT FEBRUARY 2,2001 AFTTR AFC08 Africa Regional Office CURRENCY EQUIVALENTS (Exchange Rate Effective 12/31/00) SDR 1.00 = US$1.3047 Currency Unit = Comorian franc (KMF) US$1.00 = KMF 550 KMF 1.00 = US$0.001818 FISCAL YEAR January 1-December 31 SYSTEM OF WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet I hectare (ha) 2.47 acres 1 kilometer (km) = 0.625 miles I liter 0.220 imperial gallons 1 cubic meter = 220 imperial gallons Vice President: Callisto Madavo Country Director: Hafez M. H. Ghanem Sector Manager: Maryvonne Plessis-Fraissard Team Leader: Abdelmoula Ghzala ABBREVIATIONS AND ACRONYMS AFD Agence Fran9aise de Developpement CAS country assistance strategy CEE Comorienne de l'Eau et de l'Electricite DERM Direction de l'Energie et de Ressources Min6rales (Directorate of Energy and Mining) DGI Direction Generale des Infrastructures (General Directorate of Infrastructure) DGTP Direction Generale des Travaux Publics (Directorate General of Public Works) DRTP Direction Regionale des Travaux Publics (Regional Directorate of Public Works) DRI Direction Regionale des Infrastructures (Regional Directorate of Infrastructure) DU Direction de l'Urbanisme (Directorate of Urban Affairs) EDF European Development Fund EEDC Eau et Electricite des Comores EU European Union FC French Cooperation (France) IDA International Development Association HDM Highway Design Model (World Bank) JICA Japan International Cooperation Agency MEEU Ministere de l'Equipement, de l'Energie et de l'Urbanisme NEAP national environmental action plan NGO non-governmental organization PPF Project Preparation Facility SOE statements of expenses UNDP United Nations Development Program UNICEF United Nations Children's Fund UNCDF United Nations Capital Development Fund -R ELOPA14. OFFICIAL USE ONLY --- -. -, IDA/R2001 -0020/1 r iDAS . _ February 8, 2001 Streamlined Procedure For meeting of Board: Thursday, March 1, 2001 FROM: The Acting Secretary COMOROS: Infrastructure, Water and Environment Project Project Appraisal Document Attached is the Project Appraisal Document (20990-COM) regarding a proposed Infrastructure, Water and Environment credit to the Islamic Federal Republic of Comoros (IDA/R2001-20). Also attached is the English translation of pages 65 - 69 (Annex 4-B Appendix). This project will be taken up at a meeting of the Executive Directors on Thursday, March 1, 2001 under the Streamlined Procedure. Distribution: Executive Directors and Alternates President Bank Group Senior Management Vice Presidents, Bank, IFC and MIGA Directors and Department Heads, Bank, IFC and MIGA This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Annex 4-B Appendix Description of Water Systems in the Urban Centers Covered by the Project 1. Anjouan Moutsnioudou-Mirontsi-Page This urban center - the main one on the island - will have 43,000 inhabitants in 2005. It is a commercial center sustained by a port and the presence of a large market. Water supply problems in the metropolitan area include insufficient water in catchments. water quality, and the condition of the water supply system. 1. Water resources Surface water is supplied to the urban center following minimal treatment at the two catchment areas. The Moutsamoudou catchment (+197 meters) consists of a concrete sill and an inlet channel, the stability of which is threatened by scouring. The intake water is of mediocre quality because of the presence of suspended solids. At the second catchment, on Mro Hougouni (+382 meters), water flow is relatively weak (low-water flow under 15 liters/second), and problems include silting in the settling tank and considerable water loss from infiltration because the bottom is not watertight. The water is easily polluted because access to the two catchments and the surrounding areas is completely open. Water quality, particularly during flood periods. is very poor, resulting in waterborne diseases such as typhoid and viral hepatitis. Expected water requirements to the year 2005 far exceed available intake water. 2. Treatment Screens and sandcatchers are used at both catchments. None of the chlorination units located downstream from the water storage units are in use. 3. Water supplv system The old system (built in the 1950s) transporting water from the first catchment (Mro Moutsamoudou) consists of two offtake pipes. One is made of galvanized steel (0102/114 mm). The other is made of iron (0200 mm), with a continuing section of iron (0150 and 100 mm), terminating in a steel pipe (080mm). The second branch line from this catchment is made of steel and is equipped with a meter that is not in use. It continues with a 0150 section to the storage reservoir, and then continues with a 0100 pipe. The network (also equipped with a meter that is not being used) transporting water from the second catchment to the storage reservoir is made of iron (0150mm). It continues with a 0100 pipe. 4. Storage Storage is provided for the three pressure stages by ground-level or partially buried concrete reservoirs. The upper stage (+292 m) consists of two reservoirs, an old one (25 m3) and a new one (m3). The old reservoir is in poor condition and is leaking. The valve room in the new reservoir no longer has any doors, and the pipe joints leak. The outflow and inflow meters are not in use. The chlorination unit is not equipped. The middle stage has a 500-m3 reservoir and has the same defects as the one just described. The low stage consists of a "new" reservoir (820 m3). +98 meters, and an old one (500 mi3), +75 meters. It is in extremely poor condition. 5. Distribution The principal network consists of galvanized steel pipes having a flow rate of 0150-050 meters per minute and of asbestos-cement pipes with a flow rate of 060 meters per minute. Certain configurations have a diameter of 40-150 mm, all of them made of galvanized steel with the exception of 060-mm segments in asbestos cement. User connections are made of galvanized steel with a flow rate of 021/26 meters per minute. Outlying districts are equipped with standpipes. There is no water control or metering system in place. The condition of the pipes and the conditions under which water is distributed result in considerable leakage and waste. 6. The project * Optimize the quantity of water collected by improving the condition of weirs and add another catchment source; Repair and upgrade water mains and distribution lines; * Install meters on user connections and upgrade standpipes; * Improve water quality through physical and chemical treatment; * Rehabilitate and increase the number of storage units (reservoirs): and * Establish two pressure stages for the entire urban center. Ouani The Ouani urban center supplies water to the neighboring centers of Barakani and Gnatranga. In 2005 the population served will number some 21,000 inhabitants. The existing system does not provide sufficient water to the area. I. Water resources Water supplied from a catchment on the Patsv river (+230 meters) is expected to provide 25 m3 per hectare, which is definitely inadequate (the equivalent of a maximum of 33 liters/day/person). 2. Treatment There is no water treatment system whatsoever. 3. Water supplv system 2 The catchment has two outflow pipes dating from 1962 (0102/114 meters per minute). Both are in poor condition, and there is considerable waste because the pipes are highly corroded and carrying capacity is limited by solid deposits. 4. Storage Water is stored in two reservoirs, one holding 160 m3 serving the town of Ouani, and the other, with a capacity of 100 m3. serving the two neighboring centers. Both were installed in 1962. They are in very poor condition and leak in various places along the walls. 5. Distribution The lines also back to 1962, and cover virtually the entire city center. The system consists of a network of galvanized steel pipes serving approximately 65 percent of the population. The pipes were placed haphazardly without taking the tertiary network of the urban center into account. They are in poor condition because of corrosion and adverse climatic effects (some are partly above ground), and they are silting up. 6. The project * Installation of a physical and chemical water treatment unit; and * Installation of a system comprising main lines and secondary and tertiary networks. D)omoni and Ngand:alM The population of this urban center - one of the oldest in the Comoros - is expected to reach some 25,000 inhabitants in 2005. It is a government and trading center comprising a number of small industries and many ylang-ylang distilleries. 1. Water resources The town currently receives its water from three sources: the Mro Adjaho river (very weak flow), the Mro Jomani river, and an underground spring at Papani. The Adjaho water intake runs directly from the river into a basin located behind a weir. All the works are in poor condition. Water intake on Mro Jomani involves three catchments capable of supplying 120 liters/second during low-water periods. Flow is restricted because a portion of the distribution network is elevated. At Papani. which provides water only to Domoni Sud, the low-water flow is approximately 150 liters/second. Total resources are inadequate because of the poor condition of the catchments (considerable amounts of water are lost) and low flow rates from the sources. 2. Treatment The water transported to the urban center does not undergo any treatment and is delivered raw. 3 3. Water supplv svstem The system, which transports water from Adjaho, consists of a galvanized steel 1.200-meter line (0150 meters per minute). 4. Storage Seven reservoirs of varying capacity provide storage (one holds 300 i3, two hold 50 m3, one holds 150 m3. one holds 100 m3. and two hold 50 m3). The 300- m3 reservoir was repaired in 1997 and is in relatively good condition, but the others are in very poor condition (for example, because of cracks). 5. Distribution Water is generally distributed directly to users via private connections. Almost 90 percent of households have such connections. 6. The proiect * Repair of existing catchments; * Elimination of the high point along the main line; * Repair and replacement of defective lines; * Development of a new catchment on Mro Goucouni; * Installation of a water main; R Repairs to seven reservoirs; and * Rehabilitation and extension of the distribution network and installation of standpipes. 2. Moheli Fomboni The island's capital and the two adjoining urban centers, Bandar Salama and Djoiezi, will together have some 18,000 inhabitants by 2005. The area is served by a water supply system built some time around the 1960s. 1. Water resources The catchment on the M'Rochiconi river is in poor condition, and consists of a temporary channel. 2. Treatment Water is supplied as raw water and does not undergo any treatment. 3. Water supplv system 4 The svstem is in poor condition. Many high points need to be eliminated and defective segments (mainly the result of corrosion) need to be replaced. 4. Storage Water is stored in a single poorly equipped reservoir. For example, neither inflow nor outflow is regulated. 5. Distribution Water is distributed through pipes made of various materials, which should be standardized. There is considerable leakage from defective sections. Many sections are above ground. There are no individual meters. 6.. The proiect - Development of a new catchment on M'Rochiconi; - Replacement of the supply line; - Equipment of the reservoir (including valves, a meter, and accessories); * Construction of a new storage unit (500 m3); and - Rehabilitation of the existing distribution network and development of a new network. 5 Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project CONTENTS A: Project Development Objective .....................................................2 Al. Project development objectives .....................................................2 A2. Key performance indicators ....................................................2 B: Strategic Context .....................................................2 B 1. Sector-related country assistance strategy (CAS) goal supported by the project .....................................................2 B2. Main sector issues and government strategy .....................................................3 B3. Sector issues to be addressed by the project and strategic choices .................... 4 C: Project Description Summary ....................................................5 Cl. Project components ....................................................5 C2. Key policy and institutional reforms supported by the project ............. .............6 C3. Benefits and target population .....................................................6 C4. Institutional and implementation arrangements .................................................6 D: Project Rationale .....................................................8 DI. Project alternatives considered and reasons for rejection ...................................8 D2. Major related projects financed by the Bank and/or other development agencies .....................................................9 D3. Lessons learned and reflected in the project design ...........................................9 D4. Indications of borrower commitment and ownership ....................................... 10 D5. Value added of Bank support in this project .................................................... 10 E: Summary Project Analysis .................................................... 11 El. Economic .................................................... 11 E2. Financial .................................................... 11 E3. Technical ..................................................... 12 E4. Institutional .................................................... 12 E5. Environmental .................................................... 12 E6. Social 16 E7. Safeguard policies .................................................... 18 F: Sustainability and Risks ..................................................... 18 Fl . Sustainability .................................................... 18 F2. Critical risks .................................................... 19 F3. Possible controversial aspects .................. .................................. 20 H: Readiness for Implementation .......................................... 21 I: Compliance with Bank Policies .......................................... 21 Annexes Annex 1: Project Design Summary .23 Annex 2: Project Description .29 Annex 3: Estimated Project Costs .42 Annex 4: Cost Benefit Analysis Summary .47 Annex 5: Financial Analysis of the Road Maintenance Fund .70 Annex 6: Procurement and Disbursement Arrangements .87 Annex 7: Project Processing Budget and Schedule .100 Annex 8: Documents in the Project File .101 Annex 9: Statement of Loans and Credits .102 Annex 10: Comoros: Country at a Glance .......................................... 103 Annex 11: Environmental Assessment Executive Summary ....................................... 106 Maps IBRD 31236 IBRD 31237 IBRD 31238 Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project Project Appraisal Document Africa Regional Office AFC08 Date: 02/02/01 Team Leader: Abdelmoula Ghzala Country Manager/Director: Hafez M. H. Ghanem Sector Manager/Director: Maryvonne Plessis-Fraissard Project ID: 47250 Sector: Transport, water supply, and urban development Lending Instrument: Sector Investment Credit Theme(s): Environment Poverty Targeted Intervention: [ I Yes [X] No Project Financing Data [] Loan [X] Credit [] Grant [] Guarantee [] Other [Specify] For Loans/Credits/Others: Amount (US$m): 11.4 Amount (SDRm): 8.8 Proposed terms: [] To be defined [X] Multicurrency [] Single currency [] Standard [] Fixed [] LIBOR- Variable based Grace period (years): 10 years Years to maturity: 40 years Commitment fee: N/A percent Service charge: 0.75 percent Govemment 0.3 0.0 0.3 International Development Association (IDA) 2.8 8.6 11.4 Cofinancier: French Cooperation (FC) 0.2 1.4 1.6 Total: 3.3 10.0 13.3 Borrower: government of Comoros Guarantor: N/A Responsible agencies: Ministere de l'Equipement, de l'Energie et de l'Urbanisme through its Direction Generale des Infrastructures Estimated disbursements (Bank FYIUS$ million): Annual 0.6 2.0 3.3 3.3 2.2 Cumulative 0.6 2.6 5.9 9.2 11.4 Project implementation period: 2002-2006 Expected effectiveness date: July 2001 Expected closing date: December 31, 2005 Implementing agency: Ministere de l'Equipement, de l'Energie et de l'Urbanisme through its Direction Generale des Infrastructures Contact person: Ahamed Hassani Soilihi (DGTP) Address: Moroni, Comoros Tel: 269-732993 Fax: 269-732993 E-mail: DGTP@sntp.km A: Project Development Objective Al. Project development objectives The proposed project is an integral part of a multidonor-financed infrastructure, water and environment program in Comoros, and supports the development objectives of the larger program. The primary program objective is to improve living conditions and stimulate economic growth in Comoros, while protecting the environment through investments in basic infrastructure. Focusing on two priority sectors (roads and urban water supply), the specific objectives of the project are to: (a) maintain road infrastructure and improve the safety of road transport; (b) upgrade and expand urban water infrastructure and significantly increase access to clean water for people living on the Anjouan and Moheli islands by 2004-2005; and (c) improve decentralized management of road transport and water supply through strengthening of public sector institutions, increased public awareness, stakeholder participation, and implementation of cost-recovery measures. The project would seek to decentralize the responsibility for project management and promote increased participation of beneficiary communities and the private sector in implementing and managing road maintenance and water supply. A2. Key performance indicators Key performance indicators include physical measures such as kilometers of roads under routine and periodic maintenance and kilometers of roads marked with new signs and number of house connections made and standpipes built. They include gauges such as percentage reduction in road accidents, percentage decline in travel times, improvements in water quality and proportion of urban residents with access to clean water. In addition, they include indicators of improved sector management, such as number of days between issuing tenders and contracting works, number of private sector contracts issued for works, resources mobilized for the road maintenance fund, and the proportion of water system operating costs covered by user fees. B: Strategic Context B]. Sector-related country assistance strategy (CAS) goal supported by the project Due to the volatile political situation and continued conflict, the Bank has not prepared a CAS for Comoros since 1993. However, the Bank has recently prepared an interim support strategy for Comoros covering the next 12-18 months, which was discussed by the Board on November 14, 2000 (document No. IDA/R2000-182). This strategy calls for an active role for the Bank in supporting the government of Comoros while it attempts to reintegrate Anjouan into the federation, create the conditions to improve economic management and governance. Poverty and inadequate delivery of social services are major problems in Comoros and the Bank can be especially helpful in supporting local communities who are mobilizing to improve their standards of living and decentralized management of social services. The proposed project is the only new project being considered for Comoros at this time. By supporting urgent periodic maintenance of vital road and water supply infrastructure it will 2 contribute to economic recovery and help provide essential social services. By supporting improved decentralized project implementation and management on all three islands, it will support the government's efforts to create a federation within which all three islands enjoy considerable autonomy. It will also help Comoros meet its longer-term objectives, such as improving capacity for environmental management. B2. Main sector issues and government strategy Road transport. Issues: Although the operation of the road maintenance fund assures that resources are available for routine maintenance, Comoros lacks institutional and financial capacity to adequately provide periodic maintenance for all its 564 kilometers of roads. Furthermore, while road transport safety is improving due to support from the road maintenance fund and donors (IDA, European Union, Agence Francaise de Developpement, Fonds d'Aide et de Cooperation), road travel is still dangerous due to inadequate signs, unstable road shoulders and an antiquated and poorly enforced road code. Strategy: To reduce travel time and vehicle operating costs, the government plans to improve both routine and periodic maintenance of roads. It will do this by reforming and strengthening the road maintenance fund, privatizing regional equipment pools and workshops, and strengthening the capacity of the Ministere de l'Equipement, de l'Energie et de l'Urbanisme to manage the road sector more effectively, efficiently and sustainably. To save lives and reduce injuries and property damage it plans to increase road safety by installing improved signs, rehabilitating and reshaping unsafe road shoulders among other measures. Urban water supply: Issues. The percentage of population with access to safe drinking water is relatively low in Comoros (current rates of coverage are 30 percent for Grand Comore, 45 percent for Anjouan, and 60 percent for Moheli). Responsibilities for water resources management are scattered among multiple public sector institutions, most of which are understaffed, have limited resources and lack technical capabilities. Existing water infrastructure has limited capacity and is in poor condition due to lack of maintenance. This has resulted in poor quality services, high water losses (on Grande Comore water losses are estimated as being as high as 45 percent) and threats to human health as demonstrated by a recent cholera outbreak. Cost recovery for water services is nonexistent. Strategy. The government has adopted the recommendations of the UNICEF-financed national action plan for water and basic sanitation to (a) integrate the water sector into the national environmental action plan (NEAP); (b) establish an institutional framework to monitor, plan and coordinate water sector activities; (c) focus on rural and periurban microprojects; (d) focus on the needs of beneficiary communities and increase their contribution to service delivery; (e) use appropriate technologies to increase low-cost, sustainable coverage of water and sanitation services; (f) standardize construction; (g) strengthen water engineering capacity in Comoros; and (h) introduce charges for water services. The operations of the water and electricity authority (Compagnie Nationale de l'Eau l'Electricite des Comores (CEE)) have been privatized, which has led to improved management and delivery of services in Grande Comore (CEE does not operate in the water sector in Anjouan and Moheli islands). A key element of the strategy is to assure that poor households have access to clean water at prices they can afford. Therefore, 3 while government plans to make water operations financially self-sufficient by charging users full long-run marginal costs for water, it also intends to cap prices of water from public standposts at levels so that poor households pay no more than 5 percent of their average annual income for water. B3. Sector issues to be addressed by the project and strategic choices The project will assist the government by supporting periodic maintenance of roads and rehabilitation and expansion of urban water systems. Improved roads are essential to bring about economic recovery. Better quality, more reliable and expanded urban water supplies are vital for public health (2000 cases of cholera were recorded in Anjouan last year). It will also help foster national economic recovery by investing in all three islands (thereby providing an incentive to all three to remain part of the federation), and supporting decentralized project implementation and management. For the longer-term, it is expected that the project will support development of Comorian tourism by helping protect its unique environmental heritage and investing in critical infrastructure identified in the Bank-financed "Tourism, Environment and Infrastructure Study" (1995) as a principal source of future growth for Comoros. Other donors are also supporting projects addressing the serious constraints to Comorian development. The European Union has supported the formulation of a tourism development masterplan and is assisting Comoros implement a solid waste management system. UNICEF has financed the development of a national action plan for water and basic sanitation. The proposed Infrastructure, Water and Environment Project is part of a larger multidonor supported infrastructure and environment program to address these issues. Strategic choices Supporting private sector management of water utilities rather than public sector management. The experience of CEE on Grande Comore, whose operations have been privatized, show that private operators can manage water services more efficiently and effectively than government agencies. The private operators have established a tariff system and are successfully collecting payments from users. The utility now has the resources it needs to maintain and operate the water system and invest in rehabilitating and expanding the network. As a result, consumers now have more reliable and higher quality water supplies in Grande Comore. Similar schemes will be adopted under the project for Anjouan and Moheli islands. Recovering costs of water services from users rather than providing subsidies for them. Worldwide experience shows that subsidies for water supply go mainly to enterprises or better- off households who use much more water than the poor who rely on standposts. Recovering costs from users helps reduce or eliminate these subsidies to the better off, making resources available for more targeted subsidies benefiting the poor. Recovering costs from users also helps ensure the long-term financial viability of the water supply services. 