Document of The World Bank FOR OFFICIAL USE ONLY Report No: 19762 IMPLEMENTATION COMPLETION REPORT FEDERAL REPUBLIC OF NIGERIA LAGOS DRAINAGE AND SANITATION PROJECT (Credit 2517-UNI) October 7, 1999 Water and Urban 2 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Naira (N) US$1 = 4.56 (1988) 7.38 (1989) 8.06 (1990) 10.46 (1991) 17.26 (1992) 23.46 (1993) 21.94 (1994) 71.75 (1995) 81.49 (1996) 82.20 (1997) 90.00 (1998) 100.00 (1999) Fiscal year JANUARY TO DECEMBER MEASURES AND EQUIVALENTS 1 kilometer (km) 0.62 miles I meter (m) 3.28 feet 25.4 millimeters (mm) = 1 inch 1 cubic meter (m) = 264 US gallons 1000 liters 3.8 liters (1) = 1 US gallon 4.5 liters (1) 1 Imperial gallon ABBREVIATIONS AND ACCRONYMS CDA Community Development Association EIA Environmental Impact Assessment FMC Financial Management Consultant JICA Japan International Cooperation Agency LASEPA Lagos State Environmental Protection Agency LASG Lagos State Government LAWMA Lagos Waste Management Authority LRIS Land Related Information System LSVO Lagos State Valuation Office MEPP Ministry of Environment & Physical Planning MIS Management Information System PIU Project Implementation Unit SAR Staff Appraisal Report SPO Standing Payment Order URB Urban Renewal Board WTP Willingness to pay Vice President: Jean-Louis Sarbib Country Director: Yaw Ansu Sector Manager: Letitia A. Obeng Team Leader: David Henley FOR OFFICIAL USE ONLY IMPLEMENTATION COMPLETION REPORT FEDERAL REPUBLIC OF NIGERIA LAGOS DRAINAGE AND SANITATION PROJECT (CR 2517-UNI) Table of Contents Preface i Evaluation Summary i PART 1: PROJECT IMPLEMENTATION ASSESSMENT 1 A. BACKGROUND 1 B. STATEMENT/EVALUATION OF PROJECT OBJECTIVES 1 C. ACHIEVEMENT OF PROJECT OBJECTIVES 3 D. MAJOR FACTORS AFFECTING THE PROJECT 5 E. PROJECT SUSTAINABILITY 6 F. BANK PERFORMANCE 7 G. BORROWER PERFORMANCE 7 H. ASSESSMENT OF PROJECT OUTCOME 7 I. FUTURE OPERATION 8 J. KEY LESSONS LEARNED 8 PART II. STATISTICAL TABLES Table 1: Summary of Assessments Table 2: Related Bank Loans/Credits Table 3: Project Timetable Table 4: Credit Disbursements: Cumulative Estimated and Actual Table 5: Studies Included in Project Table 6A: Project Costs Table 6B: Project Financing Table 7: Economic Costs and Benefits Table 8: Status of Legal Covenants Table 9: Bank Resources: Staff Inputs Table 10: Bank Resources: Missions Table 11: Targeted and Achieved Outputs Table 12: Status of Physical Works Appendixes: A. Mission's aide-memoire B. Borrower's contribution to the ICR C. Map This document has a restricted distribution and may be used by recipients only in the perfiormance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. IMPLEMENTATION COMPLETION REPORT FEDERAL REPUBLIC OF NIGERIA LAGOS DRAINAGE AND SANITATION PROJECT (CR 2517-UNI) Preface This is the Implementation Completion Report (ICR) for the Lagos Drainage and Sanitation Project in Nigeria, for which Credit 2517-UNI was approved on June 17, 1993 in the amount of SDR 44.5 million (US$63.0 million equivalent) and made effective on April 21, 1994. The Credit was closed on March 31,1999, nine months after the closing date originally specified in the Development Credit Agreement. It was fully disbursed, with final disbursement taking place on September 16, 1999. The ICR was prepared by Jonadab Metibaiye (Consultant, AFMNG) and Oluwole Komolafe (Local Consultant) and reviewed by Eleanor Warner (Financial Analyst, AFTU2) and David Henley (Task Team Leader, AFTU2). A country team review meeting took place on September 15, 1999 chaired by Mr. Yaw Ansu, Country Director for Nigeria. The Borrower contributed to the preparation of the ICR by commenting on the Bank's draft and preparing an evaluation which is in Appendix B. Preparation of this ICR began with a mission in January 1999 and is based on information in the project files and discussions with the Borrower and stakeholders. The ICR also incorporates results of an evaluation carried out during the final supervision mission in September 1998 as well as the evaluation reports prepared by the Borrower for the project completion workshop' held in March 1998. IMPLEMENTATION COMPLETION REPORT FEDERAL REPUBLIC OF NIGERIA LAGOS DRAINAGE AND SANITATION PROJECT (CR 2517-UNI) Evaluation Summary Background i. The entire Lagos metropolis is subject to periodic flooding and therefore needs dependable storm drainage. This is especially so because in many areas storm drainage systems are also the only means of sanitary drainage. The Lagos Drainage and Sanitation Project (Cr. 2517-UNI) is a follow-up of the previous project, Lagos Solid. Waste and Storm Drainage Project Ln. 2620-UNI, which addressed two of the most urgent urban development problems besetting the Lagos metropolis besides resource mobilization. These were: (a) accumulation of solid waste in streets and unauthorized refuse dumps, creating major health hazards and causing traffic congestion; and (b) severe flooding that paralyzed parts of the city during the rainy season. Preparation of designs for Cr 2517 was also financed under the first project. The project under review was appraised in May 1993 and approved in June 1993, and the credit became effective in April 1994. Project Objectives ii. The major objectives of the project were to: (i) improve the long-term ability of the Lagos metropolis to sustain and improve its functioning as an economic center; (ii) improve the living conditions in parts of Lagos subject to periodic flooding by improving storm water drainage in accordance with long-term improvement and development plans; and (iii) support initial steps in upgrading other urban services by preparing plans, feasibility studies and designs for urban upgrading and improved human waste and waste water disposal, and continued support to Lagos Waste Management Authority (LAWMA) in organization and system development. iii. Evaluation of Objectives: The project's objectives were clear and consistent with the underlying goal to incrementally improve the management of storm drainage and sanitation in Lagos, and the components were adequate to realize the project's objectives. Implementation Experience and Results iv. Overall, the project substantially achieved most of its objectives by considerably reducing the severity, frequency and duration of flooding in the areas targeted by the project. Under the drainage component, 52.8 km of concrete lined drains and 10.8 km of earth channels were constructed, while 41.63 km of primary channels and 115 km of both secondary and tertiary drains were cleared and repaired under the maintenance program. The impact of drain cleaning was jeopardized by the failure of local govemnment to clean tertiary drains, which subsequently caused deposits to form in secondary and primary drains. The limited resettlement required to permit construction of the drains was satisfactorily completed. v. Willingness-to-pay studies for sanitation and other urban services were carried out; also feasibility studies and detailed design for sewerage and sanitation works for the priority areas of Victoria Island, Lagos Island/Ikoyi, Apapa, and Ikeja were completed. An industrial database and map which provided baseline data for industrial effluent, receiving water bodies and gaseous emissions were produced, and industrial effluent standards and guidelines were established. Equipment, vehicles and laboratory -ii- facilities were procured to facilitate pollution control and continuous monitoring of industrial discharges within the Lagos metropolis. vi. A program was prepared for urban upgrading in the most blighted areas of Lagos and a demonstration project was satisfactorily completed. There was appreciable improvement in the living standard of the people living in the Badia-Olojowon area with access, drainage, water supply, electricity, and sanitation and health facilities becoming more readily available in the community. vii. An administrative procedure for assessment, enumeration and evaluation of ratable properties throughout the metropolis was introduced, and valuation records of three local government areas: were computerized to facilitate revenue collection. viii. Digital orthophoto maps covering the entire Lagos metropolis, a Land Related Information System (LRIS) for a pilot area of 40 sq. km, satellite imageries covering the entire state and topographic information at 0.5m interval, which can be superimposed on the orthophoto map, were produced under the project. ix. Equipment and vehicles owned by LAWMA were refurbished in order to improve refuse collection, and disposal and site equipment was procured to facilitate landfill operations. A transfer loading station was constructed and equipment procured to facilitate operation of the station. To ensure sustainability of activities, LAWMA entered into a maintenance contract for regular maintenance of its equipment and vehicles. A Performance and Financial Management Information System was installed to assist LAWMA improve its operational performance. Regular changes by the government in solid waste management had a serious impact on LAWMA and this component. x. The re-evaluated economic rate of return is 21%, slightly lower than the ex-ante return of 22%. xi. The Credit, which was originally scheduled to close on June 30, 1998, was extended by nine months to March 31, 1999 to allow completion of on-going physical works under a few contracts which suffered delays as a result of the inability of the contractor to take possession of the site or poor contractor performance. The extension also allowed the completion of studies and design of the drainage system of the extended Greater Lagos area. xii. The performance of the Borrower, consultants and the Bank were satisfactory throughout project implementation, and relations between them were cordial and constructive. xiii. There was a request for inspection of the project based on allegations that (i) the project resulted in forced eviction of about 2,000 persons and threats of eviction of thousands of others in the Ijora Oloye and Ijora Badia areas; (ii) the Bank did harm to the affected people by its failure to follow its own policies and procedures applicable to the project. These allegations were examined by IDA Marnagement and were refuted. Subsequently, a representative of the Inspection Panel of the Bank determined in November 1998 that the thrust of the accusations was exaggerated and, in some cases, untrue. As a result of this inspection, small compensation (about $2,000 in total) was paid to 17 ex-householders who had not been identified as requiring compensation at the time the resettlement plan was prepared. Assessment of Project's Success and Sustainability xiv. The project objectives were largely achieved and most ofthe components were successfully carried out. Sustainability of the project is rated uncertain and dependent on continued availability of finance for municipal services. A separate drainage maintenance account was established in which funds were released through budgetary allocation, albeit intermittently. If maintained, this mechanism will ensure that funds required for maintenance will become available after project closure. Also, the direct labor -iii- organization set up in the Ministry of Environment and Physical Planning (MEPP) will continue to carry out maintenance of tertiary and some secondary channels. Private sector contractors, engaged during project implementation for maintenance of large secondary and primary channels, have an interest in continuing their activities and will continue to be used after project closure. For the solid waste component, LAWMA has entered into a maintenance agreement with private sector contractors for regular maintenance of its plant and vehicles, which will help ensure collection vehicles and other plant remain in service. xv. Staff training was specifically directed towardsidentified needs of individuals participating in the program, and involved formal training and work attachments in similar organizations. It helped to ensure an adequate capacity to manage and maintain project investments. A Land Information System Support Unit (LISSU) was set up to manage and maintain the Land Information System. Similarly, a Community Development Association (CDA) was set up at the inception of the urban upgrading program to manage and maintain public facilities. The community health center and primary school have been handed over to, and are being managed by, the Local Government and State Primary Education Board, respectively. Summary of Findings, Future Operations, and Key Lessons Learned The principal lessons learned are: xvi. Project ownership: Project selection, preparation and design must involve beneficiaries from the beginning, as was done in this project, to avoid problems associated with project ownership. Implementation proceeds more smoothly when the project unit feels full ownership of the project. Ownership and project success are enhanced, if the full range of the Borrower's concerns can be addressed under the project. xvii. Financial Management Consultant (FMC): The use of a FMC, who had primary responsibility for finance-management (payment ledgers, commitments disbursements and monitoring of project accounts), is a creative innovation that has worked well in comparison to the Bank's former approach in Nigeria of using independent banks for this function. However, although the FMC prepared the financial reports, there was no transfer of skills from the FMC to any member of the PCU. This was of particular importance as the Project Accountant, who was seconded from LASG, did not have the requisite professional support in terms of staffing to take care of these additional responsibilities. xviii. Counterpart Fund Contribution: The usual delays experienced in obtaining the required counterpart funds were avoided by using Standing Payment Order (SPO) (direct deductions from the regular Federal contribution to state finance) which proved particularly effective. This method of resource mobilization has been generally accepted in all World Bank-financed projects in Nigeria. xix. Establishment of a Maintenance Account: The lack of maintenance culture in the country has not, until now, been made a priority in concrete terms. The project ensured that a maintenance account was established into which funds are released by LASG for regular maintenance of the various drains constructed. The release of funds into the account was through budgetary allocations. In some instances, what was budgeted was not released at the time the funds were needed. More attention should be paid to this account so as to assist in achieving sustainability of drainage works. The budgeted amount should be released voluntarily and on time to the drainage department as a sign of financial discipline by the LASG and to show the importance attached to maintenance of government assets. xx. Project Supervision: Qualified staff from implementing agencies were involved in the supervision of works along with the private sector consultant engaged for construction supervision. Cases of conflicting site instructions to contractors were recorded which gave the contractor an excuse to ignore legitimate instructions. Though the capacity of the PIU to supervise and manage works of this nature and -iv- scope have been greatly enhanced, the role and responsibilities of supervision consultants compared to the PIU must be clearly defined in order to avoid conflicts. xxi. An Environmental Impact Assessment (EIA) was carried out during project preparation and a detailed resettlement plan was prepared prior to implementation of works, as agreed during negotiations of the project. Programs were developed for resettlement of affected people and properties. However, there were unsubstantiated complaints (para xiii above) of forcible eviction in some sections of the drainage works. In future