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WORLD HEALTH ORGANIZATION REGIONAL OFFICE FOR THE EASTERN MEDITERRANEAN REGIONAL CENTRE FOR ENVIRONMENTAL HEALTH ACTIVITIES (CEHA) WHO-EM/CEHA/1-E January 1987 INTER-COUNTRY COURSE ON WATER AND SANITATION PROJECT PLANNING AND APPRAISAL Amman, Jordan 13-24 September 1986 WHO Project No : ICP/RUD/001 CO-SPONSORED BY THE ECONOMIC DEVELOPMENT INSTITUTE OF THE WORLD BANK HOSTED BY THE WATER AUTHORITY OF JORDAN REGIONAL CENTRE FOR ENVIRONMETAL HEALTH ACTIVITIES (CEHA) P .0. Box 811547 JABAL AMMAN AMMAN, JORDAN

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WORLD HEALTH ORGANIZATION REGIONAL OFFICE FOR THE EASTERN MEDITERRANEAN

REGIONAL CENTRE FOR ENVIRONMENTAL HEALTH ACTIVITIES (CEHA)

WHO-EM/CEHA/1-E January 1987

INTER-COUNTRY COURSE ON WATER AND SANITATION PROJECT PLANNING

AND APPRAISAL Amman, Jordan 13-24 September 1986

WHO Project No : ICP/RUD/001

CO-SPONSORED BY THE ECONOMIC DEVELOPMENT INSTITUTE OF THE WORLD BANK

HOSTED BY THE WATER AUTHORITY OF JORDAN

REGIONAL CENTRE FOR ENVIRONMETAL HEALTH ACTIVITIES (CEHA) P .0. Box 811547

JABAL AMMAN AMMAN, JORDAN

TABLE OF CONTENTS

ABSTRACT • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i

LIST OF ABBREVIATIONS • • • • • .. • • .. • .. • • • • • .. .. • • • • .. .. • .. • ii

1. INTRODUCTION • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1

2. COURSE STRUCTURE AND COMPONENTS ................... , • .. 2

3. FIELD VISITS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • 6

4, RECOMMENDATIONS OF PARTICIPANTS .. .. • • .. .. • .. .. • • .. • • • • 6

5, CLOSING SESSION • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 7

ANNEXES

1. PROGRAMME OF THE COURSE • • .. .. • • • • • • • • • • .. • • • • • .. • • • • • • 8 .

2. LIST OF PARTICIPANTS • .. • • • • • • .. • .. • • • .. • • • • • • .. • • • • • .. .. 9

3, ESTIMATE OF STAFF IN THE WATER SUPPLY AND 11 SANITATION SECTOR BASED ON URBAN AND RURAL SERVICE LEVELS ••••••••••••••••••••••••••••••••••••••••••

4. PAST AND PROGRAMMED EDI WATER SUPPLY AND 12 SANITATION SEMINARS, 1982 - 1987 ...................... .

ABSTRACT

The Inter-Country Short Course on Water Supply and Sanitation Project Planning and Appraisal held in Amman, 13 - 24 September 86, demonstrated both the importance of the subject matter recognized by the participants from national water sector agencies in seven Member State~ of the Eastern Mediterranean Region ( EMR), and the usefulness of the training package produced by the Economic Development Institute (EDI) of the World Bank. Each session of the course is based upon the "module" system, each dealing with a specific topic, firstly by showing the audio tape/slide presentation, then by repeating· the slides in a "question and answer" mode and finally, by getting participants to practise techniques learnt in the course of exercises and case studies. This system of task-orianted teaching worked well.

The course, hosted by the Water Authority of Jordan (WAJ), was the first to be co-organized by WHO and EDI in this Region. There . is little doubt that the teaching material and the collaboration deserve further support and requests have already been received in CEHA for further national courses on this subject in Egypt, Pakistan and Sudan.

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LIST OF ABBREVIATIONS

CEHA CENTRE FOR ENVIRONMENTAL HEALTH ACTIVITIES

EDI ECONOMIC DEVELOPMENT INSTITUTE OF THE WORLD BANK

EMR EASTERN MEDITERRANEAN REGION

EMRO EASTERN MEDITERRANEAN REGIONAL OFFICE

WAJ WATER AUTHORITY OF JORDAN

WHO WORLD HEALTH ORGANIZATION

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1. INTRODUCTION

I. 1 The Inter-Country Short Course on Water Supply and Sanitation Project Planning and Appraisal took place at the Intercontin.ental Hotel, Amman, from 13 to 24 September 1986. The Economic De'l.elqment Institute {EDI) of the World Bank co-sponsored the event with the World Health Organization (WHO) and the Water Authority of Jordan (WAJ) hosted the proceedings. The Eastern Mediterranean Regional Office (EMRO) of WHO provided support for the participants other than WAJ staff and EMRO' s Regional Centre for Envfronmental Health Activities (CEHA) which is based in Amman, provided logistic support.