4 Raising revenues for road maintenance through road user fees and contribution from vehicle ownership charges rather than through a fixed contribution from the fuel tax. The existing mechanism of road maintenance financing, based primarily on a fixed contribution from the fiuel tax is not generating the resources required for adequate road maintenance and is not serving the objective of establishing a financially sustainable road subsector in Comoros. It is proposed to replace it with: (a) an increasing road user fee (redevance d'usage) covering the variable costs of using the network; (b) a contribution from the vehicle ownership charge for access to the network; and (c) direct payment from the Societe des Hydrocarbures (SCH) to the road maintenance fund. This would distribute the expenses of road maintenance more fairly among road users and would simplify revenue collection. C: Project Description Summary Cl. Project components A. Transport (a) Roads periodic maintenance Physical/institution 4.4 4.2 building/policy (b) Road safety Institution 0.8 0.7 building/policy/ physical (c) Engineering, studies, expertise Other/institution 0.7 0.7 and institutional strengthening building Subtotal 5.9 44.3 5.6 49.2 B. Urban water supply (a) Urban water works Physical/institution 3.0 3.0 building/policy (b) Engineering, studies, expertise Other/institution 1.1 1.1 and institutional strengthening building Subtotal 4.1 31.0 4.1 36.0 C. Support to sectors and program coordination (a) General studies, expertise Institution building 0.1 0.1 (b) Training Institution building 0.9 0.2 (c) Technical assistance for Project 0.8 0.0 coordination management (d) Logistical support for Project 0.8 0.7 coordination management Subtotal 2.6 19.9 1.0 9.2 D. Project preparation studies Institution building 0.6 0.6 (under PPF) Subtotal 0.6 4.8 0.6 5.6 Total project costs/Financing required 13.3 100 11.4 100 5 C2. Key policy and institutional reforms supported by the project A major institutional reform supported by the project is the restructuring of the road maintenance fund and the strengthening of its operations. The reforms are intended to ensure the sufficient, timely and stable flow of funds to finance routine, and, gradually, periodic maintenance. Institutional reforms to improve capacity of government to implement IDA and other donor- funded projects will also be implemented. The general directorate of infrastructure (Direction Generale des Infrastructures (DGI) set up prior to Board presentation) within the Ministere de l'Equipement, de l'Energie et de l'Urbanisme will be responsible for overall project coordination and implementation. Regional directorates (Directions Regionales des Infrastructures (DRI) to be set up under the project) will monitor implementation of road maintenance works on individual islands through a decentralized management structure. The project is also supporting policy reforms for the roads and urban water sector. In the roads sector, the government is preparing a policy to transform the regional equipment pools and workshops into autonomous, and ultimately private operations. In the water sector, the government is favoring a policy on institutional set-up, tariff levels and structure, and mechanisms for cost-recovery of urban water supply services. Further, it is taking steps to privatize operations and maintenance of water services and involving communities in establishing service contracts with private operators, selected on the basis of competitive bidding. C3. Benefits and target population The project will improve management and maintenance of the road network on all three islands. This will improve the speed of transport and reduce costs of transporting people and goods. This will benefit the entire population, including rural villagers, who will enjoy improved access to markets and public services, and urban producers and traders. The project will also improve road transport safety, again benefiting the entire population. Improving and sustaining access to convenient, safe water in the urban areas of Anjouan and Moheli will disproportionately benefit the poor on these two islands, many of whom currently collect water from distant, contaminated sources. C4. Institutional and implementation arrangements Project Implementation Period. The project will take place over five years, fiscal 2002-2006. It will be completed by June 30, 2005 and closed by December 31, 2005. Project coordination. The Ministere de l'Equipement, de l'Energie et de l'Urbanisme through the DGI will be responsible for overall project coordination and implementation. The DGI, which will consolidate the existing competencies in roads, urban and water matters, will be comprised of representatives of the Directorate of Public Works (Direction de Generale Travaux Publics (DGTP)), Directorate of Energy and Directorate of Urban Development, who have experience coordinating, planning and executing projects financed by IDA, the EU, the African 6 Development Bank, Fonds d'Aide et de Cooperation (FC, France) and Islamic Development Bank. The DGI, which is replacing the above mentioned three directorates, will be supported by a designated coordination unit (cellule de coordination, CC) headed by an international expert, who is already in place. FC is financing the coordination unit, the technical assistance and the training program to strengthen capacity of the DGI and DRIs in their new roles. Project oversight. A steering committee comprised of representatives of the ministries of finance, budget and privatization; infrastructure, energy and urbanism; transport and tourism, production and environment, and representatives of various stakeholder groups (urban communities, road users, water users) will provide policy guidance and overall project oversight, and will ensure coordination and cooperation between central, regional and local authorities, govermnent agencies involved with project implementation, and the private sector. The steering committee has been constituted prior to Board presentation. Executing agency. The Ministere de l'Equipement, de l'Energie et de l'Urbanisme through the DGI (set up prior to Board presentation) will execute the project. Regional directorates (Directions Regionales des Infrastructures (DRIs)) to be set up by July 1, 2002, will monitor implementation of road maintenance and water works on individual islands through a decentralized management structure. Supervision of works will be carried out by consulting firms to be recruited by DGI according to World Bank procurement guidelines and procedures. Procurement. Consultant services, works and equipment to be financed under the IDA Credit will be procured according to World Bank procurement guidelines. Accounting, financial reporting and auditing arrangements. Prior to Board presentation, DGI has established an improved project accounting system tracking the cost of the various works, goods and services provided under the project, in accordance with the "Financial, Accounting, Reporting, and Auditing Handbook," dated January 1995, as well as a draft Financial Management Procedures Manual. Also prior to Board presentation, DGI and the road maintenance fund have appointed a financial manager acceptable to IDA. During the first year of implementation, the road maintenance fund will establish an improved accounting and financial management system. Assessment of the project's financial management for adequacy and readiness for PMR-based disbursements will be carried out within 18 months of the date of effectiveness of the Development Credit Agreement, in order to evaluate the transition effectiveness to the new enhanced disbursement mode. On the basis of this evaluation, DGI will prepare an action plan, acceptable to IDA, to implement the measures recommended with clear deadlines for implementation stages. Independent auditors acceptable to IDA will annually audit the accounts of DGI, the project and the road maintenance fund. The reports of such audits will be submitted to IDA no later than six months after the end of the government's fiscal year for the project accounts and road maintenance fund accounts. The DGI and the road maintenance fund will appoint the auditors prior to effectiveness. Supervision. During the first two years of project implementation, IDA will devote some 14 staff weeks a year for supervision. During the following three years, it will devote 12 weeks a year to supervision. Supervision missions, which will be carried out twice a year, will generally 7 include infrastructure specialists. Periodically, missions will include technical and financial management specialists. Particular attention will be paid to the operations of the road maintenance fund, community participation in the water component, effectiveness of cost recovery systems, and progress with privatizing water operations. Monitoring and evaluation. Overall project monitoring are be based on indicators prepared during appraisal and on the project implementation plan finalized by the Ministere de l'Equipement, de l'Energie et de l'Urbanisme (MEEU) and agreed during negotiations. DGI will prepare progress reports every three months, commencing in March 2001, and submit them to IDA within one month thereafter. These will include information on (a) the status of the project relative to the agreed timetable of project execution and disbursements, (b) key performance indicators, and (c) work program and projections of expenditures for the next quarter. This reporting will help the DGI and the Bank identify and address problems quickly. Once a year during project implementation, a joint annual review will be carried out with DGI and the donors involved in the concerned sectors, to assess the overall progress achieved during the current year. No later than four months after the Credit closing date, the DGI will prepare and provide to the Bank a report on the execution of the project, its costs and current and future benefits to be derived from it, to be attached to the Bank's Implementation Completion Report in accordance with IDA guidelines. Midterm review. IDA will carry out a midterm review jointly with the government, FC, DGI, DRI, the road maintenance fund and other involved parties no later than 21/2 years after the Development Credit Agreement becomes effective. In addition to covering all areas included in quarterly progress reports, the midterm review will (a) progress made in meeting the Project's objectives; (b) overall Project performance against Project performance indicators; (c) assess compliance with clauses of the Credit Agreement, especially those concerning financial management and auditing; (d) implementation progress relative to plan of physical works and institutional strengthening components; and (e) performance of the road maintenance fund. In addition, the parties will finalize decisions on tariff policies and cost recovery mechanisms to be implemented under the water component. D: Project Rationale Dl. Project alternatives considered and reasons for rejection IDA projects in Comoros have traditionally focused on a single sector, such as road transport. At the request of the government the proposed project is a multisectoral project, which is part of a coordinated multidonor program to comprehensively address priority sectors. The Bank has been instrumental in mobilizing other donors in support of this comprehensive infrastructure and environment project. 8 D2. Major relatedprojects.financed by the Bank and/or other development agencies Implementation Development Progress (IP) Objective (DO) Bank-financed Assist with building and maintaining Highways 11 (585) (closed S S road infrastructure 6/30/87) Assist with maintaining road Road Maintenance Project S S infrastructure (593) (closed 12/31/97) Assist with building community Population and Human S S infrastructure (through Funds for Resources Project (596) Community Development (closed June 2000) component) Other development agencies Help build community infrastructure Microprojects (EU) Address inadequate transport Eighth European infrastructure Development Fund operation Address environmental degradation Eighth European Development Fund operation Assist with building urban Special Development Fund infrastructure (drainage, roads) (AFD) Support construction of water Water Infrastructure infrastructure Rehabilitation AFD/FC) Raise awareness of water and UNICEF Project sanitation issues Increase supply of potable water UNDP Water Supply Project Increase supply of potable water JICA Project IPIDO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) D3. Lessons learned and reflected in the project design Donor coordination. Given the relatively large number of donor operations and the government's low absorptive capacity, there is a strong need for coordination of donor assistance in Comoros. The proposed project is part of a larger donor-financed infrastructure and environment program, which will facilitate coordination of donor support. IDA has been a key player in donor coordination since the identification of the infrastructure and environment program and the project. Coordination will be maintained during project supervision and formal yearly donor coordination meetings are planned to be held during the joint annual reviews. 9 Community participation. Worldwide experience shows that participation can help in designing projects that reflect community preferences, and therefore avoiding costly mistakes. Participation in decision-making also creates a sense of ownership which should contribute to the sustainability of project benefits by increasing willingness of beneficiaries to pay for services and maintain the assets. In this project, communities have been consulted at very early stage of project preparation through a social assessment study. They have participated in decisions on the design of water systems, tariff structure and cost-recovery mechanisms. They will also participate in the management and operations of the water systems and of the road maintenance fund. Privatization of water utility operations. The operations of the water utility have been privatized on Grande Comore, a tariff system has been set up, and cost recovery mechanisms established. This is working well, and similar schemes will be established on Anjouan and Moheli under the project. The selection of the private operator will be made on the basis of competitive bidding according to World Bank guidelines. D4. Indications of borrower commitment and ownership The present government has demonstrated commitment to improving economic management and governance. Despite substantial financial constraints, in January 2000 it settled IDA arrears accumulated from mid-1998, demonstrating its determination to pursue a productive relationship with IDA. This has enabled the Bank to lift the suspension of IDA disbursements and to resume project activities in key sectors. The proposed project addresses two priority areas for the government: road infrastructure and urban water supply. These investments are needed to help the economy recover and improve public health and quality of life in urban areas. The project will also help the government improve its environmental management, essential for the long-term growth of the economy. The government will support the project by providing counterpart funds through the road maintenance fund, and establishing a high-level program steering committee to coordinate donor assistance in the concerned sectors. During project appraisal, the government has confirmed the high priority of the overall infrastructure and environment program for the economic recovery process of the three islands; and the catalytic role of the program in the future decentralized institutional framework. D5. Value added of Bank support in this project IDA has been involved in the transport sector of Comoros for the past twenty years, financing three highway and road maintenance projects, most recently the Road Maintenance Project which closed in 1997. Through these and projects in other sectors, IDA has developed a close working relationship with Comoros. That Comoros values this relationship is demonstrated by the government's settling of IDA arrears in January 2000, and resuming a productive relationship with the institution. 10 IDA has also developed effective relationships with other donors active in Comoros. The government is looking to IDA to take the lead in coordinating donors as they resume implementation of their plans to support the country's national economic recovery efforts. Through the proposed project, IDA has a critical role in mobilizing donor support for the large multidonor program. E: Summary Project Analysis El. Economic (supported by Annex 4) [X] Cost-Benefit Analysis: Roads periodic maintenance: ERR= 15-25 percent in Grande Comore and 10-25 percent in Anjouan and Moheli. Urban water supply: ERR= 20-27 percent in Ouani and Moutsamoudou and 5-7 in Domoni and Fomboni. Transport. The economic rates of return for roads periodic maintenance range from 15 to 25 percent in Grande Comore and 10 to 25 percent in Anjouan and Moheli. Benefits, which are calculated using the Bank's highway design model (HDM-III), include reduced vehicle operating costs, reduced costs from highway accidents, and time savings, among others. It also includes the value of preserving the current road network through periodic maintenance versus the costs of replacing the network if periodic maintenance is neglected. Urban water supply. The economic rates of return for water supply works range from about 20- 27 percent in Ouani and Moutsamoudou and 5-7 percent in Domoni and Fomboni, assuming that households are willing to pay 4.5 percent of their income for water. These figures are based on assumptions of households' willingness to pay and do not include potential benefits from improved health of users, which is potentially significant given the recent outbreak of cholera and typhoid especially in Anjouan. Improved water system management which reduces water losses will improve water resource management overall and delay the need for major new investments in the sector. E2. Financial A major aspect of the project is to improve financial management of the road and water sectors in Comoros. The project will support the restructuring and improved management of the road maintenance fund. The reforms will ensure the sufficient, timely and stable flow of funds to finance routine maintenance, and, gradually, periodic maintenance. The project will also support technical assistance to improve financial performance and operations of urban water utilities. A study of institutional and financial issues has recently been completed. Its results will be used to develop an efficient, effective and sustainable water management and cost-recovery system. Fiscal impact: In the short term the fiscal impact of expenditures on periodic roads maintenance and rehabilitation and extension of urban water works will be negative. However, once construction is complete, these investments will lead to higher economic activity and improved 11 health of city dwellers, which will generate tax revenues and save resources on health care, resulting in positive fiscal impacts. E3. Technical Technologies appropriate to Comoros' income levels and managerial capacity will be chosen for all project components, reflecting generally accepted technical standards and operating practices appropriate to the respective sectors. Water systems are being designed after consultation with the beneficiary communities. They are keenly interested in choice of technology because they are expected to pay for water services and the charges will depend on the systems' costs. E4. Institutional Executing agencies. The Ministere de l'Equipement, de l'Energie et de l'Urbanisme through the DGI will execute the project. DRIs will monitor implementation of road maintenance and urban water works on individual islands through a decentralized management structure. The ministry (through the existing DGTP and the regional DRTPs) generally has well-trained and competent staff, and experience with executing Bank projects and applying the Bank's procurement procedures. Such expertise will be strengthened at both central (DGI) and local (DRIs) levels through training, and by providing access to advice. Project management. The Ministere de l'Equipement, de l'Energie et de l'Urbanisme will be restructured and the three main existing specialized directorates of the ministry, DGTP for roads maintenance activities, the Directorate of Energy and Mining (Direction de l'Energie et de Ressources Minerales, DERM) for water sector management and the Directorate for Urban Services (Direction de l'Urbanisme) have been consolidated into the DGI prior to Board presentation. DGI will be responsible for overall project coordination and implementation. Under the project, three DRIs will be set up (one in each of the islands) for gradual decentralization of responsibilities from DGI and monitoring of project activities during project execution. The DGI is mainly comprised of staff of the existing Directorates, who have experience coordinating, planning and executing projects financed by IDA, the EU, the African Development Bank, the Islamic Development Bank and FC. The DGI will be supported by a designated coordination unit headed by an international expert, who is already in place under FC financing. Other. Comoros has limited public sector capacity to absorb a large number of donor operations simultaneously. The project includes technical assistance for coordination of donor assistance and targeted expertise as needed. ES. Environmental Environmental Category [X] A [] B [] C 5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. 12 A full environmental impact assessment has been carried out for the project. The major environmental impacts of the project's two components and their treatment are as follows: * Transport. This component involves mainly maintenance of existing roads, which will have minor, if any, environmental impacts. Major works will involve stabilizing road embankments, which will involve some reshaping of land surfaces and destruction of roadside vegetation. * Urban water supply. This component involves rehabilitation of existing infrastructure and extension of urban water works. Poor construction practices can disturb land and cause erosion, which can damage streams and aquatic ecosystems and degrade soil cover. Carelessness during construction can also result in contamination of water courses by chemical or organic pollutants. Construction of small reservoirs along the streams can disturb rheophile aquatic fauna accustomed to rapid currents in the higher parts of the watersheds. Increased consumption of water accompanied by poor drainage can lead to changes in the water table, and to contamination of water and soil. Contractors will specify their plans to address environmental issues during construction in their bidding documents. These plans will be included in final contracts. DGI, DRIs and the Bank will closely monitor implementation of the plans. The executive summary of the project's environmental impact assessment appears in annex 11. 5.2 What are the main features of the EMP and are they adequate? The EMP involves specification of measures to mitigate or offset the environmental impacts of works (in connection with periodic road maintenance and expansion or rehabilitation of water infrastructure), and operation of water supply systems. It also presents an action program for public consultation and training in environmental management for staff of key government agencies involved with the project. The measures are adequate. Details follow. Measures to mitigate or offset environmental impacts of the project There are two categories of measures to mitigate environmental impacts of the project: those put into place during construction (which apply to all project operations), and those pertaining to easements and operations of the various facilities. Measures during construction * Creation of a coordination and worksite programming unit to manage the heaviest operations * Proposal of environmental clauses to be included in the specifications for companies submitting bids * Organization of an information workshop for companies and government workers who will oversee implementation of measures to mitigate or offset impacts 13 * Application of regulatory measures modeled on French legislation addressing admissible noise levels, worksite cleanliness, water pollution, and implementation of measures to protect archeological sites * Supplementary measures designed to control chronic or accidental pollution, noise, safety, handling of temporary easements and expropriations * Specific requirements for the opening up of quarries and borrowpits (choice of sites and methods of extraction, provisions for extraction, provisions for public safety, extraction plans, prevention of pollution, and orders for restoration of the sites to their original condition). In addition to these measures, which apply to most of the project activities, special measures are proposed to address particular operations (for example, use of quick-setting cement for works located close to the aquatic environment, prevention of erosion resulting from road works, protection of trees growing alongside roadways, safety arrangements for work sites in areas with vehicle traffic, special provisions for the transportation of materials in urban areas, and the like). Measures pertaining to easements and operation offacilities Transport component * Measures addressing stormwater drainage systems * Planting program to compensate for felled trees * Protective measures to limit pressure on the forest * Prevention of noise pollution through control of urban development * Communication and sensitization activities to control unsafe road conditions * Installation of signs and signals and other safety installations. Urban water supply component , Creation of close-in and remote protection perimeters around the catchment works and tubewells supplying drinking water to the communities * Hydrobiological study of the streams to be tapped for the catchment projects * Protection of forested hillsides constituting the high watersheds where the catchment works are installed * Compensation for agricultural losses (financial, land, or assistance in kind) * Landscaping to incorporate the access roads and reservoirs * Protection of the Moutsamoudou river watershed * Vegetation management within the reservoir (floating barrier option) * Protection of the Hahaya tubewell (subject to the results of a hydrogeological survey) * Installation of stormwater decantation mechanisms, biological monitoring of the marine environment and of the bacteriological quality of the water, covering of main collectors to ensure that the roads are always passable. 14 The total cost of the measures in connection with easements and operation of the works is estimated to be about KMF 250 million or approximately US$500,000. These costs have been taken into account for the cost estimates and most of the above tasks, as well as rights of way and compensation, will be directly included in the construction contracts. Environmental consultation and training plan Consultation. The project involves community participation to enable primary stakeholders to voice their views concerning potential changes to the environment, and to take ownership of project decisions. Dialogue with project staff, local authorities, and other key stakeholders are planned while the detailed designs for individual project activities are being prepared. About US$10,000 of project resources are being allocated for the information, consultation and public awareness activities. Training activities. Protecting natural resources requires that governments and others to fully take into account the environmental impacts of their activities. In Comoros, special training is needed for all those involved in the design, implementation, maintenance and operation of project activities. In particular, training is planned for the staffs of the DGI, DRIs and the Directorate General of the Environment. The DGI and DRIs must ensure that the measures to protect the environment are incorporated in the implementation of works and the Directorate General of the Environment must enforce environmental laws and regulations, so training for staffs of these agencies is particularly important. Training activities also involve two actions directed at the public. The first involves publication of overviews of project operations, including descriptions of activities, administrative procedures being followed, potential environmental impact of activities and impacts on the country's communities. The second involves carrying out public education and communication campaigns regarding the environmental issues of the project. 5.3 For Category A and B projects, timeline and status of EA: The environmental impact assessment for the project was completed in September 1999. An update to reflect changes in project design was completed in August 2000. Date of receipt of final draft: August 30, 2000. 5.4 How have stakeholders been consulted at the stage of (a) environmental screening, and (b) draft EA report on the environmental impacts and proposed EMP? Describe mechanisms of consultation that were used and the groups that were consulted. The principal stakeholders in the area of environmental protection (government authorities, nongovernmental organizations, and local associations) were involved in identifying the project's environmental impacts, specifying measures to address them and reviewing the EIA and EMP. Consultations with primary stakeholders were carried out for the behavioral and social study that was conducted at the same time as the EIA. Additional consultations are planned during preparation of the final designs of project works. These will be financed by the IDA Credit. 15 5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? DGI and DRIs will monitor performance of the contractors in implementing the mitigation measures specified in the works contracts, which will be based on the objectives and results of the EMP. As part of its routine supervision process and midterm review, the Bank will review performance of relevant government agencies in addressing environmental issues in design and implementation of subprojects. This will involve visits by members of supervision missions to sites of subprojects for first-hand assessment. The project's midterm review and implementation completion report will evaluate implementation of this environmental management plan. E6. Social 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. A social assessment for the project intended to provide a greater understanding of the needs and practices of the people was completed in February 1999. This showed that rehabilitating and expanding urban water supplies will bring significant benefits to women and children, since they are the ones mainly responsible for its collection. The poor, many of whom now rely on contaminated and distant water supplies, will also disproportionately benefit from the project by gaining access for the first time to clean, reliable and steady water supplies. In the long run, the improved health and increased leisure time of women and children is expected to lead to greater investment in education for boys and girls, with consequent increases in incomes and quality of life. The project will help build social capital by involving community groups in designing water supply systems and cost-recovery schemes and mechanisms, and in managing and operating water supply services where appropriate. The social assessment also showed that cost recovery from water users will not come easily. Involving users in selecting service levels will be essential to assure that communities feel ownership of their water systems. A public information campaign to raise awareness of the benefits of clean and convenient water and the need to pay for the services will also help in convincing consumers to accept tariffs. The project will involve acquisition of rights of way for new water distribution networks. In rare cases, it may also involve acquisition of land for new water intakes or catchment areas to ensure their protection. In some cases this may result in the fragmentation of farmers' fields requiring changes in farming patterns. Although it is not known at this time what the social impacts may be, it will be required that farmers are compensated at full replacement cost for any losses they may incur. There is no resettlement of people anticipated under the project. In any case, the project will not finance activities that would result in the resettlement of people. Other options will be sought instead. 