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Report No. 581a-TUN FILEG COPGAppraisal of theFirst Urban Sewerage ProjectTunisiaJanuary 15, 1975
Regional Projects DepartmentEurope, Middle East and North Africa Regional Office
Not for Public Use
Document of the International Bank for Reconstruction and DevelopmentInternational Development Association
This report was prepared for official use only by the Bank Croup. It may notbe published, quoted or cited without Bank Croup authorization. The Bank Croup doesnot accept responsibility for the accuracy or completeness of the report.
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CURRENCY EQUIVALENTS
Currency Unit = Dinar = 1000 millimesUS$1 = D 0.425D 1 US$ 2.35D 1 million = US$ 2.35 million
NEUSURES
1 kilometer (km) = 0.621 miles1 millimeter (mm) = 0.039371 liter (1 = 0.264 US gallons1 cubic meter (m') = 264 US gallons1 hectare (ha) = 2.h71 acres1 square meter (m2) = 10.76 square feet1 square foot (sq. ft.) = 0.09 square meter
G.WSSARY OF ABBREVIATIONS
ONAS - Office National d'AssainissementSONEDE = Société Nationale d'Exploitation et de
Distribution des EauxONTT = Office National du Tourisme et du ThermalismeWHO = World Health OrganizationUSEPA = United States Environmnental Protection AgencyICN = Ingénieurs Conseils NéérlandaisOTTEEFP = Office des Travailleurs Tunisiens à l'Etranger,
de l'Emploi, et de la Formation Professionnelle.
GOVERNMSNT OF TUNISIA
FISCAL YEAR
January 1 to December 31
TUNISIA
APPRAISAL OF THE FIRST URBAN SEWERAGE PROJECT
TABLE OF CONTENTS
Page No.
SUMMARY AND CONCLUSIONS ..... ........................ i-iii
I. INTRODUCTION . .... .......................... ........ 1
II. THE SECTOR ................ ........................
A. Water Resources. . .................. . 1B. Sewerage ...................................... . 2
III. THE PROJECT AREA ....... ............... 3
A. Location of Project ............................ 3B. Existing Water Supply and Sewerage ............. 4
IV. THE PROJECT ENTITY . ........................ ....... . 4
A. Background ................................ 4B. Organization and Management ..... ............ 5C. Operations ........................................... ... .... 5D. Investment Program ............................. 6E. - Accounting System ...... .............. 7F. Billing and Collecting . ........................ 7G. Insurance ....... ............................... 7
V. THE PROJECT ......................................... 7
A. Description of Project ..... ................. 7B. Construction Schedule .............. . ............ 9C. Project Cost . ......................... *......... 10D. Financing Plan .......... . ........ .... , , ilE. Project Administration and Execution , .. . 12F. Role of the Greater Tunis District ...... ....... 13G. Land Acquisition ............................... 14H. Procurement . .................................... 14I. Disbursement . ............................ 15J. Environment and Health ......................... 15K. Monitoring and Key Project Indicators ......... 16
Messrs. W.J. Cosgrove (Water and Sewerage Engineer) and G. Heyland (FinancialAnalyst) wrote this report.
TABLE OF CONTENTS (Continued) Page No.
VI. FINANCE .................................................... 0 17
A. General ........... ......... 17B. Revenues ...................... . ........ 17C. Governnent Subsidy ........... . .................... . 18D. Financial Performance ................... ...... 20
VII. JUSTIFICATION ......................................... 21
A. The Project . .......................... ........6 21B. Greater Tunis Pollution Control Measures ...... 21C. Sewage Collection (Evacuation) System ......... 22D. Engineering Services and Technical Assistance . 22
VIII. RECOMMENDATIONS .................. .................. 23
ANNEXES
1. Previous Loans and Credits2. Existing Sewerage Systems3. Incidence of Some Waterborne Diseases4. ONAS Projected Organization Chart5. Probable Schedule of Take-over of Sewerage Systems6. Development of Water and Sewerage Connections7. Project Description8. Construction Schedule9. Estimated annual Project Expenditures10. Technical Assistance to Local Construction Industry11. Estimated Schedule of Disbursements12. Monitoring Criteria13. ONAS - Projected Income Statements 1975-198114. ONAS - Projected Cash-Flow Statements 1975-198115. ONAS - Projected Balance Sheets 1975-198116. Assumptions for Financial Projections17. Economic Justification18. The Tunis District
MAPS
IBRD 11174 Location of Project ZoneIBRD 11175 Land Areas Bordering Lake of TunisIBRD 11211 Tunis District, North Coastal PartIBRD 11212 Tunis District, South Coastal PartIBRD 11213 Tunis District, Central Coastal Part
APPRAISAL OF
THE FIRST URBAN SEWERAGE PROJECT
TUNISIA
SUMMARY AND CONCLUSIONS
i. Since 1968, Tunisia has advanced significantly in the supply ofpotable water to its citizens, and by 1978, all settlements of 500 or morepopulation are expected to be served. l/ The Bank Group has made a signifi-cant contribut4on towards this progress through a Credit (209-TUN in 1970) andtwo Loans (581-TUN in 1969 and 989-TUN in 1974) which have a total value ofUS$48.5 million. By comparison construction of sewerage facilities has re-ceived little attention to date. Only half the population supplied withwater is connected to sewer systems. These systems are incomplete, overloaded,and badly maintained, if at all. Less than half the sewage collected reachestreatment plants, and these plants are either overloaded or malfunctioning.
ii. In Greater Tunis, including the capital of Tunis, 84% of the popula-tion is connected to the public water supply system, and 90% of these are es-timated to be served with some form of sewerage. However, the collection systemis incomplete and overloaded, is hampered by design defects, and is poorly main-tained. More than half the sewage collected is discharged to receiving bodiesof water with little or no treatment. In rainy periods, sewage overflows ontothe streets in the Medina and in the low-lying areas of the city. In the hot,dry period, sewage stagnates in the sewers and in the Lake of Tunis. The Lakeis polluted beyond hope of self-purification, and emits foul odors throughoutthe District.
iii. To help alleviate some of these problems, an Urban Sewerage Projectis proposed for partial Bank financing. A national sewerage authority, OfficeNational de l'Assainissement (ONAS), has been created to undertake a nationalprogram of sewage works. It would be responsible for this Project, and forthe sewerage component of the Tourism Infrastructure Project being financedby the Bank. Following an agreed timetable, ONAS will assume responsibilityfor design, construction, operation and maintenance of sewerage systems through-out the country. The consultants who prepared the feasibility studies willdesign and supervise construction of works in Greater Tunis. During the for-mative period, the management consultants who prepared the study for establish-ment and organization of ONAS will provide technical assistance. The WorldHealth Organization, the United States Environmental Protection Agency, andthe Federal Republic of Germany will provide additional technical assistance.
1/ The remaining rural population, which constitutes 28% of the totalpopulation, lives in isolated dwellings which cannot be served bypublic distribution systems.
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iv. The principal component of the proposed project is the first stageof sewerage for the Greater Tunis District including: additions to the trunksewer systems; extension, renewal, and renovation of local sewers; sewage treat-ment; and measures to prevent pollutants from entering the Lake of Tunis infuture. Part of a program of urgently needed sewer system renewals and renova-tions in other communities to be taken over by ONAS during 1975 and 1976 isalso foreseen. At the request of the Government, technical assistance is in-cluded to aid in the establishment of ONAS; to prepare feasibility studies ofsewerage projects to be included in the next Plan; to study potential develop-ment opportunities around the Lake of Tunis; and to determine measures to in-crease the capacity of the Tunisian construction industry.
v. The project cost is estimated to be US$86.11 million, includingphysical and price contingencies. The Government would borrow from the BankUS$28 million, or 50% of the foreign exchange requirements if most works wereundertaken by foreign contractors. If the Tunisian construction industryundertakes 60% of the civil engineering works, the Loan would be about 71% ofthe foreign exchange requirements. Retroactive financing of US$400,000 isproposed for expenditures incurred after June 30, 1974 toward the foreignexchange cost of consulting services, the purchase of sewer maintenance equip-ment, and the costs related to establishment of ONAS. The balance of theforeign exchange and the local currency costs would be met by the Government.
vi. Major civil works and equipment contracts will be put to tender basedon international competitive bidding in accordance with the Bank Group's "Guide-lines for Procurement". A preference margin of 15% or customs duty, which isless, is proposed for domestic equipment manufacturers. Construction of themajor works is expected to begin in the second half of 1975 and to be completedby the end of 1978.
vii. In the past, sewered proprietors have paid 16% of the cost of instal-ling fronting sewers and a property tax for sewer maintenance which is equiv-alent to about 8 millimes/mJ (US$0.07/1000 gal) of water consumed. In thefuture, the Government intends that fronting proprietors pay the full costof the installation of a fronting tertiary sewer. Credit facilities would bemade available to finance house connections and extensions for low-income pro-prietors in already built-up areas. The Government has proposed a seweragetariff, based on water consumption, charging 8 millimes/m33(US$0.07/1000 gal)to domestic consumers with a consumption of more than 40 m peS quarter, 23millimes/m3 (US$0.20/1000 gal) to industry and 15.5 millimes/m (US$0.14/1000gal) to the tourism industry. This tariff, together with municipal levies onproperty, is sufficient to cover operating and maintenance costs. Governmentwould subsidize sewerage by a contribution equivalent to 16 millimes/m3
(US$0.14/1000 gal) in 1975, 25 millimes/m3 (US$0.22/1000 gal) in 1976 and 40millimes/m3 (US$0.36/1000 gal) from 1977, based on water consumption bysewered customers, but a program would be established to review from time totimne the environmental and economic policies inherent in such a policy. Thetariffs would be revised, if necessary, to ensure that the internal cash ratioremains above 4.0%, a reasonable level to ensure adequate cash-flow.
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viii. The main elements of the proposed project represent the least-costsolution from among several alternatives. The extensions, renewals and renova-tions of the existing sewer systems will improve health and environment bycarrying sewage away from the built-up areas where it is a hazard and a nuisance.Benefits from the pollution control measures including trunk sewers, sewagetreatment and interceptor canals are: increased land values of vacant propertyadjacent to the Lake of Tunis 1/; revenue from the sale of treated sewage andsludge for irrigation and fertilizer; and savings from reducing fish-killcaused by pollution. The internal economic rate-of-return for the pollutioncontrol component is 24.9%.
ix. Agreement having been reached on certain issues with the Governmentof Tunisia, ONAS and the Tunis District the project is suitable for a Bankloan of US$28 million to the Government. Under normal sewerage utilities prac-tice, an appropriate term for the loan is 25 years, including 4 years of grace.
1J Acquisition by the Government of land not owned by the state is a Loancondition. This will ensure that these benefits accrue to the populationat large.
TUNISIA
APPRAISAL OF THE FIRST URBAN SEWERAGE PROJECT
I. INTRODUCTION
1.01 The Governrment of Tunisia has requested a Bank loan to help financea project including sewerage for Greater Tunis, the renewal of sewerage sys-tems in other municipalities to be taken over by the national sewerage author-ity in 1975 and 1976, the establishment of the national sewerage authority,studies of sewerage projects to be included in the Fifth Plan (1977-1981), andstudies of measures to improve the capacity of the Tunisian construction in-dustry. The project, estimated to cost US$86.11 million, is included in theFourth Plan (1973-1976) and forms part of a Goverr.ment program designed toimplement sewerage schemes in 21 urban communities by 1978. Feasibilitystudies were prepared by Coyne and Bellier (France)/ICN (Netherlands) withthe Department of Urban Hydraulics acting as the Government Agency. Thestudy on the establishment of a national sewerage authority was carried outby SETEC (France)/SOTUETEC (Tunisia).
1.02 In September 1973, a pre-appraisal mission composed of Messrs. Thys,Williams and Cosgrove visited Tunisia and participated in a review of theinception report prepared by Coyne & Bellier/ICN, agreeing on the scope ofthe project and its basic design criteria.
1.03 An appraisal mission composed of Messrs. Cosgrove, Heyland andWilliams appraised the project in May and June 1974. Following review bythe mission of the program of works and recommendations for the establishmentof a national sewerage authority as prepared by the two groups of consultantsthe project components were defined, the construction program establishedand cost estimates prepared. This report is based on the mission's findingsand on information obtained from the Governrnent and its consultants.
