VE0111 : Support Potable Water Decentralization

Project Description

The program will: (a) consolidate decentralization of the sector; (b) create and consolidate efficient and optimally sized service operator companies; and (c) promote private-sector participation in the newly created companies. The program has four components : (a) decentralization of services; (b) private sector participation; (c) business strengthening and immediate rehabilitation works; and (d) system rehabilitation and expansion. The five-year program is expected to help develop and consolidate some six companies in the water and sanitation sector. The first component will finance: (a) design of the service contracts between the municipalities and the new companies; (b) the program contracts; (c) preparation of a transition strategy and establishment of the new companies; and (d) the initial financial statements. More specifically, activities include: (a) induction workshops to train governors, mayors, regional organizations and organizations of civil society in the characteristics of the decentralization process and formation of development boards; (b) preparation of the general strategy for the services, leading to a set-up plan; (c) preparation of business viability studies, focusing on financial, legal, rates-related and other studies needed for the municipalities to sign service contracts with the new businesses; (d) design of the program contracts and contract oversight units; and (e) preparation of the final designs for the immediate rehabilitation works and their environmental evaluations. The second component will finance studies and documentation to engage the private sector in systems management, including: (a) drafting the terms, conditions and contracts between the new company and the private-sector operator; (b) providing support in the selection of operators; and (c) transferring the services. Specific activities include: (a) technical, financial and legal studies of alternative forms of private-sector participation in service operations; (b) promotional work and identification of potentially interested parties within the private sector; (c) preparation of technical and other specifications related to integrated management service contracts or service delivery contracts; and (d) inducements to reduce overstaffing. The third component will finance: (a) administrative, financial, business-related changes; (b) immediate rehabilitation works that have a direct, positive effect on the service's quality, reliability and technical and financial sustainability in the short run and than can be carried out in less than one year; and (c) studies and designs of the major works projects involving rehabilitation and expansion of the water supply and sanitation systems. The fourth component will finance major works to rehabilitate and expand the water supply and the sewerage and water treatment systems, including supervision costs. The works include: (a) water impoundment works; (b) construction of water mains; (c) expansion and construction of water purification and wastewater treatment plants and outflow sewers; (d) pumping stations and sewers; (e) construction of water storage tanks; (f) construction of water distribution networks and sewer systems; and (g) environmental control and mitigation works.

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* For active and closed projects, the IDB financing at Board approval is shown in US$ millions. This does not reflect any cancellations. For projects in Preparation the amount shown is the Estimated IDB Financing. Approved projects shows either Estimated IDB Financing or Historic Approved amount. The IDB financing for projects in the pipeline is indicative and may be modified during the project preparation.

VE0111 : Support Potable Water Decentralization

VE0111 : Support Potable Water Decentralization

VE0111 : Support Potable Water Decentralization

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VE0111 : Support Potable Water Decentralization

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