1
REPUBLIC OF ZAMBIA
LUSAKA SANITATION PROJECT
IMPLEMENTATION SUPPORT MISSION
February 9- 17, 2017
Aide Memoire
I. INTRODUCTION AND ACKNOWLEDGEMENTS
1. A World Bank team1 visited Zambia during the period February 9-17, 2017 to review progress on the
Lusaka Sanitation Project. The overall objective of the mission was to review implementation progress and
to support Lusaka Water and Sewerage Company (LWSC) in accelerating key project activities. This aide
memoire summarizes the main mission findings and recommendations, and reflects the comments made at a
wrap-up meeting held on February 16, 2017 at the Ministry of Water, Sanitation and Environmental
Protection (MWSEP) and chaired by Dr Edward Chomba, Permanent Secretary MWSEP. The mission
wishes to thank the Government of Republic Zambia (GRZ), and officials from MWSEP, LWSC, Lusaka
City Council (LCC), Zambia Environmental Management Agency (ZEMA), and National Water Supply and
Sanitation Council (NWASCO) for the for the excellent collaboration and the courtesies extended. The full
list of key persons met is attached in Annex 1. As agreed with LWSC, this aide-memoire will be classified
as a public document under the World Bank’s Access to Information policy.
II. KEY PROJECT DATA
2. Key Project Data (as of February 15, 2017) Project Data Project Performance Ratings
Board Approval: May 22, 2015
Effectiveness Date: June 17, 2016
Current Closing Date: December 31, 2020
Summary Ratings: Last Now Trend
Achievement of PDO S MS ▼
Implementation Progress MS MS ◄►
Credit Amount: US$63.9 million2
Amount Disbursed: US$12.4 million
% Disbursed: 19 percent
Ratings: HS=Highly Satisfactory; S=Satisfactory; MS=Moderately Satisfactory; MU=Moderately Unsatisfactory;
U=Unsatisfactory; HU=Highly Unsatisfactory; ▲ Improving; ▼ Deteriorating; ◄► Stable
III. SUMMARY OF MISSION FINDINGS
3. Project implementation is gaining momentum. Works contracts for priority sewerage works have
been signed. This package of works includes three subprojects– i.e. expansion of sewer network in
Emmarsdale (CSE-08), expansion of sewer network along Kafue Road (CSE-23), and upgrading of
Ngwerere Western Interceptor (CSU-05). The works were procured in two lots. Lot 1 included CSE-23 and
Lot 2 included CSE-08 and CSU-05 subprojects. The total contract amount for the two lots is US$7.5 million
– which is about 30 percent lower than the original engineer’s cost estimate (US$10.9 million). The
1The mission comprised: Josses Mugabi (Task Team Leader); Odete Muximpua (Water and Sanitation Specialist and Co-Team
Leader); Zvikomborero Hoko (Sanitary Engineer); Wedex Ilunga (Senior Procurement Specialist); Richard Everett (Social
Development Specialist); Mwansa Lukwesa (Environmental Specialist); Tambulani Chunga (Sanitation Marketing Consultant); Peter
Hawkins (Senior Water and Sanitation Specialist); and Charles Odonga (Institutional Development/Utility Management Specialist) 2 Credit amount when expressed in USD is lower than at the time of approval due to SDR-Dollar exchange rate fluctuations. The
original credit amount was USD 65million, implying an exchange loss of USD 1.1 million.
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contractors are expected to mobilize no later than March 30, 2017. Construction period is estimated at 12
months. Procurement of consultancy services for construction supervision of priority sewerage works is also
in advanced stages. Contract negotiations have been completed and LWSC expects to sign the consultancy
contract by March 15, 2017.
4. However, approval of safeguards instruments for priority sewerage works is delayed and this
may impact on the construction schedule. The Environmental and Social Impact Assessment (ESIA)
Report and Resettlement Action Plan (RAP) for year 1 sub-projects have been prepared, and extensively
reviewed by the Bank team. Both documents have received a provisional approval by the Zambian
Environmental Authority (ZEMA), and a final public meeting – the last step to receiving final ZEMA
approval and authorization to proceed – has been held on January 25, 2017. At the same time, the documents
will need to be cleared by the Bank, publicly disclosed and any compensation payments made before
construction can start. Both the ZEMA and Bank clearances of the safeguards documents are expected by
March 15, 2017. However, LWSC is yet to secure Government funds for compensation of Project Affected
Persons (PAPs) as per the RAP. Both the Ministry of Finance and MWSEP have committed to expedite the
process of securing compensation funds (about $0.49m) and transferring the funds to LWSC no later than
March 31, 2017. The mission also discussed and agreed on safeguards instruments for the rest of the
planned works under the project and a schedule of their preparation. TORs for Year 2-5 Safeguard
instruments have been prepared by LWSC and cleared by the Bank. Environmental and social impacts,
including possible resettlement, of the proposed Year 2-5 sewerage works and Faecal sludge treatment
facilities will assessed through standard ESIA and RAP processes. Environmental and social impacts related
to the collection and transportation services will be addressed through Environmental and Social
Management Plan(s), to be developed as part of the FSM business development study. The ESMP(s) will be
supplemented by health and safety guidelines and operational procedures and employee Codes of Conduct.
The potential environmental and social impacts of the onsite services (OSS) subproject will be addressed
through ESMPs, EHS guidelines and Employee Codes of Conduct developed as part of the OSS Design and
Construction Supervision study and consultancy. In addition, it is understood that ZEMA will require a
separate Strategic Environmental and Social Assessment (SESA) to assess the collective impacts of the
household units, for which LWSC will develop a TOR.