II. THE SECTOR
A. Water Resources
2.01 Since the total water resources of the country are limited, infuture years Tunisia may have to consider recycling of treated sewage, as aneconomic alternative to desalination of brackish or sea water. Demands forirrigation and for potable water could exceed the total available supplies offresh water in the southern part of the country by 1980. Studies are pre-sently underway on the possibilities of irrigation with brackish waters, onpossible mixing of brackish water with water of better quality to producegreater quantities of water with higher but still acceptable salinity, andon irrigation with raw or treated sewage. A major study by consultants fi-nanced initially by a Bank technical assistance grant, has produced a Master
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Plan for northern water resources which envisages major storage works and acanal to transport mixed fresh and brackish water east to Cape Bon. One ofthe assumptions of this study is that treated sewage from Tunis will be usedfor irrigation. _
2.02 The production and distribution of potable water are the responsi-bility of Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE),the national water authority which is an autonomous public utility establishedfor this purpose on July 2, 1968. The creation of SONEDE improved planningand implementation of works, thus accelerating the provision of water toindividual houses, particularly in the small urban centers and semi-rural areas.The population of the areas served by SONEDE is expected to continue increas-ing, from 3.31 million in 1971 to 4.35 million in 1982. By 1978 SONEDE willbe supplying all settlements having populations of 500 or more. The remainingrural population, constituting 28% of the country's total population, livesin isolated dwellings which cannot readily be served by public water distri-bution systems. They may be ultimately supplied by systems of public wellsand fountains.
2.03 Bank assistance to the water supply sector has been provided throughtwo Loans (581-TUN in 1969 and 989-TUN in 1974) and a Credit (209-TUN in 1970)which contributed towards financing of water supply and distribution systemsthroughout the country. The Bank is also assisting in the financing of atourism infrastructure project (Loan 858-TUN and Credit 329-TUN) which includeswater supply and sewerage components (Annex 1).
B. Sewerage
2.04 By comparison with public water supply sewerage has received littleattention. In 1960 nine municipalities had some form of partial sewer system.By 1974 the number of municipalities with sewerage had increased to 20. How-ever the limited extent of these systems can be judged from the facts that thetotal replacement value of all systems existing in 1974 was estimated at aboutUS$77.5 million and the depreciated value at about only US$32 million. Thesefigures compare with US$190.2 million replacement value and US$127.0 milliondepreciated value for water supply systems.
2.05 However, although the number of municipalities with some form ofsewerage has increased even in these municipalities the sewer systems areincomplete, overloaded and badly maintained, if at all. The eight sewagetreatment plants in the country are either overloaded or malfunctioning. Thissituation exists because the prime responsibility for the provision of sewer-age services has been with the communes who lacked both the funds and thetrained personnel to provide the necessary service. There are only about 25technicians and workers having skills related to sewerage and 20 of these areemployed by the City of Tunis. The lack of clear division of responsibilityamong the ministries, the municipalities and three state agencies resultedin an absence of decision-making for sewerage at the national level. Theonly effective measures undertaken in recent years are those related to im-provement of sewerage facilities in the tourist zones as part of the tourisminfrastructure project financed in part by Bank Loan 858-TUN and Credit 329-TUN. A more detailed description of the existing sewerage installations andthe past sector organisation is given in Annex 2.
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2.06 On August 3, 1974, a Law was signed by the President creating anational sewerage authority, Office National de l'Assainissement (ONAS). Thenew authority is responsible for the planning, operation, maintenance, renewaland construction of all sewerage works located within the limits of the communesand within tourism or industrial development zones. The organization of thisoffice is well underway and it is expected that this centralization and clari-fication of administrative authority and responsibility will make possiblegreatly accelerated investments in the sector as foreseen by the current Plan.The Ministry of Public Health will continue to exercise quality control on thecountry's pollution control effort. In addition, ONAS will work closely withONTT and the Greater Tunis District in the planning of works to be undertakenwithin their respective jurisdictions and responsibilities.
III. THE PROJECT AREA
A. Location of Project
3.01 "Greater Tunis" is composed of 13 municipalities, including thecapital city of Tunis, covers an area of about 16,000 ha (62 sq. mi.), andhas a population estimated at about 950,000 in 1973 and growing at a rate ofabout 4% per year (See blap 11174). In 1972, the Governnent of Tunisia formallyestablished the Greater Tunis District to plan, coordinate and supervise publicinvestment at the metropolitan level. The District is under the authority ofa Board of local representatives chaired by the Governor-Mayor and a ministeriallevel council chaired by the Prime Minister exercising supervisory decision-making responsibilities. The District will, in the course of the next twoyears, define, analyze and program the initial investment needs for implementinga strategy for urban land use in the Tunis metropolitan area.
3.02 The Lake of Tunis is a body of salt water approximately seven kilo-meters in average width and one meter in depth (Map 11175). A causeway alongthe ship channel divides the north part of the Lake (where most of the sewageis discharged) from the south part. Although a series of openings at LaGoulette and Sebka de la Princesse connect the Lake with the Gulf of Tunisand the Mediterranean Sea, these do not provide sufficient area to permittidal flushing to carry the wastes to the sea or even to provide sufficientoxygen to prevent putrefaction of the wastes. Since 1962 at least nine in-dividual experts and consulting firms have studied the condition of the Lakeand means to restore it to a healthy condition. There is no doubt that theLake is highly eutrophic and is rapidly filling up with carbonaceous materialand becoming a salt lake filled with septic solids. One expert has venturedthat unless the discharge of wastewater from Tunis (treated or untreated) isstopped, the Lake will cease to exist within another 100 years. At presentthere are substantial fish kills each summer resulting from the absence ofoxygen. The unpleasant visual effects of floating solids and year long dis-colored water have completely discouraged recreational use, and the foulodor emanating from the Lake at times permeates the entire District.
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B. Existing Water Supply and Sewerage
3.03 Greater Tunis is well-served by public water supply. About 84% ofthe population is presently connected to the system and SONEDE expects thatthis will rise to 90% by 1980. Per capita consumption in Greater Tunis is38 m3/year compared to an average of 23 m3/year throughout the country. Therelatively better water supply is among the principal factors accounting forthe fact that the incidence of reported typhoid and paratyphoid (and presuma-bly other water-borne diseases) is only half of the average rate throughoutthe country (Annex 3). The present sources of supply will meet the needsof the District until about 1981. SONEDE's investment program provides forconstruction of additional supply works beginning in 1979 to ensure continuingadequate supply to Greater Tunis.
3.04 The most important elements of the existing sewerage system areshown on Maps 11211 to 11213. Despite the existence of a rather completesystem which serves about 90% of those connected to the public water supplysystem, the sewerage of Tunis is far from adequate. The deficiencies of thesystem are felt during the hot summer months when unsavoury odors emanate fromthe Lake of Tunis and some of the older parts of the City and in winter duringthe rainy season when the sewers overflow and sewage stagnates on the streetsin the low-lying central area of the City (Annex 2).
IV. THE PROJECT ENTITY
A. Background
4.01 ONAS is the nationwide authority for all sewerage and waste watertreatment operations. Due to the lack of competent services for these opera-tions in the authorities hitherto responsible (paras 2.04 and 2.05) the Govern-ment initiated the establishment of this authority to centralize and build upthe technical, financial and managerial resources urgently needed to develop,operate and maintain this sector efficiently (para 2.06). ONAS is fully ownedby the State and responsible to the Ministry of Equipment.
4.02 The legal and organizational framework for the establishment ofONAS was worked out by consultants (SOTUETEC/SETEC-Tunis/Paris) in cooperationwith the Ministry of Equipment. The law establishing ONAS provides for thecreation of an industrial and commercial public institution with financialautonomy. It specifies that ONAS will carry out the following functionsin all municipalities and tourist and industrial development zones:
i. administration, operation and maintenance of all existingsewerage installations;
ii. renewal and new construction of urban sewerage works andwaste and storm water collectors;
iii. construction, operation and maintenance of waste waterpumping stations and treatment plants; and
iv. treated effluent disposal.
B. Organization and Management
4.03 The proposed organization of ONAS is shown in Annex 4. The Boardof Directors is composed of representatives of several Minis tries involvedas well as of the municipalities, the District of Tunis, the National TourismOffice (ONTT) and SONEDE. Management is expected to be delegated to a Pres-ident/Director-General and a Deputy Director-General with three subordinatedirectors for Finance and Administration, Engineering and New Works, and Oper-ations. Since ONAS will operate throughout the country, four regional bran-ches for operations are proposed. A competent President/Director-Generalhas already been appointed following consultation with the Bank. Agreementhas been reached that the Bank will be consulted re the initial appointmentsof qualified candidates to the positions of Deputy Director-General and theDirector for Finance and Administration, and for any change in these threepositions during project execution.
4.04 The initial staff of ONAS will be selected from the competent per-sonnel of the Division of Urban Hydraulics (Ministry of Equipment) and fromthe existing sewerage agencies in Tunis and Sfax, and will increase, year byyear as ONAS expands, to a total of about 1,300 in 1981. In order to attracttrained and skilled personnel at all levels, a special personnel statute, pro-bably similar to that applicable to SONEDE personnel, would be created to giveincentives to ONAS personnel through adequate working conditions and salaries.In addition, since the necessary skills do not exist in the labor market insufficient numbers, ONAS would establish a training division reporting directlyto the President/Director-General or to the Deputy Director-General. Thetraining division will prepare a detailed training program including number,category and levels of personnel to be trained and detailed information on theccontent of the program and resources required for its implementation. ONASwould submit this training program to the Bank for comment within one yearof the date of the Loan Agreement. Agreement has been reached with the Gov-ernment and ONAS covering a personnel statute acceptable to the Bank and thetraining program.
C. Operations
4.05 In order to enable ONAS fulfill its functions the law provides thatall installations shall gradually be handed over by the Governnent to ONAS.A time-schedule for the take-over in accordance with the assumed physicalcapacity of ONAS has been established (Annex 5). Agreement has been reachedthat transfers will be executed and timed in accordance with a definitiveschedule to be submitted to the Bank within four months and that any changeswill be subject to Bank approval. The issuing of a Decree transferring theinstallations within the District of Tunis and the Tourism Zones to ONAS wouldbe a condtion of Loan effectiveness.
4.06 In view of ONAS' nationwide activities the operational responsibili-ties will be decentralized in the four regional branches. Maintenance insmaller towns and tourist centers will be carried out by mobile units inorder to economize in personnel and expensive modern equipment.
4.07 For assistance in starting up its operations, ONAS has engaged thesame consultants (SOTUETEC/SETEC) who have already worked out the general linesof organization and operations. They will furnish advice on hiring, trainingpersonnel administration, accounting and standard engineering practices. Fi-nancing of these consultants' services is included in the project cost. Othertechnical assistance will be provided by:
(i) the United States Environmental Protection Agency (USEPA)which will provide specialists to follow the operations ofthe pilot stabilization ponds at Rades and advice on theirapplicability to Tunisian conditions (para 5.03);
(ii) the World Health Organization (WHO) which through financingby the Government of Sweden will provide sanitary engineeringconsulting services and overseas training for ONAS personnel;and
(iii) the Federal Republic of Germany which will finance the equip-ping of a central laboratory for sewage analyses,and provideits original staffing as well as training of Tunisian laboratorytechnicians.
The program of technical assistance for the operations of ONAS and for theconstruction industry study (para 5.11) was discussed by the mission with theUNDP Resident Representative. No funds are presently available from UNDP forthis assistance and they have been provided for in the Loan at the request ofthe Government.
D. Investment Program
4.08 ONAS' investment program for the period 1975 through 1981 is veryambitious. Its objective is to provide by the end of this period a completenational sewerage service to all urban inhabitants connected to the watersystem. The program will in fact provide complete sewerage service to 64% ofthe total population, compared with only 48% receiving inadequate service atpresent (Annex 6). The monetary value of these investments, of which theproject is a part, totals D 77 million in addition to about D 19 million esti-mated value of the existing installations in the municipalities and touristareas to be taken over by ONAS and contributed in kind by the Government.This program of investments may be divided as follows:
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Components D Million %
Greater Tunis 33 43Tourism centers 10 13Renewals and extensions in other towns 29 38Establishment of ONAS and equipment 4 5Studies 1 1
Total 77 100
E. Accounting System
4.09 The financial needs of ONAS - capital and operation - will be formu-lated in an annual budget to be approved by the Government. A commercialaccounting system will provide for control. The new organization includessufficient personnel to carry out all accounting duties and the necessary in-ternal audit. Agreement was reached that ONAS will also have its accountscertified by an independent external auditor satisfactory to IBRD.
F. Billing and Collecting
4.10 Since sewerage charges will be based on water consumption it isclearly desirable to have the utmost cooperation between ONAS and SONEDE inbilling such charges. Agreement was reached that a joint billing and collect-ing procedure will be carried out by SONEDE. A formal agreement acceptableto the Bank between ONAS and SONEDE would be condition of effectiveness.
G. Insurance
4.11 Motor vehicles, motorized equipment and the transport of goods fi-nanced by the Bank loan will be insured. Since ONAS is a completely state-owned authority, all other risks will be covered through self-insurance bythe State.
