Madagascar: Grand Sud Rural Drinking Water Supply and Sanitation Project (Rdwss – Adf)

MADAGASCAR: GRAND SUD RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT (RDWSS – ADF)

PROJECT COMPLETION REPORT

July 2011

PROJECT COMPLETION REPORT (PCR) A. PROJECT DATA AND KEY DATES

I. BASIC INFORMATION

Project Number: Project Name: Country: Loan Agreement: Grand Sud Rural Drinking Water Republic of Madagascar F/MDG/PL/EA/2001/1 Supply and Sanitation Project– SAP: P-MG-E00-002 RDWSS FS Lending Instrument: Sector: Environmental Loan Agreement No. 2100150000566 of 08/05/2001 Drinking Water and Classification: II Sanitation Original Commitment Amount: Amount disbursed from Percentage disbursed UA 8.92 million of which: ADF resources: UA 7.89 from ADF resources: UA 7.93 million from the ADF million 99.50% UA 0.99 million from the government and beneficiaries Borrower: Government of the Republic of Madagascar Executing Agencies: Ministry of Water (MinEau), General Secretariat, Project Implementation Unit (PIU). Co-financers and other External Partners: NA

II. KEY DATES

Project Concept Note Appraisal Report cleared by Ops Com.: N/A Board Approval: 11 April 2001 Cleared by Ops.Com: N/A Restructuring: Original Date Actual Date Difference in months (Actual-Original) Date of loan signature No date was originally stated in the 8 May 2001 - PAR. EFFECTIVENESS September 2001 26 December 2001 3 MID-TERM REVIEW October 2003 March 2007 41 CLOSING 31 December 2007 31 December 2010 36

III. RATINGS SUMMARY CRITERIA SUB-CRITERIA RATING Achievement of Outputs 4 Achievement of Outcomes 4 PROJECT OUTCOME Timeliness 1 OVERALL PROJECT OUTCOME 3 BANK PERFORMANCE Design and Readiness 3 Supervision 3 OVERALL BANK PERFORMANCE 3 Design and Readiness 2 BORROWER Implementation 3 PERFORMANCE OVERALL BORROWER PERFORMANCE 2

IV. REPONSIBLE BANK STAFF

POSITIONS AT APPROVAL AT COMPLETION Regional Director C. C. OJUKWU, ORSB Sector Director A. D. MTEGHA A. KIES Sector Head of Division G. MBESHERUBUSA S. JALLOW Task Manager A.KIES B. BENSASSI M. COULIBALY H. BABA KANE Socio-Economist/Consultant I. A.TRAORE Water and Sanitation Engineer/Consultant PCR Team Leader S. RANDRIATSIFERANA, MGFO PCR Team Members A. FOLLY, Financial Analyst/Consultant J. B. RAKOTONIRINA, MGFO

B. PROJECT CONTEXT

Based on a beneficiary demand-driven strategy (DDS), the RDWSS project is part of the water and sanitation policy defined in the 1997 Water, Hygiene and Sanitation Sector Policy Statement and Law No. 98-029 laying down the Water Code, promulgated in 1998 the main implementing decrees of which were issued in 2003.

The Project helped to achieve the objectives set for the Public Drinking Water, Hygiene and Sanitation Service in its project areas namely: (i) speedily boosting the percentage of the population with access to effective, sustainable drinking water supply and sanitation services by increasing the number of new infrastructure; (ii) increasing water supply to rural communities and cattle, and expanding water supply to excreta disposal systems, (iii) producing hygiene-related behaviour change with a view to improving living standards, (iv) providing sound health and economic productivity conditions.

The RDWSS project enhances and fits into the poverty reduction programme, which advocates population-friendly local development by providing basic social services and improving living standards. It significantly helped to improve productivity and curb food shortages and community health problems. International commitments by the Government of Madagascar to reduce the incidence of poverty to 45% by 2015 hinge on access to basic healthcare, generalization of universal education and increased drinking water and sanitation coverage. The project, which fits into these strategic goals, is also consistent with the Bank’s intervention strategy (1999-2001), which focuses on rural areas where poverty is most widespread and severe.

Implementing the Grand Sud RDWSS project helped to provide 164,468 inhabitants (28,460 households) in the project area with sustainable access to drinking water, and 40,000 inhabitants (6,667 households) with improved sanitation services through the drilling of 816 water wells fitted with hand pumps and another three equipped with a solar-powered pumping system, and the construction of 4,686 family and 114 institutional latrines (toilet blocks). In the area of community health, in addition to individual and collective hygiene awareness campaigns affecting more than 160,000 persons, 7,940 long-lasting insecticide-treated bed nets were distributed to nearly 24,000 people to protect against malaria-transmitting mosquito bites.

C. PROJECT OBJECTIVES AND LOGICAL FRAMEWORK

1. Objectives Sector objective: The sector objective is to significantly increase the coverage of water and sanitation needs with a view to poverty reduction. Specific objective: The project’s specific objective is to sustainably supply drinking water and enhanced sanitation services to the Ihosy, Iakora, Ivohibe and Betroka districts. 2. Components Component A): Potable water supply

This component consists in the inputs needed to construct 700 wells fitted with hand pumps. It requires various activities, including the location of future boreholes, works supervision, drilling of boreholes, and provision and fitting of pumps.

Location and supervision

This includes: i) hydro-geological survey and photo-interpretation of 700 wells in the area; ii) geophysical prospecting; iii) Works supervision and monitoring: drilling, pumping development and testing, chemical analysis of water samples, fitting of pumps and building of superstructures, latrines and drinking troughs.

Borehole drilling and equipment The project provides for the drilling of 700 wells in the area with a flow equal to 1m3/h. Average borehole depth is 40m. They will be piped with PVC tubes with a filtering column of about 10m-long. A mud slab will be laid around the watering point to maintain water quality.

Pump supply and installation The 700 boreholes will be fitted with hand pumps meeting technical reliability and maintenance simplicity criteria, allowing villagers and local repairmen to carry out general maintenance and major repairs. Component B) Sanitation and drinking troughs This component is intended to improve the health conditions of communities in the project area and to secure livestock. Latrines and drinking troughs will be built solely at the villagers’ request following information and awareness campaigns. Existing structures in the area (schools, clinics, etc.) will be priority sites for the construction of latrines. Component C) Community health support The project area is malaria- and bilharzia-endemic, and experiences frequent outbreaks of cholera and acute respiratory infections. These diseases and illnesses are linked to squalor and lack of hygiene. The project also plans the distribution of insecticide-treated bednets and the promotion of communicable (infectious and parasitic) disease prevention methods through CMT. Specific programmes to combat HIV/Aids/STDs, malaria, diarrhoeal diseases and acute respiratory infections will be associated in the preparation of community mobilization and training components related to their respective areas. The project will fund the supply of inputs and train women in the preparation of insecticide-treated bednets. Component D) Community Mobilization and Training Villager mobilization and participation are primordial for project success. Hence it has a key community mobilization and training (CMT) component the aim of which is to i) (i) enable the beneficiary communities to make their request and forward it to the parties; (ii) give the beneficiaries the possibility of taking initiative in building their facilities and bearing responsibility for running and maintaining them; and (iii) contributing modestly to the capital expenditure, mostly in kind. Through that approach, every effort will be made to obtain women’s opinion. Component E)- Institutional support Project implementation unit The project’s implementing body is the Department of Water and Sanitation (DEA). A project implementation unit (PIU) is based in Fianarantsoa, comprising the project manager (appointed by the DEA), a hydrogeology expert, a 3 community mobilization and training expert, an accountant and support staff (drivers, guard, secretary). The unit will be provided with short-term staff and equipment indispensable for project management, technical and financial follow-up. Project audit An independent consultant will audit the project accounts yearly. 3. Assessment of project objectives PROJECT OBJECTIVES WORKING ASSESSMENT DIMENSIONS SCORE Increased economic and social development thanks to water availability, and the reduced incidence of water- a) Relevant to the borne diseases in rural areas with the establishment of country’s RELEVANT sanitation projects, will help to consolidate the 4 development achievements of the government programme, as set out in priorities. the Poverty Reduction Strategy Paper (PRSP) and proposed by MDGs. b) Objectives could Given the resources available, the water supply objectives in principle be were achieved and even exceeded although there were achieved with the delays relative to the completion schedule initially planned. ACHIEVABLE 4 project inputs and in Furthermore, the government’s counterpart contribution the expected was increased beyond the original commitment. timeframe. c) Consistent with The objectives help consolidate the country’s strategy the Bank’s country (PRSP) and are consistent with that of the Bank namely 4 or regional strategy. poverty reduction. CONSISTENT d) Consistent with The objectives are consistent with the Bank’s corporate the Bank’s priorities 4 corporate priorities 4. Table of outputs and indicators INDICATORS EXPECTED COMPONENTS ACTIVITIES OUTPUTS TO BE OUTCOMES MEASURED Component A: Activity 1: Output 1: Outcome 1: Location and - Hydro-geological and Reduced rate of failure Potential drilling supervision geophysical surveys, works and increased sites located and supervision and monitoring probability of drilling marked. - Five senior staff from the high-flow boreholes in Ministry of Water trained in the Ihorombe and Anosy borehole installation and regions Drinking water procedures for monitoring supply implementation thereof. Activity 2: Output 2: Outcome 2: Borehole drilling and -827 wells built with coping; Improved coverage of Sites drilled and equipment water points in the boreholes fitted Ihorombe and Anosy regions Activity 3: Pump supply and Output 3.1: Outcome 3.1: Hand pumps with installation -817 hand pumps installed Improved access to accessories Activity 3.1: -164,500 persons provided with drinking water in the delivered and Installation of hand drinking water; Ihorombe and Anosy installed and the pumps regions number of persons provided with drinking water 4 Activity 3.2: Output 3.2: Outcome 3.2: Construction of -3 solar-powered pumping Improved access to Solar-powered solar-powered systems installed; drinking water in a few pumping pumping systems major villages, health systems supplied centres and schools in with distribution the Ihorombe and Anosy networks set up. regions Activity 3.3: Output 3.3: Outcome 3.3: Training of - 30 repairmen trained; General maintenance Number of repairmen and - 4 sales outlets for spare parts and major repairs repairmen creation of spare set up. carried out on pumps trained and sales part sales outlets installed in the Ihorombe outlets for spare and Anosy regions. parts set up. Activity 1: Output 1: Outcome 1: Construction of -4,686 family latrines built; Improved access to Ihosy, Iakora, sanitation -114 multi-compartment public sanitation in the Ivohibe infrastructures latrines built (institutional Ihorombe and Anosy (Ihorombe latrine); regions region) and -40,000 persons covered. Betroka (Anosy -116 builders trained region) Districts equipped with single and Component B: collective latrines Sanitation and Activity 2: Output 2: Outcome 2: drinking troughs Construction of - No construction carried out Cattle secured Number of drinking troughs due to a lack of demand from drinking troughs potential beneficiaries built Activity 1: Output 1: Outcome 1: Distribution of -7,940 long-lasting insecticide- Improved health through Ihosy, Iakora, insecticide-treated treated bednets distributed in malaria prevention and Ivohibe bednets the Ihosy, Iakora, Ivohibe control actions in the (Ihorombe (Ihorombe region) and Betroka Ihorombe and Anosy region) and (Anosy region) districts. regions Betroka (Anosy region) Districts provided with long-lasting insecticide- Component C: treated bednets. Community Activity 2: Output 2: Outcome 2: Number of health support Training and -164,500 beneficiaries (28,460 Beneficiaries’ individual beneficiaries sensitization on households) covered by and collective hygiene trained and community health individual and collective as well as their sensitized and hygiene hygiene sensitization activities knowledge of community health is improved Output 3: Outcome 3: Village -925 village organization units Continuity in the organization (VOU) trained and set up. sensitization of units set up and beneficiaries on hygiene trained. issues. Component D: Activity 1: Output 1: Outcome 1: Villager mobilization -1,101 villages ascertained as Villages visited are Villages in the and participation. eligible. ascertained as project- Ihosy, Iakora, eligible Ivohibe

5 (Ihorombe region) and Betroka (Anosy region) districts accepted for the project. Activity 2: Output 2: Outcome 2: Mobilization and -1,096 villages in the Ihosy, Fully sensitized village Villages in the awareness Iakora, Ivohibe (Ihorombe community accepts and Ihosy, Iakora, campaign to region) and Betroka (Anosy is involved in all stages Ivohibe Community integrate villages region) districts included in the of the project. (Ihorombe mobilization and accepted for the project; region) and training (CMT) project. -Awareness campaign covers Betroka (Anosy 262,000 people region) districts included in the project. Activity 3: Output 3: Outcome 3: Mobilization and -1,033 water point committees Sustainability of DWS Community training programme (WPC) set up services ensured structures for structuring of through the setting up of created in villages. structures in charge of villages in the managing, operating Ihosy, Iakora, and maintaining water Ivohibe infrastructure. (Ihorombe region) and Betroka (Anosy region) districts having accepted the construction of boreholes Component E: Activity 1: Output 1: Outcome 1: Institutional Recruitment of - Project implementation unit Technical and financial Creation of the support consultants to (PIU) operational since 2003 management and project manage the project oversight of the project implementation ensured unit Activity 2: Output 2 : Outcome 2: Recruitment of a - Seven audit reports produced Authenticity of accounts Annual audits consultant to audit for the project’s accounts; and compliance with carried out the project’s - Two more expected procedures ascertained accounts 5. Achievement of log. frame objectives. LOG. FRAME DIMENSIONS ASSESSMENT SCORE a) Presents a logical causal chain Activities, outputs and outcomes present a LOGICAL for achieving the project causal chain for achieving the project 4 development objectives. development objectives b) Expresses objectives and Objectives and outcomes are expressed in MEASURABLE outcomes in a way that is a way that is measurable and quantifiable 4 measurable and quantifiable. through objectively verifiable indicators Assumptions and risks were identified at c) States the risks and key the design stage and alleviation measures THOROUGH 3 assumptions. proposed, although these are not detailed in the log. frame.

