Document of The World Bank Report No. 15089-CH STAPF APPRAISAL REPORT REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT MARCH 4, 1996 Infrastructure and Urban Development Division West Central Africa Department Africa Regional Office CURRENCY EQUIVALENTS (as of December 14, 1995) Currency Unit - Cedi US$1.00 - Cedis 1,425.00 Cedis I million - US$ 701.75 SDR 1.0 - US$1.485 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank CAS Country Assistance Strategy CIDA Canadian International Development Agency DACF District Assemblies Common Fund DUR Department of Urban Roads EPA Environmental Protection Agency ERR Economic Rate of Return GAMA Greater Accra Metropolitan Area GDP Gross Domestic Product GLSS Ghana Living Standards Survey GOG Government of Ghana GTZ Gesellschaft fUr Technische Zusammenarbeit (Germany) GWSC Ghana Water and Sewerage Corporation IDA International Development Association KfW Kreditanstalt fur Wiederaufbau (Germany) LGDP Local Government Development Project (GOG/IDA) MA Metropolitan or Municipal Assembly MF Ministry of Finance MLGRD Ministry of Local Government and Rural Development MWH Ministry of Works and Housing MRH Ministry of Roads and Highways NEAP National Environmental Action Plan NGO Non-governmental organization ODA Overseas Development Administration (U.K.) O&M Operation and maintenance PTA Parent-Teacher Association SSP Strategic Sanitation Plan TOR Terms of Reference TSC Technical Services Centre (MWH) UESP Urban Environmental Sanitation Project UNCHS United Nations Centre for Human Settlements UNDP United Nations Development Programme UST University of Science and Technology (Kumasi) WMD Waste Management Department FISCAL YEAR January 1 - December 31 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT TABLE OF CONTENTS Paize No. CREDIT AND PROJECT SUMMARY .............................. ..............................i 1. SECTORAL CONTEXT ...........................................................1I A. Urban Development ...........................................................1I B. Sector Strategies ............................................................9 2. THE PROJECT ............................................................11 A. Objectives ........................................................... 11 B. Description ........................................................... 11 C. Project Cost and Financing Plan ........................................................... 21 3. PROJECT IMPLEM ENTATION ........................................................... 25 A. Institutional Arrangements ........................................................... 25 B. Operational Plans and Manuals ........................................................... 27 C. Reporting, Monitoring, and Review ........................................................... 27 D. Procurement ........................................................... 28 E. Disbursement ........................................................... 31 F. Accounting and Auditing ........................................................... 32 4. JUSTIFICATION, IMPACTS AND RISKS ........................................................... 33 A. Benefits ........................................................... 33 B. Poverty Impact ........................................................... 36 C. Environmental Impact ........................................................... 36 D. Risks ........................................................... 37 5. AGREEMENTS REACHED AND RECOMMENDATION .. 39 A. Agreements Reached at Negotiations ........................................................... 39 B. Condition of Board Presentation ........................................................... 40 C. Conditions of Effectiveness ........................................................... 40 D. Condition of Disbursement ........................................................... 40 E. Recommendation ........................................................... 40 This report is based on the findings of an appraisal mission in July 1995 and a post-appraisal mission in October 1995. The appraisal teatn comprised Alan Carroll (Sr. Urban Development Specialist and Task Manager), Robert Roche (Sanitary Engineer), Chris Banes (Consultant, Municipal Engineer), Godfrey Ewool (Civil Engineer), Alan Coulthart (Sr. Municipal Engineer), Jack Bahal (Sr. Finance Specialist), Sandra Cointreau-Levine (Consultant, Solid Waste Specialist), and Ato Brown (Sanitary Engineer). Farida Khan (Operations Assistant) prepared the financial tables and implementation schedule. Perla San Juan and Elizabeth Novatny (Staff Assistants) prepared the project documentation. James Wright is the Division Chief and Olivier Lafourcade is the Department Director for the operation. Annexes 1. Letter of Sector Policy 2. Detailed Cost and Financing Tables 3. Monitoring and Performance Indicators 4. Implementation Schedule 5. Disbursement Schedule 6. Economic Analysis 7. Drainage Component 8. Sanitation Component 9. Solid Waste Component 10. Community Infrastructure Upgrading Component 11. Institutional Strengthening 12. Land Titling 13. Procurement Schedule 1996-97 - Key Contracts Map IBRD No. 27584 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Ghana Implementing Agencies: Ministry of Local Government and Rural Development (Lead Ministry); Technical Services Centre of Ministry of Works and Housing; Metropolitan and Municipal Assemblies of Accra, Kumasi, Shama-Ahanta East (Sekondi-Takoradi), Tema, and Tamale. Beneficiaries: All residents of the five cities (total about 3.5 million); sanitation and upgrading would target some 500,000 low-income people. Poverty: Included in Program of Targeted Interventions. Credit Amount: SDR 47.8 million (US$71.0 million equivalent) Terms: Standard IDA terms with 40 years maturity. Project Description: The project would cover Ghana's five major cities (Accra, Kumasi, Sekondi-Takoradi, Tema, and Tamale). It would have five main components: (i) storm drainage, (ii) sanitation, (iii) solid waste, (iv) upgrading of low-income urban areas, and (v) capacity- building. Physical components represent about 83 percent of total project costs; capacity-building, design and supervision services the other 17 percent. The drainage component would improve primary and secondary drains to alleviate chronic flooding problems in Accra, Kumasi and Sekondi-Takoradi. The sanitation component would cover all five cities and include high-priority household, school, and public sanitation facilities as well as septage treatment and disposal facilities. Emphasis would be placed on strengthening the capacity of city governments to plan and manage sanitation services while contracting with private providers for most construction, operation, and maintenance functions. Assistance in solid waste would cover the development of new landfill sites in Kumasi, Sekondi-Takoradi, and Tamale. The project would also provide financial and technical assistance for the privatization of refuse collection and equipment maintenance in all the cities. The community upgrading ii component would cover seven lower-income areas in Accra, Kumasi, and Sekondi-Takoradi. Upgrading sub-projects comprise drainage, water supply, sanitation, solid waste, roads, paths, and street lighting. The upgrading component is being undertaken with active community participation in preparation and implementation. The capacity-building component would provide technical assistance, training and equipment to improve the ability of the five participating MAs to manage basic services. Special emphasis would be given to cost accounting of waste management, contract management and local financial administration. The project would also seek to improve the capacity of the Ministry of Local Government and Rural Development (MLGRD) and other central government agencies involved in the environmental sanitation subsector. Financing Plan: IDA US$71.00 m. Gov't US$ 8.94 m. Local Gov'ts & Benef. US$ 5.32 m. Co-Financing* US$ 4.01 m. *Nordic Development Fund ($3.40 m.); Netherlands ($0.60 m.) Benefits: (i) The project's improvements in drainage, sanitation, and waste management would contribute to better hblih and thereby raise the productivity of residents, especially the poor, in the five cities. Some components, such as solid waste landfills, would have city- wide benefits. The sanitation and community upgrading components would benefit around 600,000 lower-income people. Although it is well-established that major urban health problems, including diarrhea, intestinal parasites, and vector-borne diseases, require adequate sanitation and waste management, the health benefits of these interventions are not quantifiable due to methodological limitations. (ii) Economic rates of return (ERRs) have been calculated for the storm drainage works (35 percent of project cost) based on quantification of benefits from flood allviation including damage to buildings, land, or other physical property that would no longer occur and incremental losses of income or productivity that would be prevented. The ERRs, ranging from 32 percent to 48 percent, show that the drainage investments would be amply justified. (iii) The project's capacity building for improved local revenue mobilization, cost recovery, and privatization of services would prolong the useful life of facilities, improve efficiency, and mobilize additional funds. iii Risks: (i) Project implementation may be delayed by the weak capacity of the Metro and Municipal Assemblies. Under Ghana's emerging sanitation and waste management policies, the MAs would increasingly manage the work of private contractors who are to be responsible for the direct provision of most infrastructure and services. The project would attempt to minimize the risks associated with the MAs' weak capacity by limiting the numbers and sizes of components that each MA would manage; requiring each MA to have a basic core staff assigned to the project; providing support for the hiring of contractors to help with technical and financial tasks; ensuring that the central implementing agency supervises and monitors the MAs adequately; and providing substantial training to the MAs' officials and staff. (ii) Counterpart funds may not be available as required. It would be addressed by keeping the required counterpart fund contribution modest (10 percent for the GOG and 3.9 percent for the MAs as a group). The GOG and MAs' combined contribution in the peak years of implementation would represent only around 1.5 percent of the national 1996 development budget. (iii) Cost recovery and general local revenue mobilization may not be implemented effectively, resulting in inadequate maintenance. Household, school, and public sanitation facilities pose a low risk, as these would be provided on a demand basis and would depend largely on direct user maintenance. Drainage also has a low risk of maintenance failure. Sensitivity analysis indicates that primary and secondary drainage would provide high economic benefits even if maintenance is well below the optimum. This probably applies as well to the sanitary landfill facilities. The septage treatment facilities would be simple, modest-sized stabilization ponds with O&M costs that are easily absorbed by the cities' budgets. The risk of inadequate O&M funding is being addressed through (i) a credit covenant requiring the MAs to allocate O&M funds to separate program budget lines for waste management and drainage, (ii) an intensive effort to build ownership of the project on the part of the Metropolitan and Municipal Assemblies during preparation and up to effectiveness, and (iii) the provision of a considerable amount of capacity- building relating to O&M during implementation. Map Number: IBRD No. 27584 Project ID No.: 973 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT 1. SECTORAL CONTEXT A. URBAN DEVELOPMENT Urban Economy 1.1 About half of Ghana's total GDP is non-agricultural, in industry and services. These largely urban-based sectors of the national economy have been the most dynamic. Between 1980 and 1994 the industry and services sectors grew on average by about four percent and seven percent per year respectively, while the agriculture sector grew at about one percent. Improved economic growth in Ghana over the medium term future will depend in large part on achieving higher agricultural production and exports. At the same time, growth of the agriculture sector is likely to foster the development of urban-based activities linked to it. These include the processing of wood and other products, the transfer and storage of farm outputs, and the provision of commercial and financial services. Ghana's current drive to promote new investment, both foreign and domestic, would also contribute to the development of new manufacturing enterprises (catering to both the export and domestic markets) in urban areas. 1.2 Comparative country data show that economic development and urban growth are closely linked, that per capita incomes are consistently higher in urban areas, and that urbanization increases with economic growth more rapidly at lower income levels than at higher ones. Ghana, with a GNP per capita of about $430 (1994) and about one-third of its population urbanized, has a substantially smaller portion of its national economy in non-agricultural sectors than other countries with similar income and urbanization levels. This suggests that, as Ghana's national economic performance continues to improve, the share of urban-based economic activities is likely to expand considerably faster than in the past. 1.3 The Greater Accra Metropolitan Area (GAMA), which includes cities of Accra and Tema, accounts for 15 to 20 percent of GDP and employs around 10 percent of the national labor force (one third of the national urban labor force). Accra and Tema house the majority of Ghana's industries, from micro-enterprises to large plants. Major financial institutions, government ministries, parastatals, and multinational corporations have their head offices in Accra. Accra's primary market linkages (as both a purchaser and seller) are with Kumasi in the Ashanti Region and Sekondi-Takoradi in the Western Region. 2 1.4 Tema is Ghana's primary port, handling about three quarters of all goods shipments. The remainder goes through the port of Takoradi. Both Kumasi and Sekondi- Takoradi have diversified economies comprising small-scale industry, trade, and services. Tamale, the main city of the north, is a mainly a trading and governmental service center. Urban Population 1.5 Economic growth in Ghana is bringing about a transition from a predominantly rural to a quasi-urban society. Over the past three decades, the urban population, estimated at 5.5 million in 1993, has consistently grown at a higher rate than the national population. The level of urbanization--the proportion of total population living in urban areas--rose from 26 percent in 1965 to 35 percent in 1993. The total population is projected to reach 20 million by the year 2000. At the current urban growth rate of 4.2 percent per year, the urban population would double in 17 years. The country acquires about 275,000 new urban dwellers each year, which is the equivalent of adding a city the size of Kumasi every three years or four cities the size of Cape Coast each year. 1.6 There are approximately 185 urban settlements in Ghana, with the capital, Accra, accounting for about one quarter of the urban population. The two largest cities, Accra and Kumasi, together contain about 41 percent of the urban population, while the five largest cities (Accra, Kumasi, Tema, Sekondi-Takoradi and Tamale) account for about 59 percent of the total (see Table 1). Regionally, about 60 percent of the urban population is concentrated in the Greater Accra, Ashanti and Eastern regions, all three of which are located in southern Ghana. Table 1: Population Estimates for Five Largest Cities (Thousands) Sekondi- Accra Kumasi Takoradi Tema Tamale Assembly Area (Km2) 241 168 790 163 241 Built-Up Urban Area (%) 95 80 20 60 40 Urban Area (Km2) 230 135 160 100 100 Assembly Total Population: 1995 1,580 880 400 370 300 2015 3,145 1,750 800 735 600 Assembly Urban Population: 1995 1,500 750 300 350 250 2015 3,100 1,550 620 720 520 Source: Ghana Statistical Service; Departnent of Town and Country Planning Tlhe GOG defines an urban settlement as having a population of 5,000 or more. 3 Urban Poverty 1.7 The World Bank's Extended Poverty Study (1995), using data from the Ghana Living Standards Surveys (GLSS) of 1987-88 and 1991-92, defined a monetary "poverty line" of two thirds of mean per capita household expenditure (in constant May 1992 Accra prices). This is estimated at Cedis 132,230 per year (about US$300 using the average 1992 exchange rate). 1.8 The data indicate that the national incidence of poverty (the proportion of the population below the line) fell from 37 percent in 1987-88 to 31 percent in 1991-92. The depth of poverty also declined: the mean expenditures of the poor were about 12 percent below the poverty line in 1987-88 and about 8 percent in 1991-92. According to the data, there were about 1.46 million poor people in urban areas in 1992. This breaks down into about 350,000 in Accra and about 1.11 million in other urban areas. The gap between urban and rural poverty appears to be much smaller than suggested by earlier profiles. In 1992 the incidence of poverty was 33 percent in the rural forest area and 38 percent in the rural savannah area. The percentage of poor people was found to be 23 percent in Accra and 28 percent in other urban areas. The national decline in poverty between 1988 and 1992 appears to be due mainly to an increase in non-farm self-employment and an increase in crop production. While it is important for Ghana to focus on the alleviation of rural poverty, it is critical to simultaneously address urban poverty issues and take measures to address them before they assume unmanageable proportions. 1.9 The urban poor tend to cluster in identifiable areas of Ghana's major cities. Various studies have shown that lower-income urban areas have the highest densities, the lowest social indicators (education and health), and the lowest levels of infrastructure and services. They also account for the vast majority of all epidemic and preventable diseases. A 1991 survey of services in 17 lower-income communities in Accra yielded the following profile: Secondary roads are few and unpaved or non-existent. Many sections of the communities are inaccessible by vehicle. In nine of the 17 communities the share of secondary roads rated "bad" was over 50 percent (in five it was 70 percent or higher). All the communities have pipe-borne water systems, but in 10 of the 17 communities less than half of the houses have connections. The quality and reliability of the water supply varies. Drainage is poor, with numerous localized flooding problems. The few existing drains tend to be badly built and clogged by rubbish and silt. 4 Sanitation is very bad: there are few household toilets or latrines; public toilets are in disrepair; pan latrines are still widely used despite having been banned; night soil is dumped in and around the communities and flows into drains; large numbers of people defecate in the open. Solid waste collection is erratic or non-existent; there are few communal rubbish containers; sometimes these are not emptied regularly; open rubbish dumps are common. Most houses have electricity, but quality is substandard (low voltages and interruptions). Street lighting is non-existent or inadequate. 1.10 A 1991 household survey found that about one third of the low-income population of Accra lacks access to piped water and must purchase water from vendors. These households pay five to ten cedis per bucket, or about one cedi per gallon. Households with access to metered or unmetered piped water pay about a quarter of this price. The cost of purchasing water from vendors can come to 10 percent of the monthly income of a low income household. This, together with the irregularity of water supplies and low levels of health education, constrains the amount of daily water use by the urban poor for drinking, cooking, and hygiene. 1.11 A 1993 study found that, of the 16 significant diseases reported in Accra, 13 are linked to poor housing and ventilation, an unsanitary environment, contaminated drinking water, poor drainage and lack of facilities for waste disposal. The higher occurrence of disease in low-income areas means greater loss in work days and a higher outlay of expenditure for medical attention for the poor than for those living in better physical environments. Institutional Framework for Urban Development 1.12 PNDC Law No. 207 (1988) initiated a shift in the structure of governmental authority whereby the central government devolved to local government Assemblies the responsibility for policy formulation, planning, and implementation with respect to, among other things: community development, town planning, public works, roads and streets, markets, sanitation, and motor parks. This shift of authority is occurring in two directions: vertically from 22 central government ministerial departments to District Assemblies; and horizontally, at the local government level, from GOG staff performing executive functions to members of District Assemblies performing legislative functions. Two thirds of the members of each District Assembly are elected. The latest local government elections occurred in March 1994. 5 1.13 The Local Government Act of 1993, which replaced Law 207, gives District Assemblies the power to "exercise political and administrative authority in the District [and] provide guidance, give direction to, and supervise all other administrative authorities in the District" (Article 10). The 1993 Act does not mention specific sectoral functions of local Assemblies; but it devolves to them responsibility for "the overall development of the District", "the development of basic infrastructure", the provision of "municipal works and services", and the "management of human settlements and the environment", among other activities. The 1993 Act also refines the structure of local governments by distinguishing among three different types: Metropolitan Assemblies (requiring at least 250,000 population); Municipal Assemblies (requiring at least 95,000 population); and District Assemblies (which must have at least 75,000 people within their boundaries). 1.14 The assumption of responsibilities and building of capacity by local governments will be a long-term process. Meanwhile, the Ministries of Works and Housing (MWH) and Roads and Highways (MRH) continue to play major roles in urban development. MWH is the implementing agency for larger drainage projects (mostly donor funded) in the major cities. The Ghana Water and Sewerage Corporation (GWSC), a dependency of MWH, remains the single national parastatal for water supply (though a major policy decision to create several operating companies, commercialize services, and privatize certain functions is being considered by the Government). The Technical Services Centre (TSC) under MWH is the implementing agency for two World Bank-supported urban projects (Urban II and the Local Government Development Project). MRH's Department of Urban Roads (DUR) handles road construction projects in the five main cities (including those financed by the World Bank). 1.15 The Ministry of Local Government and Rural Development (MLGRD) has the mandate to: (a) develop policies and legislation with respect to local government; (b) supervise and monitor local administration; (c) assist local governments in drafting by- laws (and vetting them); (d) monitor the financial performance of the local govermments and promote internal auditing of their accounts; (e) provide guidelines to local governments with respect to revenue collection; (f) promote capacity-building of local governments; (g) provide guidelines and technical assistance for the delivery of environmental sanitation services; and (h) facilitate the provision of offices and residential accommodation for local government staff. In addition, in the absence of actual implementation of composite budgeting, the MLGRD serves as an interlocutor between local governments and international donor agencies with respect to projects that are appropriately implemented at the local level. Urban Infrastructure and Services 1.16 Deficient urban services--water supply, sanitation, urban roads, and others--is a major constraint on urban productivity in Ghana. Mobilizing more public and private capital for investment in urban infrastructure is a major need, along with using financial and institutional resources more efficiently. The huge gap between investment 6 requirements and actual funds likely to be available highlights the tremendous importance of (a) cost recovery through user fees and local taxes and (b) the use of appropriate design standards. With assistance from the World Bank, cost recovery for urban services is steadily expanding, though much remains to be done. The use of appropriate, low-cost standards, as opposed to conventional industrialized-country standards, can multiply the effectiveness of investment between two and five times. 1.17 Water Supply: GWSC estimates that about 75 percent of the urban population is covered by piped water systems, down from a high of over 90 percent in the late 1970s. Total production capacity from piped systems equals around 85 liters per capita per day, but about 50 percent of this water is lost or unaccounted for. The five main cities of Ghana (Accra, Tema, Kumasi, Sekondi-Takoradi, and Tamale) all suffer from insufficient quantities of treated water, although it appears that the water that is produced is generally of acceptable quality. Three large-scale piped water supply schemes (supported by IDA, AfDB, and CIDA) are currently on-going at an estimated cost of $222 million, covering 87 systems responsible for over 80 percent of GWSC's production capacity. 1.18 Sanitation: Tema is the only urban center in Ghana with a comprehensive waterborne sewage system (though presently it has no treatment, with sewage discharged directly to the sea). The IDA-supported Urban II Project is rehabilitating the system, which has fallen into disrepair. The central part of Accra has a limited waterbome sewerage system to which very few properties are connected and which also has fallen into disrepair. Other urban centers in Ghana rely on on-site excreta disposal systems. Only about 40 percent of the urban population is estimated to have access to some form of household sanitation facility. Of these, a small minority have flush toilets (almost all connected to septic tanks), most have pit latrines, and a significant proportion use the unsanitary pan or bucket latrines (whose contents must be disposed of manually each day). Around 45 percent of the urban population relies on public toilets. The remainder have no sanitation facility at their disposal. The few disposal facilities for liquid waste (stabilization ponds) that exist in the major cities are inadequate and in poor condition. Most of the waste goes directly into storm drains, lagoons, or the sea. 1.19 Urban Roads: GOG has given high priority to investment in urban roads over the past decade, particularly in the five main cities. This was necessary to counter the severe deterioration that arose from deferred maintenance throughout the 1960s and 1970s and to accommodate the significant increases in traffic. Future medium-term interventions in the urban roads subsector should focus on carefully selected road improvements and traffic management measures with high economic rates of return. A further priority is the improvement and provision of access roads for lower-income urban communities as part of integrated infrastructure upgrading programns. 1.20 Storm Drainage: None of Ghana's urban centers has a comprehensive storm drainage system. Haphazard urban growth over the past decades has produced a situation characterized by gaps between primary, secondary and tertiary drains and construction in low-lying, flood-prone areas. Flooding, with related building and personal property 7 damage and traffic disruption, is a regular occurrence in urban areas during the rainy season. The poor are affected most, because they have settled in the least desirable locations in low lying areas adjacent to drains and water courses, where land is cheap or has been informally settled. Garbage, sullage, and sewage are commonly deposited in drains, creating a health hazard along the course of the drains and polluting the waters into which they discharge. In the southern cities, receiving waters often form part of sensitive coastal wetlands. While a significant amount have been invested in roadside drainage in the major cities as part of road upgrading projects in recent years, primary and secondary drainage has received little financing. 1.21 Solid Waste Collection and Disposal: Solid waste management is entirely a local government service. Collection ratios (waste collected/waste generated) in the five main cities are well below desirable levels: Accra 67 percent; Kumasi 45 percent; Tema 59 percent; Sekondi-Takoradi 42 percent; and Tamale 13 percent. The Accra and Kumasi Waste Management Departments provide a limited degree of house-to-house collection services in some of the lower-density, higher-income areas. In Tema's "township" (planned city) area, rubbish is collected adequately by curbside pickup; however, no solid waste services are provided in Tema's lower-income areas. A significant share of the solid waste collection in Ghana's major cities is through communal containers and lift vehicles. Much of the collection, however, is limited to the sporadic clearing of neighborhood dumps by manual labor and tipper trucks. This is the norm in the secondary towns. In all urban centers, heaps of uncollected rubbish are found in and around built-up areas, especially lower-income communities. As mentioned earlier, rubbish dumping is a major cause of blocked storm drains. In the main cities, waste is deposited at large open dumps located in fringe areas, sometimes very close to residences. None of the dumps is operated as a proper sanitary landfill. To date, no special methods have been applied for the disposal of medical or industrial waste. 