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Rift Valley Water Supply and Sanitation Project

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Rift Valley Water Supply and Sanitation Project AFRICAN DEVELOPMENT FUND Language: English Original: English REPUBLIC OF KENYA RIFT VALLEY WATER SUPPLY AND SANITATION PROJECT APPRAISAL REPORT INFRASTRUCTURE DEPARTMENT ONIN NORTH, EAST AND SOUTH REGIONS SCCD: N.G. TABLE OF CONTENTS Page PROJECT INFORMATION SHEET, CURRENCY AND MEASURES, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS, BASIC DATA SHEET, PROJECT LOGICAL FRAMEWORK, and EXECUTIVE SUMMARY (i-ix) 1. ORIGIN AND HISTORY OF THE PROJECT 1 2. THE WATER SECTOR 1 3. THE WATER SUPPLY AND SANITATION SUB-SECTOR 5 4. THE PROJECT 9 4.1 Project Concept and Rationale 9 4.2 Project Area and Project Beneficiaries 10 4.3 Strategic Context 12 4.4 Sector Goal and Project Objective 13 4.5 Project Description 14 4.6 Production, Market and Prices 16 4.7 Environmental Impact 18 4.8 Social Impacts 19 4.9 Project Costs 20 4.10 Sources of Finance 21 5. PROJECT IMPLEMENTATION 22 5.1 Executing Agency 22 5.2 Institutional Arrangements 22 5.3 Supervision and Implementation Schedules 22 5.4 Procurement Arrangements 23 5.5 Disbursement Arrangements 25 5.6 Monitoring and Evaluation 26 5.7 Financial Reporting and Auditing 26 5.8 Aid Co-ordination 26 6. PROJECT SUSTAINABILITY AND RISKS 27 6.1 Recurrent Costs 27 6.2 Project Sustainability 27 6.3 Critical Risks and Mitigating Measures 28 7. PROJECT BENEFITS 28 7.1 Financial Analysis 28 7.2 Economic Benefits 29 7.3 Sensitivity Analysis 29 7.4 Social Impact Analysis 30 8. CONCLUSIONS AND RECOMMENDATIONS 30 8.1 Conclusions 30 8.2 Recommendations 30 LIST OF TABLES Table 3.1 Summary of RVWSB Projected Financial Statements Table 4.1 Incidence of Water Related Diseases in Nakuru Table 4.2 Water Demand Projections in Nakuru District Table 4.3(a) Schedule of Proposed Tariffs Table 4.3(b) Estimated Monthly Expenditure on Water Table 4.4 Project Cost Estimates by Component Table 4.5 Project Cost Estimates by Category of Expenditure Table 4.6 Financing Plan by Source of Finance Table 4.7 Financing Plan by Source of Financing for Grant Financed Activities Table 5.1 Expenditure Schedule by Component Table 5.2 Expenditure Schedule by Source of Finance Table 5.3 Procurement Table LIST OF ANNEXES Number of pages Annex 1 Map of Kenya showing Project Area Showing 1 Water Services Board Areas Annex 2 Bank Group Operations in Kenya 1 Annex 3 Organisational Structure of RVWSB 1 Annex 4 RVWSB: Projected Financial Statements 2 Annex 5 Urban Water Schemes under the RVWSB 1 Annex 6 Environmental and Social Management Plan Summary 3 Annex 7 Detailed Cost Estimates 1 Annex 8 Categories of Expenditure 1 Annex 9 Institutional Framework for Project Implementation 1 Annex 10 Implementation Schedule 1 Annex 11 Computation of FIRR 2 Annex 12 Computation of EIRR 1 Annex 13 Chronology of Preparation and Appraisal Activities 1 This Appraisal Report was prepared by Messrs. Sering Jallow, Principal Sanitary Engineer (Ext. 2334), Lamin Barrow, Senior Financial Analyst (Ext. 2592), Daniel Lekoetje, Senior Public Utilities Economist (Ext. 2691) and Idrissa Samba, Senior Environmentalist (Ext. 2657) following a mission to Kenya in December 2003 and a follow up mission in March 2004. All enquiries should be addressed to Mr. Kordje Bedoumra, Director, ONIN (Ext. 2040) or Mr. N. Matondo Fundani, Manager, ONIN.2 (Ext. 2191). i AFRICAN DEVELOPMENT FUND BP 323 Tunis Belvedere, Tunisia Tel: (216) 71102191 Fax: (216) 71333680 PROJECT INFORMATION This information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by Boards of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Borrower 1. COUNTRY : Kenya 2. NAME OF PROJECT : Rift Valley Water Supply and Sanitation Project 3. LOCATION : Urban and rural centres within the Rift Valley 4. BORROWER : Republic of Kenya 5. EXECUTING AGENCY : Rift Valley Water Services Board P.O. Box 30521 Tel: +254 20 2716103 Fax: +254 20 2727622 6. PROJECT DESCRIPTION : Project components: A) Institutional Support to Rift Valley Water Services Board (RVWSB) and Nakuru Water and Sanitation Services Company (NAWASSCO) B) Water and Sanitation Improvements in Nakuru: Development of Olobanita wellfield with capacity of 15,000 m3/day; Rehabilitation of existing sources to restore capacity from 30,000 to 40,000 m3/day, rehabilitation of water distribution, sewerage and stormwater drainage systems; reduction of unaccounted for water and water wastage; provision of 15000 consumer meters, a meter test bench and meter repair kits, tools and equipment for operation and maintenance; provision of 106 public water kiosks, communal and public latrines for low-income peri-urban areas; conduct public awareness campaigns on water, health, gender and other cross- cutting issues. C) Water and Sanitation Improvements in Small towns in Rift Valley: Study and implement feasible management options and short-term investment needs for the towns. ii D) Develop and implement a rural water supply and sanitation programme based on the demand responsive approach. 