Bank-assisted projects and especially in heavily built up areas, apart from a resettlement plan, there should be inspection of sites and a very detailed recording of conditions prior to commencement of implementation. There is always a lag time between project approval and implementation, when uncontrolled developments can take place. xxii. Implementation of drainage maintenance under contract using schedules of rates proved effective and economical. However, additional work is needed to increase flexibility of contract documents utilized under this project. Further, though different levels of government may be responsible, it is important in drainage maintenance to ensure that the cleaning program includes all levels of drainage (primary through tertiary) because of their impact on each other (litter deposited in tertiary drains ends up blocking primaries), since an effective program of community enlightment is important. xxiii. The concept of implementing a pilot proj ect to demonstrate the benefits of urban upgrading appears to be particularly effective. The pilot implemented under this project has generated spontaneous development at the site, and considerable interest in replication among potential financiers. Even though it was planned and implemented with full community participation, it also demonstrated that in expanding the program, additional attention needs to be given to the logistics of community management of facilities. xxiv. Clear identification of training needs and tailoring of training programs to individual needs lead to effective capacity building. xxv. Prior to carrying out the willingness-to-pay study, there was a general belief among the government officials and beneficiaries that provision of water and sanitation is a social service, and therefore, people would be unwilling to pay for these services. However, a study conducted under the project to assess the willingness-to-pay for drainage, water and sanitation services clearly indicated that people are willing to pay to cover a modest service level, which suggests that it is possible to make provision of sanitation services financially viable and sustainable, as long as these services are reliable and in line with people's expectations. IMPLEMENTATION COMPLETION REPORT FEDERAL REPUBLIC OF NIGERIA LAGOS DRAINAGE AND SANITATION PROJECT (CR 2517-UNI) PART 1: PROJECT IMPLEMENTATION ASSESSMENT A. BACKGROUND 1. The entire Lagos metropolis is subject to periodic flooding and therefore needs dependable storm drainage. This is especially so because in many areas storm drainage systems are also the only means of sanitary drainage. In September 1985, the Lagos Solid Waste and Storm Drainage project (Ln. 2620) was approved to finance the highest priority drainage works for some areas of Lagos Mainland in accordance with a master plan prepared in 1974. An autonomous authority, Lagos Waste Management Authority (LAWMA) was established under Loan 2620 and a system introduced for revenue generation, including revaluation of properties and establishment of new valuation lists. The Lagos Drainage and Sanitation Project (Cr. 2517) was a follow-up of the previous project intended to continue addressing urgent drainage and sanitation problems besetting the Lagos metropolis, including accumulation of solid waste in streets, unauthorized refuse dumps creating major health hazards and causing traffic congestion, and severe flooding that paralyzed parts of the city during the rainy season. The project was appraised in May 1993, approved in June 1993 and became effective in April 1994. B. STATEMENT/EVALUATION OF PROJECT OBJECTIVES Statement of Project Objectives 2. The objectives of the project, as stated in the Staff Appraisal Report (SAR), were to: (a) improve the long-term ability of the Lagos metropolis to improve and sustain its functioning as an economic center; (b) improve living conditions in parts of Lagos which suffer from regular inundation by improving stormwater drainage in accordance with long term plans and as a follow up to a previous project; and (c) support initial steps in upgrading other urban services by preparing plans, feasibility studies and designs for urban upgrading and improved human waste and waste water disposal, and continued support to LAWMA in organization and system development. Statement of Project Components 3. The project comprised two parts: Part A. Physical Works (i) rehabilitating (re-dredging and lining) the main Surulere Channel (System 5). Dredging of the channel accepting flows from a large part of South-West and Central Lagos mainland, including drains constructed under the previous project. The works included dredging, lining of channels and construction of an access road on one side of the channel for future maintenance. This required a major culvert across Western Avenue Expressway to remove an existing constriction: (ii) primary and secondary lined drainage channels, covered box conduits and culverts in three areas (Oshodi/Apapa ]Expressway, City Way, Lagos University Teaching Hospital) of central mainland Lagos to relieve regular flooding. These works were to augment drainage improvements -2- carried out under the previous project, and replace an existing culvert crossing on the Oshodi/Apapa expressway to remove an existing constriction; (iii) upgrading and augmenting the highest priority existing drains for Lagos Island; (iv) upgrading, realigning and lining of highest priority outfall drains in Apapa, the port and industrial area of Lagos; (v) implementing a regular drainage maintenance program, by contract, and the establishment of a separate drainage maintenance account to ensure timely availability of funds for the program; and (vi) constructing a transfer station and providing a bulk carriers and additional spare parts for LAWMA. Part B. Technical Assistance (i) carrying out a willingness-to-pay study and development of a sanitation strategy, and preparation of plans, feasibility studies and designs for future developments in sanitation, including conventional sewerage where appropriate and supply of laboratory equipment for pollution monitoring; (ii) assisting the newly created Urban Renewal Board (URB) to review its charter and plan its development strategy, to prepare an urban renewal project and undertake a demonstration project; (iii) developing revenue billing and collecting systemns; (iv) developing a mapping ability and Land Information System (LIS) for Lagos; (v) assisting LAWMA with its commercial development, to expand its management information system, and engineering studies for future waste disposal sites; (vi) supervising construction, implementing the regular drainage maintenance program and preparing designs for future investment projects; and (vii) training and work attachments for staff in each of the above fields. Risks 4. The major risks identified in the SAR were: (a) counterpart funds not becoming available as required; (b) necessary funding for drain maintenance not continuing beyond the life of the project; and (c) sewerage/sanitation studies and urban upgrading not leading to sustainable investments. The first of these risks was adequately addressed by requiring deduction of counterpart funds from the Federation account. The second was addressed by establishing a maintenance account into which budgetary funds were regularly released and private sector involvement. While a mechanism was set in place, and the interest of the private sector was generated, whether it will continue after project completion is uncertain. Sewerage studies remain unimplemented. However, the new Lagos administration has requested that they be taken up in conjunction with privatization of Lagos water supply. Finally, the urban upgrading demonstration pilot has generated considerable spontaneous development on the site, and interest in replication among financiers. Evaluation of Project Objectives 5. The project's objectives were clear and consistent with the underlying goal to incrementally improve management of storm drainage and sanitation in Lagos, and the components were adequate to realize the project's objectives. -3- C. ACHIEVEMENT OF PROJECT OBJECTIVES 6. The physical objectives were substantially met. Table 12 shows the status of the physical works at Credit closing, including comparative data on original versus actual quantities completed, original versus actual duration, and original contract versus actual costs. A total of 52.8 km of concrete lined drains and 10.8 km of earth channel were constructed. The project financed the maintenance of 41.6 km of primary channels and 115 km of both secondary and tertiary drains. 7. The objective of improving the living conditions in parts of Lagos which previously suffered regular inundation was substantially achieved. Improving storm water drainage has considerably reduced the severity, frequency and duration of flooding in the areas of Lagos targeted by the project. 8. Prior to appraisal, an Environmental Impact Assessment (EIA) was carried out for the stormwater drainage system. Properties within the right-of-way of the channels were identified and a resettlement plan prepared. On the Apapa Priority I Works, the EIA studies identified the need to remove squatter settlements located along the channel alignment within Arakan Barracks. A resettlement program was developed which culminated in the construction of 46 one-bedroom apartments, 294 lock-up shops and an abattoir funded by the State Government for the inhabitants of this area. 9. There was a request for inspection of the project based on allegations that (i) the project resulted in forced eviction of about 2,000 persons and threats of eviction of thousands of others in the Ijora Oloye and Ijora Badia areas; (ii) the Bank did harm to the affected people by its failure to follow its own policies and procedures applicable to the project. These allegations were examined by IDA Management and were refuted. Subsequently, a representative of the Inspection Panel of the Bank determined in November 1998 that the thrust of the accusations was exaggerated and, in some cases, untrue. As a result of this inspection, small compensation (about $2,000 in total) was paid to 17 ex-householders who had not been identified as requiring compensation at the tiime the resettlement plan was prepared. 10. The Credit was extended once from its original closing date of June 30, 1998 to March 31, 1999, mainly to allow ongoing physical works to be completed, especially on the Oshodi/Isolo drainage channel, and Surulere System 5 Phases I and II. Some of the works suffered construction delays, as discussed in Section D. 11. Institutional Objectives: The objective to upgrade urban services by preparing plans, feasibility studies and designs for urban upgrading and improved human waste and waste water disposal, and also to strengthen capacity within the LAWMA, was substantially achieved. 12. Sewerage and Sanitation. Willingness-to-pay, feasibility studies and detailed design for sewerage and sanitation works were carried out for four priority areas, namely, Victoria Island, Ikoyi and Lagos Island, Apapa, and Ikeja and environs. The studies examined several alternatives to resolving sewerage and sanitation problems in the four priority areas, based on alternative development and planning options, site locations, and technologies for waste water treatment. Two workshops were held primarily to obtain the agreement of the stakeholders for selected options in the four priority areas. 13. Environmental Pollution Control/Sanitation. An industrial database and map which provided baseline data for industrial effluent, receiving water bodies and gaseous emissions were produced, and industrial effluent standards and guidelines established. This was aimed at improving the quality of water bodies in Lagos State. The industrial database and map will assist the Lagos State Environmental Protection Agency (LASEPA) in establishing an effective monitoring program for industrial effluent, and analytical assessment of the quality of the environment. Additionally, equipment, vehicles and laboratory facilities were procured to facilitate effective pollution control and continuous monitoring of industrial discharges. 14. Solid Waste Management. A study for restructuring LAWMA was completed early in the project and some recommendations were implemented. Assistance to LAWMA for its commercial development was -4- achieved through rehabilitation of equipment and vehicles and procurement of equipment for operation of the landfill site. To improve the haulage period of solid waste from southem Lagos, the site of the defunct incinerating plant at Simpson Street was converted to a transfer loading station and appropriate equipment procured to facilitate its operation. A performance and financial Management Information System was installed for the establishment of a database to evaluate the operational perfommance of LAWIVIA's vehicles and equipment; monitor cost of operation and provide LAWMA with direct costs for detemiining annual budget requirements based on actual costs; monitor and verify operational targets for major services ; and provide LAWMA with the financial tools required to assist in management decision-making. However, due to several changes by governmuent in the management of solid waste in the city, LAWMA remLained starved of funds. 15. Land Related Information System: The development of a mapping ability and Land Related Information System (LRIS) is rated as satisfactory with the following achievements: (a) digital orthophoto mapping at a scale of 1:2000, covering the entire metropolitan Lagos (500 sq.m.); (b) topographic information at 0.5m, interval which can be superimposed on the orthophoto map ; (c) geometrically correct satellite image mapping covering the entire Lagos State are at a scale of 1:25,000; and (d) Land Related Information System for a pilot area of 40sq.km (Ikej a area). 16. A user requirement study was conducted and the following four major applications of LRIS developed: ground demand notices generation; neighborhood improvement charges; land registration, including searches and other information; and land information certificates. These applications helped to ensure optimization of the system and enhance the revenue base of the Lands and Housing office. 17. Urban Upgrading: The objective to support an initial step in upgrading urban services was achieved. A four-year community infrastructure upgrading program for 800 hectares of blighted urban area within metropolitan Lagos was developed. Affordable community slandards for infrastructure were also developed. These standards were used to prepare preliminary and subsequently detailed engineering for a demonstration project covering about 25 hectares to test the ideas developed for the four-year program. The demonstration project, sited at Badia-Olojowon, the most highlighted area, involved providing and upgrading/rehabilitating basic infrastructure namely: roads, drains, water supply, sanitation, solid waste, street lighting, communication and social infrastructure (health center and primary school), and was developed under demand driven approach. It has been particularly effective in showing how the living condition of the poor can be improved, and has resulted in a spontaneous development of the area and upgrading of individual dwellings. 18. The edict setting up the Lagos State Urban Renewal Board (URB) was reviewed and modified to improve on URB's legal strength in the areas of revenue generation, reduction of land ownership claims and its capability to utilize funds for urban renewal projects. URB's organizational chart which in the past did not clearly define the responsibilities and accountabilities of the various units was reviewed and re-focussed on unit responsibilities. Specific units for revenue management, institutional development, research and training, project management and monitoring were created as an additional focus of the operations. 