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ROJECT INFORMATION DOCUMENT (PID)                   36817 
CONCEPT STAGE 
 
Project Name 
Gharbeya Wastewater Connection 
Region 
MIDDLE EAST AND NORTH AFRICA 
Sector 
Water and Sanitation 
Project ID 
P097289 
Borrower(s) 
GOVERNMENT OF EGYPT 
Implementing Agency 
Holding Company for Water and Wastewater 
Environment Category 
[
]
A
[
c
]
B
[
]
C
[
]
FI   [ ] TBD (to be determined) 
Date PID Prepared 
July 11, 2006 
Estimated Date of Appraisal 
Authorization 
November 6, 2006  
Estimated Date of Approval 
December 26, 2006 
1. 
Key development issues and rationale for Bank involvement 
 
In Egypt, about 85% of the population has access to drinking water services, but less than 10% is connected 
to a wastewater system. Insufficient sewerage connections and lack of wastewater treatment facilities pose 
health and environmental hazards, via seepage from septic tanks into the groundwater table, and because of 
the practice of dumping untreated waste into water drains when septic tanks are evacuated. These factors 
ultimately lead to the contamination of drinking water sources which is a health hazard.  In response to this 
situation, the Government of Egypt has set itself the target to expand sewerage connections to cover 11% of 
the population by 2007 and 100% by 2022.  
 
2. Proposed 
objective(s) 
 
The proposed objective of the project is to increase access to wastewater collection and treatment services in 
order to make use of existing and future collection and wastewater treatment capacity. 
 
3. Preliminary 
description 
 
Under the proposed OBA support scheme, advisors recruited will first undertake an analysis of the true size 
of the market and assess the existing willingness to pay. The advisors will also generate cost estimates for 
connecting households to the sewerage system and ultimately to the water treatment plant. On the basis of 
the estimated demand structure and the cost information, total subsidy needs can be determined to achieve 
socially optimal connection levels. The analysis of the market and the determination of the true subsidy needs 
will allow a contractor to be selected on the basis of a competitive tender, to assist the utility in physically 
connecting households qualified for subsidies. Payments to the contractor will be linked to the timely 
provision of connections that meet the prescribed technical specification provided in the tender documents. 
This is a pilot project that will serve as precedence case for the other 25 Governorates in Egypt. A clear 
targeting aspect is present, with easy identification of monitored outputs (number of functioning 
connections). In addition, the poverty impact is also very high, with the project planned in a low-income rural 
area. 
 
4. 
Safeguard policies that might apply 
 
An environmental assessment framework will be adopted as part of the procedures of the concessionaire and 
an institutional capacity assessment will be undertaken. 
 
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Tentative financing 
 
Global Partnership On Output-Based Aid (GPOBA) 
 
$4.02 m 
 
6. Contact 
point 
Contact: Dirk Sommer 
Title: Senior Infrastructure Specialist 
Tel: 202-458-8293 
Email dsommer@worldbank.org 
 
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