AFRICAN DEVELOPMENT BANK GROUP
PROJECT : WATER SUPPLY AND SANITATION IN: I) THE
RURAL AREAS OF TADJOURA, ARTA AND ALI
SABIEH DISTRICTS; II) THE DISTRICT CENTRES OF
TADJOURA AND ALI SABIEH
COUNTRY : REPUBLIC OF DJIBOUTI
APPRAISAL REPORT
Date : SEPTEMBER 2012
OWAS DEPARTMENT
Translated Document
Appraisal Team
Sector Director: Mr. S. JALLOW, Director, OWAS
Regional Director: Mr. S. KONE, Director, OREB
Sector Manager: Mr. O.M. CHANDA, Division Manager, OWAS.2
Team Leader: Mrs. M. MOUMNI, Chief Water and Sanitation Engineer, OWAS
TABLE OF CONTENTS Page
Currency equivalents, fiscal year, weights and measures, abbreviations and acronyms, project
information, project summary, logical framework, implementation schedule.......................................i-v
I – STRATEGIC THRUST AND RATIONALE ............................................................... 1
1.1 Project linkages with country strategies and objectives .......................................... 1
1.2 Rationale for the Bank's involvement ..................................................................... 1
1.3 Aid coordination ...................................................................................................... 2
II – PROJECT DESCRIPTION .......................................................................................... 3
2.1 Project components ................................................................................................. 3
2.2 Technical solutions retained and other alternatives explored ................................. 4
2.3 Project type .............................................................................................................. 4
2.4 Project type cost and financing arrangements ......................................................... 4
2.5 Project target area and beneficiaries ........................................................................ 6
2.6 Participatory process for project identification, design and implementation .......... 6
2.7 Bank Group experience, lessons reflected un project design .................................. 7
2.8 Key performance indicators .................................................................................... 7
III – PROJECT FEASIBILITY ........................................................................................... 8
3.1 Economic and Financial Performance ..................................................................... 8
3.2 Environmental and social impacts ........................................................................... 8
IV – IMPLEMENTATION ............................................................................................... 10
4.1 Implementation arrangements ............................................................................... 10
4.2 Monitoring ..................................................................................................... ……12
4.3 Governance ............................................................................................................ 13
4.4 Sustainability ......................................................................................................... 13
4.5 Risk management .................................................................................................. 14
4.6 Knowledge building .............................................................................................. 15
V – LEGAL FRAMEWORK ............................................................................................ 15
5.1 Legal instrument .................................................................................................... 15
5.2 Conditions associated with Bank intervention ...................................................... 15
5.3 Compliance with Bank policies ............................................................................. 16
VI – RECOMMENDATION ............................................................................................ 16
Appendix I. Country's comparative socio-economic indicators
Appendix II. Table of ADB portfolio in the country
Appendix III. Key related projects financed by the Bank or other development partners
of the country
Appendix IV. Map of project area
i
Currency Equivalents June 2012
1 UA = DJF 275.565
1 UA = USD 1.51026
1 UA = Eur 1.21765
Fiscal Year 1 January – 31 December
Weights and Measures
1 metric tonne = 2,204 pounds (lbs.)
1 kilogramme (kg) = 2.204 (lbs.)
1 metre (m) = 3.28 feet (ft.)
1 millimetre (mm) = 0.03937 inches
1 kilometre (Km) = 0.62 mile
1 hectare (ha) = 2.471 acres
Abbreviations and Acronyms
ADF : African Development Fund
AFD : French Development Agency
AWF : African Water Facility
CSP : Country Strategy Paper
CVGE : Village Water Management Committee
DATE : Directorate of Territorial Development and the Environment
DE : Directorate of Water
DJF : Djiboutian Franc
DWSS : Drinking Water Supply and Sanitation
ESMP : Environmental and Social Management Plan
EU : European Union
FNE : National Water Fund
IEC : Information, Education and Communication
INDS : National Social Development Initiative
MAPERH : Ministry of Fisheries, Livestock and Fisheries Resources
MDG : Millennial Development Goal
MSP : Ministry of Public Health
NGO : Non-Governmental Organization
ONEAD : Djibouti National Water and Sanitation Authority
RWSSI : Rural Water Supply and Sanitation Initiative
SAWS : Stand-Alone Water Station
SC : Steering Committee
UA : Unit of Account
WB : World Bank
WHO : World Health Organization
ii
Project Information
Client Information
RECIPIENT : Government of the Republic of Djibouti
EXECUTING AGENCY : Ministry of Agriculture, Fisheries, Livestock and
Fisheries Resources (MAPERH)
Financing Plan
Source Amount
(UA million)
Instrument
ADF
3.500
Project Grant
RWSSI Trust Fund 2.464 Project Grant
Government 0.672 Contribution
Beneficiaries 0.079 Contribution
TOTAL COST 6.715
ADB’s key financing information
ADF grant currency
UA
RWSSI grant currency Eur
Interest type NA
Interest rate margin NA
Commitment fee NA
Other fees NA
Maturity NA
Grace period NA
ERR 18.6%
NPV DJF 1.08 billion
Timeframe – Milestones (expected)
Concept Note Approval
June 2012
Project Approval December 2012
Effectiveness March 2013
Last Disbursement December 2017
Completion June 2017
iii
Project Summary
1. Project Overview. The Project for Water Supply and Sanitation in: i) The Rural Areas
of Tadjoura, Arta and Ali Sabieh Districts; ii) The District Centres of Tadjoura and Ali Sabieh
regions is part of the Social Development Initiative and is consistent with Bank strategy for
the period 2011-2015 for Djibouti. It covers areas with a poverty rate of between 62% and
72%. The project targets rural populations of the three regions and those of Tadjoura and Ali
Sabieh centres. The main deliverables are: (i) 15 half-buried tanks, 5 DWS facilities and 5 new
stand-alone water stations (SAWS), 8 DWS facilities and 10 rehabilitated SAWS in rural areas
of the three regions; (ii) two water supply systems rehabilitated in Tadjoura and Ali Sabieh
centres; (iii) 450 household latrines and 15 blocks of school latrines built; (iv) IEC and
hygiene promotion campaigns targeting beneficiaries; (v) ESMP implementation and
monitoring; (vi) 30 Water User Management Committees (with women making up 30% of
members) set up, operated and trained in water point management and maintenance; and (vii)
at least 150 women trained in solar system maintenance.
2. The project will provide access to drinking water for 13,500 households, or about
80,000 people (44,000 rural inhabitants and 36,000 people in the Tadjoura and Ali Sabieh
centres - or 10% of the country's total population) and access to sanitation for 9,000 people. It
will also allow for the watering of about 42,000 head of cattle. It will enable: (i) rural
populations to shorten the distance to drinking water sources (from up to 20 km to less than
one km on average); (ii) the creation of 180,000 work days during project implementation and
205 permanent jobs. The project cost, net of taxes and custom duties, is estimated at UA 6.715
million or approximately DJF 1,850.418 million. The Bank's contribution stands at UA 3.50
million from an ADF grant and UA 2.464 million (Eur 3.00 million) from the RWSSI Fund.
The Government's counterpart funding is estimated at UA 0.672 million and that of
beneficiaries at UA 0.079 million.
3. Rural water supply access rate is estimated at 52.5%, while sanitation access rate is
estimated at 25% on average across the country. These rates fall below the sector's MDG
(100% drinking water and sanitation access rate). This limited access leads to a high incidence
of waterborne diseases, the second principal cause of death among children under 5 and a
major drawback to the country’s socio-economic development. With improved access to
drinking water and sanitation coupled with hygiene awareness campaigns, waterborne
diseases are expected to drop by 8% by 2016. Women can devote themselves to other
activities, including child up-bringing, while girls will have more time for training and
participation in associative activities.
