Urban Basic Sanitation Program and Private Sector Participation in the Sanitation Sector


                                    BOLIVIA



SECTOR:                 Sanitation

PROJECT NAME:           Urban Basic Sanitation Program and Private Sector
                        Participation in the Sanitation Sector
                        (987/SF-BO and ATN/MT-5442-BO)

TOTAL COST:             $88,833,000

FINANCING:
      IDB               $70,000,000
      IDB               $   980,000 (Multilateral Investment Fund)
    LOCAL               $17,853,000

DATE OF APPROVAL:       December 4, 1996

GENERAL DESCRIPTION:    The objective of the project is to improve the hygiene
                        and health status of the Bolivian urban population,
                        through the expansion and improvement of water supply
                        and sanitary sewerage services in cities with over 5,000
                        inhabitants.  The program further seeks to: (a) promote
                        greater private-sector participation; (b) support the
                        process of developing and consolidating the sector's
                        regulatory framework and organizing and strengthening
                        its regulatory agency, the Water Board; and
                        (c) contribute to the development and strengthening of
                        local companies or cooperatives responsible for
                        delivering water supply and sanitation services in the
                        participating cities.

                        The program consists of three components: (a) works
                        involving water collection and supply, and sewage
                        collection, treatment, and disposal (installation of
                        70,000 new water and sewage connections, construction
                        and improvment of surface water catchment areas,
                        drilling or rehabilitation of wells, installation of
                        pumping equipment, construction of conveyance pipes,
                        storage tanks, hydraulic interconnections, water
                        treatment plants, distribution systems, storerooms,
                        workshops, laboratories, construction of secondary
                        networks, trunk sewers, intercepting sewers, pumping
                        stations, outfalls and sewage treatment plants); (b) a
                        MIF technical cooperation operation (approved on
                        December 11, 1996) to support the development of a
                        regulatory framework for the sector and the
                        establishment of the Water Board, including drafting
                        regulations on institutional matters, use of public
                        goods, granting of easements, concessions and
                        authorizations, rates, service delivery, and infraction
                        and penalty provisions, as well as defining service
                        quality standards; and (c) institutional strengthening
                        of companies delivering the services, through
                        improvement of inventory systems, billing collections,
                        customer service, accounting, budgetting, materials and
                        human resource management systems and operations,
                        including master metering, house metering, inventories
                        of systems and facilities, loss reduction, equipment and
                        civil works maintenance, and sanitary control.

CONSULTANTS:            Consultants will be required to: (a) provide training
                        and institutional strengthening of service delivery
                        companies and the Ente Administrador de los Recursos
                        Hídricos del Río Ripay; (b) support a
                        special unit in the Ministry of Capitalization, which
                        will be responsible for drafting regulations for the
                        sector and strengthening the Water Board (local and
                        international consultants); (c) conduct engineering
                        studies and designs, environmental studies, plans and
                        specifications for the construction projects;
                        (d) supervise the construction works; and (e) conduct
                        studies involving the sector regulatory framework and
                        startup and operation of the Water Board.  

GOODS AND EQUIPMENT:    Goods will be required to support the civil works
                        projects.  Equipment and materials will be required,
                        including maintenance equipment, water quality
                        laboratories, tools, workshops, and storerooms.

CIVIL WORKS:            It is estimated that there will be ten calls for bids
                        for civil works and three for procurement of goods
                        associated with the construction works in various
                        cities, including Santa Cruz (materials and civil works
                        for the sewerage system), Cochabamba (materials,
                        equipment and civil works for the water supply and
                        sewerage system), Montero (civil works, materials and
                        equipment for the water supply and sewerage system), and
                        Riberalta (materials and civil works for the sewerage
                        system), as well as other cities.  In some cases the
                        procurement of goods and works will be combined in
                        single packages.  Civil works include installation of
                        new water supply and sewerage systems in several
                        Bolivian cities.  

EXECUTING AGENCY:       Fondo Nacional de Desarrollo Regional
                        Av. 20 de Octubre No 2038
                        Edificio Foncomin, Piso 5
                        La Paz, Bolivia
                        Tel:        (591-2) 37-8942; 39-2856
                        Fax:        (591-2) 39-4880
                        Contact:    Ing. Alonso Caballero
                                    Gerente General