Document of The World Bank FOR OFFICIAL USE ONLY Report No. 11480 PROJECT COMPLETION REPORT UGANDA WATER SUPPLY ENGINEERING PROJECT (CREDIT 1110-UG) DECEMBER 21, 1992 Infrastructure Operations Division Eastern Africa Department Africa Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Ugandan Shilling (USh) US$ to USh Appraisal year (1980): 7.5 Year averages: 1982 150.0 1984 500.0 1985 1,300.0 1986 1,400.0 1987 (May) 1,400.0 Currency Unit = SDR US$ to SDR Appraisal year: 1.25 Year: 1984 1.04 1985 1.01 1986 1.10 1987 1.26 Glossary of Abbreviations AfDB African Development Bank EEC European Economic Community IDA International Development Association IDB Islamic Development Bank MLMWD Ministry of Lands, Minerals and Water Development MLMWR Ministry of Lands, Minerals and Water Resources (Pre-1986) MWMD Ministry of Water and Mineral Development (Post-1986) NWSC National Water and Sewerage Corporation PCU Project Coordinating Unit UNDP United Nations Development Programme UNICEF United Nations International Childrens Emergency Fund WDD Water Development Department WITA Water Industry Training Association Fiscal Year July 1 - June 30 FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A Office of Director-General Operations Evaluation December 21, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Uganda Water Supply Engineering Proiect (Credit 1110-UG) Attached is a copy of the report entitled "Project Completion Report on Uganda - Water Supply Engineering Project (Credit 1110-UG)" prepared by the Africa Regional Office with part II contributed by the Borrower. The project was carried out in a period of civil war and severe economic decline which particularly hampered the use of foreign technical assistance as well as local recruitment. The objectives were to prepare feasibility and design studies for the rehabilitation of severely damaged water supply facilities in a number of urban centers and for improved organization and management of the sector agencies and their cost recovery practices. They were achieved: the follow up investment phase was implemented and the sector agency's financial and institutional performance was enhanced. The project outcome is rated as satisfactory and the sustainability as likely. While delayed, both Part I (prepared by the Bank) and Part II of the completion report are of good quality. The project will be audited, as part of a cluster, on completion of the ongoing investment project. Attachment This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be discLosed without WorLd Bank authorization. FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT UGANDA WATER SUPPLY ENGINEERING PROJECT (CREDIT 111I-UG) TABLE OF CONTENTS Page No. Preface .............................................. i Evaluation Summary ................... ................... H Part 1: PROJECT REVIEW FROM BANK'S PERSPECTIVE 1....... A. Project Identity ....................................... 1 B. Background ......................................... 1 C. Project Objectives and Description ........................... 2 D. Project Design and Organization ............................ 2 E. Project Implementation .................................. 3 F. Project Results ....................................... 4 G. Project Sustainability ................................... 5 H. Bank Group Performance ................................. 5 1. Borrower Performance .................................. 6 J. Project Relationship .................................... 6 K. Consulting Services .................................... 6 PART 11. PROJECT REVIEW FROM BOROWER'S PERSPECTIVE .... 8 Annexes to Part 11 ..................................... 22 PART 111. STATISTICAL INFORMATION .................... 38 Table 1: Related Bank Loan or Credit ........................... 38 Table 2: Project Timetable .................................. 39 Table 3: Schedule of Accumulated Disbursements .................... 40 Table 4: Project Cost ...................................... 41 Table 5: Financing Plan .................................... 42 Table 6: Mission Data by Stages of Project ........................ 43 Table 7: Status of Loan Covenants ............................. 44 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization UGANI)A WATER SUPPLY ENGINEERING PROJECT (CREDIT 11 10-UG) PROJECT COMPLE-ON REPORT PREFACE This is the Project Completion Report (PCR) for the Water Supply Engineering Project in Uganda for which Credit 1110-UG in the amount of SDR 7.1 million was approved on March 10, 1981. The Credit was closed on December 31, 1987, by which time it was fully disbursed. The project was followed by a Water Supply and Sanitation Rehabilitation Project (Cr. 1510-UG) which closed on March 31, 1990, and for which a PCR was distributed on June 26, 1991. This PCR was prepared by the Infrastructure Division of the Eastern Africa Department (Preface, Evaluation Summary, Part I, and Part o) and the Borrower (Part II). The PCR is based, inter alia, on information contained in the Staff Appraisal Report, Credit Agreement, supervision reports, correspondence between the Bank and the Borrower, and internal Bank memoranda. - ii - UGANDA WATER SUPPLY ENGINEERING PROJECT (CREDIT 11 10-UG) PROJECT COMPLEION REPORT EVALUATION SUMMARY Objectives 1. The objective of the project was to assist the Government in preparing follow-up projects for the expansion of water and sanitation services in the major urban centes, in strengthening the Water Development Department (WDD) and the National Water and Sewerage Corporation (NWSC), in laying the ground for improvement in training of technical staff in the sector, and in educating the general public in the hygienic use of water and sanitation facilities. It also provided, after an amendment to the Credit Agreement, for some urgent repairs to the water systems in two urban areas. Implementation Experience 2. Given the general security situation in Uganda throughout project implementation, the project was relatively well implemented. There were delays in awarding the contract for the tariff study due mainly to the staffing problems in the Project Coordinating Unit (PCU), delays in giving the necessary feedback to the contractor (particularly for the manpower and training requirement study), delays in completing the civil works component of the project due to lack of local currency and building materials, and delays in procuring the necessary technical assistance due to the security situation. The project was not completed by the scheduled date and the closing date was postponed for more than two years. While the project was being implemented, the country suffered from the effects of civil war and economic decline, which at times seriously hampered project implementation. The Borrower had difficulty meeting the covenant on the annual auditing of accounts and financial statements because of lack of accounting staff and loss of information needed for the audits. As a result this requirement was waived by the Bank for the years before 1983. The Bank group throughout the period of project implementation showed considerable understanding of the difficulties the Government was facing. The credit closed in December 31, 1987, by which time it was fully disbursed. Results 3. Overall, and considering the unstable conditions in the country at that time, the project was successful in meeting the objectives of carrying out pre-investment and preparatory activities needed for a future investment program. The feasibility studies and engineering designs were valuable inputs into the Water Supply and Sanitation Rehabilitation - iii - Project (Cr. 1510-UG), which was appraised in October 1983 and closed on March 31, 1990, (Project Completion Report of June 26, 1991) and the Second Water Supply Project (Cr. 2124-UG), which was appraised in November 1989 and became effective in January 1991. The tariff study under Cr. 11 10-UG provided the basis for decisions on the appropriate level of tariffs. The manpower and training study formed the basis for the planning of training programs in the water supply and sanitation sector for the decade. The project was less successful in meeting its objectives of institutional strengthening, primarily because the two agencies concerned lacked the resources to adequately compensate its staff, and the prevailing security situation made recruitmnent of foreign experts difficult. A program for improved coverage with water supply and sanitation was formulated jointly with other donors, in which the Bank played a major role. Sustainability 4. In so far as the project provided the framework for further investment in the sector, its sustainability could be said to have depended on the outcome of the investments that followed. In this regard, the PCR of the follow-up credit (Cr. 1510-UG) indicated that NWSC had become a viable institution with comparatively good management. It was able to cover its recurrent costs from revenues collected and accumulated some reserves to finance capital expansion, that is, part of the local currency contribution to the Second Water Supply Project. Concerning WDD, the PCR for Cr. 1510-UG indicated that the objective of Cr. 11 O-UG to strengthen WDD for the creation of the favorable conditions in the four towns for the takeover by NWSC at the end of the project was achieved. Unreliable power supply was the main reason why the water systems did not operate efficiently. This problem was being addressed through a Bank project in the power sector. Lessoni.Learned: One major lesson learned from the implementation of the project is that in an especially adverse environment, as experienced under this project, where the country was severely affected by civil war and economic decline, project objectives, especially regarding institutional development, should be kept to a minimum. That the project succeeded nevertheless in meeting most of its objectives is to the credit of all those involved in its execution. PROJECT COMPLETION REPORT UGANDA WATER SUPPLY ENGINEERING PROJECT (CREDIT 1110-UG) PART I: PROJECT REVIEW FROM BANK'S PERSPECTIVE A. Project Identity Project Name: Water Supply Engineering Project Credit Number: 1 100-UG RVP Unit: Africa Region Country: Uganda Sector: Infrastructure Subsector: Water Supply and Sanitation B. Background 1. The possibility of lending for the expansion of water supply and sewerage systems in Kampala and Jinja was initially examined in 1970. In 1971 the Government of Uganda, with the support of UNDPIWHO, prepared Master Plans for water supply and sewerage for Greater Kampala and Jinja. Just as the project was ready for appraisal, the Bank Group's operations in Uganda came to a halt because of civil unrest. The water supply and sanitation installations that had existed before 1971 had deteriorated or been destroyed in the war to the point where hardly any service was provided. During that period, there was no capacity expansion to keep pace with the increase in urban population, accelerated by war and economic decline. As a result, 60% of the population in towns with water schemes had no access to piped water. With the change of Government in 1979, high priority was given to improvements in the sector, and in July of that year the Bank Group was invited to reactivate the project and expand it by including other priority urban areas. In reviewing the status of the earlier work, it was concluded, that the updating of available information and additional work would be necessary to cover the addition of new urban areas to the project. Further work was required for the following: (i) updating feasibility studies; (ii) new studies for towns added to the project; (iii) detailed engineering design for all seven major towns (Kampala, Jinja, Entebbe, Masaka, Mbale, Mbarara, and Tororo); (iv) analysis of manpower requirements for the operation of the new facilities; and (v) preparation of a training program. It was decided that these concerns could be better dealt with through an Engineering Credit. 