Language : ENGLISH

Original : FRENCH

RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT

COUNTRY : CAMEROON

PROJECT APPRAISAL REPORT Date : May 2010

Appraisal Team

Team Leader : I. A. TRAORE, Principal Water and Sanitation Engineer OWAS.1

A. BELLA, Water and Sanitation Engineer/Environmentalist OWAS.1

Team Members : P. HORUGAVYE, Senior Socio-economist OWAS 1

S. BARA, Senior Gender Specialist OWAS1

C. AHOSSI, Regional Procurements Coordinator ORPF.1

B. CISSE, Financial Analyst OWAS 1

M. YARO, Principal Financial Management Expert ORPF.2

S. MBA, Infrastructure Specialist CMFO

J. FRANSEN, Environmentalist (Consultant) OWAS1.

Sector Division Manager : A. BAMBA OWAS.1 Resident Representative : A. GAHUNGU CMFO Sector Director : S. JALLOW, Officer in charge OWAS Regional Director : J.M. GHARBI, Director ORCE

;

Peer Review

El ARKOUBI, Senior Water and Sanitation Engineer OWAS 1

B. KEBA, Chief Financial Analyst OWAS.1

M. Moumni; Water and Sanitation Engineer OWAS 1

A. EYEGHE, Socio-economist OSHD.1

J. NGUEMA, Electrical Engineer OINF.3

AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND

TABLE OF CONTENTS Project Information Sheet ............................................................................................................................................. ii

EXECUTIVE SUMMARY ....................................................................................................................................... iii

Results-based logical framework ................................................................................................................................... v

Project Implementation Schedule .............................................................................................................................. viii

I. STRATEGIQUE ORIENTATION AND RATIONALE ................................................................................ 1

1.1. Project Links with Country Strategy and Objectives ................................................................................ 1

1.2. Rationale for Bank Intervention ............................................................................................................... 1

II. PROJECT DESCRIPTION .......................................................................................................................... 4

2.1 Project components........................................................................................................................................ 4

2.2 Technical Solutions Adopted and Alternative Solutions Considered....................................................... 5

2.3 Project Type ............................................................................................................................................... 6

2.4 Project Cost and Financing Arrangements .............................................................................................. 6

2.5 Project Area and Beneficiaries .................................................................................................................. 8

2.6 Participatory Approach to Project Identification, Design and Implementation ...................................... 8

2.7 Bank Group Experience and Lessons Learnt from Project Design ......................................................... 9

2.8 Key Performance Indicators ...................................................................................................................... 9

III. PROJECT FEASIBILITY .......................................................................................................................... 10

3.1 Economic and Financial Performance ................................................................................................... 10

3.2 Environmental and Social Impact .......................................................................................................... 10

IV. PROJECT IMPLEMENTATION ............................................................................................................. 13

4.1 Implementation Arrangements ............................................................................................................... 13

4.2 Monitoring ............................................................................................................................................... 15

4.3 Governance .............................................................................................................................................. 16

4.4 Sustainability ........................................................................................................................................... 16

4.5 Risk Management .................................................................................................................................... 17

4.6 Knowledge Development ......................................................................................................................... 18

V. LEGAL FRAMEWORK ................................................................................................................................. 18

5.1 Legal Instrument ..................................................................................................................................... 18

5.2 Conditions Governing the Bank’s Intervention ...................................................................................... 18

5.3 Conformity with Bank Policies................................................................................................................ 19

VI. RECOMMENDATION. ............................................................................................................................. 19

Appendix I. Comparative socio-economic indicators ............................................................................................... 1

Appendix II. Table of ongoing Bank Group operations in the country .................................................................. 1

Appendix III: Major related projects financed by the Bank and other partners ............................................. 1

Appendix IV. Map of the project area ....................................................................................................................

CURRENCY EQUIVALENTS

(November 2009)

UA 1 = CFAF 704

UA 1 = EUR 1.07

UA 1 = USD 1.61

FISCAL YEAR

1st January – 31st December

WEIGHTS AND MEASURES

m = meter

ml = linear meter

m3

= cubic meter

km = kilometer

l/inh/d = liter per inhabitant per day

1 kg = 1 kilogram

LIST OF ABREVIATIONS AFCO Administrative, Financial and Accounting Officer

AFD Agence française de Développement

AFS Administrative and Financial Services

CAA Autonomous Sinking Fund

CAMWATER Cameroon Water Utilities Corporation

CDE Camerounaise des Eaux (Cameroon Water Company)

CIDA Canadian International Development Agency

CSP Country Strategy Paper

DGA Directorate of General Affairs (MINEE)

DHH Directorate of Hydraulics and Hydrology

DRI Directorate of Regional Integration

DWS Drinking water supply

DWSS Drinking Water Supply and Sanitation

ESMP Environmental and Social Management Plan

FEICOM Special Council Support Fund for Mutual Assistance

GESP Growth and Employment Strategy Paper

GTC Gender-sensitive toilet complex

IEC Information, Education and Communication

INS National Institute of Statistics

IsDB Islamic Development Bank

IWRM Integrated water resources management

MINATD Ministry of Territorial Administration and Decentralization

MINDUH Ministry of Urban Development and Housing

MINEDUB Ministry of Basic Education

MINEE Ministry of Energy and Water Resources

MINEPAT Ministry of the Economy, Planning and Territorial Development

MINFI Ministry of Finance

MINPROFF Ministry of Women’s Empowerment and Family Affairs

MINSANTE Ministry of Public Health

PAE Public Administrative Establishment

PEFA Public Expenditure and Financial Accountability

PEMFAR Public Expenditure Management and Fiduciary Accountability Review

PRSP Poverty Reduction Strategy Paper

RDEW Regional Delegation for Energy and Water Resources

RFC Regional Follow-up Committee

RWSSI Rural Water Supply and Sanitation Initiative

SNEC Société Nationale des Eaux du Cameroun (Cameroon National Water Corporation)

STECOM Steering committee

UA Unit of Account

VDC Village Development Committee

VIP Ventilated improved pit (latrine)

ii

Project Information Sheet

BORROWER : Republic of Cameroon EXECUTING AGENCY : Ministry of Energy and Water Resources

Financing plan

Source Amount (UA) Instrument

ADF 10,000,000

Loan

RWSSI Trust Fund 5,000,000 Grant

Government 1,500,000

Beneficiaries (“Councils” –refers to

the local administrative organs as

well as the districts they represent)

0,750,000

TOTAL COST 17,250,000

Important ADB financial information

Loan currency

UA

Type of interest NA

Interest rate margin NA

Commitment fee 0.5% of the disbursed amount

taking effect 120 days after

signature of the loan agreement

Service commission 0.75% per year of the amount

disbursed and outstanding.

Maturity Every 6 months from the 11th

to the

50th

year

Grace period 10 years

ERR (base-case scenario)

NPV

33.92 %

CFA.F 19.33 billion

Duration – Main stages (expected)

Approval of Design Note November 2009

Project approval May 2010

Effectiveness August 2010

Last disbursement June 2015

Completion February 2015

Last reimbursement December 2060

iii

EXECUTIVE SUMMARY

1. The goal of the Drinking Water Supply and Sanitation Project is to support Government

efforts to increase access to drinking water and sanitation and strengthen the sector’s managerial

capacity. It falls under implementation of the Government's 2008-2015 action plan whose

ultimate goal is to raise rural drinking water and sanitation access rates to to 80% and 60%

respectively.

2. The project covers four regions in Cameroon, namely the West, North West, South-

West and South Regions. The main expected outputs of this project are: (i) rehabilitation and

construction of 88 drinking water supply networks; (ii) construction of 285 six-compartment

ventilated pit latrines in schools and health centers, 1332 single-compartment ventilated pit

latrines on private plots and 2 gender-sensitive toilet complexes in the South and North-West

Regions respectively; (iii) rehabilitation of MINEE and its regional delegations (DREEs) in the

South-West and North- West Regions, and construction of MINEE regional delegation (DREEs)

offices in the South and West Regions; (iv) training and awareness-raising for beneficiary

communities on drinking water use, sanitation and hygiene; (v) capacity-building for sector

management structures.

3. The project will raise the drinking water access rate from 33% currently to 60% in 2015

and the sanitation access rate from 17% on average to 22% in 2015 within the project area. It is

also expected to generate a change of attitude and behavior with respect to hygiene and health,

within the beneficiary community, and the average prevalence rate for diseases associated with

the lack of safe water and sanitation will decline by 30% - from 19% to 13.5%- during this

period. Hence, the project will meet the drinking water needs of 668,000 inhabitants and, through

IEC, prompt a change of behavior with regard to hygiene and health. About 750,000 inhabitants

(52% women) are expected to adopt improved latrines. The institutional structures involved in

project implementation, namely MINEE (DHH), the Councils, national enterprises and

consultancy firms, community interest groups and women’s associations will also benefit from

the project. The project will create about 300 non-permanent jobs during implementation and

154 permanent jobs at completion, in the maintenance, repair and management of water and

sanitation infrastructure.