V. THE PROJECT
A. Description of Project
5.01 The major component of the project consists of facilities to improvethe existing inadequate sewerage of Greater Tunis. The sewer network will berenewed and expanded and collector sewers constructed to intercept the dry-weather flows and carry them to sewage treatment plants. An existing sewagetreatment plant will be renovated and expanded and two new sewage treatmentplants built. Interceptor canals will be constructed to prevent stormwateroverflows from polluting the Lake of Tunis. These facilities are shown onMaps 11211, 11212, and 11213, and are described in greater detail in Annex 7.The project works include:
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A first stage of sewerage for Greater Tunis including:
(i) additions to the trunk sewer system, including gravitysewers and pumping stations (total length about 60 km);
(ii) the renovation and increase in capacity of the Cherguiatreament plant and the construction of new plants onsites on the North Coast and at South Miliane, servingpopulation equivalents of 160,000 and 500,000 personsrespectively;
(iii) renovation and renewal of existing sewers (75 km);
(iv) extensions to the sewer system to serve built-up areaspresently without service (90 km);
(v) piping of open ditches carrying mixed storm-water andsewage and storm-water evacuation channels in the Lakeof Tunis and two lift stations to pump the storm-waterinto the navigation canal.
(vi) part of a program of urgently needed sewer system renewalsand renovations in other communities to be taken over byONAS during 1975 and 1976;
(vii) assistance toward the establishment of a national sewerageauthority including:
(a) technical assistance re hiring, training, personneladministration, accounting and standard engineeringpractices;
(b) purchase of equipment for operation and maintenanceand training of operators for this equipment;
(c) purchase of office equipment, furniture, calculatorsand drafting equipment;
(viii) feasibility studies of sewerage projects to be included inthe Fifth Plan in sufficient detail to serve as the basisfor requests for international financing;
(ix) a study of the Thunisian construction industry to determinemeans of increasing its capacity and an associated trainingprogram (Annex 10);
(x) preparation of land-use studies and Plans d'Amenagementfor the Tunis Lake area.
5.02 The Greater Tunis sewerage component is the priority phase of worksdesigned by the consultants Coyne & Bellier/ICN to meet the needs of GreaterTunis until 1988. This phase of the works has been carefully selected in order
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to economically resolve the most urgent existing problems while at the sametime maintaining as much flexibility as possible so that they can be adaptedto later phases of the works in accordance with future development in GreaterTunis. Thus the trunk sewers to be built in the priority phase have beensized for the capacity which they will require in 1988. The treatment plantsnorth of Tunis and at South Miliane will be designed to permit their laterexpansion to meet the needs of the regions they would serve beyond 1988. Theexisting Cherguia treatment plant, following renovation and the addition ofcapacity to the secondary treatment units, will have the capacity to treatthe sewage of a population equivalent of 800,000 persons, twice the populationfor which it was originally designed. Although there is no room for furtherexpansion on the Cherguia site, this procedure presents the most economicalsolution because it makes use of existing facilities whose original cost hasalready been depreciated. When future development warrants it, the flow fromthe collector in Highway X (Map 11213) will be diverted to a fourth treatmentplant to be built in the plain between Ariana and the Sebkhet Er Riana, permit-ting the Cherguia plant to remain in service without overloading.
5.03 The consultants carried out detailed studies of the costs of com-parable sewage treatment methods in Tunisia. Their analysis showed thattreatment in stabilization ponds would be the least-cost solution providedthat lining of the ponds was not required and that the land required could beacquired by the Government without increased costs caused by speculation.However the performance of these ponds varies with local conditions. Ofparticular concern to the consultants and the Government is the possibilitythat the ponds may become septic and give off odors such as those now emanat-ing from the Lake of Tunis. Fortunately the appropriateness of stabilizationponds for sewage treatment in Tunisia was already considered under the tourisminfrastructure project and a pilot plant of this type, partly financed by BankLoan 858-TUN and Credit 329-TUN, is presently under construction. The opera-tions of the pilot plant will be followed not only by the consultants for thetourism infrastructure project but also by doctorate students and ProfessorW. Oswald from the University of California under a grant from USEPA (para4.07). Since the results from the pilot plant will not be available beforethe end of 1975, and in order to permit construction of the treatment plantsto begin as soon as possible, the consultants are being asked to proceed withthe design of plants using stabilization ponds as well as for oxidation ditchesof the Carrousel type and for conventional activated sludge. The final tech-nical decision will be postponed until after the results of operating thestabilization ponds have demonstrated their applicability to the North Coastand South Miliane sites. Bid documents will then be prepared for the selectedtreatment process.
B. Construction Schedule
5.04 The renovation and expansion of the Cherguia treatment plant wasscheduled to begin before the end of 1974 and to be completed by mid-1976.Preparation of bid documents for the major collection works was also scheduledfor completion by the end of 1974. These works should therefore begin duringthe third quarter of 1975. Completion of all elements of the project isscheduled for the end of 1978 (Annex 8).
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C. Project Costs
5.05 The total project cost is estimated at US$86.1 million (D 36.6 mil-lion) including allowances for contingencies and expected price increases(Annex 9). The foreign exchange component is estimated at US$56.0 millionor 65% of total cost. This estimate is based on the expectation that allmajor construction contracts will be won by foreign finms because of con-straints on the Tunisian construction industry. To the extent that the pre-sent situation in the Tunisian construction industry could be corrected, theforeign exchange costs of the project could be reduced by as much as US$16.4million partly offset by an increasing local component of US$9.5 million sothat the peoject cost in total would be less by US$6.9 million (para 5.11).Furthermore, the estimate is based on the conservative assumption that thesewage treatment process selected will be that employing the most mechanicalequipment (para 5.03). If pilot plant results demonstrate the acceptabilityof stabilization ponds as the treatment process the foreign exchange costsmight be reduced by US$5.1 million. Cost estimates are based on forecastDecember 1974 construction costs. They include 15% for physical contingenciesand a total of 40.4% for price increases over the duration of the project;price increases were calculated on the basis of an 8% per year inflation ratein Tunisia and the varying annual inflation rates for internationally procuredequipment and civil engineering works which are detailed in Annex 9. Projectcosts are summarized below:
PROJECT COSTS
Local Foreign Total Local Foreign Total-- D millions -US$ millions---
1. Trunk Sewer System (includinggravity sewers and pumpingstations) 1.98 3.82 5.80 4.65 8.98 13.63
2. Sewage Treatment:Renewal of Cherguia 0.11 0.95 1.06 0.25 2.25 2.50North Coast andOued Miliane Plants 1.14 2.40 3.54 2.69 5.62 8.31
3. Surface Drainage 0.94 1.82 2.76 2.21 4.28 6.494. Extensions 0.81 0.93 1.74 1.90 2.19 4.095. Renewals: Tunis - 1.74
Other Towns - 1.643.39 1.97 1.42 3.39 4.63 3.34 7.97
6. Establishment of ONAS 0.24 0.46 0.70 0.56 1.08 1.647. Land Acquisition 2.00 - 2.00 4.70 - 4.708. Engineering Services:
(a) Design and Supervision 0.24 0.96 1.20 0.56 2.26 2.82(b) Sfax study 0.01 0.04 0.05 0.03 0.09 0.12(c) Studies for Fifth Plan 0.15 0.60 0.75 0.32 1.43 1.75(d) Construction industry
studies 0.04 0.16 0.20 0.12 0.36 0.48(e) Land use studies (Greater
Tunis) 0.01 0.04 0.05 0.03 0.09 0.12
Base Cost Estimate 9.64 13.60 23.24 22.65 31.97 54.62
9. Phvsical Contingencies(15/ for 1-6) 1.08 1.77 2.85 2.54 4.16 6.70
10. Expected Price Increase 2.08 8.47 10.55 4.89 19.90 24.79
Total Expected Cost of Project 12.80 23.84 36.64 30.08 56.03 86.11
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D. Financing Plan
5.06 A Bank Loan of US$28 million to the Government of Tunisia is pro-posed, of which US$27.7 million would be onlent to ONAS under the terms andconditions of the Bank Loan. The remaining US$0.3 million would finance theland-use and construction industry studies. The terms assumed for the Loanand the onlending are 25 years including 4 years' grace with interest at theprevailing Bank rate. The period proposed is conventional for sewerage proj-ects and the grace period corresponds to the duration of project execution.
5.07 The proposed Bank Loan of US$28 million would cover about one thirdof the total project costs and about half of foreign exchange costs. Theremaining half of foreign exchenge would be provided by the Government fromits own sources and loaned to ONAS under terms and conditions acceptable tothe Bank. The execution of a subsidiary Loan Agreement acceptable to theBank, covering the onlending and lending to ONAS of the amounts referred toin this paragraph and in para 5.06, would be a condition of effectiveness.
5.08 The funds needed for local currency costs of the project, for thetotal investments outside the project and for working capital totalling aboutUS$99 million are expected to be partly financed by internal cash generation(US$30 million) and customers' contributions (US$22 million). The remainderof US$47 million would be financed by Government contributions 1/ towardsequity, and provision for these funds is included in the Fourth Plan. Agree-ment was reached that cost overruns of the project will be met by further Gov-ment contributions.
5.09 Annex 13 gives a forecast of the sources and applications of fundsfor ONAS. The following table shows the summary of the estimated total fundrequirements for the period of project construction (1975-1979) and the sourcesfrom which they will be met:
1/ The Government contributions include the transfer of all funds requiredto finance the sewerage component of the Tourism Infrastructure Project(Loan 858-TUN and Credit 329-TUN).
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1975 - 1979
Amounts in Millions
Dinars US$ %
Reguirements
Capital Expenditures - Project 36.64 86.10 56- Tourism Centers 10.00 23.50 15- Other 15.36 36.10 23
Increase in Working Capital 4.09 9.61 6
66.09 155.31 100
Sources
Internal Cash Generation 16.70 39.25Less: Debt Charges 3.96 9.31
Net Internal Cash Generation 12.74 29.94 20
Proposed Government Loan:IBRD Loan Proceeds 11.78 27.70 19Other Proceeds (Foreign Exchange) 12.22 28.70 17
Proposed Contributions:Government Contributions /1 20.00 47.00 30Customer Contributions 9.35 21.97 14
66.09 155.31 100
/1 The Government contributions include the transfer of all funds requiredto finance the sewerage component of the Tourism Infrastructure Project(Loan 858-TUN and Credit 329-TUN).
E. Project Administration and Execution
5.10 The consultants who prepared the feasibility studies for the GreaterTunis project have been retained by the Government to prepare bid documentsand supervise construction of the project. Coyne and Bellier will performthese tasks for the trunk sewer system, surface drainage and the evacuationcanals. ICN will be responsible for sewage treatment and the canal liftstations. The services supplied by these consultants in the past have beensatisfactory. The personnel of ONAS will prepare the bid documents andsupervise construction of the system renewals and extension in the Districtand other centers. Consultants will be retained to prepare the detailedfeasibility studies of projects to be included in the Fifth Plan, to carryout studies of measures to improve the capacity of the Tunisian constructionindustry, and to carry out a land-use study for the Lake area.
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5.11 The Tunisian construction industry lacks the capacity to carry outthe program of investments in public works foreseen in tlhe Fourth Plan,especially as it relates to the irrigation, water supply and sewerage sectors.This problem was referred to in the planning report of the Committee onHydraulic and Sewerage Infrastructure published in January 1973 and confirmedby a UNDP/ILO report on the construction and public works sector. The causesof the constraint are probably multiple and include a shortage of skilledworkers which exists in spite of the high rate of unemployment and under-employment in the country. The Committee on Hydraulic and Sewerage infra-structure proposed that a semi-public construction company be established andthat the balance of planned works be carried out by foreign contractors. Ithas been confirmed that the major drawback to the first solution is the in-creasing shortage of skilled workers. The use of foreign contractors notonly would increase the country's foreign exchange requirements but also wouldincrease total project costs since inflation on the international constructionmarket is proceeding at a higher rate than in Tunisia. Thus for the presentproject alone, the foreign exchange costs could be reduced by US$16.4 millionand total project costs by US$6.9 million if 40% of the major contracts werewon by local contractors (para 5.05). For these reasons a study of the in-dustry to determine measures whlch can be taken to increase its capacity andefficiency is needed and has been requested by the Government. Suggested termsof reference for such a study, which would include training as well as analysishave been prepared within the Bank and submitted to the Government (Annex 10).The cost of this study has been included in the project cost estimates.
F. Role of the Greater Tunis District
5.12 The undertaking of this project will make it possible to plan thefuture development of the land surrounding the Lake of Tunis, and indeed ofthe Lake itself, without the constraint imposed by the lack of pollutioncontrol facilities. This study would be undertaken by consultants underthe direction of the District and funds have been provided for this purposein the project estimates. Agreement has been reached that within three yearsof the date of the Loan Agreement, the District will review with the Bank land-use plans for the future use of the Lake area, and that within the five yearsthe Goverument will promulgate these land-use plans and thereafter ensurethat development proceeds in accordance with these plans.