2. Sector Development Objectives: With the change of Government in 1979, and given the overwhelming evidence of the deterioration of the existing water supply and sewerage system and the population pressure in the urban areas of Uganda, the Government's objectives were to rehabilitate and expand clean water supply and waste water treatment and to build strong service delivery institutions by strengthening the National Water and Sewerage Corporation (NWSC), so that it could eventually take over the management and provision of water and sewerage services to all urban areas. In order to achieve these objectives, the Government gave high priority to obtaining external assistance for investments in the sector. The Water Supply Engineering Project fitted well into the overall objectives of the Government. C. Project Objectives and Description 3. Project Objectives: The objectives of the project were to assist the Government in preparing projects for the rehabilitation and expansion of water and sanitation services in major urban centers, in strengthening the Water Development Department (WDD) and NWSC, in laying the ground for improvements in training of technical staff in the sector, and in educating the general public in the hygienic use of water and sanitation facilities. 4. Project Description: The project components consisted of: (a) feasibility and detailed engineering studies, including preparation of tender documents, for rehabilitation and expansion of water supply facilities, upgrading of sewerage systems and improvement and expansion of sanitation facilities in Kampala, Jinja, Entebbe, Masaka, Mbale, Mbarara and Tororo; (b) provision of about six staff houses and offices, twelve vehicles and 15,000 water meters, meter testing and repair facilities and materials for NWSC's immediate needs; (c) a water supply and sewerage tariff study; (d) a study of manpower and training requirements in the sector, a feasibility study for a training facility, and preparation of a training program for technical staff; and (e) provision for the following technical assistance: (i) one engineer to assist MLMWD in coordinating the project activities (Project Coordination Unit - PCU), (ii) two engineers to assist NWSC in supervising engineering consultant work, and (iii) one specialist to assist the Government in organizing education of the general public in hygiene related to water use and sanitation. The project was amended on August 10, 1984, to include the financing of urgent repairs to the Tororo and Mbale water systems. D. Proiect Design and Organization 5. The Water Supply Engineering Project was designed primarily to carry out needed preparatory activities for any major investments in the Uganda water supply sector. The overall concept of funding a project to carry out pre-investment and detailed engineering studies and preparation activities was a sound one. The project concept and design were appropriate and timely, given the situation in Uganda at that time. Attempts were made to ensure that the proposed studies and designs would cover all the technical, financial, economic, ecological, and sociological aspects needed to undertake an investment project for water supply and sanitation in the selected towns. The studies also assessed the impact on the poverty group and established a base for improving the planning and operating capacity in WDD and NWSC. The technical assistance provided strengthened the weak engineering capacity of NWSC, and the provision of water meters and testing and repair facilities contributed to the improvement of water conservation and collection. The decision to provide staff housing and vehicles was a sound one, given the acute shortage of housing and transport in Uganda at the time. The project successfully laid the ground work for the follow-up projects: the Water Supply and Sanitation Rehabilitation Project (Cr. 1510-UG) and the Second Water Supply Project (Cr. 2124-UG) 6. The then Ministry of Lands, Mineral and Water Resources (MLMWR) was responsible through WDD for the national water resources, including the development, operation and maintenance of all water supply and sewerage systems. In 1972 NWSC, an autonomous parastatal organization, was set up to develop and operate water supply and sewerage systems in towns where arel-niate revenues from sales of services could be - 3 - generated. At time of appraisal, NWSC operated the systems in Kampala, Jinja and Entebbe. The expectation was that once the systems in Masaka, Mbarara, Mbale, and Tororo were operational, NWSC would take over these towns also. PCU was set up in MLMWR to be responsible for the implementation of the project. In retrospect, given the weak technical and accounting capacity of WDD and NWSC, the project should have included the provision of expatriate accountants and the training of local candidates. E. Project Implementation 7. Loan Effectiveness and Project Start-Up: The Credit was approved ir March 17, 1981, signed May 7,1981, and became effective on October 5, 1981. The delays were due to a late response from Government on the designation of a signatory and the provision of the legal opinion. In the interim, the Bank fielded two supervision missions and the borrower awarded major contracts, that is, for engineering feasibility studies and designs, staff houses and offices, and the manpower and training needs study. 8. Implementation Schedule: The project was implemented during a very difficult period in Uganda, where the country suffered from the effects of severe economic decline and civil war. It was originally scheduled to be completed by December 31, 1985, but, as indicated in para. 4, the Credit Agreement was amended on August 10, 1984, to include the rehabilitation of the water systems of Tororo and Mbale. Given the interruption of activities due to the security situation, and the need to fully complete the project activities, the closing date was initially extended by two years. Contract agreements for the preparation of feasibility and detailed engineering studies for the rehabilitation and expansion of water and sewerage facilities in the seven towns were signed with two firms on June 9, 1981. The feasibility studies for Masaka, Mbale, Mbarara and Tororo were completed and the final report submitted in May 1982. For Jinja, Entebbe and Kampala, the final reports were ready in September 1982. It was decided that the preliminary design work for the seven towns should be carried out in two phases. The preliminary design for the first phase to be completed by October 1983, focused on rehabilitation and other urgent needs, and the final design was completed in March 1984. These designs formed the basis of the follow-up project. The preliminary design for the second phase was completed by mid-1984. The preliminary design for the second phase was completed in October 1985 and was used for the second follow-up project. 9. Staff housing. vehicles and water meters: There was a delay of two years in the completion of the staff housing and offices component due to lack of building materials and the Government's inability to provide the counterpart funds when needed. 10. Manpower and Training Reguirement Study: An international firm of accountants was appointed in November 1981 to carry out the study. After a long delay in obtaining comments from the Government, the report was finalized in early 1984. The Water Industry Training Association (WITA) prepared a supplementary report on training components, which was approved by the Bank and Government in September 1984. This study provided a detailed breakdown of current and future manpower requirements by specific job categories as well as a framework for recruitment and training of the required manpower for a decade. WITA was retained as consultant for the implementation of the training program. Tariff Study: Due to shortage of staff in PCU, work on this study did not begin until mid-1983, although tariff increases were approved in the interim. Once the contract was - 4 - awarded, the study proceeded smoothly and an acceptable result was approved by the Bank and the Government in early 1985. 11. Technical Assistance: The Credit provided funding for one Project Coordinating engineer, two supervisory engineers and one specialist in organization of public health education. Following the death of the Project Coordinator and the appointment of a successor financed by the Government a third engineer was added to the list of staff, but these positions were not filled until two years into project implementation because of recruitment difficulties. 12. Education Program in Hygiene: Although, a consultant was procured on time for this activity, the ensuing report did not provide a practical basis for preparation of an educational program as envisaged by the project. A second consultant, hired in November 1983, prepared an acceptable report on the development of a health education component, the recommendations of which were implemented in Cr. 1510-UG. 13. Procurement: Procurement proceeded satisfactorily, except in one case, when the supplier failed to supply the furniture and appliances contracted. The contract was subsequently canceled. Furniture was procured by local shopping and the remaining ite'ns procured by amending the contract of the three expatriates to allow the purchase of the required appliances. 