4. The estimated project cost is UA 17.25 million, of which UA 11.56 million is in foreign

exchange and UA 5.69 million in local currency. The project will be financed with an ADF loan

of UA 10 million, a grant of UA 5 million from the Rural Water Supply and Sanitation Initiative

(RWSSI) Trust Fund as well as counterpart funds of UA 1.5 million from the Government and

UA 0.75 million from beneficiaries.

5. To better assess needs over the entire national territory, the Government prepared an

inventory of rural water supply infrastructure and used the results to design a national DWSS

plan for rural areas. Pending the commencement of this operation, the Government financed

water supply infrastructure inventories in the four project regions and used the inventory results

and the ensuing technical studies as a basis for designing the project. The lessons learned from

this project will enhance preparation of the national program and ensure better quality at entry.

iv

6. The Government sought Bank financing for the project because the Bank has the

advantage of knowing the sector better, considering its previous investments in two DWSS

operations in Yaoundé and in 16 semi-urban centers. The Bank has solid experience in

implementing rural drinking water supply and sanitation projects, especially through RWSSI

programs. Furthermore, it has sound knowledge of project basis, its environment and the

concerns of beneficiaries. The Bank's intervention will also encourage other donors, who have

hitherto focused more on urban areas, to pay attention to rural areas.

7. Knowledge management will be implemented through the "monitoring/evaluation"

component to be executed by a project monitoring/evaluation expert. Studies on rural sanitation

strategy, water resource reference data to enhance IWRM, the IEC reference study, the DHH

water database to be updated, as well as DWSS feasibility studies, will all generate a

considerable knowledge base that will lead to preparation of future strategies and operations.

v

Results-based logical framework

HIERARCHY OF

OBJECTIVES

EXPECTED

OUTPUTS SCOPE

(beneficiaries) PERFORMANCE

INDICATORS

BASELINE SITUATION

INDICATIVE TARGETS AND TIMELINE

RISKS/

ASSUMPTIONS

1. GOVT’s NATIONAL

PROGRAM GOAL

Help to improve the living

conditions of Cameroonian

rural communities through

sustainable access to drinking

water and sanitation.

LONGER-TERM

OUTPUTS (Impact)

By 2020 Living conditions of

communities improved

through greater access to

drinking water and

sanitation.

Beneficiaries

Cameroonian

rural

population

(8.2 million)

Impact indicators

1) Increased drinking water

supply

(2) Greater access to sanitation

services

3) Reduced prevalence of

water-borne diseases

4) Reduced incidence of malaria

Sources: MINEE, INS, reports

of health structures

Long-term progress

Expected by 2020 1) Increased access rate to drinking water in rural

areas from the current 45% to 80% from 2015

(2) The sanitation access rate rises from 13.5% to

60% from 2015.

3) Reduced prevalence of water-borne diseases

from 19% to 13.5% from 2015; 4) Reduced

incidence of malaria from the current 15% to 3%

from 2015.

Assumptions

- Implementation

of GESP and

application of the

Rural Water

Supply and

Sanitation policy

- Consolidation of

governance and

decentralization

within the sector

2. ULTIMATE PROJECT

OBJECTIVE

Increase access to drinking

water and sanitation in 4

regions of Cameroon

(North-West, South-West,

West and South)

MEDIUM-TERM

OUTPUTS

By 2015 (impact)

Improved access to

drinking water and

sanitation for rural

communities in four

regions of Cameroon;

Beneficiaries

Communities

in four

regions:

North-West,

South, South-

West, West

Regions of

Cameroon;

increased

access to

drinking water

for 668,000

inhabitants

and to

sanitation for

750,000

inhabitants

(52% women).

Results indicators

1. Drinking water access rate;

2. Average water consumption

per capita and per day;

3. Sanitation access rate;

4). Number of jobs created:

5). Number of persons

sensitized;

6) Reduced distance for fetching

water;

7) Improved latrines

constructed.

Source: MINEE, progress

reports, monitoring/evaluation

reports, councils, associations

Expected medium-term progress

By 2015

1. By 2015, access to drinking water for rural

communities in the four regions rises from 33%

(current) to 60%;

2. Average water consumption rises from

10l/day/inhab. (current) to 25l/day/inhab.

3. Access to sanitation services in the rural areas

of the four regions rises from the (current)

average of 17% to 22%;

4.1 At least 100 jobs created for plumbers and

small-scale repairers;

4.2 At least 54 permanent jobs created by GTCs

for women and youth;

5. At least 176 management committee members

take over IEC activities in the communities of the

project area (60% of them women)

6. Access to water within less than 500 m

7. 30% of the communities sensitized use

improved latrines.

Risk

Inefficient repair and

maintenance of water

supply networks and

latrines;

Mitigative measures

- Regular

implementation and

monitoring of IEC on

maintenance

- Involvement of

mayors, municipal

councils and water

management

committees;

- Provision for

maintenance budgets

by councils.

vi

3. INPUTS / ACTIVITIES

3.1 Works

Rehabilitation and

construction of DWS

infrastructure in the rural

areas of the four regions;

Construction of family and

public sanitation

infrastructure in the project

area;

Construction of gender-

sensitive toilet complexes

(GTCs)

3.2 IEC Conduct of Information,

Education, Communication

(IEC) sessions on hygiene,

sanitation, malaria and

HIV/AIDS,

3.3 Capacity-building

- Drafting of the rural

sanitation strategy

- Conduct of DWSS

feasibility studies

- Rehabilitation / construction

of DHH offices

- Recruitment of Technical

Assistance

Assistance contract with

Dutch Cooperation

RESULTS / OUTPUT

By 2012 (mid-term)

Simplified DWS

networks constructed;

Six-compartment

ventilated public pit

latrines constructed as

well as single

compartment latrines on

private plots

Gender-sensitive Toilet

complexes constructed;

Campaigns organized for

awareness-raising,

hygiene education as

well as malaria and

HIV/AIDS control;

IEC campaigns

organized on the

importance of

constructing improved

family latrines

Rural sanitation strategy

study conducted;

DWSS feasibility studies

finalized for the

mobilization of potential

donors;

DHH water database

updated

Offices rehabilitated/

constructed;

Technical Assistance

recruited for project

oversight, information

Beneficiaries

Communities

in the four

regions

(North-West,

West, South,

South-West),

representing

750,000

inhabitants

(52% women)

DHH,/MINE

PAT

Donors

DHH

Experts from

the DHH and

other

Results indicators

1. Number of simplified DWS

networks

constructed

2. Number of six-compartment

ventilated pit latrine complexes

constructed

3. Number of family latrines

constructed

4. Number of GTCs constructed

per region

Number of committees trained

and sensitized on hygiene and

sanitation, malaria and

HIV/AIDS

Source: MINEE, DHH,

Regional Follow-up

Committees and councils

Methods: Population surveys for

IEC, supervision report, mid-

term evaluation reports and

progress report.

Study report and strategy paper

Number of studies conducted

Number of offices rehabilitated/

constructed

Number of technical assistance

experts recruited

Expected short-term progress:

By 2012 (mid-term)

1) Forty-four (44) DWS networks simplified,

representing 50%;

2) 200 six-compartment ventilated pit public

latrines in health centers and schools, representing

70%;

3) 266 improved family latrines constructed;

representing 20%.

4) Two (2) gender-sensitive toilet complexes

constructed in the South and North West Regions

- Four (4) Regional Follow-up Committees set

up;

- 880 members of the DWS management

committee trained (30% women);

IEC study and strategy conducted

A rural sanitation strategy available from the end

of 2012;

At least 1 study conducted before the end of 2012

2 offices rehabilitated/constructed, representing

50% at the end of 2012

DHH water database updated

Six experts recruited (for project oversight,

information technology, archiving,

monitoring/evaluation, procurements and

accounting)

-1 IEC expert.

20 government experts (30% women) qualified

in various areas (geology, rural engineering,

hydrology, archiving, information technology)

will be recruited at the end of 2010 and their

Risk

Little transparency in

the procurements

process

Mitigative Measures

- Setting-up of the

special procurements

commission,

publication of bidding

results. Empowerment

of MINEE

Risk

Delay of national

counterpart funds

Mitigative Measure

Allocation of national

contribution to

activities that are

unrelated to DWSS

infrastructure

Risk

Limited capacity of

the DHH fore

coordination,

fiduciary

management and

implementation of the

project.

Mitigative measures

Human resource

capacity-building for

the DHH through the

recruitment and

training of experts,

technical assistance;

construction of

offices, procurement

of equipment.

Efficient

monitoring/evaluatio

n mechanism set up.

vii

- Training (20 experts)

3.4 Project management

Project coordination support

Baseline surveys and surveys

conducted at project

completion by INS

Financial, accounting and

technical audits

FINANCIAL RESOURCES ADF loan : UA 10,000,000

RWSSI grant : UA 5,000,000

Government : UA 1,500,000

Beneficiaries : UA 750,000 TOTAL : UA 17,250,000

technology, archiving,

accounting and

monitoring/evaluation;

Assistance agreement

with Dutch Cooperation;

Training of DHH experts

recruited by the

government and placed

at the disposal of the

project as well as experts

from other services.

implementation unit

functioning;

Project implementation

manual prepared;

Administrative, financial

and accounting

procedures manual

prepared;

Effective intervention by

the internal auditors of

FEICOM;

Effective financial and

accounting monitoring

under adequate internal

audit;

Disbursement of funds

and effective payment of

jobbers within FEICOM

regional structure;

IT equipment and

vehicles procured;

Additional surveys for

baseline data and project

completion;

Audits conducted

departments

involved in

the project

DHH

Number of training sessions

organized

Number of experts recruited by

the government, trained for the

DHH and the other agencies;

Project implementation manual

prepared and made available;

Project procedures and

implementation manual prepared

and made available;

Audit reports prepared by the

internal audit organs;

Interim and end-of-year

financial reports prepared

regularly and on a timely basis.

