ACTION MEMORANDUM FOR THE ASSISTANT ADMINISTRATOR, BUREAU FOR ASIA FROM: ASIA/PO, Dennis J. Brennan~ SUBJECT: Congressional Notification: Asia Regional - Rural Water Supply and Sanitation (498-0269) Problem: A CN is required to provide FY 80 funding for the subject project. Discussion: This project was included in the 1981 Congressional Presentation. However, because the South Pacific Commission had additional engineering staff during 1980, the project proposal was completed earlier than projected. Because water and sanitation conditions on the islands of Tuvalu, Tokelevu, Kirkbati, Western Samoa and T0nga are poor, there is an immediate need to begin imple­ mentation of the project as soon as possible. The obligation for 1980 would be $200,000, the same amount as planned for 1981 obligation; the completion date would be 1982, one year earlier than planned. The life-of-project funding remains at $600,00G, and all other parts of the project remain unchanged. Recommendation: That you sign the attached CN. Attachment: Advice of Program Char~e pnOGnAM: ASIA REGIONAL ACTIVITY DATA SHEET c.;p 10·05(10·,., ',UlE FUNDS PHOPOSEU OBLIGATION (1".::.II="Jc:;""'=J:.::"I=s.::.o!...r:::du:..::I/Q:::'-"s)r.-=-;:::;--~~ _________-i Rural \Jater Supply anj Sanitation Ileal th FY 80 200 1~::lJ.?tT 600 N-UMuEA49"S:oi69 -I-;"E;;a~:i PRieR REFERENce I-NITiAL--=neSTIMATED FINAL l-e-"ST'-I-M'-A-T-::-eD-C-OM-PL-f-T-IO-N-D-A-TE---l GI\ANI ~ LUANO CONTINUING 0 None OBLIGATION ODLIGATION OF PROJECT -'---:-------,c-:--;----,..,---~------:-l~.-~O fV 82 ~1~_-:-._--~---' Purpose: To pl'ovide potable drinking water and basic sanitation will supply dll unskilled labor, sites for storage tanks and projects in rurdl villages of certain South Pdcific nations. gl'ave]. Bdckground and Progress to Date: The availability of clean FY 80 Program: Construct ion of new water systems and sanHation supplies of water in rural villages throughout the South Pacific facilities will be illlpleillented in vill.'des of five to eight island has becoille Cl'it ical due to the deteriordt ion of old systellls and stdtes. Villagers will receive instruction on repair and main­ inadequJte storage fdcilities for rain water. Since 1978 the tenance of wdter dnd sanitation systems. For this effort, ar. South Pdcific COllllllission (SPC) has been strivillg to respond to A.I.D. grant of Ools $200,000 is requested. individual country requests by providin!) Iliodest assistdnce to med critical shorta!)es dnd to alleviate health and sanitJtion ($ thousands) problems drising frOlIl d Idck of potuble Ilater. This activity Major Outputs (alld A.I.D. Unit Cost): All Years will provide fu ... ds to the SPC for the continuation and expansion Unit Cost of rurdl water alld basic sanitdtiorl projects, principidly in Tuvalu, Tokelevu, Kiribati, \Jesterll Sallloa, Tonya and possibly ddditional \Juter supply systems constructed and/or isla,.,~ states. The SPC has ident ified an illuJledjate need to illl­ r~habilitated, storage facilities in plelllent a lIIinilllum of ten projects per yedr ov"r the next three or place, alld sanitation facilities contructed 30 20 four years. These projects include renovat ion of exist ing windllli lIs ilnd construct ion of lIew olles for PUIlipillY wellwdter; construct ion and A.I.D.-Financed Inputs FY 80 rehabilitation of rdin wdter catclllJlenL basins; pipill!) of ~Iater grdvitationally frolll stl'edllls; extenSIon of exbtiny piped systems Grdnt: where sufficient wuter is available dt the source; ilnd the COrl­ ~iruction of sililple sanitdtion fdcilities. Technical Assistance 20 Equipment and Materials 175 lIost Country and Other Donors: Ihe South Pdcific COllllli ss ion's Evaluation 5 prilliary role IS advi~ory dnd con$ultative, with technical exper- tise dvailable to iUlplelllent this activity. The U.S. was the first Total 200 country to respond to the SPC appeJI for increusiny outside support for this act ivity. Other donors such as JdP~II, Austral ia, and New Zealdnd may provide additional dssistance dS the project pl'ogresses. Beneficiaries: The dctivity will bellefit residents of 30 vil­ lages, eelch with an averdge populatiun of 525 people. The pro­ jects ar'e essentidlly self-help ;n noture dllli individual villages ---- -----• gr doll.,,) PRINCIPAL CONTRACTORS OR AGENCIES __ ~_ E.pelldjILlf~ __ U"liquid.,otI- - South Pac1f1 c (onlni s s i 011 -- - - Future Yn. Obl!gltiuns E!limilod Tol.1 COli ----.f(JQ-- - .