7. TOTAL PROJECT COST : UA 21.21 million Foreign component UA 11.87 million Local component UA 9.34 million 8. BANK GROUP FINANCING ADF LOAN : UA 13.04 million ADF GRANT : UA 5.02 million 9. OTHER SOURCES OF FINANCE GOVERNMENT : UA 3.01 million Communities : UA 0.14 million 10. DATE OF APPROVAL June 2004 11. ESTIMATED START DATE AND DURATION : January 2005, 42 Months 12. PROCUREMENT In accordance with the Bank's Rules of Procedure for goods, works and services. Civil works: International Competitive bidding (ICB) for Olobanita wellfield, water transfer pipeline, and rehabilitation of existing sources, and National Competitive Bidding (NCB) for rehabilitation of distribution system, institutional strengthening, sanitation improvements, peri-urban services, rehabilitation of schemes of other towns, rural water supply. Goods: By International shopping (IS) and National Shopping (NS). Consultancy services: Short-listing for all studies, institutional support to RVWSB and NAWASSCO, supervision and audits. 13. CONSULTANCY SERVICES Needed for management options and investments study for secondary towns, for rural water supply programme, Technical Assistance to RVWSB and NAWASSCO, performance and project audits, and supervision of works. iii EQUIVALENTS AND ABBREVIATIONS CURRENCY EQUIVALENTS (December 2003) 1 UA = USD 1.43958 1 UA = KES 105.606 WEIGHTS AND MEASURES l/c/d = litres per capita per day m3 = cubic metre m3/d = cubic metre per day Mm3 = million cubic metres Km = kilometres LIST OF ABBREVIATIONS ADF = African Development Fund AFD = Agence Française de Développement CAAC = Catchment Area Advisory Committee CBO = Community Based Organisation EIA = Environmental Impact Assessment EIRR = Economic Internal Rate of Return ESMP = Environmental and Social Management Plan FINIDA = Finnish International Development Agency FIRR = Financial Internal Rate of Return GOK = Government of Kenya ICB = International Competitive Bidding JICA = Japan International Cooperation Agency LA = Local Authority LCA = Local Currency Account MCN = Municipal Council of Nakuru MOA = Ministry of Agriculture MOF = Ministry of Finance MOH = Ministry of Health MOLG = Ministry of Local Government MWRMD = Ministry of Water Resources Management and Development NAWASSCO = Nakuru Water Supply and Sanitation Services Company NCB = National Competitive Bidding NCC = Nairobi City Council NEMA = National Environment Management Authority NGO = Non Governmental Organisation NWCPC = National Water Conservation and Pipeline Corporation NWSS = Nakuru Water and Sewerage Services O&M = Operations and Maintenance PID = Project Implementation Document QPR = Quarterly Progress Report RVWSB = Rift Valley Water Services Board SA = Special Account SHG = Self Help Groups SIDA = Swedish International Development Agency TA = Technical Assistance TOR = Terms of Reference UfW = Unaccounted-for-Water WAB = Water Appeals Board WHO = World Health Organization WRMA = Water Resources Management Authority WSP = Water Service Provider WSRB = Water Services Regulatory Board WSRSC = Water Sector Reform Steering Committee WSRS = Water Sector Reform Secretariat WSTF = Water Services Trust Fund iv KENYA: COMPARATIVE SOCIO-ECONOMIC INDICATORS Develo- Develo- Year Kenya Africa ping ped Countries Countries Basic Indicators GNI per capita US $ Area ( '000 Km²) 580 30,061 80,976 54,658 Total Population (millions) 2001 31.3 811.6 4,940.3 1,193.9 800 Urban Population (% of Total) 2001 33.3 38.0 40.4 76.0 600 Population Density (per Km²) 2001 53.9 27.0 61.0 21.9 400 GNI per Capita (US $) 2001 340 671 1,250 25,890 Labor Force Participation - Total (%) 2001 51.7 43.3 … … 200 Labor Force Participation - Female (%) 48.0 35.1 … … 0 2001 1995 1996 1997 1998 1999 2000 2001 Gender -Related Development Index Value 1999 0.512 0.476 0.634 0.916 Human Develop. Index (Rank among 174 countries) 134 n.a. n.a. n.a. 2000 Kenya Africa Popul. Living Below $ 1 a Day (% of Population) 1994 26.5 45.0 32.2 … Demographic Indicators Population Growth Rate - Total (%) 2001 2.0 2.4 1.5 0.2 Population Growth Rate - Urban (%) 2001 4.5 4.1 2.9 0.5 Population < 15 years (%) 2001 42.9 42.4 32.4 18.0 Population >= 65 years (%) 2001 2.9 3.3 5.1 14.3 Population Growth Rate (%) Dependency Ratio (%) 2001 84.4 85.5 61.1 48.3 Sex Ratio (per 100 female) 2001 98.8 99.4 103.3 94.7 3.0 Female Population 15-49 years (% of total population) 2001 24.6 23.6 26.9 25.4 2.5 Life Expectancy at Birth - Total
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