Document of - The World Bank
FOR OFFICIAL USE ONLY
Public Disclosure Authorized Report No- 5452a-AL Public Disclosure Authorized
ALGERIA
NATIOKALWATER SUPPLY AND SEWERAGEPROJECT
Public Disclosure Authorized STAFF APPRAISAL REPORT
May 10, 1985 Public Disclosure Authorized Water Supply and Sewerage Division Europe, Middle East and North Africa Regional Office
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCREQUIVALENTS (As of October 31, 1984)
Currency Unit = Algerian Dinar (DA) = 100 Centimes DA 1 = US$ 0.20 USl1 = DA 5.00 DA 1,000.000 = US$ 200,000
ABBREVIATIONS
ft = foot m = meter ha = hectare mm = millimeter Km = kilometer Mm3 = million of cubic meters inh = inhabitant m3 /sec = cubic meters per second lcpd = liters per capita per day min = minute
MEASURES AND EQUIVALENRTS
Metric System U.K. System
Kilometer (km) = 0.62 mile (mi) Hectare (ha) = 2.47 acres (a)
Meter (m) - 3.28 feet (ft) Cubic meter (mJ) = 220 gallons (g) Million cubic meterslyear (Mm3 /year) = 0.603 million gallons per day (mgd) Liter (1) 0.220 gallon (g)
Liter per second (1/sec) - 19,000 gallons per day (gd) Kilogramfcm = 0.981 Bar Milligram/liter (mg/l) 0.0703o (grfg)
GLOSSARY OF ACRONYMS
DGAC = Direction Generale de l'Animation et du Controle des Entreprises DGE = Direction Generale de l'Exploitation DGIH = Direction Generale des Infrastructures Hydrauliques DGPE = Direction Generale de la Planification et des Etudes d'Amenagement DWH = Direction de la Wilaya d'Alger Chargee de 1'Hydraulique EPEAL = Entreprise de Production, de Gestion et de Distribution d'Eau d'Alger EPECO = Entreprise de Production, de Gestion et de Distribution d-Eau de Constantine EPEOR = Entreprise de Production, de Gestion et de Distribution d'Eau d'Oran MHEF = Ministere de l'Hydraulique, de lVEnvironnement et des Forets SEDAL = Societe des Eaux de l'Agglomeration d'Alger SONADE = Societe Nationale de Distribution d'Eau Potable et Industrielle SNC = Societe Nationale de Comptabilite WHO = World Health Organization
EPEOR/EPECO's FISCAL YEAR
January 1 - December 31 FOR OMCIAL USE ONLY ALGERIA
NATIONAL WATER SUPPLY AND SEWERAGE PROJECT
STAFF APPRANIAL REPORT
Table of Contents
t Page No.
LOAN AND PROJECT SUMMARY ......
I. INTRODUCTION...... 1
II. THE WATER SUPPLY AND SEWERAGE SECTOR...... 2
Background ...... 2 Water Resources ...... 3 Sector Organization ...... 4 Service Le-vels...... 4 Constraints to Sector Development...... 5 Investment Program in the Sector ...... 5 Previous Bank Loans in the Sector. 6 Rationale for Bank Involvement. 6
III. THE PROJECT AREA. 7
General Features. 7 Existing Production Systems. 7 Water DistributionNetworks. 8 Existing Sewerage. 9
IV. DEMANDAND MARKETASPECTS. 9
Jurisdiction...... 9 Production and Consumption...... 10 Composition of the Demand .10 Future Water Consumption.11
V. THE PROPOSED PROJECT. 1
Project Genesis and Concept .11 Objectives of the Project.13 Project Description.13 Cost Estimates.14
This report was prepared and written by Mr. Fritz Rodritez and Mr. Nabil Shehadeh.
IThisdocument has a resticted distrbution and may be used by recipientsonly in the performanceof tbei ofica dutis.ts contents may not otherwise be disdcd withoutWorld Dank authorization. Table of C<.tents (CAntinmed)
Page No.
Project Execution ...... 16 Project Financing ...... 17 Reimbursement of the Government ...... 17 Procurement ...... 17 Disbursement ...... 19
VI. PROJECT IDPLEMENTATIONAND OPERATION ...... 19
Executing Agency ...... 19 Operation and Maintenance ...... 20 Management Assistance ...... 20 Reporting ...... 21 Project Accounts and Audit ...... 22
VII. THE BENEFICIARIES ...... 22
Background ...... 22 Organization and Management ...... 23 Staffing ...... 23 Training Program ...... 23 Billing and Collection ...... 25 Accounting System ...... 25 Audit ...... 25 Insurance ...... 26
VIII. FINANCIAL ANALYSIS...... 26
Present Financial Situation ...... 26 Revenues ...... 26 Financial Performance ...... 27 Financing Plan ...... 28 Future Financial Performance ...... 30 Monitoring System ...... 30
IX. PROJECT JUSTIFICATION ...... 30
Objectives of the Proposed Investments ...... 30 Technological Aspects ...... 31 Economic Acceptability ...... 31 Affordability.32 Environmental Impact of the Project.32 Institution Building .32 Risks ...... 33
X. AGREEMENTS REACHED AND RECOMMENDATIONS ...... 33 Table of Contents(Continued)
LIST OF ANNEXES
Annex No.
1 Service Levels in Urban Areas in Mid-1981 2 Water Sales by EPEOR in 1984 3 Water Sales by EPEOR in 1985 4 Water Sales by EPEOR in 1986 through 1991 5 Available Production in Areas Served by EPECO 6 Constantine Subproject - Water Demand in Project Area 7 Forecast Retail Water Sales by EPECO 8 Forecast of Water Demand and Sales in Project Area 9 Oran Subproject - Forecast of Population and Number of Connections 10 Detailed Cost Estimates 11 Annual Project Investments 12 Bar Chart of Construction Schedule 13 Estimated Schedule of Disbursements 14 Organization Chart of the Ministry of Hydraulics 15 Terms of Reference for Organization, Management, Tariff and Financial Studies 16 Interim Organization Charts of EPEOR and EPECO 17 EPEOR - Income Statements, Balance Sheets, Sources and Applications of Funds - 1984-1991 18 EPECO - Income Statements, Balance Sheets, Sources and Applications of Funds - 1984-1991 19 Assumptions for Financial Analysis 20 Monitoring Indicators 21 Cash Flow for Calculation of the Economic Rate of Return 22 Distribution of Annual Expenses by Households in the Project Area 23 Selected Documents and Data Available in the Project File
Map No.
18687 Water Utilities' Service Areas 18688 Oran Subproject - General Layout of the Proposed Facilities 18689 Constantine Subproject - General Layout of the Proposed Facilities DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA
NATIONAL WATERSUPPLY AND SEWERAGEPROJECT
LOANAND PROJECT SUMMARY
Borrower: Democratic and Popular Republic of Algeria
Beneficiaries: Entreprise de Production, de Gestion et de Distribution d'Eau d'Oran - E.P.E.O.R. Entreprise de Production, de Gestion et de Distribution d'Eau de Constantine - E.P.E.C.O. Government
Amount: US$262 million
Terms: Fifteen years including four years of grace, at the standard variable interest rate
Relending Terms: EPEOR and EPECO will respectively reimburse the Government US$173 million and US$68 million equivalent of the Bank loan, over a period of 25 years including five years of grace, at an interest rate of 10 percent.
Project Description: The project will help expand water production and distribution In the metropolitan areas of Oran and Constantine to the levels required to meet the unsatisfied demand (currently representing 35 percent of production in Oran and 44 percent in Constantine) and future demand in the areas. In Oran the project provides for the construction of a new surface water production system, a demineralisation plant and the rehabilitation of the existing production facilities. In Constantine it provides for :he construction of new water production works, expansion of the distribution network, collection and treatment of wastewater for reuse in irrigation. Feasibility studies of water supply and sewerage will be carried out in the areas where present services are deficient, and technical assistance will be provided to recently established regional water companies to help them streamline their organization, operational procedures and financial systems. The project will benefit about 2.1 million inhabitants of Oran and Constantine, of whom about two-thirds are residents of low-income districts. It will also supply water for industrial and commercial development. The project faces no technical risks, though its successful realisation will depend upon timely implemeintation of recommended financial policies for EPEOR and EPECO. Those risks, however, are reduced by the Government commitment, as expressed in the recently issued Water Code, that water utilities be managed as commercial and financially self-supporting enterprises. - ii -
Estimated Cost: Local Foreign Total
Item - US$ Million
New Water Production Facilities for Oran 114.4 147.2 261.6 Rehabilitationof Existing Systems in Oran 7.6 7.2 14.8 Water Production Facilities for Constantine 24.5 26.4 50.9 Collection and Treatment of Wastewater in Constantine 36.0 22.0 58.0 Irrigation Facilities 1.3 2.0 3.3 Supply of Operational Equipment and Meters 3.0 14.7 17.7 Technical Assistance and Staff Training 2.5 3.8 6.3 Project Preparation 1.7 5.8 7.5 Physical Contingencies 26.0 31.8 57.8 Construction Supervision 9.0 8.7 17.7
Sub-Total 226.0 269.6 495.6
Price Contingencies 32.9 43.2 76.1
Total Project Cost* _____ 312.8 571.7
Financing Plan: Local Foreign Total
- Us$ Million
Government Equity 258.9 50.8 309.7 Bank Loan - 262.0 262.0 Total 22 312.8 57.7L
Estimated Disbursements: US$ Million Bank FY 1986 1987 1988 1989 1990 1991 1992
Annual 5.0 35.7 53.0 59.9 43.8 33.7 30.9 Cumulative 5.0 40.7 93.7 153.6 197.4 231.1 262.0
Economic Rate of Return: 9 percent
*Includes US$171.5 million equivalent of taxes and duties. ALGERIA
NATIONAL WATER SUPPLY ANID SEWERAGE PROJECT
STAFF APPRASAL REPORT
L INTRODUCTION
1.01 Since Algeria's independence in 1962, its urban population has grown at a staggering annual rate of more than five percent. The population growth has been particularly fast in the medium-size cities and the towns adjacent to the large metropolitan areas of Algiers, Oran and Constantine. The expansion of social infrastructure, however, has not kept pace with the rapid population growth and public services such as water supply, sewerage, transport, telecommunications, etc. are very deficient. More specifically, the water supply systems that were built in Algiers, Oran and Constantine in the fifties have never been expanded and as a result, severe water shortages are experienced in these areas. It is estimated that the available water production for each of these cities can barely meet two-thirds of the demand. The water supply systems in the medium-size cities are more recent and can still meet the demands.
1.02 The Government of Algeria is aware of this situation and is according a high priority to the improvement of water supply and sewerage in the large urban areas. To this end the Government is building new water supply works for Greater Algiers, which are estimated to cost US$770.5 million; the Bank recently made a loan (2461-AL) of US$290 million to partially finance these works. Previously, the Bank made a loan (1545-AL) of US$82 million to finance sewerage works in Algiers and feasibility studies of water supply and sewerage in Oran and Constantine. Based on these studies, a construction program of water supply and sewerage facilities for Oran and Constantine has been prepared and will soon be underway.
1.03 Within the context of the Algiers Project, the Government has carried out a reorganization of the water supply and sewerage sector, under which regional companies, instead of municipalities, now provide such services. The new organization was a necessary step towards improving the management of all the services and building up the sector's financial viability. The Bank provided technical assistance to the Government in the formulation of the new sector organization. The next step is to expand the service levels in the remaining urban areas and to consolidate the management of the new regional companies. The proposed project covers the actions to be undertaken in this step, for which the Government has requested the Bank's assistance. -2-
1.04 The proposed project would involve the construction of additional water supply works for Oran and Constantine, and of sewage collectors and treatment facilities for Constantine. Technical assistance would also be provided to the regional companies to assist them in the development and implementation of streamlined policies and procedures. In preparation of future projects, the companies would undertake a metering program in order to maintain better records of their production and sales. Feasibility studies would also be carried out in the urban areas to determine ways to improve potable water supply and distribution in these areas.
1.05 The total project cost is estimated at US$571.7 million, with a foreign exchange component of US$312.8 million. A Bank loan of US$262 million to finance part of this component is proposed. Bids for some of the project components have been received and construction is expected to start by mid-1985. The proposed project is technically sound and is the least-cost alternative for increasing water supply in Oran and Constantine. It would amount to an investment of about US$264 per capita, which is acceptable considering the obsolescence of the existing system and the need to catch up with demand.
1.06 The project preparation was partially financed with funds of the Bank loan 1545-AL and carried out by the Ministry of Hydraulics, Environment and Forestry with the assistance of Belgiar. consultants. The Bank actively participated in the project formulation. A mission composed of Mr. Fritz Rodriguez (Bank staff) and Messrs. Abdeljelil Ben Abid and A. J. D. Hutchins (Consultants)appraised the project in September 1984.
II.THE WATER SUPPLY AND SEWERAGE SECTOR
Back-grouDd
2.01 Algeria is the largest country of North Africa and occupies an area of about 2.3 million Km2 which is divided by the Saharan Atlas into two distinct regions. North of the Atlas is a semi-arid area which encompasses a coastal strip along the Mediterranean, the interior plains, some highlands near the coast and the high plateaux located at about 200 kms from the coast. More than 95 percent of the population lives in this region. The mean annual rainfall in the northern areas varies from 300 mm to 1,000 mm, exceeding 600 mm only in the central and eastern coastal parts where the richest arable land is found. South of the Atlas is the Sahara where the mean annual rainfall is less than 100 mm, but which is rich in mineral resources. There are 17 major river basins in the country. -3-
2.02 Administratively, Algeria is divided into 31 provinces (wilayate),"' 160 counties (dairate) and 704 communes. The current total population is estimated at 21 million. Almost half of the population lives in urban areas located along the Mediterranean. About 40 percent of the urban population is concentrated in the three largest metropolitan areas, Algiers, Oran and Constantine, which have an estimated combined population of about 4 million. Most of the rural population reside in fixed settlements which are largely equipped with water supply and sanitation facilities; only a small portion of the rural population, roaming in the high plateaux, can be considered dispersed.
Water Resources
2.03 Water resources in Algeria are generally limited and difficult to exploit. Most of the surface water sources are dry in summer, are of poor quality and thus cannot readily be used for domestic and industrial supply. In general, regulation of the rivers through costly reservoirs is required in order to obtain economically exploitable yields. On the other hand, the rate of infiltration from storm runoff and surface sources is high and as a result, groundwater is available all over the country and represents more than two-thirds of the available water resources. The salinity of a large portion of the groundwater, however, is high, restraining its use for domestic consumption and irrigation. Most urban areas are presently supplied with groundwater.
2.04 Overall, the average yield of the existing fresh water sources with full development of storage is estimated at 7 billion m /year, which should be sufficient to cover the water needs for urban, industrial and agricultural use until the early part of the next century. Beyond that time, it will become necessary to resort to reclamation of wastewaters and later on to desalination to meet the demand. This situation already exists in some densely populated river basins where the present demand exceeds the available resources and water is transferred from adjacent basins. The scarcity of water within those basins, and the need for high capital investments in water production and transmission facilities, may constitute serious constraints to rapid industrialization.
2.05 In the Constantine area, groundwater is now used for both urban supply and irrigation. The present water demand, however, exceeds the potential capacity of the groundwater aquifer and supplementary surface water sources must be developed. Most of the water for Oran comes from surface water sources which are far away (180 kms) from the consumption centers. Groundwater in this area is brackish with a high content of total dissolved
-' Recent proposals have been made by the Government to establish 48 wilayate. -4- solids. Under the project, additional surface water sources would be tapped to meet the demand.
Seet, O-io
2.06 The Ministry of Hydraulics, Environment and Forestry (MHEF) (established in 1977, incorporating the former Secretariat of Hydraulics set up in 1970) is responsible for the development and conservation of the country's water resources and the planning and construction of water supply and sewer systems. Thirteen regional authorities, recently created, operate and maintain water supply and sewerage facilities in the country. The first experience with a regional company started with the creation of a wilaya authority, the "Societ6 des Eaux de 1'Agglomeration d'Alger - SEDAL", which provides water supply and sewerage services in Greater Algiers. SEDAL was set up as part of the Bank's first operation in the sector, the Algiers Sewerage Project (Loan 1545-AL). The SEDAL experience was good and the Government in May 1983 established twelve more companies, using SEDAL's organization as a model.
2.07 In conjunction with the sector reorganization, the Government-issued a Water Code (Law No. 83-17 of July 16, 1983), to regulate the allocation and cc.Jection of water resources and to set out financial policies for the sector. In addition to dealing with ownership, concession and use of the water resources, the Water Code prescribes that water utilities should be managed as commercial enterprises and should set tariffs at levels necessary to make the entities financially self-supporting. It also recommends that tariffs for industrial and commercial usage be set sufficiently high to encourage economic use of water.
2.08 To coordinate the operations of the regional companies and to some extent optimize the use of financial resources in the sector, the Ministry of Hydraulics is considering establishing a national regulatory agency, which would assist the Ministry in planning water supply and sewerage investments and in identifying the level of Government contributions to the regional companies. The agency would also formulate detailed policies for the sector and oversee the operations of the regional companies. Technical assistance for establishing the functions and responsibilities of the agency is being financed under Loan 2461-AL.
Service Levels
2.09 Presently, the existing water supply and sewerage systems in the large cities are obsolete and over-loaded. Though more than 80 percent of the urban population is provided with direct water service lines, only a third can be considered well served. Preliminary results of a survey of water supply and sanitation services in 36 cities with populations ranging from 500,000 to 2,000 are shown in Annex 1. The overall per capita consumption varies widely from 286 liters/day in El Golea in the central part of Algeria to 20 -5-
liters/day in Chegoun in the Kabylie Mountains, but in most cases is considered inadequate. The per capita allowance is further greatly reduced by the high volume of unaccounted-for water which in some cities reaches around 50 percent of the production. In general, water supply in the large cities is intermittentand available no more than 12 hours a day.
2.10 About 70 percent of the urban population is connected to public sewer networks which in most cases are combined systems which also carry stormwater runoff. Wastewaters in the cities are generally discharged untreated directly into the Mediterranean or into rivers. About 70 percent of the rural locationsZ are provided with public water supply systems and 60 percent with sewer systems. About 40 percent of the rural population has direct access to public water supply networks; only 25 percent to sewerage.
Constraints to Sector Development
2.11 Until recently, the lack of sound sector financial policies was a major constraint to the sector development. Water tariffs, all over the country, have generally remained low during the last decade. The municipalities, which were responsible for water supply services, were reluctant to implement effective tariffs which would have encouraged consumers to economize on their water use. This situation had existed because until recently investments in water supply and sewerage were financed by Government grants to the municipalities. The Government has now decided that the regional companies should finance a substantial portion of their investments with borrowings and progressively with their internal cash generation.
2.12 Administrative burden has also been another constraint to the sector development. The Ministry of Hydraulics has been very slow in implementing the work programs. In some cases, delays in procuring the works have resulted in cost overruns. Though procurement regulations and schedules are well defined in codes, they have not been respected in most cases. A project objective is to help the Ministry of Hydraulics streamline the procurement process and project execution.
Investments in the Sector
2.13 The second Four-Year Investment Plan (1974-77) included DA 4.0 billion (US$800 million) or about DA 240.0 (US$48.0) per capita for water supply and sewerage works. About DA 1.0 billion (US$200 million) of this amount was to complete works initiated during the previous investment plan (1970-73). These investments accounted for about 4 percent of the total
I' Defined as agglomerations with less than 2,000 inhabitants. -6-- c-anital expenditures in the public sector. With a few exceptions, so far, all projects in the water supply and sewerage sector have been financed 100 percent by Government grants, and the regional companies have practically no debt.
2.14 It is estimated that, during the first Five-Year Plan (1980-1984), investments in the order of DA 6_0 billion (US$1.2 billion) or about DA 300 (US$60.0) per capita, have been made in the sector. During the forthcoming Five-Year Plan (1985-1989), the Ministry of Hydraulics is proposing to invest DA 45.0 billion (US$9.0 billion) in the hydraulic sector, 50 percent of which in water supply and sewerage works. The projected substantial increase of investments during the next plan (almost four times the level of investments during the preceding plan in current prices) demonstrates the Government's comitment to improving rapidly the conditions and service levels in the sector.
Previous Bank Loans in the Seetor
2.15 The Bank became involved in the sector in 1978 when Loan 1545-AL of US$82.0 million was made for the Algiers Sewerage Project, to finance the construction of sewer interceptors and a sewage treatment plant in Greater Algiers and management and engineering studies in the cities of Algiers, Constantine and Oran. One of the objectives of this project was to strengthen the sector organization in Greater Algiers through the creation of a regional water supply and sewerage authority (SEDAL). In spite of some delays in implementing agreed policies, the SEDAL experience has been good, and has led to the recent Government decision to set up similar authorities in the rest of the country.
2.16 To help improve water supply services in the Algiers area, the Bank in 1980 made a loan (S-17-AL) of US$5.0 million to finance a water resources study. On the basis of the recommendations of this study, a water supply project has been defined for Greater Algiers and is now under construction. In June 1984 the Bank made a loan (2461-AL) of US$290 million to partly finance this construction.
2.17 The execution of the works included in the Algiers Sewerage Project, after some initial delays, has progressed well. The project, though, is expected to be completed only by the end of 1987, some four years later than projected at appraisal, because of delays in inscribing the project in the national budget and appointing consultants, additional review by the Ministry of Hydraulics of the project design, and slow procurement of the works. All these problems have since been resolved. Loan S-17-AL was closed at the end of 1984. The third loan (2461-AL) has recently been declared effective.
Rationale for Bank Involvement
2.18 From the outset of its involvement in the sector, the Bank's objective has been to foster the adoption of more appropriate sectoral -7- procedures and policies. The Algiers projects were instrumental in the creation of the regional companies and the implementation of more realistic pricing policies for water supply and sewerage services in the Algiers area. The proposed project, through the setting of increased tariffs in the rest of the country, would allow the Government and the Bank to pursue their policy objectives of strengthening the sector organization by consolidating the efficiency and financial viability of the regional companies. The Bank can also provide advice and guidance in the selection and formulation of economic projects in the cities considered, based on the least cost alternatives. Additionally, the Bank may play an important role in helping the Algerians improve their procurement procedures.
