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Suva-Nausori Water Supply and Sewerage Project

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Suva-Nausori Water Supply and Sewerage Project ASIAN DEVELOPMENT BANK TAR: FIJ 32200 TECHNICAL ASSISTANCE TO THE REPUBLIC OF FIJI FOR THE SUVA-NAUSORI WATER SUPPLY AND SEWERAGE PROJECT August 1998 - t.' '4 &4 i i 4.' ._t..&I.&I I. it' ri rn.', rn nii' fl,, Cl I In ClflrtnIz nfl. Il rr. r, rn e, fit t, I nr.r.nn ml cu II.,I1I IA I .L&LJLJI II IVLI I II IL LI IIIi QTimT TF ?Ir,flr.r' fl\ fifiCI -. — I I I I II I 4 I V — . 111 III 11711 I.', '..,'., _1 I..,. l_, II , IIItCI.. I IFI lilt UI Ul Irlt-I Ill I r,rl1Ir'rInrA rn r,L irnnrr,cnrA'i' rAtr.c.TIrc - ss...n:..... s SL.r__Lfl__i!._I ,_!___]$ . III I• tJII(III-1KF ',I)tI.4I CURRENCY EQUIVALENTS (as of 1 June 1998) Currency Unit - Fiji dollar (F$) F$1.00 = US$O.4875 US$1.00 = F$2.0513 Since April 1975, the Fiji dollar has been linked to a weighted basket of currencies of the country's trading partners. ABBREVIATIONS JSF - Japan Special Fund MCWE - Ministry of Communications, Works and Energy TA - Technical Assistance WSS - Water and Sewerage Section of the Public Works Department NOTE The fiscal year (FY) of the Government ends on 31 December. I I I •• .- ._ . .. -. - •_ • ._ .- . .. I P I u_ i_I :_l:___1I_ I • • - :::._ ::....: . • •• • T - I I ii-• i III j,It' I •F - -,-.- -- .__- U - - - -- __I - - -I --- -- I - - ------ I I I I I I I I I I__.-!...- I _I- ---- - - I. INTRODUCTION 1. In 1997, the Government requested the Bank's assistance to improve the water supply and sewerage systems in the Suva—Nauson area of Fiji's principal island of Viti Levu. The Bank's country program for Fiji includes a loan Project for this purpose in 2000. The proposed Project is part of a Government program to upgrade water supply and sewerage services in Fiji's main population centers. Bank-financed technical assistance (TA) to prepare a framework for corporatizing water supply and sewerage services in Fiji has recently been completed.1 2. The Government reaffirmed its request for assistance to the Bank's 1998 Country Programming mission. The Government is concurrently seeking further assistance from the Bank to implement its program to corporatize public enterprises. Further TA for implementing the recommended corporatization measures is programmed for 1999, and will be implemented in step with the proposed Project. A Fact-finding Mission for the project preparatory TA for the proposed Suva—Nausori Water Supply and Sewerage Project visited Fiji from 27 May to 5 June 1998.2 II. BACKGROUND AND RATIONALE 3. Suva is the capital of Fiji. The Suva urban area, which includes Suva city and the nearby towns of Nausori and Lami, is located in the east of Fiji's principal island of Viti Levu. It has a population of 250,000 people, it is Fiji's principal commercial and service center, and it is the center of Government. Retail banks, insurance companies, and distributors of supplies and materials have their principal offices and depots in the Suva urban area Suva is also one of Fiji's major ports, which has stimulated the growth of associated industries and commercial ventures. Export-oriented industries include clothing manufacture, footwear manufacture, and food processing. Other small industries are associated with distribution and local consumption. 4. The Suva urban area is served by a common water supply system, but Suva and Nausori have independent sewerage systems. In 1998 Suva suffered from water supply disruptions, which were overcome by adjusting and optimizing existing supply facilities. Measures to reduce water losses from system leaks are being implemented. However, the water supply system has very little reserve capacity. Only about 60,000 of Suva's 160,000 population are connected to the piped sewerage system. The remainder of the city's population is served by on-site disposal systems - septic tanks, household cesspits, and the like - and levels of pollution in the streams and drains that flow through the city indicate that the discharge of untreated sewage is increasingly becoming an environmental and health hazard. 5. Since 1993, the Government has focused its economic policies on export-led growth, but has recognized that inadequate infrastructure will be a major constraint. A program to improve water supply and sewerage services in the main centers of economic activity has commenced. The two most significant centers, are the Suva urban area and the Nadi-Lautoka area of Viti Levu. 6. The population of the Suva urban area grew at a rate of 4.7 percent per annum during the intercensus decade between 1976 and 1986. Final census data for 1996 are being TA No. 2621-FIJ: Corporatization of the Water and Sewerage Section of the Ministry of Public Works, Infrastructure, and Transport, for $800,000 approved on 30 July 1996. The TA first appeared in ADB Business Opportunities in April 1 96. - - - - . - - - - - --- - - h1 I-.