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•World Bank
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     BANK NEWS RELEASE 83/36                                                     Contact:   Pushpa Schwartz
     December 27, 1982                                                                      (202) 477-5306


             WATER SUPPLY PROJECT IN MAURI1 US TO USE $12.2 MILLION WORLD BANK LOAN


              The demand for water in three areas of Mauritius will be satisfied
     with the assistance of a $12.2 million loan from the International Bank for
     Reconstruction and Development (IBRD). The project will also reduce the risk of
     disease attributable to lack of safe water; will strengthen the management of
     the Centr~l Water Authority (CWA); and improve the qu~lity of service to
     consumers.

             CWA's investment program emphasizes the rehabilitation of existing
     networks, reduction of water loss in the distribution systems, and continuation
     of works with the highest revenue producing potential by increasing the
     capacities of existing facilities. The CWA will implement the $18.0 million
     project, overseeing all construction with the help of consulting engineers
     provided. The Bank Group approved a Project Preparation Advance of $140,000 in
     January 1982 to finance supplementary hydrogeological studies and detailed
     design studies required for the present project.

              Under the project, pumping stations will be constructed in the
     Mare-aux-Vacoas system, located in central Western Mauritius. These works,
     including two distribution reservoirs with a capacity of 6,000 cubic meters each,
     will improve water supply services. The loan also provides for distribution and
     leak detection works in Mt. Blanc to the south, and in Triolet, to the north,
     and about 6,700 new metered household connections.

              The IBRD loan will complement loans from the Kuwait and Abu Dhabi Funds
     to improve the surface water pumping plant in the Mare-aux-Vacoas, as well as a
     Caisse Centrale de Cooperation Economi4ue (France) loan financing water works in
     Port-Louis, and a USAID loan financing water distribution works in housing
     estates.

              In 1978) a water tariff study and a w&ter rights legislation study were
     carried out under the World Health Organization/IBRD Cooperative Program. A
     1980 Urban Rehabilitation and Development Project is improving sewerage.
     drainage, and water supply for four main housing estates.

              The loan is for 17 years, including four years of grac~ at an interest
     rate linked to the cost of Bank borrowing. The loan also carries an annual



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     commitment charge of 0.75% on undisbursed balances and a front-end fee of 1.5% on
     the amount of the loan.


     NOTE:     Money figures are expressed in U@S. dollar equivalents~