16 The project implementing agency will submit to the Bank for prior review and approval proposals for acquisition of land or rights of way, specifying number of people affected, nature and extent of impacts, and plans for mitigating impacts, including compensation plans. Any private land needed for works to be carried out under the project, will be provided in a voluntary manner and in accordance with a memorandum of understanding (MoU) between the government and the owner of the land. The Bank will closely supervise implementation of such plans and MoUs during its regular supervision missions, annual reviews and the mid-term review. There are no significant social issues associated with roads periodic maintenance. Road maintenance will improve the quality of existing thoroughfares and will not result in any resettlement. Disruption of commercial activities along roads may occur for a brief period while work is underway. People affected will be informed of the scope and duration of works well before they start. Contractors will use local laborers and labor-intensive techniques to the extent feasible. 6.2 Participatory approach: How are key stakeholders participating in the project? Beneficiaries have been involved in project preparation through information sharing, consultation and collaboration. They will be involved in all stages of implementation of the water supply subcomponent, participating in decisions on design of water systems and cost- recovery levels, structure and mechanisms. They will also be involved with implementing the water supply works and with operations and maintenance where appropriate. Regarding roads maintenance, the public will be represented in the overall oversight of the road maintenance fund after the restructuring of this latter. 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? NGOs, academic institutions, local authorities, and other donors have been involved with project preparation, participating in decisions on project design. They are expected to be involved with project implementation and operations. UNICEF and NGOs will be involved in information, education and communication campaigns to encourage people to participate in managing and maintaining the water systems, and in paying for water services. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? Community groups will be involved with designing, implementing and contracting out operation and management of water supply systems. Their full participation should ensure that no social or income groups are excluded from the benefits of the urban water supply subcomponent. 6.5 How will the project monitor performance in terms of social development outcomes? 17 Monitoring indicators, as currently envisaged, focus on institutional performance of the government agencies responsible for implementing the project. Special attention will be paid to issues of transparency and accountability. The benefits of monitoring project implementation and outcomes through participatory techniques have been discussed with government during appraisal and monitoring indicators have been agreed. The project's implementation arrangements will allow changes to be made in response to information generated during supervision missions and the midterm review. E7. Safeguard policies 7.1 Do any of the following safeguard policies apply to the project? U~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ X Environmental Assessment (OD 4.01) Yes Natural Habitats (OP/BP/GP 4.04) No Forestry (OP 4.36) No Pest Management (OP 4.09) No Cultural Property (OPN 11.03) No Indigenous Peoples (OD 4.20) No Involuntary Resettlement (OP 4.30) No Safety of Dams (OP 4.37) No Projects on International Waterways (OP 7.50) No L___ Projects in Disputed Areas (OP 7.60) No 7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. Project supervision and the midterm review will investigate compliance with the safeguard policies as a main area of focus. Failure to comply could result in suspension of the project. F: Sustainability and Risks Fl. Sustainability The proposed project is part of a larger donor-supported program. The IDA Credit would support interventions that complement and build upon those of other donors. In addition, the project is based on the participation of community groups that are already involved in providing services to residents. The project will capitalize on existing capacity, which has already been built during previous IDA financed road maintenance projects, and strengthen it at central and regional levels. Cost recovery mechanisms will be developed and implemented to help pay for water services. The road maintenance fund will be restructured to ensure overall long term financial sustainability of road maintenance activities. 18 F2. Critical risks From Outputs to Objective Political instability may disrupt S IDA is maintaining an active dialogue with government, project implementation. donors and other actors to remain abreast of the latest political developments. The project will be suspended if political instability threatens the achievement of project objectives. In addition, the DCA provides for a separate disbursement category for Anjouan and a disbursement condition for Anjouan project activities. Government may allocate and M Project includes provisions for institutional strengthening disburse road maintenance fund and technical assistance as needed. revenues and user fees-for water supplies ineffectively or inappropriately. Government may lack capacity to H Project includes provisions for institutional strengthening enforce environmental regulations. and technical assistance. From Components to Outputs Counterpart funds may be H Project is designed with minimum counterpart funds from inadequate. GOC (mainly from road maintenance fund). Reviews will take place every six months. Donors may fail to coordinate their M A project steering committee has been put in place to activities effectively. oversee and monitor implementation of all aspects of the program. It will periodically call meetings with all donors supporting the program to discuss program issues. Limited government absorptive and S The creation of the DGI within the ministry of management capacity may impede infrastructure, energy and urbanism, the establishment of project implementation. a coordination unit, and the provision of prompt technical assistance will minimize this risk. Government may not provide M The Sector Policy Letter includes detailed plan adequate road maintenance fund (acceptable to IDA) for operations of the road resources. maintenance fund, including levels and mechanisms for funding. Privatization of public regional force- N GOC has given its commitment to transform the account road maintenance workshops workshops into autonomous, and ultimately private sector may not be achieved. operations, with a timetable for doing so. Community contributions for water S Communities will be involved with selecting service supply may be inadequate to cover levels, and therefore gain control over how much they costs. have to pay. Public information campaigns will raise awareness of the importance of paying for water services. A private operator will be responsible for operate the water system and collecting tariffs. Overall Risk Rating S Risk Rating-H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk) 19 F3. Possible controversial aspects Investing in Comoros while the political situation is still not fully resolved may be risky, particularly because a substantial proportion of the disbursements are planned for Anjouan, an area outside of effective government control. The DCA provides for a separate disbursement category for works in Anjouan and a disbursement condition for Anjouan with regards to the works category. However, the government has demonstrated commitment to improving economic management and governance, and IDA involvement can help foster the process of national economic recovery in Comoros. G: Main Credit Conditions Prior to Negotiations: The following conditions have been met in form and substance acceptable to IDA: * Draft Project Implementation Plan (PIP) and Procurement Plan * Draft Letter of Sector Policy prepared for the road and urban water sectors * An "Arrete" to exempt the Project's goods, equipment, supplies, etc. from taxes and customs duties. Prior to Board Presentation: The following conditions have been met in form and substance acceptable to IDA: - Transmission to IDA of Letter of Sector Policy for the road and urban water sectors - Draft Financial Management Procedures Manual, and accounting and financial management system for the Project established - DGI and the Steering Committee established in a manner, and with staff satisfactory to IDA * Financial manager for both DGI and the road maintenance fund appointed in compliance with Bank procurement guidelines, and accountant appointed for both DGI and the road maintenance fund, with qualifications and experience satisfactory to IDA. Prior to Effectiveness: * Project Implementation Plan (PIP) and Financial Management Procedures Manual, in forrn and substance acceptable to IDA, adopted by the Borrower * Auditors for the project accounts and the road maintenance fund appointed in accordance with Bank procurement guidelines. 20 During project Implementation * A sliding three-year investment and maintenance program for the road sector will be prepared by DGI and submitted annually to IDA by October 15, for its review and comments * The government will not undertake or order from any entity or contractor any public investment for the road sector over US$500,000 equivalent, which is not part of the approved three-year investment and maintenance program * The government will: (a) maintain the road maintenance fund under terms and conditions which will be at all times satisfactory to IDA, (b) take measures required on its part to ensure that the level of the road user fees to be channeled into the road maintenance fund are promptly adjusted according to the agreed provision under the Sector Policy Letter, and (c) ensure that the proceeds of the road maintenance fund shall be used solely for the purposes of defraying the cost of expenditures incurred for road maintenance and rehabilitation operations in the Comoros. H: Readiness for Implementation 1. [x] (a) The engineering design documents for the first year's activities will be completed and ready for the start of project implementation. All feasibility, institutional and cost recovery studies and a social assessment have been completed. The project design reflects the findings of these studies. [ ] (b) Not applicable. 2. [ I The procurement documents for the first year's activities will be ready for the start of project implementation. 3. [ ] The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. 4. [ ] The following items are lacking and are discussed under loan conditions (Section G): l: Compliance with Bank Policies I1. [X] This project complies with all applicable Bank policies. 12. [ ] The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. Abdelmoula Ghzala Imogene Jensen Hafez M. H. Ghanem Team Leader Acting Sector Manager Country Director 21 Annex 1: Project Design Summary Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project ~~~~~~~~~~~~~~~~ PI Sector-related interim Sector Indicators: Sector/country reports: (from Goal to Bank support strategy goal: Mission) 1. Foster economic Percent decrease in travel Ministry f transport and Government provides recovery through ime. other government reports. resources for the road rehabilitation of critical Percent decrease in maintenance fund. road infrastructure. vehicle operating costs. 2. Improve delivery of Trends in water quality. Ministry of environment There is adequate social services through Trends in water coverage. reports. capacity to create, improved urban water Trends in water and Ministry of health reports. operate and maintain supplies,vectorbomediseo urban water systems and vector borne diseases. monitor water quality and public health indicators. 3. Create a favorable Number of small and Government reports. Government is willing to environment for private medium enterprises withdraw from activities sector involvement involved with in which it is involved. infrastructure construction and maintenance. 23 Annex 1: Project Design Summary (cont.) Project Development Outcome / Impact Project reports: (from Objective to Goal) Objective: Indicators: I . Maintain road 1. Percentage of road Ministere de 1. Government provides infrastructure and network in fair or good I'Equipement, de the road maintenance fund improve the safety of condition. I'Energie et de with sufficient resources. road transport. 2. Number kilometers of l'Urbanisme and other 2. DGI and DRIs have the road under periodic government reports. operational and maintenance. management capacity to 3. Trends in number and successfully implement the severity of road accidents. project. 3. Government is committed to enforcing road safety rules. 2. Significantly 1. Percent of population Ministere de 1. DGI, DRIs and private increase water coverage covered compared with I'Equipement, de operator for urban water of the Anjouan and current situation. I'Energie et de have the operational and Moheli islands by 2005, 2. Trends in drinking l'Urbanisme and other management capacity to and upgrade and expand water quality, government reports. successfully implement urban water the project. infrastructure. 2. Govemment is committed to protecting the environment and ensuring clean water. 3. Consumers are willing to pay for and can afford water supply services. 3. Improve 1. Number of days Ministere de 1. Government is management of road between issuing tenders I'Equipement, de committed to improving transport, water and and finalizing contracts. I'Energie et de management of public urban infrastructure by 2. Trends in contracting l'Urbanisme and other sector institutions, strengthening public payment time. government reports. increased public sector institutions, awareness and stakeholder increasing public 3. Number of private participation, and has the awareness, involving sector contracts awarded. capacity to implement stakeholders, and 4. Financial performance reforms. implementing cost- of road maintenance fund. recovery measures. 5. Percent water operating costs covered by user fees. 24 Annex 1: Project Design Summary (cont.) Output from each Output Indicators: Project reports: (from Outputs to component: Objective) A. Primary network roads . Periodic 1. Supervision reports 1. DGI and DRIs have the improved, road travel made maintenance completed every six months management capacity to safer, and road on 207 kilometers of the outlining progress on implement the project. management and primary road network. key indicators, and 2. DGI, DRIs and the road maintenance system 2. Traffic signals and actions to be taken to maintenance fund have the improved. signs put into place, and achieve goals. financial and human works to stabilize road 2. Midterm review. resources to fully benefit embankments 3. Final from studies and technical completed. implementation assistance. 3. System of funding completion report. 3. Procurement procedures put into place so that and bidding/evaluation/ users' fees finance all contract award requirements routine and some are met satisfactorily. periodic maintenance. 4. Government is committed to fully funding the road maintenance fund on a sustainable basis (user fees) and assuring that it performs as intended. B. Urban water supply 1. Water works in 1. DGI has the management system upgraded and Moutsamoudou, capacity to implement the expanded. Domoni, Ouani project. (Anjouan) and Fomboni 2. Local communities have (Moheli) rehabilitated the management capacity to and expanded. select and contract the 2. Cost-recovery private operator. system established. 3. Private operator (to be selected) has the financial and human resources to recover water tariffs. 4. Consumers are willing and able to pay for water services. C. Coordination among 1. Project implemented 1. DGI has the capacity to agencies responsible for smoothly, with no coordinate various actors. different sectors under the coordination problems. project successful. 25 Annex 1: Project Design Summary (cont.) Project Com ponents ISub I nputs: (budg et for Project reports: |(from Components to components: each component) Outputs) A. Transport US$5.9 1. Supervision reports |1. DGI and DRIs have the| every six months outlining management capacity to progress on key implement the project and indicators. procure the works, goods and services as planned. (a) Roads periodic US$4.4 and actions to be taken to 2. Adequate counterpart maintenance achieve goals. funds are available. (b) Road safety US$0.8 2. Midterm review. 3. Public sector equipment pool privatization proceeds as planned. (c) Engineering, studies and US$0.7 3. Implementation 4. Government is institutional strengthening completion report. committed to fully funding the road maintenance fund and assuring that it performs as intended. B. Urban water supply US$4.1 1. DGI has the (a) Urban water works US$3.0 management capacity to implement the project. (b) Engineering, studies and US$1.1 institutional strengthening C. Support to sectors and US$2.6 1. Project implementers program coordination have the financial and human resources to (a) General studies, expertise US$0.1 fully benefit from technical assistance. (b) Training US$0.9 2. FC meets its commitments (c) Technical assistance for US$0.8 to fund the project coordination coordination unit. (d) Logistical support for US$0.8 3. DGI has the management coordination capacity to implement the project and benefit from logistical support. D. Project preparation US$0.6 1. Government has the studies (under PPF) commitment and capacity to complete necessary preparatory work. 26 Table B: Key performance Indicators, Activities and Target Dates Indicators measured each year Initial During Project Implementation December 31 Unit Value 2001 2002 2003 2004 2005 ROAD SECTOR Road maintenance Fund Revenues from road user fee (fuel levy) (constant prices 2000). Million 200 336 372 408 432 468 KMF Expenditures dedicated to routine maintenance works (Local small contractors) Million 145 268 297 326 345 374 (constant prices 2000). KMF Road condition Good 69 62 50 45 133 211 Fair Km 290 268 228 210 194 188 Fair to bad 289 318 370 392 321 249 Periodic maintenance of roads Total National Km l l l 74- 74 35 URBAN WATER SECTOR Urban centers (Households served) Anjouan Moutsamoudou 25,000 25,000 | 25,000 | 31,000 | 43,000 43,000 Domoni inhabitants 12,000 12,000 | 12,000 12,000 | 16,000 25,000 Ouani 7,500 7,500 7,500 12,500 21,000 21,000 Moheli Fomboni 7,000 7,000 7,000 7,000 12,500 18,000 27 Initial Indicators measured each year Unit Value During Project Implementation December 31 2000 2001 2002 2003 2004 2005 Rural areas (Non-IDA financed, but part of multi- In % of donor programn) population Total National 23% 23% 23% 23% 23% 23% Grande Comore 11% 11% 11% 11% 11% 11% Anjouan 32% 32% 32% 32% 32% 32% Moheli 83% 83% 83% 83% 83% 83% INSTITUTIONAL STRENGTHENING Cost Private recovery in operator in Urban Water management and Cost Nil place by Jpaury 1, recovery systems July I January 1, 2003 2005 Setting up Setting up of Restructuring of MEEU Existing set of DGI by DRIs by up March 1, July 1, 2002 2001 28 Annex 2: Project Description Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project The IDA financed project is part of a large multi-donor infrastructure and environment program. The total amount of the program is estimated at US$52 million over an eight year period. Table A2. 13 details the program components by financing agency. The IDA financed project is detailed in the following sections. Component A: Transport US$5.9 million The transport component of the project will assist Comoros improve its roads maintenance, safety, and management through three subcomponents: national and regional roads periodic maintenance, roads safety, and institutional strengthening. Table A2.1 provides a summary of the Comoros road network. A detailed description of the subcomponents follows. Table A2.1 Comoros road network (kilometers) National Roads Regional Roads Total network Paved Unpaved Total Paved Unpaved Total Paved Unpaved Total Grande 209 0 209 148 58 207 357 58 415 Comore Anjouan 134 11 146 70 39 108 204 50 254 Mohdli 69 9 78 18 0 18 87 9 96 Total 412 20 432 236 97 333 648 117 765 In percent 95 5 100 71 29 1oo 85 15 100 Roads periodic maintenance subcomponent The periodic maintenance subcomponent will support periodic maintenance of the priority road network. This will complement the EU financed periodic maintenance and the routine maintenance financed by the road maintenance fund, within the large infrastructure and environment program. Specifically, the project will comprise: * Rehabilitation of earthworks, including patch works, pothole repair, local reinforcement, single-layer or double-layer pavement, resurfacing of gravel roads, and resealing. * Road shoulders maintenance and repairs, and maintenance and repairs of drainage works. * Maintenance of the roadsides, including clearing of drainage structures, and clearing and reshaping ditches. * Drainage improvement, including rehabilitation of drains and ditches and masonry works. A program involving all donors (IDA, EU, AFD, African Development Bank, and others) and a contribution from the road maintenance fund is envisaged covering a total of 218 kilometers on Grande Comore, 157 kilometers on Anjouan and 83 kilometers on Moheli. IDA will finance priority sections of the overall roads maintenance program. Table A2.2 and annex 4 map provide an overview. 29 Table A2.2 Roads covered under IDA-financed project (kilometers) Kilometers Percent of paved system Percent of total program of island nation of island nation Grande 113 32 17 52 25 Comore Anjouan 43 21 7 27 9 Moheli 27 31 4 33 6 Total 183 28 40 Implementation of this project will prevent further deterioration of the existing road network and contribute to establishing an effective road maintenance policy aimed at renewing roadway surfaces every ten to twelve years with permanent annual (minor) maintenance of roadways and related structures through contracts with small and medium-sized enterprises and contractors. Table A2.3 summarizes the costs of the IDA-supported roads maintenance project. Tables A2.9-A2.12 provide details of the works to be undertaken in each of the three islands. Table A2.3 Total cost of IDA-supported periodic road maintenance works KMF US$ Grande Comore 1,250,000,000 2,100,000 Anjouan 525,000,000 925,000 Moheli 400,000,000 675,000 Total 2,175,000,000 3,700,000 Programming of works. The works will be executed over three years, comprising roughly one year for Anjouan, one year for Moh6li and one year for Grande Comore. For each homogeneous section of road the works will be executed over a two-year period corresponding to the following two phases as follows: * Year n: Preparation of roadbed and related structures (leveling to eliminate puddle formation, and pothole filling). Repair of small drainage structures and preparation of related structures (verges and shoulders). * Year n+l: General surfacing, either one or two layers according to need, and finishing (signing, safety features, and the like). Roads safety subcomponent The road safety subcomponent will finance the installation of traffic signals and signs and works to stabilize road embankments. It will also strengthen the capacity of the executing agency in monitoring the road safety and enforcing the law. Studies, expertise and institutional strengthening subcomponent The studies, expertise and institutional strengthening subcomponent will finance a study of options for institutional setups for road maintenance, including privatization of regional road 30 maintenance centers and withdrawal of the state from labor contracting. It will provide technical assistance to DGI and DRIs to strengthen their role in planning and programming of road maintenance, management of contracts and supervision of works. In addition, the subcomponent will provide technical assistance to the road maintenance fund to improve its operations and financial management. A system of funding will be put in place so that fees from road users finance all routine maintenance and gradually contribute to financing of periodic maintenance. Government will prepare and transmit a Letter of Sector Policy acceptable to IDA prior to Board presentation. The technical studies to define the works will be carried out by specialized technical consulting fmns under contracts concluded in accordance with IDA procurement procedures and guidelines. The DGI and specialized engineering departments will supervise periodic maintenance and urban water works, with assistance from external specialized consultants when necessary under contracts of the same type as for the studies. Institutional organization. The DGI will be responsible for overall programming and execution of the works and the conclusion of contracts. DRIs (once set up), one for each island, will be responsible for monitoring works execution on individual islands. The road maintenance fund will finance routine road maintenance and will provide the counterpart funds for works. National or international contractors will carry out most of the works. Work will be done by force account in only a few instances (for example, for tasks which require lengthmen). The DGI will monitor and evaluate implementation progress. Evaluation will be based on financial management of the road maintenance fund and disbursements from the IDA Credit, indicators of physical progress of the project, and technical and financial indicators. The DGI will ensure that contracts are awarded and managed in accordance with IDA guidelines and procedures. In the final quarter of each year the DGI will update and adjust the road maintenance budget and program for a rolling period of five years. It will establish in that period, for year n+l, the program of periodic maintenance. It will also specify the preparatory works that must be completed in year n to support the year n+l periodic maintenance program (maintenance of drainage works, roadway repairs as and when required and the like). Component B: Urban water supply US$4.1million The urban water supply subcomponent will support the rehabilitation and extension of urban water infrastructure in Moutsamoudou, Domoni and Ouani on Anjouan (about 72,000 inhabitants) and Fomboni on Moheli (about 15,000 inhabitants). It is expected that the Agence Francaise de Developpement (AFD) will finance rehabilitation and extension of water systems in rural areas of Grande Comore, Anjouan and Moheli. The urban water supply under IDA financing will involve UNICEF and NGOs in information, sanitary education and communication campaigns to encourage people to participate in managing and maintaining the water systems and in paying for water services. Table A2.4 summarizes the costs of IDA-supported water works on the island of Anjouan and Moheli. Tables A2.9- A2.12 provide details of the works to be undertaken in each of the urban centers. 