5.13 This project will involve some of the most important investmentsin the Tunis area for a considerable period of time. For this reason theproject would be used as an occasion to strengthen the role of the Districtand establish in practice policies which the Bank has encouraged the Govern-ment to follow under the Tunis Urban Planning and Public Transport Project(Loan 737-TUN/Credit 432-TUN). The issuance of a Personnel Statute__i_of anadministrative circular defining more precisely the role of the District, bothdocuments to be acceptable to the Bank, would be conditions of Loan effective-ness. The District has agreed with the extent of the sewerage project covered iby the proposed Loan. A Project Agreement has been negotiated between theDistrict and the Bank outlining the District's role in the land-use studiesto be carried out under the project. Agreement was reached that an accord
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between ONAS and the District acceptable to the Bank defining future coopera-tion between the District and ONAS on the planning and implementation of thisand future ONAS investments in Greater Tunis would be concluded within fourmonths of the date of the Loan (Annex 18).
G. Land Acquisition
5.14 The Lake of Tunis is bordered by a strip of mostly unoccupied landvarying in width from zero (where a major road or a railway borders the Lake)to a maximum of about 1,500 meters at Megrine (Map 11175). This land, havinga total area of about 1,500 hectares (3,750 acres), is virtually uninhabitablebecause the Lake is offensive to sight and small; aside from being used forsome marginal farming, it serves mainly as a dumping ground for garbage. Thesale price of this land with the Lake in its present state would be aboutD 0.3/m (US$0.07/sq. ft.). ThS present selling price for immediately ad-jacent lands varies from D 15/m (US$3.28/sq. ft.) fronting on the MohamedV Boulevard to D 3/m2 (US$0.65 sq. ft.) south of Megrine. Following thecleaning up of the Lake it can be assumed that the price of land fronting onthe Lake will rise to the value of the adjacent land. Approximately 1,000hectares of this area belongs to registered owners, including about 570 hec-tares belonging to the state. The remaining 500 hectares of unregistered landarea consists of fill built up over the years. The benefits accruing to theowners of this lake front property as a result of the cleaning up of the Lakewill be considerable (para 7.02). These benefits should not accrue to indiv-idual speculators but to all of those who contribute towards financing projectcosts. In order to ensure that this will be the case, the Government wouldacquire the unbuilt land which does not now belong to the state. Agreementhas been reached that the Government will acquire these lands, within a peri-meter acceptable to the Bank, within twelve months of date of the Loan.
5.15 The sewer system, including trunk sewers will be constructed withinthe street allowances. Additional land may be required for the constructionof the pumping stations. The land required for the construction of the firststages of the North Coast and South Miliane treatment plants, and for theirfuture expansion, will have to be acquired by ONAS. The area required willbe significant if stabilization ponds are selected for the treatment process.Agreement was reached that the Government will ensure that procedures avail-able under law for expropriation or for the right of temporary occupancy willbe applied for the benefit of ONAS if they are requested.
H. Procurement
5.16 All major contracts for the supply of equipment, pipes, and civilworks would be awarded after international competitive bidding in accordancewith Bank Group "Guidelines". A margin of preference for local equipmentmanufacturers of 15% or customs duties, whichever is lower, has been requested.
5.17 The contract for works covering the complete rehabilitation of theCherguia sewage treatment plant and duplication of some units of the plant,costing about D 1.5 million, would be negotiated with the original supplier
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from whom a firm quotation has been received. This quotation is considerablylower than the estimated cost of this work prepared by the consultants.
5.18 Minor contracts for maintenance and the supply of equipment costingless than D 25,000 (US$59,000) subject to an aggregate of D 250,000 (US$590,000)would be awarded on the basis of competitive bidding advertised locally and inaccordance with ONAS' bidding procedures which are satisfactory to the Bank.
5.19 Tender documents for the supply of equipment and pipes whose valueexceeds D 20,000 (US$47,000) and civil works whose value exceeds D 100,000(US$235,000) would be submitted to the Bank for approval before bids are re-quested. Tender documents for construction contracts would be combined asfar as possible in order to encourage international competition.
I. Disbursement
5.20 The proposed Bank loan of US$28.0 million would be disbursed overfive years as follows:
(a) Equipment and Materials - 50% of the c.i.f. cost of imported(US$6.4 million) equipment and pipe; 50% of the ex-
factory cost of locally manufacturedequipment and pipe.
(b) Civil Works - 35% of all civil works contracts,(US$13.9 million) representing 50% of the estimated
foreign exchange components.
(c) Technical Services - 50% of the foreign exchange costs(US$2.1 million) of consultants for the design and
supervision of works and for thestudies.
(d) Unallocated - for physical and price contingencies.(US$5.6 million)
Disbursements made since June 30, 1974 for foreign exchange costs of consult-ants, minor civil works contracts and the purchase of sewer maintenance equip-ment, amounting to not more than US$400,000, would be payable retroactively.On completion of the project any undisbursed balance would be cancelled. Adisbursement schedule is given in Annex 11.
J. Environment and Health
5.21 The environment of the City will be greatly improved by this projectthrough the control of soil and surface water pollution (especially of theLake) with resulting improved public health and elimination of odors and othernuisances. The sewers themselves will be located underground and within exist-ing street allowances and will thus have no harmful effect on the ecology of
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the region concerned. Care is being taken to assure that the sewage treat-ment plants will have negligible permanent harmful effects on the environment.Following discussions with internationally known experts, it has been decidedthat the decision on whether to build stabilization ponds will be based inpart on whether the pilot plant operations indicate any undesirable environ-mental effects. New sewage treatment plant sites are located away frompresent development and sufficient land would be acquired around the plantsto avoid future nuisance complaints.
5.22 The mission endeavoured to obtain reliable public health statisticsrelating to waterborne diseases. Annex 3 is a graph showing the incidence ofreported cases of typhoid and paratyphoid, two diseases commonly carried bywater. The accuracy of the data on which this graph was prepared is contin-uously improving. The decree requiring reporting of these diseases was onlypassed in December 1969 and in 1971 the number of cases reported for thesediseases was only two-thirds of the number hospitalized. The percentage ofillnesses treated and reported is rising, and the trend of the curves forthese diseases indicates a decline in the frequency of these diseases sincethe reporting procedure became a legal requirement. It is probable that thistrend can be related to improvements in the quality of water supplies andthe percentage of the population thus served (paras 2.02 and 3.03). In spiteof this considerable progress, infectious and parasitic diseases still rankedthird in Tunisia as a cause of death in 1972, accounting for 8.7% of allreported deaths. (Deaths related to childbearing accounted for 30.9% andrespiratory illnesses 13.5% of reported deaths). The frequency of incidenceof the diseases investigated is of the order of 100 times the frequency withwhich they occur in developed countries. While further reductions in water-borne disease will depend to a large extent on further improvements in publicwater supply and personal hygiene, there is no doubt that improve seweragefacilities will also contribute significantly to such a reduction, by collect-îng sewage from areas presently without collection systems, by eliminatingcauses of flooding and backing-up of existing sewer systems and by eliminatingpollution of the receiving waters. The incidence of typhoid and paratyphoidwould be one of the monitoring criteria of the project (Annex 12). Thus anyminimal short-term environmental nuisances during the construction period willbe negligible by comparison with the future benefits to health and the environ-ment.
K. Monitoring and Key Project Indicators
5.23 In order to monitor project performance against targets it is pro-posed to monitor selected physical, public health and financial criteria(Annex 12). Agreement has been reached that ONAS would carry out the agreedmonitoring program, collect data from other sources from which it is availableand include these statistics in its quarterly reports to the Bank.
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VI. FINANCE
A. General
6.01 Although the Law establishing ONAS provides for its financial au-tonomy, financial policy decisions will be subject to prior approval by theGovernment or the controlling Ministry. These limitations of financial re-sponsibility are set out in the Law, e.g. establishment of sewage tariffsand taxes, investments, borrowings, statute and emoluments of personnel,annual budgets and annual balance sheets.
6.02 ONAS' basic capital requirements including initial working capitalwill be met by the Government in the form of capital contributions and by aLoan (paras 5.06 and 5.07). A third source of finance will be contributionsfor extensions by urban sewers. Fronting proprietors presently pay part ofthe cost of these extensions to the municipalities but in the future the fullcost will be paid directly to ONAS.
6.03 The Government's contributions will be partly disbursed in cash tomeet capital expenditures, and partly donated in kind by the transfer of theexisting sewerage systems throughout the country. In order to compensatethe municipalities for assets to be transferred to ONAS the Government willtake over the complete debt service on these installations as and when trans-ferred to ONAS as provided for in the Law. The total amount outstanding forthese loans as of April 1974 was D 1.6 million, out of original borrowingsof about D 2.3 million. Since the transfer of systems will be realized from1975 to 1978 in accordance with a time-table (Annex 5) the long term commit-ment of the Government in this respect will be less than D 1.5 million. Thetrue value of the existing assets transferred to ONAS in exchange will how-ever be considerably more at 1974 prices, even though written down by depre-ciation according to their age and condition. A provisional net assessmentfor them is D 14 million, which will be introduced into ONAS' balance sheetsover the take-over period; agreement has been reached with ONAS that an in-ventory of all existing installations handed over to ONAS will be carried outand the subsequent evaluation will be performed within two years after theirrespective take-over.
B. Revenues
6.04 The revenues necessary to cover operating expenses, depreciationand interest and to provide a modest surplus will be derived from four sources:
(a) General tariffs for sewerage services;(b) Municipal levies;(c) Government subsidies in aid of general tariffs;(d) Sale of by-products and services.
6.05 The general tariffs for sewerage services will be charged on waterconsumption. This decision was partly based on the fact that water supply of
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SONEDE is metered in all parts of the country and thus billing data are avail-able for ONAS without additional expense. Moreover the sewerage tariff basedon water consumption is considered to be the fairest solution since:
(a) The size of collectors and treatment plants depends on thequantity of sewage, which in turn is a function of consump-tion of potable water.
(b) Variations in individual household water consumption reflectthe willingness and ability to pay for the combined water andsewerage services.
(c) Sewage tariffs, added to water tariffs which are based onmetered consumption, will tend to discourage wasteful useof water which is a scarce resource in Tunisia.
6.06 The proposed tariffs are calculated as a basic rate for all cus-tomers with a water consumption of more than 40 m3 per quarter. Industrywould pay higher rates because of its greater pollution discharge and touristestablishments would pay higher rates due to their seasonal peak requirements.On this basis the general tariff charged to domestic customers in relation totheir water consumption would be a rate3of 8 millimes/m3, to industry 23 mil-limes/m3 and to tourism 15.5 millimes/m (rising by 50% in 1979 to reflectexpected inflation). However, this charge includes not only sewerage collec-tion and disposal, but also the cost of treatment and environmental improve-ments.
C. Government Subsidy
6.07 The municipal levies will be a contribution partly calculated on thewater consumed in each municipality, but with the addition of a fixed component,and recovered by each municipality through municipal property taxes, includinga special sewerage tax.
6.08 Since the revenues from general tariffs, from services and sales ofby-products and from municipal levies would cover the operating expenses, butonly part of depreciation, the Government has decided to support the operationalneeds of ONAS by subéidies which will in fact balance the annual operating ac-count. The subsidies are partly justified by the fact that the proposed proj-ect would benefit a wider section of the community than the population actuallyconnected to the system, and they are covered by the increases in the value ofthe land surrounding the Lake (para 6.09).
6.09 Improved sewage collection and dcLsposal and extended connection ofurban dwellings to the systems will provide health benefits to the country.The investment in trunk collectors, treatment and disposal works is for theprotection of the whole environment. Such facilities make up a substantialpart of the project, represent about half the value of existing installations,and moreover, account for the bulk of operating expenses of ONAS.
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6.10 The financial benefits accruing to the public from the increase invalue of the land surrounding the Lake, are expected to be more than sufficientto cover the subsidies to be transferred to ONAS through the Government budget.The average annual amount of the subsidy foreseen during the initial years ofONAS' operations would be approximately equal to 9% interest on the presentvalue of the benefit from the increases of land values discounted at 10%. Thesubsidy would be D 980,000 in 1975 (equivalent to 16 millimes/m3, or US$0.14/1000 gal): 25 millimes/m3 (US$0.22/1000 gal) in 1976: and 40 millimes/m3
(US$0.36/1000 gal) from 1977, based on water consumption by sewered customers.The consumption basis encourages a better financial management than would afixed annual amount and would, if so desired, facilitate the gradual abolitionof the subsidy without affecting financial forecasts and budgetary requirements.Agreement was reached that such a subsidy would be granted by the Governmentand its level would be reviewed every five years on the basis of an equitableallocation of charges between the proprietors and occupants of sewered premisesand the community in general. The first review would take place not later thanJuly 1, 1980, and the subsidies proposed at each review would require Bankapproval.
