I , 1
DEPA~T OF 5!~TE jGENCl FOR INTERNATIONAL rEVELOPMENT' Washington). D.C. 20523
Proposal and P..ecommendat ions For the Review ot the Development Loan Committee
EGYPT - Alexandria Sewage
AID-DLC/P-2258 EGYPT: ALEXANDRIA SHIAGE
Errata Sheet No. 2
Page 25, Table VI-2: CDE CAPITAL CONTRIBUTIONS, Chanqe from "Total" to "Ift!o Service ChClrqe" EGYPT - Alexand.r:1a SE.wage
frrata
Page Hi, pangraph 4.17, line 5: Change "t:onjucntion" to "conjunction"
Page 16, tc?,bIC IV-l, line 8: Delete "G~~"
Page lG, pa,'grilph 4.23, lin2 13: Chc,ngc "(C01-1)" to "(CDI~)".
Page 2G, rari:gr",ph G.13, 1 inc "/ from tor of Ikge: Change "r",.;sib"c. Forgoing" to "possiblE', keeping"
Page~ ;~J z1tld ;:3: Reverse pa~le order Page. 29, pLlrC:,jl'?p!: 6.17, line, 3: Chanqr "ration" to "ratioll Page 30, par6!]t'llpll O.O~, lint' 7: Chan~jr. "right-of-\'lilY" to "t'i~ ht'.)·-of-\~ay"
Page 30, rara'Jrup/1 8.05, lint: f!: Change "gneeration" to "gener2tion ll
Pag~ 33, paragrl!ph 8.16~ 1 ill,' 1,1: Ch(II1~r; "s(ll'laruge" to "sc'.'W1"fl90"
Page 3/j., poY'(lgrc.r 1/1 1\:19, line: l~: Change "professional" to "pl'ofe5 s i CJJ1c.l s"
Page 37, parasrClph 10.01 ~ lines 3-4:' Change "and inspection" to "inspection und"
Page 39, paragraph 10.11, line,7: Delete "As USAID has indicated" and capitalize "This" Page 43, paragt'uph 11.04, Section 2(a), lines 2-4: Delete lIincluding He cost of the rrogram and its effect on th(~ envi ronmeilt II
Page 44, pa.ragrarh 11.05, Section (d), line 8: Change IITariffli to "tariff"
Annex 0, page 3, Scctio~ 2(a), lines 2-3: Delete lIinch/d'ing the cost of the program and its effect on the envircnment lf • ••
EGYPT - Ii] cxt:lndt'i i.l. Se ....'i I9 ':!
!.Llac hiTIcnl~ try Project r ; ,p e l~
Annex H - PI'ojec t. Authorization
Am·IP.. >: D - Statutory Check) i st
, MIU~:X [J
PROJI;:CT flU THOR I ZATlOfl I\rlO I1EOUEST Fo n I\LLOT1>iEUT OF fUNDS pl\nT 11
1l;:U:lC of C{lun tty: Name of Project: Arilb Ilcpuhl ic of Egypt Al cxandl'ia Scw.Jgc
Project: No . I 263-0029
Purs~ant to Part II, Chapter I., Section 532 of the F o r ci~ln I\ !j:;sistance A·ct; of 1961 , as i1m Cllded , I h e reby autho l'.ize ~ loan to the I\r ~ l h lIepubUc of Egypt (the "Coopem"; ng Country'!) of not to exceed Fifteen Million United Stc.LC!.i Dol l a r s ($15 , 000,000) (t.he ttAuthorized "mol1n!.") t o help in fiml.ncil~g the for(~ ign exchange costs of gonUs alld se .~vice5 requi r·cd for the pro ject: as described • i n lhc following paragraph .
The proj ec t con~h.:ts of providing the equipment and matedi\] ~ fOl~ the I"cha bi] i tation of the existing wa s tewater system jn Alcxandl' ia . Project clements include
'Jim entire il l:lOll n t of th(;: A.I . D. financing herein authorh>;c d f or Lhe project Hill' be obli!1ated· ~/hc n the Project Agreement i s cxecuted.
I hel'vby a ut horize the. inibation and negotiatio n of the P"'ojoct Agreement by the officer to whom s uch a uthority has been de legated in dccordance with A.I.D . regulabons and Delegat.ions of Authority subj ect to the following terms and c ovennnls and major' conditions as A.I.D. may deem appl'Opriate:
~. Interest Bate a nd Terms of Re payment
The Cooperating Country s hall r epay the Loan to A.I . D i n United States Dollars within for,ty (~ O) years from the date of f i rst disbursement of the Loan, including a grace p eriod of not t o exceed ten (10) years . The Cooperating Country shall pay to A. I.D . in United S tutes Dollars interest from the dale of {il'st disbursement of the Loan at the rate of (a)two percent (2%) per a nnum during t h e fir!'>t ten (10) years and three percent (3%) per annum thereafter, on the
I ~ -?-
outr.l ~ ll1din!l bnl.tnc c of the I.o .. m and on a lly due and ullp.::li d i n lon.~:; l £ICcruc d the '''Co""
Good" LInd services fin"Jllc'cd by 1'1.1. ') . under the project sh ~ dJ h ave t'h e i r HOU,·CC nnd orjgjn in till! United States , I!xce pt OJS ."\.1 " U" moly olhcJ'\·d:;;c agree in "ri ting"
c . Co nditions Prec edent to ni S. b~£!:.
fo:xc cpl. as 11..1 ,D. may othe rwise agr cu in Nriting:
(1) Candi lions PrcC"c dcnL to Disbur s emen t to Employment of a Co n!H~ng I: 'l(:inccrinq Fi l' r!!
Prio r 1.0 dny di s lJurs c me n t I 0 " the j ~ s u a nt : c of any c ommi tlncnt docu n." I'\ln vndc," t he Projc rl A ~l rc c ment [01' engineering services , (] o" l'mmr s ha ll furn i s h in fOt'r.J and substuncc satisfactOl"}' to "fl.. I "n" :
(id An opinion of the E9yptiar. '·Ii :liste r of Justice , or o t her l e;gul CQU!)r:c ] sntisfnct()l ~ y to A.I.:'>. , that ho Loan A g l 'C ( 'rr'O:: ~ lt has be~n duly Qu t ho rj z cd by , and executed on behalf of thl: I'lI"u b Hcpubl k of Egypt, and that ~ t constitut e!; a vulid <' mel l Clgall y binding obligilU on in ac or.funcc with its terms .
(b) A stil t cment of 'lhn na noo s of tne person~ \41'.0 will a c t arc; t:he rcpl'e~c nt a tive o f the Bo rrm,'e r , togethe r with a ~p l.! Ci mCI I ~ig n i::l turc o f cuch.
(c ) f.n exe cut ed c o ntnlcl for consulting engine e ri ng 5( : rv jcc~ for the project \~i t:h a firm a cceptable to /1..1.D.
(d; Evidence that il lull time Direl:tor and Of.' , ty'Director of GOSSD- A1 er.a ndria has bee n <:I pr.oi nted.
(0) [ddonco that a Project Unit, '"lith authority has been est ablisned in GOSSD- Alexa ndriu ~/hose full time functions l.n 11 be the monitoring and impleme ntation of this project.
l • ,':!"o ( 2) ~iti on r; J.:I · ( !cc d('n....!: La Oh:bul"srment for Good s and Scr'Jicc' for th o..: Sol i d l'!..astc CollecLl on and D is po~"ll Proqrarn
(,d l\ d oJ ldilcd pl un ()f M soU d I ' ~lstc collec tion and d fsp ()s.-. l !; yst(!nI fOI' A lcxal\dd~\ ind ud.i r,g the CO:'iL of t he progr'.,m .,nd i t.s effect on the envi r omn,,; n t.
(b) A d c t.:d l ed impleme ntation pl ait'" in eml/PERT fannal.
(c) Evidence that ull Egyptian currency for the fil"st p , ca l yea r in Hhi c h fund s ...rill be required , n
( 3 ) CQllditions Prcccdenl' tn Dibburs(!mant for Goods a nd Sel"viccs 1'01' lho Heconcll."u:tion ;)nel lIe hobilj Inl ion nf the Existinq ~/.wt(l \o,'alc,: Sy~
(a) A d ct~iled plan ]01' the c xt:<.:uLiorl f the project in- c1uJii.ng n sched lIe , :i terns to be imported and ~~~ prop05cd con It'acting pcoced u r c .
( b ) Evj d tm r.~: thot il}l Egyptiiln c urrency r c qllil' p.d fOI' the fil'st fisc.tl yea r in \·/1 ich funds I1il1 be r equired , in cJ n .. mount based on lhe c:s l: irnntc by t he consulting cn~lin ce r , and os <.! pproved by GOSSn , has b e~ n Hudgeted by tho GOE und is ov.:.ilc:tbl c [01" expenditure by GOSSO.
(4) ,Co nditiom.> Prec(;dcnt t o Di s bursement for Goods a nd Services f or the ExLens'i on of Serv.ic~ to the Ras 1::1 Soda .'I rea
( a ) A d etailed pla n for t he exccu-r.ion of th\! project in- cludir,g Cl schedul e , items to be imported and the proposed con lrO'lctin~ procedure.
(b) A listing of, the proposed beneficiaries of new s en'lUg e service including t he costs to be borne by the be neficiaries .
(c) Evidcmcc that all Egypti an currency r equired for t he first fiscal yflar i n which f unds ,oil] be r equired, in an amount based on the estimate by the consul:t;ing enginef'!r, and as approved by GOS SD , has bee n budgeted by t he'GOE and is availabl e [Sl~ex - penditurc by GOSSD. ~
\
• L , -1,-
Wi tid rl ant:! yC!ar from tho date of t. llis Agrc':'''Il'Icnt, t.he lJ o ,' r o wc r UmlJ prepare i"l comp,'cillmsivc uti1ff tJ'ilining 1)I'O{J I'am , t o be impleme nted j" the ~; u ccec. ding year.
(:~) Fixe.! 1\ :J~ l: ls
Hi t.hin on() year [,'om l he date of '- hi.s I\ y l' ccmcnt, the BOl' rower ~ h a ll prep~ rc .:on illventory o f u ll GOSSD ' s plant tlnd cquipncnt l ocated in Alc):a ndrLJ showing d ate o f acquisi tio n, a cqL isi b on co:<;t , ilnd CUI'l'ont condition.
(:s) S
l'!i Lil i n one y(!a r f ,'om t he dale of t.hi s A ~J r · ~ElIllc nt . the BOl"'o,,"'cr' Fhdll dcveJop i"l plan fOl' t he e nforceme n t cf the :J('wc,' WiC J 6W jllC" ludillCj a system of p cr-m its , im.i pcctions , lc~ts and l e g ... 1 pt'ocedurcs .
1 (J r oop(l r alc fully l1itll A. l.D. to as~;ure l h
Deputy Administra tor
Date
? ,,,,,j~'" I I
U ste:d hr-low " r ~ . fh's t, Udlutory c rll~ri~ "'Plll iclt..l c ocnerally :0 PI'oject s Id th FAA f unds , Ol nd tt u~n !"'oj~c t critcr\\ IlP ? linolc to incliv ldull fll ~,d sou rcc~ : Dcv,' l op~'2n t As~ l s t " r:ce (Iv ith il sub· ("tcoorv for critcrio,l appiiclble only to loans ): and Security S\l~lO l"tl ni) AS!i l!. lancc funds.
CROSS 1 ~ [f[ R l:I CI:S : I .. COtJ:ITI~Y .:1trC~';.lS T liP TO DAT E? IO[t!Tl f Y. !.IS STlUIO ,'PO JT(H CIIHY.lIST Il rEtl l(t'JlH:(o r O:l ntIS rpOJ ECT?
c;,[ 'ifP/,L CRITERIA rOf'U'J9.:r c:.
I, AT)p. Unm"t.cl"t:!!.; 1M S!!c . C~~ An "Advice o r i'1'ogrmu Ch~ngc " has been prl!paf' c f O l' trC,ln s"'J t t.al to thu appropr i:ltc conunittGcs (a) Ol?sc rihro hw Co ,it.t~·c~ Of! J\N,ropr ia of Congrcs!-. under this amendment tl::n~ {If SCII.;, l r, ilnd .!ou ~" ';,.... l' been nr Obligilt.lons will be :lO,ifi~ :: ~',.;" crnir.:J ~hc pr)ject; \dlJ not. td~c place pl'ior Lo l ~. day~ after (to) is l'!~si ~tJ rfte \;ilhill ([";'i:ra,ioM! the date (If delivery o f t h is notificat.ion . TI , ~"'! " D\Hlg~'t) countf} Of intC!'Il-ltiOtl"l intende d obligation is ~1ithin the; level of 0 ' ·'.:l3ni ! "t~on ti)ncn 'on I' trof!.cd t o funds apPl'opriatcd fol' Egypt for FY 1977 . r. 'JnJfcs~ (or not r:'J)fC th" fl $1 milli on over that figure plu<; 10';)? '
2. f2\-1.££.,_.2.11.I.(I)(Jl. Prior to oh liOillior. Yes , Sec S .... r Lion Xl of the Pr oject Papl~ r ' . 11\ t"c.::.s 0: 51C'J , G'JO , ~d 11 there he (a) f.:1"':rN:tirQ , t i,;Hlciii l, ~l1d other ;Ilan:; I! ~Cl:S~i!fJ L!l ~2f ry out thl: iI<;~iS~i1nCl' MId {[,) ,} rC.lo:; or,.\bly flf ~ cstidit· or the (.,~t to tii(.: Ii ,!>. M tlH! iI :. :.i~tJ ~, ce'l
3. ~:.:. Src. fdlla)(2}. 1: fur~ I.~r lc.,i~ - furtiH'r- ll.!gislntive nction is requir.:!d ') t i\'c 1 i "c,d I'll liri n i P if!nt "0 :1:1' riii-r<;r'~':lu I"~': t he c.uunt.r:/ , I,hilt is basis for rCHClI'l:, hll: Lo impli:l1lunt proje ct . (' , ~r f:C tllti on ~k\t S'Jch -H:!i (.n Idll ' bc CG:-p1c'.,:d ir. tir, .. 0 pNd .. ofdct'li "c ror';l lis! ,':lf::n ~ of PllfjlCSI' of the a:;si~- t ~ncc? 4. rh:>" Sec. 611{bl; ,i nn, Se,;, 101. ! f for Yes . Sec Section Vll o f t he Ploject Paper. ;:;,tCro~cr-:-~C'l-a '~'e,f -I "nd r CS~ :':fCe cc;l1struction , h ,. r/,\ Sec, 6~:hl , If project i:; ci!.pit~l Tho J.lission Di r ector has r-fo certified . ,,~sist;:\lce rc.!] .• construct ion) , aM all See Annex C, U. S. iI~<;i!;tancp. f Of it \'/ill (!I,tce:d $1 mi ll ion, n,lS r-lission DirC'ctor cC l'tificd t ho;! country's cap~bility l:ff<>ctively t o Nintain and utilize t he Pr:9jcc t? \ ._- G, rAt+. !'If'e, 7(,1 , oI l" Thc project i:'; no t ,~us('epl.ib l e of of (' .. it.Ul~s pa"'t exec;uti.on a:l p ..!I'l of ,"cg10J1il 1 0)'" latel'JI prOj .,;ct1 If 0;0 \ ~ hy is PI'ojf'ct rlO L mu1t.i JnLu r.-.1 pI'oj ect , Egypt is so ('). ~ru lcrlf !ntUfT'''l it'l and conc lusion nol « newly independenl counlry . wh~thrr tlssinanc(' to' ,ll l:ncouril 91! ' r eg i ola l dr'le\op-:,'I.1 pn'lr ,l."S , If aSS \S~3ncc is for r. c-,~ ly \lld('y€ndC:'It cou n~I'y , i~ it furn !~ h t ~' t hru:H1h ~ u l t i r. hit':',') crt;lni;~ J ti on!o or plans ' to t he· r ..u.lF ::u~ extl'tlt JV:lI'opri. te? 7. fM.. Jo.."'C"_~.O,! (<11.: (,~~, l'f...-1~ ! ..l!L!:6r nev(' l(lr 'nl l rJlus , In'orr.'d tion s. El£'~,,;,::, ...f ."lI.0 , ]nfOI':'"dt i on ar.d con The g " cat: mtljol'i ty of 1 unds expended C ] li~i(l') t) , I",~' pro.it'lt \.111 I!n~ouraSe U,!" pri·:;ztc' tr.:dc r,nd h'lcs tl:'[tl t. ilbr')3d ~/ i II bo for g ood::: and 5Cl'V j ees from 9. t:',r, ~ •. E:!?(h) ; S"c., (.3,)(h' , U(.£~ribc TIIO il~II 'ceme n t wi 11 so prO'll de . '~~, l~"; ,to'-,.~""I~,,-;:;-Tt;i't·,--t o tl,'" IJ.d, (';. l ,·n' 1':.Is~. .lJ!'e. th'" c,1ul1 trj I!. tontr~,:.J ~ ~r~r; ~o'::,11 d·;t:rl:nd ,~s ttl r.~ ~ t tl)(, CD< t (1# contt'tI-:tlnl ,:rod C!/,cr • s er'/ ic(~ , u:d f Ot' (!iQn CUtT e! lIcies o:';ned ~j the t' . S. ar.;> u'liht'c tn r.~ct tnl" cost of tOI.~, Ie : U:, ] ilnd o ttl'QJr'lic e<., . 10. ~t.I\ !':"~.'-.-'- (,12(d ). [:OCS ~I(' U, S, (JIm I!:';ccss Yes . Rel c~lse by the GOE is not a ' or (.l l gr. cllrrr:r.C'1 u,d , if so , •.h~t al'l'~n u c preble:n at pl"csent. r tcrts'i'\~v~ hr::C'n'r",cc f or its t cleil~e? - n, I1QI! :.r. crC7ER1I1 iOR P~OJ[CT I , OC'lcloLCr.t f\ ~~i:;tane!! Pt'ojc~~ No t Applleablc. ~ . .E!~~.J02J,fl:.2_~'.c..:..111: .S ec. 28la , Ext.ent t o vllel1 actlvity ll1TlilTC"(jcc _ tivel/ in'lo l'le t h(' poeI' i n cc\'cI6p~e n~, by cxt.cnd inrl ~eCC$S to cl..ono::-.y at. 10c<1 ·J l evel , i n creasi/'l~ lil!lot- i nt.:nsivc pro duction, sprcJding iJJ'It:s tnent out from citit:! tCl ::"lIa ll to.:ns ,w e! lura l ell'Cd:' ; arod (b) help :le!'1e10 ;1 co:;peratives , espeCially by teChnical assistance, to assist rura 1 lin d urbitn poo r to hclp thc,':'Ise l '!(:s toward !.letter life, and other wisc encourage! democrittic private and 10edl governr.:ental institutions? - CHIMI':' • C:O' 1!)76 r 01 h, 1/l;:!If",- , U'll. 11 ~ :. Ie.:, Ins ...... 10!, - - I ~ ir-::;-X"i ":' rl!J toJdc JVJ ildb lt'! [1I7c l.III\' only ,lj1j) 1 ie. ~ le Dl tol lll'olph __ C.O . , ,b, nC. - 100: Ich cotrC~PQnd s to sourc(' at ( und~ u'.!fd If f:";(Ir(' thdl1 one f\lrd SD'Jtce I t, u:.cd or project. lnc l uclc l' ~ l.. \'o.I l 't p.·~J:,pr~ (. ·r each f um! source. ] (1) (1 01] ( or ,) ':! ri-"tJ " ture, IJl'fI! !!evclop - trnt or I1litritio'l i i f so , exten t to Ioollkh activit., I· SJl(>cific,;lly d(".i!ln(',1 t o In(l'-,,:!:c frc.Juc:tidty i'tnd lnCt) r : of I lI'J! 111)01'; [1031\1 I( few ~l1ricul t U! 11 r cscarch , Is ,ul l Account t Al, " of (leeds of srrol l1 f IIn1t' rs ; (?) [1 0: J (01' ;'('!)U l,ll ion pl a nning 01' II!!dlthi if '; v , '"' t.;>nt to \':hich acthily I!xt(r.os 100~ -cost , i nt crl rated dl!liv(r'Y ~yslrl'-' '0 prO'lhte hea lth dUel fol nlly pltllln 11IJ 5('I"'I iC CS, C~ FC"<.i II 1Iy to ,'ul;d ,\I"Col <; i;l. nd poor j (3) ['. ~J ~o r (tlt,c"~;J~', (.ublic fJd::1 in- , ~ t I'd t 11"" .'( tu~ 1n rc'~(l1I1~~ cJc;,,:iop: (In::; if : 0 , extent t o dlich •• t: I_ il'itJ ~:r"'~'':~" "b nonfor;-"!l l O:.CIlticn , /'";~~ lor;--; l edJC.:ttion .-.'1.' "cl e '". ~ ;~c(:cia 11y for r u r~l f ilL. ilr,;! III' .''1 ~IOO ' , 01' ~"I"'I,'!U,"II~ r,.~'rJ ·cr.t. C"P3~i1it'( of rl~! ltll l~Ollt, ('I'~blin] t n(- poor to PJrlh;~;,'t(> in C'f!·J{· Jowrlili {I,} ;:1 ;\ij (or :{'.i:riiCt, l c'.S is:i;l.:lce , ~., 'cy , II' .... :leTl, ,'{':o r, ;. t n.;:t:on , lr.d ~,;ll'C.l,,-:! ,I ,",',,1o,ililell t pn;..! 1(;-.:5 ; i:- so , e;.t~nt activ i ty is: (J) tCc.hnit;"i" eoo;;~I·~tion ane develop l e-n! , c~pcci.til 'l ~Ii:.h U, S. pl' i'lHt' iI !l'J '/ olu n : ~ r'Y, or ( <..(li011<11 11tH! inter rh.tior,,"J 1 dt,·C!lo"~t.!ni. ,~(ganiU:.tions j , ( (Il) t tl hel;; ollle'liat e energy problerr.; tel l' I"~~Mch i nto , and (: Ia luiltion of, ('cor..;;,,~c dc ... c lol:: .... nt prN.esse~ and l((.hnicj:Je" j (d ) r'''C::In ~tr ll(. ~io n after nJ t ural or r".illl "'t!ch~ dl!.ol:;t.;>r ; (e) fOJ' speci.,! dC:'IC!lopmcnt prtlU le,TI, i;l.nd to eMilIe propcr uti1i!a~ion of carlier U,S . i nf ,. astructurc, etc . , ass i 5tilnC!! j (f) fOr prO!ll'ar.~ o( urban dev~lop"lIcllt , es pecially 5r.la ll l1lbt;or -intens ive ~. ent ~r pr15~s. r:IJ 1'i:e:tinq systems , and fin/l ncf/ll 01' other i nstjtfJtions to htlp urbil n poor participllte ;1" eco nomic ilnd social develoOClellt. ,,-,=----.------"----W A l lNl ~ X U 61 (5) [I07J by !f )',uh'. fol' coor di nHcd prl/ilte effort to l 'e v~ lo p c . f!'" Sec. l .t.oJ.~.t' _ ~( .£.!_}Q!{d . Is the r (.' c11) 1I·11£ countr,' wh J 111 ~ 10 con t ri bute fund!. to the projrct. ind 1n .... hur milnne r .. - .. ~;:~ l it pro... l d ~ ~ S 5 U r llnC e 5 t ha t It tl ill I)rovlde I\t l \'js t b : of t he cos ts of thf' IJr09rJm , proj ect. cr acti \'i l y with rrspec l tu ,·.hi c h ttlC a" ,ist olnce i s to be f u rn is~ \lxl (e r h ~ s l h£: l ~ t t £:F cos t -sha r'inrJ ,. e q u jr e~c lIl been '.~J I ... ed for a "re l " tively l ca SL -()c vlJ loped" coun tl' / )? d. !J"l,-S_I!_r. ll t}.{b l. :/il l g,'ant ~ ap ital .:t !. ~ , s t. iJn ce--OC-cf , ~Durs cd fo r projcct over «or!! th.'l ll 3 years? If ~o . h~ 5 jll ~ tif ; cat io' , !.a l l!. f dC luI' J to ':., .•g (E! SS be er. ft\l de, and e H or,to; f or other f n r> . r ,'~"S{- _ .£07 ; ~~·..: . · 1 3. Exl en ~t o ·.... h ; ch"" .. !:"'i"i i"tdr.Cr.--;;":rc:--:-~sap;)!'op ( ia: e "':-:l=h.J·.is on i (l) (n:ou: g inq d£:veICl p:l'.c nt of de .QCr'l ti c . €:.7ofl("ll'ic , r:Oli lic1I }, .lnd sod'll inHitutit;,n~ : (?) self-helr i n rcct ir.::; t~" cG- J r.-:'r"s :00 O!~eds ; (}) ir.flro.'ir~ ... .. J ili:hilit.y of H\l ir.ec \lO d :er pCo·.. {·r in tt I' cnuntry , (4 ) ji :" o (] r a/:l~ d~sb.l(,d to : ·Cf" t N; country 's heal th !Ir;co:!<,; (5) o: h"r i!1Prt.1ILt ar ees of ... ~c.nor,i e , !JD1H i c.~1 . i.nd social develop r'(n t , i nc1uaiw, ir.t:'~~: rJ; (rc' E! l abo r u flioll~• • r~'I.. .,~rll t j J CS . ~r.d \'olur,u.,·y . f,geljClc;" ~(iln5pc rt "~~;n i1n ~ cor:-J:.u nica ~ i o !l; pl,tnn inl) and i·j l- l ie a r.:n i n j " ti·<. ti on i IJr b,ln do! v {' J o l ,~e r.l , An d rn cdr.: rnization of r.-'>:iH ifll) l ' l~.'~ i Or ( 6) inte'] I':Hi ng "'o::eo in !{1 -:' M: f C! ci pi( l"I t coulltry's nati ona l cco nol"y . f . FM ~ec , 28 1l bJ . De scrio.· extent to ~: h icF. p r o~ir'(;Mr:cco9'n iz r: s t he pilr ticul.l r needs. dcs i r· cs . elr. 1:! capac ities of t ho peo;-.l c of lho:: COlm t !'] : ut q izes t he countr 'f ' ~ ~ n t l: llec tua I r eSOu rces t c. cnco:;ra/jc i n ~: ii. ui. i on d l dC'/elop.l1en t; ilnd SUPP Ol"t 5 ci vic ed ucat i on and t raining in s ki lls required for e ffective O1lrtici pation i n !j ovcr n; -,?n ld l and po litical processes essen tial to self-governme nt. t, \ ''' ~'' lp '''''' ')''<> ' "'L I;: . ~ ( \l A" 3:11 tlO'/c:lber HI, 1976 ~------~----~--~~~ "' 9· r _~c'_~_?O_I.(h)(~'.:J<1 ) and.--:iS)J Sec:..:.. ?~l(;U_;_~c . 111\'0i'l·~d....:..U!.L . Docs t e tlClivltJ CjlV,· r . h. FM ~ . 2Q!.ShL' 6J i Sec. 2!.ll':(S~ . Infornllon .:md (o,:('105 i ol1 on f1o~s1b 'e CfffCl5 Of t he DS:; l ~ t ilnC !! on 'l.l . S. economy, Iii th sp.·d,) 1 r,' h ·f('nc.? to iHC clS nt sub· stant ia l la bor surp~ us . and (';.:Lent to l< hich 'U.S. cO :·l'·(ldit i e<;. il nd ilssisu.ncl! ii r ~' f u r !li5h~d in 2 . O"vQlo1ri~ nt j,ssistanc.e ?roiecl Criteri" fl. c. a . FAIl SfC . ~ O l(tl)(l). InformJt ion and w.Crii~;T~;';~-i'lil bi 1 i ~y of f i n.l nc ill" f ro'" oth" I' frcL- ~lorl a sources, ir. ..:lu cing ;lrlvatc sources l·dUlin U, S, b. fH,-~_'?"Q.:J!~JJ?.i.i2.0 1(21. Infor ,·,' tiou uJ conc. l usiOIl on (1) cal,Jc ity of t he C\l.Jf.:IY ;'0 r Cj'i.y the loan , includi ng rE:asQuilbl cn o;,ss of r el1ay ... ~nt prospects , ilr.t;! (2) "cilso:'l ,lbler.,·ss ilnd lC:~ ol lity (u nder li!'.~ s of cc-unl.ry 1:nd U.S.) of lending and rcler,di ng t (! r~ . S of the l oan . .~ . r :"\~e.E.:.1QlLtU.. If loan is no t t".J d. r "' ~scc . 2Q.Uil. Oces proj ec t pape/' dcscril ,c hOl'/ proj ec t ~I ill promote the coun t ry ' s e cono~.li c dc'.'c lopll'oe n t til ki n9 into account the counu y 's !lUI!'a n and I:I II AID IIMIO,OOIC J , /,Pf ~ 82 • FAA 1i rc . ~ J)1 ( .J) . l :1 ·.a l ,1r.oUr. t of r. o l l eYl:mferloan - wli i ~, f. fAt.-l.tc .....£..9 .VtJ.. Ii i1 SS ht ol llCC is for .HI)' proiluctl'lc .", tcrpr isc Ilh ieh will t o':'pdl' i n t he U.S . IIith U.S. entel' pri sc , i ~ then- ."I n ,,~f(oWL'n l bj the r t'c:ipfcn t "c.ount ry t o prc."t(:nl C1.I'Or" t lo t he U.S. of I"'o rc l n~ n 20 .. of tI ~ E'n t'!rpri sc 's Jnnuil l pr oduction duri ng t ile l if(: or t he l o~n? J. f" l' l'!:i~ct...i'.:.~~:.r.~!l.5_oJ(':1.. Y f n l~' i [1- The c ::;lLl bl i s hment o f u s olid Naste s.ii-~.2..:'\~ IS.!..~ t1 i~, p oscll <"".ys t .'m, r c habil :i tut i on o f t h : cxi s U n!J smlCri'lge syst f, m ~ a nd r/ ' 51\': . ;;1 1. ;! 1I1-1 \:ill this ils~ i s t "n cc ::-C~;-OI: :~·~:'Q t ~ cconO~ I C or po l h icil l t he extension o f s ervice: i n to un stability? !;t! Ne r'cd o r cas 11 111 p romo to oconalAi c ilnd po l i ticcll a r e." ill l eas t , i n lhe cily of {lIcX ~U1d r i a (,,'hjch i s the ! ~ ccolld l n r gcsl city in Egy p t ) . (Nett: Itllicllicl; fOl' il r ogrcs ~ oruject s sho.lld !ldd tilt' i. ]lo..-i/;S 1,.\;1) it!:,'s to d J/ o t AppJit:"a bl c . projcct ",cc.:iis: , ) ,1 , r :i, _':;,,_~, _.'5.. 1 i_t)(lL...;:.(E,t , toes .,s~l ~tJn~(' '_i.• , .. 11\.~ il;-::O:.m l. principles b1 :nc '.;:~ (1-: !'I1;:.o:.:., ... nc tile (i-,;I"t cr of I'\lr.~il ct-] ~:,a'; ,::j L :. ",il t eXt"e:'lt Ilil] l r,e h, fe. Sf~.l~lJ..~.. lJ!h..~..!..{! ~ t , Fer l C;'~,5 . lidS tr,h'C t''')!?n t. a,'e:'1 into account t h:, cf!"cu" l,. :::.c!c h'I r{'c i pi<:!n t r:ilUon to r cpJ!.rl,lt(' c:l?H,,1 invc!. t('rl i n O.. hcir co:..rn t r i('S h;.' t!;ci r fJlm c i t i zen~? Is 10 .. n consi s teli: Ilith t he f i ndini) 5 a nd rcco:::-cJ1dn ioll$ !Jf tho"! In',c,. -k -e ric') n Co r ~ itt ce fer t he i\ll ianc l.- Tor Projl ' O:> SS (n cI'1 "C£ilC IES, " tn~ Pcr:r. :' l\ c~ nt [xccll tive CO II I ~ itl '2( : oi t hc! OAS ) i n its <1nn ua l r (' \' if!d of nati ona l dC'le ]oplr,e nt ilclivities? ,- ' . ~ ... ,...... 3· .'· 1·1... · 1 ~. . "' ~Ul t "",. -"'-- - --L.---':.:i ..:.:. ___-" ~ ; tl yt;OO(' f 10 . 1976 6C(3 ) • STA;I:lflRO lT l'\ CltrCK1I5T Lhlrd I·clow lll'C stdtlJlory it~ ... hlch norr.Jl1y Ivi ll be cove r('d l'O'I tlne1y In H.ose provisloM of an u s~t",nc c a!jr~.;"·1.'nt c!\'.l ling Iti l l! its j ~p le ;;,e ntcltlon . (lr cov er ed 1'1 t he agrtcmen t by elCc lusion (H 'lih en.: cerlatn us ~s of fun.!s 1We pennltted, k it other uses not) , Thf'<. e itens are ilrfoll:g .. d undu" t he !jenera I heildl rg5 of (A) PrrrurF ~e nt . (C) Other Restrictions. ~ ~~ 1. FM. ~ ec. 601 . /Ire t he!'t arra ngcne nts t o Proc:uromcn . of good. a nd services pt:rn i t U-:-S·'--sr:Jl l busincs!. to pJ rtici pil tc wi] 1 be pu··suanl La D~ta bli gh ed Cflt.fit"bly in ttl>! furnIs hing of gooas ilnd A. I.n. t'cgllltltions . 5er'vicc ~ ril\~ n ced', 2. fAA Sec. (O(.{,I). '.:P ! all (.onr:od ity Yes. PI 'oCI)"L';~i!nl-(rii~'n;;ea bt: ~ the U.S. ~xccpt 6.S flth "'t ·~ds .. ~et~rnir . t" J by the Prt. s ider,! or ur,d er dc l Cljil t i OIl fl'ol'l h'k.? 3. bf"!:... (!,-ljs~ · If tI,e coopo;,r~t-ill g Yes . coun l r ... IlISv'; .'~M t (>S :i'~ir,sQ,U .S. t1.lrine hl!ur.) ~,ce co:"panlcs . ',rill i:grce. r.C nl r :!q:.lin: Lflol~ Ir.:rir.c in'>urancc Ui! ? l~ccd in l hl' U. S. on c'): :::od it ie.s financed'" .1. F,\); ( I"t: , \ I)lli) . If (Jf: :.n" r~ procure There ui11 be no ~uch procurement. H:llt ,,\ illri~tI.tllrJI c(',".,odity or p.roduc t is to [;.- fir..1IKC.l , i .. tnc:re pr"vi~~o n i:l~"ir,S l st.' (. ~ ; jr(lC·.H';:;J: ~nt ". hen U.c d():'.c:'1 h. IlI"icc of st.'';: i, c~;;':::l di ty is less tl.;l ll p.-:.r; t11 5 . r.\.4. S'!C, f.:.~I(,!) . :; i11 U. S . Gov<:nv:.el) t Consi dc l'il U on \~i]] be eiven to the f'1.ct!S S ;;';-rsf.-ri~r rl)'~ 'i'e f'i.y He til i 1 ized us~ of excess propert.y \~h en pract icnl . \ ~ I :C f':> V':J practictl ble in lieu of the p"ocur Cl"cn t 0:' ne.... it';l",s7 6. ~S pr:. .• Jl21j'1. (1I) CrJ;.pl iance ~ratj Yes . reQ :.lil ·(~r.cnc t :I H at 1c ~ :. t sa pe r ctntLJn I of H,e 9 r o~-s lonr.aac of corJ"{ldities (C N.i,uted 5 c~ilril tely ~Ot ory btl1); carriers . dry ca rgo 1inll'S, and t ankers) fil ,a t,C(~d sh~!l be tral\spor t cd on pr1 1"at(: ly o\~n~d U.S.-flal] COr.'l,creJ.ij. '/ es~(! I~ to In'' extent t hat such \'(o~$e ls .Ire dva ilable at fair and reasonable r a-:: r.s. 7. FAA Sec . 621. If tcc'lfLica l ilss;star,ce Techr.ical assista ..cc . to the greatest i!' ifOoinclif;" \1111 such ilssistance be (tlr· c xten:t pr actical , w1 J,,1 be f r om private nishC(! to t h': fu llest eKtc ~ t practicable e nterprise on a contract b;:il:'l s. as good:; and professior,al a~Q other services fr or~ pn'late en terjlr;se on a contr.lct basis? 11 t he facilities of other Fed er'a l dgencies lIill be utilizt'd, 3, API' fi C J: 11 6C(3} • STA:lDAPD IT!:l CI![ CKlI ST lhted beloH IIrc s t a tutory it ~;ns which norr".Jlly \~ll l be covered r OoIt1nely in those provisions of lin ani!;t nee Il!lll:( ~l' n t dCIllin9 ' Iilh its ir.p l t ;'-:C lltlltlon , or covered 1-1 the agrctment by exclusion (H where certnln uses of funds a.-~ pe rmitted , bu t other uses not), Hte ~e Items arc arrdrlg(d unde r the !le:nel',11 heildirgs (l( (A) Procure. ent, (0) Construction, and (C) Other RCHrfctfons , f,,, S~C, 60? , "I'e I j~re ilrr FAA 'i:.:: ~ (0 L ::l l' all cor...-.odlty Y(,S . P;'~-I.'I-:-C' :/;T. f l?i:'l~be ( run, the 1),5, cXC!'J:l &S o1./.<:,:"',,'is(' d".' t cfmine~ by the Pr did~r.t or ur:d(!r dcl~gaqo n f rO:1 hi::1 ? ~$_~. (9.!.'1J. i[ the co o)J!: ri:ting Yes . toun~rJ dl~Cr':"~:Il"te~ ilCl i nst U.S . nri/.c ir.sL.rancl' ,o""'i·nje~ . ~.il1 aOfC!! i':;)n ~ I'~':; ~ irr' tl ;~ t :'Jr 'nc i r. ~ ur.;nce b~ (;l,\c,; :/1 ,r.c U.S. on cOI'r.odi ti"" r"'""\ ffn ;;: ' C{'d'1 I 4. HA.,;,,:,..:....tr;.:;.i.i . If e.fbhon::· procure- The n) ,"Ii 11 bc no such PI'ocurcmcIlt . I el1t o! 'l':r icu l tur~i co;-:r.odity or nrOdl!ct is to b" fir.Jr.cc!! . i~ t7.er C! r. rovi~iQi • .1~oJ:r.st sucr.;-fjrocUl·C:1"ef'l t I.• hen t/lr: O():.c'..:.ic price of W eh eornnod ity is ll'sn t il:.!" p~rit y ? ~. F,'IA SI.'e. r.o~(a l. ~:ill U.S. Gove!'I'I ~e n t cons id'lralion \'Ii 11 be giveh to the cr.cz-":·~··pf;rso'"il.ir p r o~t-I ·ty be utiljzed use of excess property \~hen pracli cal . ~:hp.('tv{·r practicilb~!! in l ;cr; of the proc ul' t!l'cn t of n<; .... i ~el"!:.? 6. ~~c.·_2.£lill . (3) ( l),pliilllCC ~lith Yes . rl!QJ l rc:: c.rl l t rhl t ilt least 50 pcr CC:'ltltl of tt.!! gro~ s tonnane of cc. lXlO di ties (cor.;rut(ld se?ilra t ely for dr/bulk carrier!:. , dry cargo lincrs. ilnd tanl:ers ) flnanct"d sha l l bl.' tr,!nsported on privately o"'n~d U.S.-rIng c')I:'!I"c rci al '/c~ s~l!; to the exter.t that such \' l' !:~(: l s i1r~ availat>le at fa ir and rcasonab l(' rates . 7. F"I!{I, Sec. 621. ! f tec~r,i c al ilssistar,cc Technical assistance , t o the grea~est is fl n .. ncecf: wi l l such ass istance be fur extent practical, will b~ from priVate nisht'd t!) ttll: ful J::st extent prac.ticable as goods and profe~' !; ; onal a nd otiier cn~erprise on a contract basis. services f r Ot'l pri-tll t e en terprise on a contract bllsis? If t he f~ci1itics of othc r F" l:d cd'1 IIsencics will be't lil~zed , J are thr,y NrNcularly suHllble. no corpctltlvc ·.d t h prfVltC ('n t[' r·prh ••· .... UOO~ .'lnd r'.,l ,jl' .1villhble ~rlUlou t Imd\,;e Intcr ~ ferencc with dor.estlc prO !1 ril JlIS? ., !ntel]niltional Air Transport. ra lr to;:Pit fffi.~~ · -P-·dCITcC;::;;Ct-:!"9., r- Jr air lr ilnS~Jr· t a ti on of persons or Yl'l~ property is financed on grilnt bilS is, ~1 111 proYlsion b\' rTJde that U.S.-flat! carriers will bc u t i! i :ed to the extent ~uch service i~ AYIlllab l c1 _-...:..3 ,. n, f.onstructi o!!. 1. r AA S"C . COl d . If a LilpitJl (e,g. , Yes conHructr OIl project , ,1ro? engineering "nd professional ~cl''Iicc s of U.S. (inns a'ld thpi r' ... (f ili ~ tcs. to be u!'ed to the nax imum extl'l'IL consistent \"lith the nJtional In V,·cs t? 2. ~S~lUsl- If contrac t<; for YClS r ons t '·uct.Hill i.l·e to be fi n,wccd .....·ill orl':ej' be 1(:1. 0'1 a cOI:pcLiti ve bash to ~:"lxir.; \l r.< extf:n t Ilrilc titable? 3. [PA Sec: 620{fo:) . If fOr' construction Not P, j '}'] iCuble of prc,ducti"'c enterprise, Ilill aggreya te \ 1I1u~' 0 assistance to bo'" fUl'ni S!H.d by th~ U.S. not ex ceed S JO~ ni l1i or. ? . Qh!!.C! ..B~s tri;: 1 i cn~ 1. ! ' !L;~';~ . rJ!ili)· If dcve lo;:rent loan, Yes is H' i. erl!:>t. i .lt .. at lc.;;.st 2 ~ ;:f" r ann ';'!", (.l/f' i n~ ~; r ll Cc i'<;ri od and ~ t leas t 3:': pel' annUl1 t n('r'e~fte,'? 2. r/ ...' ·:...~t£:~OIJEJ.. If fund is es tilblhhC'd Not Applicable SOlby by U . ~ . contritllltiOIlS lind "dr:linis tered loy 5. Wi ll IlrrllnIjOl'e::t:. p ~~u~ ..'! ., flf fi n.sn ~ : iii. f AA Sc£..:.J.!i. t o Pit)' for pe forr.oln ce Yes 0i.; 4bortioM or ~o "l'fO th'.lte (II' coerce 'tsons to practiet tbortions? , b. ill Sec . ~~!l). t o co;-pensoltc Ycr; , owners f or I'x;lrcpr n tcd r t1 tional1zcd j property? j c. FIu'LSc>c . MiD . 10 f inance pol ice Ye s ~ t r41ni 1l9 0. oDi:.~rI 1 .. ·,," I.' n forc Cfl',ent 4ssiHdll ce. except fo r narcotics progrolms 7 d, FM Sec. , C0 2. f or elfl Ilctj~1tlC 5? Yos Aourc. 10j, to pd. y pr.ns i on5 , etc .• Yes ••foe i:if l Tf~ l'y per sonne l ? , f. !P.Y . SC'r.. 102,. to p<\ y U.N. assess Yc r:; 1 r.1'nts ( ~ gl ~._::; {'~_,:", 107. t o carry out prevl . Yo s !o lon :r Of ;.7J. S,~c t iOi1!> 209(d) and 251(h)7 (trans f ~' r Lv r.tll ti1 a t e r~ l or!]a nizi!. l ion f or l endi t,g ). . h. ;" 0. Sr.:" . 501. l :) be uscd f or Yes publm tyci'r prO Pll ~ J r, da f'U"r;;os cs .. 'lthi n U,S, no t au t hori! C!::! by Co ng ress? J ,, 1• ,• j • , DEPARTMENT OF STATE AGENCY FOR INTERNATIONAL DEVELOPMENT W"'SHIN~TON. O.c. 1052.1 UNCIASSIFIED Am-DLS /P .. 2258 September 19, 1977 MEMORANDUM FOR THE DEVELOPMENT LOAN COMMITl'EE SUBJECT: EGYPT .. Alexandria Sewage Attached for your review are the recommendations for authorization of a loan to the Government of Egypt ("Borrower") of not to exceed Fif~een Mi 11 ion Do 11ars ($15,OOO,OOO)to improve the collection and disposal system for solid wastes and toxic materials, togp-ther with cleaning existing sewers, repairing and replacing sewer lines now in disrepair and extending service in~o Ras El Soda area presently unsewered. No meeting has been scheduled for consideration by the Developemnt Loan Staff Committee; however, your con currence or objection is requested by close of business on Monday, September 26, 1977. If you are a voting ~er, a poll sheet has been enclosed for your response. Development Loan Committee Office of Develupment Program Review Attachments: Summary and Recommendations Project Analysis Annexes A-P UNCLASSIFIED - I. T'UHS"'CTIOH COOl: .oalllee'" "0- 1II1II"& ...... 1"10 ...... oc.., .... Q ..... N" .. AOO PP jA"-1 c: C,.. .. NGK 0 CCI..CTC 2.00CU .... [II .- PROJECT PA.PER FA.CESHEET COOl!: 3 J. COY .. T • .,. e:~ TIT ... 4. OOCU"I!:~T ~EVISla~ NU"'SER EG'fP':' 0 ""OJI:CT "U".E'" (1 al''''1 '" t. IIURE"u"a~O'ICI!: 11. r:,.::tOJe::CT rlTLE (.W•• ,mum 40 ch.,aCf.,..) - ... 1"' .... 0"- G63-00-38 -.J NE l·CO;C] I UL.."'XMIDRIA SEWAGE ] •• ISTI .. "T[O ~Y a~ ''''OJ[CT Ca",pI.ETION ~. !:STI ..... TEO O"T~ al' OSI.IO ... TION .. INI T'AI.. .v LiliJ .. QU""'TC • IT] O''''~ C:. ~IN.I.. flv l1ill (Ent., 1.2. J. 0' 4) 10. ESTI"''''TE:) COSTS ISOOO 0'" ECUlv&I.ENT S.,..I_-_._7:....::l::..;E=-______O'IRST FY I_IFE OF p"'OJECT ". ~U"OIHG SOURCe: ~------r----~----~------_4------~~~--~~.,._------0' I..'c: C;. TO '1'''1.. 1 I ) '15000.-.--!... ~~~.~ ______~ ______-+ __ ~~ ___ ~------~------_+-~6:27~0~8--~ 62708 ______...... I.. ______--I._ ... ____--'- _____--' ______--' ______L..-. ______- II. "",0"05EO BUeGET "Pp'IOP'II"'-:-EO ~UNOS ,SOOO) II. P.I"' .. ",Y "RI"''''IY TECH. CCOE , E. 1ST I"Y.l1. 101. 21'10 F"of 7..§... 1<. lRO ~Yl2.. A. ""P.O- PURPOSE ""114'1'101'1 ., COOE I c: GIIIAN'T' ::I .. 0 AN I ,. .... N T I -:;. ,,-"JAN I Gi"AN T J ... 0 AN '-. G"4NT 1.04 .... 0.'" 111 c: .L\ 320 I SUI I 15000 I 12) I I I I i JI I I I I 141 I I ":)T .. loS 15000 : 12. 1~,OEpTIo; EVAI.. N. 4'1'10; ..,..lliL I ·C. 5'1'10; FyaL 1.1 FE OF PROJECT I u ... nON 5C~IE"UI.EO " ..... PROPRI .. Tla~ I". :4,qANl" " :..O'&'N " GR AN r , S. ,-0 AN i T ~R.N 'T' '...J. l..OAN III SA 15000 IZI I ..... III I 16 ~ 'i I 1.1 TOT"I.5 15000 13. OAT .. Cf4 .. NGE INOIC .. TOR. "ERE Cf4 ..... , ..... OE IN THE <>10 .... CES ... EET 0"'1''' SI.OCKS 12. Il. 14. OR IS OR IN "R'" F .. CESIOEEr 0"'1'''. al.acl< 12' IF '(E5, '''CH CH .. NGEO "10 F"CESHEET. 1 = "0 No PID or PRP l : v ES FICE CI.E"R"~CE 15. OATE OOCU .. ENT "'ECEIVEO ~~-~------.....,I-<-.,:_---"""',y_-r-'----.------_i IN "10/'''. OR FOR 1410/'11 ooCU- SIGNATURE I /r .;/ / "'ENTS. OATE OF OISTRIBUTION [1;;£ ;. I ~iv-- TITLE I,; " O .. TE SIONEe Donald S. Brown D~rector, USAID, Egypt .'0 'llo.. 1.)0711 ,/ mYPl': ALEX.ANDRIA SEWAGE TABLE OF CONT.!!:NTS SUmmary and Recommendation...... • • • • • . • • • • • • • • • • • • • • • • • • • • iii I. Introduction .. 