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African Development Bank African Development Fund AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND Public Disclosure Authorized Disclosure Public BULAWAYO WATER AND SEWERAGE SERVICES IMPROVEMENT PROJECT COUNTRY: ZIMBABWE APPRAISAL REPORT Public Disclosure Authorized Disclosure Public OWAS DEPARTMENT November 2015 TABLE OF CONTENTS SUMMARY ................................................................................................................................................ iii RESULTS- BASED LOGICAL FRAMEWORK ................................................................................... iv I – STRATEGIC THRUST & RATIONALE .............................................................................................. 1 1.1 Project Linkages with Country Strategy and Objectives ............................................................ 1 1.2 Rationale for Bank’s Involvement .............................................................................................. 2 1.3 Donor Coordination .................................................................................................................... 3 II. PROJECT DESCRIPTION ...................................................................................................................... 4 2.1 Detailed Project Components ...................................................................................................... 4 2.2 Technical Solution Retained and Other Alternatives Explored .................................................. 5 2.3 Project Type ................................................................................................................................ 5 2.4 Project Cost and Financing Arrangements .................................................................................. 6 2.5 Project’s Target Area and Population ......................................................................................... 7 2.6 Participatory Process for Project Identification, Design and Implementation ............................ 7 2.7 Bank Group Experience, Lessons Reflected in Project Design .................................................. 8 2.8 Key performance Indicators ........................................................................................................ 9 III – PROJECT FEASIBILITY .................................................................................................................... 9 3.1 Cost benefit analysis ................................................................................................................... 9 3.2 Environmental and Social impacts ............................................................................................ 10 IV – IMPLEMENTATION ........................................................................................................................ 13 4.1 Implementation Arrangements .................................................................................................. 13 4.2 Implementation Schedule .......................................................................................................... 14 4.3 Procurement Arrangement ........................................................................................................ 14 4.4 Financial Management and Disbursement Arrangements ........................................................ 15 4.5 Monitoring and Evaluation ....................................................................................................... 16 4.6 Governance ............................................................................................................................... 17 4.7 Sustainability ............................................................................................................................. 17 4.8 Risk management ...................................................................................................................... 18 4.9 Knowledge building .................................................................................................................. 19 V – LEGAL INSTRUMENTS AND AUTHORITY ................................................................................. 19 5.1 Legal instrument ....................................................................................................................... 19 5.2 Conditions associated with Bank’s intervention ....................................................................... 20 5.3 Compliance with Bank Policies ................................................................................................ 20 VI – RECOMMENDATION...................................................................................................................... 20 Appendix 1 - Map of the Country and Location of the Project Areas Appendix 2 - Status of Bank of Group Activities in Zimbabwe (as of 28th September 2015) Appendix 3 – Zimbabwe’s Comparative Socio-Economic Indicators Appendix 4 – Bank’s Recent Operations in Zimbabwe and Donor Coordination Matrix Appendix 5 – Zimbabwe Project Fragility Assessment (PFAR) Currency Equivalents September 2015 1UA = US Dollar (USD) 1.4038 FISCAL YEAR 1 January – 31 December Acronyms and Abbreviations ADB African Development Bank NAC National Action Committee ADF African Development Fund NCB National Competitive Bidding Australian Government Agency for AusAID NGO Non-Governmental Organization International Development NPP National Procurement Procedures AWF African Water Facility NPV Net Present Value Bulawayo Water and Sewerage Services BWSSIP Improvement Project NRW Non-Revenue Water CoB Bulawayo City Council O&M Operation and Maintenance Bulawayo Water and Sanitation Emergency BOWSER PCR Project Completion Report Response PCN Project Concept Note UK Government - Department for DFID International Development PIT Project Implementation Team CoB City of Bulawayo PFA Project Fragility Assessment EA Executing Agency RAs Residents Associations RMC Regional Member Country EIRR Economic Internal Rate of Return Environmental and Social Assessment SARC Southern Africa Resource Centre ESAP Procedures SAST Southern Area Waste Water Treatment ESMP Environmental and Social Management Plan SME Small and Medium Enterprise FM Financial Management SRF Special Relief Fund GAP Global Action Plan SBD Standard Bidding Document GBAT Gender Budgeting Action Team TSF Transition Support Facility GIS Geographic Information System UA Unit of Account GoZ Government of Zimbabwe UNICEF United Nations Children’s Fund GIZ German International Cooperation Agency VIP Ventilated Improved Pit (latrine) GNU Government of National Unity WSS Water Supply and Sanitation ICB International Competitive Bidding WTP Water Treatment Plant ICT Information, Communication and Technology IWRM Integrated Water Resources Management WWTW Waste Water Treatement Works MDG Millennium Development Goals Urgent Water Supply and Sanitation UWSSRP MDTF Multi Donor Trust Fund Rehabilitation Project Multi Donor Trust Fund Zim- WASH Water and Sanitation & Hygiene MMU FundManagement Unit WHO World Health Organisation MoEWC Ministry of Environment, Water and Climate Zimbabwean Agenda for Sustainable Socio- Zim-Asset Ministry of Local Government, Public Works economic Transformation MoLGPWNH and National Housing Zim-Fund Zimbabwe Multi-Donor Trust Fund MOU Memorandum of Understanding ZIM-REF Zimbabwe Reconstruction Fund MTP Medium Term Plan ZWFO Zimbabwe Field Office MTS Medium Term Strategy N/A Not Applicable i Grant Information Client’s information RECIPIENT: Republic of Zimbabwe Executing Agency: Bulawayo City Council (CoB) Financing plan Source Amount (UA) Instrument million TSF Pillar I 24.00 Grant GoZ 2.66 Counterpart TOTAL COST 26.66 Grant AfDB’s key financing information TSF Pillar I Grant Currency Unit of Account Interest type* N/A Interest rate spread* N/A Commitment fee* N/A Other fees* N/A Tenor N/A Grace period N/A FIRR (base case) 13.90% and NPV US$10.68 million at 10% EIRR (base case) 25.37% (NPV US$ 51.28 million) at 10% *if applicable Timeframe - Main Milestones (expected) Concept Note approval August 2015 Project approval December 2015 Effectiveness January 2016 Completion December 2019 Last Disbursement December 2020 Last repayment N/A ii SUMMARY 1. PROJECT OVERVIEW: The objective of the Bulawayo Water and Sewerage Services Improvement Project (BWSSIP) is to improve municipal water supply and sanitation services contributing to the improvement of the health and social wellbeing of the population of the City of Bulawayo (CoB), the second most populous city in Zimbabwe and a historically important economic center. The project cost is estimated at UA26.66 million of which UA24 million will be the resources from Transition Support Facility (TSF) Pillar I window. The project will be implemented in 48 months from January 2016 until December 2019. 2. The project main outcomes are: improved household access to municipal water supply; reduced environmental pollution from raw sewage, and improved utility efficiency. When completed the project will benefit directly 471,798 people in Bulawayo and of these about 75,000 people previously isolated from basic services will gain access to water supply. In terms of the sanitation intervention, the whole city will benefit from the rehabilitated public latrines, hygiene education and improved maintenance capacity, whereas the intervention on sewer reticulation and treatment works will benefit about 471,798 people living in the affected catchments, thus eliminating health hazard. The beneficiaries in the project area have
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