6.11 ONAS' revenues from proposed tariffs and sewerage levies and fromGovernment subsidies are shown below, expressed as an average per m3 duringthe periods indicated.
1975-1978 As from 1979
Mill/m ($/1000 gall) Mill/m3 ($/1000 gall)
Domestic customers less than40 m3/quarter 13 12 13 12
Domestic customers more than40 m3/quarter 21 19 25 22
Tourism 28.5 25 36 32
Industry 36 32 47.5 42
Government Subsidy 30.3 27 40.0 46
The implementation of a tariff structure acceptable to the Bank would be acondition of effectiveness of the Loan.
6.12 Other revenues will arise from the sale of by-products (treatedwater for irrigation and sludge) and from such services as cleaning andrepair of house connections. (The installation of new house-connectionsis not included in ONAS' work program, but is to be executed by contractorsat the expense of fronting proprietors.) The present market prices for theby-products as assumed for projection purposes (e.g. irrigation water 4-16millimes/m3 and sludge 500 millimes/ton) probably do not reflect their realvalue and the revenues from this source may be increased by improved market-ing methods (e.g. treated water for tourist parks and gardens has a high sub-stitute value compared to the water tariff of 150 millimes/m3).
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6.13 In order to make it possible for the lower-income customers to con-nect to the sewer systems, it is proposed that credit facilities be made avail-able for financing of house connections in already built-up regions. Similarcredit for financing of extensions to sewer systens in such regions would alsobe provided. The existence of these credit facilities, expected to provideinterest free financing over a 4 year period, would help to ensure that theconnections will be made as soon as technically possible. Agreement has beenreached with the Government that such credit facilities would be made avail-able.
6.14 In the course of the period 1975-1981 the composition of the totalrevenues of ONAS will vary from year to year; the following break-down bypercentages for the different sources therefore represents the total incomefor the period:
Sources of Revenues D Million %
Sewerage Tariffs charged directly 8.69 19.3Consumers levies collected throughmunicipalities 8.41 18.6
Subsidies 24.69 54.7Other Revenues 3.34 7.4
Total 45.13 100.0
C. Financial Performance
6.15 The projected Income Statements, Cash Flow Statements and BalanceSheets for ONAS from 1975 to 1981 are shown as Annexes 13, 14, and 15. Allfigures are based on assumptions given in Annex 16 of which the most impor-tant ls the tariff and subsidy policy as outlined in paras 6.04 to 6.09.
6.16 The Income Statements (Annex 13) show that ONAS would have a rela-tively good operating ratio (operating expenses including depreciation inrelation to revenues) with an average over the projected period of 69%. Therate of return is higher than 3% (except in 1980, when it would be 2.8%). Itenables ONAS to provide for a sufficient cash generation in accordance withthe proposed financing plan.
6.17 The Cash Flow Statements (Annex 14) reflect the large requirementsin capital. ONAS through its considerable internal cash generation would pro-vide 20% of financing of its investments during the period of project construc-tion and 25% of its investments during the period 1975-1981. Agreement wasreached to the effect that ONAS would obtain an annual internal cash ratio ofnot less than 4.0% of its net fixed assets plus work in progress. It is notanticipated that ONAS will need to raise further loans, but the possibilitycannot be ruled out. Agreement has been reached with ONAS that no debt would
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be incurred without the Bank's agreement unless net revenue at the time ofincurrence, before depreciation and interest, are at least 1.5 times theannual debt service on the proposed loan and existing debt.
6.18 The Balance Sheets (Annex 15) show that while ONAS' equity comes inthe first years mainly from the Government, either by the handover of existinginstallations or in cash, contributions from frontage proprietors and retainedsurplus together increase to about 30% of total equity by 1981. The existingfixed assets are shown at provisional values (para 6.03), subject to finalassessment within two years after taking-over. The depreciation rates ONASproposes to use for fixed assets are conservative, averaging at 3.5% per year;part of the total (relating to consumer financed extensions) is deemed to bewritten off the relevant contributions instead of being shown as an expense.
VII. JUSTIFICATION
A. The Project
7.01 Works included in this project can be classified into three cate-gories:
(i) trunk sewers and sewage treatment plants for pollution con-trol in Greater Tunis;
(il) extensions to and renewals and renovation of existing sewersystems in Tunis and elsewhere in the country; and
(iii) engineering services and technical assistance for the prep-aration of feasibility studies of projects included in theFifth Plan, the establishment of ONAS, the preparation of land-use plans for the Lake of Tunis area and to provide advice andtraining on increasing the capacity of the construction industry.
B. Greater Tunis Pollution Control Measures
7.02 The facilities to be built represent the least-cost solution forthe disposal of sewage from the District. It was selected after study bythe consultants of 20 possible solutions. The principal direct benefit fromthis part of the project would be the increase in value of the strip of pres-ently undeveloped land surrounding the Lake of Tunis (para 5.13). It is as-sumed that 75% of this land (1,175 ha) would be valued at D 5/m if the Lakewere unpolluted, instead of its present value of 300 millimes/m2. (The re-maining 25% is assumed to be used for streets and other uses unaffected bythe polluted Lake.) The benefits resulting from this increase in value areassumed to accumulate between 1979, one year after completion of this project,and 1983. The costs of a second stage of pollution control measures (to beconstructed between 1982 and 1986) have been included in the economie evalua-tion since they will be required to maintain the benefits of the first stage(Annex 16).
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7.03 Other benefits from the pollution control works will be increasedrevenue to the fishing industry and revenues from the sale of treated wastewater for irrigation and digested sludge for use as fertilizer. Benefitsfrom increased revenue to the fishing industry and from the sale of treatedsludge are minimal and have little effect on the viability of the project.Although the benefits from the sale of treated waste water for irrigationwill become substantial by 1990 (revenues from this source being 2.5 timesthe operating and maintenance costs in that year), they are too far intothe future to significantly affect the internal rate of return.
7.04 The internal economic return for the pollution control project is24.9%. It would exceed 10Z even if:
(a) total costs increased 50%;
(b) the benefit from the increased value of the land was reducedfrom D 4.7/m2 to D 2.6/m2.
7.05 Benefits are understated to the extent that they ignore tourismbenefits resulting from protecting the adjacent beaches of the Gulf of Tunisfrom pollution as well as the unquantifiable benefit to the quality of lifearising from ridding the whole District of the obnoxious odor from the Lakeduring the summer months.
C. Sewage Collection (Evacuation) System
7.06 If willingness to pay is the measure of the benefits of renovation,renewal, maintenance and operation of sewer systems, then these benefitsshould be calculated jointly with those for water supply (Annex 16). Inthe case of Tunis the nature of the judgments required to separate the costsand benefits of the local water supply and sewerage system from those of thenational systems with which they are integrated are such that this calcula-tion and its result would be illusory. The unquantifiable benefits resultingfrom the construction of the sewer system will be improved public health andenvironment within the project area.
D. Engineering Services and Technical Assistance
7.07 The cost of these services is only 4% of the cost of the project.The engineering services for the preparation of feasibility studies of proj-ects to be included in the Fifth Plan and for the establishment of ONAS wouldproduce benefits many times their cost by making it possible to obtain maxi-mum benefit from existing sewerage installations throughout the country.Technical assistance to suggest measures to increase the capacity of theTunisian construction industry could aid in reducing the costs of all proj-ects (including those already financed by the Bank) while at the same timeincreasing employment in the local construction industry (Annex 10).
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VIII. AGREEMENTS REACHED AND RECOMMENDATION
8.01 During Loan negotiations, agreement was reached with the Governmentthat it will:
(i) make any change in the post of President/Director Generalonly after the Bank has been given a reasonable opportunityfor an exchange of views (para 4.03);
(ii) issue not later than twelve months after the date of the Loana personnel statute applicable to ONAS, acceptable to the Bank(para 4.04);
(iii) transfer sewerage systems to ONAS in accordance with an agreedtimetable which is to be submitted to the Bank within four monthsand agree any changes with the Bank (para 4.05);
(iv) provide or ensure provision of all financing required for theproject (paras 5.07 to 5.09);
(v) ensure that development within the area surrounding the Lake ofTunis will proceed in accordance with land-use plans preparedby the District (para 5.12);
(vi) acquire land fronting on the Lake within twelve months of thedate of the Loan (para 5.14);
(vii) ensure that procedures available under law for expropriationor right of temporary occupancy will be applied for the benefitof ONAS (para 5.15);
(viii) subsidize the sewerage tariff in a manner acceptable to the Bankand will review its subsidy level every five years, subject tothe Bank's agreement (para 6.10);
(ix) make credit facilities available to low-income consumers throughONAS for the construction of house connections and extensionsin already built-up regions (para 6.13).
8.02 During Loan negotiations, agreement was reached with ONAS that itwill:
(i) make initial appointments to the posts of Deputy Director-Generaland Director of Finance and Administration, and any change in thesepositions during the execution of the project, after consultationwith the Bank (para 4.03);
- 24 -
(ii) establish a training division and submit to the Bank for commenta detailed training program for its personnel within one yearof the date of the Loan Agreement (para 4.04);
(iii) have its accounts certified by an independent external auditoracceptable to the Bank (para 4.09);
(iv) within four months of the date of the Loan Agreement enter intoan Agreement with the District acceptable to the Bank definingtheir mutual relationship and responsibilities (para 5.13);
(v) follow reporting procedures acceptable to the Bank for themonitoring criteria described in Annex 12 (para 5.23);
(vi) prepare an inventory of installations transferred to it andestablish their value within two years (para 6.03);
(vii) modify its tariffs as necessary in order to ensure a cash ratioof not less than 4.0% (para 6.17);
(viii) not incur any new debt without the Bank's agreement unless netrevenues are at least 1.5 times future debt service (para 6.17).
8.03 During Loan negotiations, agreement was reached with the Districtthat it will review land-use plans for the optimum use of the Lake area andthe surrounding land with the Government and the Bank within three years ofthe date of the Loan Agreement (para 5.12).
8.04 Before the Loan is made effective the Bank would be satisfied that:
(i) a Decree has been promulgated enabling ONAS to carry out itsoperations in the District and the Tourism Zone (para 4.06);
(ii) an agreement acceptable to the Bank has been entered into byONAS and SONEDE establishing a joint billing and collectionprocedure (para 4.10);
(iii) a Subsidiary Loan Agreement acceptable to the Bank has beenconcluded between the Government and ONAS (para 5.07);
(iv) the Governnent has promulgated an administrative circular(circulaire d' application) defining more precisely the roleof the District and a Personnel Statute for its employees, bothdocuments to be acceptable to the Bank (para 5.13);
(v) an acceptable tariff structure has been implemented by ONAS(para 6.11).
- 25 -
8.05 On the basis of agreements reached during negotiations on the issuesreferred to above the Urban Severage Project forms a suitable basis for a Bankloan of US$28 million for a period of 25 years including a grace period of 4years.
ANNEX 1
TUNISIA
FIRST URBAN SEWERAGE PROJECT
Previous Related Loans and Credits
Water Supply Projects
Loan 581-TUN First Water Supply Project; US$15 millionloan of January 16, 1968;Closing Date: (original) December 31, 1973
(current) December 31, 1974
Credit 209-TUN Second Water Supply Project; US$10.5 millioncredit of June 30, 1970;Closing Date: December 31, 1974
Credit 989-TUN Third Water Supply Project; US$23.0 millionloan of May 29, 1974;Closing Date: June 30, 1979
Because of problems with locally manufactured asbestos-cement pipecompletion of the First Project was delayed and the Closing Date of the Loanwas extended. It now appears possible that constraints resulting from lack ofcapacity in the local construction industry may make it necessary te set backthe closing date by a further six months. Final project costs are expected tobe about 6% below appraisal estimates (but 7% higher in dollar terms becauseof devaluation). The Second Project is 12 to 18 months behind schedule forthe same reasons as well as because of initial delays in final design. Finalcosts may be slightlv higher (say 5%) than original estimates because of cur-rent inflation rates, but they will be 20-25% higher in dollar terms. Becauseof delays in execution the Closing Date will have to be extended. The loanfor the Third Project became effective September 24, 1974. The financialperformance of SONEDE is satisfactory. Water rates have recently been in-creased in order to ensure a satisfactory rate of return.
Tourism Infrastructure
Loan 858-TUN and Credit 329-TUN (2/28/72)
The estimated total cost of sewers, water, roads, electricity, tele-communications, planning and promotion under this project is US$55 million,of which $8.18 million is for water supply and $16.64 million is for sewerage.Construction of some of the sewerage works, including the experimental stabil-ization pond at Rades, has already begun (about 12 months behind schedule).Tenders have been received for the remaining sewerage works and constructionwill be underway before the end of 1974 and completed on schedule.