1.2 The programme for the course is given as Annex 1. In the :Opening session, Mr. Tawfiq Khris.at from Water, Authority of Jordan, welcomed guests and participants, and fotroduced the speakers. Mr. Ringskog, Senior Training Officer, EDI, World Bank, expressed the pleasure EDI had in returning to Jordan to continue its support of training and, on this occasion, to be calla bora ting with the Eastern Mediterranean Region (EMR) of WHO. He elaborated on the background to the development of the course modules by EDI and its policy towards dissemination of this learning material by means of seminars and . courses. In the European and Eastern Mediterranean Regions of WHO, EDI estimates that 560 urban water supply and sanitation staff at the professional level and some 320 of the rural professional staff would be in appropriate posts to benefit from such training (Annex 3 ) • Clearly, even allowing for wide error in such estimates, ther-e is a substantial need for- appropriate tr-aining activities in this field.

1.3 Mr. Hillman, Acting Coordinator for CEHA, read the message from Dr. Hussein A. Gezairy, Regional Director, WHO/EMRO, in which Dr. Gezairy expressed his thanks to Mr. Mohammed Kilany, President of WAJ, for hosti~ the course and to EDI for their co-sponsorship. In the message, the Regional Director drew special attention to the importance of obtaining value for money from investments made in the water and sanitation sector, since this is such a vital component in the development of primary health care. He also stressed the need to maintain human resources development by training of trainers, an area upon which WHO has been placing continuously greater emphasis.

1.4 In his official speach for opening the course, Mr. Mohammed Kilany thanked the co-sponsors and described the vital role he believes training has for the continued success and progress of WAJ. He highlighted the scale of investment that Jordan has been putting into the improvement· of water supplies and sanitation throughout the Kingdom and how important it is, therefore, that engineering staff wt.thin the Authority handle the

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implementation of this investment efficiently. Computer hardware is now readily available to assist managers and engineers in their tasks. However, they must understand the techniques that are available for use with such machines as well as the financial and feasibility studies that are needed for the project. ln conclusion, Mr. Kilany expressed the hope that the participants from other countries would enjoy and benefit from the course, and wished all participants great success.

1.5 12 participants attended the course. Of these, six came from other countries in the Region, namely : Afghanistan, Egypt, Pakistan Somalia, Sudan and Yemen (Annex 2 ) . Most of the sessions were attended also by senior technical staff from WAJ as observers.

2. COURSE STRUCTURE AND COMPONENTS

2, I The theme for the course, namely project planning and appraisal in water supply and sanitation, has been developed by EDI into a set of teaching modules. Each of these is covered by a participants' manual, an instructors' manual, and a tape / slide audio - visual programme. Participants are also guided through a number of exercises and case studies to reinforce their understanding of the material and to promote discussion. It is a well-structured course and one of those that have been used extensively by EDI throughout much of the developing world (Annex 4 ) •

2.2 A pre-course questionnaire was used in order to identify areas of special interest to the participants as well as subjects which the group felt needed less coverage. Within the limitations of the programme and the time available, greater emphasis were given to cost/benefit and least-cost analyses, sector planning, and the discussion of tariff analysis was reduced.

2.3 A brief outline abstracted from the EDI literature for each module is given below :

SESSION 2 - Module 1 : Elements of Macroeconomics (duration : 1½ hours)

A lack of sufficient and dependable investment funds can often interrupt the development of the water supply and sanitation sector. This may be partly attributed to the fact that water sector staff find it difficult to communicate with macroeconomic planners who decide the sectoral allocation of a country's public investments, The. module provides explanations of several key concepts of macroeconomics and discusses the links between the macroeconomic, sectoral , and project phaees of economic development.

2

SESSION 3 - Module 2a : Sector Planning (duration for modules 2a & 2b : l½ hours)

The development of the water supply and sanitation sector is often characterized by wide swings in activity. During those periods when the sector has been favoured with increased funding, various institutional and manpower eonstraints have led to inefficiency and underutilization of the funding available. This is because the sector has rarely appli~d . . proper planning procedures. The module outlines a framework for p1npo1rt111.g constraints, applying corrective measures. and setting investment priorities.