6 D. OUTPUTS AND OUTCOMES

I. ACHIEVEMENT OF OUTPUTS

Share of Project MAJOR ACTIVITIES Costs in Weighted Score Working percentage (auto- Score Expected Outputs Actual Outputs (as stated in calculated) Appraisal Report) 1. - Construction of 700 boreholes fitted - Construction of 820 boreholes with hand pumps to initially serve 125,000 including 817 with hand pumps and persons. three with solar-powered pumping - Creation of networks of repairmen and systems for 164,500 persons; retailers of spare parts for pumps. -30 local repairmen trained in the 4 67% 2.68 Ihosy, Iakora, Ivohibe (Ihorombe region) and Betroka (Anosy region) districts; - Four sales outlets for spare parts set up in the project area 2. Construction of 5,000 individual latrines - 4,686 family latrines and 114 initially intended for use by 40% of institutional latrines (corresponding beneficiaries, along with 1,050 drinking to 456 doors) built for around troughs 30,800 persons in the Ihosy, Iakora, Ivohibe (Ihorombe region) 3 13% 0.39 and Betroka (Anosy region) districts; - no drinking troughs built due to a lack of demand 3. Distribution of long-lasting insecticide- - 7,940 long-lasting insecticide- 4 1% 0.04 treated bednets treated bednets distributed 4. Community mobilization and training - 827 water point committees for: trained in the management,

- training of 700 water point committees; operation and maintenance of

- training and sensitization on hygiene water points are now operational; and community health; -869 villages sensitized and trained

- training of 40 builders in communicable diseases 4 11% 0.44 prevention as well as in individual

and collective hygiene;

- 827 village organization units

trained for community education in

health and hygiene

- 116 builders trained 5. Institutional support: - PIU operational since 2003; - Project management - Seven account audits carried out 3 9% 0.27 - Account audit and two more expected

OVERALL OUTPUT SCORE [Score is calculated as the sum of weighted score] 4

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Insert the new score or re-enter the auto-calculated score 4

II. ACHIEVEMENT OF OUTCOMES

OUTCOMES Working Score

Expected Actual

- Consumption up from 10 litres . Consumption up from 10 litres pcpd to 23 litres pcpd. 4 pcpd to 20 litres pcpd. - 50% of the population of the . 64% of the population of the project area have access to drinking project area have access to drinking water. 4 water. - 125,000 persons have 164,500 persons have sustainable water supply in the project area- sustainable water supply in the project 4 area - 40% of beneficiaries have . 10% of beneficiaries have sanitation coverage 1 adequate sanitation systems - Incidence of water-borne .Incidence of water-borne diseases down by 61% diseases down by 30% - Diarrhoea: 77%; - Bilharzia: 62%; - Skin disease: 45% 4

OVERALL OUTCOME SCORE 4

Check here to override the auto-calculated score Provide justification for overriding the auto-calculated score Insert the new score or re-enter the auto-calculated score 4 2. Additional outcomes: - annual household income up from MGA 120,000 (MGF 50,000 per month x 12) at the time of appraisal to MGA 706,000 on completion; - time saved fetching water per household per day: 24 minutes, worth an estimated MGA 161 per household per day - average income gain from treatment of water-borne diseases per household: MGA 1,445; - beneficiary households’ monthly financial capacity to contribute towards the maintenance of water facilities: MGA 11,450 3. Risks to sustained achievement of outcomes.

Beneficiaries’ motivation to organize themselves (WPC, VOU) tends to taper off over time, reducing the willingness to contribute to the maintenance of facilities. This decline in motivation could jeopardize project sustainability on the long run.

Another factor that could undermine the sustainability of project outcomes is the noted lack of monitoring by government bodies in the regions covered towards rendering beneficiaries more responsible for facilities.

E. PROJECT DESIGN AND READINESS FOR IMPLEMENTATION

The project’s design was informed by the results of numerous studies carried out by various donors involved in drinking water supply and sanitation in the South, as well as lessons from ongoing or completed RDWSS projects including those initiated by the Bank, such as the Water Supply project in the South and the RDWSS feasibility and implementation study in ADB centres (eight ADB centres). To address the Water Department’s institutional weakness in implementing these projects, this project provided for an institutional support component.

The project's design is based on the Beneficiary Demand-Driven Strategy. Such a participatory approach was successfully adopted for other projects being carried out in the region. Beneficiaries were involved at all stages of the project: planning, implementation and operation. The project design is simple and uses appropriate technologies, which will be adapted to demand and physical environmental conditions. 2. Assessment of the design PROJECT DESIGN AND READINESS FOR ASSESSMENT Working Score IMPLEMENTATION DIMENSIONS The project design is simple. However, within the framework of a) Project complexity is matched the Agreement, provisions were REALISM with country capacity and political 3 made to further facilitate its commitment. execution and enhance its implementation success. Project appraisal took into account obvious risks at the design stage. RISK ASSESSMENT b) Project design includes Mitigating measures were 3 AND MITIGATION adequate risk analysis. proposed and taken during implementation with a view to achieving the objectives. c) Project procurement, financial The Bank’s own procurement management, monitoring and/or procedure was used. USE OF COUNTRY other systems are based on those 2 SYSTEMS already in use by government and/or other partners Working Score For the following dimensions, provide separate working scores for Bank performance and Borrower performance: Bank Borrower Responsibilities were clearly d) Responsibilities for project defined for the Bank and other CLARITY implementation were clearly 3 3 participants in the water and defined. sanitation sector. Documents needed to implement components – drinking water e) Necessary implementation supply, community health support, PROCUREMENT documents (e.g. specifications, community mobilization and 2 2 READINESS design, procurement documents) training – were ready. However, were ready at appraisal. nothing was prepared for the sanitation component, delaying its launch. Project implementation monitoring f) Monitoring indicators and MONITORING indicators were clear and monitoring plan were agreed upon 2 2 READINESS monitored during inspections but before project launch. significant delays were noted. An

9 initial procurement plan was drawn up in 2003 and updated in 2006. Baseline data on the drinking water access rate and the population were available. In h) Baseline data were available or contrast, the rate of access to BASELINE DATA are/were collected during project 2 2 sanitation services, information on design. the work of other donors and statistics on water-borne diseases were not available.

F. IMPLEMENTATION

Compliance with prerequisites and commitments

- All loan agreement conditions were respected. The general condition relating to submission of audit and project activity reports to the Bank was regularly complied with.

Procurement performance

- Inconsistencies between the sections on procurement in the Project Appraisal Report and Loan Agreement sometimes hindered project implementation and led to implementation delays. This was the case with the review procedure and procurement method described under the section on “operation” . - However, purchases not mentioned in the Loan Agreement such as sheet metal for latrines, and construction work for institutional latrines through open bid invitation were however executed because they had been recommended by the supervision team in its mission checklist.

- Overall, slippages were noted resulting from the delay in the project’s launch following a year (2002) of post- electoral crisis in the country, and from delays in the implementation schedule of works contracts owing to problems of access to sites and other external factors (insecurity and weather).

- The duration of procurements was satisfactory except for two contracts relating to (i) the procurement of 700 PMH hydraulic pumps (over 18 months for ICB); and (ii) the supply of insecticide-treated mosquito nets (more than three times the contract timeframe). This can be attributed to the long delay between bid submission and presentation of the bid review report by the PIU and the time taken to obtain the Bank’s non-objection to the contract award.

- As the Loan Agreement did not explicitly mention the appointment of a Procurement Officer, this position was ensured by hydrogeology and community mobilization and training experts, partially impeding the smooth functioning of this aspect of the project given that the experts were not prepared for such a task.

Timeliness

- The initial cut-off date for the project’s final disbursement was 31 December 2007. The main objectives of the project were achieved and even exceeded towards the end of 2008. As at this date, the project was a year behind schedule. The last two -year extension granted the project was necessary to utilize the outstanding balance representing more than 20% of the ADF loan (UA 1.8 million)

Financial performance

- The ADF loan disbursement rate was 99.50%; Government’s counterpart was regularly paid and on schedule. The Government even exceeded its initial commitments (163%). 10 Contract management

- Apart from the audit contract for the last fiscal year, overall, the contracts signed under the RDWSS project have all been cleared administratively and financially,

- Delays in the execution of certain contracts were often attributable to the awardees’ poor effective capacity and also in part to inadequate contract monitoring by the PIU relating to the processing and management of procurement files;

ADB oversight performance

The Bank carried out 12 supervision missions during the eight years of project implementation. Overall, the Bank’s intervention was constructive and positive. Indeed, as part of a participatory approach involving the government party, it made it possible for appropriate solutions to be found quickly, especially for the sanitation component. This contributed significantly to the achievement of project objectives. 2. Comment on the role of other partners In terms of collaboration between sectoral financial partners, there was permanent consultation between the various donors to i) support on-going reforms; ii) ensure optimal resource use to avoid duplication; and iii) concentrate on very poor areas. 3. Harmonization. Faced with the problem of design and sustainable management of water and sanitation programmes and projects in Madagascar, a procedures manual was prepared to harmonize the various actions to be taken in rural areas. The manual sets out the role of different parties (government, donors, local authorities, beneficiaries, etc.) in the identification, preparation, design, implementation, monitoring and evaluation of water and sanitation sub-projects. The task assigned to the National Water and Sanitation Authority (ANDEA), set up as part of the organization of the water and sanitation sector, is expected to culminate in the harmonization of interventions in the sector.

Regarding procurement, the Borrower has already undertaken reforms in its new Public Procurement Code, which was ratified and took effect in 2004. This code was prepared based on the Guidelines and Rules of the Borrower’s financial partners. However, the Bank is currently assessing the national procurement system to ensure that national procedures are being applied in local bid invitations. 4. Achievement of implementation objectives PROJECT IMPLEMENTATION DIMENSIONS ASSESSMENT a) Extent of project adherence to the Difference in months The project’s original closing date. If the number between original original closing on the right is: closing date and actual date scheduled for TIMELINESS - below 12, score 4 closing date or date of 31 December 2007 - between 12.1 to 24, score 3 98% disb.rate. was extended to 1 - between 24.1 to 36, score 2 31 December 2010 - beyond 36.1, score 1 36 b) Bank complied with: Given the nature of sanitation structures set up (individual and collective latrines) and Environmental safeguards sensitization of the population on 3 environmental hygiene, the project’s environmental benefits will be significant. BANK Fiduciary requirements Fiduciary requirements were met. PERFORMANCE 4 There were no delays in signing covenants. Project covenants 3 c) Bank provided quality supervision The Bank’s supervision was constructive and in the form of skills mix and satisfactory. Delegation of certain powers to local practicality of solutions. representatives speeded up some activities. 3 11 The average frequency of inspections was d) Bank provided quality management 1.5 per year (according to standard) since oversight. the project’s effective launch. 3

e) Borrower complied with: Safeguards against pollution of groundwater harnessed by boreholes were systematically

implemented in Madagascar. Consequently, 3 Environmental safeguards all DWS structures built under the project benefited from this measure. The Government’s counterpart contribution was paid regularly and on schedule. The 4 Fiduciary requirements government even exceeded its initial commitments. BORROWER Project covenants There was a three-month delay in the loan’s 4 PERFORMANCE effectiveness. f) Borrower was responsive to Bank The Borrower was always responsive to supervision findings and Bank supervision recommendations and recommendations evaluation of their implementation during the 3 following mission was always deemed satisfactory. g) Borrower collected and used There was no sufficient data at the start of monitoring information for decision project implementation, which preceded the making. establishment of the sector’s 1 monitoring/evaluation system.

G. COMPLETION

1. Is the PCR delivered on a timely basis, in compliance with Bank policy? Date project reached 98% disb. rate Date PCR was sent to Difference in WORKING SCORE (or closing date if applicable) [email protected] months (auto-calculated) If the difference is 6 months or less, a 4 is scored. If the difference is 6.1 or more, a 1 is scored. 31/12/2010 36 1 An initial version of the PCR was prepared by the Project Implementation Unit in October 2010 and discussed with the Bank’s supervision mission during the same period. The completion mission began on 30 May 2011 with a field mission which stayed in Madagascar until 18 June 2011. The team held several working sessions with the Grand Sud RDWSS project coordinator and members of the Project Implementation Unit. These meetings covered (i) the project background considering its age (ii) the collection of documentation to produce the project completion report, in particular accounting data and figures from the project impact survey, and (iii) preparation for the field trip. The mission visited the Ihosy, Iakora and Ivohibe districts accompanied by staff from the Interregional Department of the Ministry of Water in Fianarantsoa, where it held discussions with the project beneficiaries. The PCR team’s financial analyst continued work at the headquarters in Tunis until 6 July 2011. Throughout this period, the whole team continued e-mail consultations to prepare the completion report. However, the production of this PCR was affected by the long project implementation timeframe.

H. LESSONS LEARNED

Based on the Bank’s commitments to the country’s water and sanitation sector, and in particular those relating to this project, the following lessons were learned:

Regarding Implementation

(i) The effectiveness of the approach taken to implement the RDWSS project made it possible to build infrastructure suitable to the area and structures to manage, operate and maintain equipment as well as incentive mechanisms to the private sector by establishing a network of stakeholders (spare part suppliers, retailers and repairmen);

(ii) Rational financial management of the project allowed the Borrower to use surplus funds to improve on expected outcomes. This sound management was buttressed by the Borrower’s desire to significantly increase the government’s contribution.

