asian development bank · 3. although piped water supply systems using groundwater sources existed...

ASIAN DEVELOPMENT BANK PCR: BAN 25366

PROJECT COMPLETION REPORT

ON THE

SECOND WATER SUPPLY AND SANITATION PROJECT (Loan 1264-BAN[SF])

IN

BANGLADESH

June 2004

CURRENCY EQUIVALENTS

Currency Unit – taka (Tk)

At Appraisal At Project Completion (April 1994) (January 2004)

Tk1.00 = $0.0251 $0.0173 $1.00 = Tk39.80 Tk57.90

ABBREVIATIONS ADB ― Asian Development Bank DPHE ― Department of Public Health Engineering FIRR — financial internal rate of return LGD ― Local Government Division NGO ― non-government organization O&M ― operation and maintenance PCR ― project completion report PIU ― project implementation unit PMU ― Project Management Unit TA — technical assistance

WEIGHTS AND MEASURES km (kilometer) ― unit of measurement for length m3 (cubic meter) ― unit of volumetric measurement

NOTES

(i) The fiscal year (FY) of the Government of Bangladesh and its agencies ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2002 ends on 30 June 2002.

(ii) In this report, "$" refers to US dollars.

CONTENTS

Page

BASIC DATA ii

MAP v

I. PROJECT DESCRIPTION 1

II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 6 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 7 G. Conditions and Covenants 8 H. Related Technical Assistance 8 I. Consultant Recruitment and Procurement 8 J. Performance of Consultants, Contractors, and Suppliers 9 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 9

III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Efficacy in Achievement of Purpose 10 C. Efficiency in Achievement of Outputs and Purpose 11 D. Preliminary Assessment of Sustainability 11 E. Environmental, Sociocultural, and Other Impacts 12

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons Learned 12 C. Recommendations 13

APPENDIXES

1. Implementation Performance : Physical Progress—Appraisal vs. Actual 15 2. Procurement of Office Equipment and Vehicles 16

3. Major Training and Institutional Strengthening Activities 17 4. Implementation Schedule—Appraisal and Actual 23 5. Compliance with Loan Covenants 24

6. Project Benefit and Initial Impacts 30 7. Financial Analysis 36

BASIC DATA A. Loan Identification 1. Country Bangladesh 2. Loan Number 1264-BAN (SF) 3. Project Title Second Water Supply and Sanitation Project 4. Borrower Bangladesh

5. Executing Agencies: - Main Component Department of Public Health Engineering

- Flood Damage Rehabilitation Component Local Government Engineering Department; Dhaka City Corporation; and Ministry of Local

Government, Rural Development and Cooperatives

6. Amount of Loan SDR21.838 million 7. Project Completion Report Number BAN 25366 B. Loan Data

1. Appraisal - Date Started 28 July 1993 - Date Completed 10 August 1993

2. Loan Negotiations - Date Started 18 October 1993 - Date Completed 20 October 1993 3. Date of Board Approval 16 November 1993 4. Date of Loan Agreement 10 December 1993

5. Date of Loan Effectiveness - In Loan Agreement 10 March 1994 - Actual 24 June 1994 - Number of Extensions Two 6. Closing Date - In Loan Agreement 30 September 1999 - Actual 28 October 2002 - Number of Extensions Three

7. Terms of Loan - Interest Rate 1% per annum - Maturity (number of years) 40 - Grace Period (number of years) 10 8. Disbursements

a. Dates Initial Disbursement Final Disbursement Time Interval

24 May 1995 28 October 2002 90 months Effective Date Original Closing Date Time Interval 24 June 1994 30 September 1999 64 months

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b. Amount ($)

Category or Subloan

Original Allocation

Last Revised

Allocation Amount

Cancelled a Net

Amount Available

Amount Disbursed

Undisbursed Balance b

01A 10,470,556 7,520,548 (2,561,557) 7,520,548 6,749,193 (771,355) 01B 5,529,124 4,551,910 (769,894) 4,551,910 4,264,593 (287,317) 01C 570,657 336,446 (213,317) 336,446 671,488 335,042 02A 99,368 148,432 53,042 148,432 313,984 165,552

02B 180,282 395,818 233,230 395,818 341,757 (54,061) 02C 89,431 0 (86,358) 0 0 0 02D 1,100,147 593,728 (466,346) 593,728 1,168,310 574,582 03A 239,903 178,119 (52,862) 178,119 148,044 (30,075) 03B 2,241,460 2,968,637 815,465 2,968,637 2,864,009 (104,628) 03C 289,587 123,694 (155,468) 123,694 53,744 (69,950) 04C 1,379,797 1,187,455 (140,411) 1,187,455 1,318,253 130,798 04G 1,190,997 1,484,319 339,882 1,484,319 1,788,418 304,099

04L 299,524 49,477 (239,560) 49,477 0 (49,477) 04M 299,524 98,954 (189,897) 98,954 79,293 (19,661) 05 1,049,043 641,819 (368,726) 641,819 622,430 (19,389) 06 5,970,600 0 (5,765,290) 0 0 0

07A — 4,263,320 4,279,419 4,263,320 4,203,046 (60,274) 07B — 1,356,014 1,361,135 1,356,014 1,336,951 (19,063) 07C — 1,354,649 1,359,764 1,354,649 1,224,218 (130,431) 07D — 98,321 98,693 98,321 101,616 3,295

Total 31,000,000 27,351,661 2,479,054 27,351,661 27,249,347 102,314 a Cancellation during reallocation of loan proceeds on 20 September 1999. b Cancellation during loan closure. “—“ = not available.

9. Local Costs (Financed) - Amount ($) 13,871,092.00

- Percent of Local Costs 69.73 - Percent of Total Cost 41.69

C. Project Data 1. Project Cost ($ million)

Cost Appraisal Estimate Actual Foreign Exchange Cost 15.10 13.38

Local Currency Cost 27.90 19.89 Total 43.00 33.27

2. Financing Plan ($ million) Cost Appraisal Estimate Actual Foreign Local Total Foreign Local Total Borrower-Financed 0.00 5.70 5.70 0.00 3.82 3.82 Pourashavas 0.00 4.60 4.60 0.00 2.20 2.20 Beneficiaries’ Contributions 0.00 1.70 1.70 0.00 0.00 0.00 ADB-Financed 15.10 15.90 31.00 13.38 13.87 27.25 Total 15.10 27.9 43.00 13.38 19.89 33.27 ADB = Asian Development Bank; Pourashavas = municipalities.

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3. Cost Breakdown by Project Component ($ million)

Component Appraisal Estimate Actual A. Land 0.70 2.20

B. Civil Works 15.90 17.66

C. Equipment and Materials 7.90 4.75

D. Incremental O&M 1.30 0.67

E. Incremental Administration 0.90 0.08

F. Consulting Services, NGO Support and Trng. 5.00 7.29

G. Contingencies: a. Physical 2.90 0.00 b. Price 4.30 0.00

H. Interest and Services Charge: a. Financed Interest (relending) 3.00 0.00 b. Service Charge on ADB Loan 1.10 0.62

Total Project Cost 43.00 33.27 ADB = Asian Development Bank; NGO = nongovernment organization; O&M = operation and maintenance; Trng. = training.

4. Project Schedule

Item Appraisal Estimate Actual

Date of Contract with Consultants 1 Jul 1993 4 Apr 1995 Completion of Engineering Designs 1 Jun 1995 31 Dec 1996 Civil Works Contract Date of Award 1 Jan 1996 1 Sep 1998 Completion of Work 31 Jan 1999 30 Jun 2002 Equipment and Supplies First Procurement 1 Jul 1995 1 Apr 1997

Last Procurement 30 Jun 1996 20 Jun 2002

5. Project Performance Report Ratings

Implementation Period Ratings Development Implementation Objectives Progress

From 1 July 1994 to 30 June 1998 AAA AAA From 1 July 1998 to 30 June 1999 S U From 1 July 1999 to 31 December 2000 S S From 1 January 2001 to 30 June 2001 PS S

From 1 July 2001 to 30 June 2002 S PS AAA = fully successful; PS = partially successful; S = successful; U = unsuccessful

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D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person of

Days Membersa

Fact-Finding 7–19 Jun 1993 4 44 a, b, c, e Appraisal 28 Jul–10 Aug 1993 5 65 a, b, e, f, Inception 4–7 Apr 1994 1 3 a Review Mission 1 29 Sep–5 Oct 1995 2 12 a, g Review Mission 2 22–30 Jul 1996 1 8 a Review Mission 3 15–23 Oct 1996 1 8 a Review Mission 4 7–17 Apr 1997 1 10 a Midterm Review 10–20 Nov 1997 2 20 f, g

Review Mission 5 20–29 Apr 1998 1 9 f Review Mission 6 31 Aug–10 Sep 1998 2 20 b, f Review Mission 7 19–29 Apr 1999 2 20 f, g

Review Mission 8 30 Aug–9 Sep 1999 1 10 f Review Mission 9 2–13 Apr 2000 1 11 f Review Mission 10 2–12 Oct 2000 1 10 f Review Mission 11 16–25 Apr 2001 2 18 f Review Mission 12 21–28 Aug 2001 1 7 f Review Mission 13 6–26 May 2002 3 6 f, g Project Completion Reviewb 21 Sep–15 Oct 2003 4 55 f, d No. = number. a a - engineer, b - financial analyst, c - institutional specialist, d - staff consultant, e - urban development

specialist, f - programs officer, project implementation officer, and or project specialist, g - other categories. b The project completion report was prepared by R. Islam, Project Implementation Officer, Bangladesh Resident

Mission; Eusuf Ali and M. Rahman, staff consultants; and L. A. Khan, Project Analyst, Bangladesh Resident Mission.

I. PROJECT DESCRIPTION

1. The Second Water Supply and Sanitation Project was funded by the Asian Development Bank (ADB) to assist the Government in providing sustainable safe water supply and sanitation facilities and services in nine towns1; and (i) improve health conditions and introduce public health and hygiene concepts, (ii) enhance the living standard and life quality of households, and (iii) accelerate industrial and commercial development. 2. The Project’s objectives were to (i) increase overall water supply service coverage to 90% and provide coverage to an additional 630,000 people, (ii) increase sanitation coverage from 60% to 75% and provide coverage to an additional 130,000 people, (iii) integrate physical facilities with hygiene education and community participation, and (iv) strengthen Department of Public Health Engineering (DPHE) and respective pourashava (municipality) institutional capabilities. 3. Although piped water supply systems using groundwater sources existed in all project towns, the systems were inadequate and met only 10–30% of the actual demand through intermittent supply (3–8 hours daily). The existing systems were old and dilapidated, requiring rehabilitation and expansion to increase coverage and operational efficiencies. Large numbers of households obtained water from unsafe sources, such as hand-operated tube wells and dug wells and ponds that were generally contaminated by wastewater that percolated through the subsoil. Management and disposal of solid waste and human excreta was inefficient and unhygienic. In the past, water supply and sanitation services development lacked adequate pourashava and beneficiary planning and participation. Although pourashavas are responsible for providing these services, pourashavas lacked adequate capabilities in technical, administrative, financial, and community mobilization. 4. The Project comprised the following three major components:

(i) Part A—Water Supply Services. This component include (i) rehabilitation of

existing facilities and expansion of services; (ii) installation of 22,000 new service connections; and (iii) provision of credit, through revolving funds, for the installation of 14,600 hand-pump tube wells.

(ii) Part B—Sanitation Services. This component covered an environmental

sanitation program for Bagerhat, Faridpur, Jamalpur, and Tangail that included improvement in solid waste management, construction of 18 public toilets and about 10 kilometers (km) of roadside drains, and conduct of hygiene education campaigns. The component also covered a household sanitation program for all nine pourashavas, to provide microcredit through revolving funds for the construction of 24,000 latrines and 17,000 on-site sullage tanks.

Part C—Project Management and Institutional Development. This component comprised the provision of equipment, logistics support, training and consulting services, and assistance related to operations to the Dhaka Project Management Unit (PMU) and project implementation units (PIU) established at each project pourashava.

1 Bagerhat, Dinajpur, Faridpur, Jamalpur, Kushtia, Pabna, Rangpur, Sylhet, and Tangail.

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5. ADB also provided, together with the loan, two technical assistance2 (TA) undertakings, to help strengthen DPHE and project pourashavas in urban water supply and sanitation facility operation and maintenance (O&M).