SESSION 3 - Module 2b : Project Cycle

Ample financing alene will not ensure the efficient use of funds as projects are selected, constructed, and operated. Efficient use of resources requires careful planning and analysis. For this reason, the World Bank and other lending agencies require borrowers to take an orderly approach to project preparation and· execution in order to ensure the efficient application and management of funds. This approach takes into account the technical, financial, economic, institutional and social feasibility of development projects. It is a useful management tool which is applicable to any project, whether financed mulilaterally, bilaterally, or from domestic sources.

SESSIO!'-S4, 5, 6 and 7-Module 3 ( duration : 6 hours)

Economic Cost-Benefit Analysis

The choice between technologies in the water supply sector is often dictated by economic considerations. Alternative technologies include only a limited number of technically proven systems. Since all are technically feasible the choice depends mainly on comparing the costs and benefits of these alternatives. The module describes the series of steps for identifying, quantifying, and valuing a project's costs and benefits.

SESSIONS 8 and 9 - Module 4 : Demand Forecasting {duration : 3 hours)

It is not uncommon in developing countries to find oversized and urrerutiliEd facilities while, at the same time, large segments of the population lack adequate water service. This imbalance highlights the importance of careful demand forecasting in order to decide a project's technical, economic and financial parameters. The module discusses the characteristics of demand (domestic, commercia 1 and industrial demand; measuring demand; how demand varies among different socio-economic groups) and the determinants of demand (the effect of price, metering and consumer income on the level of demand). In addition, three practical methods of forecasting are reviewed, including their advantages and disadvantages.

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SESSIONS 10 and 11 - Module 5 : Least-Cost Analysis (duration : 3 hours)

The difficulty in quantifying the economic benefits from water supply projects often makes a complete cost-benefit analysis impractical. In such cases, least-cost analysis may be a more appropriate method for choosing between mutually exclusive alternative projects where benefits are assumed to be identical. Least-cost analysis is used to determine how. a project's economic costs can be minimized by the most efficient timing of construction and by optimization of design parameters.

SESSION 12 - Module 6 : Low-Cost Sanitation ( duration : I½ hours)

Better environmental health requires the provision of three components safe water, sanitary disposal of excreta and improved health practices. While the costs of conventional sewerage may be prohibitive, various low-cost alternative technologies are available. The module provides an orientation to the most important concepts in selecting, planning and implementing low-cost sanitation projects. It analyses three promising technologies and their costs, and the institutional arrangements required for their success.

SESSION 13 - Module 7 : Procurement (duration : 2 hours)

Difficulties and delays during project implementation often result from insufficient knowledge of procurement practices and procedures. Sound procurement practices will help ensure timely implementation and the efficient use of construction funds. The first part of the module, Procurement of Works, discusses the stages of the procurement process including the detailed design; prequalification; preparation of bidding documents; bidding; evaluation and award of contracts; execution; and the various types of contracts.

The highly international character of Procurement of Goods, presents special problems in project management. Insurance and transportation of procured equipment, bank guarantees and standardization of equipment are several aspects which differ from procurement of civil works. This part of the module provides guidance in planning for procurement of such goods, preparing documents, establishing administrative procedures, and evaluating and selecting bids.

SESSION 14 - Module 8 : Use of Consultants (duration : l hour)

Thorough project preparation ahd implementation often requires the specialized skills and expertise of consultants. The costs of employing consultants may be substantial, For this reason, careful procedures are required to define clearly the consultant's task, and then select

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and contract with the most suitable and qualified firm. The module• based on the experience of the World Bank • outlines the procedures which help ensure that the consulting services provided are appropriate for the assignment, and that both client and consultant are treated in an equitable manner.

SESSIONS 15, 16 and 17 - Module 9 : Elements of Finance (duration : · 4½ hours)

Water supply enterprises have been so far managed by staff with a predominantly technical background. With the growing scarcity of funds for investment and operations it has become essential that water supply managers acquire a good understanding of managerial finance. Although the module is not aimed at transforming technical staff into financial managers, it does provide a clear and concise discussion of some basic techniques and procedures of financial management.