(iii) The need for institutional development through capacity building and local training during project implementation; beneficiaries’ ownership of the structures and their financial capacity to contribute towards maintenance should be encouraged to for the project’s long-term sustainability.

(iv) Shortcomings in the application of institutional provisions of the Water Code within the framework of the reorganization of the public drinking water supply and sanitation service. Thus, the lack of a pricing and cost recovery policy could undermine not only the financial sustainability of rural water supply services and hence their sustainability, but also the incentive mechanism for privatizing the management of these services.

Regarding design

(v) Inadequate technical, socio-economic and cultural information. Future projects must be based on this information to enable a broader choice of technology (water conveyance, borehole, well, etc.) and avoid insufficient demand (latrines, drinking troughs)

(vi) Inadequate national water and sanitation sector policy and strategy at project design

(vii) Ownership of procurement methods, shortcomings in the loan agreement (absence of procedures specifying procurement documents review procedures, WCR, etc.)

vii) Provision for a procurement officer among the project staff with the skills required for this position.

I. PROJECT RATINGS SUMMARY All working scores and ratings are auto-generated by the computer from the relevant section in the PCR WORKING CRITERIA SUB-CRITERIA SCORE Achievement of outputs 4

PROJECT Achievement of outcomes 4 OUTCOME Timeliness 1 OVERALL PROJECT OUTCOME SCORE 3

13 Design and readiness

Project Objectives were relevant to country development priorities. 4 Project Objectives could in principle be achieved with the project inputs and in the 4 expected time frame. Project Objectives were consistent with the Bank’s country or regional strategy 4

Project Objectives were consistent with the Bank’s corporate priorities 4 The log frame presents a logical causal chain for achieving the project development objectives. 4 The log frame expresses objectives and outcomes in a way that is measurable and quantifiable. 4

The log frame states the risks and key assumptions. 3

Project complexity was matched with country capacity and political commitment. 3

Project design includes adequate risk analysis. 3

Project procurement, financial management, monitoring and/or other systems were 2 BANK based on those already in use by government and/or other partners. PERFORMANCE Responsibilities for project implementation were clearly defined. 3 Necessary implementation documents (e.g. specifications, design, procurement 2 documents) were ready at appraisal. Monitoring indicators and monitoring plan were agreed upon during design. 2

Baseline data were available or were collected during design. 2 PROJECT DESIGN AND READINESS SUB-SCORE 3 Supervision: Bank complied with: Environmental Safeguards 3 Fiduciary Requirements 4 Project Covenants 3 Bank provided quality supervision in the form of skills mix provided and practicality 3 of solutions. Bank provided quality management oversight. 3 PCR was delivered on a timely basis 3 SUPERVISION SUB-SCORE 3 OVERALL BANK PERFORMANCE SCORE 3 Design and Readiness

Responsibilities for project implementation are clearly defined. 3 Necessary implementation documents (e.g. specifications, design, procurement BORROWER 2 PERFORMANCE documents) are ready at appraisal. Monitoring indicators and monitoring plan are agreed upon and baseline data are available or are being collected 2

PROJECT DESIGN AND READINESS SCORE 2

14 Implementation Borrower complied with: Environmental Safeguards 3 Fiduciary Requirements 4 Project Covenants 1

Borrower was responsive to Bank supervision findings and recommendations. 3

Borrower collected and used of monitoring information for decision-making. 1 IMPLEMENTATION SUB-SCORE 2 OVERALL BORROWER PERFORMANCE SCORE 2

J. PROCESSING

STEP SIGNATURE AND COMMENTS DATE Sector Manager Clearance Sering JALLOW 04/08/2011 Regional Director Clearance C. C. OJUKWU 12/08/2011 Sector Director Approval Sering JALLOW 15/08/2011

APPENDIX 1

Scoring Scale and Corresponding Explanations

SCORE EXPLANATION 4 Highly satisfactory - Fully implemented no weaknesses 3 Satisfactory - the majority of the objectives are achieved despite a few shortcomings 2 Average - project partially completed. Almost as many outcomes as shortcomings 1 Poor - Very few outputs and serious shortcomings NA Non Applicable

Note: The formulae are rounded up or down to the nearest decimal point. Only whole numbers are used in the calculations.

16 LIST OF ANNEXES

ANNEX 1: PROJECT COSTS AND FINANCING Table 1: Trend of Disbursements (ADF funds and Malagasy State) Table 2: Trend of Ariary/UA exchange rate from 2003 to 2011 Table 3: Financing sources by spending category per year (UA) Table 4: Expenditure by category, difference between actual spending on completion and estimate at appraisal relative to the allocations provided for in the Loan Agreement (UA) Table 5: Malagasy government fund expenditure by category at completion relative to estimate (UA million) Table 6: Financing source relative to estimate (UA million) Table 7: Cost breakdown by component and by spending category – ADF relative to total project cost (UA million) Table 8: Cost breakdown by component and category – ADF and Malagasy government fund relative to total project cost (UA million) ANNEX 2: BANK INPUTS 2.1 CONTRIBUTION DURING PREPARATION 2.2 CONTRIBUTION DURING SUPERVISION 2.3 SCORING BY THE LAST SUPERVISION MISSION ANNEX 3: ECONOMIC ANALYSIS (ERR) AND FINANCIAL ANALYSIS Table 9: Trend of various gains and revenue and value of water consumed according to changes in the population of the project area (in Ariary) Table 10: Trend of household spending on maintenance of borehole facilities (in Ariary) Table 11: Trend in economic cash flow and calculation of the project’s economic rate of return at completion ANNEX 4: STATUS OF CONTRACTS Series of tables 1: Status of contracts (attached) Series of tables 2: Procurement plan (attached) ANNEX 5: LIST OF SUPPORTING DOCUMENTS ANNEX 6: PROJECT NARRATIVE AND IMPLEMENTATION 6.1 PROJECT BACKGROUND AND DESIGN 6.2 PROJECT IMPLEMENTATION 6.3 PROJECT OUTCOMES AND IMPACT

17 ANNEX 1

PROJECT COSTS AND FINANCING

Table 1: Disbursements (ADF funds and Malagasy State)

ADF disbursement Gov’t. disbursement TOTAL Year UA ‘000 Ariary ‘000 Ariary ‘000 Ariary ‘000 2003 103 195,814 80,000 275,814 2004 100 297,843 60,000 357,843 2005 833 2,506,779 427,409 2,934,188 2006 2,026 6,174,281 253,176 6,427,457 2007 1,340 3,970,103 890,150 4,860,253 2008 1,502 4,397,318 1,459,298 5,856,616 2009 546 1,550,057 350,000 1,900,057 2010 1,093 3,278,714 350,000 3,628,714 2011 347 1,025,348 500,000 1,525,348 TOTAL 7,890 23,396,259 4,370,033* 27,766,292 *Situation at 14/06/2011

Table 2: Trend of Ariary/UA exchange rate over the period (calculated using table 1 above)

UA/Ariary 2003 2004 2005 2006 2006 2007 2008 2009 2010 2011

Rate 1901.106 2978.4300 3009.33854 3047.5227 2962.76343 2927.64181 2838.932 2999.7383 2954.89337 2954.893

Table 3 Financing sources by spending category per year (UA)

Spending category 2003 2004 2005 2006 2007 2008 2009 2010 2011 TOTAL WORKS ADF 540,933 1,558,501 918,353 415,676 293,212 284,942 277,822 4,289,438 M. gov’t. (OR) 56,740 146,145 138,545 44,898 12,810 70,354 469,493 GOODS ADF 77,545 18,185 46,089 406,302 251,882 160,246 960,249 M. gov’t. (OR) 111 3,744 1,000 3,568 56,339 136,826 9,980 211,568 CONSULTANT SERVICES ADF 29,036 229,556 401,600 335,140 380,809 74,837 206,560 217,056 1,874,594 M. gov’t. (OR) 8,133 4,146 64,465 26,627 22,263 34,953 10,340 28,683 190,571 390,182 OPERATION ADF 7,307 32,726 69,954 62,826 49,293 95,012 79,534 81,726 286,977 765,355

M. gov’t. (OR) 723 25,770 65,639 59,560 47,138 87,490 79,534 49,591 32,173 447,618 TOTAL SPENDING 16,162 169,223 1,045,584 2,259,003 1,557,819 1,468,708 858,489 1,018,929 1,014,578 9,408,496

19 Table 4 Expenditure by category, difference between actual spending at completion and estimate at appraisal relative to the allocations as provided for in the Loan Agreement (UA)

MALAGASY ACTUAL ESTIMATE Difference CATEGORY GOVERNMENT ADF TOTAL ®% (F) % (A-F) % WORKS 469,493 4,289,438 4,758,931 90 90 0 GOODS 211,568 960,249 1,171,817 82 90 - 8 SERVICES 390,182 1,874,594 2,264,776 83 90 - 7 OP. 447,618 765,355 1,212,973 63 91 - 28 TOTAL 1,518,861 7,889,636 9,408,497 84 89 - 5

Table 5 Malagasy government fund expenditure by category at completion relative to estimate (UA million)

Items: Estimate Estimate* Actual Difference (A-F) Works 0.43 0.55 0.47 -0.08 Goods 0.11 0.14 0.21 0.07 Services 0.22 0.28 0.39 0.11 PIU op. 0.02 0.03 0.48 0.45 Base cost 0.78 0.99 Contingencies 0.08 Inflation 0.13 Total 0.99 0.99 1.55 0.56 * including contingencies and price escalation

Table 6 Financing source relative to estimate (UA million)

Difference Cost at appraisal (CA) Cost at completion (CC) (CA-CC) Total Total Financing source Total Foreign Tax- Foreign Tax LC LC Tax Excl.Tax- Exchange excl.Tax Exchange Excl.Tax- excl. Excl. excl. ADF 5.89 2.04 7.93 4.50 3.39 7.89 -0.04 Government 0 0.99 0.99 0 1.60 1.60 0.61 Total 5.89 3.03 8.92 4.50 4.99 9.49 0.57

Table 7 Cost Breakdown by Component and by Spending Category – ADF Relative to Total Project Cost (UA million)

At appraisal (CCA) At appraisal (CCA)** At completion (CC) Difference (CCA-CC) Total Total Total For. Total % For. For. Tax % For. For. Tax % For. Tax Component / Sub-component Exch LC Tax Excl. Exch Exch LC Excl. Exch Exch LC Excl. Exch DCA LCCA Excl. Drinking water supply Boreholes 1.9 1.03 2.93 65% 2.33 1.40 3.73 62% 2.53 0.82 3.35 76% 0.21 - 0.58 - 0.37 Pump supply and fitting 0.57 0.03 0.6 95% 0.70 0.04 0.74 94% 0.87 0.19 1.07 82% 0.17 0.15 0.33 Installation/Supervision 0.72 0.44 1.16 62% 0.88 0.60 1.48 60% 0.61 0.21 0.82 74% - 0.27 - 0.39 - 0.66 TOTAL 1 3.19 1.5 4.69 68% 3.91 2.04 5.94 66% 4.01 1.23 5.24 77% 0.11 - 0.81 - 0.70 Sanitation and drinking troughs Latrines and drinking troughs 0.77 0.14 0.91 85% 0.94 0.19 1.13 83% 0.00 0.76 0.76 0% - 0.94 0.57 - 0.37 TOTAL 2 0.77 0.14 0.91 85% 0.94 0.19 1.13 83% 0.00 0.76 0.76 0% - 0.94 0.57 - 0.37 Community health support Manufacturer of mosquito nets 0.03 0.03 0.06 50% 0.04 0.04 0.08 47% - 0.05 0.05 0% - 0.04 0.01 - 0.03 TOTAL 3 0.03 0.03 0.06 50% 0.04 0.04 0.08 47% 0.00 0.05 0.05 0% - 0.04 0.01 - 0.03 Community mobilization and training Community mobilization and training 0.34 0.43 0.77 44% 0.42 0.58 1.00 42% 0.44 0.27 0.70 62% 0.02 - 0.32 - 0.30 TOTAL 4 0.34 0.43 0.77 44% 0.42 0.58 1.00 42% 0.44 0.27 0.70 62% 0.02 - 0.32 - 0.30 Institutional support Implementation unit 0.42 0.11 0.53 79% 0.51 0.15 0.66 77% 0.05 1.06 1.12 5% - 0.46 0.91 0.45 Audit 0.06 0.02 0.08 75% 0.07 0.03 0.10 73% - 0.02 0.02 0% - 0.07 - 0.01 - 0.08 TOTAL 5 0.48 0.13 0.61 79% 0.59 0.18 0.76 77% 0.05 1.09 1.14 5% - 0.54 0.91 0.37 Total basic costs 4.81 2.23 7.04 68% Contingencies 0.48 0.22 0.7 69% Price escalation 0.6 0.58 1.18 51% GENERAL TOTAL 5.89 3.03 8.92 66% 5.89 3.03 8.92 4.50 3.39 7.89 - 1.39 0.36 - 1.03 ** Taking into account contingencies and price escalation in expenditure items

Table 8 Breakdown of costs by component and by category – ADF and Malagasy government fund relative to total project cost (UA million)

ADF ADF AND MAL. GOV. DIFFERENCE At appraisal (CA) At appraisal (CA)** At completion (CC) Difference (CA-CC) Total Total Total Tax- For. Total Tax % For. For. Tax % For. For. Tax % For. excl.Tax Component / Sub-component Exch LC Excl. Exch Exch LC Excl. Exch Exch LC Excl. Exch DCA LCCA Excl.