1.22 Urban Transport: Traffic congestion is now ubiquitous throughout Accra and is also a problem in the centers of Kumasi and Sekondi-Takoradi. The national vehicle fleet has grown at an average rate of 19 percent per annum since 1984. The great majority of all motorized passenger trips are by public transport (taxis, tro-tros and buses). The overall quality of public transport is poor. Most vehicles are old, many are converted trucks, and maintenance standards are low. There appears to be a sufficient number of vehicles to meet demand, with low-capacity vehicles such as taxis and minibuses predominating and increasing their share of the market. This is of concern because small vehicles carry fewer passengers per standard unit of road space than larger buses and therefore exacerbate traffic congestion. Public transport and freight terminals, commonly referred to in Ghana as lorry parks, serve all forms of vehicles from private cars and taxis to multi-axled trucks. Few are paved, and there is no clear demarcation between access roads, bus parking spaces, and passenger waiting areas. Facilities for passengers are rudimentary or non-existent. Generally, the terminals have sprung in an ad-hoc manner, with little account taken in their siting of the impact of the vehicle and pedestrian traffic they attract. 8 Municipal Finance 1.23 Improving urban infrastructure and services requires the mobilization of more financial resources for both capital investment and O&M. Details on revenues, expenditures, and local finance problems of the five UESP cities are available in the project files. Efforts to increase own source local government revenues in recent years have centered on the revaluation of property rates and the collection of property taxes. These measures have produced some gains, but their sustainability is subject to the ability of local governments to become more responsive and accountable for the provision of services. Local revenue collection remains far below its potential. It is estimated, for example, that Metropolitan and Municipal Assemblies are collecting between one tenth and one third of the potential property taxes. Per capita total local revenue collected by the five main cities is minuscule, averaging about US$1.25 in 1994. The collection of many low-yielding taxes (such as the basic rate) is mandated by law. The Assemblies thus tend to disperse their efforts in collecting numerous relatively unproductive revenues rather than concentrating on a few productive ones. 1.24 Local government staff are appointed through the central civil service, and central government transfers cover most of their salaries. As a result, local governments have no incentive to use staff efficiently. Budget and financial systems remain archaic. Fees and tariffs often bear little relationship to cost, and billing and collection systems are inefficient and prone to corruption. To stimulate decentralization and the provision of local infrastructure and services, the Government established the District Assemblies Common Fund (DACF) in 1993. The DACF annually distributes to the Districts not less than five percent of total GOG revenues specifically for development (capital investment). The key issue with the DACF is avoiding a disincentive effect on local revenue mobilization. The DACF allocation to the five MAs in 1994 totaled Cedis 3,303 million, about one third of their combined total revenues. Local governments in Ghana have not yet been able to achieve consistent yearly budget surpluses. Until they do so, they will not be capable of servicing debt. 1.25 Recent experience shows that the provision of technical assistance, training, and equipment is necessary but not sufficient to achieve improved mobilization by local governments of own source taxes and fees. Such inputs can produce short-term gains. However, obtaining sustainable improvements in local revenue collection and management is a long-term process related to changes in governance systems. It will require developing incentives for local government politicians, executives, and staff to view themselves principally as providers of services to the public. As the public develops confidence in local government's responsiveness and competence, people's willingness to pay higher taxes will grow. 9 B. SECTOR STRATEGIES Decentralization 1.26 The most important government policy related to urban development is the recent decentralization initiative. Under the 1992 Constitution and the Local Government Act (No. 462) of 1993, Ghana's Metropolitan, Municipal and District Assemblies are autonomous local governments with legislative and executive powers within their areas. They are empowered to prepare and approve their annual budgets, to raise revenues from taxes and fees, to borrow funds, to acquire land, and to provide basic services and local infrastructure. A Letter of Local Government Development Policy prepared by the Ministry of Local Government and Rural Development (MLGRD) in conjunction with the latest IDA-financed urban project focuses on two key points. First, Local Governments should eventually be able to employ their own staff accountable to them. The 1993 Act calls for the creation of a Local Government Service, and proposals for this are being studied. Second, the Assemblies are to have discretion in selecting of projects to be financed with revenues of the District Assemblies Common Fund. Urban Development 1.27 An Urban Strategy Review carried out in 1993-94 with World Bank support produced the following main conclusions: (a) continued improvements in basic urban infrastructure and services are needed to increase the productivity of urban households and firms, but investments must be carefully selected; (b) infrastructure and services for the urban poor can be improved through targeted upgrading programs; (c) urban service delivery should be made more efficient and sustainable by greater competition, more reliance on commercial principles, private sector participation, and attention to demand; (d) further efforts are needed to obtain long-lasting improvements in revenue mobilization by local governments; (e) sanitation and waste management are the highest priority urban environmental problems; and (f) impediments to land transfer, land titling and private land development need to be removed to make urban areas more efficient and productive. These points are consistent with a 1993 Ghanaian Task Force proposal for a human settlements strategy (prepared with assistance from UNDP and UNCHS) which reflects a broad national consensus on four basic elements: (a) improving the economic performance of towns and villages, with particular attention to strengthening the economic linkages between urban and rural productive sectors; (b) increasing access to basic services; (c) improving the living conditions of the poor and vulnerable groups; and (d) building human capacity for urban planning and management. Urban Environment and Sanitation 1.28 The Government's 10 year (1991-2000) National Environrental Action Plan (NEAP) includes urbanization as one of four main areas for intervention. The NEAP highlights sanitation and waste disposal as major issues. It lists the implementation of urban waste management and sanitation projects as a top priority. It also calls for the improvement of drainage in coastal cities; the establishment and implementation of 10 environmental and health standards; and the adoption of effective land use control mechanisms. 1.29 At appraisal, a draft Letter of Sector Policy for Environmental Sanitation was reviewed. Key themes covered in the letter are private sector participation and the financial sustainability of services. The final version of the letter was agreed upon at negotiations and it was singed by the Minister for Local Government and Rural Development, thus fulfilling the single condition of Board presentation. External Assistance 1.30 Foreign assistance agencies are supporting capital investments in urban infrastructure and capacity-building in urban management. The bulk of the urban-related external capital funding is currently going into urban roads and water supply. IDA is the major source of financing in the urban roads sector through the Urban II, Urban Transport, and Local Government Development Projects. IDA, AfDB, and several bilaterals are assisting in water supply, mainly through the Water Sector Rehabilitation Project. Urban sanitation, drainage and area upgrading have received very limited funding. KfW and GTZ have been supporting a project to strengthen the Accra Waste Management Department. ODA sponsored a similar, more limited project in Kumasi during 1991-93. UNDP and UNCHS have been active in technical assistance for urban activities. 11 2. THE PROJECT A. OBJECTIVES 2.1 The objectives of the Urban Environmental Sanitation Project are: (a) To promote productivity and raise living standards in Ghana's major cities, especially for lower-income people, by improving drainage, sanitation, and solid waste services. (b) To help establish better institutional and financing mechanisms and more effective policy frameworks so that improvements are sustained overtime. (c) To build up the capacity of the Metropolitan and Municipal Assemblies to manage environmental sanitation services. B. DESCRIPTION Project Rationale 2.2 The project would cover Ghana's five major cities (Accra, Kumasi, Sekondi- Takoradi, Tema, and Tamale). It would have five main components: (a) storm drainage, (b) sanitation, (c) solid waste, (d) upgrading of low-income urban areas, and (e) capacity- building. Physical components represent about 83 percent of total project costs; capacity- building and consultancy services for design and supervision the other 17 percent. 2.3 The Urban Environmental Sanitation Project is part of the World Bank's Country Assistanc Strategy (CAS) for Ghana. The basic goal of the CAS is poverty reduction through rapid economic growth. The project would support four of the five objectives of the CAS: (a) poverty reduction, by improving services which have high impact on the productivity and welfare of the urban poor both city-wide and in lower-income areas; (b) capacity-building, by strengthening the ability of the Metro and Municipal Assemblies to plan and manage the delivery of basic services; (c) private sector development, by promoting the contracting out of various waste collection and sanitation services; and (d) environmental improvement, by directly addressing the highest priority urban environmental problems through policies, institutional structures, and physical investments. 2.4 The project was identified as a result of the Urban Development Strategy Review conducted jointly by the World Bank and the Government in 1993-94. The Review involved a series of seminars with representatives of central and local institutions involved in the sector. As mentioned in Section I, the Review established a clear rationale for the project: First, sanitation is one of the highest priorities in Ghana's Environmental Action Plan. Second, sanitation, drainage and solid waste management 12 supply--have been addressed through past and ongoing projects supported by the Bank and other donors. Third, the project would deal with basic services whose deficiencies constrain urban economic development and depress living conditions for large numbers of people, especially the poor. Storm Drainage Component 2.5 The focus of the storm drainage component (34 percent of the project's base cost) is to alleviate flooding in built-up urban areas. The highest-priority interventions have been selected in Accra, Kumasi, and Sekondi-Takoradi. A detailed description of the drainage component is in Annex 7. 2.6 Accra: Approximately 7 km. of the city's primary drainage channel, the Odaw, from the Abossey Okai Road to the Motorway Extension, would be dredged and reconstructed as a trapezoidal channel with top width varying from 45 to 65 m. This would significantly alleviate flooding in major industrial, commercial, and residential areas in and around the center of the city. About 20 km. of secondary drains serving 13 neighborhoods would be reconstructed, also for the purpose of alleviating flooding affecting around 20,000 people. These improvements were identified as the highest priorities in the 1991 Drainage Master Plan and Feasibility Study. This study included simulations showing that inadequate capacity of primary and secondary drains is the principal bottleneck in the drainage system, whereas silting of the Korle Lagoon contributes very little to the flooding problem. 2.7 Kumasi: The project would finance measures to reduce flooding in the Central Business District, covering the Central Market, the Asafo Market, and the Kejetia Lorry Park (transport terminal). These would include (a) the construction of four new secondary drains, (b) widening the existing primary channel from the Zoo through Kejetia to the Asafo Market, and (c) reconstruction of a four km. stretch of the Nsuben primary channel to a trapezoidal section with stone pitched lining. 2.8 Sekondi-Takoradi: A major desilting exercise would be undertaken to rid covered drains in the Market Circle area of solid waste that has accumulated in them over the years and restore the capacity of the existing drains. Additional capacity required in the Market Circle drain, which is the main outlet from the Central Business District, would be provided. Sanitation Component 2.9 During project preparation each of the five MAs prepared a Strategic Sanitation Plan (SSP) that sets out its strategy for providing comprehensive sanitation services by the year 2005. The SSPs include a prioritized listing of the mix of household, public, and school facilities needed to serve the city's low and middle income households. They also present the management and financing arrangements needed to implement each component. The SSPs differ from conventional master plans in that they (a) tailor technical options to each type of housing in the city, (b) consider users' preferences and 13 willingness to pay, (c) emphasize actions that can be taken within the medium term, and (d) present components that can be implemented independently but which together provide full coverage. 2.10 The MAs used their SSPs to identify the specific sanitation sub-projects that are to be included in the UESP. The sanitation component represents about 10 percent of the project's base cost. A summary of the facilities appears in Annex 8. The categories of sub-projects are as follows: 2.11 Household sanitation facilities: In medium density areas of all five cities, the project would help finance about 5,560 household latrines (expected to benefit a total of about 200,000 people). The project would bear 50 percent of the construction costs, and the beneficiaries would contribute the other 50 percent. The MAs would contract day to day management of the household latrine programs to one or more private firms. Their tasks would include training latrine construction contractors, reviewing applications, awarding individual contracts, reviewing works and making payments (25 percent down and 25 percent at completion). The programs would be promoted through local media by the MAs' Waste Management Departments. 2.12 Public sanitation facilities: The project would support the construction of new and the replacement or rehabilitation of old public sanitation facilities at markets and other commercial locations in all five cities. A total of about 65 facilities would be built or improved. Only those facilities offering the prospect of full cost recovery (based on location and size) would be selected. The facilities would be operated on a franchise basis. The MAs would contract with local firms to manage construction. 2.13 School sanitation facilities: The project would finance construction of about 305 sanitation facilities at primary and junior secondary schools in the five cities. Parent- Teacher Associations (PTAs) would be able to obtain financing if they collect sufficient funds in advance to cover one year's operation and maintenance costs and prepare a management plan. MAs would contract with a local firm or NGO to implement the school program. Its tasks would include promotion, assistance to individual PTAs, contracting, supervision, and training. The Training Network Centre at the University of Science and Technology at Kumasi would provide training materials. UST is doing similar work for the National Community Water and Sanitation Programme. 2.14 Septage treatment and disposal; sewerage rehabilitation: All the MAs have agreed to withdraw from direct septage hauling. This service will be turned over to private operators. The project would finance the construction of a septage treatment facility in each of the five cities. In Kumasi, Sekondi-Takoradi, and Tamale these would be combined with the new sanitary landfill sites (see description of Solid Waste Component, below). In Accra and Tema, the septage treatment facilities would be separate. Septage would be treated in a ponding system; settled sludge would be mixed with sawdust or similar material and either disposed in the landfill or composted for resale as a soil conditioner. The project would also finance rehabilitation of selected 14 segments of the Tema sewer system in communities 1, 2, 4 and 5; an abattoir in Tamale; rehabilitation of a sewerage system serving a modest-income housing area in Kumasi; and an extension of water distribution in East Ashaiman of Tema, a lower-income area. Solid Waste Component 2.15 Solid Waste Collection (5 percent of base cost): In recent years central and local government officials have come to realize that they do not have to be the sole providers of solid waste collection services, and that the private sector can be a cost effective alternative. They are also recognizing the importance of consulting and involving users in making decisions on the type of service to be provided and the means of paying for it. 2.16 The project would provide technical and financial support for privatized waste collection in the Accra metropolitan area, Kumasi, Sekondi-Takoradi, Tamale, and the Ashaiman area of Tema. Previous experience in Tema, Accra and Sekondi-Takoradi indicates that households are willing to pay fees for an efficient, reliable service. While this experience shows that user fees can cover the full costs of house-to-house collection in upper income areas, it is unrealistic to expect the same in medium and low income areas, where communal collection must be used. This is because willingness and ability to pay are limited and it is difficult to organize the collection of fees for communal refuse removal. The use of general revenues to help cover the cost of solid waste collection is justified by the city-wide public health and environmental benefits. 2.17 The four MAs are receiving technical assistance for identifying areas to be served by private waste collection, preparing financial projections, and determining contract modalities. Experiences from other countries are being taken into account. In each case the shares of the collection costs to be borne by user fees and general revenues would be established. The project would finance a portion of the general revenue shares annually on a declining basis. Preliminary financial analyses of likely contractors' costs (using their own equipment and including depreciation, interest, labor, vehicle operating costs, overheads, and profit) have been carried out. Specialist consultants would continue to work with the MAs on the following: (a) establishing appropriate differential charges for the different types of collection systems and socio-economic areas, (b) relating theoretical contractors' costs (as established in the financial analysis) to actual costs incurred by the contractors working in Tema, Accra, and Takoradi, (c) checking and refining the basic data, (d) determining the appropriate contracting mechanisms, and (e) analyzing the sizes of contracts that the MAs and UESP could support. The latter would be dimensioned according to a reasonable, agreed projection of each MA's budgetary capacity. 2.18 Sanitary Landfills (16 percent of base cost including equipment): The project would finance the construction of properly engineered sanitary landfills in Kumasi, Sekondi-Takoradi, and Tamale. Suitable sites have been identified in each city. The MAs are negotiating acquisition of the sites with the owners. At negotiations it was agreed that the financing of these facilities under the credit would be dependent on the MAs having legally acquired the sites and assured adequate compensation. 15 Topographical, soil, and geophysical surveys have been carried out, and the preparation of preliminary engineering designs by specialist consultants is underway. The consultants' TOR include assessing the environmental impacts of the facilities and incorporating the needed mitigation measures in the designs. These would include diverting storm water flows around the sites, collecting and treating leachate, and venting gases produced by waste decomposition. The sites would also incorporate septage treatment facilities. The consultants would assess the feasibility of treating the leachate and septage together. Equipment for weighing, spreading, and compacting the waste would be procured under the project. The possibility of having private contractors operate the landfill facilities will be explored and encouraged, as experience from other countries indicates that this is more effective than public management. 2.19 A detailed description of the solid waste component is in Annex 9. Community Infrastructure Upgrading Component 2.20 The community infrastructure upgrading component (16 percent of base cost) would be implemented in seven lower-income areas of Accra, Kumasi, and Sekondi- Takoradi. The communities are: Sukura, Old Teshie, and West Maamobi in Accra; Aboabo and Anloga in Kumasi; and Effia Zongo and Kwesimintsim in Sekondi- Takoradi. These communities were selected by the MAs from longer lists of infrastructure-deficient, lower-income areas which had already demonstrated some community initiative and willingness to improve their living environments. A detailed description of the community infrastructure upgrading component is in Annex 10. 2.21 In total about 530 hectares in which some 265,000 predominantly low-income residents reside would be upgraded with a packages of basic infrastructure improvements. These are: (a) access (vehicular roads and footpaths), (b) stormwater drainage, (c) sanitation, (d) solid waste management facilities, (e) water supply, and (f) street lighting. 2.22 The final programs have been developed following strict cost targets, functional standards and design service levels. One of the fundamental principles of the program is that beneficiaries are to fully cover the operation and maintenance costs of the infrastructure provided through fees or taxes. Available information on ability and willingness to pay indicates that this is realistic. For example, residents of these communities already pay substantial amounts monthly to purchase water from private venders and to use public toilets. Surveys have shown that people are willing to pay for the maintenance of infrastructure if service is reliable. These factors have been a key determinant in decisions regarding design standards, prograrn size and costs. Likely implementation capacity has also been taken into account in dimensioning the program. 2.23 Besides physical upgrading, the community infrastructure component aims to (a) promote the use of demand-driven, participatory planning and design procedures and functional, affordable standards and levels of service for infrastructure; (b) strengthen the ability of Metropolitan and Municipal Assemblies to collaborate with community residents in the planning, design, implementation of infrastructure upgrading schemes so 16 as to foster a sense of ownership by the communities; and (c) establish sustainable arrangements for operation and maintenance. Details of the facilities to be upgraded, their implementation, capital costs, estimated annual O& M cost requirements, and O&M modalities are to be set out in a "Facilities and Management Plan" to which each community (via a community based organization agreed upon with local leaders) and relevant public agencies would formally agree. Each of the Assemblies has agreed to contribute 10 percent of the capital costs of the upgrading component from its own funds. 2.24 Local leaders and residents are being actively involved at all stages of planning and design. Meetings were held with focus groups including Assembly members, local unit committee members, and representatives of non-governmental organizations including women's groups. A household survey was carried out to determine the coverage and quality of existing services and willingness to pay for improved services. A series of workshops was conducted with community leaders and residents to discuss their priorities, standards and service levels, the community's role in O&M, and tradeoffs in allocating the limited resources to be provided through the project. Institutional Strengthening Component 2.25 Local-Level Organization: The Ministry of Local Government and Rural Development (MLGRD) and the five MAs have developed a basic organizational framework for the local management of infrastructure and services. Each MA's technical organization would be composed of a relatively small staff of professionals, technicians, and support personnel. The main function of the staff would be to plan, manage, coordinate, and supervise the work of contractors who would perform the bulk of the provision of infrastructure and services. The staff would be organized in four departments or units: (a) the Head Office of the technical organization, (b) the Waste Management Department, (c) Roads and Drains, and (d) Development Control. The five MAs already have some technical staff, but their numbers and qualifications are limited. 2.26 Building the MAs' human and organizational capacity to properly manage infrastructure and services will be a long-term process. Among the MAs' main constraints on achieving an adequately sized and qualified staff are low remuneration in the public sector at all levels, the perception that central government service is preferable to local government, and the difficulty of attracting well-qualified people to work outside Accra and Kumasi. 2.27 These problems cannot be solved in the context of one Bank-supported project. Some aspects are being dealt with separately. These include the ongoing Civil Service Performance Improvement Program at the central level, to which the Bank is contributing funding and advice, and the plans under discussion to establish a Local Government Service (in which MLGRD is involved). The UESP would contribute to local capacity building of the five MAs through the following measures: (a) assisting the MAs to recruit additional qualified personnel through the hiring of individual contract staff, (b) actively involving their existing officials and staff in project preparation and 17 implementation, (c) providing the MAs with technical assistance (mainly through local consultants) in waste management and municipal finance (see below), and (d) providing equipment and training. A number of capacity deficiencies are common to all the MAs. Some have more experience in certain aspects, e.g. privatization in Tema, management information and accounting systems in Accra, and health education and community awareness in Kumasi. A wealth of well-documented knowledge exists from previous assistance provided through German and British assistance programs. 2.28 Capacity-Building: A project-wide capacity-building and training (PWCBT) program would be financed by the project. It would be overseen by MLGRD's Local Government Support Unit. There would be two sources of financing: the Nordic Development Fund, which would finance consultants, and the Association of Netherlands Municipalities, which would finance a training program. The PWCBT would provide assistance to the five MAs and relevant central government agencies. Its work would be carried out by national consultants supported by a limited number of international specialists who would provide knowledge not available locally. This group would prepare an annual work program in response to the needs of the client institutions and the activities of the UESP. The work program would be approved by the clients. Each year the clients and the PWCBT group would review the effectiveness of its activities. 2.29 The PWCBT would cover two main areas, environmental sanitation and municipal finances. About 270 person-months of consultant services would be financed. The types of assistance to be provided would include but not be limited to: * Drafting of local government by-laws for environmental sanitation. * Establishing and using performance monitoring systems for waste collection. * Developing and implementing cost accounting and management information systems. * Compiling standard designs, specifications, and cost data on appropriate technologies for sanitation, waste collection, treatment facilities, and disposal systems. * Designing public enlightenment campaigns and preparing health education materials. * Updating and maintaining data bases on municipal revenue collection. * Privatizing revenue collection using the commission system. 2.30 It is considered important for each Metropolitan or Municipal Assembly to implement its own individual capacity-building activities, apart from those undertaken by 18 the project-wide CPT program. The project will therefore finance a package of capacity- building resources which will be available to each city to use as it wishes, as long as the activities are relevant to UESP. With these resources, the MAs will be able to hire their own consultants (with terms of reference cleared by MLGRD) and finance training activities tailored to their specific needs. Each city will be required to submit an annual capacity building and training plan for approval by MLGRD. 2.31 Each of the five MAs is establishing a project team which will be responsible for day-to-day management of the city's sub-projects of the UESP. Regular staff of the MAs will be assigned to work on the project team, along with three long-term contract staff to be hired by each MA under the project. These will generally be a civil engineer, a sanitary engineer, and an accountant. 