19. Recommendations were made on the need to strengthen the Engineering and Architectural units of URB to enable them to undertake project management and monitoring activities. Training prograrns to improve the competence of URB's professional staff were identified. 20. Training: The objective to build capacity through various training programs and work attachments was substantially achieved. A total of 104 officers benefited from training, both locally and outside Nigeria, in areas where they could demonstrate a need for added competence. While 12 people profited from long- term courses, ranging between 12 and 24 months, 36 attended short-term courses of between I to 6 months duration. Thirty-eight people went on work attachment programs and study tours. In-house training was organized for secretaries and level officers on computer skills. Also, six officers received on-the-job training sewerage systems management. A training impact assessment study revealed that officers' skills were improved, and in some cases, the officers acquired new skills. However, the study indicated that lack of -5- necessary equipment, materials, and funding to some extent impaired sustained on-the-job application of the improved or new skills. 21. The financial objective to sustain the Lagos metropolis as an economic center as well as to improve the living conditions of its populace was substantially achieved. The completion of the project resulted in higher property values in the areas that were once affected by flooding. Capacity strengthening of the Lagos State Valuation Office (LSVO) allowed a reliable determination of the potential revenue base from the properties in the state. An administrative procedure for assessment, enumeration and evaluation of ratable properties throughout the metropolis was introduced, which made it possible for the State to have a valuation list of all ratable properties. Tenement rate collection increased sevenfold following completion of works. 22. Economic Objectives: Actual project cost (in US $) was used for estimating IRR as was done at appraisal. Estimated benefits are based on estimates at appraisal, adjusted for Naira devaluation. The economic revaluation of the project gives Internal Rate of Retum of 21%, which is 1 percentage point below the 22% IRR that was projected for the project, when actual costs streams were substituted for the estimates. Certain other benefits relating to health, commercial and industrial development derivable from the project, which cannot be easily and accurately quantified could not be included in the re-evaluation. The IRR lies within an acceptable range, thereby making the project worthwhile. D. MAJOR FACTORS AFFECTING THE PROJECT 23. Factors Not Subject to Government Control: Performance of contractors: The main factor exogenous to the project that affected implementation was the poor performance of the contractor on Surulere System 5 Phase I. Considerable delays were experienced due to cash flow problems. The contractor refused to follow site instructions, which resulted in errors having to be corrected. Unacceptable construction methods used by the contractor led to poor workmanship and consequently, the rejection of sections of the works. Inclement weather also served to delay these works. As a result, the contractor could embark on works for the construction of the major culvert crossing Western Avenue expressway. Disbursements against this contract were suspended due to poor quality and slow pace of work. The suspension was lifted six months later when the situation improved. 24. The Surulere System 5 Phase II initially faced similar delays due to the contractor's poor workmanship. However, the works witnessed improved workmanship as it progressed. Due to the difficult terrain and, to some extent, the contractor's poor site and financial management, the works planned to be completed within 24 months extended to 44 months. 25. Withdrawal of the Japan International Cooperation Agency (JICA). Another factor which affected the timely completion of the project was the withdrawal of the JICA which had expressed interest in co- financing (US$2million equivalent) of the Technical Assistance component of the project. JICA's withdrawal created an initial funding gap, which had to be absorbed by the LASG. 26. Macroeconomic Problems. Due to steady devaluation of the Naira, there was a corresponding increase in the price of materials. The Naira plummeted fronN 22 to the US$ in 1993 to N 92 by the close of the project. The depreciation of the Naira required LASG to increase the level of its monthly contribution of counterpart funds, perhaps to the detriment of being able to finance maintenance adequately. 27. Factors Subject to Government Control: Delay in Meeting Conditions for Effectiveness. The effectiveness conditions included provision of legal opinion on the Development Credit Agreement (DCA), Project Agreement (PA) and the Sub-Loan Agreement (SLA), and establishment of the mechanism for payment of counterpart contributions by SPO. There was a delay of about five months. 28. Conflict in Roles and Responsibilities: There was a lack of communication between the consultant hired by the client and the project engineer which led to conflicting instructions to contractors and -6- consequently, delays in implementation. Various missions attempted to ameliorate this situation by stressing the need for all parties to work together. 29. Delay in Relocation of Services. In many cases, facilities such as electricity and telephone cables, water supply mains, electricity transformers and railway lines are located on the right way of the drainage channel. These facilities required relocation in order to make way for the channels. In other cases, there was a need to build culverts across federal highways. These cases involved various government agencies approving the relocation of such facilities, or in the case of highways, cutting of the roads. There were considerable delays in reaching agreement among the concemed agencies. As a result, some of the physical works suffered considerable delays because of the contractor's inability to take possession of the sites. For instance, the Oshodi/Isolo drainage channel, whose construction period had been put at 24 months, extended up to 40 months because the Federal Ministry of Works and Housing did not respond in giving approval to the construction of the culvert near Rutam House, along the Apapa/Oworonshoki Expressway. A, similar situation occurred where a culvert crossed the Agege Motor Road and the railway line at Oshodi. 30. Scarcity of Petroleum Products. Most of the contracts suffered delays as a result of scarcity of petroleum products. The scarcity, which became noticeable in early 1997, resulted in arbitrary increases in the price of petrol and diesel required by the contractors for their vehicles and equipment. A further consequence was the increase of construction materials and transportation costs. 31. Delay in Payment of Contractors' Certificate The project suffered some delays as a result of delayed payment of contractors' certificates. This was due to the level of internal administrative approvals required. For every payment, the approval of the Military Administrator ( M.A.) was required and he was not always readily accessible. Equally important were the frequent changes in Government officials who were signatories to both the Special and Project Accounts, i.e. Commissioners, Accountant General, and some times, the M.A. 32. Indiscriminate Dumping of Refuse. Due to poor sanitation habits, people dump their waste including excreta into channels resulting in blockages and flooding of construction sites. The contractor had to first clean the channels before commencement of work especially after the rains. The project was not successful in encouraging local government to accept their responsibility for tertiary drainage, or in making people aware of the impact of indiscriminate waste disposal. E. PROJECT SUSTAINABILITY 33. Sustainability of the project is considered uncertain and dependent on continued availability of finance for municipal services. The project objectives were largely achieved and most of the components were successfully carried out. A separate drainage maintenance account was established in which funds were released through budgetary allocation, albeit intermittently. This will ensure that funds required for maintenance become available even after project closure. Also, the direct labor organization set up in the MEPP will continue to carry out maintenance of tertiary and some secondary channels. Similarly, private sector contractors engaged during project implementation for maintenance of large secondary and primary channels, will continue to be used after the project closure. For the solid waste component, LAWMA has entered into maintenance agreement with private sector contractors for regular maintenance of its plants and vehicles, and to ensure equipment remains operational. 34. Capacity Building: Almost all staff who benefited from training and work attachment programs remain in their respective places of primary assignment and will therefore be able to utilize acquired skills to plan and supervise further development the Lagos metropolis. 35. Ownership: As a participatory approach had been adopted from the beginning, there was a clear understanding and agreement between the state and local governments on priorities on where projects should be located. However, lack of adequate attention by local governments to keeping tertiary drains clear has compromised to some extent the state's drain clearing program. To ensure sustainability of project -7- investments, a Community Development Association (CDA) was set up at the inception of the Urban Upgrading program to manage and maintain some of the public facilities. The community health center and primary school have been handed over to, and is being managed by, the Local Government and the State Primary Education Board (SPEB), respectively. F. BANK PERFORMANCE 36. The Bank's performance in project identification, preparation, appraisal and implementation was generally satisfactory. This project was a follow-up project for which there was a clear identified need. There was adequate involvement and consultation with project stakeholders at the inception of the project, thus allowing beneficiaries to be part of the decision-making process. The Bank did not, however, give adequate recognition to the impact of local government on the ongoing operation of the facilities. 37. The Bank had at least two full supervision missions per year throughout the duration of the project, and in addition to that, a Municipal Engineer was available at the Resident Mission in Nigeria to follow-up on critical actions between missions and maintain close liaison with the PIU. There were no changes in Bank personnel throughout the project cycle (appraisal through project closure). The Bank was flexible, and consequently able to resolve problems and implementation issues that might otherwise have slowed down the project. G. BORROWER PERFORMANCE 38. The Borrower's performance during project preparation, appraisal and implementation was satisfactory with reservations indicated in Section D. There were none of the usual implementation delays customary to projects in Nigeria as LASG was able to bring its experience and skills from the previous project to bear. The staff of the implementation unit and the executing agencies were adequately qualified and had the necessary skills and experience to implement the project successfully. There was stability in the implementation unit as no major management changes were made that could disrupt the successful implementation of the project. Despite the fluctuations of the Naira against the dollar, the LASG was able to make the required counterpart funds available when needed, by establishing an SPO with the FMF and thus guaranteeing adequate funding of the project. Compliance with Bank's reporting system and financial reporting requirements were adequately and timely met. The use of a Financial Management Consultant, engaged from the private sector, was innovative and useful in inculcating financial discipline into the project. H. ASSESSMENT OF PROJECT OUTCOME 39. The project's outcome is satisfactory as most of the objectives were achieved. With the completion of the drainage works and maintenance of the existing ones, the incidence of flooding in the project areas have been reduced considerably. Roads that were regularly flooded before the project are no longer flooded, thus allowing for free flow of traffic. Property values have gone up in these areas and the living conditions of the people inhabiting the flood prone areas have improved. Construction of the drainage system has resulted in lowering of the water table in those areas, thus leading to reclamation of land hitherto lost to flooding. 40. An innovative sewerage development plan has been prepared for priority areas of Lagos, and is available for implementation when financing can be identified. The Lagos State Environmental Protection Agency (LASEPA), through the project, is now in a position to effectively monitor and control the discharge of industrial effluent into water bodies in the Lagos metropolis. 41. Procurement of the equipment for operation of both the landfill site and the transfer loading station, respectively, was completed and will improve the operations of LAWMA. The initiative of carrying out plant maintenance (regular and special) under contract to the private sector, has proved effective in that sufficient vehicles have been kept on the road in good operating condition under this arrangement. -8- 42. The legal framework setting up URB was strengthened to enable it to generate revenue for urban renewal projects. URB's organizational chart was reviewed and emphasis placed on units' responsibilities. The upgrading of basic facilities and provision of a health center and primary school in Eadia-Olojowon resulted in improved living standard and environment of the community. Spontaneous development has resulted and donor interest in replicating the effort has been generated. 43. The outcome of the LRIS is the development of four applications which has the potential to i-mnprove the revenue base of the State Govemment, especially on land related matters, if given sufficient priority by the government. 44. Through the strengthening of the LSVO and the computerization of billing and collection system in two pilot Local Governments, collection of tenement rate increased tremendously. LSVO is now in a position to update data on property enumeration and valuation. 45. The project outcome with respect to training is satisfactory. The training impact assessment also revealed that the training improved existing skills and, in several cases, the trainees acquired new skills. The capacity of the training officer to design and implement training programs has been enhanced. I. FUTURE OPERATION 46. Maintenance of the works provided under the project will continue to be dependent on municipal finance, which has increased considerably during the implementation of the project. A mechanism has been established for carrying out and financing drain maintenance, utilizing municipal finance. Some local governments have been strengthened and their revenue generation capacity improved under the project, however clearing of tertiary drains, a local government responsibility, and improper waste disposal by the communities, remain the weak links in future operation. LASG Drainage Department has agreed to continue to make timely budget requests to conduct drain maintenance activities through contract or direct labor, and to continue to work with local government to improve the state of tertiary drains. 