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Transcript of WORLD HEALTH ORGANIZATION › bitstream › handle › 10665.1 › 5610 › 198111… · The views...
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WORLD HEALTH ORGANIZATION
We.tern Pacific Rqlona' Centre lor the Promotion 01 Invlronmenta' Plannlnl and Applied Studl •• (PEPAS)
• ORGANISATION MONDIALE DE LA SANTE
Centre r'liona' du Pacifique occidental pour 'a promotion de 'a p'anilicalion el d.. 'tud.. appliqu'.' en matiire d·environne ... ent (PEPAS)
Unive,sitl Perlanian Campus. S.rdanl. Se'an,o,. Mala,.la
REPORT ON
WBOjPIPAS REGIONAL WORKSHOP ON FINANCIAL AND BCONOMIC ASPBCTS
OF NATIONAL WATER SUPPLY AND SANITATION PLANNING
FOR THE INTBRNATIONAL WATER DBCADB
KUALA LUMPUR, IlALAYSIA
2 - 13 NOVBMBBR 1981
DBCBIIIBBR 1981
Malllnl Addr ... : c/o P.O. lox 2110 Kua'a Lumpur, Ma,a,.la
Tel. No •• : 311101 351304 355421 .x'. tot
T.I •• r ........ : UNIIANTI KUALALUM'UR
Tel •• No.: 310t4
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The views expressed in this report are those of the persons who participated in the workshop and do not necessarily reflect the policies of the World Health Organization •
This report has been prepared by the Western Pacific Regional Centre for the PTOBOtion of Inviron.ental Planning and Applied Studies (PEPAS) for Gover08eDts of WHO ~ber States in the Western Pacific Region and the South last Aaia Relion and for those who participated in the WHO Western Pacific Regional Workshop on Financial and Economic Aspects of National Water Supply and Sanitation Planning for the International Water Decade which was held in Kuala Lumpur, Malaysia from 2 to 13 November 1981.
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CONTENTS
Paae
INTRODUCTION •••••••••••••••••••••••••••••••••••••••••••••••••• fi.
OPERlNG CEREMONY ............................................... 1
WORKSHOP SESSIONS .............................................. 1
ANNEXES 11
" Annex 1: List·of participants. observers. lecturers and facilitator •••••••••••••••••••••••••••••••••••••••••• 2
Annex 1: Welcome address ...................................... 7
ADDex 3: List,of lectures ..................................... 9
Annex 4: Report of solutions prepared by work8hop Iroups ...... 10
Trend seenario .....•••......•.••.•••.•.•............. 16
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IN'l'RODUCTION
The WHO Regional Workshop on Financial and Economic Aspects of Mational Water Supply and Sanitation Planning for the International Water Decade was held in Kuala Lumpur, Malaysia, from 2 to 13 November 1981. It was attended by 20 participants from 15 countries in the WHO Western Pac~fic and South-East Asian Regions. Observers from international agencies also attended. A list of participants, observers, lecturers and facilitators is given in Annex 1.
The main objectives of the workshop were:
1) to improve understanding of the economic and financial aspects of Decade programmes and projects, and how to apply these principles.to national efforts;
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to understand the concept and limitations of cost/benefit analysis as applied to water and sanitation projects and how to apply thele methods to national effortl;
to improve perception of the planning processes and issues involved in water projects and understanding of plan making.
OPENING CEREMONY
A welcome address was delivered by Mr Frank C. Go, Director, PEPAS, on behalf of Dr Hiroshi Nakajima, Regional Director of the WHO Regional Office for the Western Pacific. The subject of this workshop was chosen, he explained, because WHO v~ewed it as an area which could contribute to the efforts being made by national governments and the international community in pursuance of the goal of the International Drinking Water Supply and Sanitation Decade. The full text of the opening address is given in Annex 2. Profeasor Ariffin Suhaimi, Dean, Faculty of Science and Environmental Studies officially declared the workshop open.
WORKSHOP SESSIONS
Time was spent during the workshop on both lectures and working group sessions. The main working document used in the workshop was "Repub lic of Terrania: A Case Study". It is a case study on the economic and financial aspects of programmes and projects in the International Drinking Water Supply and Sanitation Decade, prepared by the World Bank Cooperative Programme and the World Health Organization. The lectures listed in Annex 3 were presented as material complementary to the working document. After each lecture the participants were led by a facilitator to work on the solutions to specific ease study problems related to that lecture. The solutions were then discussed in plenary sessions.
Solutions prepared by each working group were prepared in t'he form of a report and presented to the workshop on the final day. This report is attached as Annex 4.
. Annex 1
List of participants, obs·ervers. lecturers and facilitators
Couatry .
Bana lade sh
China.