5. Preparation of additional sewerage subprojects is significantly delayed, and their
implementation is now likely to start in Year 3 of the project. Feasibility studies were completed in
August 20163 for sewer network sub-projects (worth about US$130 million) that were originally
programmed to start implementation in the second year of the program, with financing from WB, EIB and
AfDB. However, LWSC has not yet been able to progress to detailed design for the WB sub-projects, due to
a number reasons. First, LWSC decided to procure a separate consultancy for detailed design rather than
expand the scope of the feasibility study consultancy –a decision that led to further delays in completing
preparatory activities. Second, there was uncertainty on the scope of detailed design consultancy, including
(i) whether or not to include subprojects proposed for financing by EIB, and (ii) whether or not to include
additional subprojects without a full feasibility study. As a result, LWSC took much longer to finalize the
ToRs for detailed design consultancy. The final scope of the consultancy includes detailed design, tender
documentation and construction supervision of five sewerage sub-projects estimated at US$30 million, as
well as full feasibility study and detailed design for an additional five subprojects (see Annex 2 for details).
The Bank provided no objection to the ToR on December 16, 2016, and LWSC proceeded to publish a
Request for Expressions of Interest (REoI) on December 27, 2016. The shortlist and RFP were cleared by
the Bank on February 3, 2017. LWSC issued the RFP to shortlisted consultants on February 7, 2017, with a
proposal submission deadline of March 17, 2017. LWSC will fast-track the rest of the procurement steps to
ensure that the consultancy contract is signed no later than June 30, 2017. The consultant will then be
expected to produce detailed designs and tender documents for the first five subprojects within 6-9 months.
This means that the next set of sewerage works under the project (after the priority works above) will only be
ready for tender in the first quarter of 2018.
3 Three months behind schedule
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6. Progress on the onsite sanitation (OSS) component has been slow, but is expected to pick up
pace over the coming months. Feasibility studies for OSS interventions were completed in August 2016,
but LWSC has not yet progressed to detailed design. A significant amount of time has been spent on firming
up a strategy and principles to guide implementation of OSS interventions under the project and beyond – an
important step that was completely overlooked at feasibility stage. Consultations have been carried out on
LWSC’s evolving strategy for OSS, including on sustainable business models for delivering both the
infrastructure and fecal sludge management (FSM) services at scale. The Bank’s September 2016 mission
helped in firming-up various aspects of the strategy, and how project resources could be better utilized to
support operationalization of the strategy (for details see September 2016 mission aide memoire). A set of
actions was agreed to accelerate progress, including fast-tracking the procurement of additional technical
assistance (TA) services that are critical to getting this component ready for implementation. The mission
reviewed and enhanced the draft Terms of Reference (ToRs) for design and supervision of OSS facilities
(improved toilets and septic tanks), and FSM business development. It was agreed that LWSC will finalize
the ToRs taking into account Bank comments and advertise all the REOIs no later than March 20, 2017.
Thereafter, LWSC will fast-track the rest of the procurement steps and ensure that all three consultancy
contracts are signed no later than July 30, 2017. The consultants will then be expected to produce detailed
designs and tender documents within 6-9 months. This implies that OSS works and goods packages will only
be ready for tender in the first quarter of 2018.
7. LWSC has made good progress in defining the nature and scope of institutional strengthening
activities to be supported under the project. An institutional assessment of LWSC was completed in
January 2016, which resulted in LWSC developing an outline Institutional Development Action Plan
(IDAP). During the mission, progress was made in firming up the plan and identifying a set of actions to
help kick-start LWSC’s change process. Further, the mission supported LWSC in undertaking a rapid,
qualitative assessment of LWSC’s organizational structure, behaviour, capability, tools, and ability to
influence the external policy environment. For each of the areas, the assessment examined the situation
encountered in LWSC and compared it against what would be expected in a well-run utility in order to
identify gaps and issues to be addressed. This assessment helped to inform further development of the IDAP,
and will provide a basis for tracking progress (see details in Annex 3). The IDAP is designed to contribute to
overall performance of the utility by, among others, promoting a positive organizational culture and
productive work environment; addressing long standing structural issues; enhancing staff capabilities;
improving operational processes and systems, as well as strengthening LWSC’s ability to influence the
external policy and regulatory environment. LWSC management will finalize internal consultations on the
IDAP in the coming weeks, and ensure buy-in from across the organization. A Special Task Force (Change
Management Team) will be appointed by the Managing Director to spearhead the process and to ensure that
the action plan is finalized and approved by the Board no later than April 15, 2017. The mission also
encouraged LWSC management to conceptualize and implement regular short-term, high-impact
performance improvement programs within the context of the IDAP.
8. There are however a number of unresolved policy and regulatory issues that are critical to
achieving project objectives related to sustainability of sanitation services. These include: developing
new economic regulation tools and instruments for urban sanitation services; approving a sustainable tariff
structure for urban sanitation services; strengthening enforcement of sanitation-related bylaws, building
codes and regulations; establishing a predictable public financing stream for the public good aspects of urban
sanitation; security of tenure arrangements for peri-urban areas; and improving accountability arrangements
between different sanitation players in the urban space. The mission strongly recommends that LWSC
management pays close attention to these issues and take deliberate actions to influence policy and
regulatory changes. With respect to sewerage tariffs, NWASCO confirmed that (i) as a regulator, they are
not bound by the targeted tariff increases included in the project’s result framework; and (ii) their approach
to sewerage tariff setting will change from one that is based on a percentage of water tariffs to one based on
actual costs of providing sewerage services. To facilitate this change, NWASCO is in the process of
developing guidelines for separation of costs for water and sewerage services. The guidelines are expected
to be ready for use by utilities before the next pricing review in September 2017. At the same time,
NWASCO has initiated stakeholder consultations on improving policy and regulatory framework for OSS
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services. These consultations are expected to result in specific policy proposals or changes in existing legal
frameworks (e.g. WSS Act) aimed at further strengthening the enabling environment for ‘integrated’
sanitation service solutions (i.e. mixed use of off-site and on-site solution).