2.32 The institutional strengthening component would include support for public information campaigns in the five cities dealing with (a) public cooperation with refuse collection and disposal, (b) household hygiene related to sanitation, (c) management of public sanitation facilities. These activities would be carried out by contractors under the supervision of the MAs. 2.33 A detailed description of the institutional strengthening component (about 13 percent of the project's base cost) is in Annex 11. Land Titling 2.34 A Land Administration Pilot Project is being carried out under the Urban II project. Its objective is to establish a system for issuing new land titles in accordance with the Land Title Registration Law of 1986. It is being undertaken as a coordinated exercise involving the Survey Department, the Land Title Registry, and the Lands Commission. An international adviser has been working with these institutions on a periodic basis since mid-1994. The pilot project is starting to produce results. Major bottlenecks in the process have been documented, regular interagency coordination mechanisms have been established, and improvements are being introduced to make the system more efficient. The participating institutions believe that it is important to keep up this momentum. As funding for the current pilot project will run out by mid-1996, the UESP would provide a modest amount of additional resources (US$550,000) to be focused on strengthening the field operations and records management of the Land Title Registry and establishing a small unit in the Survey Department which would employ digital methods on a routine basis in the production of Registry Maps and Registry Plans. Details are in Annex 12. Operation and Maintenance 2.35 Waste management has been underfunded at the local government level. In many cases, capital investments in civil works and equipment have outpaced the ability of the Assemblies to cover operation and maintenance costs. The project will support initiatives of the MAs to increase the funding of O&M through both user fees and general revenues. -- ----- -- 19 It has been agreed with the MAs that user fees should finance 100 percent of the O&M costs of household latrines, public toilets, piped sewerage, and septage removal. The costs of solid waste collection would be financed by a combination of user fees and general revenues. Surveys conducted during project preparation as well as prior experience in Ghana indicate that house-to-house refuse collection can be carried out on a full cost recovery basis. However, house-to-house collection is appropriate for only 20 to 50 percent of the population (depending on the city) living in low to medium density, higher-income areas. The remainder of the population living in lower-income, higher density areas must be served by communal collection systems. Because of low ability or willingness to pay, user fees may cover only 20 to 30 percent of the costs of communal collection. The operating costs of solid waste landfills and septage treatment facilities may in principle be covered largely through tipping fees paid by private waste haulers. However, this requires a licensing and enforcement capability that will take a long time to establish in Ghana. In the short to medium term, the recurrent costs of these facilities will have to be paid from general revenues. Roads and drains are public goods that must be financed primarily through general revenues. 2.36 Assembly officials recognize that they must begin to set aside increasing amounts of general revenues for the recurrent costs of waste management and for the upkeep of facilities and equipment. Prior to credit effectiveness, MLGRD would issue a directive to the five MAs requiring each of them to create separate budget lines for waste collection and disposal and maintenance of storm drains. It was agreed at negotiations that the MAs would allocate, as of the third year of implementation, appropriate amounts to be agreed with IDA in these budget categories. Technical assistance would help the MAs to make projections of the shares of O&M costs to be met through user fees and general revenues (i.e. property taxes, business license fees, etc.). MAs would have to budget annually for the latter portion. Waste collection, maintenance of equipment, and drain cleaning would be carried out by the private sector under contracts to the MAs. A study would be carried out under the project to prioritize drainage maintenance needs so as to target scarce funds most effectively. O&M of water and street lighting in the community upgrading areas would be handled by the Ghana Water and Sewerage Corporation (GWSC) and the Electricity Corporation of Ghana (ECG). Client Consultation and Participation 2.37 One of the project's main objectives is to build the capacity of the Metropolitan and Municipal Assemblies to provide environmental sanitation services. Accordingly, a major concern of the project preparation process has been to foster ownership of the project by the participating MAs and other involved institutions (e.g. TSC and MLGRD). The client consultation and participation process consists of several formal activities linked by continuous informal exchanges. The main activities are: 2.38 Initial Preparation Workshop: A two day project preparation workshop was held in October 1994. This included the Chief Executives of the five Metropolitan/Municipal Assemblies, other local officials and staff, and several central 20 agency representatives. The main objectives were to agree on the basic scope of the project, to exchange information on urban environmental sanitation issues, and to establish action plans for follow-up by each city. This event was funded by the UNDP- World Bank Water and Sanitation program (West Africa Regional Office). 2.39 Municipal Finance Workshop and Consultations: Previous efforts to provide technical assistance and training for improving municipal finances have had mixed results. Sustainability has been disappointing. Nevertheless, better revenue mobilization and financial management by Metropolitan and Municipal Assemblies are essential if urban sanitation services are to improve. The project supported (through the PPF) a study of municipal finance trends and issues and a workshop with officials of the five MAs in February 1995 to identify strategies and interventions. These are being used to identify follow-up interventions and assistance to be provided under the project. 2.40 Consultations with Community Leaders and Residents: The community infrastructure upgrading component in seven lower-income areas is being prepared with the participation of community leaders and residents. A university research group conducted community meetings, focus group discussions, household surveys, and workshops with local leaders to identify community priorities, determine willingness to pay for improvements, and reach agreement on community-based O&M where needed. 2.41 Workshop on Project Implementation: Government and the Bank have agreed to include the five Metropolitan and Municipal Assemblies as implementing agencies of the project. The challenge is to set up an institutional arrangement that promotes this, while keeping the risks of implementation problems to a minimum. A participatory process for formulating the implementation structure was initiated in January, 1995. First, a brief paper outlining options for implementation arrangements was prepared and circulated to officials of the five MAs and other concerned agencies. Second, a workshop to discuss the requirements and proposed arrangements for project implementation was held in April, 1995. Chief Executives and staff of the five MAs and representatives of MLGRD, MF, TSC, and the World Bank participated. The workshop dealt with issues such as the number and sizes of components for which the MAs could be responsible, the staffing requirements for the MAs to assume implementation responsibilities, and the financial flow and accounting arrangements. The main recommendation of the workshop, which has been incorporated into the project, was to form "core teams" in each MA composed of existing staff and contract staff to handle project implementation. 2.42 Further Activities: During the appraisal mission a workshop on solid waste collection through the private sector was held with local government officials and staff. It examined local practices, national policy questions, and the experience in Ghana with private contracting of waste collection. A model contract was reviewed and discussed. The workshop laid a foundation for developing detailed legal and financial arrangements for the solid waste component of the project. During the period leading up to effectiveness, seminars are lanned dealing with procurement and other implementation issues. 21 Status of Project Preparation 2.43 As of December 1995, about 80 percent of a US$1.16 million Project Preparation Facility had been committed for various preparatory studies. Preliminary design and local consultation for community infrastructure upgrading and drainage in Kumasi has been completed. Contracts for the preparation of detailed studies and bid documents for community upgrading and Kumasi drainage are expected to be signed in March 1996. A team of international and national consultants is carrying out preliminary designs and environmental studies for storm drainage works in Accra and Sekondi Takoradi. This phase is expected to conclude by the end of February 1996, after which detailed designs would be prepared. Another international/national consulting group is nearing completion of preliminary designs and environmental studies of sanitary landfill/septage treatment facilities in Kumasi, Sekondi-Takoradi, and Tamale. National consultants under separate contracts are finalizing Strategic Sanitation Plans and preliminary designs for sanitation facilities in the five cities. A national consultant will be contracted in March 1996 to help the MAs perform zoning studies for solid waste collection and start pilot implementation of the household sanitation programs. The MAs of Kumasi, Sekondi-Takoradi, and Tamale have completed negotiations for acquisition of sites for the sanitary landfills. Finalization of the legal acquisition is to await the confirmation of the suitability of the sites by the design/environmental consultants. C. PROJECT COST AND FINANCING PLAN Project Costs 2.44 The project would be implemented over a six year period beginning around July 1996. The cost summary appears in Table 2. Detailed cost tables are in Annex 2. The total project cost is estimated at US$89.3 million equivalent. The foreign exchange component is about US$50.8 million equivalent (57 percent of the total). Physical contingencies for civil works have been calculated at 10 percent. Price contingency calculations are based on expressing all costs in US$ at July 1995 prices and applying a cost escalation of 2.5 percent per year starting in FY97. 22 Table 2: Summary of Project Costs Base Cost With Contingencies Base Project Components (US$ Million) (US$ Million) Local Foreign Total Local Foreign Total Cost */ Components tQ be Implemented/ Procured by Central Govemment A. Primary & Secondary 7.68 17.92 25.60 9.38 21.89 31.27 34.06 Drainage Works B. Landfill & Septage 3.06 7.14 10.20 3.70 8.63 12.33 13.57 Treatment Facilities C. Disposal Equipment 0.00 1.56 1.56 0.00 1.66 1.66 2.08 D. Institutional Strengthening 2.28 1.72 4.00 2.53 1.91 4.44 5.32 E. Vehicles & Equipment for 0.22 1.10 1.31 0.23 1.16 1.39 1.74 Inst. Strengthening F. Training 0.48 0.20 0.68 0.53 0.23 0.76 0.90 G. Design & Supervision 1.07 1.61 2.68 1.18 1.76 2.94 3.57 H. Land Titling 0.00 0.52 0.52 0.00 0.57 0.57 0.69 1. Studies 0.25 0.25 0.50 0.27 0.27 0.55 0.67 BASE COST 15.03 32.02 47.05 Physical Contingencies 1.07 2.51 3.58 Price Contingencies 1.71 3.56 5.28 SUB-TOTAL 17.82 38.09 55.91 17.82 38.09 55.91 62.60 Components to be Implemented by Metropolitan! Municipal Assemblies A. Community Infrastructure 4.67 7.01 11.68 5.71 8.56 14.27 15.54 Upgrading B. Household Sanitation 1.84 1.22 3.06 2.24 1.50 3.74 4.07 Facilities C. Public & School Sanitation 1.53 1.02 2.55 1.87 1.25 3.12 3.39 Facilities D. Septage Treatment Facility 0.32 0.48 0.80 0.39 0.59 0.98 1.06 E. Sewerage Rehabilitation 0.32 0.38 0.70 0.39 0.46 0.86 0.93 F. Community Water 0.10 0.15 0.25 0.12 0.18 0.31 0.33 G. Design & Supervision 1.47 0.00 1.47 1.63 0.00 1.63 1.96 H. Institutional Strengthening 3.90 0.00 3.90 4.33 0.00 4.33 5.19 1. Solid Waste Collection 3.45 0.00 3.45 3.83 0.00 3.83 4.59 J. Abattoir 0.10 0.15 0.25 0.12 0.18 0.31 0.33 BASE COST 17.70 10.41 28.11 Physical Contingencies 0.89 1.04 1.93 Price Contingencies 2.05 1.27 3.33 SUB-TOTAL 20.64 12.72 33.36 20.64 12.72 33.36 37.40 Total Base Cost 32.73 42.43 75.16 100.00 Total Physical Contingencies 1.96 3.55 5.51 Total Price Contingencies 3.77 4.83 8.60 TOTAL PROJECT COST 38.46 50.81 89.27 38.46 50.81 89.27 23 Financing Plan 2.45 A summary of the financing plan appears in Table 3. An IDA credit of US$71.0 million equivalent would finance approximately 80 percent of total project costs. This credit would be extended on standard IDA terms for 40 years with 10 years of grace. GOG would finance US$8.9 million equivalent, or 10 percent of total project costs. The MAs and beneficiaries would finance about US$5.3 million, representing their shares of community upgrading works, sanitation facilities, and solid waste collection. The MAs' contribution is estimated to be about US$3.5 million, comprising a 10 percent share of the upgrading programs in Accra, Kumasi, and Sekondi-Takoradi and a 50 percent share of the new privatized solid waste collection. Beneficiaries' contribution of US$1.9 million represents their 50 percent share of the household sanitation component. The three Assemblies participating in community upgrading have passed resolutions committing themselves to providing their 10 percent shares. At negotiations both GOG and the MAs confirmed that they would provide their respective counterpart funds. Initial deposit of counterpart funds in the main project account and the MAs' sub-project accounts would be a condition of credit effectiveness. Table 3: Financing Plan (US$ million) Sources Total IDA 71.0 Government of Ghana 8.9 Municipal/Metro Assemblies 3.5 Beneficiaries 1.9 Co-Financing 4.0 TOTAL 89.3 2.46 Co-financing of about US$3.4 million equivalent has been tentatively secured from the Nordic Development Fund. This would be applied to the project-wide capacity building sub-component. In addition, it is expected that the Government of the Netherlands, through the Netherlands Association of Municipalities, will contribute about US$0.6 million toward a training program. Cost Recovery 2.47 Until recently, charging fees for solid waste collection was not a public policy in Ghana. This has changed. However, the ability of the MAs to collect user fees is limited by their weak management capacity and the public's lack of confidence in their abilities to deliver adequate services. Thus, the MAs will have to move into cost recovery gradually. The project would assist the MAs and their contractors to establish and collect user fees for public toilets, piped sewerage, septage removal, solid waste collection, and tipping at waste disposal sites. Fees would be set to cover 100 percent of O&M costs for the first three of these; fees would cover an agreed share of O&M for the last two. Fees would also cover some portion of investment costs subject to demonstrated affordability and 24 willingness to pay. Franchise contracts for public toilets in commercial areas would stipulate fees sufficient to cover their full capital and recurrent costs. Connection fees would be charged for water supply and piped sewerage to recover the investment costs of these services. The cost of household latrine construction would be shared 50-50 between the project and beneficiaries. O&M costs of services for which fees cannot be charged (such as drainage) would be paid through general revenues of the MAs. The Chief Executives of all five cities are fully supportive of this approach. The use of general revenues to cover a part of the costs of sanitation services is justified by their city-wide environmental and public health benefits. 2.48 Under the community upgrading component, user fees would be charged for water supply, piped sewage, public toilets, refuse collection, and street lighting (the latter through the electricity tariff). The same cost recovery policies described above would be applied. The MAs have agreed to cover the O&M costs of roads and storn drains through increased property tax collections. During negotiations, the Government and the MAs agreed to implement the above cost recovery policies. 25 3. PROJECT IMPLEMENTATION A. INSTITUTIONAL ARRANGEMENTS 3.1 The Ministry of Local Government and Rural Development (MLGRD) would be the lead sector Ministry for the project. MLGRD would head the Project Coordination Committee which would include representatives of MWH, the five MAs, and EPA. MLGRD's existing Local Government Support Unit (LGSU) would oversee the implementation of the project. The project would finance two professional contract positions to boost the capacity of the LGSU. These personnel would focus on the formulation and implementation of environrnental sanitation policies, assist in coordinating the capacity-building activities of the project, and participate in supervision of implementation. 3.2 The Technical Services Centre (TSC), a unit of the Ministry of Works and Housing, would assist MLGRD with monitoring, accounting, procurement, and contract management. TSC has served as the implementing agency for several Bank-funded projects, including two currently under implementation (Urban II and Local Government Development). TSC originally was staffed entirely by civil servants, but recently it has been developing a mixed staff from government and the private sector. It combines some of the better features of a well-functioning public sector agency (a small staff that focuses on managing contracts with private providers of most services) with those of a more efficient private organization (use of privately contracted staff for better performnance and flexibility). The professional staff of TSC, totaling 1 1, currently consists of two civil engineers, two architects, one quantity surveyor, one planner, one procurement specialist, and four accounting/administrative staff. At appraisal it was determined that TSC would require three more professional contract staff to handle the additional workload imposed by UESP. These positions and some logistical support are to be funded under the project. 3.3 MLGRD, assisted by TSC, would manage the implementation of the project's larger and more complex components (storm drainage, landfills, project-wide capacity building). To build capacity at the local government level, the Metropolitan and Municipal Assemblies would implement a number of the small and medium sized components (e.g., community upgrading and on-site sanitation). The MAs would sign contracts for the components under their responsibility and would take the lead in handling procurement, contract supervision, and financial management for their components. TSC would help train the MAs to perform these functions and would support them during the initial "learning period" of actual implementation. All the MAs have Technical Departments which would be strengthened. Accra and Kumasi already have Waste Management Departments (WMDs), and the other three cities have smaller waste units which would be upgraded. 3.4 Each MA would be required to put in place a core team of five or six persons consisting of engineers, technicians, accountants, and support staff. The project would finance three contract staff positions for each city to bolster the capacity of the core 26 teams. At negotiations, the Government and the MAs agreed to fill the three contract staff positions with qualified persons. The other members would be drawn from the MAs' existing staffs. In most cases the MAs will provide an engineer, a technician, and a bookkeeper. The MAs would be required to have all contract staff in place as a condition of effectiveness, 3.5 The allocation of implementation responsibilities between central government (MLGRD assisted by TSC) and the Metropolitan and Municipal Assemblies would be as follows: Central Government: Civil Worka Storm Drainage Sanitary Landfills/Septage Treatment Facilities Large-Scale Piped Sewage Procurement of Vehicles and Equipment Heavy Equipment for Waste Disposal Vehicles and Equipment for Institutional Strengthening Consultancy Services Design and Supervision of Works Project-Wide Technical Assistance and Training Metropolitan and Municipal Assemblies: Civil Works Community Infrastructure Upgrading (roads, footpaths, drains, sanitation, solid waste collection, street lighting) Household Sanitation Facilities Public and School Sanitation Facilities Septage Treatment Facilities, Other Small Sanitation Facilities Consultancy Services Local-Level Technical Assistance and Training Local-Level Design and Supervision of Works Operations Solid Waste Collection (Private) 3.6 The relationship between MLGRD and TSC was formalized in a Memorandum of Understanding signed by the respective Ministers. 27 3.7 The obligations of the MAs under the project would be formalized through grant agreements to be signed by the Ministry of Finance, MLGRD, and each of the MAs. The agreements would cover the MAs' responsibilities to sign contracts, provide counterpart funding from their own resources, allocate funds for O&M, establish Waste Management Departments, provide adequate staff, perform financial accounting and reporting, and comply with procurement and audit requirements. The content and form of the agreements were agreed at negotiations. The signing of the grant agreements would be a condition of credit effectiveness. 3.8 The World Bank's experience in Ghana with local contractors has been generally good. There is a sufficient number of qualified contractors to handle the contracts under the project, including civil works and the operation of sanitation services. Ghana has numerous civil engineering companies which have a good track record of performance under IDA-financed projects. Private firms also have been active in the sanitation sector. The city of Tema, for example, has successfully managed contracts with several private companies to collect solid waste in its planned residential areas for the past five years. In 1994, the city of Accra began a pilot solid waste collection contract with a private firm. Private septage hauling companies have been in existence for some time, mainly servicing non-government clients. B. OPERATIONAL PLANS AND MANUALS 3.9 A Project Implementation Schedule appears in Annex 4. This SAR contains most of the other elements of the Project Implementation Plan: organizational arrangements for implementation (see above), a disbursement schedule (Annex 5), risk factors (Chapter 4), and monitoring and performance indicators (Annex 3). These elements plus two others-- a procurement schedule and an auditing timetable--would be put together to form the complete Plan. 3.10 TSC would oversee the preparation of a Project Implementation Manual covering procurement, contract management, financial record-keeping, and disbursements. IhX Manual. which would also contain the Project Implementation Plan. satisfactory to IDA, would be adopted prior to credit effectiveness for use by staff of MLGRD, TSC and the MA& C. REPORTING, MONITORING, AND REVIEW 3.11 In the period leading up to credit effectiveness, the existing computer-based project progress reporting system used by TSC would be adapted and extended for use by the five MAs. Staff of the MAs would be specially trained to operate the reporting system. During negotiations, the MAs agreed to provide data on locally implemented components within 14 days of the end of each quarter to TSC. TSC agreed to combine this information with its own data on the centrally implemented components to produce 28 consolidated quarterly progress reports. These would be submitted to the Project Coordination Committee and IDA. The progress reports would cover the status of each civil works contract, the status and timing of procurement steps for each contract, implementation of technical assistance and training activities, funds committed against funds budgeted by sub-project, funds disbursed by sub-project, the status of all bank accounts, cost recovery for services, and general municipal finances. The progress reports would also contain action plans for each component for the coming 12 months, updated each quarter. 3.12 Special monitoring mechanisms would be put in place to assess the effectiveness and efficiency of (a) solid waste collection, (b) solid waste disposal, (c) the operation of the household, neighborhood, and school sanitation programs, and (d) the operation of treatment facilities. Monitoring and performance indicators for the project are shown in Annex 3. 3.13 During negotiations, the Government agreed that the mid-term review of the project would occur by September, 1999. This would be a joint exercise of the Government, the MAs, and IDA designed both as an assessment of past experience and a forward-looking analysis of any changes or remedial actions that may be needed to achieve the project's objectives. The mid-term review would cover the project's components, implementation arrangements, and financing mechanisms, including specifically (a) the progress of physical implementation of infrastructure improvements, (b) the timeliness and efficiency of procurement of works, goods, and consultancy services, (c) the effectiveness and impact of technical assistance and training at the central and local levels, (d) the operation and maintenance components, especially the privatized solid waste collection, (e) the extent to which the MAs have maintained adequate staffing for the project, and (f) performance of the Government and MAs in making counterpart funds available. In addition to the mid-term review, annual joint implementation reviews would be carried out based on the monitoring and performance indicaos D. PROCUREMENT 3.14 A procurement schedule for key contracts, showing the major milestones, appears in Annex 13. A more detailed procurement schedule would be prepared as part of the Project Implementation Plan (see para. 3.9) to be completed prior to credit effectiveness. The capability of the implementing agencies is discussed in Section A above (see especially para. 3.2). An agreement is in place with the Government of Ghana (dated June 1993) regarding time limits for procurement processing for civil works and goods. Table 4 summarizes the project components, their estimated costs, and proposed methods of procurement. At negotiations, agreement was reached on limits to procurement processing time for the various categories of procurement. 29 Table 4: Procurement Method PROJECT ELEMENT Procurement Method N.B.F. TOTAL ICB NCB OTHER 1 Civil Works 42.99 20.44 3.74 -- 67.18 (IDA) (37.26) (16.20) (1.38) (54.83) 2 Equipment and Vehicles 2.88 -- 0.20 0.14 3.22 (IDA) (2.88) (0.20) (3.08) 3 Consulting Services -- -- 11.17 3.87 15.04 (IDA) (11.17) (11.17) 4 Operating & Maintenance Costs -- -- 3.83 -- 3.83 (IDA) (1.92) (1.92) TOTAL 45.87 20.44 18.95 4.01 89.27 (Of which IDA) (40.14) (16.20) (14.66) (0.00 (71.00) Civil Works 3.15 The main civil works components of the project would be (a) primary and secondary drainage, (b) solid and liquid waste disposal facilities, and (c) community infrastructure upgrading. The storm drainage works for Accra and Kumasi and the solid waste disposal facilities for Kumasi, Sekondi-Takoradi, and Tamale are likely to be attractive to foreign bidders and would be tendered through International Competitive Bidding (ICB) procedures. These have an estimated total value of about US$43 million equivalent. The drainage works for Accra (about US$21 m.) would be divided in two packages: one for the Odaw primary drain and one for secondary drains. The Kumasi drainage works (about US$10 m.) would be packaged in one contract. There would probably be three contracts (one per city) for the solid waste facilities (about US$12 m. total). Eligible domestic contractors bidding for civil works under ICB would receive a 7.5 percent margin of preference in bid evaluation in accordance with the provisions of the IDA Procurement Guidelines of January 1995. 3.16 The community infrastructure upgrading subprojects for Accra, Kumasi, and Sekondi-Takoradi, totaling about US$14 million, would be tendered through National Competitive Bidding (NCB) under procedures acceptable to IDA. Because of the number of contracts, the type of work, and the location (in dense, lower-income communities), it is unlikely that these works would be attractive to foreign contractors (though they would not be precluded from bidding). Septage treatment facilities, sewerage rehabilitation works, on-site sanitation facilities, and related works, whose value totals about US$6 million, also would be packaged into contracts suitable for NCB competition by local firms. In the project as a whole, works estimated to cost up to US$2.0 million per contract, up to an aggregate of US$16.2 million, would be procured through NCB procedures. Experience from previous projects confirns that that there are a sufficient number of competent local and locally-based foreign bidders to provide effective competition for these types of works. International contractors, some of which are based 30 in Ghana, would be eligible to bid for these works both individually and/or in joint venture with local firns. 