0 ••• " " " ".11 " " " " " " " " " " " " " " " " " " " " " " " , , , " 1 II. 'l'h.e Proj ect .Area " " " " " " " " " .•. " ..• , .•••• , " •• , • " , , , , • 2 A • City of Alexandria •••••••••••••••••••••••.•••• 2 B. Alexandria Waste'irater Collection and Di sposal System...... 3 C. Current Environmental Situation...... 6 !II. rrhe Proj ect """""." . "" . ", . " , "" . , , , . , , .... , . , , , .. , , . 9 A. Summary of Problem ....•..••••••••••••••.•••••• 9 B. Proj ect Justification •••.••••••••••••••••••••• 9 C. Project Description .•••••••.•••.•••••••••••••• 9 D. Project Benefits" .. "." .. "".""."" .. " .. ""." .. "". 10 IV. Technical Analysis .•...... ••.•••..•••.•••••••..••• 12 A. Category I - Sol:Ld Waste Disposal .••••••.••• 12 B. Category II - Reconstruction and Rehabilitation of the Existing System ••••••• 14 C. Category III - Service to Ras El Soda Area •••• 16 D. Cost Estimate .••...... ••.•.•.••••••.•••.•••••• 16 v. Organization and Management .••••...••••••••••••••• 18 A. Existing Organization ....••••••••••••••••••••• 18 B. Comment and Recommendations .••••.••••••••••••• 20 VI. Financial Analysis"""" . , , , . , . , , , . , , .. , . , . " , "" , .... 22 A. Present Financial Condition ••••.•••••••••••••• 22 B. Proj~ted Financial Condition ••••••••••••••••• 23 C. Financial.. Plan. , . ", . , , , , , , , , , , , , . , ..... ", , , , , . , 25 D. Debt Service Capability - GOE ••••••••••••••••• 26 VII. Econom:l c Analysi s " . , . , , " . , , , , . , .. , . " , . , , , , ". , , , . , , 28 A. General" , " .. , , , . , , . , , " . , , ... , . , .. , . , . , .. , , , .. , , 28 B. Least Cost .Anal!rs1 s "" ... , , , , ...... 28 i - 11 - VIII. E!nvirocm.ental A.n.a..l.ysi s •••••••••••••••••••••••••••• 29 A. Project Description .•.••••••••••.••••••••••••• 29 B. IAnd Use ....••.•.•••••• , ••••••••••••••• , •••••• 29 C. Water Qu.ality .•.....•..•••.••.••.••••.••••••.. 31 D. Atoo spheri c .••..•..•.••••.••••.•..••••••..••.• 32 E. Natural Resour~es 32 F. C1.1l. t 1.lral ...•.•••.•••.•.•.••••••••••••••••••••• 33 G. Socic-Economic ...... 33 H. Health ...•....•.••.••.•••••••••••••••••••••••• 33 I. Conclusions 34 IX. Social Anp~ysis ...... 35 X. Implementation •••••.•••••.•••..••••••••••••••.•••• 37 A. Contracting Procedure ••••••.•.••.•••••••••.••• 37 B. Schedule ..••...••...•....••.•••••••••••.••••.• 37 C. Term.1.nal Dates ....•.••.••.•..••••.•••••••••••• 38 D. Control and Monitoring Measures .•••••••.•.••.• 38 E. Evaluation .... " ...... •...•.....••••. 39 XI. Issues, Recommendations, Conditions and Covenants ...... ••••.•..•••••••••..••••• 41 A. Issues and Recommendations •.•••••••••••••••••• 41 B. Conditions Precedent to Disbursement •••••••••• 42 C. Covenant s •....•.•.•••.••.••••••••••••••••••••• 43 Tables II-l City of Alexandria - Population •••••••••••••••••••• 3 IV-l Cost Estimaote .•..••..••••..••.••••••••••••••••••••. 17 VI-l GOSSD - Alexandria - Capital and Operating Costs ••• 22 VI-2 GOE Capital Contributions •••••••••••••••••••.•••••• 25 VI-3 Fi nan c i al P:Lan .•....•.••••••.•••••••••••••••••••••• 25 VI-4 Annual Disblu-sements •.••••••••••••••••••••••••••••• 26 IX-l Enteric Disease Rates in Egypt ••••••••••••••••••••• 35 X-l Completion Schedule •••••••••••••••••••••••••••••••• 38 -iii Annexes A. Loan Application B. Draft Loan Authorization C. Section 611 (e) Certification D. StatutorJ Checklist E. Alexandria - Regional Drainage System F. Alexandria - Wastewater Facilities G. Project Cost Estimate H. Sector Review: Water and Wastewater I. GOSSD Orgp..nization Charts J. GOSSD Training Requirements K. Revi~ed GOSSD Organization L. Capital & Opera~ing Costs - 5 Years M. Valuation of Fixed Assets and Depreciation N. Projected Financial Statements - 1977 to 1990 o. Project Implementation Schedule ? M.s.nagement and Tariff Study - Scope of Work EGYPT - ALEXAlIDRIA SEWAGE SUNMARY A1'D RECO~lME!mATION 1. Borrower: The Government of Egypt (GOE) 2. Exec~ting En~ity: General Organization for Sewerage and Sani tary DrE'.inage (GOSSD) 3. Amount of LoaL: $15,000,000 (Fifteen Million Dollars) 4. Loan Terms: Forty (40) years, including a ten (10) year grace period, on the repayment of principal with inter~st at 2% per annum during the grace period and 3% per annum thereafter. 5. Description of Project: This project p~ovides for the rehabilitation of the existing wastewater syste~ in Alexandria. Project elements include (1) establishment of an improved collection and disposal system for solid wastes and toxic materials, together with cleaning of existing sewers, (2) repair and replacement of sewer lines now in disrepair, and (3) extensicn of service into th~ Ras El Soda area presently unsewered. 6. Loan Application: The Government of Egypt has requested A.I.D. to provide US $15 million to finance the US share of the foreign ex~hange costs of the project. T. Mission View: USAID/Cairo has recommended authorization of the proposed loan. 8. Source of US Funds: Fiscal Year 1977 Supporting Assistance 9. Statutory Criteria: Satisfied. See Statutory Checklist, Annex D. 10. Recommendation: That a loan in the amount of $15,000,000 be authorized on te~s and conditions set forth in the Draft Loan Authorization, Annex B. -iv- 11. Project Committees: USA-TD I Cairo Chairperson - Robert N. Bakley Sanitary Engineer - Jack Snead Loan OffiL:er - Michael B. Briggs Economist - James Norris Program Officer - George Laudato Legal Advisor - James R. Phippard -v.... \\ I. INTRODUCTION' 1.01. On April 27,1977, the Ministry of Housing and Reconstruction (MOHR) of the Government of the Arab Republic of Egypt (GOE) entered into a contract with Camp Dresser & McKee and Charles T. ?JAin (CDM), a joint venture of prominent U.S. consulting engineering firms, to prepare a master development plan for the staged development of the city of Alexandria's sewage system, feasibility studies of specific viable projects and identification of immediat~ top priority projects. A.I.D. is financing the foreign exchange cost of CDM's contract under the Technical and Feasibility Studies Project. 1.02. In August 1977, CDM's report on the immediate top-priority projects was submitted to MOHR and A.I.D. This report identifies 47 separate projects/actiYities for immediate implementation. The total cost of these projects eq~aled $230 million in FX and Lie costs. This list was pared down to 20. projects/activities in late August, and in September, the GOE requested A.I.D. financing of the foreign exchange cost of $15 million associated with these projects. The GOE's request is included as Annex A. 1.Q3. The projects being considered concentrate on improvements to the existing sewage collection system. Improvements, rehabilitation and ~~ansion of the treatment facilities are being studied by CDM, including the preparation of an Environmental Impact Statement on waste disposal. Decisions and recommendations in this area should be available late in 1978. It is A.I.D.'s conclusion that the conJition of the ~-xi5ting collection system is such that corrections must take place immediately and cannot wait until the overall Master Plan is completed. ',{e-:-xpect to demonstrate the reasons for our conclusions in this paper. -1- II • THE PROJ'ECT AREA A. City of' Alexandria 2.01. Alexandria is the principal seaport of' Egypt. The city is situated at 31° N, 29° E, on a narrov strip of' land between the Mediterranean Sea and Lake Mariout, about 175 km northwest of Cairo. The city is built on an elongated landmass which runs in the north east-southwest direction. A ridge which reaches 14 to 15 meters a,bove sea level, parallels the coast and divides the city in the north-south direction. The division resulting from this ridge has approximately 80 percent of the landmass sloping toward the sea and 20 percent sloping inland. 2.02. There is a natural depression which lies south of the city and is known as Lake Mexiout. The level of the Lake is controlled, for agricultural pUl~oses, by a series of drains. Waters which seep into th~se drains from the Lake are then pumped into the sea. The L~~e is very shallow. Its bottom ranges from 2.5 to 3 meters below sea level with a maximum depth of vater of about 70 centimeters. Untreated domestic and industrial sewege is now discharged into the Lake. 2.03. The city serves as the principal summer resort for ~~t. Industries include cOttOD. ginning, cottonseed oil, leather tanning, metal works, paper, soap, matches, shoes, ~lothing, cigarettes and foodstuffs. 2.04. The climate of Alexandria is dominated by the Mediterranean Sea. From December through !/..arch the weather is variable with cool sunny days but occasionally heavy rain and hail storms occur. The coolest month is January with a mean tecperature of 18°c. In summer, the heat is moderated by sea breezes, but there is high humidity. In August, the hottest month, the average day temperature is 31°C. Rainfall does not exceed 200 mm per annum. 2.05. The population of Alexandria has been increasing at a rapid rate. By early 1970 the number of perlUBllent residents had grown to more than 2,000,000. As a resort area, seasonal population fluctuation is experienced. This summer influx has been estimated to be about 25 to 33 percent of the permanent resident population. Results of the census and population projections of Alexandria's permanent residents are indicated in the Table below. -2- ,'" -3- ~LE II - 1 CITY OF ALEXANDRIA - POPULATION EstimE',ted Fermanent 1/ Ponullltion of AJ.exandria-- 1960 1,500,999 1970 2,100,000 1975 2,300,000 1980 2,6oo,ooo!t 1990 3,400,000* 2000 4,200,000 * Projected 11 ~~ing summer months the population increases cry about 1.5 million. ,~. 06. 'The rapid population 1lIld bdustri~1 gro·Ath at AJ.exandria ha!J posed a serious T,ffis"Cewater collection and disposal proLJ.em. This problE'M ri21 be compounded unless improvements to the exist ing sys:.em, combined rith the implementation of additional sewerage facilities a~e carried out to keep pace with the planued expansion r:Jf the city. 2.07. The discharge of raw industrial was';;ewater into the sewerage system, Lake Mariout and the sea is a serious problem. At present virtua~y non~ of the industrial '~stewaters are pretreated prior to theLr disposal. B. Alexandr:i.a Wastewater Collection and Disnosal System 2.08. Annex E shows the Alexandria regional drainage system and the locations of major p'~ stations and 'Nastewater discharges. Annex F shows Alexandria t s general wa;:Jtewater plan. 2.09. The ~isting sewe!'age system of Alexandria is a conventional gravity combined system rith 34 pun.p stations and one t!'E.atment plant in service. The system c(:l.1dsts of three independent sub systems, the CentMJ., ·..Test and Ee.st Zone sub-sy c~ems. The Central Zone SUb-system discharges untreated wastewater to the Mediterranean Sea at Kaft Bay through a 1250 "'-.ul pipelin~ 735 m bng. The We::t Zone sub-system discharges ur:treated wastewater in.to Llike l1ariout and into the Western Harbor. The western half of the East Zone sub-system discharges rau wasteWcl.ter and groundwater drainage into the: HydrodroD1e drain '''hi~h d;.scharg~s in turn to the Kaala Drain t!.D.d J..ake Mariout. The eastern half is pumped to the East Treatment Plant where a portion is given p~imary tr~~t~ent, another portion is given a poor secondary treatment and a third portion bypasses the plant. Tr~atment afforded is poor. The wastewater.3 of P2.exandria 'are relati7ely very strong and contain a significant industrial -4- vastes load, a portion of which is toxic, and inordinate amounts of t~ash, garbage and solid vastes, sand, used oil and mazout and cow manure. A second treatment in 'che West Z:,ne is under con struction but commissioning of this plant is sever~l years away. 2.10. All surface waters in the vic:l.ni'ty of Ale:u:ndria receive vast~~ter discharges. The Mediterranean Sea rece~ves the continuous Kait Bay discha~ge and significant overflow discharges from the eastern shore pump stations, especially in the nine months tourist off-season. Abu Kir B~y re~p.ives a SUbstantial and continuous discharge from the pp.:p-:r mil.::!s at Tabia and other di.scharges from textile mills and de'reloped areas in southeast Alexandria. Lake Mariout receives a tr~.,endolJ~ raw waste load from the Alexandria discharges and much agn·:ultural drainage from the northwest Delta. Raw industrial and domestic wastes are iischarged into Western Harbo~ along its developed shoreline. Lake Mariout contains gross amounts of nutrients and therefore is dystrophic and will in a matter of few decades become a marsh and in succession a peat bog. Recovery of Western H~rbcr and Abu Kir Bay depends upon cessation of organic waste discharges. The Mediterranean Sea has a potential for assimilating large quantities of vaste vater but discharge must b~ well off-shore whe~~ dilution and transportiI!g currents may be fotmd. The near-shore vaters tend to hold polluting waters and degrade the beaches. 2.11. In general, the existing collection system is properly designed and there is no duubt its further use is the only accept able economic alterna~ive. However, many of the severs are clogged with solids, there are sewers known to have collapsed and there are places where capacity is not great enough. The~e are also areas wh~~e devel~pment has taken place over many years that are as yet unse,,·t::"~a.. The more significant of these areas is Ras El Soda (70,OCQ people). In addition, there are operating policies which require correction in order to llave a properly operating system. For example, the existing sever use law must be enforced to exclude discharges which damage the sewers and down-stream facilities and which make prOT 'r operation impossible. The surcharged operation of the gravity syst :m must be changed to make use of the solids c&rrying ability of the gravity-flowing vater to decrease sewer clogging. Maintenance functions must be staffed and equipped at a levd which will maintain pace with the needs. The following paragraphs give a more detailed description of the collection system. 2.12. East Area. The eact area of Alexandria is divided into II SLlB.ll zones which are served by 11 pump .'tations. In addition, -5- the districts of Montazzah and Mamoraa are connected to these zones. Se\4ge from these areas is pumped to a new 100 ,000 m3/day sewage treatment plant located to the northeast of the Alexandria Airport. This sewage treatment plant has Just been put into operation. It provides secondary treatment by means of the activated sludge process. It is planned that this plant will, i~ the future, also serve the eastern sector of the central area where the old sewer system exists. 2.13. The effluent ~om the treatment plant is drained to the Nekodeia Str'!am. This stream flows west thence north through the city, eventually emptying into the Western Harbor of Alexandria. 2.14. Central Area. The central area of Alexandria is served by a system of sewers ranging in size from 18 cm to 60 cm and collectors which range in size from 90 cm to 2 m x 1.6 m sections. The slopes of these existing sewers vary from 0.05 percent to 0.2 percent depending on pipe size and location. This ~ewer system is part of a combined storm and sanitary sewer system that empties directly into the Mediterranean Sea without prior treat ment through a submerged outfall pipe that extends 735 meters into the sea, discharging the sewage at a depth of 16 meters. 2.15. The north central coastal area of Alexandria has four pump stations. The sewers near th~ shore area are built with a series of overflow lines that spill directly into the sea. This is a combined sewer system; when the winter rains exceed the sewage flow by a ratio of about 3 to 1 the excess sewage is permitted to overflow the weirs built into the manholes, and drain directly into the sea. During the sammer months, (May through September), when the bat3ing beaches are being used for recreation, the weirs are bricked 1n to form a complete enclosure. The sewage is then pumped as dry we~ther flow. During the seven winter months the weirs are re--opened. 2.l6. West Area. The west area, generally defined as that area west of Nekodeia Stream and east of the slaughter~ouse area, is currently being served by a sewage system with pump stations and gravity sewers. The raw sewage is presently pumped without treat ment into Lake Mariout. A new 85,000 cubic meter per day primary sewage treatment ~lant is under construction to intercept and treat this sewage before discharge into the lake. Completion of thi~ plant is scheduled for 1978. 2.17. Ras Ei Soda and Four Other Areas. These areas are not presently sewered. The Five-Year Plan (1975-80) has identified -6- these zones vhich are to be provided with severage facilities on a priority basis. Preliminary design concepts have been formulated by GOSSD •. 2.18. Inlet East of Abu Kir. This j~et (part of Abu Kir Day) is loca.lly knovn as a ItDead Sea". Currents from the Medi t.erranean S~a do not penetrate into this inlet because of its physical configuration. Several factories in this area along the south shore are discharging their untreated industrial effluents into it via an open agricultural drain. This -drain is about five meters belov sea level and in order to discharge the drain waters into the sea it is necessa.7 to raise the level of the water to sea level. The Tapia Pump Station fulfills this need. 2.19. The existing severage system is plague1 by many problems. At the p~esent time, ,md for a decade or two in the past, the Alexandria sewer syste.u has been grossly I.l.bused by the dumping into it of great masses 0/ materials whi'..!h the system is :lot designed to convey. Th~~~ materials s~riously affect the operation of the treatment plant, make sever clelming difficult and, upon discharge, degrade water quality and ca'lse gross pollution. The materials contain toxics vhich may have ~erious consequences on public health by contamination of the fooa chain. 2.20. Another problem vhich hampers the pr0pcr operation of the existing sewerage system is the policy to allow b~charging the gravity collection syst~. This is done for various ~easons principal ~ong wr~ch are a significant number of desig~ deficiencies. Wet veIls have not been provided with enough capacity, some of the older pump stations have no wet wells at all. The effect of surcharg ing is to allow solids in the wastewater to settle out and accumulate in the pipelines to require cleaning which vould not ordinarily be necessary. Surcharging also -:auses contamination of groundwater in the vicinity of sewers due to leakage out of the pipeline. The most harmful effect of operating surcharg~d, is the increased amount of rav sevage overflow to the Sea. 2.21. Unsewe.red areas of densely populated areas present other serious health and social problems. As soon as possible these areas must be sewered. Any work in these art:'lS would be environment &11y and socially acceptEo.ble .compared to the present situation. C. Current Environmental Situation 2.22. The vater quality in the area is affected by the discharge of wastewater, largely untreated, to the local natural watel" courses. -T- The Mediterranean Sea appears capable of handling and 8.ssimilating the waste loads discharged to it. Kowever, bacterial counts at the beaches are unacceptably high and disease (typhoid) has circumstantially been related to those having bathed in the Sea. Floatable material of st':we.ge origin has been observed on the beaches and daily cleaning is practised to keep the beaches sui table for use. Mas~ies of aquatic plants ~ no dcubt !'ertilized by' nutrien"ts derived from wastewater, can. be cbserved along the entire shoreline. Cr(~w are employed to remO'le these grO\orths in preparation for the ~umoer season. 2 .. 23. La.k.e Mariou'c, which recei'res the maj or portion of the pollutional load~ is grossly polluted. Only its shallow depth and frequent aerating and stirring rlnds~ keep it from being entire ly septic. The northeastern third of the Lake is usually septic but the other areas support fish gro·~h. Great masses of sludge can. be observed near the ~~ious wastewater discharge points. These are sources of flie:,: and odors. The drain which ci!"cles the Hydrodrome also re-:ei .eo:; th~ drainage from much of the eastern portion of Alexandria w'uch during the dry season is undiluted raw sewage. As a con&equence, this drain, which is about 30 m wide and 10 m deep and several kilometers long is a large open anaerobic digester with a thicJe, heaV'f covering of floating sludge upon wh:i.ch growths of weeds have started. This drain no doubt has remarkable natural pU!"ification qualities to remove staggering amounts of BOD but the fact remains that even rl th significant dilution with irrigation retu..-.on drainage, the total load in BOD to the eastern corner of Lake Mariout is substantial. 2.24. Yce water pollution of the Western Harbor is another significant problem. Untreated wastewater from a sizeable portion of the Central Zone is discharged at the shoreline into the Harbor at its busiest and most noticeable point. In addition, there are no wastewater facilities for the many ships which are berthed there. With ships waiting for weeks for berths, these berths are occupied constantly. Furth.er around to the west, untreated wastewater is also discharged to the Harbor from those portions of the Western Zone located along the HArbor. This area contains the local slaughterhouse and several tanneries as well as other industries and a subst.antial number of lew income residences in dense configuration. In ~ddition, the local caustic chemical plant at Mex has its own outfall into the Sea discharging strong chemical wastes. 2.25. Similarly, to the east where the Tabia Pump Station dis charges into Abu fir Bay, there is gross pol'::'ution. Studies of -8- the pollution caused by this discharge indicate that the natural dispersion is of a low orier and that high concentrations of pollutants ere developiug and spreading radially from the Tabia location. To indicate the severity of this pollution. a study repartee in May. 1977. shows the BOD5 of a sample near Tabia discharge was 798 mg/l and at a point 3.6 km southeast and 1.4 km off-shere the BOD~ was 245 mg/l. The principal polluting discharges are tram twO pape~ mills near the Tabia Pump Station and several textile mills located some cti.stance upstream on the Abu Kir Drain. 2.26. It can be safely said that no natural waters near Alexandria have r.!en spared substantial pollution from discharges emanating from Ghe Ci '\;y • nr. THE PROJE~ A. Summa.ry ot Problem 3.01. The conclusions dravn from Section II is that the situation in Alexandria is serious. The present wastewater treatment facilities are inadequate to cope with the volume and strength of wastevaters nov being generated. As a reRult, all surface vaters vithin reach ot Alexandria are grossly p~lluted from the city's discharges, including the shoreline vaters of the Mediterranean Sea. 3.02. Secondly, the existing collection s;)rstem., vhich, vhere it exists, has fallen into disrepair and is seriously affecting the environment of the city. 3.03. Third, there are many areas in the city vhich are prese~tly not severed. The living conditions in tilese areas~ vttich are the poorest and most populated areas of the city, ar~ intole~able. B. Project Justification 3.04. The treatment of Alexandria's vastewater is nov being planned by the A.I.D.-financed consulting engineering firm, Camp Dresser & McKee. The major question to be addressed is the type of ~reatment required (primary, secondary) and where it vill be disposed of. Decisions viII be made following studies now under~y including a major oceanogr~phic study. 3.05. Certain activities can be started nov. The first of vhich is a solid waste collection and disposal system. The second is the repair and rehabilitation of the existing wastewater collection system. The third is a sewage service to areas not served by the present system. For ease of analysis and discussion these activities have been classified into three categories. C. Project Descrintion 3.06. The projectl proposed for imruediate funding are: I. Solid Waste Disnosal Systam the primary objective wiLl be to assist GOSSD to develop and implement a solid va.ste disposal system. The system will need to flmC'tion in the lower class neighborhoods vhere solid waste has little salvage value, and in industrial areas vhere most vaste has no salvage value. -9- -1.0- The proposed project inputs include the ~stem, collection depots, vehicles for transporting solid waste and disposal facilities. The project will also include the cleaning of the existing wastewater system vhich is clogged due to improper disposal of solid waste. II. Reconstruction and Rehabilitation of the Existin~ System The existing system is in disrepair. Many pumps are inoperative and most 00 not vork to design capacity. Many severs have collapsed and many manhole covers are missing. The project inputs will include the desigu and engineering necessary to correct the system, nev equip~nt and construction services. III. Service to Unsevered Areas There are many areas not nov serviced by the system. We have selected one area - Ras El Soda - vhich is densely populated. The project inputs will include equipment, design and engineering, and construction of street severs, collection mains and force'pumps. D. Project Benefits 3.07. It will take many years before certain conditions in Alexandria a":'e corrected. For example, years will be required for the natural assimilation of the sl~dge banks that nov exist in Lake Mariout an:l in the Hydrodrome and Kaala Drains. On the other hand, many benefits will be realized immediately from this·project. The severing of the Ras El Soda area should clear up the dry veather drainage problem quickly for a high visual impact. The public health benefits will begin imuediately, but will take longer to reach full benefit because it will take time for the existing reservoir of clinical and sub-clinical diseases to be dissipated. There will also be a significant reduction in the amount of over flowing vastevater, both to the sea and to the various drainage veys around the city. The frequency and severity of flooding viII be decreased, especj~y in those areas of Mohamed Ali Square and Smouha. 3.08. The improvement in quality of the near-shore waters of the sea will be noticed vithin a fev years through the elimination of the frequent and prolonged discharges of sanitaries wastewater in the fall, winter and spring. -ll- 3.09. The project will also considerably improve the reliability ot the ~stem, decrease the number of sewer blockages, and impr~re the operations of the pump stations. All of these will decrease the operating and maintenance cost of GOSSD-Alexandria. IV. TECHNICAL k1ALYSIS A. Category I - Solid Waste Disposal 4.01 At the present time, and for a decade or tva in the past, the Alexandria sewer system has been grossly abused by the dumping into it or great masses of materials which the system is not designed to corrvey. These materials are solid wastes and trash, mazout and. used oil, toxic and low pH wastes from industry, septage from the pumping of septic tanks and cow manure from the cow barns located in the city. lbe solid wastes, septage and cow manure in the volumes dischargea to the sewers cannot be carried in the sewer and this results in blockage of the sewer and the accumulation, ion addition, of the solids that normally would be carried by the flow in the sewer. The mazout and waste oil float on '~he water end accumulate in the high points in the system. These materials seriously affect the operation of the treatment plant, make sewer cleaning difficult and, upon discharge, degrade water quality and represent a potential fire hazard. The toxics and pH affect the structure of the sewer and any metallic components, and render impossible the operation of any biological treatment processes. The toxics also add materials which may have serious consequences on public health by contamination of the food chain, especially in Lake Hariout fis}l. In order for the sewers to operate properly, thse IlIdterials must be kept out. The present Sewer. Use Law prohibits the placing of them in the sewer but this Law is not enforced. Before this La1{ can be enforced , alternative means of collection and disposal 0:' these wastes must be established and placed in operation and the people who generate these wastes instructed in the proper use of the collection procedures and facilities. The GOSSD's vehicle fleet is small and most units are not des igned to handle the problem 'Hastes. 4.02 To address this problem, an improved solid waste management system for Alexandria will be developed and implemented. The facilities required will be (1) depots for collection of each of these wastes, (2) facilities for proper disposal of these wastes and (3) vehicles and crews for collection of these wastes and transport to the disposal point. Mazout and used oil and grease should be collected regularly by crews of employees provided with tank trucks and hauled to a remote site for burning. Manure should be similarly collected and hauled to a rural site where farmers could obtain it for their agriculturs.l use. Toxic materials should be separated and concentrated at the industrial plant ~rior to 12- -13- collection by GOSSD-provided trucks for transport to a r~ote site for lagooning and disposal by evaporation. Regular routes for collecting should be established and facilities provided for storage of the wastes between regularly scheduled pickups. The alternatives to this method of collection and disposal are to contract for private collection and disposal or to require the industry, establishment or individual to dispose, by the best means available, of his wastes. The latter will be impractical because it will result in these wastes continuing to be dumped in the sewer. Another sourc-e of solid wastes that will be handled and disposed of is the material taken from the sewers by the sewer cleaning operations. This is noxious material having cousiderable danger from the public health standpoint. It is expected that a ~Jallitary landfill will be established outside of the urban area f07: disposal of refuse and noxious wastes. 4.03. Concurrent with the establishment of an improved solid waste collection and disposal system, a sewer and pump station wet well cleaning program will be carried out. GOSSD now has a working sewer cleaning organization, with experienced cre~s and equipment of various ages and suitability for a heavy cleaning progr~. A considerable portion of the existing collection system is known to be in need of cleaning, far more than can be handled on a "cat~h-up" basis by the present GOSSD sewer cleaning crews. Ther~fo"'e, contract crews will be employed to provide a one-time assist to relieve the backlog of cleaning work and the GOSSD cleaning organiz ation will be overhauled, augmented and re-equipped to be able to keep up with the subsequent on-going cleaning and maintenance work. More than 40 percent of the vehicles used for maintenance of the system have been in service for at least 10 years. These vehicles have become less effective and more costly to maintain si~ce the normal useful life for vehicles is about 7 to 10 years. These vehicles will be replaced during 1978 through 1980. and a program will be established for continuing replacement of these vehicles based on a 10-year service life. The alternative to this program- med replacement of vehicles is to accept the economic losses of maintaining old vehicles and the costs of time lost by crews unable to leave the work area because vehicles are being repaired. The program proposed for the contract qark will call for cleaning and inspection of sewers 300 mm diameter and larger. It is proposed that the llewly organized GOSSD crews could clean and inspect the sewers smaller than 300 mm diameter. It is expected that with implementation of the Sewer Use Law and the assist by contract cleaning of the large sewers, the newly organized and equipped GOSSD crews will be able to keep up with the sewer cleaning work load in the future. -14- 4.04. Once the existing sewers are cleaned and the nev solid waste collection system is in place. GOSSD viII implement the existing Sever Use Law (No. 93, of 1962), which provides for penalties for improper disposal of wastes. B. Category II - Renairs and Renlacement to Existing Systems 4.05. The work included in this cat~.gory pertains only to the repair of the existing sewage system to restore it to its maximum design capacity. Included are repairs and maintenance to existing ccllectors, repair and replacement of pump stations and pump station e~uip~ent, and other facilities to improve system reliability. The specific tasks are described below. 