9. The mission noted several key policy issues that are reflected in LWSC’s evolving strategy for OSS
and the principles the utility has formulated to guide planning and design of OSS interventions. For instance,
LWSC is pushing for sustainable public financing mechanisms for sanitation services (including the public
good aspects) beyond the project, through an increased sanitation surcharge and a review of restrictions
imposed by the regulator regarding what can be financed by the surcharge. However, discussions with
NWASCO revealed that the regulator had (on request from LWSC management) temporarily suspended the
sanitation surcharge due to LWSC’s inability to meet its obligations in terms of completing peri-urban
sanitation projects approved by NWASCO as eligible for financing through the surcharge4, and LWSC’s
continued use of the accumulated resources for other purposes (e.g. to meet short-term cash flow
requirements). The mission flagged this issue with the new LWSC management who agreed to review (in
consultation with NWASCO) the decision and issues that led to the suspension, with a view to reinstating the
surcharge. The mission emphasized the importance of the sanitation surcharge as one of the public financing
mechanisms for sanitation investments in Lusaka, and that the scale up and sustainability of OSS services
beyond the project is partly dependent on maintaining the surcharge mechanism as a source of financing.
10. With respect to enforcement of sanitation-related bylaws and regulations, LCC is empowered by the
Public Health Act to regulate and enforce rules for the construction and use of sanitation facilities, but it
lacks capacity (funds and human resources) to implement this enforcement. Given this constraint, LWSC
plans to use financial incentives (i.e. partial financing of containment structures) to encourage
households/landlords to improve sanitation facilities. Those customers who do not respond to the incentive
will be specifically targeted through an enhanced enforcement program implemented in collaboration with
LCC public health teams. The exact nature and scope of the proposed enforcement program is currently
unknown. It is expected that program will be designed and implemented as part GIZ’s technical assistance
package to LWSC and LCC – which was initiated recently. Specifically, GIZ will support LCC in improving
systems for environmental health monitoring and enforcement related to sanitation (including wastewater,
on-site sanitation, faecal sludge and solid waste management). Further, the mission was pleased to learn that
LCC is accelerating efforts to grant security of tenure to households in various peri-urban areas in Lusaka.
This move is good for sanitation services as it is expected that a secure tenure status would provide
additional incentives for households to invest in improving sanitation.
11. Communication and advocacy has improved. The mission noted significant improvements in
communication and advocacy activities under the project, in line with the recommendations of the June 2016
Bank mission. Efforts have been made in creating awareness on the Lusaka Sanitation Program in general.
A workshop for the media has been conducted and public awareness campaigns have been done through
radio programs. Further, a joint LWSC-LCC branding initiative is gradually taking shape with the new city
Mayor as the champion. Initial advocacy activities will target a cross section of key stakeholders, including
members of parliament, councilors and community leaders. These advocacy efforts will be further enhanced
by the sanitation marketing consultancy–which is currently in advanced stages of procurement – and whose
scope includes both advocacy and marketing communication. LWSC has issued a Request for Proposals
(RfP) to the shortlisted firms with a proposal submission deadline of March 21, 2017. Evaluation will be
fast-tracked and a technical evaluation report sent for Bank review and no-objection by April 15, 2017.
LWSC will fast-track the rest of the procurement steps and ensure that a contract is signed no later than May
30, 2017.
12. The project still face substantial coordination risks, but these are now proactively being
managed by LWSC. Information sharing between partners has improved. The Program Steering
Committee–which is charged with the responsibility to oversee and coordinate program implementation– is
now fully constituted and held its first meeting in January 2017. A program management support consulting
4 At the time of the suspension, LWSC had collected about US$1 million through the sanitation surcharge, and
NWASCO had approved 3 projects for implementation. However, to date none of the projects have been completed.
5
firm (EIB-financed5) was recruited and is providing much-needed technical and program management
support to LWSC. A draft Program Implementation Manual (PIM) has been prepared and circulated to
development partners for comments. Finally, LWSC is taking a more proactive role in developing a
coordinated approach to program implementation–including facilitating the sharing of information,
developing a joint implementation schedule at the program level, identifying critical interface risks and
mitigation measures (see Annex 4 for a summary of the joint program implementation schedule). The
mission recommends that LWSC organizes (in consultation with program funding partners6) one joint
mission within the next six months to discuss, among other things, the program coordination arrangements
and how they could be further enhanced.
13. Disbursements and commitments have increased significantly. This is mainly due to the recent
signing of works contracts for priority sewerage works. The original disbursement schedule assumed that
about US$15 million (23 percent) would be disbursed by the end of FY17. As of Febraury 2017,
disbursements stood at US$12.4million (19 percent), which close to the original projection. However, the
rate of disbursements is expected to slow down significantly over the next 12 months as the rest of the major
infrastructure investments will not be ready for tender until the first quarter of 2018. Nevertheless, the Bank
and LWSC will continue to closely monitor the project procurement plan to identify opportunities for
accelerating disbursements, where possible.