II. EVALUATION OF DESIGN AND IMPLEMENTATION

A. Relevance of Design and Formulation

6. The Project was highly relevant to ADB’s sector strategy for urban water supply and sanitation in Bangladesh, which includes (i) increasing coverage, especially for the urban poor; (ii) promoting 24-hour supply; (iii) reducing system waste and leakage; (iv) strengthening cost recovery and financial management; (v) improving financial self-sufficiency, through improved billing, revenue collection, and tariffs; (vi) improving pourashavas’ system O&M, system administration, and financial management capabilities; (vii) integrating water supply development with wastewater management, water drainage, and solid waste management; and (viii) facilitating community participation, to achieve long-term service sustainability through community management of services. 7. The Project was consistent with the Government’s policies and ADB’s strategy. The Government attaches high priority to water supply and sanitation services improvement in urban and rural areas. The Government set a target to achieve sanitation for all by 2000. This target was later extended to 2010. The Fourth Five-Year Plan (FY1991–FY1995) and Fifth Five-Year Plan (FY1996–FY2000) stressed the need for water supply and sanitation, especially in urban areas, with particular importance placed on servicing slums and fringe areas, and consistently continued to allocate increased funds and resources. 8. The Project was relevant to the Government’s decentralization policy and beneficiary participation. In the past, pourashava involvement was limited, and DPHE was responsible for water supply and sanitation system development. The Project relied highly on pourashava participation in urban water supply and sanitation facility development and management, with beneficiary participation. The Project took into account government experience gained during the first International Drinking Water Supply and Sanitation Decade (1981–1990). The Project’s design was prepared based on the learned experience that community involvement, health education, and community motivation are essential prerequisites for sustainable water supply and sanitation system development. The Project was consistent with Fourth Five-Year Plan strategies that called for integrating water supply and sanitation services with health and hygiene education programs and increased participation of women, in particular, and the community at large. 9. The Project’s design also took into account the lessons learned during implementation of the first project3, which emphasized a need for greater pourashava and community involvement. In line with this, project design measures included (i) creating joint DPHE and pourashava implementation arrangements; (ii) assigning O&M responsibility to pourashavas, while retaining the authority to collect water taxes and administer water tariffs; (iii) revising annual tariffs, emphasizing attaining cost recovery targets; (iv) providing financial management assistance

2 ADB. 1993. Technical Assistance to the People’s Republic of Bangladesh for Institutional Strengthening of the

Department of Public Health Engineering. Manila. (TA 1979-BAN); ADB. 1993. Institutional Strengthening of Pourashavas for Urban Water Supply and Sanitation Services. Manila. (TA 1980-BAN).

3 ADB. 1982. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the

People’s Republic of Bangladesh for District Towns Water Supply. Manila.

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designed to improve pourashava performance; (v) incorporating rental charges for house connections as part of the water tariff structure, to improve affordability; (vi) involving pourashavas and communities in implementing health education and environmental sanitation programs; (vii) emphasizing training for pourashava personnel; and (viii) monitoring closely DPHE and pourashava implementation performance. B. Project Outputs

10. Despite implementation delays, overall project output was generally satisfactory. Project implementation performance is briefly summarized in the following paragraphs. Component progress and appraisal targets are compared in Appendix 1. 1. Part A: Water Supply Service 11. Production Tube Wells. Production tube wells were important, to increase safe water access. In total, 84 production tube wells were developed (21 old and 63 new) where 77 were planned. Although existing or old tube well rehabilitation was short of the target by 25%, the number of new tube wells developed exceeded the target by 29%. To increase safe water production and meet the needs of fast-growing urban populations, pourashavas attached higher importance to establishing new tube wells, instead of rehabilitating existing wells. Rehabilitation efforts focused more on replacing old electric motors and control panels and less on rehabilitating wells, to increase efficiency. Although actual implementation exceeded the target, several difficulties were encountered. These difficulties were related to installing new tube wells, selecting sites, acquiring land, boring wells,4 and getting electric connections, and they contributed to implementation delays. At Bagerhat, the production wells were constructed 10 km from the pourashava, due to the unavailability of a potential aquifer within or around the city. While almost all tube wells are operating with satisfactory mechanical efficiency, a few tube wells in Rangpur and Sylhet are not yet operational. This is due to a lack of pourashava initiative, a completion delay and a delay in the contractor’s handing over tube wells (Rangpur), and a delay in receiving an electric connection (Sylhet) from the Bangladesh Power Development Board (BPDB). While some tube wells in a few pourashavas run 18–20 hours each day, many tube wells in some pourashavas run for only 3–4 hours each day, to keep electricity costs low. 12. Water Treatment Plants. Given the presence of iron in the groundwater of all except Dinajpur pourashava, the demand for more water treatment plants was rousing. The Project rehabilitated four existing plants, with a total capacity of 1,150 cubic meters (m3), compared with a target of 880 m3 per day, and established 10 additional plants, with an aggregate capacity of 2,900 m3 per day, compared with a target of 2,650 m3 per day. The actual implementation exceeded the targets by 31% and 9%, respectively. This was due to rapid groundwater quality deterioration in some pourashavas, with harmful minerals, especially iron and arsenic, contaminating supplies.

13. The increased new plant capacity in Bagerhat, Faridpur, and Rangpur responded to the increased demand for water that resulted from rapid population growth and the increased concentration of minerals in the groundwater. All water treatment plants were designed to remove iron by using a sand filtration process. Given the presence of iron and arsenic in the water in Faridpur, however, the design included an integrated iron removal process that used a sand filtration and aeration process to remove arsenic. Treated water quality was satisfactory.

4 Particularly at Sylhet, due to unsuitable and unpredictable aquifer conditions.

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But, due to the groundwater’s high iron concentration, treatment plants’ sand beds required frequent backwashing, contributing to higher operating costs than envisaged at appraisal. 14. All new water treatment plants had the same specifications, although site iron content varied (ranging from 0.25 parts per million to 7.00 parts per million). Consequently, the plants at Faridpur, Jamalpur, and Kushtia are backwashed every alternate day. As a result, operating costs are considerably high. Backwashing frequency could have been reduced if the water treatment plants were designed according to site-specific iron concentrations, instead of using a prototyped design for all sites. The capacity of water treatment plants requiring frequent backwashing could be enhanced by increasing sand bed areas. As backwashing is a general water treatment plant phenomenon, suitable drainage facilities are needed to avoid overflow in neighboring localities. Overflow causes public inconvenience, which is the case in Jamalpur and other pourashavas where drainage is inadequate. Although chlorination provisions were included in all water treatment plants and necessary equipment was installed, the equipment was not used, because of the high quality of groundwater, as determined by staff members. Similar to tube well construction, new water treatment plant construction took longer than envisaged, due to site selection, land acquisition, facility construction, and electric connection difficulties. 15. Overhead Tanks. As envisaged at appraisal, the Project rehabilitated 15 existing overhead tanks. The Project also established new overhead tanks, with a total capacity of 8,388 m3, compared with a total capacity of 10,330 m3 envisaged at appraisal. The total overhead tank built-in capacity was 19% less than the appraisal estimate, due to the difficulty of getting sufficient land and a difficult land acquisition system. The production wells run for short durations and at less than capacity. Water treatment plants operate at low efficiency, due to high iron content, compared with designed discharge. These shortcomings lead to less than optimal overhead tank use, due to the need to continuously fill tanks and deliver water to ensure 24-hour supply. The pourashavas generally prefer to install more production wells and intermittently supply water directly to households without storing water in overhead tanks, to reduce operating costs. 16. Pipelines. Pourashavas needed to replace existing pipelines, to ensure that the pipes could withstand pressure, and lay new transmission, distribution, and reticulation lines, to support the program for expanding access to new households requiring new connections. The Project rehabilitated 251.30 km of existing pipelines, as envisaged at appraisal; constructed 11.31 km of new transmission lines, compared with the appraisal target of 46.50 km; established 353.50 km of distribution lines, out of the 338.53 km envisaged at appraisal; and laid 35.90 km of reticulation lines, out of the 208 km envisaged at appraisal. The transmission and reticulation line targets were revised by DPHE during implementation, based on actual need. The actual aggregate distances between production wells and overhead tanks were considerably reduced, and, in some cases, transmission and distribution lines became common, reducing the need for transmission lines. Similarly, DPHE reestimated and reduced reticulation line length, based on actual needs during implementation. As a result, pipes and accessories remained unused. The Project Completion Report (PCR) Mission recommended that DPHE hand over to the respective pourashavas the unused pipes and accessories procured under the Project. 17. Service Connections and Bulk Meters. The Project rehabilitated 12,437 existing connections, compared with the 17,095 envisaged at appraisal, and established 16,612 new connections, against the 21,936 targeted, representing 73% and 76% achievements, respectively. The less-than-expected achievement was due mainly to the people’s unwillingness

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to accept water connections, because of high initial connection charges; irregular water supply; low water pressure; and sufficient availability of water from alternate sources, such as hand-operated tube wells. The Project provided 104 bulk meters of water at production tube wells, while 60 meters were envisaged at appraisal. 18. 24-hour Water Supply Pilot Program. The Project provided a pilot 24-hour experimental water supply program in Faridpur. The program operated for some time but could not continue, for the following reasons. The operating cost was higher than the cost recovered through the fixed monthly billing system, and full cost recovery was not feasible, as the existing water tariff was low. Also, the operating cost was increased, due to water waste resulting from existing dilapidated pipeline leakage; indiscriminate open water point operation; and water supply abuse by some households that used water for pond fish farming and construction, agriculture, and other uses without any cost recovery. Operating a 24-hour water supply program is feasible, with pipeline rehabilitation, proper open water point management, adequate awareness raising against water abuse, water tariff increases to full cost-recovery level, and water meter introduction in all connections. While people might oppose a water tariff increase, pourashavas can communicate the importance of paying for the cost of water consumed and ensure efficient and transparent service. Water meters must be introduced for all connections. Meter cost should be recovered in easy installments added to the monthly line charge, until the cost is fully recovered. 2. Part B: Environmental Sanitation 19. The Project provided for environmental sanitation improvement in four pourashavas (Bagerhat, Faridpur, Jamalpur, and Tangail), through environmental sanitation services and household sanitation facilities. Environmental sanitation services included the provision of landfill sites, rubbish bins, public toilets, small trucks, large trucks with attached trailers, and nonmotorized pushcarts. Household sanitation facilities included the provision of hand-operated tube wells, household latrines, and on-site sullage tanks, through a revolving microcredit system and with the help of selected nongovernment organizations (NGOs). 20. Environmental Sanitation Services. The appraisal target of three landfill sites5 could not be established, due to the nonavailability of suitable land, and a total of 502 rubbish bins were established, out of 527 proposed, for solid waste collection. Full bin use and proper maintenance could not be ensured everywhere. Additionally, the Project provided 4 trucks, 4 trucks with attached trailers, and 120 pushcarts, as targeted. The trucks were extensively used for conservancy services, but the pushcarts were not regularly used. Also, the Project established 16 public toilets at four pourashavas (Bagerhat, Faridpur, Jamalpur, and Tangail). The public toilets were leased to private operators for O&M. 21. Household Environmental Sanitation. Considering that relatively poor and disadvantaged people live in fringe areas, with no access to piped water supply and sanitation, the Project provided for hand-operated tube wells, household latrines, and on-site sullage tanks. The component was implemented through selected NGOs, under a revolving fund credit facility. The Project provided 21,299 hand-operated tube wells, compared with the 14,600 envisaged at appraisal, and established 26,571 household latrines, against the 24,150 envisaged at appraisal. The appraisal targets were exceeded by 46% and 10%, respectively. The on-site sullage tanks,6 however, did not receive much demand, as only 4,367 out of total appraisal

5 Two in Tangail and one in Faridpur. 6 Household wastewater soak pits.

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target of 17,000 could be established. The low demand for on-site sullage tanks was attributed to a number of reasons. The people living in the fringe areas generally consider on-site sullage tanks an extra investment without any direct benefit, and some households discharged wastewater in nearby canals and ditches and rivers. Demand existed for on-site sullage tanks in densely populated core areas that lacked adequate drainage facilities. 22. Flood Damage Rehabilitation. The Project provided some funds to meet the repair costs of water and sanitation pipelines, pump houses, production wells, and hand-operated tube wells, under an emergency flood rehabilitation project7. An amount of Tk19.10 million was spent to repair and bring damaged facilities to operation. 3. Part C: Project Management and Institutional Development 23. The Project provided institutional support to the Dhaka PMU and PIUs at each project pourashava, through providing training and consulting services, office equipment, and necessary vehicles. The equipment and vehicles (Appendix 2) enhanced pourashava solid waste disposal capacities and increased office management efficiency. The Project provided financial, technical, and managerial training to pourashava staff members. Emphasis was given to adopting commercial accounting practices. The training types provided for various DPHE and pourashava staff members are shown in Appendix 3.