IlL THE PROJECT AREA
General Features
3.01 Greater Oran, with a current population of 800,000, is the second largest metropolitan area in Algeria and includes the cities of Oran, Arzew, Es Senia and a large group of suburban towns. It is a very industrialized area where petrochemical plants and liquefied natural gas activities are concentrated along the Oran-Arzew corridor. The city of Oran, which is an open sea port, is the commercial center for the country's western part. Its population is currently estimated at 600,000 and growing at an annual rate of 3.9 percent. Water supply and sewerage services in Greater Oran are provided by "Enterprise de Production, de Gestion et de Distribution d'Eau d'Oran" (EPEOR).
3.02 Commercial activities in the eastern part of the country are concentrated in Constantine City, the third largest urban agglomeration, which has a current population of about 500,000, growing at an annual rate of 3.2 percent. In addition to Constantine, the metropolitan area includes the cities of El Khroub, Ain Smara and Haimna Bouziane. The current combined population of this area is about 600,000. Water supply and sewerage services in Greater Constantine are provided by "Enterprise de Production, de Gestion et de Distribution d'Eau de Constantine" (EPECO). No large water resources are available and few industries are located in the area.
Existing Production Systems
3.03 Presently Greater Oran obtains its water supply principally from three sources: (i) the Higher Tafna River (Beni Babdel) located about 180 kms to the west; (ii) the Fergoug River system situated about 80 kms to the east; and (iii) the Bredeah Aquifer located near Oran. The first two include treatment facilities which were put in operation in the fifties. The Beni Bahdel installation is a gravity system with an average capacity of 48,000 m3 /day, a portion of which is used to supply the towns located along the -8-
transmission pipeline. The Fergoug system, whose production averages 40,000 m3 /day, serves the city of Arzew and the large industrial complexes between Oran and Arzew. Of the Fergoug production, only 9,000 m3/day reach the city of Oran.
3.04 The Bredeah system consists of a group of wells producing on average 25,000 m3/day. The groundwater is of poor quality, with the content of total dissolved solids3- exceeding 4,500 mg/liter. A fourth source, a sgring (Raz El Ain), located within the city has an average yield of 8.000 m Iday and mainly supplies the port and some adjacent low level areas.
3.05 In contrast to Oran, the water supply sources of Constantine are all of groundwater origin. The Fesguia and Bou Mersoug wells, located some 25 kms. south of Constantine City, have an average yield of 30,000 m3/day. These systems were put in operation in the fifties. More recently, an artesian well at Hammn Bouziane, located some 7 kms. north of the city, was tapped to supply the area. This well's production averages 17,000 m3/day. An additional flow of 35,000 m 3/day is extracted from the same aquifer for irrigation in the Hamma Bouziane area.
3.06 In general, drinking water in Constantine is very hard with high conductivity. The contents of manganese and chlorides are close to the maximum permissible levels established under the norms of the World Health Organization (WHO).
Water Distribution Networks
3.07 Sizes of pipes in the distribution system in Oran City vary from 60 mm. (2.5 ins.) to 600 mm. (24.0 ins.) diameter, with a total length of 450 3 kms. Four main reservoirs, Eckmulh (15,000 m ), Ain Beida (20,000 m3), Gambetta (40,000 m 3 ) and Montreal (5,000 m 3 ) maintain the required pressures at different elevated areas. The present storage capacity is considered adequate and no immediate increase in storage is required. Supply is now intermittent with most of the consumers receiving water every other day. Most of the distribution network was renovated recently and as a result, water losses in the city are estimated to be less than 20 percent of production.
3.08 As in Oran, the distribution network in Constantine was renovated recently and water losses in the system do not exceed 15 percent of production. Because of the rugged configuration of the city, the network has
3/ Refer to matter in dissolved form, which consists mainly of inorganic salts, small amounts of organic matter and dissolved gases. The total dissolved and undissolved solids content of potable waters usually ranged from 20 to 1,000 mg/liter. As a rule, hardness increases with the solids content. been divided into two separate pressure zones: a high one served by two main reservoirs, El Kantara Superieur and Mansourah Superieur and a low one supplied by three reservoirs, El Kantara Inferieur, Mansourah Inferieur and Bellevue. In addition, within the two zones there exist 21 reservoirs. Overall storage in the city amounts to 40,000 m3, which is sufficient to meet the peak demand during the next eight years. As in Oran, supply is intermittent with about 40 percent of consumers receiving water for less than three hours a day.
Existing Sewerape
3.09 Old areas in Oran and Constantine are served by combined sever systems in which wastewaters and storm water runoff are collected and conveyed in the same conduits. New developments are equipped with separate systems in which wastewaters and runoff are drained in different conduits. Most of the water consumers are connected to the sewer networks which are generally in good condition. In Constantine a major expansion of the sewer network is planned under the proposed project. In Oran, a sewerage study, partly financed under loan 1545-AL, is now under way. Presently, wastewaters in the two cities are not treated prior to their discharge into the Rhumel River in Constantine and the bay in Oran. In both cases the receiving waters have not sufficient capacity to absorb the pollution load and treatment facilities in Constantine and a sea outfall in Oran must be built in the future.
VI. DEMAND AND MARKIET ASPECTS
Jurisdiction
4.01 The territory served by EPEOR includes the wilayate of Oran, Tlemcem, Sidi Bel Abes and Mascara, whose current total population is estimated at 1.7 million (see para. 7.01). Within this jurisdiction, EPEOR is responsible for providing water supply and sewerage services to 57 towns among which three have populations of more than 110,000, and 21 -with more than 10,000. So far, EPEOR has been providing retail supply only in Greater Oran and the large cities of Sidi Bel Abes, Tlemcem, Mascara and Ghazaouet. It also provides bulk water supplies to a number of towns located along its transmission pipelines. EPEOR is planning to progressively take over both production and distribution in all the towns, some of which have their own production facilities.
4.02 EPECO's service area covers the wilayate of Constantine, Jijel and Oum-El-Bouaghi which had an estimated total population of 915,000 at the end of 1984. EPECO is to provide water supply and sewerage services to 19 towns in this territory, 14 of which have populations of more than 10,000. At present, EPECO provides water in Constantine, Jijel and Oum-El-Bouaghi, the capital cities of the wilayate, but expects to take over all the towns in its jurisdicti'n by the end of 1985. -10- Prodm and C
4.03 In 1984 EPEOR produced 78.6 Hm3 of potable water which was estimated to be 35 percent below the potential demand in the Oran area. Of this production, about one third was sold in bulk to industries and towns, and the rest distributed directly. For a total sale of 65.4 Mm3 in that year, unaccounted for water was only 17 percent of the production, but reached 25 percent of the volumes distributed in the cities. Both quantities are within acceptable limits for unaccounted-for water and reflect effective operation of the systems. As the next production increase would take effect only at the end of 1987, supply would have to continue to be rationed in Greater Oran during the next three years.
4.04 Present available production in the territory served by EPECO is estimated at 50.8 MMn3/year, but demand is estimated to grow to 79.2 Mm3 /year by 1991. In 1984 EPECO recorded retail sales of 15.8 Mm' and bulk sales of 10.6 Mm3. Unaccounted for wrLer in that year was about 27 percent of the production. In the Constantine area itself, the demand in 1984 was estimated to be 35.3 Mm3, while the available production was only 19.8 Mm3, resulting in a deficit of 15.5 Mm3 or 44 percent of the demand. 3 Water sales in that year in this area amounted to 13.9 Mm . leaving 29 percent of the production unaccounted for.
Compositon of the Demand
4.05 A large portion of water consumed in EPEOR's jurisdiction is for industrial use, which accounted for almost 30 percent of the volumes of water sales in 1984. In terms of revenue, industrial sales accounted for a much larger percentage, as the industrial tariff was three times higher than the domestic tariff. A breakdown of water consumed in 1984 apportions the different uses as follows:
Usage Volume, Mn3 Pert -nt
Domestic 34.3 52.4 Industrial 19.11 29.2 Public 7.4 11.3 Commercial 4.6 7.1
TOTAL 65.4 100.0 4.06 The situation is very different in the Constantine area where industrial use accounts for less than one percent of the volume consumed. Water is primarily for domestic use and other uses represent less than 15 percent of the total sales.
Future Water ConSUmption
4.07 A projection of water sales by EPEOR during the period 1986-91 is shown in Annex 4. It is estimated that in 1988 the per capita consumption in Greater Oran would increase after the proposed project becomes operational and water is more readily available; beyond that year consumption would continue to increase as the country's economy continues to grow and standards of living improve. In the other towns served by EPEOR where presently large production surplus exist, the current per capita consumptions are already high and presumably would remain unchanged during the next seven years. On this basis it is forecast that water sales, which in 1984 amounted to 65.4 Mm3 , would rise to 94.3 Mm3 in 1988 and to 118.9 Mm3 in 1991. Part of the increases in sales between 1985 and 1988 would result from the takeover of existing systems by EPEOR. During the projection period, sales are forecast to increase annually by 8.9 percent, with the average per capita consumption rising from 121/lpcd in 1985 to 153/lpcd in 1991.
4.08 Annex 7 shows a forecast of water sales by EPECO during the 1985-91 period. Assumptions similar to those used for EPEOR have been made in preparing the forecast for EPECO. It is foreseen that EPECO's water sales would increase from 15.8 Mm3 in 1984 to 46.4 Mm3 in 1991, resulting in an annual growth rate of 14.9 percent. A major part of the growth, however, would result from EPECO's takeover of existing distribution networks. The average per capita consumption is projected to increase from 71/lpcd in 1986 to 109/lpcd in 1991. The sales forecasts assume that by 1991 practically the entire urban population in the wilayate served by EPEOR and EPECO would be connected to the networks.
V. THE PROPOSED PROJECT
Proiect Genesis and Concept
5.01 In 1978 the Bank made a loan (1545-AL) of US$82 million to the Government of Algeria to finance sewerage works in Greater Algiers and feasibility studies of water supply and sewerage in Oran and Constantine, Algeria's second and third largest cities. The Government was concerned with the evident water shortage and the resulting poor sanitary conditions prevailing in these cities. The studies were completed in 1982 and construction projects identified for both Oran and Constantine. Previous to the Bank loan, the Government, with the assistance of the World Health Organization (WHO) and French consultants, had explored the possibility of tapping the Cheliff Oued, by constructing a dam in the lower part of the -12- river, to supply Greater Oran and the industrial area of Arzew. Further studies, however, showed that the proposed dam would be very costly with a short useful life due to rapid silting of the reservoir and the proposal was therefore abandoned.
5.02 Most of Oran's present water supply comes from surface sources located far away from the city (para. 3.03). A small portion of the supply is derived from groundwater close to the city. The quality of this groundwater, however, is poor and does not meet accepted standards for potable water. Some surface sources, like the lower part of the Tafna River, are relatively close to Oran (about 90 kms.), but they are at a lower elevation than the city and the waters would have to be pumped to reach the consumption centers. Thus, the choice was between going further away from the city and convey the water by gravity; or staying closer, but having to pump it to the city. An economic comparison showed that the latter was the least-cost alternative to increase potable water production for Greater Oran.
5.03 Based on a 32-year stream flow record, it has been estimated that, with a pumping station of 3 m3 /sec, there is a 90 percent probability of deriving annually 65 Mm3 at the proposed diversion site on the Lower Tafna River. From the diversion point, water would be pumped to a natural reservoir (Djebel Zioua) with a capacity of 15Mm3, which would compensate for variations in the river flows. From this reservoir, water would be withdrawn and treated in a conventional plant and then conveyed to Oran. To prevent seepage in the reservoir, an impervious membrane would be laid down over the ground. The average yield of the Lower Tafna River system would be about 2.56 m3/sec.
5.04 Contrary to Oran, Greater Constantine's water supply presently comes from groundwater which is also used for irrigation in the area. As mentioned previously, the Constantine region is one of the driest areas in the country. Some surface water sources exist but with relatively small yields and far away from the populated centers. One of them is the Rhumel River, which would be diverted to meet some of the water needs in the Constantine area. Reuse of wastewaters is now considered absolutely necessary if both urban and agricultural water needs are to be met.
5.05 The proposed project envisages the exclusive use of groundwater for urban supply and the replacement of the part now used for irrigation by treated wastewater. At the same time, the Rhumel River would be regulated at an impounding dam (Hammam Grouz) now under construction, to provide an average yield of O.5m 3 /sec. The dam as well as the treatment facilities would be located at about 90 kms. from Constantine. With the addition of the Hamma Bouziane groundwater scheme, the overall supply to Greater Constantine would be increased by about 1m3 /sec. or more than double the present production.
5.06 The feasibility study and detailed design of the Oran project were prepared by a Belgian consulting firm, Tractionel. The feasibility of the Constantine project was carried out by a Belgian firm, De Konnicks. The -13- design as well as tender documents for the Constantine project were prepared by a British firm, Binnie & Partners, which also designed the Kamam Grouz dam. The concept and design of the dam were reviewed by a panel of experts of the Ministry of Hydraulics. The construction of the dam started in 1982 and is now at an advanced stage.
Objectivesof the Project
5.07 The proposed project in the Oran area would increase water production to meet the unsatisfied demand and future needs through the year 2,000. In Constantine, the proposed production increase would meet unsatisfied demand and future needs but for a much shorter period (up to 1993). Preliminary works for the next project in Constantine are already under way. While the project is being executed, the water companies, with their own resources, would continue to expand the secondary distribution networks and execute a leak detection and repair program to improve further the systems' efficiency.
5.08 The project would provide technical assistance to all the regional companies to help them streamline their organization, operations, management and finance (paras. 6.07-6.10). The technical assistance program would also include staff training. As part of the project, an analysis of the water supply and sewerage situation in the urban areas would be undertaken, followed by the preparation of feasibility studies and detailed design of projects in the cities with the most urgent needs. Operational equipment, including master and domestic water meters, would be provided to all the regional companies.
Project Description
5.09 The proposed project includes:
(i) the collection, treatment and conveyance of the Lower Tafna River waters to increase the supply to Oran by about 221,000 m /day;
(ii) the construction of a demineralisation plant with a capacity of 400 liters/sec. to lower the total dissolved solids content of water distributed in Oran to about 1,000 mg/liter;
(iii) rehabilitation of the Beni Bahdel and Fergoug systems;
(iv) the treatment and transmission of the Rhumel River water to supply about 40,000 m3 /day to Constantine;
(v) the collection and softening of groundwater in the Constantine area to produce an average flow of 40,000 m 3/day;
(vi) the expansion and improvement of the primary water distribution network in Constantine City; -14-
(vii) the collection and treatment of wastewater in Constantine for use in agriculture;
(viii) the supply of operational equipment, including master and domestic water meters, to the regional companies;
(ix) technical assistance to the companies and staff training; and
(x) the preparation of water supply and sewerage projects to meet demands in the urban areas.
5.10 A general layout of the project facilities is shown on Maps. nos. 18688 and 18689. For the Oran system improvement, from the diversion structure on the Tafna River, water would be pumped to a grit chamber where solids with a diameter greater than 0.3 m. would be removed. The water would then pass through a microstrainer before being pumped to a reservoir formed by construction of an embankment across a natural land depression (with a capacity of 15 Mm3) which would be used to store and regulate the river flows. From the reservoir, water would be withdrawn by gravity for treatment and then conveyed to Oran through a steel pipeline of one meter diameter.
5.11 The demineralisation of groundwater in Oran would be accomplished in a reverse osmosis plant, with an efficiency of 70 percent, whose output would have a total dissolved solids content of about 500 mg/liter. The output would be mixed with the other sources and the resulting dissolved solids content of water distributed in Oran would be around 1,000 mg/liter.
5.12 For the supplemental supply to Constantine, the Rhumel River water would be treated in a plant located near the Hammam Grouz Dam and then conveyed to Constantine through a 800 mm. pipeline. Prior to its distribution in Constantine, the Hamma Bouziane groundwater would be softened through the elimination of the carbonate hardness by the addition of lime. New reservoirs and connecting pipelines would be built to distribute the additional water. Meanwhile, additional sewage collectors would be installed in Greater Constantine to transport the wastewaters to an extended aeration plant where they would be treated and then reused for irrigation. A reservoir for storage of the plant effluent for a limited period and a pipeline connecting it to the existing irrigation network would also be built under the proposed project.
Cost Estimates
5.13 The estimated total cost of the project is DA 2,859.0 million (US$571.7 million) with a foreign exchange component of DA 1,564.7 million (US$312.8 million) or 54.7 percent of the total cost. A suimmaryof the cost estimates follows. Detailed cost estimates and annual project investments in Oran and Constantine are given in Annexes 10 and 11. -15-
Local Foreign Total Local Foreiza Total Percent Item DA Million - US$ Million
Tafna River Water System 532.1 656.2 1,188.3 106.4 131.2 237.6 47.9 Bredeah Demineralisation Plant 40.0 80.0 120.0 8.0 16.0 24.0 4.8 Rehabilitation of Oran's Water Production Systems 38.0 36.0 74.0 7.6 7.2 14.8 3.0 Water Production Facilities for Constantine 122.3 131.9 254.2 24.5 26.4 50.9 10.3 Collection and Treatment of Wastewater in Constantine 180.0 110.2 290.2 36.0 22.0 58.0 11.7 Irrigation Facilities 6.5 10.2 16.7 1.3 2.0 3.3 0.7 Supply of Operational Equipment and Meters 15.0 73.5 88.5 3.0 14.7 17.7 3.6
Sub-Total 933.9 1,098.0 2,031.9 186.8 219.5 406.3 82.0
Physical Contingencies 130.2 159.1 289.3 26.0 31.8 57.8 11.6 Construction Supervision 44.8 43.3 88.1 9.0 8.7 17.7 3.6 Technical Assistance and Staff Training 12.6 19.2 31.8 2.5 3.8 6.3 1.3 Project Preparation 8.5 29.0 37.5 1.7 5.8 7.5 1.5
Total Cost 1,130.0 1,348.6 2,478.6 226.0 269.6 495.6 100.0 (End 1984 Prices)
Price Contingencies 164.3 216.1 380.4 32.9 43.2 76.1 15.4 TOTALPROJECT COST (Current Prices) 1,294.3 1,564.7 2,859.0 258.9 312.8 571.7 115.4
Percent 45.3 54.7 100.0 45.3 54.7 100.0
5.14 The cost estimates are based on actual bids for about 60 percent of the projected works and detailed design for the remaining project components. The estimates already include customs duties on imported equipment and materials and other taxes on sales and services. They were increased by 15 percent for physical contingencies. Prices for local expenditures are expected to increase annually by about 7.0 percent during the project execution period; those for foreign expenditures by 5 percent in 1985, -16-
7.5 percent in 1986 and 8 percent thereafter. Price escalation will affect only 80 percent of the expenditures for the project components already tendered. Overall, price escalation is forecast to account for about 15 percent of the sum of the base costs, physical contingencies and construction supervision.
5.15 The project provides for an estimated 2,100 man-months of consultancy services for the technical assistance to the regional companies (paras. 6.07-6.10), project preparation in different areas and construction supervision (para. 5.16).
ProjectExecution
5.16 A bar chart of the project execution is shown in Annex 12. The project construction would start during the second half of 1985 to be completed by the end of 1990. Contracts for about 60 percent of the project works are expected to be awarded during the second quarter of 1985 (para. 5.23). Partial production increases would become available by the end of 1987 in Constantine, and the end of 1988 in Oran. The Ministry of Hydraulics, Environment and Forestry (MHEF) would be responsible for the project construction supervision. In view of some highly specialized treatment processes involved in the project, the Ministry would be assisted by consulting firms which would be retained in accordance with the Bank Group Guidelines for the Use of Consultants, not later than December 31, [985, and under terms and conditions satisfactory to the Bank. Consultants would also be required for the feasibility studies and retained not later than July 1, 1986, in accordance with the same guidelines and under conditions satisfactory to the Bank. The project facilities would be operated and maintained by the water companies (paras. 6.05-6.06).
5.17 The Hanuam Grouz Dam, which is under construction, is an important structure whose stability should be carefully monitored. Consequently, agreement was reached during negotiations that not later than July 1, 1988, MEEF would employ engineering experts to assist it in inspecting annually the Hanua Grouz Dam and related structures. After 1992, the inspections may be made once every five years. The experts would be retained in accordance with the Bank Group Guidelines for the Use of Consultants. Following an inspection, MHEF would carry out any necessary remedial actions suggested by the consultants.
5.18 About US$50.8 million of foreign exchange under the project is for the supply of a steel transmission pipeline in Oran. The pipe supply has been reserved for a national firm which has the technical capability and experience to manufacture the pipes properly. Its involvement is also not expected to delay the project execution. Financing of the pipe supply, however, would not be eligible under a Bank loan. -17-
ProjectFinancing
5.19 To cover the foreign exchange balance, a Bank loan of US$262 million is proposed. The loan would be made to the Government to be repaid over 11 years after 4 years of grace, at the standard variable interest rate. The Government would finance the balance of foreign exchange (US$50.8 million) and the local costs (US$258.9 million equivalent). EPEOR and EPECO would finance the cost of expanding the secondary distribution networks (para. 8.09). Assurances were obtained during negotiations that the Government would promptly make available the above amounts and any additional funds needed for the project execution and completion.
Reimbursement of the Government
5.20 Upon completion of the project construction, the Government would transfer the ownership of the facilities to EPEOR and EPECO which would operate and maintain them. The legislation governing water supply and sewerage operations in Algeria requires that the regional companies finance their investments principally by long-term borrowings and eventually develop a self-financing capability. It is therefore proposed that EPEOR and EPECO reimburse the Government for the portions of the Bank loan contracted for their investments. These portions would amount to US$173 million and US$68 million respectively. To these amounts would be added interest and other charges paid by the Government during the project construction.
5.21 The reimbursement would start in 1991 and would be completed over 20 years, with an interest rate of 10 percent. The foreign exchange risk on the loan would be borne by the Government. Details of the reimbursement modalities, together with the Government's financing conditions of the project, would be set out in Reimbursement Agreements between the Government and EPEOR and EPECO. The execution of these agreements, with terms and conditions satisfactory to the Bank, would be a condition of effectiveness of the proposed loan
5.22 For the project financing, the Government would make respective equity contributions of DA 1,090.8 million and DA 402.5 million to EPEOR and EPECO. As the project facilities become operational, the companies should be required to reflect such contributions in their statutory capital. Assurances to this effect were obtained during negotiations.