3.17 The household sanitation program (US$3.7 m.) would consist of many very small contracts. These would be managed by a local consultant in each city working under the MA's Waste Management Department. The consultants would select small community contractors, through an acceptable procedure, who would submit proposals for small packages of latrine works. Individual contracts would not exceed US$ 10,000. A detailed explanation of the mechanism appears in Annex 8 (Sanitation Component). The household sanitation program meets the criteria for "community participation in procurement" under the World Bank guidelines, as it involves (a) the use of artisans from the local communities and (b) the application of labor-intensive techniques and beneficiary labor. The program is classified under "other" procurement in Table 4. Goods 3.18 Goods financed under the project would include landfill equipment (bulldozers and front loaders), light vehicles, computers, and miscellaneous equipment for implementing agencies. The total value of goods is estimated at about US$3.2 million equivalent. ICB procedures would be used for the heavy equipment, vehicles, and some office equipment, for a total of about US$2.9 million. About $0.14 m. of equipment would be financed through the Nordic Development Fund. National shopping and/or the use of the Inter-Agency Procurement Services Office (IAPSO) of UNDP may be used for off-the-shelf individual items such as vehicles or computers for contracts not exceeding US$50,000 each. The total value of goods procured through shopping would not exceed US$500,000. All goods imported into Ghana would be subject to pre-shipment inspection for quality, quantity, and customs duty verification (but not price verification for goods procured under ICB). Consulting Services 3.19 Consultants financed by IDA, totaling about US$11 million equivalent, would be contracted in accordance with IDA's Guidelines for the Use of Consultants. The consultancy services required under the project would be for preparation of designs, environmental studies and bid documents, works supervision, project management, and capacity-building. The procurement of consultants would be done using the World Bank's Standard Letter of Invitation and Standard Consultant Contracts. Bank Review 3.20 Prior review by IDA would be required for procurement of works which exceed US$1 million equivalent; for procurement of goods which exceed US$200,000 equivalent; for procurement of services of consulting firms which exceed US$100,000 equivalent; and for procurement of services of individual consultants which exceed US$50,000 equivalent. Prior review for consultant contracts would apply without exception to single-source contracts or assignments of a critical nature. Prior review 31 would cover approximately 70 percent of the total value of contracts financed by IDA. All bidding documents for ICB will be based on the World Bank's Standard Bidding Documents for each type of ICB procurement. E. DISBURSEMENT 3.21 The project would be disbursed over a period of six years, from about July 1, 1996 to June 1, 2002. This is consistent with the standard disbursement profile for urban projects in Ghana. Disbursements are expected to occur as planned because the Technical Services Centre has had extensive involvement as an implementing agency for Bank-financed projects. One of TSC's main tasks would be to assist the Metro and Municipal Assemblies to manage their components of the project. A disbursement schedule appears in Annex 5. 3.22 The IDA credit would be disbursed against the following categones: Table 5: Allocation and Disbursement of IDA Credit Amount of Credit % of Expenditure to be Category (USS million) Financed by IDA 1. Civil Works 49.85 100% of foreign expenditures 75% of local expenditures 2. Vehicles, Equipment and Spare 3.08 100% of foreign expenditures Parts 90% of local expenditures 3. Consultant and TA Services, 9.25 100% of total expenditures Studies & Training 4. Operations (a) Refuse Collection 1.92 75% of total expenditures up to June 30, 1999; 50% of total expenditures up to June 30, 2001; and 25% thereafter (b) Others 0.42 90% of total expenditures 5. Refunding of PPF 1.50 (see DCA Section 2.02(d)) 6. Unallocated 4.98 TOTAL 71.00 3.23 During negotiations it was agreed that MLGRD and TSC would operate a project account in Cedis which would carry the counterpart funding by the Government, and that each MA would operate a Project Subaccount to be replenished quarterly from the Project Account. To facilitate project implementation, Government would open a Special Account in US dollars in a commercial bank acceptable to IDA. The authorized allocation would amount to US$3.0 million and would cover four months of eligible expenditures. Once the Special Account is opened, an amount of US$1.5 million, representing 50 percent of the authorized allocation, would be deposited in it. The 32 remaining balance would be made available when needed. The Special Account would be for payments below US$300,000 equivalent. 3.24 In order to facilitate payments to be made by the five participating MAs for small contracts, each MA would open an Advance Account in US dollars at the branch of a commercial bank, acceptable to IDA, preferably at the branch of the bank which carries the Special Account. Once the initial deposit has been made into the Special Account, a transfer would be made from the Special Account to the Advance Accounts of the participating MAs amounting to US$200,000 for Accra, Kumasi, and Shama-Ahanta East and US$ 100,000 for Tema and Tamale. MAs would replenish these Advance Accounts monthly from the Special Account by submitting fully documented requests to TSC. The latter will, in turn, replenish the Special Account monthly from the Credit Account. TSC will provide guidance to the MAs on disbursements as needed and ensure that proper accounting records are maintained by each MA. 3.25 Replenishment applications would be submitted monthly by TSC. The applications would include details which clearly identify the amounts withdrawn for each MA from the Special Account. All replenishment requests would be fully documented except for: (a) contracts of less than: US$500,000 equivalent for civil works, US$200,000 equivalent for goods, US$ 100,000 equivalent for the services of consulting firms, and US$50,000 equivalent for consulting services by individuals; and (b) operating costs which may be claimed on the basis of the Statements of Expenditure (SOEs). All supporting documentation for SOEs would be retained by TSC for review by periodic Bank supervision missions and external auditors. F. ACCOUNTING AND AUDITING 3.26 TSC and the five Metropolitan or Municipal Assemblies would establish and maintain project-related financial accounts for all components. At negotiations, Government and the MAs agreed to the following financial record-keeping and auditing requirements of the project, with accounts maintained in accordance with sound and internationally recognized accounting principles and practices satisfactory to the Bank. Each of the five MAs would prepare annual statements of account and annual audit reports covering the project components for which they are responsible. These reports would be submitted not later than three months from the end of the financial year. TSC would consolidate the MAs' financial and audit reports with its own annual financial statements reflecting the financial performance and position of the project as a whole. An independent auditor's opinion and report satisfactory to IDA on such statements would be provided within six months of the close of the fiscal year. Special accounts and SOEs would be included in the audit and specifically addressed in the audit report. The auditor's report would also include a statement on the adequacy or otherwise of the accounting system and internal controls, the reliability of statements of expenditures as a basis for credit disbursements, and compliance with financial covenants. The foregoing accounting, financial reporting, and auditing arrangements should provide adequate and timely information to IDA for supervision of the project. 33 4. JUSTIFICATION, IMPACTS AND RISKS A. BENEFITS Health, Productivity, and Well-Being 4.1 The project's improvements in drainage, sanitation, and waste management would contribute to better health and thereby raise the productivity of urban residents, especially the poor, in the five cities. The infant mortality rate in Ghana has dropped by about 25 percent in the past 20 years, but it still remains high at 79 per 1,000 live births. Diarrhea is a major cause of death and disease, with around two to three episodes per child per year. Intestinal worms also exact their toll, particularly among children, for whom ascaris is an important contributor to malnutrition and hookworm an important factor in anemia. Both diarrhea and worn infections directly affect a child's health status and his/her susceptibility to other diseases. Malaria, responsible for some 800,000 deaths annually in Sub-Saharan Africa, appears to be staging a resurgence in Ghana because the parasite is developing a resistance to chloroquine and other anti-malarial drugs, and because its normnally rural or coastal habitats are being spread by urbanization. 4.2 Poverty is the main predictor of urban morbidity and mortality. Water, sanitation, food, shelter, hygiene, medical care, and education all play a part in determining susceptibility to disease. It has been clearly established that the prevention of diarrhea, the reduction in children's worm loads, and the elimination of habitat for mosquitoes and other pests requires improved water supply, sanitation, drainage, solid waste collection, and personal hygiene. However, the health benefits of infrastructure interventions typically are not quantifiable due to the methodological problems of attributing outcomes to various separate factors. 4.3 Sanitation: In Ghana's five major cities, about 40 percent of the population pay to use public latrines that are unclean, inconvenient and lack privacy; 15 percent use bucket latrines which have been banned because of the health hazard to conservancy workers; 40 percent use household water closets that usually overflow to street drains; and 5 percent use traditional or improved pit latrines. In addition, few schools have operational sanitation facilities, and few children are taught or allowed to use public facilities. At present, most of fecal waste generated in Ghana's urban centers is discharged untreated into city streets and drains. 4.4 The sanitation component would provide about 5,500 household, 300 school and 65 public sanitation facilities in the five participating cities, from which some 400,000 people would benefit. While this represents only 15 to 20 percent of the total number of potential beneficiaries, the project would also lay the foundation for reversing the trend in environmental health degradation by establishing the public and private support structures needed to construct and maintain these facilities on a large scale. In the case of school facilities, physical works would be complemented with teacher training in the use 34 of the facilities and practical ways to improve personal hygiene and encourage environmental awareness among children. More generally, each of the cities would benefit from a new septage treatment facility that would allow wastes from household and public facilities to be properly disposed of rather than dumped into local street drains and watercourses. 4.5 Solid Waste: Currently only about half of the solid waste generated within Ghana's five largest cities is collected and disposed in dumps outside neighborhoods. The project would support measures to improve the efficiency and coverage of solid waste collection through private contracting, thereby removing a greater share of the waste from neighborhoods, storm drains, and local watercourses. At appraisal it was too early to make quantitative estimates of the impact of these interventions because studies of collection zones and applicable technology were still ongoing. The project would also finance new sanitary landfills in three cities, which would replace the existing, nearly exhausted dump sites, provide environmentally safe disposal, and permit the elimination of many neighborhood refuse dumps. These measures would eliminate breeding grounds for pests (rats, flies and cockroaches) and focal points for excreta related diseases (as many people, especially children, use local dump sites for defecation). 4.6 Drainage: The health dimensions of poor drainage range from nuisances such as bad odors to serious problems like excreta-related diseases, malaria, schistosomiasis, and filariasis. The project would finance major investments in primary and secondary drainage in Accra and Kumasi. These would improve the functioning of tertiary drainage networks in extensive, densely built up areas. Flood Abatement 4.7 The project's primary and secondary storm drainage improvements (35 percent of total project costs) aim to reduce the incidence and severity of flooding in dense, flood- prone central city areas. Apart from their contributions to improved health, the drainage works would generate other economic benefits in the form of (a) reduced damage to properties, (b) increased industrial and commercial turnover, (c) reduced losses of contents of structures, (d) reduced damage to infrastructure, and (e) fewer traffic disruptions resulting in reduced time losses and lower vehicle operating costs. In Accra, the project would have an immediate impact on some 1,300 properties housing at least 17,000 people which are flooded nearly every year. It would also benefit several thousand other structures which are flooded within 5 to 10 year cycles. Moreover, it would provide large benefits to 71 industrial properties that are flooded within a 15-year period and 98 industries that would be affected by a major 50-year event. In Kumasi, the project would directly benefit 1,290 shops and around 25,000 traders in the Central Market and nearby areas which experience five year cycle floods. 4.8 Economic rates of return using the above types of benefits show that the drainage investments would be amply justified. ERRs have been calculated for the Kumasi and 35 Accra drainage works. Results are summarized in Annex 6. The Kumasi estimates were carried out in late 1995 as part of preliminary design work, with benefits quantified for the first three categories mentioned above. The ERRs for Kumasi drainage are 48 percent for the full improvement scheme and 36 percent for the prioritized improvement scheme (which has somewhat lower capital costs, higher maintenance costs, and slightly lower benefits). The net present values of these schemes using a 12 percent discount rate are US$31.8 million and US$26.9 million respectively. The ERRs for Accra come from the 1991 drainage master plan studies, upon which the UESP investments are based (new preliminary engineering studies are currently underway, and these will include an updated economic analysis). The ERRs for Accra, using the first three benefits categories mentioned above, are 43 percent for the Odaw channel enlargement and 32 percent for the Priority I secondary drains. Net present values using a 10 percent discount rate are Cedis 6.3 billion and Cedis 5.9 billion respectively (1991 values). Cost Effectiveness 4.9 Cost effectiveness has been a major consideration in the choice of technologies for the project. Of the US$8.7 million allocated for sanitation in the project, 79 percent (US$6.9 m.) is devoted to household sanitation with VIP latrines and on-site sanitation facilities in schools and commercial areas. VIP latrines, which cost US$20 to US$60 per capita, are clearly the least-cost solution for medium-density areas. Simplified piped sewerage in similar areas would cost at least twice as much. The financing of public toilet facilities (using the VIP or aquaprivy system) in commercial areas is justified by the eligibility criteria: only those facilities that can operate on a commercial basis (full cost recovery) would be financed. The school facilities (also multi-unit VIPs) are justified by the fact that most children tend not to use public facilities and lack access to a household facility. For solid waste disposal, the selected technology is landfill, which is the lowest- cost, environmentally acceptable method. Landfill costs roughly US$3-5 per metric ton, compared with tidal land reclamation ($5-15/m.t.), composting ($5-20/m.t.), and incineration ($40-60/m.t.). Composting is often thought to be financially viable, but experience in Ghana and similar countries shows that it is not, due to insufficient demand. 4.10 The assistance to be provided under the project for privatized solid waste collection is expected to increase the efficiency of this service. No precise data are available on the actual costs per ton of solid waste collection in Ghana's main cities. However, the low efficiency of present services is evident in low utilization rates of municipal collection equipment, overstaffing, and cumbersome procedures. Data from other countries suggests that competition encourages the public sector to significantly improve its efficiency and to lower costs. Monitoring systems will be introduced under the project to quantify the performance of traditional public sector collection as compared with private contractors. 36 Institutional Performance 4.11 Strengthening of the MAs' institutional and financial capacity to operate and maintain facilities would prolong their useful life and save on repair and rehabilitation costs. The project's support for improved local revenue mobilization, cost recovery through user fees, and capacity building for financial management would provide more resources for the provision of basic infrastructure and services and help reduce the MAs' reliance on the central government budget. Greater local government self-reliance and better financial management would establish a basis for multi-year planning and budgeting, which would help to make the use of scarce resources more efficient. B. POVERTY IMPACT 4.12 The project's improvements in urban drainage, sanitation, and solid waste services would benefit all income groups in the participating cities, which have a total population of about 3.1 million. Because the urban poor in Ghana suffer disproportionately from ill health, mortality, and low productivity caused by inadequate environmental sanitation, systematic improvements in the provision of these services would provide substantial benefits to the poor. About 30 percent of the project's total cost would cover components that specifically target the poor (community infrastructure upgrading, low-cost sanitation) or from which the poor are more likely to benefit than the overall population (solid waste collection). The community upgrading component would directly benefit about 265,000 residents of predominantly low-income urban communities which have severe deficiencies of basic infrastructure (see Chapter 1). A 1991 survey found that average household income levels in the selected communities in Accra were about equal to or only slightly above the 1992 "poverty line" for Ghana as a whole. The sanitation component would provide better services (new household latrines, new and improved public toilets) to around 400,000 additional lower-income urban dwellers. C. ENVIRONMENTAL IMPACT 4.13 Following consultations with the Regional Environmental Division (AFTES), the project was assigned a "B" environmental category. In general the project would improve environmental conditions in urban areas by providing for safer removal, treatment, and disposal of liquid and solid wastes. The main environmental issues involve protection of ground and surface water from contamination by sewage, septage, and refuse leachate. Environmental impact assessments are being carried out as part of the design of the drainage works, sanitary landfills, and liquid waste treatment facilities. Treatment and disposal facilities as well as any drainage outfalls would incorporate design features for mitigating risks to ground and surface waters. Local residents have been or are being consulted regarding site selection. Sites are located away from built-up urban areas. Topographic and geophysical studies are being done to confirm the environmental suitability of the sites. The preliminary design studies for primary drainage and 37 community upgrading include assessments of any relocation that may be needed. Relocation can largely be avoided by seeking drainage and road alignments that do not displace people. If any relocation is needed, it is expected to be small. World Bank guidelines on participation and compensation would be followed. D. RISKS 4.14 Project implementatiQoncould be delayed by the weak capacity of the Metropolitan and Municipal Assemblies. Sanitation, refuse and drainage are most efficiently managed at the local government level. Thus, the incorporation of the MAs as implementing agencies is an essential objective, in order to build their capacity to assume responsibility for these services. Under Ghana's emerging sanitation and waste management policies (see Letter of Sector Policy, Annex 1), the MAs would increasingly manage the work of private contractors who are to be responsible for the direct provision of most infrastructure and services. This means that the MAs would be moving toward smaller, more professional staffs compatible with a focus on planning, coordination, and supervisory functions. The project would attempt to minimize the risks associated with the MAs' weak capacity by (a) limiting the numbers and sizes of components that each MA would manage, (b) requiring each MA to have a basic core staff assigned to the project, (c) providing support for the hiring of contractors to help with technical and financial tasks, (d) ensuring that the central implementing agency supervises and monitors the MAs adequately, and (e) providing substantial training to the MAs' officials and staff. An implementation delay of one or two years would not jeopardize the benefits of the investments. 4.15 There is a risk that counterpart fund may not be available as required, either from the central government or the MAs. While this has not been a serious problem in past IDA-supported urban projects, it continues to be a general issue for the IDA portfolio. It would be addressed by keeping the required counterpart fund contribution modest (10 percent for the GOG and 3.9 percent for the MAs as a group). The GOG and MAs' combined contribution would reach a maximum of US$ 3 to 4 million per year during the three peak years of project implementation. This represents only about 1.3 to 1.8 percent of the national 1996 development budget. 4.16 The project's impact could be reduced if cost recovery and general local revenue mobilization are not implemented effectively, resulting in inadequate funding of operation and maintenance. Household, school, and public sanitation facilities pose a low risk, as these will be provided on a demand basis and will depend largely on direct user maintenance (except public facilities which will be operated on franchise). Drainage also has a low risk of maintenance failure. Sensitivity analysis (see Annex 6) indicates that primary and secondary drainage would provide high economic benefits even if maintenance is well below the optimum. This probably applies also to the sanitary landfill facilities, whose ideal O&M costs are considerable. The septage treatment facilities would be simple, modest-sized stabilization ponds with O&M costs are relatively small and easily absorbed by the cities' budgets. The risk of inadequate O&M 38 funding is being addressed through (a) a credit covenant requiring the MAs to allocate O&M funds to separate program budget lines for waste management and drainage, (b) an intensive effort to build ownership of the project on the part of the Metropolitan and Municipal Assemblies during preparation and up to effectiveness, and (c) the provision of a considerable amount of capacity-building relating to O&M during implementation. 39 5. AGREEMENTS REACHED AND RECOMMENDATION A. AGREEMENTS REACHED AT NEGOTIATIONS 5.1 Government and IDA agreed on the content and form of grant agreements to be signed between the Ministry of Finance, the Ministry of Local Government and Rural Development, and each of the MAs dealing with the latters' obligations under the project (para. 3.7). 5.2 Government agreed to require the MAs to allocate, as of the third year of implementation, appropriate amounts to be agreed with IDA each year in separate budget lines for waste management and drain maintenance (para 2.36). 5.3 Government agreed to open and maintain a Project Account and cause the MAs to open and maintain Project Subaccounts to be replenished quarterly from the Project Account (para 3.23). 5.4 Government agreed to prepare and furnish to IDA quarterly progress reports based on monitoring and performance indicators. The MAs would provide the necessary information to TSC within 14 days of the end of each quarter (para 3.1 1). 5.5 Government agreed to hold annual joint project implementation reviews involving MLGRD, MFEP, TSC, the five MAs and IDA. These reviews would cover physical implementation, institutional issues, procurement, disbursements, and progress toward development objectives (para. 3.13). 5.6 Government agreed to submit to IDA, within six months of the end of each financial year, the financial statements of the special accounts, project accounts, and SOEs for the preceding calendar year audited by an independent auditor acceptable to IDA. The MAs would submit to TSC their financial statements and audited accounts for the preceding calendar year by March 31 st each year (para. 3.26). 5.7 Governnent agreed to hold a mid-term review by September, 1999 to (a) evaluate progress toward meeting the project's objectives, (b) assess project management and performance against agreed indicators, and (c) agree on any needed corrective actions (para. 3.13). 5.8 Government agreed to provide sufficient budgetary allocations to MWHI/TSC, MLGRD, and the MAs (through the District Assemblies Common Fund and the regular budget) and disburse these funds quarterly into the project accounts based on disbursement estimates agreed with IDA annually (para. 2.45). 5.9 Government agreed to ensure that the MAs would fill the Project Coordinator, Project Sanitary Engineer, and Project Accountant positions with qualified persons 40 acceptable to IDA and to obtain IDA's no objection in case any substitutions in these positions are needed during project implementation (para. 3.4). 5.10 Government and the MAs agreed to implement cost recovery policies for waste management as described in paras. 2.47 and 2.48. 5.11 Government and the MAs agreed on limits of procurement processing time for the various categories of procurement (para. 3.14). B. CONDITION OF BOARD PRESENTATION 5.12 Government has submitted to IDA the signed Letter of Sector Policy dated January 18, 1996 (para 1.29). C. CONDITIONS OF EFFECTIVENESS 5.13 Government would adopt the Project Implementation Manual (para. 3.10). 5. 14 MF, MLGRD and each of the MAs would have executed the grant agreements referred to in para. 5.3 above (para. 3.7). 5.15 Government would issue a directive satisfactory to IDA requiring the MAs to establish separate budget lines for waste management operations, including solid waste collection and disposal and liquid waste management, and for the maintenance of storm drains (para. 2.36). 5.16 Government would make an initial deposit of counterpart funds into the main project account and into each of the five MAs' sub-project accounts (para. 2.45). 5.17 Govermnent would have caused each of the MAs to have hired persons acceptable to IDA to fill the Project Coordinator, Project Sanitary Engineer, and Project Accountant positions (para. 3.4). D. CONDITION OF DISBURSEMENT 5.18 No disbursements of funds from the credit would be made for civil works for any solid waste disposal or septage treatment facility in each city unless Govermnent provides documentation showing that land for the facility in the city has been acquired in a manner satisfactory to IDA (para. 2.18). E. RECOMMENDATION 5.19 With the above agreements and actions, the proposed project would be suitable for an IDA credit of SDR 47.8 million (US$ 71.0 million equivalent) to the Republic of Ghana. 41 Annex I Page 1 of 4 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Ministry of Local Government and Rural Development Letter of Sector Policy January 18, 1996 The Director West Central Africa Department World Bank Washington, DC U.S.A. Environmental sanitation is an essential component of the health, productivity, and welfare of the Ghanaian population. Inadequate drainage, solid waste management, and disposal of liquid wastes interact to cause major problems, especially in urban centers. The Government's ten year (1991-2000) National Environmental Action Plan (NEAP) highlights sanitation and waste disposal as major issues. The NEAP calls for the implementation of urban waste management and sanitation projects as a top priority; the improvement of urban drainage in coastal cities; and the establishment and implementation of environmental and health standards. However, environmental sanitation has been treated as a relatively low priority in the allocation of national development resources. The Government of Ghana is taking steps to change this. One is the preparation of an Environmental Sanitation Policy (ESP), drafted earlier this year by the Ministry of Local Government and Rural Development (MLGRD). The draft ESP is now being reviewed by other government bodies. Another initiative is the preparation of an Urban Environmental Sanitation Project (UESP), to be financed in part by the World Bank, which is expected to commence in 1996. The ESP provides the framework for accelerated development of the environmental sanitation subsector. The national goal of the policy is the development and maintenance of a sound and sanitary environment in all communities in order to promote the social and economic well-being of the population. The objectives that will lead toward this goal are: a) Recognition of the environmental sanitation sub-sector as one of the categories of the national development program. 