Drinking water supply 1.9 1.03 2.93 65% 2.33 1.40 3.73 62% 2.53 1.24 3.77 67% 0.63 0.21 0.84 Boreholes 0.57 0.03 0.6 95% 0.70 0.04 0.74 94% 0.87 0.25 1.12 78% 0.30 0.22 0.52 Pump supply and fitting 0.72 0.44 1.16 62% 0.88 0.60 1.48 60% 0.61 0.46 1.07 57% - 0.11 0.02 - 0.09 Installation/Supervision 3.19 1.5 4.69 68% 3.91 2.04 5.94 66% 4.01 1.95 5.96 67% 0.82 0.45 1.27 TOTAL 1 Sanitation and drinking troughs 0.77 0.14 0.91 85% 0.94 0.19 1.13 83% 0.96 0.96 0% - 0.77 0.82 0.05 Latrines and drinking troughs 0.77 0.14 0.91 85% 0.94 0.19 1.13 83% 0 0.96 0.96 0% - 0.77 0.82 0.05 TOTAL 2 Community health support 0.03 0.03 0.06 50% 0.04 0.04 0.08 47% 0.07 0.07 0% - 0.03 0.04 0.01 Manufacturer of mosquito nets 0.03 0.03 0.06 50% 0.04 0.04 0.08 47% 0 0.067 0.07 0% - 0.03 0.04 0.01 TOTAL 3 Community mobilization and training 0.34 0.43 0.77 44% 0.42 0.58 1.00 42% 0.44 0.35 0.79 55% 0.10 - 0.08 0.02 Community mobilization and training 0.34 0.43 0.77 44% 0.42 0.58 1.00 42% 0.44 0.35 0.79 55% 0.10 - 0.08 0.02 TOTAL 4 Institutional support 0.42 0.11 0.53 79% 0.51 0.15 0.66 77% 0.05 1.64 1.69 3% - 0.37 1.53 1.16 Implementation unit 0.06 0.02 0.08 75% 0.07 0.03 0.10 73% 0.02 0.02 0% - 0.06 0.00 - 0.06 Audit 0.48 0.13 0.61 79% 0.59 0.18 0.76 77% 0.05 1.66 1.72 3% - 0.43 1.53 1.11 TOTAL 5 4.81 2.23 7.04 68% - 4.81 -2.23 - 7.04 Total basic costs 0.48 0.22 0.7 69% - 0.48 - 0.22 - 0.70 Contingencies 0.6 0.58 1.18 51% - 0.60 - 0.58 - 1.18 Price escalation 5.89 3.03 8.92 66% 5.89 3.03 8.92 4.50 4.99 9.49 47% - 1.39 1.96 0.57 ** Taking into account contingencies and price escalation in expenditure items

22 ANNEX 2

BANK INPUTS

2-1 DURING PREPARATION

LEADING MEMBERS ROLE 1. M. A. D. MTEGHA. Director, (OCIN) 2. M. G. MBESHERUBUSA Division Manager, OCIN.1 3. M. M.EL AZIZI Water and Sanitation Engineer, OCIN.1 4. M. O. NAKOULIMA Financial analyst, OCIN.2 5. M. L. ENNAHLI Rural Engineer, OCAR. 6. M. J.VARANGO Procurement expert, PPRU 7. Mrs R. BA Expert in field, OCAR 8. M. L. JOOTTUN Environmentalist, OCIN.0

2-2 DURING SUPERVISION

No. of No. of No. Mission Date Composition days pers. - Amadou Thierno DIALLO, Financial 1 Supervision 14 to 24/05/2004 11 01 Analyst, Head of Mission - Amadou Thierno DIALLO, Financial Analyst, Head of Mission 2 Supervision 02 to 16/12/2004 15 02 - Abderrahmane OUTAGUEROUINE, Principal Engineer, Water and Sanitation - Abderrahmane OUTAGUEROUINE, Principal Engineer, Water and Sanitation, Head of Mission; 3 Supervision 11 to 22/11/2005 12 03 - Mike SALAWOU, Financial Analyst; - Georges BOHOUSSOU, Assistant Head of Mission; Supervision - Medhi KHOALI, Financial Analyst; 4 (Internal 02 - Abdoulaye NDOYE, Consultant audit) - Abderrahmane OUTAGUEROUINE, Principal Engineer, Water and Sanitation, Head of Mission; 5 Supervision 01 to 19/10/2006 19 03 - Georges BOHOUSSOU, Assistant Head of Mission; - Simon RANDRIATSIFERANA, Infrastructure Specialist - Simon RANDRIATSIFERANA, Infrastructure Specialist, Head of Mission - Christian RAFARALAHIMBOA, Water and Sanitation Consultant; 6 Supervision 22/11 to 03/12/2007 12 04 - Jean Bernard RAKOTONIRINA, Procurement Assistant - Solofoarijaona RATOVOSON, Disbursement Assistant - Mehdi KHOALI, Senior Financial Analyst 7 Supervision 18 to 29/02/2008 12 02 - El Hadji Amadou MBAYE, Senior Engineer, Water and Sanitation

23 - Abderrahmane OUTAGUEROUINE, Principal Engineer, Water and Sanitation - Simon RANDRIATSIFERANA, Infrastructure Specialist 8 Supervision 08 to 24/07/2009 16 04 - Jean Bernard RAKOTONIRINA, Procurement Assistant - Solofoarijaona RATOVOSON, Disbursement Assistant - Abderrahmane OUTAGUEROUINE, Principal Engineer, Water and Sanitation, Head of Mission - Simon RANDRIATSIFERANA, 9 Supervision 08 to 24/07/2009 16 04 Infrastructure Specialist - Jean Bernard RAKOTONIRINA, Procurement Assistant - Solofoarijaona RATOVOSON, Disbursement Assistant - El Hadji Amadou MBAYE, Principal Engineer, Water and Sanitation, Head of 10 Supervision 02 to 17/07/2010 16 02 Mission - Mohammed KHOALI, Financial Analyst - El Hadji Amadou MBAYE, Principal Engineer, Water and Sanitation, Head of 11 Supervision 27/10 to 10/11/2010 15 02 Mission - Simon RANDRIATSIFERANA, MGFO - Simon RANDRIATSIFERANA, Infrastructure Specialist PCR - Akouété FOLLY, Consultant, Financial 12 30/05 to 17/06/2011 18 03 preparation Analyst, - Jean Bernard RAKOTONIRINA, Procurement Assistant

2-3 RATINGS BY LAST SUPERVISION MISSION

GRAND SUD RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT SCORES INDICATORS October 2010 A. PROJECT IMPLEMENTATION Compliance with conditions precedent to loan effectiveness 3 Compliance with General Conditions 1 Compliance with other conditions 1 B. PROCUREMENT PERFORMANCE Procurement of consultancy services 2 Procurement of goods and services 3 C. FINANCIAL PERFORMANCE Availability of Foreign Exchange 3 Availability of Local Currency 2 Disbursement Flows 2 Cost Management 2 Performance of Co-Financiers 2 D. ACTIVITIES AND WORKS Adherence to implementation schedule 1 Performance of Consultants or Technical Assistance 2 Performance of Contractors 2 Performance of Project Management 2 E. IMPACT ON DEVELOPMENT Likelihood of achieving development objectives 3 Likelihood that benefits will be realized and sustained beyond implementation 3 Likely contribution of the project towards institutional capacity building 3 Current Rate of Return 3 F. OVERALL PROJECT ASSESMENT Current Supervision Average 2,22 Current Trend over time 2.31 Key to scores: 3 = Very good, no problems; 2 = Good, a few problems, Bank must monitor; 1 = Fair, problems, Bank must monitor closely but no action required; 0 = Poor: serious problems: action required by the Bank

25 ANNEX 3

ECONOMIC ANALYSIS (ERR) AND FINANCIAL ANALYSIS

Table 9 Trend of various gains and revenue and value of water consumed according to changes in the population of the project area (in Ariary)

Value of water consumed at a rate of Year Rev/Time saved Gain/illnesses treated 23 litres pcpd 2006 472,003,748 145,025,358 1,623,013,227 2007 487,107,868 149,666,169 1,674,949,650 2008 502,695,319 154,455,486 1,728,548,039 2009 518,781,570 159,398,062 1,783,861,576 2010 535,382,580 164,498,800 1,840,945,147 2011 552,514,822 169,762,762 1,899,855,391 2012 570,195,297 175,195,170 1,960,650,763 2013 588,441,546 180,801,415 2,023,391,588 2014 607,271,676 186,587,061 2,088,140,119 2015 626,704,369 192,557,847 2,154,960,603 2016 646,758,909 198,719,698 2,223,919,342 2017 667,455,194 205,078,728 2,295,084,761 2018 688,813,761 211,641,247 2,368,527,474 2019 710,855,801 218,413,767 2,444,320,353 2020 733,603,187 225,403,008 2,522,538,604 2021 757,078,488 232,615,904 2,603,259,839 2022 781,305,000 240,059,613 2,686,564,154 2023 806,306,760 247,741,521 2,772,534,207 2024 832,108,576 255,669,249 2,861,255,302 2025 858,736,051 263,850,665 2,952,815,471 2026 886,215,605 272,293,887 3,047,305,567 2027 914,574,504 281,007,291 3,144,819,344

Table 10 Trend of household spending on maintenance of borehole facilities (in Ariary)

Beneficiary Year Beneficiary population households Annual maintenance cost Growth rate: 3.2% 2006 144,998 25,091 104,177,385 2007 149,638 25,894 107,511,061 2008 154,427 26,722 110,951,415 2009 159,368 27,578 114,501,860 2010 164,468 28,460 118,165,920 2011 169,731 29,371 121,947,229 2012 175,162 30,311 125,849,541 2013 180,768 31,281 129,876,726 2014 186,552 32,281 134,032,781 2015 192,522 33,315 138,321,830 2016 198,682 34,381 142,748,129 2017 205,040 35,481 147,316,069 2018 211,602 36,616 152,030,183 2019 218,373 37,788 156,895,149 2020 225,361 38,997 161,915,794 2021 232,572 40,245 167,097,099 2022 240,015 41,533 172,444,206 2023 247,695 42,862 177,962,421 2024 255,621 44,233 183,657,219 2025 263,801 45,649 189,534,250 2026 272,243 47,110 195,599,345 2027 280,955 48,617 201,858,525

ECONOMIC ANALYSIS: CALCULATING THE ECONOMIC RATE OF RETURN

The basic assumptions underlying ERR calculation are as follows:

- An economic assessment to determine the economic rate of return is carried out over a 25-year span for the project (2003-2027) beginning in 2003, when project investment started to be put in place. It is based on the principle of quantifiable costs/benefit analysis of the project (investment costs, operating expenses, time savings arising from water supply, income gains attributable to a reduction in water-borne diseases) and use of the quantity of water provided to each beneficiary, that is 23 litres per day;

- Investments ran from 2003 to 2011 and covered the total cost of the project. They are assumed to have zero residual value at the end of the period. There will be no renewal either and will be the subject of maintenance supported by beneficiaries over the period (see above);

- The project’s beneficiary population began having access to drinking water in 2006 (see above);

- Operating expenses include maintenance costs and the wages of 30 repairmen from 2006; Hence the following:

Table 11 Trend in economic cash flow and calculation of the project’s economic rate of return at completion

ERR: 1.82% and NPV at 10%: 1,869,244,000 Ariary Operating Total economic Year Total project cost Total expenses Cash flow expenses income and gain 2003 275,814 275,814 -275,814 2004 357,843 357,843 -357,843 2005 2,934,188 2,934,188 -2,934,188 2006 6,427,457 0 6,427,457 2,240,042 -4,187,415 2007 4,860,253 105,077 4,965,330 2,311,724 -2,653,607 2008 5,856,617 108,411 5,965,028 2,385,699 -3,579,329 2009 1,900,057 111,851 2,011,908 2,462,041 450,133 2010 2,004,875 115,402 2,120,277 2,540,827 420,550 2011 1,525,348 119,066 1,644,414 2,622,133 977,719 2012 122,847 122,847 2,706,041 2,583,194 2013 126,750 126,750 2,792,635 2,665,885 2014 130,777 130,777 2,881,999 2,751,222 2015 134,933 134,933 2,974,223 2,839,290 2016 139,222 139,222 3,069,398 2,930,176 2017 144,188 144,188 3,167,619 3,023,431 2018 148,756 148,756 3,268,982 3,120,226 2019 153,470 153,470 3,373,590 3,220,120 2020 158,335 158,335 3,481,545 3,323,210 2021 163,356 163,356 3,592,954 3,429,598 2022 168,537 168,537 3,707,929 3,539,392 2023 173,884 173,884 3,826,582 3,652,698 2024 179,402 179,402 3,949,033 3,769,631 2025 185,097 185,097 4,075,402 3,890,305 2026 190,974 190,974 4,205,815 4,014,841 2027 197,849 197,849 4,340,401 4,142,552

ANNEX 4

STATUS OF CONTRACTS

Series of tables 1: Status of contracts (attached)

Series of tables 2: Procurement plan (attached)