14. Project Costs: The estimated cost of the Water Supply Engineering Project at appraisal was US$18 million and the final cost was about US$13.8 million (Table 4). Two reasons account for the difference. One is the high rate of devaluation of the Ugandan Shilling during the period of implementation: while at the time of appraisal in 1980 the US Dollar was equivalent to USh7.5, by the closing date the dollar had appreciated to USh600, which outraced the rise in local costs. The other reason was the appreciation of the Dollar vis a vis the SDR: while appraisal the Dollar was equivalent to SDRO.8, by 1985 the rate was at SDR1. As a result the value of the credit, which was denominated in SDR, was reduced in US Dollar terms from $9 million to $7.5 million. 15. Disbursement: The Credit of SDR 7.1 million was fully disbursed. The disbursements were slower than anticipated due to delays in project implementation and delays in the response of the Government on items requiring its decision. F. Project Results 16. Prject Objectives: Overall, the project was successful in meeting the objective of carrying out pre-investment studies and preparatory activities. The feasibility studies and the engineering designs were valuable inputs into the Water Supply and Rehabilitation Project (Cr. 1510-UG) and the Second Water Supply Project (Cr. 2124-UG). The Tariff Study provided the Government with a framework for decisions on the appropriate level of tariffs. The manpower and training study also formed the basis for the planning of training programs for the water supply and sewerage sector. The project was less successful in meeting the objectives of institutional strengthening primarily due to inability of the Government to retain the appointed counterpart staff to the experts and due to the security conditions. A joint donor program for improved coverage with water supply and sanitation was formulated, in which the Bank played a major role. -5- 17. Physical Objectives: The physical targets of the project were substantially achieved as planned. The staff houses and offices were completed and the repairs to the Tororo and Mbale Water systems carried out. The equipment included in the project was procured. G. Project Sustainability 18. In so far as the project provided the framework for further investment in the sector, its sustainability could be said to have depended on the outcomes of the investments that followed. The PCR for the Water Supply and Rehabilitation Project (Cr. 1510-UG), dated June 26, 1991, indicated that NWSC had become a viable institution with comparatively good management, with the support of a few expatriates. It was able to meet its recurrent costs from revenues collected and accumulated some reserves to finance capital expansion, that is, part of the local currency contribution to the Second Water Supply Project. Greater efficiency had become the operational aim of NWSC, with high priority given to consumer registration, prompt billing and disconnection for non-payment, leak detection and repair, and meter installation. Operational and maintenance problems apparently prevented most of the water systems from operating near peak capacity at the close of Cr. 11 10-UG. The main reason was unreliable power supply, but this problem was being resolved through a Bank credit to overhaul the main power generating plant. With regard to WDD, it received assistance to create better conditions in the four towns that were to be handed over to NWSC at the end of the project. The PCR for Cr. 1510-UG indicated however that this did not result in a significant improvement of WDD's ability to operate the water systems in the remaining towns and rural areas, leaving it in the same weak position in which it was at the start of the project. While other large donor-assisted projects (mainly with UNICEF and DANIDA) were started in the meantime to improve the rural water supply situation in most of the country, the water supply and sanitation problems in the remaining towns (other than the seven under NWSC), are being addressed only now in the preparation of a Small Towns Water and Sanitation Project with assistance from IDA and the AfDB. H. Bank Group Performance 19. Throughout the project implementation period, the Bank's staff provided the Government and NWSC with valuable advice on all aspects of water supply and sanitation. The Bank staff worked closely with the Government and participated with EEC in the recruitment and financing of an expatriate chief accountant and with UNDP in the training of accounts clerks. When NWSC was unable to provide the information needed for the preparation of annual financial statements and audit reports apparently for good reason (see para. 21), the Bank agreed to waive for the years prior to 1983 the covenant on accounting and auditing, contained in Section 4.02 of the Project Agreement, so that NWSC could start afresh with a new set of accounts and to produce a financial statement for 1983. The Bank showed considerable flexibility in agreeing to the amendment of the agreement to accommodate the urgent repairs to the systems at Tororo and Mbale. In retrospect, the Bank should have recognized earlier the difficulty the Government had, given the prevailing insecurity situation in the country, in recruiting technical assistance personnel. 20. Lessons Learned: The principal lessons learned, with implications to other projects, as a result of the experience during project implementation, are: - 6 - (a) Technical Assistance: Strengthening accounting and financial management should receive more attention when considering institutional support for parastatals. It was only at mid-term of the project that efforts were made to obtain the necessary assistance needed to strengthen financial management -- a key element lacking in the assisted institutions. (b) Technical Competency: Bank staff support was one of the key factor in the satisfactory completion of the project. Prior to the procurement of the experts, the Government relied heavily on technical advice of the Bank staff in all areas of project implementation. This pattern prevailed throughout project implementation. A major lesson learned is the need to ensure that projects of this type include funding to improve the technical skills in the implementing agencies. I. Borrower Performance 21. On the whole, the Borrower's performance was satisfactory given the prevailing circumstances. Although its accounting procedures were generally adequate to provide information for planning and management, it was seriously delinquent in submitting audit reports, mainly because of difficulties in filling the post of chief accountant with a qualified person and the general shortage of accounting staff, as well as loss of vital information due to the prevailing security situation. For this reason, the Bank waived in 1983 the requirement of the submission of audit reports and financial statements of NWSC for the preceding years. A statement of affairs as of June 1983 was to be prepared but this too was delayed past November 1984 because of the valuation of NWSC's inventories and fixed assets was not done on time. Throughout project implementation, NWSC was constrained by lack of technical and accounting staff. The offer by the EEC in 1984 of a technical advisor for 2 years and a maintenance/training engineer improved the situation somewhat. The inability of both NWSC and WDD to attract and maintain competent staff was primarily due to the poor terms of employment as a result of insufficient resources due to the inadequate level of billing and low tariffs. Tariffs were increased by 33% in December 1981 and by 400% in May 1984, but collection of revenues was seriously in arrears, with the Government institutions the biggest culprits. At the urging of the Bank and because of the deteriorating cash flow situation, the Government subsequently required the Treasury to pay off the debt of the Government agencies to NWSC. J. Project Relationship 22. The Bank relationship with the Government as well as with NWSC was good. Bank staff were prompt in providing the Government with the needed advice and dealt sympathetically with Government's requests regarding additions to the project. K. Consultine Services 23. Consultants were appointed to prepare feasibility studies and design for the expansion of water and sanitation in Kampala, Jinja, and Entebbe. The agreement was signed on June 1, 1981, the draft feasibility studies were available in April 1982, and the final report was completed in June 1982. The consultant was also responsible for the detailed design. A different firm of engineering consultants was appointed on June 9, 1981, to prepare feasibility studies and designs for the expansion of water supply and sanitation in Masaka, Mbarara, Mbale, and Tororo. The draft feasibility studies were completed in February 1982. The consultant was responsible for the detailed design. Both consultants were competent, their professional performance was good, and their supervisory staff competent. They were retained for the next phase of the project. 24. An international accounting firm was appointed in November 1981 to prepare a manpower and training study. Work was expected to be completed at end of March 1982, and discussions with Government on the final report were expected to take place in May 1982. Due to the Government's delay in commenting on an earlier draft, the final report was only available in March 1983. The report provided a conceptual framework for training, while the actual training program was developed by a local training consultant in September 1984. As indicated in para. 10, these reports provided the basis for future recruitment and training of the required manpower in the sector for a decade. 