4. The Bank's value added. The main lesson to be learnt from the project is the need to
assist the Government in its efforts to implement the National Social Development Initiative
(INDS) which aims to sustainably improve the living conditions of the populations by
enhancing, among others, access to drinking water and sanitation services.
5. Knowledge management. The project will adopt solar energy as a source of power for
the water systems and will contribute to enhance water resource knowledge and monitoring.
The experience and lessons from previous operations which informed the design of this
project will certainly enrich the knowledge of the Bank and the country concerning DWSS in
Djibouti, an arid country on which drought has taken a severe toll in recent years. Information
and lessons from the project’s implementation will also help the Bank in the design of future
operations and consolidate the latter’s position and visibility in the rural water supply sector.
iv
RESULTS-BASED LOGICAL FRAMEWORK
REPUBLIC OF DJIBOUTI: Water Supply and Sanitation in: i) The Rural Areas of Tadjoura, Arta and Ali Sabieh Districts; ii) The District Centres
of Tadjoura and Ali Sabieh
Project Goal: Sustainable improvement of access to drinking and pastoral water as well as sanitation services for populations of rural areas and district
centres of Tadjoura, Arta and Ali Sabieh
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/MITIGATION
MEASURES Indicators
(including CSI) Baseline Target
IMP
AC
T
Sustainable improvement of the living conditions of the
populations of rural areas and
district centres of Tadjoura, Arta and Ali Sabieh regions.
1) Drinking water access rate 2) Sanitation access rate
3) Prevalence rate of
waterborne diseases
1) 40% in 2011
2) 25% in 2011
3) More than 56% en
2011
1) 68% in 2025
2) 45% in 2025
3) Less than 34% in 2025
Sources: EPCV- MAPERH,
MICS surveys
Method: National surveys
OU
TC
OM
ES
Outcome 1: Improved access to drinking and pastoral water
Populations and livestock provided with water
Number of people (328,000) and size of
livestock (324,000 head)
supplied in 2011
408,000 people or 80,000 additional people; and 356,
400, or 32,400 additional head
of livestock will be supplied in 2016.
Sources: MAPERH,
MSP, INS
reports and project progress
reports.
Risks
- Fluctuation of water
resources
- Inadequacy of the water point management system
Mitigation Measures
- Better understanding of water resources and
adoption of a resource
management mechanism - Adoption of a water
point management
strategy as part of the study on national DWS
programme to be
financed by RWSSI.
Outcome 2: Improved access to
sanitation services
Populations covered by
sanitation services
Number of people
(205,000) covered in
2011.
214,000 people, or 9,000
additional people will have
access to sanitation services in 2016
Outcome 3: Improved hygiene
practice
Number of people affected by
waterborne diseases
More than 56% in 2011,
or 459,200 people affected by waterborne diseases
At least 48% in 2016 (65,600
people at least)
Outcome 4: Improved
management of groundwater
resources
Number of boreholes
monitored (in terms of
quantity and quality)
No borehole was
monitored in 2011
200 boreholes monitored in
2016
Outcome 5: Capacity building and job creation
No job related in 2011 205 permanent jobs created in 2016
OU
TP
UT
S
Output 1: Development of
drinking water and sanitation
infrastructure
1. Drinking water infrastructure
works
2. Sanitation works
3. IEC and hygiene campaign
1) DWS structures and
systems built
2) Latrines built
3) Number of people
sensitized
NA
NA
NA
1) 20 boreholes, 15 tanks, 10
stand-alone water stations, 14
DWS facilities and 700 subsidized connections made,
SAWS and DWS equipped
with fountains and troughs 2) 450 household latrines and
15 school latrines with
separate compartments for men and women, built
3) 80,000 people, including
about 42,000 women trained and sensitized
Project progress
reports
Monitoring and evaluation
system
Risk
The slow pace of
projection implementation.
Mitigation measures
- Strengthening of the
DE’s capacity of the; - Conduct of negotiations
for the preparation of bid
invitations - Sensitization and
training of beneficiaries
Output 2: Institutional support
1. Technical equipment 2. Training of DE staff
3. Training of DWS systems
management committees
1) Number of equipment
2) Number of staff trained 3) Number of committees
trained
15 test kits provided in 2013.
10 DE staff trained. 30 management committees
trained
150 women trained
Project status
reports and Bank
supervision
reports
Output 3: Project management
1. Supply of office equipment and
rolling stock 2. Audit of annual accounts and
quarterly progress reports
1) Number of office
equipment supplied
2) Audit and quarterly progress reports submitted on
time
NA
NA
Office equipment and two
vehicles supplied.
Timely submission of four audit reports meeting
international standards and 16
quarterly reports
COMPONENTS RESOURCES
KE
Y
AC
TIV
ITIE
S
COMPONENT A: Infrastructure development: UA 5.832 million (86.85 %)
COMPONENT B: Institutional support : UA 0.084 million (1.25 %)
COMPONENT C: Project management : UA 0.799 million (11.90 %)
Total Project Cost : UA 6.715 million
ADF/RWSSI: UA 5.964 million
Government: UA 0.672 million
Beneficiaries: UA 0.079 million
V
PROJECT IMPLEMENTATION SCHEDULE
No. ACTIVITIES
IMPLEMENTATION YEARS
2012 2013 2014 2015 2016 2017
Quarter (Q) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1. Approval of ADF and RWSSI Grants
2. Deployment of project staff
3. Signing/Effectiveness of Grants
4. Procurement/Consultants and Experts
5. Preparation of the procedures manual
6. Works studies, supervision and control services
7. Technical assistance services
8. Procurement of scientific equipment
9. Procurement of furniture/IT equipment/vehicles
10. Procurement of 15 water tanks
11. Construction of 15 tanks
12. Contract award for 10 new boreholes/rural areas
13. Drilling of 10 new boreholes /rural areas
14. Contract award for five SAWS and 5 DWS facilities
15. Construction of five SAWS and five DWS facilities
16. Contract award for the rehabilitation of 10 DWS facilities
17. Rehabilitation of 10 DWS facilities
18. Contract award for the rehabilitation of eight DWS facilities
19. Rehabilitation of eight DWS facilities
20. Contract award for the Tadjoura DWS (Drilling + Res.)
21. Works of the Tadjoura DWS (Drilling + Res.)
22. Contract award for Ali Sabieh Water Supply (EPA) (Drilling +
Res.)
23. Ali Sabieh Water Supply Works (Drilling + Res.)
24. Contract award for institutional latrines
25. Construction of latrines in schools
26. Contract award for family latrines
27. Construction of family latrines
28. Training of staff (DE) and local stakeholders
29. IEC campaigns
30. Accounts Audit
31. Project management
32. Mid-term review
33. Completion Report
1
BANK GROUP MANAGEMENT REPORT AND RECOMMENDATION TO THE
BOARD OF DIRECTORS ON A PROPOSED ADF AND RWSSI GRANT TO DJIBOUTI
FOR DRINKING WATER SUPPLY AND SANITATION IN i) THE RURAL AREAS OF
TADJOURA, ARTA AND SABIEH DISTRICTS; ii) THE DISTRICT CENTRES OF
TADJOURA AND ALI SABIEH PROJECT
Management is submitting this report and its recommendation on a proposed ADF grant of UA
3.50 million and a grant of Eur 3.00 million from the RWSSI Fund to the Republic of Djibouti to
finance the Drinking Water Supply and Sanitation in: i) The Rural Areas of Tadjoura, Arta and
Ali Sabieh Districts; ii) The District Centres of Tadjoura and Ali Sabieh Project.
