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Document of The World Bank £O FOR OFFICIAL USE ONLY CONFIDENTIAL Public Disclosure Authorized Report No. 4633-SL SIERRA LEONE WATER SUPPLY AND SANITATION SECTOR STUDY Public Disclosure Authorized July 7, 1983 Public Disclosure Authorized WHO/IBRD Cooperative Programme Water Supply Division West Africa Projects Department Public Disclosure Authorized 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. REPUBLIC OF SIERRA LEONE Currency Equivalents Currency Unit = Leone (Le.) US$1 = Le 1.25 Le 1 = US$0.8 Measures and Equivalents 1 Kilometer (Km) = 0.62 mile 1 Meter (m) = 3.28 feet 1 cu. m. (m3 ) = 1,000 liters (1) = 220 Imperial Gallons 1 Hectare (Ha) = 2.47 Acres Acronyms and Abbreviations AfDB African Development Bank EEC European Economic Community FCC Freetown City Council GVWC Guma Valley Water Company IADP Integrated Agricultural Development Project IBRD International Bank for Reconstruction and Development IDA International Development Association MAF Ministry of Agriculture and Forestry MDEP Ministry of Development and Economic Planning MEP Ministry of Energy and Power MOF Ministry of Finance MOH Ministry of Health MOW Ministry of Works NAP National Action Plan NDP National Development Plan NWC National Water Council (U.K.) PWC Provincial Water Company RWSU Rural Water Supply Unit (WSD/MEP) SLWC Sierra Leone Water Company WHO World Health Organisation WSD Water Supply Division (Ministry of Energy and Power) F0R OFFICIAL USE ONLY REPUBLIC OF SIERRA LEONE CONFIDENTIAL Water Supply and Sanitation Sector Study Index Page INTRODUCTION ......... ...... e-o.....1 EXECUTIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS. ......... 1 I. COUNTRY AND SECTOR BACKKROUND........o..... 4 Geography and Climate.i.. ... .............. .. 4 Administration and Populationu l a t .....io....... .. 4 Public Heat e... alth. .. .. oo .. .. 5 Economic Backg ound...- .- o.- -o. ...... .. o. 6 Economic Performance.r .... 0 6 National P lanig... n n i ngo*...*ooo. 6 Water Resources ... - ........ .. - . .. 0... 7 Institutional Responsibilities...... .*.... ...... 7 II. SECTOR DEVELOPMENTA ALYSISN.A L Y SI.....S..... 10 Present Service Levels....... .. .o.6.. ... 10 Service Level Targets.e..... .. ... .. .0 ... ... ... 12 The National Action Plan (1981-1990).....-........ 13 Past Sector Investments..o... .o*9ooe. o. ..o .o. 14 NAP Financial Feasibility..as i.. i .y..l i .t . .. 14 Financial Performance & Operations - GVWC. 15 Financial Performance & Operations - WSD ... 19 III. SECTOR DEVELOPMENT PRIORITIES........-.. 22 Introduction (Storm water, Solid Wastes, Sanitation, and M O H ) 22 Water Resources o . 23 Water Supply.p ..... ply . .o. 23 Institutional Developmento. oo...ooo....... ***.... 24 Transitional Aspects.e...t........................ 25 Costs and Income ...... .- ..oo .......... o ... 26 National Water Council. .. o. .i . .. .. .0... l. 26 Future Programme.o.g..... .. ..-0 ..... 00.0. ..0. 28 This report is based on the findings of a combined mission which visited Sierra Leone in April/May 1982, comprising Messrs. Andersen and Aikins-Afful (World Bank), Jackson and Nur (WHO/IBRD CP Geneva) and Willis (Consultant). The team wishes to thank all Government officials and staff of the various agencies and donor organisations, as well as individuals, who contributed candidly and supportively to many discussions held in Sierra Leone. The recommendations of the report were discussed with and supported by the Government in February 1983. '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. REPUBLIC OF SIERRA LEONE List of Annexes Annex 1 Table I - National and Provincial Population Projections Table II - Number of Localities by Size of Population Table III - Population Projections for the 75 Urban Places Annex 2 Registered Cases of Communicable Diseases in 1979 Annex 3 Guma Valley Water Company Organisation Chart Annex 4 Water Suply Division Organisation Chart Annex 5 Details of Water Supply Division's Treated Water Supplies Annex 6 Details of Water Supply Division's Untreated Water Supplies Annex 7 Localities under Study within EEC Water Project Annex 8 Shallow Well Programmes included in Agriculture Projects Annex 9 Scope of Freetown Solid Wastes Project Annex 10 National Action Plan (1980-1990) Annex 11 Water Supply Division Investment Programme 1974-1980 Annex 12 Water Supply and Sanitation Investment Programme 1981-1986 Annex 13 Guma Valley Water Company - Value of Items in Store Annex 14 Guma Valley Water Company - Tariffs Annex 15 Table I - Guma Valley Water Company Balance Sheets Table II - Guma Valley Water Company Revenue Accounts Table III - Guma