LIST OF CONTRACTS BY COMPONENT AND BY CATEGORY / YEAR BY YEAR

PROCUREMEN CONTRACTORS CURRENT No. OBJECT T AMOUNT (full address) NATIONALITY PROCUREMENT SERVICE STATUS METHOD in MGA SPN SIGNATURE DURATION START EXP. END ACT. END COMPONENT 1: Drinking water supply GOODS 2005 3,203,553,012 Incl. of tax ICB 02- SOMECA, 26, rue Patrice 100% 04/MEM/DEA/CE Supply and fitting of 700 pumps ICB 2,669,627,510 Tax-Excl. Lumumba - 101 Malagasy 1 Jul 04 12 Dec 05 17.63 8 Dec 05 26 May 08 7 Mar 08 complete P/RDWSS Antananarivo 2,536,146,135 ADF 2009 669,798,733 Incl. of tax DP 02- SOMECA, 26, rue Patrice 09/MinEau/DG/D 100% Supply and fitting of 132 pumps Direct Purchase 558,165,611 Tax-Excl. Lumumba - 101 Malagasy Not required 6 Aug 09 Not required 14 Sep 09 11 Jun 10 30 Mar 11 OP/CEP/RDWSS complete Antananarivo - FAD 530,257,331 ADF 2011 Supply and fitting of two 67,441,524 Incl. of tax ENERGIE ET PC 02- photovoltaic solar pumping TECHNOLOGIE Sarl, 01/MinEau/SG/D systems in Naninora, District of 100% Pricing 56,201,270 Tax-Excl. centre commercial Malagasy G/CEP RDWSS - Betroka, ANOSY region and complete SOMACODIS Antanimena, FAD Ambia, District of Ihosy, - ADF BP 8566 - 101 Antananrivo IHOROMBE region WORK 2005 ICB 01- 5,304,429,189 Incl. of tax CGC Lot 098 A 04/MEM/DEA/CE Construction work for 350 100% ICB Ambohibao 105 Malagasy 6 Aug 04 25 May 05 9.73 30 Sep 05 20 Sep 07 4 Mar 08 P/RDWSS - Lot equipped boreholes LOT No. 1 4,420,357,658 Tax-Excl. complete Antananarivo 01 3,934,118,315 ADF

ICB 01- 4,582,294,080 Incl. of tax REVA Construction lot RH 04/MEM/DEA/CE Construction work for 350 100% ICB 55 Ambatoratsy - 206 Malagasy 6 Aug 04 9 Jun 05 10.23 31 Oct 05 21 Oct 07 18 Jun 08 P/RDWSS - Lot equipped boreholes LOT No. 2 3,818,578,400 Tax-Excl. complete ANTALAHA 206 02 3,398,534,776 ADF 2009 2,451,230,880 Incl. of tax TECTRA SARL Lot VF 120 ICB 03- Construction work for another 120 - Volotara 100% 08/ME/DG/DEPA/ ICB 2,042,692,400 Tax-Excl. Malagasy 13 Jan 09 8 Aug 09 6.90 1 Oct 09 29 Apr 10 5 Dec 10 equipped boreholes pumps Andoharanofotsy complete CEP/RDWSS Antananarivo 1,817,996,236 ADF

SERVICES 2005 2,990,929,512 Incl. of tax Burgeap 27 rue de DP 03- Vanves - 92772 Construction and supervision, 100% 04/MEM/DEA/CE LI BOULOGNE French 16 Jun 04 23 Mar 05 9.33 17 Jun 05 4 Nov 07 20 Dec 07 700 boreholes 2,492,441,260 Tax-Excl. complete P/RDWSS - FAD BILLANCOURT Cedex 2,268,121,547 ADF France 2010 430,036,048 Incl. of tax Etudes et conseils plus DP 01- Works supervision and control on lot II A 147 bis, 100% 08/MdE/DG/DOP LI 358,363,374 Tax-Excl. Malagasy 20 Jan 09 11 Mar 10 13.83 31 Mar 10 27 Oct 10 31 Dec 10 120 new water points Nanisana Iadanambola complete /RDWSS-FAD 322,527,036 ADF 101 Antananarivo notif = contract signed 19,699,712,980 MGA Incl. of tax

16,416,427,483 MGA Tax-Excl.

14,807,701,376 MGA ADF

4,892,011,603.81 MGA GOV’T

LIST OF CONTRACTS BY COMPONENT AND BY CATEGORY

CONTRACTORS CURRENT No. PURPOSE PROCUREMENT AMOUNT (full address) NATIONALITY PROCUREMENT SERVICE STATUS DURATI METHOD in MGA SPN SIGNATURE ON START EXP. END ACTUAL END in MGA COMPONENT 2: Sanitation and drinking troughs GOODS 2006 Incl. of 388,440,000 Entreprise de construction NCB 01- Supply and transport of tax MANASOA Lot IHS 5 terminated on 05/MEM/DEA/CEP/RDWSS- cement for latrines and NCB Tax- Malagasy 11 Nov 05 6 Dec 06 13.00 323,700,000 Andohatanjona ITAOSY 30/08/07 FAD-Lot N°01 drinking troughs Excl. 101 Antananarivo ADF Incl. of 33,154,560 Entreprise de construction NCB 01- Supply and transport of tax MANASOA Lot IHS 5 terminated 05/MEM/DEA/CEP/RDWSS- sheet metal for latrines and NCB Tax- Malagasy 11 Nov 05 6 Dec 06 13.00 27,628,800 Andohatanjona ITAOSY on30/08/07 FAD-Lot N°02 drinking troughs Excl. 101 Antananarivo ADF Incl. of 150,914,880 Entreprise de construction NCB 01- Supply and transport of steel tax MANASOA Lot IHS 5 terminated on 05/MEM/DEA/CEP/RDWSS- for concrete for latrines and NCB Tax- Malagasy 11 Nov 05 6 Dec 06 13.00 125,762,400 Andohatanjona ITAOSY 30/08/07 FAD-Lot N°02 drinking troughs Excl. 101 Antananarivo ADF 2008 Incl. of 1,113,620,906 tax NCB n° 01 BIS - Supply and transport of Entreprise MAHAY Tax - 18 Jul 07/MdE/DEPA/CEP/RDWSS materials to construct NCB Rue Maréchal Foch, Fort Malagasy 3 Nov 07 28 Feb 08 3.90 21 Apr 08 25 Aug 08 100% complete 928,017,421 Excl. 08 -FAD latrines and drinking troughs Dauphin

ADF 835,215,679 Incl. of 763,103,386 tax NCB 02- Entreprise NIRINA, F 45 100% complete Construction of 50 Tax - 18 Sep 08/MEM/DGE/DEPA/CEP NCB Cité Soavinandriana Malagasy 6 Aug 08 24 Nov 08 3.67 17 Dec 08 14 Aug 09 (+ 14 additional institutional latrines LOT N°1 635,919,488 Excl. 09 RDWSS- FAD-Lot N° 01 Antanarivo 101 latrines)

ADF 572,327,539 Incl. of 634,844,575 tax NCB 02- Construction of 50 Tax - ENTREPRISE SOA, Lot N° 10 Nov 08/MEM/DGE/DEPA/CEP NCB Malagasy 6 Aug 08 24 Nov 08 3.67 17 Dec 08 14 Aug 09 100% complete institutional latrines LOT N°2 529,037,146 Excl. II TSF Nord, Tulear 601 09 RDWSS- FAD-Lot N° 02

ADF 476,133,431 WORK NONE

SERVICES NONE 32 2,511,568,866 MGAIncl. of tax

2,092,974,055 MGATax-Excl.

1,883,676,650 MGA ADF

627,892,217 MGA GVT

No. PURPOSE PROCUREMEN AMOUNT CONTRACTORS NATIONALITY PROCUREMENT SERVICE CURRENT T (full address) STATUS METHOD SPN SIGNATURE DURATION START PLANNED END ACTUAL END COMPONENT 3: Community health support GOODS

2007 Incl. of 228,480,000 Société DELTA S.A.R.l, Rue NCB 02- tax Supply of insecticide- Ravoninahitriniarivo 100% 05/MEM/DEA/CEP/RD NCB Tax- Malagasy 11 Nov 05 22 Jan 07 14.57 11 Dec 06 22 Jan 07 2 Jul 07 treated bed nets 190,400,000 Ankorondrano 101 complete WSS-FAD excl. Antananarivo 127,568,000 ADF WORKS

NONE

SERVICES NONE

228,480,000 MGA Incl. of tax

190,400,000 MGA Tax-excl.

127,568,000 MGA ADF

100,912,000 MGA GOV’T

No. PURPOSE PROCURE AMOUNT CONTRACTORS NATIONALITY PROCUREMENT SERVICE CURRENT MENT (full address) SITUATION METHOD SPN SIGNATURE DURATION METHOD COMPONENT 4: Community mobilization and training GOODS NONE WORK NONE SERVICES 2007 Community 2,315,038,690 Incl. of tax MCD INTERNATIONAL DP 02- mobilization and division 8401 Colesville 100% 04/MEM/DEA/CEP/RD LI 1,929,198,908 Tax-excl. US 16 Jun 04 24 May 05 11.4 23 Jun 05 7 Jul 08 23 Jul 08 training for 700 Road, suite 425 Silver complete WSS – FAD boreholes 1,736,279,017 ADF Spring, Maryland 20910 2009 Community 645,744,513 Incl. of tax MCD INTERNATIONAL GG 01- mobilization and Direct division 8401 Colesville Not 19 Sep 31 Dec 100% 09/MinEau/DG/DOP/C training for 120 538,120,428 Tax-excl. US Not required 9 Jul 09 23 Nov 09 Purchase Road, suite 425 Silver required 10 10 complete EP/RDWSS - FAD new watering 484,308,385 ADF Spring, Maryland 20910 points

2,960,783,203 MGA Incl. of tax

2,467,319,336 MGA Tax-excl

2,220,587,402 MGA ADF

740,195,801 MGA GOV’T

No. PURPOSE PROCUREMENT AMOUNT CONTRACTORS NATIONALITY PROCUREMENT SERVICE CURRENT (full address) SITUATION METHOD SPN SIGNATURE DURATION METHOD

COMPONENT 5: Institutional support

GOODS 2004 Incl. of CFN n° 02- 35,893,771 tax APMA Zone industrielle 03/RDWSS- Supply of IT Tax- TALOMIS ZITAL Malagasy 17 Dec 03 7 May 04 4.73 7 Jun 04 7 Jul 04 21 Jul 04 100% complete FAD/CFN/EQUIPE equipment, PIU 29,911,476 excl. Ankorondrano MENT 29,911,476 ADF Incl. of CFN 04- 34,980,043 TECHNIQUE ET Supply of hydro- tax 06/RDWSS- PRECISION Rue geological equipment, Tax- Malagasy 17 Dec 03 7 May 04 4.73 7 Jun 04 7 Jul 04 21 Jul 04 100% complete FAD/CFN/Equipem 29,150,036 INDIRA GANDHI - 101 PIU excl. ents Antananarivo 29,150,036 ADF Incl. of CFN n° 01- 18,036,319 tax FOCUS Zone Galaxy n° 03/RDWSS- Supply of office Tax- 36 et 37 Andraharo Malagasy 16 Dec 03 7 May 04 4.77 15 May 04 14 Jun 04 15 Jun 04 100% complete FAD/CFN/Equipem equipment, PIU 15,030,266 excl. Antananarivo ent 13,527,239 ADF

Procurement of 3 Tax- IAPSO Copenhagen, 158,643,243 Danish 7 Jan 04 6 Apr 04 10 Aug 04 100% complete vehicles, PIU excl. Denmark 158,643,243 ADF

CFN N° 01- TOMATE TOUR 05/RDWSS-FAD ACCOUNTING Tax- EUROPA 125 694532 28,750,000 French 5 Apr 04 Not available Not available 20 Jan 05 5 Jan 08 20 Feb 09 100% complete /CFN/EQUIPEMEN SOFTWARE excl. TTHIAIS CEDEX - T 26,162,500 ADF PARIS France 2005 Incl. of 65,467,285 Société TELEMAD Villa CFN 03 bis - Supply of tax Betania, Lot II W 4 Bis Tax- 04/RDWSS- communications 54,556,071 Ambodiraotra Malagasy 26 Jul 04 11 Aug 04 0.53 26 Aug 05 25 Sep 05 3 Aug 05 100% complete FAD/Equipements equipment, PIU excl. Ampandrana 54,556,071 ADF Antananarivo WORK NONE

SERVICES 2005 Incl. 11,337,600 Cabinet 01- of tax MPANAZAVA Tax- 04/MEM/DEA/C 2004 - 2005 audit 9,448,000 27, rue Andriba - Malagasy 18 Nov 03 23 Mar 05 16.37 2 May 05 1 Jul 05 30 Jun 05 100% complete EP/RDWSS-FAD excl. Mahamasina 8,503,200 ADF Antananarivo-101 2007 Incl. Cabinet Martin 22,157,400 of tax RASOANAIVO DP 01- 070 B bis - 06/MEM/DEA/C 2006 – 2007 audit Tax- Malagasy 10 Jul 06 19 Jul 07 12.47 2 May 07 1 Jul 07 30 Jun 07 100% complete 18,464,500 AMBOHIBAO - 105 EP/RDWSS-FAD excl. ANTANANARIVO 16,618,050 ADF MADAGASCAR 2010 Incl. Cabinet Martin 25,119,000 DP¨03- of tax RASOANAIVO 08/MdE/DG/DOP Tax- 070 B bis - 2008 – 2009 audit 20,932,500 Malagasy 10 Jul 06 19 Jul 07 12.47 2 May 09 1 Jul 09 30 Jun 09 100% complete /CEP/RDWSS - excl. AMBOHIBAO - 105 FAD ANTANANARIVO 18,839,250 ADF MADAGASCAR 2011 Incl. Cabinet Martin 22,385,000 of tax RASOANAIVO Tax- 070 B bis - Not 2010 – 2011 audit 18,654,167 Malagasy Not available In progress In progress excl. AMBOHIBAO - 105 available ANTANANARIVO 16,788,750 ADF MADAGASCAR

422,769,661 MGA Incl. of tax

383,540,258 MGA Tax-excl.