47. Any future Bank support to drainage and sanitation activities would take into account the achievements, shortfalls and lessons emanating from the project implementation. As such, one major benefit of the successful implementation of the drainage component is the considerable reduction in the incidence of flooding in those areas where drainage works were carried out. This benefit resulted in enhanced economic activities in these areas. However, the areas covered by the drainage system is limited to about 40%/o of the Lagos metropolis. There is therefore the need to extend the drainage facility to other areas where flooding still remains a perennial event. To this end, MEPP and the Bank agreed to finance studies and design of the drainage system of the area called "Greater Lagos." Also, several other studies were conducted which provide potential entry points for future Bank assistance in urban transport, urban upgrading., sewerage and sanitation, and LRIS and revenue generation. J. KEY LESSONS LEARNED 48. Project ownership: Project selection, preparation and design must involve beneficiaries from the beginning as was done in this project, to avoid problems associated with project ownership. Implementation proceeds more smoothly when the project unit assumes full ownership of the project. Ownership and project success are enhanced if the full range of the Borrower's concerns can be addressed under the project 49. Financial Management Consultant (FMC): The use of a FMC, who had primary responsibility for finance-management (payment ledgers, commitments disbursements and monitoring of project accoLnts), is a creative innovation that has worked well in comparison to the Bank's former approach of using independent banks. However, although the FMC prepared the financial reports, there was little transfer of skills from the FMC to any member of the PCU. Continuing use of a FMC will be necessaiy under future projects until sufficient capacity can be built up within the PCU. -9- 50. Counterpart Fund Corntribution: The usual delays experienced in obtaining the required counterpart funds were avoided through the use of SPOs. This method of resource mobilization has been found to be generally accepted in all World Bank-financed projects in Nigeria. 51. Establishment of a Maintenance Account: The lack of maintenance culture in the country has not, until now, been made a priority in concrete terms. The project ensured that a maintenance account was established into which funds are released by LASG for regular maintenance of the various drains constructed. The release of funds into the account was through budgetary allocations. In some instances, what was budgeted was not released at the time the funds were needed. More attention should be paid to this account so as to assist in achieving sustainability of the drainage works. The budgeted amount should be voluntarily released and on time to the drainage department as a sign of financial discipline by the LASG, and to show the importance attached to maintenance of government assets. 52. Project Supervision: Qualified staff of the implementing agencies were involved in the supervision of the various works alongside the private sector consultant engaged for construction supervision. Cases of conflicting site instructions to the contractors were recorded and this gave the contractor an excuse to ignore legitimate instructions. Though the capacity of the PIU to supervise and manage works of this nature and scope have been greatly enhanced, the role and responsibilities of supervision consultants compared to the PIU must be clearly defined in order to avoid conflicts. 53, An Environmental Impact Assessment (EIA) was carried out during project preparation and a detailed resettlement plan was prepared prior to implementation, as agreed during negotiations of the project; programs were developed for resettlement of affected people and properties. However, there were unsubstantiated complaints of forcible eviction in some sections of the drainage works. In future, Bank- assisted projects, especially in heavily built up areas, apart from a resettlement plan, there should be inspection of sites and a very detailed recording of conditions prior to commencement of implementation. There is always a lag time between project approval and implementation, during which uncontrolled developments can take place. 54. Implementation of drainage maintenance under contract using schedules of rates proved effective and economical. However, additional work is needed to increase the flexibility of contract documents utilized under this project. Further, though different levels of government may be responsible, it is important in drainage maintenance to ensure that the cleaning program includes all levels of drainage (primary through tertiary) because of their impact on each other (litter deposited in tertiary drains ends up blocking primaries). 55. The concept of implementing a pilot project to demonstrate the benefits of urban upgrading appears to be particularly effective. The pilot implemented under this project has generated considerable spontaneous development at the site, and considerable interest in replication among potential financiers. Even though it was planned and implemented with full community participation, it also demonstrated that in expanding the program, additional attention needs to be given to the logistics of community management of facilities. 56. Clear identification of training needs and tailoring of training programs to individual needs leads to effective capacity building. 57. Prior to carrying out the willingness-to-pay study, there was a general belief among government officials and beneficiaries that providing water and sanitation is a social service, and therefore, people would be unwilling-to-pay for these services. However, a study conducted under the project to assess the willingness to pay for drainage, water and sanitation services clearly indicated that people are willing to pay to cover a modest service level, which suggests that it is possible to make provision of sanitation services financially viable and sustainable as long as these services are reliable and in line with people's expectations. -10- Table 1: Summary of Assessments A. Achievement of Objectives Substantial Partial gble icable Macro Policies 0 0 0 Ei Sector Policies 0 El 0 El Financial Objectives 0 El 0 U Institutional Development 0 El 0 El Physical Objectives El 0 0 El Poverty Reduction 0 0 0 Cl Gender Issues 0 l 0 137 Other Social Objectives 0 0 0 1R Environmental Objectives 0l0 0 El Public Sector Management 00 0 El Private Sector Development n El El El Other (specify) El Ol O E1 B. Project Sustainability Likely Unlikely Uncertain (1) (/) (e) 00 E 21 C. Bank Performance Satisfactory Satisfactory Deficient (e) () (1) Identification 0 0 I] Preparation Assistance O 0 I] Appraisal O 0 I] Supervision 0 El I Highly D. Borrower Performance Satisfactory Satisfactory Deficient (1e ( (/) Preparation 0 El Implementation 0 0 3 Covenant Compliance O 0 Operation (if applicable) 0 Ol Highly Highly E. Assessment of Outcome Satisfactory Satisfactory Unsatisfactory unsatisfactory (e 0) El(/) U El O []~~ -11- Table 2: Related Bank Loans/Credits Preceding operations LN 1767-UNI Nigerian Tc, provide (i) sites & services & upgrading in 1979 Closed 6/30/86 States Urban Bauchi and Gombe towns; (ii) technical Development Project assistance at the state & federal levels; and (iii) urban development feasibility in 7 states. LN 2607-UNI Imo To (i) strengthen, federal level capability for 1986 Closed Urban Development policy formulation and program monitoring & Project evaluation in the urban sector and extend preparation assistance to the states; (ii) demonstrate replicable approach to providing affordable shelter and related services; and (iii) build on & strengthen institutional linkages & capacity in Imo State to carry out future low- inrcome urban development projects while improving the local financial resource base LN 2620-UNI Lagos To (i) strengthen the administrative, technical & 1985 Closed 9/30/93 Solid Waste and Storm financial capacity of Lagos state institutions; Drainage Project (ii) support the operations of LAWMA, the stormwater operations of LSG, expanding & irmproving their services: (iii) assist LSG to revise & reactivate the rating system for property tax valuation. LN 2925-UNI To initiate the establishment of a mechanism for 1988 Closed 6/30/97 Infrastructure financing urban infrastructure using selected Development Fund merchant banks to identify, appraise, supervise Project and co-fmance sub-projects executed by the states. LN 3238-UNI To promote the efficient functioning of major 1990 Closed 6/30/99 Oyo State Urban Project towns in Ibadan and Oyo States through city- wide infrastructure rehabilitation, and strengthening the institutions responsible for urban management & local resource mobilization. -12- Table 3: Project Timetable Identification (Executive Project Summary) February 1992 Febmiay 1992 Preparation May 8, 1992 May 13, 1992 Appraisal May 30,1992 June 1992 Negotiations November 9, 1992 May 1993 Board Presentation May 1993 June 17, 1993 Signing June 28, 1993 July 30, 1993 Effectiveness September 1993 April 21, 1994 Midterm review July 15, 1995 June 10, 1996 Project Completion December31,1997 March 31, 1999 Loan Closing June30, 1998 March31, 1999 Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual (US$Million) Appraisalestimate 11.20 31.40 51.00 62.00 63.00 63.60 Actual 4.45 14.88 29.74 44.30 55.30 63.60 Actual as % of estimate 39.7% 47.4% 58.3% 71.4% 87.8% 100% Date of final disbursement September 1999 -13- Table 5: Studies Included in Project Feasibility Study To detenmine the viability/feasibility Completed Sub-component achieved of the LRIS project. the set objectives. Production of Industrial To facilitate effective pollution Completed The study was able to Data Base and map for control monitoring and assessment of provide the actual Lagos State the quality of the environment. location of industries in the State on a Map, To provide baseline data in the form determine effluent of an industrial data base, maps and characteristics, discharge preliminary water and air testing, for point of industries, future physical and economic receiving water bodies planning by the State Government. and their pollution load. To provide qualitative information on The study also provided the various trade effluent discharge the base line data needed and receptor points. for the productions of an effluent limitations guidelines and standards for the State. Willingness-to-pay for To ascertain the level of preparedness Completed The result encouraged the sewage and sanitation of Resident of Lagos metropolis to embarkment on other service in Lagos State. pay for services. studies designed and construction since the indicators are that the project could pay itself in the long run. Feasibility studies and Feasibility studies and detailed design Completed Lands and scope of work detailed design of sewage of sewage and sanitation for four to improve sanitation in and sanitation designated areas in metropolitan metropolitan Lagos Lagos identified. Implemen- tation is still pending. Land Related Information To manage land adniinistration, Completed User requirement study Management System surveying, planning and taxation was conducted and four through a system of automated major LRIS applications mapping, utilities planning design and developed. management Updating and expansion of To produce a drainage master plan for Completed To be used as a basis for Drainage Development Plan the Greater Lagos covering about the development of for Greater Lagos 35,000 hectares to facilitate deflood- Drainage Channels hi the ing, control development in lowland New areas of Lagos areas and improve the natural ways Metropolis. for navigation and recreation Restructuring study and To review LAWMA's activities, Completed Some recommendations private sector participation financing and privatization options. of the study were imple- in LAWMA's activities. mented under the project. Billhig and Collection To study and document existing Completed Recommendations not system study system and recommend methods of implemented. State improvement adopted different strategies. Urban Transport Study Completed Used to help prepare new project. -14- Table 6A: Project Costs Construction of Surelere drain 3.5 8.0 11.5 1.1 12.4 13 .5 Construction of Lagos mainland drains 3.3 7.7 11.0 2.6 10.3 12.9 Construction of Lagos Island drainage 2.0 4.7 6.7 1.0 8.1 9.1 Construction of Apapa drains 3.6 8.4 12.0 7.5 5.8 13.3 Drainage maintenance 4.3 4.6 8.9 0.8 3.1 3.9 Transfer station and landfil development 0.5 1.0 1.5 1.2 0 1.2 Vehicles & equipment for LAWMA 0.2 1.4 1.6 0.4 1.2 1.6 Technical Assistance Construction supervision and maintenance 0.5 1.9 2.4 0.6 3.0 3.6 assistance Preparation of future projects and training 0.1 1.0 1.1 0.0 1.0 1.0 Sewerage and sanitation studies and design 0.2 4.7 4.9 0.6 2.6 3.2 Laboratory equipment and training 0.1 1.0 1.1 0.3 1.1 1.4 Revenue billing and collection assistance 0.1 1.5 1.6 0.3 0.2 0.5 Conmmunity upgrading technical assistance 0.2 0.8 1.0 0.0 1.4 1.4 Demonstration community upgrading 0.7 1.4 2.1 2.0 0.0 2.0 project Develop LIS 0.1 1.8 1.9 0.2 2.2 2.4 Solid waste disposal 0.1 1.2 1.3 0.1 0.2 0.3 Training Included Included Included 0.1 1.2 1.3 Contingencies 7.31 7.9 15.2 0.0 0.0 0.0 Total 26.8 59.0 85.8 18.8 53.8 72.6 Table 6B: Project Financing Item Local Foreign Total Local Foreign Total costs costs costs costs IDA 6.0 57.0 63.0 9.8 53.8 63 .6 Cofinancing Institutions (JICA) 0.0 2.0 2.0 0.0 0.0 0.0 Lagos State Govemment 20.8 0.0 20.8 9.0 0.0 9.0 Total 26.8 59.0 85.8 18.8 53.8 72.6 -15- Table 7: Economic Costs and Benefits _____. ..= ., Local Foreign -0.95 -2.71 -3.36 -3.36 -2.23 -6.34 -8.58 -8.58 -3. 18 -9.04 -12.21 -12.21 -311 -8.86 -11.97 -11.97 -2.35 -6.69 -9.04 -9.04 0 -1.77 -5.05 -6.82 054 -6.82 1 1.44 3.79 0.49 11.33 1.02 2.55 19.17 17.74 2 1.44 3.79 0.49 11.38 1.02 2.55 19.22 17.78 3 1.44 3.79 0.49 11.42 1.02 2.55 19.26 17.S3 4 1.44 3.79 0.49 11.47 1.02 2.55 19.31 17.87 5 1.44 3.79 0.49 11.51 1.02 2.55 19.36 17.92 6 1.44 3.79 0.49 11.56 1.02 2.55 19.40 17.96 7 1.44 3.79 0.49 11.60 1,02 2.55 19.45 18.01 8 1.44 3.79 0.49 11.65 1.02 2.55 19.49 18.06 9 1.44 379 0.49 11.70 102 2.55 19.54 18.10 1 0 1.44 3.79 0.49 11.74 1.02 2.55 19.59 18.15 11 1 44 3.79 0.49 11.79 1.02 2.55 19.64 18.20 12 1.44 3.79 0.49 11.84 1.02 2.55 19.68 18.24 13 1.44 3.79 0.49 11.89 1.02 2.55 19.73 18.29 14 1.44 3.79 0.49 11.93 1.02 2.55 19.78 18.34 15 _ 1.44 3.79 0.49 11.98 1 02 2.55 19.82 18.39 16 144 3.79 0.49 12.03 1.02 2.55 19.87 18.44 17 1.44 3.79 0.49 12.08 1.02 2.55 19.92 18.48 18 1 44 3.79 0.49 12.13 1.02 2.55 19.97 18.53 1 9 1.44 3.79 0.49 12.17 1.02 2.55 20.02 18.58 20 1.44 3.79 0.49 12 22 1.02 2.55 20.07 18.63 21 1.44 3.79 0 49 12.27 1.02 2.55 20.12 18.68 22 1.44 3.79 0.49 12.32 1.02 2.55 20.16 18.73 23 1.44 3.79 0.49 12.37 1.02 2.55 20.21 18.78 24 1.44 3 79 0.49 12.42 1.02 2.55 20.26 18.83 25 1.44 3.79 0.49 12.47 1.02 2.55 20.31 18.8S 26 1.44 3.79 0.49 12 52 1.02 2.55 20.36 1893 27 1.44 3.79 0 49 12.57 1.02 2.55 20.41 18.98 28 1.44 3.79 0.49 12.62 1.02 2.55 20.46 19.03 IRR= 21% -16- Table 8: Status of Legal Covenants 2.02 (b) 3 C The borrower shall open and Accounts maintain in dollars a special account properly in a commercial banlc maintained. 3.01 (b) 5 C The borrower shall relend the proceeds ofthe Credit to Lagos State Under a Subsidiary Loan Agreement 3.01 (c) (i) 9 C 0713111994 The borrower shall review annually Satisfactory with Lagos State all action necessary to facilitate the carrying out of the recom-mendations of the reviews. 