Status of implementation of

internal audit recommendations

prepared;

Appraisal of the investment

funds management system set up

in FEICOM regional agencies;

Number of vehicles, computers,

photocopiers and accessories

supplied;

Survey reports produced;

Annual financial audits and

periodic technical audits

conducted;

Source: Survey, supervision,

mid-term evaluation and project

completion reports

Methods: Field surveys;

appraisal, supervision and mid-

term review missions

Auditors’ opinion on the

accuracy of financial statements;

Auditors’ assessment of the

internal audit system in place;

capacity strengthened during the life of the

project up to the end of 2012.

Project implementation manual prepared

(September 2010);

Administrative, financial and accounting

procedures manual prepared (September 2010);

At least 1 report produced per year by each

internal audit organ;

1 end-of-year financial report

4 quarterly interim financial reports

4 quarterly status reports on the implementation

of recommendations

Effective settlement of jobbers’ fees by FEICOM

regional agencies

7 vehicles, 10 computers and accessories and 6

photocopiers (end of 2010), 6 scanners

2 reports prepared in 2010 and 2014

4 financial audits (1 audit per year) and 1

technical audit (end 2014)

Risk

- Limited ownership

Mitigative measure

- organization and

training of local water

management

committees and their

involvement in

monitoring

viii

Project Implementation Schedule

Report And Recommendation of Bank Group Management to The Boards of Directors

Concerning a Proposal for the Award of an ADF Loan and A RWSSI Grant

to Cameroon to Finance a Rural Drinking Water Supply and Sanitation Project.

Management hereby submits this report and recommendation concerning a proposal for

the award of a UA 10 million ADF loan and a UA 5 million RWSSI Trust Fund grant to the

Government of Cameroon to finance a Drinking Water Supply and Sanitation (DWSS) project in

rural areas.

I. TRATEGIQUE ORIENTATION AND RATIONALE

1.1. Project Links with Country Strategy and Objectives

1.1.1. The 2003-2008 PRSP included the water and sanitation sector among its priorities. A

review of PRSP implementation shows rather limited results, since the poverty levels have not

improved (40.2% in 2001 and 39.9% in 2008). Accordingly, Cameroon has designed a second-

generation strategy (set out in its 2010-2019 Growth and Employment Strategy Paper -GESP),

intended to boost growth by focusing on infrastructure development, governance consolidation,

formal sector job creation and poverty reduction, and thereby scale down the incidence of

poverty from 39.9% currently to 25% in 2019 and achieve all the MDGs. With respect to the

rural water supply and sanitation sector, the Government’s 2008-2015 action plan targets access

rates of 80% and 60% for drinking water and sanitation respectively in 2015.

1.1.2. The Government’s goal as stated in the GESP is to raise the access rate for drinking

water from 45% to 80% in 2015 and for sanitation from 13.5% to 60%. To that end, and pursuant

to the 2008-2015 action plan, the Government hopes to create 22,000 water points, rehabilitate

6000 water point and provide 150,000 households with modern latrines each year up to 2015.

The Government also envisages support actions in the form of IEC and capacity-building for

stakeholders and the regulatory mechanism. The overall cost estimate for these activities is UA

370 million for the 8 years. The Government expects to raise the necessary resources both

externally and internally. This project will thus support the implementation of the government's

DWSS policy and action plan set out in the GESP through: (i) rehabilitation of DWSS

infrastructure capacity-building for stakeholders; (ii) project ownership by the beneficiaries; and

(iii) sustainable DWSS services through better organization of the communities concerned.

1.2. Rationale for Bank Intervention

1.2.1. In Cameroon, the average rural drinking water access rate is 45%, compared to 77% in

urban areas. The population with access to adequate sanitation services is estimated at 13.5% in

rural areas compared to 17% in urban areas. Hence, Cameroon is still far from meeting the MDG

targets in this area envisaged in its strategy paper. To address this problem, the Government

adopted a rural DWSS policy and a 2008-2015 action plan in 2007 with a view to attaining

access rates of 80% for DWS and 60% for sanitation in rural areas. Furthermore, the water and

sanitation sector is fraught with constraints: (i) multiplicity of stakeholders and overlap of roles

and responsibilities, coupled with insufficient stakeholder coordination ; (ii) multiplicity of water

pump brands and unavailability of spare parts which poses serious difficulties in terms of

2

maintenance, repair and service continuity; (iii) inadequate financial resources for investment;

(v) shortcomings in project supervision/control entrusted by law to the decentralized territorial

entities (councils); and lastly (vi) the limited capacity of the agencies/departments currently

responsible for sector management.

1.2.2. In strict conformity with the GESP, the Bank's proposed strategy in Cameroon for the

2010-2014 period has two pillars: (i) promoting good governance; and (ii) contributing to

infrastructure improvement. Under the second pillar, the Bank proposes to contribute to

consolidation of the DWSS sector and the goal of this project is to support the implementation of

this second pillar and improve the living conditions of rural communities through drinking water

supply and sanitation.

1.2.3. For more effective assessment of needs, the Government prepared an inventory of rural

water supply infrastructure which it used in designing a national DWSS plan for rural areas. To

stave off other program implementation constraints, the Government has decided to execute this

project which should yield lessons to enhance the preparation and implementation of the national

program.

1.2.4. The Government has sought Bank financing for the project because the Bank has the

advantage of knowing the sector better, given its previous investments in two operations,

namely: the Yaounde Sanitation Project and the DWSS project in semi-urban areas. The Bank

also has the advantage of having implemented the Rural Water Supply and Sanitation Initiative

(RWSSI) over the last few years. The stakeholder capacity-building and assistance in project

supervision, community organization in management, infrastructure repair and maintenance,

promotion of improved family latrines and GTCs as well as beneficiary participation as proposed

by the project will all pave the way for the management of the forthcoming National Program

and ensure the sustainability of its results.

1.3. Donor Coordination

1.3.1. Cameroon is a signatory of the Paris Declaration concerning the harmonization of aid

(2005). Aid coordination has traditionally involved organization of consultative groups. At the

national level, the Directorate General for Cooperation and Regional Integration, placed under

the Ministry of Economy and Planning, is the focal point of TFPs, including the Bank. A multi-

donor PRSP follow-up committee 1 (CMB) was set up in June 2001. It is a forum in which

donors can dialogue, exchange views, coordinate their activities and adopt a common position on

key development issues in Cameroon. The CMB is part of the alignment and harmonization

process promoted by the Development Assistance Committee (DAC) of the Organization for

Economic Cooperation and Development (OECD). The CMB has gradually set up themed and

sectoral sub-groups (TSSGs). These sub-groups participate in the monitoring of PRSP

implementation, in accordance with the Paris Declaration concerning aid harmonization. They

are currently thirteen in number and cover all areas related to the economic, social and human

development of Cameroon. The Bank has been the lead agency for the Public Finance Sector

Committee since September 2008. Within the framework of a Multi-partner Committee, CMB

1 Germany, African Development Bank, World Bank, Canada, Spain, United States, France, IMF, Great Britain, Japan,

Netherlands, UNDP, European Union.

3

members also meet with Government officials and other stakeholders (private sector, civil

society, parliament, etc.) to exchange views on the implementation of the country's development

program.

1.3.2. The main rural DWSS sector donors are: Japanese Cooperation, the European Union (EU),

the Islamic Development Bank (IsDB), the French Development Agency (AFD), KFW, Belgian

Technical Cooperation, the Canadian International Development Agency (CIDA), the World Bank,

and UN agencies like UNICEF and the UNDP. These donors have often funded small-scale and

widely dispersed operations. Most of these operations ended in 2007. Only Japanese Cooperation,

the Islamic Development Bank (IsDB), UNICEF, the World Bank and ADB (with the water

infrastructure inventory study) are still active in the field. With this project, the Bank will become

one of the key donors of the sector. The table below presents a breakdown of the total

contributions of these donors from 2002 to 2009:

Sub-sector *

Percentage

GDP (average

2002-2007) Workforce

Rural drinking water

supply and sanitation 0.13% - -

Stakeholders – Average public expenditure from 2002 to 2009 (Rural DWSS)**

Government Donors

Japanese Cooperation : 36.19%

Belgian Cooperation : 11.52%

World Bank : 13.16%

IsDB : 23.03%

AFD : 0.66%

EU : 7.57%

ADB : 1.29%

CIDA : 6.58%

[UA 52.27 million] [43.17 UA million]

[56.9%] [43.12%]

Aid coordination level

Existence of thematic working groups [Yes]

Existence of a global sector program [Yes]

ADB’s role in aid coordination****

[M]

* the most appropriate; ** Years [Y1 to Y2]; *** for this sector or sub-sector

**** L : Lead donor; M: member (not leader): None: no role

4

II. PROJECT DESCRIPTION

2.1 Project components

Name of

component

Component

cost

Description of components

A Drinking Water

Supply and

Sanitation

(DWSS)

Infrastructure

UA 11.94

million Drinking water supply

The project will entail the construction of 88 simplified DWS networks. Simplified drinking water

supply networks will be constructed, some gravity-based and others equipped with a pump. The

target is 22 simplified DWS networks in the West Region, 16 simplified DWS networks in the South

Region, 28 simplified DWS networks in the North-West Region and 22 simplified DWS networks in

the South-West Region.