42 Annex I Page 2 of 4 b) Establishment of adequate institutional structures at all levels to deal with the various aspects of environmental sanitation. c) Strengthening and promoting the involvement of the private sector in the delivery of environmental sanitation services. d) Promoting the use of cost-effective, appropriate, affordable, and environmentally friendly technologies for addressing environmental sanitation problems. e) Adoption of the cost recovery principle in the planning and management of sanitation services. f) Development of human resource capabilities to manage environmental sanitation. Environmental sanitation comprises storm drainage, waste collection and disposal (including solid waste, sewage and septage, industrial wastes, and clinical wastes), cleaning of public areas, pest control, food hygiene, hygiene education, and related programs. The provision of environmental sanitation services is a legal responsibility of the Metropolitan, Municipal, and District Assemblies. The Government will assist the Assemblies in preparing sanitation plans for their areas. "Strategic sanitation plans" dealing with sewage and septage already have been prepared for the five cities covered by the UESP. Assemblies will be encouraged to use a variety of technologies adapted to different types of housing, commercial, or industrial facilities, densities, soil conditions, user preferences and affordability. The intent is to move away from the use of conventional solutions only, and to employ a range of proven technologies that address the needs of all segments of the population. For example, options for household sanitation include VIP latrines, septic tanks, simplified sewers, and conventional sewers. Options for solid waste collection include communal "skip" containers, arm-roll containers, compactor trucks, modified tippers, and small tractor-trailers for pre- collection. It is essential to mobilize the private sector in order to augment the resources (financial, material and managerial) applied to environmental sanitation and to improve the efficiency and sustainability of services. Private contractors have for some time been hauling septage and have recently begun collecting solid waste in Accra and Tema. The UESP will assist in improving and expanding these types of arrangements. The Government's policy will be to facilitate the participation of private enterprises in activities such as the management of sanitation facilities (through lease or franchise contracts), the collection of septage (through private pumping truck services), the maintenance of city-owned waste collection trucks, and the cleaning and maintenance of drains. Aex 1 43 Page 3 of 4 Some services and facilities--including house-to-house waste collection and public toilets in market areas--can be operated on a commercial basis, whether by the public or private sectors. The policy will be to promote full cost recovery of such services through user charges. Other services--such as communal waste collection or piped sewerage--for which a willingness to pay exists, but not enough for full commercialization, will be offered with user charges that cover at least the recurrent costs, and if possible a portion of the capital costs. For those services that are public goods--e.g. drainage--cost recovery will be through gerieral taxes and fees levied by the Assemblies. As public funds are limited, the general policy will be to target subsidies as much as possible to the lower-income segments of the population. National standards and regulations for environmental sanitation shall be issued by the Environmental Protection Agency (EPA). The Assemblies, in the performance of their functions, shall be guided by the EPA's norms. The Assemblies shall promulgate their own by-laws as needed. The present institutional capacity for setting policies, planning, monitoring, and providing services in environmental sanitation is inadequate. Capacity-building will be needed among the following: a) The Ministry of Local Government and Rural Development, as the lead Ministry for the sub-sector. MLGRD's Human Settlement and Environmental Division will coordinate the provision of policy guidance and technical assistance to local governments. b) A national coordinating body for environmental sanitation policy, representing allied government institutions, non-governmental organizations, and private sector groups. Allied government institutions are the Ministries of Environment, Science, and Technology (and its agencies); Works and Housing; Roads and Highways; Education; and Health. c) Waste Management Departments to be established in the Metropolitan and Municipal Assemblies and Environmental Sanitation Departments to be established in the District Assemblies. These will be responsible for local planning, management, regulation, and provision of services--directly or indirectly through private contractors. d) Private enterprises and non-governmental organizations involved in the provision of environmental sanitation services. Annex 44 Page 4 of 4 In Accra, waste management services have been consolidated under one Waste Management Department (WMD) to enable full accountability for service performance and cost. The UESP wi 11 assist in the establishment of similarly accountable WMDs in Kumasi, Sekondi-Takoradi, Tema and Tamale. The adoption of this institutional model in the five main cities involves the adoption of by-laws enabling the WMD to generate revenues through direct user charges, to retain and manage these revenues for the provision of services, to directly pay the salaries of its staff and to privatise selected aspects of its services. Waste management services are severely underfunded at the local government level. In many cases. capital investments in civil works and equipment have outpaced the ability of the Assemblies to cover operation and mainrenance costs. The Assemblies shall be encouraged to set aside increasing amounts to meet the recurrent costs of waste management services and for the upkeep of facilities and equipment. To help promote such sustainability, the Ministry of Local Government and Rural Development will require each of the five Assemblies participating in the UESP to create a separate budget line for waste management operations, including solid waste collection and disposal. liquid waste management, and cleaning of storm drains. (KWAMENA AHWOI) HON. MINISTER FOR LOCAL GOVERNMENT AND RURAL DEVELOPMENT 45 REPUBLIC OF GHANA Annex 2 Page 1 of5 URBAN ENVIRONMENTAL SANITATION PROJECT Detailed Cost and Financing Tables Table 1: Detailed Project Costs Base Cost 1ncl. Contingencies Project Components (USS Million) (USS Million) COMPONENTS T. BE IMPLEMENTED/ Local Foreign Total Local Foreign Total |COMPONENTS TO BE IMPLEMENTED/I PROCURED BY CENTRAL GOVERNMENT A. Primary and Secondary Drainage Works - Accra 5.10 11.90 17.00 6.23 14.54 20.77 - Kumasi 2.43 5.67 8.10 2.97 6.93 9.90 - Sekondi-Takoradi 0.15 0.35 0.50 0.18 0.43 0.61 B. Landfill & Septage Treatment Facilities - Kumasi 1.56 3.64 5.20 1.89 4.40 6.28 - Sekondi-Takoradi 0.98 2.28 3.25 1.18 2.75 3.93 - Tamale 0.53 1.23 1.75 0.63 1.48 2.12 C. Disposal Equipment - Kumasi 0.00 0.86 0.86 0.00 0.91 0.91 - Sekondi-Takoradi 0.00 0.45 0.45 0.00 0.48 0.48 - Tamale 0.00 0.25 0.25 0.00 0.27 0.27 D. Institutional Strengthening - Ministry of Local Government 0.41 0.00 0.41 0.46 0.00 0.46 - Technical Services Center 0.72 0.00 0.72 0.80 0.00 0.80 - Project Wide Capacity Building 1.15 1.72 2.87 1.28 1.91 3.19 E. Vehicles & Equipment for Inst. Strengthening - Vehicles (incl. Land Titling) 0.00 0.88 0.88 0.00 0.94 0.94 - Computers& Other 0.22 0.22 0.43 0.23 0.23 0.46 F. Training 0.48 0.20 0.68 0.53 0.23 0.76 G. Design & Supervision 1.07 1.61 2.68 1.18 1.76 2.94 H. Land Titling - Consultants 0.00 0.36 0.36 0.00 0.39 0.39 - Equipment 0.00 0.16 0.16 0.00 0.17 0.17 1. Studies 0.25 0.25 0.50 0.27 0.27 0.55 BASE COST 15.03 32.02 47.05 Physical Contingencies 1.07 2.51 3.58 Price Contingencies 1.71 3.56 5.28 TOTAL CENTRAL GOVT. I 17.821 38.09 55.91 17.821 38.091 55.91] COMPONENTS TO BE IMPLEMENTED BY ___ ACCRA METROPOILITAN ASSEMBLY A. Community nfrastructure Upgrading 1.90 2.85 4.75 2.32 3.48 5.80 B. Household Sanitation Facilities 0.47 0.31 0.78 0.57 0.38 0.95 C. Public & School Sanitation Facilities 0.73 0.49 1.22 0.89 0.60 1.49 D. Septage Treatment Facility 0.16 0.24 0.40 0.20 0.29 0.49 E. Design & Supervision 0.55 0.00 0.55 0.60 0.00 0.60 F. Institutional Strengthening 0.78 0.00 0.78 0.87 0.00 0.87 G. Solid Waste Collection 1.00 0.00 1.00 1.11 0.00 1.11 BASE COST 5.591 3.89 9.48 l l Physical Contingencies 0.33 0.39 0.72 l l Price Contingencies 0.651 0.471 1.121 l 1 l TOTAL ACCRA 6.56| 4.75 11.32 6.56j 4.75 11.32 46 Annex Table 1: Detailed Project Costs (cont.) Page 2 of 5 Base Cost Inl. Contingencies Project Components (USS Million) (USS Million) Local Foreign Tobl Local Foreign Total COMPONENTS TO BE IMPLEMENTED BY KUMASI METROPOLITAN ASSEMBLY A. Community Infrastructure Upgrading 1.72 2.58 4.30 2.10 3.15 5.25 B. Household Sanitation Facilities 0.55 0.36 0.91 0.67 0.44 I.l1 C. Public & School Sanitation Facilities 0.40 0.26 0.66 0.48 0.32 0.81 D. Sewerage Rehabilitation 0.12 0.08 0.20 0.15 0.10 0.24 E. Design & Supervision 0.46 0.00 0.46 0.51 0.00 0.51 F. Institutional Strcngthening 0.78 0.00 0.78 0.87 0.00 0.87 G. Solid Waste Collection 0.90 0.00 0.9 1.00 0.00 1.00 BASE COST 4.92 3.29 8.21 Physical Contingencies 0.28 0.33 0.61 Price Contingencies 0.58 0.40 0.98 _ _ TOTAL KUMASI j 5.78[ 2 9.8( 5.78 4.02 9.801 COMPONENTS TO BE IMPLEMENTED BY SEKONDI-TAKORADI METROPOLITAN ASSEMBLY A. Community Infrastructure Upgrading 1.05 1.58 2.63 1.29 1.93 3.21 B. Household Sanitation Facilities 0.32 0.22 0.54 0.40 0.26 0.66 C. Public & School Sanitation Facilities 0.26 0.18 0.44 0.32 0.22 0.54 D. Design & Supervision 0.27 0.00 0.27 0.30 0.00 0.30 E. Institutional Strengthening 0.78 0.00 0.78 0.87 0.00 0.87 F. Solid Waste Collection 0.70 0.00 0.70 0.78 0.00 0.78 BASE COST 3.39 1.97 5.36 Physical Contingencies 0.16 0.20 0.36 Price Contingencies 0.39 0.24 0.63. TOTAL SEKOND1-TAKORADI =-95 T.i [ .3j 3.95] 2.411 6.361 COMPONENTS TO BE IMPLEMENTFD BY ITEMA MUNICIPAL ASSEMBLYII A. Household Sanitation Facilities 0.18 0.12 0.3 0.22 0.15 0.37 B. Public & School Sanitation Facilities 0.04 0.02 0.0 0.04 0.03 0.07 C. Sewerage Rehabilitation 0.20 0.30 0.50 0.24 0.37 0.61 D. Septage Treatment Facility 0.16 0.24 0.40 0.20 0.29 0.49 E. Community Water 0.10 0.15 0.25 0.12 0.18 0.31 F. Design & Supervision 0.12 0.00 0.12 0.13 0.00 0.13 G. Institutional Strengthening 0.78 0.00 0.78 0.87 0.00 0.87 H. Solid Waste Collection 0.50 0.00 0.50 0.56 0.00 0.56 BASE COST 2.08 0.83 2. 91 Physical Contingencies 0.07 0.08 0.15 Price Contingencies 0.24 0.10 0.34 _ E I [i TOTAL TEMA 2.38 1 3.40 2.38 1.021 3.40A l ~~~~~~~- = - 2.38 --____ l___ COMPONENTS TO BE IMPLEMENTED BY rAMALE MUNICIPAL ASSEMRLY A. Household Sanitation Facilities 0.32 0.21 0.53 0.39 0.26 0.65 ||B. Public & School Sanitation Facilities 0.10 0.07 0.17 0.12 0.08 0.21 C. Abbatoir 0.10 0.15 0.25 0.12 0.18 0.31 D. Design & Supervision 0.07 0.00 0.07 0.08 0.00 0.08 E. Institutional Strengthening 0.78 0.00 0.78 0.87 0.00 0.87 F. Solid Waste Collection 0.35 0.00 0.35 0.39 0.00 o0.39 BASE COST ' 172 - -"4 Physical Contingencies 0.05 0.04 0. 1 l Price Contingencies 0.20 0.05 0.25 l l l TOTAL TAMALE 1.97 0.53 2.49 1.97 0.53| 2.49 TOTAL BASE COST 413 4.43 75.16 - TOTAL PHYSICAL CONTINGENCIES 1.96 3.55 5.51 ll TOTAL PRICE CONTINGENCIES 3.77 4.83 8.60 | l l D_TOTAL PRO.JECT _ COST _ 38.461 50.81 89.27f 38.46f 50.811 89.27 47 Annex2 Page 3 of 5 Table 2: Detailed Project Financing 1l _________ _________ Financing Plan (USS Million) Project Components IDA Other Central Metro/Nun l Credit Donors Govt. Assem. I Benef. Total FCOMPONENTS TO BE IMPLEMENTED/ PROCURED BY CENTRAL GOVERNMENT A. Primary and Secondaryl Drainage Worksl - Accra 18.00 0.00 2.76 0.00 0.00 20.77 - Kumasi 8.57 0.00 1.32 0.00 0.00 9.90 - Sekondi-Takoradi 0.53 0.00 0.09 0.00 0.00 0.61 B. Landfill & Septage Treatment Facilities - Kumasi 5.45 0.00 0.84 0.00 0.00 6.28 - Sekondi-Takoradi 3.40 0.00 0.53 0.00 0.00 3.93 - Tamale 1.83 0.00 0.29 0.00 0.00 2.12 C. Disposal Equipment - Kumasi 0.91 0.00 0.00 0.00 0.00 0.91 - Sekondi-Takoradi 0.48 0.00 0.00 0.00 0.00 0.48 - Tamale 0.27 0.00 0.00 0.00 0.00 0.27 D. Institutional Strengthening - Ministry of Local Government 0.46 0.00 0.00 0.00 0.00 0.46 - Technical Services Center 0.80 0.00 0.00 0.00 0.00 0.80 - Project Wide Capacity Building 0.00 3.19 0.00 0.00 0.00 3.19 E. Vehicles & Equipment for Inst. Strengthening - Vehicles (incl. Land Titling) 0.84 0.09 0.00 0.00 0.00 0.94 - Computers & Other 0.41 0.05 0.00 0.00 0.00 0.46 F. Training 0.08 0.68 0.00 0.00 0.00 0.76 G. Design & Supervision 2.94 0.00 0.00 0.00 0.00 2.94 H. Land Titling - Consultants 0.39 0.00 0.00 0.00 0.00 0.39 - Equipment 0.17 0.00 0.00 0.00 0.00 0.17 1. Studies 0.55 0.00 0.00 0.00 0.00 0.55 TOTAL CENTRAL GOVT. I 46.08| 4.01] 5.821 0.00| 0.00] 55.91 COMPONENTS TO BE IMPLEMENTED BY ACCRA METROPOLITAN ASSEMBLY A. Community Infrastructure Upgrading 4.46 0.00 0.77 0.58 0.00 5.80 B. Household Sanitation Facilities 0.35 0.00 0.13 0.00 0.48 0.95 C. Public & School Sanitation Facilities 1.29 0.00 0.20 0.00 0.00 1.49 D. Septage Treatment Facility 0.42 0.00 0.06 0.00 0.00 0.49 E. Design & Supervision 0.60 0.00 0.00 0.00 0.00 0.60 F. Institutional Strengthening 0.87 0.00 0.00 0.00 0.00 0.87 G. Solid Waste Collection 0.56 0.00 0.00 0.56 0.00 1.11 TOTAL ACCRA 8.55 0.00 1.16 1.14 0.481 11.32 48 Annex 2 Page 4 of 5 Table 2: Detailed Project Financing (cont.) Financing Plan (USS Million) Project Components IDA Other Central Metro/Miun Credit Donon Govt Assem. Benef. Total COMPONENTS TO BE IMPLEMENTED BY : KUMASI METROPOLITAN ASSEMBLYl A. Community Infrastructure Upgrading 4.03 0.00 0.69 0.53 0.00 5.25 B. Household Sanitation Facilities 0.41 0.00 0.15 0.00 0.56 1.11 C. Public & School Sanitation Facilities 0.70 0.00 0.11 0.00 0.00 0.81 D. Sewerage Rehabilitation 0.21 0.00 0.03 0.00 0.00 0.24 E. Design & Supervision 0.51 0.00 0.00 0.00 0.00 0.51 F. Institutional Strengthening 0.87 0.00 0.00 0.00 0.00 0.87 G. Solid Waste Collection 0.50 0.00 0.00 0.50 0.00 1.00 TOTAL KUMASI l 7.231 0.001 0.981 1.031 0.56 9.801 COMPONENTS TO BE IMPLEMENTED BY SEKONDI-TAKORADI METROPOLITAN ASSEMBLY A. Community Infrastructure Upgrading 2.47 0.00 0.42 0.32 0.00 3.21 B. Household Sanitation Facilities 0.24 0.00 0.09 0.00 0.33 0.66 C. Public & School Sanitation Facilities 0.47 0.00 0.07 0.00 0.00 0.54 D. Design & Supervision 0.30 0.00 0.00 0.00 0.00 0.30 E. Institutional Strengthening 0.87 0.00 0.00 0.00 0.00 0.87 F. Solid Waste Collection 0.39 0.00 0.00 0.39 0.00 0.78 TOTAL SEKONDI-TAKORADI 4.73 0.00 0.581 0.71 0.331 6.361 COMPONENTS TO BE IMPLEMENTED BY TEMA MUNICIPAL ASSEMBLYlll A. Household Sanitation Facilities 0.13 0.00 0.05 0.00 0.18 0.37 B. Public & School Sanitation Facilities 0.06 0.00 0.01 0.00 0.00 0.07 C. Sewerage Rehabilitation 0.53 0.00 0.08 0.00 0.00 0.61 D. Septage Treatment Facility 0.38 0.00 0.06 0.05 0.00 0.49 E. Community Water 0.23 0.00 0.04 0.03 0.00 0.31 F. Design & Supervision 0.13 0.00 0.00 0.00 0.00 0.13 G. Institutional Strengthening 0.87 0.00 0.00 0.00 0.00 0.87 H. Solid Waste Collection 0.28 0.00 0.00 0.28 0.00 0.56 TOTAL TEMA 2.621 0.00 0.24 0.18! 3.401 COMPONENTS TO BE IMPLEMENTED BY TAMALE MUNICIPAL ASSEMBLY l A. Household Sanitation Facilities 0.24 0.00 0.09 0.00 0.32 0.65 B. Public & School Sanitation Facilities 0.18 0.00 0.03 0.00 0.00 0.21 C. Abbatoir ll 0.23 0.00 0.04 0.03 0.00 0.31 D. Design & Supervision 0.08 0.00 0.00 0.00 0.00 0.08 E. Institutional Strengthening 0.87 0.00 0.00 0.00 0.00 0.87 F. Solid Waste Collection 0.19l 0.00o 0.00 0.19 0.00 0.39 TOTAL TAMALE E1. .0t 015 0.22 0.321 2.49_ TOTAL PROJECT COST IF 71.001 4.011 8.941 3.45 1.871 89.271w 49 Anne2 Page 5 of 5 Table 3: Summary of Project Financing i___ Financing Plan (US$ Million) Project Components IDA Other Central Metro/Mun| T Credit Donors Govt. Assem. Benef. | Total COMPONENTS TO BE IMPLEMENTED/ |PROCUJRED BY CE-NTRAL, GOVERNMENT II A. Primary and Secondary Drainage Works 27.10 0.00 4.17 0.00 0.00 31.27 B. Landfill & Septage Treatment Facilities 10.68 0.00 1.65 0.00 0.00 12.33 C. Disposal Equipment 1.66 0.00 0.00 0.00 0.00 1.66 D. Institutional Strengthening 1.26 3.19 0.00 0.00 0.00 4.44 E. Vehicles & Equipment for Inst. Strengthening 1.25 0.14 0.00 0.00 0.00 1.39 F. Training 0.08 0.68 0.00 0.00 0.00 0.76 G. Design & Supervision 2.94 0.00 0.00 0.00 0.00 2.94 H. Land Titling 0.57 0.00 0.00 0.00 0.00 0.57 I. Studies 0.55 0.00 0.00 0.00 0.00 0.55 | SUB-TOTAL IF 46.081 4.011 .82 0.00 0.00 55.911 |COMPONENTS TO BE IMPLEMENTED BYI IMETROPOLITAN/MUNICIPAL ASSEMBLIESI A. Community Infrastructure Upgrading 10.96 0.00 1.89 1.43 0.00 14.27 B. Household Sanitation Facilities 1.38 0.00 0.49 0.00 1.87 3.74 C. Public & School Sanitation Facilities 2.70 0.00 0.41 0.00 0.00 3.12 D. Septage Treatment Facility 0.80 0.00 0.13 0.05 0.00 0.98 E. Sewerage Rehabilitation 0.74 0.00 0.11 0.00 0.00 0.86 F. Community Water 0.23 0.00 0.04 0.03 0.00 0.31 G. Design & Supervision 1.63 0.00 0.00 0.00 0.00 1.63 H. Institutional Strengthening 4.33 0.00 0.00 0.00 0.00 4.33 i. Solid Waste Collection 1.92 0.00 0.00 1.92 0.00 3.83 jr. Abbatoir 0.23 0.00 0.04 0.03 0.00 0.31 1 SUB-TOTAL 1 24.92 0.00o 3.12 3.451 1.871 33.361 HTOTAL PROJECT COST L 71.001 4.01 8.941 3.451 1.871 89.27 so Anne REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Monitoring and Performance Indicators Sanitation Facilities No. of Facilities No. of Beneficiaries 1. Household latrines 5,560 200,000 2. Public neighborhood facilities 85 80,000 3. School facilities 305 90,000 Delivery of Sanitation Services Number 1. Management intermediaries per city for household latrines and schools 2-3 per city 2. Active artisans building latrines 4-8 per city 3. Private operators for all public facilities 85 4. Cleanliness and working condition of public and school facilities sample to be checked quarterly 5. Cleanliness and working condition of household latrines sample to be checked quarterly Solid Waste Collection 1. New private collection contracts tendered competitively 2-3 per city 2. Full and timely payments to contractors by MAs as required to be established 3. Percentage of contract costs recovered from user fees as per contracts quarterly targets to be set 4. Cost per ton of waste collected quarterly targets to be set - WMDs' direct collection - Private contractors' collection 5. Percentage of generated waste that is collected quarterly targets to be set Drainage I . Establishment of drain maintenance programs in each city as of year 2 2. Cleanliness of drains sample to be checked quarterly Waste Treatment & Disposal Facilities I . Timely completion of construction as per implementation plan 2. Solid waste landfills % of waste reaching landfill; correct operation of facility 3. Septage treatment % of BOD removal Municipal Finances 1. Annual growth of MAs' own source revenues in rMal terms 10% if inflation less than 20% 7% if inflation 20-30% 5% if inflation over 30% 2. Ratios of billing to collection 50% in year 3; 80% in year 6 3. Improved accounting and budgeting annual review 4. Implementation of updated rate imposts for property taxes in the 5 cities as of year 2 of the project 5. Implementation of services or program budgeting systems in the 5 cities as of year 4 of the project Funding of Operation and Maintenance I. Establishment by each city of separate budget lines for O&M as of calendar 1997 2. Allocation of agreed amounts by each city for O&M in yearly budget targets to be set & monitored yearly or quarterly Institutional 1. Establishment of fully accountable waste management departments in all by end of year 2 5 cities 2. Training of MA and other personnel as per annual training plan REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Implementation Schedule Components 1995 I"6 I It" 1 19s 2000 2001 2002 0Q 021 2031 1 Q2 Q31 04 01 Q32 031 Q1 02 Q3 0 1 0203 0 1 Q2 3 01 02 03 01 Q Qi Drainage Accra drainage - Odaw main channel ._ __ Accra drainage - secondary drains umasi drainage ekondi-Takoradi drainage m nm I m *1*0 Landfills Kumasi landfill ...... _ ekondi-Takoradi landfill .. ....... Tamale landfill WON m Equipment and vehicles Solid waste disposal sites .... . MWEENEEM Institutional strengthening m Institutional Strengthening Contract staff for MAs 1__ Contract staff for MLGRD Contract staff for TSC __ Project wide capacity building consultants Land tiding consultants Design and super. of Central Govt components Design and super. of MA components Contnunlty Infrastructure Upgrading (CW) -cra Sukura ........ Accra - Old Teshie nm Accra - West Maamobi _ _ am Kumasi - Aboabo _ _ am Kumasi - Anloga . .... ... _ _ Sekondi-Takoradi - Effia Zongo 1 M m mm Sekondi-Takoradi - Kwesimimtsimx Citywde Sanitation (CW) Household sanitation Public sanitation chool sanitation Septage treatment facility - Accra . . . . Septage treatment facility - Tema .. . . mm Commnunity water suply - Tema . ._ Swerage rehabilitation - Kumasi . w _ _ _ _ Sewerage rehabilitation - Kumasi battoir - Tamale _ Solid Waste Collection x Pvatized Collection Contracts _u Prepare designs and tender documents. Procurement up to contract signing. Implementation. 52 AnInLex 5 Page 1 of 2 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Disbursement Schedule (US$ Million) IDA Quarter End Disbursements Standard Disbursement Profiles Ghana Africa Ghana Quarter Cumulative Cumulative Urban Urban All Sectors (US$m) (USSm) (%) (%) (%) (%) 1995 Ql Q2 Q3 Q4 0.27 0.27 0% 1996 Ql 0.27 0.55 1% Project Approval March 1996 Q2 0.27 0.82 1% Q3 0.54 1.36 2% 0% 0% 0% Q4 0.54 1.90 2% 1997 Ql 0.86 2.76 4% 6% 6% 6% Q2 0.86 3.62 5% Q3 1.03 4.65 6% 14% 10% 10% Q4 1.03 5.67 8% 1998 Ql 4.18 9.85 14% 18% 14% 14% Q2 4.18 14.03 19% Q3 4.53 18.56 26% 26% 22% 22% Q4 7.01 25.58 36% 1999 Ql 6.97 32.55 46% 38% 30% 26% Q2 6.51 39.06 55% Q3 6.26 45.32 64% 50% 38% 38% Q4 5.85 51.18 72% 2000 Q1 4.36 55.53 78% 54% 46% 46% Q2 4.36 59.89 85% Q3 3.11 63.00 890/0 54% 58% 58% Q4 3.11 66.12 93% 2001 Ql 1.07 67.19 95% 66% 66% 66% Q2 1.07 68.26 96% Q3 0.85 69.11 97% 74% 74% 74% Q4 0.85 69.96 99% 2002 Ql 0.52 70.48 99% 82% 82% 82% Q2 0.52 71.00 100% Q3 86% 86% 90% Q4 2003 Ql 90% 98% 94% Q2 Q3 100% 100% 98% 53 Annex 5 Page 2 of2 Disbursement Schedule (US$ Million) IDA Other Donors GOG MAs Beneficiaries Total Quarter Cumul. Quarter Cumul. Quarter Cumul. Quarter Cumul. Quarter Cumul. Quarter Cumul. 1995 Q3 Q4 0.27 0.27 0.27 0.27 1996 Ql 0.27 0.55 0.27 0.55 Q2 0.27 0.82 0.27 0.82 Q3 0.54 1.36 0.03 0.03 0.08 0.08 0.66 1.48 Q4 0.54 1.90 0.15 0.15 0.03 0.06 0.08 0.17 0.81 2.29 1997 Q] 0.86 2.76 0.21 0.36 0.03 0.09 0.06 0.06 0.08 0.25 1.24 3.53 Q2 0.86 3.62 0.21 0.57 0.03 0.12 0.06 0.11 0.08 0.34 1.24 4.76 Q3 1.03 4.65 0.21 0.77 0.06 0.18 0.06 0.17 0.08 0.42 1.43 6.19 Q4 1.03 5.67 0.21 0.98 0.06 0.24 0.06 0.23 0.08 0.51 1.43 7.63 1998 Ql 4.18 9.85 0.18 1.16 0.57 0.81 0.17 0.40 0.07 0.58 5.17 12.79 Q2 4.18 14.03 0.18 1.34 0.57 1.38 0.17 0.56 0.07 0.65 5.17 17.96 Q3 4.53 18.56 0.18 1.52 0.63 2.01 0.22 0.78 0.07 0.73 5.64 23.60 Q4 7.01 25.58 0.23 1.75 0.89 2.90 0.22 1.01 0.07 0.80 8.42 32.02 1999 Ql 6.97 32.55 0.23 1.98 0.89 3.78 0.22 1.23 0.07 0.87 8.38 40.41 92 6.51 39.06 0.18 2.15 0.89 4.67 0.22 1.45 0.07 0.94 7.87 48.28 Q3 6.26 45.32 0.22 2.38 0.82 5.49 0.28 1.73 0.09 1.03 7.67 55.95 Q4 5.85 51.18 0.22 2.60 0.82 6.31 0.28 2.00 0.09 1.13 7.27 63.22 2000 Ql 4.36 55.53 0.17 2.77 0.61 6.92 0.32 2.32 0.09 1.22 5.54 68.76 Q2 4.36 59.89 0.17 2.94 0.61 7.52 0.32 2.64 0.09 1.31 5.54 74.30 Q3 3.11 63.00 0.17 3.11 0.42 7.94 0.18 2.82 0.09 1.40 3.97 78.27 Q4 3.11 66.12 0.17 3.27 0.42 8.36 0.18 3.00 0.09 1.49 3.97 82.25 2001 Q1 1.07 67.19 0.17 3.44 0.12 8.49 0.18 3.18 0.09 1.58 1.63 83.88 Q2 1.07 68.26 0.17 3.61 0.12 8.61 0.18 3.36 0.09 1.67 1.63 85.51 Q3 0.85 69.11 0.17 3.78 0.10 8.70 0.02 3.38 0.09 1.76 1.23 86.73 Q4 0.85 69.96 0.17 3.95 0.10 8.80 0.02 3.41 0.09 1.85 1.23 87.96 2002 Q1 0.52 70.48 0.03 3.98 0.07 8.87 0.02 3.43 0.01 1.86 0.66 88.61 Q2 0.52 71.00 0.03 4.01 0.07 8.94 0.02 3.45 0.01 1.87 0.66 89.27 Total 71.00 4.01 8.94 3.45 1.87 89.27 54 = 6Annex Page 1 of 2 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Economic Analysis Accra and Kumasi Drainage: Benefits and Costs Kumasi Kumasi Accra Odaw Accra Priority I Recommended Prioritized Channel Secondary Scheme Scheme Enlargement Drains 1995 US$ m. 1995 US$ m. 1991 Cedis m.* 1991 Cedis m.* Present Value of Benefits 43.03 38.54 7,856 8,983 Present Value of Costs 11.26 11.63 1,502 3,112 Net Present Value 31.77 26.91 6,354 5,871 Benefit-Cost Ratio 3.82 3.31 5.23 2.89 Economic Rate of Return 47.8% 36.4% 43% 32% *Figures from 1991 Accra Drainage Master Plan. New updating studies are underway to be completed by March 1996. Main Assumptions Discount rate = Kumasi 12 percent (1995). At the time the Accra study was done in 1991, the norm was 10 percent. However, the updated study now underway (to be completed in March 1996) will use the current standard 12 percent). The variation between the discount rates is slight and does not alter the thrust of the findings of economic viability. Real exchange rate constant. Sensitivity Analysis Kumasi: Assume both a decrease of benefits by 20 percent and an increase of costs by 20 percent. ERR then becomes 33.6 percent for Recommended Scheme and 24.4 percent for Prioritized Scheme. Accra: Sensitivity analysis not performed in 1991 study but will be done in 1996 updated study. Switching Values Kumasi: For NPV to become negative benefits would have to decrease by 74 percent (Recommended Scheme) or 75 percent (Prioritized Scheme). Accra: Switching values not calculated in 1991 study but will be done in 1996 updated study. 55 Annex 6 Page 2 of 2 Nature of Benefits Avoidance of building fabric damage: Surveys were carried out to inventory structures within the project areas (industry, trade, and residential). Assessments of the ratable values of the structures were carried out. These were based on construction costs for various categories of properties and calculated on floor areas (m2). Damage estimates were based on the depth of flooding that properties are subjected to. Tables of depth- flood damage potential relationships were developed. Based on the water surface profile that would result from an expected 15 year flood, the expected mean flood depth over the flood-prone areas and the corresponding damage were estimated with the aid of topographical maps. Considering the 15-year flood occurrence, estimated damages were spread evenly over the amortization period. Avoidance of contents damage: This was based on estimates of the value of equipment, materials, and commodities and their elevations in the structures. Sample surveys determined the types, quantities and values of contents affected. Usually there is little chance of salvaging contents before floods occur, so losses tend to be considerable especially in wholesale establishments. Depth distributions of flood damage potential related to structure content were combined with survey data. The percentage of potential damage was estimated for each content category. For Accra, residential contents damage was also estimated based on house inventory valuations drawn up with the aid of the State Insurance Company and other sources. Avoidance of sales losses: A huge variety of trade activities occur in the affected areas, including foodstuffs, leatherware, glassware, metal products, clothing, and building materials. A large amount of porterage and motorized transport services are carried out in support of these sales. Losses are mainly the result of the suspension of trading activities during floods and during the ensuing clean-up periods. Sample surveys of traders of all categories was carried out to estimate daily sales volumes. This information was combined with flood incidence data to estimate the annual losses. These were computed on the basis of estimated net profits. The value of potential flood damage is expected to increase each year due to new construction and real expansion of economic activity. Benefits were thus assumed to grow by three percent per year, commensurate with expected economic growth. The above benefits alone produce the high ERRs reported in the table. Major non- quantified benefits are: (a) reduced deaths and illnesses from elimination of standing water, (b) reduced damage to infrastructure, (c) lower costs associated with traffic disruptions, and (d) indirect or multiplier costs (e.g. extra economic costs due to utility disruptions). Main Beneficiaries Industrial enterprises (large and small), wholesale and retail enterprises, small-scale traders, and residents of flood-prone areas. 56 56 ~~~~~~~Annex 7 Page 1 of 4 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Drainage Component OBJECTIVES 1. The objectives of the component are (a) to improve priority primary and secondary drainage systems serving the central business areas of Accra, Kumasi, and Sekondi-Takoradi which suffer regular inundation and (b) to establish construction and maintenance responsibilities for drainage along with practices and programs to ensure the sustainability of drainage investments. DETAILED DESCRIPTION 2. The component will include the following: a) Dredging and lining approximately 7 km. of Accra's primary drainage channel, the Odaw River, to alleviate flooding of major commercial and residential areas and construction of up to 20 km. of highest priority secondary drains. b) Dredging and lining approximately 7.6 km. of Kumasi's primary drainage system, the Nsuben River, and selected secondary and tertiary drains which serve the city's central commercial, market, and transportation node (lorry park and railway station). c) Rehabilitating parts of the drainage system serving the Market Circle in Takoradi to relieve bottlenecks and alleviate flooding. d) Strengthening the ability of the respective Metropolitan Assemblies to maintain drainage infrastructure through the establishment of budget lines for drain maintenance and implementation of maintenance plans. 3. The sub-projects to be financed were identified from Drainage Master Plan studies carried out with World Bank assistance in 1990-91 in both Accra and Kumasi. The proposed investments represent the highest priority interventions proposed in each of the studies based on benefit/cost ratios, populations served, and drainage capacity ratios. 4. For Accra and Takoradi, consultants are preparing preliminary engineering which, after review, will be followed by detailed engineering and preparation of bid documents. Preliminary engineering is already complete for the Kumasi program, and consultants have commenced detailed engineering. Bid documents for drainage in Kumasi are scheduled for completion prior to scheduled credit effectiveness (July 1996). 57 Annex 7 Page 2 of 4 5. Based on the Master Plan study in Accra, the Odaw River will be dredged as a trapezoidal channel. The top width will range from 65 m. at its outfall in the Korle Lagoon to 45 m. at its upper reach near the Accra-Tema motorway, approximately 7.2 km. from the outfall. Depths range from 5 to 7 m. This was one of three options for improvement of the Odaw River that were studied by the Master Plan consultants and is the only option that would prevent flooding adjacent to the river. The channel would have sufficient capacity to contain a 50 year design flood. With freeboard the channel could also convey a 100 year event without flooding. The secondary drainage systems in various locations within the city will be improved by desilting, realigning, and lining with in-situ mass concrete sections and/or precast reinforced concrete U-sections or pipes. 