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ReportNo. 991-YU Appraisalof Morava Region Development Project: Water Supply, Sewerage and Water Resources Yugoslavia Public Disclosure Authorized May 3, 1976 EMENAProjects Department FILECOPY FOR OFFICIALUSE ONLY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank This document hasa restricteddistribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosedwithout World Bankauthorization. CURRENCY AND EQUIVALENTS Currency Unit = Dinar (Din) Din 1 = US$ 0.056 US$ 1 = Din 18.0 Din 1 Million = US$ 55,556 US$ 1 Million = Din 18,000,000 WEIGHTS AND MEASURES mm = millimeter (1 millimeter= 0.039 inches) cm = centimeter (1 centimeter= 0.39 inches) m = meter (1 meter = 3.28 feet) km = kilometer (1 kilometer = 0.62 miles) 2 km = square kilometer (1 km2 = 247.1 acres) m3 = cubic meter (1 m3 = 264.2 US gallons) hi3/sec = cubic meter per second ( 1 m3/second = 22.8 million US gallons per day) 1/sec = liter per second (1 1/sec = 0.26 US gallons/sec) ha = hectare ( 1 hectare = 2.4T1 acres) GLOSSARY OF ABBREVIATIONS ICB = InternationalCompetitive Bidding MRC = Morava River Corporation MRWCI = Morava Region Water Community of Interest SWF = Serbian Water Fund SFUR = Serbian Fund for UnderdevelopedRegions (RepublicFund for the Promotion of Developmentof UnderdevelopedRegions) SAS = Social AccountingService UNDP = United Nations DevelopmentProgram FISCAL YEAR January 1 - December 31 for all project beneficiaries FOR OFFICIALUSE ONLY APPRAISAL OF MORAVA REGION DEVELOPMENT PROJECT YUGOSLAVIA TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ..... ............................. ..... i-li I. INTRODUCTION *.1............................. 1 II. THE MORAVA REGION AND ITS WATER RESOURCES ... ....... ... 2 The Region . o.oo .. o ....o...... - ... ,. 2 Water Resources and Regional Development .. .......... 2 Water Resources Planning and Management .....0....... 4 Water Supply and Wastewater Sector .... *...*........... 7 Water Supply and Wastewater Situation in Titovo Uzice and Cacak . .......................... ...... 8 III. THE PROJECT ****** .................*o o.o.***o*o*****..***00** 10 Objectives .....o.oq.............. 0...00...........................0.. 10 Description ....- .....................................10 Status of Engineering ........ .. ............. .. 11 Cost Estimates O..*0.....000.0...0.. E000, 11 Project Financing and Implementation Responsibility.. 13 Implementationof Irrigation Component .............. 16 Implementation of Research Component ................ 17 Implementation of Project Facilities for Titovo Uzice 18 Implementation of Project Facilities for Cacak ...... 20 Training .... .0...0 ..... .0. -. 6006 21 Procurement .....o.*... .o...o.e..*oo.*........*******. 21 Disbursements ... ........ .........o.... 22 Monitoring Criteria ... *............ ....... .... 22 Environmental Aspects .. ...... ....0. ... ...... ...... 23 IV. THE BORROWER AND OTHER BENEFICIARIES AND THEIR FINANCES .. 23 General - ........ o ...................... .... 23 Serbian Water Fund ..... ...0............ .. ............ 23 Bioktos - Titovo Uzice ...........-....... 0.0. 25 Vodovod - Cacak ....o.. oo .... ....*. .......... 28 Serbian Fund for Underdeveloped Regions .......... 32 Audit .... oo .............o.... o..........00........ ....- .0 32 This report was prepared by Messrs. Brian Grover (Sanitary Engineer) and David C. Jones (Financial Analyst), with assistance from Messrs, R.C. Hodges (Consultant) and H. Laeyendecker (Irrigation Engineer). This documenthas a restricteddistribution and may be usedby recipientsonly in the performance of theirofficial di'ties. It contentsmay not otherwisebe disclosedwithout World Bank authorization, TABLE OF CONTENTS (Continued) Page No. V. JUSTIFICATION .......................................... 33 Research Component ................................ 33 Project Facilities for Titovo Uzice and Cacak ..... 34 VI. RECOMMENDATIONS ........................................ 36 TABLE OF CONTENTS (Continued) ANNEXES 1. Chronology of Project Development 2. Documents Consulted 3. The MioravaRegion and Its Water Resources 4. Serbian Water Fund - Organizationand Administration 5. Titovo Uzice - Existing Water Supply and Wastewater Facilities 6. Cacak - Existing Water Supply and Wastewater Facilities 7. Study 1 - Adjustments to Flood Hazards 8. Study 2 - Water Quality in the Zapadna Morava Region 9. Study 3 - Regional Economic Development 10. Titovo Uzice - Project Description 11. Cacak - Project Description 12. Project Cost Estimates 13. Titovo Uzice - ConstructionSchedule 14. Cacak - Construction Schedule 15. Cacak Vodovod - Water Supply Systems Development Study 16. Estimated IBRD Loan Disbursements 17. Key Indicatorsfor Project Monitoring 18. Bioktos - Titovo Uzice Communal Enterprise - Organization and Administration 19. Vodovod - Cacak Water and Wastewater Enterprise - Organization and Administration 20. Serbian Fund for UnderdevelopedRegions 21. Accounting Systems of Bioktos (Titovo Uzice) and Vodovod (Cacak) Communal Enterprises 22. Bioktos - Titovo Uzice - Financial Projections 23. Bioktos - Titovo Uzice - Assumptions for Financial Projections 24. Bioktos - Titovo Uzice - Tariffs 25. Vodovod - Cacak - Financial Projections 26. Vodovod - Cacak - Assumptions for Financial Projections 27. Vodovod - Cacak - Tariffs 28. Bioktos - Titovo Uzice - Projections of Population, Water Sales and Production 29. Vodovod - Cacak - Projections of Population, Water Sales and Production 30. Economic Evaluation 31. Serbian Water Fund - Financial Situation 32. Bioktos - Titovo Uzice Communal Enterprise - Financial Situation 33. Vodovod - Cacak Water and Wastewater Enterprise - Financial Situation 34. Milosevac - IrrigationPilot Project 35. Aleksinac - IrrigationPilot Project MAPS IBRD 11603 - Water Resource Projects in the Morava River Basin IBRD 11639 - Western Morava River Basin IBRD 11637 - Titovo Uzice Water Supply Facilities IBRD 11638 - Titovo Uzice WastewaterFacilities IBRD 11640 - Cacak Water Supply Facilities IBRD 11641 - Cacak Wastewater and Storm Drainage Facilities APPRAISAL OF MORAVA REGION DEVELOPMENT PROJECT YUGOSLAVIA SUMMARY AND CONCLUSIONS i. The Morava River basin in Serbia covers 12% of Yugoslavia'sarea and contains an estimatedpopulation of 3.6 million. Water-relatedproblems have always thwarted the region's economic development. In the past the main problem was the repeated flooding of agriculturallands. This flooding continues,and as the population is increasinglyurbanized and industrialized(mostly in the river valleys) the flood hazard has increased. At the same time problems of urban water supply and water pollution have grown enormously. ii. Serbian water planners began focussing on such problems basin-wide in 1958 and by 1965 had produced a master plan for the regulation of the Morava River flows. Mechanisms were created to generate funds and build structures to implement this plan, but the results of the programs of the first ten years have been disappointing. It is now appreciated that water resource planning must be improved by revising the economic methodology and by broadening the planning objectives so that physical systems to control flows are not the only programs considered. At the same time the institutionalarrangements for man- aging water resourcesare being substantiallyaltered in accordancewith Yugoslavia's 1974 constitutionand the principle of decentralizeddecision- making. Under creation now is the Morava Region Water Communityof Interest, a socio-politicalbody with the mandate to manage the water resources for the benefit of the region. iii. The proposed project is fairly complex because it is intended to support Serbian initiativesto improve the planning and management of water re- sources in the Morava region, while also helping to provide badly needed water and wastewater facilities for two small, industrializedtowns. The research component includes three action-orientedstudies (adjustmentsto flood hazards, water quality improvementand regional development)plus two irrigationpilot projects to demonstrate the effectivenessof low cost supplementaryirrigation. The water supply and wastewater systems will be substantiallyimproved in the towns of Titovo Uzice and Cacak, where industrialwater demands exceed those for domestic use and where the number of people to be served will increase by 70% during the project period. iv. The project costs are estimated to total US$51.4 million equivalent, with an estimated foreign exchange component of US$16.2 million. Interest dur- ing constructionon the proposed Bank loan of US$20.0 million would add a fur- ther US$4.5 million in foreign exchange costs. Thus, the proposed loan would be equivalent to 97% of the project's foreign exchange requirementsincluding - ii - the interest during construction. The various components of the project would be implemented by six different beneficiaries. The Serbian Water Fund would be the borrower and would onlend portions of the Bank loan on Bank terms to all other beneficiaries. All remaining project financing would be provided by the various beneficiaries. v. Some 91% of the project expenditures relate to expansions of the water supply, wastewater and stormwater systems in Titovo Uzice and Cacak, which are expected to be constructed during the period 1976-1979. vi. All procurement would be in accordance with the Bank's Guidelines. Advance contracting on certain critical elements of the
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  • 5 Baseline Conditions

    5 Baseline Conditions

    Morava Corridor Motorway Project Chapter 5: Baseline Conditions 5 BASELINE CONDITIONS This Chapter comprises the collection of baseline data representative of the Study Area covering Area of Influence, which is defined in the following paragraphs, in order to provide a baseline against which the impacts of the Project can be assessed. The baseline takes into account current conditions and those changing conditions (e.g., increasing traffic load on the transportation network and its environmental and social consequences) apparent in the baseline. It takes into consideration other developments in the area which are underway or certain to be initiated in the near future. The baseline description has the following main objectives: to focus on receptors that were identified during scoping phase and further discussed in the ESIA stage as having the potential to be significantly affected by the Project; to describe and where possible quantify their characteristics (nature, condition, quality, extent etc.); to provide data to aid the prediction and evaluation of possible impacts; and to inform judgments about the sensitivity, vulnerability and/or importance of resources/receptors. In the following sections of this Chapter, description of the methodologies (e.g., those applied for ecological surveys meeting the requirements of PS6 of IFC), limitations and results of the data collection, as well as a summary of the baseline conditions are provided. 5.1 Definition of the Area of Influence The Area of Influence (AoI) is an important element in assessing environmental and social impacts of a proposed development since it informs about the physical and/or social extent onto which the assessment should be performed.