Procurement
5.23 MBEF is in the process of awarding two contracts accounting for about 60 percent of the total project cost or US$343.0 million, following international competitive bidding. Overall, the bidding procedures have conformed to the Bank Guidelines for Procurement and the Bank is proposing to finance the foreign exchange cost of the two contracts. With the exception of the pipe supply discussed in para. 5.18, all remaining supply and civil works contracts under the project would be awarded following international -18- competitive bidding consistent with the Bank Group Guidelines for Procurement. In evaluating bids for the supply of equipment and materials, a 15 percent margin of preference or the actual customs duties, whichever is lower, would be allowed for goods manufactured in Algeria.
5.24 A summary of acceptable procurement methods under the project follows:
Procurement Method 4' ICB LCB Other Total Cost Project Element -- US$ Million-- USS Million
Oran Water Production 235.9 - - 235.9 (130.0)
Steel Pipe Supply in Oran - - 78.3 78.3
Bredeah Demineralisation Plant 31.7 - - 31.7. (21.0)
Rehabilitation of Oran Systems 19.6 - - 19.6 (9.8)
Water Works in Constantine 148.4 - - 148.4 (66.3)
Operational Equip. and Meters 23.4 - - 23.4 (19.4)
Consulting Services - 14.4 20.0 34.4 (15.5)
TOTAL PROJECT 459.0 14.4 98.3 571.7
BANR FINANCING 246.5 - 15.5 262.0
c, Major engineering assignments like construction supervision and feasibility studies would be carried out by consulting firms which would be retained in accordance with the Bank Group Guidelines for the Use of Consultants. They are listed under Other. Some small works like survey, soil-boring, etc. would be executed by local firms and are listed under LCB. Figures in brackets represent amounts financed under the Bank loan. -19-
DO ement
5.25 The proposed Bank loan would be disbursed against: (i) 55 percent of total expendituresfor civil works which usually include the supply of equipment and materials; (ii) 100 percent of foreign expendituresor 70 percent of local expenditures for the supply of equipment and materials; and (iii) 100 percent of foreign expenditures for consultants' services and staff training. Retroactive financing of US$12 million, to cover eligible expenditures made from January 1, 1985, would be allowed under the proposed loan. On this basis, estimated quarterly disbursements of the loan are given in Annex 13. The estimates are not based on disbursement profiles of past projects in Algeria, in light of the very different preparation status of the proposed project. The procurement process is very advanced and loan disbursement is expected to progress rapidly during the project execution.
5.26 In order to make prompt payments to contractors and consultants for the project, the Bank should agree to advance regularly funds for the establishment of a Revolving Fund in Algeria to cover these payments. The Fund would be maintained at the Central Bank of Algeria for a maximum amount of US$12.0 million which would cover the Bank's share of eligible expenditures on the project over a period of three months. The Fund would be maintained in US dollars. Applications with appropriate supporting documentation, covering the use of the Fund, should be submitted when approximately half the maximum allowed amount in the Fund has been spent. A special account for the Fund would be established at the Central Bank of Algeria.
5.27 The closing date of the loan would be December 31, 1992, or two years after the provisional acceptance of the works, which is the time needed to monitor the performance of the works and to return retention money on the civil works contracts.
VI. PROJECT IMPLENMENTATONAND OPERATION
Executing Agency
6.01 The project would be implemented by the Ministry of Hydraulics, Environment and Forestry (MEEF) whose current organization is shown in Annex 14. Three departments of this ministry would assure the project execution: The Hydraulic Works Department (DGIH) would be responsible for the construction of the project works. This department is currently constructing new water works for Algiers City, which are partially financed by Bank Loan 2461-AL. The Planning and Studies Department (DGPE) would carry out feasibility studies and detailed design of water supply and sewerage in the country's urban areas. DGPE was the executing agency for the Water Resources Engineering and Technical Assistance Project in Greater Algiers, financed by Loan S-17-AL. Finally the program of management assistance to the regional companies and staff training would be monitored by the Promotion and Control Department (DGAC). -20--
6.02 DGIH is well organized and staffed. It comprises three divisions: water resources development, water supply and severage, and irrigation and drainage. In 1984 the staff numbered 66 civil engineers, 30 technicians and 410 foremen. In addition, 74 foreign advisors were stationed in DGIH during that year. Special teams would be assigned for the construction supervision of the subprojects in Oran and Constantine. In view of some specialized processes involved in the project (para. 5.16), these teams would be assisted by engineering consultants.
6.03 The other departments are equally well organized, though they would be involved to a lesser extent in the project execution. The technical assistance and feasibility studies would be carried out by engineering consultants under terms and conditions satisfactory to the Bank (para. 5.16). The operational equipment and meters would be purchased in bulk by MHEF and passed to the regional companies. A small spread would be added to cover MHEF's administrative expenses.
6.04 MHEF carries insurance covering motor vehicles, fire damages and third party liability. It is also insured for workmen's compensation. All supply and civil works contracts on the project would be insured against loss and damage in shipmenL, work accidents, fire and property damages.
Operation and Maintnance
6.05 MHEF's Operations Department (DGE) normally operates and maintains dams and irrigation structures in the country. This department would continue to provide such services to EPECO for the Hammam Grouz Dam, and to EPEOR for the Djebel Zioua Embankment. EPECO and EPEOR would pay DGE for its services. Regular inspections of the Ramman Grouz Dam would be made by engineering expe-ts and following the inspections, DGE would carry out any necessary remedial actions suggested by the experts (para. 5.17).
6.06 The remaining project facilities would be operated by EPEOR and EPECO. Training of the staff that would operate the treatment plants has been provided in the contracts for construction of the plants. The training would take place in Algeria and overseas and would be carried out by the plant manufacturers. Thus, by the time the project becomes operational in 1990, the staff of EPEOR and EPECO should have the technical capability required to operate and maintain the project facilities properly.
Manageznent Assistance
6.07 The regional companies were recently established and are as yet in an early stage of development. As in the case of the water company in Algiers, they would need management consultants' assistance to help them establish a sound organizational structure and operational procedures. In order to arrive at a uniform structure for all the regional companies, the management assistance program would be coordinated by MHEF which would employ a single consulting firm to implement the program. The consultants would be retained -21- to advise on certain aspects of the companies' organization and management, financial structure and tariff policies.
6.08 The organization and management assistance would cover four main topics:
(i) definition of the broad lines of the companies' organizational structure and their consultative or other relationships with other governmental, provincial and muni cipal agencies;
(ii) preparation of job descriptions and statements of objectives for all functional heads;
(iii) development of detailed organizational structures for all divisions and departments, and a comparison of staff resources with needs; and
(iv) formulation of operational procedures for billing and collection, stores and transport.
6.09 The second part of the assistance would cover the companies' financial structure but would address the particular needs of each of them. On the basis of the companies' projected revenues, the consultants would formulate attainable financial objectives for the companies. They would indicate which portions of the companies' capital investments would be financed by loans, internal cash generation, and Government contributions, based on the companies' goal of progressively increasing their self-financing capacity.
6.10 Terms of reference for the management assistance program are outlined in Annex 15. During negotiations assurances were obtained that not later than u-ly 1, 1986, MHEF would employ qualified consultants to carry out the management assistance in accordance with terms of reference satisfactory to the Bank, and that at the conclusion of the program it would promptly review the recommendations with the Bank and cause the companies to adopt the agreed structures and administrative procedures.
6.11 In order to monitor progress in project implementation, agreement was sought during negotiations that MHEF would submit quarterly reports to the Bank. The reports would in particular cover;
Ci) progress in procurement of equipment, materials and civil works;
(ii) progress in construction of the project facilities; and
(iii) expenditures on the project and updated cost estimates of remaining works. -22-
6.12 Assurances were also obtained that, within six months following the closing date of the loan, MHEF in conjunction with EPEOR and EPECO would prepare and submit to the Bank a completion report an the execution and initial operation of the project, its costs and the benefits derived or to be derived from it, the performance and fulfillment by the Government, MEEF, EPEOR, EPECO and the Bank of their respective obligations under the Loan and Project Agreements and the accomplishment of the objectives of the Bank loan.
Project Accounts and Audit
6.13 MEEF maintains separate accounts and records of its projects. A financial controller from the Ministry of Finance permanently controls the accounts, which nevertheless should be audited regularly by independent auditors. To this end, assurances were obtained during negotiations that MHEF's accounts on the project, including the Revolving Fund account, would be audited annually by independent auditors acceptable to the Bank and submitted to the Bank not later than nine months after the end of each fiscal year. Certified copies of the accounts as well as the auditors' reports would also be furnished to the Bank.
VIOLTHE BENEFICIARIES
Bckmrounad
7.01 Potable water supply and sewerage services in Algeria are now provided by 13 regional public enterprises which were established by Presidential Decrees Nos. 83-328 through 340 dated May 14, 1983 (see Map 18687). Basically, those enterprises were formed through the merger of municipal water and sewer services with SONADE,-''a bulk water production company. The project facilities would be built by MHEF in the wilayate of Oran and Constantine and operated by EPEOR and EPECO (paras. 6.01, 6.05 and 6.06). Meanwhile, with the exception of the water company in Greater Algiers, (EPEAL)!', most of the remaining enterprises would benefit from the rest of the proposed program. The feasibility studies would be carried out in the wilayate with the greatest needs. The program of technical assistance would be given first to the largest enterprises. Operational equipment would be provided to all the enterprises.
so Societe Nationale de Distribution d'Eau Potable et Industrielle.
co Technical assistance is provided to EPEAL under Loan 2461-AL. -23-
7.02 The regional companies started to function only in early 1984. They have a corporate statute, are financially autonomous and managed as comercial undertakings. They operate under the tutelage of MHEF which exercises overall governmental control, such as approving their investment programs and annual budgets, annual financial statements, decisions on borrowing and tariff levels, etc.
Ormnization and Management
7.03 Annex 16 shows the interim organizational structure of EPEOR and EPECO.1' A Board of seven members, chaired by the General Manager, supervises each company's activities. Except for two Board members who represent the workers, the other members are full-time managers of the companies. The General Managers are appointed by Presidential decree upon nomination by the Minister of Hydraulics. The General Managers are responsible for the day-to-day operations of the companies which are usually handled by two departments: engineering and operations, finance and administration. The proposed project includes technical assistance by management consultants for the definition and implementation of a suitable organization and operational procedures for the companies (paras. 6.07-6.09).
Stnaffing
7.04 At the end of 1984 EPEOR and EPECO had 500 and 420 employees respectively. So far, however, the two companies have only taken over responsibility for a few of the agglomerations in their jurisdiction and the number of their employees is expected to increase substantially in 1985 and 1986 to reach 1,250 and 710 respectively by mid-1987. This would represent a ratio of about 7 employees per 10,000 people served, which is considered adequate. This ratio would be monitored during the project execution (para. 8.12).
7.05 The salaries and employment conditions in the companies are satisfactory, though lower than in the industry and energy sectors. The companies are not expected, however, to experience difficulties in recruiting staff. In addition, MHEF is proposing to carry out a national training program in the sector, which would help to alleviate any lack of staff capability (paras. 7.06-7.08).
TrainingProgamm
7.06 The training program would be organized and executed by MHEF with the assistance of special advisors. Its execution would start in mid 1987 after
7 / A permanent organization would be put in place following the completion of the management studies described in paras. 6.07-6.09. -24- the regional companies have completed their takeover of the water supply systems under their jurisdiction. The development of the training program would involve the following steps:
(i) a detailed survey of the short- and long-term training needs;
(ii) design and preparation of the program, and establishment of a timetable and instruction manuals for the courses;
(iii) acquisition of teaching material and equipment;
(iv) selection of instructors and nomination of trainees;
(v) holding of seminars, classes, field courses, laboratory and shop practices; and
(vi) evaluation of the training results.
7.07 The trainees would be divided into two groups: (a) management staff and supervisors; and (b) administrative staff and operatives. The training of the first group would basically include:
(i) in-service training by consultants;
(ii) seminars and work discussions on management techniques in general and operation of water supply and sewerage companies in particular;
(iii) evaluation of the functions of the other group and participation in the elaboration of training programs for this group; and
iv) participation in selected specialized courses abroad.
7.08 Training of the second group would be function-oriented, aiming at improving the skill of the staff to meet manpower requirements of the companies. Thus, special training courses in plumbing, water and sewer operation and maintenance, leak detection and control, metering, clerical work, administration, finance, accounting, etc., would be given by special consultants. Both groups would participate in sessions of instruction of the corporate procedures developed under the management studies (paras. 6.07-6.09).
7.09 The estimated cost of the training program is US$3.5 million with a foreign exchange component of US$2.0 million which would be financed under the proposed loan. During negotiations, assurances were obtained from MHEF that: (i) it would submit a detailed description and schedule of the training program for Bank review and comments not later than January 1, 1987; and (ii) it would subsequently hire instructors and consultants acceptable to the Bank to execute the program. -25-
EilMg and Colecton
7.10 The billing and collection systems, which were in operation prior to the creation of the regional companies, differed considerably in detail from one city to another. In places where water supply was provided by municipalities, billing was on an annual basis. Customers were granted an annual consumption allowance; any excess was paid at year end. In cities where financially autonomous municipal enterprises (regies) provided water supply services, billing was quarterly or semi-annually. For customers without meters, a fixed charge was levied. In most cases bills were prepared manually.
7.11 When EPEOR took over the Oran Regie which was in charge of water distribution in Greater Oran, it acquired its facilities as well as its receivables. In Constantine, however, EPECO received only the fixed assets from the municipal services. The current assets remained with the municipality. The rationalization of the regional companies' billing and collection procedures is a major task that would be addressed in the program of management assistance (para. 6.08).
Accounting System
7.12 Apart from the accounts of the former SONADEand regies, which were kept independently and on an accrual basis, the accounts for water supply and sewerage services in the cities formed an integral part of the municipal accounts. In general, fixed assets and inventories were not recorded. The existing accounting systems need considerable improvement if they are to properly reflect the operations of the regional companies. Assistance to the regional companies in introducing improved systems would be provided under the proposed technical assistance program (para. 6.08).
Aufit
7.13 The accounts of the entities which were merged into the newly created regional companies have not been audited for some time. As public enterprises, the accounts of EPEOR and EPECO are subject to audit by "La Cour des Comptes," a Government accounting office. As this office generally limits its work to a review of the annual financial statements, a more systematic audit of the accounts of EPEOR and EPECO would be necessary. In addition, the staff of the companies, particulary during their formative years, would benefit from a regular exchange of views with auditors who have broad experience in public utilities practices.
7.14 At negotiations, agreement was reached that EPEOR and EPECO would appoint auditors acceptable to the Bank to audit their accounts, and that their annual financial statements certified by their auditors as well as the audit reports would be submitted to the Bank not later than nine months after the end of each fiscal year, beginning with 1986. A state audit firm, the "Societe Nationale de Comptabilite" (SNC), has been carrying out the audit of -26-
Bank projects in the public utilities sectors. Provided that SNC has the necessary staff to carry out the audit of accounts of EPEOR and EPECO, its appointment should be accepted by the Bank.
basxranee
7.15 The regional companies carry insurance for workmen's compensation, third party liability and motor vehicles. Other assets are self-insured by the Government. All supply and civil works contracts for the project vould be insured against loss or damage in shipment, accidents, fire and property -damage.
VUL FINANCAL ANALYSS
Present Financial Situation
8.01 The major entity in the creation of the regional companies was the municipal water supply and sewerage services. Operations of these services, however, were integrated in the overall ulnicipalaccounts, and as a result, uo reliable data regarding the levels of revenues and expenses tor water supply and sewerage were available at the time of the merger. Estimated income statements, balance sheets and sources and applications of funds by EPEOR and EPECO in 1984 are shown in Annexes 17 and 18. In that year EPEOR had an operating deficit of DA 13.5 million (US$2.7 million), and an operating ratio of 127 percent, while EPECO had a negative income before depreciation of DA 8.1 million (US$1.6 million) and an operating deficit of DA 15.2 million (US$3.0 million). These deficits were covered by Government contributions.
8.02 The bulk of existing fixed assets were financed by Government contributions. As a result, the regional companies virtually have no long term debt. This is reflected in the estimated debt:equity ratio of 1:99 for EPEOR and EPECO at the end of 1984. The relatively high level of receivable is due to the companies' practice of billing a full year's consumption at year end. Receivables will be reduced with the introduction of quarterly billing in 1986.
Rev-enues
8.03 The water tariffs of Oran and Constantine have remained unchanged since 1958. In 1984 they averaged DA 0.65/m3 (US$0.13/M3) in Oran and DA 0.60/m3 (US$0.12/M3) in Constantine. In addition to revenues from water sales, the companies derive income from meter rentals, connection maintenance charges and new connection fees. The present tariffs are too low as shown by the large deficits experienced by EPEOR and EPECO in 1984. Similar deficits occurred in previous years. But as the water supply operations were part of the municipal budgets financed by the Government, the deficits had little if any visibility. -27-
8.04 This situation, however, has now changed with the creation of the financially autonomous regional water companies and the expected approval by the Government of a national tariff structure which would become effective in September. The approval by the Government of the new tariff structure is a condition of effectiveness of the proposed loan. It is, however, expected to be met before loan signature in which case this condition would be deleted from the loan agreement. Under the new structure, progressive tariffs would be applied for domestic consumption. The structure would include a first usage block of 220m3/year at the rate of DA 1.0/m 3 which is considered affordable by low-income families. Additional annual consumption between 220m3 and 330m3 would be charged at DA 1.75/m3. Consumption in excess of 33Om3 would be levied at DA 2.50/m3. Meanwhile, public consumption would be charged at DA 2.5/M3 and industrial and commercial uses at DA 3.0/m3, in order to induce these consumers to restrict their water usage, which in turn would help reduce future capital outlays.
8.05 The new tariff structure is expected to yield an average revenue of DA 1.03/m3 in 1985 and DA 2.16f/m3 in 1986 for EPEOR, as compared to DA 0.65/m3 in 1984. In the case of EPECO, the average revenue would raise to DA 0.93/iM3 in 1985 and DA L.90/m3 in 1986, compared to DA 0.60/m3 in 1984. As a result, EPEOR and EPECO will have respective operating surplus of DA 61 million (US$12.2 million) and DA 6.5 million (US$1.3 million) in 1986. Moreover, in future years, the companies would be able to finance part of their capital investments with internally generated funds (para. 8.07).
Financi Performance
8.06 The Government's financing plan for the public sector in 1985 ("Loi des Finances" for 1985), which applies to EPEOR and EPECO, states that investments of public enterprises should be financed by local and external borrowings, Government equity contributions, and the enterprises' internal cash generation. The share of each of these financing sources would depend on the nature of the investments and would be determined by the Ministry of Finance. This reflects the increasing awareness in Algeria of the need to improve the self-financing capability of public enterprises. Water tariffs have been too low for so long, however, that realistically they cannot be increased in one step to the levels that would generate cash sufficient to finance a substantial part of the investments. Tariff increases should be made progressively in parallel with the improvement of services.
8.07 A forecast of the companies' future financial performance is shown in Annexes 17 and 18. The assumptions made in preparing the forecast are described in Annex 19. Assuming that the tariffs would increase annually by about 4 percent and 7 percent for EPEOR and EPECO respectively -- a level within the margin of affordability of the consumers (para. 9.08) - EPEOR should be able to finance about L5 percent of its investments with internally generated cash from 1987 onward, while EPECO could finance 10 percent of its investments in 1987, and 15 percent in 1988 and subsequent years. The forecast net internal cash generation, though modest in the beginning, would represent a major improvement over past performance and is acceptable at present. -28-
.8.08 At negotiations, agreement was reached with the G¢vernment, EPEORand EPECOthat:
(i) the Government will authorize EPEOR and EPECO to charge the tariffs necessary to generate, during each fiscal year, revenues sufficient to cover their operating expenses (excluding depreciation),debt service requirement,any increasein working capitalother than cash, and from 1987 not less than 15 percent of the annual average of EPEOR'sestimated capital expenditures in the year consideredand the two followingyears, and by EPECO not less than 10 percent in 1987, and not less than 15 percent in 1988 and thereafter;
%iii) not later than November30 of each year, startingin 1986, EPEOR and EPECO will prepare and review with the Governmentand the Bank their financial forecast for the next three years, indicating the necessary actions they will take to generate adequaterevenues during the ensuingyear.
FinaneiggPlan
8.09 The followingsets out a financingplan for the investmentsto be made by EPEOR and EPECO during the period 1985-92: -29-
FINANCINGPLAN (1985-1992)
EPEOR EPECO
DA DA __,D -Million- -- Million- S Requirements
Proposed Project 1,955.30 391.06 55.6 741.40 148.28 52.5 Other Investments 1,236.18 247.24 35.1 559.36 111.87 39.7 CapitalizedInterest 281.53 56.31 8.0 82.47 16.49 5.8 Increase in Working Capital 44.28 8.85 1.3 27.72 5.55 2.0
TOTAL REQUIREMENTS .517I2 703.4 JQQ Q 1.410.9S 282.1I MUQ2
Sources
InternalCash Generation 1,117.76 223.55 31.8 334.87 66.97 23.7 Less: Debt Service 318.49 63.70 9.1 122.92 24.58 8.7
Net InternalCash Generation 799.27 159.85 22.7 211.95 42.39 15.0
Borrowings: Proceeds of Bank Loanl' 1,090.01 218.00 31.0 422.47 84.49 30.0 Other Loans 290.00 58.00 8.2 - -
Total Borrowing 1,380.01 276.00 39.2 422.47 84.49 30.0
GovernmentEquity Contribution 1,338.01 267.61 38.1 776.53 155.31 55.0
TOTAL SOURCES 3.12 7 1°..a LJ.9L.25 2aL2. I=0L.
8.10 As shown in the plan, about 62 percent of the capital requirements for the Oran sub-project would be financed by EPEOR.Le In Constantine, EPECO11 would finance 45 percent. In both cases the remaining requirements would be covered by Government equity contributions.
*'11 Based on a constant rate of exchange of US$1.0 - DA 5.0.
A/ Includes refinanced interest during construction.
~'°' Including borrowings to be serviced by EPEOR and EPECO i.e.: 39.2 percent and 30.4 percent of the total requirements respectively. -30-
FutureFinancial Performance
8.11 The financial performance of EPEOR and EPECO is expected to improve substantially in the years following the project completion. EPEOR's operating ratio is projected to decrease from 110 percent in 1985 to 67 percent in 1992, that of EPECO from 155 percent to 71 percent during the same period. Their rate of return on net fixed assets would be somewhat adequate during the project construction period (about 3 percent) and would substantially increase in the following period. The debt service coverage would be adequate for both companies, about 1.3 times for EPEOR and EPECO in 1991, the year in which they will start servicing the debt contracted for the project.