31 Table A2.4 Total cost of IDA-supported urban water supply works KMF USs Anjouan 1,200,000,000 2,180,000 Moh6li 350,000,000 620,000 Total 1,550,000,000 2,800,000 Institutional support and studies The institutional strengthening subcomponent will support technical assistance to strengthen management and operations of urban water utilities. A study of institutional and financial issues has been completed for project preparation and its recommendations will be used in developing an efficient, effective and sustainable water management and cost-recovery system. This subcomponent will also finance public consultations and public awareness raising activities to involve beneficiaries with decisions on project issues, assist them in selecting and managing a private operator, and gain acceptance of plans to charge for water. Table A2.5 shows total costs for the institutional support and studies subcomponent. Table A2.5 Costs of institutional support and studies for urban water works KW ~~ us$ Strengthening management and 110,000,000 200,000 operations of urban utilities and establishing billing and collection system (including supply of meters) Public consultations, awareness raising 110,000,000 200,000 activities, tariffs sensitization, sanitation education Other studies 82,500,000 150,000 Total 302,500,000 550,000 Component C: Support to the sectors and program coordination US$2.6 million This component will support technical assistance to strengthen coordination among agencies responsible for different sectors under the project. It will also provide technical assistance and logistical support for the project coordinating unit. Although FC will finance most of the expenses of the coordination unit, IDA Credit will assist with logistical support for coordination. This component will also support training on environmental management for government staff and others involved with the design, implementation, maintenance and operation of project activities. In particular, training is planned for the staffs of the DGI, DRIs and the Directorate General of the Environment. Training activities also involve two actions directed at the public. The first involves publication of overviews of project operations, including descriptions of activities, administrative procedures being followed, potential environmental impact of activities and impacts on the country's communities. The second involves school courses to educate students about the environmental issues of the project. Approximately US$50,000 of project funds have been allocated for training and awareness activities on environmental matters. 32 Project preparatory studies (under the PPF) US$0.6 million The Project Preparation Facility (PPF, to be refumded) has been financing activities to prepare the project for implementation, including feasibility studies, social assessment, environmental impact assessment, institutional and cost recovery study, preparation of detailed engineering designs, tender documents, and development of maritime, construction and urban development codes. 33 Table A2.6 Detailed cost estimates IDA-financed national paved road works: Grande Comore Lots (KMF) Drainage and Road marking Road links Kilometers Earthworks Paving masonry and other TOTAL RN3 Mbeni-carrefour RN5 42.0 22,008,000 319,422,711 100,059,474 41,509,816 483,000,000 Nioumadzaha _ RN3 Carrefour RNS 4.5 2,358,000 34,223,862 10,720,658 4,447,480 51,750,000 Nioumadzaha-Foumbouni___ RN4 Moroni-GTE (par Bahani) 19.6 10,437,145 158,468,250 23,269,556 14,713,938 206,888,889 RN4A Depot GTE-RN3 (Itsikoudi) 5.0 2,662,537 40,425,574 5,936,111 3,753,556 52,777,778 RN4B Depot GTE-RN3 (Mutuelle - 6.0 2,900,143 48,560,229 13,986,000 2,267,914 67,714,286 Koimbani) RR 101 RNI(Badamadji}RN4 7.8 4,341,814 54,471,857 15,606,686 3,579,643 78,000,000 (Bahani par Ntsou) ( RR 109 RN2(MdiN RN2 (par 10.8 4,836,000 65,283,600 19,357,200 5,323,200 94,800,000 Iconi,Ndroini) RR109A RRI 09(Ndroini)-Moindzaza 1.5 952,250 8,532,500 1,318,000 697,250 11,500,000 Mboini RR 126 RN4 (Dach6)-Mkazi-Vouni 3.6 4,650,943 26,013,909 5,853,086 1,024,920 37,542,857 RR127 RN4-MVOUNI 5.5 5,765,375 31,338,863 7,812,750 1,145,513 46,062,500 RR 128 Maoueni-pylone (vers 5.0 12,825,000 49,410,000 20,137,000 1,628,000 84,000,000 Moidja) PAM Route PAM 2.0 1,248,500 13,784,000 4,127,000 840,500 20,000,000 Total Grande Comore l l ll - 74,985,707 849,935,354 228,183,520 80,931,729 Total Grande Comore rounded to: 1,250,000,0004 34 Table A2.7 Detailed cost estimates IDA-financed national paved road works: Anjouan Lots (KMF) Drainage and Road marking and Road links Kilometers Earthworks Paving masonry other TOTAL RN21A Bretelle Ouani 1.5 1,347,600 6,933,000 6,286,200 1,033,200 15,600,000 RN22A Sima Bimbini 6.0 4,618,500 41,107,000 17,396,000 2,878,500 66,000,000 RN23 Moya Pomoni 6.0 5,512,043 50,997,130 13,011,391 2,479,435 72,000,000 RN23A RN 23-Kangani 4.5 4,134,033 38,247,848 9,758,543 1,859,576 54,000,000 RR 202 RN21 (M'Sakidjou)- 5.5 4,209,700 46,228,600 28,188,600 2,773,100 81,400,000 Chandra-Dindi__ _ _ _ _ _ _ __ _ _ _ _ _ _ RR202A Tsimbeo-RN21 2.6 5,362,314 33,192,194 13,966,457 1,336,177 53,857,143 RR 207 Sima Boungoueni 3.8 4,502,457 22,637,143 7,582,629 2,192,057 36,914,286 RR 208 Kavani-Milambani 1.0 477,000 5,957,500 1,598,000 467,500 8,500,000 RR 209 RN 23-Dzindri 1.0 1,565,667 5,668,000 6,277,333 489,000 14,000,000 RR210 M'RMmani-Comoni 7.0 5,961,000 43,280,000 29,914,000 2,845,000 82,000,000 RR 211 RN24 Dziani 4.0 4,309,000 21,892,000 7,751,000 1,048,000 35,000,000 Bouejou Total Anjouan 41,999,314 316,140,415 141,730,154 19,401,545 Total Anjouan rounded to: 525,000,000l 35 Table A2.8 Detailed cost estimates IDA-financed national paved road works: Moheli Lots (KMF) Drainage and Road marking and Road links Kilometers Earthworks Paving masonry other TOTALI RN 3 2 Fomboni-Hoani- 27.00 47,187,500 222,750,000 96,464,000 12,598,500 379,000,000 Miringoni_ Total Moheli | _47,187,500 222,750,000 96,464,000 12,598,500 Total Moheli rounded to: 400,000,000l 36 Table A2.9 Cost of water works: Moutsamoudou Cost (KMF) First stage of works Existing catchments Moutsamoudou Consolidation of existing structures (diversion canal, spillway) 2,000,000 Protection of catchment against runoff 1,500,000 Repair of existing meters 150,000 Installation of two new meters on the supply lines from the old distribution chamber 750,000 Construction of a wirenetting-topped enclosing wall 3,800,000 Houngouni Cleaning of structures and removal of deposits 300,000 Repair of existing meters 150,000 Construction of a wire netting-topped enclosing wall 3,400,000 Supply line Moutsamoudou Repair police station line 400,000 Houngouni Repair and maintenance of Sangani reservoir 1,750,000 Distribution system Rehabilitation of existing standpipes and construction of new ones (total standpipes: 30) 3,000,000 Search for leaks and repairs 16,000,000 Preparation of water-supply masterplan 27,000,000 Replacement of asbestos-cement lines in distribution system 41,000,000 Total 101,200,000 Contingencies 15percent 15,100,000 Total first stage 116,300,000 Second stage of works New catchment and new line Establishment of new catchment at Page 8,500,000 Supply and laying of a new supply line: 200mm diameter, L=2000m 52,000,000 Change in level of existing catchments. Installation of gravel prefilters and of a chlorination unit 10,000,000 at Moutsamoudou and Houngouni Installation of treatment facilities for the Page catchment 25,000,000 Rehabilitation of the existing distribution network (parts remaining in galvanized steel) 30,000,000 Construction of two new 500 cubic meter tanks 64,000,000 Installation of conduits and extension of the distribution network 53,000,000 Total 242,500,000 Contingencies 15percent 36,200,000 Total second stage 278,700,000 Grand Total 395,000,000 37 Table A2.10 Cost of water works: Ouani Cost (KMF) First stage of works Water balance, diagnostic study of supply system and of distribution network, masterplan 23,500,000 Installation of a chlorination unit on existing catchment with the necessary adjustments and 600,000 improvements Total 24,100,000 Contingencies 15 percent 3,600,000 Total first stage 27,700,000 Second stage of works First Phase New catchment 6,500,000 Supply and laying of a new supply line: 100/150 mm diameter, L = 2,200 meter 29,500,000 Installation of water-treatment system for new catchment (screen, sandcatcher, gravel prefilter, 13,000,000 chlorination) Construction of 200-250 cubic meter reserve storage tank 24,000,000 Supply and laying of a first part of the distribution mains, 80/100/125/150 mm diameter, L = 20,000,000 2,000 meter Construction of standpipes (10 in Ouani, 6 in Barakani, 4 in Gnantranga) 2,500,000 Secondphase Construction of reservoirs with a total capacity of 500 cubic meters 44,000,000 Supply and laying of a second section of water main 080/0100/0125/0150. L = 7.000 60,000,000 Supply and laying of secondary and tertiary distribution les 060/080, L= 9.000 meter 42,000,000 Total 241,500,000 Contingencies 15 percent 36,200,000 Total second stage 277,700,000 Grand Total 305,400,000 Rounded to 310,000,000 38 Table A2.11 Cost of water works: Domoni Cost (KMF) First stage of works Rehabilitation of existing catchment at Adjaho 2,000,000 Elimination of high point along line from Hapira spring 2,500,000 Provision of access trail to Hapira spring 8,000,000 Repair of 4 reserve storage tanks 3,000,000 Diagnostic study of present supply and distribution system 28,000,000 Repair/replacement of defective lines 24,000,000 Preparation of a water-supply Masterplan Total 67,500,000 Contingencies 15 percent 10,125,000 Total first stage 77,625,000 Second stage of works Development of a new catchment, supply and laying of a supply line - Mro Goucouni spring 186,000,000 solution - Domoni share New catchment and conveyance of water to serve Ngandzale 49,300,000 Rehabilitation of the seven reservoirs of Domoni 15,000,000 Rehabilitation of the existing distribution network 60,000,000 Storage and distribution of clean water for Ngandzale 34,000,000 Construction of 20 standpipes 2,500,000 Extension of existing distribution system 20,000,000 Total Mro Goucouni solution 366,300,000 Contingencies 15 percent 54,945,000 Total second stage Mro Goucouni solution 421,245,000 Grand Total Mro Goucouni solution 498,870,000 Rounded to 500,000,000 39 Table A2.12 Cost of water works: Fomboni, Moh6li Cost (KMF) First stage of works Existing Fomboni catchment Construction of new catchment on M'Rochiconi 58,000,000 An offtake in the dam including screen and line to the outlet from the dam (two offtake chambers) 360,000 Building of fence around the dam 2,400,000 Installation of a meter 300,000 Contingencies 15 percent 9,159,000 Subtotal 70,219,000 Fomboni supply line Inspection and repair of supply line (installation of air vent, emptying, repair, base 1000 ml) 25,200,000 Contingencies 15 percent 3,780,000 Subtotal 28,980,000 Storage facility Reservoir hydraulic equipment (valves and accessories)/Lump sum 3,000,000 Meter installation (I for each outlet) 600,000 Installation of disinfection equipment + prefilters 10,000,000 Fence around treatment + storage complex 2,400,000 Cleaning and removal of deposits 300,000 Contingencies 15 percent 2,445,000 Subtotal 18,745,000 Distribution system Installation of individual meters (CF 60,000 each) - beneficiary p.m. Rehabilitation of standpipes and construction of new ones 2,000,000 Location and repair of priority leaks 4,000,000 Burying of visible lines and connections (lump sum) 5,600,000 Replacement of old lines (500 m) 5,400,000 Contingencies /5 percent 2,550,000 Subtotal 19,550,000 Total first stage 137,494,000 Second stage of works Complete replacement supply line, length 4000 meters 75,600,000 Contingencies 15 percent 11,340,000 Subtotal 86,940,000 Storage Reservoir (base 500 cubic meters) 44,000,000 Installation of sandcatcher + chlorination 13,000,000 Contingencies 15 percent 8,550,000 Subtotal 65,550,000 Distribution system New networks: lines, connections, accessories and equipment of base system: 2000 meter, 80/100/125/150 23,300,000 millimeter diameter Installation of fire hydrants (base 5) 3,000,000 Contingencies 15 percent 3,945,000 Subtotal 30,245,000 Related works Access trail to catchment, length 4000 m (pozzolana type) 18,000,000 Contingencies 15 percent 2,700,000 Subtotal 20,700,000 Total second stage 203,435,000 Grand Total (first and second stages) 340,929,000 Rounded to 350,000,000 40 Table A2.13 blamic Federal Republic of the Comoros Multi-donor Infrastructure & Environnent Program Components Program Cost Summry EW AFD Other Donors IDA GOC Cooperation To be Financed Totd Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % A. Transport Sector Road Sector 9.8 * 66% 4.9 33% 0.2 1% - 15.0 IOOV° Port Sector 4.1 61% 2.6 390/% 6.6 100'° Airport Sector 0.7 * 12% 2.1 36% 3.1 53%Ko 6.0 100°/ Urban Streets 2.5 100% 2.5 100°/ Subtotal TranssportSector 14.6 48% 2.1 7% 5.7 19% 4.9 16% 0.2 1% - 2.5 8% 30.1 100% B. Water and Drainage Sector Urban Water 3.0 100%/o 3.0 1 0la Rural Water 0.7 * 12% 4.2 76% 0.7 12% 5.6 100°/ Urban Drainage 3.7 * 46% 1.8 22% 0.0 1% . 2.5 31% 8.1 1Oa/O Subtotal Water Sector 4.4 26% 6.0 36% 0.7 4% 3.0 18% 0.0 0% - 2.5 15% 16.6 100% C. Support to the Sectors Engineering, Studies & Expertise 2.6 96%/o 0.1 4% 2.7 100°0 Training 0.7 890/% 0.1 11% 0.8 100/ SubtotalSupporttotheSectors - - - 3.3 95% - 0.1 3% 0.1 3% 3.5 100% Program and Project Coorcination Technical Assistance forCoordination 0.6 100% 0.6 1OOV Expertise & Logistic support for Coordination - 0.9 100% - 0.9 1000/ Subtotal Program andProjectCoordnsti - - 1.5 100% - 1.5 100% BASECOST 19.0 37% 8.1 16% 6.4 12% 11.2 22% 0.3 1% 1.6 3% 5.1 10% 51.7 100% * Under EDF 9 41 Annex 3: Estimated Project Costs Annex 3 Islamic Federal Republic of the Comoros Infiastructure, Water & Environrnent Project Table A Components Project Cost Sunmmary (ISS Million) Project Components % % Total Foreign Base Local Foreign Total Exchange Costs A. Transport 1.5 3.5 5.0 70 44 B. Urban Water 0.8 2.6 3.4 76 30 C. Support to the Sectors & Program Coordination 0.3 2.1 2.4 89 21 Project Preparation Studies (under PPF) 0.1 0.6 0.6 90 6 Total BASELINECOSTS 2.7 8.7 11.4 74 101 Physical Contingencies 0.2 0.6 0.9 74 8 Price Contingencies 0.4 0.7 1.1 64 9 Total PROJECT COSTS 3.3 10.0 13.3 75 118 Note: Figures rnay not add up to total due to rounding (IS$ Million) Project Components Local Foreign Total lIDA ° Goods 0.1 0.5 0.6 0.5 4% Works 2.6 5.6 8.2 7.9 69% Services 0.5 2.1 3.0 2.0 17% Training 0.1 0.7 1.0 0.4 3% PPF 0.6 0.6 0.6 6% Total PROJECTCOSTS 3.3 9.5 13.3 11.4 100% Note: Figures ramy not add up to total due to rounding 42 Annex 3 Islamic Federal Republic of the Comoros Infrastructure, Water & Environment Project Table B Components Project Cost Summary (USS Million) °e % Total Foreign Base Local Foreign Total Exchange Costs A. Transport - Roads Periodic Maintenance 1.1 2.6 3.7 70 33 Road Safety 0.3 0.3 0.6 50 6 Engineering, Studies, Expertise & Institutional Strengthening 0.1 0.6 0.6 86 6 Subtotal Transport 1.5 3.5 5.0 70 44 B. Urban Water Urban Water Works 0.6 1.8 2.4 75 22 Engineering, Equipment, Studies & Institutional Strengthening 0.2 0.8 1.0 79 9 Subtotal Urban Water 0.8 2.6 3.4 76 30 C. Support to the Sectors & Program Coordination General Studies & Expertise to the Sectors 0.0 0.1 0.1 85 1 Training 0.1 0.6 0.7 91 6 Technical Assistance for Coordination 0.1 0.8 0.8 90 7 Expertise & Logistic support for Coordination 0.1 0.6 0.7 85 6 Subtotal Support to the Sectors & Program Coordination 0.3 2.1 2.4 89 21 Project Preparation Studies (under PPF) Preparatory Studies 0.1 0.6 0.6 90 6 Subtotal Project Preparation Studies (under PPF) 0.1 0.6 0.6 90 6 Total BASELINECOSTS 2.7 8.7 11.4 77 100 Physical Contingencies 0.2 0.6 .9 74T 8 Price Contingencies 0.4 0.7 1.1 64 9 Total PROJECr COSTS 3.3 11331 Note: Figures may not add up to total due to rounding 43 Annex 3 Islamic Federal Repuldic of the Comoros Infrastructure, Water & Environment Project Tanble C Components Project Cost Summary (KMFMIllion) (LiSS Mllion) %% Totai Foreign Base Local Foreign Total Local Foreign Total Exchange Costs A. Transport Roads Periodic Maintenance 611 1,425 2,035 1.1 2.6 3.7 70 33 Road Safety 172 172 344 0.3 0.3 0.6 50 6 Engincering, Studies, Expertise & Institutional Strengthening 47 303 350 0.1 0.6 0.6 86 6 Subotal Transport 830 1,899 2,729 1.5 3.5 5.0 70 44 B. Urlan Water Urban Water Works 336 1,009 1,345 0.6 1.8 2.4 75 22 Engineering, Equiprnnt, Studies & Institutional Strengthening 114 419 532 0.2 0.8 1.0 79 9 Subtotal Urban Water 450 1,427 1,877 0.8 2.6 3.4 76 30 C. SuWort to the Sectors & Program Coordciadon General Studies & Expertise to the Sectors 8 47 55 0.0 0.1 0.1 85 1 Training 36 349 385 0.1 0.6 0.7 91 6 Technical Assistance forCoordination 46 416 462 0.1 0.8 0.8 90 7 Expertise&LogisticsupportforCoordinaton 57 334 391 0.1 0.6 0.7 85 6 SubtotadSupporttotheSectors&ProgranmCoordination 147 1,146 1,293 0.3 2.1 2.4 89 21 Project Preparadon Studies (under PPF) Preparatory Studies 35 312 347 0.1 0.6 0.6 90 6 Subtotal ProjectPreparation Stutes (under PPF) 35 312 347 0.1 0.6 0.6 90 6 Total BASELINE COSTS I ,61 4,784 4 IIA 77 100 Physical Contingencies - 7- 354 02 0 0 Price Contingencies 292 620 912 0.4 07 1.1 64 9 Total PROJECIT COSTS 3,7 7,638 Note: Figures may not add up to total due to rounding 44 Annex 3 hlamic Federal Republic of Comoros Infrastructure, Water & Environrrnt Project Table D Components Project Cost Summary per bsland (US$ Million) Gd Comore Anjouan Moheli Total A. Transport Roads Periodic Maintenance 2.1 0.9 0.7 3.7 Road Safety 0.4 0.1 0.1 0.6 Studies, Expertise & Institutional Strengthening 0.4 0.2 0.1 0.6 Subtotal Transport 2 12 0 In% per sland 58% 24% 17% 100% B. Urban Water and Drainage Urban Water Works 1.9 0.5 2.4 Studies, Expertise & Institutional Strengthening 0.8 0.2 1.0 Subtotal Urban Water and Drainage 2. 0.8 3. In% perlsland 78% 22% 100% C Support to the Sectors & Program Coordination General Studies & Expertise to the Sectors 0.0 0.0 0.0 0.1 Training 0.2 0.3 0.1 0.7 Technical Assistance for Coordination 0.3 0.4 0.2 0.8 Logistic support for Coordination 0.2 0.3 0.1 0.7 Subtotal Support to the Sectors & Program Coordinati 0.8 1.1 0.4 2.4 Project Preparation Studies (under PPF) Preparatory Studies 0.2 0.3 0.1 0.6 Subtotal Project Preparation Studies (under PPF) * 0.2 0.3 0.1 0.6 Total BASELINECOSTS 3.-352 2. 11.4 Physical Contingencies 0. 0 Price Contingencies 0.4 0.5 0.2 1.1 Total PROJECT' COSTS 4.6 6.1 2.5 13.3 In% perlsland 35% 46% 19% 100% 45 Annex 3 Islamic Federal Republic oftbe Comoros Infrastructure, Water & Environment Project Table E Components by Financiers (In USS Million) IDA GOC French Cooperation Total Amount % Amount % Amount % iAmount/ A. Transport Roads Periodic Maintenance 4.2 95 0.2 5 - - 4.4 33.3 Road Safety 0.7 95 0.0 5 - - 0.8 5.7 Engineering, Studies, Expertise & Institutional Strengthening 0.7 100 0.0 - - - 0.7 5.3 Subtotal Transport 5.6 96 0.3 4 - - 5.9 44.3 B. Urban Water - - Urban Water Works 3.0 100 0.0 - - - 3.0 22.5 Engineering, Equipment, Studies & Institutional Strengthening 1.1 100 0.0 - - - 1.1 8.4 Subtotal Urban Water 4.1 100 0.0 - - - 4.1 31.0 C Support to the Sectors & Program CoorcInation General Studies & Expertise to the Sectors 0.1 100 - - 0.1 0.8 Training 0.2 28 0.0 - 0.6 72 0.8 60 Technical Assistance forCoordination - - 0.9 100 0.9 7.1 Expertise&LogisticsupportforCoordination 0.7 89 0.0 0.1 I1 0.8 6.0 Subtotal Supporttothe Sectors &ProgramCoordination 1.0 40 0.0 - 1.6 61 2.6 19.9 Project Prepradion Stuies (under PPF) - - Preparatory Studies 0.6 100 - - - 0.6 4.8 Total Project Costs 11.4 86 0.3 2 1.6 12 13.3 100 Note: Figures may not add up to total due to rounding 46 Annex 4: Cost Benefit Analysis Summary Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project (Component A: Roads Periodic Maintenance) This annex summarizes the results of the economic evaluation carried by SCETAUROUTE during project preparation (under PHRD financing) for all road works included in the priority road program. It also provides detailed economic justification for works proposed for IDA financing. Maps included in the PAD show the roads covered under the proposed project. They show also roads which have been rehabilitated or undergone periodic maintenance under the IDA- supported Third Highway Project. Tables A2.13-15 (annex 2) provide details of all road works on the three islands included in the project. Tables A4-A.8 show alternatives, net present values, and estimated economic rates of return (ERR) for these roads. Condition of the road network Table A4-A. I gives a summary of the estimated condition of the road network, evaluated by the DGTP in September 2000. At that time, the DGTP estimated that only 11 percent of the paved road network was in good condition, while more than 45 percent of the network was in poor condition, including 55 percent of paved roads on Grande Comore (because of the poor condition of the national roads), 30 percent of paved roads on Anjouan, and about 30 percent of paved roads on Moheli. Table A4-A.2 presents the specifics and condition of the sections of the network proposed to be financed by IDA. Table A4-A.1 Condition of the paved road network September 2000 (kilometers) National roads Regional roads Total Good Fair Poor Total Good Fair Poor Total Good Fair Poor Total Grande 0 89 120 209 27 43 79 148 27 132 199 357 Comore Anjouan 41 75 19 135 0 25 44 70 41 100 63 204 Moheli 0 42 27 69 1 17 0 18 1 59 27 87 Total 41 206 166 412 28 85 124 236 69 290 289 648 Percent lo 50 40 10o 12 36 52 100 11 45 45 100 Table A4-A.2 Condition of roads included in the IDA program September 2000 (kilometers) National roads Regional roads Total Good Fair Poor Total Good Fair Poor Total Good Fair Poor Total Grande 0 0 77 77 0 18 18 36 0 18 96 113 Comore Anjouan 0 12 6 18 0 15 10 25 0 27 16 43 Moheli 0 0 27 27 0 0 0 0 0 0 27 27 Total 0 12 110 122 0 33 29 61 0 45 139 183 Percent 0 S10 90 100 0 53 47 100 0 24 76 100 47 The IDA-financed section will comprise about 40 percent of the multi-donor program. It will cover about 28 percent of the overall national paved road network over the next five years, upgrading more than 75 percent of paved roads in poor condition and about 25 percent in fair to poor condition. Most of the IDA-financed works will take place on Grande Comore; the other donors are focusing on Anjouan and Moheli. Economic evaluation principles Estimated economic benefits of the road works are: * Reduction of transport costs for road users * Increase in the transport comfort level and road safety for the beneficiaries (not directly included in the Highway Design Model) * Better standardization of the level of service (not directly included in the Highway Design Model) * Preservation of the national road asset patrimony (not directly included in the Highway Design Model). The major benefits presented above have been quantified and calculated on the basis of the road user surplus model. In this model, the benefits are measured as reductions in vehicle operating costs (VOC) due to the project. Reductions in vehicle operating costs come about because of improvements in driving conditions which extend tire life, reduce need for spare parts and diminish fuel use per kilometer driven. In addition, improved roads generate indirect benefits, including transport time savings for people and improved access to more productive jobs, health care, schools, and other services. These benefits may be significant in the project area, but no attempt has been made to quantify them. They add to the economic benefits that have been calculated for the project. Methodology, road data and model The estimates of net present values and economic rates of return presented have been generated using the Highway Design Model, version 3 (HDM III). For a given road and schedule of maintenance activities, the model simulates the aging of the road and links it to costs of maintenance and changes in vehicle traffic counts and vehicle operating costs. In this way, two maintenance alternatives can be compared: the with project case (alternative 1) and the without- project case (alternative 0). When not already available at the DGTP, indicators of the road system, such as indicators of condition based on the international roughness index (IRI), length, curviness, type of construction, and assessment of general condition were collected in the field. The IRI was used mainly to evaluate the vehicle operating costs per section of road under alternatives 0 and 1. Economic costs and benefits were discounted over a 20-year period using a discount rate of 10 percent. The parameters used to run the HDM III, based on the technical choices for the design of proposed works, are presented and summarized in Tables A4-A.3 and A4-A.4. 48 Table A4-A.3 Highway design model parameters Maintenance works Unit Value (KMF) Local repairs Square meters 45,000 Waterproof treatment Square meters 900 Maintenance of shoulders and drainage Kilometers per year 370,000 ditches Table A4-A.4 With and without project parameters Maintenance With project Without project works Local repairs Repair 100 percent of the Repair 100 percent of the degraded degraded surface (cracks, surface, maximum 100 square potholes) meters per kilometer per year Maintenance of Maintaining drains, planting, Maintaining drains, planting, shoulders and repairing sidewalks and other repairing sidewalks and other drainage ditches activities activities Waterproof Waterproof treatment every ten No waterproofing treatment years In addition to DGTP having data on traffic counts, additional traffic counts were carried out for this analysis for all three islands in order to verify the level, structure and composition of traffic. Detailed information on traffic is presented in Table A4-A.6. Cost of works Cost estimates were made for partial rehabilitation and heavy maintenance works necessary to restore the network to an acceptable level of service. Estimates are based on actual data from recently awarded works contracts. Tables A2.11-13 present detailed cost estimates by island. All costs are net of taxes and relate to constant 2000 prices. The highway design model treats these as investment costs. The costs of periodic and routine maintenance needed to keep the road in acceptable condition following the works under the project are included in the model. The estimates used in the simulation were based on recent periodic and routine maintenance works contracts either undertaken by DGTP or contracted out to international and local contractors. Vehicle operating costs Basic data for the calculation of vehicle operating costs are summarized in Table A4-A.5. These costs are net of taxes and relate to constant 2000 prices. HDM III was adapted for Comoros, taking into account vehicle operating conditions (average life of vehicles, weight when empty, total weight in charge, average age of the vehicle fleet) that prevail in the country (see Table A4- A.7). 49 Table A4-A.5 Vehicle characteristics and unit costs (in thousand KMF) Cars Vans Trucks Heavy trucks Purchase price 3,720 5,200.00 9,000.00 11,950.00 Tires (per tire) 25.60 56.00 270.00 356.00 Maintenance, labor 4.70 4.70 9.20 9.20 (per hour) Crew (per hour) 0.00 3.10 4.40 4.40 Overhead (percent) 0.00 15.00 15.00 15.00 Interest rate per 15.00 15.00 15.00 15.00 year Consumables 12.00 23.00 20.00 35.00 Fuel per km (liter/km) VOC estimate 132-150 235-260 500-530 600-630 (KMF per kilometer) Fuel and oil (KMF per liter) Gas: 33 Gazol = 21 Oil = 2.5 Current traffic flows and forecasts of future traffic growth The road network has been divided into links (sections of roads with homogeneous traffic) to develop the reference model (base case, alternative 0). The reference traffic on a specific link is related to the average daily traffic counts prevailing in Comoros in early 1999. The forecast of future traffic flows involve three main elements: * Population growth, estimated to grow 3.6 percent per year over the next twenty years. * Passenger traffic growth, estimated to grow at 4 percent per year during the first five years of the simulation, and 3 percent for the remaining 15 years. * Goods traffic growth, estimated to be around 2 percent per year during the 20-year period. Economic evaluation of the project The economic analysis covers 2000-2020. The works are assumed to be completed by 2002, and roads fully functional in 2003. Project works per road (investments) are assumed to be completed in one year. The economic indicators calculated are the economic rate of return (ERR) and the net economic benefit discounted at a rate of 10 percent. A residual value of the investment (20 percent) has been assumed and taken into account in the ERR calculation. Box 50 A4-A.1 presents a summary of the results of the cost-benefit analysis. Details are presented in Table A4-A.9 for Grande Comore and Tale A4-A.10 for Moheli and Anjouan. Box A4-A.1 Potential economic benefits of the road works financed by IDA . Grande Comore. The roads periodic maintenance works program will likely generate an economic rate of return of 15-25 percent. The results of the analysis are consistent across links. This is particularly true for the sections proposed for IDA financing where an ERR above 25 percent is anticipated on about 60 percent of the sections (more than 70 kilometers out of 113 kilometers). * Anjouan. Although the results are less consistent than for Grande Comore, the roads periodic maintenance works to be financed by IDA will likely generate an economic return of 20-25 percent. * Moheli. The results are less certain for the program as a whole. However, the section proposed for IDA financing will likely produce an ERR of 10-15 percent. It is estimated that the minimum daily traffic necessary for the works to be economically justified is between 80 and 100 vehicles per day. Sensitivity of the economic evaluation Tables A4-A.10-1 I at the end of this annex present the various assumptions tested and their influence on overall economic rate of return. The main assumptions tested are changes in: (a) the investment cost (an increase of 20 percent and a saving of about 20 percent); (b) the maintenance cost of the sections which will be periodically maintained (an increase of 20 percent has been tested); and (c) vehicle operating costs (a 10 percent increase assumption has been tested). In addition, sensitivity of the traffic growth has also been analyzed. A variation of 30 to 40 per cent of the traffic growth rate results in a minor variation of economic benefits (in any case less than 5 percent). The economic rates of return of most of the sections of roads analyzed, and particularly those proposed to be financed by IDA, are fairly robust. In all cases tested, the projected economic rate of return remains above the opportunity cost of capital. 