6. In Kumasi the upper length of the Nsuben River (0.5 km in length ) and major secondary drains feeding it will be buried in concrete lined rectangular sections. The primary drain will range in size from 2 to 2.5 m., and the secondary channels from 1.5 to 3.25 m. The middle section, of 2.5 km. length, will also be lined with in-situ concrete as a rectangular section of 6-8 m. top width and 2.8 m. depth. The downstream section, of 4.6 km. length where development is much less dense, will be dredged and left as a trapezoidal earth channel ranging in size from 6 to 12 m. wide and 2.5 to 2.65 m. deep. This channel will also be lined with stone pitching in certain stretches to improve hydraulic properties of the channel and reduce scour. 7. A number of market stalls in Kumasi which are occupied during trading hours would need to be temporarily relocated to permit construction. These would be restored to their original locations. In addition, 15 shops in the railway area adjacent to the Central Market would be permanently relocated. GOG and the KMA are following the Bank's guidelines on relocation. A schedule of all properties affected by the works either temporarily or permanently has been compiled. Alternative sites have been identified for temporary stalls whilst works are carried out and also for the 15 shops to be relocated. Shopkeepers are being fully consulted. Compensation will be assessed and paid. The 15 shops will be provided with new facilities at a mutually agreed location which will provide equivalent or better incomes. Details of compensation, relocation logistics, and development of the new shop site are being incorporated in a resettlement plan being prepared by the consultants carrying out detailed engineering. This plan is to be submitted and reviewed prior to negotiations COSTS 8. The base cost of the drainage component (excluding design and supervision and physical and price contingencies) is estimated at an overall total of US$ 25.6 million. This is made up of US$17.0 million in Accra, US$8.1 million in Kumasi and US$0.5 million in Takoradi. Table I summarizes program details and costs in the respective cities. 58 Annex 7 Page 3 of 4 IMPLEMENTATION 9. Historically, responsibilities for drainage have been unclear and divided between Roads Authorities, AESC Hydro, and respective local governments, each of which has a different parent Ministry. Consequently attention to, and investment for, capital improvements, rehabilitation, and maintenance have been inadequate. Local government legislation points to drainage being the responsibility of local government (i.e., Metropolitan, Municipal, and District Assemblies). However, Assemblies lack the technical capability to design and the funds to construct large-scale drainage works. The component in the UESP will thus be implemented (and funded) by central government. 10. The Technical Services Centre (TSC) of the Ministry of Works and Housing (MWH) will have responsibility for procurement and administration of contracts for drainage on behalf of the MLGRD. The bid documents will be prepared by consulting engineers already engaged and funded through a PPF, and capital works will be carried out by experienced civil works contractors who will enter into contracts with TSC. Consultants will be engaged through the project for construction supervision. MAINTENANCE 11. Responsibilities for drainage maintenance have historically been unclear, and this has contributed to inadequate budget allocations for drainage maintenance. Whereas Assemblies are legally responsible for drainage, the reality is that they have neither the expertise nor resources to carry out adequate levels of routine and periodic maintenance for primary, secondary and tertiary drains. For the foreseeable future, the central government will have to shoulder a considerable part of this responsibility. Communities themselves, through locally based organizations, could assist in the routine maintenance (cleaning and desilting) of tertiary drains. Priority drainage maintenance activities of Assemblies should focus on secondary drainage systems. So that in future drainage provision and maintenance responsibilities are rationalized and scarce funds targeted on the most important drainage maintenance activities, the project would support a study which would address these issues and make recommendations as to a more effective way forward in the future. 12. In the short term, the project will promote the gradual assumption of more systematic responsibility for drain maintenance by the Assemblies by (a) providing technical assistance for the preparation of drain maintenance plans and (b) requiring each Assembly to allocate funds annually in a separate budget line for drain maintenance. Table 1: DRAINAGE COMPONENT - SUMMARY COST TABLE Costs are base costs in US$ million at July 1995 REF. DESCRIPTION QUANT UNIT UNIT TOTAL LOCAL FOREIGN NOTES COST COST COST COST ACCRA 1 Odaw River trapezoidal channel 7200 m 6.00 1 contract 2 Priority secondary systems 13 no 11.00 2 contracts Total Accra 17.00 KUMASI Upstream Section 1 Kejetia lorry park 520 m 0.57 2 Tertiary drains-central market 3300 m 0.64 3 Tertiary drains-Asafo market 1020 m 0.18 @ 4 Diversion drain around central mkt 330 m 1.2 5 Secondary drain to Asafo mkt 200 m 0.22 Sub-Total 2.81 Middle Section 1 Concrete lined rect.section 2500 m 3.31 Sub-Total 3.31 Downstream Section 1 Trapezoidal earth channel 4600 m 1.93 Sub-Total 1.93 Total Kumasi 8.05 All in 1 contract TAKQRADI 1 Rehabilitation Market Circle drain 1 item sum 0.5 1 contract X M Total Takoradi 0.5 GRAND TOTAL 25.60 Annex 8 60 Page 1 of 6 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Sanitation Component SANITATION PLANNING 1. In Ghana's five major cities about 40 percent of the population pay to use public latrines that are filthy, inconvenient and lack privacy; 15 percent use pan latrines which have been banned because of the health hazard to conservancy workers; 40 percent use household water closets that usually overflow to street drains; and 5 percent use traditional or improved pit latrines. In addition, few schools have operational sanitation facilities. At present, hardly any of the fecal waste generated in the MAs is properly treated before disposal. Septic tank overflows, septage removed from household and public facilities, industrial effluent from factories, leachate from sawmills and waste oil from vehicle repair areas end up in local drains and vacant lots. As a result storm water drainage systems have become open sewers. With rapid urbanization, the already poor sanitation conditions will worsen if no urgent and effective actions are taken. 2. To begin addressing these problems, the cities participating in the UESP have prepared Strategic Sanitation Plans (SSPs) that set out their strategy for providing comprehensive sanitation services by the year 2005. The SSPs include a priority listing of the mix of household, public and school facilities needed to serve each city's low income households and a description of the management and financing arrangements needed to implement each component. 3. The plans differ from traditional master plans in that they (i) tailor recommended technical options to each type of housing or neighborhood in the city, (ii) consider user preferences and willingness to pay, (iii) use a relatively short planning horizon (10-15 years) emphasizing high priority actions, and (iv) break the overall plan into projects that can be implemented independently but which together provide full coverage. The intent is to move away from a focus on conventional sewerage alone, and to consider a range of proven technologies which address the needs of all segments of the urban population, recognizing resource constraints and paying due attention to willingness and capacity of users to pay for improved services. 4. To address the MAs' immediate problems, the SSPs call for (i) elimination of pan latrines and a move from public facilities to household sanitation facilities, (ii) improved public facilities in neighborhoods and commercial centers, (iii) improved school facilities, and (iv) new septage treatment facilities. The MAs would help pay the costs of sewers and household latrines in low-income neighborhoods if the beneficiaries pay the full cost of operation and maintenance. The MAs would also finance the rehabilitation of 61 Annex 8 Page 2 of 6 public facilities in neighborhoods and new or rehabilitated facilities in commercial areas, provided operation and maintenance is contracted to a private company. 5. In order to make the best use of limited financial resources the MAs have decided to provide for a mix of sanitation technologies. Recommended technological options for each housing type are based on housing densities and household income, and subsidies would be targeted on low-income households. In high-density, low-income housing areas, where space limitations preclude less expensive on-site systems, the MAs intend to help finance simplified sewers for which beneficiaries would pay the full cost of operation and maintenance. In rural and medium-density, low-income housing areas the MAs would split the cost of household latrines with the beneficiaries, as they are the least-cost, technically-viable option for the area. In low-density, high-income housing areas households would pay the full cost of on-site WC/septic tank systems. PROJECT DESCRIPTION 6. The five cities participating in the project have elected to use part of their UESP funds to (i) finance sanitation programs to improve services in low-income neighborhoods and schools, and (ii) construct septage treatment facilities. In addition, Tamale would use UESP funds to construct a new abattoir; Kumasi would rehabilitate a community septic tank disposal system; and Tema would rehabilitate selected existing sewers systems in two communities and improve water supply services in a third. The table below lists the numbers and types of facilities planned for each city under the project. These numbers may change somewhat during implementation depending on demand and actual unit costs. Table 1: Types and Numbers of Facilities Sekondi- Accra Kumasi Takoradi Tamale Tema TOTAL Household latrines 1,200 1,700 1,200 1,000 460 5,560 Public facilities (neighborhood) 26 4 10 4 0 44 Public facilities (commercial) 10 5 3 3 0 21 Schools 150 95 40 10 10 305 Septage treatment facilities I I I I 1 5 Sewerage rehabilitation X X Community water supply X Abattoir X 7. Household facilities: About 15 percent of the households in low-income, medium density neighborhoods in the five cities (where 30-45 percent of the cities' population reside) would obtain a new household latrine through the project. While only a fraction of the total number of households would directly benefit from the project, the component would build demand for household latrines and put in place the public and private sector Annex 8 62 Page 3 of 6 support structures needed to construct and maintain them on a larger scale. It is expected that additional financial support can be mobilized in the future to meet demand. 8. Household latrines would be constructed by small local contractors who would be selected through a prequalification process and trained to market, design and construct household latrines. Day-to-day management services for the cities' household latrine programs would be contracted to one or more local firms termed "management intermediaries". Their management responsibilities would include vetting household grant applications received through pre-qualified contractors, reviewing design at the site, awarding individual contracts, and making payments to contractors (25% down and 25% upon acceptance of the works). These firms would also provide training and follow-up support to contractors. Marketing support would be provided by the city through newspaper, radio and television advertisements. 9. Day to day maintenance of household latrines would be the responsibility of the households themselves. Usually households would employ private sludge haulers to empty their latrine pits, although latrines with alternating pits can periodically be cleaned out by hand by a household member or private individual after wastes have been stabilized. 10. Public Facilities: The project will finance the construction of public sanitation facilities in commercial areas such as markets, lorry parks and light industrial areas, but only where operation on a full cost recovery basis is possible. Operation and maintenance would be contracted to private lease contractors who would charge a user fee (which is currently the custom) to cover operating and maintenance costs, profit, and a lease fee paid to the city to recover capital expenditures. Private sludge haulers would periodically be hired by the operator to empty the latrine pits. 11. Since household latrines provide a more convenient service at less cost than public latrines, no new neighborhood public facilities would be built using public funds. However, since not all residents would be able to afford a household VIP latrine even with the proposed cost sharing program, the cities would finance the cost of minor renovation of existing public aquaprivies and the rehabilitation of public pan latrines. However, municipal financing would only be available to communities which agree to contract operation and maintenance to a qualified private company. Revenues generated from user fees at the public neighborhood facilities would cover operation and maintenance, operators' profit, and in some cases a small rental fee. Operators would periodically employ private sludge haulers to empty their latrine pits. 12. School Facilities: The MAs intend to improve sanitation conditions at primary and junior secondary schools and to instill proper hygienic behavior and attitudes among school children. Parent-Teacher Associations (PTAs) would be able to obtain new or improved sanitation facilities (VIP latrine or WC/septic tank with drain field) if (i) they prepare a Facilities and Management Plan and (ii) collect sufficient funds to pay for operations and maintenance for at least one year. A local management intermediary (see 63 ex 8 Page 4 of 6 Household Facilities, above) would be contracted to implement the program including (i) promotion, (ii) assistance to individual PTAs to prepare their Facilities and Management Plans, (iii) management of procurement, (iv) supervision of construction, and (iv) training of selected teachers in hygiene education. Enrollment at each school averages about 400, divided into morning and afternoon sessions. In some instances two or three schools are clustered at the same site. Typically each would be served by a VIP latrine or WC/septic tank with five cabins (four the children and one for the teachers). For the purposes of implementing the UESP, schools would be grouped in batches of five to ten. Training materials for hygiene would be provided by the local consulting firm which is preparing similar materials for the National Community Water and Sanitation Program. Operation and maintenance arrangements would be determined by school officials plus PTAs and would be described in individual Facilities and Management Plans. PTAs would be encouraged to contract a qualified private company to maintain their facility, with support from school custodial workers. Private sludge haulers would periodically be hired to empty the latrine pits or septic tanks. 13. Septage Collection, Treatment and Disposal: The cities would begin to get out of the septage hauling business by leasing at least some of their suction trucks to private operators who could purchase the vehicles at the end of the lease period. Septage removed from septic tanks and public latrines would be conveyed to the city landfill site where it would be treated in a ponding system; settled sludge would be mixed with sawdust or similar material and composted for resale as a soil conditioner or disposed in the landfill site. The septage treatment ponds would be operated by private contractors paid through compost sales where there is a sufficient market and/or through tipping fees. COSTS 14. The base cost of the sanitation component (excluding septage treatment facilities for Kumasi, Sekondi-Takoradi and Tamale which are packaged with the solid waste disposal sites) is US$8.1 million. A summary of planned costs by city and sub- component is given below. The distribution of costs between sub-components in a given city may shift during implementation depending on demand. 64 Annex 8 Page 5 of 6 Table 2: Cost of Facilities (US$ 1000s) Sekondi- TOTAL Accra Kumasi Takoradi Tamale Tema COST Household latrines 780 905 540 530 299 3,054 Public facilities (neighborhood) 168 85 130 25 - 408 Public facilities (commercial) 250 175 75 75 - 575 Schools 800 400 240 60 60 1,560 Septage treatment facilities 400 - - - 400 800 Sewerage rehabilitation - 200 - - 500 700 Community water supply - - - - 250 250 Abattoir 250 250 TOTAL 2,398 1,765 985 940 1,509 7,597 PROCUREMENT 15. The Metropolitan Assemblies would be directly responsible for all procurement in the sanitation component, except for the septage treatment facilities in Kumasi, Sekondi- Takoradi and Tamale which would be part of the landfill facilities implemented under central government supervision. The following table gives a summary of procurement methods and contract packaging for each sanitation sub-component. Table 3: Procurement Arrangements Cost Procurement (US$1000s) Category Method Contract Packaging Household latrines 3,054 CW Other 5 units per contract Public facilities (neighborhood) 408 CW LCB 5- 10 units per contract Public facilities (commercial) 575 CW LCB 2-3 units per contract School facilities 1,560 CW LCB 5- 10 units per contract Septage treatment facilities 800 CW LCB I contract per city (2 total) Sewerage rehabilitation 700 CW LCB I contract per city ( 2 total) Community water supply 250 CW I contract Abattoir 250 CW I contract Management Intermediary (I) TA Other 1-3 contracts per city Design and const. supervision (2) TA Other I contract each (6 total) TOTAL 7,597 (I) Approximately 7.5% of construction costs (US$345,000) and covered under design and supervision. (2) Approximately 10% of construction costs (US$220,000) and covered under design and supervision. Facilities include septage treatment in Accra and Tema, sewer rehabilitation in Kumasi and Tema, Abattoir in Tamale, and community water supply in Tema. 65 Annex 8 Page 6 of 6 16. Construction contracts for public sanitation facilities would be let through local competitive bidding procedures to qualified contractors. Generally five to ten facilities in neighborhoods (about ten contracts total) and two to three facilities in commercial areas (about eight contracts total) would be packaged per contract. MA staff would prepare contract documents, manage the bidding process, and supervise the construction of these facilities. Contracts and bid evaluation reports would be reviewed by the MA Tender Board, and contracts would be signed by the MA. 17. Construction contracts for school sanitation facilities would be let through local competitive bidding procedures to qualified contractors. Generally five to ten school facilities (about 30 contracts total) would be packaged per contract. Management intermediaries (one per city) would prepare contract documents, manage the bidding process, and supervise the construction of these facilities. Contracts and bid evaluation reports would be reviewed by the MA Tender Board, and contracts and payment checks would be signed by the MA. 18. Individual construction contracts for septage treatment facilities in Accra and Tema, sewer rehabilitation in Tema and Kumasi, and water distribution piping would be let through local competitive bidding procedures to qualified contractors. MA staff would prepare contract documents, manage the bidding process, and supervise the construction of these facilities. Contracts and bid evaluation reports would be reviewed by the MA Tender Board, and contracts and payment checks would be signed by the MA. 19. Construction contracts for all household latrines would be let to pre-qualified artisans through a private management intermediary, subject to confirmation that the design and bill of quantities are correct. Five or more household facilities would be packaged per contract neighborhoods (about 1,000 contracts total). A priced bill of quantities, annually negotiated between the city and pre-qualified contractors, would be used to set prices. Contracts and payment checks would be signed by the management intermediary. 20. Contracts with management intermediaries would be arranged by the MAs. A stepwise selection process would be used in which interested local groups would be invited to submit letters of interest together with the CVs of proposed personnel to be assigned to the work. The group with the best management experience and technical team would be selected, and a contract would be negotiated based upon agreed inputs and unit costs. Contracts and evaluation reports would be reviewed by the MA Tender Board, and contracts and payment checks would be signed by the MA. The management intermediary would be paid on a commission basis at a flat rate of about 7.5 percent of the construction cost of both household latrines and school facilities. 66Ane9 Page 1 of 8 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Solid Waste Component INTRODUCTION 1. The solid waste component of the project is designed to address: (a) the privatization of collection services in a portion of the five cities of Accra, Kumasi, Tema, Tamale, and Sekondi-Takoradi, and (b) the implementation of sanitary landfills in the three cities of Kumasi, Tamale, and Sekondi-Takoradi. Privatization of collection services will be conducted through mixed contract and franchise arrangements in selected zones and designed to optimize cost recovery according to the ability and willingness of waste generators to pay for service. 2. Information for the planning of the solid waste component was initially based on the multi-sectoral feasibility studies conducted under the World Bank Urban II Project for Tema, Tamale, and Sekondi-Takoradi, and Bank mission efforts in Accra and Kumasi. Siting for the sanitary landfills was conducted by municipal officials, and geotechnical studies and topographic surveys were conducted at the selected sites to verify their viability. Preliminary willingness-to-pay studies were conducted in Kumasi, Tamale and Sekondi-Takoradi to determine the viability of privatization. A seminar with local officials and potential private sector investors in July 1995 established their mutual interest in privatization and the terms and conditions which would be necessary. SERVICE LEVELS FOR SOLID WASTE COLLECTION 3. According to interviews with solid waste managers, the following levels of service existed at the time of project appraisal: Accra, 60-65%; Kumasi, 45-50%; Tema, 50-55%; Tamale, 10-15%; Sekondi-Takoradi, 40-45%. In recent years Accra and Kumasi obtained bilateral assistance grants (from Germany and England, respectively) in the form of solid waste collection vehicles and spare parts, and no new assistance in the near future is anticipated. Tema, Tamale and Sekondi-Takoradi are expected to receive new solid waste collection vehicles and spare parts in 1995 through the World Bank Urban II Project. After receipt of the new vehicles, the service levels in these cities are expected to be increased by 10-20%. A shortfall in service will remain in each city. Initially, privatization will address the shortfall in service levels. Gradually, if successful in introducing efficiency and obtaining private sector investment, privatization may be extended to cover as much as 70% of the service requirements of each city, leaving at least 30% of service coverage to government to conduct with its own personnel and equipment. Transition to increased privatization will depend on natural attrition of personnel and the ability of the government to reduce roles in accordance with personnel performance expectations. 67 Annex 9 Page 2 of8 LOCAL GOVERNMENT INSTITUTIONAL ARRANGEMENTS 4. In Accra, the solid waste management services have been consolidated under one department to enable full accountability for service performance and cost. In addition to solid waste management, this department also conducts human waste collection, treatment, and disposal. In Kumasi and Tema, consolidation has been partially accomplished; however, sweeping and drain cleaning services continue to be provided under the Environmental Health Division (EHD) of the Medical Officer of Health Department (MOH). In Sekondi-Takoradi and Tamale, the traditional arrangement still exists wherein collection vehicles and landfill equipment, including drivers, are under the management of the Fleet Maintenance Department (FMD), and the human resources for collection, street sweeping, and drain cleaning services are provided by the EHD's. 5. Under the project, the Accra institutional model of a fully accountable Waste Management Department (WMD) would be adopted by the four remaining cities. The change to an Accra model WMD shall include bye-laws comparable to those which Accra has enacted enabling the WMD to generate revenues through direct user charges, manage a segregated account utilizing these revenues, directly pay the salaries of their staff, privatize selected aspects of their service, and perform vigilance and enforcement of laws which control waste generators and haulers. In the process of establishing the new or more autonomous WMDs and their supportive bye-laws, attention needs to be given to providing structures which would minimize political interference in the use of department resources. Technical assistance to help the cities improve their institutional arrangements and development management information systems for solid waste management is included within the project. CENTRAL GOVERNMENT INSTITUTIONAL ARRANGEMENTS 6. Solid waste management is a significant expenditure for local governments. For example, in Kumasi the combined waste management services performed by the WMD and the cleansing staff at the EHD consume about 20% of KMA's annual revenues. If the salaries paid by central government were added, the waste management expenditures amount to about 25% of KMA's revenues. In Tema, waste management services consume 43% of the city's revenues, with payments to waste collection contractors amounting to about 35% of the WMD's total recurrent expenditures. For the cities to do a better job in this high expenditure activity, the central government should provide them with an appropriate regulatory and technical base of support. 7. Data collection and cost analysis on appropriate technology choices should be conducted country-wide and technical assistance made available to the cities. Technical assistance with privatization initiatives and implementation of sanitary landfill should be available to the cities. A regulatory framework governing clandestine disposal, providing sanitary landfill guidance, managing hazardous wastes, and targeting performance goals 68 A Page 3 of 8 needs to be put into place. These subjects will be addressed through the technical assistance and training component of the project (see Annex 11). ORGANIZATIONAL MANAGEMENT 8. With technical support from the German Government, the Accra WMD has implemented a complete set of record-keeping systems on stores inventories, distribution and costs of spare parts, vehicle maintenance histories, maintenance labor, fuel consumption, vehicle productivity, and cost analysis as part of the development of a management information system (MIS). The MIS is complete and fully functional, and has been clearly established as workable for large cities. It should be replicated in Kumasi, and possibly in a modified form should be replicated in the other three cities. PRIVATIZATION OF COLLECTION 9. Since 1994 in Accra, there have been private franchisees working under three-year agreements to provide collection in mixed income areas. These include door-to-door service and communal container service. The franchisees are required to cover their costs through collection of user charges which are established by the AMA. Since 1990 in Tema, private contractors have been providing door-to-door collection. TMA pays the contractors and collects user charges which partially cover the costs of the contracts. Since 1994 in Shama-Ahanta East, there has been a private franchise providing collection by door-to-door service and collecting fees based on individual negotiations between the franchisee and the property owner. 10. While the privatization experience in these cities is limited, there is a strong indication that extending privatized services to a portion of each city and for a selected group of services would be advisable. Efforts to improve the zoning of the contract areas (i.e., to assure equitable distribution of easy and difficult collection problems, and high and low income customers) are underway . Also, efforts to move to a competitive tendering process with payment based on productivity measures (i.e., quantity collected) are recommended, whether the agreement is of the contract or franchise mode. A workshop was conducted in July 1995 with local govermment officials and existing solid waste companies as part of project preparation. The workshop participants developed model terms and conditions for contract and franchise agreements, based on a draft agreement provided by the World Bank, which can be used for implementation of privatization under the project. 