4.06. Sewer Insnection and Cleaninj[. GOSSD now has an insurmount able bacldog of sewer cleaning and i:"spection. To overcome this backlog, GOSSD viII contract t>':' th an e;'"Derienced contractor to clean anc. inspect. approximately 40 km of ..... ain collector~ having a diameter greater than 1,000 MM, 90 km of secv~~ary collectors of diameters between 600 and 900 MM, and 215 km of SUb-cu~~cc~nrs of diameters between 300 and 500 MM. 4.07. Collector General Relief Sewer. The needed capacity of the existing h rIe ..- Collector General Gravity Sewer" exceeds the present capacity at maximum flows of the collector upstream. To relieve this deficip.ncy in carrying capacity, a relief sewer viII be constructed from Salah El Din to Silsila. It will consist of 12CO meters of 1400 Mr-1 pipe, 140 meters of 1000 MM pipe and 210 meters of 900 MM pipe. It will parallel the existing "New Collector General Gravity Sewer" in the Corniche along the Eastern Harbor. 4.08. Western Harbor System. To decrease the gross pollution i~ the Western Harbor and the dock side area, a storm vater diversion, interceptor, pump station and force main vill be constructed. This construction 1rilJ. intercept the on-shore sanitary vastews:aen and· allow storm vater to continue to flow to the harbor. Presently waste- vater is discharged into the harbor. 4.09. Reconstruction of Cnllansed Sewers. Lists of sewer collapses caused by structural failure and surface collapses dup. to leaking sewers have been compiled by GOSSD. These lists, which identify date and location of collapse, shov th~t between January 1974 a~d April 1977 there have been 390 ~uch collapses. Others that are known to have collapsed are not on this list. This project viII replace approximately 50 km of sewers and repair others. A more definitive listing viII be made after excavation and inspection has been completed. -15- 4.10. Manhole Cover Re~lacement. Many of the existing manholes, ~articularly in the East Zone of the city, are so constructed that it is not possible to gain access with sewer cleaning equipment. These manholes, in general, are on dual pipeline sewers in which storm and sanitarJ wastewater are, up to a certain level, ca~ried in separate pipelines. The ~ole openings are relatively mnall and are not located in direct alignment with either of the pipe li~es. maki~g it impossiole to use modern sewer cleaning methods and equipment. The number of manholes in the s~rstem b estima-:ed at 300. To correct the problem, the top slab of these manholes will be removed and replaced with slabs in which the openings are properly sized and located. In addition, 29 manholes (100 met~r spacing) will be constructed over the collector betveen the Ibrahimia railway underp~ss and the Smouha Siphon to allow for mechanical bucket cleaning. This is a dual line syste~, wi~h manhole openings 0ver only one line. 4.11. Smouha Storm Water Drain. The main route into Alexandria from Cairo is flooded several times each year. Much of the runoff is inadequately handled by the Smouha Drain since it also handles sanitarJ wastewater from a part of the East Zone. To solve this problem a new storm water drain will be constructed. 4.12. Mohamed Ali Sauare Drainage Relief. The Eastern Harbor collector system is usually overloaded and, during wet weather periods, cannot accept the storm water collecting in Alexandria'd busiest commercial area, Mohamed Ali Square. '1'0 provide re.'.ief, a storm water pipeline will be constructed with a capacity of 100 ML/day. Discharge of the storm water collected will be directly into the harbor. This construction will relieve the load on the Eastern Harbor collector and will decrease the size require ments for-future downstream conveyance, treatment and disposal facilities. 4.13. Snorting Pump Station and Force Main. The present "Sporting Pump" station nominally has enough capacity to meet t,b.e projected peak flow of 40 ML/day. However, it has many discrepancies and deficiencies which make operations hazardous and complicated (it is 42 years old). It will be replaced With a modern, well ventilated station with automatic controls. Also, because of its location on the shoreline, and with the number of power outages, standby power facilities will be provided to prevent by-passing raw sewage to the beach, which now occurs frequently. 4.14. Bisiry Force Main Extension. The force main will be extended by 20 meters and a new pump installed. The construction will relieve the frequent flooding at the Ras El Tin collector. -16- 4.15. Rehabilitation of the East Zone Pump Stations. Nine of the pump stations in the East Zone are now inoperable. As a result, sewage overflows regularly to the Eastern beaches, and to the Sea. All will be overhauled and provided vith autol!lE.tic controls. 4.16. Hos·oitals Pump Station and Force Main. The~e pumps and force mains are badly mismatched and, when the pumps operate, total head (static and frict~.r.. n) exceeds the design head for the pumps, and results in no flow being discharged. Also, the force main is nov broken in a number of places. As a result of these conditions, wastewater flows from the pump station to ponds nearby and eventUally enters a druinage ditch. The station pumps will be changed to match the flow requirements, the pump stations will be rehabilitated, and the force main will be repaired. 4.17. The Glym, Sarwat and Sidi Bishr Pump Stations.. ~e three stations ar~ along the Mediterranean Sea Coast. All were built in 1935 and are no~ capable of handling present day flows. As a result, their overflow flows to the beaches. All three will be replaced. In conjucntion with the replacement of the pump stations, new force mains and gravity pipelines will be constructed to carry the flows to the existing collectors. C. Category III - Service tc Unsewered Area 4.18. The ar~a to be sewered is known as Ras El Soda. It is bordered on the north by the Abu Kir-Alexandria railroad, on the west by Rue Gamila Bohreid, on the east by the Ezbit El Montazah section and on the south by the Montazah Canal. Its present population is 55,000 and is expected to increase to 70,000 in 1980. The western portion of this area is now sewered by an extension of the adjacent sewer system. A small portion of ";he area along the Montazah CBllal near Rue Gamila Bohreid is served by gravity drains and siphons under the canal disc.:harging to agri~ultural lands. The major portion of the area is not sewered. 4.19. In general, street sewers will be installed with houSe connections. A new collector sewer will be installed to bring wastewater to a point near the center of the area. Force mains and a pump station vill be installed. The collected wastewater vill be initially deposed of in Abu Kir Bay, untreated. D. Cost Estimate 4.20. A detail ~d cost estimate is included as Annex G. The following Table summarizes those costs. -17- TABLE IV-l COST ESTIMATE (in thousands of US $ and LE) CategOl'"'1 U.S. Dollars Egyptian Pounds ....T Solid Waste P:-ogram 1,940 972 II. Repair of Exi~ting Sys~eo 8,733 27,666 III. Service to Ras El Soda l.t..453 11,221 3 Sub Total 14,li6 39,865 0 Extra Contingency ( 1.. /:) J 864 3z9M ,-r fJO:; Proj ect Cost ~99o- 43,852 --- 4.21 All cost est.imates were prepaj.·ed cn the basis of July, 1977 prices. For foreign exchange costs, those are the costs appearing in the July 1977, Engineering News-Record. For local construction such e.s tlL.mels, large: size sewers and pump stations, cost infor mation developed by CDH was used. The cost estimates assume norz:tal construction conditions, typicaL foundation and soil co~ditions and a normal bidding clinate. 4.22 Included in the cost estimates are inflation (escalation) based on the rates shown in Annex N (Notes to Financial StJO.tements). Also included in the basic cost is an allowance of 15 percent of construc tion cost for contingencies, 10 percent of construction cost for engi neering and 5 percent for administration. We have added an additional contingency of 6 percent for foreign exchange cos~s and 10 percent for Egyptian pound costs to cover contingencies for equi,ment and materials. 4.23 The foreign e;{change cost estimate includes equipment and materials to be purchased in the United States including such i terns as sewer cleaning equipment, vehich:s, trench sheeting and iron m~,hole cov~rs nnd iraQe£, and U.S. consulting services, including (1) a contract with aU. S. engine~ring firm to assist in design, procurement and construction supervision and (2) a con tract with a U.S. firm to provide supeIvisory personnel and related equipment in cClnjunct~.on with the sewer inspection and cleaning program. The U.S. engineering contractor. at the outset would be expected to prepare a detailed list of equipment and material requirements, including specifications, lihere necessary, to carry out the program. The cost estimates prepared by the consultants (COM) have been reviewed and have been found reasonably finn to justif:r the conclusion that the requirements of Section 611(a) have been met. v 0 ORGANIZATION AND MMIAGEMENT A. Existing Organiza.tion 5.01. Egypt's water ~~ wastewater sector is described in Annex H. The wastewater collection and disposal fUnctions in Alexandria are perforoed under the ultimate control of a national level organiz ation and subject to policies established at the national level. The General Organization for Sewerage and Sanitary Drainage {GOSSD), an instrumentality cf the Ministry of Housing and Reconstruction (MOHR) .maintains staff, offices and other facUi ti<.!s ir'. Alexandria as required to operate and maintain the wastewater collection and disposal systems. While most routine management functions are decentralized, design, tendering and award of major projects are performed. in the Cairo office. Tr-ansfer of the waste1.rn.ter functions f':rom the GOSSD to the Ale::un.dria Governorate is presently under consideration but the details of such a move are not yet available. 5.020 A ch!lrt of the o:;:oganization of GOSSD and GOSSD-Alexandria is shown in Annex Io The Gene~~ Director's duties are presently being performed on a part time basis by an official of GOSSD's central office. There are four staff departments and five line dep~ments in the organization, each headed by an assistant general director. The functions and salient features of each department are summarized below. 5.03. S:aff ~~ction. These are eSSentially supporting units for the provision of personnel services, legal cClmsel and financial and general s~rvices. The Personnel Department administers the standard national personnel system applicable to all Government agencies. Weaknesses in the overall compensaticn system are well known; another factor that tends ~o weaken the organization's ability to attract and retain competent personnel is the regulation pertaining to selection for ~romotions, which tends to program an individual's career at the very beginning, leaving no incentives for achievement or excellent performance. 5.04. The Legal Department provides the range of expected legal services. T:le lc.ck of an effecti ve reb~lato:-y program, however, hinders efforts tu pursue the prosecuticn of cases aimed at securing compliance with the sew€'r use law. 5.05. The Budget and Finance Department includes pt'rchasing and store-keeping as well as the ac count in,>; , budgeting, disbursing and cashier functions. Purchasing activities conform to nationally -18- -19- established procedures, generally requiring competitive bidding tor purchases in excess of L.E. 500. Stores are maintained in a number of locations to serve the needs of operating and maintenance units. Although a great deal of information is gathered at the lover levels of the organization, little is done to collect, summari:e and evaluate such data for the ~3e of top level management. 5.06. The Public Servi~es Dep~ment receives and processes complaints and pro,~des g~n~ral co~ity relations services. It also supervises the provision of security services and its Assistant General Director p~rticipates in the capital development planning precess. 5.07. Ooerating· ~d Maintenance Functions. Operation and maintenance of the GOSSD-Alexandria sewerage sys+~ is accomplished in three departments. The Sewer Maintenance Department, responsible fer cleaning and repairing severage throughout the City, utilizes a highly decentralized approach to accomplishing its tasks. Seven distri'.:ts have been established, each with assigned crews and a basic allotment of tools and in some cases, permanently assigned mobile equipment. Additional requirements for equipment are obtained througb a central pool. The districts vary widely in size ~d other characteristics affecting workload. NumerO\lS and severe problems have been created through the misuse of the system including the dispo:d!:'.g of mazout, cow mamu'e, solid wastes and toxic and corrosive industrial '~stes into the system. As a consequence, most of the Department's work is corrective rather than preven~ive in nature. 5.08. The M~~hanical ~d Electrical Department operates and maintai!ls :!.Jump stations, provides auxiliary pumping services as needed ~d manages the equipment dispatching and repair functions. In addition, staff of this Department can provide mechanical and electrical design services when required for the design of smaller pumping facili+.ies. Pump stations are staffed on a 24-hour per day hasis and the city is divided into two zones for operational control purposes. Emergency pumping services are provided by the auxiliary unit when needed to alleviate flooding or for dewater i~g pumping stations that are under repair. The equipment shop is capable of repairing or rebui11ing virtually any unit included in its inventory. 5.09. The Water Pollution Control Department is responsible for the operation and maintenance of the Eastern Treatment Plant and for monitoring water quality in Lake Mariout and along the beache:: •• The plant is not functioning nroperly due to a variety of circumstances -20- including faulty design, heavy loadin~ of industrial wast es and lack of training and motivation of plant staff. 5.10. D~veloument Functions. Project design functions are divided betveen GQSSD's Cairo and Alexandria offices. With limited staff ~d equipment resources, the Alexandria office is severely handicap ped in performing its duties vhich include the design of &mall extensions and pumping stations, collection of field data for designs to be accomplished in Cairo, placement of grade stakes for con struction and taking quantity measurements fo~ contractor's payments. 5.11. GOSSD's representatives on the site for all construction projects are provided by the Department of Project Execution. Department representatives participate first in the bid-openin~ and evaluation processes. A team of inspectors and engineers is then appointed to assure compliance vith the plans and spedfications for the project. Applications for connections and extensions are also received and processed by this Department. Applicants for nev connections are required to deposit the amount of the estimated cost of the connection. Developers are also required to bear the full cost of designing and building the collection systems and connections to their develcv~ents. The Department also inciudes a drafting unit to meet its requirements as vell as the needs of the Design Depar~ent. B. Comment and Recommendations 5.12. GOSSD suffers from the same problems facing all public sector operations in Egypt: overstaffed in some areas and under staffed in oth~r areas; lov employee morale due primarily to low wage levels; and a high ttL~over of its most experienced personnel. Most of these problems can only be corrected by central Government action. There are, however, a number of actions GOSSD can take to assist itself. 5.13. First, and the most important, is the appointment of a full time Director and a full time Deputy Director for the Alexandria operations. The activities of the Governorate are too important to be left to a part time Director resident in Cairo. 5.14. GOSSD can also address the staffing le·rel. It is a growing organization and will need to continually increase its overall staff. When adding this staff, it must be careful of their assign- ment in the organization. 5.15. GOSSD must also accept that it vill continue to lose its most highly qualified personnel; and that it will bE' unable to -21- replace them vith personnel of equal qualifications thro'~h outside hirirg. It therefore must start a training program to increase tue 1evel of competence of its existing staff. That is, it viII have" to replace personnel through internal promotions, but i t mus',~ assure that those promoted are capable of ansuming the new tasks. CDM has prep-tred a "tentative outline of trailling requirements" which is being reviewed by GOSSD. It is Inclu.ded as Aru..'P~ J to this paper. 5.16. GeneralJ.), GOSSD-Alex!lUo:ia' s organizational structure is adequate for itil tasks. However, project planning, monitoring and execution are now spread throughout the organization. We will require that GOSSD review this function and develop clearer lines of au~hority. In the interim, we viII re~uire GOSSD to establish a new staff office whose sole function will be to work on this pro.1ect and interface with the consulting engineer and the internal departments of GOSSD. Also, this project viII require GOSSD to start a solid waste disposal program, an activity it has not previously been involved with. A revised organization chart taking into account the actions discussed above is shown in Annex K. Appropriate conditions ~~d covenants viII be includ~1 in the Loan Agreem~t. VI • FINANCIAL ANALYSIS A. Present" 'inancial Condition 6.01 Annex L shovs the actual operating and capital costs of GOSSD-Alexandria for the years 1973 through 1976 and the proj ected costs for 1977. Table VI-1 be10v summarizes these costs. TABLE VI-1 CAPITAL AND OPERATING COSTS (in actual Egyptian Pounds) Operating Canital -Total 1973 630,843 544,850 1,175,693 1974 675,515 500,000 1,175,515 1975 741,435 537,658 1,279,093 1976 897,907 1,029,652 1,927,559 1977 995,644 1,600,000 2,595,644 6.02. During the period 1973/197- operating costs increased from LE 630,843 to LE 897,907, an increase of 42 percent, and are expected ',,0 increase to LE 994,644 in 1977, an increase of 11 percent over 1976. Personnel costs (salaries, allowances and benefits) constitute about 75 percent of total operating c a;ts. This category increased by 47 percent during the four-year period, but is expected to increase by only four percent in 1977. Spare parts costs have remained flat dvxing the period 1973/1976 but is expected to almost double in 1977, reflecting the poor condition of most plant ruld equipment. 6.03. Capital costs vere LE 544,850 in 1973 and LE 1,029,652 in 1976, an increase of 89 percent, and is cxp~cted to increase to LE 1,600,000 in 1977, an increase of 56 percent over 1976. 6.04. With the exceptiun of charges made to nev customers for sever connections, all revenue is received from the GeE budget. Up until 1962, GOSSD charged industrial customers LE .003 per cubic mete~ of vast~~ter discharged (based- on the metered use of water). In 1962 this charge was dropped in conformance with Government po1i~. We vere informed that even vhen there was a ~harge for sever service, little re7enue was collected because the sever charge was not billed with the water charge, and separate collections were difficult. -22- -23- 6.05. Sever connection fees are received from tve types of customers. The first categorJ is the customer who specifically requests a sever connection. About 150 such connections have been made a year since 1973. The average cost per connection va~ LE 43 in 1973 and LE 102 in 1976, an in~rease of 138 percent. The customer pays in advance for the installation based on e.n estil:!ate, which is then a~justed to actual. Customers in low rent housing are charged 90 percent of cost; GOSSD absorbs the remaind~r. 6.06. The second category are those customers who are connected to the systf;lD. as GOSSD sewers new areas. GOSSD has averaged abol't 725 such connections a year during the past tve years. The average cost in 1976 vas LE 150 per connection. As of December 31, 1976, GOSSD vas oved LE 195.763 for connections (equivalent to 1,305 connections at the 1976 charge, or more than tve years of installation verk) . 6.07. GOSSD's current accounting procedures do not incorporate fixed aS3et accounting nor depreciation. CDM has made an attempt at estimating the value of GOSSD's plant and equipment (in Alexandria). Their analysis is shown in Annex M. Based on that analysis, GOSSD's plant and equipment has a replacement cost value of LE 139.8 million ($200 million at the 'Ooxallel market rate of LE .70 equals US $ 1.00), with a curre~t value (net of depreciation) of LE 70 million ($100 million). B. !!ojected Financial Condition 0.08. GOSSD's present financial statements consist only of a listing of cash receipts and disbursements. Budgets are prepared annually and contain operating costs, the capital cost of on-going work, and new work GOSSD plans to unde:i."take in that fiscal year. Occasionally GOSSD does not receive enough funds to cover its on-going capital program. Usually, the contractor continues his work and is paid in subsequent years. Payments for past vork during the period 1973 to 1977 are shown in the five-year financial statement as debt payments (Annex L). 6.09. GOSSD's present fins.ucial statements are insufficient for planning and operating, especially when one considers the magnitude of the investment program facing GOSSD. To obtain a picture of the future financial situation of GOSSD's Alexandria operations and to assist GOSSD and the GOE in their future financial planning, we and CDM have prepared projected financial statements of GOSSD Alexandrfa for the period 1977 through 1990, by years, and for the -24- year 2000. These projections are included as Annex N. They consist ot the folloving statements: 1. Pri.mB.ry Statements (a) Balance Sheet (b) Income Statement (c) Source and Application of Funds Statement 2. Supporting Statements and Schedules (a) Estimated Capital Expenditures (b) Projected Vehicle Requirements (c) Schedule of Capital Assets (d) Schedule of Depreciation Expense (e) Customer Contributions (f) Operation and Maintenance Expense (g) Projected Staffing Requirements 3. Assumptions and Notes to Financial Statements 6.10. Balance Sheet. The Balance Sheet reflects the present estimated assets and all estimated capital additions. The "Utility Plant" is expected to increase from LE 139.8 million in 1977 to LE 678 million in 1990 (and to LE 1.1 billion in year 2000). No debt has been included (and therefore no interest expense is inclu~ed in the Income Statement); it is assumed that all capital contributions will be in the form of equity. 6.11. Income Statement. The Income Statement summarizes the operating results of GOSSD-Alexandria in terms which are similar to a private enterprise. Revenues (service charges) are assumed to be initiated in 1980 and set at a level to cover only GOSSD's operating costs and working capital. All other assumptions are explained in the "Notes to Financial Stl::.tements" or are footnoted on the individual statements. With these ~ssumptions and using acceptable accounting procedures (e.g. depreciation), GOSSD Alexandria's loss in 1977 is LE 4.3 million rising to LE 15 million in 1990 (and to LE 22 million in year 2000). It never earns a profit. By 1990 the cumulative loss for the 14 years (1977 to 1990 inclusive) is LE 144.4 million. 6.12. Source and Application of Funds Statement. This statement shoW'S GOSSD-Alexandria' s cash flow by years. Cash deficits are shown to be covered by contributio~ from the GOE. The Table below lists these contributions for thepe::-iod 1977 to 1990, '.l.Ild shows what additional contributions will be required if no se~'~ce charge is instituted in 1980. .... < -25- TABLE VI-2 GeE CAPITAL CONTRIBUTIONS (in thousands of LE) Wi th Se:':"'Vice ~ Chars;e 1977 4,303 4,303 1978 29,558 29,558 1979 92,431 92,431 1980 139,890 3,157 143,047 1981 132,876 3,859 136,735 1982 29,721 5,594 35,3::'5 1983 9,879 6,067 15,946 1984 11,306 6,576 17,882 1985 11,593 7,048 18,641 1986 12,337 7,517 19,854 1987 12,713 8,039 20,752 1988 13,352 8,536 21,888 1989 13,469 9,108 22,577 1990 14 2 001 9 2744 23.745 Totals 527,429 75,245 602,674 ======C. Financial Plan 6.13. The cost of this project is shown in Section IV - Technical Analysis. These costs will be funded as foilo'W's: TABLE VI-3 FINANCIAL PLAN ( in thousands) Foreign Egyptian Source Exchange Founds U.S.A.I.D. Loan 15,000 Government of Egypt 43,852 We have considered whether the A.I.D. loan should be passed on to GOSSD at aD interest rate 'W'hich reflects the cost of capital. Given the fact that, at present, GOSSD does not receive any'revenue for its services (other than ne'W' connections) 'W'e have decided not to ask for relending terms. Admittedly, the real cost to the GOE for its wastewater service will be understated to the extent interest costs are not considered. B~t in the near term, it 'W'ould only mean -26- that the GeE vould need to increase its annual contributions to GOSSD vhich I in turn, \TOuld return the funds to the Treasury. In arriving at our decision, ve have .considered the nature of the project propos~d. The ~jor cost is for cleaning, repair ~~ the existing system and service to a non-severed poorer area of the city. We vould like these actions to be carried out at the least cost possible. Forgoing interest costs to a minimum. There is a possibility that the solid vaste collection program, once instituted, vill generate some revenue (presumably from'> industrial customers). But the coll€~tions in the poorer areas of the city will need to be at no cost to the area residents. It is, therefore, doubtful that the solid vaste program viII be financially self-sufficient. 6.14. The estimated disbursements, by years, are as follovs: TABLE IV-4 ANNUAL DISBURSEMENTS (in thousandsr--- Forei o1l Egyptian ~ ExchBllge Pounds 1977 122 446 1978 2,232 5,797 1979 4,463 12,040 1980 4,612 12,932 1981 3,571 15,000 *-W3,852 === ------ D. Debt Service Capability - GOE 6.15 Egypt's external debt amounted to about $12 billion at the end of 1976. Of this, roughly one-third vas to Eastern European coun tries and primarily for past military equipment imports. The $8 billion balance includes almost $2 billion in de~osit liabilities of the Egyptian Central Bank to the various Arab OPEC countries. 6.16 It is estimated that about $950 million in principal payments on medium and long-term debt vere made in 1976. An amount estimated at $1.4 billion vas oved on short-term bank credit facilities at the end VII. ECONOMIC ANALYSIS A. GENERAL 7.01 The economi~ justification of most development projects rests on a comparison of the quantifiable economic benefits vith costs. However, for sewer improvement projects, the primary benefits include medical and hospitalization cost savings attributable to reduced waterborne infection and ~roved hygiene as a result of improved sewage and waste disposal. Similarly, there are consequential gains in pro ductive man-days. As is typically the case for such projects, statistics do not exist that would permit a quantification of these benefits for ttis project. In addition, since customers are not charged for sewage services in Egypt, act~al paynents can not be used as an indicator of the value of benefits. B. LEAST COST ANALYSIS 7.02 This project will design and develop a solid waste disposal program, repair the existing sewerage system, and provide sewage service to a new area. The methods to be used in carr/ing out these activities are technically the least cost nethod available. Given the inappropriateness of carrying out a standard economic project assessment, as dis cussed above, the justification for individual project activities is based on these least cost assessments. -27- of 1976. In 1977 Egypt received a loan of $1.5 billion from GODE which is being used to substantially reduce its current short term dp.bt problem. 6.17 Debt service requirem~~ts in the future depend heavily 0n the extent to vhich nev short-term debt can be avoided. Over the near term, ve expect the debt service ration (inclading short ter.o debt) to move between 25 to 30 percent of export and service earnings. 6.18 In viev of Egypt's heavy debt burden, A.I.D.'s normal con cessional loan terms are proposed -- 40 years, including a lO-year grace period and 3 percent per year thereafter. With these terms, particularly the 10-year grace period, repayment prospects for this $15 million loan appear reasonable. VIII. ENVIRONMENTAL ANALYSIS A. Project Description 8.01. This project represents the first of a planned series of coherent activities to be under taken by tht~ GOE to provide the greater Alexandria area with a wast~ disposal system which will ade- 4uately serve its population and industry and will not adversel;T affect the environme:nt. As such. it includes some of the top priority activities identified as having a significant and immediate effect on sewE,\rage system operations. The three related project activities are: developing and instituting a solid waste management system to relieve the existing sewerage system of such wastes (this activity also includes removing such solids from the existing system): reconstructing and re habilitating those sections of the existing system now in disrepair; and extending sewerage into one densely populated. area not presently serviced.. The following discussfon of environmental conC2rns will address concurrently the effects of a:l three project activities. B. Land Use 1. Sewer Construction 8.02, Construction activitLes pertaining to the rehabilitation and repair of the existing water-borne sewage c.ollection system and the ex tension of that system in the El Ras El Soda area will not affect a pe:nnanent change of present land usage since the system is principally underground. Those elements of the system aboveground. i.e., pump stations, if being reconstructed, will be treated architecturally to be esthetically compatible ~ri.th the urban neighborhood. 