25. A social anthropologist was appointed in March 1982 to prepare a report to assist the Government in formulating an education program for public hygiene related to water use and sanitation, but the draft report issued in June 1982 did not provide a practical guide to the implementation of the physical components of such a project. The health education program was subsequently prepared by another consultant. A report entitled Development of Health Education Component was submitted in November 1983 and was well received by both the Ministry of Health and the Bank. A consulting firm was appointed in September 1984 to prepare a water tariff study. The draft was submitted in Januarv 1985. Considering the paucity of the available data, the quality of the study was satisfactory. The final revised report was accepted in August 1985. The recommendations formed the basis for the Government's subsequent tariff increases. - 8 - PROJECT COMPLETION REPORT UGANDA WATER SUPPLY ENGINEERING PROJECT (CREDIT 111 0-UG) Part II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE 1/ CONTENTS 1.00 Introduction 2.00 Project Preparation and Analysis 3.00 Implementation 4.00 Operating Performance 5.00 Financial Performance 6.00 Institutional Performance 7.00 Project Justification 8.00 Conclusions 9.00 Comments by the Ministry of Water and Mineral Development ANNEXES TO PART II 1.1 Summary of Disbursements 1.2 Forecast and Actual Project Costs 1.3 Forecast and Actual Disbursement Schedule 2.1 NWSC Income Statement Forecasts 2.2 NWSC Sources of Application of Funds 2.3 NWSC Balance Sheet 3.1 WDD Income Statement Forecasts 3.2 WDD Sources of Application of Funds 3.3 WDD Balance Sheet 3.4 WDD Budget Performance 4.1 Tariff Charges 1/ Prepared by the Project Coordinating Unit, P.O. Box 7089, Kampala, in June 1989, for the Ministry of Water and Mineral Development, Republic of Uganda. - 9 - REPUBLIC OF UGANDA WATER SUPPLY ENGINEERING PROJECT - CREDIT 11 10-UG PROJECT COMPLETION REPORT BASIC DATA SHEET Borrower: Republic of Uganda Beneficiaries: NWSC and WDD of the Ministry of Water and Mineral Development (formerly Ministry of Lands, Mineral and Water Resources). Credit Amount: SDR 7.1 million (Foreign Component) from World Bank (IDA) on standard terms. Reports: "Report and Recommendation of The President of the International Development Association to The Executive Directors of Uganda for a Water Supply Engineering Project"; and World Bank Document Report No. P-2952-UG dated February 11, 1981. No separate appraisal report. Credit Agreement: Signed on May 5, 1981. Credit effective from circa July 1981. First Disbursement: October 1981. Last Disbursement: September 1986. Original Closing date: January 31, 1985. Extended Closing date: January 31, 1987 [Ed: Actually December 31, 1987]. Re-lending of Proceeds of Credit: SDR 5.29 million as equity Contribution to NWSC SDR 1.81 million as an incremental contribution to WDD's budgetary allocation Financing Plan: IDA Credit SDR 7.1 million (Foreign) NWSC 5.0 million (Local) Government 2.1 million (Local) Total 14.2 Rate of Return: Not applicable. - 10- REPUBLIC OF UGANDA WATER SUPPLY ENGINEERING PROJECT - CREDIT I 10-UG PROJECT COMPLETION REPORT 1.00 Introduction 1.01 Sector Description Uganda is a land-locked country lying astride the equator and bounded by Kenya, Tanzania, Rwanda, Zaire, and Sudan. It has a total area of about 240,000 sq. km. of which 48,000 sq. km. are lakes or swamps. Most of Uganda lies in a plateau varying in altitude between 900 - 1300 meters above sea level. Access to the Indian Ocean is via the ports of Mombasa (Kenya) and Dar-es-Salaam (Tanzania). There is an abundance of surface water sources, but limited ground water due to the nature of the geological formations. Rainfall varies considerably within the country with an annual average of 500 mm in the arid north-east to 1400 mm in the South. The Ugandan population is predominantly rural (about 90%). The 1980 Census showed a total population of 12.6 million inhabitants. The projected future total population is estimated as: Year Population 1990 16.6 million 1995 19.1 million 2000 22.0 million 2005 25.5 million 2010 29.6 million The Ministry of Water and Mineral Development (MWMD) is responsible for Water Resources Management/Development, Operation and Management of Water Supply/Sewerage Systems in Uganda through its two institutions: a. The Water Development Department (WDD); and b. The National Water and Sewerage Corporation (NWSC). The NWSC is established by a Government Decree in 1972 to operate as a financially self-sustaining parastatal organization responsible for water supply and sewerage systems in any area specified by the MWMD. Presently, the NWSC is responsible for water supply and sewerage in the towns of Kampala, Entebbe, Jinja, Mbarara, Masaka, Mbale, and Tororo. All other Water Supply/Sewerage systems in Uganda are under the responsibility of the WDD. The Ministry of Health (MOH) is responsible for water quality monitoring of public utilities for both water supply and sewage disposal installation. - 11 - The Ministry of Local Government (MOLG) is responsible for solid waste disposal, provision of public sanitation facilities (public toilets, bathing/washing places) and community development/participation programs. The Ministry of the Environment (MOE) is responsible for protection of the environment in general, and for water sources in particular, from being polluted by toxic/hazardous materials, excessive siltation of tanks/reservoirs/water courses due to erosion on account of bad land management practices. 1.02 Role of the Project After two decades of political unrest, civil wars and having inherited a shattered economy, with most of the basic infrastructure almost in ruins, the project aimed to study the needs and provide emergency assistance in the drinking water/sanitation sectors in 7 major urban centers. This action was considered to provide the base for future investment by the World Bank and other Donors in follow-up projects. With the restoration of the Water Supply to their original design capacities and with the undertaking of studies/provision of technical assistance to further expand the requirements to meet existing and projected future demands, it was hoped that these goals would encourage economic activity to once again be revived in the Towns of Kampala, Jinja, Entebbe, Mbarara, Masaka, Mbale and Tororo. It was further deemed that the project would assist, as a start, to achieve the aims of the International Water Supply and Sanitation Decade Goal of providing clean drinking water and good sanitation facilities by the year 1990 - now possibly by the year 2000 to all of the Ugandan population. 1.03 National Development Plan In April 1982, the Government launched a Recovery Program (RP) for the period covering the financial years 1982/83 to 1983/84 to pull the country out of grave economic decline brought about by the previous regimes. The RP was revised and updated for the same period and called the Revised Recovery Program (RRP). In December 1984, the RRP was again revised and extended for covering the periods 1984/85 to 1986/87. The prime objective of these programs was to revive the productive sectors by rehabilitation and effective use of existing resources. For the period 1982/83 to 1984/85, the budgetary allocation was US$ 736.5 million of which US$ 35.9 million (4.8%) was budgeted for the Water and Sewerage Sector. In 1984, this allocation to the Water/Sewerage sector was reviewed and revised to US$ 106.9 million (14.5% of total budget). Under the present National Resistance Movement (NRM) Government all development activities fall under the 1987/88 - 1990/91 Rehabilitation and Development Plan (RDP). Of the US$ 1288 million required for the RDP US$ 131.38 million (10.2%) has been allocated to the Water/Sewerage Sector. 1.04 Institutional Changes Since the Liberation War of 1979, there have been six changes of government. Notable of these were a military coup in July 1985 and the National Resistance Movement (NRM) take- - 12 - over in January 1986. In 1986, the NRM government split the Ministry of Lands, Minerals and Water Resources (MLMWR) into 2 Ministries namely: a. Ministry of Water and Mineral Development; and b. Ministry of Lands and Surveys. All the responsibilities and obligations of Cr. 11 10-UG under the old Ministry passed on to the new Ministry of Water and Mineral Development (MWMD). 1.05 Executine Agency The executing agency responsible is the MWMD (formerly MLMWR) through a Project Coordination Unit (PCU) specifically established with adequately experienced staff. The PCU headed by a Project Coordinator directly reported to the Permanent Secretary MWMD. The National Water and Sewerage Corporation and the Water Development Department assisted the PCU in seconding staff. The PCU was initially located within the NWSC but later moved to Luzira in Kampala. When the WDD moved from Entebbe to establish their new headquarters at Luzira, the PCU moved to temporary Offices at Bugolobi Sewage Treatment Works, Kampala. 1.06 Extra-ordinary Occurrences After the Liberation War of 1979 there have been six changes of Government. The periods in between the changes were mostly marked by insecurity. Working conditions were beset with frequent harassment at road-blocks and the only social life was within the confines of one's own premises. It was deemed a risk to venture out after dusk. Vehicles purchased under the Credit were hijacked at gun point, some were later found looted and others were never recovered. The first Project Coordinator of the PCU was shot dead by unknown gunmen in 1983. Many private residences were looted/robbed by armed thieves and residents lived with the constant threat of danger to their personal safety. The wife of an employee of Consultants on the Project was shot and seriously wounded in an attempted hijack of her vehicle in broad daylight. 1.07 Sources of Finance The Water Supply Engineering Project covered broadly the studies/designs to encompass technical, financial, economic, ecological and sociological aspects needed to undertake an investment project for water supply and sanitation in the 7 towns of Kampala, Jinja, Entebbe, Mbarara, Masaka, Mbale and Tororo. In addition, institutional strengthening of both the NWSC and WDD by provision of Technical Assistance, provision of equipment to improve collection of water charges (thus improving revenue), assistance for emergency needs and assessment of the impact of the project on the poverty group were also included. The total cost of the project was SDR 14.2 million (US$ 18.00 million in early 1981). SDR 7.1 million of the total was in foreign funds which was provided under the Credit 11 10-UG. The other SDR 7.1 million equivalent in local funds was provided by the Government of the Republic of Uganda. - 13 - 1.08 Sources of Information (a) "Report and Recommendation of the President of the Executive Directors on a Proposed Credit to the Republic of Uganda fora Water Supply Engineering Project" - World Bank Document - Report No. P-2952-UG, dated February 11, 1981; (b) "Recover Program, 1982 - 84" - The Republic of Uganda, Kampala 1982; (c) "The Revised Recovery Programs" - 1983 - 1986 - The Republic of Uganda, Kampala - 1983, 1984; (d) "Rehabilitation and Development Plan, 1987/88 - 1990/91" - The Republic of Uganda, Ministry of Planning and Economic Development, Kampala; (e) "Water Supply and Sanitation Sector Development Plan 1985 - 1990" - The Republic of Uganda, Ministry of Lands, Mineral and Water Resources, Kampala, May 1985; and (f) "Staff Appraisal Report - Uganda Water Supply and Sanitation Rehabilitation Project" - World Bank Document - Report No. 4968-UG dated June 25, 1984. 2.00 Project Preparation and Analysis 2.01 Qrigin The World Bank Group had initially examined in 1970 the possibility of lending for expansion of water supply and sewerage systems in Kampala and Jinja. Studies had then been prepared by the Government with UNDP/WHO assistance with plans for appraisal in 1971. However, due to internal political events that overtook Uganda soon thereafter, the World Bank Group operations ground to a halt. Almost all public institutions/utilities started to decline in standards of performance and services during this period of political turmoil/uncertainty. The World Bank Group was invited in July 1979, soon after the Liberation War, to help reactivate the earlier project and review/expand it by inclusion of other major Urban Centers. 