14. Overall implementation progress rating is maintained at moderately satisfactory. Although
there has been some progress since the last formal mission in June 2016 (especially the signing of the first
works contracts under the sewerage component), the mission concluded that the progress registered since
then does not justify an increase in the rating, given the persistent delays on both the OSS and institutional
strengthening components. The PDO rating on the other hand is downgraded to moderately satisfactory due
to: (i) delays in preparation of sewerage subprojects, which has created some uncertainty on whether all
planned subprojects can be fully implemented within the remaining project period; and (ii) unresolved tariff
regulation issues which have put into question the likelihood of achieving PDO indicators related to cost
recovery. The mission also reviewed the Results Framework and updated the baseline indicators for project
monitoring and evaluation (see annex 5).
IV. AGREED ACTIONS
1. Summary of agreed actions. The majority of actions over the next 3-6 months will be
procurement-related. The main focus are the priority consultancy services that required to help defined the
subsequent works packages under the project. Attention must also be paid to completion and implementation
of safeguard instruments for the priority sewerage works. Summary of agreed actions is presented in Table 2
below.
Table 2 – Summary of Agreed Actions
# What When Who Status
Procurement-related
1 Sign consultancy contract for construction
supervision of priority (year 1) sewer network
rehabilitation and expansion
March 15, 2017 LWSC completed
2 Complete procurement process and sign
consultancy contract for detailed engineering
design and supervision of Year 2-5 sewerage
sub-projects
June 30, 2017 LWSC In progress
–
evaluation
of technical
proposals
5 The main financing agreement for EIB lending to the program is expected to be signed in June 2017. In the meantime,
EIB provided a technical assistance grant which has been used to finance the program management support consultancy
6 Current funding partners for the Lusaka Sanitation Program include: World Bank, EIB, KfW, AfDB, GIZ and MCC
6
3 Complete procurement process and sign
consultancy contract for sanitation marketing
May 30, 2017 LWSC In progress
–
evaluation
of technical
proposals
4 Complete procurement process and sign
consultancy contract for design of household
OSS systems
July 30, 2017 LWSC In progress
5 Complete procurement process and sign
consultancy contract for FSM business
development
August 30, 2017 LWSC In progress
– EOI
evaluation
6 Complete procurement process and sign
consultancy services for design of a call
center solution for OSS service delivery
August 30, 2017 LWSC In progress
7 Complete procurement process and sign
consultancy contract for LWSC
organizational restructuring study (Funded by
WB trust fund)
March 31, 2017 WB In progress
Other Actions
8 OSS strategy approved by LWSC Board June 30, 2017 LWSC In progress
9 Bank clearance of RAP and ESIA for priority
sewerage works
March 15, 2017 WB Completed
10 Government funds for compensation
payments transferred to LWSC
March 30, 2017 MoF and
MWSEP
In progress
11 LWSC completes compensation payments May 30, 2017 LWSC In progress
12 Board approval of IDAP April 15, 2017 LWSC In progress
13 Share approved IDAP with the Bank and
other development partners
April 30, 2017 LWSC In progress
14 Organize corporate governance and utility
management training for LWSC Board
members and senior management
April 30, 2017 LWSC and WB On
schedule
15 Review decision to suspend sanitation
surcharge and the issues that led to the
suspension. Share findings and recommended
way forward with the Bank
June 30, 2017 LWSC and
NWASCO
In progress
15. Proposed timing of next mission. The next Bank mission is tentatively scheduled for
September 2017. In the interim, the Bank will continue its close monitoring and technical discussions with
LWSC to help ensure that the agreed action plan targets detailed in this Aide Memoire are met. The team is
currently conducting regular technical discussions /missions to advance progress in various activities of the
project. This approach will be continued over the course of the project.
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ANNEX 1 – LIST OF KEY PEOPLE MET
NAME INSTITUTION
Mrs. Ireen Habasimbi Min of Finance
Mr. Mulusepa Min of Finance
Mrs. Mwila Zulu Min of Finance
Mr. Joseph Chanda Min of Development Planning
Mr. Eward Chomba Min of Water Development, Sanitation and
Environmental Protection (MWDSEP)
Mr Oswell Katooka MWDSEP
Mr. Musole R. Kambita MWDSEP
Mr. Charles Kalapa MWDSEP
Dr. Sylvester Mashamba LWSC
Mr. Jilly Chiyombwe LWSC
Ms. Matilda Mwansa LWSC
Mr. Malambo Dennis LWSC
Mr. Christopher Walimuntu LSWC
Mr. Wycliff Kunda LWSC
Mr. Hamalambo Kanini LWSC
Ms. Yvone M. Siyeni LWSC
Mr. Evaristo Simusokwe LWSC
Ms. Mwiche Sekeleti Musabaila LWSC
Mr. Nyonge Phiri LWSC
Mr. Kennedy Mayumbelo LWSC - LSP
Ms. Barbara Banguna LWSC - LSP
Mr. Obert Musongo LWSC - LSP
Mr. Hector Zulu LWSC - LSP
Mr. James Mwale LWSC - LSP
Mr. Francis Chipalo LWSC – LSP
Mr. Godmans Numwa LWSC - LSP
Mr. Charles Kapembwa LWSC - LSP
Mr. Avitol Kweendenda LWSC - LSP
Ms. Mwansa Mukuka LWSC - LSP
Mr. Stephen Dollery Project Implementation Consultant - LSP
Mr. Abhinav Goel Project Implementation Consultant - LSP
Mr. Patric Katuramu Project Implementation Consultant - LSP
Mr. John Banda Project Implementation Consultant - LSP
Ms. Nosiku S. Muyunda Project Implementation Consultant - LSP
Mr. Trevor Surridge GIZ
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ANNEX 2 – SEWERAGE SUB-PROJECTS (YEAR 2-5)
1. The Year 2-5 subprojects are divided into two parts (Part 1 and Part 2). Part 1 subprojects have a full
feasibility and preliminary design study done while Part 2 have no feasibility study. Part 2 subprojects were
identified through a preliminary assessment done in-house by Lusaka Water and Sewerage Company.