I. STRATEGIC THRUST AND RATIONALE
1.1 Project Linkages with Country Strategy and Objectives
1.1.1 This project is part of the National Social Development Initiative (INDS) established in
2007 and updated in 2011 to cover the period 2011-2015. One of the objectives of this Initiative
was to consolidate the progress made since 2000 towards achieving the Millennium Development
Goals (MDGs). The strategic thrusts relate to: (i) growth, competitiveness and employment; (ii)
access to basic social services; (iii) reduction of poverty and vulnerability; and (iv) public
governance.
1.1.2 The INDS identified water scarcity and limited availability and mobilization of water
resources as some of the major challenges facing the country. The project, which is part of
strategic areas ii and iii of the INDS, will sustainably improve the living conditions of the
populations of the Tadjoura, Arta and Ali Sabieh regions. These regions, which are among the
country's poorest, are experiencing severe water stress which can be alleviated by improving
access to drinking water and sanitation services.
1.1.3 The project is in line with the sole pillar of the CSP whose main objective is to enable
the country to establish a more inclusive growth momentum through infrastructure establishment,
particularly in the area of water and sanitation. This operation is consistent with the pillar’s
objective to reduce the dismal living conditions of the populations. In addition, the project is
listed among the operations planned for the period 2011-2015. It is also consistent with the
objectives of the Rural Water Supply and Sanitation Initiative (RWSSI) which aims to improve
the rate of access to drinking water and sanitation services for rural populations and is in line with
the initiatives planned under of Drought Resilience and Sustainable Development Programme
(PRSDD).
1.2 Rationale for Bank Involvement
1.2.1 Djibouti is an arid country which receives, on average, 150 mm of rain annually and has
no permanent source of surface water. Nearly 95% of the water used comes from underground
aquifers that are replenished primarily through infiltration and rainwater runoff. Access to water
in Djibouti is a major challenge for the development of socio-economic activities. Furthermore,
harnessing surface and ground water to improve, among other things, access to drinking water
and sanitation services for vulnerable populations is a Government priority.
2
1.2.2 The drinking water supply access rate is estimated at 52.5% and that of sanitation at 25%
on average across the country. These rates are well below the Government's MDG target (100%
for drinking water and sanitation access). Limited access to drinking water and sanitation leads to
a high incidence of waterborne diseases, the second major cause of consultations and deaths
among children under 5 in Djibouti. Moreover, restricted access to water limits development of
the primary sector which, as a result, contributes only marginally to the country's GDP
(agriculture or livestock).
1.2.3 The Bank's intervention through this project: (i) addresses the Government’s major
concern and its desire to reduce water stress in the various regions, in line with the INDS; (ii)
contributes to bridging regional disparities in access to drinking water and sanitation services; and
(iii) aims to strengthen the Drought Resilience and Sustainable Development Programme
(PRSDD) in the countries of the Horn of Africa, especially the Programme's "natural resource
management'' component that aims to strengthen drinking water mobilization and storage
infrastructure and protect the watershed for human use as well as for agricultural and pastoral
activities.
1.2.4 Furthermore, the Bank's intervention is justified by its perfect mastery not only of the
urban water supply systems in Djibouti, where it has financed four operations since the 1990s,
but also of water supply in rural areas where the it has acquired significant regional experience in
RWSSI programme implementation. Also, in the project design, the problem of
compartmentalization of government services, the high cost of works due to the contracts’ lack of
appeal, the slow pace of implementation and the weak management capacity were all taken into
account.
1.3 Aid Coordination
1.3.1 The country lacks an effective donor intervention coordination and harmonization
mechanism. However, several donors recently initiated, in coordination with the Government, the
preparation of a roadmap for the establishment of a coordination mechanism to assist the country.
This mechanism is expected to focus on three priority areas: water, energy and food security. The
goal is to ensure information exchange and harmonization of donor interventions with a view to
enhancing aid effectiveness. This mechanism is expected to help: (i) target priority projects; (ii)
strengthen existing national programmes; (iii) provide better internal oversight and supervision
capacity; and (iv) act as a catalyst for mobilizing funds and improving project monitoring,
evaluation and audit.
1.3.2 The DWSS sector is financed mainly through donor contributions in the form of loans
and grants, given that the national contribution remains inadequate. Donors currently contribute a
total of DJF 13.8 billion (UNICEF/Wash in schools and rural water points programme;
FAO/Water Points Rehabilitation; JICA/RDWS in the southern region; WB/Rural Community
Development and Water Mobilization in Obock and Dikhil; EU-AFD/Sanitation in Djibouti City
and MDG Project and AFESD/Strengthening in Djibouti). The Bank Group is one of Djibouti’s
main donors, contributing a total of DJF 2.16 billion (16% of the funding).
3
Table 1.1 : Water Sector Funding
Water
and sanitation sector
GDP Export Labour
3.9% - -
Stakeholders – Annual public expenditure in UA million (PTIP 2008-2010)
Government WB/IDA ADB AFD/EU ARAB FUND UNICEF
3.5 4.52 7.88 17.32 17.72 2.76
Aid coordination level
Existence of thematic working groups NO
Existence of an overall sectoral programme NO
Bank’s role in aid coordination NA
II. PROJECT DESCRIPTION
2.1 Project Components
2.1.1 The project's sector goal is to contribute to the sustainable improvement of the living
conditions of the populations in rural areas and district centres of the Tadjoura, Arta and Ali
Sabieh regions. The total population targeted is estimated at about 216,000 people.
2.1.2 The specific objectives are to: (i) improve the access rate for drinking water (40% to
50%) and sanitation (25% to 35%) by providing drinking water and sanitation infrastructure; and
(ii) strengthen the capacity of the Water Directorate (DE), local players and beneficiaries.
Table 2.1 : Project Component
Component Name Estimated Cost
(in UA million)
Component Description
A. Development of
drinking water and
sanitation
infrastructure
5.832
(i) Construction of DWS systems in rural areas (15 half-buried water tanks,
10 new boreholes, 5 DWS facilities and 5 new stand-alone water points
(SAWPs); 8 DWS networks and 10 SAWPs to be rehabilitated;
(i) Rehabilitation and extension of water supply systems in the district
centres of Tadjoura and Ali Sabieh (9 new boreholes, 21 km of water
supply pipes and 700 subsidized connections);
(ii) Construction of 450 latrines and 15 latrine blocks in schools with
separate male/female compartments;
(iii) Service delivery for the conduct of technical studies and supervision of
DWSS works;
(iv) Conduct of IEC campaigns and hygiene promotion for beneficiaries;
(v) ESMP implementation and monitoring.
B. Institutional
Support and
Capacity Building
0.084
(i) Provision of technical equipment to the Water Directorate for capacity
building in water resource monitoring;
(ii) Training of Water Directorate staff in participatory community
development, integrated water resource management and drilling of
boreholes;
(iii) Training of DWS systems management committees.
C. Project
Management
0.799
(i) Provision of office equipment, rolling stock and IT equipment;
(ii) Operation;
(iii) Project coordination, monitoring, evaluation and audit activities
(including preparation of the procedures manual and procurement of
accounting software).
4
2.2 Technical solutions selected and alternatives explored
2.2.1 The technical design of this project is based on: (i) technical solutions framework
adopted by MAPERH; and (ii) basic planning carried out at national level to achieve the MDGs
in the water sector. Regarding the DWS, preferential drinking water supply solutions were
adopted, involving technologies best tailored to the local context: (i) drilling to feed water supply
stations and village water supply systems; and (ii) building of water tanks for harnessing surface
water. Renewable energy (solar energy) will be used to power water supply stations and systems.
Provision has also been made for related facilities such as drinking troughs and water fountains.
2.2.2 The stand-alone sanitation system was adopted as a technical reference framework.
Ventilated improved pit (VIP) latrines, consisting of blocks (4 boxes) and separate men/women
compartments, including urinals and two hand-washing basins, will be built.