24. The Project also provided necessary consulting services to the Dhaka PMU and to PIUs. At the PMU level, the consultant team comprised an international team leader (58 person-months) and domestic experts (about 900 person-months). A short-term international expert also was provided (25 person-months). At the PIU level, inputs were provided totaling 1,334 person-months. The related advisory TAs (footnote 2) were also provided, to strengthen DPHE and pourashavas. TA 1979-BAN conducted an extensive investigation into DPHE’s strengthening needs and developed an action plan detailing actions for the short, medium, and long terms. The TA also helped in the groundwork preparation for the formulation of a national safe water supply and sanitation policy. TA 1980-BAN investigated all nine pourashavas, conducted a needs assessment, arranged workshops and identified training needs, and prepared a 5-year comprehensive training program. C. Project Costs

25. At appraisal, total project cost was estimated at $43.00 million. The Project’s actual total cost was $33.27 million. ADB and government contributions to the Project’s actual total cost were $27.25 million (82%) and $3.82 million (11%), respectively. Pourashava contributions were $2.20 million (7%), compared with an appraisal estimate of $4.60 million. ADB financed $13.87 million, to meet the local currency cost that was 70% and 42% of the total local currency cost and total project cost, respectively. The substantial cost savings resulted from the competitive bidding process; the taka’s devaluation against the US dollar; and a water supply works reduction, especially for transmission and reticulation pipelines and service connections. Consequently, surplus loan funds, amounting to $7.00 million, were reallocated for flood damage rehabilitation works under another ADB loan (see footnote 7). In addition, $2.50 million was cancelled on 20 September 1999. However, the Project’s cost reduction did not affect the Project’s scope. The Government made available counterpart funds, as needed. Project cost details are provided in Basic Data. 7 ADB. 1998. Flood Damage Rehabilitation Project, Manila.

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D. Disbursements

26. The actual loan disbursement was $27.25 million, or about 82% of the total project cost, as of the loan closing date (Basic Data). ADB’s standard disbursement procedures were followed by the Project and did not create any problems affecting implementation. The imprest ceiling was $2.10 million, and the total disbursement was $16.94 million, through the imprest account, with an annual average turnover ratio of 1.10. The imprest account was fully liquidated before the loan closing date. The imprest fund ensured an uninterrupted flow of funds for implementing the Project’s activities. E. Project Schedule

27. The Project was 33 months delayed, compared with the appraisal implementation schedule. The loan closing date was extended three times, due to implementation delays. The loan was finally closed on 28 October 2002. Project implementation was delayed due to time lapses in selecting consultants, poor performance of a few civil works contractors, land acquisition issues, materials procurement matters, NGO selection procedures, water supply facilities construction and installation holdups, and electric connection difficulties involving the Bangladesh Power Development Board (BPDB). However, the project implementation period was shorter than that of the first water supply project, which took 102 months to complete, compared with its 50-month appraisal estimate (footnote 3). Appraisal and actual implementation schedules are compared in Appendix 4. F. Implementation Arrangements

28. DPHE, as the Executing Agency, provided overall technical supervision and guidance to pourashavas in implementing different project components in respective towns. The Project was implemented by the PMU established within DPHE. The PMU was headed by a full-time project director and administered major supply contracts; coordinated consultant services; and assisted pourashavas with necessary staff member support, through DPHE’s district network. 29. A PIU was established in each pourashava. Each PIU was headed by a chairperson. Each chairperson was the pivot point for each PIU’s activities. The DPHE district executive engineer assisted each chairperson in implementing piped-water line rehabilitation and construction, and executive engineers of each pourashava helped in O&M and environmental sanitation and supervising the construction of all components. Selected NGOs were engaged to run the household environmental sanitation program, through the revolving funds established at the PIU level (para.21). 30. An interministerial project implementation coordination committee that was chaired by the Local Government Division’s (LGD’s) secretary and included Ministry of Finance and Planning representatives, DPHE’s chief engineer, and the PMU’s project director reviewed project implementation, coordinated with other ministries, and provided useful guidance. The committee met when requested by DPHE and discussed project-related problems and issues and sought resolutions. A water supply and sanitation committee, headed by a pourashava chairperson, acted as the local-level coordination committee for project implementation and reviewed progress and resolved project implementation problems and issues at the field level. 31. The key element of the implementation arrangements was the participating NGOs’ role in implementing one major project component: the household environmental sanitation component. Given the pourashavas’ limited manpower and outreach capacity to serve people in

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fringe areas and lack of community development and social mobilization experience, the NGOs’ implementation capabilities were appropriate. Without NGO participation, activities such as survey analysis, social preparation and motivation, beneficiary selection, credit management, and repayment collection might not be feasible and cost-effective for pourashavas. G. Conditions and Covenants

32. The conditions and covenants were generally met (Appendix 5). Most time-bound action plan targets were complied with after some delay. A most important achievement under the action plan was government approval of a national policy for drinking water supply and sanitation in 1998. In addition, the Government paid all charges for water supply and holding tax arrears to pourashavas in 1995 and 2002. These payments helped pourashavas’ substantially and to improving their collection efficiency, but the payments could not be regularized, due to the absence of clear government procedures for annual demand estimates and resource allocations. Payments made by pourashavas to the electricity supply agency, toward electricity arrear charges, remained unsettled. The pourashavas continued to increase their debt to this agency at an average rate of Tk71,000 per pourashava per month. Water tariff collection efficiency improved from generally less than 50% in 1995 to an average of 84% in 2002 but could not achieve the 90% targeted in the action plan. Only four of nine pourashavas partly increased water tariffs toward full recovery of O&M and depreciation costs and water supply facility debt service costs. The pourashavas were generally reluctant to pursue new water tariff rates. The ongoing ADB-assisted Urban Governance and Infrastructure Improvement Project8 and a related advisory TA are expected to make necessary amendments in the existing 1977 pourashava ordinance and recommendations to overcome the previously mentioned generic problems in Bangladesh’s urban sector. H. Related Technical Assistance

33. The main objectives of the two related TAs (footnote 2) were to develop DPHE’s and pourashavas’ overall project planning and implementation and financial management capacities. The TAs were implemented satisfactorily by international and domestic consultants and made effective contributions toward DPHE and pourashava institutional development. DPHE benefited in terms of urban infrastructure planning and design involving water supply and sanitation and implementing development projects in association with pourashavas. The pourashavas benefited most in terms of improving institutional capacity to supervise water supply and sanitation facilities construction, environmental sanitation services implementation, and community-based services provision for household environmental sanitation. The formulation of the TAs was relevant to project objectives, and the terms of reference were realistically achievable. DPHE and the pourashavas provided necessary administration and logistical support, and ADB closely monitored TA implementation progress. TA outputs were satisfactory, as they adequately strengthened DPHE and pourashava institutional capabilities. TA completion reports were prepared immediately after completion and were circulated in December 2001 (TA 1979-BAN) and in March 2002 (TA 1980-BAN). Technical assistance completion reports rated the TAs successful. I. Consultant Recruitment and Procurement

34. Procurement was carried out in accordance with ADB’s Guidelines on Procurement without major problems. However, delays occurred in recruiting consultants, which contributed

8 ADB. 2002. Urban Governance and Infrastructure Improvement Project. Manila.

9

to implementation delays. Protracted delays occurred in procuring vehicles and office equipment and, particularly, in procuring water supply pipes and accessories. The delays were due to DPHE staff members’ inadequate procurement experience and skills, especially their lack of familiarity with ADB’s procurement system. Difficulties occurred when various pourashavas selected large numbers of contractors for various types of civil works and engaged participating NGOs. J. Performance of Consultants, Contractors, and Suppliers

35. Consultant performance was satisfactory. Given that pourashavas lacked project implementation and financial management experience, consultant assistance to project management and institutional strengthening played a very important role in helping the PMU and the PIUs complete project activities throughout the Project’s duration. The performance of some civil works contractors was unsatisfactory, because these contractors were generally responsible for delaying the completion of contracts, which resulted in loan closing date extensions. However, supplier performance and the quality of goods supplied were generally satisfactory. Participating NGO services were also satisfactory. K. Performance of the Borrower and the Executing Agency

1. The Borrower 36. The Borrower’s performance was satisfactory during project preparation and implementation. During preparation, the Borrower attached high priority to urban water supply and sanitation and pourashavas’ sustainable technical and financial institutional strengthening, through involving them in establishing, maintaining, and managing water supply and sanitation facilities. Moreover, the Borrower’s performance in providing counterpart funds, monitoring progress through a project steering committee headed by LGD’s secretary, and coordinating with other related line ministries and departments was appreciable. The Borrower deserves credit also for involving NGOs in the implementation and management of a household environmental sanitation program, particularly of its revolving fund. 2. Executing Agency 37. DPHE, as the Executing Agency, provided necessary technical support, through the PMU, for the Project’s generally successful implementation. Implementation delays were generally due to the institutional weaknesses of the respective PIUs and the poor performance of the civil works contractors they had engaged. However, DPHE’s role, which was to coordinate with LGD and participating pourashavas to ensure the timely completion of several time-bound activities, was not always adequate. The reason for this might be that many required activities were politically sensitive, such as setting tariffs, collecting revenue, paying bills and dues, selecting sites, etc., and therefore not very easy tasks to accomplish. Given the country conditions and political environment, DPHE, as the Executing Agency, did a good job by completing the Project generally satisfactorily. L. Performance of the Asian Development Bank

38. ADB’s performance was highly satisfactory. ADB (i) took special interest in increasing access to safe water and sanitation, as a means for sustainable poverty reduction; (ii) carried out an urban sector development strategy and attached heightened focus to the needs of poorer individuals living in slums and fringe areas and provided special designs for safe water and

10

sanitation so that poorer individuals were not bypassed; (iii) conducted extensive consultations with concerned government agencies and civil societies and used its previous urban water supply and sanitation experiences in similar countries to design the Project; (iv) carried out detailed water supply and sanitation feasibility studies in selected pourashavas, through project preparatory technical assistance;9 (v) coordinated successfully, from project preparation through implementation, with the Borrower, Executing Agency, and the PIUs, from ADB headquarters and its Dhaka-based Bangladesh Resident Mission; (vi) attached high priority to effective project implementation and fielded as many as 14 review missions, including a midterm review mission in late 1997; (vii) brought to the Borrower’s and the Executing Agency’s attention issues that hindered implementation; (viii) responded promptly to the Borrower’s and the Executing Agency’s requests, offering assistance related to implementation problems and disbursement claims; and (ix) was instrumental in complying with some major loan covenants, such as making a special allocation for project pourashavas to pay holding tax arrears of government offices.