Sanitation The project will involve the construction of 285 six-compartment ventilated pit latrines in schools

and health centers as follows: (i) 40 in schools and 31 in health centers of the West region; (ii) 40 in

schools and 31 in health centers of the South Region; (iii) 41 in schools and 31 in health centers of

the North West Region; and (iv) 40 in schools and 31 in health centers of the South-West Region.

Furthermore, a total of 1332 single compartment latrines (representing about 333 latrines per region)

will be constructed on private plots in each of the four regions as well as gender-sensitive toilet

complexes (GTCs) in the South and North West regions on an experimental basis.

B

.

Information,

education and

communication

UA 0.52

million

IEC activities shall entail: firstly, a diagnosis of attitudes and behavior with respect to hygiene

followed by the drafting of an adapted strategy on communication for behavior change (CBC);

secondly, the training of stakeholders (decentralized branches, management committees and VDCs);

and lastly, the conduct of field activities on the promotion of basic hygiene and sanitation.

Communication tools will be developed and used during the awareness-raising campaigns to be

organized on drinking water use, improved drinking water conservation, hygiene in dwellings and

public areass, promotion of sanitation infrastructure for households, regular hand-washing with soap,

and malaria and HIV/AIDS control.

C

.

Institutional

support to the

structures involved

in the project

UA 3.59

million

Capacity-building for the departments and agencies involved in the project

The capacity-building has several sub-components to improve performance in the DWSS sector in

general and in the rural sector in particular. The following have been planned:

The existence of a studies fund has enabled the conduct of: (i) a study on rural sanitation strategy;

(ii) a study on water resources to consolidate the IWRM and update the DHH database; (iii) a

rural DWSS feasibility study for localities in the project area that are not covered and which have

made a request to that effect;

Technical assistance to the DHH: (i) for project supervision, a technical assistant will be recruited

for the Sub-department of Rural Water Supply for a period of 24 months; (ii) a documentation

officer will be recruited for 6 months to help the DHH set up a good archiving system; (iii) an IT

specialist will be recruited for a period of one year to help the DHH optimize the IT system to be

installed and train the staff; and (iv) a monitoring/evaluation expert will be recruited for a period

of 24 months, renewable, for the monitoring/evaluation of the project within the DHH.

Various training sessions in water-sector specializations (planning and monitoring of DWS

works, operation of DWS systems, etc.) are envisaged for the DHH of MINEE, to enable it carry

out its duties;

Procurement of vehicles as well as IT and office equipment for the DHH: 7 vehicles, 10

computers, 6 photocopiers and accessories, 6 scanners;

Support to councils to phase them gradually into their role of project ownership and attendant

supervision. Such support will be provided through an agreement with the Dutch Cooperation

system, which has proven experience in supporting participatory local development as well as

qualified experts in this area.

D Project

management and

coordination

UA 1.20

million

This component concerns general project coordination (allowances, per diem and the operating costs

of the Project Coordination Unit). The operating costs relating to incentive bonuses for national staff

seconded to the project and the overheads (insurance, water and electricity bills, maintenance, sundry

management costs, etc…) shall be borne by the project. I will also finance the auditing of project

accounts (financial audit, procurement audit and technical audit to reconcile the actual outputs and

the expenses).

5

2.2. Technical Solutions Adopted and Alternative Solutions Considered

2.2.1 Cameroon has five rural drinking water supply (DWS) systems adopted in accordance

with the natural environment: (i) developed springs, (ii) equipped wells, (iii) gravity-based DWS

(or simplified water distribution networks), (iv) power-operated DWS, and (v) boreholes

equipped with hand-operated pumps (HOPs). Simplified water distribution networks or gravity-

based DWS option has been selected for the project because the areas it covers have a rolling

topography with abundant sources of good quality water which can be tapped through gravity.

The selection of this system was based on an analysis of the drinking water supply systems

constructed in the country, the requests of the communities concerned and the Government’s

policy to improve the water supply in rural areas. In addition to raising water supply, the gravity-

based system brings water distribution closer to consumers through standpipes and private

connections. Lastly, the solution adopted makes it possible to build the communities’ capacity to

manage simplified DWS network systems. The equipment used and the quality of water supplied

will be in keeping with the applicable international standards.

2.2.2 With respect to sanitation, the wastewater disposal options considered entailed choosing

between VIP latrines and manual flush toilets (MFTs). VIP latrines were preferred to MFTs

which consume more water and require a private connection to function properly. Considering

the Government’s ambitious latrine construction scheme (1,200,000 latrines by 2015), the option

to partially subsidize latrines on private plots was retained for the medium term, pending the

expected catalytic effect of IEC on hygiene and sanitation. Indeed, the awareness-raising should

gradually lead the communities to take full control of the construction and maintenance of their

own latrines. The table below presents the alternatives that were not adopted.

Table 2.2

Project Alternatives Considered and Reasons for Rejection Alternative Brief description Reasons for rejection

DWS: rehabilitation and

construction of boreholes

equipped with hand-operated

pumps

Construction of water-supply

boreholes fitted with hand-

operated pumps; one borehole

per 300 inhabitants with a

minimum flow of 0.5 m³ per

hour.

This type of water point is very rarely used in the

mountainous North-West and South-West regions and is

on the decline in the other regions of the country. Indeed, it

is not suitable for multi-village supply systems and the

service level is rather low. Furthermore, it does not require

a very high degree of community organization to manage.

Hence, it is of limited interest as a rallying point for

community capacity-building.

DWS: rehabilitation and

development of sources

Rehabilitation and

development of water sources

generally located outside the

locality concerned

This option is not suitable for multi-village supply systems

and the service level is rather low. The sanitary conditions

for drawing water are not always satisfactory.

Furthermore, this type of water point is often located

outside the target area and consequently does not really

ease the strain of fetching and transporting water.

Sanitation: the alternative

was to build MFTs

Build MFTs instead of VIP

latrines

MFTs would require a more costly initial investment from

the poor rural communities. Besides, MFTs consume more

water and require a private connection to function

properly, whereas these will be very limited in number in

the medium term. Only the most affluent segment of the

population is requesting MFTs.

6

2.3 Project Type

The current intervention is envisaged as a project loan and grant. Pending the

formulation of a national program and a Medium-Term Expenditure Framework (MTEF) for the

sector, an autonomous project is the most appropriate instrument.

2.4 Project Cost and Financing Arrangements

2.4.1 The total project cost, net of taxes, is UA 17.25 million, of which UA 11.56 million in

foreign exchange (67%) and UA 5.69 million in local currency (33%). The ADF contribution to

project financing will be a loan of UA 10 million, representing about 58% of the total cost. The

RWSSI Trust Fund will contribute a grant of UA 5 million, representing 29% of the total cost.

The Government will contribute UA 1.5 million and beneficiaries will make a cash contribution

of UA 0.75 million. These costs, which are determined based on technical studies conducted by

the technical services of MINEE include a 10% provision for physical contingencies and a 4%

yearly provision for price escalation. This relatively high rate for physical contingencies stems

from the fact that the size of the network could vary depending on the selected locations for

water points in the villages covered by the network and also owing to the uncertain nature of the

subsoil to be excavated for the laying of buried pipes. The provision for the price escalation

which could stem from a 3% inflation rate in the CEMAC area, has been set at 4% based on the

real price increase observed for recent contracts awarded to MINEE. Furthermore, the

breakdown into local currency and foreign exchange was done based on similar contracts

recently financed by other donors.