372,699,815 MGA ADF

50,069,846 MGA GVT

PROCUREMENT PLAN (PP)

General information Complete grey boxes only! Country/Organization MADAGASCAR Project/Programme description RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT IN THE FAR SOUTH Project/Programme SAP identification # P-MG-E00-002 Loan/Grant # 2100150000566 Implementing agency Grand Sud RDWSS PIU Date procurement plan approved x Date of General Procurement Notice (GPN) 11/04/2001 Expected procurement action NO Period covered by this PP From 2003 to 2011 Project completion Pre-examination threshold Decisions on purchases must be pre-examined by the Bank as indicated in Annex B5 of the Appraisal Report

1. G O O D S

Goods and Services other than Consultancy Services (see Note 1) Pre-examination Procurement method threshold Comments (UA equiv.) 1. INTERNATIONAL COMPETITIVE BIDDING Bidding documents and Bid review report 2. NATIONAL COMPETITIVE BIDDING Bidding documents and Bid review report 3. LETTER OF INVITATION Request for proposal and Proposal evaluation report 4. SUPPLIER CONSULTATION Bidding documents and Bid review report 5. DIRECT PURCHASE Not specified 6.

Various lots with procurement BASELINE DATA Bidding documents Pre-Qualification (PQ) Pre-Qualification (PQ) Bidding period Bid review Draft contract Contract award Contract execution methods and schedule

Description* Lot Date Date of no- Publication Estimated Procurement Pre- Nat./Reg. Examin. Estimated Plan/ Date Date of PQN Date of Date Date of Date call Bid Date bid Date of Date draft Date of Contract Date Date Start Completio number SPN*/PQN objection to date amount in method Qualification preference prior or date of bids Rev./ tender non- publication applications appraisal non- for tender opening assessmen non- contract non- amount in contract contract date n date objection * received SPN/PQN (UNDB) currency (Y/N) (Y/N) after Actual documents objection date report made date t report objection received objection UA (000) awarded signed SPN/PQN (000) received received received

9 Jul 1 Jan 03 15 Jan 03 22 Jan 03 1,800,000 ICB N N 5 Mar 03 Plan 1 Jan 03 15 Jan 03 NA NA NA NA 22 Jan 03 5 Mar 03 9 Apr 03 30 Apr 03 14 May 03 28 May 03 600.00 11 Jun 03 25 Jun 03 03 Supply and fitting 20 Nov of 700 pumps 15 May 04 29 May 04 5 Jun 04 1,800,000 ICB N N Prior 17 Jul 04 Rev. 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 600.00 23 Oct 04 6 Nov 04 04 9 May 07 8 Dec 16 Aug 04 1 Jul 04 2,669,628 ICB N N Prior 15 Oct 04 Actual 16 Aug 04 NA NA NA NA 1 Jul 04 15 Oct 04 13 May 05 30 Aug 05 889.88 8 Dec 05 12 Dec 05 05 7 Mar 08 109,00 6 Jan 1 Jul 08 15 Jul 08 22 Jul 08 ICB N N 2 Sep 08 Plan 1 Jul 08 15 Jul 08 NA NA NA NA 22 Jul 08 2 Sep 08 7 Oct 08 28 Oct 08 11 Nov 08 25 Nov 08 158.35 9 Dec 08 23 Dec 08 09 DIRECT Supply and fitting PURCHAS 20 Jan of 132 pumps 15 Jul 08 29 Jul 08 5 Aug 08 460,050 E N N Prior 16 Sep 08 Rev. 15 Jul 08 29 Jul 08 NA NA NA NA 5 Aug 08 16 Sep 08 21 Oct 08 11 Nov 08 25 Nov 08 9 Dec 08 158.35 23 Dec 08 6 Jan 09 09 17 Oct 09 DIRECT PURCHAS 14 Sep 15 Oct 08 558,166 E N N Prior Actual 15 Oct 08 NA NA NA NA 7 Jul 09 9 Jul 09 194.79 4 Sep 09 6 Aug 09 09 31 Mar 11 ANO Ppe date 26 Mar 10 20 Nov Supply and 15 May 04 29 May 04 5 Jun 04 546,000 NCB N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 23 Oct 04 6 Nov 04 04 transport of cement for 17 Apr latrines and 10 Oct 05 24 Oct 05 31 Oct 05 546,000 NCB N N Prior Rev. 10 Oct 05 24 Oct 05 NA NA NA NA 31 Oct 05 12 Dec 05 16 Jan 06 6 Feb 06 20 Feb 06 6 Mar 06 20 Mar 06 3 Apr 06 06 drinking troughs terminat 27 Sep 05 11 Oct 05 11 Nov 05 - NCB N N Prior 27 Dec 05 Actual 27 Sep 05 11 Oct 05 NA NA NA NA 11 Nov 05 27 Dec 05 29 Jun 06 8 Dec 06 ed on 30 Aug 07

Acq. not Supply and planned Plan transport of sheet 17 Apr metal for latrines 10 Oct 05 24 Oct 05 31 Oct 05 N N Prior 12 Dec 05 Rev. 10 Oct 05 24 Oct 05 NA NA NA NA 31 Oct 05 12 Dec 05 16 Jan 06 6 Feb 06 20 Feb 06 6 Mar 06 20 Mar 06 3 Apr 06 06 and drinking troughs terminat 27 Sep 05 11 Oct 05 11 Nov 05 N N Prior 27 Dec 05 Actual 27 Sep 05 11 Oct 05 NA NA NA NA 11 Nov 05 27 Dec 05 29 Jun 06 8 Dec 06 ed on 30 Aug 07

20 Nov Supply and 15 May 04 29 May 04 5 Jun 04 NCB N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 23 Oct 04 6 Nov 04 04 transport of steel for concrete for 17 Apr latrines and 10 Oct 05 24 Oct 05 31 Oct 05 NCB N N Prior Rev. 10 Oct 05 24 Oct 05 NA NA NA NA 31 Oct 05 12 Dec 05 16 Jan 06 6 Feb 06 20 Feb 06 6 Mar 06 20 Mar 06 3 Apr 06 06 drinking troughs terminat 27 Sep 05 11 Oct 05 11 Nov 05 NCB N N Prior 27 Dec 05 Actual 27 Sep 05 11 Oct 05 NA NA NA NA 11 Nov 05 27 Dec 05 29 Jun 06 8 Dec 06 ed on 30 Aug 07

20 Nov Supply of building 15 May 04 29 May 04 5 Jun 04 2,670,000 NCB N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 890.00 23 Oct 04 6 Nov 04 04 materials for 13 Sep latrines and 8 Mar 06 22 Mar 06 29 Mar 06 2,670,000 NCB N N Prior Rev. 8 Mar 06 22 Mar 06 NA NA NA NA 29 Mar 06 10 May 06 14 Jun 06 5 Jul 06 19 Jul 06 2 Aug 06 890.00 16 Aug 06 30 Aug 06 06 drinking troughs 21 Apr 26 Oct 07 3 Nov 07 928,017 NCB N N Prior 18 Dec 07 Actual 26 Oct 07 NA NA NA NA 3 Nov 07 18 Dec 07 10 Jan 08 14 Feb 08 10 Jan 08 14 Feb 08 309.34 20 Feb 08 28 Feb 08 08 18 Jul 08

19.47 Acq. not planned N N Plan Construction of 20 Nov 50 institutional 380,000 NCB N N Prior 17 Jul 08 Rev. 15 May 08 29 May 08 NA NA NA NA 5 Jun 08 17 Jul 08 21 Aug 08 11 Sep 08 25 Sep 08 9 Oct 08 126.67 23 Oct 08 6 Nov 08 08 latrines LOT 1 17 Dec 16 Jun 08 18 Jul 08 6 Aug 08 635,919 NCB N N Prior 5 Sep 08 Actual 16 Jun 08 18 Jun 08 NA NA NA NA 6 Aug 08 5 Sep 08 15 Oct 08 6 Nov 08 15 Oct 08 6 Nov 08 211.97 24 Nov 08 24 Nov 08 08 18 Sep 09

Acq. not planned N N Construction of 20 Nov 50 institutional 380,000 NCB N N Prior 17 Jul 08 Rev. 15 May 08 29 May 08 NA NA NA NA 5 Jun 08 17 Jul 08 21 Aug 08 11 Sep 08 25 Sep 08 9 Oct 08 126.67 23 Oct 08 6 Nov 08 08 latrines LOT 2 17 Dec 16 Jun 08 18 Jul 08 6 Aug 08 529,037 N N Prior 5 Sep 08 Actual 16 Jun 08 18 Jul 08 NA NA NA NA 6 Aug 08 5 Sep 08 15 Oct 08 6 Nov 08 15 Oct 08 6 Nov 08 176.35 24 Nov 08 24 Nov 08 08 10 Nov 09

Supply of 20 Nov mosquito nets 15 May 04 29 May 04 5 Jun 04 240,000 NCB N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 80.00 23 Oct 04 6 Nov 04 04

38 with insecticide 240,000 NCB N N Prior 5 Mar 05 Rev. 1 Jan 05 15 Jan 05 NA NA NA NA 22 Jan 05 5 Mar 05 9 Apr 05 30 Apr 05 14 May 05 28 May 05 80.00 11 Jun 05 25 Jun 05 9 Jul 05 11 Dec 190,400 N N Prior 27 Dec 05 Actual 24 Oct 05 NA NA NA NA 11 Nov 05 27 Dec 05 1 Jun 06 1 Dec 06 29 Jun 06 1 Dec 06 63.47 4 Dec 06 22 Jan 07 06 2 Jul 07 5.20 6.10 6.77 10 Jun 4 Dec 03 8 Dec 03 30,000 SC N N 5 Feb 04 Plan 4 Dec 03 18 Dec 03 NA NA NA NA 25 Dec 03 5 Feb 04 11 Mar 04 1 Apr 04 15 Apr 04 29 Apr 04 10.00 13 May 04 27 May 04 04

Supply of IT N N Prior Rev. NA NA NA NA 10.00 equipment, PIU

7 Jun 29,911 N N Prior Actual 4 Dec 03 8 Dec 03 NA NA NA NA 17 Dec 03 12 Jan 04 15 Mar 04 31 Mar 04 15 Mar 04 31 Mar 04 9.97 23 Apr 04 7 May 04 04 21 Jul 04

20 Nov 15 May 04 29 May 04 5 Jun 04 30,000 SC N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 10.00 23 Oct 04 6 Nov 04 04 Supply of hydro- geological N N Prior Rev. NA NA NA NA 10.00 equipment, PIU 7 Jun 4 Dec 03 8 Dec 03 29,150 N N Prior Actual 4 Dec 03 8 Dec 03 NA NA NA NA 17 Dec 03 12 Jan 04 15 Mar 04 31 Mar 04 15 Mar 04 31 Mar 04 9.72 23 Apr 04 7 May 04 04 21 Jul 04

20 Nov Supply of 15 May 04 29 May 04 5 Jun 04 30,000 SC N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 10.00 23 Oct 04 6 Nov 04 04 communications equipment, PIU N N Prior Rev. NA NA NA NA 10.00 26 Aug 0 Jan 00 0 Jan 00 54,556 N N Prior Actual NA NA NA NA 26 Jul 04 11 Aug 04 15 Oct 04 11 Feb 05 21 Oct 05 18.19 13 Jun 05 05 3 Aug 05

20 Nov 15 May 04 29 May 04 5 Jun 04 30,000 SC N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 10.00 23 Oct 04 6 Nov 04 04 Supply of office equipment, PIU N N Prior Rev. NA NA NA NA 10.00 15 May 15,030 N N Prior Actual NA NA NA NA 16 Dec 03 12 Jan 04 15 Mar 04 31 Mar 04 5.01 23 Apr 04 7 May 04 04 15 Jun 04

20 Nov 15 May 04 29 May 04 5 Jun 04 240,000 IAPSO N N 17 Jul 04 Plan 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 80.00 23 Oct 04 6 Nov 04 04 Procurement of 3 vehicles, PIU N N Prior Rev. NA NA NA NA 80.00

158,643 N N Prior Actual NA NA NA NA 52.88 10 Aug 04

Plan Procurement of accounting 20 Nov software 15 May 04 29 May 04 5 Jun 04 240,000 IAPSO N N 17 Jul 04 Rev. 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 25 Sep 04 9 Oct 04 80.00 23 Oct 04 6 Nov 04 04 20 Jan SC Prior Actual 17 Mar 04 3 Apr 04 5 Apr 04 3 May 04 7 Oct 04 7 Oct 04 9.58 05 20 Feb 09 Total cost of goods 5,646,000 Plan 1,858.35

6,716,050 Rev. 2,191.69

5,813,489 Actual 1,956.15

SPN: Specific procurement notice PQN: Pre-qualification notice Note 1. (Additional information on the procurement of goods and services other than consultancy services, such as pre-qualification and any other special arrangements.)