ANNEX 2Page 1
TUNISIA
FIRST URBAN SEWERAGE PROJECT
Existing Sewerage Systems
A. General
1. Traditionally in the built-up areas there was a separation betweensevage and other used household water (dishwater, washwater, etc.). The firstwas directed to cesspools where it liquified and filtered through the soil.The latter flowed through open ditches, eventually discharging to a water-course or drying up. Depending on the financial resources, locality and otherfactors, these open ditches were gradually replaced by pipes, in an empiricalmanner, in order to displace the hazards from the center of the built-up areas.With the construction and extension of these pipes into sewer systems, thecesspools are gradually disappearing. The householders discharge not onlysewage and other household wastewater, but also rainfall runoff from theircourtyards into these makeshift sewer systems. Nevertheless some cesspitsremain in all of the municipalities and in some they are still the principaldisposal method.
2. In the cities which had sewer systems before 1960, the oldest partsare in the medinas and are combined systems carrying both stormwater anddomestic waste, built of stone or clay pipes about 1910-1920. In generalthese systems are saturated and with the slightest rainfall they overflowthrough manholes and catchbasins, polluting the neighborhood. The regularblockages in these sewers are an indication of their poor condition. Morerecent systems have been built as the cities have developed but these sufferfrom a lack of planning and design so that in some cases gravity connectionsbetween parts of the system are impossible, in others the slopes of the pipesare so weak that the systems suffer from regular blockage and emission of foulodors. An indication of the state of these systems is given by the consultantswho report that in the sewer systems they investigated, more than half of themanholes, grit traps and other sewer accessories were out of service. Of 27sewage lift stations visited only 5 were functioning. Eight of the munici-palities have some form of treatment for at least part of their sewage, butall of the treatment plants are overloaded or malfunctioning.
3. In the 21 communities studied by the consultants, a total of 562persons are employed in the sewerage sector of which 350 (62%) are employedby the municipality of Tunis. Among the 562 persans there are only about 25technicians having skills directly related to sewerage. The majority of thepersonnel are unskilled workers and laborers. The municipalities of Tunisand Sfax each have one mechanical sewer cleaning device, providing only afraction of the capacity required. In any event these are of no value inthe medinas where the streets are too narrow to accommodate them and thesewer diameters are too small. In general, sewer cleaning is undertakenmanually and then only at those points where weaknesses such as blockageor frequent overflowing occur.
ANNEX 2Page 2
4. Aside from the obvious constraint of shortage of funds in a devel-oping country, the poor state of the sewerage sector resulted from the mul-tiplicity of responsible authorities. Three ministries, the municipalitiesand three state agencies were involved in the sector:
(i) The Division of Urban Hydraulics of the Ministry of Equipment(created in 1974) coordinated the needs of the various communesand established an annual program of studies which were under-taken by its own forces or by consultants. Part of the budgetof the Ministry of Equipment was set aside for the state finan-cing of sewerage works; under a Decree of March 10, 1960, thecost of sewer construction was born 16% by the fronting pro-prietors, 42% by the municipality and 42% by the state. Thefinancing of treatment works was determined on the merits ofeach case.
(ii) Ministry of the Interior which controlled the administrationand management of the municipalities and which authorizedexpenditures for sewerage works.
(iii) Ministry of Public Health which was responsible for the or-ganization and control of public hygiene, including the con-trol of the quality of effluent from the sewage treatmentplants.
(iv) Municipalities were responsible for the operation and mainten-ance of their sewerage works and for the application of re-gulations concerning roads (drainage) and public health. Themunicipalities had the power to collect property taxes forthe services they rendered.
(v) Office National du Tourisme et du Thermalisme (ONTT, theNational Tourism Authority) which was responsible for allinfrastructure in the tourist zones and financed the con-struction cost of sewerage works therein.
(vi) The National Water Authority, SONEDE, which by decree wasresponsible for the operation and maintenance of sewerageinstallations within the tourist zones, but had refused toundertake these duties because most of the plants were in-operable and SONEDE had neither the personnel or the budgetto undertake their rehabilitation.
(vii) The Greater Tunis District, which was granted the authorityto approve all infrastructure planning and investments inthe thirteen municipalities within its jurisdiction.
ANNEX 2Page 3
B. Greater Tunis
5. The most important elements of the existing sewerage system inGreater Tunis are shown on Maps IBRD 11211, 11212 and 11213. Despite theexistence of a rather complete system which serves about 90% of those con-nected to the public water supply system, the sewerage of Tunis is far fromadequate. The deficiencies of the system are felt during the hot summermonths when unsavoury odors emanate from the Lake of Tunis and some of theolder parts of the City and in winter during the rainy season when thesewers overflow and sewage stagnates in the low-lying central area of theCity. In some of the so-called "popular quarters" which are rapidly becom-ing slums sewer systems are inadequate or non-existent. Most of the housingin these quarters, built without planning, is not connected to the sewer sys-tem and waste is discharged into the streets or neighboring empty lots byshallow ditches. In the Medina, overcrowding due to rapid and uncontrolledimmigration results in volumes of sewage in excess of the capacity of thesystem.
6. In the modern part of the city, inadequate slopes and even counter-slopes caused by the movement of the unstable sub-soil prevent the normalevacuation of sewage. In periods of rain, the barrier created by BoulevardMohamed V, whose pavement is constructed at a level higher than the adjacentstreets, prevents the drainage of the water which overflows into the streets.In dry periods, the effluent stagnates in the sewers releasing corrosivegases which attack the concrete pipes. In addition, the overflow weirs fromthe sewers into the Lake of Tunis are too low, and wind-caused tides forcethe salt water of the Lake back into the sewer system. The volume of sewagecollected far exceeds the capacity of the principal pumping stations and thesewage treatment plant. More than half of the sewage collected is dischargedinto the receiving waters with little or no treatment and has created aeutrophic condition in the Lake of Tunis beyond the possibility of restora-tion by self-purification.
7. Within the technical services ôf the municipality of Tunis thereis a sewerage division employing approximately 350 persons, including about20 technicians and specialists. The remainder are skilled workers, ordinaryworkers and laborers. The equipment at their disposal, excluding one sewercleaning machine, is basically for transportation. About 40 men are employedin the maintenance and operation of the pumping stations and the same numberat the Cherguia treatment plant. The municipal budget for maintenance andoperation of the sewerage works in 1972 was D 237,000 (US$557,000) of whichD 170,000 was for salaries.
Annex 3
TUNISIA FIRST URBAN SEWERAGE PROJECtINCIDENCE OF SOME WATERBORNE DISEASES 1
30 A a
T \phoid and paratyphoid(National Average)
o 10 r 2 0_
a)c-
io
1968 1969 1970 2/ 1971 1972
1/ Based on data provided by the Ministry of Public Health. The curvesindicate reported cases and not the reai frequency. Many cases arenot treated by doctors and not ail cases treated are reported.
2/ The incidence of typhoid and paratyphoid in Canada in 1970 vas 0.3per 100,000 population. Worid Bank-9052tR)
TUNISIA
FIRST URBAN SEWERAGE PROJECTONAS - Projected Organization Chart
Financial __ LTechnicaliI Controller |- Board of Drectors Controller
|Presidr t
and GePneral Manager
l~~~~~T {eaa Suhr Nrh
Deputy General Manager|
|Finance & Administrato | | Engineerinig Nevv Works Opertion
L aboratory 5gCodnto
|~~~~~~Amnsr P _. .e_ uPersonnel ~~~Finance Services Studies Peprateon VWorks Wourkshop
-|~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ui Ces Accontin |l ther
Reg|o Reg,on Rinee on
World Bank 9033
Annex 5
TUNISIA - FIRST URBAN SEWERAGE PROJECT
PROBABLE SCHEDULE OF TAKE-OVE Olf SEWEKM) SYSTE!S
During During During DuringBeg0 of 1975 1975 1976 1977 1978 j
Tunis Southern North Group of All remainingsuburbs of suburbs of Akouda urban systems
Gabès Tunis Tunis
El Hamma Sfax Kairouan Group ofMoknine
Kélibia Monastir Bizerte Le Kef
Treatment plants Gafsa Zaghouan Béjaof Monastir andMenzel Bourguiba Sousse Menzel Sidi Bouzid
BourgibaGrombalia
JendoubaAil Tou,rism Zones
Mahdia
Tozeur
Menzel Bou-zelfa
ANNEX 6
TUNISIA - FIRST URBAN SEWERAGE PROJECTConnections GROWTH OF WATER AND SEWER CONNECTIONS(Thousands)
350 350
300 300
SONEDE's Cumulative WaterConnections
SON EDE's Cumulative WaterConnections in
250 - Urban Areas 250
200 200
ONAS' Cumulative SewerConnections(Take-over 1975-1978 plus
; . st....t.s Extensions 1975-1981)
150 150
1 00 '00000 ~~~~~~~~~~~~~~~~~~~~~~~100
_0 _50
01 O
100% - 4 - _ - - 10 100%% of Urban Water Customers Served by ONAS b y r
- % ot Total COnneCted Water Customers Served by ONAS
- oft-Cn - ----
50 50% of Total Population Served by ONAS
1.1.75 1975 1976 1977 1978 1979 1980 1981
Year End
World Bank-9220
ANNEX 7Page 1
TUNISIA
FIRST URBAN SEWERAGE PROJECT
Project Description
1. The following is a detailed description of works to be undertakenin Greater Tunis:
A. Sewer Systems
(i) City of Tunis
- Improvements to the combined sewer system in thecity of Tunis.
- lModifications to existing stormwater overflows.
- Construction of six new overflows on existingcollectors (including northern collector, Oued Hitti).
- Transfer of the dry-weather flow of Oued Hitti andpossibly of Oued Rorich to the proposed Monplaisirsumpp.
- Construction of the Oued Menez combined collectorbetween Highway X and the northern collector.
- Recalibration and repair of various collectors.
A program of tertiary system renewals and extensions.
Mlohammed V lift station.
- New Monplaisir pumping station and repair of theexisting station.
- Supplementary force main between Monplaisir and theCherguia treatment plant (length 4,000 m).
(ii) Northern Suburbs
- Main collectors along hlighway X with the four lateralsproposed for the Ras-Tabia and Ariana-Menzah programs(total length 17,500 m).
- Pumping station and force main.
ANNEX 7Page 2
(iii) Western Suburbs
- Pumping station and force main.
- Collectors (total length 11,900 m).
- Melassine pumping station and force main.
(iv) Southern Suburbs
- Djebel Djelloud collector to pumping station (length1,200 m).
- Three pumping stations and force mains.
- Megrine Coteaux collector to pumping station.
- Ben Arous collector (length 500 m).
- Fonndouk-Choucha collector (length 3,500 m).
- Collector to the South Miliane treatment plant(length 1,600 m).
(v) Southern Coastal Area
- Hamman-Lif collector.
- Pumping station and force main, followed by a gravitycollector to Ez-Zahra (length 2,250 m).
- Pumping station and force main to the South Milianetreatment plant (length 2,300 m).
(vi) Northern Coastal Area
- Carthage-La Goulette collector.
- Pumping station (serving La Goulette) and force main.
- A collector protecting the northeast corner of thenorthern section of the Lake.
- Pumping station (serving Sidi Bou Said and La Marsa)and force main, followed by a
- Gravity collector to station.
- Three lift stations and force mains to the North Coasttreatment plant.
ANNEX 7Page 3
- Collector serving the northern tourist zones (length2,000 m).
- Other possible collectors (total length 3,200 ni).
B. Storm Water Drainage
(a) City of Tunis
- Northern Lake channel and lift station.
- Works tying all the collectors situated downstreamfrom the stormwater overflows (storm water or combinedsewage) into this channel; also, if this solution shouldbe selected, installations connecting the end of thetreated sewage disccharge from the Cherguia plant tothis channel.
(b) Northern Suburbs
- Oued Guereb collector, between Highway X and the con-fluence with Oued Rorich.
- Oued Rorich collector, between Highway X and the con-fluence with Oued Guereb.
- Lower Oued Rorich collector, from the Guereb-Rorichconfluence to the northern Lake channel.
(c) Western Suburbs
- Ras Tabia collector.
- Probably, new Le Bardo collector and channel.
(d) Southern Suburbs
- Southern lake channel and lift station.
- Works tying all the proposed collectors (storm wateror combined sewage) into this canal.
- Bir Kassa Miliane channel.
C. Sewage Treatment Plants
(i) Rehabilitation of La Cherguia treatment plant and increasingits capacity to serve an equivalent population of 800,000persons.
ANNEX 7Page 4
(ii) Cotiere du Nord, a new treatment plant serving the NorthernTunis tourism zone, Carthage and La Goulette (populationequivalent 160,000).