Part 1 sub-projects
2. Table 1 shows Part 1 sub-project areas and their estimated network lengths, indicative number of
pump stations and indicative pipe diameters required. Figure 1 shows the location of these subprojects. A
feasibility study and preliminary design has been done for these areas under World Bank funding. The next
step is detailed design of the selected sub-projects followed by construction which will require construction
supervision.
Table 1: Part 1 Subproject details
Part 2 sub projects
3. Part 2 sub-projects incorporate five sub-projects (i) Mass Media (ii) Chalala (iii) Vonna/Ndeke (iv)
Roma/ Munali, and (v) Kwamwena. Summary details of the subprojects under Part 2 are given in Table 2.
Sub Project Estimated
Network
length (km)
Estimated No.
of Pump
stations
Indicative range
of pipe diameters
(mm)
Estimated
cost (US$
million)
CSE 5 Chipata 40 1No., estimated
total daily flow
of 0.5ML/d &
Proposed power
of 0.7KW
160-400 4,805,279
CSE 10 Garden 17 160-400 1,530,326
CSE 20
Kanyama,
CSE-14
Industries
phase
60
2No. with
estimated total
daily flow of 6
and 10ML/d
respectively
100-600 7,519,340
CSE 25
Chawama
Kuomboka
60 1No. with
estimated total
daily flow of
3.3ML/d
100-400 6,650,246
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Table 2: Part 2 Subproject details
A brief description of each sub-project is given below.
Mass Media
5. Mass media is well-planned area located about 5km East of Lusaka’s Central Business District
(CBD). The area is mainly a high cost residential though commercial properties have come up in recent
years. The project area is estimated at 250 Ha and covers part of a low cost area (Kalingalinga compound), as
shown in Figure 2. A detailed design of the condominial sewerage system for Kalingalinga was done in 2012
with phase one being implemented. However, the project area under this scope has no existing sewerage
system though Mass Media pump station is within a kilometre. At present, residents rely on onsite sanitation
solutions. The use of septic tanks and soakaways has threatened the groundwater quality of the area. Further,
LWSC has boreholes within the same area hence the need to sewer the area. On the eastern side of the
project area, a main sewer trunk line crosses the project area through to Kaunda Square ponds. Mass media is
under the Manchinchi sewer shed whereas Kalingalinga flows to the Kaunda Square sewer shed.
Sub Project Area
coverage
(Ha)
Estimated
Network
length (km)
Estimated
No. of
Pump
stations
Indicative
range of
pipe
diameters
(mm)
Estimated
number of
new
connections
Estimated
cost (US$
million)
Mass Media 250 47 1 160-400 2050 9,725,804
Chalala 1815 344 2 160-600 14200 71,184,608
Vonna/Ndeke 700 133 Nill 160-300 5740 27,521,956
Roma/
Munali,
1370 260 2 160-900 10,000 53,802,320
Kwamwena 600 114 Nill 160-400 7100 23,590,248
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Figure 2. Mass media area
Chalala
6. Chalala is one of the newly developed areas on the south-eastern part of Lusaka. The area is
predominantly high cost residential and is well planned. It is about 3km from the Lusaka CBD and covers
about 1815 ha as shown in Figure 3. It covers the water works area, Hilview, Rockfield and Rockview areas.
The area is under the Manchinchi sewer shed. Chalala has no existing sewerage infrastructure. At present,
residents rely on onsite sanitation solutions. The use of septic tanks and soakaways has threatened the ground
water quality of the area. Further, the area is so rocky that it is a challenge for households to build quality
onsite sanitation facilities. LWSC has some boreholes within the same area which risks contamination if the
situation is not corrected. The nearest existing sewer line to Chalala is an interceptor along Chilimbulu Road.
This interceptor will require assessments to confirm if additional flows can be accommodated. The project
area has a generally flat terrain. Due to the relative flat terrain of the area, pumping stations or DEWATs
will have to be considered so as to lift or localise the treatment of wastewater from the area.
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Figure 3 Chalala area
Vonna/Ndeke
7. Vonna/Ndeke is one of the newly developed areas on the eastern part of Lusaka. It is about 25 km
from the Lusaka CBD and is mainly medium cost residential (Figure 4). It covers about 700 ha of land
underlain by unconsolidated or semi consolidated gravel, sand, silt and clay sedimentary rock. Vonna/Ndeke
has no existing sewerage infrastructure. Being a new development area, residents have started building
alternative onsite sanitation systems. With plot sizes as small as 25mx25m, it is unthinkable to have both the
borehole and onsite sanitation facilities on the same plot. Hence the need to sewer the area cannot be
overemphasized. The area is located about 9km downstream of the proposed New Ngwerere Wastewater
Treatment Plant. The area has no nearby sewer network to connect to, except a bio filtration plant installed
within the vicinity to service Sitatunga City Properties. This plant was recently handed over to LWSC. An
assessment should be carried out to establish whether the additional flows can be accommodated by this
facility or whether there is need for a completely new DEWAT system to service the areas. Ndeke Village
has 4678 plots while Vonna valley has 1062 plots.
