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DETARMIET of STATE Aieucy for Ijteatonfio1ul Evelop-Mir Washington, D.C. 20523 PROJECT PAPER Proposal Aid Recommendations Devel

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DETARMIET of STATE Aieucy for Ijteatonfio1ul Evelop-Mir Washington, D.C. 20523 PROJECT PAPER Proposal Aid Recommendations Devel UNCLASSIFIED I'1 DETARMIET OF STATE AiEucy FOR IJTEATONfIO1UL EVELoP-MIr Washington, D.C. 20523 PROJECT PAPER Proposal Aid Recommendations For the h i,. ,w of the Development Lom Committee BOLIVIA- RURAL SANITATION AID-DLC/P-E-20 UNCLASSIFIED DEPARTMENT OF STATE AGENCY FOR INTERNATIONAL DEVELOPMENT WASHINGTON. D.C. 20523 UNCLASSIFIED AID-DLC/P-2220 March 18, 1977 MEMORANDUM FOR THE DEVELOPMENT LOAN COMMITTEE SUBJECT: Bolivia - Rural Sanitation Attached for your review is the recommendation of for authorization a loan to the Republic of Bolivia of not to exceed Four Million United States Dollars ($4,ooo,Ooo) to assist in financing certain foreign exchange and local currency costs of goods of a rural and services sanitation program for the provision supplies of potable water at the village level in approximately 200 villages in southeastern Bolivia (the "Project"). No meeting is scheduled for this loan proposal. However, please advise us of your concurrence or objections as early as possible, but in no event later than close of business on Tuesday, March 29, 1977. If you are a voting member, a poll sheet has been enclosed for your response. Development Loan Committee Office of Development Program Review Attachments: Summary and Recommendations Project Analysis Annexes I - V UNCLASSIFIED I. TRANSACTION CODE A EN C rO R N TEr_ ATrON AL D EV E .O P EN T A D p p PROJECT PAPER FACESHEET 0C.CACUMENT DELETE CODE I COUNTRYBolivia ENTIry 3 4. DOCUMENT REVISION NUMBER S, PROJ ECT NUMBER ( dIQ:tz) 6. BUREAU OFFICE 7. PROJECT TITLE (.$fe*nmuM 40 characteri) E - 511-0458 A SYMBOL B. CODE LA C5 L R]ral Sanitation . ESTIMATED FY OF PROJECT COMPLETION ] 9. ESTIMATED DATE OF OBLIGATION ,y E1TA SC. INITIAL FY LL .OUARTER FINAL FY 18101 (Enter1. 2.3J or4) 10. ESTIMATED COSTS S000 OR EQUIVALENT $1 ­ ) FUNDING SOURCEFY 0_ Fx LIFE OF PP'!IIECT C . C D. TOTAL E P' F. L C 0. TOTAL AID APPROPRIATED TOTAL CRANT I 5 I 0 5 4 202 - A I - 1,562 I 200 400 ' ( 1,962 1I 2 067 1 ,933 I I 4,000 US 2. HOST COUNTRY 95 95 2,500 2 500 OTHFER DONORIS) T ______OTALS '---, _-- 95 --- 2,1 2,267 4,433 I PROPOSED 6,700 BUOGET APPROPRIATED FUNDS i10001 A APP4O. B. PRIMARY PRIMARY TECH. COE E S yl H.77) Y7 P P IA T IO N P U R P O SE -- -- 7 8K . 3R D Fy 72) CODE C GRANT 0 _OAN GRANT L A GRANT J LOAN I, H5050 55 . GRANT M. LOAN 54 ,000 - ----- 74 1 80- TOTALS 54 4,000; - 74 - 7 A, APPROPRIATION N. 4TH FY_ Q. 5TH Fy LIFE OF PROJECT UATIONINDEPTHT. SCHEDULED EVAL. 0. GRANT R. LO.-N R . CRANT S. LOAN T. GRAN T , UJ. LOAN 72 200 4,000 (3) T OTALS 72 1. DA CHANGE INDICATOR. 200 WERE CHANJGES MADE IN THE 4,000 FACESHEET PO FACESHEET DATA. BLOCKS DATA, BLOCK 12' IF YES. 12, 13. 14, O I5 OR IN PRP ATTACH CHANGED PID FACESHEET. = YYES 14. ORIGINATING 0 CE CLEARANCE 15. DATE DOCUMENT RECEIVED SIGNATURE _IN AID/W, OR FOR AIO/W DOCU. I G N T U E ME N T S . D A T E O F D IS T R IB U T IO N Frank Bo Kimball DATE SIGNED Mission Director 2 1O7 7 m Y71 AID 1330.4 13-761 TAI, 01,' (ONTENTS PART I - ITMMAlNYAND I:COMMINDAT ION I'Ar II - PROJECT BACKGROUND AND DETAILED DESCRIPTION PAGE Section A. Project Background 1. Priority and Relevance a. Health status of the Bolivian Population 1 b. Potable Water coverage 3 c. National Commitment to Rural Sanitation 4 d. GOB Strategy in Rural Water Supply 4 e. Mission Strategy 5 2. Relationship to current AID Programs 6 3. Other Donor Activities 8 a. World Bank Project 8 b. UNICEF 11 c. CARE - Rural Waters Systems Project 12 Section B. Detailed Project Description 1. Goal 13 2. Purposcs 13 3. End of Project Status 13 4. Project Focus 14 a. Geographic Focus 14 b. The Target Group 15 5. Project Design 17 a. Executing Agency 17 b. Systems Design 17 c. Systems Installation 20 d. Systems Maintenance 21 e. Community Education 24 f. Program Evaluation 26 g. Site Selection Criteria 29 h. Institution - Building Aspects of Project 32 i. Project Inputs 34 PART III - PROJECT ANALYSIS Section A. Technical and Engineering Analysis 1. Description of Selected Technology 37 2. Design Standard 38 3. Engineering and Construction 40 4. Equipment Maintenance 41 5. Systems Maintenance 42 6. Technical Feasibility 43 7. Cost Estima-e 43 8. Latrines 43 9. Procurement Procedures 44 10. Water Treatment 44 I3. Envirorimental Analysis 45 12. C-.:' 611 cation 47 Section B. Social Analysis 1. Socio-Economic Characteristics of Target Group 49 2. Social Benefit Incidence 50 a. Target Group Profile 50 b. Nature of Benefits to Target Group 50 c. Other Direct Beneficiaries 51 d. Benefits to Women 51 e. Spread Effects 51 3. Social Acceptability 52 a. Sanitary Habits 52 b. Community Interest 53 c. Importance of Self-Help 53 4. Social Consequences 53 a. Changes in Power, Participation and Equity 53 b. Rural Displacement and