PROCUREMENT PLAN (PP)

1 General information Complete grey boxes only! Country/Organization MADAGASCAR Project/Programme description GRAND SUD RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT Project/Programme SAP identification # P-MG-E00-002 Loan/Grant # 2100150000566 Implementing agency RDWSS Far South PIU Date procurement plan approved x Date of General Procurement Notice (GPN) 11/04/2001 Expected procurement action NO Period covered by this PP From 2003 to 2011 Project completion

Pre-examination threshold: Decisions on purchases must be pre-examined by the Bank as indicated in Annex B5 of the Appraisal Report

2. W O R K S 2 Works (see Note 2) Pre-examination threshold (UA equiv.) Procurement method Comments 1. INTERNATIONAL COMPETITIVE BIDDING Bidding documents and Bid review report 2. NATIONAL COMPETITIVE BIDDING Bidding documents and Bid review report 3. LETTER OF INVITATION Request for proposal and Proposal evaluation report 4. SUPPLIER CONSULTATION Bidding documents and Bid review report 5. DIRECT PURCHASE Not specified

Various lots with Pre-Qualification procurement BASELINE DATA Bidding documents Pre-Qualification (PQ) Bidding period Bid assessment Draft contract Contract award Contract execution (PQ) methods and schedule Lot number Date Date of non- Publicatio Procurement Pre- Nat./Reg. Examin. Estimated Plan/ Date bidding Date of Date Date of Date Bid Date bid Date of Date Date of Contract Date contract Date Start date Complet Estimated SPN*/PQ objection to n date Flat-rate method Qualificati preference prior or date of Rev./ documents non- PQN Date appraisal non- biddingcomp opening assessme non- draft non- amount in awarded contract ion date amount in objecti Description* N* SPN/PQN (UNDB) or unit on (Y/N) (Y/N) after bids Actual received objection publicati of report etitive date nt report objection contract objection UA (000) signed currency on received SPN/PQN price on date applications received bidding received received (000) made 14 May 28 Jun Construction 1.00 1 Jan 03 15 Jan 03 22 Jan 03 1,470 UP ICB N N Prior 22 Jan 03 Plan 1 Jan 03 15 Jan 03 NA NA NA NA 22 Jan 03 5 Mar 03 9 Apr 03 30 Apr 03 03 28 May 03 1,470.00 11 Jun 03 25 Jun 03 9 Jul 03 05 work for 350 25 Sep 10 Nov boreholes fitted 2.00 15 May 04 29 May 04 5 Jun 04 1,470 UP ICB N N Prior 5 Jun 04 Rev. 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 04 9 Oct 04 1,470.00 23 Oct 04 6 Nov 04 20 Nov 04 06 with LOT No.1 4 Mar 2.00 24 May 04 3 Jun 04 6 Aug 04 1,384 UP ICB N N Prior 6 Aug 04 Actual 24 May 04 3 Jun 04 NA NA NA NA 6 Aug 04 18 Oct 04 27 May 04 1,384.39 25 May 05 25 May 05 30 Sep 05 08

14 May 28 Jun Construction 1.00 1 Jan 03 15 Jan 03 22 Jan 03 1,470 UP ICB N N Prior 22 Jan 03 Plan 1 Jan 03 15 Jan 03 NA NA NA NA 22 Jan 03 5 Mar 03 9 Apr 03 30 Apr 03 03 28 May 03 1,470.00 11 Jun 03 25 Jun 03 9 Jul 03 05 work for 350 25 Sep 10 Nov boreholes fitted 2.00 15 May 04 29 May 04 5 Jun 04 1,470 UP ICB N N Prior 5 Jun 04 Rev. 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 04 9 Oct 04 1,470.00 23 Oct 04 6 Nov 04 20 Nov 04 06 with LOT No.2 18 Jun 2.00 24 May 04 3 Jun 04 6 Aug 04 1,504 UP ICB N N Prior 6 Aug 04 Actual 24 May 04 3 Jun 04 NA NA NA NA 6 Aug 04 18 Oct 04 27 May 04 1,503.69 9 Jun 05 9 Jun 05 31 Oct 05 08

13 May 3 Feb Construction 1.00 1 Jan 04 15 Jan 04 22 Jan 04 740 UP ICB N N Prior 22 Jan 04 Plan 1 Jan 04 15 Jan 04 NA NA NA NA 22 Jan 04 4 Mar 04 8 Apr 04 29 Apr 04 04 27 May 04 740.00 10 Jun 04 24 Jun 04 8 Jul 04 05 work for 25 Sep 18 Jun another 120 1.00 15 May 04 29 May 04 5 Jun 04 740 UP ICB N N Prior 5 Jun 04 Rev. 15 May 04 29 May 04 NA NA NA NA 5 Jun 04 17 Jul 04 21 Aug 04 11 Sep 04 04 9 Oct 04 740.00 23 Oct 04 6 Nov 04 20 Nov 04 05 boreholes fitted with pumps 29 Apr 5 Dec 1.00 24 May 04 3 Jun 04 13 Jan 09 680 UP ICB N N Prior 13 Jan 09 Actual 24 May 04 3 Jun 04 NA NA NA NA 13 Jan 09 27 Mar 09 29 Apr 09 26 Jun 09 09 26 Jun 09 680.00 4 Sep 09 8 Aug 09 1 Oct 09 10

Plan Rev. Actual

Plan Rev. Actual Total cost of works 3,680.00 Plan 3,680.00

3,680.00 Rev. 3,680.00

3,568.08 Actual 3,568.08 SPN: Specific procurement notice PQN: Pre-qualification notice Note 2 : Additional information on the procurement of work such as pre-qualification or any other special procurement arrangement. 41

PROCUREMENT PLAN (PP)

General information 1 Complete grey cells only! Country/Organization: MADAGASCAR Project/Programme description GRAND SUD RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT Project/Programme SAP identification # P-MG-E00-002 Loan/Grant # 2100150000566 Implementing agency RDWSS Far South PIU Date procurement plan approved x Date of General Procurement Notice (GPN) 11/04/2001 Expected procurement action NO Period covered by this PP From 2003 to 2011 Project completion

Pre-examination threshold Decisions on purchases must be pre-examined by the Bank as indicated in Annex B5 of the Appraisal Report

3. CONSULTANTS

2 Consultants (see Note 3)

Pre-examination Procurement and selection method threshold (UA equiv.) Comments

1. INTERNATIONAL COMPETITIVE BIDDING Bidding documents and Bid review report 2. NATIONAL COMPETITIVE BIDDING Bidding documents and Bid review report 3. LETTER OF INVITATION Request for proposal and Proposal evaluation report 4. SUPPLIER CONSULTATION Bidding document and Bid review report 5. OVER-THE-COUNTER Not specified 6.

Various services with selection Expression of interest Terms of reference Request for proposals Proposal submission Technical (T) & Financial (F) Contract Baseline data Shortlist Draft contract Contract award methods and (EoI) (ToR) (RFP) period assessment execution schedule

Date Date Non- Date Co Selecti Flat Estimated Date of Date Date draft Contract of Examin. Plan/ Date of Date of Date of objection Draft contract Date of Final Date contr mpl Date EoI on rate or amount in Estimated Publicatio Award Date Date Date Invitation proposal appraisal financial contra amount Start Description* non- prior or Rev./ non- non- non- to amount in non- contract contract act etio received metho time currency date n date date received received received date submissio report (T) proposals ct in UA date objecti after Actual objection Objection objection appraisal currency (000) objection received awarded signe n d spent (000) n/opening submitted opened receiv (000) on report (T) d date ed

24 29 19 17 Sep 24 Sep 12 Nov 26 Nov 12 Nov 26 Nov 10 Dec 25 Mar Jun Jul Aug 02 02 LI FR 3,480,000 Prior 4 Mar 03 Plan 1 Oct 02 29 Oct 02 02 02 02 02 02 14 Jan 03 21 Jan 03 4 Mar 03 03 15 Apr 03 29 Apr 03 03 3,480,000.00 8 Jul 03 5 Aug 03 1,160.00 15 Jul 03 03 03 Installation and 20 18 22 12 supervision of 13 Mar Mar 27 Mar 22 May 22 May Dec Jan Feb 2 Jul 700 boreholes 04 04 LI FR 3,480,000 Prior 28 Aug 04 Rev. 04 24 Apr 04 8 May 04 04 8 May 04 04 5 Jun 04 10 Jul 04 17 Jul 04 28 Aug 04 18 Sep 04 9 Oct 04 23 Oct 04 04 3,480,000.00 1 Jan 05 29 Jan 05 1,160.00 8 Jan 05 05 05 07 23 20 12 Mar 24 May Mar 17 Jun Dec LI FR 2,488,251 Prior 4 Aug 04 Actual 04 8 Apr 04 04 3 Jun 04 16 Jun 04 4 Aug 04 21 Oct 04 16 Sep 04 2,488,250.68 21 Oct 04 759.93 9 Jun 05 05 05 07

543.00 18.10

Plan Supervision and checking work 25 29 on 120 new 10 Nov 15 Dec 22 Dec 16 Mar May Jun 20 Jul watering points LI FR Prior 2 Feb 10 Rev. 1 Sep 09 29 Sep 09 13 Oct 09 27 Oct 09 13 Oct 09 27 Oct 09 09 09 09 2 Feb 10 23 Feb 10 10 30 Mar 10 10 8 Jun 10 6 Jul 10 15 Jun 10 10 10 11 31 31 9 May 31 Jul 23 Mar 3 Jun Mar Mar Dec 06 06 LI FR 358,363 Prior 13 Mar 09 Actual 16 Jan 09 16 Jan 09 20 Jan 09 13 Mar 09 09 23 Apr 09 29 Apr 09 09 358,363.37 3 Sep 09 125.06 1 Dec 09 10 10 10

25 23 27 17 18 May Mar 13 May 27 May 13 May 27 May Dec Jan Feb 02 02 LI FR 2,310,000 Prior 2 Sep 02 Plan 1 Apr 02 29 Apr 02 02 02 02 02 10 Jun 02 15 Jul 02 22 Jul 02 2 Sep 02 23 Sep 02 14 Oct 02 28 Oct 02 02 2,310,000.00 6 Jan 03 3 Feb 03 770.00 13 Jan 03 03 03 Community mobilization 20 18 22 12 and training for 13 Mar Mar 27 Mar 22 May 22 May Dec Jan Feb 2 Jul 700 boreholes 04 04 LI FR 2,310,000 Prior 28 Aug 04 Rev. 04 24 Apr 04 8 May 04 04 8 May 04 04 5 Jun 04 10 Jul 04 17 Jul 04 28 Aug 04 18 Sep 04 9 Oct 04 23 Oct 04 04 2,310,000.00 1 Jan 05 29 Jan 05 770.00 8 Jan 05 05 05 07 24 23 12 Mar 24 May May 23 Jun Jul LI FR 1,929,199 Prior 4 Aug 04 Actual 04 8 Apr 04 04 3 Jun 04 16 Jun 04 4 Aug 04 21 Oct 04 16 Sep 04 1,929,198.91 21 Oct 04 632.32 17 Jan 05 05 05 08

726,00 24,20 22,30

Plan Community DIRE mobilization CT 24 29 19 7 and training for PURC 12 Feb 26 Feb 12 Mar Sep Oct Nov Apr 120 watering HASE FR Prior 4 Jun 09 Rev. 1 Jan 09 29 Jan 09 09 09 12 Feb 09 26 Feb 09 09 16 Apr 09 23 Apr 09 4 Jun 09 25 Jun 09 16 Jul 09 30 Jul 09 09 8 Oct 09 5 Nov 09 15 Oct 09 09 09 12 points DIRE CT 23 23 31 PURC 7 Oct Oct Nov Dec HASE FR 538,120 Prior Actual 09 538,120.43 9 Jul 09 179.37 09 09 10

24 29 19 17 Sep 24 Sep 12 Nov 26 Nov 12 Nov 26 Nov 10 Dec 25 Mar Jun Jul Aug 02 02 LI FR 30,000 Prior 4 Mar 03 Plan 1 Oct 02 29 Oct 02 02 02 02 02 02 14 Jan 03 21 Jan 03 4 Mar 03 03 15 Apr 03 29 Apr 03 03 30,000.00 8 Jul 03 5 Aug 03 10.00 15 Jul 03 03 03

2003-2004 – 24 29 19 2005 audit 17 Sep 24 Sep 12 Nov 26 Nov 12 Nov 26 Nov 10 Dec 25 Mar Jun Jul Aug 02 02 LI FR 30,000 Prior 4 Mar 03 Rev. 1 Oct 02 29 Oct 02 02 02 02 02 02 14 Jan 03 21 Jan 03 4 Mar 03 03 15 Apr 03 29 Apr 03 03 30,000.00 8 Jul 03 5 Aug 03 10.00 15 Jul 03 03 03 23 30 18 Nov 15 Dec 23 Mar Mar 2 May Jun 3 Dec 03 LI FR 9,448 Prior 13 Feb 04 Actual 03 3 Dec 03 8 Dec 03 03 13 Jan 04 13 Feb 04 20 Feb 04 9,448.00 8 Jun 04 3.15 05 05 05 05

30,000 Plan 30,000.00 10.00

2006 – 2007 24 29 19 audit 24 Sep 12 Nov 26 Nov 12 Nov 26 Nov 10 Dec 25 Mar Jun Jul Aug 17 Sep 06 06 LI FR 30,000 Prior 4 Mar 07 Rev. 1 Oct 06 29 Oct 06 06 06 06 06 06 14 Jan 07 21 Jan 07 4 Mar 07 07 15 Apr 07 29 Apr 07 07 30,000.00 8 Jul 07 5 Aug 07 10.00 15 Jul 07 07 07 15 19 30 3 Jul 20 May 13 Dec Dec Jul 2 May Jun 30 May 06 06 LI FR 18,465 Prior 28 Aug 06 Actual 20 Apr 06 06 19 Jun 06 3 Jul 06 19 Jun 06 3 Jul 06 19 Jun 06 3 Jul 06 10 Jul 06 28 Aug 06 22 Oct 06 06 06 18,464.50 2 Feb 07 6.15 23 Feb 07 07 07 07

30,000 Plan 30,000.00 10.00

2008 – 2009 24 29 19 audit 24 Sep 12 Nov 26 Nov 12 Nov 26 Nov 10 Dec 25 Mar Jun Jul Aug 17 Sep 08 08 LI FR 30,000 Prior 4 Mar 09 Rev. 1 Oct 08 29 Oct 08 08 08 08 08 08 14 Jan 09 21 Jan 09 4 Mar 09 09 15 Apr 09 29 Apr 09 09 30,000.00 8 Jul 09 5 Aug 09 10.00 15 Jul 09 09 09 30 30 12 Dec 26 Dec 31 Dec 3 Mar 31 Mar Apr 2 May Jun LI FR 20,933 Prior 23 Feb 09 Actual 08 08 08 23 Feb 09 3 Mar 09 2 Apr 09 26 Feb 09 09 20,932.50 09 6.98 30 Apr 10 10 10 10