SESSIONS 18 and 19 - Module 10 : Tariff Analysis (duration : 3 hours)

The increased emphasis on financial efficiency in the infrastructure sector has favoured tariffs that reflect costs. Tariffs should generate sufficient revenue to defray investment and operating costs while at the same time fostering social equity among groups with different levels of income. The module discusses the rationale behind the three major factors in selecting tariff structures : efficiency, equity and finance.

SESSION 20 - Module 11: Institutional Analysis (duration : 1½ hours)

Weak institutions often account for a number of inefficiencies in the water supply and sanitation sector : unmet demand, costly operations and inadequate administration. The module discusses five critical functions of water supply enterprises : operations, marketing, administrative support, personnel and management. lt explains how these functions interact, and emphasizes the importance of a good information system within the enterprise and the use of funding as a control mechanism.

SESSION 22 - Module 12 : Reducing Unaccounted-for Water (duration: 1½ hours}

The operating efficiency of water supply systems is normally measured by the level of water produced but unaccounted-for. Managers need to understand the causes of unaccounted-for water as well ae methods to monitor and correct the problem. The module analyses the negative effects of high levels of unaccounted-for water and describes methods to reduce the problem.

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3. FIELD VISITS

3.1 At the generous invitation by WAJ ,. the participants from ~ther countries and the EDI and WHO staff accompanied several WAJ staff on two field visits.

3.2 The visit to Nafaq Water Supply Pumping Station in Amman promoted wide-ranging discussion on water tariffs problems of ground water depletion, service levels and maintenance issues. Participants were also particularly impressed by the quality of the locally fabricated stainless steel pipework.

3.3 Khirbet Al-Sumra Waste Stabilization Ponds proved of great interest to all the visitors. The reuse of the effluent for irrigation of olives and of poplars for tiniEr production impressed most participants. It is certain that the progress of this interesting project should be largely disseminated throughout the Region.

4, RECOMMENDATIONS OF PARTICIPANTS

4,1 Participants· were asked to comment on the course contents and their value with regard to their respective jobs and to give their recommendations concerning improvements in the future.

4.2 The following were the main points raised :

a) Participants recognize the great importance of the material covered in this course and so recommend that similar courses be held on a regular basis throughout the Region.

b) It is also recommended that greater emphasis be given to the following topics :

use of consultants procurement and related matters tariff analysis financial analysis

c) The module on least-cost analysis is found very useful with regard to the sever economic conditions faced by water sector agencies in this Region. An example where this approach to project feasibility proved beneficial is the recently commissioned Waste Stabilization Pond System at Khirbet Al-Sumra, Jordan.

d} During the course the participants came to realize that tariff analysis is one of the most important factors in relation to the efficient use of water resources. It is therefore recommended that each country in the Region give serious and urgent consideration to conducting its own detailed tariff analysis with a view to the introduction of tariffs that meet its financial requirments as well as paying capacity of users.

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e) It is recommended that improvements in the financial control of projects by training and other activities be encouraged and continued in order to maximize the benefit of future investments.

f) Participants recommended that additional funds be sought to maintain high-level, well-structured programmes of training for engineers and other professionals employed in the water sector so that expertise is built up on a national basis and less dependence is placed on the use of extern a 1 expertise.

5. CLOSING SESSION

5.1 As at the opening, the closing session was attended by invited guests from each of the embassies of the participants including H .E. the Ambassador of Pakistan, Professor Ehsan Rashid. Bilateral funding and cultural agencies and UN agencies were also represented.

5.2 Two short case studies were presented by the participants from Egypt and Yemen. Unfortunately the closing schedule prevented detailed discussion of these interesting communications.

5.3 Dr. Tariq, from Pakistan, on behalf of th.e participants, presented an address in which he thanked WAJ, EDI and WHO for organizing the course and offering the opportunity for so many countries to participate. He stressed the importance of the subject and wished that similar courses be arranged elsewhere in the Region. Mr. Mohammad Al-Ras soul, the Sudanese participant, also read a telegram that the participants wished to send to His Majesty, King Hussein.

5.4 In their closing comments, both Mr. Ringskog and Mr. Hillman thanked WAJ and the participants for their help and interest which together ensured the success of the course. Mr. Hillman, in referring to the Regional Director's message, reiterated the hope that WAJ and other sector agencies throughout the Region would come to rely on CEHA for support of training and research in the whole range of environmental activities with a special emphasis on water and sanitation.

5.5 Mr. Kil any, President of WAJ, thanked the EDI staff for their hard work and for giving their time so enthusiastically to the course. He also thanked Mr. Hillman for his contribution and WHO for making the course such a success.