Migration 53 Section C. Economic Analysis 1. State of National Economy a. Current Economic Situation 54 b. Justification of AID Loan Terms 56 2. Economic Analysis of WaTer Systems 56 a. Use of Incremental Benefit/Cost and Least Cost Analysis in Lieu of Traditional Benefit! Cost Analysis 56 b. Distance to Water Source and Effects on Economic Analysis 57 c. Use of Incremental Benefit/Cost to Determine Location of Outlets 59 d. Rank Ordering of Villages on Least Cost Basis 61 e. Shadow Pricing Community Contribution 63 f. Cost Adjustment for Down rime 64 g. Summary of Least Cost Analysis Procedure to be Followed by DSA in Selecting Villages for Water Systems 65 h. Analysis of Cost Data for Types i, B, and C Water Systems for Several Illustrative Popu­ lation Sizes 65 Section D. Financial Analysis 1. Financial Plan/Budget Analysis 66 2. Recurrent Budget Analysis 69 3. Summary Opinion 72 Section E. Institutional Analysis 1. Administrative Arrnrements 73 1. II..tory of DSA b. Organiiation 73 of USA 73 c. USAID Experience with DS]A 74 d. Other Donor Experience e. DSA Prior 75 Experience 75 f. Management Capability 76 g. Disbursement Period 77 PART IV - IMPLEMENTATION PLANNING Section A Schedule of Major Events 78 Section B Disbursement Procedures 79 Section C Procurement Procedures 79 Section D USAID Monitoring Requirements 79 Section E Reports 8o Section F Evaluation 80 Section G Conditions and Covenants 80 ANNEXES Legal Documentation A. Letter of Application B. Draft Project Authorization C. Statutory Checklist D. Directors Certification E. Expression of Interest from Other Donors F. Initial Environmental Examination II Project Overview A. Logical Framework B. PIr Network C. DAEC Cable - Interim Report D. DAEC Cable - IRR E. List of Candidate Project Communities F. DSA Personnel and Salary Listing G. Information System Outline and interface points for Impact Evaluation H. Major Causes of Morbidity by Age - Cochabamba and Chuquisaca I. DSA Organization Chart J. GOB Sector Pationalization Statement III Engineering Exhibits A. Design Sketches B. Equipment List C. Alternatipe for Public Taps D. Maintenance Costs E. Costs of Water Systems IV Economic Exhibits A. Designing a Water System B. Cost Estimates C. Calculations by Village Size of Per Capita Cost D. Quantification frr Nater Systems of Incremental Benefits from Resulting Charge in Distance of E. Water Source Use of Present Value Technique V Financial Exhibits A. Materials: Procurement B. Proposed Technical Assistance C. Engineering, Skilled Labor and Support (DSA) D. DSA Operating Expenses E. Col-.ract Labor (AID) i) PART I. PROJECT SUMMARY AND RECOMMENDATIONS Section A. Face Sheet Section B. Recommendations The following action is hereby submitted for AID approval: - Loan $4,000,000 (Loan Terms: 40 years, 10 year grace 2% interest during grace period 3% thereafter) - Grant 200000 Total New AID Obligation $4,200,000 Section C. Description of the Project 1. Borrower The Borrower will be the Government of Bolivia (GOB); the Ministry of Health's (MOH) Division or Environmental Sanitation (DSA) will serve as the Project's principal executing agency. The MOH Divisions of Epidemiology and Human Resources will provide sup­ port to the DSA in the execution of the Project. 2. Summary Project Description The proposed Project is designed to create an institu­ tional capacity in the DSA that will enable it to carry out rural sanitation future programs on a scale that will make a significant impact on the need for potable water in rural Bolivia. The Mission anticipates that by developing a functioning institutional base in DSA it will become art attractive, effective vehicle through which future resources of other international donors can be channelled. To achieve this objective, USAID/Bolivia is proposing to with the resources assist DSA (equipment, materials and technical assistance) necessary to strengthen their institutional base and demonstrate, through the construction of approximately 200 sanitation systems, the ability to use significant amounts of resources effectively. During the proposed four and one-half year loan disbursement period, the Project will help to finance a DSA program to construct approximately 200 potable water supply systems and 7,600 'Latrines, as well as provide health and hygiene education and instruction in systems maintenance to the estimated 11,000 families who will be the direct beneficiaries of the Project. The target communities will be located in the Departments of Cochabamba and northern Chuquisaca. ( i 1.i) It is anticipated that the activities contemplated under the project will strengthen the institutional capacity of PSA and the Division of Human Resources and Epidemio­ logy in the Ministry of Health to construct water and sanitary systems, to pr-vide basic community education in hygiene and water use to measure the health impact of rural water, and to evaluate internally DSA's capacity to carry out the aforementioned activities through the establishment of a Management Information System.
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