INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W .. WASHINGTON 0. C. 20433 TELEPHON~: EXECIJTIVE 3-6360 Bank Press Release No. 73/21 Subject: $9.5 million loan for the extension April 26, 1973 and improvement of the water supply system in Libreville, Gabon The World Bank has approved a loan to Societe d'Energie et d'Eau du Gabon (SEEG) with the guarantee of the· Government for the equi-valent of' $9 •. 15 million to help finance a project for the extension and improvement of the water supply system of Libreville, the capital city. Urbanization in Gabon has been rapid. Between 1960 and 1970, the number of people living in settlements of 2,000 inhabitants and above rose from 74,000 to 160,000. The population is heavily concentrated in two towns: Libreville which has 90,000 inhabitants, and Port Gentil, with 45,000. The rural exodus to the coastal cities has outpaced the availability of urban services, especially water and sewerage. Libreville's population is poorly served with potable water and sanitation conditions are inadequate, especially in the lower-income areas. The only organized drainage and sewerage system is limited to the center of Libreville; for the rest of the city, drainage is by ditches and streams which flow into the sea. • Libreville's water supply originally came from local springs. With increasing de- mand, water had to be brought from the N1 toum area, 25 miles from Libreville. It is now expected that peak demand will start exceeding supply in late 1973. The proposed project is designed to meet Libreville's est,imated consu.mption until 1979 and to improve distribution. It makes possible the provision of an adequate supply of potable water to meet the rising needs of Libreville for household, industrial, and commercial consumption. It will make a direct contribution to improvement of living conditions in Gabon's most important urban center and, through tncreased productivity, to the national economy. An adequate supply of potable water will reduce the incidence of water-borne diseases and increase the effective supply of labor in a country where practically every able-bodied man can find employment. The project will be carr;i.ed out by SEID. Total cost is estimated at $19.9 million equivalent, with a foreign exchange component of $14.3 million. The Bank will finance $9.5 million of the total cost; Caisse Centrale de Cooperation Economique (CCCE), $4.3 million; the Government, $5.2 million; and the M.micipality and SEEG, $900,000. The CCCE"loan will be for 17 years with four years' grace and 5% annual interest. The Goverrunent contribution will be a grant to the Municlpality. The Bank loan will &.ve a term of 25 years, including four years of grace, w:t,th an interest of 7~ per annum. Central National Barne in Chicago is participating in the Bank loan for a total • of $100,000. - 0 - April 26, 1973 • TICIIRICAL DATA PIOJICl: Water aupply CX>UHTRt: lapablic of Gabon Tar.AL CX>ST: $19 .• 9 ailliOD BANlC PIN.AIICIBG: $9.5 aillion, 25 years, 4 years of grace, intereat 71a per anllll. OTHER fiR.AIICilfGi The Govemaant, $5.2 llillion; C&iaae fAntrale de Cooperation Econoaique, $4.3 aillion; the Municipality and Societe d'Bneraie et d'Eau du Gabon (SIEG), $900,000. IMPLIMBHTIHG OllGAHIZilitlf: So~ete d 'Ener&:1e et d 'Eau du Gabon, I. P. 2187, Libreville, Gabon. PBOJlcr DESCIIPTIOH: A river diveraion ache•, conaiating of a veii:, a puaping • ·atation, a pipeline, a power tz-aullisaion line, ad a trmaforar atation; expansion of a r • water ad clear water puaping 'station and • water treat- . .nt plant at N'toua and a tranaforaer atation; 25-lllle treated water pipe- line parallelina the exiatina pipeline bet~een H'toua and Librnille; a atoraae reaervoir to auppleaent the two existing auller tau at the head of the diatribution ayatea in Libreville, and about 111111•• of diatribution aaina; aiacellaneoua llinor diatribution ·worka to iaprove water aupply to low-incoae quarten of the city; and coa,aul~an.t '• aervicu for detailed engineerina, conaultant'• and SIEG'• aervices for auperviaion of construction. PROUUIEMENT: Equipaent fo; two paping atationa, a pipeline, •a.ina and atorage reaervoir. The aervicea to be provided are civ.11 worka and auperv.laion of the canatruction. All gooda and services will be procured by international co-,~titive bidding. CX>NSULTANTS, TECHNICAL ASSISTANCE: Societe d'Etudea. pour l 'Urbam.a•, l'Equipement et le.:~>:analisations (SEUIECA) (France) : detailed engineerina and supervision of the civil work•. ESTIMATED C