8.03. The prima~7 environmental problems associated with the repair and reconstruction of old sewers and manholes and the construction of new sewers are the continuation of service during the work and the traffic upsets that inevitably result when streets are torn up. The latter problem is parti cularly troublesome in Alexandria because so many of the side streets are narrow and the main streets are heavily congested. Continuity of service can be provided by means of temporary pump installations that either bypass the affected sewer or the use of tank trucks to haul the wastewaters to manholes -29- -30- on sewers that are operative. The impact on traffic cannot be avoided but can be minimized by sound engineering management and planning of the work. Of utmost importance is speed in job execution to minimize the time that an excavation needs to be open. With the construction of new storm sewers, the obvious need is to schedule the work to begin with the onset of the dry season. Th~ prohibition of construction in the city streets in the summer m~nths may have to be lifted temporarily in order to complete the necessary construction. ~04. Relative to the extensio~ of service to the presently unsewered area of Ras EI Soda, problems in obtaining aJequate right-of-way for proper sewer system construction may be encoun tel'ed. As settlement of the area has been generally uncontrolled and unplanned, public right-of-way for roads and utilities have not been fully established, and where established, often encroached upon. To construct a system of proper design, instances may occur where removal of existing buildings is required to obtain adequate right-of-way. Careful design can minimize such instances, but may not be able to eliminate the need to exercise the right 0f eminent docain. Close coordination between system designers and Alexandria officials will be needed early in the planning stage to ensure that any required building removals are made in a manner to minimize social disruption and to avoid project delays. 2. Solid Wastes 8.05. There are numerous potential environ mental hazards inherent in any solid waste manage ment system., For example, noxious storage at the points of gneeration; spillage during loading, transfer and transport; contamination of ground water by improper disposal, etc. Proper planning and operation of the solid waste system can avoid such hazards. 8.06. The solid wastes to be handled by the system instituted under this project will include those generated by residential, commercial and industrial establishments. Wastes will include ~\ -31- toxic and corrosive materials, oils and mazout from industrial operations, refuse from residential and commercial ar~as, manure from the urban dairv sector and materials resulting from sewer cleaning activities. When planning the solid wa~te manage- ment system, careful consider.at~on shall be given to all the 'larious elements and al ternatives re- lative to initial stornge at the collection points, frequency of collection, type of collection vehicles, direct haul to disposal or transfer stat~on requirements, resource recovery potentials and final disposal methods, including incineration, composting and landfill. 8.07. Sc~itary landfills constitute the most appropriate method of disposal for toxic wastes, refuse, and other wastes that are m.ore readily disposed of in other ways. They·:require only a minimum of equipment, they have the potential for reclaiming low land areas, and they do not require separation of wastes prior to disposal. If they are not to be e41VirOnmE:altal hazards, landfills need to be operated properly: truck discharges must be controlled a.nd fills must be cnmpacted and covered routinely. It may be necessary to excavate and stockpile earth for coveri~g the fill. The landfill site must be carefully selected so that water percolating through it will not lead ir..to a drinking? \Vater ca41al or into a fresh ground wat~r aquifer. It would be satisfactory to permit scavenging of the refuse but the scavenging mlst be controlled. The proper operation of a sanitary landfill does not preclude alternate use of the land at some future date. C. Water. Quality 8.08. A number of problems are caused by oil, mazout, toxic liquids and corrosive liquids and chemicals now present. in sewage. The oil and mazout coat all sewer surfaces, may be a fire hazard and decrease or prevent the uptake of oxygen in the sewer and receiving water. Corrosive liquids attack the sewer surfaces and the metal of equipment used in the sewerage system causing corrosion and str~ctural failure. Toxic materials may slow down or prevent the natural biochemical processes which work to stabilize the organic pollutants. Exclusion of these materials from the water-borne se':vage system will lead to more efficient operation of treatment plant~i anc the upgrading of effluents discharged into the sea or other receiving waters. Cleaning -32- of the sewers will result in increased hydraulic capacity. To t!:e extent that capacity is increased and the overflow of raw sewage is de· creased. surface waters now being polluted by sud c"lVerflows will be improved in quality. D. Atmospheric • B.09. The usual problems of dust control associated with construction will be endemic to this project. Because of site locations in a dens~ly populated urban area with large, seasonal touristic populations, special atten tion shall be given to reducing dust pollution by frequent water applications and by keeping trench excavations to the minimum required by sewer repair and installation operations. Noise levels at construction sites will rise due to use of construction machinery bl1t will be tolerable and temporary. B.lO. Incineration will be one of the disposal methods given consideration in planning the solid waste management system. If chosen, attention will be given to the potential hazards of air pollution, by smoke, fly ash and noxious odors, usually associated with incineration plants, in selecting an environmental acceptable plant site. E. Natural Resources B.ll. Resource recovery will be one of the elements studied i.'1 conjunction with planning for the solid waste management system. The economic and technical feasibility of recovering materials, such as glass and metals. from domestic and industrial wastes will be reviewed. Also studied will be the feasibility of composting certain wastes for use as a soil conditioner. The recovery of waste heat will be reviewed in conjunctIon with consideration of incineration as a disposal method. B~12. The manure and solid organic matter re moved from sewers, as well as the slu~ge generated in the sewc:.ge treatment plant, are of potential value as fertilizers and soil conditioners. However, used on cropsthat are eaten raw, they constitute a mo~!t !=fer-ious heal~h hazard. This threat can be mitigated by either controlling the disposal of these solids, limiting their application to non edible crops, forest and the like, or by arranging for their anaerobic digestion and ~corage to encouzage the destruction of the pathogens. -33- F. Cultural 8.13. This project introduces no activities or elements detrimental to the cultural heritage or practices of the Egyptian people. Careful site selection of any new facilities, i.e., landfill, new se':..rers, incinerator, will preclude damage to or destruction of archeological or historical sites, buildings or artifacts. G. Sccio-Economic 8.14. A discussion of socio-economic impacts is presented in Chapter VIII, Social Analysis, hereinafter. H. Health 8. VL Despite the fact that Alexandria enjoys one of th~. better water sypply systems in the Middle East, its environmental health and sanitation prob le~ are among the worst. Within Egypt, Alexandria experiences higher enteric disease rates than any of the other of the large governorates, including Cairo. From Ministry of Health records, as reported in the WHO/World Bank 1977 Sector Study, from 1970- 1974, Alexandria had a typhoid-paratyphoid attack rate more than ten percent higher than Cairo, an infectious hepatitis rate more than twice as great, and a substantially higher dysentery attack rate. 8.16. Some of the higher disease rates in Alexandria may be attributable to the intensive use of the polluted bathing beaches during the summer. S'umner infectious hepatitis cases run about 20 percent higher than wint~r, which may be attributable to bathing and/or greater use of ice cream, fresh vegetables and other foods that readily spread disea3es if contaminated. The high winter disease rates indicate. however, that the bulk of the health problems resulting from poor sanitation in Alexandria are clearly those that· relate to an absence of sewers in some built-up areas, inadequate sewarage in other areas, and misuse of sewers. Misuse includes the charging of refuse, manure, and other solid 'VTastes to the sewers, resulting in clogging and overflow onto the streets and yards of residential areas. -34- 8.17. With diarrhea disease endemic in Alex andria, it is to be expected that the re~dy dis tribu~ion of sewage throughout the environment, particularly to the south of the railroad tracks, assures maintenance of a high rate of infectivity in these areas. This was borne out during the 1970 epidemics when the attack rates were found to be considerably higher in regions of the city with Door sanitation, with attack rates of almost i,oOO per 100,000. When it is recognized that reporting is always low in such situations, it is ~~timated that well over one person per 100 became ill with acute enteric disease in some areas of the city. (The reported attack rate for the whole city was 571 per 100,000.) B.lB. This project, which will improve the overall performance of the water-borne and solid waste collection and disposal systems in Alex andria and will provide se,,;ver service to the"':s E1 Soda area, presently unsewered, therefore, is expected to have a significant positive impact on the general health conditions of the city. Failure to implement the program represented by this project will result in continuing deter ioration of the environment :.and health conditions in the city. 1. ' ConclusIons 8.19. The high priority activities being undertaken within this project have the potential of detrimentally affecting the environment. The Egyptian and US professional who will be planning, designing and implementing the project.Paye a keen awareness of these potential hazards, ,To the extent technically and economically feasible, fina1'project designs and manner of execution will serve to eliminate or minimize the environmentally detrimental effects. 8.20. This project represents the first of a planned series of coherent activities designed to improve the waste collection and disposal systems of Alexandria. As such, it does not in itself purport to address all of the serious sanitation arid environmental problems of the city area. These problems will be more fully addressed within the context of the master plan for the long-range development of the Alexandria wastewater ~stem, said plan now under preparation by the US consultant. IX. SOCIAL ANALYSIS 9.01 Egypt's health and sanitation problems are among the verst in the Middle East. Wi thin Egypt, Alexandria experiences higher enteric disease rates than any of the other of the large governorates? including Cairo. From Ministry of Health records, as reported in the w'EO/iV'orld Bank 1977 Sector Study, from 1970- 1974, Alexandria had a typhoid-paratyphoid attack rate more than 10 percent higher than Cairo, an infectious hepatitis rate more than twice as great, and substantially higher dysentery attack rate. TABLE IX -1 ENTERIC DISEASE RATES IN EGYPT 1970-74 l:lclusive Av&;. :Ho .. of Cases Per 100,000 Population Pop. 1974 Typhoid & Infectious Governorates in 1000s Paratyphoid Henatitis Dysentery Cairo 5,640 99.0 50.1 0.5 Alexandria 2,250 1l0.5 ll7.1 9.2 Source: VrlO/IBRD, Sector Study, 1977 9.02 Some of the higher disease rates in Alexandria may be attributable to the intensive use of the polluted bathing beaches during the summer. Summer infectious hepatitis cases run about 20 percent higher than winter which ~y be attributable to bathing and/or greater use of ice cream, fresh vegetables and other foods that readily spread disease if contaminated. The high winter disease indicate, however, that the bulk of the health problems directly relate to poor sanitation in Alexandria, which results from an absence of sewers in some built-up areas, inadequate operations -cisting sewerage in oth~r areas, and the misuse of ~~ .~. 9.03 This project will improve these conditions by elimin'.ting sewage and wastewater from the streets. -35- -36- 9.04 1~is project ~ll ~lso extend the existing se~er system into the densely populated area of Has El Soda. The estimated population of the area is over 55,000 people. The social/economic classificatiun of these people is urban poor. The area is not yet a slum, but it is slo~ly ~oving in that direction. l~e cro~ded conditions concentrate the se~erage and local populace comes into daily contact with it. The entire population of Has EI Soda will benefit from h~ving their areas se~ered. The benefits will account to both men and ~omen on an equal basis. It is assumed that improvements in the health environment ~ll serve all ~ho live in the area and will certainly not have a negative impact on the ~omen in the area. X. IMPLEMENTATION A. CONTRACTING PROCEDURE 10.01 The overall project management will be handled by a project uni t establishe'i io GOSSD-Alexandria. To assis"t "this unit, GOSSD vill contract .T-l.t.h an expelienced U.S. AlE firm. For the sever and inspection cleaning program, GOSSD vill contract with an AI: ;.can Contractor vho vill supply supervisory personnel and equipmen"t. For the recon:::truction vork, desi/:,'Il, engineering and procurement vill be handled by GOSSD vith the consulting engineering firm. Construction viII be carried out by local Egyptian ~ontractors. The severing of the Ras El Soda area will be handled by GOSSD's existing vorkfo::.'ce wi.th a~sistance, vhere necessary, from local Egyptian contractors. Supervisory personnel viII be supplied by the Consulting E~gineer. 10.02 All equipment, materials a~d services procured from the A.I.D. loan wilJ. be 0 f U. S. SOl.lI'::!t: and origin. Contracting and procurement vill be in accordance W"tih Handbook II - Host Country Contracting. 10.03 As stated above, GOSSD will contract for cons~lting engineering services to be funded from the A.I.D. loan. G05SD ha.s requested that it be allowed to utilize the firm of Camp Dresser & McKee (COM) for these services. COM has prepared the report on which the project is based and is preparing the overall Alexandria Wastewater Master Plan. They are famili~r with the system and they are mobilized. A.I.D. will review the GOSSD request in accordance with ,Provisions of Section 1B21': of AID Handbook 11, Country Contracting. B. SCHEDULE 10.04 A preliminary CDM schedule has been prepared by CDM for this project and is shown in Annex O. Based on that schedule the sub project activities will be completed as follovs: -37- - -38- TABLE X-I COMPLETION SCHEDULE Completion Time Sub-Project In Months 1. Solid Waste Collectio. and Disposal 32 II. Rehabilitation of Existing System 40 III. Sewering of Ras El Soda Area 40 10.05 We have revi ewed the ScheduL; ar!d consider it to be slightly optimistic, but possible. We bel:i,~.".e activities can be completed within the number of months indicated if the Etartiog date is the date that initial Conditions Precedent to Distursement are met and the Consulting Engineer is in place. C. TERMINAL DATES 10.06 Conditions Precedent: The Terminal Date for meeting the first set of Conditions Precedent to Disbursement (See para. 11.04) will be 120 days from 'the date of the signing of the Loan Agreement. The Terminal Date for meeting Conditions Precedent to Disbursement for sub-project goods and services will be 240 days from the date of the signing of the Loan Agreement. 10.07 Letters of Commitment and DisIJursement: The Project Assistance Completion Date will he February 28, 1981, appro ximately 41 months after the signing of the Loa~ ~greement and 37 months af~er the meetjng of initial cond1t~ons precedent. D. C01\TTROL AND MONITORING MEASURES: 10.08 At the commencement of his work, the Consulting Engineer, working with GOSSD, will review and revise the CPM network which will become the basis for p!oject execution. GOSSD and the Consulting Engineer 'ldll be r~quired to submit monthly and quarterly progress reports to A.I.D. Periodic meetings will be held with t!J.e Project Monitoring Unit of GOSSD and the Consulting Engineer to discuss pro .1ect problems. Frequent site ins:pections will be made by Uf3AID/Cairo staff. -39- E. EVALUATION: 10.09 The purpose of the project as described in this paper is to institutionalize an improved solid waste collection and disposal ~em; repair and renovate the existing sewage system; and bring new sewers to the area of Ras El Soda. 10.10 Project eValuation will have two separate lines of analysis. The first anal::"sis vill be a detailed monitoring and final evaluation of the solid waste collection improvement program. This will include the following steps: (a) The Consulting Engineer recommends a col lections system along '~~h the n~cessary managemer.t controls, staffing patterns, legal and ac.ministrati ve requirements, impl.:mentation plan, capital goods re~uirements, efficiency target, evaluation criteria and timing to measure ~he syste~'s efficient operation; (b) GOSSD, AID and the Consulting Engineer modifies and/or accept t.he Plan; (c) GOSSD/ AID Project Managers decide on a reporting system to monitor th~ imple ~entation of the program; (d) upon completion of the installation pro gram, an in-depth anals·sis of the solid waste system's operation. We expect, depending on the Consulting Engineer's recommendation, that this would be done by outside consultants and would occur early in 1980. 10.11 The second evaluation viII be confined to measuring the comple tion of the tasks outlined under the renovation and expansion of the sewage system portion. Completion of the tasks outlined will achieve the purposes outlined above. We do not plan to measure the direct health impact or this project. To do so would require sophisticated baseline data information which is not available in Egypt at the pre- sent time. As GSAID has indicated, this type of impact evaluation may be undertaken in relationship to overall AID intervention in water and sewage programs in Egypt. Ive are waiting for the results of various studies in order to make a decision concerning this impact type of evalua tion. 10.12 The following methodology will be usea to evaluate the specific activities under the sewage renovation/expansion outputs of this pro ject. Upon execution of a contract with a US consulting/engineering firm, a principal task of the fi~ will be to develop a PERT/CPM which schedules all of the tasks described in the pro~ect description and shows their inter-relationships. As part of the monthly and quarterly report submitted by the US Consulting Engineer, a section will discuss progress in meeting the critical events and by their prescribed dates. -40- As separate tasks are completed, the Project Manager, and/or a Project Engineer, will verity that the work has been completed. A final eValuation will consist of an overall inspection o~ and report on, the entire system; solid waste system's operational capacity, the renovation and reconstruction activities accompli shed and the extension of services to Ras El Soda. The report {ill be developed by the Project Committee working with the GOE ,fficials in Alexandria. It will be submitted to the GOE and AID is a final report/evaluation of the project before the end of .981. ;\ XI. ISSUES, RECOMMENDATIONS, CONDITIONS AND COVENANTS A. Issues and Recommendations 11.01. There are two major issues in this paper. The first is that this project, when completed, will collect more wastewater (sewage) due to im provements in the existing system and the extension of the system to an area not now serviced. This sewage will be deposited in Lake Mariout, Abu Kir Bay and other places with lictle treatment. Environmentally, this is unacceptable. The situation will be corrected, but new treatment facilities are in the planning stage and construction can only follow the planning. The question to be faced now is whether to leave the sewage in the streets, alleys, ponds and canals of Alexandria, or to move it to other locations away from the population. We believe the latter choice is the only choice. 11.02. The second major issue is that there is no service charge for sewage service, neither for the rich, the poor or industry. As a result. GOSSD earns no revenue and must depend on GOE budget allocations for its operating and capital funds. The budget is, however, burdened and GOSSD has yet to receive and adequate allocation. The result is the current poor condition of the wastewater system in Egypt. Alexandria is but an example; all other areas are in equally poor condition. Later this calendar year (1977), a consulting firm will start work on a major management and tariff xl study of Egypt's water and wastewater sector. The GOE has stated that it plans to rationalize tariffs. At this time, all indications are that it will substantially increase water rates and include in the water charge, a charge for wastewater. Industrial firms will probably be billed for wastewater separately, depending on the nature of the disposable waste. We, therefore, oelieve it is prudent to await the results of the management and tariff study prior to discu.ssing with the Government the tariff problem. Action taken without adequate knowledge, and considering the whole sector problem, could ae counterproductive, since some • tariffs will need to be progressive, other regress~ve and some nominal, if at all. Y Annex P contains the "Scope of Wopk" "for the study. -41- -42- 11.03. There are also a number of minor issues. These w~ believe are addressed by the proposed conditions and covenants. Therefore, subject to the conditions and covenants lis'ted below, we recommend that A. I. D. 8.uthorize a loan in the amount of $15~0 million for the items listed in the project description. We recommend that this loan be on concessi'onal terms: 40-year repayment period including a ten-year grace period, with interest at two percent during the grace period and three percent during the repayment period. B. Conditions Precedent to Disbursement 11.04. Conditions Precedent to Disbursement (CPs) will be segregated into four categories or sets. The first set will be, those CPs that must be satis fied prior to the employment of the consulting engineering firm. The other three sets are thoGe CPs that must be satisfied prior to the disburse ment of funds for specific goods and services. The segregation into three categories will allow the individual sub-projects~to proceed at their own pace, without being delayed for detailed planning of the other sub-projects. 1. Conditions Precedent to Disbursement to Employment of a Consulting Engineering Firm: Prior to any disbursement, or the issuance of any commitment documents under the Project Agreement· for engineering services, Borrower shall, except as A.I.D. may otherwise agree in writing, furnish in form and substance satisfactory to A.I.D.: (a) An opinion of the Egyptian Minister of Justice, or other legal counsel satisfactory to A.I.D., that the Loan Agreement has been duly authorized by, and executed on behalf of the Arab Republic of Egypt, and that it constitues a valid and legally binding obligation in accordance with its terms. (b) A statement of the names of the persons who will act as the representative of the Borrower, together with a specimen signature of each. (c) An executed contract for consulting engi neering services for the project with a firm acceptable to A.I.D. -43- (d) Evidence that a full time Director and Deputy Director of GOSSD-Alexandria has been appointed. (e) Evidence that a Project Unit, with authority,has been established in GOSSD Alexandria whose full time functions will be the monitoring and implementation of this project. 2. Conditions Precedent to Disbursement for Goods and Services for the Solid Waste Collection and Disposal Program (a) A d'atailed plan of a solid waste collec tion and disposal system for Alexandria including the cost of the program and its effect on the environment. (b) A detailed implementation plan in :CPM/ PERT format. . .. (c) Evidence that all Egyptian currency for the first fiscal year in which funds will be re quil:"ed, in an amount based on the estimate by the consulting engineer, and as approved by GOSSD, has been budgeted by the GOE Rnd is available for t3xpenditure by GOSSD. 3. Conditions Precedent to DisbursEment for Goods and Services for the Reconstruction and RehabilitaticTI of the Existing Waste water System (a.) A detailed plan for the execution of the project including a schedule, i.tems to be imported and the. proposed contracting procedure .. (b) Evidence that all Egyptian currency required for thE! first fiscal vear in which funds will be required, in an amount based on the estimate by the consulting engineer, and as approved b)T GOSSD, has been budgeted by the GOE and is available for expenditure by GOSSD. 4. Conditions Precedent to Disbursement for Goods and Services for tIle Extension or Service to the Ras El Soda Area - (a) A detailed plan for the execution of the project including a schedule, items to be imported and the i?roposed contracting procedure. -44- (b) A listing of the proposed beneficiaries of new sewage service includirtg the costs to be borne by the beneficiaries. (c) Evidence that all Egyptian currency required for the first fiscal yec~ in which funds will be required, in an amoullt based on the estimate by the consulting engineer, and as approved by GOSSD, has been budgeted by the GOE and is available for expenditure by GOSSD. C. Covenan ts 11.05. The Loan Agreement will contain all A.I.D. standard covenants. In addition, we will require the following covenants. (a) Training Within one year from the date of this Agreement prepare a comprehensive staff training program, to be implemented in the succeeding year. (b) Fixed Assets Within one year from the date of this Agreement, prepare an inventory of all GOSSD's plant and equipment located in Alexandria showing date of acquisition, acquisition cost, and current condition. (c) Sewer Use Law Within one year from tr.e date. of this Agreement, develop a plan for the enforcement of the sewer use law including a system of pe4~its, inspections, tests and legal procedures. (d) Continuing Consultation - To cooperate fully with A.I.D. to assure that the purpose of the loan will be at=complished. To this end, the GOE, GOSSD and A. I. D. from time to time at the request of any party, exchange views with their representatives with respect to progress of the project, the performance of the GOE and GOSSD under the agreement, the recommendations of the consultant or the management and Tariff study, the performance of the cOnEultants, contractors and suppliers engaged on the project, and other matters relating to the Project. • 'T .. '- ..... -.,~ .. t r'""'Y"i" ~ll·Tf"\~"'r .,.. _.t _.:> __ ._ _. .-..• .J ...... , ...... _ ANNEX A (' ("'If'" :':"7':1 ' .",.. i )'~T .~'C C:~C,:.::(: J ..... _ .... 4\._ ..... -. y~. Don~lc s. 3rown .... ;i..d Jil'ector .~ .S.A. ~ba3sy ': :~iro 0 Cairo, ~ sept. 1977. Dea.!' ~.1r. Brown, In November of 1976 when the G~vernment of the Ar'ao Rp~"h"!..ic of E:~t reQ.uested AID to fi!lance a strt.::-dy for tf'.e creation ot." a "r~Iaster Plan for .Alexandr:i.a Wastewater" .. we were aware that serious problems existed pertaining to waste\'rater collec"'cio.n, treatment and d.is:posal in that Gavel! norateo The consultant making that study, Camp, Dresser and Mckee (COM) is only hclf-way through its Master Plan aeport, but ~hey have issued an InterLn Report \mich identifies a ':lw!lber of "Top priority projects".ll~e project which DC!.! urODoses is !!lainly a; Insti -l;ution.:;.l rei'o!'!:!l.s, b) Rehabili tatior: of ccllapserl 2.nd ir:o:perable '.I'he GeE considers that this combined project has ~ extremely hig!1 priority. ~He therefore request I..nD'C AID extend a loan of U.S. ~15 million for this project. The Egyptian Pound (estimated to be L.E. 40.5 million) required to meet the local costs of the project will be fund.ed ~y the Gov~rnr.:J.ent of the Arab Republic of Egj!?t .. Sincerely YOL:.rS, f~. \9 . .("~ GAl':;~ EL-1.~AZER .!) en 11 t:-:r C b. .:..1. i::' :lD. n For Inveibtlu.en: Autb.ori t;y I~ Char:::;e o~· li:conomic Coop~rc.tt:Lr Annex B will be distributed at the meeting. ANNEX C CERTIFICATION PURSUANT TO SECTION 611 (e) OF THE FOP.EIGN ASSISTAllCE ACT OF 1961, AS AMENDED I, Donald S. Bro~, the Principal Officer for the Agency for International Development in Egypt, having taken into account, among other things, the maintenance and utilization of projects in E~JPt previously financed or assisted by the United States and technical assistance and training ~lanned under this Project, do hereby certify that in my judgment Egypt has both the financial capability and human resources capability effectiyely to maintain and utilize the capital assistance to be provided for a solid vaste collection and disposal system, the rehabilitation of the wastevater system of Alexandria and the placing of severs in S. Bro~ Dire;Z~h Z Date I ~\ Annex 0 will be distributed at the meeting. ANNEX E (See following facing pages) ,!,.: .•. '.1 "f ... , 't --~------. 'M £ 0 I TERRAN - .. ' .. ' . : ~'.~ .. ~~~~~~ __.. __ ~a.~.. ~~~~~~~~~~S5~~~~~~.~----~--~-~~~~'~'.'"~"~~~~~".·.Z~·~··xz;=erii~=:--· ~ f =-- - -= . 57?;;;a;;CT . , ...... ~.' " . ,~':;, . . ' ...". .... :. ~- ~ . .'. . .... ... ._J .. ;~~!..E..~~.~E!'_ .•. Mc~E! INTERNATIONAL INC. I of '3 • ? • N £ A N SE A 1 " Bay Outfall A L E ·X A N C - Numerous a~erfiows - OOUSHA \ AI RPORT-l. . ; ',: , ~ .. : .. ;' ...... ; ~ ~ .,,;~.. '. :.. • -< , " .. - ~.- -. '. j ..•• : --~ ."...... ," ~~~ ..... J ''''J._ ...... :" -.• -" -.~ .... -.. ~:;.: ~ .. :-:' ";.": .' '-" ~ .", :.' " I·~ • • ~. :. ": " : " ", .. 1 ...... '. ! ".~ ".' .... , ... ,.. -:;. "-',' '.. ,'.: .' ".. : .~:.: .:i~·. ...'" ~. -" -,' '.. .. ., e" ': o ', ...... ~ ~. ,'. '. : ," ~. :", ...... : ...... ,' -of . 1...... ' ...... -~ ' .,.. •• ~. oft .. I~1 • ._, ------__ ~2:~______.. :.: ..:-::--= ... ~.~:.:~.. : .. ~.------ANNi:ic- p; - 1 :A Sccls I· rcoraoa : . LAKE f 0 KU t Indicctes Wastewcter discharg as.. ANNEX F (See following facing pages) "" -----_ ... -~--=- .. ... . '. :...:-. ;~~.;3..;- .. -:~.; .'------;~-.;.. ,,-. .------_... _.,.--...- 'II - ...... ;, ~ , .... ,:-:...... ;. ~) .. f'•• "- f " , . " ....;. EASTERN " " , .~ MEDITERR " ..~ t ...... - . ," ',,',: .:. ,t. , " ~ HARBOUR ," . ,.' \ ..... : :;"", - .' \, . ",' ,'\ .", " ~ ;.' '," . ." .. ".~ , " i ' " .. . - .' ~ , \' " '-: :", ' ...... " .. ' , '. __ ....~:: k'·.;';.-~ . .. .~; .~ . .~- ...... ' .... TRAL AlR?ORT .... ~. . , ,. .. \ ." -', . ; '" '. ' ',' .; ..... KALAA r'UMP STATION .~_.. 1 J i ,-- ____' _'-_-;.:~,:" ....;.,...~:-r~ ot- __--=-:=:-~--~""~ .... .-:: .. , 7) .~ ., .... TERRANEAN SEA .'. '. " ~., ... . '-: ,'t . .- '~ •.. '. - .- ~ . . : .. - "':".' .~-.~ '.' .. ~. • .'~ I :- .--r , . .' , , if, I ,; • J/f'!/ uE/l. " ./ '. ~'~ ;' R ••'Q&..' ' ...... : .. ' .. ",' ...... ,~. .:'.'... : ..... "-.:, , . .~.~ - .. . .~ ... -': '.~ ...... ;.; . " '.., f "".,'- ":' . ':>. '. :" '.: '~'I : 40· .~~' . ·'1 ',:' , ...... ;::- .i L.EGENO .. .. . ~ .. :- " BCUNOARIES OF MAIN DRAINAGE ZONES .~ . ". eOU/,\OARIES OF DRAINAGE DISTRICTS ..•... ; -~--- ,'- ," BOUNDARIES CF S!.JB- DRAINAGE' AREAS • SEWAGE PUMP ST~TlONS o t.cAJOR IRRIGATION PUMP STATIONS SUB·- DRAINAGE AREA DESIGNATION (SEE TABLE II-I) -:~, ----~'I'---~------,.. -,--- ... ~. ~~:;'... .,.----- : .. ~, : " '.r:.~.~- .-._ .... ~ ... -.~- ANNEX 1'" .' ~;.. . " . .," .-'" . ,. '. ,,' .. ,..- ' . , ., . '. ' . . . ~ .. ''''''~ -~ .., ~ ',. ;::!)t· ' .. ~ .,..;. .; ., ... :,~ ---:~ ..: , r-·C. ; ... '. ~~ t~.,: -- "-'J"-'~ '-' "• \;,JII .. ../'~' ., r' ~/" -",- l ' .. ~ " " .. ~ . .~ . ...... ,,~: .. ' ..~. ,,' , :'(", " ,,::, :~j '-.. :, :.' "ABU .. ' KfR .. ,.: .';;-,' :":~~"",' SCALE a '/~"...... :,:.. ' '.'- , " .' ", .i~ ,... .' . '. ~ ; .... ·;1' ...... '. ',-", " ,';' .t, ...... ;.,. ". ;: ..... :... ' 'f': : ..: . ' , ..... 