III. EVALUATION OF PERFORMANCE

39. Project design and implementation and operating performance were evaluated based on relevance; efficacy in achieving purpose; efficiency in achieving outputs and sustainability; and impacts related to environmental, sociocultural, and other issues. The evaluation results are discussed in the following paragraphs. A. Relevance

40. The Project’s design was highly relevant to ADB’s Bangladesh operational strategy, aiming at poverty reduction and emphasizing greater private sector participation and market-oriented improvements in efficiency. The Project was also relevant to ADB’s medium-term operational strategy, targeting increasing access of the poor to urban facilities and environmental improvement and protection. Given the high demand for safe water, and given the poor sanitation facilities and fast urbanization rate, the Project’s design was justified. The Project’s design for pourashava institutional strengthening was highly relevant to improving pourashava technical, financial, and management capabilities, to meet the challenge of future urban service needs. 41. The design was highly relevant to the critical safe water shortfall and fragile environmental sanitation conditions. The groundwater of project towns, except for Dinajpur, contains high iron concentrations that were harmful to humans. Similarly, people living in fringe areas of towns lacked access to safe water and sanitation and were subjected to serious health and hygiene hazards. The Project’s design for water treatment and providing safe water and environmental sanitation was a boon for the urban population, especially the poor slum and fringe area dwellers who were generally bypassed by development programs. The Project’s design for involving NGOs in the implementation of household water supply and environmental sanitation was very relevant, as NGOs’ outreach capacity and community development and microcredit management was well recognized. B. Efficacy in Achievement of Purpose

42. The Project well achieved its purposes, which were to improve health conditions, enhance urban household life quality, and accelerate commercial development through increasing availability of and access to safe water and improved environmental sanitation

9 ADB. 1992. Second Water Supply and Sanitation. Manila.

11

services and facilities. The immediate objective of increasing overall water supply service coverage to 90% was also achieved. The Project covered more than an additional 630,000 people; increased sanitation coverage from 60% to over 75%, covering an additional 130,000 people; integrated physical facilities with hygiene education and community participation; and strengthened DPHE and pourashava institutional capabilities. Pourashavas enhanced their technical capability for municipal facilities supervision and O&M and improved their financial performance, especially in tax assessment and collection (Appendix 6). However, performance in reducing liabilities for electricity bills was marginal. The PCR Mission reevaluated the financial internal rate of return (FIRR) of project and pourashava water supply facilities (Appendix 7). The financial reevaluation indicated that the PCR estimates for FIRR were generally lower than appraisal estimates. The appraisal FIRR estimates were between 4.0% and 9.0%, while the PCR estimates were between –2.7% and 5.2%. The PCR estimates for FIRR became lower than appraisal estimates, due to lower achievement of household connections (75% achieved) and a failure to increase the water tariff as expected. The PCR Mission also estimated the cost of water produced and supplied by project facilities. Water cost was found to be comparatively cheaper than alternate sources (Appendix 6). The Project was therefore efficacious in achieving its purposes. C. Efficiency in Achievement of Outputs and Purpose

43. Project implementation was efficient in physical and financial terms. The Project enhanced safe water production in all nine pourashavas and increased household access and largely met safe water demand. Total water production volume in nine towns increased from below 30,000 m3 per day in 1995 to about 65,000 m3 per day in 2002. As the built-in capacity of the existing production tube-wells and overhead tanks are not fully utilized the Project outputs could be further increased in the future by only increasing pumping hours. The pourashavas, with NGO help, covered 21,999 households with hand-operated tube wells, 26,571 households with sanitary latrines, and 4,367 households with on-site sullage tanks. The pourashavas also multiplied the revolving fund, updated tax assessment, increased income from holding taxes and water tariffs, and improved billing and accounting systems. All pourashavas reduced their electricity liability, by paying a portion of current bills, and income expenditure gaps. The Project was therefore efficient in achieving its output and purpose. D. Preliminary Assessment of Sustainability

44. The future sustainability of operations of completed project facilities was supported through training of operations staff members at pourashavas. Staff member training covered key operational areas, such as technical matters, maintenance issues, record keeping, and operations management. Particular attention was given to each iron-rich installation, where close and frequent monitoring, to guard against iron buildup in pumps, valves, and flow meters, was very important. In addition, extensive training was provided to upgrade pourashavas’ administrative and financial capacities, to help them become financially self-sufficient and guarantee the sustainability of investments made under the Project. As reflected in the overall comparatively better income to expenditure ratios and observed by the project management team during implementation, training efforts for administrative and financial management need to be continued. Some important improvements for sustainable project benefits were not yet achieved, including (i) increased production volumes and hours of water supply, (ii) sufficient understanding and willingness to use different zones to increase water pressure and improve distribution, (iii) adequate ability to increase and collect water tariffs, and (iv) regular electricity bill payment. NGO involvement was necessary in achieving household environmental sanitation program targets, but the program lacked adequate support and interest in pourashavas to

12

continue after project completion. However, renewed pourashava commitments and close monitoring are essential to making appropriate use of the revolving fund established at each pourashava. The overall project facilities and benefits, thus, are less likely to be sustainable. E. Environmental, Sociocultural, and Other Impacts

45. The Project had no adverse environmental impacts. Rather, it improved the environmental sanitation status, through creating better environmental systems for managing excreta and wastewater and solid waste and introducing health and hygiene education at household and neighborhood levels. Project implementation avoided land acquisition, as this involved resettlement and compensation, through shifting sites for project facilities from one place to another until a suitable piece of land was found. Indeed, this partly caused implementation delays (para.27). The Project avoided temporary but likely adverse effects during construction by carefully designing environment sensitive components. The Project rehabilitated 12,437 existing connections, established 16,612 new connections, and provided 21,299 hand-operated tube wells, to ensure a safe water supply that has indirect impacts on reducing the incidence of waterborne diseases, such as diarrhea, as manifested by PCR survey findings (Appendix 6). The Project also provided 26,571 sanitary latrines and 4,367 on-site sullage tanks that improved household sanitation standards, as confirmed from survey findings of reduced worm infection during the Project. The Project enhanced sanitation and hygiene education awareness of people in fringe areas, as demonstrated by improved health and hygiene, and created a rousing demand for hand-operated tube wells and sanitary latrines.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment

46. ADB’s project performance reporting system rated the Project partly successful, on the basis of implementation progress, due to an inordinate 33-month implementation delay. The project performance reporting system, however, rated the Project successful, in terms of achieving development objectives. Overall project success was assessed based mainly on certain key achievements. These include (i) meeting project physical works targets; (ii) establishing fully operational pourashava water supply and sanitation committees at all project pourashavas; (iii) preparing and approving the April 1999 bylaws under the 1977 pourashava ordinance to allow pourashavas to determine their own water supply levels and charges; (iv) introducing an essential assistant waterworks engineer position at pourashavas, to take responsibility for O&M and ensure service quality; (v) introducing standard accounting systems and record keeping procedures at pourashavas; (vi) piloting a 24-hour water supply program in Faridpur that provided several useful experiences for future expansion; (vii) improving overall environmental household sanitation; and (viii) adopting a national safe drinking water and sanitation policy. Considering the overall achievement of project objectives and benefits to the urban poor, the Project is rated successful. B. Lessons Learned

47. The water supply facilities established under the Project were adequate to fully meet the current demand, except in Sylhet, where the facilities had to be operated for a longer time than at present, involving higher operating costs. The optimized use of potential water facility capacity was constrained by inadequate revenue collection, resulting from low water tariffs in project pourashavas. The 24-hour water supply pilot program at Faridpur could not be maintained, primarily for this reason. The pourashavas face a dilemma concerning 24-hour

13

water supply. They can provide 24-hour water supply by either increasing or continuing existing low water tariffs. The latter option, however, while allowing leaders to remain politically favored, will result in supplying as little water as possible and earning low incomes. 48. Instead of adopting a prototyped design, water treatment plants should be designed based on water quality, especially when the presence and concentration of iron, arsenic, and other harmful elements are factors. When water quality deteriorates from the increased presence of iron and or arsenic, operating costs and water losses due to frequent backwashing increase. C. Recommendations

1. Project-Related

49. Future Monitoring. Rangpur’s four new overhead tanks (three not yet handed over to the pourashava and one production well not started) and Sylhet’s one production well (electric connection not yet obtained) should immediately be made operational. 50. The surplus pipes and accessories already handed over to the respective pourashavas should be properly used for future rehabilitation and expansion of access and new connections. 51. In some pourashavas with shallow water tables, such as Dinajpur, DPHE should continue to randomly check very shallow tube well (26–36 feet) water quality, as contamination of shallow strata water is likely, due to sanitary and wastewater disposal at the same underground level.

52. Further Actions or Follow-Up. Water supply facilities’ potential installed capacity should be gradually harnessed, by increasing present operating hours to meet increasing water demand. Under LGD guidance, DPHE, in association with all nine pourashavas, should prepare action plans for improving project facility operating performance and submit these to ADB by 30 September 2004. The pourashavas should continue efforts to improve financial performance, and LGD should monitor the progress annually. 53. Water tariffs should be increased for all types of connections, to fully cover water supply O&M costs. Simultaneously, pourashavas can increase water tariff collection efficiency, through public motivational campaigns that convince the people to pay adequately and regularly for better municipal services. LGD may assist in collecting water tariffs from public sector users who are chronic defaulters, through coordination with the concerned departments and agencies. 54. Municipalities should continue efforts to update holding tax assessment for public and private households and other establishments through routine and periodic assessment programs. Simultaneously, the holding tax should be gradually increased to an appropriate level, to increase pourashava income. Pourashavas should also increase holding tax collection efficiency for public and private taxpayers. LGD may assist in allocating adequate budget for holding tax of public establishments who are chronic defaulters. An ongoing ADB-assisted advisory TA10 is expected to bring, within the next 2–3 years, substantial improvements in the entire urban tax assessment system, through adopting and or amending the existing 1977 pourashava ordinance.

10 ADB. 2002. Supporting Urban Governance. Manila.

14

55. Additional Assistance. Pourashavas do not generally need any further assistance in concerning the O&M of completed project facilities, provided the pourashavas continue to generate adequate revenue from the facilities. However, because of the area coverage expansion (averaging 25% during the last 10 years) of the pourashavas and their increase of population by about 40% between 1991 and 2001, the demand for water supply in project pourashavas is still substantial. These pourashavas essentially require further assistance for more institutional strengthening, especially for financial management. External assistance, including private sector investment, might be required to meet the increasing demand for safe water supply in secondary-town-level pourashavas. However, the Government must ensure a congenial environment for private sector investments, through establishing the regulatory body that ADB suggested for the country in 2002. 56. To establish sustainable 24-hour water supply, pourashavas must ensure sound O&M; minimum system loss; sound financial status, with full cost recovery through introducing water meters; sufficient numbers of production wells and overhead tanks; expanded transmission and distribution pipeline networks; and contingency backup support services, to meet emergency situations. A full cost recovery program needs good governance, water abuse awareness campaigns, and regular water tariff payment. Meter costs can be recovered in easy installments, paid with line charges in every monthly bill until the cost is fully recovered. 57. Timing of Project Performance Audit Report Preparation. Given the need for enough time to fully operate all facilities and services, the project performance audit report may be undertaken during late 2005 or thereafter. 2. General 58. In designing future water treatment plants, water quality should be considered separately for each pourashava, to ensure adequate and appropriate backwashing arrangements. 59. In line with the ongoing Urban Governance and Infrastructure Improvement Project (footnote 8), any future projects in the sector may be divided into three integrated phases, to minimize implementation delays. The phases are (i) governance improvement and improvement of community participation, financial performance, project planning, and site selection for facilities and land availability confirmation; (ii) actual construction, monitoring and supervision of project activities, and finalization of O&M arrangements; and (iii) completed facilities commissioning, to ensure appropriate O&M and provide hands-on operational training for pourashava staff members.

60. In future projects that are similar and comparable, loan covenants may continue to be in the existing form but with more realistic and achievable targets.