24 29 19 24 Sep 12 Nov 26 Nov 12 Nov 26 Nov 10 Dec 25 Mar Jun Jul Aug 17 Sep 10 10 LI FR 0 Prior 4 Mar 11 Plan 1 Oct 10 29 Oct 10 10 10 10 10 10 14 Jan 11 21 Jan 11 4 Mar 11 11 15 Apr 11 29 Apr 11 11 8 Jul 11 5 Aug 11 15 Jul 11 11 11

2010 – 2011 24 29 19 audit 12 Nov 26 Nov 12 Nov 26 Nov 10 Dec 25 Mar Jun Jul Aug LI FR 0 Prior 4 Mar 11 Rev. 1 Oct 10 29 Oct 10 10 10 10 10 10 14 Jan 11 21 Jan 11 4 Mar 11 11 15 Apr 11 29 Apr 11 11 8 Jul 11 5 Aug 11 15 Jul 11 11 11

22,385 Prior 21 Jan 11 Actual 15 Oct 10 29 Oct 10 No No No 8 Dec 10 21 Jan 11 22,385.00 7.50

Total cost of services 5,880,000 Plan 1,960.00

5,880,000 Rev. 1,960.00

5,385,163 Actual 1,720.46

Note 3

(Additional information on

procurement of Consultants or any other special arrangements)

44 ANNEX 5 a

LIST OF SUPPORTING DOCUMENTS

1. Appraisal report: Madagascar – Proposal to award an ADF loan of UA 7,930,000 to finance the Grand Sud Rural Drinking Water Supply and Sanitation Project. 2. PCR produced by the PIU 3. Quarterly ADF Grand Sud RDWSS project activity reports: - January-February-March 2011 – Report 29; - October-November-December – Report 28 4. RDWSS-ADF account audit reports - Year ending 31/12/2004 - Year ending 31/12/2005 - Year ending 31/12/2006 - Year ending 31/12/2007 - Year ending 31/12/2008 - Year ending 31/12/2009 5. Loan Agreement Document –Law No. 2001-010 6. Summary Loan Ledger RDWSS – ADF Madagascar (ADB) 7. Summary of data from the socio-economic survey carried out for the project, and baseline data used for the economic assessment and to calculate the economic rate or return 8. Mission aide-memoire for the project completion report preparation mission

45 ANNEX 6

PROJECT DESCRIPTION AND OUTCOMES

6-1 PROJECT BACKGROUND AND DESIGN

A great majority of the Malagasy population have no access to improved drinking water and sanitation services. The situation is even more glaring in rural areas where 87% of the population are without drinking water and 75% have no access to improved sanitation infrastructure. Such deprivation explains the prevalence of water-borne diseases and the recurrence of cholera epidemics, compounding the situation in rural areas where malaria and acute respiratory infections are the main causes of mortality especially among infants (76.8 per 1,000 in 1998).

Aware of the pressing need to improve the provision of these basic services, the Government of Madagascar launched an ambitious programme to reform the water and sanitation sector through the Sector Strategy and Plan of Action (SSPA). Sector strategies and policies have already been prepared and reorganization of the sector is nearing completion. Guidelines for this sector were confirmed in a Government Sector Policy Letter (1998) and in the Interim Poverty Reduction Strategy Paper (PRSP). Set against the year 2010, this strategy aims to meet 56% of the drinking water needs of rural communities – against 13% currently – and 60% for sanitation, against 25% currently.

As part of efforts to promote the water and sanitation sector, donors – UNICEF, World Bank, UNDP, Japanese and Swiss Co-operation agencies in particular – indicated their preference for funding the Rural Drinking Water and Sanitation (RDWSS) programme, especially in the Greater South of Madagascar where the national water priority defined by the Malagasy Government fits into the poverty reduction programme, which focuses on development actions to provide basic social services and improve living standards of the population. Water-related challenges in the project area are threefold: the RDWSS project helps to significantly increase productivity, curb food shortages and alleviate community health problems. Furthermore, the international commitments taken by the Madagascar government, to cut the incidence of poverty down to 45% by 2015, hinges on access to basic health services, generalized universal education, and wider drinking water and sanitation coverage. The project, which is part of these strategic choices, also fits in with the Bank's intervention strategy (1999-2001), which focuses on rural areas where poverty is most prevalent and severe.

The project is thus a reflection of the population’s real needs in the south of Madagascar. It is also in accord with the Madagascar Country Strategy Paper, which gives priority to Bank intervention in rural areas aiming to increase access to basic social services such as healthcare, drinking water and sanitation.

The ADF’s involvement also includes support in an area where there is expressed but unmet demand. It was to this end that in April 2000, a request was submitted to the Bank to finance RDWSS in the Fianarantsoa and Tulear provinces in the Greater South of Madagascar. Previously, an identification team had visited Madagascar, and consultation with authorities, donors and NGOs revealed the level of need for drinking water in the Greater South, the rationale behind the request and the project’s success conditions. The appraisal team, which consulted with various partners, local elected officials and the population of the project area, helped to confirm RDWSS needs and obtain government and population commitment to the project.

To support the decentralization process, the public RDWSS service was organized on the basis that it is a public service under council authority. The government defines the national policy and the councils act as project managers while public and private enterprises execute the works and/or manage and maintain the systems. Involving the entire population – in particular women – will be encouraged through the creation of decision-making bodies.

46 The project’s design is based on the beneficiary demand-driven strategy, which has four underlying principles: i) water must be managed as both an economic and social good; ii) water must also be managed as close to the grassroots as possible; iii) water resource use must be part of a general approach; and iv) women must play a key role in managing water. In this participatory approach, beneficiaries will be involved at all stages of the project: preparation, implementation and operation. Their involvement in the project will translate into: i) the creation of water point committees to manage beneficiaries’ involvement, ii) the collection of financial contributions and creation of funds for the management, operation and maintenance of water points under the supervision of the committee, and iii) a commitment to contribute to the works by providing local available goods, labour, equipment storage facilities and accommodation for technicians during work and monitoring.

Simple in nature, the project involves drilling boreholes and fitting them with hand pumps. The choice of technology is based on the following considerations: i) beneficiaries have already shown a preference for this type of structures in similar projects implemented in the region; ii) boreholes are more adapted to the physical characteristics of the area in which the scarcity of water sources discourages the use of other systems (for instance, gravitational sytems); iii) building wells would not guarantee the achievement of sustainable drinking water supply objectives as they do not harness groundwater and are therefore at risk of pollution and drying up when water levels fall; iv) for the depths concerned, the borehole option is inexpensive and the structures are easy to maintain; v) boreholes are a suitable choice of technology and can be developed into standpipes and mini-networks.

The project’s sector objective is to increase the coverage of water and sanitation needs with a view to poverty reduction. The The project’s specific objective is to sustainably supply drinking water and enhanced sanitation services to the Ihosy, Iakora, Ivohibe and Betroka districts. The project concerns the construction of 700 boreholes fitted with hand pumps, 1,050 drinking troughs and 5,000 latrines, as well as hygiene and healthcare. It also includes support measures to ensure the long-term sustainability of achievements. The main components include: (i) Drinking water supply; (ii) Sanitation and drinking troughs; (iii) Community health support; (iv) Community mobilization and training; (v) Institutional support.

6-2 PROJECT IMPLEMENTATION

The initial project’s final disbursement deadline was 31 December 2007. The project's main objectives were achieved and in some cases exceeded towards the end of 2008. At this date, the project was a year behind schedule. This delay was mainly attributable to the 2001-2002 political crisis, which only allowed the project to be launched in November 2002, instead of May 2001. At the end of the first extension for the project’s final disbursement (31 December 2008), most of the main activities had been carried out whereas the ADF loan still had a balance of UA 1,878,006. Following Bank’s non-objection to use this balance to strengthen the project’s achievements, the deadline for the project’s final disbursement was extended for a second time to 31 December 2010.

6.2.1 Implementation of Project Components

Drinking water supply component: 820 boreholes were drilled and fitted with 817 hand pumps and three solar-powered pumping systems. The supervision mission noted the low rate of water point construction in the Iakora and Ivohibe Districts, owing to the unsuitability of the borehole water harnessing system to the hydro-geological conditions of these two zones. The table below shows the distribution of boreholes in each district:

Use of Planned Initial project At completion balance District in the Number of Number of % PAR Number of boreholes % % vs. PAR boreholes boreholes breakdown Betroka 350 373 53% 35 408 58% 49% Ihosy 316 47 363 44% Iakora 350 18 48% 6 24 60% 3% Ivohibe 0 32 32 4% TOTAL 700 707 101% 120 827 118% 100%

Sanitation and drinking trough component: 4,698 family latrines and 114 toilet blocks were constructed by the project. Due to a lack of demand, no drinking troughs were built. Indeed, cattle watering points are choice areas for zebu thieves in the project area. The table below shows the breakdown by type of latrine constructed for each district in the project area:

Use of Planned in the Initial project remaining At completion PAR funds District % Fam. Inst. Fam. Inst. Fam. Inst. Fam. % Inst. % break- lat. lat. lat. lat. lat. lat. lat. breakdown lat. breakdown down Betroka 2,500 0 954 0 1,337 50 2,291 46% 48.77% 50 43.86% Ihosy 0 1,388 0 997 54 2,385 50.77% 54 47.37% Iakora 2,500 0 0 0 10 4 10 48% 0.21% 4 3.51% Ivohibe 0 0 0 12 6 12 0.26% 6 5.26% TOTAL 5,000 0 2,342 0 2,356 114 4,698 94% 100.00% 114 100.00% Fam. lat. = family latrine; Inst. lat. = Institutional latrine (or toilet block)

Community health support component: 8,000 insecticide-treated mosquito nets were distributed to households for which family latrines were constructed. The consultant’s office in charge of community mobilization and training organized visits to sensitize villagers on diseases and infections such as: STDs/HIV/Aids, malaria, diarrhoeal illnesses and acute respiratory infections. Village organization units were also set up and trained animation methods and the abovementioned health topics to enable them take over from the project on health and hygiene education and sensitization. The table below shows the number of information and sensitization sessions per theme and the number of village organization units set up in the project area:

Initial project At completion Awareness topics Number of Number of interventions % of achievement interventions HIV/Aids 700 949 136 Malaria 700 1,077 154 Diarrheic illnesses 700 1,019 146 ARI 700 844 121 Water, Sanitation and hygiene 700 1,064 152 Training of VOU 700 925 132 Number of villages visited 700 925 132

Community mobilization and training component: 820 water point committees (WPC) were set up in beneficiary villages. The WPC ensures the management and maintenance of water points. A village fund collects monthly or annual contributions from beneficiary households. A village mechanic with basic tools to carry out general maintenance has been trained from among the members of the WPC. 30 repairmen were also trained and are operational throughout the project area. Institutional support component: The project implementation unit manages and coordinates the project. The PIU is placed under the supervision and responsibility of the General Directorate of Water at the Ministry of Water and collaborates directly with regional technical water departments in Anosy and Ihorombe. Quarterly reports and the financial audit report are submitted by the PIU.

6.2.2 Financial Implementation of the Project

In total, the cost of the project on completion was UA 9.49 million, compared with UA 8.92 million at appraisal. 99.5% of the ADF loan was disbursed and the remaining UA 0.04 million cancelled. The Malagasy government contributed up to UA 1.60 million instead of the planned contribution of UA 0.99 million at appraisal, leading to a surplus of UA 0.61 million.

6.2.3 Procurement Status

At the project closing date, 29 contracts had been awarded since loan effectiveness. All these contracts were signed following the procurement methods described in the Loan Agreement. Generally, the Bank’s rules and procedures were complied with.

6.3. PROJECT OUTCOMES AND IMPACT

Despite considerable delays resulting primarily, on the one hand, from the 2002 political crisis at the time the project was scheduled to start and, on the other hand, in the execution of contracts themselves, project objectives were met and often exceeded: more than 40% of the population in the project area were provided with drinking water and close to 10% provided access to improved sanitation services.

Overall, beneficiaries are satisfied with the project’s achievements. The time devoted to fetching water fell by nearly half an hour per household per day. Improvements were noted in the general health of the target population through daily water consumption rising from 10 to 23 litres per capita, and use of improved sanitation infrastructure. The time saved fetching water and reduced health expenditure on water-borne diseases helped to increase household income.

6.4 RECOMMENDATIONS

The mission recommended as follows::

For the PIU:  Forwarding the 2010 audit report to the Bank before the end of June 2011 and that covering the first half of 2011 on the use of the last working capital instalment before the end of September 2011.

For the Borrower:  Organizing awareness campaigns on the need to ensure hygiene around water points and on the use of pumps (switch-on timetable, minimum age of user, general maintenance, etc.) to ensure the long-term sustainability of facilities. There is need to staff up and periodically renew the PIU should (e.g. every two years instead of five or more at the moment) in order to empower the whole beneficiary community. Women’s involvement should be encouraged.

 Conducting an intense information and education campaign in partnership with the Health Ministry to promote the three population hygiene messages. An organizational study of existing structures (VOU, PIU) will also have to be conducted to determine individual responsibilities through current and future actions to be undertaken.

 Henceforth, conducting, prior to project appraisal, technical, socio-economic and cultural studies to identify population’s real needs in the project area. For instance, the types and number of structures and adequate equipment should be more or less specifically defined in the project document.

49  Submitting funding requests for final review, during the preparation of project documents, , to the technical department concerned and procurement oversight body..

 Establishing, for strategy reasons, Programme Budgets per Regional Objective (PBRO) for all regions of Madagascar to obtain a standardized and reference document for the whole country. This document could be very useful in updating the Water and Sanitation Sector Strategy and Policy Paper for Madagascar.

For the Bank:  Requesting the Government to conduct preliminary studies taking into account the technical, socio-economic and cultural characteristics of project areas to guide the various missions, especially to the Project Appraisal Report mission.