11. The key to successful privatization is development of service arrangements which are long enough to allow depreciation of investment, large enough to allow economies of scale, and competitive enough to encourage efficiency. The project will provide technical assistance to support each city's privatization efforts. The following privatization concepts are to be considered for implementation by the five cities: (a) licensing of all private haulers for subscription service of large commercial/industrial generators or construction/demolition debris generators; (b) implementing bye-laws requiring that 69 Anex 9 Page 4 of 8 residents and establishments hire only licensed private haulers; (c) deregulating subscription private hauling and allowing prices to be established on the open market without control; (d) contracts to private workshops for repairs and preventative maintenance; (e) development of equitable zones of about 50,000 to 100,000 residents for purposes of giving franchises or contracts for general solid waste collection service of some of the zones, while keeping others for public service; (f) contracts for the operation and maintenance of the land disposal facilities; (g) contracts for the operation and maintenance of transfer facilities; (h) contracts or commissions for fee collection; and (i) contracts for comparative performance monitoring of all key services. COLLECTION SYSTEMS 12. Residents comply with the communal container system and bring their wastes regularly to the containers. Neighborhoods are clean, except for the sites where the communal containers are located or at communal depots (i.e., open ground transfer sites used in the case where communal container sites have not been established). Lack of adequate equipment, spares, and maintenance systems leads to low levels of vehicle availability and thus to poor service of these communal containers. The result is overflowing waste, highly unsanitary conditions at the communal containers, and infrequent cleaning of the communal depot sites which do not have containers assigned to them. No change in the technology of the current communal container system is recommended, only extension and improved revenue generation. Based on interviews with local officials, the project anticipates that communal container service will be appropriate for the following estimated percentages of city population: Accra 80%; Kumasi 60%; Tema 50%; Tamale 50%; Shama-Ahanta East 65%. 13. There is door-to-door collection within some neighborhoods of the five cities. Door-to-door collection is more sanitary than communal collection and more aesthetically pleasing because the waste is contained in the household until the time of collection. Obtaining compliance of residents with adequate dustbin storage requires more public education, vigilance and enforcement measures to be put into place. To the extent feasible, where residents can comply with the household storage needs of this higher quality of service, it should be implemented. Neighborhoods receiving door-to-door service may be more readily privatized than those receiving communal service, because each dwelling and establishment exclusively receives service for which it can directly be charged a fee. Based on interviews with local officials, the project anticipates that door- to-door service will be appropriate for the following estimated percentages of city population: Accra 20%; Kumasi 40%; Tema 50%; Tamale 50%; Shama-Ahanta East 35%. 14. There has been considerable bilateral support (i.e., amounting to tens of billions of Cedis over the past eight years) given to Accra and Kumasi for their collection systems, including vehicles, containers, spares, training, and technical assistance. Yet, in both cases the systems are inadequate because the equipment is not being adequately repaired, fueled, and managed. Many vehicles in the workshops of Accra and Kumasi have been 70 Annex 9 Page 5 of 8 seriously cannibalized for parts. Vehicle downtime in these cities is about 60% and 50%, respectively. The problem lies with each city's lack of support to meet the budgetary needs of operating and maintaining the fleet. Given this history of poor support, provision of collection equipment to the project cities is not included in the project. Instead, the project will support the privatization of selected zones, as discussed above. 15. Each private collection contract will specify the shares of total costs to be covered by user fees (to be collected by the contractors) and general revenues of the MAs. IDA will finance 50% of the general revenue shares of a group of contracts in the five cities. The total base costs of these contracts will be US$ 1.0 million in Accra; US$0.9 million in Kumasi; US$0.7 million in Sekondi-Takoradi; US$0.5 million in Tema; and US$0.35 million in Tamale. IDA will finance 75% of the costs in years 1 and 2; 50% in years 3 and 4; and 25% in years 5 and 6. DISPOSAL SYSTEMS 16. All of the cities operate disposal by open dumping. Typically swamps, ravines, and quarries have been used for dump sites. No soil is applied to cover the wastes at these sites, and fires regularly burn fueled by the methane being generated within the refuse fills by anaerobic decomposition. Tooth-wheeled payloaders and bulldozers are used at the Accra and Kumasi sites to spread and grade the refuse so that the vehicles have continuous access. Other sites must rely on periodically renting equipment for this purpose. 17. Sanitary landfill facilities are planned under the project for three project cities, namely: Kumasi (11 km. one-way from city center), Tamale (15 km.), and Shama- Ahanta East (10 km.). Sites have been selected which appear to meet technical and environmental site selection criteria. All sites are within viable direct transport distances for the types of collection equipment planned. Land acquisition is being completed for the projected needs for a 10-year life. Preliminary designs and environmental assessments are to be completed by project effectiveness. 18. The possibility of private operation of waste disposal facilities through management contracts or other arrangements will be explored and, and this approach will be implemented if possible. Experience in other countries suggests that private operation of treatment and disposal facilities is significantly more effective than public sector operation. 7 1 Anx Page 6 of 8 FINANCIAL ARRANGEMENTS 19. Costs for solid waste collection depend on cooperation from residents in providing readily liftable storage containers, accessibility of vehicles to collection points, and travel distances and time between collection service areas and disposal sites. Total owning and operating costs have been estimated for practical collection options in the five project cities. Collection range from 11,000 to 16,000 Cedis/tonne for a travel distance of 10 km. to 14,000 to 20,000 Cedis/tonne for a travel distance of 35 km. Total owning and operating costs for disposal are estimated to range from 5,000 to 8,000 Cedis/tonne. Each person generates about 0.2 tonnes/year. Therefore combined collection and disposal costs will range from 3,500 to 6,000 Cedis/capita/year. 20. In Accra, direct charges to waste generators receiving door-to-door collection and using communal containers provide revenues to the WMD. Private collection contractors and franchisees generate revenues based on the same tariff schedule used by the WMD. The tariff schedule is approved by the AMA, and in 1995 averaged a 33,333 Cedis/c.m. fee for door-to-door service, which comes to roughly 5,500 Cedis/month/household. Private haulers pay tipping fees for discharging at the WMD's disposal facilities. Fees collected by the WMD are put into a special account for which the WMD Director and the AMA Treasurer are co-signatories. 21. Only about 1 1% of the total cost of solid waste collection in Accra is for door-to- door service. All costs (even calculated costs for depreciation and spares which were received through bilateral grants) are covered by the user charges collected. The surplus of revenues from cost recovery for door-to-door collection is used to cross-subsidize service by communal container, and the AMA is expected to subsidize the remainder of the communal container service. The total city-wide costs for door-to-door service are 10.2 million Cedis/month and the total billings are 22.0 million Cedis/month. The collection ratio on billings is above 80%. 22. In Accra, 74% of the residents lives in densely populated low-income neighborhoods for which communal container service is most practicable. The cost per household for communal container collection is roughly 25% of the cost of door-to-door service; but, this cost, as a percentage of disposal household income, is high for low income families and not affordable by many. The WMD attempts to collect user charges for services to waste generators receiving communal collection service. The total costs for communal container service are 85.9 million Cedis/month and the total billings are 2.3 million Cedis/month. 23. Kumasi has a direct fee of 3,000 Cedis/month/household for door-to-door service, and revenues from direct charges cover about 10% of costs. Tema's tariff for door-to- door household collection by private contractor is only 1,000 Cedis/month/household, but recovery is over 90% of billings. Revenues from direct fees for door-to-door household service cover about 40% of the costs of the private contracts, the rest is subsidized from municipal general revenues. Neither city collects fees for communal container service to 72 Page 7 of 8 households; however, Tema collects fees for communal container service to large commercial establishments and reportedly covers its costs. Both Kumasi and Tema collect tipping fees from private haulers (not their own contractors) at their disposal sites. 24. Tamale is the only project city with a bell/block system of collection. For this type of service, the MA charges 500 Cedis/monthfhousehold. Tamale has privatized collection by franchise agreements in one area and allows the private company to negotiate fees directly with each household, with 10% profit sharing going to the city. 25. Only Accra has a system of cost accounting which is used routinely for performance evaluation. In the other cities, only data on direct municipal budget items for salaries, parts, and consumables are available. Performing a costing exercise is complicated by the fact that many staff are seconded to the waste management service from other government agencies. For examnple, accounting staff are seconded from the central government Treasury Department, audit staff are seconded from the central government Audit Department, field supervisors are seconded from the municipal MOH Department, and some management staff are seconded from the central government Public Works Department. Salaries for seconded staff are paid wholly by the Department from which they were seconded in the case of central government employees and half by the Department from which they were seconded in the case of local govermnent employees.. 26. Preliminary willingness-to-pay studies conducted in Kumasi, Sekondi-Takoradi, and Tamale during project preparation indicate that the most residents (over 60%) are willing to pay something for solid waste collection service. Experience in Accra and Tema also indicates that most residents are willing to pay something for collection service. High income residents who are well educated are likely to be willing to pay enough to cover costs, as indicated by the Accra experience in areas serviced by door-to- door collection. However, middle-income residents are willing to pay only a fraction of the cost (from 40% to 50%), as indicated by the Tema experience in areas serviced by door-to-door collection. Low-income residents are less willing to pay, and the amount which they could afford would cover only a small portion of cost (less than 40%). To better determine how willingness-to-pay matches service options which could be provided, more detailed willingness-to-pay surveys should be carried out. RECYCLING 27. There is very little waste of recyclable value left in the refuse by the time it arrives at the open dump sites. The small number of waste pickers who work at the open dumps confirms the very limited value of the solid waste discharged to the collection system. Fewer than 20 waste pickers are working at each site. Local industries for plastic, paper, steel, aluminum, and glass provide a good market demand for recyclables, and most wastes are recovered from the source of waste generation. No actions in recycling are to be included in the project. Page 8 of8 SPECIAL WASTE SYSTEMS 28. Systems for separating infectious and hazardous medical wastes from general hospital effuse need to be better developed. The current hospital practice of separating only body parts and major infection wastes for special burial or burning within a hole is not adequate. Quick lime is not used in the burial, and burning is incomplete, according to the studies conducted under Urban II Project. Sharps, contaminated cotton, laboratory wastes, etc., also need to be separated from the general hospital refuse. Syringe needles were evident in large quantities within refuse at all of the city dumps visited by the mission and contaminated cotton fabrics are apparently being recycled by waste pickers. These wastes are currently going to the city's open dumps and present a significant hazard to the workers and waste pickers. The wastes can have an effect on the surrounding population due to the spread of disease by vectors such as flies. Designs for the sanitary landfills which are planned under the project should provide for special handling and burial of medical wastes which are suitable for landfill. For other wastes, which require special treatment such as incineration, the project will conduct a feasibility study to determine the most cost-effective environmentally acceptable solution. 29. Based on visual inspection of all official city dumps in Accra, Kumasi, and Tema, hazardous industrial waste was not evident. Interviews with the landfill staff confirm that no large quantities are being discharged and that there have been no known cases of chemical burn or other hazardous waste accidents at the sites. Study for Tema under the Urban II Project further confirms that hazardous waste generation is limited. Based on the level of industrialization present in the five project cities and the information available, no recommendations for hazardous waste management are suggested. The operating plans for the proposed sanitary landfills developed under this project will need to exclude receipt of hazardous wastes, or provide a special secured location for storage until Ghana has a national hazardous waste treatment and disposal facility. 30. Slaughterhouse wastes are not being discharged at the existing open dumps. Available information suggests that nearly all slaughterhouse wastes are being recovered for use and that waste generation is minimal. 31. As the five cities expand their sanitation systems, increased production of night soil, septage treatment plant sludge, and wastewater treatment plant sludge will result. These sludges are being composted with sawdust at some locations (i.e., Accra), and there appears to be good market demand for the compost provided that the compost price is kept low. However, as quantities of sludge increase and if market demand does not cover the extra costs of composting, it may become necessary to dispose of this waste by land disposal. These sludges are acceptable at the landfill as long as they are dewatered to less than 65% moisture and they comprise no more than 10% of the volume of incoming waste. 74 Annex-10 Page 1 of 13 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Community Infrastructure Upgrading Component OBJECTIVES 1. The objectives of the component are to increase the health, general well-being and productivity of selected low income communities by provision of priority basic infrastructure and municipal service improvements which have been identified through consultations with beneficiaries in order to promote sustainability replicability. These objectives would be achieved by: a) Upgrading local (secondary and tertiary) infrastructure in selected urban communities with the severest infrastructure deficiencies in Ghana's three largest cities (Accra, Kumasi and Sekondi-Takoradi); b) Promoting the use of participatory planning and design procedures and functional, affordable standards and levels of service; c) Strengthening the ability of local governments (Metropolitan Assemblies) to collaborate with communities in the planning, design, and implementation of infrastructure upgrading schemes to foster a sense of ownership by the communities; d) Promoting sustainable arrangements for operation and maintenance of basic infrastructure and services. PRINCIPLES 2. The component has been developed in accordance with the following principles: 3. Communities have been selected and formally approved by way of formal resolutions of the respective Metropolitan Assemblies. Communities were selected based on the poor state of existing infrastructure and services together with other criteria including community cohesiveness and initiatives being taken by the communities through the various community groups already established. 4. Improvements have been planned and designed adopting functional standards and service levels and to cost ceilings (per hectare and/or per capita) for affordability and replicability reasons. The planning and design process has involved participation of the respective beneficiary communities. A range of service level options (basic, 75 Annex 10 Page 2 of 13 intermediate, and full) for the "menu" of possible basic infrastructure components was developed, together with their respective cost implications (capital and maintenance costs). These were used to commence the participatory planning process. Functional standards and existing planning guidelines and requirements are to be adopted and applied flexibly to ensure sensitive least cost proposals and the minimization of any resettlement 5. Based on initial perceptions of need and affordability, the anticipated costs would be on the order of US$25,000 per hectare (or up to about US$ 100 per capita) dependent on densities. Costs estimated following the survey and preliminary design process have taken account of not only the basic infrastructure components demanded by communities, but densities, existing service levels, and physical conditions (e.g. soils, topography) encountered in the selected communities. 6. The "menu" of components to be supported was made up of access (roads and footpaths); drainage; water supply; sanitation (human waste management); solid waste management; and street lighting. Beneficiaries expressed a preference for a "balanced" program of improvements (including all components on the menu), mainly in order to have a greater overall impact on the quality of life. 7. A fundamental program criterion has been that operation and maintenance (O&M) costs for the infrastructure improvements will be covered through contributions from the respective communities, whether by way of user charges, existing tariff structures, property taxes, or other community contributions. 8. Details of the facilities to be upgraded, their implementation, capital and estimated annual O&M cost requirements and modalities are to be set out in "Facilities and Management Plans" to which each community (via a joint group of representatives of both formal structures--e.g. Assemblies, Town Councils, Unit Committees, utility agencies--and informal structures--e.g. community organizations such as religious groups, women's groups, youth groups) is to formally agree. 9. Assemblies are to contribute 10 percent of the total capital costs of the program (excepting the sanitation component--see below) with the remainder funded on a grant basis through central government. 10. In addition to the upgrading component, a citywide sanitation program is included as a further component of UESP which is complementary to the upgrading program. The citywide sanitation component will include the rehabilitation of existing neighborhood public facilities as well as establishment of a domestic sanitation program which will require the individual beneficiary to contribute 50 percent of the cost of the VIP or pour- flush facility. 76 Annex 10 Page 3 of 13 11. Essential trunk infrastructure required to ensure the effective operation of secondary and tertiary infrastructure to be upgraded will also be provided under the component (e.g. off-site drainage) and through other UESP components (e.g. city-wide sanitation and solid waste components). DETAILED DESCRIPTION 12. The component will be implemented in Ghana's three largest cities, Accra, Kumasi and Sekondi-Takoradi. In each of these cities, communities severely deficient in basic infrastructure and services were identified in a 1994 consultant's study. The communities included in the UESP program were identified by the respective Assemblies on the basis of the study which ranked communities according to the severity of their needs and their prior demonstrations of community initiative and cohesiveness. 13. In total seven communities in the three cities, covering approximately 530 hectares in which about 265,000 predominantly low-income residents reside, will be upgraded. (see Table 1). The service levels and functional standards developed for the sub-components are summarized below. Access 14. Road hierarchies have been developed in each community: distributors, collectors, access roads and footpaths. Only the busiest routes will be upgraded, namely the links from district distributor roads to markets, lorry parks, public sanitation sites, schools, clinics, etc. Roads and footpaths will be surfaced. Roads will range from 4.5 m. to 7.0 m. wide dependent on function and space availability. Footpaths generally will be 2 m. wide but also dependent on space availability. Construction will consist of double surface dressing on 150 mm. gravel base and 150 mm. gravel sub-base. Road construction will be closely integrated with drainage construction. Drains 15. The project will finance main secondary drains and drains along roads to be upgraded. Drains will be provided on both sides of the road for wider, cambered roads where space permits or on one side of the road for narrower typologies where roads can drain to one side. Capacities for secondary and tertiary drains will be calculated based on catchment areas and rainfall intensity data. Run-off will generally be based on I in 5 year return period storm plus an allowance for sullage flows. Drains will consist generally of open rectangular section mass concrete sections (in-situ or precast). Three sizes (widths) will be adopted: 450 mm., 600 mm., and 900 mm. In cases where existing conditions demand it, trapezoidal section drains will be provided. Headwalls and protection works will be provided at outfalls to major streams or rivers. To ensure efficient discharge to existing primary accepting channels, the component includes a limited budget for eliminating primary drainage bottlenecks in the vicinity of outfalls. 77 Annex 10 Page 4 of 13 Water Supply 16. Water supply system reticulation improvements will be served by existing GWSC distribution systems. Major elements of the system will be designed such that all compounds/houses could eventually connect to the system. However the project will be designed to ensure coverage of no less than one standpipe available for public use (at normal GWSC tariff rates) for every five hectares to augment existing facilities and to ensure availability within 100 m. of all dwellings. Management of the system will be the overall responsibility of GWSC. Sanitation 17. A limited number of public toilet facilities will be provided (20 seat aqua-privy units to serve up to 2,000 people). The major part of the program will, however, provide on-plot facilities (VIP or pour flush toilets) to householders who are prepared to fund 50% of the costs of such an on-plot facility. These facilities have been costed as three cabin VIPs to cater for approximately 30 persons. Management of the sub-component will be as for the city-wide sanitation component of the project, and the budget for the sanitation in the communities to be upgraded is included within the Sanitation component of the Project (see Annex 8). 18. Program sizing has not only taken account of priority demands ascertained from the communities but also affordability, overall budget limitations, and implementation capacity realities. For these reasons the sanitation component of the program is based on meeting about 25 percent of the estimated demand during the project period. Solid Waste Management Facilities 19. Communal containers (10 cu.m.) will be provided together with concrete hardstandings at a coverage of one per four to ten hectares, with the objective of keeping walking distances in the order of 100 m. of every property. Assemblies or private contractors engaged by Assemblies will be responsible for servicing (collection, disposal, return) of the communal containers (skips) in accordance with city-wide arrangements. Disposal of refuse to the skips will be the responsibility of the individual householders or may be through local collection arrangements organized and fumded by the community. 78 Annex 10 Page 5 of 13 Street Lighting 20. Basic street lighting (lanterns and required cabling) will be provided on existing ECG poles at approximately 50 m. to 100 m. intervals or five to ten lights per hectare. ECG will be responsible for providing electricity to the streetlights and covering the power and maintenance costs through the street lighting tariff added to normal electricity bills. Environmental Infiastructure Fund 21. A small "environmental infrastructure fund" is to be made available for each community to support construction of minor infrastructure (e.g. small drainage channels between properties) which is identified by the community during the course of the project. Small schemes to access this fund will be vetted by the supervisory consultants (see Implementation, below), and the community (through the Management Committee) will be expected to contribute 50 percent of the scheme cost. The size of the fund available to each community has been based on the area of the community at a rate of approximately US$1,000 per hectare, as the infrastructure likely to be provided through the fund is of an "area sensitive" nature (i.e. drainage). ENVIRONMENTAL ASPECTS 22. Costs have been kept as low as possible, and involuntary relocation has been minimized through the adoption of functional standards and appropriate service levels. At the completion of preliminary designs, only one area--West Maamobi in Accra--was found potentially to involve relocation to accommodate an access road. This would affect about approximately 31 rooms in 11 compound houses. Roughly 180 residents would need to be relocated. Discussions already have been held between the consultants, landlords, tenants, and officials of the AMA. In the next phase of studies, alternatives will be considered, including further consultations with the affected people. If relocation is deemed to be necessary, a relocation plan would be prepared following World Bank guidelines. 23. Basic environmental impact assessments have been carried out as part of preliminary designs. Where necessary, appropriate localized mitigative measures to protect surface and ground water will be incorporated into designs and bidding documents. Generally, given the infrastructure deficiencies, extremely poor level of sanitation, solid waste management, access and drainage in the communities, the overall environmental impact of the component is significantly positive. Annex 0l Page 6 of 13 PROGRAM SUMMARY 24. Summaries of infrastructure programs in each of the communities, with costs, are given in Tables 2 to 5. A general summary of the infrastructure to be provided is as follows: Access Drains Water Sanitation Solid Street- Waste lights ACCRA Sukura 3260m 4950m 6320m/ 11 taps IOOIF/2 PF 5 skips 263 no. Old Teshie 6650m 6760m 4000m/102 taps 1751F/1 PF 25 skips 508 no. West Maamobi 5880m 6050m 6640m/ 18 taps 140 IF/2 PF 9 skips 441 no. Sub-Total 15790m 17760m 16960m/131 taps 415IF/5PF 39 skips 1212 no KUMASI Aboabo 6800m 10770m 8060m/73 taps 70 IF/3 PF 18 skips 729 no. Anloga 5220m 123 1Om 5780m/75 taps 90 IF/6 PF 19 skips 375 no. Sub-Total 12020m 23080m 13840m/148 taps 160 IF/9 PF 37 skips 1104 no. SEK-TAK Effia Zongo 5570m 5070m 3700m/ I taps 75 IF/3 PF 14 skips 285 no. Kwesimintsim. 3850m 8680m 4600m/16 taps 100 IF/3 PF 20 skips 402 no. Sub-Total 9420m 18820m 8300m/2 7 taps 175 F1/6 PF 54 skips 687 no. TOTAL 68810m 59660m 39100m/437 taps 750IF/20PF 130 skips 3003 no. COSTS AND FINANCING 25. The base cost of the on-site infrastructure component (excluding design and supervision costs and physical and price contingencies) is estimated at US$10.61 million. With off-site drainage costs the total component cost is US$11.67 million. A summary of costs by city is given below. Sanit'n/ US$ Access Drains Water Env.Infr. Solid Street Off-site TOTAL million Supply Fun Waste Lights Drains Accra 1.987 0.743 0.719 0.240 0.263 0.363 0.432 4.747 Kumasi 1.621 1.003 0.552 0.150 0.250 0.331 0.391 4.298 Sek.-Tak. 0.870 0.676 0.269 0.140 0.230 0.206 0.239 2.63 TOTAL 4.478 2.422 1.54 0.530 0.743 0.9 1.062 11.675 26. In the communities densities are relatively high, ranging from approximately 380 persons/hectare to 715 persons/hectare. Costs of components are either "area sensitive" (e.g. roads and drainage networks) or "population/household sensitive" (e.g. on-plot sanitation) and range from an average of US$16,400 per hectare (Sekondi-Takoradi) to US$27,600 per hectare (Kumasi) or US$34 per capita (Sekondi-Takoradi) to US$45 per capita (Accra) excluding the sanitation component. 80 Annex 10 Page 7 of 13 IMPLEMENTATION 27. The three participating Assemblies will take the lead in implementing the program. Beneficiary communities will be involved and consulted as necessary. In each community a Management Committee (MC) will be formed under the auspices of the sub-metropolitan structure and including representatives from relevant formal government entities as well as representatives of established community groups or organizations such as women's groups, youth groups and religious groups. The MC will have a particularly important role, not only being the linkage with, but also the body to resolve issues arising within the community during the construction phase of the program, but more importantly in the subsequent management, operation and maintenance of the facilities to be provided. 28. Supervision of civil works and goods contracts and provision of assistance with O&M programs will be carried out by the MAs through their core project teams. The MAs may contract with a local consultant or other group to assist with the organizational aspects of O&M in the upgrading areas. The responsibilities and functions of the Management Committees JMCs to provide technical and financial services will be detailed in the Facilities and Management Plans. PROCUREMENT 29. One major contract for "network" infrastructure (i.e. roads, drains and water supply and streetlighting) will be awarded in each community to ensure works are properly coordinated. In addition one small contract in each community for solid waste container hardstandings will also be awarded. A number of small contracts are envisaged for the "stand alone" facilities (i.e. solid waste container hardstandings) as well as works funded from the environmental infrastructure funds. An objective of this fund is to finance small, simple civil works capable of being done by community labor or small local contractors, thus generating employment within the community. 