Table 2.2 : Alternative Solutions Explored and reasons for Rejection
Alternative
Solution
Brief description
Causes of their rejection
Building of hillside
catchment reservoirs
Construction of catchment
reservoirs for greater harvesting
of surface water resources
Volumes of water available for harvesting are
low compared to the enormous water needs
that cannot be met due to climatic conditions;
High cost of investment
Boreholes with
hand-operated
pumps
Drilling of low-flow boreholes,
equipped with hand pumps
Low water flows may cause conflicts between
users (drinking water for people and pastoral
water for livestock)
Use of a thermal
energy source
Boreholes equipped with thermal-
powered pumps
High cost of maintenance
Accessibility problems, causing delays in fuel
deliveries
Building of
collective sanitation
facilities
Construction of wastewater
drainage systems
High investment costs
The quantity of wastewater discharged is not
enough to ensure the self-cleaning of pipes
Manually flushed
toilettes
Structure equipped with a small
water tank High water consumption compared to the small
quantities available.
2.3 Project Type
The project is a stand-alone operation funded by investment project grants.
2.4 Project Cost and Financing Arrangements
2.4.1 The project cost, net of taxes and customs duties, is estimated at UA 6.715 million or
approximately DJF 1,850.418 million. The ADF will contribute UA 3.50 million in form of grant,
representing approximately 52.12%. The RWSSI Fund will contribute UA 2.464 million (Eur
3.00 million), representing approximately 36.69%. The Government's counterpart contribution is
estimated at UA 0.672 million (10.01%) and the beneficiaries' at UA 0.079 million (1.18%).
5
Table 2.3 : Cost Estimates by Component (in UA million)
Components Foreign
Exchange Local Currency Total Cost
% Foreign
Exchange
Water infrastructure development 4.128 1.032 5.160 80.00
Institutional support 0.074 0.000 0.074 100.00
Project Management 0.177 0.528 0.705 25.10
Total Baseline Cost 4.379 1.560 5.939 73.73
Provision for Physical Contingencies 0.438 0.156 0.594 -
Provision for Price Escalation 0.096 0.085 0.181 -
TOTAL COST 4.914 1.801 6.715 73.18
Table 2.4 : Project Cost by Expenditure Category (in UA million)
Categories Foreign
Exchange Local Currency Total Cost
% Foreign
Currency
GOODS 0.761 0.180 1.237 80.91%
WORKS 3.054 0.763 3.511 80.00%
SERVICES 0.453 0.088 0.542 83.67%
RECURRENT 0.111 0.417 0.529 21.05%
Total Baseline Cost 4.379 1.560 5.939 73.73
Provision for Physical Contingencies 0.438 0.156 0.594 -
Provision for Price Escalation 0.096 0.085 0.181 -
TOTAL COST 4.914 1.801 6.715 73.18
Table 2.5 : Cost Estimates by Financing Source (in UA million)
Sources of Financing Foreign
Exchange Local Currency Total Cost % Total
ADF Grant 2.450 1.050 3.500 52.12%
RWSSI Grant 2.464 0 2.464 36.69%
Government 0.000 0.672 0.672 10.01%
Beneficiaries 0.000 0.079 0.079 1.18%
TOTAL COST 4.914 1.801 6.715 100%
Table 2.6 : Project Cost by Expenditure Category and Financing Source (in UA million)
Categories/Sources ADF RWSSI Govt. BEN. Total %
WORKS 1.897 1.683 0.315 0.079 3.974 59.18%
GOODS 0.523 0.781 0.096 0 1.400 20.85%
SERVICES 0.614 0 0 0 0.614 9.14%
RECURRENT 0.466 0 0.261 0 0.727 10.83%
Total Costs 3.500 2.464 0.672 0.079 6.715 100%
Table 2.7 : Expenditure Schedule by Component (in UA million)
COMPONENTS 2013 2014 2015 2016 2017 total
Infrastructure Development 0.292 1.166 1.750 2.041 0.583 5.832
Institutional 0.004 0.017 0.025 0.029 0.008 0.084
Project Management 0.034 0.134 0.201 0.235 0.195 0.799
Total Cost 0.329 1.317 1.976 2.305 0.787 6.715
6
2.4.2 The project cost was determined on the basis of technical studies and recent similar
contracts financed by other donors (World Bank, JICA and the Arab Fund) with a 10% allowance
for physical contingencies and 5% for price escalation. Regarding cost breakdown, 73.18% is in
foreign exchange and 26.82% in local currency.
2.5 Project Area and Beneficiaries
2.5.1 The project areas are Tadjoura, Arta and Ali Sabieh districts, which have poverty rates
of between 62% and 72%. The beneficiaries targeted are the rural populations of these three
districts and the populations of Tadjoura and Ali Sabieh district centres. The choice of these areas
is justified by the relatively high poverty levels and the low rate of access to sources of good
quality drinking water (46% on average). The population lives essentially on livestock products
(sale of animals) and income from petty trading in consumer products in rural and urban areas,
and also from unskilled labour and financial support from family members in the city. The socio-
economic situation is more critical in Tadjoura and Ali Sabieh regions which are located on
migrant routes and have greater economic development potential.
2.5.2 The project will directly benefit 13,500 households, or 80,000 people. This population
comprises 44,000 people in rural areas and 36,000 people in district centres or about 10% of the
country's total population. Approximately 9,000 people have access to improved sanitation. The
people have at least 20 l/day/ht in rural areas and 30 l/day/ht in district centres. The population's
distance from a sustainable source of drinking water will be reduced from 20 km to 1 km. The
project will create 180,000 work days during its implementation and 205 permanent jobs after its
completion. The private sector will benefit from the project by participating in the procurement of
works, goods and services. The implementation of project activities will enable MAPERH to
strengthen its project management capacity and the control of water resources.
2.6 Participatory Approach in Project Identification, Design and Implementation.
2.6.1 The project preparation was based on a participatory approach involving all the sector's
stakeholders. It was the subject of a preparation mission undertaken in January 2012. Its
components and activities were defined in consultation with MAPERH and the beneficiaries.
Field missions and consultations were organized with local government authorities, beneficiaries
and development partners for better coordination. Public consultations (NGOs, local authorities
and the populations) in the target regions made it possible to identify the specific problems of
each region, detect institutional weaknesses and provide for appropriate project implementation
and operation support measures.
2.6.2 The project design took into account the limited water availability for people and
livestock and the increasingly high demand for DWS infrastructure. The choice of investments
and their nature and siting were based on socio-economic criteria and the proximity of water
points to users. Implementation arrangements and the various forms of support required were
discussed and agreed on by stakeholders. The involvement of beneficiaries in project
implementation is evidenced by their commitment to contributing financially or in kind
(provision of materials, advocacy works and activities). The establishment of local management
committees will be entrusted to people chosen by beneficiaries. The project includes hygiene
awareness campaigns, especially in the area of water and sanitation.
7
2.7 Consideration of the Bank Group’s Experience and Lessons learnt from the Project
Design
2.7.1 The combined report on RBCSP 2007-2010 completion and portfolio performance
review identified the major drawbacks to the operational performance of projects in Djibouti,
namely: (i) the quality at entry and design of projects; (ii) ignorance of the Bank's procurement
and disbursement rules of procedures; (iii) lack of an appropriate planning system and the
inefficiency of the monitoring and evaluation mechanism; (iv) lack of coordination and
communication; and (v) non-compliance with some provisions and conditions of funding
agreements. The performance of water sector projects was deemed satisfactory, with a score of
2.05 at the last portfolio review in 2010. The issues raised related mainly to implementation
delays due to poor quality at entry. The situation has since improved significantly, with the two
projects (the Djibouti City Sanitation Project and the Project to support the harvesting of water
for domestic and agricultural use) achieving an overall disbursement rate over 83% at end-August
2012.