2.02 Preparation and Justification After over a decade of internal conflict, neglect, destruction/looting, poor maintenance, mismanagement coupled with a critical lack of building materials, spare parts, equipment, transport, accommodation, skilled/experienced manpower, foreign exchange and security, the Ugandan infrastructure was in tatters. Records of information regarding actual and potential capacities of public utilities/institutions were lost or destroyed. Every section of the Government's administrative machinery was in urgent need of revival/rehabilitation. The immediate urgent priority of the Government was the restoration of basic utilities like water supply and sanitation facilities. Appeals were made for external donors for emergency assistance, to which the EEC, the Governments of West Germany, Japan and the United Kingdom responded with a total amount of Aid equivalent to US$ 25 million for the Water and Sewerage Sector. The next priority was the rehabilitation and expansion of the Water Supply and Sanitation facilities in - 14 - all major Urban Centers to revive/stimulate industrial and economic growth. Thus the World Bank (IDA) Water Supply and Engineering Credit 11 10-UG was justifiably initiated for the 7 towns of Kampala, Jinja, Entebbe, Mbarara, Masaka, Tororo, and Mbale. The town of Arua was originally included, but was dropped subsequently on account of the prevalent security situation in the region. The preparation of the Project was undertaken by the MWMD (then MLMWR) through the NWSC and WDD. 2.03 Project's Role in Long Term Plan The role of the project in the long term was to provide the basic infrastructure essential to revive/stimulate economic growth in Urban areas. It was envisaged that the improvement of services to the general public by good management techniques, trained manpower availability and financial self-sustenance would have been acquired as a result of this project and subsequent ones to follow. 2.04 Project Description The Water Supply engineering Project covered under the Development Credit Agreement No. 11 10-UG, Schedule 2, was basically split into 5 parts: Part A: Feasibility Studies and detailed engineering designs for rehabilitation and expansion of the Water and Sanitation Sector for: Group A towns - Kampala, Jinja, and Entebbe Group B towns - Masaka, Mbarara, Tororo and Mbale Part B: Water Supply and Sewerage Tariff Study. Part C: Training (i) Manpower and Training Study (ii) Feasibility Study for Training (iii) Preparation of Training Program Part D: (i) Provision of six houses, twelve vehicles (ii) Acquisition of water meters together with testing and repair facilities Part E: Technical Assistance (i) Strengthening of the Project Coordination Unit (ii) Strengthening of the Engineering Department of NWSC (iii) Preparation of Health Education Program 2.05 Covenants (i) The principal Covenant in the Development Credit Agreement was that the Government shall transfer to the NWSC as an equity contribution, out of the proceeds of the Credit, an amount in Uganda shillings equivalent to Six Million Seven Hundred Thousand Dollars (US$ 6,700,000); - 15 - (ii) The principal Covenant in the Project Agreement was that the NWSC shall maintain adequate audited records of its financial operations so that they reflect its financial condition. 3.00 Implementation 3.01 Loan Effectiveness and Project Start-up In November 1979, project identification was made by a World Bank mission to Uganda, soon after the Liberation War of the same year. The project was appraised in February 1980, and the Credit was approved in March 1981. The Credit Agreement was signed on the 5th May 1981 and made effective circa July 1981. The first withdrawal application was made in August 1981 and payment was effected in October 1981. The original closing date of the Credit was extended from January 31, 1985 to January 31, 1987, due to the unsettled political and security situation prevalent at the time. [Ed: The project actually closed on December 31, 1987.1 3.02 Revisions There were some items in the project which were not originally envisaged. These were emergency or immediate works that had to be done to get some the water Supply systems reactivated. Apart from these, there was not much departure from that described in Section 2.04 under Project Description. 3.03 Implementation Schedule 'Te original implementation Schedule showed completion of all project components by January 31, 1985. Unfortunately, due to political troubles that beset Uganda and the consequent looting/destruction that followed in its wake, the completion date was extended to January 31, 1987. However, physical completion was achieved earlier with the last disbursement payment being effected on September 4, 1986, when all of the Foreign Component equivalent to SDR 7.1 was fully utilized. 3.04 Procuremen There were no problems regarding procurement of Consultancy Services/Technical Assistance with regard to Parts A, B, C, and E (Section 2.04), as these were internationally advertised and selection was based on World Bank (IDA) guidelines. There was certainly some apprehension among the expatriates, mainly in regard to personal safety/prevalent security situation. The Contractors for the procurement of goods/equipment/vehicles and Civil/Mechanical/Electrical Works (Part D) were selected from international/Local Competitive Bidding (ICB/LCB) procedures of the World Bank (IDA) and its affiliates. Responses to the invitations/tenders were good with a wide international/local interest. - 16 - 3.05 Costs and Disbursements The total project cost equivalent to SDR 14.2 million was composed of foreign and local components each equivalent to SDR 7.1 million. The foreign Component disbursements were as follows: WB Report Actual (Feb. 1981) Amount of Foreign Estimate Component Disbursed y&K Million SDR in Million SDR 1981 1.25 0.66 1982 2.45 0.76 1983 1.90 1.55 1984 1.10 1.44 1985 0.40 1.50 1986 - 1.19 Total 7.10 7.10 Million SDR The Local Component equivalent to SDR 7.1 million was fully disbursed. During this period the Ugandan Currency was subject to fluctuations of exchange rates: Ytear Av. Exchange Rate 1980 1 US$ = 7.5 Old Ushs 1981 1 US$ = 90 1982 1 US$ = 150 1983 1 US$ = 250 1984 1 US$ = 500 1985 1 US$ =4300 1986 1 US$ =4400 May 14, 1987 1 US$ =1400 From May 15, 1987 1 US$ = 60 New Ushs On May 15, 1987, a new currency was launched bearing the same name as the old (One New Shilling = 100 Old Shillings). The new banknotes were smaller in size than the old. Details of disbursement of both foreign and local are as given in Annex 1 to Part II. 3.06 S& The project was essentially a study to assess requirements and attend to any emergency measures. The actual implementation of the rehabilitation/final design for expansion was to be in a subsequent follow-up project. The general state of NWSC/WDD operations as existing at the time, can be stated as poor. 3.07 Performance of Consultants. Contractors. Suppliers and Borrower The performance of the Consultants (including Technical Assistance Personnel) was good and generally a good working relationship with the Borrower prevailed. - 17 - The performance of expatriate contractors was generally good, but that of local contractors poor. The causes for the latter's poor performance can be attributed to "unfair" economic conditions prevailing in Uganda for locals to compete on an equal footing with expatriates. The performance of the Borrower represented by the MWMD (then MLMWR) was hampered by the lack or delay of local cash flow, during almost the whole of the project's life. The principal causes for this were bureaucratic delays outside the control of the MWMD (then MLMWR) and the Ugandan economy. To summarize, given the conditions of a weak Ugandan economy and the prevalent unsettled political climate coupled with internal security problems, all participants in the project can be said to have endeavored to have performed satisfactorily. 4.00 Operating Performance 4.01 Market One of the main difficulties in assessing/forecasting market trends and demands was the lack of sufficient reliable data. The potential demands were assessed on population projection figures based on the 1980 census data. Consumption figures were based on estimates and demand data from other towns in Africa. The following is an abstract from the data provided for Consultancy Services for the Seven towns giving market demand forecasts (Source: Appendix to Terms of Reference - 1987): P = Population x 1000 D Demand in Cubic meters/day x 1000 Town Year 1985 Year 1990 Year 1995 P D P D P D Kampala 541 64 747 81 935 105 Jinja 135 28 172 41 219 56 Entebbe 24 8 44 10 51 11 Mbarara 34 6 44 7 56 9 Masaka 36 5 46 7 59 9 Mbale 35 7 45 9 57 10 Tororo 28 5 36 7 46 8 During the period of the project, the production capacities were poor and estimates of the population served varied from a low figure of 20% to a high figure of 40%. The causes for this were the weak organizational/management structure, lack of funds for service/maintenance/purchase of spares, lack of trained staff, lack of motivation due to poor remuneration/economic conditions/low morale, political instability resulting in theft, looting, insecurity, lack of respect for law/order, inadequate tariff structure and rampant inflation. The - 18 - project intended to redress some of the above shortcomings, but to a large extent its success was hampered by other factors outside its control. 4.02 Project's Rolf A Manpower and Training Study, a Social Anthropology Study and the Tariff Study helped in identifying the existing problems and proposed solutions to overcome them. The other engineering studies identified the extent of requirements for rehabilitation and expansion. Purchase of equipment/vehicles/small tools assisted in minimal preventative maintenance and assess production consumption data. The project during this period can be said to have halted the declining production capacity or restored modestly the production capacity by the emergency provision of pumping/treatment equipment. 4.03 Other Factors The project stressed the importance of sound financial operations/management of all water supply and sewerage utilities, if they are to serve the public satisfactorily. Under the prevalent economic and political climate, the achievement of these goals was to be implemented in the follow-up project to this Credit. 