S.6 Mr. Kilany then presented participants with certificates for completing the course. He also presented each of the EDI staff and CEHA with a plaque showing the emblem of WA],

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00

FIRST CEHA REGtONAI.: WATER SUPPLY .AND. SANITATION SEMINAR Amman, Jordan 13 - 24 September 1986

The Water Authority of Jotdan ,-the WHO Centre of Environmental Health Activities and the Economic Development Institute

I SATURDAY I SUNDAY I MONDAY I TUESDAY I WEDNESDAY I THURSDAY

September . 13 I September 14 l September 15 I September 16 I September 17 I September 18 ~ l) l3) l5) l 7) l9) l 11)

1i AM Registration Sector Planning Cost/Benefit Cost/Benefit Demand Least-cost Analysis Analysis Forecasting .Analysis

E Opening Qremom Project Cycle

( Ringskog) E ( Ringskog) (Ringskog) (Coyaud) (Coyaud)

K (2) (4) (6) (8) (10) (~2)

Macro-Economic Discounting Cost /Benefit Demand Least-cost Low-cost Planning Techniques Analysis Forecasting Analysis Sa:1it:i.tion

",::I ::a::, 0

1 PM ( Ringskog) { Ringskog) ( Ringskog) (Coyaud) (Coyaud} (Coyaud)

I G) :::0 > Es: 3:-: tr:I

SeDtember 20 I Seutember 21 1 Sentember 22 I September 23 1 Seotember 21.. 0 l 13) U5) U1) l 19) (22)

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w AM Procurement Elements Elements Tariff Analysis Reducing of Finance Of Finance Unaccounted-for

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E Water Maintenance (Coyaud) (Hayden) (Hayden) (Hayden) ( Rino-skoa)

E (2$)

n 0 C :::0 U'l trl

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Procurement Elements Tariff Analysis Institutional CLOSING U.se of of Finance Analysis CEREMONY

2 PM Consultants (Hayden)

(Coyaud) (Hayden) (Hayden)

c~..i-:-se (:.1).

Evaluatic:v' First Session : 0830 - 1000 Discussion l

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I

Se~ond_ Session: 1030 - 1200 16.ird · Session : 1300 - 1430 Fourth Sess1on: 1445 - 1515

- Klas Ringskog, Senior Training Officer Daniel Coyaua., Senior Sanitary~

- William Hayden, Sri.er F"martial >nalyst

LIST OF PARTICIPANTS

AFGHANISTAN

Mr. Mohmoud Rahmatian

EGYPT

Mr. Aziz Samaan Abdel Shaheed

JORDAN

Mr. Mohammad Al Dajani

Mr. Mohammed Abu-Kaf

Mr. Ibrahim Younis Al Moherat

Mr. Eyad Hussein

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ANNEX 2 Page 1 of 2

Technical Vice President Central Authority for Water Supply and Sewerage, Micro-Rayon. Block No. 22, Kabul

Monitor of Behiera Project Research Department, National Organization for Potable Water and Sanitary Drainage (NOPWASD) Mogamah Building , 6th Floor Cairo

Chief, Environmental Health, Primary Health Care Department, Ministry of Health, P.O. Box 511, Amman

Environmental Health Specialist, Director of Env. :Monitoring and Control Section, Ministry of Health, P .0. Box 511, Amman

Engineer in Water and Sanitary Section, Ministry of Municipal, Rural and Env. Affairs, P.O. Box 1799, Amman

Research Engineer, Infraetructure Department, Ministry of Planning, P ,o. Box 555, Amman

JORDAN (Cont'd)

Mr. Suleiman Al-Ghezawi

Dr. Kamel M. Qaisi

PAKISTAN

Dr. M. Nawaz Tariq

SOMALI

Mr. Omar Mohammad Abdi

SUDAN

Mr. Mohammad Hassab Al-Rassoul

YEMEN

Mr. Ahmed Abdel Gader Idris

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ANNEX 2 Page 2 of 2

Irrigation Department, Jordan Valley Authority, P .0. Box 2769, Amman

Assistant Professor, Department of Civil Engineering University of Jordan, Amman

Director and Professor of Public Health Engineering, Institute of Public Health Engineering . and Research, University of Engineering and Technology, Lahore

Director, Planning, Water Development Agency, P.O. Box 1447, Mogadishu

Engineer Inspector, National. Urban water G:qµati:on P.O. Box 310, Khartoum

Technical Manager N. W. S. A. P .0. Box 104, Sana'a

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