Appendix 1 15

Project component UnitsAPR ACT APR ACT APR ACT APR ACT APR ACT

1. Part A: Water Supply ServiceProduction Tubewells - Reh (replace) no. 0 0 5 3 3 2 2 2 3 2 - New no. 5 6 3 5 5 5 4 6 4 6Treatment Plant - Reh m3/h (no.) 100(1) 300(1) 0 0 300(1) 400(1) 0 0 0 0 - New m3/h (no.) 0 0 0 0 250(1) 300(1) 450(1) 600(2) 600(2) 900(3)Overhead Tanks - Reh no. 1 1 3 3 1 1 2 2 2 2

- New m3 (no.) 680(1) 680(1) 0 0 0 0 0 0 1,250(2) 680(1)Pipelines - Rehabilitation km 18.40 18.40 37.50 37.50 29.60 29.60 22.50 22.50 39.50 39.50

- Transmission km 21.00 9.60 0 0 1.50 0 1 0 9 0- Distribution km 15.70 21.50 44.50 53.40 31.50 37.80 22.20 25.30 50.00 29.70- Reticulation km 14.00 0.90 33.00 1.00 15.00 0.80 13.50 3.40 35.00 2.90

Service Connections - Reh no. 1073 1065 1206 1118 1745 842 1632 790 2129 829- New no. 1067 1160 1614 2,100 1214 1,950 871 1,200 3575 920

Bulk Meters no. 5 10 6 9 6 9 6 12 6 142. Part B: Environmental SanitationB1: Environmental Sanitation Service Landfill Site ha 0 0 0 0 1 0 0 0 0 0 Rubbish Bins no. 125 112 0 0 163 170 108 89 0 0 Public Toilets no. 4 2 0 0 7 7 3 3 0 0 Trucks no. 1 1 0 0 1 1 1 1 0 0 Tractor Trailers no. 1 1 0 0 1 1 1 1 0 0 Pushcarts no. 28 28 0 0 34 34 27 27 0 0B2: Household Environmental Sanitation Hand tubewells Program no. 1,350 1,611 800 1,676 1,150 1,369 3,300 5,298 1,300 1,845 Household Latrines no. 1,700 2,515 2,450 3,144 2,100 2,182 3,100 3,619 2,700 2,554 Onsite-sullage tanks no. 1,400 539 2,050 1,251 1,200 553 2,400 1,010 1,900 3733. Flood Damage Rehabilitation Repairsto pipelines, pump houses, production LS(lakh) Tk17.37 Tk22.93 Tk13.86 Tk24.85 Tk30.68wells and hand tubewells

Project component UnitsAPR ACT APR ACT APR ACT APR ACT APR ACT

1. Part A: Water Supply ServiceProduction Tubewells - Reh (replace) no. 3 2 6 5 3 3 3 2 28 21 - New no. 4 9 9 6 7 13 8 7 49 63Treatment Plant - Reh m3/h (no.) 0 0 180(1) 300(1) 0 0 300(1) 150(1) 880(4) 1,150(4) - New m3/h (no.) 0 200(1) 250(1) 300(1) 600(2) 0 500(2) 600(2) 2,650(11) 2,900(10)Overhead Tanks - Reh no. 2 2 2 2 1 1 1 1 15 15

- New m3 (no.) 1,000(2) 1,360(2) 2,040(3) 2,040(3) 4,000(4) 2,268(2) 1,360(2) 1,360(2) 10,330(14) 8,388(11)Pipelines - Rehabilitation km 28.00 28.00 24.40 24.40 28.70 2870.00 22.70 22.70 251.3 251.3

- Transmission km 1 0.00 4.50 0 3.50 1.44 5.00 0.27 46.5 11.31- Distribution km 35.20 41.70 44.75 57.10 57.50 51.90 37.18 35.10 338.53 353.50- Reticulation km 16.50 6.00 24.00 7.90 32.00 8.20 25.00 4.80 208 35.90

Service Connections - Reh no. 2,488 1,792 2,022 1,720 3,000 2,423 1,800 1,858 17,095 12,437 - New no. 2,314 1,700 3,168 4,455 4,322 317 3,791 2,810 21,936 16,612

Bulk Meters no. 7 12 10 13 6 12 8 13 60 104 2. Part B: Environmental SanitationB1: Environmental Sanitation Service Landfill Site ha 0 0 0 0 0 0 2 0 3 0 Rubbish Bins no. 0 0 0 0 0 0 131 131 527 502 Public Toilets no. 0 0 0 0 0 0 4 4 18 16 Trucks no. 0 0 0 0 0 0 1 1 4 4 Tractor Trailers no. 0 0 0 0 0 0 1 1 4 4 Pushcarts no. 0 0 0 0 0 0 31 33 120 120B2: Household Environmental Sanitation Hand tubewells Program no. 1,600 2,461 1,700 2,228 1,300 952 2,100 3,859 14,600 21,299 Household Latrines no. 2,800 2,834 3,150 3,274 3,000 1,577 3,150 4,872 24,150 26,571 Onsite-sullage tanks no. 1,850 243 1,900 367 2,100 4 2,200 27 17,000 4,367 3. Flood Damage Rehabilitation Repairsto pipelines, pump houses, production LS(lakh) Tk20.59 Tk32.30 Tk24.48 Tk4.77 Tk191.83wells and hand tubewells

Source: Department of Public Health Engineering, Pourashavas, and participating non-government organizations.

IMPLEMENTATION PERFORMANCE: PHYSICAL PROGRESS - APPRAISAL VS ACTUAL

Total

Bagerhat Dinajpur Faridpur Jamalpur

Pabna Rangpur Sylhet Tangail

Kushtia

ACT=actual; APR=appraisal; h=hour; ha=hector; km=kilometer; lakh=100,00; LS=lumpsum; no.=number; Reh=rehabilitation; Tk=Bangladesh Taka; m3 = cubic meter.

16

PMU Bagerhat Dinajpur Faridpur Jamalpur Kushtia Pabna Rangpur Sylhet Tangail

Jeep (nos.) 3 3 0 0 0 0 0 0 0 0 0

Computer (nos.) 31 4 3 3 3 3 3 3 3 3 3

Voltage stabilizer (nos.) 31 4 3 3 3 3 3 3 3 3 3

UPS system (nos.) 31 4 3 3 3 3 3 3 3 3 3

LaserJet printer (nos.) 10 1 1 1 1 1 1 1 1 1 1

Dot matrix printer (nos.) 9 0 1 1 1 1 1 1 1 1 1

Facsimile (nos.) 9 0 1 1 1 1 1 1 1 1 1

Photocopier (nos.) 10 1 1 1 1 1 1 1 1 1 1

Pick-up vans 9 0 1 1 1 1 1 1 1 1 1

Motorcycles (nos.) 36 0 4 4 4 4 4 4 4 4 4

Airconditioners (nos.) 13 4 1 1 1 1 1 1 1 1 1

Garbage dump truck (nos.) 4 0 1 0 1 1 0 0 0 0 1

Tractor with two trailers (nos.) 4 0 1 0 1 1 0 0 0 0 1

Microbuses (nos.) 9 0 1 1 1 1 1 1 1 1 1

nos.=numbers; PMU=project management unit; UPS=uninterruptible power supply.

Source: Department of Public Health Engineering

Appendix 2

Items TotalLocation

PROCUREMENT OF OFFICE EQUIPMENT AND VEHICLES

Appendix 3 17

MAJOR TRAINING AND INSTITUTIONAL STRENGTHENING ACTIVITIES

Topic Target participants No. of Trainees Date

No. of Trainee

Days 1. Water Supply Service Reorientation of DPHE’s role in urban water supply and sanitation, and DPHE’s urban and sanitation policy formulation support of Pourashavas

SE, EE, and Planning Circle of DPHE 24 14 Jul 1996 24

Reorientation of DPHE’s role in urban water supply and sanitation, and DPHE’s urban and sanitation policy formulation support of Pourashavas

SE, EE, Chittagong and CHT Circle of DPHE 25 16 Jul 1996 25


Pourashava Chairpersons and; SE, EE of DPHE under Khulna and Barisal Circle 27 18 Jul 1996 27


Pourashava chairpersons and; SE, EE of DPHE under Rajshahi and Rangpur Circle 25 20 Jul 1996 25

Reorientation of DPHE’s role in urban water supply and sanitation, and DPHE’s urban and sanitation policy formulation support of pourashavas

Pourashava chairpersons and ; SE, EE of DPHE under Dhaka Circle 25 23 Jul 1996 25

Workshop on community participation and management in urban water supply and sanitation

EE of 14 divisions of DPHE 20 12 Sep 1996 20

Effective coordination and exchange of information between the PMU and the nine PIU members as a prerequisite for the Project’s successful execution

Pourashava AE, EE and; RE and ARE of PIU 35 10 Nov 1996 35

Effective coordination and exchange of information between the PMU and the nine PIU members as a prerequisite the Project’s successful execution

Pourashava AE, EE and; RE and ARE of PIU 25 11 Nov 1996 25

BME/MIS and financial management under TA-1979-BAN

EE from 14 towns of DPHE and RE and ARE of PIUs of nine towns

45 12 Mar 1997 45

BME/MIS and financial management under TA-1979-BAN


45 13 Mar 1997 45

Training workshop on consumer relations in pourashava water supply and sanitation


22 14 Mar 1997 22

AE = assistant engineer; ARE = assistant resident engineer; BAN = Bangladesh; BME = benefit monitoring evaluation; CHT = Chittagong hill tracts; DPHE = Department of Public Health Engineering; EE = executive engineer; MIS = management information system; PIU = project implementation unit; PMU = project management unit; PWSS = pourashava water supply and sanitation; RE = resident engineer; SE = superintendent engineer; TA = technical assistance; WWS = ward water superintendent.

18 Appendix 3


No. of Trainee

Days Training of WW superintendents WWS of 14 pourashavas

13 11–13 Nov 1997 39

Training of DPHE subdivision engineers SDE of DPHE divisions 16 18–20 Nov

1997 48

Preconstruction guidelines for contractors for IRP and OHT construction

Contractors, site engineers, and DPHE 40 16 Nov 1998 40

Improvement of general PWSS management capacity of 14 pourashavas

WWS and AE of pourashavas 25 7–8 Feb 1999 50

Workshop to ensure that following project completion all water supply and sanitation facilities provide good service levels to customers and are managed in cost-effective and efficient ways, which will strengthen DPHE and 14 pourashavas

EE of 14 DPHE divisions

25 21–22 Mar 1999 50

The Project’s financial aspects and performance

Chairpersons and EE of nine Pourashavas 25 10 May 1999 25

Workshop on financial management strengthening of PWSS of 14 pourashavas

WWS and AE of 14 pourashavas 20 18–19 May

1999 40

Workshop on DPHE’s role in the new policy on drinking water

EE of 14 divisions of DPHE 20 21–22 Jun

1999 40

Workshop on technical and/or operations management and institutional strengthening of pourashavas (first and second W/S projects)

Assistant engineers; PWSS superintendent; and assistant engineer of DPHE 25 11–12 July

1999 50

Workshop on consumer benefits and consumer relations improvements related to the institutional strengthening of pourashavas (first and second water supply projects)

Assistant engineers; PWSS superintendent; and SDE of DPHE 25 20–21 July

1999 50

Workshop on pourashava water supply system and service level improvement

Chairperson, assistant engineer, and water supply superintendent

28 19 Oct 2000 28

AE = assistant engineer; CHT = Chittagong hill tracts; DPHE = Department of Public Health Engineering; EE = executive engineer; PWSS = pourashava water supply and sanitation; SDE = subdivision engineer, SE = superintendent engineer; WW = ward water; WWS = ward water superintendent.

Appendix 3 19


No. of Trainee

Days 2. Household Environmental Sanitation Program

NGO team leaders and/or supervisors NGO team leaders of 13 NGOs 13 7 Aug 1997 13

NGO team leaders and/or supervisors NGO team leaders of 13 NGOs 13 28–29 Oct

1997 26

NGO team leaders and/or supervisors NGO team leaders of 13 NGOs 13 1–2 Nov 1997 13

NGO team leaders and/or supervisors NGO team leaders or supervisors of 13 NGOs 20 13 Nov 1997 20

NGO team leaders and/or supervisors NGO team leaders or supervisors of 13 NGOs 35 30 Nov 1998 35

Workshop on HES program Chairpersons and NGO team leaders of nine Pourashavas 35 29 Feb 2000 35

Continuation of HES program and contract renewal of NGOs

NGO team leaders of nine Pourashavas 23 25 Jan 2001 23

NGO training and/or refresher courses NGO members of Jamalpur Pourashava 15 29–30 Jan

2001 30

NGO training and/or refresher courses NGO members of Tangail Pourashava 20 1 Jan and 1

Feb 2001 40

NGO training and/or refresher courses NGO members of Pabna Pourashava 20 12–13 Feb

2001 40

NGO training and/or refresher courses NGO members of Kushtia Pourashava 20 14–15 Feb

2001 40

NGO training and/or refresher courses NGO members of Bagerhat Pourashava 20 18–19 Feb

2001 40

NGO training and/or refresher courses NGO members of Faridpur Pourashava 20 20–22 Feb

2001 40

NGO training and/or refresher courses NGO members of Sylhet Pourashava 20 14–15 Mar

2001 40

NGO training and/or refresher courses NGO members of Rangpur Pourashava 20 19–20 Mar

2001 40

NGO training and/or refresher courses NGO members of Dinajpur Pourashava 20 21–22 Mar

2001 40

3. Billing and Collection and/or Financial Management

Workshop on the Project and PWSS financial management of nine Pourashavas

Chairpersons of nine Pourashavas 10 14 Dec 1999 10

HES = household environmental sanitation; NGO = non-government organization; PWSS = Pourashava water supply and sanitation.