't, ALEXANDRIA WASTEWATER FACILI TIE.S 'DEVELOPMENT PROGR,~.MS !' GENERAL PLAN CAMP DRESSER a MCKEE INTERNATIONAL IN C CHAS T. MAIN INTERNATIONAL INC .l3LE II-I) ARAB TECHNICAL AND ECONOMICAL CONSULTING OFFICE ALEXANDRIA APRIL 1977 ---~.----.------.. -.-. -.. --_ .. - ALElWIDRIA WASTEIIATER SELECTED TOP PRIORITY PROJECTS - ESCAI.ATED PRICES (THOUSANDS L.E. MID $) PAGE 1 OF 3 CATEGORY I - INSTITUTIONAL AIID OPERATIONAL CWUIGES- 1977 1978 1979 1980 I 1981 1917-1981 LOCAL FEC TOTAL LOCAL FEC TOTAL LOCAL FFe TOTAL LOCf.L FEC TOTAL LOCAL FEe TOTAL LOCAL FEe TOTAL 1-1 SEIlER LAW 1MPLEMEIlTATION , J'lLIC RElATIONS i."UCATION WORK - - - 60 - 60 72 - 72 ------132 - 132 1-2 COLLECTION MID DI~POSAL OF WASTES -- - 12 12 2~ 351 293 6~~ 399 30~ 703 - - - 762 609 1371 1-3 SEIlER CLEARIIIG PRUGRAM -- - 1 3 ~ 36 86 122 ~1 89 130 - - - 78 178 256 1-~ VEHICLE REPLACDlE/IT -. 8 8 - 133 133 - 133 133 - 1~~ 1~~ - 152 152 - 570 570 TOTAL CATEGORY 1 (LE) - 8 8 73 1~8 221 ~59 512 971 ~~o 537 977 - 152 152 972 1357 2329 US DOLLAR COSTS (LE X 1.~31 $11 $212 $732 $768 $217 *\9~0 ALEXANDRIA WASTlWATER SELECTED TOP PHIOIU1',{ PROJ EC'I'S CA'l'mOHY 11 PAGE 2 OF :, ESCAI.ATED COSTS (1'IfOUSAlIDS Lo Eo AIID $) 1917 190 /0 1979 1900 1961 ] 917-1961 :IIERS LOCAL FEe TOTAL LOCAL FEe '1'O'J'AI. LOCAL FEC 1'O'J'AL LOCAl, FEC TO'i'AI. LOCAL FE:: TOTAL Iff-AL FEC TCfI'AIo 11-1 CONTRAI.."T SEWER CLEANING AND INSPECTIOl! 5(; 23 79 1022 364 n06 u l,6 3G3 1509 1309 39;; 17Ll - - 3593 1l~2 4735 11-2 COLLEC'!'OR GENEHAL RELIEF SlVEH 12 4 16 217 56 275 ~R7 115 602 ------716 177 693 11-~ IlESTEHl! IfARliOR SYSTEM 1 1 2 19 5 2~ 42 9 51 ------62 15 77 RECO/lS'l'RUCTION OF COLLAPSED SEWERS 100 30 130 1350 369 1719 3227 (,93 392Cl 4234 1051 5265 54~2 127:; 6 0 ;27 14352 3415 11717 11-5 MAtniOLE; COVEH REPLIICEl·IEII'rs 2 1 3 ~1 II 52 92 22 llh ------l3S 3~ 169 3UIl'l'OTAL-SE'lllS 171 59 230 2649 607 2456 ~991, 1202 1j19r. 5603 l"~ 3 70"5 5452 1275 6727 Itltlbtl . 47tl3 23651 US DOllAR COSTS $64 ~11s4 $17]8 $2063 tI633 $68,9 11-6 SHOUIlA S'l'ORM DRAIN -- - 130 H6 246 1921 162 2103 2296 197 2493 26~3 210 2653 6990 705 7695 11-7 DRAINAGE RELIEF ~IO/!AMf.!ED ALI SQUARE 7 7 11, 373 ~4 417 41,9 1,0 497 ------629 99 926 11-0 STOR~nIATER DIVERSION W~Tl:JllI II ~JmOR 1 1 2 25 2 27 32 3 35 ------56 6 6~ SUBTOTAL-DRAIllAGE 6 0 16 521.l 162 690 2"02 233 2[35 2296 197 2li93 2643 210 2ti53 7B77 . til 0 tlbl!7 US DOLLAR COS1'S $11 $232 $333 $262 $300 $1156 11-9 SPOHTIlIG f'ORCE I·IAIN 1 1 2 14 13 27 32 25 57 ~7 39 66 I ------11-10 WFs'r~:RN If ARBOR FORCE MAIN 1 - 1 6 5 II 7 5 ]2 ------14 10 24 SUB'l'O'l'AL - FOhCE MAIllS 2 1 3 20 16 38 39 30 (9 ------61 49 llO us DOLLAR cos'rs $2 $26 t43 - - $70 11-13 SPORTING PUI·U' :3'rATION 9 6 IS 166 98 264 372 ]96 ~6j ------547 300 6~7 11-14 WESTEHN /!ARtDH l'UHP S1'ATlO !, 2 6 67 30 97 1~1 5°( 2()i1 ------222 69 311 11-15 REHA9ILTThTE EAST :OONE PUI·lP ti'fA1' IONS 1 2 3 26 2~ 52 62 50 l!~ ------91 76 ~ SUBTOTAL PUMP S~'A'rIONS 14 10 24 ~bl 152 413 ~U5 303 S:ir ------!luo 465 1325 US DOLLAR com's ~14 $217 ~433 - - t664 TOTAL CATEGORY -11 (LE) 195 78 273 3458 1139 4597 8020 1768 97all 7899 1640 9;3S 6095 1465 9560 27666 6107 33773 US DOLI.AR C(JS1'S (I.E X 1. 4 "3 $11] $]628 t,2526 -1231'5 $2123 i8n3 ------._- ---····------·------·------·'-·-·-1-·------·· ------.------ ALEXAIIDRU WAStEWATER SELECTED TOP PRIORITY PROJECTS - ESCALATED PRICES (THOU3r1!PS L.E. AlID $) PAGl 3 3 CAT&;QRIES 111, T'l'J'AlS, COST CLASSIFICATIONS 0' 1977 )978 197 9 1081) 1981 1977-1 <181 LOCAL FEC TOTAL WCAL FE~ TO':'AL LOrAL FEG Tt1TAL LOCAL fEr TOTAL WCAl n:c T(YJ'Al LOCAL f'E(:_~ RAS EL sorA SE\lEHS - - - 168 45 211 lR72 1,4) 2315 3992 85: 1,01,4 4~9( c,1)/1 ~504 10£;/\ 2;,411 1:'87£ 111-2 RAS EL sorA fVHF STATION - - - 6 3 1\ 04 2J 107 201 ,2 ~S .~ ? J;' ';5 ~A'i ~)25 )1.-, G58 111-3 RAS EL SODA fORCE HAINS - - - 1 1 2 lj 2 TOTAL CATEGORY 111 (LE) - - - 177 1'9 ?26 1979 ~-(5 US DOu.AR COSTS (LE A 1.43) - - - $70 $G7 9 (FOREIGN E1.CIWlGE COST 1 TOTJ\L CATS. I,ll, Ill. 195 86 281 3707 1336 501, 1 104',11 ?'i52 IVUO 12~()O 30~G 1)6')1> 12955 ~CH; 1 SS71 l'.iP.~~ 9HH6 491~1 US DOLLJUl ';O~1'S (LE X 1. II 3 ) $124 $191:) $]9 ,5 $1,1,27 ~Tjlltj tl~ 116 Rehsbll itation & N~v Construction , of \last evater and drainage Conduit H & Ar~t)rtenanceB SI~ I labor (Including Services) I 169 (,7 256 2100 50J 2600 I 1 T~7 1() I1"98 I 5 -~1 lU55 1()1, 1159 6121, 9~2 7046 1 .~r~ 1 Vehicle s & Portable Equipru~nt 6 19 25 122 550 612 1 'h 702 01,8 269 7[\" ()r,4 15;: 152 51, 3 ~2[J8 2151 Hiscel1 aneoos HateriRls - - - 6,4 1(;5 799 (48 163 All 1(,'10 ,O~ J ~ol, ](,50 ~Gc, j 910 I~ 5 '3~J fl9:' 5~;'>~ Conduit s , Appurtenances Ha teria1s - - - 3Jl 13 121, 1,1W 1076 5~o£ ?r.,7fl. (1~' 1~190 ,':',)0 (or) ?Pr,a o~\f ;) , )01 111\70 In stallati'Jn 5~< - - - < -' 1011 6)3 3()(~5 650 1,615 biO 1 )O~ 'Ie"!,) Anoo 1 'J(}O 9)00 190tf) l';63 22621 PrlntlnI! , Advertisin~ ------....!1 -- ~ 22 --- 22 ---"IT -1L SUB-~'OTAL 195 86 281 370; 1336 5043 101,1,8 2752 13200 l.? ::;(,0 109(, 15(56 1~9:J 261(, 15571 39%51'>BllG 49751 $124 $1910 $19 35 $I,.n $37 1,0 $1.136 (~ont inrenc,Y (,% $AC4 $15,000. Annex G r!-l CO~TRAC~ S~WER C~EAN!~G & !~SPECTION Est;rJ1a~ed I~OS ': (:sca'atec: - LOCd~ L.E. 3,593,000 FEC L.E. 1,142,000 (Sl,631.JtlQ) Total L.E. 4,735,COO Estimated Clantities - 400CO m 1000 mm 90000 m 600 - 900 rrm 215000 m 300 - 500 mm Total 345,000 m Scope of Work: Clean, TV inspec~, furnish plans and ~rofiles showing location, size, s1ope, elevations and sections needing r~pair. 11-2 COLLECTOR GENERAL RE~rEF SEWER Es~imated Cost (Esca7ated) - Local L.E. 716,000 FEC L.E. 177 ,000 ($252,850) Total L.E. 893,000 Estimated Quantities 1130 m . 1750 mm 100 m .. 1500 rrm 120 m - 1400 rrm 400 m - 1100 mm Total 1750 m • Scope of Work - Construct relief sewer from Salah El Din to Silsila. Annex G "... ., '""\ " ,,, .... -.J t - ~ , 8J~ ~~ A~~dar Re'ie f Sewer - Local L.E. 52.300 FEe L.E. 12.700 (S18.160) Port Irterceptors Local L.E. 20.150 FEC L.E. 48,850 '%9,800) Tot2l L.E.315,OOO (S87,~50) Estimated Quantities - Bab E1 Akhdar Relief Sewer 124 m - 1000 mm Port Interceptors (South) 780 m 450 rrm 500 m - 300 mm 550 m 250 mm (North) 400 m - 300 rT1'T1 ---- Tota 1 2355 m Scope of Work - Construct relief sewer & interceptors !!-8 STOR~~ATER OTVERSION E~timQted Cost - Local L.E. 58.000 FEC L.E. 6.000 ($8.570) Estimated Quantities - 3 structures 10 ml/d 48 ml/d 70 ml/d Scope of Work - Construct 3 diversion structures --Annex l Local L.E. 14.000 FEe L.~. 10.eoo ($1 4 ,300) Total 24.000 Estimated ~uantit;es - 325 m - 300 mm ScoDe of Work - Construct Force Main I!-14 WESTERN HARSOR ~U~p STAT!ON Estimated Costs - Local L.E. 222,000 FEC L.E. 89,000 (S1L7.1S0) Total L.E. 31!,OOO Estimated Quantities - 1 PS, no standby, 8 Ml/day Scope of Work - Construct pump station II - 4 RECONSTRUCTION COLLAPSED SEWERS Estimated Cost Local L.E. 14,036,000 F~C L.E. 3,092,000 ($4,417,000) Total L.E. 17.128.000 Estimated Quantities - 50.000 meters Scope of Work - Rebuild sewers Annex G Est;~a~ed Cos~s - Local L.E. 135,000 FEC L.~. 34,000 ($48,570) Total L.E. 169,000 Estimated Quantities - 325 manhole covers Scope of Work - Replace manhole cover/fra~es. 11-6 S~OUHA STORM ~RAIN Estimated Cost Loca 1 L. E. 6,990, 000 FEC L.E. 705,000 (SI,007.000) Total L.E.7,695,OOO Estimated Quantities - size (m) length (m ) Covered Box Conduit 3.5 X 1.9 500 Conduit Under Mahmoudia Canal 2 - 2 X 1. 75 150 Covered Box Conduit 3.5 X 1.9 1180 II " " 3.2X1.7 625 " " " 3.1 X 1.6 800 Concrete Pipe 1.25 1300 Total 4555 Scope of Work - Construct box conduit , ... Annex G Loca 1 L. E. 829.000 FEe ~.E. 99.JOO (Slol1,400) Total L. E. 928.000 Est1rT'ated Quantities - - siz a (rT',\ ~e"9th(rn) 1. 50 400 1.10 120 0.80 15C 0.50 630 1300 Scope of Work - Construct relief drains II-9 SPORT: ~IG FORC:: ,..,A! ~I EstimatE-d Cos t - Local L.E. 47,000 FEC L.E. 39,000 (S55,700) Tota 1 L. E. 86,000 Estimated Quantities - 480 me~ers of 600 mm pipeline Scope of Work - Construct force main 11-13 SPORTING PUMP STATION Estimated Cost Loca 1 L. E. 547 , 000 FEC L.E. 300.000 (5428.600) Total L.E. 847,000 Estimated Quantities - 1 pump station, 38 ~l/day Scope of Work - Construct 1 pump station with standby Annex r. Es: Ma:eC CoS~ Loca1 L.E.91,000 FEe L.E. 76,000 (SI08,570) To ta 1 L. E. 167,000 Est'~ated Quantities - Rehabili~ation of PS Nos. 1, 2, 5, 6, 7, S, JO, 11 and Montazah Pump Station. Scope of Work - Rehabilitation of pump stations -10- Annex G Loca1 L.E. 10,628,000 F€C L.~. 2,248,000 (53.211.;50) Tota' L.E. 12,876.000 descr;ot:io" size (1TJT1) 1enoth. (m) House Connections 150 35,C(l0 Lateral Sewers 200-500 61,DOO Mains 600-900 2.000 900 2,CDo Trunks ----- Tota 1 100,000 Manholes 2.200 Scope of ~ork - Construct street sewers II!-2 RAS EL SODA PUMP STATION Estimated Cost - Local L.E.525,OOO FEC L.E. 133,000 (5190,000' Total L.E. 658,000 Estimated Quantities - P.emodel 1 pump station Scope of Work - Remodel and increase capacity of P.S. to 20 Ml/day. II !-3 RAS EL SODA FOqr:E I-lAU~S Est~mated Co~t - Local L.E. 74,000 FEC L.E. 41,000 (S58,570) Total L.E. ~15,1J00 Estimated Quantities - Temporary '; :nm X 1000 m Permanent 350 mm X 1200 m Scope of Work - Cons~ruct temporary F~ to local drain ;lnd DerlT1;l"~"et F'A 1'(1 0i1C; n ':ori:t 'TIJF'J. ;pWP'" Annex G ...'" -.I Lcca~ L..E. !O.628.eOC FEr.: LE. 2.2.!8,OOO (S3,211,45(: Tot.al L..E. !2,876,OOO cescriDtion size ( rnn ) lengti'. J.IYIJ House Connections 150 35,000 Lateral Sewers 200-,00 61,00C Mains 600-900 2,00C Trunks 900 2,000 Total 100,000 Manholes 2,200 Scope of Work - Construct street sewers ------_._- . II~-2 QAS EL SODA P~MP STATION Estimated Cost - local L.E. 525,000 FEC L.E. 133,000 (5190,000) Total L.E. 658,000 Estimated Quantities - Remodel 1 pump station Scope of Work - Remodel and increase capacity of P.S. to 20 Ml/day. ! I ~-3 RAS EL SO!)A FORCE to'AINS Estimated Cost - Local ,...... 74,000 FEe L.E. 41,000 (S58,570) Total L.E. 115,000 Estimated Quantities - Temporary 2. 11m X 1000 m Permanent 350 mm X 1200 m ANNEX H SECTOR REVIEW Page 1 WATER AND ~ASTEWATER 1. Existing Organizations and Systems The responsibility for the water and wastewater utilities in Egypt is divided among a number of org~ni- zations. The General Organization Greater Cairo Water Supply (GOGCWS), General Organization for Sewerage and Sanitary Drainage (COSSD), General Organization for Water Supply (GOWS) are all nominally divisions of the MOHR, but each organization has it own board of directors and they operate to a largp degree as autonomOU5 organi~ zations. The Alexandria \ Governorates, with support from th~ GOSSD. Elsewhere in Egypt, water supply in the larger centers may come under either GOWS or the individual governorates. In the smaller villages and rural areas, th~ Department of Rural Affairs (DRA) , an agency of MOHR, plays a significant role. Where sewerage systems exist, they most commonly are the respons~~ility of the ANNEX H 2 Page ·2 governorates, thnugh GOSSD may provide some support in the form of design assistance. Construction is normally per- formed by private or public contractors. Table 1 ORGANIZATIONS RESPONSIBLE FOR WATER AND SEWERAGE IN EGYPT WATER WASTEWATER Operations & Operat.ions & Location Desiqnr Maintenance Design Maintenance Cairo GOGCWS GOGCWS GOSSD GOSSD Helwan GOGCWS GOGCWS GOSSD GOSSD Alexandria AWGA AWGA GOSSD GOSSD Canal Region Cities SCA SCA GOSSD Governorates Other Cities and GOWS or GOWS, ORA or GOSSD Governorates Rural Areas ORA Governorates AWGA - Alexandria Water General Authority ORA - Department of Rural Affairs GOGCh'S - General Organizatio.-. Greater Cairo Water Supply GOSSD - General Organization for Swerage and Sanitary Drainage Governorate- Governmen.t of the area (approximately equivalent to a province in other countries) GOWS - General Organization f or Water Supply SCA - Suez Canal Authority ANNEX H 3 Page 3 Except as otherwise noted, the organizations deal ing with water and wastewater are funded by the Egyptian Government and their revenues are considered as part of the general revenues of the Government. Thus, the revenues received are not directly tied to the costs of operating the utilities. Each organization submits an annual fund ing request to the Ministry of Finance, showing its anti cipated operating needs (usually based on historical cost experience) and the capital funds requested (generally linked to a list of specific projects). In most cases, the organizations have done their own project planning. Egyptian or foreign consulting engineers are sometimes used for part of or all of the design. Construction of civil works for major facilities is usually performed by Egyptian contracting firms, either public or private, not by the organizations' own forces. Turnkey contracts, for the design, furnishing and installation of equipment, are common. In general, Egyptian Government public sector employment policies are followed. However, certain major changes in these public sector employment policies are currently under consideration. General Organization Greater Cairo Water Supply (GOGCWS): The GOGCWS is responsible for the operation and maintenance of the potable water and non-potable ANNEX H Page 4 water (f-r industry and garden irrigation) systems in Greater Cairo, including Helwan. This responsibility also extends to the planning of new projects, overseeing design and the supervision of construction. The present organization chart is shown in Annex I. The staff of GOGCWS currently totals about 8,400. There are numerous laws and regulations affecting GOGCWS, some dating back to 1865 when the first water supply system was constructed. About two years ago, the GOGCWS prepared a study of its operations, to support a request for changes in tariffs. (No action has been taken yet on this request.) This study is of interest insofar as it included samples of customer usage, leakage estimates, cost of plant, and data on water consumption. Most users who have piped service within their buildings have meters on their lines. In apartment build ings, however, there is only one meter for the entire building rather than one meter per apartment. The GOGCWS would like to change this but feels it would be too expensive to convert existing buildings. it is, however, considering requesting legislation to require a meter for each apartment in new buildings. Public fountains (approx imately 500) are also metered and the government pays for the water consumed. There are approximately 210,000 ANNEX H Page 5 metered subscribe7s, about 7,000 of which are for govern ment agencies. Meters are read every two months. Alexandria Water General Authority (AWGA): The AWGA is responsible for the planning, construction, super vision, operation and maintenance of the potable and non potable (garden water) systems for the city of Alexandria, pLus a high-pressure fire-fighting system for the Western Harbor area. The Authority also provides potable water to a large rural district south of the city in Behera Goirernorate. (The Mariout Water Treatment plant is located in, and serves this rural area.) Furthermore, AWGA supplies potable water, via pipeline, to towns along the coast as far as Mersa Matrouh, 288 km west of Alexandria. The staff of AWGA at present includes about 3,200 employees. Suez Canal Authority (SCA): The primary responsibility of the Suez Canal Authority is the operation, maintenance and improvement of the Suez Canal but it has a number of subsidiary functions. Among these is responsibility for the planning, design, operation and maintenance of the potable water system within the urban areas of Suez, Ismailia, and Port Said, and the non-potable, garden water system in Ismailia. There is no non-potable water system in Suez or Port Said at the present time. ANNEX H Page6 General Organization for Water SuDplv (GOWS): The GOWS is responsible for project planning, design and super vision of construction of potable water systems for all areas outside of the six cities, and in some cases operates and maintains these systems. The systemns of GOWS fall into three classes: a) "Majcr Projects" -- These are large, central water installations, providing treated water from aurface sources and serving large rural areas. A typical project might serve about 1,000,000 people and contain 1,500 km of pipe. All but three of these "major projects" are in the Delta. In Upper Egypt, groundwater is normally used and the water supply systems tend to be smaller and serve more limited areus. The GOWS designs and operates these systems, also. b) Cities and Major Towns Outside of the Six Cities -- About seventy percent of the cities, other than the six cities, have their own water supply systems. This includes even those within areas served by GOWS "major projects". In some cases, these cities buy treated water from a GOWS "major project" for delivery through their own systems, but most of these cities have opted to have their own treatment works. Normally municipalities under the Governorates operate such systems; only about ten percent of these city systems are operated by GOWS. ANNEX H Page 7 The GOWS usually designs all of these systems and any expansions. Typically, GOWS may suggest an expansion on the basis of its own forecast of future water demand and the Governorate requests planning and design service. In the past, this has meant that nearly all planning and design of significant water facilities outside of the six cities has been done by GOWS. c) Small Rural Systems -- Water supplies in the smallest settlements (most often a well, an elevated tank, and a few public fountains) are designed and operated locally, usually by the local branch cf the Department of Rural Affairs, a division of MOHR with local offices in the Governorates. The GOWS may provide technical advice and design assistance on these projects, but only on request. The demarcation of the boundary between areas served by GOWS and those served by the systems in the "six cities" is not well defined. :n theory at least, a conflict of jurisdictions could occur if one of the "six cities" were to expand into an area served by a GOWS water system, but no case is known in which this %as happened. Billing and collecting are performed by the local utility. Thus GOWS is involved only in those systems which it operates. By policy, the water supplied through public fountains is free. Only customers who have water ANNEX H Page 8 8 piped into their buildings pay for it. Therefore, only about ten percent of the water produced by the "major projects" is sold. Since most of the water is distributed free, no attempt is xrde to nave these systems pay for themselves. General Organization for Sewerage and Sanitary Drainage (GOSSD): The GOSSD is responsible for planning, designing and supervising the construction of waterborne wastewater systems throughout all of Egypt and for the operation and maintenance of the wastewater systems in Alexandria, Cairo and Helwan. An organization chart is shown in Annex I . GOSSD, at present, employs about 12,100 people. Wastewater discharges are governed by Law No. 92 of 1966, which is essentially a sewer use ordinance. All connections to systems operated by the GOSSD must be approved by the GOSSD. Industrial wastes discharged to the systems must meet certain requirements. Customers are not charged for use of wastewater systems and the GOSSD does no billing or collecting, except for connection charges. All financing of the capital and operating costs of the wastewater systems is by the central Government. Budgets for those systems operated by muni cipalities under the Governorates (i.e., all systems other than Greater Cairo and Alexandria) are included within ANNEX H Page 9 9 the budgets fcr the Governorates. There are waterborne wastewater systems (with treatment) in fourteen cities other than Greater Cairo, Alexandria and the three Canal Cities, and discussions of and/or planning for systems in about a dozen more cities. An additicnal twelve wastewater systems exist in the m.jor Delta towns; however, these have no treatment facilities. Project planning and design are done by GOSSD in Cairo. The GOSSD has its own design staff, and outside consulting engineers are used relatively little. (Typically, contractors awarded jobs provide the final structural designs). 2. Existing Water and Wastewater Systems Some portions of the water distribution systems in all six cities are quite old, the original construction having been started more than a century ago. It is reported that in Cairo there is a sharp increase in the number of mains that burst when the pressure approaches the 60 m design head. In Suez, Ismailia, and Port 'aid, the systems are considered to operate at 30 m head and fears have been expressed about the ability of these dis tribution systems to withstand higher operating pressures. These cities suffer extensive damage during the war years from 1967 to 1973 and the full extent of damage to the buried distribution systems has not been determined. ANNEX H Page 10 10 Extensions of the systems over the years generally proceeded wherever needs were perceived and funds made available, without an overall plan. Leak detection programs have not been performed in the past. Despite these problems, service is being provided to the six cities and water at the customers' tap is reported to con sistently meet drinking water standards, although the pressure is cften unsatisfactorily low. Although the wastewater systems are not as old as the water systems, their general condition must be charac terized as unsatisfactory. The capacity of the collection systems is generally inadequate, since expansions to these systems have not kept pace with the expansion of the water systems. Furthermore, because of age, poor quality of jointing materials, the high water table in most cities and, in the Canal Zone, war damage, it is suspected that large amounts of infiltration and exfiltration occur. Much of the pumping equipment is inoperable or obsolete and sewage occasionally overflows into the streets. Except for the Zenein Secondary Treatment Facility in Cairo, virtually none of the wastewater treatment plants provides any appreciable degree of treatment. In the Cairo area, the raw wastewater is discharged into drainage canals which are known to be used as sources of irrigation water. In the coastal cities, raw wastewater is discharged from short outfalls into waters which are used for recreation and .ommerical fishing. The physical condition of these systems most certainly reflects a scarcity of resources. -11 - ANNEX H Page 11 3. Existing Rates and Tariffs In general, the rates charged for water have not been increased for many years, and all of the water utilities incur costs which far exceed their revenues. Many of the consumers, especially those using public fountains, have very low incomes. There is concern that if an attempt were made to charge these persons for potable water, they would use alternative, unsafe sources and that the costs associated with the consequent decline in public health would exceed the cost of providing free potable water. it is also recognized, however, that the low rates charged for water do not encou::age conservation and that there is a wide-spread misuse of water. Increases in water rates usually require prior appreval by the local council and the Governorate administration. There have been some pressures brought by foreign lending institutions to have the utilities increase their revenues to cover their costs. In response to these pressuris, the position has been taken that the utilities sell their water to the Government which then resells the water to the public. Were this pattern consistently true,it would be the Government, not the utility that subsidizes the operation of the systems. No attempts have ever been made to charge for sewerage service except for connection charges. At one time, industries were charged for discharging effluent into the waste-water systems, however, this practice has been discontinued. - 12 - 2-ANNEX H Page 12 General Organization Greater Cairo Water Sply (GOGCWS): Within the Greater Cairo area, there are different rate schedules in effect for different districts, i.e., there are different rate schedules for Maadi, Giza, Helwan, etc. Within a given district, all customers, commercial, industrial or residential, pay according to the same rate schedule, except that there is a fifty percent reduction for mosques and churches. Some districts have a single rate per cubic meter independent of the quantity used, while others have sliding scale rates that, in general, decrease from 15 milliemes per cubic meter down to 10 milliemes at higher usages. The rate schedules have not changed since the Government took over the water system from a French company twenty-five years ago, and the revenues now cover only about one-half the costs of producing the water. Non-potable water is charged at about one-half of the rates for potable water. The GOGCWS proposal for increasing tariffs included a recommendation that there be a single rate schedule for all districts of Cairo and that the rate be degressive, with the first 30 cubic meters per month to cost 12 milliemes (approximately the same price as at present in most cases), the next 20Y cubic meters to cost approximately the full cost of producing this water (about 25 milliemes, at present), and all usage above 50 cubic meters per month to cost approx imately double the full cost of production. The GOGCWS believes that this rate structure would cover all costs and would discourage the waste and improvident use of potable water. 13 - ANNEX H Page 13 It is not known what action has been taken by the Government on this proposal. The GOGCWS would like to charge a higher rate for treated water used by industry since many industries could use water of lower quality, albeit a separate rate for industrial water was not included in the proposal submitted to the Government. No charge is made for water discharged through fire hydrants. A charge is made for connecting a new consumer to the public system, varying from about 65 to 210 L.E. depending on the size and length of the connection. In new developments, the developer is usually required to pay for the full cost of extending the system to his site. The work of installing the mains, the meters and the house connections is performed by the GOGCWS staff which then bills the customer for the work. Although not presently fully tabulated, data are available from which the lengths of mains by sizes, the numbers of meters by sizes, the number of customers by classifications (such as industrial, commercial and residential), and the sales at each rate could be determined. Alexandria Water General Authority (AWGA) The tariffs of the AWGA shows a degressive rate in effect for households with usage greater than 10 cubic meters. There are different rates for the towns along the cost to the west, government buildings, military installations, factories and large users. - 14 - ANNEX H Page 14 The AWGA also receives compensation for: water consumed through public fountains, water supplied to ships, garden irrigation water, water discharged through public and private fire hydrants, sprinklers, and the rental and the repair of privately owned meters. The latest revision to tariffs was effected July 1, 1976. Further modifications to the tariffs are under consider ation. Although revenues from the tariffs have come much closer to covering the costs of the water in Alexandria, the size of the deficit has grown. Suez Canal Authority (SCA): The current rates for water in Suez, Ismailia and Port Said are essentially those that were in effect in 1945 and the revenues do not cover the costs of the water utilities. The SCA intends to re-examine and increase the rates when the current plant expansions are completed. Approval by the Governorates of the increased rate will be required, but not that of the central Government. General Organization for Water Supply (GOWS): The rates for the GOWS-operated utilities vary from facility to facility. Although the rates cnarged to regular customers of the major projects approximate the full cost of producing the water, total revenues are far below total costs because most of the water is distributed free through public fountains. As noted previously, only about ten percent of the water produced is sold. lot - 15 - ANNEX H 4. Sector Con3traints Page 15 Sector planning and organization at present are centra lized for sewerage and to a lesser degree for water with MOHR. An advisory Ccmmittee of four members was established in the MOHR in August 1975, for initiating and coordinating project preparatico. In cooperation with the operating authorities this committee prepares studies and projects in the sector and submits these to the Ministry of Planning for including in the draft 5-Year Plan. In the current plan the Ministry of Planning forecasts a total expenditure of L.E.250 million for water and L.E.103 for sewerage for the plan period 1976-1980. The total of these funds are tentatively allocated (i) Cairo (LE.142 million); (ii) Alexandria 'LE.52 million); (iii) other urban areas (LE.104 million); and (iv) rural water supply (LE.55 million). The Government's immediate plAns are for the urban areas; to complete on-going projects and improve existing facilities which in many cases have gre-atly deteriorated through increasing neglect and consistent overloading. Emphasis will be given to improving facilities in the rural areas during the last two years of the 5-Year Plan. With regard to sector policies, the Government seems keen to promote decentralization by placing more responsibility on the shoulders of local institutions. At present the municipalities operate the urban systems (outside Cairo, Alexandria and the Canal cities) but control of overall sector activities remains centralized in the MOHR. In 1975 the Government passed a decree that all water and sewerage facilities. located within the municipalities, legally belong to that - 16- ANNEX H municipality and the elected local bodies (Local Councils) are legally responsible for managing such facilities. Due to the limited technical and managerial capability of the local institution and the lack of a revenue earning base for sewerage, the process of transferring ownership and management from the previously centralized organization to municipal Governments has not yet started. Implementing this decentralization Policy without strengLhening the municipal governments constrains sector development. Major constraints to sector development arise from the Government's tariff and employment policies as well as a general shortage of funds for projects.. At present water sewerage and services like many other basic consumption goods in Egypt are subsidized. Public water and sewerage authorities are regarded as providing social services and are, therefore, not required to be financially viable. Because of Government employment policies every university graduate is assured a staff of position and is allocated to public enterprises regardless of need. The Government however is consLdering more flexible tariff and employment policies as part of the general process towards a greater decentralization of decision making in state-owned enterprises and entities and better economic management. Waste-water changes are noW-existant and water tariffs are low and the revenues generated in any case revert to the central budget from which funds for new construction and operating costs must in turn be obtained. jOl - 17 - ANNEX H Pase 17 As a result of this approach staff morale is low, there is no premium on efficiency, little incentive for financial disc ipline and steady decline in service. The Government's target of providing a comprehensive sccial water service remains unrealized; the poor use polluted water or buy expensive water frcm vendors. In the sewerage service similar constraints apply. Availability of skilled manpower is less of a problem though many of Egypt's technicians and engineers are being attracted to other Arab countries by substantially higher salaries. AID's strategy in the sector is to assist Egypt in rehabilitating and planning of its urban water and sewerage systems by encouraging the Government to adopt relevant tariff and management employment policies that will facilitate growth and efficiency. The scope of such organizational and policy changes as seems appropriate are expected to emerge from the AID Financed Management and Tariff Study (MTS). GENERAL ORGANIZATION FOR SEWERAGE AND SANITARY DRAINAGE (GOSSD) ORGANIZATION CHART Address: Mogaama Bldg. Midan El Tahrir 6th Floor Cairo, A.R.E. Chairman (A. M. Ashmawy) I I Vice Chairman Vice Chairman (Engr. F. R. Fahmy) (Engr. A. Safwatt) II I S Cairo Operations Alexandria Operations Personnel, & Maintenance Dept. & Maintenance Administration, etc. I I I Mechanical Design Section Civil Design Section Execution (Construction) Section (Includes Electrical) Director Chief Director (Engr. M. Salib) (Engr. A. Sadik) (Engr. M. T. Said) I I I I i Cairo and Helwan Sewers Sewers in all Cities Treatment Plants Alexandria Sewers other than Cairo, Helwan, in all Cities and Pump Stations ji and Alexandria I Technical Inspection Section (Supervision of Construction) Director (Engr. Y. Rezkalla) The GOSSD is in charge of planning, design and supervision of construction (most of which is done by private contractors) in all of Egypt, and for operations and maintenance of the sewerage systems for Alexandria and the Greater Cairo areas only. PRESIDENT OF GOSSD GENERAL DIRECTOR FOR ALEXANDRIA PERSONNEL DEPARTMENT LEGAL DEPARTMENT BUDGETING AND FINANCE PUaLIC SERVICES L DEPARTMENT DEPARTMENT Salary f benefit Investigations Accounting & budgeting Complaints & iOlluw-up administration Litigation P u ntisn & budge ting . Recruitpnent. selection Purchasinq & contracting & in processing Counsel to the Public relations GeneraleDirectorSecurity SLorekeeping; Nail * messenger service Payinq & receiving. Planning & reprts Personnel Reccrds repGrts- DESIGN PROJECT EXECUTION MECHANICAL AND DEPARTMENT TLECTRICAL SEWER MANTENANC WATER POLLUTION DEPARTMENT DEPARTMENT DEPARTEN DEPARTMENT CONTROL Designand structures of sewerage ContractProject inspectionsadministration &maintenancePumping Station operations Sewer clean-ig Operationmitnneo and Preliminary Field Sludge removal maintenance of surveys Connection applica- Mechanical & electrical Estern Treatnent tions. estimates design for pumping Emergency Construction services Plant. grade and processing stations- stakes. Sewer repairs Water Capital budget Emergency and quality Manufacturing of monitor ng Progress measurements planning auxiliary pumping structural components Drafting equipmentTransportation and connectionsConstruction of - dispatching - maintenance PRESENT ORGANIZATION OF GOSSD-ALEXANDRIA CAMP ORESaCe A MCXE "ITEAutATIONAL INC. CHAS. T.MAIN INTIERNATION.:-NC. 