Cook Islands
Fiji
Mr M. A. ~ri. Deputy Secretary
Participants
Ministry of Local Govera.ent, Rural Develo,.ent and Cooperatives
Dacca Bana1adesh
Nr Mo .... l Husain 'Additional Chief Enaineer Public Bnaineerina Depart.ent Dacca Banaladesh
Dr au Qiain Medicai.Officer Office of Central Patriotic Health Campaign Committee Patriotic Health Caapaign Office 44, Hou Hai lei Yen Beijina ChiDa
Dr ltoekoe J. Makotupu Director of Public Health Health 'Department POBox 382 Rarotoya Cook Islands
Mr Ramaiya Naidu Deputy Secretary for· Works Minis try of Works Canilau Bouse Suva Fiji Islands
Nr BendroprabOto Suse10 Head of P1annina'Division C1P'fA KAllYA Ministry of Public Works Ja1an PattLaura 20 Kebayoran Ban Jakarta Indonesia
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Malaysia
Nepal
New Zealand
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Mr Soeratno Notodipuro Head of Sub-Directorate of Planning CIPTA KARYA Ministry of Public Works Jalan Pattimura 20 Kebayoran Baru Jakarta Indonesia
Mrs Rosmah bte Rj. Jentra Economic Planning Unit Prime Minister's Department Jalan Dato' Onn Kuala Lumpur Malaysia
Mr Yeap Nam Weng Assistant Director Water Supply Division Public Works Department Headquarters Jalan Mahameru Kuala Lumpur Malaysia
Mr Dev Bahahur Rayamajhi Chie f Engineer Department of Water Supply and Sewerage Ministry of Water Resources 15/33 Paknojol Kathmandu Nepal
Mr Santa Behadur Ra i Additional Secretary Ministry of Panchayat and Local Government Sharee Kahal Pulchok Lalitpur Nepal
Mr Subarna Jung Rana Joint Secretary Ministry of Water Resources labar Nahal Kathmandu Nepal
Mr Jonathan Fletcher Public Health Engineer Ministry of Works and Development Wellington New Zealand
Papua New Guinea
Republic of Korea
Sri Lanka
Thailand
Tonga
VietllUl
Western Samoa
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Dr Daniel Raho Johns Assistant Secretary, Training of Health Personnel Department of Heal th POBox 2084 Konedobu Port Moresby Papua New Guinea
Mr Hong ParCii Section Chief Water Works Planning Division The Bureau of Water Supply and Sewerage Ministry of Construction 28 Jung-Dong Jung-ku Seoul Republic of Korea
Mr Sellathurai Sivanathan Assistant General Manager Project Section National Water Supply and Drainage Board llatlUllana 2SA, Cambridge Terrace ColOlllbo 7 Sri Lanka
Miss Nipa·Krupaisarn Planning and Policy Analyst Infrastructure Project Division National Economic & Social Development Banffok 'lb81land
Mr Filipe Fatongia Koloi Water Supply Engineer Tonga Water Board POBox 92 Nukualofa Tonga
Dr Hoang Dinh Hoi Medical Officer Ministry of Heal th 13eA Giang Vo Street Hanoi Vietnam
Mr Luaiufi Tone Director Public Works Prime Minister's Department POBox 93 Apia Western Samoa
Board
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Observers
IBRD
UNICEF
UNDP
Malaysia
Lecturers/Facilitators
Mr D. Steele
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Mr M.S. Nanjundiah Financial Adviser Water & Sanitation Sector International Bank for Reconstruction and Development 1818 H Street, N.W. Washington DC 20433 U.S.A.
Mr M. Bevacqua Senior Programme Officer Chief, Water and Environmental Sanitation Section UNICEF UNICEF House 73, Lod i Estate New Delhi 110003 India
Mr M. Akhter Programme Coordinator UNICEF Jalan M.R. Thamrin 14 Tromol Pos 202/JKT Jakarta Indonesia
Nr P. Luttik United Nations Development Programme Blocks K-9 & 10 Government Offiees Complex Jalan Duta Kuala Lumpur Malaysia
Nr A. Sekarajasekaran Director of Engineering Services Ministry of Health Jalan Cenderasari Kuala Lumpur Malaysia
Economist/Financial Analyst Environmental Health Division WHO Headquarters Avenue Appia 1211 Geneva 27 Swit:terland
Mr M.S. Nanjundiah
Mr Frank C. Go
Dr A. Rivera-Cordero
Dr M. Nakamura.
Mr J. Bradbury (Facilitator only)
Guest Speaker
Mr Chan Boon Teik
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Financial Adviser Water and Sanitation Sector International Bank for Reconstruction and
Development 1818 H Street, N.W. WaShington D.C. 20433 U.S.A.
Director, PEPAS WHO Western Pacific Regional Centre for the
Promotion of Environmental Planning and Applied Studies (PEPAS)
POBox 2550 Kuala Lumpur Malaysia
Environmental Planner WHO Western Pacific Regional Centre for the
Promotion of Environmental Planning and Applied Studies (PEPAS)
POBox 2550 Kuala Lumpur Malaysia
Environmental Systems Engineer WHO Western Pacific Regional Centre for the
Promotion of Environmental Planning and Applied Studies (PEPAS)
p () Box 2550 Kuala Lumpur Malaysia
WHO Sanitary Engineer c/o Ministry of Health Jalan Cenderasari Kuala Lumpur Malaysia
Director of Water Supplies Public Works Department Readquat'ters Ministry of Works & Public Utilities Jalan Mahameru Kuala Lumpur Malaysia
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Annex 2
Welc01lle address
by Fnnk C. Go Director, PEPAS
It is a pTivilege for me to address this Workshop on behalf of Dr Hiroshi Nakajima, Regional Director of the WHO Regional Office for the Western Pacific, and it is also a great plea.ure to welcome all of you on this occasion.
A prime objective of WHO in establishing PEPAS was -to -support the development of national environmental policies and planning capabilities. This Workshop represents one of the activities of the ~ntre in fulfilment of this objective.
The subject of this Workshop was chosen because we viewed- it as an area which can-contribute to the efforts being made by national governments and the international community in pursuance of the goal of the International Drinking Water Supply and Sanitation Decade •
Although it is difficult to estimate with any precision the seale of investment needed to attain the Water Decade goal., there is consensus that the required level i. far beyond the existing or potential capacity of many developing countries. As a consequence, the United Nations Water Conference at Mar Del Plata particularly emphasized the need to develop additional financial resources to be provided from bilateral and multilateral programmes. However, Governments on their part can significantly increale the effectivenels of national water programmes by better-conceived projects and sounder policy.
We believe also that improved planning and the attainment of more efficient and economical water supply and sanitation projects will naturally lead to an increase, in the course of time, in the allocation of national resources to these programmes.
There are generally wider social and economic i •• ues involved in the selection and design of water projects, and it is es_sential that decis10n makers should be informed of these issues, in addition to the purely financial ones. Economic theories provide a framework for ordering of information and guiding decision~aking.
Are the goals of the Water Decade attainable? On this point the report on "Community Water Supply and Sanitation - Strategies for Development", prepared by WHO and the World Bank for the Water Conference had this to say:
"The achievement of the Habitat targets will require reordering of priorities in favour of the sectors of community water supply and sanitation, and within these sectors in favour of rural populations and the poor in urban fringe areas. The conditions, constraints, financial- circumstances and priorities for action vary between and even within regions, but there is clear evidence of an increasing resolve on the part of the governments of all developing countries throughout the world, as well as international and bilateral aid agencies, to effect a radical improvement in acce-ss to water supply and sanitation facilities."
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No one can say whether the goals of the Water Decade will be attained, but one imperative if ve are to attempt this task is that the countries must have a greatly increased institutional and technical capacity to plan and execute vater and sanitation programmes. I hope that this Workshop will contribute to this end. It has been noted by some that the ultimate obstacle to the achievement of the Decade's goal may not be financial but technical manpower capacity.