51 Table A4-A.6 Average daily traffic per road section proposed for IDA flnancing Traffic Road Itinerary km 4WD Truck Truck Ens Cars cars vans 2 Axles 3 Axles articul total RN 3 Foumbouni-Nioumadzaha 5 124 5 31 6 3 0 169 Nioumadzaha-Itsikoudi 31.5 93 1 It 9 4 0 118 RN 4 Moroni-Salimani 4.1 445 16 151 12 4 0 628 Salimani-Bahani 6.5 168 29 170 25 4 3 399 4 & Bahani-Itsikoudi 14 230 18 250 14 18 4 534 RN 4B Hopital-Koimbani-RN3 + Boueni 6 68 4 27 14 20 3 136 C 126 Dache-Mkazi 3.6 128 R Maoueni-Pylone 5 -R Itsandra-N'Tsoudjini-Bahani 7.8 1291 104 59 20 18 1 1493 127 Dache -Mvouni 5.5 == RR M'De-Iconi-N'Droini 10.8 109A M'Boueni-Serehini-Mouandza 1.5 PAM Hangar Pam-RN 4 towards Salimani 2 445 16 151 12 4 0 IA RN21-Ouani 1.5 129 28 318 41 0 0 516 tR20 RN 21-Chandra 5.5 >02A RN 21-Tsimbeo-Dindi 2.6 23 RN 24-Moya-Pomoni + Antenn 6 26 25 93 19 0 0 163 Kangani 1 M'Remani-Comoni 7 O tR20 RN 23-Dzindri 1 RR21 RN 24-Dziani-Boueleu 4 2A Sima-Bimbini 6 23 6 61 20 0 0 _ >07 _ Sima-Boungoueni 3.8 08 Sima-Milembeni I RN 32 Fmboni-Hoani-Miringoni 27 140 24 26 9 0 0 199 0. i Itsikoudi -M'Beni 10 202 34 108 7 7 1 359 Shaded figures based on extrapolated traffic counts: 100 52 Table A4-A.7 Vehicle characteristics and unit costs Cars Vans Trucks Heavy trucks Type of Vehicle 1 4 7 8 Carburant ESSENCE ESSENCE GAZOLE GAZOLE PTC (Tonnes) 1.4 3.3 5.00 12.00 Essieux equivalents (exp 4) .00 .01 .03 .25 Essieux equivalents (exp 2) .02 .13 .23 .85 Nombre d'essieux: ESS. N° I 1 I I I ESS. No 2 1 1 2 2 ESS. N°3 2 Charge utile (t) .00 .30 2.00 4.50 Coeff de train6e aerodynamique .45 .46 .70 .85 Maitre couple 1.80 2.72 3.25 5.20 Puissance active (CV) 30.00 40.00 60.00 100.00 Puissance en freinage (CV) 17.00 30.00 100.00 250.00 FRATIOO (REVETU) .268 .221 .253 .292 FRATIOO (NON REV) .124 .117 .099 .087 FRATIOI (REVETU) .000000 .000000 .012800 .009400 FRATIOI (NON REV) .000000 .000000 .000000 .000000 VIT Souhaitee (km/h. REV) 98.30 94.90 81.60 88.80 VIT Souhaitee (km/h. NON-REV) 82.20 76.30 71.90 72.10 Regime conv moteur (t/mn) 3500.00 3300.00 2600.00 1800.00 Vit. Max. rect. (mm/s) 259.7 239.7 194.0 177.7 Coefficient largeur .7400 .7400 .7300 .7300 Coefficient de Weibull .2740 .3060 .3040 .3100 Coeff. D'effic. Energet. 1.0000 1.0000 1.0000 1.0000 Ceff. Consommation 1.1600 1.1600 1.1500 1.1500 CoOt rechapage ( percent) 15.a 15.0 15.0 15.0 Volume usable (dm') .00 .00 4.30 7.60 Nombre de rechapages .00 .00 1.93 3.39 Const. Consom. Pneus .00 .00 .16 .16 Ceff. D'usure .00 .00 1.28 1.28 Const. Consom. Pieces 32.49 32.49 1.49 1.49 Coeff. Uni/pices detachees 13.70 13.70 251.79 251.79 Pi&es Uni. Limites 9.23 9.23 .00 .00 Const. MO entretien 77.14 77.14 242.03 242.03 Exposant MO entretien .55 .55 .52 .52 Ceff. Uni/MO entretien .00 .00 .00 .00 Utilisation du vehicule Nombre de passagers .0 .0 .0 .0 Conduite (heures/an) 350. 1600. 1625. 1500. Kilometrage annual 15000. 45000. 35000. 35000. Duree de vie (ann. es) 5. 6. 6. 6. Code d'amnortissement I 1 1 I Code d'utilisation 3 3 3 3 Taux d'utilisation horaire .50 .65 .60 .65 Nombre de pneus/vehicule 4 4 6 10 Coeff. Praticabilite 1.00 1.00 1.00 1.00 Types de vehicules I = petites voitures 2=voiture moyenne 3 = grosse voiture 4 = utilitaire 5 = car 6 = petit PL (ESS) 7 = petit PL (gazole) 8 = Pi moyen 9 = gros PL 1Io = PL articule Codes d'amortissement I = methode Deweille (duree variable) _ 2 = Duree de vie constante Codes d'utilisation I = Kilometrage annuel constant 2 = Nbr d'heures d'util const 3 = Utilil variable Types d'essieux I I I = essieu simple 2 = essieu simple, roues jumelees 3 = essieu tandem, roues jumelees 4 = essieu tridem, roues jumelees 53 Table A4-A.8 1DM simulations: Grande Comore Islamic Federal Republic of the Comoros Table A4-A.J. IHDMSimulations Grande Comore Discount rate: 10% IDA fnancedProgram: ilh W Section Initial Alternative Discounted conomic Rate Road Length MMi'M nL Length Bne st o Reurn in KFM millions in % LINK N301 MITSAM-CHEZANI 18. km ALTI ANDALTO 509.5 32.6 LINK N302: CHEZANI-MBENI 8. km ALTI AND ALTO 40.0 15.7 0j, . Bs S 00: 0 . < , 0 01 6 . : 0flS S0.rR 1 6. kin'; ig 30.1S;: i LINK N501: PANDA-DEMBENI 3. km ALT1 ANDALT0 5.1 >10% LINK N502: DEMBEN1-NIOUMA 14.km ALTI ANDALT0 -3726 <10% GROUP RN05: 16. km ALT I AND ALTO -32.5 <10% LINK R117: RN2-OUZIOINI 3. km ALTI AND ALTO 27.5 2513 GROUP RI 17: 3. km ALTI AND ALTO 27.5 25.3 .I km AITI 8 A . .2 13.9 LINK R300: REGION. SUD 28. km ALTI AND ALTO 67.4 13.9 GKOUPAUTR: 94. km ALlI AND ALTO 309.4 16 54 Table A4-A.9 HDM simulations: Moheli and Anjouan Islamic Federal Republic of the Comoros Table A4-A.9. HDM Simulations Mobeli/Anjouan Discount Rate: 10% IDA fmanced Program Section Initial Alternative Discounted conomic Rate Road Length % milink Length Benefits of Return in KFM millions in % LINK N311: FOMBONI-NIOUMA 31. km ALT I AND ALTO 82.4 >12 % GROUPN311: 31.km ALTIANDALTO 82.4 >12 % --& i N321 ' ktm ' ' ALTI A-TO g3,9 13.6 LINK N322: OUALLAH-NIOUMA 10. km ALTI AND ALTO -43.0 <0 GROUP N322: 10. km ALTI AND ALTO -43 0 < 0 LINK R302: WANANI-ITSAMIA 11. km ALTI AND ALTO -104.1 <0 RR302A 100% LINK 302A: KANGANI-HAGNAM 4. km ALTI AND ALTO -15.3 3.7 GROUP R302: 15. km ALTI ANDALTO -119.4 <0 LINK N211: MUTSAM,-BAMBAO 25. km ALTI AND ALTO 337.7 57.6 LINK N212: BAMBAO-DOMONI 8. km ALTI AND ALTO 70.1 45.8 RN2IA . US 0fl% JWC2 tj5 k.VU, . lSmO 4 4A4T 4S04 ' C6UPfN2i -' 34.km ALT! ANDALTO 40.6 56.2 RN22A 6 100% LINK. j22A: SM IM IN: E. . A6.--, ALT - 14. 23.3 dtOIJVN22A 6 km ALTt AND'ALTO 72.4 233 RN23 6 100% LINK N231: POMMY-MOA 6.bkm ALTIMA LT - 150i5 .,. 33.9 LINK N232: mOMONi-MREMANI 20.km ALTI AND ALTO 148'9 33.6 RN23 100% LINK N233: MREMANI-MOYA 16. km ALTI AND ALTO -161.0 <0 GROUP RN23: 42. km ALTI AND ALTO 138.4 > 12 RR202 5.S3 AWFcred tcoip)QfA(ne Ionllnc˘stacthi..c- 23.3 M202A 2b6r; tj + < - ~ 23.3 t2A8 - 216 . .,4 23.3 lAtill 44. Ai' * 233 AW 1 *,- Xi4V -55 23.3 55 Table A4-A.10. Economic rate of return sensitivity analysis results: Grande Comore Islamic Federal Republic of the Comoros Table A4-A.10. ERR Sensitivity Analysis Results- Grande comore ERR( in */.) Invest. +20 % Invest. -20 % M(a + 20°n VOC +10% ERRBaseCase N301 27.2 37.5 30.1 33.5 31.4 N302 12.5 209.0 13.6 16.1 148.0 Group N3 18.5 22.1 17.4 21.6 20.1 Group N4 49.3 53.7 43.9 55.0 51.4 X,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.1 41 74.5 19 N501 >10 0 42 27 >10 N502 <10 <10 <10 <10 <10 Group N5 <10 <10 <10 <10 <10 ,$.':L 0 at ' ''22gi' i 479.X2 t.00 0 2 U21000 I R200 13.2 20.0 14. 17.4 16 0 R300 10.1 16.3 10.9 13.9 12.7 Group "Others' 12.9 16.4 13.3 16.5 15.1 R117 20.3 30.2 22.5 26.3 24.3 56 Table A4-A.11. Economic rate of return sensitivity analysis results: Moheli and Anjouan Islamic Federal Republic of the Comoros Table A4-A.11. ERR Sensitivity Analysis Results- Mobhli/Anjouan ERR ( in */*) Invest.-4-20 % Invest. - 20 % M teac.VOC +10 % ERBaeCs | | ~~~(a) + 20 °/ RBaeCs N311 > 12 > 12 > 12 > 12 > 12 N322 <0 20 >20 > 20 >20 >20 57 Annex 4-B: Cost Benefit Analysis Summary Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project (Component B: Urban Water Supply) This annex summarizes the results of the economic evaluation carried out by SCETAUROUTE (under PHRD financing) during project preparation for urban water works included in the priority program in three urban centers in Anjouan and one in Moheli. It also provides detailed economic justification for works proposed for IDA financing. Table A4-B.4-6 shows estimated economic rates of return (ERR) for the water works under different assumptions. Program and project component objectives The main objective of the water component is to rehabilitate and expand urban water systems on the islands of Anjouan and Moheli. A low percentage of the population on these islands have access to clean water (Grande Comore: 30 percent, Anjouan: 45 percent, Moheli: 60 percent). The Agence Francaise de Developpement (AFD) with the European Union is supporting this work on Grande Comore. As part of the multidonor program, IDA would finance improvements in the urban centers of Moutsamoudou, Domoni and Ouani on the island of Anjouan, and Fomboni on the island of Moheli, where investments are expected to have maximum impact on human health and living conditions. Table A4-B.9 at the end of this annex provides details on the existing situation in each of these four urban centers. The investment costs per island and total costs of the urban water works program proposed for IDA financing are summarized in Table A4-B. 1. Details are provided in Tables A2.16-19 (annex 2). Table A4-B.1. IDA-financed water works program KMF US$ Anjouan 1,200,000,000 2,180,000 Moheli 350,000,000 620,000 Total 1,550,000,000 2,800,000 Table A4-B.2 provides estimates of population expected to be served in 2005 when the investment program comes to an end. It also provides estimates of average investment costs per city and per urban inhabitant. 58 Table A4-B.2 Population served and average investment costs, 2005 (2000 prices) Population Investment KMF per US$ per served (KMF) inhabitant inhabitant millions Ouani 21,000 305 14,524 26.4 Domoni 25,000 499 19,960 36.3 Moutsamoudou 43,000 395 9,186 16.7 Fomboni 18,000 341 18,945 34.5 Investment costs per habitant differ by locality, ranging from about US$17 in the more populated Moutsamoudu to nearly US$37 in Domoni, with fewer inhabitants. Because of the higher investment costs per person in Domoni and in Fomboni, it will be difficult to fully recover the investment costs through user charges, given the need to keep tariffs affordable. Economic evaluation Two analyses of urban water works were carried out, a least-cost analysis and a cost-benefit analysis. The least-cost analysis, which is based on engineering studies, confirms that the proposed approach is the least-cost, technically viable solution for each urban area. All the designs proposed rely on simple and well-tested technologies to pump, treat and distribute treated water through standpipes and house connections. The cost-benefit analysis compares the costs and benefits of the proposed urban water works over the construction period and for its expected economic life. Two scenarios are presented: one for an expected project life of 20 years, and the other for an expected life of 30 years. All costs and benefits are expressed in constant mid-2000 prices. All investment and operation costs are net of import duties, taxes and subsidies. The calculations do not include shadow-prices for wages for unskilled labor nor of prices of foreign exchange. Tables A4-B.4 and A4-B.5 summarize the results of the analysis. Table A4-B.8 provides details on the basic data used for the analysis. Assumptions usedfor the cost-benefit analysis The analysis uses the incremental costs of the IDA-financed project, presented in Tables A4-B.1 and A4-B.2. Only the incremental consumer payments for providing treated water to the inhabitants of the four urban centers where the works will be implemented have been quantified. Based on the financial analysis (annex 5), the model tests several scenarios regarding cost recovery levels to estimate the revenues generated after the construction phase. Estimates of levels of revenues generated through user charges are based on an affordability analysis, assuming households can afford a maximum of 5 percent of their monthly household incomes for water. The monthly minimum household income (MMHI) in Comoros has been estimated to be about KMF 25,000 per month for a household of seven. The monthly average household income 59 (MAHI) in Comoros has been estimated to be about KMF 60,000 per month for a household of seven. Table A4-B.8.gives a summary of water consumption anticipated for both regular and standpipe consumers. Table A4-B.3 summarizes the results of the analysis, showing investment costs, anticipated revenues generated for different percentages of household income spent on water, and the expenditures recovered (operation and maintenance and depreciation of the existing and rehabilitated systems) (for details on expenditures see annex 5, financial analysis for the urban water subcomponent). The expenditures presented in Table A4-B.3 exclude the long and medium-term debt servicing charges and the investment costs for extension of the networks. Table A4-B.3 Investment costs, anticipated annual revenues, and annual expenditures for operations, maintenance and depreciation Investment Annual revenues generated given percent of Expendi- eosts minimum household income' (millions YCW tures Total aZ11o (millions Ouani 305 58.1 67.7 77.4 87.1 96.8 25.3 Domoni 499 68.0 79.3 90.7 102 113.3 62.9 Moutsamoudou 395 131.3 153.1 175.0 196.9 218.8 90.7 Fomboni 341 35.6 41.6 47.5 53.4 59.4 26.8 1/ Revenues generated for the operator, for water set at prices to cost varying percentages of minimum household income (in KMF millions). 2/ Percentage of monthly minimum household income spent on water. Economic rate of return for urban water works Economic rates of return have been calculated (based on the financial benefit, the only benefit quantified) for the urban water works proposed for Ouani, Domoni, Moutsamoudou, and Fomboni for a 20-year operational life and a 30-year operational life for various assumptions of percentages of household income people spend for water. Table A4-B.4 summarizes the results of the analysis for the 20-year period; Table A4-B.5 summarizes the results for the 30-year period. 60 Table A4-B.4 Economic rates of return for urban water works (economic life of investment of 20 years) Percentage of monthly minimum household income spent on water Economic rates of return (percent) Ouani 8.7 12.6 16.2 19.7 23.1 Domoni <0 <0 1.1 4.7 7.9 Moutsamoudou 8.1 14.8 20.9 26.6 32.3 Fomboni <0 <0 1.9 4.7 7.2 Table A4-B.5 Economic rates of return for urban water works (economic life of investment of 30 years) Percentage of monthly minimum household income spent on water Economic rates of return (percent) Ouani 10.1 13.6 16.9 20.2 23.4 Domoni <0 <0 3.7 6.7 9.4 Moutsamoudou 9.6 15.6 21.3 26.9 32.4 Fomboni <0 1.8 4.4 6.7 8.8 It is clear that the investments in Moutsamoudou will generate far higher rates of return than those in the other three urban centers. This is because in Moutsamoudou the fixed investment costs are spread over far more households. Thus the revenues raised are much higher, even though each household pays the same fraction of its income for water. Table A4-B.6 presents the estimated economic rates of return for the four urban centers for 20- year and 30-year project operational lives, assuming that people in Anjouan and Moheli are willing to pay 4.5 percent of their incomes for water. Table A4-B.6 Economic rates of return for urban water works, assuming households pay 4.5 percent of their incomes for water (economic life of investment of 20 and 30 years) Ouani 19.7 20.2 Domoni 4.7 6.7 Moutsamoudou 26.6 26.9 Fomboni 4.7 6.7 In summary, this table shows that the investments in Ouani and Moutsamoudou are economically justifiable, since the returns exceed the estimated 10 percent cost of capital for Comoros. For Domoni and Fomboni the investments costs are proportionally higher because of the backlog of 61 investment in the water catchment, treatment and distribution. Still, the investments in Domoni and Fomboni can be justified on the basis of benefits that have not been quantified, such as improved human health (Comoros has experienced repeated outbreaks of cholera). Sensitivity of the economic evaluation Table A4-B.7 presents the various assumptions tested and their influence on overall economic rate of return. The main assumptions tested are changes in (a) investment costs (an increase of 10 percent, 20 percent and a saving of about 10 percent, and 20 percent have been considered); and (b) the percentage of the monthly minimum household income used to pay for household monthly water consumption. In the cases of Moutsamoudou and Ouani, the economic rate of return of the works are fairly robust. In all cases tested, the projected economic rates remains above the opportunity cost of capital. In the cases of Domoni and Fomboni, other nonquantified benefits would justify the investments. 62 Table A4-B.7 Results of sensitivity analysis: tests on changes in investment costs Table A4-B.7.. Results Sensitiuity Analysis - Tests on Inwestment costs ERR (in %) o i ~~~~~~20 years 30 years -20% - -10% +10% / +20% -20%0/ -10% +100/% +200/o 3% 10.22% 7.4% . 1. l.5/ 90 a 3.5% 16.5% 14.4% 11.1% 9.8% 17.2% 15.2% / 12.2% 11.1% R 4% 20.8% 18.3% 14.5% 13.0/o 21.2% 18.8% 15.3% 13.90/o O 4.5% 25.0%/ 22.00/o 17.7% 16.0% 25.2% 22.4% 18.3% 16.7% 5% 29.1% 25.7%/o 20.8% 18.90/o 29.2% 26.0% 21.2% 19.4% 3% <0 <0 .<0 0 <0 <0 < a 3.5% <0 <0 <0 1.4% 0.6%0o <0 <0 ; 4% 3.4% 2.1% 0.1% <0 5.6% 4.6% 4 3.0% 2.3% 4.5% 7.5% 6.00 3.6% 2.7% 9.1% 7.8% 5.8% 5.00/ 5% 11.1% 9.4% 0 6.7% 5.6% 12.2% 10.7% 8.4% 7.4% _ 3% 11.3% 9.6%0 . 6.90/c 5.8% 12.5% 10.90/c 8.5% 7.6% 1 3.5% 19.1% 16.8%0/ 13.1% 11.7% 19.6% 17.4% 14.1% 12.8% * 40% 26.4% 23.3% 18.8%/ 17.0% 26.6% 23.7% 19.3% 17.6%/ E 4.5% 33.5% 29.7% 24.1% 22,00/c 33.6% 29.8% . 24.4/ 22.3% t 5% 40.5% 35.90/c 29.3% 26.8% 40.5% 36.00/c 29.5% 27.00/c 3% 7 <0 / -;v<0 <0 <0 <0 <0 <0 *o 3.5% 0.8% <0 <0 <0 3.5% 2.6% 1.1% 0.5% 4% 4.3% 3.00/ 1.0% 0.1% 6.4% 5.3% 3.6% 2.9% OT 4.5% 7.4% 5.90/o 3.6% 2.6% 9.0% 7.7% 5.8% 5.00/o 5% 10.3% 8.6% 6.00/o 4.9% 10.3% 10.0% 7.8% 6.9% 63 Table A4-B.8 Basic information for the calculation of the economic rate of return Population Water consumption (cubic meters per day) Annual costs in millions KMF Salaries of Total without Localities served Exssintandpost slre Cat. (85 1.) Cat. (20 1.) Other cons. Total Operations Maintenance Debt service Depreciation standpost (2005) Toa prtosMitnneDb evc ercainnetwork Totaletenantt Ouani 21,000 1,082 170 195 1,447 16.9 4.7 9.7 3.8 21.7 56.8 5.4 51.4 Domoni 25,000 1,100 230 340 1,670 38.5 13.5 15.9 10.9 35.5 114.3 10.8 103.5 Moutsamoudou 43,000 2,195 345 760 3,300 53.7 20.5 12.6 16.5 28.1 131.4 18.0 113.4 Fomboni 18,000 612 198 5 815 17.6 5.1 11.0 4.0 24.3 61.9 6.1 55.8 Minimum price of watei Price of water consumed ir Minimum price for water Percentage of revenues (KMF/m3) percent minimum income (KMF/m') Standpipe Others Standpipe Others Standpipe Others Standpipe Others Ouani 185 97 3.1 percent 2.9 percent 175 98.7 2.9 percent 2.9 percent Domoni 298 170 5.0 percent 5.1 percent 300 169.5 5.0 percent 5.0 percent Moutsamoudou 237 94 4.0 percent 2.8 percent 179 101.0 3.0 percent 3.0 percent Fomboni 272 188 4.6 percent 5.6 percent 311 175.4 5.2 percent 5.2 percent ,y. Annex 4-B Appendix Description of the water systems in the urban centers involved in the project 1. Anjouan Moutsmoudou-Mirontsi-Page L'ensemble de l'agglomeration groupera une population de 43 000 habitants en 2005. C'est la principale de l'lle. C'est un centre commercial anime par un port et la presence d'un grand marche. L'alimentation en eau de l'agglomeration souffre de plusieurs problemes: Insuffisance d'eau au niveau des captages, qualite de 1'eau et etat du systeme d'alimentation. 1. Les ressources en eau Les eaux de surface alimentent l'agglomeration apres avoir subi un traitement sommaire au niveau des deux captages. Le captage sur le Moutsamoudou (+197 meters) est constitue d'un seuil en beton et d'un canal de prises A la stabilite menacee (affouillement). L'eau captee est de qualite mediocre compte tenu des matikres en suspension. Le deuxieme captage sur le Mro Hougouni (+382 meters) au debit relativement faible (debit d'etiage inf6rieur au 15 liters per second) souffre d'tun ensablement du bassin de decantation et de nombreuses pertes d'eau dues A l'infiltration par le fond non etanche. Les acces totalement libre aux deux captages et zones environnantes favorisent la pollution. La qualite de l'eau,surtout en periode des crues est tres mauvaise d'oui des maladies d'origine hydrique (typhoYde, hepatite virale). Les besoins en eau des usagers A l'horizon 2005 (environ 4,700 cubic meters per jour) depassent de loin le debit capte. 2. Traitement Crompose d'un degrilleur et d'un dessableur pour les deux captages. Les unites de chloration installees en aval de chacune des reserves de stockage de l'eau sont toutes hors d'usage. 3. Adduction L'ancienne adduction des annees 50 A partir du premier captage (Mro Moutsamoudou) est composee de deux departs, le premier en acier galvanise (0102/114 mm) et le second en fonte (0200 mm) dont la suite est composee de fonte (0150 et 100 mm) et se termine par une conduite en acier (080 mm). La deuxieme antenne A partir de ce captage est en fonte (0200 mm) equip6e d'un compteur hors d'usage. Elle se poursuit par un 0150 jusqu'au reservoir de stockage puis apres par un 0100. A partir du deuxieme captage, le reseau, aussi equipe d'un compteur hors d'usage, est en fonte (0150) jusqu'au reservoir de stockage. Il se poursuit par un 0100. 4. Stockage Pour les trois etages de pression le stockage est assure par des reservoirs en beton poses au niveau du sol ou semi-enterres. L'etage haut (+292 m) comprend 2 reservoir, 1'ancien (25 mi3) et le 65 nouveau (500 mi3). L'ancien est en mauvais 6tat, il fuit. Le nouveau n'a plus de portes pour la salle des vannes , il fuit au niveau des joints des conduites. Les compteurs depart et arrivee sont hors d'usage. L'unite de chloration ne comprend pas d'equipement. L'etage moyen est equipe d'un reservoir de 500 m.3 Il presente les memes defauts que le precedent. L'etage bas est compose d'un "nouveau" reservoir (820 m3) a la cote +98 m et de l'ancien reservoir (500 m3) a la cote +75 meters. II est en tres mauvais etat. 5. Distribution. Le maillage principal est constitue de conduites en acier galvanise de 0150 a 050 meters per minute et de conduites en amiante-ciment en 060 meters per minute. II existe des ramifications dont le diametre varie entre 40 et 150 mm qui sont toutes en acier galvanise a l'exception des 060 mm qui sont en amiante-ciment. Les branchements des usagers sont en acier galvanise de 021/26 meters per minute. Des bornes fontaines equipent les quartiers peripheriques. Il n'existe pas de systeme de controle ou de comptage des eaux. L'etat des conduites et les conditions dans lesquelles se fait la distribution font qu'il y a enormement de pertes et de gaspillage de l'eau. 6. Le projet. * Optimiser les quantites d'eau retirees en ameliorant l'etat des retenues. Ajouter une nouvelle source de captage. - Refection et rehabilitation des conduites d'adduction et de desserte. - Installer les compteurs sur les branchements, rehabiliter les bornes fontaines * Ameliorer la qualite de l'eau livree par traitement physique et chimique. * Rehabiliter et augmenter les unites de stockage (reservoirs). * Etablir deux etages de pression pour 1'ensemble de I'agglomeration. Ouani Le centre urbain de Ouani groupe au niveau de l'alimentation en eau les centres voisins de Barakani et Gnatranga. Ca representera une population desservie en 2005 de quelques 21,000 habitants. L'agglomeration ne re,oit pas 1'eau en quantite suffisante avec le systeme existant. 1. Les ressources en eau L'alimentation se fait a partir d'un captage sur la riviere Patsy (+230 meters) prevu pour un debit de 25 cubic meter per hectare ce qui est nettement insuffisant (equivalent a un maximum de 33 liters per jour par habitant). 2. Le traitement Il n'existe aucune forme de traitement. 66 3. Adduction Depuis le captage partent deux conduites 0 102/114 meters per minute, en mauvais etat (datent de 1962) avec beaucoup de pertes dues a une corrosion poussee et a une capacite r6duite due aux d6p6ts de solides. 4. Stockage Est compose de deux reservoirs, un de 160 rn3 pour la ville de Ouani, 1'autre de 100 cubic meters pour les deux centres voisins. Ils datent tous les deux de 1962. Ils sont en tres mauvais etat et presentent plusieurs fuites le long des parois. 5. Distribution Elle date aussi de 1962 et couvre pratiquement l'ensemble du centre ville. Elle est faite par l'intermediaire d'un reseau ramifie en acier galvanise qui irrigue environ 65 percent de la population. Ces conduites ont ete posees de facon desordonne sans tenir compte du maillage de l'agglomeration. Elles sont en mauvais etat, corrosion, agressivite physique (parties non enfouies), colmatage. 6. Le projet * Installation d'une unite de traitement de l'eau, physique et chimique. * Mise en place du systeme de conduites principales et des reseaux secondaire et tertiaire. Domoni, Ngandzale La population de ce centre, un des plus anciens des Comores est estimee a environ 25,000 habitants en 2005. C'est un centre administratif et commercial qui regroupe quelques petites industries et de nombreuses distilleries d'ylang-ylang. 1. Les ressources en eau La ville est alimentee actuellemnt A partir de trois sources: les rivieres Mro Adjaho (debit tres faible), Mro Jomani et la source souterraine de Papani. A Adjaho, la prise d'eau est faite directement fans la riviere dans un bassin derriere une retenue. L'ensemble des installations est en mauvais etat. A Mro Jomani, la prise est formee de trois captages qui peuvent fournir 120 liters second en periode d'etiage. Le debit reste limite a cause de la presence d'un point haut sur le reseau de distribution. A Papani qui sert exclusivement A la desserte de Domoni Sud le d6bit d'etiage est de l'ordre de 150 liters per second. L'ensemble des ressources est insuffisant compte tenu du mauvais etat des captages (nombreuses pertes) et du faible debit des sources. 2. Le traitement. L'eau qui alimente l'agglomeration et ne subit aucun traitement et reste A l'etat brut. 67 3. Adduction Elle est constitu6e a partir de Adjaho par une conduite de 1,200 ml en acier galvanise 0150 meters per minute. 4. Stockage II est assure par sept reservoirs de differentes dimensions (1 de 300 m3, 2 de 250 m3, 1 de 150 m3, 1 de 100 m3, 2 de 50 r3). Le reservoir de 300 m3 a fait l'objet d'une rehabilitation en 1997 et est en relativement bon etat, les autres sont en tres mauvais dtat (fissures .. . etc.). 5. Distribution Elle se fait generalement directement chez les usagers a partir de branchements prives. Pres de 90 percent des foyers desservis sont branches. 6. Le projet * Rehabilitation des captages existants. * Suppression du point haut de l'adduction principale. * Reparation et remplacement des conduites defectueuses. * Amenagement d'un nouveau captage sur le Mro Goucouni. * Pose d'une conduite d'adduction. * Rehabilitation des sept reservoirs. * Rehabilitation et extension du reseau de distribution et mise en place de bornes fontaines. 2. Moheli Fomboni La capitale de I'ile ainsi que les deux agglomerations Bandar Salama et Djoiezi y attenantes representent une agglomeration d'environ 18,000 habitants a l'horizon 2005 alimentes par un reseau d'adduction cree vers les annees 60. 1. Les ressources en eau Le captage sur la riviere M'Rochiconi est precaire. Il est constitue d'un chenal provisoire. 2. Le traitement L'eau est livr6e brute. Elle ne supporte aucun traitement. 3. Adduction En mauvais etat necessite la suppression de nombreux point hauts et le remplacement des parties defectueuses (corrosion principalement). 68 4. Stockage Se fait par l'intermediaire d'un seul reservoir mal equipe (pas de regulation de l'apport d'eau et de controle au depart ...etc.). 5. Distribution II est constitue da canalisations de differents materiaux qu'il y a lieu d'uniformiser. I1 presente de nombreuses fuites sur des sections defectueuses. De nombreuses sections ne sont pas enfouies. I1 ne comporte pas de compteurs individuels. 6. Le projet. * Amenagement d'un nouveau captage sur le M'Rochiconi. * Remplacement de la conduite d'adduction. * Equipement du reservoir (vannes, compteur, accessoires ... etc.). * Construction d'un nouveau stockage (500 mi3). • Rehabiliotation du reseau de distribution existant et creation d'un nouveau maillage. 