'asI* *N.NCAL ANOECONOMICAL CONSULTIN OrPIC TENfATIVE OUTLINE OF TRAINING REQUIREMENTS SUBJECT AREA TRAINEES APPROX. NU1[CER OF NO. SUGGESTED LOCATIOt WEEKS METIODOiOGY (OVERSEA. PR[QUALIFICATIONS EGYPT Ofl-ITE-JOB) Safety practices In Sewer cleaning 600 CnnLinu- Defonstrations sewerage maintenance personnel in On-the-job in ing None districts real situations; begin with fore men; use TPP clean ing 1,oject to p,.o vide exuripl es; con centrate on visual cenunic,,tion with cartoon style book lets Ind posters. Standard operating Operating staff 200 I-each procedures Supervisors - systell, of all pumping facility Classroom plus Mechanical and overview and detailed treatment on-the-job aptitude review, Continuing Op;rators-review of On-the-job Surveying . New staff in ~p..dro , dures 12 10 Introduct;n Design De- to basic Classroo and partnent t-ro-Iu) t i i Cldsofase anedd!s field Secondary per4 hirs wk. Graduvil expansion of Classroom and on- kno.l'dge a;id ability the-job school continuing geared to specific Crafting Drafting section 5 2 hrs per Introductioniohcds staff to basic Enrollment ddy- 6 wks in formal Secondary techniques of engineer- class if available or or technical continuing ing drawing engage qualified in- school collection and struc:ture; on-the-job Oesgn of wastewaterpump- Designment employees depart- 5 continuing thereafter Enroll in specific ap- University ing facilities of Alexan- Basic engineering plicable design courses dria and on-the-job education at University of Alex andria, one course at a time per employee with time off as required for I! class attendance; on-the artstrainin to co iultanas counter s Sob SUBJECT AREA TRAINEES APP OX. NUMBER OF LOCATION (OVERSEAS, pRE UALI rIATI NI! NO. WEEKS- SUGSTE METHODOLOGY LCTON (OVERSA, PRQAIFCTO Wastewater quality Water Pollution EGYPT ON-TE-JOB)_ Instruction analysis Control Depart- furnished on con suiting basis nient Staff I. Laboratory 3 Quality control, record keeping, Upgrading Manager - lab facil- Graduate lab Sdfety, industrial operations ittes at Eastern Treat- cheillist liaison, specifics of industrial ment Plant (possible wastewater analysis alternate training dt 2. Laboratory 2 Rond 3 Lab techniques for wastewater Point La.) technicians Technical analysis, quality control, record school, basic keeping, lab safety 3, Field __ __, 10 4 Sampling C huo__ biistTy technicians techniques, record keep- On-the-job ing, job safety deiiionstr,- Te(hoiical tions at selected iti- school All new manage- dustrial locatiunls On-the-job ment systems and with speci- (10 ti1 procedures (TO BE DETERMINJED) fic training as quired re- DEITEMI111ED) Ii AWEIX 5 PRESIDENT OF NOTE Heavy lines indicote GOSSD additions or changes to present organIZtion S GENERAL DIRECTOR FOR A XNORA DEPUTY GENERAL 1INTERNAL AUDIT PROJECT MONITORING DIRECTOR ADMINISTRATION UNIT UNIT PERSONNEL AND TRAINING LEGAL DEPARTMENT BUDGETING AND FINANCE DEPATMENT PUBLIC SERVICES L DEPARTMENT DEPARTMENT Salary + - fit Investigations adm inirt. .... n, Accounting & budgetino Cowmplaints & follow-up Rerint. Litigation Recruitmen . selection Purchasing & constracting C u s l t h Public relations & in processing Counsel to General Director.the Stor,,keeping Security Mail + messenger service Paying & receiving Planning & reports .Personnel&reports. Records manaeenCentral recordsiformainsytm .Training a d staff development fNIN J MEC"A"CAL AND TE POLLUTIO DESIGN AND PLANNING PROJECT EXECUTION DEPARTMENTT SEWER MAINTENANCE WATER POLLUTION ELECTRICAL DEPARTMENT COt. TROL [_ DEARDEPARTMENT EDEPARTMENT DEPARTMENT Design of sewerage Project inspections Pui ping station operations and structures&maneacilarenceO Sewer cleaning Operat4 I kii d nd a Contract administration & Sludge re,.ovd] wsintend.Ieatofaaintenance Preliminary Field Mechanical & electrical Eastern IreItent surveys Connection aplications, desin for pumping Constuction grade processin stations. Emergency services Plart Sewer repairs Wd'ter qna I ! y stakes. Capital budget planning Emergency and Manufacturing of nunirig Drafting auxliary pumping structural components Sewer use fgulatioln a Master plan updating Transportation and Construction equil pent of erorceme." pro am connections A - , .'K W 60,-, Capital development - dispatching Colecio services Prrogamming and - maintenance Collection servi ______o_____ *______,_____ budget planning. for mozot. manure, Ill91 Illigl IIlliitI ltltlllIlNtllstI septage a1 industrial SUGGESTED INTERIM wastes. ORGAN!ZATIONAL ARRANGEMENTS IC AP ES;FS 5 -,P ERINTErNATIONAL INC. CHAS T MAIN INTERNATIONAL INC. tNRU.kiCAL ANO ECONOMICAL COCCULTale OFIpCl GOSSD-ALEXANDR IA FIVE YEAR FINANCIAL SUMMARY AnnUdl Expeliditur-e (L.E.)(1) Category 1973 1974 1975 1976 Operating Costs 1977(2) Salaries and Allowances 398,482 437,150 497,074 Employee Benefits 544,442 549,984 68,618 73,822 Utilel 97,921 141.640 24,215 165,800 23,413 24,024 25,412 33,900 Spare 33,485 34,266 Parts and Materials 30,683 84,755 67,495 89,050 OtherMajor ExpendituresRepairs 1.49162158,27763,898 50,253 100,000 2,49916,241 13,088 1, 13,647 o 1 24,400 TOTe n2,09 - 26,725 28,437 CapitalTALCosts95,4 29,734 32,510 630,843 675,515 741,435 897,907 995,644 Master Plan Sewers 111,155 163,763 99,248 Master Plan Pumping Stations 484,903 600,000 48,041 40,105 Master Plan Treatment 34,036 - Facilities 203,859 300,000 Other 175,270 303,423 Project' 181.795 399,940 500,000 " 120,862 100,951 100,000 TOTATOTAL 54485 144,809 544,850 500,000 2I00,00__0 537,658 1,029,652 1,600,000 Total Annual 9,312 3,508 3,508 Expenditures 1,175,693 1,175,515 1 FundinNdinsf 9 from Loa Sore(3) L 1,1563.7,15 .288,450 1,931,067 2,599,152 87,870 127,015 otes: (1) Based on 79,262 96,993 financial records of the (2) Operating Budget and Finance Departnment, costs based on budget Alexandria Sewerage annual approval by Cairo GOSSD Authority needs estimated by for, 1977. Capital costs the Project Execution Department based on information from on 7-1-77. Debt Budget and Finance Departmetit Payments based on (3) Customer contributions on existing commitments. for extensions and connections. Annex M GOSSO-ALEXANDRIA CURRENT VALUE OF FIXED ASSETS AND DEPRECIATION EXPENSES(1) Asset (Useful Life) Book Value Accumulated Net Current Annual at Current Depreciation Value of Cepreciatior Replacement Assets Expense Cost (LE X 1000) SEWERS (50 years) Collection and Transmission 96166 51618 44548 1923 Building Connections 12675 6337 6338 253 Drain Inlets 4030 2015 2015 81 TOTAL 112871 59970 52901 2257 STRUCTURES (40 years) Field and Main Offices(2) 626 313 313 16 Pumping Stations 2400 905 1495 60 Treatment Facilities(2) 2000 650 1350 50 TOTAL 5026 1868 3158 126 EQUIPMENT (20 years) Office Equipment(2) 50 25 25 3 Sewer Cleaning Equipment 25 13 12 1 Pumping Stations 12650 6505 6145 632 Treatment Facilities(2) 2000 1000 1000 100 TOTAL 14725 7543 7182 736 VEHICLES (10 years) 1252 749 503 125 LAND(2) 5898 1 5898 GRAND TOTAL 139772 70130 69642 3244 NOTES: (1)Based on inventory of existing assets for July 1, 1977. Replacement cost estimates based on current day construction or replacement costs developed by CDM except where noted. (2)Current value based on engineering estimates from GOSSO-Alexandria. PPCJLLcaD BAL7'tE SILtr. AS flu tm I tr WAJiClt:R 31 1977 197:1 1979 19 U 91 19 19e9 3 394 19! 5 198b 1987 1991 191-9 199 A SS E T S . Fixed Assets I Utility Plant in Service 139772 140381 146667 172295 216398 2 Less AC:,AiiIat~d 557671 5t4319 5/3794 596192 epre- 607133 618755 631u93 6443I:_. b/cjlj IUC943) ciatior, b4:3 6 1 73374 76534 79838 83708 8 1 Net 8809 152129 115765 129597 Fixed Asse:s in Service 6639, 143941 158283 172875 847 66829 88587 12;';9 1k725 Z07851 21U9:-t 3 Work 45tu46 44 64 444197 452251 41i .t in P,'cesi - 276 18]1 448850 44583u 4433t' 104098; 22832 44133 45 j .. 341171 10091 1b676 2?309 , TOTAL FIXED ASSETS 66672 4 14545 19396 23818 81965 170927 312419 6 t900 465639 465 90 46 2H'23 IjI.C 14.' 506 466 96 468246 46969 8 4710 a 4/4t D; 4 I 4, 4 CashCurrent Assets 4/ 3352 15743 24672 3 5 Ac-uts 27406 2478 063 eceivable -482 3425 3425 3725 3844 4082 4342 3 Service Chargei 44313 263 cO10) 6 Less Uncollectible 322 466 506 548 587 626 670 711 759 612 173! Service Chargej _ 2 07175 . - 126 116 611/. Accounts keceiiable -15 112 121 132 141 15G 161 171 182 Capital Contrijutions 161118 195 41' 165 149 108 1941 8 Less Uncollectable 129 297 354 2G5 Capital3135 273 291 309 316 Contributions 335 355 376 3 2 35 37Id, 2 3 6 7 5 9 Inventories 5 6 6 6 7 190 220 279 7 8 23 271 319 542 588 TOTAL CURRENT ASSETS 636 684 733 3704 16110 25057 816 841 902 96 27904 3294 4306 4658 21 Total Assets 4747 5140 5356 5717 70376 98075 195984 6051 5750 8552 340359 472254 469945 It;.9 469927 471253 471936 473602 475415 477939 LIBILITIES 48U567 48206 10 Capital Contributions 74638 104510 197322 337591 11 471340 503362 515688 529641 RetaineJ Earnings (Losses) (4322) 543733 558724 574218 (9142) (14636) 148) (22302) 590523 607125 u?4134 (3_ 1) (47. 0) (60 ) J.63) TOTAL EQUITY (87_ (133 f115SLv I3294.2) 70316 95368 182686 319443 449038 468351 467898 2) (1444J43 (a743. 4_L8940 4 9670 471125 42 6..4.34 0 C u rr e nt L ia b i l it ie s 41_4_ 12 Accounts _ Payable 44 1580 7740 12169 13508 958 13 Deposits 1226 1382 1357 16 1127 1483 1517 1609 1711 5558 8747 9708 636 1443 4;52 TOTAL CURRENT 821 931 909 LIABILITIES 60 2707 13298 994 1012 1075 1143 20316 23216 1594 2050 943 Total Libilities 2313 2266 2477 2529 73176 9807i 195984 340359 2L84 2854 2386 472254 469945 469948 471253 H 471936 473602 475415 47791) 480567 4820Li b,6343 NOTES TO ACCOMPANY PROJECTED BALANCE 5HEETS (1977 - 2000) GOSSD - ALEXANDIA 1. Utility Plant In Service is the sum of Depreciable appearing Values plus Land on Table 8.12 Schedule of Capital 2. Accumulated Assets. Depreciation is taken from Table 8.13 Schedule of Depreciation Expense. 3. Work In Process is taken from Table 8.12 Schedule of Capital 4. Assets. Cash balance on December 31 This is taken from Table 8.17, Cash end of year balance is sufficient Flow Statements. costs to finance two monhs of (Table 8, 15, Projected Income operating Statements) plus two months expenditures shown on Table of capital 8.10, Estimated Capital Expenditures. 5. Accounts receivable are estimated to equal one billings month of service charge for each year as shown in Table 8.16, Projected Income Statements. 6. Taken from Table 8.16, Projected Income Statements. 7. Accounts receivable are estimated to charges in each equal one-third of the sewer year as shown in Table 8.15, connection also included is Projected Customer Contributions; 128,000 L.E. in 1977 and 64,000 standing balance in 1978, based on an of 192,000 L.E. in l976 out one-third of which is assumed be collected in each of to the years 1977, 1978 and 1979. 8. Estimated tu be 2 percent of Accounts Receivable - Capital 9. Inventory contributions. for 1977 based on end financial of year balance from 1976 GOSSO records; inventories in succeeding - Alexandria with increased expenditures years assumed to increase for materials and supplies shown in Table operating costs, 8.16, Projected Income Statements. 10. Capital Contributions are the cumulative tributions sum of the annual Capital of Customers and Government Con- Statements. as shown on Table 8.17 Cash The initial balance for Flow as the December 31, 1977 was established difference between total Equity in 1977 on the and Retained Losses developed Income Statement TABLE 8.16. because a This approach was necessary balance sheet displaying retained earnings and Capital Con tributions was not available. 11. Retained Earnings (Losses) are the Cumulative earnings on Table 8.16 Projected Income or losses appearing the Statements as Net Operating proposed revenue program Operating Income. Under result in operating Income after depreciation will losses durinq the entire period will require 1977 - 2000 which an operating subsidy from government. 12. Accounts payable are equal to one month of capital costs and purchasing costs for each year. 13. Deposits include advance payment of building year, and contractor connection fees for one half deposits of 5 percent and contractor cent based on the amount insurance of 1 per of work in process for each Table 8.12, year as shown in Schedule of Capital Assets. C(IS',D LI XANflRI. PROJLLTED ! t... Iten It 11,1 A 1977 ( lOU"ANI j:sL .E.)C-4F,lS 19 8 1979 w i.,Ir 19'u2 REVE? ES 1'43 19 ~ ~ _ _ LU92j 9 ~ 12_ Serviue Charges Z h6L2 - 2 L s Provision 3157 3859 5594 TOTAL"REVCOS- or 6067 657f 7048 Unco llec tables 7517 03 TOTAL REVENUES 3031 3743 COSTS 126 116 5482 5946 9746 2j i39 112 IN 1 6444132 6907141 3150 6 7881611 111 SJiaries and Benefits 6. tQ 824 1149 698 195 241 1573 2005 736PER..Tt8 Fuel 2347 3375 6 30 43 3665 3986 949 Utilities 61 83 4281 4r32 102 98 112 121 4863 5183 123 147 134 145 3523 5911 Materials and 177 205 156 167 Repairs 86 614 661 180 104 114 149 710 755 21 459 Other 195 228 800 848 Expenditures 422 461 899 36 106 532 9E4 10?? TOTA lOPERATIIG CCSTS 1078 130 76 570 639 191i TICOM E A CCS 1535 2060 2536 91 120 610 696 18 5 1929 13941 197 74t 20 5 13 15152 163 2969 4643 5035 177_17110 1.91 _ _26_ DEPRECIATION 5466 5865 206 2?512 1 (1078) (1535) 6251 6694 6u (2060) 495 7103 752 4 774 839 81161 Depreciation 911 978 3244 3285 1042 1116 NET OPERA 3434 1I18 1262 TING 1 l1COtf (4322 ) (4 2 )1440 4007 4928 13548 1353 13690 13889 IT-OPER( 4 146 52 1 4 71 191 5 91 45 3066 (4820) (5494) 1433 (3512) (4154) 25363 (12709) (12779) ;12911) (13362) (13536) (13733) (13936) (14144) (15022) (22297) NOTES: Service Ctarge was designed (1)plus a prcvis(on to recover annual operating for uncollectable costs, plus a reserve reveneus Service to provide working (2)Based on ravenue charge is assumed to capital equal collection experiences te instituted in 1980 to two months of oerating of the Alexandria atter completion costs in the Water General Authority of a forthoining management followijig year. collectables are which, it is assumled. and tariff Study. estimated to be 4 percent will provide sewev in 1980, 3 Percent scrvice charge collection in 1981 and 2 pe-cent services. Un fromi1982 to 2000. (3)Based on Tble 8.9. ProjecLOperation and Maintenance Expenditures. (4)Based on Table 8.13, Schedule of Depreciation Expenses. LA'tl fLi.W TATL-L:41S (Ti,.Ju~LDJ.E ) flote I teml 19 ?_ 1978 1179 1!..0 1~ 19 3, 9:! 154 lb 1986 19d7 iy- 19t; i~rc 1 SOURCES OF FJNDS I Net Income (4322) (48210 (5494) (3512) (41S4) (12709) (12779) (12911) (13362) (13536) (13733) (13936) (14144) (1i122) (W2297i 2 Depreciation 3244 3285 3434 4007 4928 13548 13b9O 13889 14404 3 increase in Current 14652 14917 15198 15497 16455 2b,, LiaDilites 60 2647 10591 7618 2300 - 456 263 - 211 52 155 170 - 4 Decrease in Current (Excluding Cash) Assets ------10 - - - 5 Cpitl Contributions - - - (Custoner) 173 314 381 379 873 2301 2447 647 2499 2654 27b1 293 31.3 300b ViA 6 Capital Contributions (Governunent) 4303 29558 92431 139890 132876 29721 9879 11306 11593 12337 1271. 1332 1349 14001 TOTAL SOURCES 41 t 3458 30984 101343 148382 136823 32861 13703 15194 15134 16318 1673t. 1772 Id25 18442 t USES OF FUNDS 7 Investment in Utility Plant 274 18577 92396 145499 161469 10227 13341 15105 14694 16102 16369 173b8 16476 15122t 8 Decrease in Current Liabilities - - - - 21622 - - 47 - 48 9 Increase in Current Assets (Excluding Cash) 57 15 18 149 282 427 - 89 TOTAL USES 93 97 121 74 lid 125 331 18592 92414 145648 161751 32276 13341 15194 "4834 16199 1649? 17462 16594 16715 5i C NET OF SOURCES LESS USES 3127 12391 8929 2734 (24928) 585 362 - 300 119 2311 260 (469) 2727 Iu 10 CASH AT BEGINNING OF PERIOD 225 3352 15743 24672 27406 2478 3063 3425 3425 3725 384.1 4U82 4342 373 II CASH AT ED CF PERIOD I I 3352 15743 24672 27406 2478 3063 3425 3425 3725 3844 408K 4342 3873 660 ., NOTES: (l)Taken from 'ncmne Statenents, Table 8.15. (2)Taken from Schedule of Depreciation Expenses Table 8.13. ({3)'(4)Changes as shown in Projected Balance Sheets Table 8.1*1 5) Include contributions from sewer connection charges and benefit chargie to beefiar develcpers as shown Projected Custoner One-third of eacn year's connection charge billings is assumed Contributions. Table 8.14. to be c ected in the ollowng year; two percen of all cornection uncollectable. charges are assumed to be (6)Includes government funding required to supplement customer contributions to ensure a sound financial posture throughout the period of study and maintain a sufficient level of working capital for sound financial management. (7)Taken from Estimated Capitai Expenditures Table 8.10 8)1{9)Taken from Projected Balance Sheets Table 8.17 (10). (11)Based on cash required to finance two months of operating costs (line 3. Table 8.15 Projected Incm.ie Statements) plus two months of the capital expenditures shon on Table 8.10 Estimated Capital Expenditures. (OSSD ALE:ANDRIA ESTIMATED CAPITAL [APEIfDlTURES (Escalated Prices Thousan~ds L.E.) 1977 1978 99 1=1 1981 1982 1983 1984 12-U 1986 1997 1988 189 1 1991A4 .naL Sewers (1) 250 11793 61531 84084 92903 9458 12504 (21 13796 12317 13096 13894 14755 15670 Structures 2 14227 3li3b6 t.ltu4 3893 15112 35521 44659 62 67 114 219 232 174 184 198 (3 ) - b4193 14L JI Equipment 20 1749 9709 19385 22679 510 549 Vehicles - 472 925 1791 1905 1430 1520 503 543 138 147 167 180 1616 - 1440b 70194 192 683 731 780 835 95 1419 Land 2 670 5541 5966 ?45I 1090 50 54 90 175 186 140 149 157 -14J'U otal Estimated Capital- Expenditure 274 18577 92396 145499 161469 10227 13341 15105 14694 16102 16369 17388 18476 15122 401174 95r213 (1)Includes sewers, house connectionls. force mains. 2 ocean outfalls (2)Structures for treatment. pumping and office facilities (3)Includes treatent. pumping. office. sewer cleaning equipment GOSSD - ALEXANDRIA PROJECTED VEHICLE REQUIREMENTS(1) Type of Vehicle Existir Irnrovements System Growth Requirements (1978,-19807 1978-1980 1981-1985 1986-1990 1991-2000 REQUIRED ADDITIONS VHICLE FLEET- Large Trucks 54 5 4 12 10 32 Small Trucks 41 60 3 10 8 24 Vaccum Tank Trucks 30 10 2 6 6 18 Hydraulic Vehicles Lifting - 20 . Other Vehicles 23 10 2 6 4 14 TOTAL 148 105 11 34 28 88 TOTAL VEHICLES IN OPERATIOA 148 253 264 298 326 414 NUMBER OF VEHICLES TO5E REPLACED Large Trucks 27 - 22 41 Small 185 Trucks 12 -i? 92 Vacuum 122 Tank Trucks 20 - 42 54 Hydraulic Lifting Vehicles " Other - 20 20 Vehicles 7 - 7 28 45 TOTAL 66 - 41 223 326 GOSSO AiEXAhIURIA SCIEDULE OF CAPIHAL ASSETS. ON UCEMBER 31 (Thousdnds L.E.) 1977 1978 1979 1980 1981 1982 1983 19314 1985 1986 1987 1988 1989 1990 2000 ASSETS ADDED DURING 1HE YEAR Sewers - 250 5595 24859 42666 177191 6589 9292 19370 1056 Structures 11216 11906 1261i 23l - - - 132 42163 99055 - - 243 Equipment - - 11 318 363 1088 - I0!0 7600 51751 - - 1961 Vehicles - - - - 472 503 543 - 3020 138 147 167 130 192 Land 683 731 780 835 - 106 895 I9 0 13163 - - 192 ------0 8 - - b09 19W TOTAL 733 6416 25765 44130 341307 6756 9472 22458 11251 11947 12686 1J466 3442$ 53713 ASSETS PETIRED Vehicles - 124 130 137 27 28 54 57 60 310 325 348 371 400 DEPRECIABLE VALUES Sewers 112871 113121 118716 143575 186241 363432 370021 379313 399183 409751 Structures 5026 420967 432873 445504 468919 5026 5026 5026 5158 104213 769532 Fquipment 104213 !n',213 104456 104456 104456 14725 14736 15054 104456 104456 105463 15417 16505 68256 68256 68256 159659 70217 70217 70217 0217 ehicles 1252 1600 70217 73513 92906 1973 2379 2490 2609 2722 2845 2977 3350 A756 4188 4652 5147 13366 TOTAL 133874 134483 140769 166397 210394 538510 545212 554627 576833 587774 599396 611734 i24829 653042 1035465 WORK IN PROCESS Sewers 25U 11793 67729 126954 1,7191 9458 15373 19877 12324 Structures 14852 17530 203j9 23418 2 3895 19007 54523 99055 62 129 243 Equipnent 219 451 625 809 20 1758 11149 33171 1007 51762 521 1070 1995 1825 Land 2 3730 5160 6680 672 6213 12179 13163 50 104 194 177 363 503 652 809 - TOTAL 274 1118 1040C 223S32 341171 10091 16676 22309 34515 19396 23313 2352 3353) LAND 5898 5898 5898 5898 6004 19167 19167 13167 19359 19359 19359 19359 19359 20168 20168 CAPITAL ASSETS 140046 153499' 25O7M5 396127 557569 567768 581055 596103 610737 62C52i' 642573 659613 79710 695601 1055633 GO S) ALExAMULRIA SCIfDULE (ThousandsOF DEPRECIATIOi L.E.) EXPENSE 1977 1978 1979 192.0 1961 1982 l13 9_4 1985 1986 1987 198 1989 1990 2O00 ANIUAL DEPRECIATIO?, EXPEISE Sewers 2Z 2257 2262 2374 2872 3725 7269 7400 7586 79L4 Structures 8195 8419 8657 8910 21,- 126 126 126 9378 153-0 126 129 2605 2605 Equipment 2605 2611 7611 2611 5 736 737 737 771 2611 2oil 2637 825 3413 3413 3413 3191 Vehicles lOt 125 160 3511 3511 3511 3511 197 238 249 261 3511 3925 4645 272 285 298 335 376 419 465 515 TOTAL 133) 3244 3285 3434 4007 4928 13548 13690 138b9 14404 14652 14917 15198 15497 16455 25363 BOOK VALUE OF ASSETS RETIRED Vehicles - 124 130 137 27 28 54 57 60 310 325 34a 371 400 60 ACCUMULATED DEPRE ClAr1on RETI1Rr, (ETTS) OF Sewers 62227 64489 66863 69735 73460 80729 88129 95715 103699 Structures 1994 2120 111894 120313 128970 137880 2246 2372 2501 5106 147258 2I103 7711 10316 12927 15538 Equipment 8279 9015 18149 20760 23371 26008 9752 10523 11348 14761 59149 18174 21587 25098 28609 Vehicles 874 32120 35631 39142 43067 910 977 1078 1300 1533 85919 1751 1979 2217 2242 2293 2364 24b8 2573 5860 TOTAL 73374 76534 79838 83708 88609 102129 115765 129597 143941 158283 172875 187725 2028!,l 218906 422031 ASSET VALUES 66672 81854 170916 311072 468949 465628 465258 466495 466785 4LB235 469687 471877 474853 473523 6a360Z GOSSD - ALEXANDRIA P10J[CjED CIISTCtIER CONTRIBUTIONS Note Iten 1977 1978 1979 1980 1981 1982 1913 1984 1985 1986 1987 1988 1989 1990 Customer Data I ConnectionsNumber of Sewer Add&. 1000 1900 2000 2000 4000 4300 3000 To t a l Se w er 2900 2900 2900 2800 2bO0 2800 28028 0 O J Connections 75000 M1900 78900 80900 84900 83200 86200 89100 92000 94900 97130 100,0O 103303 106100 i!'04"0 Operating Revenues 2 to:.thly Service Charge (LE connection) per - .25 3.79 5.60 5.'17 6.15 6.38 6.60 6.S6 7.08 7.35 7.65 Annual Service Charge Billings (Thousai~s of L.E.) - - - 3157 3859 5594 6067 6.576 7048 7517 8039 8536 9108 9744 201139 Connection Charge Revenues 3 Connection (L.E. per conCharge nection) 150 180 216 258 297 329 354 379 402 426 451 479 507 537 4 Connection Charge t#63 sands of L.E.) 112 5 BRill nngshou 256 324 387 891 1061 796 824 874 927 947 1036 1065 1128 fictaries 311 1261 1667 1839 1642 1746 1853 1957 2089 1903 5b80 NOTES: (I)Number of connections in 1977 based on moderate increase over 1976 connection ; number of connections from 1978 to 2000 based on 50 connections per kilometer of new gravity sewers completed by the end of the year. (2)Service charges are designed to recover operating to facilitate costs for each year, plus two months of operatings cash flow requirements, plus 2 percent of costs in the followirg year the total to provide for uncollectable billings. O)Baied on estimated average 1977 connection charge escalated at local inflation rates. (4)Assumes that 25 percent of new connections will not be billed due to inability to pay in low incone areas to be sewered. i)lnc ludes charges to developers struction cost of for one-third of the cost of collection collection sewers is equal to 60 percent sewers in newly developed areas beginning of the total sewer construction cost shown in 1982. Con of these collection sewer costs in Ta;le 8.10. Two-thirds are assumed to be in areas owned by developers. 8-23 1977 1978 1979 1910 1981 1982 1983 1914 1985 1986 1987 190019 6 1989 1990 ADMINISTRATION &_ ErJGIIJEERPG Salaries & Benefits 87 114 149 192 226 254 279 305 329 355 383 412 444 478 97 Utilities 2 2 2 3 3 4 4 4 4 5 5 5 6 i1 Materials & Repairs 2 2 35 5 5 6 6 6 7 7 Other Expenditures 18 24 32 42 13 49 60 61 67 73 78 85 91 98 106 225 TOTAL 109 142 186 240 282 322 349 381 411 444 479 514 555 597 12c6 WATER POLLUION CONTROL Salaries & 8nefits 55 66 79 95 109 750 803 867 918 973 1031 1093 113 1226 Utilities 31 37 25?6 44 53 61 405 436 468 496 52b 556 590 625 662 Materials & Repairs 13 16 19 23 1b24 27 187 202 216 229 243 Other 257 2,' 28 306 63o Expenditures 1 61 73 1 1 12 13 14 15 16 17 1. 19 20 50 TOTAL 100 180 215 172 198 1354 1459 1565 1658 1757 1861 1973 2091 2214 4530 SEWER MAINTENANCE Salaries & Benefits 327 502 735 922 1081 1218 1336 1457 1576 1669 1776 1839 2009 2137 Utilities 1 2 500 2 2 3 3 3 4 4 4 4 4 5 5 Materials & Repairs 20 24 28 36 9 41 49 58 60 65 71 Other 77 83 90 97 231 Expenditures 13 16 19 25 31 36 40 44 48 53 57 63 69 74 191 TOTAL 361 544 784 985 1156 1306 1437 1565 1687 1797 1914 2039 2173 2313 5501 MECHANICAL AND ELECTRICAL Salaries & Benefits 355 467 610 796 31 1153 1242 1357 1464 1565 1673 1789 1912 Fuel 30 2077 4i7 43 61 83 98 112 121 134 145 156 167 180 :,1 Utilities 68 82 Z09 451 99 119 138 202 218 234 251 266 283 330 318 349 Materials & Repairs 51 72 632 99 133 156 182 196 216 233 250 299 2d9 310 335 Other Expenditures 4 5 6 8 726 10 12 13 14 16 16 18 19 20 22 45 TOTAL 508 669 875 1139 1333 1661 1790 1955 2109 2253 2440 2577 2754 2992 6079 TOTAL AflNUAL EXPE: ITUkES Saaries & Benefits 824 1149 1573 2005 2347 3375 3665 3986 4281 4562 4863 5183 Fuel 5523 5918 1281.1 30 43 61 83 98 112 121 134 145 156 167 180 Utilities 102 194 209 459 123 147 177 205 614 661 710 755 800 848 899 954 Materials & Repairs 86 1022 1976 114 149 195 228 422 461 497 532 570 639 650 696 745 Other Expenditures 36 106 130 76 1600 91 120 127 139 152 163 177 191 206 222 51 T0TAL 1078 1535 2060 2536 - 2969 4643 5035 5466 5065 6251 6694 7103 7573 8116 11356 GOSSD - ALEXANDRIA PROJECTED STAFFING REQUIREMENTS DEPARTMENT STAFFING Existing Improved(i) 1980 1985 1990 2000 Executive 8 18 19 Personnel 21 23 18 27 22 23 Finance 27 31 71 39 75 79 Legal 85 91 103 9 10 13 15 Public Services 16 18 7 10 11 Design 13 15 20 7 11 Project 13 17 21 Execution 52 664 29 Water Pollution4646687 66 68 72 Control 109 120 120 641 641 726 Maintenance(2)Sewer (2) 648 1013 1064 1162 1184 1567 Mechanical and Electrical -Pumping Stations 397 397 409 541 560 560 -Transportation 307 529 552 628 681 864 TOTAL 1633 2267 2367 3216 3331 4025 NOTES: (1)Improved staffing level based on priority programs monitoring, auditing, for project training management information planning services, and capital budgeting, industrial sewer use monitoring, waste collection services and sewer cleaning program. (2)Improvement needs include 140 for collection of mazout, manure and toxic materials; oil and grease, also 225 for septage to collection reduced 175 by 1985 and to 75 by 1990 as septic tanks are eli-minated in ne .'Y Rewered areas. AMM N NOTES TO FINANCIAL STATEMENTS 1. Cost Escalation: Currently there is an upward trend in the escalation of costs in Egypt. The consumer Price Index increase of 13.5 percent from mid-1975 to mid-1976 was the highest recorded in recent years; components of th's index are goods whose prices are controlled through Government. Although a comparable index is not available to monitor escalation of coastruction costs, which are more reflective of the free market situation, available information indicates that these costs have experienced much higher increases. The present trend in government policy indicates a shift toward more private control of industry. An effort to make local pricing more re flective of actual costs of production through a reduction in government subsidy is also anticipated. During the early years of this transition a high level of inflation is expected followed by a tapering off to a moderate level as prices are stabilized. Escalation of the cost of foreign goods is expected to maintain its current moderate level of seven percent a year. Based on these assumptions the following rates have been utilized in the financial projections. -2- FORCASTED RATES OF COST ESCALATION ANNUAL RATE (PERCENT) Local Operating Imported Equipment YEAR And Construction Costs Materials and Construction 1977 20 7 1978 20 7 1979 20 7 1980 15 7 1981 10 7 1982 8 7 1983 7 7 1984-2000 6 7 2. Operating Costs: Historical operating costs were related to the various functions and operations of GOSSD-Alexandria. To project future operating costs, the resulting unit costs were applied to the recommended programs for improvement and extension of wastewater services in Alexandria. The relevant parameters for these unit cost projections are as follows PROJECT UNIT OPERATING COST PARAMETERS Existing 1980 1982 1985 1990 2000 Administrative and Eng. staff 172 222 231 244 265 308 Length of Sewers (km) in use 1500 1620 1780 1960 2242 3129 -3- Number of Pumping Stations 34 35 45 46 48 48 Number of Vehicles 148 264 281 298 326 414 While these parameters and unit costs, escalated in accordance with projected inflation rates, accomplished most of the forecasting effort some refinements were required. Since there is no !istorical operat ing costs for primary treatment or waste stabilization ronds used in Alexandria; wastewater treatment costs for these facilities were based on equations relating operating costs to design flow and to the various level of treatment, based on operating cost experience at other facilities (Water and Sewage Works, November 1976, PP 96-99). The operating costs at the East Treatment Plant for secondary treatment were used to normalize these cost relationships to local conditions. Additional refinements to the unit cost approach to project operating costs included calculation of dower requirements and electricity costs and estimation of staffing and equipment requirements for the solid waste collection program and industrial waste monitoring programs. A preliminary staffing plan was developed for improved organization and mangement and to the requirements of expanded and improved waste water operations. 