The other issue that needs to be addressed in any effort on the scale implied by the Decade is national priorities. Although economic and social welfare theories abound. none provides concrete guidance at the strategic level where decisions are made on national budget allocation. It has been suggested by some that water supply and sanitation can be justified on the fundamental "basic need" argument. This line of approach is, however, also fraught vith conceptual problems since there are many other basic needs, and national resources may not be equal to them and the "need" for development. In the final analysis, I believe that the case viii be won only by a higher perception of the value of good health and through experience of more cost effective vater and sanitation projects.
This Workshop should provide you with the opportunity to exchange views on these and many other issues related to water and sanitation planning.
We, in WHQ, realise that without the attainment of the goals of the International Drinking Water Supply and Sanitation Decade, the even bigger goal of the international health community, namely, to achieve health for all by the year 2000, vill be but a dream.
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Annex 3
List of lectures
A. Lecture 1: "Distinction, Definitions and Background" ... Mr D. Steele
2 November
B. Lecture 2: "Sector and Planning Studies" Dr A. Rivera-Cordero
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Lecture 3: "Programme and Project Preparation for the Water arid Sanitation Decade"
Mr D. Steele 4 November
Lecture 4: "Time Value of Money" Dr M. Nakamura 5 November
E. Lecture 5: '~ethods of Financial Analysis of Water and Sewerage Projects"
Mr M.S. Nanjundiah 6 November
F. Lecture 6: "Recommending Tariffs for Water and Sanitation Services" Dr A. Rivera-Cordero
G.
9 November
Lecture 7: "Appraisal of Projects, Benefit/Cost Analysis and Community Choice"
Mr F. C. Go 11 November
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Annex 4
Report of solutions prepared by working grou9s
Report on problem 1
Investment requirements to produce nation-wide cove~age for water and sanitation decade (1979 - 1990), Programme of the Republic of Terrania.
A draft report prepared by the Group No. 1 planners for the National Action Committee of the Republic of Terrania, Nov. 1981.
A. Trend scenario
In order to get required technical information a series of questions were analysed and put into scenario in sequential orders. At first, taking 1979 as the baseline year (inclusive of 1979 data as the bench mark) the ~ current percentages of coverage for water supply and sanitation in both rural and urban areas have been calculated as:
Table A-I
Area Water Supply Sanitation
Urban 1.05 mil 0.99 mil Rural 1.70 mil Not known (M.A.)
Urban sanitation coverage includes approved as well 8S septir.-tank and pit latrine systems. The data on rural sanitatiof\ ... ere not ~vs: l.'lble.
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Secondly, considering the 100% coverage to b~ m~de by the end of ch~ • Decade the back-log to be covered per annum bad" has beer. dete::.tr:d CA' 2; as:
Area
Urban Rural
Table A-2
Water Supply Sa I
nitation i 0.04 mil 0.62 mil
O. -05 mil l M.A.) I ~-( I ----_.
In the third scer.ario, the increment in pnpulation pP.T ;:,.nnure "ver the period of Decade has been ~alculited as:
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Table A-3
Area Water Supply Sanitation
Urban 0.09 mil 0.09 mil Rural 0.18 mil (N.A.)
In the fourth series of scenario, taking the existing national unit costs for urban and rural areas, an overall requirement of sector investment, assuming 100% coverage for the decade, has beencaloulated as:
Table A-4
Area Water Supply Sanitation
Urban $157,300,000 $308,000,000 Rural $396,000,000 $ 36,000,000 + p.m-.*
Total $553,300,000 $344,000,000 + p.m. ---_.--.- ---=-.~-.. -.... ~ .................. --.... Total investment for the Decade on the sector • $897,300,000 + p.m.
In the fifth scenario, an analysis has been made taking the same ratio of sector investment to total public investment (at 1979 prices, growth rates same as for GOP), in 1985 and 1990, as in 1979 and compared the investment requirement for the Decade. The GOP in 1979 is $2,040,000,000 and assuming a constant increase of 4% annual growth the GOP accumulated during the decade should be extrapolated as $27,510,000,000. The investment in water supply and sanitation in 1979 is $11,400,000 which is 0.54% of the total public investment. Taking the investment ratio as such will become $149,000,000 in the decade (1979-90) which does not come close to Decade investment ($897 mil) requirement.
B. Policy options
Having found out that the Decade investment requirement in the water supply and sanitation sector is a huge amount as compared to the expected allocation, the planners come forward with the following drastic options to be considered seriously.
B-1: Changes in design criteria
Overall public investment impact in the water supply and sanitation sector, if the following changes in the policy are made:
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a) changing the proportion of urban-stand pipes and house connections
i) Present standard unit cost for urban water supply is $110 per capita
Assume 50% for production of wate." 50% for water distribution
$55 per capita '"' S55 per capita
ii) Present standard • 50% public standpipes (p.s.) and 50% house connections (h.c.)
Assume unit cost of house connection = 1/3 unit cost of public standpipe
Then : 1/2 x X + 1/2 x 1/3 X • 55
1/2 X + 1/6 X-55
2/3 X • 55 X • 81
So Unit cost for p.s. = 81 Unit cost for h.c. ~ 21
iii} 'Assume: - change to 75% p.s. and 25% h.c. - p.s. serve 200 people - h.c. serve 10 people
We can calculate cost reduction in distribution as follows:
- Pop : 130,000 (annual)
50:50 p.s. •
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65000 200
65000 10
x 81 = $26.325
x 21 .. 1;115,500
Total· 201.825 = $200,000
- 15:25 p.s.
h.c.
Total •
- Cost reduction
97000 x 81 .. $39,447 200
32500 x 21 .. $81,750 10
127.197 .. $127,000
200 - 127 200
x 100% = -11- x 100% = 36% 20e
- Unit cost for distribution reduced to $55 - 36% x $55 • $35 per c3?ita
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iv) Unit cost reduction assumed the same for production and distribution. so total unit cost for urban water supply can be reduced to $70 per capita.
v) Investment in urban water supply can then be reduced to:
0.13 a x 11 x $70 s $100,000,000
b) Changing the urban sanitation technology from sewered to non-sewered systems.
i) Assuming combination of improved pit latrines and some limited septic tank, an estimate of usiso per capita cost is used in the calculation.
ii) Investment in urban sanitation can then be reduced to 0.14 m x 11 x $50 • $77,000,000
c) Changing the rural water supply systems within the set hydrological limits given in the situation analysis:
i) Using least cost technology mix for rural water supply, the unit cost per capita for rural water supply can be reduced .to
226,4 m • $26 8.S m
ii) The investment in rural water supply can be reduced to • 0.8 m xlIx $26 • $228,800,000
d) Increasing distance walked to water sources
This option has not been taken into account since the opeion will reduce mainly the cost of boreholes, surface pumped and surface gravity system, while in the choice of least cost technology for rural water supply more shallow wells are preferred in the programmes.