3.01 (c) (ii) 9 0713111995 Borrower to carry out jointly with the Association and Lagos State a mid-term review of the project and take all action necessary to facilitate the carrying out of the recommendations ofthe review. 4.01 (a) 1 C Borrower to cause records and OK accounts reflecting expenditures to be maintained. 4.01 (b) 1 C 06130/1995 06/30/1997 Have records and accounts audited OK annually by indepen-dent auditors acceptable to the Association and furnish the report to the Association no later than six months after the end of each year State 2.01 (c) (i) 5 C Establish and maintain a project Management unit Agreement management unit to oversee the was maintained. carrying out ofthe project State 2.01 (c) (ii) 5 C Promptly appoint a Project manager Ok Agreement to head the Project management Unit PA 2.01 (a) 5 C Lagos State shall carry outthe OK Project with due diligence and efficiency and in conformity with appropriate administrative fiancial, engineering and public utility practices, and shall provide, or cause to be provided, promptly as needed. The funds, facilities, services, services and other resources required for the project. -17- Table 8: Status of Legal Covenants (cont'd) SW~~~~~~~~~~~ 1V3 2.01 (b) (i) 4 C Lagos State shaU provide in its budget OK amounts adequate to cover its courterpart contributions to the costs of the project (including costs relating to . ~~~~~~~~~~~~~~~~drain mainktenance) 2.01 (b) (ii) 4 C Open a Project Account to be used OK exclusively to meet expenditures to be made under the project 2.01 (b) (iii) 4 C Issue writte instructions to the OK Borrower to deduct from amounts due to Lagos State from the Federation Account and pay the Project Account Naira 9,000,000 each month for the first period of 18 months thereafter at least Naira 12,000,000 each month for the following 30 months. 2.01 (c )(i) 4C Lagos State shall open, and thereafter OK maintain a drainage naintenance account to pay private sector contractors to carry out annual or periodic drain maintenance. 2.01 (c ) (ii) 2 CP 1231/1994 Pay into the Drainage Maintenance Account Account (a) at lease Naira 32.2 million, opened, but (b) (123195) Naira 40.8 million, (c) funds deposited (123196) Naira 56.5 million, (d) are less than (123197) Naira 74.4 million and (e) covenanted. annually a sufficient amount 2.01 (d) 5 C Lagos State shall maintain the OK Environment and Physiml Planning Office, the Lagos State Waste Management Authority and the Urban Renewal Board. 2.01 (e) ( i) 9 C 0713 1/1994 Lagos State shall review annuaUy the OK progress achieved in the execution of the project 2.01 (e) (ii) 9 C 07/31/1995 Carny out jointly with the Borrower and OK the Association a mid-term review of the Project and take all action necessary to carry out the recommendation of the review. -18- Table 8: Status of Legal Covenants (cont'd) , . ..... .... ~ /~ t . 2.01 (t) 7 C 0813 1/1993 lagos State shall employ a consultant OK to prepare a detailed implementation plan for resettlement 2.01 (g) (i) 7 C Lagos State shall adequately OK compensate all the persons affected by resettlement 2.01 (g) (ii) 7 C Carry out the resettlement of affected Resettlement persons under a schedule satisfactory satssfactonly to the Borrower and the Association. completed. 2.05 (b) 6 C Lagos State shall take all measures OK necessary to mitigate any adverse environmnetal impacts of the Project 2.05 (c) I C Lagos State shall employ a Project OK Financial Controller for the duration ofthe Project 2.05 (d) 10 C 0S101/1994 Lagos State shall prepare and furnish OK annually to the Association a training program satisfactory to the Association. 2.05 (d) (ii) 10 C Carry out training in accord-ance with OK the said programn. 2.05 (d) (iii) 10 C Require all trainees to enter into bonds OK with Lagos State to serve Lagos State for a period which shall not be less than two years after their training. 3.01 (a) I C Lagos State shall maintain records and OK accounts adequate to reflect operations resources and expenditures in respect of the Project. 3.01 (b) I C 06/30/1995 06/30/1998 Have records and accounts audited by Audit generally independent auditors acceptable to the received on time Association and furnish to the and unqualified. Association no later than six months after the end of such year, the report of such auditors. Covenant types: Present Status: 1. = Accounts/audits 9. = Monitoring, review, and reporting C = covenant complied with 2. = Financial performance/revenue generation from 10. = Project implementation not covered by CD = complied with after delay beneficiaries categories 1-9 CP = complied with partially 3. = Flow and utilization of project funds 11. = Sectoral or cross-sectoral budgetary or other NC = not complied with 4. = Counterpart funding resource allocation 5. = Management aspects of the project or executing agency 12. = Sectoral or cross-sectoral policy/ 6. = Environmental covenants regulatory/institutional action 7. = Involuntary resettlement 13. = Other 8. = Indigenous people -19- Table 9: Bank Resources: Staff Inputs Preparationto Appraisal N/A N/A N/A N/A 13.7 37.0 Appraisal N/A N/A N/A N/A 34.7 83.4 Negotiations through Board N/A N/A N/A N/A 13.6 41.2 approval Supervision 114.4 89.4 102.5 N/A 140.6 474.1 Completion N/A N/A N/A N/A 0.7 4.9 Total 114.4 89.4 102.5 N/A 203.3 640.6 Table 10: Bank Resources: Missions Through Appraisal 03/92 4 10 C, FA, SE, Appraisal through Board N/A N/A N/A N/A approval Supervision 1 06/93 1 Supervision 2 10/93 2 3 SE N/A N/A Supervision 3 11/93 4 35 SE, ME, CT, EC 1 Supervision 4 03/94 2 5 SE N/A N/A Supervision 5 06/94 6 21 SE, ME, TS, EC HS HS Supervision 6 11/94 5 24 SE, MF, CT, M4iE HS S Supervision 7 02/95 2 1 SE, ME N/A N/A Supervision 8 06/95 6 10 SE, ME, ME, CT HS S Supervision 9 11/95 5 9 SE, MF, ME, CT HS S Supervision 10 06/96 6 11 SE, ME, ME, CT, S S RS Supervision 11 11J96 6 8 ME, MF, SE,R S S Supervision 12 03/97 6 11 ME, SE, TY, ME S S Supervision 13 09/97 4 ME, SE, C S N Supervision 14 03/98 6 RS, ME, TT, ME, S S SE_ _ Supervision 15 09/98 3 SE, ME S S Completion _ . Total I- Key to Specialzed stsffskils. _ 2 - Key to Pefforrance Ratin. 3 - Key to Types of Pobleno; etc. etc. etc. C = Conultant CT = Conoeltant Traiing EC = Economist FA = Financial Analyst ME =Municipal Engineer MF =Municipal Finance RS Resettlement Specialist SE = Sanitary Engineer TS = Training Specialist -20- Table 11: Targeted and Achieved outputs Surelere Drainage Construction Dredge and line channel, As planned construct access road Lagos mainland drains construction Augment existing drainage As planned improvements, replace existing culvert crossing and remove constriction Lagos Island drainage construction Improve existing main outfalls, As planned improve or replace concrete channels and culverts Apapa drains construction Upgrade, realign and line As planned highest priority outfall drains. Drainage maintenance Establish (a) cost effective As planned maintenance program by contract; (b) drainage maintenance account Urban Renewal demonstration Improve infrastructure and As planned. Successful demonstration project provide public facilities. completed. Transfer station and Landfill Construct and supply bulk As planned Landfill not completed due development carriers and spare parts for to change in component. LAWMA Technical Assistance - sewerage and sanitation Develop strategy, prepare Completed. Financing gap created by studies, phase 1 (JICA) ! plans; conduct feasibility withdrawal of JICA was - sewerage and sanitation i studies, develop future designs; absorbed by LASG/ Bank studies, phase 2 supply laboratory equipment. Financing. - resource mobilization Develop measures for revenue Completed Not implemented billing and collection systems. - Urban Renewal Board (URB) Assist URB to review charter Completed and plan development strategy - Development of mapping Develop mapping ability and Completed. ability LIS for Lagos - Assistance to LAWMA Expand LAWMA MIS and MIS Completed. Study conduct engineering studies for not completed - future waste disposal sites Engineering management study of LAWMA substituted - Future projects Help prepare designs for future Designs for future investment projects Completed drainage, urban upgrading, sewerage and sanitation, and urban transport project - training Provide training and work prepared. attachments for staff. As planned Project management To be carried out during project As planned Construction supervision and To be carried out during project As planned maintenance assistance Table 12: Status of Physical Works Surulere System 5 CoConstruction of 1235m of 8.5 x 3.25m 1235m of 8.5 x 3.25Cf N81,958,784.60 N81,958,784.60 20 Mo nths 40 Months Construction Phase I (Contract 3) Rectangular Concrete + + Channel ~~~~558m of 4.5 x 3.25m 558m of 4.5 x 3.25nim ,3,8.0 264395 7.22m of 3.5 x 3.25m 7.22m of 3.5 x 3.25m 4 Culverts 4 Culverts Surulere System 5 Construction of Concrete I) Dredging of 9.80km 1) Dredging of N36,718,120;97 N54,852,866.31 24 Months 44 Months Phase It (Contract 4) Channels and Dredging length of earth channel with 13.13km of earth of earth channels bottom width varying from channel with bottom + + 12.50m to 53m and depth width varying from US$9,623,802.37 US$10,342,774.62 varying from 2.00 to 3.50m 12.50m to 53.00m and depth from 1.00m to 3.50m 2) Construction of 1.73km 2) Construction of length of open rectangular 4.1 Okm length of open concrete drain with width rectangular concrete varying from 2.75m to drain with width 15.Om and depth from varying from 2.75m to 1.00m to 2.50m 15.00m and depth from 1.00m to 2.50m 2a. Drainage Oshodi/Isolo Channels Construction of Concrete Construction of: Construction of N145,898,986.42 N184,41,4174.86 24 Months 40 Months Completed (Construction) (Contract 2) Channels Culverts and + + Bridge 1) 2.283km length double 1) 2.35km length $5,295,161.00 $6,257,173.95 cells rectangular concrete double cells rectangular conduit of 3.25m depth concrete conduit of 2.50m width and 2.50 depth 2) 0.476km of single cell 2) 0.73km length singl rectangular conduit of 3.0m cell rectangular conduit width and 3.30m depth of 2.50m width and 2.50m depth. 3) 82m length of double 3) 0.63km length singl cell rectangular conduit of cell rectangular conduit 2.40m width and 3.20m (2.0 x 2.0)m (WXD) depth. 4) 902m length single cell 4) 0.26km length open conduit of 2.0m width and rectangular concrete 2.20m depth. drain 2.50 x 1.5Gm. 2 1 COM.7 m1 5) 200m length of 5) 90m length of open trapezoidal concrete channel rectangular concrete width varying from 13. 50v drain of 13. OOm width to 25 Om and depth of and 2.50m depth 6) I No. Bridge 6) I No. Bridge 7) 10 Nos. Box Culver2s 7) 10 Nos Box Culverts 2b. Drainage Luith/ity Way Chantiel Construction of LU6itW Section Length S 6As original NUiS N18444,935.69 24Months 33 Months Rectangular Channels 615.O0m Size: 5.O x l.4 + witli various sizes 1) 5.Om x 1.40m and 2) 2.7m x2.2m. The Construction of 6 City Way Section Length =US$,656,053.46 US$4,066,053.46 major Culverts 3 85 0.0m S ize: 2.7m x 2.2m 3. Drainage Lagos Island Priority I Rectangular Channels 3,247m 1062m N57,344,884.99 N93,905,216.88 31st May 1994 Jan-96 Works Sizes between + + to June 1996 US$7,735,249.86 $8,054,679.46 Height Top Width 1.2m&2m 1.lm&2m 1.7m&2m 1.7&4.8m 904.1m 2m 4.s4m 140m 2.3m 1.7 &4.9m 802.5m 2.5m 3.4m 280m 3m 8m 1325m 3.12m 6.7m 127.5m 3448.6m Conduit Channels with 1185 1132 0.9m Diameter and top width between 1.2m and 2.3m Trapezoidal Channels 535.5m with top width between 10.5m and 15.9m and height of 2.3m Gabion Charmels with 768m 306m top width between 12m and 15.9m Refurbishment 201m 196m 22 4 Drainage Apapa Priority I Works- Construction of Concrete Construction of Construction of N173,958,016.47 N306,893, 173 55 24 Months 36 Months Construction Chamnels and Culverts 1) 15.59km length 1) 16.40ktm length of open/covered concrete drain open/covered concrete + s with varying width from drain with varying $5,856,783.44 $5,821,159.41 0.30m to 4.50m and depth width from 0.50 to 4.0 from 0. 60m to 3. Om and depth from 0.60m to 2.50m 2) 2.20km of chamnels in 2) 2.50km length of Gabion with varying from trapezoidal concrete bottom width 3.0m to 7.0m channel with bottom and depth from 1.1 8m to width varying from 2.30m 5.Om and 7.Om and depth from 1.30m to 2.30m 3) 0.99km of concrete 3) 1.30km of concrete conduit with width varying conduit with width from 0.80m to 4.25m and varying from 0.80m to depth from 0. 80m to 3.40m 4.Om and depth from O.SOm to 3.50m 4) 4 5Nos. Box Culverts 4) 45 Nos Box Culverts along the channels along the Channel 5. Drainage Maintenance of System I Maintenance Dredging of Dredging of 8.30km of Dredging of 8.30m of N9,139,611.90 N9,131,777.50 24 Months 26 Months (Maintenance) Channel (Lot l/P) existing earth channel earth channel with bottom earth channel with width varying from 20.00 to bottom width varying + + 30.00 and depth of 1.20m. from 20.00 to 30.00 and $1,078,819.15 $1,074,618.80 depth of 1.20m Maintenance of Systems Maintenance Dredging of Dredging of 7.85km of Dredging of 8.00km N7,378,794.00 N5,273,536.25 24 Months 23 Months 2 and 3 (Lot 2/P) existing earth channel earth channel length of earth channel bottom width varying + + from 8.00mto 18.00 $519,507.07 $518,554.12 and depth from 1.50m to 2.00 Maintenance of System 4 Maintenance Dredging of Dredging of 7.09km of Dredging of 7.09km N6,616,884.75 N4,823,922.98 24 Months 24 Months (Lot 3/P) existing earth channel earth channel with a bottom length of earth channel width of 20.00m and depth with a bottom width of + + of 2.Om 20.00 and depth of $519,796.83 $498,584.55 2.Gm Maintenance of System Maintenance Dredging of Dredging of 6.59km length Dredging of 6.95km N5,85 1,722.00 N2,638,742.08 26 Months 24 Months 6C (Lot 4/P) existing earth channel of earth length of earth channel with the bottom width + A varying from lO.OOmto $503,780.76 $500,483.37 18.00m and depth _____________________________ ____ _1.60m to 2.50m . .. 