20 Appendix 3


No. of Trainee

Days Workshop on the commercial operation of PWSS and preparing a PWSS budget for 2000–2001

Chairperson, ward commissioners, and PWSS technical and financial staff of Jamalpur Pourashava

45 9–10 Apr 2000 90

Workshop on the commercial operation of PWSS and preparing a PWSS budget for 2000–2001

Chairperson, ward commissioners, and PWSS technical and financial staff of Tangail Pourashava

45 10 May 2000 45


Chairperson, ward commissioners, and PWSS technical and financial staff of Sylhet Pourashava

45 15 May 2000 45


Chairperson, ward commissioners, and PWSS technical and financial staff of Pabna Pourashava

45 23 May 2000 45


Chairperson, ward commissioners, and PWSS technical and financial staff of Kushtia Pourashava

45 24 May 2000 45


Chairperson, ward commissioners, and PWSS technical and financial staff of Faridpur Pourashava

45 30 May 2000 45


Chairperson, ward commissioners, and PWSS technical and financial staff of Bagerhat Pourashava

45 1 Jun 2000 45


Chairperson, ward commissioners, and PWSS technical and financial staff of Rangpur Pourashava

45 6 Jun 2000 45


Chairperson, ward commissioners, and PWSS technical and financial staff of Dinajpur Pourashava

45 7 Jun 2000 45

4. Public Relations Workshop on urban water supply system performance improvement in five district towns

EE of 14 divisions of DPHE 20 9 Oct 1996 20

Orientation on water supply operation functions and the DPHE-pourashava role and relationship

Chairperson, PWSS assistant engineers, and superintendent

23 22 Mar 1997 23

Institutional strengthening of pourashava (first and second W/S projects) marketing management

PWSS assistant engineers and superintendent 24 24 Jun 1997 24

EE = executive engineer, PWSS = pourashava water supply and sanitation.

Appendix 3 21


No. of Trainee

Days Two-day workshop on improving PWSS service levels through community participation and financial management

Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Jamalpur Pourashava

44 29–30 Jan 2001 88

Two-day workshop on improving PWSS service levels through community participation and financial management

Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Tangail Pourashava

35 1 Jan and 1 Feb 2001 70


Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Pabna Pourashava

40 12–13 Feb 2001 80


Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Kushtia Pourashava

46 14–15 Feb 2001 92


Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Bagerhat Pourashava

40 18–19 Feb 2001 80


Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Faridpur Pourashava

25 20–22 Feb 2001 50

PWSS = pourashava water supply and sanitation; WASAN = water and sanitation

22 Appendix 3


No. of Trainee

Days Two-day workshop on improving PWSS service levels through community participation and financial management

Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Sylhet Pourashava

40 14–15 Mar 2001 80


Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Rangpur Pourashava

50 19–20 Mar 2001 100

Two-days workshop on improving PWSS service levels through community participation and financial management

Chairperson, ward commissioners (two), WASAN committee members, all PWSS technical and financial staff and house connection holders, and representatives of Dinajpur Pourashava

46 21–22 Mar 2001 92

PWSS = pourashava water supply and sanitation; WASAN = water and sanitation.

Appendix 4 23

I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV

DPHE = Department of Public Health Engineering, PIU = project implementation unit, PMU = project management unit.

IMPLEMENTATION SCHEDULE - APPRAISAL AND ACTUAL

Project Activity 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Project Period

Selection of Consultants

Project Implementation

Part A: Piped Water Supply

- System surveys and investigations

- Refinement of project quantitative

- Detailed design

- Prequalification and bidding

- Pipe materials for rehabilitation works

- Rehabilitation

- Prequalification and bidding

- Pipe materials for development works

- Construction of development works

- Test runs and commissioning

Part B: Sanitation

- Land acquisition

- Supply of garbage truck and related equipment

- Construction of road side drains and installation of handpump tubewells and household sanitation units

Institutional Development

- Institutional development DPHE/Pourashava- Establishment and staffing of PMU and PIUs

Source: Department of Public Health Engineering

- Financial Management and Institution Strengthening

- Community Development

- Consulting Services

Actual Implementation:Legend: Original Implementation Schedule:

Appendix 5 24

COMPLIANCE WITH LOAN COVENANTS 1. The loan covenants covered a wide range of activities agreed between the Asian Development Bank (ADB) and the Borrower. The compliance of those loan covenants relating to financial, institutional, operational, and technical aspects often required actions from The Government’s higher level and not at the Executing Agency’s level. 2. The original Loan Agreement was amended on 23 December 1998, following the Borrower’s request regarding the use of loan savings from nine ongoing ADB-assisted projects, including this Project, to complement the assistance provided by ADB under the 1998 Flood Rehabilitation Project (para. 25 in the main text). However, the amended Loan Agreement referred mainly to matters relating to the implementation arrangements of other executing agencies of the Flood Damage Rehabilitation Project. The status of compliance of loan covenants, as stipulated in the loan agreements, follows.

Loan Covenants Reference Status of Compliance

I. General Implementation Arrangements

Executing Agency

1. DPHE shall be the Project’s Executing Agency and shall have overall responsibility for the Project. Each pourashava shall be responsible for the implementation of its respective project components.

Loan Agreement (LA), Schedule 6, para.1

Complied with.

Management and Organization

2. The Project shall be implemented through the PMU, to be established within DPHE prior to the effective date. Within 6 months of the effective date, the PMU shall be adequately staffed and supported by a team of international and local consultants.

LA, Schedule 6, para. 2

Complied with.

3. A project implementation unit (PIU) shall be established in each of the pourashavas prior to the effective date. Each PIU shall be headed by a pourashava chairperson and shall be under the supervision and coordination of the PMU. Within 6 months of the loan effective date, each PIU shall be adequately staffed and shall be supported by a team of international and local consultants. PIUs shall be involved in facility management, community development, facility O&M, billing and collection activities, and other operational matters. PIUs shall liaise with local NGOs for the promotion of health education and the implementation of the Household Environmental Sanitation (HES) program.


Complied with.

ADB= Asian Development Bank; DPHE= Department of Public Health Engineering; HES= household environmental sanitation; LA= Loan Agreement; NGO= non-government organization; O&M= operation and maintenance; PIU= project implementation unit; PMU= project management unit.

Appendix 5 25


4. Prior to the effective date, an interministerial project implementation coordination committee shall be established, to provide overall interministerial coordination, monitoring, and guidance on the policy aspects related to the Project.


Complied with.

5. Prior to the effective date, a pourashava water and sanitation committee (WATSAN) shall be established in each pourashava under the leadership of pourashava chairpersons.


Complied with.

II. Specific Implementation Arrangements

Land Acquisition 6. The Borrower shall take action, as is necessary, to acquire

all land rights and other property rights required.


Partly complied with. Land acquisition in urban areas was very difficult, due to scarcity of land and the lengthy process involved.

Community Participation 7. The Borrower shall cause each pourashava to encourage

the participation of community groups and leaders, women’s groups, and NGOs in the Project, particularly the HES program.


Complied with.

8. The Borrower shall cause each pourashava to contract with a local NGO, to provide various projects implementing services. The PMU shall develop detailed guidelines for the prequalification of eligible NGOs, including detailed operations procedures and performance measures for NGOs. The PMU shall provide each pourashava with an outline contract and shall work with each pourashava and selected NGOs to tailor the outline to the particular conditions of each community.


Complied with.

Benefit Monitoring and Evaluation

9. The PMU shall undertake BME for each component of the Project and shall develop a comprehensive BME system, with assistance from the consultants. Within 6 months of the effective date, the PMU shall submit to the Asian Development Bank (ADB), for approval, a detailed implementation plan for monitoring benefits and preparing benchmark information. ADB shall be furnished with annual BME reports. Recommendations in a completed project BME for Loan 571-BAN(SF) shall also be carried out under the Project.

LA, Schedule 6, para.9

Complied with.

ADB= Asian Development Bank; BME= benefit monitoring and evaluation; HES= household environmental sanitation; LA= Loan Agreement; NGO= non-government organization; PMU= project management; WATSAN= water and sanitation; BAN(SF) = Bangladesh (Special Fund)

Appendix 5 26


Operation and Maintenance

10. The O&M of all facilities shall be the responsibility of the respective pourashavas. The Borrower shall ensure:


Complied with. Due to resource constraints, however, pourashavas were not able to ensure adequate O&M.

(i) close interaction between the DPHE and the pourashavas for the smooth commissioning of piped water supply systems within 3 months of completion of the capital works;

(ii) project facilities are operated by each of the pourashavas in accordance with sound administrative and engineering policies and practices;

(iii) project facilities are adequately maintained by each of the pourashavas; and

(iv) staff, funds, facilities, services and other resources required to ensure the proper O&M of all project facilities are provided promptly by each of the pourashavas, as needed.

Environmental Concerns

11. The Borrower shall ensure that necessary environmental protection controls and measures are included in the design of all project facilities.


Complied with.

Midterm Review

12. A midterm review shall be carried out at the end of the rehabilitation phase, which is expected to be completed within 2 years of the commencement of the Project.

LA Schedule 6, para. 12

Complied with. The midterm review was carried out in late 1997.

Reports, Accounts, and Audit

13. The PMU shall provide ADB with quarterly progress reports on project implementation. Each PIU shall prepare reports on their respective components of the Project for consolidation in the quarterly reports by the PMU.


Complied with.

14. The PMU and PIUs shall establish and maintain accounts and records to identify income and expenditures related to each part of the Project.


Complied with.

ADB= Asian Development Bank; DPHE= Department of Public Health Engineering; LA= Loan Agreement; O&M= operation and maintenance; PIU= project implementation unit; PMU= project management unit.

Appendix 5 27


15. The PMU shall submit to ADB consolidated and unaudited project accounts within 9 months of the close of the financial year.


Complied with.

Action Plan

16. The Borrower shall ensure the implementation of the Institutional, Financial and Operational Action Plan developed by the Borrower and ADB. The Action Plan shall be reviewed annually and updated by the Borrower in consultation with ADB.


Generally complied with. Some financial targets, however, could not be met, due to pourashava reluctance to take necessary initiatives.

Revolving Funds

17. A portion equivalent to $1.4 million of the amount provided to the pourashavas shall be used to establish revolving funds for the implementation of HES programs. Pourashava residents shall be entitled to borrow up to Tk2,000 per household, or an amount ADB may otherwise agree, to finance household sanitation needs. The terms and conditions shall include the payment of interest at market rates and the repayment in full of principal within 2 years of borrowing.


Complied with.

III. Financial Matters Separate Accounting and Financial Operations for

Water Supply

Complied with.

18. Within 3 months of the loan effective date, each pourashava shall establish separate accounting and financial operations for water supply.


Complied with.

Ledger Accounts for Commercial Connections and Domestic Households

Complied with.

19. Each pourashava shall maintain separate ledger accounts for each water supply customer.


Complied with.

Tariff Setting and Connection Fees

20. Each pourashava shall: (i) review its water tariffs annually and, if necessary,

revise such tariffs annually, to achieve by 30 June 2000 full recovery of O&M, depreciation, and debt service costs of water supply facilities;


Partly complied with. Four of nine pourashavas increased water tariffs. Others did not apply new rates, mainly due to pourashava reluctance.

ADB= Asian Development Bank; HES= household environmental sanitation; LA= Loan Agreement; O&M= operation and maintenance; PMU= project management unit.

Appendix 5 28


(ii) establish a charge for connection to the municipal water supply system, and such charge is to be restricted to a rental fee subject to periodic adjustment for inflation; and

Complied with.

(iii) furnish to ADB not later than 9 months after the end of its financial year a report detailing the financial performance of its water supply operations.

Complied with.

Pourashava Electricity Arrears Payment; Borrower Agencies Dues on Account of Holding Tax and Water Charges Arrears; and Nationwide Electricity, Holding Tax, and Water Charges Arrears

21. The Borrower shall cause: (i) the pourashavas to pay their outstanding electricity

charge arrears, in accordance with the schedules given in the Action Plan;

(ii) all relevant agencies to pay all debts owed to the

pourashavas on account of water supply charges and holding tax, in accordance with the schedules given in the Action Plan; and

(iii) all municipalities to commence payment of electricity

charge arrears and all relevant agencies of the Borrower to commence payment of dues on account of water supply charges and holding tax, in accordance with the schedule given in the Action Plan.

LA, Schedule 6, para. 23 (a)

Partly complied with. Electricity arrears are still pending. Government holding tax arrears, however, were fully cleared by the central Government in 2 years, by end of FY2002. Water charge arrears to government establishments were also fully paid to pourashavas in FY2002.