Momtoring System
8.12 Annex 20 shows the technical and financial indicators which would be monitored during the project execution. This Annex also gives the values forecast for the indicators in the years 1986 through 1992. These values were discussed and agreed with EPEOR and EPECO during negotiations. Agreement was also reached with EPEOR and EPECO that they will: (i) report the evolution of the indicators to the Bank on a quarterly basis during the project execution, and on an annual basis for five years after the project completion; and (ii) carry out any reasonable remedial action suggested by the Bank, aiming at meeting the targeted values of the indicators.
DC. PROJECT JUSTIFICATION
Objectives of the Proposed Investments
9.O The need for improving and increasing urban water supply to Oran and Constantine is self-evident. The present supply is about 35 percent short of the demand in Oran and 44 percent in Constantine. The current per capita consumption in the two cities does not exceed i40 liters/day; it reaches 200 liters/day in Algeria's neighboring countries where per capita income is much less. The shortage of running potable water inside the dwellings, coupled with population congestion and defective sanitation, appears to be the leading cause of some infectious diseases in the large urban areas. Cholera, typhoid, paratyphoid, dysentery and infectious hepatitis are endemic in Oran and Constantine.
9.02 The proposed works in Oran would increase water production to the level required to eliminate the current supply deficit and to meet the demand up to the year 2,000. The quality of water served in this city also would be greatly improved. In Constantine the production increase would only meet the 1993 average demand; the construction of another larger project, which is under design, and which would meet longer term demands, would start in early -31-
1989. The project would benefit some 2.1 million people living in the two urban areas. It would help meet water supply needs in the developing and poorer districts where a majority of the population lives. The proposed works would also provide water for industry in the Constantine area where industrial development has been slowed down because of lack of basic services.
TechnoloyicalAspects
9.03 Close to Oran the water sources are brackish and need to be treated before they can be used for domestic consumption. Fresh water is located far away (more than 100 kms) from the urban centers and sometime needs to be elevated to reach them. Various alternatives were studied for increasing the supply to Oran, covering desalination, gravity or pumping supply. The proposed project for Oran was found to be the least-cost solution at discount rates of 8 to 12 percent. As some of the Oran facilities, like the diversion dam and the Djebel Zioua Reservoir, cannot be built in stages, full development of the Lower Tafna River scheme is scheduled to be carried out in a sirgle stage. It is also the most economical alternative, since in this case, the pumping stations' equipment would be most efficiently utilized.
9.04 In Constantine the two sources considered are the closest to the city and the least-cost alternative to increase the city's supply. The proposed project, however, would only meet the short-term demand. A new project must be developed to satisfy the long-term demand. The groundwater presently used for irrigation would be taken away for domestic consumption. In compensation, wastewaters would be collected and treated for reuse in irrigation. To ensure the highest possible degree of purification of the wastewaters at reasonable costs and thus the safety of farmers, an extended aeration process followed by secondary settling and disinfection by ozone have been retained for the treatment plant. Similar results at a slightly lesser cost could be obtained with lagoons. But the large area needed for this process is not available close to Constantine.
Economic AccePabiity
9.05 The overriding justification for the proposed investments is the need to provide the large metropolitan areas of Oran and Constantine with adequate public water supply services. The proposed project is the least-cost solution to meet that need. If the production increase, valued at the proposed tariff in 1985, is taken as a minimum measure of the project benefits, the internal economic rate of return on the investments is about 9 percent.
9.06 The calculated return, however, understates other project benefits. The many health and environmental benefits that the project would generate, such as (i) reduced expenses for health care; (ii) welfare improvement of women and children who actually spend much time looking for water; (iii) higher productivity of children in school; (iv) improved welfare of the population, stemming from a cleaner and better environment; and (v) workers' higher productivity as a result of better health, should produce a higher -32- economic return on the proposed investments. These benefits, however, are difficult to quantify and a more comprehensive return cannot be calculated.
9.07 A sensitivity analysis of the return shows that it is not significantly sensitive to moderate changes in the capital costs and water sales. Should the costs increase or the sales decrease by 10 percent, the rate of return would decrease to about 8 percent. Should both the cost increases and sales decreases take place simultaneously for the project, the return would decrease to about 7 percent, which is still acceptable considering the social character of the project. Variations in the operating expenses were not considered, as any increase of these expenses should be compensated by a proportional increase of the revenues.
Affordability
9.08 In 1980 the relative poverty level in urban areas was estimated to be DA 1,270. The results of a survey of household expenses for basic items, carried out in that year, are given in Annex 22. At present, water supply accounts for less than 1 percent of a household's total expenses and is not considered a burden on the household budget. It is estimated that even the lowest income population segment in the project ar2a would spend not more than 1.3 percent of their income for water supply services, well below the usually accepted level of 5 percent.
Environmental!Mpact of the Project
9.09 The shortage of potable water in Oran and Constantine has resulted in deplorable sanitary conditions in these urban areas. The objectives of the project are to alleviate this shortage and to contribute to the improvement of environmental conditions in the country's second and third largest agglomerations. As a result of the project, wastewater in the two cities would increase and would need to be disposed of by acceptable means. The Oran sewer system has the required capacity to convey the expected additional wastewater. The project includes a sewerage component in Constantine where wastewater would be reused in irrigation.
Lstitution Building
9.10 A first step towards the reorganization and strengthening of the water supply and sanitation sector in Algeria was taken with the Algiers Sewerage Project (Loan 1545-AL), which included the establishment of a new water authority (SEDAL) in Greater Algiers, and feasibility studies in Oran and Constantine, the second and third largest cities. The objective was to put in place a financially viable water authority that could be used as a model in establishing similar organizations in other cities and wilayate. This was attained, as the Government has set up water companies similar to SEDAL in twelve regions of the country.
9.11 The next step would be to strengthen the management and financial -33- performance of the regional companies. The proposed project is conceived to reach that goal. It includes (i) technical assistance to the companies to develop their organization and training; and (ii) feasibility studies to improve water supply and sewerage services throughout the country. Solving the water supply problem of the urban areas is a difficult task for which the Government and the regional companies are conscious of the need for outside technical assistance. The Bank can help provide such assistance and the leverage required to support the implementation of sound managerial and financial policies in the sector.
RLk
9.12 There is a risk that the Government might not implement the projected tariff increases in the time required to attain the financial objectives set out for EPEOR and EPECO. This risk, however, is reduced by the Government's recent decision regarding the financial framework and objectives for the sector, which emphasize that the water companies would be managed as commercial enterprises and would charge the tariffs necessary to finance their investments through a mix of borrowings and internal cash generation.
9.13 There are no special risks involved in the technical execution of the project. The accuracy of the cost estimates is higher than usual, as they are based on bids submitted for about 60 percent of the contracts.
X. AGREEMENTS REACHED AND RECOMMENDATIONS
10.01 Agreement having been reached on the issues outlined in Chapters V through VIII, and subject to the condition of effectivmnes; set forth in para. 5.21 and 8.04, the proposed project is suitable for a Bank loan of US$262 million to the Government of Algeria for a term of 15 years including 4 years of grace. -34-
-I
mTioini Mml P1PLYAD seem 0~
t!E LEVELSD 1_0-E8 13 o1-1U1
EstUi- ini SUPL SEMamS ST asE PIpilatiem oCemtim Pe C_ oe. St_ra_ Sw,im _e. o. Of - ofr Po. S af Pop. Ot_w TM* or city isI_1.00 j d y .Ild...w Tolme. SI S of Cowl. Lime Pars. Pu Lime MIWaSmw MiH S. Tat %St &a'
Coma1tuime S0.0 57.456 115 S.O0 7 22.000 2O2 91 - 9 C"bifd A_M V3Am 45.DDD in 21 j 51 14.o.o u.4 35 - S COM11 Sidt 8.1 Ab 113.9 15.000 8 19.000 17 Z8.500 21.0 - - - _ Stif 144S D.nD 206 7.000 2 l0.5o 13.7 100 - - Coim sat"U 140.0 22.000 1 37,500 1 11.150 12.6 100 - commS 1isKra 105.5 13.150 1O 11.80O a 12.20 0o6 - 20 C1i.e TIzI 1kmi 101.5 19.9#0 W ll,SO D 4.D00 22.6 10 - - ci1ed T111t 92.5 16.020 173 30.DO 190 9.570 9.7 s0 - 10 Ci1.d Umchm 80.4 6.3D0 78 .2 146 9.20 U S6 70. 11 tS Coined wdia 7S.3 12.000 159 i2n.116 12.332 6.1 _ 10 _ _ 1j am krwIdj 60.0 780 114 6.000 76 JA 17 1w - - climed PodI. 66.4 9.480 143 8.1750 92 6.6D00 11 10 - - Cionrd _m1amie S5 7.a00 170 6.150 96 5.070 1.S 93 - 7 C uird El Eblu 57.1 2.000 3S 3.010 1 4.20 123 100 Co-b11d Tcmwt M3A 2.880 1S0l0W 35 3.000 17.7 - - - - I a"uet 4.5 11.80 2"4 3.750 32 6.310 7.7 20 so - SW-SWd iij.l 36.0 8.600 2il 14.400 167 4,70 7. S8 5 IS C1i.e qswEl bOUKbWI 29.2 4.460 153 3.950 81 2.630 11.1 a5 - IS Co_1ed Choi 26.0 530 20 2.000 377 - - 59 - 41 Coimd E1 ol6 26.6 7.040 26 2.5W0 36 1.6as 14.7 - 45 S5 an El =1mapil 21.2 5,71? 2D0 5.9S 103 - - - 10 gO - 2Sururi 199 3.760 190 4D0 11 3.200 6.2 50 50 - S5pNWW Sidi.Alch 1i.3 1.108 65 1.;D0 135 2.950 6.2 9S 5 - COieed Anlo 17.9 2.EO0 156 8.000 296 2.om .l8 - - - - -ess 16.3 749 46 l.WO 134 1.J 12.7 s0 - 40 CtOmimd So El -aS 15.0 l.SDO 10 1.660 111 1.310 11.5 96 - 2 C01.e El Kale 12.5 2JBD 12 3.850 169 1.020 12.3 - - - - Tiadmuf 12.1 9W 74 1.450 161 770 15.7 40 60 - Coibed Ati Abid 7.4 300 41 30 1W 610 12.1 90 - 10 Cmied loetldja 6.3 1037 165 1.450 140 470 13.4 81 - 19 Cimed Tblit 5.1 1.176 231 450 33 720 7.1 10 - - Sip-ated Owl Abas 3.9 8W 215 1.370 163 69D 5.7 94 6 - Comid -- i 51_m 3.2 616 193 560 91 63 5.1 100 - - Coilmd 1g1 2.5 5S0 224 - - 40 5s. 100 - 4obned El ltia 2.1 344 164 200 St 233 7.4 100 - - to1jd -35- AENIEX2
IITAtIAL MATERSUPPLY AM SEMU6ERtPROJECT
wa StlBPROECT
MATERSALES BY EPEOR II 1994
Total Mater Dulk Retail Unaccouited Per Capita Vtlaya and Town Population Produced Sales Sales for Water Conuption 1.OOD l1 3 S liters/da,y
ORANNILAYA A. Oinstic-Comaercial.4ublic Oran City 677.8 29.097 - 22.521 22.6 91.0 Hers El Kebir 9.5 0.397 - 0.307 22.7 88.s Es Senia 21.1 1.190 - . 0.921 22.6 119.6 Bir El Djir S.6 - 0.763 - - OuedTlelat 6.3 - 0.244 - - - Bethiona 6.9 - 0.19 - -S Arzew 32.2 - 1.6 - - Boufatis 4.2 - 0.214 - - Boutelis 4.1 - 0.214 - - - BC-8 - - 0.061 - - - Wdylel 14.4 - 0.183 - - Dasa Navale ers - - 0.732 - - USTO_ - - 0.183 - - B. Industry Es Senia uiLAIT - - 2.440 - - Arzew - Hassl Ameur Zone 1 Arzew - - 8.174 - -
TLEMCENWILAYA A. DoesticCmemrcial-Public Tlence. City 113.4 8.199 - 5.739 30.0 138.7 Rench1 16.7 - 0.427 - - - Ouassars. He_aya A. El Houtz, Bensekrane Sidi Abdelli 24.2 - 0.488 - - B. Industry - - 3.348 - -
SIDIBEL ABES WILAYA A. Doaestic-Co..ercial-Publ ic Sidi Bel Abes City 160.0 7.253 - 5.077 30.0 86.9 Ain Tenouchen 39.1 Chabat El Leham 7.3 Ha a Bouhadjar 17.6 Ain El Ar-ba 9.0 - 1.373 - -
El Malah. El Auria 21.0 Hassi El Ghela 5.4 Ain El Beida 4.0 - 0.732 - - B. Industry Sidi BelAbes - - 1.146 - - SOHIPEC- El Airia - - 0.153 - - -
MASCARAILAUYA Mascara City 64.7 5.361 - 3.753 30.0 158.9 VHauzandia 39.4 - 2.5S66 - - - Sig 38.0 - 1.519 - -
TOTAL 1,341.9 51.497 27.126 38.318 25.6
Total water produced in 1984: 78.623 Nx3 -36-
ANE 3
PLGEtIA
NATIOIALiRTER SMTY ANDSFEIU6E PR0UICT
amANS9IICT
ATERSALES BY EPEOR IN 198S
Total later Bulk Retail Unaccouted Per Capita ilLya a id Tom. Population Produced Sales Sales far Water C pt1 1.000 13------s liters/day
OWMIHILAYA A. Da.estic-Comercial-Publ c Orin CitY 704.9 29A97 - 22.521 22.6 87.5 Hers El Kebir 9.7 0.397 - 0307 22.7 86.7 Es Senia 22.1 1.190 - 0.921 22-.6 114.2 Bir El Djir 5.7 0.763 - 0.5?4 30.0 256.7 OuedTlelat 6.5 02U - 0.171 30.0 72.0 BLethiau 7.2 0.5O9 - 0.363 30.0 138.2 Arzew 34.1 1.647 - 1.153 30.0 92.6 Boufatis 4.3 0.214 - 0.150 30.0 95.4 Bautelis 4.2 0.214 - 0.150 30.0 97.7 IC-8 - - 0.061 - - - 6dylel 15.2 0.1B3 - 0.128 30.0 23.1 Base Navale Hers - - 0.732 - - - IiSWO - O.183 - _ B. Industry - - 11.145 - - -
TLE1N MILAYA A. Domestic-Coercia1-Pub1Ic T-ic1m City 117.1 8.548 - 5.984 30.0 140.0 Richi 17.3 0.947 - 0.663 30.0 105.0 Ghazauet 13.4 0.628 - 0.440 30.0 90.0 Beni Stf 29.1 1.75 - 1.221 30.0 11S.0 Sedu 13.9 0.652 - 0.456 30.0 90.0 ahDl 47.6 2.978 - 2.0 30.0 120.0 Nedrm 17.9 0.980 - 0.686 30.0 105.0 Oassas, Hemnay A. El Houtz. Bensdcrame Sidi Abdelli 25.4 1.324 - 0.927 30.0 DO1.0 S. Industry - - 3.515 - - -
SIDI EL AES ILAYA A. Domestic-C_nercial-Publ ic Sidi Bel Abes City 167.2 7.8 - 5.309 30.0 87.0 Sidi Lhceene 6.5 0.132 - 004 28.0 40.0 Ben Bodis 9.6 0.243 - 0.175 28.0 50.0 Telagh 13.1 0.342 - 0.239 30.0 50.0 Ain El Arba 9.2 0.240 - 0.168 30.0 50.0 Sf1sef 19.4 0.590 - 0.425 28.0 60.0 Ain Temouchen 40.5 lA89 - 1.183 30.0 80.0 Chabat El Lehm 7.5 0.152 - 0.110 28.0 40.0 El Malah. El Ar1ia Hassi El Ghala Ain El Beida 30.8 - 0.024 - - - B. Industry - - 1.364 - - -
