Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB2467 Project Name Dushanbe Water Supply Rehabilitation Project Region EUROPE AND CENTRAL ASIA Sector Water Supply (100%) Project ID P101592 Borrower(s) Implementing Agency Dushanbe Vodokanal 14 Aini Street Tajikistan Environment Category [ ] A [X] B [ ] C [ ] FI [ ] Date PID Prepared July 11, 2006 Estimated Date of Appraisal Authorization September 7, 2006 Estimated Date of Board Approval October 30, 2006 1. Key development issues and rationale for Bank involvement About 30 percent of Tajikistan’s population live in urban areas and over half of them in Dushanbe, the capital city. Responsibility for the delivery of water supply and sewerage services in Dushanbe has been decentralized to the Dushanbe Municipality and its water utility, the Dushanbe Vodokanal (DVK), a, financially and administratively autonomous public sector enterprise which operates, in principle, on a commercial basis. The water supply system of Dushanbe suffers from systemic problems, associated with the poor condition of its water and waste water networks, inefficient operations of its assets and poor financial performance. As a result, water supply in Dushanbe is highly unsafe, unreliable and of poor quality. The Dushanbe Water Supply and Sanitation Project (P057883), with an IDA grant of US$17 million, approved in June 2002, sought to address some of these problems by financing a program of strategic rehabilitation of DVK’s assets, and water supply network, and improve the quality and reliability of service provision. The project was designed as a first step towards improving water supply services in Dushanbe, focusing on the most urgent works that would produce immediate and demonstrable results . At appraisal, it was estimated that Dushanbe’s investment needs to improve water supply were in the range of US$150 million. Funding under the current project, has already been fully committed and disbursed, but there remains significant investment needs in the sector. At appraisal of the parent project, it was recognized that full rehabilitation of the DVK system would be a long and costly process that would require significantly more resources than those provided under the project. The proposed additional project is therefore expected to continue with strategic rehabilitation of the network, leverage the impact and development effectiveness of the on-going project, and maximize its development outcomes Page 2 2. Proposed objective(s) The development objectives of the parent Dushanbe Water Supply Project were to improve the safety, reliability, efficiency and financial viability of water supply services in Dushanbe. The development objective would be achieved through: (a) strategic rehabilitation and efficient improvement of existing facilities in critical condition; (b) institutional strengthening of the utility Dushanbe Vodokanal State Unitary Enterprise (DVK) through a performance-based service contract (SC) with an internationally experienced water utility operator; and (c) strengthening of DVK’s financial capacity through improved financial management and commercial practices. These development objectives are consistent with the proposed project for additional financing, and therefore will not be revised. 3. Preliminary description The main aim of the proposed Water Supply Rehabilitation Project is to enable DVK to continue with the rehabilitation of the Dushanbe water supply system, and allow it to scale up current activities and thereby improve sustainability. The additional financing will contribute towards meeting the huge investment needs of the Dushanbe water supply system, which are estimated to be in the region of US$150 million. Continued repair and rehabilitation of the system is in line with the priorities of GOT and DVK, who recognize the importance of improved water supply for Dushanbe in poverty reduction as well as health and environmental problems. The Project would comprise five main components (totaling US$5million): (a) installation of sodium hypo- chlorine equipment for disinfection of water (US$1.5 million); (b) additional procurement of equipment to complement ongoing works, in particular, network rehabilitation, water meters, district metering, and extension of the contract with the international operator (US$1.5 million); (c) consumables and materials including chlorine and coagulants (US$0.3 million); (d) cleaning and rehabilitation of 28 reservoirs and rehabilitation of 3rd level pumping stations for these reservoirs (US$1.2 million); and (e) audits and operational expenditures and consultant services (US$0.5 million). 4. Safeguard policies that might apply A review of the potential environmental and social impacts and appropriate mitigation measures was carried out during the preparation of the original project, and the project was classified as Category B for environmental impacts. Appropriate mitigation measures were prepared and have been used throughout the implementation of the project, and the project has not had any fiduciary, environmental, social or other safeguard problems. Activities proposed under the Rehabilitation Project are neither expected to change the environmental categorization of the project (Category B), nor to trigger any new safeguard policies. 5. Tentative financing Source: ($m.) BORROWER/RECIPIENT 0 INTERNATIONAL DEVELOPMENT ASSOCIATION 5.00 Total 5.00 Page 3 6. Contact point Contact: Jonathan S. Kamkwalala Title: Lead Financial Analyst Tel: (202) 458-2556 Fax: (202) 614-0902 Email: Jkamkwalala@worldbank.org