Table 1

Project Cost by Component (in UA million) Components

Costs in foreign exchange Costs in local currency Total cost

A. Basic infrastructure development 7.14 2.78 9.92

B. IEC 0.33 0.13 0.46

C. Institutional support 2.63 1.02 3.65

D. Project management 0.00 1.05 1.05

Total base cost 10.10 4.98 15.08

Physical contingencies (10%) 1.01 0.50 1.51

Price escalation (4%) 0.44 0.22 0.66

TOTAL PROJECT COST 11.56 5.69 17.25

Table 2

Project Costs by Financing Source (in UA million)

Financing sources Costs in

F.E. L.C. Total

ADF loan 8.06 1.94 10.00

RWSSI grant 3.50 1.50 5.00

Government 0.00 1.50 1.50

Beneficiaries 0.00 0.75 0.75

Total 11.56 5.69 17.25

7

Table 3

Project Costs by Expenditure Category (in UA million)

Expenditure category Costs in

F.E. L.C. Total

Works 7.51 2.92 10.44

Goods 0.25 0.10 0.34

Services 2.34 0.91 3.25

Functioning 0.00 1.05 1.05

Base cost 10.10 4.98 15.08

Physical contingencies (10%) 1.01 0.50 1.51

Price escalation (4%) 0.44 0.22 0.66

TOTAL PROJECT COST 11.56 5.69 17.25

Table 4

Expenditure Schedule by Component (in UA million)

Table 5

Project Costs By Category and Financing Source (in UA million) Category/ Financing sources ADF RWSSI Government Beneficiaries

(FEICOM)

Total

Works 5.35 4.342 1.50 0.75 11.94

Goods 0.39 0.00 0.00 0.00 0.39

Services 3.06 0.66 0.00 0.00 3.72

Functioning 1.20 0.00 0.00 0.00 1.20

TOTAL PROJECT COST 10.00 5.00 1.50 0.75 17.25

2.4.2 The Government’s contribution will cover 12.5% of works and will mainly concern the

construction of offices for the DHH and the Regional Delegations for Water Resources and

Energy. The government will also finance the salaries of civil servants seconded to the project.

The national counterpart funds will be budgeted annually from 2011. The total contribution of

beneficiaries (households and councils) will be UA 0.75 million. Household contributions will be

10% of the cash cost of latrines (UA 0.085 million) and shall be one of the criteria for selection

of beneficiaries. The councils will contribute UA 0.665 million to public water supply and

sanitation through FEICOM, a council investment fund. The RWSSI Trust Fund grant will be

allocated essentially to sanitation infrastructure and passed on to FEICOM under the same

conditions as formulated by the Bank, except for a transfer commission of 0.5% of the grant

amount, which FEICOM will pay from its equity to the CAA.

2 The RWSSI contribution of UA 5 million will finance: (i) works for UA 4.34 million, of which UA 3.49 million will be

allocated to sanitation and UA 0.85 million to DWS; and (ii) assistance services to councils for project supervision

amounting to UA 0.66 million.

Components 2010 2011 2012 2013 2014 TOTAL

A. Infrastructure development 2.27 3.97 3.97 1.13 11.34

B. IEC 0.05 0.10 0.16 0.16 0.10 0.52

C. Institutional support 0.42 0.84 1.25 1.25 0.84 4.18

D. Project management 0.12 0.24 0.36 0.36 0.24 1.20

COUT TOTAL DU PROJET 0.59 3.45 5.74 5.74 2.32 17.25

8

2.5 Project Area and Beneficiaries

2.5.1 The rural DWSS project covers 4 (four) of the country’s 10 (ten) regions, namely: the

North-West, South, West and South-West Regions. In administrative terms, the project covers

125 council areas: 25 in the South, 41 in the West, 32 in the North-West and 27 in the South-

West. The drinking water access rates in the project regions are mostly below the national

average: 28.7% in the West, 35.4% in the South, 43.2% in the South-West and 52% in the North-

West. The project area was selected based on: (i) low access rates (33% on average); (ii) the

existence of an inventory of water resource infrastructure in the target areas; (iii) priority given

to water supply in local development plans; (iv) availability of feasibility studies on simplified

networks; and lastly (v) good rural community organization in the target regions.

2.5.2 The project’s beneficiary population is estimated at about 668,000 persons for drinking

water and 750,000 persons for improved sanitation. Hence, the estimated average prevalence rate

of 19% for diseases associated with poor water and sanitation should decline by 30% at project

completion. The project will create temporary jobs during implementation and at least 154

permanent jobs on completion, relating to the management of drinking water networks and

GTCs. Such jobs will mainly be for plumbers and service providers. Furthermore, the water

point management committees and municipal councils concerned will receive training that will

enable them to manage the networks better and strengthen their project planning and supervision

capacity. At the central level, the organization of the DHH and MINEE is expected to improve

through consolidation of equipment and human resources. Indeed, the project provides for the

training of DHH experts, technical assistance in project supervision and control, technical

assistance in archiving and the procurement of appropriate IT equipment. The private sector will

benefit from the project indirectly by bidding for works, goods and service contracts.

2.6 Participatory Approach to Project Identification, Design And Implementation

2.6.1 This operation was conducted using a participatory approach. The various stakeholders

were consulted during preparation of inventories of water supply infrastructure built by the

Government in the four regions. This was done with the support of council mayors, village

development committees, the business community, village chiefs and MINEE. The Bank’s

preparation and appraisal missions visited the target project regions and met with the regional

authorities, council mayors, water management committees and some village chiefs in each

region to assess the project site selection process and the level of involvement of the potential

beneficiaries. These missions noted that the selection of sites and infrastructure was conducted in

a participatory manner which involved all stakeholders. They feature among the priorities

retained in the community development plans drafted under the National Participatory

Development Program (NPDP) supported by the World Bank. Initially focused on 6 regions, the

NPDP currently covers the country’s 10 regions and has led to confirmation of the priority given

to drinking water by the communities. In certain cases, support to councils for planning and

project supervision is provided with the help of Dutch cooperation.

2.6.2 The stakeholders consulted will also be involved in project implementation through the

village follow-up committees, council and regional follow-up committees, water point

9

management committees, participation in financing through FEICOM, participation in behavior

change campaigns on hygiene (through NGOs and women’s associations), works contracting and

infrastructure management with the private sector (large enterprises, SMEs and local jobbers).

As members of the various committees, these stakeholders will conduct a quarterly evaluation of

project execution in the target villages and council areas and give their opinions on the conduct

of the project and propose solutions in case of difficulty.

2.7 Bank Group Experience and Lessons Learnt from Project Design

2.7.1 The main lessons learnt from the implementation of Bank operations in Cameroon in

general and the DWSS sector in particular are essentially of three kinds: (i) the limited capacity

of management structures within the sector (case of DHH) and little coordination between

stakeholders (especially concerning sanitation); (ii) a procurement process which is long and not

transparent (case of PADY); and (iii) major delays in signing agreements and fulfilling

effectiveness and first disbursement conditions for grants and loans (DWSS project in semi-

urban areas). This situation results in poor ownership by beneficiaries which leads to lack of

maintenance. These lessons led the project team to: (i) provide for capacity-building for the

departments and agencies involved in project implementation at the central and decentralized

levels; (ii) take adequate measures to ensure that the procurement process is fluid and more

transparent; (iii) help strengthen the coordination mechanisms for various donors of the DWSS

sector; (iv) request the Government to set up the project management organs in advance so that

they can start preparing the various documents needed to fulfill the conditions precedent to first

disbursement upon conclusion of the negotiations; (v) simplify the conditions for effectiveness

and first disbursement; (vi) provide for the organization and training of water management

committees to ensure greater ownership; and lastly (vii) provide for technical audits to ascertain

that the sums disbursed correspond to the infrastructure constructed (value for money).

2.8 Key Performance Indicators

2.8.1 The main indicators defined for monitoring project impact are: for the impact indicators,

the prevalence rate trends for water-borne diseases and others associated with poor

environmental hygiene and sanitation; and the number of people with access to drinking water;

and for the intermediate effects (i) the additional number of people with access to drinking water

at a shorter distance (less than 500 m), (ii) the number of people who adopt a good attitude to

hygiene and build their own improved latrines, and (iii) the number of jobs created through the

management of simplified networks and gender-sensitive toilet complexes. With respect to the

outputs, performance will be measured through: (i) the number of DWS systems and the number

of public sanitation systems constructed in public buildings; (ii) the number of systems

constructed in private dwellings; (iii) the number of MINEE and DHH experts trained; and (iv)

the number of persons, management committees and municipal councils sensitized and educated

in hygiene and health.

2.8.2 At the start of the project, the INS will conduct a reference data update survey which

will provide additional data to be used for monitoring project impact. Later on, a project

monitoring/evaluation expert will pool all the data on the results of project activities and the

intermediate effects collected by the decentralized services of the relevant ministries, Regional

Directorates for Water Resources, women’s associations involved in IEC, water point

management committees and councils.. The expert will process this data and disseminate it to

10

MINEE project officials, the steering committee and the Bank for analysis and appropriate

corrective action. The INS will also conduct a survey at project completion to determine the

overall project impact on access to drinking water and sanitation, health and water-borne

diseases in the project area.

III. PROJECT FEASIBILITY

3.1 Economic and Financial Performance

Main economic data

ERR (base-case scenario): 33.92% - NPV: CFA.F 19.33 billion

3.1.1 The project has many financial and socio-economic benefits. It will guarantee drinking

water supply for the communities in the four project regions; improve hygiene, sanitation and

health; and ensure fairer distribution of benefits among economic agents (State, enterprises,

sector operators, consumers). Considering the social nature of the project, its financial goal will

be financial equilibrium for those operating the facilities and infrastructure sustainability.