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Figure 4: Ndeke/Vonna valley
Roma/ Munali
8. Roma/Munali is a well-planned high cost residential housing area within the Manchinchi and
Ngwerere Sewer shed. It is one of the old townships of Lusaka covering about 1370 ha of land with over
10,000 medium cost housing (Figure 5). The area has no existing sewerage network. At present, residents
rely on onsite sanitation solutions. In some areas like Olympia, communal septic tanks are common. These
are subject to annual flooding posing health risks to the public. The use of septic tanks and soakaways has
threatened the groundwater quality of the area. Roma/Munali drain northwards allowing Roma to connect to
CSU 05 (Ngwerere) which is earmarked for upgrade in the priority investments under the World Bank while
Munali area can also be connected to either Kaunda Square ponds or down to the New Ngwerere Wastewater
Treatment plant to be constructed under the European Investment Bank funding.
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Figure 5. Roma/Munali
Kwamwena
9. Kwamwena is one of the new development areas on the northern part of Lusaka. It is a medium cost
housing area and about 15km from the Lusaka CBD. The area is predominantly high cost residential and is
well planned. It covers about 600 ha of land. The area has about 7100 plots most of which have had the
buildings completed. The area has no existing sewerage network (Figure 6). At present, residents rely on
onsite sanitation solutions. The area is also subject to flooding making construction of onsite sanitation
facilities a challenge. Hence, providing sewerage infrastructure will alleviate the major challenges
experienced.
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Figure 6: Kwamwena
10. While interested consultants are expected to bid for all the above subprojects, Part 2 subprojects
should have a detailed breakdown of cost for each key step/task for the defined scope of work for each sub-
project. This will allow for easier negotiations should some of the scope of work fall off as a result of the
outcome of the feasibility study.
15
ANNEX 3 - INSTITUTIONAL CAPACITY DEVELOPMENT - SUMMARY OF MATURITY
ASSESSMENT AND INSTITUTIONAL ACTION PLAN
Assessment of LWSC Maturity Level
1. The Bank carried out technical missions to assess the maturity level of LWSC during the periods
12th- 17
th December 2016 and 31
st- 13
th February 2017. The assessment used the Water Utility Maturity
Model (WUM) as its conceptual framework. The model defines five levels of maturity (namely, level 1 -
initial; level 2 - basic; level 3 - proactive; level 4 - flexible; and level 5 - progressive) against five broad
attributes or dimensions of; behavior, structure, capability, tools and the ability to influence the external
operating environment positively and strategically. These attributes are broken down into sub- components
(table 1) and were assessed using a score card of management practices and organizational characteristics
that one would expect to see for each of the five increasing levels of maturity. The summary of the
assessment is given in figures 1 and 2 below.
Table 1: Attributes and their sub-dimensions
Attribute Sub Components
1 Behavior Strategic Orientation, Strategic Leadership, Organizational Culture, Customer
Orientation, and Commercial Orientation
2 Structure Organizational structure, Empowerment structure and Internal Accountability
3 Capability Human Resources, Technical Operations, Infrastructure Management, Financial
Management and Performance.
4 Tools Monitoring and Evaluation, Information and Knowledge Management, Internal
and External Communication and Continuous Improvement.
5 Influence Policy, Legal and Regulatory Environment; Managerial Autonomy; External
Accountability; Partnerships and Networks; and Corporate Image.
0
1
2
3
4
5Behaviour
Structure
CapabilityTools
Influence
where LWSC is now
where LWSC wants to be
Figure 1: LWSC Aggregated Current and Desired
Maturity level
16
2. The results of the assessment shows that the current overall LWSC maturity level is graded at 2.6 i.e.
the Company’s maturity level lies between level 2 (basic) and level 3 (proactive). This finding is significant
as it reveals that LWSC currently exhibits characteristics of both a level 2 and level 3 Utility under different
attributes. The company has established basic foundations for progress as a Utility but is at different stages of
acquiring vital behavioral orientations, structure, capabilities and tools that a level 3 (proactive) or higher
level Utility should have.
Key Challenges facing LWSC.
3. The assessment of the LWSC maturity level has identified gaps or challenges that the company
needs to address if it is to build its capability and grow into a higher level of maturity. Some of the key
challenges include:
Poor Organizational Culture. The current LWSC organizational culture does not promote staff
productivity and the achievement of organizational goals. Staff have poor values, attitudes and
behaviors at work. There are disengaged managers and generally management has over some time
practiced the laissez faire management style. This is by far the single most critical challenge the
company is facing.
Inadequate Organizational Structure. The current organizational structure has gaps and issues that
need to be addressed if the company is to be effectively aligned to the changes in its operating
0
1
2
3
4
5
SOSL
OC
CuO
CO
OS
ES
IA
HR
TO
IMFM
Perf
M&E
IKM
IEC
CoI
PLRE
MA
EA
PN
CI
Figure 2: LWSC Disaggregated Current and Desired Maturity Level
Where LWSC is now
Where LWSC wants to be
Key: SO- Strategic Orientation SL - Strategic Leadership OC - Organizational Culture CuO - Customer Orientation CO- Commercial Orientation OS - Organisational Structure ES -Empowerment Structure IA - Internal Accountability HR - Human Resources TO - Technical Operations IM - Infrastructure Management FM - Financial Management Perf - Performance M&E - Monitoring & Evaluation IKM - Information & Knowldege Management IEC - Internal & External Communication CoI - Continuous Improvement PLRE - Policy, Legal & Regulatory Environment MA - Managerial Autonomy EA - External Accountabilty PN - Partnerships and Networks CI - Corporate Image
17
environment. As an example, company is overstaffed with staff costs amounting to about 60% of
overall operating costs.