Valley Water Company Source and Application of Funds Table IV - Guma Valley Water Company Recurrent Expenditure Breakdown Annex 16 Water Supply Division Recurrent Expenditure Annex 17 Water Supply Division Revenue Estimates Annex 18 Water Supply Division Tariffs Annex 19 Water Supply Division Staff Deployment Annex 20 Cost Estimate for New School of Hygiene Annex 21 Some Institutional Reorganisation Options Annex 22 The Sierra Leone Water Company Annex 23 Cost Estimate for Rehabilitation and Provision of Essential Facilities Annex 24 Transitional Arrangements Annex 25 Numerical Comparisons WSD and GVWC Annex 26 National Water Policy and National Water Council List of Naps Map 1 Major River Systems Map 2 Rainfall Map 3 Political Map Map 4 Guma Valley Water Company Supply Area REPUBLIC OF SIERRA LEONE WATER SUPPLY AND SANITATION SECTOR STUDY INTRODUCTION The purpose of this report is to: (i) define the existing operations (engineering, financial and administrative), standards and performance of the sector institutions; (ii) review recent capital investment strategy and the proposed National Action Plan (NAP) for 1981-1990 and to make a preliminary assessment of its implications; and (iii) review the institutional aspects of the sector and make recommendations for its future management. EXECUTIVE SUMMARY, CONCLUSIONS AMD RECOMMENDATIONS E.1 The estimated 1982 population of Sierra Leone is some 3.2 million people of whom approximately 10 percent (over 0.3 million) are served by the Guma Valley Water Company (GVWC). The remainder (nearly 2.9 million) come within the jurisdiction of the Water Supply Division (WSD) of the Ministry of Energy and Power (MEP). About 0.75 million reside in 75 urban areas each having a population in excess of 2,000 people; the remainder (approximately 2.1 million) live in some 17,365 rural localities. E.2 The residents of the GVWC area of supply enjoy a safe and reliable public water supply. The company has the benefit of well-qualified staff in all spheres of management, operations and finance. It pursues effective cost recovery policies through appropriate tariffs and is considered to be financially viable. Its annual accounts are maintained under the historic cost convention and are reasonably up-to-date; they are free from any audit qualification. This performance has been achieved through the substantial autonomy endowed by its legislation and which has been used constructively in meeting the needs of its customers. E.3 On the other hand, the WSD performance reflects all the problems of a Government Department ill-equipped and constrained in all aspects from meeting the needs of its customers. Its management has no vote control over its limited budget for which it relies entirely on Government subvention, as little revenue is billed or collected (which in any case is handed into the Treasury). Its water supply facilities in some 30 urban centres are poorly and irregularly operated due to lack of finance for chemicals, fuel and spares--the basic design philosophy of expensive surface water systems must be seriously questioned. The WSD lacks suitable workshops, depots, stores and office facilities outside of Freetown. It does not have even a bare minimum of vehicles and mobile plant to effectively move men, materials and spares to operational locations. WSD suffers from overmanning at the lower levels and inadequate numbers of appropriately qualified senior staff. Cost recovery is absent and its tariff scale is 15 years old. No accounting, administrative or commercial support systems are in operation and a limited annual budget oriented service only is provided by WSD's parent Ministry. E.4 There is an overwhelming recognition in Sierra Leone that there is a prime and urgent need for improvement in management, organization and financing of water supply arrangements in the areas supplied by WSD, especially the urban areas. This cannot be achieved effectively through the existing WSD and there is unanimous official support for institutional change which is seen as a precursor to any substantial increase in sector investment or donor participation. E.5 The preferred option emerging from the analysis is to create a Sierra Leone Water Company (the SLWC option) having a national mandate, essentially for urban areas and a clear authority to introduce cost recovery through tariffs. Initially, it would take over existing water supplies for the larger provincial urban centers and progressively broaden its coverage to all urban centers. Responsibility for rural water supply operations would remain within the Government. E.6 The details of the SLWC option, and others, are articulated