3. Estimated Capital Expenditures : Estimates include additions to and expansion of the system and other required capftal items such as vehicles and sewer cleaning equipment. With the exception of house connections -4 all construction items include provision for the cost of engineering (design and construction supervision) at an average of 10 percent of the base construction cost. Project costs also include provisions for contingencies (15 percent) and legal and admininstrative cost (5 percent); the assumption is that are such costs incurred will be capitalized in the project cost. Cost estimates for land, vehicles and mobile equipment do not include provisions for engineering, con tingency, administrative or legal costs. All estimated capital expenditures have been escallatedto reflect as closely as possible the actual cost to be incurred at the time of construction or acquisi tion of each capital item. The projected vehicle acquision and replacement program are those necessary for the expanded operation and maintenance program. Vehicles are expected -to be in service no more than 10 years. 4. Fixed Assets and Depreciation: Assets now in service and all proposed additions have been included. Facilities which are under construction for more than one year are recorded as "Work in Process during the construction peri d and then transferred to "depreciable values" on January 1, of the year in which they are placed in service. Depriciation for each year was determined by multiplying the balance of depreciable assets by the depreciation rate for each type of asset according to the following rates: -5- Asset Annual Denriciation Rate Sewers 2% Structures 2.5% Equipnment 5% Vehicles 10% Land Not depreciated 5. Revenue: Ideally, GOSSD should charge a service for which would cover all capital and operating costs. It is doubtful; however that customers have the ability to pay at the level. We therefor, have assumed that charges would commence in 1980 and cover only operating and working capital costs - a partial recovery of costs. For new sewer connections it has been assumed that the present cost will continue to escalate, at the levels previously stated, but because most new connections will be in poorer areas, only one out of every four connections will be billed. For new developments it has been assumed that the developers will be charged one-third the cost of constructing collection sewers in their developments. ANNEX 0 (See Facing Pages - for ease of reference) TOP PRIORITY PROGRAM IMPLEMENTATION 907 ~ -,T,;I ~ ~yg - ~ r~P' *-* Mr. zt, H.~ o"No..?AWl 4 . -, AMPE.R' F Ca9~i' Io 7..' .n rV -Ift 9~1i 6-1 'Allc 4 ~20- - - .~7 7 - A4 comAL low ~~ * ~ ~ . CAahhAYrze ~~.eed~~~~~Ngg~~c.. ' ,. ~I. Ymvir ., pi .. U W 6 cl~. 4 i:7 'SOPSAL I . .. , *O TI4S .... , ,A AROANtgamgs I o.m4 4 .. - l 444 4 _____ ~~ ~ ~ - ~ ., ~ .A*kO* "VU _____ ~ ~ - ______~~~CAZO149s to_4 4m.-.-.-~n-.-,.. I~i~i.-k 4 p..-~4t''.-.' *~fJ44,., * :7MJ.7 .5 * AMI S ,~a~vvr~c .4- *j..-~*w'z. MA e*e cot~i~-' '- 4 -. -P"OE PLAN~' g* OII.YOI a -*'- *. 4 r. ~~.*...~.*4~~ !At= ."'.~ . 4 - BE, ,44 FUSUUC . .t 4-*~ P" E~U .vr -r- oozuaZ 4 ;-%1477). 14 .7..~t4 * * *, - --. : 4 4 4~ .~f-4. Wtj.. - K4.rrc *4t4r,..V'fl't,' '(,EOR"Lw).*&-rMA *. 4 A*a *-A'- 44 *jE. - 4 30e rr.- ?OY 'cr PC '4~ ~ f ~ ~ 4.4~444*~4 ~I24 -. 4 .- - .. 44 "'4"4. 444~4~4~* ~ ~ ~ ~~1 fl O66-CYCOY ' C2TA~3 PATH NETWORK, FOR -TOP. PRIRITY.PROGRAM, 4k~44 ~~ ,w was iS.. Am Pm6- Mayur 44m 47M~.~ ~ 1"m344W~ 19sA?, ~ 4og~ wapw m :vip." - 1'4 t3' .4 .A * 4 4 4 4 4.#C 4* 4 ~4i~~ 4 4 I '~ ~ ~ ~ 0, ~ u ~ vai. .w. 4 Alrl" to4 A,. Q# -l ' CAEOI'AT@g * *3" **=6 4.-. CONTRACTS . AffQ!WiAp 444 4 4o 44 .T1" -4= m Cr' 42 4 4 4 @ ,.4 414, * MA. .. rwY'r ~ S " . 4 -,. 4DE 2<.~AT * .coo4 . FogI4 CjTE A, __F~1(*UA~9LaLM~-WRYJ~* SNE7/ORK .QNZA CLNA AI a woOf IVL-I VAL O: I 13r CMR= 7 *I.I * i C~~rt,)a'44 ~. ' ' . * t . 4 0 ' 4 ' . b =r4fC.TGn, ~ 4 t ' r ~ 4 . ' C ~ t R C *~4~* . ' . . . 4 ~~~ ~~ ~~~~~~ ; I 4 ~ 4 44' ~ ) . 4 A!'. ~ '44 ~ ~JL4.~44 . 4 J~4'P4 . .4 ~ ~ 4.'MGT~ 4. 'S-~ 'A NEWOK ,0 4 A * 4 4 4. .~' . . . . . '4..4. . ~ 4 4.. .. . 4 A P PS~Po ' V A ~ z ~ r'~ 4 . . ' E V * 1 UA T!.*f TEST an AwA~10N'A4 4440 CA~TE~t..y2. 4 qg~jg~4~, ~ ~ E IG'n CIVIL* -~ C4AIk. *fwkrESIGP4 - ATIE4qy ' OTA" 24 415 47 41 40 4444, -1 W. , A7 4 .4 kurrRILSPQ0aftew 2 - v J.- ~~~ 7 It wk s COTES~C TQ ' Foi C4T 5Q r ~ 7 'Y O I CO Argo . , COT1t CAWW CON..~. w * ~ $ * . ~ rsrIT -4. n...AL. ______-7 71A,~ ,-I CO______CA'*'. ~~ -~~ MAEwRe I, - Mr rw* .r * '. . S P .A. '. * GA4.T -- CA~~~~E6O~WAT- ~ ,4 .. ~ ** ~ ~ . r , Z** 7/ z. :4S . . ' ~~CAT14CRI * ~ ~ - £A %.0 GM ' TE~~r ~ Icr~r~ £P po.I L ~ ~ . ~VA.UA V' , 5 ~rCiV. ~7 I S _ 76- C~-EGO"sun. APPROVAL C'-Pf--1 RE cA~r~c~ isF;A T VI1uM - ~ ~ A ~fmmAO ^AEj y - ~~~~ ~2S2~- 3 253. '2'31~1. la w3 13;; .' ..... - -33&m EXPLANAATIONcs ,,'w~*: '' , ~ -"FOS.,1* S.l M! OF, TOP. 4 .4.44 ~4'0. 4"i 7: NUBRO.BXSCHA _~5 NQCTS .4.4?. A .~ -.. -X V - 'A.4 -, ...... Wei (4 ~4 44 AT(~- R 4~444 44 444 4'' BAISN1'NpS APP IVE DAT., 521turnrNieu *.MO-:&. ., . uIlIILIrfllfg1jl3 444.444.444444~~4..,44444 444 ~ 4 A,~4 2? ~~ 3 TOP PRORIT PRG A WATER AND WASTEWATER ANNEX P AAGU-NIT A11D TARIFF S Page 1 "SCOPE OF WORK" 5.0 CONSULTANT'S TASKS 5.1 CONSULTANT'S SERV(CES The services to be provided by the Consultant shall Include (a) Performance of management studies and development of management plans for water and sewer public utilities in Cairo, Helwan, Alexandria, Suez, Ismailia and Port Said, which shall Include recommendations for the implementation of these plans. (b) Performance of a rate sttudy for water and sewer service for Cairo, Helwan, Alexandria, Suez, Ismailia and Port Said., with recommendations of reasonable and proper rates and tariffs for water and sewer utility service. 5.2 REVIEW OF EXISTING INFORMATION The Consultant shall review all relevant and available existing information related to management and tariffs. This review shall !nc1:.., at least the items listed below 1. All reports by the three consultants who are preparing WastZ. water Facilities Master Plans for Cairo, Helwan and Alexara. i. 2. All reports by the two consultants who are preparing Water works Master Plans for Alexandria and Greater '_airo (including Helwan). -29 ANNEX P Page 2 3. All reports by three consultants who are preparing Water works e I Wastewater Facilities Master Plans for Port Said, Ismailla and Suez. 4. A report entitled Water Supply System Feasibility Report March, 1976, prepared by the Alexandria Water General Authority. 5. A report entitled Report on the Water Supply Systems of Greater Cairo, March, 1976, prepared by the Survey Team on the Water Supply System of Greater Cairo from the Japan International Cooperation Agency. 6. All legislation dffecting the utilities. (See 5.3.2. and 5.4.2.) 7. All recent regular budgeLary, financial or operating reports by the existing water and sewerage organizations. 8. Portions of the Area Master Plans for Port Said, Ismailia, and Suez and the Suez Canal Zone Regional Master Plan, especially those sections relatinq to the implementation and management of the development process. 5.3 MANAGEMENT STUDY AND PLAN 5.3.1 Outline of the Study The work outlined herein shall culminate in a Final Report on the Management Study recommending one or more programs for the staged development of the organizations or agencies needed to meet the current and future operational and management needs of the 'water and wastewater systems through the year 2000. The detailed portions of the studies and plans shall be restricted to the six cities of Cairo, Helwan, Alexandria, -30 ANNEX P Page 3 Suez, Ismailia and Port Said. The recommended management structures should, however, be flexible enough to accommodate future expansion and extension of service to new areas adjacent to the cities or to more distant areas that may be economically served by the systems under study. The Consultant is also expected to recognize two additional elements in his studies. Firstly, the recommendations that he develops will have implications in terms of national legislation and policies. Secondly, the recommended programs may form the model for utility management in other locations within Egypt. The Study and Final Report shall cover the following areas of concern, which are further detailed on the following pages 1) Organizational Environment 2) Organizational Structure 3) Personnel System 4) Procedures and Methods 5) Management Information System 6) Physical Assets 7) Data Processing 8) Organizationa I'Manual 5.3.2 Organizational Environment A. The Ccnsultant shall examine and report upon the legislative and regulatory bases of the agencies involved in the water and sewerage services of the six cities, their institutional position relative to the framework of the national and regional governments, and their relationship with other Government agencies. He shall examine Government administrative practices for tfe purpose of identify ing and detailing the modifications required to implement the recommended management plan(s) and to enhance the institutional capabilities of the existing agencies. -31 ANNEX P Page 4 8. The Consultant shall identify all external factors, legal or administra tve, which may affect decis!,Lns regarding the reorganization and/or unification of the water aid wastewater agencies, In this regard, the Consultant shall specifically consider the policies and programs of organizations within the Government responsible for the formulation and revision of administrative practices and procedures. 5.3.3 Organizational Structure A. The Consultant shall examine the policies, objectives and functions of existing utilities serving the six cities. B. The Consultant shall review and report upon the organizational structures of these same existing utilities, paying particular attention to: 1) Functional covarage to determine the extent to which all functions required by legislation and agency objectives are being performed. ii) Managerial appropriateness to determine whether the organization properly delegates authority and responsi bility, properly divides work and functional areas, facilitates coordination between divisions, permits exercise of appropriate direction and control and provides for self evaluation and improvement. C. The Consultant shall analyze and report upon the advantages and dis advantages, and the difficulties to be faced in implementing the following: i) Extending the "public utility" form of organization and management to all the water and wastewater utilities in six cities. This would cover not only the question of autonomous management (as in the case of the GOGCWS -32 Page 5 In this Special Report, the Consultant shall clearly separate recommendations Involving procedural changes, wholly within the power of AWGA to implement, -rom recommendations that require legislative changes for their Implementation. The Special Report shall be submitted withinfour months from the Starting Date of these studies. The MOHR will provide the Consultant with the comments of AWGA within A0 days from the date of submission. 5.3.16 Implementation of Recommended Changes in Procedures and Management Practices It Is Intended that AWGA shall adopt, at an early date, those revisions in procedures and management practices that are within its po.rer to implement (without legislative changes) . The purpose of this will be to provide a casa study of the effectiveness of :evisions recommended by the Consultant, which may be used to modify or substantiate proposals developed during the remainder of the studies. During the 30-day period following receipt of the comments of AWGA on the Special Report, the Consultant shall meet with the Chairman and staff of the Authority, reach a common understanding on the recommended changes to Le implemented and complete a supplement to the Special Report - setting forth the substance of this understanding and commonly agreed parameters for measuring the effectiveness of the changes to be instituted. Following completion of this supplement and continuing through the thirteenth month of these studies, the Consultant shall provide the services of a part-time advisor to AWGA who shall -51 ANNEX P Page 6 (a) Advise the staff of AWGA on the implementation of the agreed upon changes. (bj Review the progress of implementation. (c) Make such reviews and analyses as are necessary to determine the effectiveness of the changes that are implemented. The Consultant shall employ an internal reporting system that will insure that the findings and recommendations of the advisor on the modified planning, decision-making and control procedures of AWGA are incorporated into the Consultant's final recommendations or management systems in the Draft Final and Final Reports. -52 '4,; ANNEX P Page 7 .4 TARITF STUDIES 5.4.1 Purpoie of the Tariff Studies The purpose of the tariff studies is to prepare and recommend separate rate schedules or tariffs for potable and non-potable water supply services and ;C_ sewerage services. The tariffs or rate schedules shall produce gross annual revenues sufficient to : (1) cover all overhead, operating and maintenance expenses; (2) establish an adequate depreciation reserve; (3) provide debt service for the system i. provements and expansions proposed under the Waterworks and Wastewater Facilities Master Plans for each of the six cities; and (4) allow for contingencies. An alternative and additional computation of gross annual revenues shall be based on the principle that total revenues be sufficient to cover total operating costs, including depreciation charges, and provide no less than 6% return on investment. The Consultant shall consider "degressive rates" (a higher unit charge for greater use) where customers' ability to pay and other factors warrant consideration of such rate schedules. Several alternative rate schedules shall be prepared and the rationale for each set forth, but in all cases the total estimated revenues from any such rates shall app:oxtmate the total pro-forma revenue requirements, including revenues needed for debt service. Estimated revenue from the rates proposed shall reflect the Consultant's estimate of the impact of the rate changes on water use. Such adjustments shall be fully explained. 5.4.2 Review of Legislation The Consultant shall review existing Government legislation, decrees, policies and administrative practices which will affect the establishment or revision of service rate schedules. -53 ANNEX P Page 8 Governmental subsidies to water supply and sewerage services shall be identified and the Government's rationale for such shall be presented. Th,± form of these subsidies shall be noted, i.e., payments based upon the metered use of water through public fountains or in low income areas (explicit suDsldies) , payments made to cover overall shortfalls in revenues relative to capital and operating costs (implicit subsidies), etc. The Consultant shall identify any legislative or administrative constraints on the revision of rate schedules and recommend actions required to remove or overcome such constraints. 5.4.3 Sources of Data The basic data required for the cost of service studies shall be obtained, to the maximum extent practicable, from the accounting and other records of the utilities and from the cost estimates provided by the other consultants for proposed improvements. The utilities will provide clerical personnel to assist in obtaining cost and other data in cooperation with and under the general supervision of the Consultant. The Consultant shall provide the supervisory staff required to direct these efforts. In all cases, this Consultant will examine the consistency, relevance and reasonableness of the data provided by others and shall, it necessary,. adjust these data or collect additional data. It shall remain the sole responsibility of the Consultant to obtain or develop the ds.ta needed for completing all required studies. 5.4.4 Inventor, and Valuation of Property It is desired to provide th utilities with the future basis for main taining the Inventory and valuation records of all their property, classified in conformance to the guidelines recommended in the Uniform System of -54 ANNEX P Page 9 ACCounts for Class A Water and Sewer Utilities or guidelines of equal standard. The Consultant shall classify property and plant in accordance with such guidelines, and shall obtain the book cost of used and useful property and plant from accounting records to the extent that it is practicable to di so. If it proves impracticable to obtain the book value in this manner, the Consultant shall prepare estimates based upon - drawings and maps of the agencies - the results of the evaluations of the conditions of major components undertaken by the consultants for the concurrent related projects - actual inspection of facilities A detailed valuation is not considered feasible within the context of this study, but reasonable, approximae estimates of cost for major items of the facilities, plant and equipment currently in use are desired. For each system, two final estimates of the value of existing assets shall be prepared. One of these shall reflect, as nearly as possible, the cost at the time of construction (Historical Cost). The other shall be an estimate. of the current replacement cost of these facilities. Estimates of the cost of projected facilities will be obtained from the consultants engaged on the concurrent related projects in each respective city. 1 Master Plan proposals are expected to be available in draft form by the following dates Wastewater Facilities, Cairo & Alexandria - January 1, 1978 Wastewater Facilities, Helwan - February 1, 1978 Waterworks, Alexandria - August i, 1978 W.tp',orks, Greater Cairo - October 1, 1978 Sanitary Facilities in Suez Canal Cities - September 1, 1978 For Cairo Waterworks and the Suez Canal Cities, the Consultant may find it necessary to base his estimates on early data, developed during discussions with the responsible consultants, and recognize the tentative nature of these estimates. -55 ANNEX P Page 10 .4.5 Exlscjn Rates and Revenues The Consultant shall review the existing financial Policy and practice relative to service rate structures and schedules. He shall review these practices with respect to customer classification, cost apportionment, structures, rate such as flat or stepped rates, block rates, minimum billing, etc., and rate levels. He shall present an overview of the existing practices regarding re'venue generation, including subsidization, and identify problem areas. The Consultant shall identify all sources of ievenue currently to accruing the existing organizations, such as appropriations fro:m the Ministry Finance, of grants and subsidies, user charges, special assessments, service fees and others. He shall tabulate the relevant annual revenues received by the following organizations during each of the last three (3) years GOGCWS - Gross Annual Revenues AWG1 - Gross Annual Revenues SCA - Annual revenues accruing from water service and internal transfers to cover deficits from water service. GOSSD - Annual revenues from fees in the six cities and government appropriations allocable to service In the six cities, to the extent this is possible. GOWS - Annual revenues accruing from service within the present urban areas of the six cities or government appropriations to cover the cost of such service (if any). Governorates Annual appropriations to the Governorates of the Suez Canal Region for the provision of sewerage in Suez, Ismailia and Port Said. DRA Not to be considered. -56 ANNEX P Page i1 The tabulation shall show the revenues received from each identifiable source including sources not listed above but which the Consultant deems relevant. For the supply of potable and non-potable water, the Consultant shell review current policies and practices and analyze the sources and amounts of revenues in a manner which will facilitate subsequent preparation of revenue forecasts through the year 2000. Revenues from industrial or garde water supply shall be studied separately from potable water supply service. Income from sewerage services shall be considered separately from water services. Bill Analysis : The Consultant shall provide guidance in the collection of the basic data required, and shall prepare a complete water bill analysis covering customer usage for 12 months. The Consultant shall furnish MOHR the computer program(s) provided or developed for this work. 5.4.6 Gross Revenue Requirement The Consultant shall determine the annual gross revenue requirement as Annual gross revenue required by the existing organizations to cover the cost of water and sewerage service in the six cities in the years 1973 through 1977. Annual gross revenue requirement of each utility included in the selected organizational structure, or transitional structures, during the next ;.en years, P.us the years 1990 and 2000. This annual gross revenue requirement shall be comprised as follows Operating Expenses - The Consultant shall obtain from the respective agencies data on administration, operating and mainte nance expenses incurred during the year 1973 through 1976. The -57 ANNEX P Page 12 Jata on expenses shall, as far as is practicable, be broken to show down salaries and wages, electric Power, chemicals miscellaneous, and with separate items for maintenance and These data repairs. shall also be categorized to show separate the Principal costs for elements of each system, i.e., scurces treatment of supply, plants, Pumping stations, distribution system storage and facilities for water systems and simliarly for sewerage systems. Expenses pertaining to industrial or garden water supply for public and private use will also be classified according to principal elements. The Consultant shall obtain data on operating expenses future years from during the consultants on the concurrent related He shall check studies. these data for completeness and consistency historical with the pattern of costs and modify them as necessary selected to fit the organizational structure and transitional structures. Depeciation Rates and Reserve,- The Consultant shall determine and recommend proper depreciation rates based on an analysis useful service of the lives of various depreciable property units in Derivation of depreciation service. rates shall be fully explained. Depreciation rates so developed shall be applied to existing facilities to be which are inventoried and valued in the manner described above and also to proposed new facilities. The Consultant shall appropriate determine an depreciation reserve for use in determining return, a reasonable for inclusion in each pro-forma expense statement for rate making purposes. -58 ANNEX P Page 13 data Debt Servicing Based upon his analysis of financial relative to obtained from the MOHR and the respective agencies the current Indebtedness and future financial planning concerning facilities, proposed expensions of water supply and wastewater for the Consultant shall forecast annual budget requirements of the proposed servicing the debt of the existing organizations and utilities through the year 2000. Contingencies - The Consultant shall determine reasonable budget requirements to cover contingencies, seasonal fluctuations in servicf, demand and anticipated escalation of operacing costs. 5.4.7 Gross Revenue Requirement - Alternative Computation The Consultant shall also determine the gross annual revenue require- ment of the respective organizations for the years stated in Section revenues 5.4.6 on the basis of the following principle : that gross annual shall be sufficient to cover total operating costs, including depreciation charges, and provide no less than 6% return on investment. Return on investment shall be competed by dividing the operating surplus (before long-term interest charges) by the average value of fixed be assets in operation during any particular year. This average value shall based upon the current replacement cost of existing facilities. 5.4.8 Allocation of Gross Investment in Plant for Rate Making Purposes The Consultant shall allocate investment in fixed assets on the basis among of the following major functions, which, in turn, can be allocated fire customer groups : production, commodity and directly assigned (e.g. et:. protection, general services, irrigation, industrial waste, administration, -59 ANNEX-P--- Page 14 Th. Consultant may substitute terms or subdivide the above if the functions listed proposed use of such terms is fully explained. shdll be applied The allocation to the gross investment in used and useful property, as follows : (a) Existing assets as valued (b) Additions proposed in the Master Plans prepared by the other consultants (Section 4.0) (c) Additions proposed by the Consultant under Section 5.3.8 Consultant shall apportion fixed charges including depreciaton allowances on the basis of the above allocations. 5.4.9 Allocation of Ex enses for Rate Making Purposes The Consultant shall also allocate expenses determined in Section for each year, 5.4.6, to functions. as These expenses shall to production expense, be allocated commodity expense, general expense, assigned expense, directly or such other functions as the Consultant The may fully total amount allocated explain. to each function shall in turn customer classes be allocated to on the basis of responsibility for such from a customer expense as determined analysis to be performed by the Consultant. All will be fully explained of the above by the Consultaht so that future analysis will be facilitated. 5.4.1O Evaluation of Existin RateSchedules Based on his review and analysis of the existing rate schedules future revenue requirements and the Consultant shall evaluate existing tariffs. the adequacy of Consultant shall also determine existing rates by comparing inadequacies in revenues from customer classes with assigned service as determined cost of by Consultant. Consultant shall also report on the adequacy investigate and of the existing rates, plus other income, to equal fore cast revcne requirements. -60 ANNEX P Page 15 5.4. Cidssitlcatlon of Customers The Consultant shall recommend an appropriate customer classification system which recognizes the various groupings useful for rate making purposes. The classification should include for example Residential, Commercial, Industrial, Institutional, Governmental, Public Fire Protection, Private Fire Protection, Fountain Service, Irrigation and others as may be found appropriate. For at least one tariff schedule, the Consultant shall provide classification a of residential users by Income group, or a reasonable surrogate. A classification based upon average rents within a given census area (shiaka) is illustrative of the type of c, ssification tinat micht be used. One that would require determin~itions of indivilual incomes would not be deemed appropriate. The Consultant shall fully support and document any recommended revisions to or modification of the existing classification system. 5.4.12 Recommended Tariff Schedules The Consultant shall recommend a comprehensive tariff system, covering all services, and includL,.g demand rates, services charges, use rates, special assessments and others, as appropriate; plus rules covering conditions of service with appropriate penalties for noncompliance. In preparing recommendations, his the Consultant shall set forth alternative tariff scheduies (based upon service or value received, general income level, etc.) and provide Justification for his recommended approach including an explanation of methods used to determine the level of rates recommended. He shall fully support degressive rates (if recommended), with the reasons for such rates. There may be adjustments to allocate government subsidies as required by law. least At one of the alternative tariff schedules shall, howevar, be based upon -61 ANNEX P Page 16 uniform rates for both private and government users and uniform throughout each rates city for a given classification of users. All schedules be ased upon the shall Principle of fully satisfying the gross annual revenue reqPire ment established in Section 5.4.6. The Consultant shall investigate the feasibility and advisability using a "cost adjustment" of clause in tariff schedules, automatic which would provide adjustment of rates for by operation of a formula Consultant. designed by the It would be thus intended that changes factors, in price of various cost such as fuel or energy used for Pumping water result or wastewater, would 1h a corr3sponding change in the rate for se-vice to the utility's customers. Rate schedules sh,.:i be so designed that they can be placed stages. The interim in effect In period would extend from 1979 through no Thus, by 1984, later than 1983. at the latest, gross revenue requirements would The Consultant be fully met. should discuss the implementation including of such interim rates, the possibility of increasing rates to some groups, customer classes or while holding other customer groups (i.e., low income groups as indicated in Section 5.4.11) at or near the present rate level. The Consultant shall also set forth a policy collection, for the recovery of wastewa'ter treatment and disposal costs. He shall recommend surcharges to be applied the level of to wastewater customers who discharge wastes sewers that Into the require special treatment. He shall include in the rules as may be tariff such needed to require pre-treatment of sewage by the customers in specified situations. -62 ANNEX P Page 17 5.4.iJ Financia[ Analvsis Utilizing the data developed as specified in the preceding sections, the Consultant shall prepare pro-forma financial statements for the existing water and wastewater organizations for the years 1973 through 1977 and for each uti!ity in the selectee organizational structure (or transitional structure) for the next ten years plus 1990 and 2000. Pro-forma statements for future years shall be based upon the Consultant's recommended tariff schedules, including interim schedules where appropriate; except that state ments shall also be prepared for one landmark year, using existing schedules, in order to provide a comparison with the recommended schedules. Pro-forma statements shall include statements of revenue accounts, cash flow statements (sources and applications) and balance sheets. These statements should adhere to accounting standards equal to those recommended in the Uniform System of Accounts for Class A Water and Sewer Utilities. The derivation of data used in the pro-forma statements shall be fully documented. The Consultant shall obtain information on unaccounted-for water and the reasons for any excessive amounts of such water from the reports of the consultants engaged on the concurrent related studies. He shall consider the procedures set forth by others for reducing the volume of unaccounted-for water to reasonable levels and the pro-forma revenue statements should reflect the impact of such reductions upon estimated sales and estimated operating expenses. 