2.7.2 These constraints and lessons learnt from on-going projects were taken into account in
the project design which provides for: (i) capacity building (provision of equipment and training)
for the entities involved in project implementation; (ii) support to the executing agency for the
recruitment of an administrative and financial manager, an accountant and a procurement expert;
and (iii) training and sensitization of beneficiaries to ensure greater ownership. Moreover, the
study for the development of national DWSS in rural areas, which will serve as the planning and
investment tool, is expected to be funded from RWSSI resources.
2.8 Key Performance Indicators
2.8.1 Project performance will be measured using key indicators of the logical framework.
Impact indicators will be measured by 2016 in terms of: (i) trends in waterborne disease
prevalence rate; (ii) drinking water access rate; and (iii) sanitation access rate. As for the
intermediate effects, performance will be measured by: (i) the additional number of people and
head of livestock having access to drinking water; (ii) the number of people with access to
sanitation services; and (iii) the number of people who contracted waterborne diseases. Regarding
the outputs, performance will be measured by: (i) the number of DWS structures constructed; (ii)
the number of sanitation facilities built in schools; (iii) the number of household latrines
constructed; (iv) the number of staff trained; (v) the number of water user committees trained in
water supply system management; and (vi) the number of women trained.
2.8.2 Baseline data were collected from socio-economic studies and surveys (EDIM) and
MAPERH database. The project executing agency will pool the data collected and ensure project
monitoring and evaluation. Quarterly progress reports on the project will include a section on
indicator trends. Towards the end of the project, a socio-economic survey will be conducted to
identify the project's overall impact on drinking water and sanitation access, health and the
prevalence of waterborne diseases in the project area.
8
III. PROJECT FEASIBILITY
3.1 Economic Performance
ERR 18.6%
NPV DJF 1.08 billion.
3.1.1 The project targets three regions -Tadjoura, Arta and Ali-Sabieh - whose populations
depend on agricultural and pastoral activities for their livelihood. From an economic standpoint,
the project benefits will be reflected in the improved quality and conditions of life of the
beneficiaries. Water supply will reduce the incidence of waterborne diseases, lessen the burden of
water-fetching and livestock-watering chores, which are important activities in the
abovementioned regions. Thanks to the project, the time spent fetching water will be devoted to
regular school attendance for children, securing of livestock, job creation during its
implementation and operation phases and facilitating women’s integration in the development
process. Lastly, it will also make water available to migrant populations crossing Djibouti to
several destinations.
3.1.2 Taking into account quantifiable benefits such as the economic value of the water
supplied to beneficiaries, livestock watering, easing of water-fetching chores, health budget
savings, earnings from days of work put in during the project and benefits resulting from
protected defecation, the project’s economic rate of return may be estimated at 18.6% and the net
present value at DJF 1.08 billion. The project performance sensitivity was analysed in relation to:
(i) a 10% increase in operating expenses; (ii) a 10% decrease in the economic benefits; and (iii) a
combination of both factors. The test showed that the rate of return increased respectively to
17.9%, 16.0% and 15.2%, which proves that profitability levels are enough to buttress the socio-
economic rationale of the project.
3.2 Environmental and Social Impact
Environmental Aspects
3.2.1 This project aims to improve access to drinking water and sanitation in rural areas as
well as in district centres. The activities fall under Category 2 according to the Bank’s
environmental guidelines. The expected key positive environmental impacts relate to: (i)
reduction in the prevalence of waterborne diseases by improving access to drinking water; (ii)
improvement in the populations’ living standards through better access to sanitation services; and
(iii) better monitoring of the quantity and quality of water resources. The major negative impacts
that may be expected relate to: (i) the accelerated decline of groundwater levels, resulting from
climate change; (ii) risks related to water and soil pollution during works; and (iii) the risk of
conflict over water point management.
3.2.2 The negative environmental impacts will be limited, reversible and controllable through
implementation and monitoring of appropriate mitigation measures, including: (i) systematic
analysis of water quality prior to the equipment of points; (ii) monitoring of piezometric
groundwater levels in the project area; (iii) compliance with environmental management
standards in force and rehabilitation of the soil once the work is completed. Prompt impact
studies will be carried out for each type of structure and the mitigation and/or enhancement
9
measures systematically taken up by the project to ensure compliance with the principles of
sustainable management of resources and environmental conservation defined in the
Environmental and Social Management Plan (ESMP) developed as part of the project. ESMP
implementation will be monitored by the Directorate of Territorial Development and the
Environment (DATE).
Climate Change
3.2.3 Surface water resources in Djibouti are subject to climate change variations (fluctuations
in rainfall and increase in temperatures). The groundwater in some areas is of poor quality
(salinity) and with low piezometric levels. The adverse effects of rising temperatures and
declining rainfall have a direct impact on the replenishment of water tables which may affect the
sustainability of the project outcomes. However, to cope with these fluctuations, regular
monitoring of groundwater levels will be strengthened through the project. The regeneration of
vegetation cover through compensatory reforestation around water points will create a carbon
sink to soak up carbon dioxide, thus reducing greenhouse gas emissions. By using solar power
technology to pump water in DWS systems, the project will positively impact climate change. It
is worth noting that UNDP is funding a national climate change adaptation programme, which
aims to strengthen the Ali Sabieh population’s resilience through the development of agro-
pastoral perimeters. This project can only help to boost the programme.
Forced Resettlement
3.2.4 The project does not involve displacement or resettlement. The choice of sites is
relatively easy in rural areas due to the availability of uninhabited spaces. In district centres, the
network extensions will take the existing houses into account.
Gender
3.2.5 In Djibouti, women account for 52.6% of the total population and 34% of the workforce.
In addition, 19.7% of Djiboutian households are female-headed and unemployment affects more
women than men (70% of women aged over 15 years are unemployed compared with 56% for
men). In rural areas, women are more likely to be unemployed (83.8%). They suffer from huge
disparities and their participation in decision-making remains marginal. The main obstacles to
women’s integration in development relate to customary and traditional restrictions, despite
efforts by the authorities to establish a legal framework conducive to enhancing the social and
economic status of women. In this regard, the National Union of Djiboutian Women (UNFD) has
spared no effort to carry out awareness campaigns aimed at creating conditions for the emergence
of several associations and NGOs that could initiate activities designed to meet the local needs of
women.
3.2.6 The project will generate valuable time savings for women, allowing them to develop
other activities and concentrate more on monitoring children's welfare and up-bringing. Girls will
have more time for training or participation in associations. The project will support the
integration of women in village water point management committees to ensure their involvement
in the management of water services, decision-making and maintenance (150 women will be
trained in solar system maintenance, which is a gainful employment). The project will ensure that
the percentage of women in these committees is at least 30% compared with the current 10%.
10
This issue was discussed during consultations on the ground. Awareness campaigns will focus
mainly on women in such areas as hygiene, maternal and child and nutritional health, and
HIV/AIDS.
Social
3.2.7 The project will benefit the rural poor as well as migrants from Ethiopia and Somalia
(Tadjoura region) whose passage increases the pressure around water points. In siting the
structures, the project will take this social phenomenon into account in order to avoid any conflict
between communities over the use of facilities and meet the needs of local populations. It will
ensure: (i) permanent access to drinking water for more than 13,500 households or 80,000 people;
(ii) improvement of living conditions, hygiene and sanitation, resulting in a reduction in the
prevalence and spread of waterborne diseases; (iii) time savings of two to eight hours on water-
fetching; (iv) increased school enrolment and attendance among rural children; (v) strengthening
of social cohesion through awareness activities and the formation of village water management
committees; and (vi) creation of 180,000 work days during implementation of the project and 205
permanent jobs during its operation.