4.04 Pro3ect Spin-off The project assisted the Government in completing the necessary preparatory work for urban water supply/sanitation investments in the seven major towns. On the results of the studies, the follow-up project for implementation would give the opportunity and experience needed to the local personnel. In a wider context, this would stimulate economic growth in the towns thus creating employment opportunities. 5.00 Financial Performance Financial Results, Rate of Return and Financial Targets analysis are not applicable to the studies undertaken under the project. These will be the subject under a separate Credit Agreement. However, there is an obligation on the part of NWSC and WDD to maintain properly audited records of its financial operations so that they reflect these institutions financial standing. Accountants acceptable to the World Bank (IDA) have already undertaken and submitted their audited yearly reports starting circa 1982. The tariffs as existing prior to May 1, 1984, were found inadequate and new common tariffs for both NWSC and WDD came into effect thereafter. After consideration of the recommendations as a result of the Tariff Study Proposals, a further revision was submitted to the MWWD (formerly MLMWR) for cabinet approval in circa 1986, approval for implementation for which was obtained on May 1988. Forecasts of income statements, Balance Sheets and Sources of Application of Funds are considered academic as the Water/Sewerage utilities performance was below expectations and awaiting major rehabilitation. Moreover, enforcement of the tariff charges with a poor or non- existent supply distribution to consumers was considered not practicable and premature. - 19 - 6.00 Institutional Performanc 6.01 Management and Organization Effectiveness The general management and organization capabilities of both the NWSC and WDD were strengthened by inputs of expatriate Technical Assistance. A Project Coordination Unit was formed reporting directly to the Permanent Secretary MWMD (formerly MLMWR). This Unit was responsible for the routine work and coordinating functions as required by the project. As the Project advanced, the unit increasingly took on responsibilities for implementation of the project components. The NWSC was additionally strengthened by a Management Advisor, Financial Manager and a Water Mains Superintendent from an EEC Grant Aid. However, much remains to be done in both NWSC and WDD and expatriate Technical Assistance inputs shall continue to be needed until the Ugandan economy shows a marked improvement. 6.02 Growth In assessing the state of the Water Supply and Sewerage as existing and the enormous backlog of work that is required, the Sector is a growth area with much potential for expansion. As the economy picks up, there will be manpower requirements needed to keep pace with development. 6.03 Staff Recruitment. Training. Development The major constraints to the improvement and expansion of the water Supply and Sanitation are the scarcity of local trained personnel and the economic conditions prevailing, the consequences of which are weak institutions and inadequate support facilities hampering development. It would take a considerable time and effort to overcome these constraints and the project has initiated studies which recommend an action plan to overcome the manpower and training requirements. Uncompetitive employment conditions shall continue for some time making it difficult for the institutions to attract, retain and motivate staff. Expatriate Technical Assistance and training by themselves will not remove these constraints to the institutional strengthening process of the government in the short term. 6.04 Sectoral Development The World Bank (IDA), EEC AfDB, IDB, West German Government, UNICEF and non- governmental Agencies are active in Urban/Rural Water Supply/Sanitation projects throughout the country. To coordinate all these activities and develop a strategy for planned program of work a Sector Study/action plan has been ongoing with UNDP/World Bank (ID) assistance. A report has been finalized for the Government's consideration for follow-up. 7.00 Project Justification The Engineering Project represented the first important step in addressing the basic needs of water and proper sanitation facilities to about 1.5 million people in the seven towns. The project identified the institutional strengthening needed and provided Technical Assistance inputs of both personnel and equipment/materials. As a result of these measures, economic and - 20 - industrial growth can be expected to pick up in the seven towns thus creating employment opportunities. 8.00 Conclu,sions The Water Supply Engineering Credit 11 10-UG achieved all its objectives, thus preparing the necessary framework for implementation in the follow-up project - Cr. 1510-UG. Given the then existing state of the water supply/sewerage systems in the seven towns, it is considered that the Tariff Study undertaken was premature and should have been deferred to a later stage after the systems had been rehabilitated. Nevertheless, the study confirmed that need for reliable records/data and improvements in the financial operations of both NWSC and WDD. 9.00 Comments on Part II of the Project Completion Report for Cr. 11 10-UG by the Ministry of Water and Mineral Development Section 1.01 This is a factual presentation of the country and sector description, and there are no comments to be made on this part of the report. Section 1.02 The Government of Uganda and the Ministry of Water and Mineral Development in particular deeply appreciates the role of the water supply project aimed at meeting one of the social goals of providing drinking water/sanitation in our seven major urban centers. The positive effect that the project would have in reviving economic activities in the urban centers affected is also noted. Section 1.03 - 1.06 The Ministry has no material comment to make under these headings as they again contain factual presentations over which we do not have much to add. The Ministry would wish to record its regret, however, for the very trying working conditions which every project worker - expatriate or local - had to bear with, particularly during the time immediately following the 1979 Liberation War when robberies, car thefts etc. affected many workers. Deep appreciation should go to all those who withstood these difficulties with patience and understanding. Section 2.01 - 2.05 No comments. Section 3.0 - 3.7 Although the project was eventually completed, some concern must be expressed at the long time it takes to start off the project from its identification. The project in question was identified in November 1979, but the first actual disbursement payment was not until October - 21 - 1981 - some two years later. I hope we can learn some lessons form this, and in the future try to cut down on the time it takes from project identification to its implementation. We note with appreciation the good performance of the consultants and expatriate contractors who were engaged on the job. The reverse performance of the local contractors is also note and it is hoped that favorable conditions can be created for them also to compete effectively. Section 4.01 - 4.04 The question of maintaining reliable data is vital in the task of providing social services including water. Good data helps planning and forecasting and it minimizes wastes which occur when one tries to plan for the unknown. This experience can perhaps help us to deal with the future projects of this nature. Section 5.00 It is essential that the National Water and Sewerage Corporation (NWSC) and the Water Development Department (WDD) derive sufficient and steady revenue from the services they provide. Tariffs provide direct source of such revenue, and it is important that the levels of such tariffs are realistic for the collection of revenue must be effective and this is still lacking in both the NWSC and WDD. We accept the view that until the supply net work is rehabilitated fully and consumer data has been accurately compiled, enforcement of the tariff charges cannot be practical. Section 6.01 - 6.04 We agree with the observation that the water supply and sewerage sector is a growth area with much potential for expansion. Trained manpower will be needed to maintain the sector, and it is in this light that we welcomed the studies which started under the project aimed at recommending ways to overcome the manpower problem. Section 8.00 We can agree that the report makes no exaggeration in its concluding remarks that the Water Supply Engineering Cr. 11 10-UG achieved all its basic objectives. This should provide a good basis for implementation of the succeeding projects. We also agree that the Tariff study undertaken under project 11 I0-UG was premature as it should have awaited the full rehabilitation of the system. * - 22 - Annex 1. 1 k Sheet 1/3 SUMMARY OF DISBURSEM&ITS RECIPIENT CURRENCIES OF SDR LUUIVALENT AND PAYMkNT. k'oreign (F) DESCRIPTION (Total Payments) Local (L).. OF SERVICE _ Al. Parkman Consultants - Feasibility L 890,439 - 86 1,201,qb8 - 15 (F) Studies F'or Mbale, Tororo, N. sh 788,599 131,000 (L) Masaka, and Mbarara. + payments under 1510 UG A2. Gauff Consultants - DM 44912038 Feasibility Studies 7' 9' '3 2,740,3b5 - 18 (k) ='or Kampala, L 49,188-52 Jinja and Entebbe. + purchase of Land- N.sh l,15b,612 37b,000 (L) Hovers F'or PCU + sayments under 1510- Bl. Stanley Associates - US $ 100,171-20 99,171 - 11 (F) Tariff Study Nsh. 49,352 9,810 (LU Cl. Coopers Lybrand - L 98,395-82 153,412 (F) Manpower and NS 8544t1 L -Training Study N.h 38,524 40,y18 (U) C2 (a) Water Industry Training Asso- ciation (WITA). £ b99897-74 91g22b-99 (F) Training (b) Various - For Training K.Sh 145,982 53,2bb-83 (F) Courses - 23.