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World Bank Document Document of The World Bank FOR OMCIAL USE ONLY Public Disclosure Authorized Report No. 4972a-JO Public Disclosure Authorized STAFF APPRAISAL REPORT HASHEMITEKINIDOM OF JORDAN EIGHT CITIFS WATERSUPPLY AND SEWERAGEPROJECT Public Disclosure Authorized April 24, 1984 Public Disclosure Authorized Water Supply and Sewerage Division Europe, Middle East and North Africa Regional Office This document has a restricted distribution sad My be wsedby recipients oly in the performnce of their official duties. Its contents may not oderwise be dislosed withot World Bank authorization. CURRENCYEQUIVALENTS Currency Unit = Jordan Dinar (JD) JD 0.365 = US$ 1.00 1/ JD 1.00 = US$ 2.74 JD 1.00 = 1,000 fils MEASURES AND EQUIVALENTS Kilometer (km) = 0.62 mile Square Kilometer (km2) = 0.386 square mile Hectare (ha) = 2.47 acres Millimeter (mm) = 0.03937 inches Centimeter (cm) = 0.3937 inches Meter (m) = 39.37 inches 3 Cubic Meter (m ) = 264 US Gallons Cubic Meters per second (m3/sec) = 22,800 US Gallons per day Liter (1) = 0.264 US Gallons Liters per second (1/sec) = 22,800 US Gallons per day Liters per capita per day (lcd) = 0.264 US Gallons per capita per day Milligram per liter (mg/l) = 1.0 part per million ABBREVIATIONS AND ACRONYMS AWSA = Amman Water and Sewerage Authority EGMC = East Ghor Main Canal GOJ = Government of Jordan JVA = Jordan Valley Authority KfW = Kreditanstalt fuer Wiederaufbau LRAIC = Long Run Average Incremental Cost NPC = National Planning Council NRA = Natural Resources Authority USAID = United States Agency for International Development WA = Water Authority WSC = Water Supply Corporation ABBREVIATIONS ft = foot min = minute lcd = liters per capita per day ppm = part per million m = meter sec = second 3 In = cubic meters kg = kilogram mm = millimeter gm = gram km = kilometer kw = kilowatt MCM = million cubic meters kwh = kilowatt-hour BODs = five day biochemical oxygen demand GOJ'S AND WA'S FISCAL YEAR JANUARY 1 - DECEMBER 31 I/ as of December 5, 1983 STAFF APPRAISAL REPORT FOR OMlCIAL USE ONLY HASHEMITEKINGDOM OF JORDAN EIGHT CITIES WATER SUPPLY AND SEWERAGE PROJECT TABLE OF CONTENTS Page No. LOAN AND PROJECT SUMMARY .. i-ii THE WATER SUPPLY AND SEWERAGE SECTORS...................... 1 Water Resources............................................ 1 Water Supply............................................... 2 Sewerage................................................... 2 Sector Organization .. 3 IDA/Bank Role in Water Supply and Sewerage . 3 II. PROJECT AREA............................................... S General Features........................................... 5 Existing Water Supply Systems .. 6 Sources of Water Supply .. 7 Existing Wastewater Disposal System ............. 7 Population................................................. 8 Water Demands.............................................. 8 Sewage Flows and Organic Loads .. 9 III. THE PROPOSED PROJECT....................................... 10 Project Objectives .. 10 Project Description........................................ 10 Project Elements........................................... 10 Cost Estimates ....................... 11 Project Financing Plan .. 13 Status of Engineering .. 14 Procurement................................................ 14 Disbursements.............................................. 15 Project Implementation .. 16 Land Acquisition and Access .. 16 Monitoring Criteria .. 16 IV. THE BENEFICIARY............................................ 18 Introduction .. i 8...................... Organization and Management .. 18 Institutional Development .. 19 Staffing................................................... 20 This report is based on the findings of an appraisal mission to Jordan in November/December, 1983. Mission members included John W. Huang, Arun Banerjee and Xavier Legrain. .This document has a restricted distribution and may be used by recipients onlyin the performance of their officialduties. Its contents may not otherwise be disclosed without World Bank authorization. TABLE OF CONTENTS (continued) Page No. IV. (cant.) Training................................................... 20 Billing and Collection .. 21 Accounting................................................. 21 Audit...................................................... 21 Insurance .................................................. 22 V. FINANCE.................................................... 23 Past Performance and Present Position ... 23 Tariff-Cost Recovery...................................... 23 The WA's Sources and Applications of Funds . 24 Future Financial Performance . 25 VI. ECONOMIC AND SOCIAL ASPECTS................................ 26 Health Benefits and Environmental Impact. .................26 Least-Cost Solution . 