Poor Performance. The LWSC quantitative performance is poor as evidenced by the following Key
Performance Indicators i.e. Water produced is only about 270 MLD against an estimated demand of
370 MLD; NRW has been above 42% over the last five years; debt age is at 8 months (2015);
creditor payment period of 9 months; and WWTP effluent quality at only 56.1% (2015) compliance
instead of 95% as required.
Inadequate organizational tools. The structure, systems and current activities for monitoring and
evaluation of performance are inadequate as the current M&E framework has been established to
only oversee the performance contracts between the Branches and the Head Office. Additionally, the
performance contracting system itself has weaknesses in both design and implementation rendering
it ineffective in galvanizing performance improvements. On the other hand, the MIS system together
with other operational systems and processes need enhancement.
Liquidity Problems. The company currently faces serious liquidity problems. This has affected the
implementation of planned activities. The impact of this is best exemplified by the very meager
provision of funds for plant, equipment and network maintenance and repair. In 2015, the company
only disbursed 16% of the approved budget for plant, equipment and network maintenance. On the
other hand, the company takes over nine months to pay its suppliers. This definitely presents
business relationship issues with suppliers.
Institutional Development Action Plan (IDAP)
4. LWSC has, with support from the mission, reviewed and developed a detailed draft five-year
Institutional Development Action Plan. The plan aims at addressing issues and gaps identified through the
institutional assessment of LWSC maturity level and to develop the Utility’s capacity to grow to higher
levels of maturity. The IDAP has five objectives, namely; (i) Improve behavior, (ii) Improve Structure, (iii)
Improve Capability, (iv) Improve tools and (v) Improve Influence. A detailed set of targets (with
corresponding set of activities for their achievement) have been developed for the achievement these
objectives. A Special Task Force (Change Management Team) is to be appointed by the Managing Director
to not only finalize the plan and have it approved by the Board, but to oversee its implementation. The plan is
to be approved not later than April 15, 2017. The IDAP will contribute to overall performance of the utility
by, among others, promoting a positive organizational culture and productive work environment; addressing
long standing structural issues; enhancing staff capabilities; improving operational processes and systems, as
well as strengthening LWSC’s ability to influence the external policy environment. Funding for the IDAP
will mainly be through LWSC internally generated resources and the development partners; with the bank
playing a lead role. The approved Bank support to LWSC under the Institutional Development component
amounts to a total of USD 9 million.
18
ANNEX 4 – LUSAKA SANITATION MASTER PROGRAM
19
Lusaka Sanitation Program - Abridged Implementation Schedule for Major Works Packages
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Procurememt of consultancy services
Conceptual Design, ESIA and RAP
Tendering stage (Design- Build)
Design and Construction stage
Procurememt of consultancy services - completed
Design, ESIA and RAP -completed
Tendering stage (works)- completed
Construction stage
Procurememt of consultancy services
Design , ESIA and RAP
Tendering stage (works)
Construction stage
Procurememt of consultancy services
Design , ESIA and RAP
Tendering stage (works)
Construction stage
Procurememt of consultancy services
Design , ESIA and RAP
Tendering stage (works)
Construction stage
Procurememt of consultancy services
Design , ESIA and RAP
Tendering stage (works and FSM services)
Construction/FSM service delivery
Procurememt of consultancy services
Design , ESIA and RAP
Tendering stage (works)
Construction stage
World Bank -financed packages
EIB+KfW- financed packages
AfDB-financed packages
On-site sanitation investment package (WB)
On-site sanitation investment package (AfDB)
2023 20242017 2018 2019 2020 2021 2022
Sewerage investment package A (EIB/KfW) - New Ngwerere and new Chunga WWTPs
Sewerage investment package B1 (WB) - Priority (Year 1) sewerage works in Ngwerere and Machinchi sewer sheds
Sewerage investment package B1 (WB) - Year 2 -5 sewerage works in Ngwerere and Machinchi sewersheds
Sewerage investment package B2 (AfDB) - sewerage works in Chunga and Matero sewersheds
Sewerage investment package B3 (EIB) - sewerage works in Manchinchi sewershed
20
ANNEX 5 – PROJECT RESULTS FRAMEWORK
Project Development Objective (PDO): To increase access to sanitation services in selected areas in Lusaka and strengthen LWSC’s capacity to manage sanitation services
PDO Level Results Indicators*
Co
re Unit of
Measure
Bas
elin
e Cumulative Target Values
Frequency Data Source/
Methodology
Responsibility
for Data
Collection
Description (indicator
definition etc.) YR 1 YR2 YR 3 YR 4 YR 5
Indicator 1: People provided with access to improved sanitation facilities under the project (cumulative) (through sewerage) [through on-site facilities]
X
People
(thousand)
0
(0)
[0]
0
(0)
[0]
20
(2)
[18]
60
(6)
[54]
150
(24)
[126]
213
(33)
[180]
Annual
Progress
reports from
LWSC
LWSC
Based on 50% sewer
connection rate; assuming 8
people per sewer connection
and 18 people per on
-site facility 7
Indicator 2: People with access to adequate fecal sludge management systems (cumulative)
People
(thousand)
0
0
36
108
252
360
Annual
Progress
reports from
LWSC
LWSC
“Adequate” will need to be
defined. Assuming 20,000
on-site facilities are serviced,
serving 18 people each. 8
Indicator 3: Tons of BOD5 removed by the treatment plant supported under the project
x
Tons/year
77
230
230
470
709
949
Reports from
LWSC
Recorded at Ngwerere
Sewerage Ponds 9. (Baseline
data calculated from LWSC
measurements in Dec 2016)
7 Based on 50% of ultimately planned sewer connections; assuming 8 people per connection as per NWASCO guidelines; and assuming 18 people per on-site facility as per figures from Kanyama pilot project. 8 8 people per sewer connection based on NWASCO guidelines. 18 people per on-site facility based on data of Kanyama FSM pilot project. Assumed overall average frequency of emptying is once in five years.