Conclusion: Total investment will be reduced by taking policy options B I to:
Urban water supply Rural water supply Urban sanitation Rural sanitation
$100,000,000 $228,800,000 $ 77,000,000 $ 36,000,000 + p.m.
~4l,000,OOO + p.m • • ====.=~== •• =. __ :#a
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B-2. If w/S public investment rose to 6% overall public investment in 1979, then:
w/s public investment • 6% x ~3oo million· $18 million
W/S public investment/GDP 1979 • ~2~~~~0~ x 100 % = 0.9%
If the same rate of investment were maintained throughout the Decade, then the resources which may be anticipated over the Decade for the w/s sector is = 0.9% x ~27,5l0,OOO,OOO • 5249,000,000.
This is still below the investment needed to achieve the decade target if 100% coverage is aimed for.
B-3. Possible adjustment in coverage:
assume a 60% of additional population increase and backlog in both urban and rural water supply and sanitation
then investment need for the Decade can be reduced to: (60% x $441,800,000 + p.m.) • $265,000,000 + p.m. which is closer to the resources anticipated
For decade planning purposes the above target setting can be accepted with the following remarks:
a) The population coverage at the end of the decade would be as indicated in the following Tables A and B.
Table A
Comparable statistics of decade coverage
1979 1990
Water Supply Pop. Covered by Pop. Covered by
(mi 1) water supply % (mil) water supply % (mil) (mil)
Urban 1.5 1.05 70 2.5 1.92 71
Rural 8.5 1.70 20 10.5 6.98 66
Total 10.0 2.75 27.5 13.0 8.90 68
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Table B
Comparable statistics of decade coverage
1979 1990
Sanitation
b)
Pop. Covered by Pop. Covered by <mi 1) sanitation % <mil> sanitation %
(mil)
Urban 1.5 0.99 mil 66 2.5 1.9 76
Rural 8.5 n.a . n.a. 10.5 1.2 + p.m. 10 + p.m.
It is assumed that government will provide sufficient funds for subsidy for operation and maintenance expenses for both existing and new investments in WIS, which should be covered under the regular budget (not from the capital investment budget).
c) The ~ost should still be reduced through increased promotion of self-help and community participation in the urban as well as in the rural areas, and appropriate amount of budget should be allocated through the Ministry of Social Services and Community Development and other agencies as appropriate in order to support the Decade plan. This community participation promotion, and other supporting programmes budgets such as for training, management assistance, information exchange, monitoring, planning, etc. have not been included in the above calculation of investment. ----
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Trend sc:enario
A-t" rT(:l!encly "'ccv<!red":
~~"'€.l supt.l::; " ulhan = 70% x 1.5 m = 1.05 III
rural = 20% x 8.5 m = 1.70 m
Remarks:
~ urban = (70% x 1.2 m) + (50% x 0.3 m)
.. 0.84 m + 0.15 m
= 0.99 m
rural • not known
The figures given are based on 1979 data. No extrapolation has been made to 1981 sinc:e it will make no difference for the purpose of analysing investment needed for the Decade
A-2: Bac:klog to be c:overed per annum over the Decade:
Water Supply = urban·
rural •
Sanitation .. 'lrban =
1.5 - 1.05 11
8.5 - 1.70 11
1.5 - 0.99 11
rural • not known
m .. 0.04 m
m • 0.62 m
m - 0.05 ID
A-3: Urban and rural population inc:rease per annum to be c:overed over the Decade:
Wat'!!r St.pply .. urban •
rural •
Sanitation .. urban ..
2.5 - 1.5 11
10.5 - 8.5 11
2.5 - 1.5 11
rural • not known
m • 0.09 m
ID • 0.18 m
ID .. 0.09 m
Re\1I.?!'!'s to No.2 and 3: Estimates are assumed average equally per annum, and ~ on a gradual increase basis.
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over the Decade
Water Supply • urban" (0.04 + 0.09) m x SIlO x 11
.. $157,300,000
rural - (0.62 x 0.18) m x $45 x 11
- $396,000,000
Total for urban and rural • $553,300,000
Sanitation • urban = (0.05 + 0.09) m x $200 x 11
- $300,000,000
rural· (2 m x 18) + p.m.
= $36,000,000 + p.m •
Total for urban and rural" $897,300,000 + p.m.
Remarks:
a) The unit cost for urban sanitation is assumed at $200 per capita consisting of mixed sewerage and septic tank systems, and no pit latrines as the most appropriate ideal standard of service~o be provided in the urban areas.
b) For rural sanitation a unit cost of US$18 is taken, a.suming the limit of unit cost per capita in Ra1ive District project can be applied.
A-5: GOP 1979· $204 x 10 m .. $204,000,000 1990 • $27,510,000,000 - (extrapolated assuming constant
increase of 4% annually in 11 years)
Investment in water supply and sanitation sector:
1979 • $11,400,000 .. 0.54 % GDP 1990 • 0.54% x $27,410,000,000 .. $149,000,000
Thus, if investment in the sector would remain the same as in 1979, the expected allocation for the sector would be far below the needed investment over the Decade.
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Report on problem 2
Minutes of tne first meeting of the NWA Planning Team
T ... prepare t'"e NWl\ .. ubmission on the Kal ive pro.)ject to be forwarded t<> an inter-departmental planning meeting.
Toe m.::eting had b..,fore i, die consultant's report on the Kalive District scheme and th~s WaS used as a basis for distussion of the water supply programme. Ibe meeting then proceeded to consider sanitation requirements, training and educational needs and other sector inputs.
WATER SUPPLY
In order to achieve maximum coverage in the next four-year period and also to ensure that costs are kept as low as practicable it is proposed that the rural parts of the water supply scheme be bas~d on construction by village labour with skilled supervision and all components supplied by the NWA. Priority should be given to the more densely populated rural areas.
Concurrent with the rural system installation, the urban schemes should be proceeded with as fast as possible - the aim being to have the main urban ar~as mainly reticulated within the next two years. This will not only provide coverage of a large sector of the community at an early date but will also provide the NWA with a revenue earning base.