23 System 6F and Ayeke- Maintenance Dredging of Same as Actual Dredging of 11.64km N10,650,490.0 N4,976,673.49 24 Months 24 Months Achakpo (Lot 5/P) Mxiseing earth chal els length of eatih channel with bottom width + + vaoying ftom 5.of to $557,940.75 $540,090.71 24.00 and depth of 1.09m to 2.02m 6. Drainage Apapa Lot u/1I Maintenance of Drains in 163.7m3 of excavation and 2,455.50m3 of N2,054,3916.00 N2,554,316.00 24 Months 24 Months Additional Maintenance Apapa Local maintenance of 14km excavation and apoeN500,000 was Secondary Channels Government tertiary drain maintenance of 2 Ikm approved for the oftertiary drain execution of extra works Mainlaand and Surultere Maintenance of Drains in 12,083m3 of excavation and 12,000m3 of excavation N6,832,963.20 N6,831,850.03 24 Months 24 Months Lot 1/2 Mainlaand and SuLlere maintenance of 48km and maintenance of tertiary drain 50km oftertiary drain Oshodi and Isolo Lot 1/3 Maintenance of drains. in 3,713m3 of excavation and 4,38lm3m3 of N2,669,379.00 N2,669,379.00 24 Months 24 Months Additioral works Oshodi and Isolo Local ma ftenance ofr25km of excavation and approved for the Government tertiary drain maintenance of 25km sum of N500,000 ofotertiary drain Ikeja and Agege Lot 2/1 Maintenance of drains. in 18,046m3 of excavation and 18,046m3 of excavation N6,875,375.00 N8,094,200 24 Months 24 Months Ikeja and Agege Local maintenance of I Okm of and maintenance of + Government tertiary drains lOkm oftertiary drains $14,725.31 Maintenance of Drains in 11,01 Om3 of excavation I11,01Om3 of excavation and N4,889,8 15.00 N4,889,8315 24 Months 24 Months Victoria Island Local and 60km oftertiary 60km of tertiary drains Goverment drains Mushin Lot 2/3 Maintenance of drains in 24,055m3 of excavation 24,05a5m3 of excavation N4,405,510.00 N4,432,225.50 24 Months 24 Months Mushin Local and maintenance of 44km and maintenance of Government of tertiary drain 44km of tertiary drain Shomolu Lot3/1 Maintenance of Drains in 43,403m3 of excavation of 32,552m3 of excavation N7,122,304.00 N6,089,687 24 Months 24 Months 85% ofwork was Shoinolu Local S5km of tertiary drain of 85km of tertiary executed Government drain Ikoyi Lot 3/2 maintenance of Drains iti 9.3 88m3 excavation and 9.3 88m3 excavation N3,884,009.70 N3,820,753 .83 24 Months 24 Months Ikoyi area maintenance of 80km of and maintenance of tertiary drains 80km of tertiary drains Lgos Island Lot 3/3 Maintenance of Drains in 775 lIm3 of excavation and 775 nIm3 of excavation N2,843,704.00 N2,837,953 .00 24 Months 24 Months Additional Lagos Island maintenance of 30km of and maintenance of N1,000,000 was tertiary drain 30km of tertiary drain N93_616_050 approved 7. LAWMA Solid Waste Civil Works Yard Development Roads Same as Original N93,616,050 Same as original 6 Months 14 Months 90% Completion Conversion of Simpson Roads Incinerating Plant site Drainage to a Transfer Loading Water Supply Station Electrical System Vehicle & Equipment Gate House 24 Solid Waste Vehiel Ralitation 10 Steyr Tippers Samne as origmal USD140,886.70 6 Months 14 Months + N728,000 20 Mammoth Vehicles USD62,896.40 + N13,580,000 6Plat Allis Mech.Sbo USD242,700.48 + N5,991.498 Solid Waste Procurement of Landfill Supply of Equipment 1 No DFCAT Bulldozer and Samne as Original US$572,877 Samne as Original 6 Months 14 Months 90% Completion I No. CAT 930 Wheeled + N8,813,647.43 Payloader US$131,700 + Nl ,655,000 S. Commnunity Badia/Olojowon ..12 Months 18 Months Urhan Upgrading 159,405,972 159,199,976.60 Drain 4660mn 4841m) Collector Drain 310m ) Roads 2667mi 2560) Street Lights: Poles anid Accessories 80 80 Comrnunications: Telephones 10 4 Primary School: 1 no. Ino. Public Facilities: Toilets) Bathrooms) Washing bays) 6 nos. 6 nos. Health Centre Construction lno. Ino. Solid Waste Disposal S Refuse bins 4 Refuse bins _ _ ~~~~~~~~~Water Supply. 9. LASEPA Supply of Generators supply 3 3 $74,500 4 $74,500 3 Months 3Months N2,475,000 N2,475,000 Computers supply 3 3 N3,183, 150 N3, 183,150 3 Months 3Months Laboratory Equipment Supply LIS L/S N4,717,957.25 N4,353,957.25 3 Months 3Months Chemicals and Glassware Supply LiS Lis $22058.64 $22,058.64 3 Months 3 Months N528,382.08 N328,382.08 Air Monitozing Supply LIS L/S £74,500 £662,000 3 Months 3Months Equipmenit N2,892,705 N 1,600,000 Supply of Vehicles Peugeot 504 5 3 $89,354.47 £62,000 3 Months 3Moniths Nl,031,043 Nl,600,000 _ Ub~~~~~~~~~~~Plity Vehicles 2 2 N8,471,666 £62000 10 MorAhs .14 Months 25 IRRIS H/W & S/W ComputeroH/W 7 work Stations 7 Work Statoiial $56,113.60 As at Original 6 Months 6 Months Compeoter Software 7 Printers A 0.5 5 Prnettrrs s 0.5 (Suppliers) Renovation of lGSSU Civil Works Reneovation Renovation d N6,61:3,363 As at oiginal 6 Moiiths I Months Builliing Carpeting and Culrtains Refurbisnenaet of Equipment RefMrbishntent oftwo As per origirusl lJS$8,875,05 As per original 6 Months 6 Months Generators Refurbishment I OOKVA Gentratos s N1,287,780 Supply of I (t00 KVA) Supplier Supply of I (I OOKVA) As per original TTS$22t256 60 As per original 6 Montlhs 6 Monhs GeneBator Generator N456,291.20 Maintenance of 3 Mintenance Maintenance o up3 As per original $7,134.14 As per original 3 Years 3 YeMots Geneipttors Generators N39,000 Supply of Aurnitre Supplies Supply of iurnituioefor As per original $31,099.62 As per original 6 Months 6 Mktonths I.ISSU Bm!;ding- NS50,05G.25 Sulpply of Officec Supplies |Supply of ofiEce Equipment lAs pCI- origiDal j $31,847 As, per origihlal 6 Moniths 6 Months Ekuipmel1t ll N870,512 Supply of Air |Supplies ISupplyOf Air-conlditioner lAs per original N31,596.04 As per origiheal 6 Months |6Months Conditioning N863,625 Supply offield Vehicles Supplies Supply of Field vehicles As per oiginail $110.143.99 As per original 16 Months 6 Months Supply ofField vehicles Supplies Supply of field vehicles As per original $114,125.84 As per original 6Months 6 Mornths ______-___ _____ ____ ___ ____ N2,339,579.72 ___-.~~- I ___ __. 2____5.7_ 26 FEDERAL REPUBLIC OF NIGERIA LAGOS DRAINAGE AND SANITATION PROJECT (Cr.2517-UNI) WORLD BANK MISSION SEPTEMBER 1998 AIDE MEMOIRE 1. A supervision mission for the Lagos Drainage and Sanitation Project was undertaken by a team comprising David Henley (Mission Leader), Chris Banes (Consultant Municipal Engineer), and Engr. J. Metibaiye of the Resident Mission between August 31-September 8, 1998. The mission was also fortunate in being able to arrange for a short visit by the Bank's Vice President for Africa, Mr. Jean-Louis Sarbib, the Direstor for Nigeria, Mr. Yaw Ansu, and the Resident Representative, Mr. Trevor Byer, to the Urban Renewal Demonstration Project on September 17. This Aide Memoire summarizes the overall review of progress and highlights the main issues arising, or outstanding, on the project and agreements reached, or reconmnendations made, to address thenm. A detailed summary of the current financial status of the project prepared by WBAPD is attached as Annex 1. 2. The mission met with met with the Peranarent Secretary, MEPP, Dr. A.A. Omofade; the Head/Project Manager of World Bank Assisted Projects Department, MEPP-WBAPD, Engr. M.A. Akinsanya and members of his staff, Engr. A.O. Odutola, Director Water and Sewerage and members of his staff; the General Manager of Lagos State Environmental Protection Agency (LASEPA), Engr. A.M. Shekoni and members of his staff; the General Manager of the Lagos State Waste Management Authority (LAWMA), Sq. Ldr. E.F. Golit and officials of LAWMA; the General Manager of the Lagos State Urban Renewal Board (LASURB), Mr. A.A. Ogbara and his staff; the Surveyor General, Mr. O.A. Somoye and officials of the Survey Directorate (SD) of the Ministry of Lands and Housing; the Director of the Lagos State Valuation Office (LSVO), Mr. H.A. Allen and officials of LSVO; and consultants and contractors working for the State Governrent on the Project. Overall Status 3. The project has been running for approximately four years and four months (the Credit became effective on April 21, 1994) and good progress has been made on all major components. As at the end of August 1998, all of the total Credit amount of US$ 63 million (SDR 44. 5 mnillion) had been committed. Exchange rate (SDR to US dollar) gains were now estimnated at approximately US$ 0.45 million and the FGN has made a further US $ 0.43 million approximately available to the project for drainage expenditures. Thus the total "Credit" funds available were approximately US$ 63.88 million. A total of approximately US$ 57.25 million had been disbursed by the Bank (89.5% of Credit amount). A total of approximately US$ 5.25 million had been disbursed by the Bank during the past 5 months. Project Closing Date 4. Since the previous mission, at the request of LASG through FGN, the Closing Date of the Project has been formally extended from June 30, 1998 until March 31, 1999, primarily, to permit completion of two major drainage contracts which had experienced unforeseen delays, the LAWMA transfer station and for completion of the Lagos Sewerage and Sanitation Study and Detailed Design and the Greater Lagos Drainage Study. Credit Budget and Commitments 5. Of a total amount of US$0.8 million, which previous missions had been informed was to be an additional foreign exchange contribution to the project from FGN, for which LASG pays the Naira equivalent to FGN, to fund over-commitment of foreign exchange by WBAPD on drainage contracts, approximately US$425, 000 had been received by LASG. Of this US$163,000 had been paid into the Special Account as refund of the excess of 40% of foreign expenditure paid from the SA during 1996. Current budgeting of the WBAPD assumes that the remainder of the US$0.8 million originally agreed (approximately US$ 375,000) would not now be forthcoming as LASG has been informed that it would no longer receive a preferential exchange rate for foreign exchange purchased from FGN. 6. Taking into account the above, the fact that exchange rate gains (SDR to dollar) would not likely be as much as originally anticipated and after analyzing in detail Moines recently, and still to be, committed under the project it appeared that approximately US$64.12 million had been committed against a current Credit sum of US$63.88 million. However these figures assume all contractors, consultants and suppliers are to be paid in full from the Credit, as originally proposed. There are, however, expenditures for certain works under the Surelere System 5 Phase 1 contract (Messrs. Folad) that would not be disbursed against from the Credit due to their unacceptable quality (see para. 14c). The value of these works, which is still to be precisely determined, would likely mean that a saving against the currently estimated Credit commitments exceeding US$0.25 million would be made. In this case the estimated over-commitment of US$0.24 million (see Annex 1) would not materialize. In any event any over-commitment would need to be funded from counterpart funds. The mission recommends that; i) this position be monitored closely by WBAPD and unless the situation changes prior to budget submissions it ensures that LASG budget sufficient funds to cover such payments in the 1999 budget; ii) that WBAPD commits no further Credit funds, other than those discussed during the mission but, on the contrary, seeks savings to avoid any possible over-commitment and hence requirement for any possible additional counterpart funds. 2 Counterpart Funds 7. Under the DCA the LASG was to provide the Naira equivalent (in 1993) of US$21 million, in 18 monthly contributions of N 9 million and 30 of N 12 million. These funds have been deducted at source from the amounts due to Lagos State from the Federation Account. As at the end of August 1998 a total of N 567 million (US$ 10.35 million equivalent) had been paid by LASG made up of 23 payments of N 9 million and 30 payments of N 12 million. As at August 31, 1998 the counterpart funds account had a balance of approximately N 60.5 million with N 510 million approximately having been paid out for project expenditures. Drainage Maintenance Funding 8. In addition to the counterpart funding requirements above, the LASG paid an initial N 9 million into the Drain Maintenance Account established under the Project and N 15 million in 1997 (N 5 million in June, N 5 million in September, N 2.5 million in October and N 2.5 million in December). The sum of N 12 million provided in the 1998 budget had also now been paid in full. To date therefore a total of N 36 million has been paid into the Drain Maintenance Account of which N 32.4 million had been paid out to drain maintenance contractors. The WBAPD now deemed that the remaining N 1.8 million was sufficient to settle outstanding payments to the maintenance contractors, most of whom had already been paid in full, less retentions. 9. In addition to the funds provided to the Drain Maintenance Account established under the Project LASG had provided further funds for drain maintenance for its own local programs. Despite LASG efforts to provide a significant level of funding for drainage maintenance, the level of funding is however less than the amount agreed in the Project Agreement (N 206.9 million) and much less than is required to properly maintain the extensive, and expanding, network of primary and secondary drains in the State together with some funding of tertiary drain maintenance which the LASG carries out due to the inability of LGAs to fulfill their responsibilities for such systems. The future sustainability of drain maintenance in the State thus continues to give cause for concern. The mission urges LASG to continue to support (and increase) the level of funding for drain maintenance to build on the gains, however limited, that have been made under the Project. Consideration of a drainage component in any possible future World Bank-supported Project would involve close scrutiny of LASG's continuing efforts, or otherwise, beyond LDSP to ensure sustainability of the drainage systems of Lagos. Project Management and Quarterly Reporting 10. The quarterly report covering the period April-June 1998, quarter -no.2/98 was given to the mission. A summary of the financial position of the project as at August 31,1998 was prepared by the WBAPD Financial section during the mission and is summarized in Annex 1. 3 11. The following technical reports and bid documents have been prepared since the previous mission and were submitted to the mission. Comments, where deemed necessary, are given in the relevant sections of this Aide Memoire: - Updating and Expansion of the Greater Lagos Drainage Study - Inception report; - Septage Treatment Facilities Lands report; - Ikeja Sewerage District bid documents. Audits 12. The audit report on the 1997 project accounts has been submitted to the Bank which has given its comments. These are to be discussed at a meeting with the Bank's local Financial Analyst, the Auditors and WBAPD Financial Section staff within the next week. Status of Components and Current Issues and Recommendations a) Drainage 13. The mission visited the sites of five of the six major drainage contracts with WBAPD staff, consultants and contractors . Progress on the primary drainage contracts is as follows: Lagos Island (Messrs. Sakamori) 100% completed; Apapa (Messrs. DTV) 100% completed; Mainland LUTH/City Way (Messrs. Nahman) 100% completed; Mainland/Oshodi/Isolo (Messrs. DTV) 90% completed; Surelere System 5 Phase 1 (Messrs. Folad ) 65% completed and Surelere System 5 Phase II (Messrs. Eldorado) 95% completed. 14. In the contracts not yet completed the following observations were made: (a) In Oshodi, Messrs. DTV are progressing well on the bridge crossing the Expressway, which was delayed because of redesign, necessitated by identification of poor soils, and on the culvert crossing the railway, delayed whilst waiting for Nigerian Railways approval. The contract is expected to be completed before December 31, 1998. (b) In Surelere System 5 Phase 2, Messrs. Eldorado has almost finished the additional concrete lining at Badia. The alignment of the channel in a number of places is poor but the works are being carried out in a very difficult swamp area and the contractor has, in places, altered alignments to avoid affecting any shelters adjacent to the channel. Conditions for those living in the area have greatly improved as a result of the drainage works. (c) In Surelere System 5 Phase 1, Messrs. Folad has attempted to rectify some areas of sub-standard work which lead the previous mission to recommend the Bank to suspend disbursements against this contract. In this case the mission is prepared to recommend the Bank to disburse against the contract subject to the following conditions: 4 (i) excepting for expenditures on those areas where the mission still considers work of poor quality (e.g. for the length of channel where concrete ties have been constructed in an attemapt to prevent collapse of channel walls); (ii) providing an in-situ concrete capping beam, as proposed earlier, is co:structed along both sides of about 2 km. of channel constructed with precast sections and which was found unacceptable during the previous mission, and; (iii) providing the quality of work still to be carried out is found acceptable as determined by the WBAPD and the consultants advising on supervision. 