CAMMWILAYA A. Donestic-Coinrcial-Public Mascara City 67.0 3.842 - 2.690 30.0 110.0 hbammdia 40.8 2.34D - 1.638 30.0 110.0 TighenDif 21.3 0.648 - 0.466 28.0 60.0 Sig 39.1 1.549 - 1.85 30.0 76.0 Ghriss 5.2 0.105 - 0.076 28.0 40.0 Khessibia 3.1 O.063 - 0.045 28.0 40.0
TOrAL L1575.9 71.789 17.024 52.563 26.8 91.4
Total water produced In 1984: 88.813 NO -37-
AlSnx 4
NRTIfL MM SUPPLYAM S-9E W.XCa
Rs. snoar
AiERSAE B? EffO In 11 TIsOUU 1992
isa 12V187 ism is 190 1i99i i Mater Mater r Mter vaterter Mater Pop. Sales PIp. his Pap. Sales POP. Sales Pop. Sales Pop. Shsl Pep. Sales 3 3 3 3 3 3 Wi11a ad Tom 1.acua io ioW iaa is 1nca n.3 i,OCOn 1 000 it i.oa it
SRAXMILATA A. ODhrstic-Cnmrcial-Public Oren City (variable) 733.i 22.10 r62. Z2.521 792.9 41.23 824.6 49.S 853.5s52.064 83.4 54.770 914.3 56.700 Is El labir (variable) 10.0 0307 10.2 0.307 iO.S 0.546 10.8 0.653 11.1 0.677 11.3 0.701 11.s 0.714 EsSeeas (vrlabie) 23.2 0.921 24.4 0.921 25.6 133 26.9 1427 28.2 1.720 29.6 1.835 31.1 1.923 Dir El Ojir (variable) S.9 0.19 6.1 0.194 6.3 o0.B 6.5 0.393 6.7J 409 7. 0.434 7.2 0.46 aed Tlelat (varibie) 6.7 0.218 7.0 0.218 7.2 0.374 7.5 0.456 7.7 0.470 8. 0.496 8.2 0.5 thtoea - 95 p6d 7.5 0.260 .7.9 0.274 8.2 0.29 8.6 0.298 9.0 0.312 9.4 0.326 9.8 0.340 Arz - S3pcd 36.1 I.22 38.3 1.300 40.6 1.378 43.0 1.e 44.9 1.524 47.0 1.595 43.2 1.670 amfatis- 9S pcd 4.5 0.156 4.6 0.160 4.8 0.166 5.0 0.173 5.1 0Qi77 5.2 0.1W0 5.3 0.183 atalls (variable) 4.4 0.147 4.5 0.147 4.7 0.24 4.8 0.290 5.0 0.305 5.2 0.322 5.4 0.334 Sdylel -95 psd 16.2 o0.52 17.1 0.593 18.2 0.631 19.2 0466 20.4 0.707 21.6 0.749 22.9 0.794 S. Industry
ULNs MILAlA A. Dourstic-Cmral-Public Tnmcrn City - 140O 120.8 6.173 124.7 6.37Z 128.7 6577 132.8 6.76 137.0 7.001 141.4 7.22 145.9 7.456 fl - 105 pd 17.8 0.62 13.4 0.705 19.0 0.72B 19.6 OJS1 20.2 0.774 20.8 O.97 21.4 0.820 Oazaet - 9Opcd 13.8 0.453 14.2 0.466 14.7 0.403 15.1 0.496 15.6 0.512 16.1 o0529 16.6 0.545 SeBoSaf - 115pcd 29.8 1.251 30.5 1.280 31.2 1.310 31.9 1.39 32.7 1.373 33.4 1.402 34.1 1:431 Sda - s pd 14.4 0.473 1S.O 0.493 154 0.512 16.3 0.535 17.0 0.s58 17.7 0.5l 18.4 0.604 laghima - IM p-d 49.2 2.155 51.0 2.234 52.7 2.308 54.6 2.391 56.5 2.475 s8.5 2.562 60.6 2.65 edorn - 105 pod 18.5 0.709 19.1 0.732 19.7 O07ss 20.3 0.778 21.0 0.S05 214 O.2B 22.2 o0.5 bled Munss - pSd IS.0 0.274 154. 0.205 16.1 0.294 i6.6 0.303 17.2 0.314 17.8 0.325 18.4 0.33 Sekrae (variable) 6.7 0.103 6.9 0.103 7.1 0.135 7.4 0.163 7.6 0.169 7.8 0.177 8.0 O.12 Hmag (variable) 10.8 0.166 11.1 0.166 1.S 028la 11.8 0.261 12.2 0.272 12.6 0.2M5 13.0 0.294 Sabra - 40 pcd 8.8 0.128 9.0 0.131 9.3 0.136 9.s 0.139 9.8 0.143 10.0 0.146 10.2 0.149 Sidi Abdelli (variable) 4.7 0.072 4.8 0.072 S.0 0.095 5.2 o0.1S 5.4 0.120 s5 0.127 s.8 0.132 B. industry - 12.617 - 13.202 - 15.1U - 17.460 - 19.206 - 21.127 - 23.1W
0IDIDEL A8ES MILAYA A. Obstic.Cwcial-Public Sidi Bel Abes City - 87 ped 174.7 S.S48 182.6 S.798 190.8 6.059 199.4 6.332 208.3 6.615 217.7 6.913 227. 7.224 Sidi Labeom- 40 ped 6.7 0.098 6.9 0.101 7.1 0.101 7.4 0.101 7.6 0.111 7.8 0.114 8.0 0.117 kea Badis - s ped 9.8 0.179 10.1 0.184 10.4 0.190 10.7 0.19S 11.0 0.201 11.3 0.206 11.6 0.211 Telaogh - s pCd 13.6 0.248 14.0 0.256 14.5 0.205 14.9 o.27 15.4 0.281 15.9 0.290 16.4 0.299 Ala El Arb -S pcd 9.3 0.170 9.5 0.173 9.7 0.117 9.8 0.179 10.0 0.183 10.2 0.1Ke 10.4 0.190 Sitsef - 60 ped 19.9 0.436 20.4 0.447 20.9 0.459 21.4 0.469 21.9 0.480 22.5 0.493 23.1 o.5s6 Aln Tuhebn - 80 pCd 41.9 1.223 43.4 1.267 4.9 1.311 46.4 1.35 48.1 1.40S 49.7 1.451 51.3 1.438 Chaat El Lehos- 40 pod 7.6 0.111 7.8 0.114 8.0 0.117 8.2 0.120 8.3 0.121 8.5 0.124 B.7 0.127 Sidl All Baechick- 40 ped 3.7 A04 3.8 o.5ss 3.9 0.057 4.0 O0AD 4.2 0.061 4.4 OA4 4.6 0.067 Rat El Ka - 40 pod 7.2 O.OS 7.5 0.110 7.7 0.112 7.9 o.11s 82 0.120 0S. 0.124 8.8 0.12B Ham tBadjar - sOpSV 18.3 0.334 1a.7 0.341 19.0 0.347 19.4 0.354 19.8 0.361 20.2 0.369 20.6 0.376 El Aria - 40 pcd 10.8 0.158 10.9 0.159 11.1 0.162 11.3 0.165 ll. o.1sa 11.7 0.171 11.9 0.174 El iala - 40 ped 10.9 0.159 11.0 0.161 11.2 0.164 11.3 0.165 11.S 0.168 11.6 0.169 11.7 0.171 Hissi El hela - 40 pcd 5.4 o.o07 s.s 0.00 s.s 0.00 5.5 O.OEO 5.6 OABt 5.6 OAR LJ 0.083 Sidi BSe Adda- 40 ped S. o ee s.s o.o06 6.1 0.09 6.3 o.02 6.5 O.oS 6.7 o0.s0 6.9 0.101 B. industry - 1.432 - 1.504 - 1.654 - 1.820 - 1.965 - 2.103 - 2.251
MtASCAAMILATA A. lowestic-Ceoincia1lPublic MascaraCity - 110 pd 69.3 2.782 71.7 2.879 74.3 2.983 76.9 3.068 79.5 3.192 82.3 3.304 85.2 3.420 ehamadia- 110 ped 42.2 1.694 43.7 1.755 45.2 1.815 46.8 1.79 48.S 1.947 S0.2 2.016 52.0 2.08 Ti1m9nnif - 60 ped 21.9 0.48D 2246 0.495 23.3 0.510 24.0 0.526 24.7 0.541 ZS.4 0.556 26.1 o.sn Sig - 76 pcd 40.3 1.118 41.5 1.151 42.7 1.184 44.0 1.221 45.3 1.2S7 46.7 1.29s 48Li 1.334 Qriss - 40 pSd 5.3 0.077 s.5 OA8 54C 0.082 s.8 0.085 5.9 OA6 6.1 0.09 6.3 O.O2 edmnfiati - 40 pod 6.2 0.091 6.4 0.093 6.6 0.096 6.8 o.099 7.1 0.104 7.3 0.107 7.5 0.110 E1Brdj - 40 pcd 7.Z 0.105 7.3 0.107 7.s 0.110 7.6 0.111 17. 0.114 7.9 O.1S 8.0 0.117 El aschel- 40 pcd 6.3 0.092 6.5 0.095 6.7 0.0es 6.9 -0.101 7.1 0.104 7.3 0.107 7.5 0.110 bad Abtal - 40 ped 5.9 0.086 6.1 0.089 6.2 0.091 6.4 0.093 6.5 0.095 6.7 O0.9 6.9 0.101 Zabea - 40 pSd 7.9 0.115 8.3 0.121 8.7 0.127 9.2 0.134 9.7 0.142 10.1 0.147 lO.S 0.153 El Felana - 40 Pd 5.6 0.082 5.8 0.0As 6.0 OOB 6.1 0As 6.3 0.092 6.5 0.95 6.7 o.oss Hessine- 40Upd 4.2 0.061 4.4 o.864 4.5 0.66 4.6 0.067 4.8 0.070 4.9 OA72 .0 0.073 Sidi Kda - 40 pe 3.7 0.054 3.8 0.055 3.9 O057 4.0 0.05B 4.2 O.61 4.3 0.063 4.4 OA4 Oed Tha - 40 ped 4. 0.067 4.8 0.070 4.9 072 5.1 0.074 5.3 0.077 54 0.079 s.s 0.061 Khessibla - 40 pSd 3.3 0.048 3.4 0.o50 3.6 OA03 3.7 0.054 3.9 OA5 4.1 0.060 4.3 0.063 1ebaita - 40 pSd 3.3 0e048 3.4 0.050 3.6 0.053 3.7 0A54 3.9 0.057 4.1 0.060 4.3 0.063 DealeneMskine - 40 pod 3.6 0.053 3.7 0.054 3.9 0.057 4.1 0.60 4.3 003 4.5 0.066 4.7 0.069 Al El ba-4 cpd 7.6 0.1118.0 0.117 .4 0.123 8.8 0.123 9.2 0.134 9.7 0.142 10.2 0.14
TOTAL 1.751 8 694_ 11818.2 n.12 l.6jM 94.258 1.956.4 107219 2.025.7 112.4s52.096s.s11848 2 16.9 124.4_0
uAa1 6rewtb Rate (1) 3.7 - 3.7 2.5 3.7 28.2 3.7 12.9 3.5 5.1 3.4 5.3 3.4 4.5 Avg. Per Capita Consawtiua (iitersday) 107 - 106 - 135 - 148 - is1 - 153 -38-
ANNEXS
ALGERIA
NATIOIULMATER SUWPLY AD SENWtE PRWECT
COSTMINE S(#PROJECT
AVAILABLEPROOIICTION IN AREASSERVED BY EPECO*
1984 Est. Systm Source Tmws Served Pop.('000| 1981 1985 1986 1997 1988 1989 1990 1991 1992 pm3
A. COSTAIITINEVILAYA
1. Boutmina. Fezguia, Constntine. El lrob 50.5 19.8 19.8 19.8 32.4 32.4 48.2 48.2 48.2 48.2 Bou Nerzaug 2. St.F2 H. Bauziane H. Bouziam, Didoudce 33.6 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 Howad 3. Salab Bey-duira Salah Bey. 8lekra - 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 4. OuedAthaonia OuedAthimmia 10.6 - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 5. Tadjebanet Tadjehanet 11.9 - - 0.3 0.3 0.3 0.3 0.3 0.3 0.3 6. 6rf aea 8.4 - - 0.8 0.8 0.8 0.8 0.8 0.8 0.8 7. Telerghaa Telerghma 12.8 - - 0.9 0.9 0.9 0.9 0.9 0.9 0.9 8. Ain Abid Ain Abid 5.2 - - 0.4 0.4 0.4 0.4 0.4 0.4 0.4 9. Chelghoum El Aid Chelghoor El Aid 27.4 - - 1.7 1.7 1.7 1.7 1.7 1.7 1.7 10. MUla H1la 21.3 - 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8
TOTALMILAYA 633.7 21.9 22.7 27.8 40.4 40.4 56.2 56.2 56.2 56.2
B. JIJEL VILAYA
11. Djen-Den. Nncha J1Jel 48.5 5.1 5.1 5.1 5.1 5.1 5.1 5.1 5.1 5.1 El Achouet, Kissir 12. Kaous Kaous - 1.5 1.S 1.5 1.5 1.S 1.5 1.S 1.5 1.5 13. Taher Taher 19.8 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 14. El ulia El Itlia 19.7 - - 1.9 1.9 1.9 1.9 1.9 1.9 1.9 15. FerdJioua Ferdjioua 8.7 - - 1.8 1.8 1.8 1.8 1.8 1.8 1.8
TOTALVILAYA 96.7 7.8 7.8 11.5 11.5 11.5 11.5 11.5 11.5 11.5
C. OUM-EL-BOUAGN[MILAYA
16. Bir OJedida Ou_El-Bouaghu 20.6 2.5 2.5 2.5 2.5 2.5 2.S 2.5 2.5 2.5 Aln Babouche 17. F'Kirina Aln Beida 47.9 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 18. Begaga Khenchela 60.2 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 19. Aln N'LiIa Ain W'Lila 26.6 - 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 20. Meskimaa Neskima 11.7 - - 1.2 1.2 1.2 1.2 1.2 1.2 1.2 21. Aln Fekroun Aln Fetroun 16.1 - - 0.9 0.9 0.9 0.9 0.9 0.9 0.9
TOTALIIIAYA 183.1 8.3 11.2 13.3 13.3 13.3 13.3 13.3 13.3 13.3
TOTALEPECO 913.5 38.0 41.7 52.6 65.2 65.2 81.0 81.0 81.0 81.0
* Available production Is given for a systa only after the syste has been taken over by EPECO. -39-
ANNEX6
ALGERIA
MATIONOLITER SUPPLYAND SEWSRA6E PROJECT
CONSSrTINE SUEPROJECT
ATEROEIIIND IN PROJECTAREKY
Itm 1977 1984 1985 1986 1987 1988 1989 1990 199 1995 2000
Total Population ('000) 423.3 537.1 554.8 572.3 590.3 608.9 628.0 647.9 666.4 746.0 843.3 Average Amual Growth Rate (1) - 3.4 32 3.1 3.1 3.1 3.1 3.1 2.8 2.8 2.5 Numberof Housebolds ('000) 63.2 80.2 82.8 85.4 89.4 92.3 95.2 99.7 104.1 118.4 136.0 Average No. Persoansiousehold 6.7 6.7 6.7 6.7 6.6 6.6 6.6 6.5 6.4 6.3 6.2
Population Connected ('000) 372.5 483.4 500.4 517.9 535.4 554.1 573.4 592.8 611.1 686.3 778.4 Population Connected (S) 88.0 90.0 90.2 90.S 90.7 91.0 91.3 91.5 91.7 92.0 92.3 Nt,er of Customers ('000) 55.6 72.1 74.7 77.3 81.1 84.0 86.9 91.2 9S.5 108.9 125.5 Additional Customers('000) - 1.5 2.6 2.6 3.8 2.9 2.9 4.3 4.3 13.4 16.6 Numberof Master Meters ('000) - 24.0 24.8 25.7 27.0 28.0 28.9 30.4 31.8 36.3 41.8 Additional Master Meters ('000) - 0.5 0.8 0.9 1.3 1.0 0.9 1.S 1.4 4.5 5.5 Avg. Per Capita Water Needsm 3/pa - 51.0 51.5 52.0 52.5 53.0 53.5 54.0 54.5 56.5 59.0 Total Water Use !a/pa - 24.7 25.8 26.9 28.1 29.4 30.7 32.0 33.3 38.8 45.9 Unaccountedfr Water(S) - 30 29 28 27 26 25 25 25 24 23 3 Water DmandMm pa - 35.3 36.3 37.4 38.5 39.7 40.9 42.7 44.4 Sl.l 59.6
Available Production Ym /pa - 19.8 19.8 19.8 32.4 32.4 48.2 48.2 48.2 48.2 48.2 Production Deficit/Surplus Mm3/pa - (15.5) (16.5) (17.6) (6.1) (7.3) 7.3 5.5 3.8 (2.9) (11.4)
Water Sales IW3/pa - 13.9 14.1 14.3 23.7 24.0 30.7 32.0 33.3 38.0-1 45.9! Additional Sales Dueto Proposed Projects ba/pa - - - - 9.4 9.7 16.4 17.7 19.0 24.5 31.6
1J All figures refer to aid-year data. V/ Increases due to a newproject. -40- ANEX7
AL6ERIA
UawrsaTrInE sanr amoc
FRECAsTREITaL MAnT SAES aY cE'Cco
1984 iQs 'gmr ' 1997 IoSn 199 190 1991 1992 Twn Fp. Sale Pp. sales Pap. Sales Pap. Sales Pop. Sales Pop. Sale Pop. sales Pp. Sales Pap. Sales 3 1.en0o_0 1'-00 NaPupa on m1jma II ot O!ap.!za I . na iat !k.33ha iaOt Is
Gtr.Caastantlne 537.1 13.9 554.8 14.1 572.3 14.3 590.3 23.7 608.9 24.0 62.0, 30.7 647.9 32.0 666.4 33.3 685.4 34.3 (tVriable Pere. Cen.)
Cad AttmaI 10.6 - 10.9 - 11.3 0.2 11.6 0.2 12.0 0.2 12.3 0.2 12.7 0.2 13.1 0.2 13.5 0.2 (50 pci,
TadMaet 11.9 - 12.5 - 13.1 0.2 13.8 0.2 14.5 0.2 15.2 0.2 16.0 0.2 16.8 0.2 17.6 0.2 (50 pcdj
Crarle 8.4 - 8.6 - 8.7 0.2 8.9 0.2 9.1 0.2 9.2 0.2 9.4 0.2 9.6 0.2 9.8 0.2 (SD pcdj
1elergl_ 12.8 - 13.4 - 14.1 0.3 14.8 0.3 15.5 0.3 16.3 0.3 17.1 0.3 17.9 .0.3 18.7 0.3 (50 pcd3
Ain Al d s5.2 5.4 - 5.5 0.1 5.7 0.1 5.9 0.1 6.1 0.1 6.2 0.1 6.4 0.1 6.6 0.1 (SO pcd)
Chelgbo. El Aid 27.4 - 28.3 - 29.2 0.6 30.1 0.7 31.1 0.7 32.1 0.7 33.1 0.7 34.1 0.7 35.1 0.7 (60 pcd-
Nhla 21.3 - 21.9 O.S 22.6 0.5 23.2 0.5 23.9 0.5 24.7 O.S 25.4 0.6 26.2 0.6 27.0 0.6 j60 pcd)
.113. 48.5 1.4 50.6 1.5 52.7 1.S 54.9 1.6 57.2 1.7 59.6 1.7 62.1 1.8 64.7 1.9 67.4 2.0 (80 pcd)
Taber 194 - 20.6 0.4 21.5 0.5 22.4 0.5 23.3 0.5 24.3 O.S 25.3 0.6 26.4 0.6 27.5 0.6 (60 pcd)
El Mlla 19.7 - 20.5 - 21.3 0.5 22.2 O.S 23.2 OS 24.1 0.5 25.2 0.6 26.2 0.6 27.2 0.6 (60 Pcd)
Ferilolau 8.7 - 9.1 - 9.4 0.2 9.8 0.2 10.2 0.2 10.7 0.2 11.1 0.2 11.6 0.2 12.1 0.2 (SDpcd)
Oe.ul-Bumaghl 20.6 0.5 21.4 0.5 22.2 O.S 23.1 0.5 24.0 0.5 25.0 0.5 26.0 0.6 27.0 0.6 28.0 0.6 (60 pcd)
Aln Beldi 47.9 - 49.B 1.5 S1.8 1.5 53.9 1.6 56.1 14 58.3 1.7 60.6 148 63.1 1.8 65.7 1.9
iemebela 60.2 - 62.4 1.8 64.9 1.9 67.5 2.0 70.2 2.0 73.0 2.1 75.9 2.2 79.0 2.3 82.2 2.4 (SD P d)
Ain 'L1 'a - 27.7 0.6 28.8 0.6 29.9 0.7 31.1 0.7 32.4 0.7 33.7 0.7 35.0 0.8 36.4 0. (60 pcd)
Nesk1lna 11.7 - 12.1 - 12.6 0.2 13.0 0.2 13.5 0.2 14.0 0.2 14.5 0.3 1S.0 0.3 15.5 0.3 (50 ped)
Ain Fe Krou 16.1 - 16.8 - 17.4 0.3 18.1 0.3 18.9 0.3 19.6 0.4 20.4 0.4 21.2 0.4 2Z.0 0.4 (50 pSd)
Othrs _ _ - 1.3 _ 1.31 1.3 _ 1.3 _ 1.3 - 1.3 _ 1.3 1.31
TOTAL 914.5 15.8 946.8 22.2 979.4 25.4 ;,013.2 35.3 1.00.6 35.7 1.0E4.9 42.7 1,122.C 44.8 1.159.7 46.4 1.197.7 47.7
Y Esludluig sales to lbastries.
ME: Bulk Mtr Sales 1n 1984: 8.0 b3at A 0.43 1.5 Ua3xt 0.5W 1.1 Mu3 at D. 2.0/a WATERDEMAND, MmJ1YEAR
___o _____ 8 8_____o______
|: i 0 I §&l~~~~~~~~~~~~~C /1 - a1a1 |~~~~~~~~~~~~
M ______E .______
2r 1 T1 Ta10~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O ANNEX8 -42- Page 2 of 2
ALGERIA' NATOAL WATERSUPPLY AND SEWERAGEPROJECr Conslathi Subprict Wate DemnandFoecast hI ProtectAze
PRNPMEDOJEE F
n I 4A0
WATERSALES
20
0 ______I ______1980 1985 i990 *995 2000 2005 YEARS WoddOr*-27035 -'3-
AMX
GRANSEtJ
mieOF rma s - IF COVcIETxc
9- non11 I1 1 _ 1"D T_ ~l.eefp".lb.efr D ftp.UM.ofCS po9.b.6is of c pop.tm.sfre - oceftp.b11. of ftp.0.dUi s .B PbN.l eo f. of ftp iwiZOesl.t.of Cl.eeC Tee0 1.S0 cauto. lam cans ia Ends. twI oacats. 1.o Cocs. I.=c.c Cads. b atnIS. 1.0 Cents. am* MILAnA
ga city ma au2sh1 7u4.s 30.5 73nL 31 762.3 32. ira 34. 4.e 35.3 asa 36.S ssL 37.7 bns El Kfr 9.S - s.7 2.4 1D.0 2.4 10.2 2.4 10.5 2. 10.8 Z.5 11.s 2.5 11.3 2.5 EsSla 21.1 2.776 22.1 2.9 23.2 3.0 24.4 3.0 25 LI 21.9 3.1 22.2 3.2 34 3.2 NasslU eouf S - s.7 2.2 S.92 J 6.1 2.3 1.3 2.3 *. 2s 3.7 2.3 70 2.3 :aT TWA 6.3 - 6. 2.3 LJ 2.3 7.0 2.3 7.2 2.3 7S 2.3 1.7 2.3 La Z4 leCer 4.9 - 7.2 2.3 1.5 2.3 7.3 2.3 3.2 2.4 8.1 L4 3.0 2.34 .4 2.4 Anaw 3t.2 - 34.1 3.4 36.1 3.5 33.3 3.4 404 3.7 43.0 3.8 44.9 3.8 470 3.3 Cafatis 4.Z - 4.3 - 4.5 .2 4.1 2.2 4.0 2.2 5.0 2.2 5.1 2.2 .2 2.2 knells 4.1 - 4.2 - 4.4 2.2 4.5 2.2 4.7 2.2 4.8 2.2 LAI 2.2 5.2 2.2 Sriel 14.4 - 15.2 2.6 1.2 3.1 17.1 2.7 1.2 2.J 13.2 2.8 20.4 2.3 21.6 2.9 ElKa 1 2 - 7.4 2.3 7.9 2.3 8.2 3.4 8.4 2.4 .17 2.4 3.0 2. 9.3 2.4 Aa El Turt 15.2 - 15.7 2.7 16.2 2.7 16A 2.7 17.4 2.7 17.9 2.8 13.1 2.1 13.2 2.8
TiCE ITIUYA,
Ino 113.4 S.6 117.1 6.8 120.3 1 1237 7.1 133 7.2 12.8 7.4 137.0 7.6 141.4 7.7 Samzmel 13.0 2.211 M4 2.6 13.3 2. 14.2 2. 14.7 2.6 1.1 2.6 154 Z.7 I.L 2.7 Ronal 1S - 17.3 2.7 11.8 2.1 134 z.82.8 19.0 134 2.8 20.2 Z8 20a 2.3 l s3 23.5 - 29.1 3.2 z.3 3.2 30.5 3.3 31.2 3.3 31.9 3.3 32.7 3.3 33.4 3.4 Subdue 13.3 - 1 3 2.6 14.4 2.6 15.8 2.4 1sA 2.7 1.3 2.7 17D 2.7 171 2.7 HeVuia 46.0 - 474 4.0 43.2 4.0 S1. 4.1 MY 4.2 54 4.2 56s3 4.3 3B.5 4.4 17.4 - 17.9 2.8 1.5 Zd 19.1 za 1a7 28 23 2.8 21.0 2.3 214 2.3 blue HNes 14.1 - 14.5 - 150 2A 15.6 23 131 2.7 16a 2.7 17.2 2.7 17.8 2.7 bssukram 6.3 - 6.5 - L7 2.3 6.3 2.3 7.1 2.3 7.4 .3 7.6 2.3 7.8 2.3 Iluuavu - 10.1 - 10.4 - 108 2.5 11.1 2.5 11.5 2S 11.0 2.5 12.2 2.5 12.4 ZS Sabre 8.3 - a6 - 3a 2.4 3.0 2.4 9.3 Z.4 9.5 2.4 3.3 2.4 13.0 2.4 Sidi AlI 4.3 - 4.5 - 4.7 23Z 4a Z.2 5.0 2.2 5.2 ZZ 5.4 2.2 54 2.'