IV. IMPLEMENTATION
4.1 Implementation Arrangements
4.1.1 The Ministry of Agriculture, Fisheries, Livestock and Fisheries Resources (MAPERH)
will be the project executing agency, acting through the Water Directorate (DE), which will be
responsible for project coordination. As part of its mandate, this Directorate is responsible for
implementing the Ministry’s water and sanitation policy, especially in rural areas, through its
services (Services in charge of Water Resources, Engineering and Works, Decentralized
Management of Water Points and Sanitation). The Presidential Directive of 28 April 2012 vested
the Directorate responsible for project implementation with greater powers in the areas of rural
water supply, livestock watering and irrigation of agro-pastoral perimeters.
4.1.2 Given its limited capacity, the Water Directorate (DE) will be reinforced by an
Administrative and Financial Manager, an Accountant and a Procurement Specialist to be
recruited through a call for candidatures, as well as a support staff. To build the capacity of the
Water Directorate (DE) in the area of sanitation, there are plans to mobilize resources from the
Trust Fund managed by the Bank for the recruitment of a Sanitation Specialist to assist the DE in
the monitoring and evaluation of performance indicators. A summary of the ToR is provided in
the technical annexes.
4.1.3 The technical implementation of activities in rural areas will be carried out by DE
services and in the two district centres by ONEAD. DE and ONEAD will be responsible for the
procurement of goods, works and consultancy services in their respective areas of activity. Both
agencies will each appoint a project manager with proven project management experience.
However, the DE will be responsible for overall project coordination.
4.1.4 The DE will be responsible, among other activities, for: (i) acting as interface between
the ADB and structures involved in project implementation; (ii) coordinating and monitoring the
project; (iii) reporting regularly on the progress achieved; (iv) preparing and coordinating
11
supervision missions; (vi) preparing and monitoring the procurement plan including contracts
awarded by the ONEAD; and (vii) ensuring the archiving of all project documents and files for
ex-post audit and review purposes.
4.1.5 A Project Steering Committee (CP) will be set up to strengthen consultations and serve
as a project steering and monitoring forum. This Committee will be chaired by the MAPERH
Secretary-General and will include representatives of the Ministry of the Economy and Finance in
charge of Industry and Planning (Directorate of External Financing/DFE), MAPERH (DE), the
Ministry of Energy (ONEAD), the Ministry of Town Planning (Directorate of Territorial
Development the Environment/DATE) and Prefects of the regions concerned. The Secretariat of
the Steering Committee will be provided the DE.
4.1.6 Procurement Arrangements: All goods, works and consultancy services financed from
the Bank's resources will be procured in accordance with Bank Rules of Procedure for the
Procurement of Goods and Works (May 2008 Edition, Revised July 2012) or, as appropriate, its
Rules and Procedures for the use of Consultants (May 2008 Edition, Revised July 2012), using
the Bank's standard bidding documents. DE and ONEAD will be responsible for the procurement
of goods, works and services and other items as described in Annex B5. A review of the
resources, capacity, expertise and experience of DE and ONEAD revealed that the DE's capacity
needs to be built in the area of procurement, and that ONEAD has the capacity to ensure the
procurement process (It is currently implementing the Djibouti City Sanitation Project). A
Procurement Plan was prepared in cooperation with DE during the appraisal mission and will be
updated during the negotiation of Grant Agreements. A summarized version of this Plan is also
included in Annex B5.
Financial Management, Disbursement and Audit Arrangements
4.1.7 The existing financial management systems at the DE are generally not satisfactory and
the overall fiduciary risk is substantial, due to the weaknesses noted the budgeting, internal
oversight, accounting, cash management and information system. As a result, the DE shall: (i)
prepare a budget plan coupled with the provisional schedule of activities and a half-yearly budget
plan as well; (ii) hire a consultant to prepare the administrative financial and accounting
procedure manual, templates for the monitoring of fuel, missions and the maintenance of rolling
stock; (iii) hire an administrative and financial manager as well as an accountant and carry out an
appropriate division of financial duties; (iv) assign premises and cabinets for the storage of
supporting documents; (v) establish a numbered and initialled assets register; (vi) establish a
project-specific general, analytical and budget accounting plan and procure an accounting
software; (vii) open a special Djiboutian-franc account in a commercial bank; (viii) establish a
plan for cash flow as well as quarterly and half-yearly status reports, including interim financial
statements; and (ix) recruit an external audit firm to audit the project.
4.1.8 The project’s administrative, financial and accounting management will be ensured by
the DE which will keep project-specific general and analytical accounts and ensure budget
monitoring based on an integrated accounting system. An administrative, accounting and
financial management procedure manual will be prepared from the start of project
implementation. The project accounts will be subject to the usual government and Bank
oversight. Annual audits of the special account will be conducted.
12
4.1.9 Disbursement Arrangements: Disbursement for expenditure will be made either by direct
payment or through a special account opened for project recurrent expenses. Expenses relating to
consultancy, contracting and supplier services will be settled using the direct payment method.
Disbursements will be made in compliance with Bank procedures.
4.1.10 External Audit Arrangements: The project's financial statements will subject to annual audits
conducted by an independent auditing firm recruited on the basis of a short list, in accordance with
Bank Rules of Procedure. External audit will be performed in accordance with International Standards
on Auditing (ISA). The ToR will be established following the Bank-proposed template. Audit and
internal oversight reports will be submitted to the Bank within six months of the end of each fiscal
year.
4.2 Monitoring
4.2.1 Project implementation is planned to span five years, from January 2013 to December
2017. The DE will be primarily responsible for the internal monitoring of implementation of
project activities and their impacts. The latter will establish, using the Bank-recommended
format, quarterly and annual status reports on the monitoring of the project's logical framework
indicators. External monitoring will be carried out at the central level by the Steering Committee
which will be required to review the progress of the project, assess its performance and the
quality of its management and its outcomes and, as necessary, refocus the project, in consultation
with the Bank. Compliance of implementation with the ESMP will be supervised by DATE, the
structure responsible for ensuring project implementation conformity with environmental and
social standards.
4.2.2 The Bank will monitor the project through supervision missions and technical and
financial audits. The Bank Departments responsible for financial management (ORPF) and
disbursements (FFCO) will be involved in these missions to back up the assessment of financial
and fiduciary management. The East African Regional Resource Centre (EARC) in Kenya will be
involved in implementation monitoring by providing required assistance in the area of close
supervision and monitoring of implementation of the recommendations relating thereto. The
implementation schedule is as follows:
Activities Responsible Date /Period
Financing Approval ADF November 2013
Establishment of the Coordination Team Govt. January/March 2013
Grant Effectiveness ADF/Govt. March 2013
Preparation/Launch of Bidding Services Water Directorate /ADF April 2013
Start of Consultants’ Services Water Directorate October 2013
Launch of Bid Invitations/Works Water Directorate/ADB January 2014
Award/Start of Works DE /Enterprises April 2014
Mid-Term Review ADF/Water Directorate July 2015
Physical Project Completion Water Directorate June 2017
Completion Mission ADF/Water Directorate December 2017
13
4.3 Governance
4.3.1 CPIA assessments and other rankings (Ibrahim Index or Transparency International)
show that there are major challenges to be addressed in the area of governance. Generally, the
country is suffering from the ineffectiveness and poor quality of its public services. The CPIA
rating for the "governance" factor, specifically the effectiveness of management of the public
sector and institution, has stagnated at the score of 3 since 2005 for most of the sub-components,
with the exception of the score for resource mobilization efficiency. The findings of the PEFA
assessment, conducted in 2010, pointed out weaknesses in budget preparation, implementation
and oversight. It noted, in particular, that 51% of public procurement made in 2009 followed non-
competitive procedures. It should be noted that a new procurement code was adopted in July
2009. It is worth pointing out, however, that in 2011 the Bank conducted a review of national
procurement rules and procedures in Djibouti to discuss the possibilities of implementing the
provisions of the Paris Declaration on the use of national procedures for project implementation.