69 Annex 5: Financial Summary Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project (In US$ Million) I BIPLFM4NTATION PERIOD T 2002 11 2003 11 2004 11 2005 11 2006 Total Financing Required Project Costs Investment Costs 1.5 3.4 4.2 3.3 0.9 Recurrent Costs Total Project Costs 1.5 3.4 4.2 3.3 0.9 Total Financing 1.5 3.4 4.2 3.3 0.9 Financing IDA 1.2 3.1 3.9 3.0 0.5 Gowernment Road Mintenance Fund 0.1 0.1 0.1 French Cooperation 0.3 0.3 0.3 0.3 0.4 Others Total Project Financing 1.5 3.5 4.3 3.4 0.9 70 Annex 5-A: Financial Analysis of the Road Maintenance Fund Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project (Component A: Roads Periodic Maintenance) Road maintenance needs Because of limited resources for road maintenance and poorly managed road maintenance programs and road funds, Comoros' road network is deteriorating. Much of the network now requires expensive rehabilitation rather than maintenance. In 1999 it was estimated that the funds allocated for road maintenance amounted to no more than 50 percent of the needs. The situation is no better for urban streets. In 1998 approximately KMF 264 million (US$650,000 equivalent) were allocated for road maintenance, including rehabilitation. In 1999 KMF 270 million were budgeted for road maintenance. However, only KMF 205 million were made available to the DGTP, compared with an estimated KMF 525 million required for adequate maintenance. In 2000 the situation has become even worse because the economy has been contracting and the political situation has been uncertain. Road maintenance financing Since 1991 road maintenance has been financed from a road maintenance fund established under Law 91-007 authorizing the fund as an extra budgetary account of the treasury of Comoros. Until late 1993 users' fees collected per liter of petrol generated some KMF 475 million per year, which was adequate for road maintenance. Since 1994 the road maintenance fund has had a major source of revenue (excluding eventual budget contributions and supplementary budgets), the fuel tax (taxe unique sur les produits petroliers, TUPP). Since Law 0911-011/PR took effect, 10 percent of the fuel tax has been allocated to the road maintenance fund. An advance payment of KMF 22 millions is made each month. At the end of the year, the amounts are regularized, depending on the actual amount of the fuel tax collected. Figure A5-A.1 below presents the actual annual levels of funding and expenditures compared with estimated requirements for routine and periodic maintenance and contributions for rehabilitation works. 71 Figure A5-A.1 Road maintenance fund receipts, expenditures and required funding 1993-2000 R| RadMabtnanc Fund 19"32M00 In KFM mUons 580 480 [400 350 300 250 200 o SO 100 1993 1994 1995 1996 1997 1998 1999 2000 | ...U.aExpenditues Funding Requred | The existing mechanism of road maintenance financing, based primarily on a fixed contribution from the fuel tax, seems to be no longer generating the resources required for adequate road maintenance and is not serving the objective of establishing a financially sustainable road subsector in Comoros. Past road maintenance expenditures Given available resources, the DGTP and the road maintenance fund have concentrated on carrying out routine maintenance. This has been at the expense of important periodic maintenance, leading to the current need for rehabilitation. Table A5-A.1 presents annual road maintenance expenditures by island during 1995-2000. This shows clearly the overall decline in road maintenance expenditures starting in 1998 and Anjouan's decreasing share due to the political situation. 72 Table A5-A.1 Road maintenance actual expenditures by island, 1995-2000 199_ 1996 1997 199| 19t9 2000 (KMF) % of (KW) % of (KWF) % of (KMF) % of (KAIF) % of (K) % of total total total total total total DGTP 53.6 22 54.4 22 99.9 48 90.0 30 107A 44 19.4 15 Grande Comore 79.0 33 105.6 42 77.3 38 102.3 33 73.9 31 72.8 57 Anjouan 63.3 27 52.5 21 0.0 0 59.4 20 2.9 1 0.0 0 Mohili 42.7 18 39.0 15 28.6 14 50.4 17 58.5 24 36.5 28 Total 238.6 100 251.5 100 205.S 100 302.1 100 242.7 100 128.7 199 Figure A5-A.2 Road maintenance actual expenditure by island, 1995-2000 Road Maintenance Spnditurs | lIb KFM millions 350.0 300.0 250.0 200.0 160.0 100.0 50.0 1996 996 1997 1998 1999 2000 I.DGTP Grande Conmxe Anjouan bihe I Figure A5-A.3 shows the total expenditures of the road maintenance fund during 1995-2000 and the main categories of expenditures. Clearly, the share of the road maintenance fund devoted to salaries, overhead, and general management expenditures has grown substantially while the share for actual roads works has declined. The expenditures going to small and medium construction companies has fallen by half between 1995 and 1998. Table A5-A.2 at the end of this annex provides further details. 73 Figure A5-A.3 Road maintenance fund evolution of expenditures, 1995-2000 Road Maintenance PFud- Eolubon of main pEnditures 172 2000 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 78 1999 1998 ___ ____- 1996 100 1995 50.0 100.0 150.0 200.0 250.0 300.0 In KFM mililons Igoutsource labor goutsource road works C spare parts biturren 13 fuel * cerrnt salaries costs [3 other expenditures Note: Numbers in red are index values for outsource labor and works, with 1995=100 Key issues The key issues of road infrastructure in Comoros are to (a) establish financing mechanisms to ensure a sufficient, timely, stable and secure flow of funds for maintenance of roads and urban streets; (b) create a system of independent management for the road maintenance fund; (c) base resource allocation on economic evaluation; (d) reduce the unit maintenance cost of the network; and (e) improve road safety. Proposed reform of roads and urban streets maintenance financing It is proposed to restructure the existing road maintenance fund and introduce a sustainable road maintenance financing system based on road user charges (as it used to exist prior to 1994) set at levels to generate sufficient resources to cover routine, and gradually periodic maintenance of roads and urban streets and a contribution for the rehabilitation of urban drainage works. Under the proposed new system, the existing contribution from the fuel tax as a source of funds for roads maintenance would be replaced by: (a) a contribution from the vehicle ownership charge (fixed cost to use the network); and (b) an increasing road user fee (redevance d'usage) covering the variable costs of using the network. The road user fee will be paid monthly, directly from the SCH to the road maintenance fund account, based on the actual quantities of oil products (gas and diesel used for transport) sold in the country. The charges would apply to all road users. 74 Simulations show that the value of the proposed road user charges are insignificant, comprising about 2 percent of vehicle operating costs for cars and 3 percent for trucks. The benefits for road users from improved road maintenance in terms of reduced vehicle operating costs would well exceed the user charges. An awareness-raising campaign explaining the uses and benefits of the new charges will be carried out at the time the new system is introduced to help road users understand its importance. In the meantime, the proposed legislation should be prepared and presented for official approval. On the basis of the proposed reforms, indicative financial cash flow projections have been developed in line with the proposed financial adjustments (see Table A5-A.3). Financial forecasts were built on demand projections and assumptions for user fees and contribution from the vehicle ownership charges. Road user charges have been estimated to reach levels to fully meet road maintenance needs (full routine needs, and gradual increasing contribution for periodic maintenance needs, mostly financed by the donors) of the road network by 2005. By 2006, these revenues should also cover the maintenance needs generated by the recently completed rehabilitation works of the urban streets and urban drainage rehabilitation works in the main urban centers. However, if Government fails to introduce the necessary road user charges, road periodic maintenance and urban streets maintenance will have to be curtailed and a system to identify priorities introduced. The government plans to introduce the new road financing system and user charges during 2001 (agreed during negotiations). By 2005 the new system is expected to generate sufficient revenues to cover roads and urban streets maintenance needs. The appropriate levels have been agreed upon and are included in the Sector Policy Letter and are summarized below: (in KMF, prices September 2001) 2001: KMF 22 per liter, or about KMF 28 millions per month 2002: KMF 24 per liter, or about KMF 31 millions per month 2003: KMF 25 per liter, or about KMF 34 millions per month 2004: KMF 27 per liter, or about KMF 36 millions per month 2005: KMF 29 per liter, or about KMF 39 millions per month 2006: KMF 31 per liter, or about KMF 42 millions per month The draft law on road financing will propose replacing the contribution from the fuel and introducing the road user fees and a contribution from the vehicle ownership charges. These charges will be raised gradually to levels needed to generate sufficient revenues for road maintenance. The proposed system simplifies revenue collection and directly relates road use to cost recovery. In order to succeed, the new revenues must be rigorously collected and the road users must clearly perceive that the fee and charges go directly to road improvement and maintenance. 75 Table A5-A.2 Road maintenance fund expenditures, 1995-2000 klamic Federal Republic of the Comoros Table A5-A.2. Road Maintenance Fbnd- Actual Expenditures ROAD MAINTENANCE FUND EXPENDITURES in KFM millions 1995 1996 1997 1998 1999 2000 spare parts 36.0 5. 7 . . biutumen 30.1 520 16.5 18. 45 fuel 49.1~w -37. - 220 4.T--. outsource labor 34.5 23.T4 176 S 24.3 outsource road works .7 27 3. 18.0 11. 3 freight /Custoni s1. 10.1 8.4 tires 10.7 8.8 9.6 10.0 1.3 oil 15.5 7.8 11 7. others 1.7 4.6 4.6 21 6.8 equipment rent O. 3 0 1. office supplies 4.6 3.4 5.3 8.0 S.0 2.5 office equipnient 1T. 3. 23 equipment 0.8 2 0.5 1.1 travel, issions 3.3 z. salaries costs 3.0 1.4 40.5 58.0 33.7 31.0 cement 2.8 0. 1.5 9. maintenance building 1.7 0.7 78 12. supplies 0.4 0.5 2. 2 maintenance vehicles 2.6 0.2 32.T tmterials/ roads 0.0 0.2 0.1 small equipment 1.0 - 0.8 O. furniture office equipment 1.4 telephone, fax com °. TOTAL 8 2 302.2 j 242. 205.8 128.8 76 Table A5-A.3. Road maintenance fund: sources and uses of funds, 2001-2015 bIsmic Federal RepuMic of tbe Comores Table A5-A.3 . Road Mi'eaewce Fund- Sources nd thes of Fn& SOURCESOFFUIIDS(inKMFWilIioes) 2001 2002 2003 2004 | 2005 2006 2007 2008 2009 2010 2011 2012 | 2013 2014 2015 Contribution from Vehicle Ownership charge 2 30 4 51 52 5 5 3 54 5 55 57 5 SubTotal - 20 30 40 50 51 52 52 53 54 55 55 56 57 58 t[er Fee (F1el levy) 342 372 404 436 469 503 537 545 580 588 596 605 613 621 630 Gapto be 1maced (2 (53 (6 (19 (29 21 (9 (14 5 (0 (5 (11 (16) (21 (26 Cunu.iswcashbflowblsnce 2 55 61 81 1 88 97 11 10 If 112 122 138 15 IS Totl SOURCES 39 339 S 4 90 575 5 6 650 tISE OF FUNDS (in KMF nillions) 2001 2002 12003 2004 25 2W !U007 2008 2009 20101 2011 1 2012 ! 23 1 2014 ! 2015 Roads Routine Maintenance 304 304 333 362 392 388 388 388 388 388 388 388 388 3|8 388 Periodic Maintenance - - 40 40 43 44 44 45 91 93 94 96 97 98 100 Managenmnt Expenses 35 35 55 55 55 63 64 65 66 67 68 69 70 71 72 Toal Roads 339 339 428 456 490 495 496 498 545 548 550 552 555 557 560 [m Street Routine Maintenance 55 58 59 60 61 62 63 64 65 66 Periodic Maintenance 5 6 6 13 13 13 14 14 14 14 Managenent Bqwenses 10 9 9 10 10 10 10 10 10 10 Total kUb S - _ 70 74 75 83 84 S5 8 88 89 90 1kb. Draimae 10 10 1 1 11 11 11 11 11 11 Toebl TES S 42 45 40 556421 646 65 64 657 662 Read [herFeesdmk 2000 e 2001 2002 2 2D03 1 2004 2005 2006 Z0 2009 1 2010 2011 2012 2013 2014 1 2015 Nb mDlion Iters gasoD il 41C . 4.31.1 43 . T1 4.40! 3-A 4.62T14.67 4.'17 4.T5 4141 NbmDilionlitersgas | II.0 11250 11.419 11.59C 11.76d 11.94( 12.119 12.301 12 12.673 12.W 13.05 13.25 13.451 13.652 13.85S Aveage User Fee in KFM 18 22 24 25 27 29 31 32 32 34 34 34 34 34 341 34 AverageUserFeeinUSScents 3.3 4.0 4.3 4.6 4.5 5.2 5. 5 5 .S| 6.1 6.6 .1 6.1 6.1 6.1w 6.1 Aveage nwnthly Revenues to FER int KFM ndlk a 22 2S 31 34 36 39 41| 45 45 4S 49 50 51| 52 52 77 Annex 5-B: Financial Analysis of the Urban Water Supply Subcomponent Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project (Component B: Urban Water Supply) The objective of the urban water supply subcomponent of the project is to supply 85 liters of water per day per person to households connected to the network, and 20 liters per day per person to those obtaining water from standpipes. The second objective is to provide access to piped water to 100 percent of urban dwellers by 2010. To achieve these objectives, the subcomponent will support reliable and technically and financially sustainable water operating systems. Current situation About 70 percent of urban dwellers have access to clean drinking water. However, the situation varies by island. About 77 percent if city residents on Grande Comore have access to water, 70 percent on Anjouan do, and only 38.5 percent on Moheli have access (Table A5-B.1). Table A5-B.1 Population with access to clean drinking water (percent) Table Water AS-B1-1. Situation in 2000 Population with access to drinking iter Urban Rural Total Qunde Conre - 770/o 11% Anjouan 700/0 32D/o 45% Moheli 38% 83% 600/o Total 70% 23% Currently, about 32 percent of the people of Comoros live in urban areas. The urban fraction varies by island: it is 28.5 percent on Grande Comore, 34 percent on Anjouan, and 51.5 percent on Moheli (Table A5-B.2). Table A5-B.2. Population of Comoros by island Urban Rural Total Population Percent Population Percent Population Grande Comore 78,184 29 195,750 71 273,934 Anjouan 78,744 34 153,668 66 232,412 Moheli 16,064 52 15,104 48 31,168 Total 172,992 32 364,522 68 537,514 Table A5-B1-2. below presents the expected coverage ratio (population with access to drinking water) by island after program and project implementation. The impact of the IDA financed 78 project would increase the national coverage to about 96 percent of urban population with access to drinking water. Table Water A5-Bl-2. Situation in 2005-After all Donors interwtnfon Population mith access to drinking imiter Urban Rural Tobl Ckande Comore 77/O 200/o Anjouan 100%/ 32% 55% Moheli 100%W/ 83% 920 Total 96% 28% 51% Past and present operational set up Previously, the parastatal utility Eau et Electricite des Comores (EEDC) was in charge of collecting and distributing electricity and water on the three islands of Comoros. However, in January 1998 the institutional set up of water collection and distribution changed, and the private operator Comorienne de l'Eau et de l'Electricite (CEE) took over responsibility for delivering water and electricity on Grande Comore island. Tariffs charged in 1999 in Moroni, Grand Comore are presented in Table A5-B.3. Table A5-B.16 provides details of operational and institutional parameters for Comoros' urban water systems. Table A5-B.3 Tariffs charged in Moroni, Grand Comore, 1999 KMF per cubic meter Connected consumers 0-4 cubic meters 205 > 4 cubic meters 215 Standpipe consumers 220 Key water sector issues for Anjouan and Moheli In Anjouan, the main water sector issue is the quality of the water distributed, which is not currently treated. Water system management also needs to be addressed urgently. Currently, the urban centers are managed by associations communautaires and cost recovery is virtually nonexistent. In Moh6li, the situation is worse than in Anjouan, with fewer than 40 percent of urban dwellers having access to clean drinking water. Significant investments for water catchment and collection are required. Choosing a professional operator is also a major need. In the two islands where the CEE is not presently involved, in addition to rehabilitating and expanding the infrastructure, it is critical to establish cost recovery mechanisms to ensure the medium and long-term financial sustainability of the water utilities and to ensure proper operation and management of the water systems. 79 Costs and financing arrangements of water investments According to a feasibility study carried out by SCETAUROUTE, investments in water infrastructure in Moutsamoudou, Domoni and Ouani on Anjouan, and Fomboni on Moheli are likely to produce significant benefits in terms of human health and living conditions, and are the priority investments for the next five years. The aggregate cost of these priority works is expected to total some KMF 1.5 billion by 2005 including contingencies. The broad breakdown by urban center is provided in Table A5-B.4. Details of the per project cost estimates are provided in Tables A2.16-19 (annex 2). Table A5-B.4 Water works investment costs, total program and IDA-financed Investment Costs (in millions KME) Full program Ouani 305 Domoni 499 Moutsarnoudou 395 Fomboni 341 Total 1,540 It is proposed that IDA finance 100 percent of the investment costs of works, given the anticipated problems of counter part funds (particularly for Anjouan), and 100 percent of the design and supervision costs. Water works are estimated to be completed by mid-2005. It is not anticipated that there will be on-lending. Cost recovery options and targets Recovering the costs of supplying water from households is a totally new area for Anjouan and Moheli. Gaining acceptance of the concept will require that tariffs are set at affordable levels. The following cost-recovery options have been considered: 1. Operation and maintenance cost 2. Operation and maintenance cost plus depreciation 3. Operation and maintenance cost plus depreciation plus debt service 4. Operation and maintenance cost plus depreciation plus debt service, plus investment costs for the extension of the networks. To derive a medium-term tariff (fiscal 2003-2007), the level of revenues required to cover costs of the four options have been calculated. Table A5-B.5 summarizes the results of the cost recovery analysis for the various options. It also estimates the average water tariffs required to maintain the financial equilibrium of the water systems in the four urban centers considered. 80 Table A5-B.5 Cost recovery analysis summary (2005, constant mid-2000 prices) Expenditures (millions KMF) Popula- Consump- 0 & M Depreci- Long and Extension Total KMF per tion tion ation medium- investment cubic meter served (cubic term debt meter/day) service Ouani 21,000 1,434 21.6 3.8 8.6 21.7 55.7 106.4 Domoni 25,000 1,815 52.0 10.9 14.0 35.5 112.4 169.7 Moutsad - 43,000 3,297 74.2 16.5 11.1 28.1 129.9 108.0 oudou Fomboni 18,000 815 22.7 4.1 9.6 24.3 60.7 203.9 Table A5-B.6 presents the estimated average cost per cubic meter of supplying water, and costs of supplying water to connected and standpipe consumers. Table A5-B.6 Cost structure, 2005 KMF per cubic meter Average Connected Standpipes Ouani 106.4 96.1 184.1 Domoni 169.7 153.4 301.4 Moutsam-oudou 108.0 93.0 236.4 Fomboni 203.9 183.4 267.8 Tables A5-B.7-8 present the cost structure (in KMF per cubic meter) for the connected and standpipe consumers and the various levels of expenditures to be gradually covered to ensure the medium and long-term financial sustainability of the water systems in the four urban centers considered. An analysis of average affordable tariff levels needed to recover these costs, and their relationship to household incomes is discussed below. Table A5-B.7 Cost structure for connected consumers, 2005 (KMF per cubic meter) Option I Option 2 Option 3 Option 4 O & M I + depreciation 2 + debt servicing 3 + extension Ouani 30.9 38.1 54.5 96.1 Domoni 62.2 78.6 99.8 153.4 Moutsam-oudou 46.7 60.4 69.6 93.0 Fomboni 55.8 69.6 101.8 183.4 81 Table A5-B.8 Cost structure for standpipe consumers, 2005 (KMF per cubic meter) Option I Option 2 Option 3 Option 4 O & M 1 + depreciation 2 + debt servicing 3 + extension Ouani 118.9 126.2 142.6 184.1 Domoni 210.2 226.6 247.7 301.4 Moutsam-oudou 190.1 203.8 213.0 236.4 Fomboni 140.2 154.0 186.2 267.8 Household affordability analysis Affordability is the financial ability of consumers to pay for certain goods and services given their other needs. The cost of goods or services relative to income also influences consumers' willingness to pay. It is difficult to fix the affordability level for water supply, given that water is usually considered a basic human need. However, it has been accepted (although more as a rule of thumb) that household expenditures on urban water supply should not exceed 5 percent of the minimum household income. In Comoros, it is estimated that the average monthly household income (AMHI) for a household of seven is around KMF 60,000 (mid-2000 prices). The minimum monthly household income (MMHI) is estimated to be KMF 25,000 (mid-2000 prices) required to cover full costs. In this analysis the average monthly household income is used as a measure of affordability of water for connected households, and the minimum monthly household income is used as a measure of affordability for standpipe consumers. Table A5-B.9 displays the relationship between the actual cost of collecting and distributing water in 2005 (mid-2000 prices) and the average (for connected consumers) and minimum (for standpipe consumers) monthly household incomes (mid-2000 prices). The analysis assumes that households connected to the network consume about 85 liters per day per person, and that households collecting water from standpipes consume about 20 liters per day per person. It also assumes that prices per liter will differ for these two types of consumers. Table A5-B.9 Percentage of household income required to cover full system costs (option 4) KMF per cubic meter Percentage of household income required Average Connected Standpipes Ouani 106.4 2.9 3.1 Domoni 169.7 4.9 5.1 Moutsam-oudou 108.0 2.8 4.0 Fomboni 203.9 5.5 4.5 Clearly, the cost of water in relation to household income varies according to urban center. However, tariffs set at levels to recover full costs of the system (option 4) would comprise no more than 5 percent of average household income for connected consumers and be below 5 percent of the minimum household income for the standpipe consumers in all cities. These tariff levels would be affordable based on the 5 percent criterion. 82 Tables A5-B.10 and A5-B.11 show the percentage of average and minimum household income required to cover the costs defined in options 1-4 above. An average of 1.5 percent (connected consumers) to 3 percent (standpipe consumers) would be needed to cover the operating and maintenance cost alone (option 1). About 4.54.0 percent would be needed to cover full program costs (option 4). Table A5-B.10 Cost structure as percent of the average monthly household income for connected consumers Option 1 Option 2 Option 3 Option 4 O & M 1 + depreciation 2 + debt servicing 3 + extension Ouani 0.9 1.1 1.6 2.9 Domoni 1.9 2.4 3.0 4.9 Moutsam-oudou 1.4 1.8 2.1 2.8 Fomboni 1.7 2.1 3.1 5.5 Table A5-B.11 Cost structure as percent of the minimum monthly household income for standpipe consumers Option 1 Option 2 Option 3 Option 4 O & M 1 + depreciation 2 + debt servicing 3 + extension Ouani 2.0 2.1 2.4 3.1 Domoni 3.6 3.9 4.2 5.1 Moutsam-oudou 3.2 3.5 3.6 4.0 Fomboni 2.4 2.6 3.2 4.5 In all four urban centers, water tariffs set at levels equivalent to 4-5 percent of the average monthly household income (for connected customers) and 3-4 percent of the minimum monthly household income (for standpipe consumers) would generate adequate profits to enable communities to contract a professional operator to properly manage and maintain the rehabilitated water systems. Proposed water tariffs Tariff level. To ensure that water tariffs for household users are affordable, they will be fixed not to exceed a maximum percentage of average or minimum household income beginning in fiscal year 2003 (July 1, 2003). These tariffs will be increased gradually over the years, so that full cost-recovery is achieved by 2006-2010 depending on the urban centers. However, tariffs will never be set higher than 5 percent of average household income (for connected consumers) or minimum household income (for standpipe consumners). Tariffs for industrial, commercial and other non domestic users will be set at levels sufficient to achieve full cost-recovery immediately. The proposed water tariffs are presented in Table AS-B.12 and 13 in constant mid- 2000 prices. 83 Table A5-B.12 Proposed tariffs for connected consumers (KMF per cubic meter) Proposed tariffs 2003 2004 2005 2006 Ouani 100 105 110 116 Domoni 150 158 165 174 Moutsam-oudou 100 105 110 116 Fomboni 150 158 165 174 Table A5-B.13 Proposed tariffs for standpipe consumers (KMF per cubic meter) Proposed tariffs 2003 2004 2005 2006 Ouani 120 126 132 139 Domoni 175 184 193 203 Moutsam-oudou 120 126 132 139 Fomboni 200 210 221 232 Tariff structure. Tariffs will be based on the principles that: (a) users will pay costs of their actual water consumption, and (b) tariffs will be lower for less affluent domestic consumers; more affluent domestic and non domestic consumers will subsidize consumption of less-affluent households. Tariffpolicy. GOC will decide, by December 31, 2002, on whether to apply: (a) a unique tariff structure for the three islands; (b) separate tariff structure for each island; or (c) separate tariff structure for each urban center. Final affordability test The household affordability test for the proposed water charges for the forecast period is presented in Tables A5-B.114 and 15. The combined charges comprise 3.5-5.2 percent of average and minimum household income (at constant income and price levels). These are acceptable assuming household (connected consumers) can afford to pay up to 5 percent of average household income for water in 2006. The proposed water charges will fully meet the operation and maintenance costs, depreciation for all years of the covered forecast period, debt service and, gradually, costs to extend the rehabilitated water networks and systems. 84 Table A5-B.14 Percentage of average household income of connected consumers required to cover full system costs, 2003-06 Proposed tariffs as percentage of average monthly Household income of connected consumers 2003 2004 2005 2006 Ouani 3.0 3.2 3.3 3.5 Domoni 4.5 4.7 4.9 5.2 Moutsam-oudou 3.0 3.1 3.3 3.4 Fomboni 4.5 4.7 4.9 5.2 Table A5-B.15 Percentage of minimum household income of standpipe consumers required to cover full system costs, 2003-06 Proposed tariffs as percentage of minimum monthly Household income of standpipe consumers 2003 2004 2005 2006 Ouani 1.7 1.8 1.9 1.9 Domoni 2.5 2.6 2.8 2.9 Moutsam-oudou 1.7 1.8 1.9 1.9 Fomboni 2.5 2.6 2.8 2.9 85 Table AS.B16 Urban water current operational and institutional situation Pression sur Caracteristiques Structure charg6e de la Qualit6 du ile Centre ressources en du reseau de QualitW de 1'eau gestion et du recouvrement Tarifs pay6s par les usag6s service ressure en distribution des cofits Moroni Non Contrat Forte chloration de I'eau par la Societe privee CEE * Branchements individuels: * Contrat d'affermage CEE CEE en attendant les resultats 4m3 A 205 FC par bimestre recent o 3.850 d'analyses 220 FC/m3 pour le restant * Engageme E branchements dont * Bomes-fontaines: nt de la u 108 BF 215 FC/m3 CEE d'augment ation de son rendement Moutsamoudou Oui A horizon 4.000 A 5.000 * Aucun traitement de Association Communautaire * Pas de tarifs actuellement Ressources de proche foyers I'eau de Gestion de I'Eau A I'association * Plusicurs epidemies par Mutsamudu irregulieres: le passe et nombreuses travaux r6alises maladies d'origine ponctuellement hydrique Ouani Non sauf A 1.200 foyers * Aucun traitement de Association pour le * Pas de tarifs actuellement Appels moyen-long cotisants 1'eau Developpement cotisations termne * Plusieurs epidemies par Communautaire de Ouani irregulieres le passe et nombreuses maladies d'origine hydrique Domoni Non sauf A Environ 2.000 * Aucun traitement de Aucune (une association est * Pas de tarifs actuellement moyen-long foyers concemrs I'eau en voie de creation) terme * Plusieurs epidemies par le passe et nombreuses maladies d'origine hydrique Fomboni Non 904 foyers Association de Gestion des * 1.000 FClbimestre/foyer Taux de raccordes dont 660 Eaux de la Communaute raccorde recouvrement A Fomboni Urbaine de Fomboni) faible car qualite du service :g __________________________ ___________________________________________________________________ ___________________________ mediocre Or Table A5.B17 Detailed annual expenditures of project water systems (KMF) bbamic Federal Repubic of Comoros Table AS-B.17. Detailed annudl expenditures in KMF Inthule Moutsamoudou Oujni Domoni Fomboni NWr montant NEr montant SN montant NSbr montant Depenses de fonctionnement salaires responsables administratifs 2 170 2 170 secretariat 120 000 100 000 caissier I 60000 1 60000 1 60000 1 60 000 comptable 1 60 000 1 60000 I 60000 1 60 000 Salair fontainiers 50 1.500.000 15 450 000 30 900 000 17 510 000 Salaire techniciens ( source, adduction et reseau) 5 225 2 90 000 4 180 000 2 90 000 Salaire techniciens cornpteurs (entretien) 2 100 I 50000 I 50 000 1 50 000 Salaire techniciens compteurs Oecture et enregistrenient) 2 100 1 50 000 2 50000 1 50 000 Gardiennage 140 75 000 140OO 75 000 Total 2.475.000 835 000 1 760 000 895 000 RMactifs (chtore, ..etc.). 