:i81 UL AIS ELAMA
Sidi Del Abs 110.0 0.4s 167.2 3.8 174.7 9.1 1U2.6 9.4 13.J 3.7 1.4 10.1 20.3 10.4 2173 10.3 Sidi La1ca 6.3 _- .5 2.3 1.7 2.3 6.3 23 7.1 2.3 7.4 2.3 7.6 2.3 7.8 2.3 3m Badis 9.3 - SA 3.4 9. 2.4 10.1 2.4 W.4 2.4 10.7 2.5 11.0 2.5 11.3 2.5 T'la 12.7 _ 13.1 2.6 3.6 2.6 14.0 2. 14.5 Z 14.9 2.6 15.4 237 1.9 2.7 Ain El A _ 9.0 - .2 3.4 9.3 2.4 93. 2.4 9.7 2.4 .8 2.4 10.0 2.4 10.2 2.4 Stied 18 - 19.4 2.8 139. 2.8 34 2.9 20-9 2.9 21.4 2.3 21.9 2 22.5 2.9 Ain T _mocht 39.1 - 40.5 3.7 41.9 3.7 43.4 3. 44. 3.8 46.4 3.3 431A 4.0 49.7 4.0 C nb WElLhe 7.3 - LU 2.3 7.6 2.3 7.8 2.3 8.0 Z.4 .2 2.4 8.3 2.4 6.5 2.4 Sal All Lchick 3.5 - 3.1 - 3.7 2.2 3.8 2.2 3.1 3.2 4.0 2.2 4.2 2.2 4.4 2.2 a in e 6.1 7.0- 7.2 2.3 7.5 2J = 7.7 Z.3 7. .3 8.2 2.4 3.5 Z2 Newu .adb 17.6 - 1.1 - 2.8z1.3 10.7 2.8 19.0 13.4 2.8Z.3 T9.8 2.8 20.2 2.8 El _1a 10.4 - 10.6 - 10.8 2.5 0.9 ZS 11.1 2.5 11.3 2.5 11.5 2.5 11.7 2.5 El Hald, 10.5 _ 10.7 - 10.9 2.5 11.0 2.5 11.2 2.5 11.3 2.5 11.5 2.5 11.6 2.s HSSI £1 Ghelm 5.4 - 5.4 - 5.4 2.2 S.S 2.3 5.5 2.3 5.5 .3 5i 2.3 5.6 2.3 Sidi _. Aidd 5.4 - 5.6 - 5.7 2.3 5.3 2.3 6.1 2.3 6.3. 2.3 6.5 2.3 L6 2.3
MSCARAHILAYAI
rescre 64.7 4.60 67.0 4.7 69.3 4.8 71.7 4.9 74.3 5.0 71.3 5.1 73.A 5.2 WL3 5.4 Homsedia 39.4 - 40.8 3.7 42.2 3.7 43.7 3.8 45.2 3.3 41.8 3.3 4L.5 4.0 S&2 4.1 Ti0a'af 20.7 21.3 2.9 21.3 2.9 224 2.3 23.3 3.0 26.0 3.0 24.7 3.0 Z3.4 3.1 Sig 38.0 - 39.1 3.6 40.3 3.7 41.5 Li 42.7 3.3 44.0 3.8 45.3 3.9 467 3.9 CrIss 5.0 5.2 2.2 5.3 2.2 5.5 2.3 5.6 2.3 5.8 2.3 5.3 2.3 3.1 2.3 lknih.ffie 5 - 6 .0 - 6.2 2J 6.4 3.3 3.6 2.3 6.8 2.3 7.1 2.3 7J 2.3 El Brdj 6.9 - 7.0 - 7.2 2.3 7.3 2.3 7.5 2.3 7.6 2.3 7.8 3.3 7.9 2.3 El achel 5.3 6.1 - 6.3 2.3 6.5 2.3 6.7 2.3 6.9 2.3 7.1 2.3 7.3 2.3 Obdl btel s.7 - 5.8 - 5. 2.3 L. 2.3 6.2 2.3 6.4 2.3 6.5 2.3 6.7 2.3 Z7hme 7.2 7.5 - 7.9 2.3 8.3 2.4 8.7 2.4 9.2 2.4 9.7 2.4 W.1 2.4 El Fkek 5.3 5.4 - 546 2.3 5.8 2.3 6.0 2.3 6.1 Z.3 3.3 2.3 3.5 2.3 Hase 4.0 4.1 - 4.2 2.2 4.4 2.2 4.5 3.2 4.6 2.2 4J 2.2 4.9 2.2 Sidi 1md 3.5 - 3.6 - 3.7 2.2 3 2.2 3.9 2.2 4.0 2.2 4.2 2.2 4.3 2.2 CuedTghiaa 44 _ 4.S - 4.6 2.2 48 2.2 4.9 2.2 5.1 2.2 5.3 2.2 5.4 Z.2 tbtssla 2.9 _ 3.1 - 3.3 2.2 3.4 2.2 3.6 2.2 3.7 2.2 3.3 2.2 4.1 2.2 s autet 2.9 . 3.1 - 3.3 2.2 3.4 2.2 3.I 2.2 3.7 2.2 3.9 2.2 4.1 2.2 ojDuelutsku 3.2 - 3.4 - 3.6 2.2 3.7 2.2 3.9 2.2 4.1 2.2 4.3 ZZ2 4.5 2.2 Al El 0uu 6.9 - 7.2 - 16 2.3 3.8 2.4 8.4 2.4 3.8 2.4 3.2 2.4 9.7 2.4
0lALt 1.650.6 53IA 1.711.S 122.7 1.775.9 187.3 1,43.2 190.4 1.911.8 193.2 1.M3.0 195. 2.053.3 190.4 2.125.3 301.1
CGrou Rate (5) - - 3.7 14.3 3.7 52.6 3.7 1.7 3.7 1.5 3.1 1.2 3.S 1.4 34 1.4 Average USer ot por Cemctlem - - - - - 9.5 - 9.7 - 9.3 - 10.1 - ll.3 - 10.6 am C.ecttas (1.050) ------3.1 - 2.8 - 2.4 - 2a - 2.7
Except for the aonwf co,etluec Is 1984. all figure -e seesed In tihuau,. -44- MNEX10 Page 1 of 2
ALGERIA
NATIONALHATER SUPPLY AND SEWERAGE PROJECT
ORANSUBPROJECT
DETAILEDCOST ESTIMATES
Local Foreign Total Local Foreign Total Item --- DA Million-- -- US4 Million1/ Percent
Raw Water Intakeon Tafna River,Grit Chauber,Raw Water Reservoir,Micro-Strainer and PumpingStation 74.8 78.7 153.5 15.0 15.7 30.7 9.0
Supplyof SteelPipes 94.0 189.2 283.2 18.8 37.8 56.6 16.6 Pipe Layingand FilteredWater Reservoir 189.9 185.3 375.2 38.0 37.1 75.1 22.1
CompensatingReservoir 98.3 113.8 212.1 19.6 22.8 42.4 12.5
Water TreatmentPlant 75.1 89.2 164.3 15.0 17.8 32.8 9.6
BredeahDesalination Plant 40.0 80.0 120.0 8.0 16.0 24.0 7.0
Beni BadhelRenewal 15.0 10.0 25.0 3.0 2.0 5.0 1.5 Repairof FergougSystem 10.0 5.0 15.0 2.0 1.0 3.0 0.9 Renewalof Ghazaouet,Mc.Fouc. 10.0 10.0 20.0 2.0 2.0 4.0 1.2
Instrumentation 3.0 11.0 14.0 0.6 2.2 2.8 0.8
OperationalEquipment 5.0 25.0 30.0 1.0 5.0 6.0 1.8
Trainingand InitialOperation 3.6 2.5 6.1 0.7 0.5 1.2 0.3
Sub-Total 618.7 799.7 1,418.4 123.7 159.9 283.6 83.3
WaterMeters 1.5 6.0 7.5 0.3 1.2 1.5 0.4 ConstructionSupervision 27.8 36.0 63.8 5.6 7.2 12.8 3.8 PhysicalContingencies 92.8 120.0 212.8 18.5 24.0 42.5 12.5
TotalCost (End-1984Prices) 740.8 961.7 1,702.5 148.1 192.3 340.4 100.0
PriceContingencies 96.0 156.8 252.8 19.3 31.4 50.7 14.9
TOTALPROJECT COST 836.8 1,118.5 1,955.3 167.4 223.7 391.1 114.9
Percent 42.8 57.2 100.0 42.8 57.2 100.0
1/ Basedon a constant rate of exchange of US$1.00 - DA 5.0 -45- ANNEX10 Page2 of 2 ALGERIA
NATIONALHATER SUPPLY AND SEWERAGE PROJECT
CONSTANTINESUBPROJECT
DETAILEDCoST ESTIMATES
Local Foreign Total Local Foreign Total Item ---- DAMillion ------US$ Million / --- Percent
WATERSUPPLY
OuedAtmania Treatment Plant 28.8 22.3 51.1 5.8 4.5 10.3 7.8 HammaBouziane Treatment Plant 19.4 17.1 36.5 3.9 3.4 7.3 5.5 TransmissionPipelines;
(a) OuedAtmania - Tuifez 24.0 46.0 70.0 4.8 9.2 14.0 10.6 (b) HahumaBouziane - Tuifez 6.7 12.8 19.5 1.3 2.6 3.9 ' 2.9 (c) Primary Mains 2.5 4.9 7.4 0.5 1.0 1.5 1.1
PumpingStations and Reservoirs 16.2 15.3 31.5 3.2 3.1 6.3 4.7 Construction of Wells 5.1 3.6 8.7 1.0 0.7 1.7 1.3
Sub-Total 102.7 122.0 224.7 20.5 24.5 45.0 33.9
SEWERAGE
SewageTreatment Plant 64.1 62.1 126.2 12.8 12.4 25.2 19.0 Sewersand Collectors 68.9 29.5 98.4 13.8 5.9 19.7 14.9 Irrigation System 6.5 10.2 16.7 1.3 2.0 3.3 2.5 Soil Borings 0.7 0.3 1.0 0.2 0.1 0.3 0.2
Sub-Total 242.9 224.1 467.0 48.6 44.9 93.5 70.5
Water Meters 0.5 4.0 4.5 0.1 0.8 0.9 0.7 Mlobilization Costs 65.9 28.2 94.1 13.2 5.6 18.8 14.2 Construction Supervision 17.0 7.3 24.3 3.4 1.5 4.9 3.7 Staff Training 0.5 0.2 0.7 0.1 - 0.1 0.1 Operational Equipment 0.5 1.5 2.0 0.1 0.3 0.4 0.3 Physical Contingencies 36.4 33.6 70.0 7.2 6.7 13.9 10.5
Total Cost (End-1984Prices) 363.7 298.9 662.6 72.7 59.8 132.5 100.0
Price Contingencies 38.8 40.0 78.8 7.8 8.0 15.8 11.9
TOTALPROJECT COST 402.5 338.9 741.4 80.5 67.8 148.3 111.9
Percent 54.6 45.4 100.0 54.6 45.4 100.0
1/ Basedon a constant rate of exchangeof US$1.00- DA5.0 -46- MNEX11 Page 1 of 2 ALGERIA
NATIONALWATER SUPPLY ANO SEWERAGEPROJECT
ORA SU0PROJECT
AISUALPROJECT IWNESTMENTS
Fixed Part 1985 1986 1987 1988 1989 Total Ite Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign
Raw Water Intakeon Tafna River, Grit Chawler RawWater Reservoir, Micro-Strainer and PumpingStation 11.2 11.8 6.4 6.7 31.8 33.4 19.1 20.1 - - 6.3 6.7 74.8 78.7
Supply of Steel Pipes 14.1 28.4 8.0 16.1 32.0 64.3 32.0 64.3 - - 7.9 16.1 94.0 189.2 Pipe Laying and Filtered Water Reservoir 28.5 27.8 - - 64.5 63.0 64.6 63.0 32.3 31.5 - - 189.9 185.3
CoWmpensatingReservoir 14.7 17.1 6.3 7.3 37.7 43.5 33.4 38.7 - - 6.2 7.2 96.3 113.8 water Treatment Plant 11.3 13.4 6.4 7.6 28.7 34.1 22.3 26.5 - - 6.4 7.6 75.1 89.2
Bredeah Desalination Pl1nt ------22.0 44.0 18.0 36.0 - - 40.0 80.0
Beni Badhel Renewal - - - - 7.5 5.0 7.5 5.0 - - - - 15.0 10.0 Repair of Fergoug Syste - - - - 5.0 2.0 S.0 3.0 - - - - 10.0 S.0 Renewal of Ghbaouet. Nc.Fouc. ------5.0 5.0 S.0 5.0 - - 10.0 10.0
Instrumentation 0.5 1.6 - - 1.2 4.7 1.3 4.7 - - - - 3.0 11.0
Opertiona1 Equipment - - - - 1.0 5.0 2.0 10.0 2.0 10.0 - - 5.0 25.0
Training nd Initial Operation 0.5 0.4 - _ - - 0.9 0.6 2.2 1.5 - - 3.6 2.5
Sub-Total 80.8 100.5 27.1 37.7 209.4 255.0 215.1 284.9 59.5 84.0 26.8 37.6 618.7 799.7
Water Meters - - - - 0.5 2.0 0.5 2.0 0.5 2.0 - - 1.5 6.0 CDnstruction Supervision 3.6 4.5 1.2 1.7 9.4 11.5 9.7 12.8 2.7 3.8 1.2 1.7 27.8 36.0 Physical Contingencies 12.1 15.1 4.1 5.7 31.4 38.3 32.3 42.7 8.9 12.6 4.0 5.6 92.8 120.0
Total Cost (End-1984 Prices) 96.5 120.1 32.4 45.1 250.7 306.8 257.6 342.4 71.6 102.4 32.0 44.9 740.8 961.7
Price Contingencies - - 1.1 1.7 26.0 33.3 40.7 71.8 17.2 33.4 11.0 16.6 96.0 156.8
TOTALPROJECT COST (CURRENTPRICES) 96.5 120.1 33.5 46.8 276.7 340.1 298.3 414.2 88.8 135.8 43.0 61.5 836.8 1.118.5
ANUAL PROJECTIWNESTMENTS - - 37.8 52.5 31!.8 380.9 337.2 464.0 100.4 152.1 48.6 69.0 836.8 1 118.5 -47-
Page 2 of 2 AILERIA
NATIONALWATER SUPPLY 810 SEIIEIMEPRDJECr
aINSTAIIINESUBPROJECT
AI_L PIOJECTIINES1TENTS (A Nillion)
FixedPart 136S 1986 1987 1998 198 Total Itu Local Fore1gn Local Ferehn Local hre1e. Local hr1g Local Fer Local Fen Local Foreign
WATERSUPPLY
Cued Atania Treatmbnt Plant 5.8 4.5 2.3 1.6 9.2 7.1 6.9 5.3 2.3 1.8 2.3 1.8 2S.8 22.3 ama Bouxiamerreatment Plant 3.9 3.4 3.1 2.7 4.7 4.2 4.6 4.1 - - 3.1 2.7 19.4 17.1 Translission Pipelimns.
(a) OueedAtmia - Tuifez 4.8 9.2 2.9 5.5 6.7 12.9 6.7 12.9 - - 2.9 5.5 24.0 46.0 (b) ame Bouziame - Tulfez 1.3 2.6 1.1 2.1 3.2 6.1 - - - - 1.1 2.0 6.7 12.0 (c) Primry Mabns O.S 1.0 - - 0.6 1.2 1.0 2.0 0.4 0.7 - - 2.5 4.9
Pu"ing Stations an Reservoirs 3.2 3.1 1.3 1.2 4.6 4.3 3.9 3.7 1.9 1.8 1.3 1.2 16.2 15.3 Constructionof Wells 1.0 0.7 1.3 0.9 1.6 1.2 - - - - 1.2 0.8 S.1 3.6
Sub-Total 20.5 24.5 12.0 14.2 30.6 37.0 23.1 26.0 4.6 4.3 11.9 14.0 102.7 122.0
SEWERG
NewageTreatment Plait 12.8 12.4 - - 15.4 14.9 20.5 19.9 15.4 14.9 - - 64.1 62.1 Se's and Collectors 13.8 S.9 - - 19.3 8.3 22.0 9.4 13.8 5.9 - - 6L9 29.5 irrigation Systm 1.3 2.0 - - - - 2.1 3.3 3.1 4.9 - - 6.S 10.2 Soil Borinp 0.1 0.1 0.3 0.1 0.3 0.1 ------0 .7 0.3
Sub-Total 48.5 44.9 12.3 14.3 65.6 60.3 67.7 60.6 36.9 30.0 - - 11.9 14.0
Mater Meters - - - - O.S 4.0 ------0.5 4.0 ebillzatim Cots 13.2 5.6 52.7 22.6 ------65.9 28.2 Construction Supervision 3.4 1.5 1.1 O.S 4.4 1.9 4.6 2.0 2.4 1.0 1.1 0.4 17.0 7.3 Staff Training 0.1 0.1 - - - - 0.2 0.1 0.2 - - - 0.5 0.2 Oerationa1 Equipmnt - - - - 0.5 1.5 ------0.5 1.5 Physical Conting.ucIes 7.3 6.7 1.8 2.1 9.8 9.1 10.2 9.1 5.5 4.5 1.8 2.1 36.6 33.6
Total Cost (Eod-19S4Prices) 72.5 58.8 67.9 39.s 80.8 76.8 82.7 71.8 45.0 35.5 14.8 16.5 363.7 298.9
Price Contingences - - 2.0 1.8 7.5 7.8 13.3 12.8 11.1 10.5 4.9 7.1 38.8 40.0
TOTALPIOJECT COT 72.5 58.8 69.9 41.3 86.3 84.6 96.0 84.6 56.1 46.0 19.7 23.6 402.5 338.9
AL0 PROJECTINVESOEJITS - - 85.3 49.9 107.7 102.4 117.1 102.4 68.4 55.6 24.0 28.6 402.5 338.9 ALGERIA NATIONALWATER SUPPLY AND SEWERAGE PROJECT ConstructionSchedule
CabnbrYeors 1985 |19S 6 1957 |1900 |98 1m | . . . ~~~MonthsJIAIS IOINIDl JlF|M|AIMJIJlJIAIS |J ODI M INJ J IAISIO|NIDiJlFIMIAIMI Jl JlIAI NJ qJIF1A1 Al IAl 5 10NDJ IFI-MlAIMJ1 ilPl4 _ MonthsAfer ConstrucftnStarts 71 019P011112,13IM11i171111 2122227225 1 t i i5 A237 KAM7*
7. FeItg/M@OucRnenewal .__.
31.Sewertnt ersepvotor B. CONStANIINESU6PROJECI1 12.8.1.BrTdgatha o Water Dieslinetos Itke lnt 1l111l INI
10. sewerPipes IN
13. eopeTreatioaqimentPon
C. OTHERSUSPROJEC TS
14.Technical AsgsJtance
16 FoosiIlityStudies li I l If,l ll I
L1gr hd1I 1 Ireporotlon aDocurrments C N ConsttlonPeriod _ I M-I BdclingPerlod _ M aintenoncePerid od WOdBEak-27423 ANNEX13 -49-
ALGERIA
NATIOMALWATER SUPPLY AMD SEWERAGEPROJECT
ESTIMATEDSCHEDULE OF DISBURSENENTS (US$ million)
Bank FMY Constantine Subproject Oran Subproject Others Bank Loan and Qtr. In Quarter Cumulative!Y In Quarter CumulativeY In Quarter Cumulativea' In Quarter Cumulative&'
1986 Third - - 1.0 1.0 - - 1.0 1.0 Fourth - - 4.0 5.0 - 4.0 5.0
1987 First 3.0 3.0 4.0 9.0 - - 7.0 12.0 Second 2.5 S.S 5.0 14.0 - - 7.5 19.5 Third 3.2 8.7 5.5 19.5 - - 8.7 28.2 Fourth 3.7 12.4 8.8 28.3 - - 12.5 40.7
1988 First 3.0 15.4 9.0 37.3 - - 12.0 52.7 Second 3.1 18.5 9.8 47.1 - - 12.9 65.6 Third 3.5 22.0 10.5 57.6 - - 14.0 79.6 Fourth 3.2 25.2 10.9 68.5 - - 14.1 93.7
1989 First 4.0 29.2 10.8 79.3 1.0 1.0 15.8 109.5 Second 3.3 32.5 10.0 89.3 1.8 2.8 15.1 124.6 Third 3.0 35.5 10.7 100.0 1.0 3.8 14.7 139.3 Fourth 2.9 38.4 10.2 110.2 1.2 5.0 14.3 153.6
1990 First 3.2 41.6 9.1 119.3 1.5 6.5 13.8 167.4 Second 2.5 44.1 8.3 127.6 1.4 7.9 12.2 179.6 Third 2.3 46.4 6.0 133.6 1.3 - 9.2 9.6 189.2 Fourth 2.6 49.0 4.4 138.0 1.2 10.4 8.2 197.4
1991 First 2.6 51.6 5.0 143.0 1.5 11.9 9.1 206.5 Second 2.6 54.2 4.5 147.5 1.7 13.6 8.8 215.3 Third 2.5 56.7 4.1 151.6 1.5 15.1 8.1 223.4 Fourth 2.4 59.1 4.0 155.6 1.3 16.4 7.7 231.1
1992 First 2.5 61.6 4.4 160.0 1.1 17.5 8.0 239.1 Second 2.4 64.0 4.2 164.2 1.0 18.5 7.6 246.7 Third 2.2 66.2 4.4 168.6 1.5 20.0 8.1 254.8 Fourth 1.8 6e.0 4.4 173.0 1.0 21.0 7.2 262.0
1/ Runs from July 1 of the preceding year to June 30 of the current year.
2 Figures shownunder these columns give estimated accumulated disbursements at the end of the corresponding quarters. IWh
r----_ I-_____,~
LJ
L______J -51-
ANNEX15 Page 1 of 7
ALGERIA
NATIONALWATER SUPPLY AND SEWERAGEPROJECT
TERMS OF REFERENCEFOR ORGANIZATION,MANAGEMENT, TARIFF AND FINANCIAL STUDIES
Introduction
1. The Government of Algeria has recently established thirteen regional companies to be responsible for the provision of drinking water and the collection and treatment of wastewater in the country. The territorial jurisdictionof each of them is shown on Map 18687. The companies replaced previous regies and municipal services which were in charge of water supply and sewerage services in the urban areas. They are public-owned enterprises, are financially autonomous and managed as conmmercialundertakings. They operate under the tutelage of the Ministry of Hydraulics, Environment and Forestry (MHEF) and are subject to the principles of socialist management applicable to all Algerian Enterprises.
2. The Companies are about to embark on a substantial capital program involving the construction of new treatment plants, water distribution and sewer systems. In particular, two of them, the '"Etreprise de Production, de Gestion et de Distribution d'Eau d'Oran" (EPEOR) and the "Entreprise de Production, de Gestion et de Distribution d'Eau de Constantine" (EPECO) would invest US$539 million in the Oran and Constantine areas. Part of this investment would be financed by a loan of US$262 million from the World Bank.
3. In order that the companies should be fully equipped to tackle the investment program in the most effective way, consultants are to be retained to advise on the companies' organization and management, financial structure and tariff policies. The required services are described below:
Organization and Management Studies
4. The objectives of the organization and management studies are to establish the most effective organization structure to enable the regional companies to discharge their responsibilities,and to determine the best means of integrating the operations and staff of the constituent entities into the new structure. To this end, it is envisaged that the consultant's studies will cover (but will not necessarily be limited to) the following aspects of corporate organization:
(i) definition of the main functions within the companies and the principal line and staff relationships; -52-
ANNEX15 Page 2 of 7
(ii) establishment of appropriate procedures for planning and decision-making;
(iii) definition of appropriate machinery for liaison and consultation with concerned agencies of the cities, the Wilayate and central government;
(iv) preparation of statements of objectives and responsibilityfor each senior management position; and
(v) preparation of detailed organization charts for each division/department within the proposed structure.