5.4.14 Metering The Consultant shall consider the water meter studies being conducted by the ot.her consultants and their evaluation of installation, maintenance and control of these meters. The Consultant shall design a meter-testing program that is applicable to each utility and will assure metering of customer use. The Consultant shall investigate metering of individual apartments as opposed to -63 ANNEX P Page 18 coibined metering and, If found feasible, make recommendations metering all customer for units, such as apartments units and small commercial (which units shall be clearly defined). include The Consultant shall, in the rate schedules however, for general service multiple a reasonable means units on one of billing meter. These rates shall have the objective the cost of service of equalizfn. to each unit, when compared to metered dwelling or service to other unir, and with a single the further objective tion of encouraging of water by means conserva of prompt plumbing repairs and other Consultant shall measures. The fully explain how sewer service may any recommendations be metered, including based on the use of water meter readings as an approximate measure of sewage volume. 5.4.15 Interim Reoart on the Tariff Stud' (10 months) The Consultant shall submit an "Interim Report on This report shall the Tariff Study". describe the work Performed and the and shall Include conclusions reached a proposed tariff schedule for each necessary, of the utilities these tariff Where schedules shall appropriate include increases times in. in rates at the future, as required to meet the ments of debt service the proposed capital require program. The schedules implementation of shall be these tariff discussed in the Report and an implementation plan shall be presented. The Interim Report on the Tariff Study shall be submitted as prescribed in Section 6.5. 5.4.16 Draft Final Reoton the Tariff Stud (13 months) Taking into account the comments received from the Interim Report MOHR and others on the Tariff Study on and the other consultant's Consultant shall reports, the submit a Draft Final Report, further refining the work included -64 ANNEX P Page 19 in the Interim Report. The Draft Final Report on the Tariff Study shall be submitted as prescribed In Section 6. 6. 5.4.17 Final Report on the TariffStuclv Taking Into account the comments received on the the Consultant Draft Final Report, shall submit a final Report as prescribed in The Consultant Section 6.7. shall submit with this Report, the material developed valuation used for to establish the rate base for each utility, bound separatel, In suitable volumes as specified in Section 6. 7. This Final Report shall take into account the Final Reports of the other consultants. -65 ANNEX P Page 20 and AWGA) and the powers delegated to this manage ment but also questions of capital structure, bonding powers, ability to seek external financing, etc. ii) Combining some or all of the water and wastewater utilities along geographical or functional lines. iii) Other organizational alternatives which would allow the agencies, merged or separate, to better perform their functions. iv) Establishing one or more regional or national agencies for: setting policies and standards; financing or allocating financing among utilities; providing common services needed by all water and wastewater utilities such as procurement, training, administration, accounting, bill ing, computer services, etc. ; and/or operating the utilities. Some of the above would be compatible with the "public utility" concept while others could be carried out only under an alternative form of organization. 5.3.4 Interim Report - Covering Orcaanizaton Environment and Structure Within six months from the Starting Date of these studies, the Consultant shall prepare and submit, in the manner prescribed in Section 6.4, an "Interim Report on the Organizational Environment and Structure of Water and Wastewater Organizations, " which shall include a discussion of the information gathered and the results of the anlyses performed in accordance with Sections 5.3.2 and -33 ANNEX P Page 21 5.3.3 above. This Interim Report shall also develop and discuss the advantages and disadvantages and the feasibility (paying particular attention to the practical aspects of implementation) of at least the following plans: - Plan A. Improvement of the existing organizations under the existing legislation. - Plan B. Establishment of new or modified organizations under the existing legislation. - Plan C. Improvement of th3 existing organizations under new or modified legislation. - Plan D. Establishment of new or modified organizations under new or modified legislation. In this Interim Report, the Consultant shall state his recommendations on the Plan set forth and the form or organization that appears to him to be the most feasible and advantageous, and shall discuss the staged imple mentation of his recommendations. In developing and analyzing alternatives, the Consultant shall emphasize those alternatives whtch will allow the utilities the appropriate degree of autonomy, financial independence and self-supported growth. The organizational structure recommended for each utility should specifically define, on a department by department basis: responsibilities and authority; basic functions; interrelaticnships of such functions; coordination with other departments; and general procedures for the discharge of duties. Within 45 days after receipt of this Interim Report the MOHR will approve, partially or conditionally approve, or disapprove the Consultant's -34 PageANNEX 22P recommendations and report. Should the report or recommendations be disapproved, or be only partially or conditionally approved, the Consultant will be furnished a written statement of the reasons for less than full approval and the Consultant shall immediately restudy, revise or modify the material as necessary to produce a report that is acceptable and will receive the MOHR's written approval. Fifteen days will be allowed for revision of the report, if necessary. This will be done in parallel with the Consultant's continuing work. The MOI-iR approval will identify the organizational structure for which the Consultant shall design the managerial and administrative systems described in Section 5.3.5 through 5.3.10. Approved copies of the revised report will also be submitted in the manner and numbers prescribed in Section 6.0. Should the MOHR fail to : approve, partially or conditionally approve or disapprove the Consultant's recommendations and report within 45 days after receipt of such report, the Consultant may continue with the Study using the plan set forth and the form or organization that appears to him to be most feasible and advantageous, as discussed in the report. 5.3.5 Personnel System A. The Consultant shall review and analyze the existing personnel systems including, but not necessarily limited to, the procedures for recruitment, selection, assignment, training, performance evaluation, promotion, discipline, transfer and separation of employees and pay schedules. B. The Consultant shall make a qualitative but reasonably detailed review of the effectiveness with which personnel are used at the operating, technical and managerial levels. Of particular concern are the following : -35 ANNEX P Page 23 (I) Are employees, particularly at the lower levels, aware of the purpose of the agency and their own role within it? (i4 Are the tasks of employees adequately defined by the agency? (Il) Are these tasks explained to and understood by the employees? (iv) Are tasks appropriate to the Positions of the employees and to their backgrounds? (v) Is work properly schediu.led? (vi) Is there adequate supervision to ensure fulfillment of the employees' tasks? Interviews with a limited sample of employees at the various levels may be undertaken with the full approval of the agencies involved and with strict regard to any requirements of confidentiality. C. For the organizational structure selected, the Consultant shall design a personnel system for each utility including at least those items mentioned In paragraph A. above. The personnel system shall be consistent with the Government policies for employment in the public sector unless the utilities are specifically exempted from such policies by laws recommended by the Consultant and accepted by MO-IR 1 and which have a high Probability of being enacted. D. For the selected organizational structure, the Consultant shall recommend the number and type of personnel needed within each utility, paying due attention to local conditions. The levels of skill, training, experience, etc. required for the various types of personnel shall be clearly stated. In the case of Alexandria, the MOHR expects to secure the agreement of AWGA. -36 ANNE,:Page 24 P E. The Consultant shall compare the staff of the existing organizations with the staff required for the proposed organizational structure. He shall evaluate the sufficiency of existing staffs, for meeting the need of the proposed structure, Identifying shortages and surpluses. He shall prepare a 10-year (or other suitable period) staffing plan for each proposed utility which will set forth means to eliminate these shortages or surpluses, including recommended methods for implementing it within the context of the management plan and reflect the system expansions recommended in the Waterworks and Wastewater Facilities Master Plans. F. For the staffing plan prepared for each utility, the Consultant shall set forth a long-term training program. This program will cover the following - management functions - operational procedures - maintenance procedures The purpose of these training programs will be a) to instruct personnel of each utility in the concepts and specific applicability of the revised duties, methods, techniques and procedures advanced by this Consultant in response to Sections 5.3.5 through 5.3.10; and b) to insure that methods and techniques recommended and prepared by the other consultants are, in fact, transmitted to the utility's personnel. (Course content for this latter group will consist of materials prepared by the other consultants. This Consultant is not expected to consider this material in greater detail than is necessary to structure the courses). ANNEX P Page 25 The traiining program will include, for each course of instruction established, an outline of the material to be covered (including references, sources and standard manuals) and an outline curriculum. In addition, the Consultant will make recommendations on possible participant training programs in the U.S. and elsewhere, taking into account training programs supported by the U.S. Agency for International Development. This participant training program shall be limited to personnel in the management and professional levels. The Consultant shall prepare an estimate of the local and foreign costs of the long-term training program set forth for each utility. This estimate of cost shall Include at least the following items - Instructors - Instructional materials - Classroom space - Administrative costs - Costs of overseas training programs, including travel, subsistence and curriculum costs, as obtained front appropriate International agencies. G. Based on the analyses of paragraph A and B above, the Consultant shall recommend improvements that can be made to the present personnel systems of each of the existing organizations during the interim period until the new organizational structure selected is Implemented. 5.3.6 Procedures and Methods A. The Consultant shall review and analyze the existing procedureu and methods employed In the water and wastewater utilities to accoutplish the given work in at least the toliowIng tunctional areas -383 Page 26 (I) Project planning, including project analysis, prog'am ming, budgeting and the monitoring of performance against objectives. (i±) Operation and maintenance of the waterworks and wastewater systems. (iil) Billing and collecting including : meter reading practices; te-rting meter performance and rotating or replacing meters; meter repair; billing techniques and the flow of activities involved in bill preparation; procedure followed in collecting; general effectiveness of collections; and policies for adding or discontinuing accounts. (iv) Procurement and inventory control, inc-luding the physical locations of the main and subsidiary stores; the laws governing procurement and the practices followed in under taking to purchase, receive, store, issue and control the inventory (e.g. inventory levels, determination of reorder levels and size of orders, associated record-k eeping, etc.) of materials, spare parts, and other supplies. (v) Mapping and record-keeping relative to the physical plant and !istribution/collection systems, including as built drawing., location drawings and listing oi valves, hydrants, etc. Review shall be made of the sequence established for various wurk elements and the manner in which work Is assigned and controlled. Consistent with his work as outlined in Section 5.3.5, the Consultant shall also review skill utilization, work methods, work measurements, work standards, tools and equipment. (Except as noted, it is intended that the Consultant concentrate on the manner in which methods and procedures are chosen, implemented and controlled. The more detailed, technical contents of the pi'ocedures and methods need be dealt with only to the extent that they generally affect the efficiency and effectiveness of the organization). -39 ANNEX P Page 27 selected, the Co.nsultant . To support the organizational structure shall recommend procedures and methods for each utility, covering no fewer than the functional areas and items described in ptragraph A. above and considering the points discussed below. The planning procedures shall include systems for long range planning covering ten years into the future; with annual updating and extension of the planning period. In designing the inventory system for each utility, the Consultant shall give consideration to a system that includes, inter alia, bin cards, order and requisition forms, summary sheets and master files, and to having these in a form which is readily convertible to computer processing. The Consultant shall specify the basis which should be used for determining minimum and maximum inventory levels and lot sizes or orders for frequently consumed items and set forth procedures to optimize the size of the inventory. In designing new billing and collecting procedures, the Consultant shall give consideration to : distribution of the workload in the billing departments; billing the individual customer rather than the building or other multiple-unit (with or without separate metering); minimizing bills under collection or in arrears; use of computers; and making the best use of data for financial or other studies, especially water consumption studies. In designing the systems of mapping and record keeping for the physical plant and distribution/collection systems, the Consultant shall investigate the requirements for and the feasibility of using a micro-film system for drawing storage and retrieval. ANNEX P Page 28 C. 'or each of the existing organizations, the Consultant shall )ecommend improvements based on the analyses and recommenda tions above that can be made to the present procedures and methods, In at least the functional - -,asdescribed in paragraph A, during an interim period until the new organizational structure selected is implemented. 5.3.7 Management Information Systems A. The Consultant shall review and analyze the existing management information systems, including at least all formal reports, budgets, statements of accounts, tabulations of operating data, documents pertaining to new projects and informal channels of communication if they are significant. B. For each utility under the organizational structure selected, the Consultant shall develop a comprehensive but simple and flexible management information system, which will provide timely adequate and information to the various levels of management to facilitate decision-making and proper operational and budgetary control. The system shall be designed to permit timely evaluation of the utility's performance relative to physical work accomplishment, i.e. capital projects and the operation and maintenance of facilities, and relative to financial expenditures vs. revenue generation. The information systems shall include, but not necessarily be limited to : (I) Periodic reporting from well-.defined responsibility centers, acting through the channels of accountability specified in the organization structure, which will permit systematic mo.tdtoring of actual financial performance and operational (or other non-financial) performance and comparison to objectives and budgets. Forms, contents and routes of these reports are to be fully specified. Financial reports shall be designed to distinguish between coaitrollable and non-controllable costs. -41 Page 29 (11) A budgeting system, including a capital budget and an overall operating budget, comprised of more detailed sub-budgets for the various departments, emphasizing controllable costs. (iii) A systern of accountinj to Provide the data needed prepare financial statements, to such as revenue accounts, cash flow statements and balance sheets, and to deter mine rates (Section 5.4). Procedures for the evaluation and depreciation of assets should be included. (See Sections 5.4.4 & 5.4.6). This system shall be consistent with the Egyptian Standardized Accounting System (E.S.A.S.). (iv) A data collection system that will collect, record and preserve data required for planning the capital budget and establishing the operating budgets, plus planning data needed for the ten-year plans. (Set, Section 5.3.6). (,) A data collection system that will supply the cost accounting data required : (a) to monitor the actual per formance of each responsibility center; (b) Lo provide cost data on responsibility center operations prior to allocation of costs to production or other areas; and (c) to provide cost data and statistics on unit and total cost of production. The cost accounting system shall be designed to supplement the Egyptian Standardized Accounting System (E.S.A.S.). C. For each utility the Consultant shall also develop an information system for top-level management. This system shall consolidation consist of a of selected data, which are to be submitted at reporting intervals regular and provide a complete, timely and definitive picture of the financial and operating status of the utility. -42 Ai EX P Page 30 U. For each of the existing organizations, the Consultant shall recommend improvements based on the analyses of paragraph A above that can be made to the present management information sys.ems in the interim period until the new organizational structure selected is implemented. 5.3.8 Physical Assets A. The Consultant shall review and analyze the physical assets of the existing organizations (exclusive of the water and sewage treatment plants, pumping stations, and distribution/collection systems), that are either in use or available for use, with respect to their impact on the functioning of the existing organizations. The assets studied shall include, but not necessarily be limited to : buildings or other space (offices, warehouses, storage yards, etc.); office supplies and equipment, supplies and equipment for operation and maintenance; communication facilities and transport. The Consultant shall review the locations and general layouts of the facilities and the general suitability and adequacy of the amounts and types of equipment hnd supplies. It is intended that this Consultant concentrate on the utility and adequacy of the physical assets included in this paragraph in so far as they affect the management, administration, and functioning of the utilities. B. The Consultant shall also review and analyze the policies and prac tices followed in controllhlig and maintaining the physical assets included under paragraph A, covering at least the following areas It is expected that the engineering consultants on the concurrent related projects will have studied and reported upon the physical assets required for technical operations. It is not intended that this Consultant duplicate these efforts nor is it intended that he inventory or itemize tLe physical assets in greater detail than is necessary to complete the approximate valuation of assets referred to in Section 5.4.4. -43 ANNEX P Page 31 of concern - Keeping of records relating to the assets - Scheduling of regular preventive maintenance - Decision making regarding repair versus replacement - Acquisition and disposal practices C. The Consultant shall recommend the approximate amounts and general types of physical assets, of the kinds mentioned in paragraph A above, required to properly support the organizational structure selected during the next 10 years, and policies practices and to be followed in controlling these physical assets. estimate An of the cost of the additional assets required, of the included kind in paragraph A, shall be prepared. This shall approximate be an estimate, suitable for inclusion in the overall valuation of future assets referred to in Section 5.4 of these Terms of Reference. D. Based on the analyses of paragraphs A and B above, the Consultant shall recommend improvements that can or should be made present in the levels or types of physical assets, plus the policies practices and used in controlling these physical assets, in the existing organizations during the Interim period until the new organizational structure selected is implemented. 5.3.9 DataProcessing A. The Consultant shall review and analyze present methods of processing data in the existing organizations, including but not necessarily limited to methods of processing data on the following types - Cost accounting - Control of costs versus budgets - Financial reporting - Inventory records - Customer accounts and billing - Statistical analyses -44 ANNEX P The Consultant shall include in the study the use that is made, Page 32 or could Yeasonably be made, of electronic data Processing equipment. In this Study, the Consultant shall consider possible use of this equipment for technical programs, as these may be prepared by other consultants or, in the future, by the agencies. B. The Consultant shall, after careful consideration of local conditions, recommend data processing methods and equipment to support the organizational structure selected. C. Based upon the analyses above, the Consultant shall recommend improvements that can be made to the present data processing methods of the existing organizations during the interim period until the new organizational structure selected is implemented. D. Based on the existing or recommended extent of computer use by either the existing or new organizations, the Consultant shall determine and report on the advantages and disadvantages of the following: (I) A data processing center to bo used Jointly by all water and wastewater utilities; (ii) A data processing center for each utility or group of utilities; (ill) Other possible arrangements, involving common programs, joint use with other agencies, use of outside data processing services, etc.; (iv) Ownership of computers vs. leasing; and shall state his recommendations. The Consultant shall Identify the general computer facilities that are needed, including central processing unit, memory, input/output devices, peripheral equipment and mode of operation. The Consultant shall take Into consideration the capital and operating costs of alternative systems and the existing regulations governing the use of computers by public enter prtses. The possibility of renting excess in-house computer time to outside users shall be explored and evaluated. -45 ANNEX P Page 33 5.3.10 Grganization Manual For the organizational Structure selected, the Consultant shall prepare an Organization Manual with separate sections on each utility, containing, but not necessarily limited to, the following: (I) Organization charLs for the utility, showing lines of responsibility and recommended staffing level broken down by type of skill. (i) A definition of the objectives and functions of each department. (11) Job description for each category or class of key jobs, includ ing at least work content, qualifications required, accounta bility, and relative wage or salary rates. (Wlth respect to the last item the Consultant should make recommendations concerning the actual levels of wages and salaries, noting those needed to attract qualified personnel. It is recog nized, however, that wage and salary levels for all Government personnel are governed by other considera tions well outside the control of MOHR). 5.3.11 Interim Report - Covering Management Systems (10 months) Within ten months from the Starting Date of these studies the Consultant shall submit an "Interim Report on Management Systems" covering the material discussed in Section 5.3.5 through 5.3.9 and an outline of the Organizational Manual discussed in Section 5.3.10. The management plan proposed in the Interim Report on Management Systems shall be designed for the organizational structure selected. The Interim Report on ManagementSystems shall also include the Consultant's recommendations on the improvements to present systems (in the existing organizations) that can be made during the period until the selected organizational structure is implemented. These recommended -46 ANNEX P Page 34 systems (in the existing organizations) that can be made during the period until the selected organizational structure is implemented. These recommend&d imp ,vements shall clearly state the actions that should be taken, by which persons or organizations, and the intended and expected results, but the recommendations need not be as detailed as the systems designed for the selected organizational structure. As far as it is practicable, the recommended improvements should build towards the systems designed for the selected organizational structure and should be compatible with them. The Interim Report on Management Systems shall be submitted in the manner and numbers prescribed in Section 6.5. 5.3.12 Draft FinalReport on the Management Study (13 months) Taking into account the comments received from MOHR and others on earlier reports, and other consultant's reports, the Consultant shall submit a Draft Final Report as prescribed in Section 6. 6. This report shall the present accepted organizational structure and management plan, including management the systems and the organization manual for the approved structure, and the recommended improvements to systems currently in force in the existing organizations. 5.3.13 Final Report on the Management Study (16 months) Following receipt of comments or the Draft Final Report, the Consultant shall submit a Final Report as prescribed in Section This 6.7. Final Report shall take into account the Final Reports of the other consultants. -47 Page 35 5.3.14 Early Study of Management Procedures Applicable to the Alexandria Water General Authority In order to fulfill requirements of the Alexandria Water General Authoi-,. (AWGA) which are tied to a potential loan from the International Bank for Reconstruction and Development (IBRD), the Consultant shall complete certain elements of the management study, as they apply to AWGA, In ac arc of the remainder of the study. To facilitate this work, the Consultant w l, bt: provided with a copy of the Appraisal Report (dated February 8, 1977), pr i.?ar'2, by the staff of the IBRD. The Consultant shall familiarize himself thorough.i./ with this document. Specific elements of the management study which are to be completed in advance include the review and appraisal of the existing planning, decision making and control procedures of AWGA and the preparation of recommenda tions for improvement of these procedures. In his appraisal, the Consultant shall pay specific attention to the following points : (a) whether adequate machinery exists for defining the objectives of the Authority's future operations, for undertaking the planning necessary to achieve these oojectives and for quantifying the results expected; (b) whether responsibility for the implementation of the Authority's plans is clearly assigned and whether those to whom this assignment is made clearly understand what is expected of them; (c) the extent to which decision-making is delegated to the lowest level commensurate with the maintanance of adequate overall control; ..48 ANNEX P Page 36 (d) the ability of the statistical, operational and financial information systems to provide managers at each level with timely, accurate and pertinent Information for the Purpose of monitoring the performance of the Autho.-ity relative to its objectives; (e) the adequacy of existing personnel procedures relating to staff motivation and evaluation, particularly : (1) the selection and quantification of performance standards for each job classification; (H1) the methods for evaluating the performance of each Job holder and rev -owing the results with him; (iii) promotion policies and the procedures for identifying and selecting candidates for promotion; (iv) the use of incentives (monetary or otherwise) to encourage good performance; and (v) other means which are used or may be used to improve staff morale; (f) whether technical or other training needs are systematically reviewed and whether facilities (in-house or elsewhere) are adequate to meet these needs. In developing recommendations for improving current management procedures systems in AWGA, the Consultart shall consider the results of his review of points (a) through (f) above and shall prepare recommendations specifically addressing the following : (a) Procedures for preparing annual budgets, which are currently prepared only at the Authority level, in a manner that will provide separate departmental budgets defining the expenditure limits that apply to each responsible manager for the forthcoming financial year. -49 ANNEX P Page 37 () A system of financial control that will () Separately establish the costs of each identifiable part of the Authority's operation (i.e., the operation of Individual treatment works). (11) Establish periodically the costs incurred by each depart ment so these may be compared with the departmental budgets described in (a) above. (iti) Separately identify the levenues, costs and profit or attributable loss to serving each major geographica[ area of supply or class of consumer. (c) Improvem-3:.ts in the current management information systems will insure that that the reports and data provided to management perscnnel at the various levels are timely, accurate for and adequate each respective manager to carry out his assigned duties and for the monitoring of the Authority's performance. (d) Improved personnel procedures for enhancing the Performance motivation and of the Authority's personnel. In Preparing his tions, the Consultant recommenda shall give due consideration to national governing public Policies sector employment and shall recommend Procedures which, within the constraints of these Policies, mum will provide maxi incentives for staff members whose performance is above normal. 5.3.15 SpecialReoort-onManaement Proceduresin the AlexandiaWaterGeneral Authort months) At the conclusion of the above study, the Consultant shall Special Report which prepare a C, sets out the results of his review, as detailed and contains recommendations above, on the improvements in the management procedures of AWGA that he deems necessary. This report should a section identifying also contain any urgent training needs and the Consultant's recommendations on how these needs may best be met. -50