22. Notwithstanding the generality of the provision of para. 21, the Borrower shall cause: (i) all relevant agencies to complete payment of all debts

owed to the pourashavas on account of water supply charges and holding tax by 30 June 1994;

(ii) the pourashavas to adjust these payments against their outstanding electricity charge arrears by 30 June 1994; and

(iii) the pourashavas to complete the first half of their electricity charge arrears by 31 Dec 1995 and the second half of such arrears by 31 Dec 1997.

LA, Schedule 6, para. 23 (b)

Delayed compliance. The Government paid all charges for water supply and holding tax arrears to the pourashavas once in 1995 and again in 2002. Payments against electricity charge arrears still have not cleared, except in few cases (Bagerhat and Sylhet).

Reduction in Water Supply Waste and Leaks

23. The pourashavas shall implement programs to reduce water supply system waste and leaks to 40% by 31 December 1996 and 35% by 30 June 1999.

Partly complied with. Pourashavas started to improve the situation.

ADB= Asian Development Bank; FY= fiscal year (July –June); LA= Loan Agreement.

Appendix 5 29


Water Tariff Collection Efficiency

24. The pourashavas shall increase their water tariff collection efficiency in accordance with targets established for the pourashavas under the Action Plan, to achieve 90% collection efficiency by 30 June 1999.


Partly complied with. Some pourashavas increased their water tariffs.

Performance Targets

25. The pourashavas shall formulate by 31 December 1994 minimum performance targets for accounts receivable outstanding and new water service connections and a plan to achieve the said targets.


Complied with. Action plans were prepared.

Water Supply and Sanitation Sector Efficiency and Sustainability Measures

26. The pourashavas shall introduce by 31 July 1995 measures to induce greater sector efficiency and sustainability. Such measures shall include (i) greater planning and operational and financial autonomy for water supply and sanitation operations; and (ii) programs for attracting and retaining professionally qualified and competent staff for engineering, financial, managerial, and accounting functions.


Complied with. During project implementation, an institutional improvement program took care that.

Other Matters

27. The Borrower shall submit to ADB within 12 months after the end of each related fiscal year certified copies of audited project accounts and financial statements and the report of the auditors relating thereto, all in the English language.

LA, Section 4.06 (b)

Complied with.

28. The Borrower shall furnish to ADB, within 3 months after physical completion of the Project, a project completion report containing such detail as ADB shall reasonably request.

LA, Section 4.07 (c)

Complied with.

ADB= Asian Development Bank; BME= benefit monitoring and evaluation; DPHE= Department of Public Health Engineering; HES= household environmental sanitation; LA= Loan Agreement; NGO= non-government organization; O&M= operation and maintenance; PIU= project implementation unit; PMU= project management unit; WATSAN= water and sanitation.

Appendix 6 30

PROJECT BENEFITS AND INITIAL IMPACTS A. Introduction 1. The Project Completion Review (PCR) Mission visited all nine municipalities and held discussions with concerned staff members of the Department of Public Health Engineering (DPHE), municipalities, participating nongovernment organizations (NGOs), and beneficiaries. During the field visits, rehabilitated and newly established infrastructure was inspected, to see implementation and operating performance, overall quality, and operation and maintenance status. The infrastructure greatly enhanced the capability of the respective municipalities to provide municipal services through increased production of safe water, additional pipelines and water connections, and new or improved sanitation facilities, thereby increasing access of city dwellers to these essential urban services. The Mission also visited different environmental sanitation facilities, to see how these were established and operated and maintained and if these have improved the environmental conditions in fringe areas, where generally poorer city dwellers live. Apart from this, the Mission assessed the institutional capabilities of municipalities related to managing urban services and improving financial status through increasing collection of holding tax and water tariffs and reducing overdue electricity bills. Further, the Mission collected qualitative and quantitative data about the Project’s impact, through the supply of safe water, on health status and environmental sanitation improvements. The Project benefits and initial impact, as assessed, are briefly described in the following paragraphs. B. Survey Findings 1. Increase of Production of Safe Water 2. The Project substantially increased water production through the rehabilitation of 21 existing deep tube wells and establishment of 63 new deep tube wells and raised the production capacity from 29,142 cubic meters (m3) per day to 64,449 m3 per day (a 129% increase) between 1995 and 2002. As the aggregate total growth of the population in the nine municipalities during the period was only 21.63%, the Project not only met the demand of the additional population but also partly met the unmet suppressed demands of the existing population. In addition, the Project established 21,299 hand-operated tube wells in the fringe areas of the municipalities, to provide safe water. The poor and disadvantaged people generally live in fringe areas, which lack major urban facilities, including safe water. The Project also rehabilitated 12,437 existing dilapidated connections and established 16,612 new connections, thereby ensuring water supply to 29,053 households, an increase of 55% over the total number of connections in 1995 (18,735). The Project also provided safe water that was free from iron and arsenic contamination, through rehabilitating 1,150 m3 per hour of existing water treatment plants and establishing an additional 2,900 m3 per hour of water treatment plants. The ground water of all municipalities, except Dinajpur, contains iron beyond acceptable limits for human consumption. Therefore, the Project increased safe water production, treatment, and supply that might have contributed to reducing incidence of waterborne diseases. 2. Additional Sanitation Facilities 3. The Project provided 502 rubbish bins, 4 trucks, 4 trucks with attached trailers, and 120 pushcarts and established 16 public toilets that substantially improved environmental sanitation. Further, the Project improved the standard of environmental sanitation in the municipalities, including fringe areas, through establishing 26,571 latrines and 4,367 on-site sullage tanks.

Appendix 6 31

3. Institutional Capability Building 4. Besides establishing hardware facilities for the production, treatment, and supply of additional safe water and creating facilities for environmental sanitation, the Project enhanced the institutional capabilities of the municipalities for the operation and maintenance of these facilities and services through human resources development, management systems development, and financial resources improvement by improving collection efficiency, reducing past debts on electricity, and balancing the income and expenditure ratio. The collection efficiencies for water tariffs and holding tax, respectively, increased from 32.2% and 33.7% to 83.9% and 93.7% between 1995 and 2002. The past overdue balances for the payment of electricity bills also were reduced substantially during the period. Except Bagerhat, all nine municipalities improved their income and expenditure ratios, thereby attaining near self-sufficiency. The cumulative income and expenditure ratio of the municipalities increased from 1.026 in 1995 to 1.385 in 2002. 4. Piped Water Supply 5. The Mission conducted surveys in all nine municipalities and collected quantitative and qualitative information, to assess tentative project impacts. The survey indicated that prior to the Project, only 13% of households had piped water connections, 67% used hand-operated tube wells, 6% got water from street water points, 14% received water from neighbors, and 13% took water from rivers or ponds. The water pressures were low, medium, and high in 73%, 23%, and 4% of all connections, respectively. After the Project, water pressures in the pipelines substantially increased to 15% high, 59% medium, and 26% low. All households reported that before the Project they used to get water intermittently, twice a day for 1–2 hours. After the Project, they got water intermittently, 2–3 times a day for 1–3 hours. This was also the case in Faridpur, where a 24-hour water supply pilot system was introduced under the Project. The survey also gathered that only 25% of households got sufficient water before the Project, and, after the Project, 60% of households got enough water. Eighty-five percent of households believed the quality of water to be better after the Project, 4% felt that the quality was the same as before, and 11% did not have any idea about the quality. Before the Project, 77% of households reported that their water was contaminated, containing harmful minerals associated with bad odors. After the Project, only 49% of households reported the presence of bad odors and minerals. 6. The survey noted that 72% of households have 4–7 members, 86% of households are single-storied, 68% of buildings have one family, and 16% have two families. Interestingly, the cost of water per month per family generally remained unchanged (Tk100 to Tk200 in nine municipalities). Yet, 86% of users believe that current and earlier water costs are high, and only 34% of users feel that the earlier cost was moderate but the existing cost is high. The survey reports that 48% of households have an income below the poverty line.1 The respondents reported that prior to the Project, drinking water was the main cause of diahorrea, typhoid, dysentery, and jaundice. The survey noted that 89% of households use piped water for domestic purposes in addition to drinking. Interestingly, although large numbers of respondents stated that piped water contains minerals and bad odors, only 14% boil water before drinking.

1 Tk5,000 per month per household (Source: Bangladesh Bureau of Statistics. 2000. Household Income and Expenditure Survey. 2000).

Appendix 6 32

5. Billing System 7. The survey obtained the opinions of the respondents about the billing systems for water and payment of water bills. About 63% of households are in favor of billing by the municipalities and only 26% prefer a self-billing system. The remainder have no specific preference. However, 77% of households would prefer to pay their bills through banks, and the rest would prefer to pay directly to the municipalities. The survey obtained some important suggestions from the users for further improvement of the existing water supply system. About 48% of users want germ free water, 49% want a 24-hour supply, and 24% want higher water pressure. 6. Hand-Operated Tube Wells 8. The survey observed that water is available within a depth of 150 feet, except in Sylhet Pourasava. Thus, many households prefer to use hand-operated tube wells, instead of piped water, when drawing water for drinking and household purposes. The survey also noted that 90% of residents in fringe areas live in their own houses, and 92% of these houses do not have piped water connections. Among the residents in fringe areas, only 46% believe that they may get a water connection in the near future, and 58% believe that they cannot afford piped water. The survey also found that 86% of the people in fringe areas pay taxes, although they do not get most of the urban facilities and services. 9. In fringe areas, 87% of people get sufficient water from hand-operated tube wells. The remaining people, including those needing more water, use water from rivers, ponds, and streams. In the survey, 82% of people reported that tube well water is pure. The remaining people either have no opinion or believe that tube well water is not pure. However, 48% of people suspect that tube well water might contain harmful materials, such as iron, arsenic, and germs. 10. The survey also found that before the Project (i) 69% of households receiving hand-operated tube wells under the Project got water from neighbors’ houses, 7% from street water points, 5% from ponds or rivers, and 19% from existing old tube wells; (ii) 82% of households that obtained hand-operated tube wells earned less than poverty-level incomes; (iii) 7% of households boiled tube well water before drinking; and (iv) 40% and 27% of loans were due and overdue, respectively, primarily because of the financial constraints of the beneficiaries, and the loan amount for tube wells varied from Tk1,000 to Tk3,000. The respondents suggested that water should be tested, to ascertain the presence of iron and arsenic. The respondents also suggested that deep tube wells should be installed and fringe areas should be included in the piped water supply network. 7. Sanitary Latrines 11. The survey covered the households provided with sanitary latrines and found that prior to the Project 83% had no sanitary latrines and used hanging open latrines. The average loans per latrine were about Tk2,000, and only 39% and 23% are due and overdue, respectively, mainly because of the financial constraints of the beneficiaries and a lack of supervision by NGO workers after project completion. The survey noted that the Project’s beneficiaries gathered knowledge about the benefits of using sanitary latrines and disadvantages of using hanging latrines from the NGO workers provided by the Project. The survey also observed that after the Project the environmental sanitation activity, especially the operation of the revolving fund, has suffered, as the number of NGO workers and their salaries have been drastically reduced.

Appendix 6 33

8. On-Site Sullage Tanks 12. The survey also covered on-site sullage tanks users and gathered that most of the users are satisfied with the performance and benefits of the sullage tanks although they did not get enough popularity. Only 27% of respondents reported that their on-site sullage tanks got clogged or filled in. The loan size varied between Tk1,000 and Tk2,000. The users reported their difficulty repaying the loans, but only 27% and 25% of loans are due and overdue, respectively, primarily because of the financial constraints of the beneficiaries and a lack of supervision by NGO workers after project completion. The users suggested increasing the number of rings, reducing the cost, and improving the design with necessary servicing facilities. 9. Solid Waste Disposal 13. The survey covered solid waste disposal arrangements, and 52% of respondents reported that they dispose of garbage on the street, 35% in dustbins, 4% use the collection services of the municipality conservancy, and 9% use the collection services of private solid waste collectors. About 58% of respondents said that they do not see dustbins on the street closer to their residence, and only 15% reported that the available dustbins are clean. However, 25% of respondents believe that solid waste management has improved through the Project, 37% considered that the situation remains unchanged, and 38% have no opinion. C. Cost of Piped Water 14. The PCR Mission estimated the cost of producing and supplying piped water for all nine project municipalities, based on the actual situation and data generated by the Project. Among municipalities, the duration of water supply per day was found to vary widely, between 3.3 hours and 12.0 hours, and the percentage of demand met was between 45.54% and 89.22%. Water consumption per connection per day also varied widely among municipalities, from as low as 83 liters in Faridpur to as high as 185 liters in Tangail. The actual cost of water per m3 varied among municipalities as well, depending on well production, water quality, and management efficiency. The cost per m3, or 1,000 liters, was as low as Tk1.14 in Dinajpur (good aquifer and good water quality) and as high as Tk1.95 in Faridpur (deep aquifer and high iron and arsenic concentrations). Nonetheless, the costs of water produced under the Project in all nine municipalities are much lower than the selling costs of water in major cities, such as Dhaka (Tk5.00 and Tk16.54 per 1,000 liters, respectively, for domestic and industrial use). The Project has therefore provided safe water at a relatively cheaper cost. Although, all municipalities reported that they are loosing from supplying water, as the actual cost of water is higher than the water tariffs collected. Municipalities find increasing tariff rates difficult, due to fear of public resentment and consideration of the financial constraints of the poorer sections of communities, which constitute a considerable part of the urban population.