- Annex 1.l Sheet 2/3 SUMMARY OF DISBURSEMENTS RECIPIENT CURRENCIS OF SDR iUUIVALENT AND PAYMkNT. F'oreign (F) DESCRIPTION (Total Payments) Local (L) OF SERVICE _ DI-(a) Mukalazi Tech- nical Services N.Sh 10,538,921 4,915,0O0 (L) Staff Housing w + Emergency Rehabilitation (Mbale/'lororo) (b) Itoh - 12 vehicles k'or Yen. 21,O78,392 85,0b7-28 (Fl) PCU (c) Wigglesworths KSh. 1,29b,6 30 O19,074-74 (F) Doshi Hard- Kah. 4,505!,804-5 379,211-46 (L) wares: - Building materials. D2. (a) Kent Meters - k'or Supply of meters and L 330,256 -bI 425,201 (F) testing Equip- ment (b) Sunkyong -US 339730457(F supply of pipes US 323,917 330,645-76 (F) (c) Dusor - supply of fittings 3FL 5 L tF0 7 1 - Z83,608-75 (F for pipes El (a) Fletcher/ Abdeen/Board US A 393,909-38 4 - Technical £ 3,183-bO 402,514-30 (F) Assistance, strengthening N.sh 57,780 11,8b2 (1) Of PCU/WD)D/NWSC Ns 770ltb L (b) Ectol- Electrical L 9,99l-50 13,091-01 (F) equipment For Staff Houses (Gauff) - 24 - Arm l. Sheet 313 SUMMARY OF D1SBURSEMENTS RECIPIENT CURRENCIES OF SDR EUUIVALENT AND PAYMENT. Foreign (F) DESCRIPTION (Total Payments) Local t L) OF SERVICE (c) PCU - expenses for Wages/Allow- Nab. 2,b25,bb4 l,bZl,b5b (L) ances, office , rental, Accommo- dation, Compen- sation, Transport, -Local Consultants and running costs 2 Mt- Scial Authro- US A 31,029-84 28,498 - Ol(F) pological study Nsh 5,000 5,556 (L) Fl (a) Jos Hansen & Sohne -Emergency hehabi- DM l,.155,225-35 432,404-76 (F) litation Mbale/ Tororo (b) bilwater- Emergency L 291,359-54 3`'1,b3a- 17 (F) Rehabilitation Totals 7,099,999 - 99 (F) 7,lOO,OO (L) r Annex L. e. ah.et 1/2 - 25 - FOhECAST AND ACTUAL PROJECT COSTS All Costs in Mill. SDR Item Description Foreign Local Forecast Actual Forecast Actual 1. (a) Feasibility I Studies - 2.45 2.74 2.45 1 0 38 Kampala, Jizlja 25 i&ħ2.5 I 03 Entebbe 12% higher 85% Less on Fore- on Forecast cast I-~~~~ - (b) Feasibility I I Studies- Masaka, Mbale, 1.03 1.20.18 l 0.13 Mbarara,Tororo 16X higher 189% less Ion Forecast Ion Forecast _ ~~~~I __I._ 2. Provision of Water I Meters and Tools 0.79 I 0.94 0.24 1 119% higher I on Forecast 3. Staff Housing and _ Offices etc. 0.47 0057 o.63 4.62 21% higher 733 Ion 'orecast higher on I ForecastI 4. Tariff Study 0.24 1 0.10 0.16 0.01 158S Less 194% Less Ion Forecast i on Forecast 5. Manpower Studies I and Training Pro- I gramme (Cooper & 0.24 1 0.30 0.24 I 0.04 Lybrand + WITA + I h Cources) 125% higher '83% Less Ion Forecast on Forecast 6. Technical Assist- I I ance (RAF/MNA/RTB, I Matte Jorsted) 0.47 1 0.43 0.47 1 .01 9% Less on' 198% Less o ,I orecast I Forecast I ..I . . . l l .~~~~I Annex 1. 2 - 26 - Sheet 2/2 FOUKCAST AND ACTUAL PRUJkCT COSTS All Costs in MIII. SLA Item Description Foreign Local Forecast k Actual korec l Actual . 7. Subtotal 5.68 6.2b 5.37 5.19 (Base Cost) I lle higher 1 3% Less ion korecast on Forecast a~~~~~~~~~ I 8. Contingencies 1.42 U082 1.73 . (Pzlyical + price) 1 42% Less I lOC higher (Emergency Works, Ion k'orecast ion E'orecast PCU Costs) I Totals 7.10 1 7.10 7.10 I 7.10 rnuru.um.mmruL.ruuuin.u=u inuminmu:-rX---umuu lI I - 27 - Annex 1. 3 FORECAST AND ACTUAL DISBURSEIINT SCHEDULE (Million SDR) FOREIGN COMPONENT ONLY WB Report Actual Actual Disbursement Year Estimate Disbursement as% of WO Report Feb. '81 Estimate 1981 1.25 0.66 53 1982 3.70 1.42 38 1983 5.60 2.97 53 1984 6.70 4.41 66 1985 7.10 5.91 83 1986 7.10 7.10 100 -28- Annex 2.1 kinancial korecasts r National Water And Seweraie Corporation Income Statement - - (Old Ushs Million) 1954 1985 19S6 1957 1966 1989 1990 Water saitl ( 000 83§) 9,033 10,504 13,111 16,923 21,.06 23,.74 25,046 Avtage Pftet (U6bh/) 17.41 60.11 76 95 115 134 152 Operating awteaina 157.3 649.4 1,022.7 1,607.7 2,507.7 3,145.5 3,807.0 OperatiLg lapee"e personnel Coat - Water 35.6 110.3 133.6 143.0 1531.6 160.7 170.3 - Iev_ aue 19.3 59.4 72.0 77.0 61.6 66.5 91.7 - Total 55.1 169.7 205.6 220.0 233.2 24t.2 262.0 Trsapetrt - Voter 46.5 56.2 62.4 95.9 116.7 126.1 136.0 - Set_aet 22.9 26.6 46.5 56.9 74.7 81.4 86.2 - Total 71.4 66.8 126.9 152.6 191.4 207.5 224.2 ChauLeala - water 31.7 46.6 6469 64.4 106.9 119.3 133.1 Power - Sater 6.3 (0.5 52.2 84.1 117.1 129.6 142.9 - Sewarge 1.2 6.5 9.7 11.3 13.0 14.9 16.9 - TOtal 9.5 47.0 61.9 95.4 130.1 144.5 159.6 WeLateames - water 93.0 139.6 166.9 266.4 321.3 354.3 j91.t - Sa _geys 26.6 45.7 73.5 112.5 159.7 179.3 200.6 - Tota l 119.6 165.3 262.4 380.9 461.0 533.8 591.A D Fepalatle - Water 646.5 699.0 764.0 1,276.7 1,451.6 1,623.3 1,790.6 - _e mtat 666.9 920.3 990.1 1,462.& 1,604.4 1,765.5 1,949.4 - Total 1,533.4 1.619.3 1,774.1 2.741.1 3,056.2 3,366.6 3.748.2 Total Op. lap. - Water 663.8 1,094.2 1,306.0 1,954.5 2,265.4 2,513.3 2,772.2 - la_erage 956.9 1.060.5 1,191.6 1,i20.1 1,933.4 2.127.6 2.346.6 - Total 1.820.7 2.154.7 2.497.6 3.674.6 4,198.6 4.640.9 5,119.0 Operating tleom (1,663.4) (1.505.3) (1,475.1) (2,066.9) (1.691.1) (1,495.4) (1,312.0) Interest Cwrged to Operate"ns 2.6 60.0 73.5 67.0 60.5 361.8 438.2 met l2e _ . (1.666.2) (1,565.3) (1,546.6) (2,133.9) (1,751.6) (1,657.2) (1.750.2) Operating latin 1,151 332 244 229 167 146 135 Sources World Bank Staff Appraisal Reports Water Supply and Sanitation kehabilitation Project - Cr 1510 UG - Report No 4968 - UG dated June 25, 1984. r - 29- _ Anex-2.2 Financial Forecasts National Water & Sewerage Corooration Sources of Application of Funds (Old Ushs Million) Sat Imea bale, latg,t * (166.4) (1.503.)) (1.475.1) (2,066.9) (1.691.1) (1.495.4) (6,233.6)(1.312.0) |bF..2*. 1.m.4 1.419.) 1.774.1 2.741.I 3.05).3 3. XI, Il579.S 3.7&6.2 *^1 , ' 1(130.0) 114.0 299.0 674.2 1,363.3 1692.4 4.)45.7 2.4)4.2 dL. ettsta.l hbqtromtI lease " (bage.) Ibvktag capital (60 .1 66.9 134.1 S1I.2k 423.6 192.7 1,337.7 203.7 later O0ed * Op t.6 60.0 73.5 61.0 46.5 361.6 442.1 436.1 bbltbpe :PvF="& J.j 43.j 6. 46.6 46.6 321.7 411.9 319.1 f' Bob-total (71.3) 211.1 276.4 432.0 335.1 692.2 23S93.4 941.4 ietel fad LAllb (32.7) (103.7) 22.6 22.2 610.0 1,001.2 11,72.3 1,.44.4 Capital 1aweeets (tact. 1le) ft _P d Vtote - t 0.0 603.7 1,399.0 1,469.1 1.046.5 332.1 S.053.0 0.0 -severe 0j j3. O3017.2 3 U.1 2)0.2 72.9 1 109.4 0.0 - stal 0.0 960.1 1,704.2 ,792.4 1,276.7 405.0 4,142.4 0.0 Ott batwut"u - voter 1200.0 939.0 300.0 0.0 320.0 400.0 1939.0 450.0 : waml 0.0 0.0 0.0 0.0 440.0 e60.0 1e040.0 - so.o - tat 1200.0 939.0 300.0 0.0 400.0 10.0 3.039.0 1.300.0 Totallapital lovestma; 1200.0 1919.1 2004.2 1792.4 2,07.7 1,405.0 9.201.4 1.300.0 blina Be be llaM..d 3,232.7 2,022.6 1,963,4 1,770.2 1,468.7 402.6 7,449.1 23.4 P,ammwd by I largeolie t762t.6 641.2 1154.1 1276.3 935.7 294.9 4,304.2 0.0 hlt,w t219.9 442.4 532.1 314.1 243.0 110.1 1,941.9 0.0 Glins w210.0 939.0 30oo0.0 Jj jm j 1.2)9.0 0.0 Total nt.... bregs 1,232.7 2,022.6 2.004.2 1,19.4 1,276.1 40..0 7,303.1 0.0 assh logesm (bins...) 0 0 22.4 22.2. l1040 3.2 56.0 (23.4) Casb at bglam*e of Tom 7.1 1.1 *.1 29.7 51.9 61.9 43.1 Case at Sd at tea, 7.1 7.1 29.7 51.9 41.9 4.1 37.7 Sourctl World Bank Staff Appraisal Reports. Water Supply and Sanitation ekbabilitation Project - Cr 1510 UG - Repor.t No 4968 - UG dated June 25, 1984 - - iuLx£ Finalcial . oi ecasts National Water hrid LeweraK,e Cor poration Balance Sneet (Uld Ushs Miħlion) 1964 1935 1986 1987 1966 1989 1990 Aset. 11usd Lasta lImEt es qleratiaa 25,4, £UV7. 1 102s 3.212 ,. 3,.. 40 1,372.0 ** 17. l 6 - Sttt_gag. 38 394.0 41 130.4 44 945.0 49 386.1 54 122.2 359 7SO.2 45 955.4 - kotUl 44.571.1 49.2229* 77.177. 64,289 .9 *53H94.2 10s5.92.7 117.0',1.4 Fla.In ;opeiatioal - Vater 11.103.7 20,553.9 23,117.5 264476.6 30.311.5 34,442.8 39,563.3 - sttt_ t30,310.0 32,973.1 36,763.9 41.537.2 44,179.9 32,664.6 59,511.8 - Total 49,113.7 53.533.0 59,683.4 6e 014.0 P7.191.4 07.527.4 0 153.1 Hot 11ud LFeates - Vatte ,6873.4 7,505.6 9,094.9 10,427.0 11,240.5 11,509.7 l1,480.7 - Sftwurose 6564.0 *.157.) 6*199.1 7,848.9 7.242.3 * 913.6 6,413.6 - Total 13,437.4 13,663.9 17,294.0 103275.9 16,502.6 18,425; 17,894.3 Ihrk is Propose, - Votev 0.0 603.7 770.7 446.1 449.7 342. 258.6 - Sg-rtag 0.0 174.4 143.1 93.4 312.4 396.3 413.3 Total 0.0 960.1 915.8 541.7 93.1 741.1 682. 1 Curroet LAgottu Ceb dla lBaks 7.1 7.1 29.7 51.9 41.9 63.1 37.7 Accnts lesolvabla 52.4 130.5 170.6 246.5 416.3 32 .3 435.8 lov.steries 30.0 100.0 200.0 450.0 954.9 1.039.5 1,110.3 Tot&L 109.3 215.4 400.5 970.0 1.4)7.4 3,44.9 1,644.0 Total Aosato 135.64.9 164861.6 18,10.3 19.76U.0 20.922.3 20,814.3 20.420,4 Iquitty am Liabilities Equity Capital 8 15,112.1 14,254.7 13,804.1 17,320.9 17,443.9 17,714.0 I7,174.0 Sataisa4 arsigla (1,444.2 (3.251.5 (4,600.1) (0 934.0) (5,43.) (10,542.6) (12,293.0) Crmt_ 270.0 13209.0 13,09.0 1,509.0 1,509.0 1,309.0 1,509.0 Swalsaties aUmevea 257.5 1.146.3 2.476.0 4.034. 5.469.3 7,344.4 9,002.8 Total z4slty 14.473.4 13.383.5 15.993.1 15.930.4 13.164.6 14.084,6 3,992.8 LAg Ters Debt 830.4 13422.8 2,505.1 3,717.4 4,584.5 4,541.7 4,222.0 Curaest Liabilltlee Aeeomnt Payable 43.1 60.3 106.5 140.0 171.4 137.6 205.4 Total 43.3 1 0.3 108.5 140.0 171.4 1671. 205.4 Total Equity md Uabilities 15.54,3 9 146,61.6 18.140.3 19,785.0 20,922.3 20,814.3 20.420.4 Dbt/lebt _d Eqity (2) 5 I 14 16 22 22 21 Source: World dank Staff Appraisal heport: j . water bupply and Sanitati.on tehabilitation k"roject - Cr 1510 Uu - neport Ilo 49b8 - UU dated June 25, 1984. -3-uie.x j. 1 i'l1w.ttaclia FozecaisL& water Iievelo rnent Ledalt:.:ent Inlcome Statemtteit (Uld Ushs 1*;ill1on) 1984 1985 1966 1987 1986 1989 1990 Water 5sale ('000 .3) 1,006 2,446 2,741 3,987 4,711 5,190 S,696 voter Sale 8 I'M ~~17.41 60.11 78 95 Lis 134 252 Average Price (USh/- 17.5 1470 211.6 378.8 542.6 695.5 865.8 Operating Revenues . t70 238 788 526 9. Operating *xpensee Personel Cas - voter 27.3 32.9 38.3 44.3 49.2 54.9 57*4 rsonnel Cost S- ewerage 1.6 2.0 2.4 2.9 3.3 3.8 4.4 - Total 28.9 34.9 40.7 47.2 52.5 58.7 61.8 trenspoft I - Water 7.6 9.3 10.9 12.9 14.2 15.8 18.1 -Sewerage 1.6 2.6 3.1 3.64045 5. - Total 9.4 12.1 14.0 16.5 18.2 20.3 23.2 Chemicals Water 76.2 83.7 140.9 158.7 176.8 12.5 219.1 Power - Water 4.4 17.4 31.1 35.1 38.9 43.7 48.8 - seweerge 0.1 0.1 0.2 0.3 0.4 0.5 0.7 - Total 4.5 17.5 31.3 35.4 39.3 44.2 49.5 maintenance Water 24.3 21.1 40.7 48.0 50.8 54.2 61.9 -Sewerage 2.0 3.4 5.1 5.7 6.4 7.2 8.0 _ Total 26.3 30.5 45.8 53.7 57.2 61.4 69.9 Depreelatiod - tWater 168.4 177.1 201.2 333.5 381.0 429.1 468.8 - Sewerage 59.3 63.4 71.5 112.8 130.9 1 261.7 -Total 227.7 240 272.7 446.3 M69 575.5 630.5 Total Op. lap. - Water 308.4 347.5 463.1 634.5 710.9 794.2 874.1 Totl O. gp. - Sewerage 64.6 71.7 82.3 120 a 16. 179.9 -Total 373.0 419.2 545.4 757.8 855.9 956.6 1.054.0 Operating InCoM (355.5) (272.2) (331.6) (379.0) (313.3) (261.1) (188.2) Intereet Charged to Operations 0 0 0 0 0 0 Net Incor (355.5) (272.2) (331.6) (379.0) (313.3) (261.1) (188.2) Operating Ratio 2.131 285 255 200 158 138 122 source: "ox-d banK 6tall kppraisal heportat uter buSppy aicd oaz)iratiun k:ehbikħ c.. tion Project - Ur .)lU U.; - k'esot Iju 4L.;b - Uu dat .d Junie 25, 19B4. - 32 - ' ex Z*> tinanicial forecasts Water Development lepartment - Sources of ADlJication of _unds (Uld Usns hiii.iion) ,, . ._ _ . ~S-rr 2954 5955 ~~~19864 ~ 7 5 19S9 Is iFT,8i 5)1990 19s, 1985 19 07 19|t 1| 1| it9 19 I tetel owre..; kt I.e.,. boi.ro lateta.: (355.5) (271.2) (332.4) (379.0) (313.3) (236.5) (1.155.2) (ISS.25 ,eoeiatloa 8227. o 40.5 212.7 5446.3 55.9 575.5 2.045.9 Gio.3 kb-total (127.5) (31.7) (55.9) 47.3 159.4 314.4 459.7 442.) Less Opo,oISol kq.ioooeot lou.... (Sect....) SbfhIng Capitol (37.5) 4.1. 37.2 51.7 54.5 31.5 234.9 42.3 latorost Chog.de to o"ratiom. 0 0 0 0 0 0 0 ,kbt ppN.Vymt 0 0 0 0 a 0 0 0. lob-otal (37.5) '1.7 37.2 51.7 44.5 37.5 234.9 42.1 Iateia,l EV.ds Available (90.03 (73.4) (94.2) 15.5 131.5 276.9 254.5 400.0 Capital laotamet fropomd fojoet - water 0 379.5 554.7 322.9 312.2 111.1 1.105.4 0 - Savrese 0 59.0 154.2 - 375.5 51.3 21.5 23.1 e - Total 0 44.5 . 459.5 J"l. 2.530.2 0 0t, boaot,etlet - wt 0 130.0 230.0 ;40. o 340.0 - Iurgo ° ... 0 0° 30.0 210.0 50.0 - Total 0 330.0 0 0 350.0 216.0 740.0 400.0 TotaL Capital laoaetmat 0 M!!j 755.9 A9M.7 419.5 45*4. 