30. Management, procurement and supervision of the sanitation component in each of the communities will be in accordance with, and be part of, the city-wide sanitation component being implemented in each of the cities. The solid waste containers (goods) for the respective communities in each of the towns will be aggregated, and one contract for each town (not community) will be bid for internationally, following International Competitive Bidding (ICB) procedures, for economies of scale. OPERATION AND MAINTENANCE ARRANGEMENTS 31. The funding and execution of simple O&M activities (e.g. tertiary drain maintenance) may be carried out by communities themselves. Other O&M may be undertaken by private contractors. The Management Committees will ensure that necessary periodic maintenance is carried out by the responsible authorities and may 81 Annex IO Page 8 of 13 directly organize routine and emergency maintenance of tertiary infrastructure. The following table summarizes the O&M responsibilities as envisaged under the project: COMPONENT 0 & M WORKS 0 & M FUNDING Roads and Routine-Community itself or via Assemblies via Property Tax Footpaths small contractors. or Community Charge Periodic- Urban Roads Units direct or through contractors Drainage Routine -Community itself or Assemblies via Property Tax via small contractors. or Community Charge Periodic-Urban Roads Units direct or through contractors On-Plot Sanitation Individual Householder Individual Householder Community Toilets Community/Assembly via Direct User Charge Contractor or Franchisee Solid Waste Assemblies direct or via Assemblies via Property Tax Management Contractor or Community Charge Water Supply GWSC direct or via contractor Water Tariff Streetlighting ECG direct or via contractor Electricity (streetlighting) Tariff 32. Operation and maintenance costs are to be covered by the respective communities through user charges, property taxes and other contributions that might be raised from community efforts. For water supply and street lighting the responsible utility agencies (GWSC and ECG respectively) will be responsible for operating and maintaining the systems, after taking them over following the end of their defects liability periods, with funding from existing tariff revenues. It is envisaged that the community standpipes will be franchised to private operators or community groups which would be responsible for standpipe operation, sale of water, and payment of the GWSC water bill. Street lighting will be maintained by private contractors engaged by ECG as is now the norm. For roads and drainage, major periodic maintenance (i.e. resurfacing and major structural repairs) will be carried out by the urban roads units in the respective Assemblies. However, routine maintenance of roads and drains may be organized within the communities and carried out by community gangs or small contractors organized through the respective sub-metropolitan structures with budget channeled through the respective Assemblies. 33. Estimates of total operation and maintenance costs for the infrastructure to be upgraded have been made (Tables 1 to 5) based on a percentage of estimated capital costs. Order of magnitude annual funding requirements for routine maintenance for roads and drains has also been estimated (Tables 2,3, and 4), but precise estimates will be made by the respective Assemblies prior to annual budget setting. The respective Assemblies will agree to allocate such sums each year to the respective sub-metropolitan structures for routine maintenance of roads and drains for the beneficiary communities commencing in Year 3 of the project. Table 1: Community Infrastructure Upgrading Program Summary Data and Cost Table (Base costs at July 1995) Communities Area Popn. Density No. of DweHlings Avge H/H Avge H/H Cost/ha Cost/cap Total Capial Ann.O&M (Ha) pers/ha Dwellings per ha /dwelling Size (USS) (USS) Cost (USS) Cost (US$S) Sukua 52.50 22,700 432 631 12.02 6 6.00 22,918 53 1,203,177 48,019 Old Teshie 101.50 38,500 379 1068 10.52 6 6.01 14,988 40 1,521,300 60,498 West Mawnobi 88.00 34,200 389 814 9.25 7 6.00 18,083 47 1,591,344 64,731 Sub-Total 242.00 95,400 394 2513 10.38 17,834 45 4,315,821 173,248 Off-site drains max.lIt10 upgrading costs 431,582 Total 4,747,403 KUMASI 0 Aboabo 73.00 52,300 716 594 8.14 11 8.00 27,608 39 2,015,367 81,024 I Anloga 75.00 45,800 611 595 7.93 11 7.00 25,215 41 1,891,124 79,812 Sub-Total 148.00 98,100 663 1189 8.03 26,395 40 3,906,491 160,836 Off-site drins max.10% upgrading costs 390,649 Total 4,297,140 SEKONDI-AKORAD Effia Zongo 57.00 33,900 595 424 7.44 8 9.99 17,240 29 982,690 39,904 Kwesimintsim 80.50 37,200 462 600 7.45 10 6.20 17,497 38 1,408,515 58,009 Sub-Total 137.50 71,100 517 1024 7.45 17,391 34 2,391,205 97,913 Off-site drains max. 0l%/ upgrading costs 239,121 Total 2,630,326 Grand Total 527.50 264,600 502 4726 8.96 22,132 44 11,674,869 a' Table 2: Community Infrastructure Upgrading Program Local Infrastructure Cost Table for Accra (Base costs at July 1995) Communities Area Popn. Density Total Cost/ha Cost/cap Ann.O&M Ann.O&M Notes % of Total (Ha) pers/ba Cost (USS) (USS) (USS) %capital Cost(USS) Capital Cost Sukura * access 52.50 22,700 432 467,260 8,900 21 5 23,363 39 drains 52.50 22,700 432 303,325 5,778 13 5 15,166 25 *water supply 52.50 22,700 432 269,942 5,142 12 2 5,399 22 *streetlighting 52.50 22,700 432 78,900 1,503 3 2 1,578 7 *env.infra.fund 52.50 22,700 432 50,000 952 2 3 1,500 4 *solid waste 52.50 22,700 432 33,750 643 1 3 1,013 3 Sub-Total 52.50 22,700 432 1,203,177 22,918 53 48,019 100 Old Teshk * access 101.50 38,500 379 662,000 6,522 17 5 33,100 44 drains 101.50 38,500 379 250,800 2,471 7 5 12,540 16 x water supply 101.50 38,500 379 187,350 1,846 5 2 3,747 12 *streetighting 101.50 38,500 379 152,400 1,501 4 2 3,048 10 env.infrafund 101.50 38,500 379 100,000 985 3 3 3,000 7 *solid waste 101.50 38,500 379 168,750 1,663 4 3 5,063 11 Sub-Total 101.50 38,500 379 1,521,300 14,988 40 60,498 100 West Maamobi *access 88.00 34,200 389 857,200 9,741 25 5 42,860 54 *drains 88.00 34,200 389 189,350 2,152 6 5 9,468 12 water supply 88.00 34,200 389 261,744 2,974 8 2 5,235 16 *streetlighting 88.00 34,200 389 132,300 1,503 4 2 2,646 8 *env.infra.Fund 88.00 34,200 389 90,000 1,023 3 3 2,700 6 *solid waste 88.00 34,200 389 60,750 690 2 3 1,823 4 Sub-Total 88.00 34,200 389 1,591,344 18,083 47 64,731 100 TOTAL 242.00 95,400 394 4,315,821 17,834 45 173,247 . . . _ _ _ . _ .~~~~I Table 3: Community Infrastructure Upgrading Program Local Infrastructure Cost Table for Kumasi (Base costs at July 1995) Communities Area Popn. Density Total Cost/ha Cost/cap Ann.O&M Ann. O&M Notes % of Total (Ha) pers/ha Cost(USS) (USS) (USS) % capital Cost (USS) Capital Cost Aboabo *access 73.00 52,300 716 880,400 12,060 17 5 44,020 44 *drains 73.00 52,300 716 411,310 5,634 8 5 20,566 20 *water supply 73.00 52,300 716 308,457 4,225 6 2 6,169 15 *streetlighting 73.00 52,300 716 218,700 2,996 4 2 4,374 1 1 *env.infiafund 73.00 52,300 716 75,000 1,027 1 3 2,250 4 *solid waste 73.00 52,300 716 121,500 1,664 2 3 3,645 6 Sub-Total 73.00 52,300 716 2,015,367 27,608 39 81,024 100 X Aaga *access 75.00 45,800 611 740,450 9,873 16 5 37,023 39 *drains 75.00 45,800 611 591,440 7,886 13 5 29,572 31 *water supply 75.00 45,800 611 243,484 3,246 5 2 4,870 13 *streetlighting 75.00 45,800 611 112,500 1,500 2 2 2,250 6 *env.infra.fund 75.00 45,800 611 75,000 1,000 2 3 2,250 4 *solid waste 75.00 45,800 611 128,250 1,710 3 3 3,848 7 Sub-Total 75.00 45,800 611 1,891,124 25,215 41 79,812 100 TOTAL 148.00 98,100 663 3,906,491 26,395 40 160,835 0S Table 4: Community Infrastructure Upgrading Program Local Infrastructure Cost Table for Sekondi-Takoradi (Base costs at July 1995) Communities Area Popn. Density Total Cost/ha Cost/cap Ann.O&M Ann.O&M Notes % of Total (Ha) pers/ha Cost(USS) (USS) (USS) %capital Cost(USS) Capital Cost Effia Zongo *access 57.00 33,900 595 365,300 6,409 11 5 18,265 37 *drains 57.00 33,900 595 258,190 4,530 8 5 12,910 26 *water supply 57.00 33,900 595 119,200 2,091 4 2 2,384 12 *streetlighting 57.00 33,900 595 85,500 1,500 3 2 1,710 9 *env.infra.find 57.00 33,900 595 60,000 1,053 2 3 1,800 6 *solid waste 57.00 33,900 595 94,500 1,658 3 3 2,835 10 Sub-Total 57.00 33,900 595 982,690 17,240 29 39,904 100 Kwesimin *access 80.50 37,200 462 505,050 6,274 14 5 25,253 36 *drains 80.50 37,200 462 417,890 5,191 11 5 20,895 30 *water supply 80.50 37,200 462 149,975 1,863 4 2 3,000 11 *streetlighting 80.50 37,200 462 120,600 1,498 3 2 2,412 9 *fenv.infra.fiud 80.50 37,200 462 80,000 994 2 3 2,400 6 *solid waste 80.50 37,200 462 135,000 1,677 4 3 4,050 10 Sub-Total 80.50 37,200 462 1,408,515 17,497 38 58,009 100 TOTAL 137.50 71,100 517 2,391,205 17,391 34 97,912 -o Table 5: Community Infrastructure Upgrading Program Costs for Off-Site Drainage Trunk Infrastructure Communities Length Cost Total U/G Cost at 20% Cost at 10% (metres) (USS) Cost (USS) of upgrade (USS) of upgrade (USS) ACCRA Chemu Stream 3078 1,180,000 Mampon Stream 1401 370,000 Nima Stream 600 170,000 Sub-Total 5079 1,720,000 4,315,821 863,164 431,582 KUMASI Sisai River 8200 3,480,000 c Aboabo River 5000 950,000 cON Sub-Total 13200 4,430,000 3,906,491 781,298 390,649 SEKQND ITAKRAD KansawaraRv. 4180 2,250,000 Ayire/Mvale Rv. 2100 950,000 Sub-Total 6280 3,200,000 2,391,205 478,241 239,121 GRAND TOTAL 24559 9,350,000 10,613,517 2,122,703 1,061,352 o ox r Annrex1 1 87 Page I of 4 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Institutional Strengthening 1. The institutional strengthening component of UESP has two major objectives: a) To build durable technical and management capacity related to urban environmental sanitation at the central and local levels; and b) To ensure that the participating agencies have the resources needed to perform their implementation functions effectively. 2. Accordingly, assistance will be provided to the Ministry of Local Government and Rural Development (MLGRD), the Technical Services Centre (TSC) of the Ministry of Works and Housing, and the five Metropolitan and Municipal Assemblies (MAs) of Accra, Kumasi, Sekondi-Takoradi, Tema, and Tamale. 3. The institutional strengthening component will consist of the following five activities: SUPPORT TO MLGRD 4. MLGRD has established a Local Government Support Unit (LGSU) which is assisting Regional and District capital cities to improve urban services and finances. Under the UESP, LGSU will hire individual national consultants to bolster its capacity to provide technical and implementation support to the cities in environmental sanitation. The inputs to be financed are as follows: Item Quantity/unit cost Total Cost Capacity Building Coordinator 48 months @$2,500/month= $ 120,000 Environmental Sanitation Specialist 72 months @$2,500/month= 180,000 4 vehicles for travel to project sites 4 vehicles @$40,000 = 160,000 (2 LGSU; 2 Enviro. Health Div.) 4 computer packages 4 packages @$5,000 = 20,000 (2 LGSU; 2 Enviro. Health Div.) I photocopy machine 1 machine @$12,000 12,000 Materials 24,000 Operating costs 60,000 In-country travel and subsistence 30,000 Workshops and training for MAs 20,000 TOTAL 626,000 88 Annex I 1 Page 2 of 4 SUPPORT TO TSC 5. The Technical Services Centre of the Ministry of Works and Housing will be responsible, on behalf of MLGRD, for administration of procurement, accounting, monitoring, and contract management. TSC will also provide technical support and on- the-job training to the five MAs concerning these activities. MLGRD will provide the following inputs to TSC: Item Quantity/unit cost Total Cost 3 professional contract staff 72 months x 3 @2,500/month - $540,000 2 vehicles for travel to project sites 2 vehicles @$40,000 = 80,000 4 computer packages 4 packages @$5,000 20,000 l photocopy machine 12,000 Materials 33,000 Operating costs 110,000 In-country travel and subsistence 36,000 Workshops and training for MAs 20,000 TOTAL 851,000 PROJECT-WIDE CAPACITY BUILDING AND TRAINING 6. A project-wide capacity-building and training (PWCBT) program will be financed by the project. It will be overseen by MLGRD's Local Government Support Unit. There would be two sources of financing: the Nordic Development Fund and the Association of Netherlands Municipalities. The PWCBT will provide assistance to the five MAs and relevant central government agencies. Its work will be carried out by national consultants supported by a limited number of international specialists who would provide knowledge not available locally. This group will prepare an annual work program in response to the needs of the client institutions and the activities of the UESP. The work program would be approved by the clients. Each year the clients and the PWCBT group would review the effectiveness of its activities. 7. The CPT would cover two main areas, environmental sanitation and municipal finances. Examples of the types of assistance to be provided include (this is an illustrative list, not a complete one): * Drafting of local government by-laws for environmental sanitation. * Establishing and using performance monitoring systems for waste collection. * Developing and implementing cost accounting and management information systems. 89 Annex I I Page 3 of 4 * Compiling standard designs, specifications, and cost data on appropriate technologies for sanitation, waste collection, treatment facilities, and disposal systems. * Designing public enlightenment campaigns and preparing health education materials. * Updating and maintaining data bases on municipal revenue collection. * Privatizing revenue collection using the commission system. Nordic Development Fund 8. The inputs to be financed for project-wide capacity building and training by the Nordic Development Fund are as follows: Item Quantity/unit cost Total Cost International consultants 93 months @$20,000 = $1,860,000 National consultants 216 months @$2,500 = 540,000 National support staff 216 months @$300 = 65,000 2 vehicles 2 vehicles @$40,000 = 80,000 4 computer packages 4 packages @$5,000 = 20,000 1 photocopy machine 1 machine @$12,000 = 12,000 Other office equipment 25,000 Operating costs 180,000 Office rent 180,000 In-country travel and subsistence 40,000 Training activities 100,000 TOTAL BASE COST 3,102,000 Association of Netherlands Municipalities [ANM will finance training activities. A detailed proposal is being prepared] Base Cost: $ 545,000 CONTRACT STAFF FOR METRO AND MUNICIPAL ASSEMBLIES 9. Each of the five MAs is establishing a project team which will be responsible for day-to-day management of the city's sub-projects of the UESP. Each MA will hire three long-term contract staff to form the nucleus of its project team. Regular staff of the MAs will also be assigned to work on the project team. The Assemblies will provide offices and office furniture for the team. The inputs to be financed by the project are: 90 Annex I Page 4 of 4 Item Quantity/unit cost Total Cost 3 national contract staff for each city 72 months x 15 @$2,500 $2,700,000 1 vehicle for each staff 15 @$20,000 = 300,000 (simple car or double-cab pickup truck) I computer package for each staff 15 @$5,000 = 75,000 1 photocopy machine for each team 5 ($ 12,000 = 60,000 Other office equipment 5 @$2,000 per city = 10,000 Materials 5 @$15,000 per city= 75,000 Operating costs 5 @$25,000 per city = 125,000 TOTAL 3,345,000 INDIVIDUAL CITIES' CAPACITY-BUILDING 10. It is important for each Metropolitan or Municipal Assembly to implement its own individual capacity-building activities, apart from those undertaken by the project- wide CPT program (item 3 above). The project will finance a package of capacity- building resources which will be available to each city to use as it wishes, as long as the activities are relevant to UESP. With these resources, the MAs will be able to hire their own consultants (with terms of reference cleared by MLGRD) and finance training activities tailored to their specific needs. Each city will be required to submit an annual capacity building and training plan for approval by MLGRD. The inputs to be provided by the project are as follows: Item Quantity/unit cost Total Cost National consultants (waste management, 64 months @$2,500 x 5 = $800,000 sanitation, municipal finance) 2 vehicles (double-cab pickups or 10-person 10 @$20,000 = 200,000 vans) for each city 2 computer packages for each city 10 @$5,000 = 50,000 1 photocopy machine for each city 5 @$12,000 = 60,000 1 set of communications equipment for each 5 @$ 10,000 = 50,000 city Materials for each city 5 @$15,000= 75,000 Operating costs for each city 5 @$25,000 = 125,000 Training activities per city (not to duplicate 5 @$20,000 = 100,000 that provided through project-wide CPT-- item 3 above) TOTAL 1,460,000 91 Annex12 Page 1 of 5 REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT lalld Titlin BACKGROUND 1. Since its early involvement in the urban sector in Ghana, the World Bank recognized the problems associated with land delivery, land administration and the lack of cadastral and other maps. Consequently, the Bank-assisted Urban II Project includes a Land Administration Component whose objectives are to improve mapping, land titling, registration and conveyancing in the main urban areas and to develop cost effective methods of adjudicating land and issuing clear titles. 2. The Land Administration Component consists of: a) A Pilot Land Adjudication and Titling (PLAT) project, to support the implementation of the 1986 Land Title Registration Law. b) The production of 1:2500 scale photomaps for Accra and Kumasi (by KLM Aerocarto), which would be used for the PLAT project. c) Institutional support (vehicles and equipment) for the key land administration agencies. d) Studies and documentation. 3. The project is guided by a Land Administration Steering Committee composed of the heads of the participating agencies: the Survey Department, the Land Title Registry, and the Land Commission. The Steering Committee is supported by a Secretariat and directed by an internationally recruited advisor. 4. The World Bank-supported LGDP project recognized also that up-to-date base maps are an important component of the information base for urban planning and development. LGDP includes a mapping component which comprises aerial photography and digital mapping (by outside firms) of 11 towns, provision of an analytical stereoplotter, and technical assistance. 5. The Bank-supported Ghana Environmental Resources Management Project (GERMP) provided the Survey Department with a modest digital mapping capability and modernization of the photo laboratory. The digital mapping facility is employed to establish a digital Topographic Database in support of GERMP's geographic information systems. The PLAT Project took advantage of these facilities to carry out a "proof of 92 Annex 12 Page 2 of 5 concept" project to demonstrate the application of digital mapping technology for the production of Land Title (Registry) Maps and Plans. 6. Although the PLAT Project was slow in starting and the Advisor was not recruited until the end of September 1994, the Project is gaining momentum and is starting to bear fruit. Major bottlenecks in the process of land adjudication and titling have been identified, and steps are being taken to make the whole process more efficient and effective. To this end recommnendations were made by the Advisor regarding the merger of the Deed Registry with the Land Title Registry, introduction of a unique parcel identification number (PIN), and strengthening of confidence in the land title system. On the technology side, a "proof of concept" project demonstrating the use of computer technology for the compilation of Land Title (Registry) Maps and Plans has been successfully completed. The potential time savings are substantial. Registry Maps could be compiled within days instead of months, and once they are available in digital form, the Registry Plans could be prepared in less than one hour. 7. As a first step in introducing this technology to routine operations of the Survey Department, a Pilot Production of Digital Registry Maps and Plans will begin early in 1996. The Survey Department will provide the hardware and some software, and contingency funds from the Urban II Land Administration component will be used to engage a digital mapping expert for six months and to purchase additional software. The objectives of this Pilot Production are to work out production procedures and standards, train personnel, and enable the implementation of this technology in the day-to-day operations of the Survey Department when funds for modernization become available. 8. In order to foster the development of a technologically advanced private sector in Ghana, two Ghanaian survey firms will be engaged shortly to produce digital Land Title (Registry) Maps in the Accra and Kumasi areas using digital orthophoto maps as the base. These are small contracts (less than $50,000 each) involving the development of new procedures and methods. This new approach promises substantial savings in time and effort as compared with the traditional ways of surveying and preparing Registry Maps. 9. The sub-project to be funded under UESP is intended to build upon and carry forward the progress made to date. OBJECTIVES 10. The overall objectives of this sub-project are to continue the initiatives started under Urban II; to acquire a critical mass of data and experience in order to start an irreversible process of modernization; and to prepare for the design of a major Land Administration/Management Project which could be supported by the World Bank or other donor agencies. 93 Annex 12 Page 3 of 5 11. Specific objectives are: * To increase the efficiency and effectiveness of the Land Title Registry. * To modernize the Land Registry Section of the Survey Department. * To foster the establishment of a competent and technologically advanced private sector. * To assist the Lands Commission in collecting and preparing information about state and public lands in an efficient and effective manner. DESCRIPTION Modernization of Land Title Office 12. This component of the sub-project will provide the Land Title Office with modern filing shelves, computerized document tracking, and an efficient documents management system. This will reduce the time of processing Land Title applications and increase outputs. 13. An additional vehicle will provide the much needed transportation for field work in connection with explaining the Land Title process to the public. Cost: - Computer software and other equipment US$60,000 - Vehicle US$30,000 Modernization of the Land Registry Section of the Survey Department 14. Drawing on the experience of the "proof of concept" project and the Pilot Production of Digital Registry Maps, an improved production unit will be established. Additional PCs, workstations and a plotter will be purchased together with the required software. The aim is for the Survey Department to be in a position to utilize a number of different inputs such as digital orthophotos, scanned or vectorized maps, field survey data or lists of co-ordinates for the purpose of establishing a Digital Land Registry Database (Parcel Database) and to produce Registry Maps and Plans by automated means. 15. An expert in digital mapping will be engaged for a period of three months to manage this section in close liaison with a counterpart Ghanaian and to train staff in production, quality control and management of digital data. 16. Another important function of this component will be to provide quality control for work done on contract with private survey firms. In addition, this component would 94 Annex 12 Page 4 of 5 demonstrate the use of Digital Land Title (Registry) Maps in the works of the Land Valuation Board and the Town and Country Planning Department as well as provide technical support to the Land Title Registry. Cost: - Computers, plotter, and software US$100,000 - Expert in digital mapping (3 months) US$ 50,000 Fostering the Establishment of a Competent Private Sector 17. The demand for timely, up-to-date geospatial base information cannot be satisfied by the Survey Department alone and must involve a competent indigenous private sector. Many projects could be carried out more economically and rapidly by Ghanaian survey companies than by foreign enterprises. The preparation of survey documents and Registry maps required under the 1986 Land Title Registration Law is the best example of the need for a competent and technologically advanced private sector. 18. The proposed contracting out of the preparation of Land Title (Registry) Maps with Ghanaian survey firms is a step in the right direction, towards building a competent private sector. 19. The work will be carried out in the Accra-Tema and Kumasi areas of the PLAT project employing novel approaches which promise to substantially reduce costly and time consuming ground surveys. The digital orthophotomaps will be used as the base for identification, in the field, of property boundaries and for making measurements. Property corners will be surveyed relative to the features which appear on the photomaps such as buildings, fences, curbs, etc. The co-ordinates of these lot corners will then be determined on a computer screen employing digital mapping technology. 20. At this time there are two fair size Ghanaian survey companies capable of undertaking this type of work. Others are in the process of organizing themselves. 21. It is estimated that the $210,000 allocated for this item will pay for the preparation of Registry Maps covering some 10,000 average size properties. This will undoubtedly give a boost to the land titling process and will be the largest effort of this kind to-date. To put this effort in a proper perspective, however, it should be remembered that in Accra alone there are an estimated 500,000 lots and in Kumasi 80,000 lots. 22. Nevertheless, this gradual expansion of modem titling will be a major contribution to reducing the risks and problems associated with land transfer, will expand the amount of real property that can be used as collateral in bank credit, and should stimulate private sector investment. 23. Experience gained on this project will be most beneficial in formulating and carrying out a much larger project of Land Administration/Management in Ghana, 95 Annex 12 Page 5 of 5 hopefully to be finned with the assistance of the World Bank and/or other donor agency, and will prepare Ghanaian survey companies to meet this challenging opportunity. Cost: - Contracts with local survey companies for about 10,000 properties US$210,000 Assistance to the Lands Commission 24. The Lands Commission is one the important Government agencies involved in land management. It manages public lands or lands vested by law in the President, grants consent/concurrence for all allocations of Stool, Skin and family lands, and advises the Government and local authorities on policies for land use and development. 25. The Lands Commission will research, collect and prepare a layer of information on Government vested lands as well as on StoollSkin and family/clan lands within the PLAT Project area for demarcation by the Survey Department and inclusion in the Land Registry Maps to be prepared by the pilot project. This information will be assembled by contacting chiefs, and collecting data from Deeds Registry, the Land Title Registry, the High Court, the Courts of Appeal, and other sources. 26. To accomplish this, the Lands Commission would need the services of an experienced Licensed Surveyor and a vehicle for field operations. 27. The infonnation provided by the Lands Commission will facilitate issuance of Land Titles in areas adjacent to public lands and the settlement of disputes about Stool lands boundaries. Cost: - Licensed Surveyor (consultant) US$10,000 - Vehicle US$30,000 Land Administration and Information Systems Advisor 28. The services of a senior expert to assist in coordinating, documenting, and providing technical advice will be required. Cost: - Senior Adviser US$60,000 96 Amex 13 Page 1 of I REPUBLIC OF GHANA URBAN ENVIRONMENTAL SANITATION PROJECT Procurement Schedule 1996-97 - Key Contracts Activity Date First General Procurement Notice April 1996 Accra Drainage - Odaw Primary Drain - Tender documents ready March 31, 1997 - Bid evaluation report to IDA September 30, 1997 - Contract signed January 15, 1998 Kumasi Drainage - Tender documents ready December 31, 1996 - Bid evaluation report to IDA June 30, 1997 -Contract signed October 31, 1997 Solid Waste Disposal Facilities (3 packages) - Tender documents ready March 31, 1997 - Bid evaluation report(s) to IDA September 30, 1997 - Contract(s) signed January 15, 1998 Vehicles for Institutional Strengthening - Tender documents ready May 15, 1996 - Bid evaluation report to IDA September 15, 1996 - Contract signed November 30, 1996 Community Infrastructure Upgrading (7 packages) - Tender documents ready August 31, 1996 - Bid evaluation report(s) to IDA December 31, 1996 - Contract(s) signed February 28, 1997 MAP SECTION IBRD 27584 3-~~~~~~~~~~~~~- Ien Ie - I) Boo9o Un R K IN V SO ' M BENIN - Bo an D ' TOGO NT IN GEKumosi PARTICIPATING CITIES YtAdo PRIMARY ROADS nJChakgtk --- _ SECONDARY ROADS _t 5| ironloq H 0, $ 9 0 )i i - RIVERS 10 -s---RAILROADS S. A NATIONAL CAPITAL \ > aTunq / < T.j. (D % rS REGIONAL HEADQUARTERS omale Y N DISTRICT AND SUB-DISTRICT X.rkp. Snsb IHEADQUARTERS Lon t nisga N RT. RN / nRECU71GOI' s, .Znh0igu 0 OTHER SELECTED TOWNS REGION BOUNDARIES 9 V \uh N-kpoI INTERNATIONAL ."P. \, aSefIpe / t pon woN ok l 'm j\ BOUNDARIES 9 >51 ~~~~~~~The boundaries, colors, DCI V OTI R E W ( ~ X 8) iQ|J9al -iki a IWor,bu deenominal,ons and any D IVOIRE Jo, '~~~~~~~~~~~~~~~irnS ther information shown on this mop do noi One i~~~~~~mpty, on the Port of -' Nkoonnn a The WorId Bank Group, ~~i nis9o- yen p a~~ny uvdgment on the leqal ' stotus of any terr"tory, K ~~~~~~or ony endorsement ' |3' 3' ni or acceptance of such j K0luotomesa T m t 1sW ~^;_> _ jboundarres 8 -Z IS 7v,Eluro t Xi 79 TOGO BENIN -7- ~~~~~~~~SH T RE G. I Ookokre 7- I Ef d-.s Ag.9 T5 R t"' q> Ale nh K Nk-nto in os GI Dmn. pi K \R'I , n I - Akon AKrn 9un 'hb.w A -6 A E . . n 1AeyuDAO 6' ;G n~A *tNt none Itosa t URBAN ENVIRONMENTAL 5oJ*wiwliF i>'gthrarcii PARTICIPATING CITIES Isoee' idoa 0 20 40 60 80 KILOMETERS Gulf of Guinea 3° 2° 10 0° 1' DECEMBER 995 IMAGING Report No: 15089 GH Type: SAR