The final report is not yet available.
4.3.2 The project's governance risk relates to the procurement process for goods, works and
services and financial resource management. Risks in these areas will be mitigated by closely
monitoring the strict implementation of the Bank's procurement rules of procedure. Supervision
missions and technical and financial audits will ascertain compliance and consistency between
the resources committed and the services actually provided. Training sessions organized by the
Bank on project cycles and procurement for RMCs will help improve governance. On the
Government side, the involvement of the Directorate of External Financing (DFE) in the project’s
Steering Committee will strengthen good governance insofar as this Directorate will have a right
of oversight over the management of financial resources and the quality of achievements.
4.4 Sustainability
4.4.1 To ensure the maintenance and operation of water points in rural areas, the State
established, in 2001, the National Water Fund (FNE), whose resources are primarily derived
from: (i) the annual contribution set at 3% of the revenue actually collected by ONEAD; (ii) the
DE's annual budget allocation for maintenance of the facilities; (iii) an annual subsidy of DJF 4
per litre of water produced locally; (iv) a dewatering fee paid by private operators; (v) any other
State subsidies and donor contributions. The FNE's Central Bank account is jointly managed by
the DE and the Ministry of Finance. Moreover, since 2007, and with AFD support, the MAPERH
has been setting up water point management committees (there are currently 45 operational
committees), each composed of seven members, including at least one woman (the treasurer or
vice-president). In addition, a water point participatory management strategy is currently being
formulated. It will specify the conditions for setting up management committees and lay down a
set of specifications defining the rights and obligations of beneficiary members. In the project’s
rural areas, planned awareness campaigns and training are expected to culminate in the setting up
of 30 committees with an expected female participation of at least 30%. At least 150 women will
be trained in solar system maintenance.
14
4.4.2 At the Tadjoura and Ali Sabieh centres, the Djibouti National Water and Sanitation
Authority (ONEAD) is responsible for the management of production facilities (wells, networks
and pumping stations) and drinking water distribution. The domestic water bill collection rate
stands at approximately 80%.
4.4.3 The issue of sustainability of individual sanitation investments does not arise because: (i)
sanitation is culturally rooted in the lifestyle of the Djiboutian people and the quality of facilities
depends on the availability of funds; (ii) the people are ready to contribute financially to the
construction of household latrines. Field missions revealed that this contribution may be up to
20% of the total investment cost. It is expected that household latrine beneficiaries, to be selected
on the basis of specific criteria (lack of latrines, low income and willingness to contribute), will
participate in the construction of structures (pit-digging mostly).
4.5 Risk Management
4.5.1 The biggest risk facing the project is the fluctuation of groundwater resources as a result
of climate change. Since the project is unable to influence these changes, it recommends ways of
coping therewith through better knowledge of water resources that should lead to the introduction
of mechanisms for the management of these resources, including the provision of groundwater
monitoring technical equipment. As part of preparation of the study on the RWSSI-funded
national DWSS programme for rural areas, a water point management strategy will be defined.
Building the capacity of the executing agency as well as training and sensitizing the beneficiaries
will help mitigate this risk. Moreover, post-project completion failure of the water point
management system could constitute a risk to project sustainability. In that regard, the project
design was based on the implementation of community-based water point management strategy,
in addition to the strategic management thrusts that will be identified under the national DWSS
programme.
4.5.2 The project could also face delays in implementation start-up. To mitigate this risk, it
was agreed during the appraisal mission to: (i) discuss the following documents during
negotiations: the curricula vitae of project focal points at the DE and ONEAD; review the terms
of reference for the services of the consulting engineer in charge of studies, works supervision
and IEC; the terms of reference of the expert in charge of procurement, administrative and
financial framework and accounting; technical specifications for the procurements of various
items (scientific and technical equipment, information technology and office automation
equipment); and (ii) mobilize authorities and beneficiaries in the three regions for in-depth
consultations. The Bank has already provided documents defining rules and procedures for the
procurement of goods and works and the use of consultants and the bidding template, all of which
are necessary for the preparation and award of the procurement contracts provided for in the
project.
4.6 Knowledge Building
4.6.1 Project implementation will allow the Water Directorate to control the design,
implementation and management of DWSS projects in rural areas. The involvement of local
entities and beneficiary populations will help ensure the choice of appropriate sites for water
points and technical solutions adapted to the context, without losing sight of the environmental,
15
financial and socio-economic aspects. The inclusion of provisions on knowledge transfer in the
technical specifications of bidding documents will help develop the capacity of DE and ONEAD
managers.
4.6.2 The project will enhance knowledge of the state of water resources, the influence of climate
change on these resources and the potential for their renewal to allow for optimum utilization.
Developing water conservation and management skills by setting up, organizing and training Water
Management Committees and expanding the network of civil society organizations working to protect
the environment will help increase the level of participation of the community (men and women
alike).
4.6.3 The overall approach envisaged in the construction of latrines will make it possible to
measure the effectiveness of the sensitization method used and its outcomes will serve as a
benchmark for future operations. This knowledge will be systematically captured and recorded in
the monitoring and evaluation reports of supervision missions and the periodic reports that will be
shared at Government and Bank levels. During the mid-term project review, the partial results
and lessons learnt from these findings will be disseminated by the project team, implementing
partners and beneficiaries. Finally, the knowledge gained will also be reflected in the Bank’s
project completion report and entered into MAPERH’s database.
V. LEGAL FRAMEWORK
5.1 Legal Instrument
The Republic of Djibouti will be awarded an ADF grant and an RWSSI grant to fund this project.
5.2 Conditions related to Bank intervention
A. Conditions precedent to grant effectiveness
5.2.1 The Grant Agreements will become effective once they are signed.
B. Conditions precedent to the first disbursement of the ADF and RWSSI grant resources
5.2.2 The Fund will proceed with the first disbursement of the grant resources only after the
Donee, in addition to the effectiveness of Grant Agreements, has met the following conditions
and commitments to the Fund’s satisfaction:
(i) Provide ADF with evidence of the opening of an ADF grant special account on
behalf of the project in a bank acceptable to the Fund, to receive the grant
resources and evidence of the opening of a bank account to receive the
Government’s contribution.
C. Other Conditions: The Donee shall, in addition:
(i) Forward to the ADF for approval no later than six months following the signing of
Grant Agreements, the procedures manual on implementation and administrative,
16
financial and accounting management of the project, including the procurement
process;
(ii) Provide the ADF with evidence of competitive recruitment of the Administrative
and Financial Manager, Accountant and Procurement Expert within three months
of the signing of Grant Agreements;
(iii) Provide the ADF with evidence of establishment of the Steering Committee and
appointment of its members no later than six (6) months after the signing of Grant
Agreements
D. Commitment: The Donee undertakes to implement the Environmental and Social.
Management Plan
5.3 Compliance with Bank Policies
The project is consistent with all applicable Bank rules.
VI. RECOMMENDATION
Management recommends that the Boards of Directors approve the proposal to award an ADF
grant of UA 3.50 million and RWSSI grant of Eur 3.00 million to the Government of the
Republic of Djibouti to finance the project according to the conditions set out in this report.