-- ·---oou - ---'------------ UNITED STATr INTERNATIONAL DEVELOPMENT COO(-· AT/ON AGENCY AGENCY FOR INTERNATIONAL DEVELOPMENT WASHINGTON. D.C. 20523 September 24, 1980 ACTION MEMORANDUM FOR THE AA/ASIA FROM ASIA/PO, G. R. Van Raalt~ SUBJECT: Authorization of South Pacific Rural Water Project (498-0269) Problem: Your authorization is required for the subject project. Discussion: The South Pacific Commission (SPC) has requested AID financing for the expansion of its rural water assistance activities for countries in the South Pacific region. The South Pacific Regional Development Officer (SPRDO) and a Bureau Project Review Committee have recommended approval of this assistance. These reviews were in accordance wi~h Bureau procedures for Regional projects of this magnitude. Life-of­ project funding of $6JO,OOO over a three-year period fro~ the Section 104(c) (health) account is proposed. The project will enable the SPC to assist member countri2s by constructing or rehabilitating small water systems in rural areas. Sull scale, simple water supply systems are being provided in remote areas which member countries are not able to serve due to their limited financial resour~es and administrative capabilit~es. With AID's contribution, two additional member countries can be assisted with two systems each per year. Project reviews addressed the following issues: 1. Review of sub-project plans. The Project Review Committee recommended that sub-pr~ect plans be reviewed for engineering soundness before sub-projects are financed. The Project Authorization requires such review as a condition precedent to financing sub-projects. We have advised SPRDO that this review may be by a local firm approved by AID engineers or by USAIU/Manila or AID/W engineers. 2 2. Sub-projects in other than independent countries. The Committee considered that the SPC might seek to extend its as~istance to islands not now fully independent (e.g., the U.N. Trust TerY'itory or French Polynesia). AID would not find it appropriate to finance sub-projec~s for such islands because in the fonner, the Department of the Interior currently uses appropriated funds for development activities and future U.S. assistance is the subject of political negotiation; in the latter, the French government considers many of the islands as an integral part of its government for which U.s. development assistance may not be appropriate. None of the islands presently considered for sub-projects falls into this category. However, the project authorization prr.;erves a right to review any sub-projects which do fall into this area by requiring AID approval of any sub-project for other than an independent country as a condition precedent to financing such sub-projects. We have advised SPRDO that approval rights in this area are reserved to AID/W. 3. Maintenance of systems. The SPC ~roposal implicitly recognizes that many water systems become partly or totally useless due to inadequate maintenance; it provides for rehabilitation of some systems that have become inoperable, and it provides for training of government and community personnel in better maintenance. While these provisions may not be sufficient fully to meet all the maintenance requirements, the Committee cons1ders SPC's provisions as good as can be implemented in view of limitations on AID and SPC staff and othtf resources. The Committee did provide in instructions to the field that any funding 1n excess of direct sub-project construction costs be available to fund additional assistance to governments to improve maintenance capabilities. 4. Source/Origin: The SPC proposes to continue utilizing co~~odities and services available in the independent island countries; these commodities and services are principally of New Zealand and Australian source and origin. One U.S. motor vehicle is proposed in the project, but all other materiel (including one motorcycle) and most services proposed would be from New Zealand/Australia. The project authorization permits procurement from AID Geographic Code 935 source origin. Waivers: If you authorize this project, you will be approving waivers of project procurement from the United States to Geographic Code 935 as foll ows: 1. Commodity procurement. Except for one U.S.-source pick-up truck, virtually all of the estimated up to $480,000 of commodity procure­ ments for this pr~ect will be purchased locally and/or from Australia and New Zealand. The proposed project authorization permits procurement from AID Geographic Code 935 (Free World) to facilitate this planned procurement. This blanket waiver from Code 000 is authorized by HB 1, Sup. B 5B4d.(I)(a) for a cumulative value of $500,000 or less by the Assistant Administrator havina oroaram rp~nnn~inilitv_ 3 2. Project services and other costs. It is estimated that $100,000 of project finance will proviJ6 costs of services (training, engineering, and construction) other than ocean transportation services and other costs (travel and ~er diem) of SPC personnel, contractors and volunteers of other than u.s. and cooperating country nationality. Waiver of Code 000 and cooperating country eligibility of services is authorized by HEl, Sup. B 5C4a(2)(e) when procurement of locally available services would best: promote the objectives of the foreign assistance t'l"ogram and by HEl, Sup. B 5C4a(2)(f) when other circumstances are deter-mbed to be critical t.o the success of project objectives. As most of the services available in the islands to be benefited are of Australian and New Zealand nationality and their continued use under the SPC program is critical to the success of the project, waiver from Code 000 to Code 935 for project services is proposed.