Appendix 6 34

Table A6.1: Cost of Water

Water per Month (m3) Monthly Cost of Production and

Supply (Taka)

Pourashava

Hours of Supply

(per day) Demand

per Month

Produc-tion per

Month

Met (%)

Avg. Water Use

(l/c/d) Elec- tricity O&M Overhead Total

Actual Cost

(Taka per m3)

Bagerhat 8.50 76,500 68,250 89.22 100 52,500

6,825 34,125

93,450 1.37

Dinajpur 3.50 141,300 64,350 45.54 128 35,000

6,435 32,175

73,610 1.14

Faridpur 4.50 92,700 71,550 77.18 83 96,800

7,155 35,775

139,730 1.95

Jamalpur 6.00 173,700 81,000 46.63 93 68,000

8,100 40,500

116,600 1.44

Kushtia 6.50 167,700 101,130 60.30 97 73,600

10,113 50,565

134,278 1.33

Pabna 10.50 157,500 94,080 59.73 167 68,000

9,408 47,040

124,448 1.32

Rangpur 8.00 228,300 105,420 46.18 145 79,000

10,542 52,710

142,252 1.35

Sylhet 12.00 259,800 163,500 62.93 141 165,500

16,350 81,750

263,600 1.61

Tangail 4.75 208,800 124,980 59.86 185 108,500

12,498 62,490

183,488 1.47 m3 = cubic meter. l/c/d = liter per connection per day; O&M = operation and maintenance. Source: Project Final Report.2000 and, PCR Mission estimates. D. Financial Performance of the Municipalities 15. The PCR Mission also reviewed the operating performance of the project municipalities in terms of improvement of the financial indicators. Project interventions, especially consulting services, significantly helped the municipalities improve water tariff and tax collection efficiency and electricity bill payment, thereby improving the chronic deficit situation in all except the Sylhet and Tangail municipalities. The financial performance, as summarized in the Table A6.2, indicated a general positive trend (although often highly skewed).

Appendix 6 35

Table A6.2: Improvement of Financial Performance of the Municipalities

Financial Achievements of the Municipalities (%) Improve-

ments in Area(s)

Period Bagerhat Dinajpur Faridpur Jamal-pur

Kushtia Pabna Rang-pur

Sylhet Tangail

Water Tariff 30-Jun-98 111.4 68.7 38.3 46.3 142.6 78.4 32.6 27.7 94.9 30-Jun-99 87.0 61.5 47.2 55.5 108.8 75.0 65.7 64.0 99.1 30-Jun-00 107.2 69.7 86.4 57.6 68.4 97.8 63.5 72.8 89.2 30-Jun-01 96.4 61.3 65.8 77.3 65.4 107.5 51.9 44.9 98.2 31-Mar-02 94.4 75.4 80.0 124.4 95.4 89.9 52.3 53.2 97.6 Water Tax 30-Jun-98 77.1 92.7 111.4 54.4 73.7 55.5 63.9 86.5 00.0 30-Jun-99 85.1 77.6 61.3 57.2 80.9 77.2 69.2 58.5 32.7 30-Jun-00 77.0 64.5 116.8 76.0 60.3 117.9 54.5 41.4 60.8 30-Jun-01 205.6 65.2 135.9 121.0 154.7 102.3 81.4 52.8 105.5 31-Mar-02 202.6 71.4 71.4 106.8 131.0 119.2 88.1 52.1 128.4 Electricity Bill 30-Jun-98 159.1 00.0 00.0 19.5 100.0 71.7 00.0 100.0 33.7

30-Jun-99 70.8 15.9 24.3 5.4 54.2 0.0 40.2 126.1 5.2 30-Jun-00 173.2 18.7 71.5 17.1 114.8 76.2 15.7 108.7 26.1 30-Jun-01 160.1 2.1 14.9 31.9 58.3 64.3 28.2 97.1 1.0 31-Mar-02 122.3 37.0 80.5 49.1 72.2 66.0 88.4 123.0 33.8 Income and Expenses 30-Jun-98 138.4 90.9 179.2 100.4 79.5 126.5 165.1 68.7 00.0

30-Jun-99 134.4 101.5 166.7 97.8 108.9 125.5 154.3 90.0 54.6 30-Jun-00 119.4 92.7 189.5 138.4 144.6 160.3 159.8 112.8 83.9 30-Jun-01 120.8 107.0 250.0 134.1 144.5 170.8 156.6 106.4 75.8 31-Mar-02 115.5 134.8 263.0 141.9 158.0 185.5 144.9 94.9 76.3 Source: Pourashavas.

36 Appendix 7

FINANCIAL ANALYSIS

1. The Project Completion Review (PCR) Mission calculated the financial internal rate of returns (FIRRs) of the water supply systems rehabilitated and established under the Project (aggregate and individual municipalities) to reevaluate the efficiency of project investment compared with appraisal estimates. The financial reevaluation is based on the following assumptions:

(i) All costs and revenues are expressed at constant 2003 prices on an incremental basis.

(ii) Actual costs incurred for civil works for Part A, relating to the water supply

component, including equipment, materials, and vehicles, are considered as capital investment for the water supply services. The price contingency, interest, and service charges during construction are not included in the financial analysis.

(iii) Operation and maintenance costs incurred during the project period for the water

supply services established under the Project is considered on an incremental basis.

(iv) All revenues are estimated based on the number of lines (household and

commercial) rehabilitated and newly established at current tariff rates in vogue in the respective project municipalities. The water tariff is charged on a flat rate per connections in all the project municipalities but not on the basis of actual consumption, as no water meters are used. The revenue was calculated based on the connections rehabilitated and newly established under the Project at average flat rates per line.

(v) Collection efficiency attained by the respective municipalities as of March 2002

was considered, to estimate actual revenue collection. 2. The financial reevaluation indicated that the PCR estimates for FIRR are lower, in general, than appraisal estimates (Table A7.1). The appraisal estimates varied between 4% and 9%, while the PCR estimates varied between –2.8% and 5.2%. The PCR estimates for FIRR are lower, due to low achievement of household connections (75% achieved) and because water tariffs did not increase as expected. The direct returns on public investment for water supply are generally low, as full cost recovery in water supply projects might limit access of the poor and disadvantaged. The FIRR will increase considerably when more household connections will be established with the unused materials and after the existing low water tariff is increased in future. It may be mentioned that the water pumps, treatment plants, overhead tanks, and transmission and supply lines established under the Project have capacities high enough to serve large numbers of consumers. A summary of the financial returns follows.

Appendix 7 37

Table A7.1: Summary of Financial Internal Rates of Return at Base Cost

FIRR at Base Cost (%) Municipality

Appraisal PCR Project 6.8 2.78 Bagerhat 7.2 3.95 Dinajpur 6.5 2.81 Faridpur 6.6 3.46 Jamalpur 6.2 3.18 Kushtia 6.8 (2.77) Pabna 6.3 5.25 Rangpur 6.9 4.83 Sylhet 9.1 (0.08) Tangail 4.0 0.05

FIRR = financial internal rate of return, PCR = project completion review Source: PCR Mission estimates and RRP

3. The financial analysis also included a sensitivity analysis, to test the FIRR for adverse changes of possible situations, such as (i) operating cost increases by 10%, (ii) revenue earned declines by 10%, and (iii) operating cost increases by 10% and revenue earned falls by 10% at the same time. The sensitivity analysis indicated that the aggregate FIRR of all the nine municipalities and also the FIRRs of the individual municipalities are sensitive to operating cost increases (already high) and also further revenue decline (already low). A summary of FIRRs in adverse situations follows.

Table A7.2: Summary of FIRRs in Adverse Conditions

FIRRs (%) Appraisal PCR Municipality

A B C A B C Project 6.5 5.6 – 2.47 1.67 1.33 Bagerhat 7.1 6.1 5.9 3.66 2.80 2.48 Dinajpur 6.0 5.0 4.6 3.5 2.67 2.35 Faridpur 6.2 5.2 4.8 3.16 2.35 2.02 Jamalpur 5.9 5.0 4.6 2.87 2.07 1.74 Kushtia 6.5 5.6 5.3 (3.29) (3.89) (4.51) Pabna 5.7 4.7 4.0 4.96 4.03 3.73 Rangpur 6.6 5.7 5.3 4.55 3.66 3.4 Sylhet 8.9 7.9 7.7 (0.09) (0.1) (0.12) Tangail 3.8 2.9 2.6 0.05 0.04 0.039 FIRR = financial internal rate of return, PCR = project completion review , – = not available. Note: A = operating cost increased by 10%; B = revenue earned declined by 10%; and C = operating cost increased by 10% and revenue earned decline by 10%. Source: PCR Mission estimates and RRP.

38 Appendix 7

Table A7.3: Financial Internal Rate of Return (Aggregate) at Base Cost

(amount in million $) Year Investment O&M Total Cost Revenue Cash Flow 1998 1.2996270 0.0792356 1.3788626 0.084534 (1.2943286) 1999 1.2996270 0.0792356 1.3788626 0.169069 (-)1.2097936 2000 2.5992530 0.1584712 2.7577242 0.338138 (-)2.4195862 2001 3.8988802 0.2377067 4.1365869 0.591741 (-)3.5448459 2002 3.8988802 0.2377067 4.1365869 0.845344 (-)3.2912429 2003 0.2377067 0.2377067 0.845344 0.6076373 2004 0.2377067 0.2377067 0.845344 0.6076373 2005 0.2377067 0.2377067 0.845344 0.6076373 2006 0.2377067 0.2377067 0.845344 0.6076373 2007 0.2377067 0.2377067 0.845344 0.6076373 2008 0.2377067 0.2377067 0.845344 0.6076373 2009 0.2377067 0.2377067 0.845344 0.6076373 2010 0.2377067 0.2377067 0.845344 0.6076373 2011 0.2377067 0.2377067 0.845344 0.6076373 2012 0.2377067 0.2377067 0.845344 0.6076373 2013 0.2377067 0.2377067 0.845344 0.6076373 2014 0.2377067 0.2377067 0.845344 0.6076373 2015 0.2377067 0.2377067 0.845344 0.6076373 2016 0.2377067 0.2377067 0.845344 0.6076373 2017 0.2377067 0.2377067 0.845344 0.6076373 2018 0.2377067 0.2377067 0.845344 0.6076373 2019 0.2377067 0.2377067 0.845344 0.6076373 2020 0.2377067 0.2377067 0.845344 0.6076373 2021 0.2377067 0.2377067 0.845344 0.6076373 2022 0.2377067 0.2377067 0.845344 0.6076373 2023 0.2377067 0.2377067 0.845344 0.6076373 2024 0.2377067 0.2377067 0.845344 0.6076373 2025 0.2377067 0.2377067 0.845344 0.6076373 2026 0.2377067 0.2377067 0.845344 0.6076373 2027 0.2377067 0.2377067 0.845344 0.6076373 2028 0.2377067 0.2377067 0.845344 0.6076373 2029 0.2377067 0.2377067 0.845344 0.6076373 2030 0.2377067 0.2377067 0.845344 0.6076373 2031 0.2377067 0.2377067 0.845344 0.6076373 2032 0.2377067 0.2377067 0.845344 0.6076373

IRR 2.78%

IRR = internal rate of return, O&M = operation and maintenance. Source: PCR Mission estimates.

asian development bank · 3. although piped water supply systems using groundwater sources existed...

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