(iii) South Miliane, a new treatment plant serving the Tunis Southindustries residential areas (population equivalent 500,000persons).
D. Treated Sewage Outfalls
(i) La Cherguia: new outfall pipe to the navigation channel.
(ii) Cotiere du Nord: pumping station and treated sewage force-main to the Gulf of Tunis.
TUNISIA FIRST URBAN SEWERAGE PROJECTCONSTRUCTION SCHEDULE AND STUDY TIMETABLE
1974 1975 1976 1977 1978 1979
1 2 3 4 1 2 3 4 1 | 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
WORKS _ - - _ Collector System pe.UI{ 5_ a m *
Treatment Plants _ - - -
Cherguia hum j - -
North Coast 'J -, , -, -, . _ _ _
South Miliane ' --a - -
Pumping Stations and Forcemains _Extensions MIw - - - - a - - - - _
Renewais -- -
Tunis mi--
Other Towns M- L - -
Evacuation Canais ~-
Canal Lift Stations l-,,,, - - -
Surface Drainage mI I II_ - - -
STUDIESrConstruction Industry | IV Plan
Design & Review of * _ Tendering and _ Supply, Instatiation Cs
Tender Documents Contract Award or Construction Worid Bank-9051
TUNIS IA
FIRST URbAN SE2IEÇAGE PROJECT
EST1N4TED AIINUAL PROJECT XPNDITURES(Mlillion Din,ars)
Poreign Total 1974 1975 1976 1977 1978Eochangeo/ Total Local Foreign Total Foreign Total Foreign Total Foreign Total Foreign Total Foreige
-Exohacao 8xclhange E_lchana - Ex-hange Exchango Exchange
1. Collector Systoeo 5.80 1.98 3.82 0.96 0.62 2.07 1.48 1.48 0.68 1.29 0.84Pnsping Stations Civil Works 65 1.00 0.35 0.65 0.20 0.14 0.43 0.28 0.20 0.12 0.17 0.11Punping Stations Eqnipsent 85 0.90 0.13 0.77 0.51 0.44 0.13 0.11 0.26 0.22Force-Mains 72.5 1.65 0.45 1.20 0.37 0.27 0-83 0.60 0.19 0.14 0.26 0.19Collectors 53.5 2.25 1.05 1.20 0.39 0.21 0.30 0.16 0.96 0.51 0.60 0.32
2. Sevago TreatmenC 4.60 1,25 3.35 O.S3 0.61 0.75 0.62 1.62 1.11 1.38 1.01_ Civil Worko 65 2.81 0.98 1.83 0.57 0.37 0.10 0.07 1.30 0.84 0.84 0.55- Equipoent 85 1.79 0.27 1.52 0.28 0.24 0.65 0.55 0.32 0.27 0.54 0.46
3. Surface Drainage 65 2.76 0.94 1.82 0.55 0.36 0.74 0.49 0.78 0.52 0.69 0.45
4. Bxtensios 53.5 1.74 0.81 0.93 0.43 0.23 0.44 0.23 0.43 0.23 0.44 0.24
5. Renowals 42 3.39 1.97 1.42 0.35 0.15 1.32 0.55 0.93 0.39 0.40 0.17 0.40 0.16
6. EotablishQent of OFAS 65 0.70 0.24 0.46 0.19 0.13 0.50 0.33
7. Land Acquisition - 2.00 2.00 - 2.00 -
8. Engineering(a) Desigo & Supervision 80 1.20 0.24 0.96 0.30 0.24 0.50 0.40 0.20 0.16 0.20 0.16(b) Sax Study 80 0.05 0.01 0.04 .. 0.05 0.04(c) Studies for V. Plan and Constr. Industry 80 1.00 0.20 0.80 0.50 0.40 0.50 0.40
Basa Cnst Estitares 23.24 9.64 13,60 0.84 0.52 7.66 3.54 5.63 3.77 4.91 3.07 4.20 2.70
9. Physical Contingencie 2.95 1.08 1.77 0.08 0.04 0.69 0.41 0.74 0.48 0.71 0.44 0.63 0.40(15% for 1-6y
10. Expected Price Ts cre..ee/ 10.55 2.08 8.47 - - 1.56 1.23 2.30 1.89 3.14 2.50 3.55 2.85
Total Expaeted Cost nf Projoot 65 36.64 12.80 23.84 0.92 0.56 9.91 5.18 8.67 6.14 8.70 6.01 8.38 5.95
1A Ât Oecember 1974 Prions.
2/ aeung all oajor vorks carried out by firoigo contractoro.
2/ Local Inflation rate assumed to be 8b per year.7nflation on internationally procured equipment and civil verka cal-nlatod as follows:
1975 1976 onwardsCivil Works 157 127. aonuallyEquipient 11% 7.5 annually
ANNEX 10Page 1
TUNISIA
FIRST URBAN SEWERAGE PROJECT
Technical Assistance to the Local Construction Industry
Tentative Terms of Reference
I. INTRODUCTION
1. The Government of Tunisia wishes to obtain the services of consul-tants to (i) identify present and projected workload within the civil engineer-ing and building construction sector in Tunisia; (ii) study the present struc-ture, organization and effectiveness of the domestic contracting industry andmake recommendations for its improvement; and (iii) assist in implementingagreed recommendations, including assistance to the OTTEEFP for the estab-lishment and execution of agreed training programs.
2. The services are expected to be required during a period of about18 months, and to be supplied by an experienced contractor's engineer (16-18man/months), a contractorts administrator with extensive experience in con-tract administration costing and financing (9-12 man/months) and a specialistin vocational (professional) training, preferably in construction industrytrades (6-8 man/months). The consultants will work under the direction ofa Construction Industry Advisory Commission.
3. The Government of Tunisia has applied for a loan from the Interna-tional Bank for Reconstruction and Development and it is intended that partof the proceeds from this loan will be applied to the payment of foreign ex-change payments for these services.
II. OBJECTIVE
4. The main objective of this assistance is to help improve the capac-ity and skills of the local construction industry to enable the industry toassume a more effective role in the country's construction programs, replacingforeign contractors to the extent that this is economically desirable.
III. SCOPE
5. The consultants shall carry out inter alia the following:
ANNEX 10Page 2
(i) determine the volume of construction to be expected up to1977 on the basis of the present plan and up to 1981 on thebasis of preliminary estimates for the Fifth Plan in eachof the different classes of building and civil works con-struction;
(ii) determine the immediate medium-term and long-term needs ofthe country by way of equipment, financing (local and for-eign exchange), the various categories of management person-nel and construction workers required to complete the plannedvolume of construction on schedule;
(iii) review the present status, output and potential capacity ofthe existing domestic contracting industry in differentclasses of building and civil works construction (the Con-sultant is referred to a 1973 study by UNDP/ILO on thissubject entitled "L'Emploi dans le Secteur Batiment etTravaux Publics--Situation et Perspectives," Report NumberTUN/71/545);
(iv) determine the volune of construction which it is feasibleand economically desirable to have carried out by local con-tractors, and of the equipment, financing, management per-sonnel and construction workers required by the local indus-try in order to meet this objective;
(v) assess whether the volume of construction indicated in (iv)above can best be met by expansion of existing constructionfirms or whether the establishment of new enterprises, ifnecessary with state assistance, is desirable. In thiscontext the consultant should investigate the need for anddesirability of establishing equipnient rental companies fortlhe rental of expensive construction equipment which a typicalconstruction contractor might require for only a limited periodof time. If the need is established he should provide detailedrecommendations or the creation of such a company, or companies;
(vi) review problems currently encountered by the construction indus-try regarding the shortage of cement, bricks, pipes and otherbuilding materials and indicate where the capacity of theTunisian suppliers should be expanded and measures which canbe taken to facilitate importing of needed materials whichcannot be locally produced economically;
(vii) review current bidding and contracting procedures and recom-mendations as to specific changes;
(viii) report on any desirable improvements in the existing facili-ties, private and public, for providing the industry with theneeds regarding performance, bonding, bank guarantees, medium-and long-term financing and the provision of foreign exchange;
ANNEX 10Page 3
(ix) report on specific changes in Government policy which wouldencourage participation by foreign contractors in the coun-try's construction program and their commitment to trainingof Tunisian personnel;
(x) prepare recommendations on the organization and operation ofa suitable local trade association of construction contractors;
(xi) prepare a detailed schedule of the number of skilled workerswhich will be required each year by trade and specialty; in-cluding a profile of the characteristics and training requiredfor each trade;
(xii) assist the OTTEEFP in:
(a) establishing suitable training courses and selectingpersonnel to teach these courses, in order to developthe skills required under (xi);
(b) taking measures to raise security of employment in thesector, to increase the attractiveness of the construc-tion industry as a source of employment for young peo-ple, and to recruit young persons to the training pro-gram;
(c) improving operation of the employment referral service.
(xiii) assist the OTTEEFP in conducting seminars on subjects in whichadditional skills can promote efficiency. The following sub-jects (among others) would be treated:
(a) formis of prequalification, bidding and contract docu-mentation, including conditions of contract, specifica-tions, drawings, bondings, methods of payments, claimsand arbitration, etc;
(b) estimating of costs and pricing of bids, including riskanalysis;
(c) record keeping for cost control;
(d) programming and scheduling of civil works, includingmobilization equipment maintenance, materials purchaseand storage;
(e) general financial planning and budgetary control; and
(f) personnel management and training.
ANEX J10
Page 4
(xiv) conduct seminars for government officials concerned with theconstruction industry on subjects such as:
(a) preparation of proper prequalification, bidding andcontract documentation;
(b) evaluation of prequalification and bidding submission;
(c) the duties and responsibilities of "Engineer" and"Employer";
(d) site records;
(e) payment provisions and procedures; and
(f) disputes and arbitration.
IV. TIMING
6. The services will be provided in three phases:
Phase I - About four months to review present and futurevolume of construction, the present capacity ofthe industry and the industry needs in order tocarry out the construction program; establish adetailed work program for Phase II and a workprogram outline for Phase III. The Conclusionsof Phase I shall be incorporated in an InceptionReport.
Phase II - About four months to review bottlenecks in thematerials supply industry, bidding and contract-ing procedures, financing and guarantee institu-tions; make recommendations to encourage foreigncontractors and to establish a local constructionassociation; prepare a detailed schedule of neededskilled workers. The recommendations to be con-trained in a Phase Il Report shall incorporate acomplete training program for Phase III.
Phase III - About ten months, to assist OTTEEFP with the prep-aration and start up o2 a training program and im-plementation of measures to improve the flow oftrained personnel to industry; conduct seminars forGovernment and industry personnel; assist the Gov-ernment in the implementation of other agreed rec-ommendations.
ANNEX 10Page 5
7. All reports should be supplied in 50 copies to the Government whichwill forward 5 copies to IBRD.
V. DATA, LOCAL SERVICES AND FACILITIES TO BEPROVIDED BY THE GOVERNUENT
8. The Government will provide the consultants with all available datawhich they require to carry out their assignment efficiently. The Governmentwill also provide liaison through the Construction Industry Advisory Commissionin connection with work that requires the cooperation of Government agenciesand contractors. The Government will assign a qualified counterpart engineerwho will work full-time to coordinate the work of the Commission and the Con-sultants. The Government will provide the following facilities and supportingstaff to help the consultants perform their services:
(a) office space, furniture, minor equipment and office supplies,telephone utilities;
(b) one vehicle (with driver);
(c) fuel and maintenance of Consultants' vehicle;
(d) cost of Consultants' postal and telephone expenses;
(e) one typist; and
(f) one draftsman (part-time).
I1.rjnex :
TJNISIA
FIRST URBAN SEWERAGE PROJECT
ESTIMATED SCHEDULE OF DISBURSEMENTS
IBRD Fiscal Year Cumulative Disbursenentand Half-Year Disbursements at End of Half-Year
US$ 000 US$ 000
197L1/75June 30, 1975 1,000 1,000
1975,/76Dec. 31, 1975 1,400 2,hOoJune 30, 1976 2,700 5,100
1976/77Dec. 31, 1976 3,900 8,300June 30, 1977 3,500 11,800
1977/78Dec. 31. 1977 3,500 15,300June 30, 1978 3 600 18,900
197 2/79Dec. 31, 1)72 3,500 22,h00Jume 30, 1979 3.500 25,900
1979/30Dec. 31, 1979 2,10,
ANNEX 12
TUNISIA
FIRST URBAN SEWERAGE PROJECT
Monitoring Criteria
It is proposed that the following criteria be monitored to deter-mine whether the project is fulfilling its objectives and reported in quarter-ly reports from OeAS to the Bank:
Physical Criteria
- total cumulative sewer connections
- % urban water customers served by ONAS
(Projections for these two indicators are given in Annex 6).