1 550 000 440 000 I 000 000 440000 Frais administratifs (bureau, loyer, consommables) 450 000 130 000 450000 130 000 Total charges 2 000 000 570000 1450 000 570 000 Total fonctionnement mensuel 4,475,000 1,405,0DO 3,210,000 1,465,000 Total fonctionnement annuel 53,700,000 16,860,000 38,520,000 17,580,000 13penses dentretien annuel 20,500,000 4,700,000 13,500,000 1,5 % du coat global du systnem apr6s r6habilitation et extension Remboursement annued du pret 11,112,224 8,587,159 14,025,262 9,SS4,899 95 % du coOt des travaux sont couverts par le pret IDA. (remboursement 30 ans - p6riode de grace 10 ans) Amortissementannuel des installations 16,494,994 3,781,779 10,862,557 4,115,702 Dur6e de vie de 40 ans, tauxde d6pr6ciation 6quivalent a 4% par an, installations existantes degr6 d'usure moyen variant entre S et 20 ans. tCot annuel dextension durseau. 28,142,156 21,747,328 35,519,544 24,274,145 |Tauxd'int6ret de 4%, tauxd'acroissement de la population 3% Totl g4ner annuelI 129,949,374 55,676,266 112,427,363 1 60,669,746 CoOt do metre cube facture -Sur la base d'une population 2005 de: 43,000 21,000 25,000 18,000 -d'un tauxde pertes (ou eau non cornptabilisee) equivalent a: 30 percent 30 percent 30 percent 30 percent - avec un pourcentage de population brancbee au rdseau de 60 percent 60 percent 60 percent 40 percent - pour un pourcentage alinent6e auxbomes fontaines de 40 percent 40 percent 40 percent 55 percent - pourcentage de population aliment6e en eau maeorite - - - 5 percent On aura une consommation joumralire surle rbseau de - usagers branch6s au reseau (cat 85 litres) 2,193 1,071 1,275 612 : usagers alinent6s auxbomes fontaines (cat 20 Itres) 344 168 200 198 autres consomnumtions 760 195 340 5 Total eau factur6e joumeDlenent 3,297 1,434 1,815 815 Eau facturde annuellement 1,203,405 523,410 662,475 297,475 CoAt dLm6trecubed'eaufacturtautourde: KMF 108 106 170 204 87 Annex 6: Procurement and Disbursement Arrangements Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project Procurement Arrangements The following procurement arrangements will apply to all wholly or partly funded IDA financed contracts. General. Works or goods wholly or partly financed by IDA would be procured in accordance with the Bank's Guidelines for Procurement under IBRD Loans and IDA Credits, published in January 1995, revised in January and August 1996, revised in September 1997, and January 1999. Consultancy services wholly or partly financed by IDA would be procured in accordance with the Bank's Guidelines for Selection and Employment of Consultants by World Bank Borrowers, published in January 1997, revised in September 1997 and January 1999. The borrower's procurement regulations and procedures have been reviewed and have been found acceptable. Prior to negotiations, a General Procurement Notice has been prepared by DGI and transmitted to IDA for publication in the United Nations Development Businesses to advertise all assignments expected to be financed by IDA under the project. The General Procurement Notice will be updated annually. Standard bidding and other similar documents published by the Bank will be used by DGI for the preparation of International Competitive Bidding (ICB) for works and /or goods, and for Requests for Proposals and contracts for consulting services. Table A below provides information on the project elements and their estimated costs and methods of procurement, including elements financed by the Bank, as well as those financed by other sources (FC, GOC). Procurement of Civil Works. All civil works contracts for road periodic maintenance and urban water works will be procured under ICB in accordance with Bank Guidelines. Procurement of Goods and equipment. Contracts for the supply of goods and equipment valued at US$50,000 or more will be procured under ICB in accordance with Bank Guidelines. Contracts for the procurement of office equipment and supplies costing less than US$50,000, up to an aggregate amount of US$200,000 will be procured through National Competitive Bidding (NCB). Prior and post review by the Bank for Works and Goods contracts. All IDA-financed works and goods contracts to be procured under ICB will be subject to prior review procedures in accordance with the Bank's Guidelines. All IDA-financed goods contracts to be procured under NCB estimated to cost the equivalent of US$25,000 or more per contract will be subject to prior review procedures in ac.cordance with the Bank's Guidelines. All other contracts under this threshold will be subject to post review. 88 Procurement of Consulting Services. Recruitment of consulting firms for the strengthening of DGI, training of its personnel, preparation of detailed design and tender documents, supervision of works, sector expertise and studies will be carried out under the Quality and Cost Based Selection method (QCBS) in accordance with the Bank's Guidelines. Recruitment of individual consultants for assistance to the DGI and the Coordination Unit to carry out program and/or project implementation will be done on the basis of qualifications and experience in accordance with the Bank's Guidelines. Prior and post review by the Bank for Consultant contracts. All consultant contracts expected to cost the equivalent of US$25,000 or more per contract with firms, and US$15,000 per contract with individuals will be subject to prior review by IDA. For contracts above $ 25,000 each, the technical evaluation report will be sent for no-objection to IDA before opening the financial envelope. All other contracts under these thresholds will be subject to post review. These procurement thresholds are summarized in Table B below. Procurement implementation schedule and advanced procurement actions. Prior to negotiations, DGI has provided a detailed timetable for implementation of the investment as part of the Project Implementation Plan (PIP). This timetable will be used as a basis for monitoring procurement processing. The following documents have also been prepared by DGI and transmitted to IDA for review prior to negotiations: (a) draft General Procurement Notice; (b) draft Specific Procurement Notice for the construction works, works supervision, DGI assistance and major studies; (c) draft bidding documents for civil works; (d) TORs, short list, LOI, draft model contract for construction supervision; and (e) TORs, short list, LOI, draft model contract for DGI assistance, and important consulting assignments and studies. Reporting. A monthly progress report up to Credit Effectiveness will be prepared by DGI in sufficient details and transmitted to IDA. During project implementation (after effectiveness), a quarterly report will be adequate. The details will include: major procurement actions dealt with during the previous months and major procurement actions planned for the following months, an update of the Procurement Implementation Table, time taken to carry out specific actions such as short list, completion of essential bidding documents, bid evaluation and compliance with aggregate limits on specified methods of procurement. Procurement Capacity Assessment. A procurement capacity assessment was carried out during appraisal and no major issues have been identified. In addition, it is expected that the core staff of DGI will be composed of officers from DGTP who have extensive knowledge of World Bank procurement procedures and guidelines and who have been trained under the previous roads maintenance projects financed by IDA. Disbursement Arrangements The total estimated disbursement, covering all sources of funding (IDA, FC and GOC) over the project life are summarized in Table D of this annex. The total credit proceeds would be disbursed over five years. IDA credit disbursements will cover the percentages indicated below: 89 Civil Works (US$7.9 million) 69% of total project expenditures excluding taxes Equipment and Goods (US$0.5 million) 4% of total project expenditures excluding taxes Consulting Services (US$2.0 million) 17%of total project expenditures excluding taxes Training (US$0.4 million) 3% of total project expenditures excluding taxes. In order to deal with the situation in Anjouan and as agreed during negotiations with Comoros, the Development Credit Agreement (DCA) of the project includes: (i) a separate disbursement category for works in Anjouan in the disbursement table, (ii) a disbursement condition for Anjouan with regards to the works category under which no disbursement would be made under the Anjouan disbursement category unless the project could be supervised in Anjouan, and (iii) a provision under which IDA would be able to cancel the amount under the Anjouan disbursement category if one year after project effectiveness, no project activity has been initiated in Anjouan. Closing date. The Closing Date is December 31, 2005, six months after completion of project execution (June 30, 2005). The schedule of estimated disbursements is presented in Table D. An aggregate amount of up to US$630,000 has been included in the project costs to refinance the PPF. This is for expenditures on engineering and technical expertise devoted to project preparation. Minimum disbursements. The minimum application amount for payments directly from the Credit account or for issuance of Special commitments will be at least equivalent of 20 percent of the initial deposit of the special account. Disbursements will be fully documented except that withdrawals will be made on the basis of Statements of Expenditures for the items below: - Goods contracts not exceeding US$25,000 equivalent; - Consulting firm contracts not exceeding US$25,000 equivalent, and individual consultant contracts valued at less than US$15,000 equivalent. Special Account. The Special Account will be opened and maintained in a commercial bank, acceptable to the Bank, with an authorized allocation of US$500,000 equivalent, corresponding to about four months of expenditures. Replenishment application will be submitted at monthly intervals and will include reconciled bank statements as well as other appropriate supporting documents. 90 Annex 6 bslamic Federal Republic of the Comoros Infrastructure, Water & Environrnent Project Table A Procurement Arrangements Procurement Method International National Competitiw Competiliie Biding Bidding Other N.B.F. Total A. Civil Works 8.2 - - - 8.2 (7.9) - (7.9) B. Equipnent & Goods 0.3 0.2 - 0.1 0.6 (0.3) (0.2) (0.5) C. Consultant Services & Engineering - - 2.6 0.9 3.5 (2.6) (2.6) D. Training - - 0.4 0.6 1.0 (0.4) (0.4) Total 8502 .0 (8.2) (0.2) (3.0) (11.4) Note: Figures in parenthesis are the respective amDunts financed by MlA - Other: Consultants services procured under QCBS procedure - N.B.F. : Technical assistance, training and logistical support financed under FC 91 Annex 6 Islamic Federal Republic of the Comoros Infrastructure, Water & Environnent Project Table B Thresholds for Procurement Methods and Prior Rewiew (US$) Expenditure Category Contract Value Procurement Contracts Subject to (Threshold) Method Prior Review Civil Works All ICB All Equipnent & Goods >=50,000 ICB All < 50,000 NCB 25,000 Consultant Services Training and audits Fims All QCBS >=25,000 Individual <=50,000 IC >=15,000 Total value of contract subject to prior review: US$11.1 rrllion 92 Annex 6 Islamic Federal Republic of the Comoros Infrastructure, Water & Environrent Project Table C Allocation of Credit proceeds IDA (US$ Million) % of Credit Expenditures Amount to be Financed (1) Civil works for periodic road maintenance 95 (a) in Grande Comnore and Moheli 3.5 (b) in Anjouan 1.0 (2) Water civil works 100 (a) in Moheli 0.6 (b) in Anjouan 2.1 Subtotal Civil Works 7.2 (3) Goods & Equiprnent 0.5 100 (4) Consulting Services, training and audits 2.2 100 (5) Refunding of PPF 0.6 (6) Unallocated 0.9 Total 11.4 93 Annex 6 Islamic Federal Republic of the Comoros Infrastructure, Water & Environment Project Table D IDA Disbursement (in US$ million) Annual 0.6 2.0 3.3 3.3 2.2 Cumulative 0.6 2.6 5.9 9.2 11.4 Percentage 5% 23% 52% 81% 100% Note: Figures mnay not add up to total due to rounding Total Project Disbursement (in US$ million) Annual 0.8 2.4 3.8 3.7 2.6 Cumulative 0.8 3.2 7.0 10.7 13.3 Percentage 6% 24% 53% 81% 100% Note: Figures may not add up to total due to rounding 94 Annex 6 Islamic Federal Republic of the Comoros Infrastructure, Water & Environment Project Table E Project financial executfon by Components by Year - Totals Including Conti (US$ Million) 2002 2003 2004 2005 2006 Total A. Transport Roads Periodic Maintenance 1.7 1.8 0.9 4.4 Road Safety 0.2 0.3 0.2 0.8 Engineering, Studies, Expertise & Institutional Strengthening 0.2 0.2 0.1 0.1 0.7 Subtotal Transport 0.2 2.2 2.2 1.3 5.9 B. Urban Water Urban Water Works 0.4 1.0 1.1 0.5 3.0 Engineering, Equipment, Studies & Institutional Strengthening 0.1 0.1 0.4 0.4 0.2 1.1 Subtotal Urban Water 0.1 0.6 1.4 1.4 0.7 4.1 C. Support to the Sectors & Program Coordination General Studies & Expertise to the Sectors 0.0 0.0 0.0 0.0 0.1 Training 0.2 0.2 0.2 0.2 0.1 0.8 Technical Assistance for Coordination 0.2 0.2 0.2 0.2 0.9 Expertise & Logistic support for Coordination 0.2 0.2 0.2 0.1 0.1 0.8 Subtotal Support to the Sectors & Program Coordination 0.6 0.7 0.6 0.6 0.3 2.6 Project Preparation Studies (under PPI) Preparatory Studies 0.6 0.6 Subtotal Project Preparation Studies (under PPF) 0.6 0.6 Total PROJECT COSTS 1.5 3.4 4.2 3.3 0.9 13.3 Note: Figures may not add up to total due to rounding 95 Overall Procurement Risk Assessment: High Average Low Frequency of procurement supervision missions proposed: One every twelve months (includes special procurement supervision for post-review/audits) 96 Annex 6 Table F: Procurement plan-Plan de passation des marches MEthode de Documents Prento ds Sgaueu Marche passation des Priode d'execution d'invitation / Prsentation des Signature du marchEs appel d'offre Debut Fin Ddfinition des TDRs des Etudes d'execution (dossiers de grE d grE Octobre 2000 Janvier 2001 Juillet 2000 Septembre 2000 Octobre 2000 consultation des entreprises) Acquisition de vehicules et matEriel de bureautique pour Appel d'offre national Juillet 2001 Septembre 2001 Novembre 2001 les DGI1, DRI, CC. lere Tranche Ddcembre 2001 Avril 2002 2eme Tranche Decembre 2004 Juin 2005 Dossiers de consultation des entreprises pour l'entretien pEriodique des routes et la rehabilitation des reseaux liste restreinte Mai 2001 Juillet 2002 Janvier 2001 Fevrier 2001 Mars 2001 d'eau et assistance technique A l'execution. Privatisation des parcs A matEriel liste restreinte Juillet 2001 Juin 2002 FEvrier 2001 Mars 2001 Avril 2001 R'ogtanisaetione duMbinistEre de IDRquipement et de grE d gre Fevrier 2001 Septembre 2001 Janvier 2001 FEvrier 2001 Fevrier 2001 Gestionnaire financier et comptable du Projet et du FER, assistance A la comptabilitE et fonmation des comptables consultation Mars 2001 Avril 2003 Decembre 2000 Janvier 2001 Janvier 2001 DGI et DRI. Audit des comptes du FER et du Projet (2000,2001, liste restreinte Fevrier 2001 Juin 2003 Fevrier 2001 Mars 2001 Avril 2001 2002) Entretien periodique des routes. Appel d'offTe Janvier 2003 Mai 2005 Avril 2002 Juillet 2002 Octobre 2002 Formation des populations sur l'aspect sanitaire de l'eau GrE a grE Janvier 2002 Juillet 2005 Juillet 2001 Octobre 2001 DEcembre 2001 et le recouvrement des coOts. (UNICEF, mEdias ... ) Formation des populations sur la sEcurite routiere. Grd grd Janvier 2002 Juillet 2005 Juillet 2001 Octobre 2001 Decembre 2001 (troupes theatrales villageoises, medias, affichage ...i Formation des personnels DGI et DRI, (partenariat avec DDE La REunion et etablissements Gre A grd Janvier 2002 Juillet 2005 Juillet 2001 Octobre 2001 DEcembre 2001 specialises ...) Rehabilitation et extension des rEseaux d'eau Appel d'offre AoOt 2003 Juin 2005 AoOt 2002 Janvier 2003 Mai 2003 97 Figure 1: Schedule of Project Inplementation - ~ 2000 Z00o1 F2002 2003 2004 2005 .~~~~~~~~~~~~~~~ . I I 13 14 AIN I I I I Al S VI NJ Dl J I1T 1 MAM J A TXSIOI D J I F N AM J I J JAI SIOINIL)1 S AMe J I J JAI SI(JN DI J F 514 JIAIS Pr(1paration generale du projet Etudes priliminaires Termnes tde rtif(rence pour les etudes pr6lisninaires Elargissement RNI & RN2 Etude de faisabilit6 Impact sir 1environnenment Etude Comportementale et sociale Armelioration de la circtlation et la s6curit6 routi(1re Etude Institutionnelle et recouvrement des coits Termes de reference poor les etudes dexecution ( Appui institutionnel Elaboration tdu code de l'Urbanisrme ElIaboration du Code Maritime et autres textes Marit-. Etude de Gestion aduonome des pacs en vue de la privatisatio i Systeme comptable du PER, Appui a la comptabilite, formation co March6s de fournitures Aquisition de vihicules poor la DGI, let D, ,Ia CC.C Aquisition de materiel de bureautique (DGI DRI CC) Foudes Preparation des DCE (compris shemas directeurs des r6seaux eau). Marchhs Travaux Procadores de paation des marches de travaum. Entretien periocdque des routes R'habiitation et Extension des rseaux d'eauu Transports iStretien periodiquse des routes rtande Comore m m m 1 1 1 1 T T Andjoatn _1 Signalisatlion et scurit_ routi_.re CQrande Comore Anjouan Mobtili 1 Campagnes et actions de sensibilisation Fau en milieu urbain Rehabilitation et Extension des r(1seaux d'eau urbains Anjounan Mouisamsoudou Ozuani Doinani Moheli Fomboni Supports aux divers secteurs Expertise et assistance Formation Coordination Support et logistique i~ 98 Figure 2: Schedule of implementation- Component: Road Periodic Maintenance 20i0 200 1 2002 2003 2004 2005 Definition des taches 4tr tr 2tr 3 tr 4 tr I tr 2 tr 3t 4tr I tr 2tr3 tr 4 tr I tr 2t 3Ptr L4tr I tr 2tr 3tr 4tr Etudes et marches tennes de reference pour preparation DCE Consultation des consultants pour DCE 01/03 N Preparation des offres Reception des offres 01/05 N Depouillenent et evaluation Non objection et approbation m Negotiations m Signature Contrats signes 31/07 N Elaboration des DCE Travaux Lancement des appels d'offres 01/04 N Preparation des offres Reception des offres 31/07 N Depouillement et evaluation m Non objection et approbation Signature du contrat U Contrat signe 31/10 N Grande Comore Terrasements Drainage et na9,onneries mom revetements de chauss6es signalisation et securite Anjouan Tenrasements Drainage et maconneries revetements de chaussees signalisation et securite Moheli Terraseements Drainage et ma,onneries revetements de chaussees signalisation et securite 99 Figure 3: Schedule of implementation- Component: Urban Water Works 2000 2001 2002 2003 2004 2005 Definition des taches 4 tr I tr 2 tr 3 tr 4 tr I tr 2 tr 3 tr 4 tr I tr 2tr 3tr 4 tr I tr 2 tr 3 tr 4 tr I tr 2 tr 3 tr 4tr t Etudes et marches - _ _ - temes de reference pour preparation DC1 _1 Consultation des consultants pour DCE o 31 Preparation des offres _ Reception des offres ot s N Depouillenent et evaluation Non objection et approbation Negotiations Signature Contrats signes 31/071 N Elaboration des DCE (+ plan directeur) Travaux Lancernent des appels doffres 01/08o Preparation des offres I i _ Reception des offres 31/01 N Depouillement et evaluation Non objection et approbation Signature du contrat Contrat signd 31/04 AnJjouan MoutSaMnoudDI Travaux v Ouani Travaux Donioni Travaux -- - Fomboni Travaux- - - 100 Annex 7: Project Processing Budget and Schedule Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project US$300,000 IJS$325,000 Time taken to prepare the project (months) 24 months 54 months ** First Bank mission (identification) 12/07/1996 l2/07/1996 Appraisal mission departure 03/20/1998 10/10/2000 Negotiations 05/05/1998 01/24/2001 Planned Date of Effectiveness _/_/1998 07/01,2001 ** (due to two year suspension of IDA disbursement to Comoros and one year of political turmoil) Prepared by: Direction Generale des Travaux Publics Preparation assistance: PHRD grant Name Specialty Abdelmoula Ghzala (AFTTI) Engineering Philippe de Naurois (AFTTI) Financial Analyst Alison Cave (AFTT2) Urban Planner Wendy Ayres (AFTT2) Environmental Economist Adelaide Barra (AFTT2) Team Assistant Jean-Charles de Daruvar (LEGAF) Legal Agnes Albert-Loth (LOAAF) Disbursement Abdul Haji (AFTS2) Senior Financial Management Specialist Bernard Abeille (AFTS2) Principal Procurement Specialist Jean-Roger Mercier (AFTE1) Principal Environmental Specialist Klas Ringskog (OEDST) Senior Evaluation Officer (quality assurance) Jean-Jacques Raoul (OCSPR) Manager (quality assurance) 101 Annex 8: Documents in the Project File Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project A. Project Implementation Plan B. Bank Staff Assessments * Draft Project Concept Document (PCD) and Departmental Review Meeting Minutes (3/7/97) * Final Project Concept Document (PCD) (3/25/97) * Recommendations of ROC meeting on ISS (7/20/00) * Decision Meeting Minutes (9/27/00) C. Other - Sector work: Tourism, Infrastructure and Environment (1997) * Identification mission BTO including aide-memoire and implementation schedule * Preparation missions BTO including aide-memoires * Preappraisal BTO including aide-memoire (5/27/99) * Appraisal mission BTO including aide-memoire (11/15/00) * Project Infornation Document *Including electronic files. 102 Annex 9: Statement of Loans and Credits (as of December 2000) Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project Difference between expected Original Amount in US$ Millions and actual disbursementsa Project FY Purpose IBRD IDA SF GEF Cancel Undisb. Orig Frm ID Rev'd P052887 1998 HEALTH 0.00 8.40 0.00 7.66 4.53 0.48 P044824 1998 SOCIAL FUND 0.00 11.50 0.00 10.34 5.80 1.43 P000604 1997 AG SERVICES PILOT 0.00 1.60 0.00 0.78 1.02 0.00 P000603 1997 EDUCATION III 0.00 7.00 0.00 6.30 4.72 1.08 P000606 1994 SMALL ENTERPRISE DEV 0.00 5.10 0.00 1.18 0.52 0.00 P000596 1994 POP & HUMAN RESOURCE 0.00 13.00 0.00 0.51 0.46 0.00 P000593 1991 ROAD MAINTENANCE 0.00 6.60 0.16 0.00 0.00 0.00 Total: 0.00 53.20 0.16 26.76 17.04 2.99 STATEMENT OF IFC's Held and Disbursed Portfolio Dec-2000 In Millions US Dollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic Total Portfolio: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic Total Pending Commitment: 0.00 0.00 0.00 0.00 103 Annex 10: Comoros: Country at a Glance Islamic Federal Republic of the Comoros Infrastructure, Water and Environment Project Sub, POVERTY and SOCIAL Saharan Low- Comoros Africa income Developmentdiamond- 1999 Population, mid-year (millions) 0.54 642 2.417 Life expectancy GNP per capita (Atlas method, USS) 350 500 410 GNP (Atlas method, USS billions) 0.19 321 988 Average annual growth, 1993-99 Population (%) 2.5 2.6 1 9 Labor force (%) 2.9 2.6 2.3 GNP Gross per primary Most recant estimate (latest year available, 1993-99 capita enrollment Poverty (% of population below national poverty line) Urban population (% oftotal population) 33 34 31 Life expectancy at birth (years) 60 50 60 Infant mortality (per 1,000 live births) 63 92 77 Child malnutrition (% of children under 5) 26 32 43 Access to safe water Access to improved water source (% of population) 48 43 64 Illiteracy (% of population age 15+) 41 39 39 Gross primary enrollment (% of school-age population) 75 78 96 - Comoros Male 85 102 Low-income group Female 71 86 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1979 1999 1998 1999 Economic ratios GDP (USS billions) .. 0.20 0.20 0.19 Gross domestic investrrenUGOP 17.4 16.5 14.7 Trade Exports of goods and serviceslGDP 14.9 24.9 26.1 Gross domestic savings/GOP -7.0 1.6 0.2 Gross national savings/GDP 15.6 19.3 14.7 Current account balance/GDP 5.6 2.6 0.1 Domestic Ivsmn Interest payments/GDP 0.4 2.5 3.8 aois Investment Total debt/GDP 87.6 101.4 109.0 Savings Total debt service/exports 2.7 5.7 6.2 Present value of debt/GDP 67.4 72.4 Present value of debtlexports 302.6 287.7 Indebtedness 1979-89 1989-99 1998 1999 1999-03 (average annual growth) GDP 2.9 -0.3 -0 5 -1 4 2 0 Comoros GNP per capita 0.3 -2.9 -2.9 -41 -0.6 --Low-income group Exports of goods and services 11.0 6.9 -3.0 5.0 14.2 STRUCTURE of the ECONOMY 1979 1989 1998 1999 GrowthofinvestmentandGOP(%l (X of GDP) Agriculture 40.9 38.7 39.4 i Industry 8.3 12.8 13.1 ' Manufacturing 4.0 5.3 5.4 _7 3 Services 50.8 48.5 47.5 -in Private consumpbon 79.4 86.6 87.4 .20 ne General government consumption 27.6 11.8 12.4 GDI t GDP Imports of goods and services 39.3 39.9 40.6 1979-89 1989-99 1998 1999 Growth ofexports and Imports (I% (average annual growth) Agriculture 4.0 -0.3 -0.5 -1.4 7 Industry -2.3 3.7 -0.3 0.2 Manufacturing 4.9 0.2 0.2 -1.4 15\ Services 3.3 -1 2 -0.6 -1.8 Private consumption 2.9 -1 0 -22.9 18.0 General government consumption 2.5 -7.1 -15.8 3.7 Gross domestic investment -3.9 -0.5 -2.6 -2.0 Is Imports of goods and services 0.3 -0.9 -1.5 1.0 rxEports - -Impors Gross national product 2.8 -0. -0.5 -1.6 Note: 1999 data are preliminary estimates. The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete. 104 Comoros PRICES and GOVERNMENT FINANCE 1979 1989 1998 1999 IntIon 1%) Domestc prices (% change) 25 Consumer prices 5.7 3.5 3.5 20- . Implicit GDP deflator 6 .0 3.5 3.5 |1 c / Government finance (% of GDP, includes current grants) 0 _ Current revenue 30.5 19.9 21.3 94 95 9s 97 9s 9 Current budget balance 3.4 4.3 S -SGDP deflator -.-CPI Overall surplus/deficit -3.4 -4.2 -0.7 TRADE (USS millions) 1979 1989 1998 1999 Export and lnIport vels (US$ nilI.) Total exports (fob) 18 6 8 w0 Otherfood 11 5 7 Other food 2 1 1 e* Manufactures .* Total imports (cif) 43 52 53 40 Food 11 21 22 20 Fuel and energy 2 8 8 Capitalgoods 13 14 o 93 94 95 9e 97 99 99 Export price index (1995=100) .. 173 72 71 Importpriceindex(1995=100) 64 134 136 *Exports uimports Terms of trade (1995=100) 272 54 52 BALANCE of PAYMENTS (USS millions) 1979 1989 1998 1996 Current account balance to GOP (%) Exports of goods and services 36 48 48 4 lmports of goods and servioes 75 76 76 Resource balance -40 -29 -27 o Net income 1 -1 -1 - *s Net current transfers 0 49 35 28 -4 Current account balance 11 5 0 Financing items (net) -13 -12 2 Changes in net reserves 2 7 2 -12 M'mo: Reserves induding gold (USS millions) .. 29 36 39 Conversion rate (DEC, 1ocaL4USS) 212.7 319.0 442.5 461.8 EXTERNAL DEBT end RESOURCE FLOWS 1979 1989 1998 1999 (USS milions) ComposIWon of 1999 debt (US$ mIll.) Total debt outstanding and disbursed 41 174 200 210 IBRD 0 0 0 0 G 13 IDA 3 35 77 73 E 20 Total debt service 0 1 3 3 IBRD 0 0 0 0 B:73 IDA 0 0 1 1 Composition of net resource flows Official grants 11 20 24 15 Official creditors 10 4 -4 -6 Pnvate creditors 0 0 -13 -1 C. 2 Foreign direct investment 3 2 0 D: 102 Portfolio equity World Bank program Commitments 0 0 0 0 A -1I6RD E - Bilateral Disbursements 3 2 3 0 B-IDA D - Other muftilateral F - Private Principal repayments 0 0 0 1 C - IMF G - Short-term Netflows 3 2 3 -1 Interest payments 0 0 1 1 Net transfers 3 1 2 -2 AFTM3 9/7/00 105 Annex 11: Environmental Assessment Executive Summary ISLAMIC FEDERAL REPUBLIC OF THE COMOROS INFRASTRUCTURE, WATER AND ENVIRONMENT PROJECT Environmental Impact Assessment Summary SCETAUROUTE August 2000 DRU 82 456 L 106 Objectives of the study The purpose of this environmental impact assessment (EIA) of the Infrastructure, Water and Environment Project is to evaluate the possibilities, capacities and functions of the resources and natural and social systems of the islands of the Islamic Federal Republic of the Comoros to: * Facilitate the sustainable development decision-making and planning * Forecast and manage the project's negative impacts and consequences * Provide an opportunity for citizens of Comoros to express their views on the potential changes in their environment and living conditions due to the project. The programming and feasibility studies carried out by different donors, particularly the World Bank, have led to the identification of transport and urban water operations. Independently of any technical choices already made, this will study will provide the basis for a dialogue with key stakeholders on environmental and social impacts of the project, including the government, project staff, users, and the general public. It thus provides a framework for consultations intended to achieve several objectives: * Gather the viewpoints of project stakeholders - Evaluate the issues arising from the project - Provide a mitigation plan to minimize potential negative environment and social impacts of the project * Involve the different stakeholders in project decisions. The EIA analyzes the direct and indirect, permanent and temporary impacts of the project on the ecosystems and social systems on each of the three Comorian islands, including cumulative impacts that could drive certain parameters beyond admissible thresholds. It also helps to promote protection and improvement of the environment and of living conditions, by improving the integration of environmental concerns into planned project activities, and gives considerable importance to consultation with the general public. The EIA is subdivided into five principal sections: 1. Analysis of the environmental issues, taking account of the natural resources, fragility of the resource base and potential of the geographic areas concerned. 