26 Economic Efficiency of Sector Investments . 26 Affordability.............................................. 27 Institution Building . 27 Risks ...................................................... 27 VII. AGREEMENTS REACHED AND RECOMMENDATIONS..................... 29 ANNEXES 1 Population Projections.30 2 Estimated Household Sizes and Household Incomes.31 3 Details of Existing Water Distribution Systems.32 4 Projected Water Production . .33 5 Projected Sewage Flows . .34 6 Details of Sewer Construction in the Eight Cities............ 35 7 Details of Water Supply Components . .37 7 Details of Sewerage Components . .38 8 Detailed Annual Project Investment... 39 8 Summary of Total Project Investment . .40 8 Cost Elements by Contracts . 41 9 Procurement Tablee.... 42 10 Estimated Schedule of Disbursements . .43 11 Project Implementation Schedule . .44 12 Monitoring Criteria for Water Authority Operations . 45 13 Organization Chart of the Water Authority . .46 TABLE OF CONTENTS (continued) Page No. ANNEXES (cont.) 14 Current Water and Sewerage Tariffs .. 47 15 Assumptinns used in Financial Projections .. 49 15 Income and Expenditure Statement - Project Water Operations....... 51 15 Income and Expenditure Statement - Project Sewerage Operations.... 52 15 Income and Expenditure Statement - Water Authority Consolidated... 53 15 Source and Applications of Funds - Water Authority Consolidated... 54 15 Balance Sheet - Water Authority Consolidated .. 55 15 Test of Financial Covenants.................................-. 56 16 Selected Documents and Data Available in the Project File . 57 MAPS Map No. Water Sources and Supplies to Municipal Systems in Jordan. 17961 Ramtha -- Water Supply Distribution System and Sewerage . .17962 ?Iafraq-- Water Supply Distribution System and Sewerage . .17963 Anjara, Ajloun, Ein Janneh and Kufrinja - Water Supply Distribution System and Sewerage .. 17964 Madaba -- Water Supply Distribution System and Sewerage . .17965 Ma'an -- Water Supply Distribution System and Sewerage . .17966 HASHEMITE KINGDOM OF JORDAN EIGHT CITIES WATER SUPPLY AND SEWERAGE PROJECT LOAN AND PROJECT SUMMARY Borrower: The Hashemite Kingdom of Jordan. Beneficiary: Water Authority. Amount: US$30 million equivalent. Terms: 15 years, including three years of grace, at the standard variable interest rate. Relending Terms: Same as the Bank loan. The WA will bear the foreign exchange risk. Project Description: The project would improve water supply service and provide new sewerage service in the cities of Ramtha, Mafraq, Anjara, Ajloun, Ein Janneh, Kufrinja, Madaba and Ma'an. It would include: (i) construction of about 110 km of trunk and distribution water mains, 8,000 m3 of reservoir storage and supply of water meters; (ii) construction of about 177 km of trunk and collection sewers, 14,000 house laterals, 4 waste stabilization pond systems, an imhoff tank and trickling filter system, one sewage pumping stations and force mains; (iii) supply of operating equipment; and (iv) consultant services for supervising the construction contracts. The project will follow through the institutional development efforts of a previous Bank loan and of the USAID for which adequate funds have been provided. The main beneficiaries of the project would be the low and middle-income families of the eight project cities. The Water Authority (executing agency) has good experience with the construction and operation of water supply and sewerage systems, but has less experience with water and sewage treatment. While there is a risk of delay in construction and of inadequate operation of the sewage treatment plants, this risk is minimized through the use of experienced consultants, progress monitoring, the use of simple treatment processes, and the available institutional development assistance. Estimated Cost*: Local Foreign Total (US$ Millions) -- Water Supply 2.50 5.83 8.33 Sewerage and Sewage Treatment Plant 10.59 20.44 31.03 Meters and equipment 0.07 0.62 0.69 Construction supervision 1.36 2.04 3.40 Land 2.47 - 2.47 Base Cost 16.99 28.93 45.92 Physical Contingencies 1.93 3.98 5.91 Price Contingencies 2.75 4.69 7.44 Total Cost 21.67 37.60 59.27 Interest and other charges during construction - 6.42 6.42 Total Financing Required fi2 Financing Plan Proposed World Bank loan - 30.00 30.00 Government loans and contribution 19.98 14.02 34.00 Funds from operations 1.69 - 1.69 Total Financing ;1.A i.RZ Estimated Disbursements: Bank FY 1984 1985 1986 1987 1988 1989 1990 Annual 0.1 3.6 8.8 9.2 3.9 3.6 0.8 Cumulative 0.1 3.7 12.5 21.7 25.6 29.2 30.0 Rate of Return: Not applicable Staff Appraisal Report: No. 4972a-JO, dated April 24, 1984 * Cost estimates do not include import duties and taxes, from which the project is exempt. STAFF APPRAISAL REPORT HASHEMITEKINGDOM OF JORDAN EIGHT CITIES
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