15. The mission also visited the area of System 4 under the Expressway adjacent to the National Theater. Here the existing trapezoidal channel has an invert higher than upstream drainage works which results in flooding and desilting of upstream works (e.g. City Way) carried out under the project. The WBAPD is seeking to install a parallel concrete channel with a lower invert which will act as the dry weather channel, allowing the trapezoidal channel to act as a storm overflow, which should largely relieve the upstream problems. Although there are insufficient funds left under the Credit to fund this work the mission urges the LASG/WBAPD to carry out the works as soon as possible with the Project's remaining counterpart funds. b) Drainage Maintenance 16. Primary, secondary and tertiary drainage maintenance contracts are now completed (contract amounts fully utilized), although drains, particularly the many tertiary drains across the city, were still in critical need of maintenance, which is the responsibility of local government. This issue, and possible initiatives to address it have been discussed in previous Aides-Memoire. At present the consensus of the N fBAPD and mission is that maintenance under contract is considerably more cost effective than by direct labor and the mission encourages MEPP to continue with this initiative. The mission looks forward to the analysis and recommendations to be made with rega.d to drain maintenance in the Study for Updating and Expansion of the Drainage Development Plan for Greater Lagos presently underway (see below). c) Updating and Expansion of Drainage Development Plan for Greater Lagos 17. The study appears to be progressing satisfactorily although it has been found that the original study area required significant expansion if all drainage requirements in the built up areas of Greater Lagos were to be covered. With regard to the expansion of 'the original area and the time and cost implications for the consultants, the WBAPD issued a letter to the Bank via the mission requesting its no objection to increasing thle scope and cost of the consultants contract to cover this. The mission agreed that it would ensure the Bank consider the request and issue an appropriate "no objection" by September 10th, 1998. 18. The mission received the Inception Report of the Consultants dated July 1998. The mission reviewed the report which it considers generally satisfactory. However it has the following comments. It was agreed that WBAPD would pass the comments on to 5 the consultants for consideration/incorporation in their work program and reporting. The comments are primarily concerned with the drain maintenance analysis to be carried out as included in the TOR. As part of their study findings it would be useful, and is suggested, that the consultants: * review the bid documentation used for drain maintenance contracts under the Project and propose improvements (e.g. more flexible "schedule of rates/term" contracts would seem more appropriate then the standard civil works contract type used which lead to full utilization of contract amounts before drainage lengths included were fully maintained ); * spend less time in assessing the capacity of the private sector which is already fairly well-known following the experience gleaned under the project; * assess funding options and realistic possibilities for funding drain maintenance both for primary and secondary drains by LASG and tertiary drains by LGAs or possibly LASG; * identify opportunities and constraints of current legislation and responsibilities for drain maintenance and make suggestions on realistic cost recovery mechanisms; * suggest possibilities for greater involvement of the private sector and of communities in drain maintenance and define necessary modalities. d) Lagos Waste Management Authority (LAVWMA) Component 19. Considerable progress had been made since the previous mission on moving the solid waste component forward. The mission was particularly pleased with progress on the vehicle rehabilitation initiative, using a private contractor, and in the physical progress in converting the old (never commissioned) Simpson Street Incinerator into a transfer station. A summary of progress on the LAWMA components is as follows. a) The contract for the supply of solid waste equipment for landfill operations (payloader and bulldozer) had not yet been completed. However it was understood from the supplier that the payloader had arrived at port and should be with LAWMA within a maximum of two weeks and the bulldozer should arrive Lagos by 20th September. b) Under the contract for vehicle rehabilitation and maintenance it was understood th,at of the 30 trucks to be rehabilitated 25 had been completed and were being used by LAWMA and the remaining 5 would be delivered by early October. However the 6 mechanical loaders included for rehabilitation under the contract had proved to be beyond economical repair and the mission agreed in principle to the procurement of two new mechanical loaders provided the original budgeted amount for rehabilitation of the 6 was not exceeded. c) The contract for re-establishing a MIS at LAWMA. was said to be 60% complete and the computers and server were shortly to be installed. All software had been developed. 6 d) The construction of a transfer station at the Simpson Street Incinerator Site was about 85% complete. One bulk carrier vehicle had already been delivered and the second would be delivered within two weeks. The conversion of two other prime movers to haul trailers was underway as was fabrication of the trailers. The mission visited the transfer station and was pleased with the progress and quality of works which should be completed by early October. 20. LAWMA was said now to have only 72 collection vehicles operational (120 vehicles in March 1998) and this figure had dropped to 33 in May because, according to LAWMA, of funding constraints. Currently LAWMA was supposed to receive N 8 million for providing service to LGAs (paid by LASG from LGA allocations) but rarely received the maximum; N2 million from LASG for services (streetsweeping) rendered to LASG and it generated about N 5 million internally (primarily commercial and industrial service). Thus monthly revenue was approximately N 25 million. However LAWMA's costs were, with all refurbished vehicles operating likely to be in the order of N 33 million, a shortfall of N 18 million. LAWMA was presently discussing with LASG how this shortfall was to be funded. e) Urban Upgrading Component 21. The mission visited the site of the demonstration project in Badia for which the contract for infrastructure improvement and public facilities provision was now approximately 90% complete. The mission was pleased to learn that the water supply to the facilities had now been provided and underground cabling to streetlights had proved possible and was completed. The dramatic improvement to the area since completion of the roads and drains has also resulted in much activity by the residents themselves in improving their dwellings. The clinic is completed, and is shortly to be handed over to the LGA for the area, as is the primary school which is to be handed over to the Primary Education Board. The public washing and toilet facilities are to operated by private individuals under agreement to LASURB who would charge the operators a nominal rent and monitor the operation and maintenance of the facilities. LASURB was shortly to receive offers from such operators. The operators appointed are to charge user fees and be responsible for payment of water and electricity bills and for operation and minor maintenance of the facilities under an operating agreement with LASURB. Whereas the mission was pleased with the effects created by the demonstration project, as are the local residents in the area based on a recent newspaper report, there are defects in the works that require to be addressed. These were outlined to LASURB/WBAPD construction supervisors and the contractors and are: * repairing of bituminous surfacing where it had been damaged by other utilities or poorly surfaced by the contractor; * cutting of slots in top of concrete drains where proud of road surface to pernit drainage of the roads; * completing of minor works to public facilities where workmanship was, in places, of poor quality; 7 * laying of shingle or concrete paving to the yards of the primary school and of the health center to avoid the areas becoming waterlogged in times of heavy rains; * installing of remaining lanterns to streetlights and the energizing of the system. The mission recommends LASURB/WBAPD ensure that defects are properly and speedily addressed by the contractors and works are subsequently maintained by the relevant bodies. The inclusion of an expanded upgrading component in any possible future Bank-supported project for Lagos would involve close scrutiny of the infrastructure provided in the demonstration project and efforts made by LASG to ensure its sustainability. f) Land Information System. 22. The mission met with the Survey Directorate staff in the new LISSU building renovated under the project and now occupied and in use. It was pleased to learn that LISSU had provided maps to the consultants carrying out the Greater Lagos Drainage Study but was disappointed to find that: * on arrival there was no power and the standby generator was not, initially, operating because of lack of fuel and/or a flat battery; * the computer software had still not been debugged by the consultants, the position as at the time of the March mission; * apparent network problems were affecting communications between computers and the large map printer such that a map requested could not be printed; * no maintenance agreement with a local contractor to maintain the system was yet arranged. * little progress appeared to have been made in expanding the original demonstration area or on inputting utility information (e.g. LSWC water mains information) within the pilot area. 23. The mission stressed the need for the above issues to be addressed urgently if the LRIS was to be sustained and was to prove a useful tool for other Directorates as well as generating some revenues for LASG. g) Sewerage and Sanitation 24. Progress on three of the four sub-components of the sewerage and sanitation component of the project has been completed. The mission visited the LASEPA laboratory to inspect the equipment provided under the project, some of which was, being used although some was still requiring calibration. The mission recommended LASEPA to arrange calibration by the suppliers or, failing this, contact Lagos University for assistance. 25. Consultants (Messrs. Haskoning) working on the main sewerage study had recently requested an extension to enable them to complete bid documents for wor]ks in the four sewerage districts studied. This request was submitted to the mission for review. 8 The requirement for the extension was said to be primarily due to the delay in getting clearance for the land for sites for discharge stations and septage treatment facilities. A team had recently been formed to agree sites and to plan the next steps and it had recently produced a report on the sites required. The mission considered this a very positive step initiated by the Sewerage Department. The Department had also initiated the drafting of an Edict which would set up a Sewage Board the establishment of which would be an attempt to move provision of sewerage/sewage treatment towards more private sector involvement. A copy of the Edict was given to the mission for information. 26. The mission was apprised of the Department's current efforts under its own auspices to invite proposals for the construction of a septage treatment facility in the Ikeja District (to be incorporated in the plan for the district prepared by Messrs. Haskoning). The department hoped to get a detailed bid in from a private investor to construct and operate the facility in the near future. It was agreed that the Bank would be kept informed of progress on this initiative. 27. The consultants had prepared bid documents for one sewerage district to date which the mission was given sight of. The draft documents appeared generally to be in order although were based on standard FIDIC documentation (as called for in the TOR) which implied that works would be carried out in the traditional manner of client and civil works contractor. This may be the case but it was LASG's intention to try to attract private investors in a BOO or BOOT arrangement in which case the documentation might require modification. This being so, the mission cautioned the Departmnent against requiring the consultant to produce numerous copies of document packages of which there are some 20 packages each consisting of 5 or more volumes. The total approximate estimate of cost of the proposed works in the four districts was US$ 100 million at today's costs. It was likely that packages, and volumes within them, would need amendment in any event before any tendering process was proceeded with as at this stage no financing for the proposals was available or in sight. With regard to possible financing the mission urged LASG to apprise other donors of the proposals prepared. Concerning proposed designs, the mission recommends that the consultants obtain specialist advice on whether designs include adequate sewer ventilation and protection of concrete pipes against corrosion. 28. The consultants had prepared possible options for implementation including cost recovery arrangements which were critical to the success and sustainability of any option. The mission urges the LASG to give serious consideration to the need for generating and earmarking funds for sewerage/sanitation in Lagos as well as to how the private sector may be encouraged to participate in both financing of capital costs and in system management, operation and maintenance. Efforts by the LASG in this direction would be necessary if the Bank was to consider any future involvement in a major program to implement a sewerage and sanitation program for Lagos. 9 g) Revenue Generation 29. The mission visited LSVO and witnessed the team of consultants carrying out the valuation data entry exercise for the two pilot LGAs (Ikeja and Lagos Island). A total of 16 work-stations were set up and consultant staff were working in shifts in an effort to complete data entry such that bills for tenement rates could be generated and delivered by January 1999. The consultants (Messrs. Multiconsult) contract had been extended from June 30, 1998 until December 31, 1998 to achieve this. Whilst this progress was pleasing the mission was disappointed that none of the actions agreed during the previous mission appeared to have been completed namely; * transfer of one senior staff from the State Computer Center to the LSVO; * recruitment of counterpart computer staff; * allocation of additional funds for efficient LSVO functioning; * entering into of maintenance contracts to ensure the hardware is maintained as initial warranty periods expire. 