In both rural and urban areas piped water supplies should be provided wherever possible (the final mix of piped to non-piped supplies is likely to be very close to that shown in Table 9 of the consultant's report). It is envisaged that piped water supplies will be revenue producing with users of house connections paying on a metered rate for the water used and all households within 'range' of a standpipe being levied on an annual basis, this levy to be collected by the community's water committee. In urban areas these revenues are anticipated to show a fair return on the investment made (and thus provide monies for further programmes) but in the rural areas it is recognized that revenues are likely to do little more than provice ior operating and maintenance costs (acceptin~ that households should not be expected to pay more than 5.0% of their cash income for water.) - although this may change in areas where garden and cattle development programmes (see below) are successful.
SANITATION
A comprehensive san:i.tatil)r> programme is regarded as essential and it is proposed that this .. itl b", based on the use of in:provec pit latrines end pOUT flu~h lecrtn~s (the latter mainly serving households with house connections). In additiv~. th~ main urban areas of the towns will require a 'grey water' drainage system. The sanitation project will also be on a 'self help' basis with the impl~menting agency (the Minisery of Health) providing the skillec $upervision and the necessary health education prol!(rammes and the vi·1lagers doing the actual construct10n. Supply and deliw,ry of the compcneni:s :.or.a Mstedals (on behalf of the }hnistry of l\~alth) ,-i;} ::", "!.i"',·r,!I(~[1 l,y ~\.e Ni';A.
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Construction of the sanitation facilities should be phased with the water supply programme 80 that village latrines are dug either at the same time as the water supply is installed or at least immediately afterwards.
The 'grey water' drainage system will be built and operated by the NWA which would set urban water charges to include the cost of the drainage sys&e\n.
OTHER COMPONENTS
In order to get the maximum benefit from the water supply and sanitation programme other components will have to be included in the total package. The project planners recommend the following:
A major health education programme: without such a programme most of the health benefits that can flow from improved water supplies and sanitation will not be achieved. The proposed programme has four major areas of activity:
a) a schools programme: concentrating initially on training teachers and primary students and moving later into the secondary schools;
b) the expansion of the existing establishment of village health centres and dispensaries - these should increase their efforts (with increased staff) in the field of child immunization, maternal and child health and teaching of basic home economics;
c) village health committees: these should be set up in all villages as part of the preparatory work for the installation of the water supply. Initially, they will be involved with the planning and organizing of the water supply construction but should continue to oversee the village side of the operations and maintenance and it is hoped that they will also develop into the nucleus of village committees for health education;
d) mass media: for the initial Kalive project resources should be eoncentrated on 'pilot' use of simple pamphlets, audio-visual presentations and local newspaper articles - when the project is expanded to cover the whole country, extensive use should be made of radio and the national newspapers.
2. Water quality monitoring: a pilot programme of water quality monitoring using suitably trained personnel and a mobile water quality laboratory should be undertaken in Kalive district. Eventually when the national programme gets underway it is envisaged that three mobil~ water quality teams will be required - one based in each region. ,.
Responsibility for both the health education and the water quality monitoring programmes will rest with the Ministry of Health.
3. Training: in addition to the training needs of the health education programme which can be met by an expansion of existing training programmes, training will have to be undertaken in four new areas:
I
' ... ' .. '
, .,' ; ..... j ~. • •
.. ' • 1." f.:!'. :~;:'.' !"·~:~.r'J;·. '): ~ _:,;~ ::::::::. :.::;?tota:.:~: It 1S e'.1\1isaged (h.:.ti rlf.:t·\. <:.: :.r.~~ i:i .... :{··;· ~f!~;j: .• : ~": .. ~ W\~;. be unclertakco.:n by outside .... j=1s\oJ!tQt1~f~ n,\. .;*: \ .. <1.1. C~ ····.( .. -::.~a:y ("r; ;.:-~in ~cuplt.:'" a(. higber : .. '\ : ... ' .:.', .".. , ...... ~:'.i <:. :.t1:! .1'·;' .,-.!:\ . J F; i.1 ur~Jer.t ak-e the ,: •. ,.. ...•.•.. .; .. ~. ".t.. ~:.H:bt.,··\h~!i:.)(t l#ork;
.It.!~ ... t'.y: ,.··.~11':. ;,,:'. ;!"; •• I .' • Ion,: :
,'.: . : .. ..--? t";.c· \ " . . , ... :"t~' .. :.f) : r.·.1.~:·r· .. -.' ..
t:. 1 ,~.. 1 ...... I I ; .. J:' .
~b~.; t"~1 .,,(·1 t lIl:"'d hand p~Jmf'l ro.,int't.'nance: to t. <l i n V). J. lage "0 h,nteers t.) U'1,i..Ht:;ke '.ville:·} can f·rt~i!.y bE. l.:3rrie.~ C"Ii.:t. \\ltt! th~ .;\n .. f q ';m~; 1 in\'e:!n~:.:n)· uf ~!P(,,·t.. p.a ... t s·
t· ., i 1 ill" trained "'. 'I'd Ul<.!inteusnce
~ skilled op~ratoEs !p',re ditfLcult tasks
courses will be required tneF.e snd other tasks aiJ of a few hand tools
" C.(.'\'i!li.d"'nlhLt~ ef.iQrt will have t,) l,e pnt ... 0 at an early stage to ~ •. ·:~·i/·C p.-:dl,l.;~ . ·/n,l r:1 ... tfH ·;Y'r. ~::(.; :.h~~~,· " .... , .. S'.!.'> .~ the benefits of i.h;~ ''''H'' 1-1111 c.any "vel into th<! natlonat pl'ogramme.
'\ I; ; ', •. "",':' :,'. : ·,5 ",. :01:1:'; ·Jit.!,!!.. lh CI,o! a'·.!<lS hAve b~en identified as . ••.•. f:'o 1'( ..... ,;.; ,'. ~,,"itJ.nt ;.fll 1.~( It')( .. :i:;.1$ •. llg rht! we.ll-being "f .:.; i ·'r_'c,·1 f:~ "rhi.''1,,-:'t·· ;!rc.":
.,1 "'jrn~' "'\'.,\1 ;n~. p"-o'n:;;':m nf piped water \.till enable a gre.atly ,l{P'lpj", ("':.\!' brt'edinlZ pro~rRll1lTte to be ut\.h·rtaki?D to enable the
.... ,y .... " ... ·11-,· r-,':('~"n+~ ""if-sufficient in be .. t production. [,,;e ;'ll l'f.,..!!'. ~,f r'i~ "'.!!ltUlI: will be high (hoth in tenns of costs f(lI i,,·.·.:u'n: .. ilwre tugh q\1.~lLcy cattle and the nC?ed to increase th~ ·~~!'i:,,· .: ;'..! Qi . ..,ater supply syste:ns abuve domes~ic level) hut ... Ll ... t-·a:'r~1 ·~~:(:~"fi~lf,. iUV(;l'::!J t4) che: ·.:iioll·;".::. jl!st.ify I·t·,;.··,
~XVfi tid ;. t.ll r 0;_.