3.1.2 The economic returns are measured in terms of the benefits which accrue to

beneficiaries in the form of regular and adequate drinking water supply, access to sanitation

services, time gained, a decline in water-borne diseases and malaria and a general improvement

in living conditions. The project’s economic rate of return, which reflects its benefits, stands at

33.92 %. This rate is calculated based on investment and operating costs and quantifiable project

benefits represented by: (i) the economic value of the water produced; (ii) savings on the health

budget of beneficiaries owing to a decline in water-borne diseases; (iii) savings on the education

budget owing to a reduction in academic failure; (iv) easing the strain involved in fetching water

and the number of hours gained and put into more useful purposes. Based on an opportunity cost

of capital estimated at 10%, the net present value will be CFA.F 19.33 billion, indicating a

significant impact for all economic agents including the beneficiary communities. An analysis of

the project sensitivity test results (10% increase in investment costs and a 10% reduction in

health-related benefits) shows that the rate of return and the net present value remain at

acceptable levels (the internal rate of return remains higher than the 10% opportunity cost of

capital in all cases), thus confirming the viability of the project.

3.2 Environmental and Social Impact

Environment

3.2.1 The project is classified under Environmental Category 2. It is a DWSS project which

will build simplified water supply systems, mainly by tapping water from various sources using

gravitational flow, and build domestic wastewater drainage facilities in public premises and

private dwellings. It will have a significant positive impact by improving community health and

environmental hygiene; and a temporary negative, though controllable, impact in terms of noise

and dust, possible groundwater pollution by latrines and surface water pollution by engine oils,

tree felling, etc.

11

3.2.2 The GESP prepared in August 2009 indicated that there were “few” or “no” negative

effects, mostly temporary and correctable through simple mitigative measures. These measures

have been recommended to minimize the project’s negative impact on the environment. The

Government and the ADF will rigorously monitor their implementation, in accordance with the

1996 Law on the Environment Code. The cost of these measures, estimated at UA 0.273, is

included in the project construction costs.

Climate change

3.2.3 The Government is currently conducting a reference study as part of the preparation

process for the national integrated water resources management plan with support from the

Global Water Partnership (GWP). This study will undertake a global assessment of surface and

groundwater resources and their variability with climate change. Furthermore, the updating of

MINEE’s current database, as provided for under the DWSS-MSU project, will constitute the

starting point for the integrated management of such water resources. The findings of this study

will also make it possible to conduct a qualitative and quantitative assessment of such resources,

and study their variability with regard to natural and man-made factors, including climate

change. It will be a comprehensive study which should lead to an improvement in integrated

water resources management in Cameroon and in the project area in particular.

Gender issues

3.2.4 The access rate to drinking water in the 125 target communities is below the 45%

national average. The primary school completion rate is 23%, standing at 36% in urban areas and

10% in rural areas. Women and youth are particularly concerned, since fetching water is 70% the

responsibility of the women and children in rural areas. Furthermore, situation analysis reveals

the following: (i) the available infrastructure (connections to gravity-based networks) does not

create jobs (water point management) for women; (ii) the population attaches no importance to

water quality; and (iii) poverty remains very high in the project area.

3.2.5 In keeping with the MINPROFF policy of creating income-generating activities around

the water points and gender-sensitive latrines in order to guarantee maximum benefits for women

from such infrastructure, reduce their hardship, change community behavior in favor of hygiene

and sanitation and reduce poverty, the project plans to build and equip 2 (two) gender-sensitive

toilet complexes (restaurant, sewing and sales point for non-wood forest products) complete with

water points and toilets. In such rural areas, the women and youth associations which manage the

GTCs will be trained in financial management, project design and monitoring/evaluation.

Awareness-raising on hygiene and sanitation will also be organized for members. They will be

represented on the management committees and will serve as liaison agents within the

communities. Operation of the two GTC complexes will create 54 permanent and 80 non-

permanent jobs in the first year. With respect to IEC, the women and youth associations will be

trained in hygiene and sanitation, water and health, water management, group leadership and

environmental issues. They will be provided with group leadership tools so that they can act as

liaison agents within the community. They will have a guaranteed representation of 30% within

the decision-making bodies of the management committees; and 60% of the liaison agents will

be women.

12

3.2.6 Construction of the GTCs will have a major impact on the population: (i) connection of

the beneficiaries to gravity-based networks and an increase in the number of water points and

latrines in the communities; (ii) payment of contributions for the repair of breakdowns; (iv)

award of credits to members for income-generating activities; and (v) maintenance of rural roads

and markets.

Social issues

3.2.7 The project will increase sustainable access to drinking water and sanitation for project

area communities. Apart from providing sufficient water at close proximity (at most 500 m) to

668,000 inhabitants, the project will attach great importance to water quality and support the

relevant technical services so that they can conduct, on a more regular basis, hysic-chemical

analysis of the water produced and distributed.

3.2.8 The project will also encourage behavior change for 750,000 inhabitants through the

behavior change awareness campaigns to be organized on topics such as hygiene and sanitation

(construction of improved latrines), HIV/AIDS and malaria prevention, the benefits of clean

water at the supply and consumption points, hand-washing with soap, maintenance of water and

sanitation infrastructure, etc. Hence, access to improved sanitation will rise from 17% to 22% in

the project area. Improved hygiene will reduce diarrhoeal disease incidence by 30% and increase

the availability of the population (time gains of at least 1 hour per day) for productive labor

(income-generating activities and schooling) and leisure.

3.2.9 In the project area, the water rate is not set by government authorities. Rather, it is set

by consultation within the respective water point management committees which apply a lump

sum per family, on a case-by-case basis, depending on whether the family has a private

connection (CFA.F 7000/year) or draws its water from a standpipe (CFA.F 1000/year). This

price only covers water point maintenance and repair. In certain cases, the amount collected is

not enough to ensure such maintenance. This system is expected to gradually evolve towards

consumption-based pricing, especially for households with private connections. The payment

period for water dues will be adapted to the social conditions of each region, with special

consideration given to harvest periods, which are the main source of monetary income for the

rural communities concerned.

3.2.10 The water supply networks will be managed either privately or by a water point

management committee. The mode of management shall be determined after discussions among

the beneficiaries. Contracting out the management of these mini-networks will be encouraged,

considering that the current system of volunteer work is neither fully efficient nor sustainable in

the long-term and does not facilitate cost-recovery and network extension. The project

implementation and operation of the facilities will create more than 300 temporary and 100

permanent jobs for plumbers.

13

Forced resettlement

3.2.11 Project implementation will not entail relocation of the population. The water sources

are remote, located outside the villages. The pipes will be laid on public land and there are no

plans to destroy any assets or social infrastructure. Hence, there is no need for a resettlement or

relocation plan.

IV. PROJECT IMPLEMENTATION

4.1 Implementation Arrangements

4.1.1 MINEE will stand as the project owner overseeing the operation. The project executing

agency is MINEE’s Department of Water Resources and Hydrology (DHH), acting through a

project coordination unit. It will undertake the technical implementation of the project in

collaboration with the local councils and FEICOM. It will also receive technical assistance

composed of a procurements expert, a monitoring/evaluation expert and a financial management

and accounting expert. The DHH will carry out the following duties with technical assistance

support,: (i) prepare the documents to enable the Government to fulfill the loan and grant

conditions; (ii) ensure the fulfillment of State obligations set out in the Loan Agreement and the

Grant Protocol; (iii) carry out the programming and monitoring of various project activities; (iv)

submit quarterly progress reports to the Bank; (v) prepare quarterly budgets and submit them

within the prescribed deadlines; (vi) recruit an external audit firm and carry out the project’s

financial management; and (vii) recruit and supervise various service providers responsible for

project implementation.

4.1.2 The project coordination unit will be headed by a Coordinator as well as two engineers:

one in charge of the operational coordination of project activities in the West and North-West

Regions and the other in charge of activities in the South and South-West Regions. The Minister

of Energy and Water Resources in November 2009 issued a decision to appoint these engineers.

The team will be strengthened with one IEC expert provided by MINPROFF. It will also rely on

the services of three short-term consultants: an IT expert to provide training on the use of the

computer equipment to be procured, a documentation officer to set up the archiving system and a

hydraulics engineer to provide training on water facilities management. At the regional level, a

Follow-up Committee will be set up in each of the regions to ensure efficient on-site conduct of

the project, in keeping with the expectations of the beneficiary communities. The regional water

engineer will be responsible for daily monitoring of works.

4.1.3 An administrative and financial procedures manual and project works execution manual

will be prepared by the DHH and submitted for Bank clearance approval. Under the terms of the

Loan Agreement and Grant Protocol, the borrower will undertake to draft and adopt the manual

of administrative, accounting and financial procedures and the project execution manual not

more than three months after the effective date of the project. MINEE will draw up a

performance contract with the key project management staff and evaluate it annually.

14

Steering bodies

4.1.4 The Steering Committee (STECOM) of the ongoing DWSS project in semi-urban areas

will pilot the current project. This committee, composed of MINEE, MINATD, MINSANTE,

FEICOM, MINEP, MINDUH, MINEDUB, MINPROFF, MINEPAT, CAA and 2 (two)

representatives of the decentralized territorial councils concerned, will also include a

representative of the INS. As was the case for the previous project, the Secretary General of

MINEE will chair STECOM and the Project Coordinator shall provide secretariat services.