3.290.2 400.0 laime. to be Iamead 90.0 571.9 655.0 553.1 451.? 1)1.7 3.035.4 0 fIlaed by$ ekr,ot*on 0 0 0 0 0 0 0 0 SquAt 55.5 900.0 5'S.0 495.7 459.5 144.4 3.0&1.5 0 to 00 0 0 0 0 0 0 Total nle.se sowmeo 5.5 900.0 545.0 595.7 459.9 244.4 3.047.5 0 Caoh Ioerea" (Dease) (1.5) 12.5 (10.0) 15.4 (25.2) 4.9 12.4 0 Coab at klnSasg of Tom 1.5 0 25.1 15.1 33.1 5.5 12.4 Cook at 1%d of Tow 0 25.1 10.1 33.1 5.5 22.4 12.4 Source: world sank btait Appraisal heporti Water Supply and banitation n1enabilitation ProJect - Cr 1510 UG - heport No 496b - UU dated JUne 25, 1984. 3 n*x 3. 3 Financisl Fozecasts Water Developmernt Departmnent Jialance Sheet (Old Uskas i.ii.L.ion) 194 1986 19fl IM les 969 ?99 Ao"ts Assetss hint is Oet*tt@ma - Vat.,t 6.3)3.6 7,069.3 6 )67.6 9,639.1 10.9)4.3 12,240.0 33,143.6 - Suinraga 2,602.0 2,901.4 3.311.4 3,966.0 4,483.8 4*960.2 5,471.6 - bIal 9.135.4 9,990.9 11,499.2 133,03.7 15 435.9 17.200.2 19,213.2 - Vet., 4.)1s.3 6.552.3 S5140.4 ).936.5 663513. 7.697.6 9,011.2 - S.'m,aa 1,100.6 1.661.6 2.091.6 2,392.6 2,738.8 3.131.? 3 575.3 - etoal )S U7.9 6,414.1 7.2J2.0 6,329.1 9*390.6 11,029.3 t2,652.5 Nt Fixid Lasetal - water 2,396.3 2,337.0 3,241.4 2,703.2 4,102.) 4*342.4 4*664.4 - Surage 901.4 1,039.6 _1219.6 1,573.4 1.743.0 13.26.5 1.696.) - ToStl MI291. 3,374.6 46,46.2 5,276.6 5.45.3 6_.170.9 6,560.7 Wbrk La Prop.e.. - Vati, 0 379.5 296.3 124.2 179.6 226.7 166.? _ lvrage 0 69.0 0.0 69.2 41.6 40.1 _ 35.I - Total 0 446.5 366.3 213.4 227.2 266.6 201.8 Current Aa"tam Casb sad 2ink 0 26.1 36.1 33.7 5.3 12.4 12.4 Aceco.ts 3scegosbla 3.6 24.3 33.7 63.3 90.6 116.1 144.6 lm"t.ti 3 12.0 *0.0 60.0 330.0 134.4 172.0 192.1 *t.tl 37.6 92.6 133.6 207.0 250.5 300.5 349.1 btal daust. 3.3135.5 4.137.9 4.969.3 3.69.0 6,323.0 4,738.2 7.111.6 tequty end Liabilitie. Capital 3,590.4 4,490.4 5,335.4 6.0)4.1 4,493.6 6,636.2 6,638.2 ltA1ed4 Rarsage a (355.3) (627.7) (959.3) (1.336.3) (3,431.6) (1.912.1) (2.100.9) Crate 0 a 0 0 0 0 0 0 twaalu.ti.e uuiwe 56.6 246.4 552.4 934.3 1,429.4 ,9355.3 2,510.0 Total Equity 3,293.7 4*111.1 4,926.5 3,650.3 6,271.4 6.661.0 7,046.3 Lomg *qrm kbt 0 0 0 0 0 0 0 Current Uabtlitiaa Acco_st. Payehl 21.8 26.6 40.6 46.? 31.4 31.2 63.5 Total 21.0 26.6 40.6 44.7 51.6 57.2 63.3 total Equity and Lahbilltl. 3,313.5 4.137.9 4,949.3 5,697.0 6,323.0 6.738.2 7,111.' ources: world denk Stmil Apprmiwil iteljort water su,ply axid 6:uaħittion Ie-itbilit"tlcm &zoject - Lr 1510 UU - hepurt iJo 49od - UU dated June 25. 19d4 34 Annex 3.4 Sheet 1/2 WDD BUD)GET PERFH'MOCE All Amounts in Million New Ushs Financial Recurrent Capital lievelopment WDD I MOF I Actual WDD I M4F I Actual Estimate I Approved' Amount Estiuate ApprovedI Amount Amount IAmount Ipent Amount Amount spent 1980/81 ? 1.13 0.777 ? 0.73 1 0.51 81/82 ? 3.60 3.22 7 I 6.60 1 2.43 82/83 7 3.31 1.60 7 4.38 ' 2.87 I . I I 83/84 9.64 4.81 0.44 0.23(7)1 71 7 . . I . . I I 84/85 11.15 (6.59 6.38 3.7 2.83 1.59 _ I j ~~~~ I 1- 85/86 21.15 10.77 1 10.72 _ 7.4 I 7.41 2.47 86/87 62.71 I 0.b2 0.43 30 I 0.37 0.05 I I I 87/88 64.17 1 0.98 I 0.68 124. 0.35 0.19 I . 57FI 88/89 167.73 .167.83 186.26 801 SO L 63.26'0 129.12 | | j87f,~~~~7%F 9-rfq% ; 89/90 685.2 0.17 I 1906'4l 97.75 1 Notest 1. Government Financial Year: 1 July - 30th June. 2.' Capital Development Estimates above are for Nationally Financed proJepts only and is a good indicator' of.,-the national effort towards development. . -1 -35- Meet 2/2 Financial Exchange Rate used Year in the B.dget Eatimates. 1980/81 81/82 82/83 7 83/84 7 . 84/85 3,0 N. Ush 85/86 5.5 , 86/87 ';15.0 * 17/88 14.0 88/89 60.0 * 89/90 165 O l~~~~~~~6. -36- jnnex 4.1 - Sheet 1/ . betlonal Water And SLwerage Corporation Water Developeant Depertmant tariff Structure a/ (old US;Ss) E!nthli Tdriaf/ Previoueb hi Pwleed e1 USh ~~Category A d/ te 2o USh USh Public Standpipea LI ,0 0 0 General water Rate 72 52 of annual rental St f annuel rental valu / (Water only) value It 100 minilm S0 mdni_mm Dometic (lnterual) 72 1UO s0 (water. ad sewerage) Inatitutioes - Publie (Moepitele, schoele) 54.40/1000 In 700/1000 sg 100/1000 Is - Prtvat. (Scbools, collagea) 56.40/1000 IS 70011000 Kg 120/bhed/lintb leduatry 86.40/1000 Ig 700/1000 W g 360/1000 1g Hotels, Petrol Station d6.40/1000 Kg 1OO/I000 Ig 396/1000 1g Residential llouee witb Swiming Peole U6.40/10001g 700/1000D4 396/Kg Presooes witb Luzury Appliances (Cordoe Uoee Bad Sptnimklar) 1,000 2,000 1.200 a/ So_ minor tariff categories have been omitted. b/ UWSC tariffs only. Per HDD, unm_tetrd owners or occupants of property located within 1,000 tfet of a wntef main, regardless of whether thy ware conneted or not, mare subject to a GCenrel Veter late (CU), generally equal to 52 of thb esaw"l vola of the property, with a minimam eherge set at Uth 30 er month. An edditional Internal SUPPly Rate (ISm) io the oe *o unt applied to conau_mrs with connected water supply. Other usere. ouch * roetouraato *ad hotel., mare chorged higher cMN and 1 Ut rel egte" rates. Tbeo weor no O*parete ebarges for *werage. WOUs chreh to tba fow comaumgre witb _ terd supply wmm U6h 3/1000 gallons in met towne. c/ With eftect from Nay 1964. i/ CoSpris*o the sewen poject towns. e/ Comprioeo urban centers otbhr than the seven project town%. T/ Water to provided frte et charge to coneum_ e, but municipal authorities era charged Ush 700/1,000 Ig. ji Determined by govegna_ t valuer in conjunction with valuation for property tax puxposes. 6ource: Wb: ic! 0!.rlk L)tff AJIf;l L;R ;:J teiurt %4ter Supj..Ly tand ;)wiictiLiuXl kbei,;1b:iiC1ACiOK1 azOJtCt - Lr 1>1U UI. - iepol t Aio 4,u - uu tl..it L Julle k), 1:0*. ; ~ ~~ , ^ I- r i I , -,.., I ,* . r 4_' T S I A T 1- 0 It 'R I N ST I U Al L 1N I S. hss FiUIi*-{wpm.b, 19 No. *. - 1: RsasoNru. Bimas The National %ater And Sewerage Corpors40o (') Ut@r (Water Rate) Regdulaions, 1983. I tup ... ... She. So per meu IN z ticis: of the powers conferred uoon the National 2-1 ts . . Sb 100 pn t. Water and SewefaSe Corporation by sections 15 and :q (a) More thItn 3 Js ... Sh. 300 per maItL DO.=* 34 Oi the National Water and Sevcrage Corporation De:ree, *l ''~ 1972, these Regulations are herebr made with the crior (6) Metered ... ... She IS per cubic meter approval of the Ainier this 15th day of February I9SS. 4r) t.im arne 1. Thc mtes speciied in the second column of the First ' 'PP; . Shi SO pet menth Schedule hereto dall be the mtes payable in respeet o. the Si tspp. S 100 per mmmdi consumers specified in the first column thereof in the towns - -. S specified in the Seond Sebedule hereto. upp. Sl J00 peftontL "I Nc Is 2 The Witer Works (Gcnml II.-tea) Order. 19S4, is 13 INSTTUTifs "-D Govelam,m *E# aeaa. hereov revoked save a=.graph 2 in respect of the Thlirm and (a) Ununetred . nn nuad Furtih Sc-hedules thereof.Cflupa. t I These Regulations shall be dt:zrced to hale comrr into ConsiUp tion et .iect on the Ist dar of July, 19S7. save the provisions of metcrcd rsa parzamah 1.7 of the Schedule hereto rvhich sl come into (6) Mette ... *.- *-. Sil. 11 per cunic Metet. force on the date of publicition of this Instnument. 1.4 Itogr"A Coj6o,0cL*. 4. These Re.ulations m3r be cited as the Naion1. uC c *Vater and Sewerage Corporation (Water Rams: Repk-lain (a) Unitered AiAuesed on exumated 19o8o _ Conumaption at merred mnu. (6) M1etr ..... ... ... Ski. 33 per cbic meer. - C. F. L'AOZI-KLAYA. j tni)m c.aq. Clicirmar. Board of Direr:ors. J 'tpply ... ... Sim. SO per month. SCEDtJLES. ' suppiv * Sue IQU per monU, !IIt FfSI CIIrULE. , UPl . She MLV per Moanus Fl.S TE SC. HMrrL. 7 IuFpiy ... She. i.0 pet rnntn. e.aoner Ratr. 7' r utppn ... .. SJa. LOW pet a attn. C pr5soaof pag _,. 1.1 Pe3-- SrsD Parts.. h-'SQp mt (a) Unimetnred Shl. S50 per mta. 4v. isly ... ... ShL 3.70 pet month. Ib) McIerc,d ... .S... Ill 1{) r˘ ec nete.s. o' rercuic ...m. She 50 peFr =-onib. - 38 - PROJECT COMPLETION REPORT UGANDA WATER SUPPLY ENGINEERING PROJECT (CREDIT 11 10-UG) Part m: STATISTICAL INFORMATION Table 1: Related Bank Loan or Credit Credit Purpose Year of Approval Status Credit 1510-UG Rehabilitation of 1984 The Project closed Water Supply and on March 31, 1990 Sewerage Systems Credit 2124-UG Expansion of 1990 Under Water Supply and Implementation Sewerage - 39 - Table 2: Projeet Timetable Planned Revised Actual Reason Appraisal Jan. 30, 1980 Jan. 30, 1980 Negotiation Aug. 4, 1980 Nov. 1980 Jan. 1981 Board March 1981 March 10, 1981 Approval Credit Signing March 1981 May 1981 Delay in designating signatory Credit Aug. 5, 1981 Nov. 5, 1981 Oct. 5, 1981 Delay in Effectiveness receiving legal opinion. Closing date Jan. 31, 1985 Jan. 31, 1987 Dec. 31, 1987 To allow more time for completion of the added on projects. - 40 - Table 3: Schedule of Accumulated Disbursement US$ million Year Appraisal Estimate Actual Actual as % of l_________________ Appraisal Estimate Jun. 30, 1982 3.2 1.4 44 Jun. 30, 1983 6.2 1.9 31 Jun. 30, 1984 8.0 4.1 51 Jun.30, 1985 9.0 5.7 63 Dec. 31, 1987 9.0 7.5 80 1/ 1/ The Credit amount was SDR7.1 million, which was equal to US$9.0 million in February 1981. At appraisal: 1 SDR=US$1.25; in mid-1985: ISDR=US$1.01; and in 1987, 1SDR = US$1.25. By closing date: SDR7.1 million = US$7.5 million. Hence the Credit was fully disbursed. Table 4: Project Cost ____. Appraisal Actual E___ Local Foreign Total * Lal Foreign Total 1 Feasibility and Engineering Studies. (a) Kampala, Jinja, Entebbe 3.1 3.1 6.2 0.5 2.7 3.2 (b) Masaka, Mbale, Mbarara, 1.5 1.3 2.8 0.1 1.1 1.2 Tororo 2 Provision of water meters, 0.3 1.0 1.3 0.0 1.1 1.0 |____ vehicles & pipe materials 3 Staff housing, PCU offices & 0.8 0.6 1.4 5.9 0.6 6.6 transport v 4 Tariff Study 0.2 0.3 0.5 0.0 0.1 0.1 5 Manpower Study & Training 0.3 0.3 0.6 0.0 0.2 0.2 6 Technical Assistance 0.6 0.6 1.2 0.2 0.6 0.8 7 Rehabilitation Tororo/Mbale - - - 0.3 0.5 0.8 Water system Total base cost 6.8 7.2 14.0 7.0 6.8 13.8 8 Contingencies 2.2 1.8 4.0 - - ITotal Project Cost 9.0 9.0 18.0 7.0 6.8 13.8 * See footnote to Table 3. - 42 - Table 5: FInandal Plan (US$ million) Planned Actual IDA 9.0 7.5 * I Government and NWSC _ 9.0 6.3 * See footnote to Table 3. - 43 - Table 6: Missions Data by Stages of Project Stage of Month/ SW in Specializat. Perfor Type of Project Cycle Year field Represented m. Problems Rating Through Appraisal Identification Dec. 1971 2.5 Economist, Financial Analyst, Sanit, Eng. Preparation/Ident. Oct. 1979 5 Financial analyst, Appraisal Sanit. Eng. Supervision I June 1981 1 Sanit. Eng. 1 II Sep. 1981 2 Sanit. Eng., 1 Financial Analyst III March 1981 2 Financial 1 Analyst, Sanit. Eng. IV 1/ Feb. 1983 4.5 Financial 2 Managt. Analyst, Urban /Fin.M. Planner V May 1983 9 Financial 2 Managt. Analyst, Sanit. /fin.M. Eng, Economist VI Sep. 1984 2 Financial 2 Managt. Analyst, San. /Fin.M. Eng. VII 2/ June. 1985 1.5 San. Engs. I/ Jointly with identification of new project 2/ Jointly with Cr. 1510-UG