:-" •. , I'anie"'" ... r. p<p.sellt ") t i"liSe glll:d.m plr>ts .ar.·e pi.t.he!;' left ·_fl;!,.',el.t)pf!:\.~ u.: -1r~ \.1nd~r-'.':t;lized prima:-;l:· beCiit.lSe {~t a la,-k of ;'; ;:. , .. :. wn .. ~t'e\~t:T pc.)ss·ulp ?i~-!cl ~att;'?l' g~''?t.eP.'l:; <.h .. *'ulo '.r: ";,.~ t.';i:r.,i l:' :·rl.l'.jde suf[;(:iE'nt watt!l t(. al !o;,' fo'C' rn.ldf!n~
,·:l.Aring e>f g3.-·I;;.,~ rtl.,ts. "~;"iT1, thl.s .... 1.;.1 il'vnlve extra Ct)sts in 1,'<;;I:"d,,-:; S'~""~I1I'S tor a !!«:J!te.- demil>1d than l't.:rely I do"'!esti.c' !Inc: i.n SO!ll"- CI'IS-.~ ':~xtra pipes 3nd fill. i'lgs t·, !!et the wat~r to ~ir·· ·Ji.;.:jalf'l "·1' th.:· pl"'l..s~ in .. ! lhis t:}(tr.~ t~·:pp.nd1t\ •. "e is .i'l':' itl.:!\! <: l···.· ,};:p<n·tuflit: that garden\n~ gives to i.mpr~ve ~d.L)i!r.tl J:t.'t:rrtj.-.,. /jr,d to tn,:r.::ase ville'!;l'\ lti';r .. 11!t:;
·,i ... ·.·"s ~".~(i!.!·;t; .. n· r.10S;: villagers a.re ;:!Ir!~r.tl: ,;oh"rt of C'harcoal '1" '.: .... ,l< i.~g ; '.0!. t'I()"~·~hc>ld bi <lgall uni.t!.' ~pd on a "dxtll1."~ of animul ';,.,.'g, v(
. •
- 21 -
d) component manufacture: the water supply and sanitation programme will require a vast quantity of components which are currently not made in Terrania, but the manufacture of which is generally labour-intensive (e.g. pit slabs, pour flush bowls, hand pumps, tanks, well rings). Further, the five towns within Kalive have serious problems with youth unemployment. It is therefore
~ proposed that the National Water Authority and the Training and Manpower Development Unit work together to establish component manufacturing units in each of the five towns as a youth work skills development programme.
EXTERNAL GRANT AID
The external grant aid sum of $4.0 m includes costs for technical cooperation in the following areas:
1. Consultants to establish the training programmes, train the trainers and help prepare educational guides;
2. Short-term consultants to help establish a cattle breeding ~ project.
•
The remainder of the aid will go towards funding the off-shore costs of the support and sanitation programmes.
CO~LUSION
To achieve the goal of maximum coverage in five years, but not to overspend relative to what funds are likely to be available for the three District Projects, the suggested total for water supply investment by the consultants had to be reduced. In addition, the committee added both sanitation and support programmes, within development cost limits, believed to be feasible for the remainder of the Three Districts Project.
Table 1
Summary of fund sources
Funding 1979-1984
1. Internal cash generation $1.3 m
2. Rural water development fund t $18.0 3. Bank loan m
4. Government loan
5. External grant aid $4.0 m
Total 523.3 m
- 22 -
Table 2
Support programme expenditure summary
1979 - 84 Support programme <S m)
1. Health education 0.20
2. Water quality monitoring 0.20
3. Training 0.725
4. other income generating activities:
a) cattle 1.70
b) biogas 0.25
c) house gardening 0.04
d) component manufacture 0.10
Total 3.215
Table 3
KaHve investment programme
1979 - 84 1985 - 90 ($ million) ($ mill ion)
Water Piped 17.1 21. 53 Non-piped 0.09 0.14
Sub-total 17.2 21.7
Sanitation Urban } 2.9 3.8 Rural
Sub-total 20.1 25.5
SU220rt 2ro!ramme 3.2 -, I
Grand-total 23.3 I 25.5 :
. •
· •
•
•
. • • •
•
..
- 23 -
Notes: 1) The funding is based on the Treasury Guidelines constrained by Kalive's share of the funds expenditure shown in Table Il-C of problem 3.
1.
2.
3.
4.
2) The reduction in ccnstruction cost has been effected by including community participation as detailed below:
Water Piped water supply costs reduced from SIlO to $62
per person Well cost reduced from $1) to $5 per person
Sanitation Pourflush latrines Improved pit latrine
) $25 average to $8.00 ) average per person
3) Recurrent costs of water and sanitation have not been estimated but as a first approximation, these will amount to 4% of the development budget, which can be compared with 7% in the Kalive consultant's report, thought to be too high by the committee.
Support programmes
Capital cost Recurrent cost 1979 - 84 per annum
Health education $ 200,000 $60,000 I Water quality monitoring 200,000 40,000
Training 725,000 30,000
Other income generating activities:
a) cattle development 1,700,000* Noc available
b) biogas production (pilot plant) 250,000 10,000 c) home gardening 40,000 10,000
d) component manufacture 100,000 60,000**
Total $3,215,000 $210,000
(Includes cost of producing additional water as in item 4a, see note below)
i
I
* Cost of producing additional water, assuming the water demand is 10% of the total demand for domestic use.
** Only for the first year.
The Hon. B. J. Barude M.P. Minister of Finance
Dear Sir,
- 24 -
Report on problem 3
National Water Authority
10 November 1981
Thank you for your letter of the 18 January regarding the Three Districts Project. The Board of the N.W.A. shares your concern about ensuring that the Water Decade is set on a financially sound course for the country. Your letter and the accounts of the N.W.A. have been discussed by the Board.