5. After completion and agreement of the organizational proposals, the consultant is required to proceed to a number of detailed studies as follows:
(i) the development of proposals for the rationalization of services such as purchasing, storekeeping and transport;
(ii) formulation of procedures for meter reading, billing and collection (including the use of data processing equipment) and development of proposals for the harmonization of these procedures;
(iii) the desirability of maintaining master meters and use of individual meters;
(iv) development of budgeting system and procedures;
(v) organization plan and staffing schedule for the establishment of a budget section within the finance department;
(vi) the design of an organization plan, staffing requirement, terms of reference and work schedule for an internal audit function covering all aspects of the companies' activities; and
(vii) development of general and cost accounting manuals. The Algerian "Plan Comptable National" should be the base for the chart of accounts and financial reports. Special attention should be paid to the fact that major capital works are carried out by MHEF's agencies. Accounting for liaison, and reporting requirements to ensure prompt recording of these works and associated transaction in the companies' books, should be given full attention. -53-
ANNEX15 Page 3 of 7
Tariff Studies
6. The consultant is required to develop a tariff structure which the companies might use for charging water supply and sewerage services, together with a schedule of proposed rates for the years 1987-1992. In the course of this part of the study the consultant is first expected to develop forecasts of:
(i) consumer use of the services, in terms of numbers of connections,volume of water sold, and any other measures he considers relevant; and
(ii) the operating costs of the services, taking into account the organization structure proposed in the organization and management study, and including depreciation of fixed assets valued at estimated replacement cost, and any taxes or duties likely to be imposed on the companies.
7. in developing his proposals for the tariff structure and rates, the consultant should thoroughly examine and evaluate the following:
(i) the economic efficiency of the proposed tariffs, in terms of their reflection of the estimated long-run marginal costs of the services;
(ii) the extent to which the companies' activities convey benefits to a wider public than their own connected customers - for example, by safeguarding health and protecting against stormwater damage - and the possibility of recovering (by taxes or otherwise) such benefits in the form of income for them;
(iii) the effect (if any) of the proposed tariffs on the forecast of water sales, and the adequacy of the resultant total revenues to cover costs as defined in para. 6(ii) above;
(iv) the extent to which identifiable groups or classes of consumers impose special costs on the systems, which should be reflected in special charges to those consumers;
(v) the possibility and justification of charging to industries rates which would take into account the quality of the liquid wastes discharged by these industries;
(vi) whether the proposed levels of charges are within the reasonable ability-to-payof all consumer groups, and whether a case exists on these or any other grounds for concessionary rates to be applied to particular consumer groups or levels of consumption; -54-
ANNEX 15 Page 4 of 7
(vii) the effectiveness of the proposed water rates in discouraging waste and inessential use of water;
(viii) the means of recovering the cost of supplies delivered free through public taps; and
(ix) consistency of the tariffs with the methods of assessment and billing proposed under terms of reference 5(ii) and 5(iii) above.
8. The consultant should review the cost of providing other services associated with the provision of water by the companies to their customers. They include fees for meter rental and maintenance, new connections, special fees for reading and billing of individual meters, etc. The consultant should provide the companies with proposals for:
{i) methods for establishing the fees;
(ii) the calculation of new connection cost, shut-off and reconnectionfees, meter rental and repairs; and
(iii) methods for updating the cost of the services and a mechanism for updating the fees.
9. On the basis of his forecasts of operating costs, future investments and replacement of obsolete assets, and revenues available from the proposed tariffs, the consultant should prepare projections of the resultant cash flows from operations. The consultant is then required to propose:
i) the proportions in which it would be appropriate to apply this cash flow to:
(a) debt service on borrowed funds; and
(b) contributions to the companies' current or future capital expenditures;
(ii) the proportions in which funds provided to the companies by the Government should accordingly be divided between capital contributionsand loans;
(iii) the appropriate terms (interest, maturity and grace periods) for any loan funds so provided; and
(iv) the life expectancy of assets acquired or built with the funds so provided.
10. In carrying out this part of the studies, it is expected that the consultant would wish to examine a number of alternatives. In evaluating -55-
A1PIEJC1 Page 5 of 7 these alternatives he should pay particular regard to the declared objectives of the Government with respect to the financing of investments by enterprises, as set out in the Finance Law of 1986.
11. At the conclusion of this part of the studies, the consultant should prepare complete financial projections (income statements, balance sheets and cash flow statements) for the recommended alternative. In the event he wishes to submit alternative schemes for consideration, financial projections should be completed for each alternative.
Financial Obiectives and Performance Indicators
12. The final part of the studies comprises the formulation of financial objectives for the companies' management, and perfc.-mance indicators by whicb their progress towards these objectives may be monitored. The objectives should be consistent with the policies proposed for tariffs and capitalization. They and the performance indicators should be capable of precise and unambiguous expression, and within the capacity of the companies' information systems to calculate and report promptly and accurately. They may include (but are not necessarily limited to) cash generation ratios, balance sheet ratios, measures of unit costs and service levels. If appropriate, separate indicators may be developed for different parts of the companies' operation, including in particular the water supply and sewerage operations.
Implementation and Training
13. As the work proceeds on items described in para. 6 and following the completion of the tasks described in para. 4 above, the consultant should assist the companies in implementing the organizational proposals, and the new systems and procedures. The companies' staff would carry out the implementation with assistance from the consultant mainly in the following areas.
(i) overall planning and coordination of the implementation process, follow-up, reporting and update of schedules;
(ii) training of the companies' staff assigned for implementation. This would include conducting workshops and provision of on-the-job training to ensure smooth implementation;
(iii) provision of guidance and establishment of procedures to reconcile and consolidate the companies' current accounts, and establishment of balances along the recommended chart of accounts; and
(iv) computerization of the companies' activities, such as billing and collection, accounting, stocks, inventories, etc. -56-
ANNEX 15 Page 6 of 7
14. The consultant should also establish a methodology for updating the findings of the tariff studies and the preparation of updated financial projections. To ensure that this task is carried out properly, the consultant should:
(i) provide relevant training to the companies' assigned staff during the preparation of the studies; and
(ii) coordinate this task with the development of budget systems and the setting up of a budgeting section (para. 5(iv)).
Timetables and Reports
15. It is envisaged that the organization/management study and the tariff/financial study would be carried out in parallel, and an elapsed time of not more than 12 months (from mobilization of the consultant's team in Algiers) is allowed for completion of the studies. Assistance in implementing the organizationalchanges and new systems (paras. 13 and 14) would continue for another 12 months.
16. The following reports are .o be submitted:
i) not later than the end of the sixth month, a first report on organizationand management, containing recommendationson the matters set out in terms of reference (paras. 4 and 5). Two months would be allowed for consideration of this report by MHEF and the companies, discussion with the consultant, and determination of any revision which may be necessary;
(ii) not later than the end of the eight month, operational manuals as per para. 5(vii) should be submitted together with a detailed implementationplan; and
(iii) by the end of the twelfth month of the assignment:
(a) a final report on organization and management, incorporatingany revision made to the first report and including an updated plan of action for implementation; and
(b) a report on tariffs and finance, covering the matters described in terms of reference (paras. 6-12) and setting out the financial projections referred to in para. 11 of the terms of reference.
17. The interim reports are to be submitted in 20 copies, and the final reports in 50 copies, in the French language, and delivered initially to MHEF. -57-
ANNEX15 Page 7 of 7
Proposals
18. Technical and financial proposals in five copies in the French language should be submitted separately in sealed envelopes by -- to:
19. Proposals should contain, inter alia:
(i) a description of the consulting firm (or firms) and its areas of specialism;
(ii) a description of other relevant assignments previously carried out by the firm;
(iii) an explanation of the way in which the consultant proposes to approach the assignment, including any comment he may wish to make on the terms of referenc- or any modifications he may wish to propose in the interests of better achieving the objectives of the assignment;
Civ) a brief description of any special methodology to be employed (for example, use of computers);
(v) a staffing chart for the assignment, showing each specialist to be employed and indicating the nature and duration of his involvement (distinguishingtime in Algeria from time at the home office);
(vi) an explanation of how supervision of the assignment is to be maintained by the firm's principals;
(vii) curricula vitae of key personnel nominated for the assignment; and
(viii) a statement of any special facilities the consultant may require in carrying out the assignment.
20. Proposals will be judged on technical merit and fees. Any assistance the Algerian authorities may be able to provide in regard to accommodation, local transportationand other administrativematters should be indicated in the proposal. ALGERIA NATIONALWATER SUPPLY AND SEWERAGE PROJECT ENTREPRISEDEPRODUCTION, DE GESTION ET DE DISTRIBUTION D'EAU D'ORAN EPEOR Interm Organizaion Chad -1986
| Boardof Dfrectorl
AWII coZZIILZ
Intenwll I~~~~~~ccunk~
. -btowaflons Now ._ta A&dnlas Engineedrg~ ~ ~ ~ ~ ~ AcoutngSee
|Mar RodiSDesign RodoZn h ron eann mouen
- um |Disribution Pmuffn cos|th |r5 G I 1,1 1 I wow I I Se 1- H PhoSWA I g S~Acontin
Mcscora SWIdSol Abes Productlon Syds Oran T .w_ Tenmuchnt O Branch Branch for Oron Ara Broncth Branch Branch ,
Woad Bao*-27033 ALGERIA NATIONALWATER SUPPLY AND SEWERAGE PROJECT ENTREPRISEDEPRODUCTION DE GESTION ET DE DISTRIBUTION D'EAU DE CONSTANTINE EPECO IntedmOrganization Chart - 1985
|Board of Dircorls|
Operathnol Cohol Dahpera""
Gerwal Planning Ln Acccunting Stud{e 3 ||
cost Genemi Accounting Se|vkle.
Treout Ditibto Sok &
.~A__ ~ eMe ,_|| W N Custonrs''mCene
Oumel-Bouoghl _tan______. __C______d Bronch Bnchronch
WorldBank-27032 NATIONALYAnR SLmY & SMRMZ 1103F
F111!Xaf =SA lS - E131IA1N (1984) & FJ11M (1985-1992)
FInsCL YEARENDIN: MI 31 1990 1991 1992 1984 1965 1986 1967 1988 1989
U40.22 145.95 152.70 89.W2 88.78 89.90 119.49 L34.96 WmU ED (NIL. I3) 78.91 .22 .22 .27 .26 .25 .24 .2 U l4om BW&1t4T1ML .26 .27 .18 .21 .21 .21 .20 .18 WATIR-AVEAIZ ,17 .22 .22 124.45 LWtII13 7t.11 94.28 L07.16 12.8s 118.95 WMu 9XD (HLMlIN H3) 65.42 69.61 69.34 2.67 2.25 2.34 2.43 2.53 2.64 AVEFAlURIE (IM ) .65 1.03 2.16
95.23 314.24 332.15 71.70 149.77 159.74 Z20.Z6 260.36 WIATRSAID 42.52 13.20 13.98 14.88 4.13 7.91 10.39 11.32 12.25 MEMURDAL & I4NDIT .91 7.88 8.27 7.3 7.18 6.93 6.29 7.78 tmu lNalQE 3.94 5.27 2.20 1.60 1.81 1.79 1.98 2.10 MMu EVENJh 1.52 .98 1.49 357.30 178.91 240.32 280.69 308.19 338.20 W?MALREMV14 48.89 82.08 166.30
OPERAT EXPE21SES 59.42 64.48 69.89 73.38 28.27 35.78 41.89 45.50 54.63 PIRSCRa 14.36 16.44 18.14 19.05 4.33 4.74 5.41 6.U8 U2.94 tIWI & FUEL 33.76 34.58 35.20 13.73 16.56 17.20 30.68 31.84 HIaIAS & Mw.T. 8.24 16.34 17.65 6.37 7.11 11.36 13.10 14.49 TAXW 3.41 5.66 3.05 3.74 1.76 1.96 2.50 2.66 2.87 ADIIN. EP. & unRS 1.05 1.49 (5.40) (3.46) (4.10) (4.45) (4.82) (5.22) LE!SE CAP. EXPRSES (1.57) (2.72) (S.19) 143.62 74.49 108.01 116.U3 127.22 136.78 SLTh-1!L 43.73 5B.b8 68.80 37.b5 42.78 88.92 94.65 94.85 94.85 IIACTICN 18.12 31.85 35.94 112.14 150.79 205.75 222.07 231.03 238.47 MUM EXPESES 61.85 90.53 104.74 66.78 89.53 74.95 86.12 106.57 119.U3 N!T OPEPATIl MME (12.96) (8.45) 61.56 .30 .15 .27 .21 98.65 100.17 INIRUW .51 .63 .66 18.86 66.48 89.3S 74.48 85.91 7.92 METnM (.) (9.08) 60.90
.07 .63 .63 .73 .72 .68 OPERATIJRATIO 1.27 1.10 .63
RATE OF RETURNON 3.8 5.4 6.7 3.3 2.7 3.4 AVERAGEFIKED ASSETS - 5.3 MTIcL IWIU SJWLY& SIa =
EPRU 8 1 a1=S- Z MIUD(1964) & PmW1U (1965-1992)
1L64 1965 1966 1967 1968 1969 1990 1991 1992
FD= ASSMIS 3,648.00 3,648.0 MU8 TIXEDASSMYS 696.89 1,224.97 1,362.24 1,447.94 1,645.24 3,419.90 3,648.O0 314.67 409.51 A.36 599.21 LEss AH. DONXTnQ 77.54 109.39 145.33 182.97 2M5.75 3,238.49 3,143.64 3,048.79 NE Fru ASSzS 619.35 1,IU.58 1,236.91 1,264.97 1,419.49 3,105.23 481.42 743.23 1,078.27 AvK DI E01S8 55b.37 267.tO 859.15 1,620.62 1,759.92 378.27 3,159.41 3,483.50 3,719.91 3,88.87 4,127.06 wrAL TM ASSEIS 1,175.72 1,383.18 2,056.06 2,85.59
aM MSSE1S 22.18 17.70 18.20 18.55 S=OCB 17.34 14.20 14.25 11.88 21.32 56.25 65.75 78.75 87V.2 RElVAUAS 36.77 54.80 53.75 48.23 45.82 1.32 1.45 1.55 1.65 alHIX Mir /Y=LNR ,52 .65 1.00 1.10 1.25 5.05 6.00 6.50 9.34 W.10 11.00 11.63 12.42 CAt 3.67 - 197-W3 - - -- ~~~ ~~~7- 73f ~~ ~~~-- 89.85 95.9 * 11.33 119.74 WmTL01M ASETS 56.30 74.70 75.00 67.71 77.73 .__ - - . -_ --.- 3,815.81 3,997.30 4,246.80 MILASSES 1,234.02 1,457.88 2,171.06 2,953.30 3,Z37.14 3,573.35 EtflT & LiauT
2,(.99 2,550.53 DW3aNISIS5Ul0 1,2't.52 1,438.39 2,018.19 2,551.17 2,492.32 2,438.92 2,339.31 C 365.32 373.J4 392.L10 El4tD L@DC (Z.95) (12.03) 46.87 115.35 32.73 279.41 2,704.63 2,774.23 2,962.43 UAL MMT1t 1,209.57 1,426.36 2,067.06 2,696.52 2,b97.05 2,716.32
LIO & i MM T 927.41 (DIwIO) * * 79.45 266.42 519.52 776.87 900.31 "7.61 MI 120.00 195.OD 290.0 0D L & m - - - S0.OU 6.07 1,2.31 1,lu2.61 1,217.41 WML IQ MM1 MT - 7.45 266.42 519.5 - - - IUi191 DW 6.78 4.51 2.24 (.00) - 1,132.61 1,217.41 mL3aIDC 6.78 4.51 1.69 26t.U 519.52 26.87 1,028.31
4.11 4.94 5.8 6.78 aiiuin CI1 1.Lo 1.54 2.16 2.81 3.47 12.60 12.40 14.70 11.70 8.40 1U.55 12.53 U.17 13.56 SUPlJI6s 17.15 12.20 01 PFAt4Z AJIS 1.70 10.80 3.18 3.61 8.70 12.50 11.20 54.20 54.2U alL TlUWiTL 2. 2.21 2.217 2.14 - - 54.20 2.31 20.36 20.57 28.16 82.87 90.36 86.76 WmA aw UAIBZULm 17.67 27.01 - - --_ _ - ._ - _ __ -_ 3,815.81 3,997.20 4,266.a Wm lUMMYf& UMflITI 1,234.02 1,457.88 2,171.06 2,953.30 3,237.14 3,573.35
29:71 29:71 DEBT: EQUITY RATIO 1:99 0:100 4t96 9t91 16t34 .23:77 28:72 NATIb ALWA2 SUIPLY& SEWERA NDWI
IPECR 9URCESAND APFlprTIG oSaU - ESTvT (1984)& PRCWECT(1985-1992)
L984 1985 1986 l987 1988 1989 1990 1991 1991
US OF FUNDS * _._...... __ CUTUL Dimfl0M
P9DPOSEDPhJECT - 90.30 693.70 801.20 252.50 117.60 - - - omm CAPEAtLEXP. 452.57 149.01 45.67 4.50 22.00 225.0O 235.00 245.00 310.W CAPIAlIZEDIMER.S . - 9.45 21.47 42.10 70.41 96.25 16.81 25.04 TOUALINVESDTHTS 452.57 239.31 748.82 827.17 316.60 413.01 331.25 261.81 335.04 DIIREASZ(DER2EASE) IN CRKIaHC4pTLL (1.31) 7.06 5.00 (5.37) 7.57 4.53 5.54 6.94 13.01 MrzSERVICE - INIURST .51 .63 A66 .30 .15 .27 .21 98.65 100.17 - AMl Z. OF low 2.27 2.27 2.27 2.27 2.24 - - 54.20 54.20
OTDALDT SERVICE 2.78 2,90 2.93 2.57 2.39 .27 .21 152.85 154.37
TOIMLUSES OF FUND 454.04 249.27 756.75 824.37 326.56 417.81 337.00 421.60 502.42
SaURCEOF FUND6
OPEtIATINDK BEPI E DCPRECIATCN 5.16 23,40 97.50 104.42 132.31 163.86 180.97 201.42 213.88
- POMED IBRDLOUN - - 79.45 186.97 253.10 257.35 185.64 83,50 44.00 - OIH LTWAJ8L - * - * 50.00 70.00 75.00 95.00
TMALncRwwNcS - - 79.45 186.97 253.10 307.35 255.64 158.50 139.00 GOVIRNHNCLNlIEUl11lC 448.88 225.87 579.80 )32.98 (58.85) (53.40) (99.61) 61.68 149.54 o -4
IDIAL CWSOF FUND6 454.04 249.27 756.75 824.37 326,56 417.81 337.00 421.60 502.42 w -l_ _ _ NATIONALWAUE SUPLY & SMAM PRWW
EPEv, IwXNMESrAENIGIS - ESRPIHAt(1984) &PjEm (1985-1992) ___._...... _.X...... -. * ~~~~D CN
FISCALYEAR ENDING =MUU 31
19a4 1985 1986 1987 1988 1989 1990 191 1992
WA2 PRMO (sIL. 13) 33.20 33.90 37.90 5L.00 52.00 60.60 62.70 b4.50 66.58 LK'. XM WATM-REAIL .30 .29 .28 .27 .26 .25 .24 .23 .23 UMMOMM WAI-AV3UAC .20 .27 .26 .26 .24 .23 .23 .22 .22 WATM9DID (HIILION M3) 26.39 24.81 28.01 37.89 39.42 46.42 48.59 50.57 5L.93 AVIMRZ 1R (003) .60 .93 1.90 2.03 2.18 2.33 2.49 2.78 2.87
BRN2UES
WAI SMLES 15.84 23.08 53.22 77.0. 85.74 108.05 U1.02 340.54 149.05 KE1URIEA&MIRIENAHW .34 2.30 2.81 3.16 3.55 3.92 4.36 4.87 5.66 NEW:1 5mmlm 2.04 2.55 3.12 5.02 4.03 4.04 7.06 7.42 7.78 OM REVAES .11 .40 .49 .62 .65 .67 .91 1.04 1.14
IOrhL ZV 18.33 28.33 59.64 85.84 93.97 116.68 133.35 153.87 163.b3
-~~~~ - -.. - -. ~- 4llSTI DCPENS1C
PEIR9a 18.1U 25.01 32.49 36.87 40.04 45.50 49.63 53.93 57.76 NRow &IFLM 6.03 6.86 7.34 11.88 12.71 13.86 14,82 15.84 16.79 WCTXUALS& HUINT. 1.76 1.84 1.94 3.94 4.22 6.66 7.U8 7.45 7.84 TA1 1.86 2.77 3.36 4.65 5.26 6.36 6.89 7.71 8.18 A,a. W. & on= .60 .81 i.03 1.22 1.33 1.57 1.70 1.84 1.97 LESt CAP.OENSES (1.93) (2.63) (3.39) (3.99) (4.54) (5.38) (5.74) (6.24) (6,61)
SlJPB-T0IXL 26.45 34,6 42.77 54.57 59.02 68.57 74.38 80.53 85.93 EIRECIATION 7.09 9.14 10.37 W.77 19.33 23.07 30.34 30.56 30.56
MMALeXPNSE 33.54 43.80 53.14 65.34 78.35 91.64 104.72 lll.U . 116,49 NwrOPERATING INC= (15.22) (15.47) 6.50 20.50 15.62 25.04 28,63 42.78 47.14 1unESm ------37.U8 38.62
NSri (15.22) (15.47) 6.50 20.50 15.62 25.04 28.63 5.70 8.52 °I ------1 .