- I *, I •. I I:':! - - - '- - - - - - - - - - - . - - - - - - - - -- - - - 2 finalized, but the rate of construction of new buildings indicates that there was a significant drop in the rate of population growth after 1986. The population growth rate now appears to have increased again, and may continue at around 3 percent per annum until 2000. The increased rate of population growth will place further strain on Suva's water supply and sanitation systems. As well as constraining economic growth, lack of capacity in these systems will have a deleterious impact on community health and the city's environment. 7. Urban water supply and sewerage services in Fiji are developed and operated by the Water and Sewerage Section (WSS) of the Public Works Department. 1 As a component of its economic reforms, the Government has embarked on a program of corporatizing and, where appropriate, privatizing the delivery of urban services. The Bank has been assisting the Government in the côrporatization of WSS, and has programmed further assistance in the implementation of corporatization.2 8. In the Suva urban area, development of water supply services has continued in line proposals made in the late 1970s, and set out in greater detail in a master plan prepared in 1984. The city's sewerage master plan was prepared in 1971, and development of the sewerage system has largely followed the concepts set out in the original master plan. 9. The capacities of Suva's two principal sources of water supply are nearing their limits. An assessment of demand is required, and water treatment and transmission systems need to be optimized to better match sources to centers of demand. Priority has been given to the connection of old sewers in Suva's central business area, and to new low-cost housing areas. A rational plan for the development of the sewerage system is required. A master plan for the development of the city's principal sewage treatment plant at Kinoya was completed in 1997. As a first step, WSS is refurbishing the plant, and will shortly commence a project that will increase its capacity and remove nutrients that would otherwise cause enrichment of the nearby coastal waters. 10. The Government is receiving assistance from Japan to upgrade the Nadi- Lautoka water supply system. 3 Assistance from the European Union is programmed for an environmental project that will provide a new solid waste disposal landfill for Suva, and will extend the outfall pipeline from the Kinoya sewage treatment plant to discharge treated sewage 1.5 kilometers offshore. 11. A new master plan for the development of water supply and sewerage services in the Suva urban area will be developed under the TA. The master plan will identify short-term and long-term development requirements, and identify optimal investment packages. From the development of the master plan, the TA will prepare a feasibility study for a Project that will significantly contribute to fulfilling the medium-term needs for water supply and sewerage development in the Suva urban area. 12. The TA will complement programmed Bank assistance for public enterprise reform. The master plan and investment project identified by the TA will prepare the physical components of Suva's water supply and sewerage systems for commercialized operation, and will ensure that their development is matched to consumer needs. PWD is a department of the Ministry of Communications, Works, and Energy. The Government has declared WSS to be a reorganization entity, and with programmed Bank TA for pubLic enterprise reform WSS will become an autonomous Government -owned company. A soft loan from the Overseas Economic cooperation Fund for US$17 million was approved in February 1998. ,.,I I J JI I I IjJI I e Ii i !..JLI) _I • W I V I I • I II IPIIt Y I1 II IIIL1I 11d I - -----------n._.. Ia, a .....a I n .a 3 III. THE TECHNICAL ASSISTANCE A. Objective 13. The objective of the TA is to assist with economic and human development in Fiji through the development of water supply and sewerage services in the Suva urban area. Under Phase I of the TA, a master plan will be prepared to guide the development of water supply and sewerage services for the next 20 years. An investment Project suitable for Bank financing will be prepared under Phase 2 of the TA. The TA framework is in Appendix 1. B. Scope Master Plan 14. Under Phase 1 of the TA, current master plans for the development of water supply and sewerage services in the Suva urban area, which includes the city of Suva together with the towns of Nausori and Lami and nearby rural areas, will be reviewed. Service levels will be reviewed, public expectations will be evaluated, and willingness to pay for water services will be assessed in conjunction with a review of the fiscal and household affordability.
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