We feel that the Three Districts Project should be implemented as soon as possible, to comply with Cabinet's intention of reaching the goals of the Water Decade. First projections indicate large funding from treasury would be required. However, other options are possible, which could substantially reduce the treasury's burden.
Increase in water sales to the Government for rural and urban standpipes is minimal (only 4.3 million cubic metres from 1979 to 1984) whereas the increase to metered private consumers is 18.5 million cubic metres in the same period. This should considerably increase revenue.
A programme to increase metered house connections is being developed and the possibility of recouping part of the capital costs is being looked into.
We feel that to comply with Government's intentions in the water decade, extension of supplies to the rural areas should be emphasized. Unit costs in supplying water to rural areas are generally much higher than in urban areas, and the rural people lack funds to pay for it directly. The N.W.A. is not in a position to subsidize this sector development. It is, therefore, essential that government subsidies are made available. Whilst it can be argued that the 3% loan can be better utilized in other economic sectors, the social benefits from extended water supply and sanitation schemes are considerable. We feel that Government's subsidy in this area is well worth the expenditures.
The N.W.A. is currently looking at the possibility of introdueing more self-help schemes, particularly in rural areas. It has also recently applied for external professional assistance to help streamline its water and sanitation operations and reduce the volume of water unaccounted for. We feel this should considerably reduce capital and recurrent costs.
• •
· ·
•
•
• t
• •
f
•
•
- 25 -
We also feel that a reV1S1on of water rates is unavoidable and proposals for revisions in the tariff structure will be forwarded to your Ministry in due course. The new tariffs, coupled with the proposals mentioned above, should enable the N.W.A. and the Government to set the water decade on a sound financial course for the country and allow the N.W.A. to achieve some degree of financial autonomy • ..
Yours sincerely,
The Hon. H.J. Awango Chairman, National Water Authority
- 26 -
Report on problem 4
The Chairman National Water Agency lerrania
Dear Sir,
The Committee has examined your request for water tariff increase and in its deliberations the following points have been examined and decided upon as foll~ws:
2)
an immediate tariff increase of approximately 25% in 1980 is justified. Accordingly, the rate is to be increased from l8c per cubic metre to 22c per cubic metre in 1980;
future tariff increases are to be automatically adjusted in accordance with the determined consumer price index (C.P.I.);
3) net fixed assets are to be revalued every five years comm~ncing in 1985 for purposes of determining the annual depreciation rate;
4) in future, it is suggested that tariff structures be established on the basis of the average incremental cost for the authority and not on the basis of a single project as was done in your submission;
5) it has been concluded that the Government should discontinue subsidizing UA-metered supplies. Applying the rate structures shown in Table 4 for unsubsidized rates indicates that a family of five using a standpipe would be required to pay $2.23 per month for an average monthly consumption of 5.3 m3 (5 persons x 35 l/day x 30 days/month). This is well within the ability to pay based on 5% of the average family monthly income of approximately $50. Therefore, as the utility can achieve financial viability without government subsidy you are directed .to develop tariff structures which reflect the ability of the low-income consumer to pay and which also incorporate block rates to discourage wastage and excessive use.
Yours sincerely,
H. J. Galo Committee on Public Utilities Tariffs Ministry of Finance
• •
• ·
•
•
• - 27 -
•
Table No. 1
Original rate structure Tariff study
";. I M
I ='. .... EI ... • ...
I .... Gl GI III • !ll GI I ... III a ; ~ s t • .... ! • III & III .. s:; I ! .. .... .. " 4Il :I GlC') .... .. . •• .... e~ EI ....... .... E ; ~~ I .... .... 00 :sa .... .. 0 .:~ : s:; ~~ E-o 02>- 10 I'a1 I ... 02 ....
I I
I 1979 . 47.7 16.15 8.0 7.7 1.0 9.0 (1.3)
1980 49.4 18.0 9.1 8.9 1.3 10.4 (1.5)
", 1981 52.7 18.0 9.4 Q.5 1.7 11.1 (1.6)
1982 57.7 18.0 9.9 11.6 2.1 i 12.0 (0.4) • •
1983 63.6 20.0 10.3 12.7 2.4 12.7
1984 .70.S 20.0 11.8 14.1 3.0 14.8 (0.7)
1985 74.9 20.0 20.9 15.0 4.2 25.1 (10.1)
1986 79.9 20.0 22.4 16.0 4.2 26.6 00.6) I I : 1987 84.9 20.0 23.4 17.0 4.2 27.7 (10.7)
1988 89.9 20.0 24.6 18.0 4.2 28.9 (10.9)
1989 94.9 20.0 26.0 19.0 4.2 30.2 (11. 2)
1990 99.9 20.0 27.0 20.0 5.6 32.6 (12.6)
• . 1991 99.9 20.0 27.0 20.0 5.6 32.6 (12.6) i
.. 1992 I
•
1
, - 21 -',' . "
Table No. 2
" :~. -30: ltevis4l4 rateatrueture
tariff atudJ
I ! M I. I
8 .. I ... ! : • I : I ... I f • • .. r: II , r: 8
I • , "'II .. ,- , ~-
: ,-...... ! .. .. 0 ~~ ~. I .I , CI .. 111;0. ...
1979 47.7 19.15 8.0 i 9.2 1.0 . i ,
1980 49.4 22.0 9.1 I 10.9 , 1.3 • i , 1981 52.7 23.0 ' 9.4 l2.1 ,
I 1.7
1982 57.7 24.0 9.9 13.9 ,
2.1 I ,
1983 63.6 28.0 10.3 17.8 2.4
1984 70.5 29.0 'U.8 20.5 ,
3.0 . I i
1985 74.9 31.0 10.9 I 23.2 4.2 ,
1986 ! 79.9 33.0 22.4 26.3 4.2
1987 84.9 33.0 23.4 28.0 4.2
1988 89.9 33.0 24.6 29.7 4.2
1989 94.9 33.0 26.0 31.3 4.2
1990 99.9 33.0 27.0 33.0 5.6 :
1991 99.9 33.0 27.0 33.0 , 5.6 . 1992 ,
! ; !
I I !
I • ;
I , I
'. "
" " , ,
""
I ,
: • I"'C: II I"· .. , .. =-i~ • , I :
! 9.0 I
I 10.4 !