4.1.5 The project’s STECOM shall coordinate project actions and ensure that they are in line

with current sectoral policies. Specifically, STECOM will: (i) approve planning and budget

documents; (ii) ensure that approved annual budgets are consolidated and included in the budget

act each year; and (iii) monitor overall project progress through the status reports submitted by

the DHH.

Procurement arrangements

4.1.6 All goods and works shall be procured through national competitive bidding (NCB) in

accordance with national bidding procedures under the terms outlined in Annex B5, with bidding

documents that will have received the Bank’s “no-objection” notice . This option is justified by

the following factors: (i) the amounts involved are relatively small (less than UA 2 million on

average per contract); (ii) the works are geographically dispersed (4 regions); (iii) the works require

a huge volume of local labor; and (iv) high quality works expertise and goods are available locally.

Consultancy services financed with Bank resources will be procured in accordance with the Bank’s

Rules and Procedures for the Use of Consultants (May 2008 version) using the Bank’s standard

bidding documents.

4.1.7 All community works (for public and private latrines and the 2 GTCs) will be executed

in accordance with the provisions of the Works Execution Manual, as reviewed and approved by

the Bank. The ex-post review procedure is authorized under specific conditions defined in Annex

B5.

4.1.8 The DHH, acting through the coordination unit, will be responsible for the procurement of

goods, works and consultancy services. With the assistance of a procurements expert and an

experienced Special Public Procurements Commission which is familiar with donor procedures in

general, the unit will be able to conduct project procurements efficiently. A procurement training

session is planned for the project commencement, to build the capacity of project management

team members.

Financial management

4.1.9 The administrative, financial and accounting management of the project shall be

conducted by the following three organs: the Project Coordination Unit (PCU), the CAA and

FEICOM. The unit shall keep the project accounts and prepare the required consolidated

financial reports. To ensure the efficient conduct of these duties, a management mechanism will

be set up within the PCU (preparation of a procedures manual, software with appropriate

15

configuration and training) and within FEICOM agencies in the four project regions. The CAA

shall open two special accounts, one for the loan and the other for the grant; and two special sub-

accounts, one managed by FEICOM and the other managed by the PCU. During implementation,

State control organs such as the Inspectorate General of MINEE, could assess project

management by conducting ex-post audits; such organs have the authority to audit all public

funds. The audit offices within FEICOM are: the Financial Controller, the Management

Controller and the Internal Auditor. The external audit mechanism will involve an independent

external audit firm and the Chamber of Accounts for FEICOM annual accounts only; it will also

include Citizen Control, to be exercised at departmental and council level by the VDC.

4.1.10 FEICOM was set up to meet the public investment needs of local councils. It currently

manages the resources of certain projects funded by technical and financial partners such as the

World Bank, the European Union, GTZ, etc. FEICOM has accurate public bookkeeping, with the

administrative and accounting phases handled respectively by the commitments monitoring section

of the Sub-department of Financial Assistance, and by the Accounting Officer. In its regional

branches, FEICOM has, inter alia, set up administrative and financial services (AFS) which keep

the accounts for revenue collected through a bank account whose details are sent to the Head office

every month.

4.1.11 The appraisal of the capacity of the various organs and of the financial management

measures points to the conclusion that, subject to the adoption of the above-mentioned internal and

external audit and project management mechanisms, the current administrative, financial and

accounting system requested by the Bank for public sector projects is acceptable and that the

residual fiduciary risk will decline to a moderate level on the whole.

4.2.� Monitoring

4.2.1 The project will be implemented over a period of 48 months, with effect from October

2010, the estimated date of loan effectiveness. The Bank will undertake: (i) a launching mission in

the fourth quarter of 2010; (ii) six-monthly supervision missions, in accordance with the provisions

in force; and (iii) a mid-term review mission in December 2012.

4.2.2 A monitoring/evaluation mechanism will be set up to monitor and measure the changes

obtained through the project as well as its targets and impact on beneficiaries. A

monitoring/evaluation expert will be recruited to monitor project results and impact indicators and

also the implementation of the Environmental and Social Management Plan. S/he will work in close

collaboration with a community communication expert who will monitor the implementation of the

communication for behavior change campaign. The contribution of the National Statistics Institute

(INS) will be sought at the project commencement (2010) and completion (end of 2014) to study

the project’s main monitoring indicators. Project costs include a sizeable budget to cover such

surveys. The expert shall use the baseline indicator update study as well as the decentralized

branches of the institutions concerned to collect, process information for transmission to the

project’s steering and implementing agencies and to the Bank for any corrective actions. The Bank’s

Cameroon Field Office (CMFO), which was recently reinforced through the recruitment of a

procurements expert and plans to recruit a water and sanitation expert, will play a crucial role in

supporting the executing agency through supervision missions and in monitoring implementation of

16

the recommendations ensuing from such missions. Its quarterly project coordination meetings,

organized in collaboration with MINEPAT, have already yielded results in the monitoring and

performance improvement of the Bank’s current portfolio.

4.3 Governance

4.3.1 The economic and financial governance risks in the country remain high. However, the

Government has taken the following measures to mitigate such risks: intervention by the various

State audit bodies; enactment of a law to adopt a new financial regime on 26/10/2007;

implementation of the public finance modernization plan and the PEFA-based plan approved in

2008; revision of the Procurements Code; ongoing implementation of the CHOC (Change

Habits, Oppose Corruption) project and the Governance Reform Support Project; and

prosecution of those responsible for economic and financial embezzlement. However, the effects

have to be monitored by both parties, in order to gradually gauge the full impact of the results.

4.3.2 The governance risk in project implementation is inherent in the procurements process

for goods and services. The Bank will ensure that its rules of procedures in this area are

rigorously applied. Furthermore, the following measures have been envisaged: procurement

capacity-building for the DHH; establishment of a special MINEE commission; technical

assistance by a procurements expert; and the publication of bidding results in the national press.

The Bank will conduct supervision missions and technical and financial audits to ensure

conformity between the services provided, the work done and the disbursements made.

4.4 Sustainability

4.4.1 This project falls under the GESP and the 2008-2015 rural DWSS action plan. The

participatory process which involved local stakeholders, elected officials, the administration, the

DHH and MINEE is likely to encourage beneficiary ownership and thus contribute to the

sustainability of project results. The project will help build the institutional capacity of the

departments and bodies concerned (MINEE, DHH, MINPROFF, Councils, NGOs and

associations, etc.) to ensure project monitoring and the sustainability of project achievements.

4.4.2 Sustainability will also be guaranteed through efficient repair and maintenance.

Maintenance and repair of the facilities will be financed as follows: (i) 2% of the council budget;

(ii) annual transfer of financial resources from MINEE to councils from 2011; and (iii)

household contributions through payment of repair and maintenance costs. In accordance with

national policy, councils will set aside a budget line (up to 2% of their annual budget from 2011)

for repair and maintenance of the water supply and sanitation facilities to be constructed. The

law on decentralization includes this provision and designates councils as the owners of the

water supply and sanitation facilities. This budget is an annual amount ranging from CFA.F

400,000 for small councils to over CFA.F 2 million for large councils, whereas the repair and

maintenance costs of the DWS system for 5000 inhabitants ranges from CFA.F 300,000 to

CFA.F 500,000, depending on the age of the infrastructure. These resources will supplement the

household contributions to the repair and maintenance costs of water supply networks and thus

cover recurrent repair and maintenance costs. Community water point management could evolve

into private management if the number of private connections to the network is high enough to

make this activity profitable for private operators. Hygiene education will help the population

understand the importance of hygiene to health, thus prompting them to build and maintain

17

improved latrines. To guarantee value-added and sustainability for the gender-sensitive toilet

complexes (GTCs), there will be a reserve fund composed of 30% of GTC revenue which shall

be deposited into a bank account to generate interest. Part of this fund shall be disbursed for

maintenance of the infrastructure constructed.

4.5 Risk Management

4.5.1 The implementation of operations in Cameroon is still fraught with fiduciary and

operational risks (institutional capacity), as evident in the Bank portfolio review report (2009),

the appraisal report on Bank assistance to Cameroon in 2007 and the 2005-2009 RBCSP

completion report issued in 2009. The Public Expenditure Review on the financing of rural

drinking water supply and sanitation, prepared in October 2008 by the World Bank also confirms

these risks.

4.5.2 The fiduciary risks relate to transparency in the award of contracts and the management

of fund flows for all the three administrative, financial and accounting organs. These risks are

significant and were also identified in internal audits, accounting, reporting and budget

management. The internal and external audit mechanisms to be set up for the entire project will

help to reduce these risks. Risks relating to non-inclusion in the budget and irregular payment of

counterpart funds by the Government will be mitigated through the following measures: (i)

monitoring of the effective validation of project requests for counterpart funds by the competent

services of MINPAT during State budget preparation conferences; and (ii) the Government’s

decision to create, from the 2010 fiscal year, a common counterpart fund account which will be

regularly provisioned by MINFIN and monitoring of the regular provisioning of the said account

by the ADB office in Cameroon. In a bid to increase transparency in the procurements process,

provision has been made for measures to boost competition right from the start of the bidding

process. A special procurements board has been set up in MINEE and bidding results will be

published in the national press and on the Bank’s website.