30. The mission was informed that LSVO hoped to engage a number of the present consultants temporary staff who were currently entering data although providing salary and terms and conditions packages sufficiently attractive to such staff may be difficult. The mission stressed the need for LASG/ILSVO to: (a) engage adequate numbers of counterpart staff as soon as possible; (b) arrange a hardware (and software) maintenance contract as soon as possible; (c) ensure adequate funding for LSVO is included in the 1999 budget. These actions are important if the hard-won gains made to date at LSVO were not soon to be lost. h) Training 31. This component is substantially complete and remaining budget committed. The remaining long term trainees are about to complete their courses and return to Lagos and only short term procurement courses for two engineering staff and a public-private partnership course to be attended by the Director of the Sewerage Department and the Project Manager are to embarked upon overseas. Local short terms courses for secretaries' and accounts staff have been agreed and are also shortly to be embarked upon. No further training course are to be considered under the project as the budget for the training component of the Project is now exhausted. Project Finalization 32. Engr. Metibaiye and consultant Wole Komalafe will commence preparation of the Implementation Completion Report (ICR) for the project during October 1998 and would have a draft ready during May 1998. MEPP is required under the Credit to contribute its own evaluation of the project, including its own and the Bank's performance. This shouldL not exceed ten pages, or be accompanied by a ten page summary if longer, and should also be available by end of May. MEPP should also complete evaluation of the real 10 benefits of the project, including areas where flooding has been eliminated and increased land values, reduced transport and road maintenance costs (for comparison with the economic evaluation in the SAR). A final short mission will be held in March/April 1999 to conclude the project and to complete the operational plan as required for the ICR. Financing of Incomplete Components 33. Several items which might normally be financed by extension of contracts under the project will not be financed due to full commitment of the Credit. These include the dry weather channel for System 4 near the National Theater (see para. 15), full duration of LAWMA equipment maintenance contracts, and furnishing of community facilities in Badia under the LASURB component. MEPP should consider extending the present arrangement of deduction of counterpart funds at source beyond the end of 1998 to permit these needs to be financed under the project. David Henley, Water and Urban Group 2, (AFTU2), World Bank. Lagos September 8, 1998 11 12 BORROWER'S CONTRIBUTION 1.0 DRAINAGE Under the LDSP, the following drainage channels were constructed, to complete the initial investment in the Lagos Solid Waste and Stormwater. These were: (i) Lagos Island Priority I Works (ii) Apapa Priority I Works (iii) Luth/City Way Channel (iv) Oshodi/Isolo Drainage Channel M Surulere System 5 Phase I drainage channel (vi) Surulere System 5 Phase 11 drainage channel In addition the maintenance/cleaning of the Primary channels and the Secondary/tertiary drains (on Local Government basis) was carried out. The Drainage Master Plan for Greater Lagos was also completed. The Drainage Department will continue with the maintenance of Drainage channels following the format already in use in the LSDP. The Direct Labour Operations would also compliment this effort with the cleaning of the tertiary Drains. In addition the department has rehabilitated its amphibious dredger and other equipment to enhance the Direct Labour Operations on the primary channel. Future Operation With the completion of the Greater Lagos Master Plan, the Department intends to follow the recommendations of the report and commence with the construction of the identified drainage system in order of priority. The master plan would also be used to monitor the right of way of Natural water way, control encroachment on drainage alignments etc. Computerization of the department (GIS) for linkage with LRIS information is paramount on the desired improvement and monitoring of the Direct Labour Operations. 2.0 SOLIDWASTE (LAWMA) As part of the proceeds of the LDSP, LAWMA was able to Rehabilitate some of its vehicles (20 Iveco Trucks, 10 Styre Tippers and 6 Fiats -allio Pay Loaders), constructed a Transfer Loading Station at Simpson to enhance the waste collection and turn around time of cqllection vehicles from Lagos Island, Etti-Osaa and Ibeju Lekki, and procured equipment for the Olusosun Sanitary Landfill and established Management Information System (MIS) data base to evaluate and/enhance operational performance. With the rehabilitation of the vehicles, LAWMA has improved on the waste collection and for the first time the Olusosun Landfill Site is being operated as a true sanitary landfill. In order to sustain the success of these achievements and maintenance of the plants and vehicles LAWMA is expanding its internally generated revenue. The Authority intends to increase its industrial clients form 815 to 1,500 there by increasing the monthly revenue from N6.Om to N 10. Om. Tariff paid by these clients are to be reviewed by about 40%. -2- Recovery of outstanding debts owed LAWMA for services rendered amounting to about N45m will be vigorously pursued. It is hoped that with introduction of Private Sector Participation (PSP) on waste collection, it will reduce the burden on LAWMA on domestic waste collection/discharge and enhance their revenue by charging user fees for the Landfill services. The amount to be charged is yet to be concluded , but likely charges would be based on the volume or weight of waste being disposed by the PSP agents. With the newly procured bulldozer under the current LDSP, the Authority has commenced sanitary landfill operations with the use of cover materials at the end of the day's operation. Underground water in the area is being monitored through wells dug around the site. As a follow-up to World Bank investment, the State Government has given LAWMA an additional N250m for the mainternance of vehicles. The State Government has also increased LAWMA's subvention from N2m to N [Om monthly. Future Operations Following the success of the Olusosun Landfill, LAWMA proposes to construct and develop more sanitary Landfills, and embark on waste to wealth operations at the landfill to improve the revenue base of the organisation such as recycling and composting. There is need to improve the MIS and replace the old vehicles, plants and equipment. 3.0 URBAN UPGRADING The Badia-Olojowon Demonstration Project was implemented as part of the LSDP component. Facilities needed within the community i.e., school, health centre, public utilities, road etc. were constructed to upgrade the living standards of the people. Upon completion, the Health Centre and school were fully equipped by the State Government for effective utilisation and handed over to the Health Deparnment in the Apapa Local Governm ent, and Primary School Education Board who would be responsible for operation and maintaining the two facilities. The Local Government are also responsible for the maintenance of the drains and roads. The public facilities were handed over to the CDA and fees paid by members of the Community will be used to maintain the facilities. Charges are as follows, W.C. / squatting plate N5.00 per use, shower N5. 00 per use, laundry N 1. 00 per cloth and water fountain N 1. 00 per bucket. Expected revenue from these charges is estimated at about N36,000.00 per week. This is to be collected by the CDA and used for the payment of staff salaries and maintenance of the facilities. In additional a Technical Monitoring group made up of representatives of the CDA, Urban Renewal Board and other Government agencies involved in the maintenance of facilities has been established to continuously monitor of the project. -3- Future Operations With the lessons learnt and success recorded in the Badia-Olojowon Demonstration Project, the Boards intend to carry out similar projects in Makoko, Ajegunle and Ojo Extension with direct/indirect ffinding. Establishment of a Management Information System database to assist the Monitoring Group and continuos training of staff to enhance productivity. 4.0 SANITATION 4.1 SEWAGE The primary objective of the component generally is to improve the sewerage systems in Lagos Metropolis through the construction of sewage network and sewerage system within four priority areas namely, Ikeja, Apapa, Lagos Island, and Ikoyi, Victoria - Island, Lekki as identified/recommended in the Lagos Sewerage and Sanitation Works -Phase 11 Feasibility Studies and Detailed Design. To complement the Sewerage study, the Willingness to pay Studies and Inventory/ Performance Evaluation of existing Sewage Plants and were conducted. With regards to the above gains and success, arrangement have been instituted to acquire sufficient land space for the execution/construction of the designed sewage network. In addition, construction of septage treatment plants in two strategic locations are been considered as a stopgap between septic tank and full blown water treatment system and as a form of encouraging private participation. Arrangements are on stream presently towards ensuring continuous usage by Vacuum Truck Operators. The requisite laws have been concluded, go also the baiit public enlightenment campaigns; these would ensure the necessary enabling Environment-User fee of between N1,500 and N3,500 will be charged per trip depending on the size of the vehicle. Future Operation Arrangement is on stream presently towards ensuring continuous usage by Vacuum Truck Operators. The requisite laws have also been concluded as well as the all the necessary campaign to sensitise the public for acceptance. Since the completion of the feasibility studies and Detailed designs, while realising the funds requirement for the implementation of this project, implementation strategies for the execution of the designs had been proposed either through external financing directly or indirectly, i.e., Private Sector Participation (PSP) or Concession. 4.2 LASEPA The main objective of this component was the production of Industrial Database and maps, and the procurement of Laboratory equipment, glassware and chemicals. Included on the industrial data map was identification of trade effluent points, location of industries, pollution load of rivers and streams and the constituent of trade effluent points, location of industries, pollution load of rivers and streams and the constituent of trade effluent. Amongst the equipment procured are the Gas Liquid Chromatogram (GLC) monitoring equipment, Atomic Absorption spectrometer and incubators. A maintenance programme has also been drawn up to keep the equipment in good condition. Cost of maintenance is presently being covered from the budgetary allocation accruing from the State Environmental fees for laboratory services and levies. -4- For failing to comply with the provisions in the State Environmental Edict. a fine of N I .Om is usually charged from the companies and for individuals a fine of N500, 000.00 is charged. In addition a fine of N2Q00, cG0.00 is chaiged for obstructing the Agency an access to perform its duty. With `ie use of the industrial data map, the Agency has been able to monitor and enforce effluent limitation, standards and guidelines. The State Government has also developed an elaborate monitoring programme fmr the, following: 1. Maajor and miniwater works: The 13 mini and major water works are monitored 3 times VekI'v for phvsical, chemical, biochemical, microbiological etc paramneters 2. Rivers and streams: The receiving waters are sampled 3 times weekly. 3. Landfill sites - The dumpsites being the major source of groundwater pollution are sampled tivice wveekly 4. Ai` aoid noie pollution monitoni+ Thene are asgesged during the Industrial assessmentvislts tnmeSe a wveek. In addition to the above the general state of the environment is assessed by regularly visiting the 20 local Futui),re Operations irn order to eft4sctveIy, monitor the State of Environment, the Agency plans to put in place zonal offices. orocrce more advance and sensitive Laboratory equipment and train its staff on current technologaiesiecuiloment. 5.0 Land Related Iiformation System (LRIS) The '(LTS' is a Comrlputer based system for handling spatial information. The concept of LRIS have been identified as a response to user needs, principally on the problems of data sharing. The ob ectives are to manage land administration, surveying, planning and taxation. They have a system of automated mapping and infrastructure and utlities planning, design and management'. The maintenance and sustainability has commenced on data collection for remaining portion of the 40sq. kin. of the LRS. Pilot project area beyond. The purpose of this exercise is for LISSU to support the Land UJse and Allocation Committee and Land Services Directorate in generating demand notices for respective ground rents -7-fr the year 2000 and beyond. Estimated revenue fI-om the sale of analogue and digital data to users is in the region of N 1 Om per annum. In addition, the State Government in the recent years has made budgetary provisions for currert and capital expenditures fort,he sustenance of the system. Iut),inu,e Operations The Map-data base on the orthophoto map covering about 500 sq. km. ((metropolitan Lagos) made from V7 978/88 aerial photographs does not cover the entire Lagos State and it outdated (11/12 years old). Hence fhere Xs need for the State Government to produce current aerial photographs of the entire State and new Ortho photo maps. -5- In the light of the above, it would be necessary to acquire the digital image processing equipment to produce ortho photo maps and imagery maps. This equipment include: 1. pcl. software (ortho engine) 2. High resolution scanner (2000 dpi) 3. Vector/raster conversion software. 4. Workstation with two monitors- 30 Giga Bytes of HD and 200 MB Ram. Immediate upgrading of the existing Hardware/software with additional computers and accessories are necessary. In order to consolidate the above, wide Area Networking is needed to allow the secondary user access to the information at LISSU. Training and Re-training is highly essential and requires a sizeable number of specialist with broad experience and knowledge for both long and short terms period. The LRIS as established have a system of automated mapping and infrastructure and utilities planning, design and management. The State Government has first concluded a programme of maintaining the system for effect yield especially on the data collection for the remaining portion of the 4Osq.km (Pilot Scheme) of the LRIS which is geared towards the generations of the required demand notices for land charges. 6.0 LAGOS STATE VALUATION OFFICE LSVO, was identified as a major component on revenue generation in the state, hence, it was provided for in the Lagos Drainage Sanitation Project (CR 2517 UNI). Its primary functions is to computerize Lagos State Valuation Office. The office has been fully furnished and now functional with the procurement of compliments such as vehicles and generator. This has facilitated in no small measure the success being recorded on the data capture especially for the 2 Local Governments on Pilot Scheme. With these gains, the LSVO, has the plan to maintain and sustain the equipment, computers and the accessories through continuous training and provision of adequate funding in budgetary allocation, especially from its allocation o0n1 the Tenement rates. The State is also disposed to the provision of funds for the software license yearly renewal annually. Future Operation Extension of computerization to the remaining 18 Local Government. 44<1 Z~~~~~BIRN EBBI,1 - t > i \ r IS MAIDUGURI DAMkATU RUT KA'D J NIA\ Kamp ) (_J -A UN iI II /' ' Ko r --, ,,,. . , KUNA .,iiU ! - --, J / t g <1tf 14 3BAUCHI / 2 t tlult'vi-RJ l Xt 20/ K. _ -J r _ r ~~~~~~~~~~~~~~~MINNA A ,St <)-A-J 0 .\|fv\i&W1k KVA&A ' AUJA ---'- 'I ' GP TEAU JALI-N \GO ( ILORIN FC) Ar.JA CYSHOGBO7--~ -1 AKURE K GI '~~~~~~~~~'~~~~ET, ~~TA P.A BA NIGERIA I t BADAN 3~ 0 - S UJ N X - , aMAKURDI 1A\, t s < t IEI 'f )>) ( AKURE BX E BENUEJ E ADMINISTRATIVE ABEOKUT NDO EDO DIVISIONS - _ G (Ll g /J|N,dt ENU U BR I ~4 ( B,jN 3 (® ENUGU The boundanes, colors, LAGOS IT'Y denominations and any ' STATE BOUNDARIES other information shown on this map do not MALlU9 NIGER MUAH imply, on the part of ® STATE CAPITALS -_ NIGER ERRIJD S EA M CROSS The World Bank Group, DU", F _ CHAT ® RIVER any judgment on the legal FASO ~~~~~~~~DELTA stotaIs of otsy territory, NATIONAL CAPITAL NIGERIA ~~~~~~~~~~ CALABAJ( ~~~~~~~~~or any endorsement XsAOf ;)2 NIGERIAX -) ByA or acceptance of stich MAJOR RIVERS CETRAL AFRICAN ® e$boundaries. 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