11.1
12.0
12.7
14.8 :
25.1
26.6
27.7
I 28.9 I I 30.2 I I 32.6
32.6
I I I
I ,
I I
.... .. 11: ... ....
e-" ::s! III'"
0.2
0.5
1.0
1.9
5.1
5.7
(1.9) :
(0.3) ~
0.3 I
· 0.8 , • I • i 1.1 I I · 0.4 I
• i
0.4 ! ! ,
, • ! ;
• •
• •
•
•• • •
• •
•
•
•
°0
- 29 -
Table 3
Inflationary effects of cost
Cost Proposed Anticipated Net Year Inflation (%) Um) Tariff Revenue Surplus
(tlm3 ) ($m/annum) (hi/annum)
1980 1978 12.3 22.0 10.9 - 1.4 Compounded 20%
1984 20 28.7 46.7 32.9 + 4.2
1984 20 44.4 46.7 32.9 - 11.5
1984 10 25.3 32.9 23.2 - 2.1
Notes: 1) Inflation 1978 - 1980 at 20% per annum
2) Assets depreciated on 1978 valuation
3} Assets depreciated on revalued value (revalued on annual inflation rate applied to net capital value)
- 30 -
Table 4 Statement showing rate structure for public tap
with or without Government subsidy
II C'?teratinF. ! ~let ... reci I Rat .. without I Rate with
'~'"ar cost + sales in Government I' Government
I i~te:-~s~::I3 xl')/) suosid\' subsidy $ 'r. :rr.il·, onlY (t 1m3 )' <ti(3)-
L--~------.----.------~----~ I : 9 79
I : qso
I l'?,:H
: ~32 13.5 3:;.3
15.0 ':'0.5
,984 16. } ':'6.2
17.6 47.0
I ,,7.8
I 10 ~ .... ,.. -!. : ").38 2"-).0 4 0 .4
50.2
'i1.0
~ '? 91
, ,
32.6
35.9
37.1
37.7
37.7
37.7
3 S. <,
39.;
40.':'
'1 • ~"' .. 43. '1
50. (I
19.15
22.00
23.00
:!4.00
29.00
1l.00
33.1)(\
33.00
31.00
33.0('
'--------'--------'
•
.* • •
.. i
•
•
. ,
f
• •
•
- 31 -
Report on problem 5
Topic 1: Real costs and benefits of the project to the economy as a whole
1) Proposed water supply project should be accepted because:--.
a) water supply/sanitation must be considered as a basic need and should be provided to a certain minimum standard to all the people at any cost;
b) benefits of water supply projects are difficult to quantify, so the application of conventional Cost/Benefit Analysis can not be easily performed.
2) Instead, the method of cost-effectiveness analysis is more appropriate to be used in judging the merit of water supply projects, once a decision has been made to provide water service •
Topic 2: Impact of the project on the Government's short and long-term economic and social objectives
Group's views on solutions on summary of relevant Government's objectives:
1) commitment to the goals of the International Drinking Water and Sanitation Decade, project is an important part of the Government efforts to meet those goals;
2) decrease in the rate of internal migration from rural to urban areas. Project will help to achieve this goal if it includes development programmes for rural employment in agriculture, handicraft centres, etc.;
3)
4)
increase in economic activity and improvement of social welfare in the less privileged areas. Project will contribute to this objective provided government support for the project is sufficient to enable water charges to be held at a level that the less privileged can afford;
reduced dependence on foreign aid;
a) the technical cooperation with foreign agencies which is envisaged as part of the Three Districts Project will raise the level of technical expertise in Terrania and in the medium term reduce the country's dependence on foreign "expert S";
b) the "spin-off" economic activity generated by the water supply project will have a positive effect on the country's balance of payments and contribute to a reduction of Terrania's reliance on foreign aid.
The Hon. H. J. Galo Prime Minister Terrania
Dear Hon. Galo,
- 32 -
Please refer to your request to report on the meeting of the Economic Planning Unit regarding the Three Districts Project.
The proposed project will have positive effects on the economy of the country as a whole since water supply and sanitation must be considered as a basic need and should be provided to a certain minimum standard to all the people at any cost. Also since the benefits of water supply are difficult to quantify through the application of conventional Cost/Benefit Analysis, cost-effectiveness analysis is more appropriate in judging water supply projects.
The project is in keeping with the Governm",nt': economic ti.l1d social objectives. In fact, the project is an excellent first stage in the government's programme to meet its commitment to achieve water for all by 1990. Further, the project with its associated economic and rural development will help to reduce urban migration anc contribute to the economic and social advancement of the less privileged sectors of sr.(ietv. I would empha~:ize that the £.1':: shares your concern about reducing our dependence on ·forel.gn aid tl'l'-! r.tre unit's careful study of this matter has shown that the increase in t~ct,ni~l expertise resulting from this project together with the economic ~".:Ndr that will follow the water SUppl~l installation will in tne med.um term lead to an improvement in our ,;oun<:rv' C p'c(lTl-:ltr.ic: indfil'endence .
• ~ i5 noted Luae the rate of return tor other sectors is not available .';'",,1 ~",:l.le thl: rate .:.i :ctu-.:r, Zv. thE: 'Three Districts Project is relatively lOW, the other sectors, e.g. tlansport, irrigation, etc. indicate a larger calculated value. It is also appreciated that a comparison of the r~te ~f. return for the Three Districts Project with other sectors is not aiwa:{~ relevant, but water supply should be considered as a baslc human need whic~ should warrant national priority. In its~l£ water sectoral development rloes !'vt fuiiii ail ;,;.).:i81 neeclo a,l<1 it must therefore be considered as an integral part 01 th .. overall development programme.
.. / ...
.-0.
r
•
i
i
., • .. -•
, •
•
•
- 33 -
three Districts Project is a high priority project which_will meet one of the-basic needs of the people. Foreign participation in the form of technical assistance, grant or loan is necessary for the implementation of the project as local funds available are inadequate to meet the requirement. As a first step in getting foreign participation, assistance from agencies such as WHO or UNICEF should be sought to provide consultants for~the final design of the project and training of personnel. Efforts should be made to approach government-and other agencies which are in a position to provide funds or equipment as a grane. If adequate funds cannot be collected through the approaches mentioned above, we should seek a loan from IBRD or ADB which provide loans at favourable terms. The- loan should be obtained with low interest and long grace and repayment period although Obtaining a loan will not over-stretch the debt service ratio of the country. Serious consideration should be given to the country's absorptive capacity before seeking loans to replicate the project throughout Terrania •.
Thus, I recommend that the Three Districts Project should be accepted;
Yours sincerely,
Tomer Kuko Minister of Finance