4.5.3 The implementation risks relate to the DHH’s limited capacity to monitor and

coordinate the project. To facilitate rapid control of the project by the relevant DHH sections,

technical assistance will be recruited for project supervision, accounting, monitoring/evaluation

and procurement. Lastly, training on the Bank’s procedures (procurements, disbursement) for

DHH experts and members of the Special Procurements Commission at project commencement

will facilitate the appropriate handling of procurements documents by the project team. An

implementation manual will be prepared before the commencement of the project.

Monitoring/evaluation will be reinforced. Delays in the payment of national counterpart funds

may also slow down the execution of works. To hedge this risk, the Government’s contribution

has been allocated to capacity-building, including the construction of offices.

4.5.4 Another risk that could emerge at project completion is the lack of repair and

maintenance due to poor ownership by beneficiaries. The involvement of beneficiaries right

from project preparation, the organization of water point management committees, the private

management of networks and the budgeting of maintenance costs by councils could mitigate this

risk.

18

4.6 Knowledge Development

4.6.1 Implementation of the project will develop knowledge on Cameroon's water resource

status, the influence of climate change on such resources and the potential for their renewal.

This will lead to optimal exploitation of the water sources or the communities targeted by the

project. This exercise will make it easier to monitor any negative effects of climate change on the

renewal of water resources. The envisaged global approach of providing latrines for public

buildings, which entails constructing pilot gender-sensitive toilet complexes in rural areas, will

be a new experiment in multidimensional water and sanitation projects. Its positive effects will

lead to the designing of other projects within the sector in future. There are plans to set up, train

and equip communication teams at the regional level to conduct community awareness-raising

on hygiene and sanitation. Management committees for drinking water infrastructure and latrines

will be set up and trained in management, conflict resolution and gender issues. Any positive

feedback obtained, in terms of assistance requests from households for the construction of

improved latrines, will reveal the impact of the awareness-raising approach used and it will be

reprised in other projects. The knowledge acquired will be indicated in the project completion

report and filed in the Bank’s archiving system.

V. LEGAL FRAMEWORK

5.1 Legal Instrument

The project is financed with an ADF loan and a RWSSI grant.

5.2 Conditions Governing the Bank’s Intervention

A Conditions precedent to grant effectiveness and first disbursement

The RWSSI grant shall become effective subject to the signature of the grant protocol.

Apart from grant effectiveness as indicated above, the first disbursement of RWSSI grant

resources shall be subject to fulfillment by the Donee of the following specific conditions to the

satisfaction of the Fund: (i) provide the Fund with evidence of the setting-up of a project

coordination unit and the secondment of DHH staff to the said unit: (ii) provide the Fund with

proof of the opening of a special account at a bank deemed acceptable by the Fund, to receive

grant resources; (iii) provide the Fund with evidence of the opening of a special sub-account at a

bank deemed acceptable by the Fund, to be managed by FEICOM; (iv) provide the Fund with

evidence of the opening of a counterpart account at a bank deemed acceptable by the Fund; and

(v) provide the Fund with a copy of the agreement transferring the grant to FEICOM, which

should be deemed acceptable by the Fund.

B Conditions precedent to loan effectiveness and first disbursement

The loan agreement shall become effective subject to the Borrower’s fulfillment of the

conditions provided for in Section 12.01 of the General Conditions. Apart from grant

effectiveness as indicated above, the first disbursement of the loan resources shall be subject to

19

fulfillment by the Borrower of the following specific conditions to the satisfaction of the Fund:

(i) provide the Fund with evidence of the setting-up of a project coordination unit and the

secondment of DHH staff to the said unit; (ii) provide the Fund with evidence of the opening of a

special account at a bank deemed acceptable by the Fund, to receive loan resources; (iii) provide

the Fund with evidence of the opening of a special sub-account at a bank deemed acceptable by

the Fund, to be managed by the project coordination unit; and (iv) provide the Fund with

evidence of the opening of a counterpart account at a bank deemed acceptable by the Fund.

C Other conditions (Grant and loan)

The Borrower/Donee shall undertake to (i) draft and adopt the manual of administrative,

accounting and financial procedures and the project execution manual at most three months after

the effective date of the project; (ii) make provision for a budget line in council budgets for the

maintenance and extension of the DWSS infrastructure from the 2011 fiscal year; and (iii) set up

an investment fund management system in FEICOM branches in the project regions by 31 March

2011 at the latest.

5.3 Conformity with Bank Policies

This project is in conformity with all the Bank’s applicable rules.

VI. RECOMMENDATION.

It is recommended that an ADF loan not exceeding a total sum of UA 10 million and a

RWSSI grant not exceeding UA 5 million be awarded to the Government of the Republic of

Cameroon to finance the Rural Drinking Water Supply and Sanitation project as described in this

report.

Appendix II

Table of Ongoing Bank Group Operations in the Country

N° Project title Type3

Amount

approved

Approval

date

Disb. Rate

%

Agricultural sector

1 HOUSEHOLD INCOME IMPROVEMENT PROGRAM L 14, 000,000.00 28-Jun-01 83

2 GRASSFIELD PARTICIPATORY AND DECENTRALIZED

RURAL DEVELOPMENT L 15, 000,000.00 26-May-03 41

3 RUMPI PARTICIPATORY DEVELOPMENT PROJECT (loans) L 15, 000,000.00 13-May-03 30

RUMPI PARTICIPATORY DEVELOPMENT PROJECT (grant) G 1, 500,000.00 13-May-03 40

Sub-total agriculture 45, 500,000.00 50

Multi-sector

4 SUPPORT TO THE NAT. GOVERNANCE PROGRAM G 3, 180,000.00 25-Oct-01 92

5 GOVERNANCE REFORM SUPPORT PROGRAM L 25, 000,000.00 4-Dec-06 50

GOVERNANCE REFORM SUPPORT PROGRAM L 4, 000,000.00 4-Dec-06 23

Total Multi sector 32, 180,000.00 51

Social sector

6 HEALTH PROJECT I: HEALTH SYSTEM DEVELOPMENT L 8, 050,000.00 7-Jun-00 68

7 SUPPORT TO VOCATIONAL TRAINING REFORM (loan) L 14, 000,000.00 3-Dec-03 14

SUPPORT TO VOCATIONAL TRAINING REFORM (grant) G 1, 000,000.00 3-Dec-03 77

8

SUPPORT TO THE REPRODUCTIVE HEALTH PROGRAM

(loan) L 10, 230,000.00 16-Jun-04 15

SUPPORT TO THE REPRODUCTIVE HEALTH PROGRAM

(grant) G 1, 900,000.00 16-Jun-04 66

Sub-total for the Social Sector 35, 180,000.00 31

Transport sector

9 THE BATIBO-BACHUO-AKAGBE ROAD DEV’T PROJECT G 44, 700,000.00 15-Nov-06 27

10 THE BATCHENGA-NTUI-YOKO-TIBATI-NGAOUNDERE

ROAD STUDY L 3, 340,000.00 14-oct-09 0

Sub-total for Transport 44, 700,000.00 0.25

Social infrastructure sector

11 YAOUNDE SANITATION PROJECT G 25, 600,000.00 14-Dec-05 0.37

12 WATER SUPPLY AND SANITATION PROJECT IN SEMI-

URBAN AREAS (19 COUNCILS) L 40, 000,000.0 28 Jan. 2009 0

Sub-total for water and sanitation 65, 600,000.00 37

OVERALL TOTAL

223,

160,000.00 39

3 P : Prêt D : Don

Appendix III

Major Related projects Financed by the Bank and Other Development partners Project Date and amount Areas of

intervention

Main lessons

Yaoundé Sanitation

Project (PADY)

ADB: December

2005

UA 25.6 million

Sanitation

(Yaoundé)

- Protracted procurement

- Contractors’ delays caused by poor climatic

conditions and difficulties in obtaining

construction materials from the local market

Urban Sector

Development and

water Supply

Project

May 2007

US$ 80 million

(World Bank) of

which US$ 45 million

is reserved for water

Water and

sanitation in urban

areas (Yaoundé,

Douala, Bamenda,

Maroua)

- Concentration on the main towns

- Centralized procurement within the PMU for

the first 2 years

- several components and executing agencies:

CAMWATER, urban councils and MINDUH

through a STECOM created and under the

responsibility of a steering committee

Rumpi

Participatory

Development

Project

ADB: May 2003

(UA 15 million)

Agriculture (West

region)

- Complexity of the project (several sectors

covered, including boreholes for drinking

water)

- Limited managerial capacity

- Mobilization of counterpart funds;

- Use of the auxiliary account outside the CAA

for disbursements

National

Governance

Program Support

Project

ADB:

October 2001 (UA

3.18 million)

- inappropriate institutional foundation

- inefficiency and lack of managerial autonomy

for the PMU

- ill-adapted disbursement methods

Support Project for

the National

Participatory

Development

Program

World Bank,

September 2004

(US$ 20 million)

Rural development

(education,

drinking water,

health, rural roads)

implementation of

decentralization in

councils

- Selection of priority needs by communities

- participation in the implementation of projects

that address such needs;

- Monitoring of implementation by the

communities.

Appendix IV

Map of the project area