9 Based on Ngwerere SP baseline load as per data of LWSC for 2013/2014 being 7000 m³/d with BOD5 inflow 110 mg/l and outflow 20 mg/l. For 2020, assumed flow is 20,000 m³/d (80% of design capacity being
24,900 m³/d) with an inflow BOD5 of 170 mg/l and outflow BOD of 40 mg/l.
21
Indicator 4: Tons of BOD5 removed by fecal sludge management systems
Tons/year
0
0
21
63
147
210
Reports from
LWSC
Calculated on basis of sludge
volume taken over, multiplied
by 35 g BOD5/liter. 10
Indicator 5: Domestic sewerage tariff increased (cumulative) to recovery O&M and debt servicing costs for domestic and other customers
% of water
tariff
30%
45%
30%
45%
35%
50%
39%
54%
43%
58%
50%
65%
This indicator is contingent on
tariff proposals being
approved by NWASCO.11
Indicator 6: Performance contract signed between LWSC management and branches
Yes/no
yes
yes
yes
yes
Yes
yes
Annual
Progress
reports from
LWSC
LWSC
Indicator 7: Integrated MIS established and used
Established/
Used
No
No
Estab
lishe
d
Used
Used
Used
Report from
LWSC
Indicator 8: Percentage of sewerage blockage complaints addressed satisfactorily
%
98
98
99
100
100
100
EDAMS NWASCO definition to be
used. Will be monitored
across the whole service area.
(Using LWSC report to
NWASCO)
Indicator 9: Direct project beneficiaries of which 50% female (on-site + off-site)
x
%
0
0
38
(36+
2)
114
(108
+6)
276
(252
+24)
393
(360
+33)
Annual
Progress
reports from
LWSC
LWSC
Assuming sewerage (at 50%
connections) plus FSM
10 Based on assumption of 35,000 mg/liter BOD5 for received fecal sludge; 1200-liter sludge per standard size single latrine; with 10,000 standard size latrines emptied by end of project. Double size latrines or bigger to be counted in standard size equivalents. 11 In the corresponding increase in ZMK/m³ plus inflation compensation to be applied in case NWASCO changes the sewerage tariff from “% of water tariff” to a true “real sewerage tariff in ZMK/m³”.
22
INTERMEDIATE RESULTS
Results Indicators
Co
re Unit of
Measure
Bas
elin
e Cumulative Target Values
Frequency Data Source/
Methodology
Responsibility
for Data
Collection
Description (indicator
definition etc.) YR 1 YR2 YR 3 YR 4 YR 5
Intermediate Result (Component One): Sewerage improvements (sewers, collectors, pump stations, treatment facilities constructed)
New household sewer connections constructed under the Project (cumulative)
x
No
0
0
300
850
2600
4100
Semi-
annual
Progress
reports
LWSC
Assumes 50% of households
connect
Length of sewer rehabilitated and newly constructed(cumulative)
km
0
0
5
20
50
82
Semi-
annual
Including main collectors and
network
Wastewater treated per year (cumulative)
m³/day (thousand)
4 7 7 10 15 20 Annual Progress
reports
LWSC Influent to Ngwerere ponds.
(Baseline data from LWSC
measurements in Dec 2016)
Intermediate Result (Component Two): Access to on-site sanitation services and fecal sludge management systems
Improved on-site facilities constructed
under the Project (cumulative) x
No. (thousand)
0
0
1
3
7
10
Semi-
annual
Progress
reports
LWSC
2 Fecal sludge management facilities
constructed & used
Constructed/
Used
2
Cons
truct
ed.
Used
Used
Used
Semi-
annual
Progress
reports
LWSC
Operation Manual for FSM developed
and in use
yes
Progress
reports
LWSC
People trained to improve hygiene
behavior or sanitation practices under
the project (cumulative) X
People
(thousand)
0
0
36
108
252
360
Annual
Progress
reports from
LWSC
LWSC
Assuming that marketing
campaign targets those with
access to FSM services
23
Observed presence of hand washing
facilities
%
0%
0%
20%
40%
60%
80%
Progress
reports from
LWSC
Report from program
monitoring system (using
data gathered by EHTs). In %
of households in the project
target area.
Intermediate Result (Component Three): Institutional strengthening
Minimum collection rate
%
79
85
85
85
85
85
Annual
Progress
reports
LWSC
Using LWSC report to
NWASCO
Number of sewer blockages addressed
(cumulative)
#/km
5.7
5.0
4.5
4.5
4.8
5.2
Annual
Progress
reports
LWSC
Feasibility studies completed
(cumulative)
Number
1
2
Annual
Progress
reports
LWSC
Drinking water samples tested
(bacteriological and residual Chlorine)
Number
167
55
16800
17000
17200
17500
17800
Annual Progress
reports
LWSC Using LWSC report to
NWASCO