2. Identification and assessment of the impacts of the project's major transport and urban water supply works. 3. Explanation of the reasons for the choices made, especially in light of environmental concerns, from among the proposed development options. 4. Identification of environmental support measures to mitigate or offset the impacts. 5. Specification of an action program for environmental consultation and training. 107 The last two sections form the basis for an environmental management action plan for the project. Initial situation and major environmental issues A natural environment is rich in resources but very fragile The Comoros islands are small with varied geology, soils, altitude and climate. They have a number of features which make them vulnerable to ecosystem damage. The complex relief of Anjouan and Moheli and the presence of an active volcano on Grande Comore has led to fragmented land use on the islands; fertile farmland is scarce and soils easily erodable. The islands have substantial surface and subterranean water resources, but these are not well identified and are becoming more and more endangered. The islands contain exceptional biodiversity, including endemic species of plants and animals of worldwide importance. However, their habitats are very small, and most endemic species are very sensitive to any disturbance of their environment. Terrestrial and marine plants are highly varied. A high rate of population growth Comoros has a high population density of 238 people per square kilometer. Anjouan has the highest densities of the islands. Population growth is accelerating. Neither sustainable natural resource management nor protection of the environment and natural species can be assured beyond a certain level of population pressure. If concrete and meaningful measures are not put into place immediately, particularly to promote education and economic development, environmental conditions will continue to deteriorate, threatening quality of life, livelihoods and natural systems. Runaway urban growth Runaway urbanization is one of the consequences of rapid population growth. Informal housing settlements are multiplying on the outskirts of all urban areas in Comoros. These settlements have little or no access to clean water and sanitation facilities or garbage collection, and their residents are exposed to disease-causing pathogens and pollutants. Excessive pressure on natural resources The pressure on the natural environment is substantial, and is leading to the rapid disappearance of some natural resources. The coastal strip in particular is experiencing heavy pressure. The coast is very short in Comoros and is therefore vulnerable. From disappearance of the beaches to degradation of the coral massifs, it is not only the survival of natural species that is threatened, but also the liyelihood of people who harvest products of the sea. Moreover, the degradation of buffer zones has made the coastline more and more vulnerable to direct erosion through wave action. This is threatening many inhabited areas and cultural and historical heritage sites about which little is currently known. 108 The situation is no better inland. The threats to the terrestrial ecosystems may be measured by the size of the forest areas that disappear every year. The devastation has been worst on Anjouan. Only a few shreds of the original forest are left; it has been devastated by conversion of forest for agricultural land. Cultivable soils are disappearing and rivers are drying up. Arable soils have washed into the coastal waters, suffocating the coral and covering the sandy beaches with mud. As the soils become less fertile, farmers clear more forest areas and the cycle of degradation grows worse. The tourism potential of the islands, which largely depends on the preservation of their natural environments is already being tapped on a substantial scale. While the situation is extremely serious on Anjouan, it is much less so on the other two islands, particularly Moh6li, the archipelago's best preserved island. Water resources Of Comoros's ecological problems, the one with the most immediate consequences for the inhabitants is the dwindling and degradation of the water resources. The problem of diminishing flows in the permanent waterways, the result of the intensified runoff due to deforestation, is compounded by the degradation of water quality. Not only are there imperfections in the rainwater storage systems, but the supply networks are deteriorating, never having been maintained since they were constructed. Moreover, defective sewage treatment systems are a major source of pollution. Thus, regardless of the mode or source of supply, the risks of waterborne disease are an ever-present threat, especially for young children. Environmental regulations are inapplicable Framework Law No. 94-018 on the environment was enacted in Comoros in 1994. However, there are still no implementing regulations for this law. The applicability of environmental legislation that imposes constraints, which the Comorian authorities have no means of implementing, and which citizens will not readily accept is questionable. Environmental issues that must be addressed Based on the findings of the diagnosis of environmental conditions in Comoros and the concerns expressed by the people themselves, the priority environmental issues are: * Control of urban growth * Solid waste management Control of soil erosion and biological degradation Preservation of the forest cover and its ecological quality Control of natural risks due to humnan activity (tofrential runoff resulting fromn land clearance and soil loss, coastal erosion linked to sand removal) Water resource protection and improvement Restoration, management and protection of marine biodiversity, especially coral reefs 109 * Preservation of exotic species, such as Livingston's flying fox, coelacanth, and turtles * Control of coastal erosion and conservation of beaches * Control of coastal and marine pollution, such as dumping of liquid and solid waste into the sea * Preservation and improvement of tourism potential. Foreseeable environmental impact of the project All operations likely to affect the environment have been covered in this EIA, regardless of donor (International Development Association, European Development Fund and others). These involve works to maintain roads, and construction or repair of water supply networks. Details follow. Transport component The transport component will assist Comoros improve its roads maintenance and management. The periodic maintenance subcomponents will support periodic maintenance of some 183 kilometers of the priority road network. Urban water component The urban water works component will support the rehabilitation and extension of urban water supply infrastructure in Moutsamoudou, Domoni and Ouani on Anjouan, and Fomboni on Moheli. Whenever necessary, the analysis is broken down by period of construction, operation, and maintenance of the proposed project activities. The effects of each of the activities (before implementation of the measures proposed in section 4 of this report designed to mitigate the impacts) are then studied with reference to the key environmental themes: soil, water, natural environment, and quality of life. The impacts were identified by means of a scoping process involving the principal stakeholders in the area of environmental protection (government authorities, nongovernmental organizations, and local associations). It should be noted that the present study focuses on an analysis of the project's environmental impacts. A social impact assessment, "the Behavioral and Social Study of the Infrastructure, Water and Environment Project," has been carried out separately. Main findings * While taken as a whole the proposed project will to some extent increase environmental pressures, some individual subprojects should have positive environmental impacts. These include the construction afnd rehabilitation of water supply infrastructure on Anjouan and Moheli. 110 * Some project activities may have both negative and positive impacts on the environment. These include rehabilitation and extension of gravity-fed water supply networks. * The extension of water supply networks contribute to reducing health risks. It is not possible within the context of the present summary to provide details of all potential impacts of the different project activities. We shall therefore comment on the following selected impacts for each component: Transport component The roads periodic maintenance activities will have a limited impact on the environment since they will involve works on existing roadways. However, traffic tie-ups due to these activities can sometimes lead to accidents during the construction period. Urban water component In the case of water intake works (springwater catchment systems, tapping of groundwater and well construction, river catchment works), there may be some accidental contamination of water by chemical or organic pollutants during drilling or well-building. Construction of spring water or river catchment works requires installation of concrete sills and works within the stream itself, which can also be sources of pollution. The catchment and borehole works do not take up a large area. They generally involve protection perimeters that protect the areas around the catchment works from pollution or environmental degradation. People using the land within those perimeters are subject to certain limitations of occupancy and use. The water is collected in reservoirs, areas that are generally small because of their mountainside location. The reservoirs are a major source of disturbance for the rheophile aquatic fauna accustomed to rapid currents in the higher parts of the watersheds. All existing vegetation on the easement (emprise) where the water pipes will be installed and on the access track will be cleared. The mains, located between the catchments and the reservoirs, will most often cross forest areas that are relatively well preserved. The disappearance of these natural areas and the disturbance of the neighboring areas will be the principal environmental consequence of the installation of water supply works. The easement for the water supply works and associated rights of way may involve certain farmlands. In addition to the taking of land for the easement, the plot owners may suffer from the fragmentation of his fields and the need to make changes in their farming patterns. The magnitude of the impact will depend largely on the nature of the crops concerned. Cash crops with a high value added (such as ylang-ylang) are not expected to be severely affected. The water storage facilities (reservoirs, tanks, basins) are likely to have an impact on the landscape. To perform their role as distributor and pressure breaker, such facilities are 111 generally installed on high ground, easily visible from the surrounding areas. The largest reservoirs (750 cubic meters on Anjouan) can reach the height of a two-story building, and are likely to be extremely noticeable. As for the urban water distribution works (hand-pump tubewells, networks, standpipes, washhouses), the distribution pipes will for the most part be buried underground. They will follow or cross existing highways and roads. As a result, the work of installing those pipes may cause traffic tie-ups at different points and at different times. However, the new water distribution structures will have positive effects on the quality of life and health of beneficiaries. Objectives of the project The overall objective of the project is to improve living conditions and stimulate economic growth in Comoros, while protecting the environment through investments in basic infrastructure. This project reflects the Comorian authorities' growing awareness of the fragility of the island environment and threats to the area's natural resources. The environment has become a national and regional concern, and a number of action programs have been undertaken by the Comorian Government and by the European Union through the Indian Ocean Commission (IOC). The different operations making up the project thus fall within the sustainable development approach. Overall, the project is designed to remedy the gaps in infrastructure and institutional development in two priority sectors: transport, and urban water supply. Transport. The present infrastructure is inadequate to serve the archipelago's long-term economic development prospects. Interactions with other countries and among the islands themselves are minimal. The road network, although quite well developed, is in poor condition due to inadequate maintenance, contributing to increasingly dangerous traffic conditions. Urban water supply sector. There is a deplorable lack of information about the availability of water resources. The present water supply systems, both rural and urban, are obsolete, inadequate and in very poor condition. Water is frequently used in disregard of the rules of elementary hygiene, and the resource is dwindling noticeably, particularly on Anjouan. This situation contributes to the widespread health problems of urban residents. Protecting and managing water resources on the three islands will require preservation of the woodlands carpeting the watersheds to limit erosion, facilitate storage, and replenish the water lost through runoff. Improved water management is a major environmental issue. Measures to mitigate or offset environmental impacts of the project There are two categories of measures to mitigate environmental impacts of the project: those put into place during construction (which apply to all project operations), and those pertaining to easements and operations of the various facilities. These measures form the 112 core of the environmental management action plan, including a public consultation and training plans. Measures during construction * Creation of a coordination and worksite programming unit to manage the heaviest operations * Proposal of environmental clauses to be included in the specifications for companies submitting bids * Organization of an information workshop for companies and government workers who will oversee implementation of measures to mitigate or offset impacts * Application of regulatory measures modeled on French legislation addressing admissible noise levels, worksite cleanliness, water pollution, and implementation of measures to protect archeological sites . Supplementary measures designed to control chronic or accidental pollution, noise, safety, handling of temporary easements and expropriations • Specific requirements for the opening up of quarries and borrowpits (choice of sites and methods of extraction, provisions for extraction, provisions for public safety, extraction plans, prevention of pollution, and orders for restoration of the sites to their original condition). In addition to these measures, which apply to most of the project activities, special measures are proposed to address particular operations (for example, use of quick-setting cement for works located close to the aquatic environment, prevention of erosion resulting from road works, protection of trees growing alongside roadways, safety arrangements for work sites in areas with vehicle traffic, special provisions for the transportation of materials in urban areas, and the like). The measures to be taken during construction will not significantly increase project costs. Most are either regulatory, administrative or organizational measures, or actions that are normal for efficient work site operations (storage and reuse of excavated dirt, cleanup activities, and the like). Most of these measures will be included in the contractor's bid price. Moreover, experience has shown that not only is the cost of addressing environmental concerns generally low in relation to the initial cost of works, but that this cost is largely offset by the resultant savings in terms of future upkeep or maintenance of the infrastructure concerned. Measures pertaining to easements and operation offacilities For each component, the principal measures recommended may be summarized as follows: Transport component Planting program to compensate for felled trees * Protective measures to limit pressure on the forest 113 * Prevention of noise pollution * Communication and sensitization activities to control unsafe road conditions * Installation of signs and signals and other safety installations. Urban water supply component * Creation of close-in and remote protection perimeters around the catchment works and tubewells supplying drinking water to the communities * Hydrobiological study of the streams to be tapped for the catchment projects * Protection of forested hillsides constituting the high watersheds where the catchment works are installed * Compensation for agricultural losses (financial, land, or assistance in kind) * Landscaping to incorporate the access roads and reservoirs * Protection of the Moutsamoudou river watershed * Vegetation management within the reservoir (floating barrier option) * Protection of the Hahaya tubewell (subject to the results of a hydrogeological survey) * Biological monitoring of the marine environment and of the bacteriological quality of the water. The total cost of the measures in connection with easements and operation of the works is estimated to be about KMF 210 million or approximately US$400,000. Most of these costs will be included in the construction contracts. Environmental consultation and training plan The project involves community participation to enable primary stakeholders to voice their views concerning potential changes to the environment, and to take ownership of project decisions. This EIA is an excellent vehicle for organizing consultations and reaching consensus. For this reason, the last part of this study contains specific proposals for providing information to citizens, sensitizing them to environmental issues, and consulting with them on these issues. Specifically, this part of the study covers: * The processes involved in consulting the public, taking account of the needs of the different groups while also informing them about and sensitizing them to the underlying environmental issues. * A training plan for administrative personnel involved in either the implementation and supervision of measures to improve the environmental performance of the project, or in carrying out public consultations. It is important to emphasize that consultations were held during the preparation of the EIA. However, these consultations were limited to the principal stakeholders involved with environmental management (government, nongovernmental organizations, and the major local associations). Consultations with primary stakeholders were carried out for the behavioral and social study that was conducted at the same time as the EIA. 114 Dialogue with stakeholders will be expanded while the detailed designs for individual project activities are being prepared. Consultations should involve project staff, local authorities, and other key stakeholders. Proposals for the next steps for public consultation are part of this EIA. Provision of information, consultation and sensitization This part of the study, carried out with the help of the Ulanga association, is based on the premise that the Comorian Government suffers from a lack of representation in the regions, a situation which is nevertheless offset by an ever-increasing presence of traditional administrative bodies and local, regional and national associations. These have now come to play an important role in the country's development process. Following a description of the local administrative structure and social organization in the Comoros, with its local variants, the study defines the importance and role of local associations. The resource persons and principal contacts necessary for a public information and consultation process are listed for each of the main activities of the project. The broad directions and specific methods of a communication plan are outlined for each of the project's components. It focuses on three major areas: • Providing general information to the public, presenting the project objectives and the associated issues to the people affected by each activity. * Organizing consultations with the stakeholders, consisting of surveys of target groups and the principal stakeholders. - Developing sensitization campaigns, designed to involve the local people in management of the project operations. The aim is to give the project the transparency and media impact needed to attract the different actors and the people in general. They will mainly relate to the urban water subcomponent in Moroni. For each of these areas the target groups, strategies for providing information (verbally or by using visual aids), and the organizations that could implement them are identified. This section of the EIA also provides information on (a) the tasks needed to provide information, conduct consultations with stakeholders and sensitize themn about environmental issues; (b) groups or organizations responsible for performing those tasks and the potential organizations that may provide support; (c) approximate time required for the different actions; and (d) the estimated cost of the proposed actions. The total cost of the information, consultation and sensitization activities to be carried out under the project is estimated at around KMF 5 million, or approximately US$10,000. This cost will be financed under the project. 115 Training activities Protecting natural resources requires that governments and others to fully consider the environmental impacts of their activities. In Comoros, special training is needed for all those involved in the design, implementation, maintenance and operation of project activities. This chapter summarizes the variety of potential environment impacts of project activities, suggests actions to address them, and lists the expertise needed. Finally, it describes the principal themes to be addressed and the different training modalities to be used. Given the important role of the government departments (in particular the DGI and DRIs to be set up) and the Directorate General of the Environment) in implementing measures to protect the environment, it is essential that their staff receive training. For this purpose, five one-day workshops are proposed focusing on the following themes: * Basics of the general ecology General training in environmental studies Special presentation of an environmental feasibility study Special presentation of an EIA * Training in methods of public consultation. It is also proposed to provide special training for an official from the Directorate General of the Environment working on environmental problems linked to infrastructure projects. This would consist of a four-month internship abroad. Training activities also involve two additional actions directed at the public: . Publication of overviews of project operations, including descriptions of activities, administrative procedures being followed, potential environmental impact of activities, and significance of impacts on the country's communities. * School courses to educate students about the environmental issues of the project. It is expected that students will in turn educate their family members about these issues. The overall cost of the recommended training activities would be around KMF 25 million, or approximately US$50,000. This cost will be financed under the project. Environmental management action plan The environmental management action plan specifies in detail the measures to be taken to mitigate or offset the environmental impacts of the project. It also provides details of the public consultation plan and the training plan. Because some the details of project activities are not yet known, the environmental management action plan does not address any particular activity. Therefore it does not 116 specify fixed deadlines. However, it does identify the environmental action plans that will need to be implemented to address environmental impacts of each principal project activity once the timetable for implementing the activities is specified. The total cost of the environmental management action plan is around KMF 240 million, or approximately US$460,000 million, divided between: * Measures to mitigate environmental impacts or compensate for them: KMF 210 million ($400,000) * Consultation and training: KMF 30 million ($60,000). This budget should, however, be regarded as a minimum. It is possible that other mitigation or compensation measures will be identified through the additional studies and surveys to identify the environmental impact of particular activities (hydrogeological surveys, flora surveys, landscaping studies, and the like). The entire environmental management action plan is to be financed by the IDA Credit. Financing of mitigation and compensation measures is linked to the implementation schedule for the project activities. To assure that the views of the stakeholders are fully taken into account, further public consultations will take place before the detailed designs of project activities have been produced. The information or sensitization campaigns will take place shortly before the actual work prograrns are launched. It should be noted that, in general, the DGI (or DRIs) will responsible for implementing the measures to mitigate or compensate for the environmental impacts of the project and for all associated information, consultation and sensitization activities. 117 MAP SECTION IBRD 31236 0~~~~~ 0 - >7 ~~~~~~~~~~~~~~~~~~0 E E EE < 0 z- g \ DE *C C E O Z j ~ ~~~~~~~~0 c IF N~~~~~ 0 b 'N N AZAI OAMIUd C:~~~~~~~~~~~~~~~~~~~~~ 2~~~~~~~~~~~~~~~~~~~~~ERAY20 } | i } tt Z - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4'5- 5& 43°40 434 A°5' v A' Z SEYCHELLES COMOROS z > ~ COMOROS MOHELI-INFRASTRUCTURE, WATER - Ot -12°lS' 5 AND ENVIRONMENT PROJECT M . m ~ _Mbotsei si 4 3 M.a K5 v 31-~~~~~~~Mtokoudia c : = MADAGASCAR OCEAN -2O 2O-- v < \ ~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~402 5 0 Thismp-opmdcdby&m.p iou _it.0Tw. nk. Th. boondoies, cform dno,mni-iaom ood .y .ibr i,,yooIo Miringoni . m °rthibn m>o ,,˘b5X,d, O rpIly, a of ThoWodd Br.k l2~~~~~~~~~~~~2O'~~~~~~~~~~ 1lyz 7,1 i Oualiah( 12'20' Ziroudani aS _unani -Hgmoia12'20i' . . ~~~Ndrondroni t Ldeen ngani d~~~~~~~~~~~~~~~~~~~wn Nioumrachou-- ,; O l mi Mt-haow klorwd ' ->r A46a ~~~~~~~~HarnavounWan Island - MognagniMBui Iskmnd . .Q. / , . A .> t URBAN CENTERS COVERED BY THE PROJECT FOR THE WATER COMPONENT K Ou6n6faiu' island , IsOvl#t 1, 'ln Chandi PROJECT ROADS Kanzon; 'Islnd 3RD H*HWAY MAINTNANCE PROJECT ROADS 12'25 ' 2'25' MAIN ROADS wl L 2I I I 6 cj SELECTED CITES/TOWNS > KILOMETERS ARR w X ~~~~~~~~~~~~~~~~~~~~~~~~~~~AIRPORT c -< 43o40* 43>454 L- g _ I I o IBRD 31238 43010' 43' 2 -4 ,- 5Ok ZBoingoua Kouni ; | ,tZ SEYCHELLES z Mitsoamiou ni > COMOROS r bJ- \ AOuZioN ". @ t tm ';'1~~~~~~~niow v<_4Mandza vV / ONdroud6 w; Ojomani' ~~~~~~~~zaic | Djomael l \ \ Chemn ~~~~~~~~~~~~Nio6mzmilina 7, ;'°>IDA .H_lendueje IJU)ll,s,IIIIIIII'MADAGASCAR; DA OCEAN Ntsaou6ni Mo uaCIja, _05 ivemb ni Dimadjou 43030 Domon & w r 11030 M66ni S66yoni 11'30' COMOROS . Mil6vHni 6roumbdi GRANDE COMORE- INFRASTRUCTURE, WATER AND EWIRONMENT PROJECT Oussivo t Si**Kh PROJECT ROADS Vanamrouan 3RD HIGHWAY MAINTENANCE Dza a Koimba,RPROJECT ROADS (CLOSED IN 1997) a ni MAINChmoni - ROADS Ntsoud.in 00 SELECTED CmES/TOWNS -1 l'0' (tsondr Madu6ni w~ n A K 1E*$idjou NATIONAL CAPAL I alimonn\ G5E RA +AIRPORTS MORONIs d Tsidj6unA /COMO R E 'Tagaliou Ikoni Mkazj ~~t >__1 ~~~~~~~Oungoni oE Boboni P io djni Mouandzaza- Am i Selea Tsinimouapanga Badamad ji Srdimoni' 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~15 - Chouani _\Bo4r 11050 0 Md1e'ez Tsinimouach,ngo Nivtjadzaha- S Kourani>r_ _Koura -in~oni ouh j R | Nioumami 01 2 4 6 81 to° MA bosa t__ _I __ _I __ _I ___I ISim boussa KH.OMETERS Ovzibuani XIs nmap ws pd dby Mop Dmign UikaiThe oWadSo .I. fl'. b radarns, coor, deoorniohlotAs nd ooY oter inoroooaion. '^ showno thismapdonotimpny, anthportfof TWaodBntid m A oI _urov6ni Gr,pon j nzenfon the ot u of're, o,y ov any 5 $ir Am uanl A=110' eenforaccapf;menofsuch-xirieL - 43a2 - ,UR2indiU FEBRUARY 200C