.TIN: RATIO 1.83 1.55 .89 .76 .83 .79 .79 .72 ,71
RATEOF RETURNON VERAGE NET FIXED ASSETS - - 1.8 5.4 2.6 2.8 2.5 3.2 3.6 AUERIA
HAT1i'L ATERSUPPLY & SEWI2RAGZ Hir
IPFXJ IWIE SHcEs - ESTJNAlH)(198E4) 6 1~W1IlCE(1985-1992)
1984 1985 1986 1987 1988 1989 1990 1991 1992 ASSMs
FLXIDASSEIS
Ms F3XeDASSETS 417.22 435.02 450.68 512.70 920.64 1,153.42 1,516.99 1,528.12 1,528.12 LESSA0aMl. MIMRm1ATlON 70.99 SO.13 90.49 101.26 [20.59 143.66 174.00 204.56 U35.L3
IEr FIXEDASSm 346.23 354.89 360.19 411.44 800.05 1,W09.76 1,342.99 1,323.56 1,292.99 WOKI PIN S 17.80 190.86 456.31 690.42 473.29 424.72 154.26 185.13 290.3
IUAL FLEDASSEIS 364.03 545.75 816.50 1,101.86 1,273.34 1,434.48 1,497.25 1,5Y8.69 1,593.12
QRADIT.'sseTs
S100(9 2.46 3.00 3.40 3.90 4.40 5.20 4.20 4.70 4.95 RBUVABUS5 8.20 17.40 14.50 16.10 18.U0 22.60 26.70 31.60 35.25 OMlURI1T ACM S 3.40 3.30 3.00 2.70 2.50 2.50 2.30 2.30 2.4Q CAIH 3.10 4.50 5.00 5.60 6.50 7.10 7.70 8.50 9.10
TML CUL2 ASSEIS 17.16 28.20 25.90 28.30 31.40 37.40 40.90 47.10 51.70
WrALASSE:S 381.19 573.95 842.40 1,130.16 1,304.74 1,471.88 1,538.15 1,555.79 1,634.82
& l.i ---- - _
awEV0 auNRIRJIOtl 395.75 606.61 838.47 1,030.58 1,108.U8 1,167.U2 1,121.06 1,103.03 1,172.28 SETAINU)UR (37.34) (52.80) (46.30) (25.80) (10.19) 14.85 43.48 49.18 57.70
WmrL wl1Y 358.42 553.80 792.17 1,W4.78 1,097.90 1,181.87 1,164.54 1,152.22 1,229.98
LOW3& HD)UHTIM [UT
2NRD(OEPsD) - - 30.75 104.44 190.25 271.86 332.35 360.23 359.1l ... ~~~~~~~~~~~~. ...-... -..-...--...... -...... WmLALIG TRH DET * - 30.75 104.44 190.25 271.86 332.35 36U.23 359.11 KDIUI WMIDT 3.74 2.50 1.26 (.00) (.U0) (.U0) (.OD) (.uo) (.00)
IWEALB2VDIID 3.74 2.50 32.01 WO4.44 190.25 271.06 332.35 360.23 359.11 c1mnTLlA8ILllIS
O.3TOI S ISITS 5.69 6.11 6.68 7.U8 8.49 9.35 10.94 12.62 14.55 SUtLIES 7.80 6.00 6.20 8.00 4.20 5.00 5.50 6.00 6.16 MMEPAYABLE AOIIS 4.30 4.30 4.10 4.00 3.90 3.WO 3.70 3.60 3.90 aWUW M4UMZLES 1.24 1.24 1.24 1.26 - - 21.12 21.12 21.12 UiLaNT LIAILIlSS 19.03 17.65 18.22 20.91 16,59 18.15 41,126 43.34 5.73
WmALMMY & LIASTuT1s 381.19 573.95 842.40 1,130.16 1,304.74 1,471.88 1,535.15 1,555.79 1,634.82
DEPTiEQUITYRATIO 1199 0oloo 4196 9t91 15:85 19:81 22178 24176 23177 ALWERIA
NATIONALWATER SUPPLY & sEwSDWaeMJM
EPEo SOURaCSANDPPLICAItiNs CF FUhDS - ESrIAWTED (L984) &PRWESw (1985-1992) ._...... _._...... _.__...... _.. __... __...... _.__...... _ DAH3LIO 1984 1985 1986 1987 1988 1989 1990 1991 L992
USESOF FUND6 ...... CAPITALIvWFff*XI _...... _.. PRDPUSEDPhOJEC - 135.20 210.10 219.50 124.U0 52.60 - ' - .1HEaCAPITAL EXP. 40.94 55.66 67.76 67.94 51.U0 10M.0 62.0 42.U0 105.Uo CAPITALIZEDINrEREST - - 3.25 8.69 15.81 23.61 31.11 - .~~~~~~~~~~~~~~~~~~~~~~~. _ ...... _...... ____._...... __...... TJIAL LNVESTHENTS 40.94 190.86 281.11 296.03 190.81 184.L1 93.11 42.00 105.00 DCP.E (DeatASE) LN WaRXlNSCAPTrAL 8.63 12.42 (2.87) (.30) 6.19 4.44 1.51 4.12 2.21 DMrSERVICE - MUTMEST - - - - 37.08 38.62 - AI'RTZ. OFL0ANS 1.24 1.24 1.24 1.24 1.26 - - 21.12 21.12 ...... _ ...... _-…...... _.b...... __.__ lOTALDDT SERYICE 1.24 1.24 1.24 1.24 1.26 - - 58.20 59.74
TOIALUSes OF FLN2S 50.81 204.52 279.48 297.07 198.26 188.65 94.62 104.32 166.95
9WRCESCF FUND6 _...... _. OPERATINODNIM{E HIM DEPCIAT1ON (8.12) (6.33) 16.87 31.27 34.95 48.11 58.97 73.34 77.70
...... - PROPOSEDLD LAN - - 30.75 73.69 85.81 81.61 81.61 49.00 20.W ~~~~~~~...... _. t . ... _...... _ ...... _..._. TOTALDaEEIGCS - - 30.75 73.69 85.81 81,61 81.61 49.U0 20.00 COVEuRiENTr0IRIBUrI0NS 58.93 210.85 231.86 192.11 77.50 58.93 (45.96) (18.02) 69.25
TMMAL90URCEF FUNL 50.81 204.52 279.48 297.07 198.26 188.65 94.62 1U4.32 166.95 - _---- _ -_ -66-
ANNEX 19 Page 1 of 4
ALGERIA
NATIONALWATER SUPPLY AND SEWERAGEPROJECT
FINANCIAL STATEMENTSOF EPEOR AND EPECO
Assumptions for Financial Analysis
Opening Balance Sheet
1. EPEOR and EPECO balance sheets for 1984 are based on the companies' opening balances when they started taking over services in their jurisdictional areas:
(i) Fixed assets, comprising water supply and sewerage facilities which are to be transferred to EPEOR and EPECO were tentatively assessed at their current (1984) replacement cost net of depreciation. These assets include facilities previously owned by SONADE and the municipalities.
(ii) EPECO's current assets and liabilities represent only those transferred by SONADE - Constantine to EPECO at their book values. EPECO has not taken over the current assets and liabilities of the municipalities. For EPEOR they represent the current assets and liabilities inherited from SONADE - Oran and the Oran Regie.
(iii) The net value of the companies' assets is assumed to be a Government contribution to equity. The negative balance of retained earnings by EPECO represents accumulated losses of SONADE- Constantine as transferred to EPECO's books. For EPEOR they represent the same as taken over from SONADE- Oran and the Oran Regie.
Income Statements
2. Internal Inflation: The following inflation rates were used:
1985 - 1988: 7% 1989 - 1990: 6X 1991 - 1992: 5X
3. Operating Revenues
(i) Projection of Water Sales
In 1984 the companies provided services only in the capital -67-
ANNEX19 Page 2 of 4
cities of the wilayate within their jurisdiction. Water sales are assumed to increase in 1985 and 1986 as the companies continue to take over other towns in their jurisdiction. Sales will further increase after the proposed project is completed. The increased sales also reflect expected improvement in unaccounted-for water which is projected to reach 231 in 1992. Water sales from 1987 onward are projected on the basis of expected demand and the production levels as envisaged under the project.
(ii) Revenues
Revenues in 1985 are based on the assumption that the new tariff increase would be introduced as from September 1, 1985. It is expected that more tariff increases would be applied in the future starting in 1987. Increases throughout the projection period are projected to average about 41 annually for EPEOR and 7X for EPECO.
(iii) Meter Rental and Connection Maintenance
In projecting revenues for these two items, the following was assumed:
(a) Fees for meter rental and connection maintenance will be the same in all the wilayate and will average DA 60.0 per year in 1985. They were DA 10.0 in 1984.
(b) Revenues are based on the mid-year average numbers of connections, taking into account the gradual take over of operations in the wilayate.
(iv) New Connections
Connections are the property of the customers. They are billed at their cost (currentlyat about DA 1,700 for master meters), plus a service tax of 11.1X. The number of connections is projected on the basis of population growth in the project area, in addition to new connections (which are expected as a result of the project) to meet unsatisfied demand.
4. Operating Expenses
(i) Personnel: Personnel expenses are projected to increase in proportion to the required number of staff and salary adjustments. Additional staff, needed for operating the new project facilities, are taken into account from the years the facilities are put in operation. -68-
APO= 19 Page 3 of 4
(ii) Energy and Fuel: Future levels of consumption are projected assuming gradual improvement of efficiency. Energy required for operating the project is estimated on the basis of the 1984 prices adjusted for inflation.
(iii) Materials and Maintenance: Their quantities are based on the estimated number of new connections and forecast maintenance programs.
(iv) Taxes: Calculated according to their nature: a tax of 2.53Z on gross revenues, a tax of 11.1X on all purchases of materials, plus a 6% tax on salaries.
(v) Capital Expenses: This represents the cost of connection extensions (material, labor, overhead and taxes) included in the foregoing items, which are constructed by EPEOR and EPECO and incorporated in their assets.
(vi) Depreciation: Calculated at straight-line rates based on the estimated service lives of major assets components. The annual average depreciation rates of 2.6 percent for EPEOR and approximately 14 percent for EPECO, through the projection period are somewhat lower than usual because of the dams and pipelines which have long useful lives.
Accounts Receivable
5. Receivables for water consumption are assumed to decline following improvement in billing and collection envisaged under the project, and are based on target collection periods. Accounts receivable are expected to reach three months of billing by 1987. Other accounts are projected to vary slightly over the projection period.
Inventories
6. In 1984 inventories represented about 12 months of consumption of materials and chemicals. This level is expected to decrease through the implementationof new materials control systems which will be proposed under the management studies. It is projected to represent six months by 1990.
Accounts Payable
7. They are projected as follows:
{i) Customers' deposits: They are calculated on an average of three-month consumption, plus other fees, and are adjusted along expected tariff increases. -69- ANN( 19 Page 4 of 4
(ii) Suppliers (includingretention money): A declining ratio per month of total purchase of materials and investments is projected, but this is not expected to go below three months of total purchase (excluding the projected investments for which working capital would be financed by the Ministry of Hydraulics, the executing agency).
Long and Medium-Term Loans
8. They include:
(i) Proceeds of the proposed Bank loan, which are to be reimbursed by EPEOR and EPECO to the Government. An annual interest rate of 10X as well as a commitment fee of 0.75 percent per annum will be charged on the loan . The loan is repayable by EPEOR and EPECO in twenty-five years including five years of grace.
(ii) Proceeds of unidentified long-term loan to finance foreign exchange components of EPEOR's next plan of investments starting from 1989. The loan would be repayable after five years of grace at an annual interest rate of 10 as well as a commitment fee of 0.75 percent per annum.
(iii) Current medium-term loans are from local government-owned development and comuercial banks and were used for financing previous investments by SONADE. They are payable over five years after two years of grace with an interest rate of 5.5 percent. -70-
AIllEl 21 Page2 of 2
ALGERIA
NATIONULMATER SUIPLY All SEIWERACEPROJECT
CONSTANTINESUBPROJECT
CASHFLOW FOR CALCULATIOII OF THE ECONOMICRATE OF RETURWY
CAPITALCOSTS2/ OPERATINGEXPENSES Total Year Incremntal Sales Foreign Local ForeignY Local Costs Ni3 DA10 6 DAl0 6
1985 - - 33.0 49.6 - _ 82.6 1986 - - 45.2 4.5 - - 93.7 1987 9.4 17.9 42.3 49.6 1.3 5.4 91.9 1988 9.7 18.4 20.9 27.0 1.4 5.6 54.9 1989 16.4 31.2 - - 2.3 9.0 11.3
1990 17.7 33.6 - - 2.4 9.6 12.0 1991 19.0 36.1 - - 2.S 10.2 12.7 1992 20.3 38.6 - - 2.7 10.6 13.3 1993 21.6 41.1 - - 2.8 11.2 14.0 1994 23.1 43.9 - - 2.9 11.6 14.5 1995 23.1 43.9 - - 2.9 11.6 14.5 1996 23.1 43.9 - - 2.9 11.6 14.5 1997 23.1 43.9 - - 2.9 11.6 14.5 1998 23.1 43.9 - - 2.9 11.6 14.5 1999 23.1 43.9 - - 2.9 11.6 14.5 200O 23.1 43.9 - - 2.9 11.6 14.5
2001 23.1 43.9 - - 2.9 11.6 14.5 2002 23.1 43.9 - - 2.9 11.6 14.5 2003 23.1 43.9 12.5 14.5 2.9 11.6 41.5 2004 23.1 43.9 7.7 9.8 2.9 11.6 32.0 2005 23.1 43.9 - - 2.9 11.6 14.5 2006 23.1 43.9 - - 2.9 11.6 14.5 2007 23.1 43.9 - _ 2.9 11.6 14.5 2008 23.1 43.9 - - 2.9 11.6 14.5 2009 23.1 43.9 - - 2.9 11.6 14.5 2010 23.1 43.9 - - 2.9 11.6 14.5
2011 23.1 43.9 - - 2.9 11.6 14.5 2012 23.1 43.9 - - 2.9 11.6 14.5 2013 23.1 43.9 - _ 2.9 11.6 14.5 2014 23.1 43.9 - - 2.9 11.6 14.5 2015 23.1 43.9 - - 2.9 11.6 14.5 2016 23.1 43.9 - - 2.9 11.6 14.5 2017 23.1 43.9 - - 2.9 11.6 14.5 2018 23.1 43.9 - - 2.9 11.6 14.5 2019 23.1 43.9 - - 2.9 11.6 14.5 2020 23.1 43.9 - - 2.9 11.6 14.5
j/ All values in the cost and revenue stress are expressed in ters of the 1985 price levels.
L They exclude the Investments for sage treatret and irrigation facilities. as no benefits fro agriculture are Included in the revenues. The costs are net of taxes and duties which are estimated to represent 30 percent of the total investmnts.
A Assming that bout 20 percent of the expensesare for imported materials. products aNd equipmentfor operatioms. -71-
MM"EX 20 Page 1 of 2 ALGERIA
NATIONAL WATER SUPPLY AMD SEWERAGEPROJECT
ORAN StBPROJECT - EPEOR
Monitoring Indicators
Indicators ni m 1iQR im 19 ini 9
I. Staffng
Total Staff,' 1.210 1.290 1.360 1,460 1,520 1.70 Staff Per 105000 People Served 6.8 7.0 7.1 7.4 7.4 7.4
II. Svstenooerations
Water Produced 106 n3/ year 88.78 89.90 119.49 134.96 140.22 145.95 152.70 Water Sold. 10 g 3/year 69.34 71.11 94.28 107.16 112.88 118.95 124.45 Unaccounted-for Water (Retail) % 27 26 25 24 23 22 22
XXX. Finance
Operating Ratio ?2/ 63 63 63 73 72 68 67 Debt:Equity Ratio 4:96 9:91 16:84 23:77 28:72 29.71 29.71 Debt Service Coverage (times)3 / NA. NA. NA. *A. NA. 1.3 1.4 Average Rate in OA per r3 sold 2.16 2.25 2.34 2.43 2.53 2.64 2.67 Collection Period (days)4 / 210 180 125 90 90 90 90 Self-financing Ratio S NA. 15 iS 1S 1S 15 15
1/ At year end (December 31). V/ Total operating expenses divided by total revenues x 100. 3/ There Is practicallyno debt In the years 1986 through 1989. A/ Accounts receivable at a given date divided by average daily billing. -72-
ANNEX 20 Page 2 of 2 ALGERTA
NATIONAL AITER SUPPLY AND SEWERAGEPROJECT
CONSTANTINE SUBPROJECT - EPECO
Monitorina Indicators
Indicators l97 18I1 90 isal=1l9
I. Staffina
Total Staff"z 680 740 770 830 860 890 Staff Per 10.000 People Served 6.9 7.3 7.3 7.6 7.6 7.6
1I. Systems Onerations
Water Produced 106 m3/ year 37.90 51.00 52.00 60.60 62.70 64.50 66.58 water Sold. 106 m3 /year 28.01 37.89 39.42 46.42 48.59 50.57 51.93 Unaccounted-for Water (Retail) X 28 27 26 2S 2; 23 23
III. finance
Operating Ratio 12/ 0.89 0.76 0.83 0.79 0.79 0.72 0.72 Debt:Equity Ratio 4:96 9:91 15:85 19:81 22:78 24:76 23:77 Debt Service Coverage (times)3/ NA. NA. NA. NA. NA. 1.3 1.3 Average Rate in DA per m 3 sold 1.90 2.03 2.18 2.33 2.49 2.78 2.87 Collection Period (days)4 / 210 19O 125 90 90 90 90 Self-financing Ratio % NA. 10 15 15 15 15 15
1/ At year end (December 31). ZI Total operating expenses divided by total revenues x 10. 3/ There is practically no debt in the years 1986 through 1989. y Accounts receivable at a given date divided by average daily billing. -73-
ANNEX21 Page 1 of 2
ALGERIA
NATIONALMATER SUPPLY AN4D SEWERAGE PROJECT
ORMASUBPROJECT
CASHFLOW FORl CALCULATION OF THEECONOMIC RATE OF RETURN!
CAPITALCOSTS2/ OPERATINGEVPENSES Total Year Incremental Sales Foreign Local ForeignA/ Local Costs ,h3 DAM 6 DA 1o6
1985 - - 47.4 33.9 - - 81.3 1986 - - 173.0 139.0 - - 312.0 1987 - - 155.3 123.2 - - 278.5 1988 26.5 57.2 27.2 27.4 4.6 18.5 77.7 1989 29.5 63.7 - - 4.8 19.2 24.0
1990 32.5 70.2 - - 5.1 20.5 25.6 1991 35.5 76.7 - - 5.2 20.8 26.0 1992 38.0 82.1 - - 5.3 21.1 26.4 1993 40.5 87.5 - - 5.4 21.4 26.8 1994 43.0 92.9 - - 5.4 21.8 27.2 1995 45.5 98.3 - - 5.5 22.1 27.6 1995 48.0 103.7 - - 5.6 22.3 27.9 1997 50.2 108.4 - - 5.6 22.6 28.2 1998 52.5 113.4 - - 5.7 22.8 28.5 1999 55.0 118.8 - - 5.8 23.0 28.8
2000 57.2 123.6 - - 5.8 23.2 29.0 2001 59.5 128.5 - - 5.1 23.4 29.2 2002 61.5 132.8 - - 5.9 23.5 29.4 2003 61.5 132.8 20.6 6.0 5.9 23.5 56.0 2004 67.5 132.8 20.0 7.5 5.9 23.5 56.9 200S 61.5 132.8 - - 5.9 23.5 29.4 2006 61.5 132.8 - - 5.9 23.5 29.4 2007 61.5 132.8 - - 5.9 23.5 29.4 2008 61.5 132.8 - - 5.9 23.5 29.4 20D9 61.5 132.8 - - 5.9 23.5 29.4
2010 61.5 132.8 - - 5.9 23.5 29.4 2011 67.5 132.8 - - 5.9 23.5 29.4 2012 61.S 132.8 - - 5.9 23.5 29.4 2013 61.5 132.8 - - 5.9 23.5 29.4 2014 61.5 132.8 - - 5.9 23.5 29.4 2015 61.5 132.8 - - 5.9 23.5 29.4 2016 61.5 132.8 - - 5.9 23.5 29.4 2017 61.5 132.8 - - 5.9 23.5 29.4 2018 61.5 132.8 - - 5.9 23.5 29.4 2019 61.5 132.8 - - 5.9 23.5 29.4 2020 61.5 132.8 - - 5.9 23.5 29.4
1/ All values in the cost and revenue strews are expressed in terms of the 1985 price levels.
jI They exclude investments for tqroving the water quality, such as Bredeah Demineralisation Plant. and for repairing existing facilities. The costs are net of taxes and duties which are estimated to account for about 30S of the total investments.
3/ Assumingthat about 20 percent of the expensesare for liported aterials. products and equipmnt for operations. -74-
ANNEX22
ALGERIA
NATIONAL WATERSUPPLY AND SEWERAGEPROJECT
DISTRIBUTION OF ANNUALEXPENSES BY HOUSEHOLDSIN THE PROJECT AREA IN 1980
(DA Per Capita)
Item Population Percentile Average Average 4 25 40 50 75 Expenses Percent
Potable Water Supply 6 10 12 15 20 16 0.4 Bread-Cereals 123 203 246 285 421 317 8.2 Fresh Fruits and Vegetables 216 357 432 501 739 556 14.4 Food and Soft Drink 214 354 429 498 733 552 14.3 Meat-Fish 284 468 567 658 970 730 18.9 Dry Fruits and Vegetables 19 32 39 45 67 50 1.3 Clothes and Shoes 141 233 282 327 482 363 9.4 Housing 64 107 129 150 220 166 4.3 Electricity and Gas 38 62 75 87 128 97 2.5 Furniture 90 149 180 209 308 232 6.0 Health Care 45 74 90 104 154 116 3.0 Transportation 80 131 159 184 272 205 5.3 Education, Recreation 64 107 129 150 221 166 4.3 Other 116 191 231 268 395 297 7.7
TOTALANNUAL
EXPENSES LM 23u..2 3.481J 3.863 JQQEA
I, The average size of a household in Oran and Constantine is 7.1 persons
January 1985 -75-
ANNEX 23
ALGERIA
NATIONAL WATER SUPPLY AND SEWERAGE PROJECT
Selected Documents and Data Available in the Project File
1. Monthly Water Production by EPEOR. Feb. - Aug., 1984.
2. Proposals for Computerizing EPEOR's billing, collection, accounting and stocks.
3. Proposed Organizational Chart for EPEOR.
4. EPEOR's Operational Report - Apr/May 1984.
5. Proposals for Rehabilitation of Beni Badhel and Fergouz Water Production Systems.
6. Comparison of Feasible Alternatives for Conveying Lower Tafna River Waters to Greater Oran, Feb. 1983.
7. Depenses de Consommation des Menages Alg6riens (2 Volumes), Office National des Statistiques, July 1983.
8. Recensement Gen6ral de la Population et de l'Habitat, 1966, Direction des Statistiques.
9. Population et Habitat des Villes et Chefs Lieux au Recensement de 1966,Direction des Statistiques.
10. Creation of Regional Water Companies, Official Journal, May 17, 1983.
11. Water Code - Law No. 83-17, July 16, 1983
12. Proposed Organizational Chart for EPECO, June 1984.
13. Mostaganem Subproject - EPEMO's Organization.
14. Annaba Subproject - EPEA's Organization.
15. Batna Subproject - EPEBA's Organization.
January 1985 IdRD1861?
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