APPENDIX I
COMPARATIVE SOCIOECONOMIC INDICATORS
1990 2011 *
EN.LND.TOTLArea ( '000 Km²) 30 323 98 461
SP.POP.TOTLTotal Population (millions) 0,6 0,9 1 044,3 5 733,7
SP.POP.GROWPopulation growth (annual %) 5,0 1,9 2,3 1,3
SP.DYN.LE00.INLife expectancy at birth, total (years) 51,4 57,9 57,7 77,7
SP.DYN.IMRT.INMortality rate, infant (per 1,000 live births) 113,1 77,0 76,0 44,7
SH.MED.PHYS.ZSPhysicians per 100,000 People 16,2 22,9 57,8 112,0
SH.STA.BRTC.ZSBirths attended by skilled health staff (% of total) ... 92,9 53,7 65,3
SH.IMM.MEASImmunization, measles (% of children ages 12-23 months) 85,0 85,0 78,5 84,3
SE.PRM.ENRRSchool enrollment, primary (% gross) 35,6 59,1 101,4 107,8
SE.ENR.PRIM.FM.ZSRatio of girls to boys in primary education (%) 73,4 90,2 88,6 ...
SE.ADT.LITR.ZSLiteracy rate, adult total (% of people ages 15 and above) ... ... 67,0 80,3
SH.H2O.SAFE.TO.ZSAccess to Safe Water (% of Population) 78,0 88,0 65,7 86,3
SH.STA.ACSNAccess to Sanitation (% of Population) 66,0 50,0 39,8 56,1
SP.DYN.HDIVHuman Develop. (HDI) (0 to 1) 0,4 0,4 0,5 ...
SP.DYN.HPIVHuman Poverty Index (% of Population) ... 25,6 33,9 ...
Economy 2000 2009 2010 2011
NY.GNP.PCAP.CDGNI per capita, Atlas method (current US$) 750 1 270 1 311 ...
NY.GDP.MKTP.CDGDP (current Million US$) 556 1 016 983 1 244
NY.GDP.MKTP.KD.ZGGDP growth (annual %) 0,4 5,0 3,5 3,5
NY.GDP.PCAP.KD.ZGPer capita GDP growth (annual %) -2,3 3,0 1,6 1,6
NE.GDI.TOTL.ZSGross Domestic Investment (% of GDP) 8,8 17,7 17,2 17,2
FP.CPI.TOTL.ZGInflation (annual %) 1,6 1,7 4,0 5,1
GC.BAL.CASH.GD.ZSBudget surplus/deficit (% of GDP) -1,8 -4,7 -0,6 -0,5
Trade, External Debt & Financial Flows 2000 2009 2010 2011
TG.WEO.TXG_R.ZGExport Growth, volume (%) 12,7 2,7 2,8 49,8
TG.WEO.TMG_R.ZGImport Growth, volume (%) 4,4 -28,3 -18,0 37,2
TG.WEO.TTT.ZGTerms of Trade (% change from previous year) 0,0 0,0 3,3 -21,6
BG.TBL.MRCH.CDTrade Balance ( mn US$) -175 -373 -283 -414
BG.WEO.ADB.TBL.MRCH.GDP.ZSTrade balance (% of GDP) -31,5 -36,7 -28,8 -33,3
BG.CAB.CD Current Account ( mn US$) -27 -95 -54 -86
BG.WEO.ADB.CAB.GDP.ZSCurrent Account (% of GDP) -4,8 -9,4 -5,5 -6,9
DT.WEO.TDS.PAI.EXP.ZSDebt Service (% of Exports) 7,6 7,3 9,0 8,0
DT.WEO.ADB.DOD.GDP.ZSExternal Debt (% of GDP) 52,0 61,7 64,4 52,1
DC.DAC.NTF.CDNet Total Inflows ( mn US$) 92 333 106 ...
DC.DAC.ODA.CDNet Total Official Development Assistance (mn US$) 72 167 132 ...
DC.UNC.PVF.FDI.CDForeign Direct Investment Inflows (mn US$) 3 100 27 ...
FI.RES.TOTL.MO External reserves (in month of imports) 2,3 3,2 3,9 ...
Private Sector Development & Infrastructure 2000 2009 2010 2011
PS.DB.SB.DAYTime required to start a business (days) ... 37 37 37
PS.DB.PI.IPI.INInvestor Protection Index (0-10) ... 2,3 2,3 2,3
IT.MLT.MAIN.P3Main Telephone Lines (per 1000 people) 13,3 19,3 20,8 ...
IT.CEL.SETS.P3Mobile Cellular Subscribers (per 1000 people) 0,3 147,7 186,4 ...
IT.NET.USER.P3Internet users (000) 1,9 39,6 64,3 ...
IS.ROD.PAVE.ZSRoads, paved (% of total roads) 45,0 ... ... ...
IS.RRS.GOOD.MT.K6Railways, goods transported (million ton-km) ... ... ... ...
* Most recent year Last Update: May 2012
Djibouti - Development Indicators
Developing
countries
Source: ADB Statistics Department, based on various national and international sources
DjiboutiAfricaSocial Indicators
23
Djibouti
APPENDIX II
TABLE OF ADB PORTFOLIO IN DJIBOUTI
Project Name Loan No. Date of
Approval
Date of
Signature
Date of
Effectivene
ss.
Closing
Date
Net Amount
in Loan
currency
(000)
Net Amount
(000 UAC)
Social sector 11.620
EDUCATION PROJECT III ** 2100150007897 14-Jul-04 28/09/2004 07/08/2006 30/12/2012 UAC 4.630 4.630
EDUCATION PROJECT III ** 2100155002671 14-Jul-04 28/09/2004 07/08/2006 30/12/2012 UAC 370 370
POVERTY REDUCTION PROJECT II **
2100155013273 17-Oct-08 13/11/2008 05/08/2009 30/06/2014 UAC 5.820 5.820
POVERTY REDUCTION
PROJECT II** 2100155019717 31-Jan-11 19/03/2011 11/01/2012 31/12/2013 UAC 800 800
Water and Sanitation sector
8.150
DJIBOUTI CITY SANITATION
PROJECT** 2100155010868 18-Dec-07 04/02/2008 07/04/2008 31/12/2012 UAC 6.500 6.500
SURFACE WATER HARESTING (AWF)
5600155001001 29-Jan-08 04/02/2008 13/05/2008 30/12/2012 Eur 1.937 1.650
Private sector
58.556
DORALEH CONTAINER
TERMINAL 2000120001819 24-Sep-08 15/11/2009 15/12/2009 16/12/2009 USD 79.343 52.002
DJIBOUTI BULK TERMINAL
PROJECT 2000120000115 3-Dec-03 11/06/2006 23/11/2006 11/06/2008 USD 10.000 6.554
Emergency relief assistance
grants
655
EMERGENCY AID TO
DROUGHT VICTIMS 5000199002518 14/11/2011 16/05/2012 31/03/2013 USD 1.000 655
TOTAL ADF** 18.120
APPENDIX III
KEY RELATED PROJECTS FINANCED BY THE BANK AND OTHER
DEVELOPMENT PARTNERS
PROJETCS COSTS PERIOD DONORS
Rehabilitation of the Djibouti City DWS
infrastructure
USD 25.0 million 2011-2013 AFESD
Rehabilitation of water and sanitation in the 4th
district
Eur 5.0 million 2008-2010 ADF
Sanitation and Solid Waste Management Investment
Programme
Eur 15.5 million 2011-2013 ADF
Djibouti City Sanitation Project UA 20.96 million 2010-2012 ADB/EE Project for the adaptation of rural communities in the
Ali Sabieh region to climate change
USD 1.00 million 2012-2013 UNDP
Rehabilitation of water points and construction of
water tanks
USD 0.85 million 2011 FAO
Surface Water Harvesting and Land Management
Project
USD 11.637 million 2010-2015 IFAD/GEF/UNDP
Construction of the Sadai dam USD 1.500 million 2012-2013 SAUDI
ARABIA
APPENDIX IV
PROJECT AREA
TADJOURA
ARTA
ALI SABIEH