- variations in dissolved oxygen levels in the Lake of Tunis(a sampling program acceptable to the Bank should be agreedupon during negotiations).
Public Health Criteria
- incidence of typhoid and paratyphoid in Tunisia and in theGreater Tunis (present incidences are given in Annex 3). Theseare about 100 times the level in developed countries andshould drop noticeably in Greater Tunis in the years followingcompletion of the project.
Financial Criteria
- rate of return (projections are given in Annex 13)
- internal cash generation (projections are given in Annex 14)
- average operating expenses per
(a) sewer connection
(b) m3 of water consumed by connected customers
- variations in the value of land surrounding the Lake of Tunis(a program to follow the changes in land values in representativeareas should be agreed during negotiations).
TUNISIA - FIRS? JRBAN SEWERAGF PROJECT
ONAS - INCOIE STATEPENTS - PROJECTED 1975--1981
Fiscal Year 1nding Dec. 31 1975 1976 1977 1978 1979 1980 1981
Water Sold in Systems Taken-over (Millions of m3) 61 78 86 98 109 120 131
(Relation to Total Water Sold by SONEDE) (M> 66 78 81 86 90 93 97Average Revenue for Sewerage (Millimes/m
3) 23.7 22.1 21.9 21.6 27.9 27.8 27.2Average Revenue incl. Goverrment Subsidy (Millimes/m
3) 40.2 47.1 61.9 61.6 67.9 67.8 67.2
-_________________----------D million---,------------------------
RevenuesSewerage Tariffs Charged Directly 0.59 0.77 0.85 1.01 1.71 1.81 1.95Consumers' Levies Collected through Municipalities 0.86 0.95 1.03 1.11 1.33 1.52 1.61Sales of Products 0.04 0.06 0.25 0.30 0,35 0.37 0.40Connections Repairs and Other Services 0.12 0.15 0.18 0.21 0.26 0.30 0.35Goveroient Subsidies 0,98 1.95 3.44 3.92 4.36 4.80 5.24
Sub-Total 2.59 3.88 5.75 6.55 8.01 8.80 9.55
Less Bad Debts Provision 0.02 0.02 0.03 0.03 0.03 0.04 0.05
Total Revenues 2.57 3.86 5.72 6.52 7.98 8.76 9.50
Operating ExpensesPersonnel 0.55 0.80 1.10 1.36 1.47 1.70 1.83Energy and Water 0.10 0.20 0.20 0.25 0.25 0.25 0.30Materials 0.20 0.30 0.35 0.40 0.50 0.55 0.65Third Parties Services 0.10 0.20 0.25 0.35 0,40 0.50 0.55Administrative Expenses 0.15 0.20 0.25 0.30 0.30 0.40 0.45Miscellaneous 0.11 0.15 0.19 0.22 0.25 0.26 0.27Taxes 0.04 0.05 0.06 0.07 0.08 0.09 0.10
Sub-Total 1.25 1.90 2.40 2.95 3.25 3.75 4.15
Less Transfer to Assets/> 0.15 0.30 0.40 0.45 0.50 0.55 0.60
Tutal Operating Expenses 1.10 1.60 2.00 2.50 2.75 3.20 3.55
Income before Depreciation 1.47 2.26 3.72 4.02 5.23 5.56 5.95
Less Depreciation2 0.60 1.15 1.95 2.30 3.25 3.55 3.65
Net Operating Income 0.87 1.11 1,77 1.72 1.98 2.01 2.30
1,ess Interest 0.04 0.13 0.68 1.16 1.62 1.88 1.85
Net Income 0.83 0.98 1.09 0.56 0.36 0.13 0.45
Operating Ratio (afler depreciation) (%> 66 71 69 74 61 77 65Return on Average Net Fixed Assets (M) 5.3 3.6 4.1 3.1 3.0 2.8 3.2
/L Cost of extension carried out by force account.
/2 Total depreciation is a larger amount, the portion relating to contribution-financed extensions being wr-itten off customers' contributions in thebalance sheets.
>
December 19, 1974
TUNISIA - FIRST URbAN SEWERAGE PROJECT
oNAS - CASH FLOW STATEMENTS - PROJECTED 1975-1981Total
Fiscal Year Ending Dec. 31 1975 1976 1977 1978 1979 1980 1981 1975-1981-____________________-------DO million---------------------
Internal Sources of FundsNet Incern before Depreciation (1) 1.47 2.26 3.72 4.02 5.23 5.56 5.95 28.21
Operational RequirementsIncrease (Decrease) in Working Capital other than Cash (2) (0.45) (0.62) 0.33 0.06 0.81 0.21 0.01 0.35
Interest charged to operations:- Proposed IBRD Loan 0.02 0.13 0.34 0.58 0.81 0.94 0.92 3.74
- Other Loans 0.02 0.13 0.34 0.58 0.81 0.94 0.93 3.75
Amortîzation of Loans:
- Proposed IBRD Loans - - - - 0.20 0.20 0.25 0.65
- Other Loans - Long Term - - - - - 0.20 0.20 0.40
Total Operational Requirements (3) (0.41) (0.36) 1.01 1.22 2.63 2.49 2.31 8.89
Balance of Internal Funds Available for Investments (1-3) (4) 1.88 2.62 2.71 2.80 2.60 3.07 3.64 19.32
Capital ExpendituresProj ect 8.60 8.70 9.30 8.40 1.64 - - 36.64
Tourism Centers 2.00 4.00 4.00 - - - - 10.00
Others - - - 6.00 9.36 9.00 5.40 29.76
Total Capital Expenditures 10.60 12.70 13.30 14.40 11.00 9.00 5.40 76.40
Increase (Decrease) of Accounts Receivable (Long-Term) 0.65 0.07 0.07 0.46 1.09 0.59 (1.31) 1.62
Total Capital Investraent (5) 11.25 12.77 13.37 14.86 12.09 9.59 4.09 78.02
Balance to be Financed (5-4) (6) 9.37 10.15 10.66 12.06 9.49 6.52 0.45 58.70
Covernment Loan:- Proceeds IBRD Loan 1.00 2.75 3.00 3.00 2.05 - - 11.80
- Other Proceeds 1.00 2.75 3.00 3.00 2.45 - - 12.20
Total Loan 2.00 5.50 6.00 6.00 4.50 - - 24.00
Governsent Contributions 6.00 5.00 4.00 4.00 1.00 1.00 _ 21.00
Customers' Contributions 1.45 0.70 1.00 2.20 4.00 3.80 0.30 13.45
Total Funding (7) 9.45 11.20 11.00 12.20 9.50 4.80 0.30 58.45
Cash Increase (Decrease) for Year (7-6) 0.08 1.05 0.34 0.14 0.01 (1.72) (0.15) (0.25)
Cash at Beginning of Year 0.70 0.78 1.83 2.17 2.31 2.32 0.60
Cash at End of Year 0.78 1.83 2.17 2.31 2.32 0.60 0.45
Debt Service Coverage (times) (1:/3-]t) 37 8.7 5.5 3.5 2.9 2.4 2.6 3.3
Internal Financing of Capital Investment (%) (4 as % of 5) 17 21 20 19 22 32 89 25
-- do-- as % of Net Fixed Assets Plus Work in Progress (%) 10.4 8.0 5.9 4.8 3.9 4.2 4.7
(Annual Average)
December 1974
Annex 15
TUNISIA - FIRST URBAN SEWERAGE PROJECT
ONAS - BALANCE SHEETS - PROJECTED 1975-1981
OpeningBalance
Fiscal Year Ending Dec. 31 1975 1975 1976 1977 1978 1979 1980 1981
D million --
AssetsFixed Assets 9.70 23.95 39.98 51.43 69.75 79.45 86.35 92.25Less Depreciation - 0.60 1.80 3.80 6.20 9.60 13.40 17.40
Net Fixed Assets 9.70 23.35 38.18 47.63 63.55 69.85 72.95 74.85Work in Progress 1.00 2.10 1.90 4.50 0.60 1.90 4.00 3.50
Total Fixed Assets 10.70 25.45 40.08 52.13 64.15 71.75 76.95 78.35
Accounts Receivable (Long-Term)/- - 0.65 0.72 0.79 1.23 2.32 2.91 1.60Stocks 0.05 0.15 0.18 0.21 0.22 0.23 0.24 0.25Accounts Receivable (Short-Term)s - 0.30 0.45 0.55 0.60 0.80 1.00 1.00Cash and Equivalent 0.70 0.78 1.83 2.17 2.31 2.32 0.60 0.45
Total Current Assets 0.75 1.88 3.18 3.72 4.36 5.67 4.75 3.30
Total Assets 11.45 27.33 43.26 55.85 68.51 77.42 81.70 81.65
Equity and LiabilitiesGovernment Contributions 10.30 21.05 29.05 33.80 37.80 38.80 39.80 39.80Fronting Proprietors' Contributions - 1.45 2.10 3.05 5.15 9.00 12.55 12.50Retained Surplus - 0.83 1.81 2.90 3.46 3.82 3.95 4.40
Total Equity 10.30 23.33 32.96 39.75 46.41 51.62 56.30 56.70
Long-Term Debt - Proposed IBRD Loan - 1.00 3.75 6.75 9.75 11.60 11.40 11.15"1 "l - Goverroment Loan - 1.00 3.75 6.75 9.75 12.20 12.00 11.80
Accounts Payable 1.15 2.00 2.80 2.60 2.60 2.00 2.00 2.00
Total Liabilities 1.15 4.00 10.30 16.10 22.10 25.80 25.40 24.95
Total Equitv and Liabilities 11.45 27.33 43.26 55.85 68.51 77.42 81.70 81.65
Debt/Equity Ratio 15:85 24:76 29:71 32:68 33:67 31:69 31:69
/1 Net of Bad Debts Provision
December 1974
ANNEX 16Page 1
TUNISIA
FIRST URBAN SEWERAGE PROJECT
Assumptions for Financial Projections
A. Income Statements
1. The water quantities on which the tariffs are charged to the cus-tomers (and on which the Government subsidy will be collected) are those tobe sold by SONEDE in the towns and tourist areas taken over by ONAS, reducedby an appropriate factor, where the sewerage systems do not yet correspondwith the water supply system. Where, however, sewerage facilities exist, thewater consumers will be fully charged from the beginning of the year of take-over by ONAS, even if they are not yet connected to the available sewer. Re-venues are assumed on the basis of above-mentioned quantities and tariffs,levies and subsidies as shown in para 6.10.
2. Personnel expenses are projected on a forecast of the annual needsof the growing organization and on emoluments based on a statute equal to thatof SONEDE. The rates are increased by 5% annually, which is believed adequatein the closely controlled climate for wages and salaries in Tunisia.
3. Other Expenses are estimated on the basis of operational needs andreflect an expected inflationary increase of the national price level (5-8%annually).
4. Taxes are only calculated on a provisional basis for minor items,since the government proposes to exempt ONAS from taxes on sales and profits.
5. Transfer to Assets represent the value of construction works forsewerage extensions carried out by ONAS labor force as planned in its workingprogram, and which therefore should not be left as a charge against operatingrevenue.
B. Cash Flow Statements
6. The long-term loan from the Government is based on the foreign ex-change needs of ONAS for the project execution, about half to be relent fromthe proceeds of the Bank Loan and the remainder to be provided from Governmentsources. The grace periods are assumed to be 4 and 5 years respectively.
AN-NEX 16Page 2
7. Governnent contributions in cash include amounts for the seweragedevelopment of tourist areas for which Tunisia has obtained Bank assistanceunder Loan 858-TUN and Credit 329-TUN as well as a development credit fromthe Federal Republic of Germany.
8. Contributions of front proprietors are calculated on the basis ofexisting legislation and in accordance with the extension program of ONAS.Seventy percent of the cost of these investments is expected to be recoveredin this form. (Credit facilities made available to contributors by ONAS arereflected in "Accounts Receivable-Long Term".)
9. The relatively high liquidity yielded by the projected financingpolicy appears desirable in view of uncertainties of various kinds which anew organization has generally to overcome.
C. Balance Sheets
10. The valuation of fixed assets to be financed by ONAS is subject toinflationary price increases for both foreign and local expenditures. As tothe existing fixed assets taken over in municipalities and tourism centersthe estimated values are the expected replacement values at 1974 prices, lessdepreciation in accordance with the estimated residual lives of these installa-tions. ONAS's policy will be to depreciate on straight line rates beginningin the year following entry into service.
i1. Accounts receivable - long term assume that 75% of the front pro-prietors will take advantage of ONAS's credit facilities for the payment ofcontributions by installments over an average period of 4 years. Short-termreceivables depend on the billing and collecting procedure of SONEDE, whichmeans a time-lag of about 4-5 months between provision of service and recoveryof the charge. Projections assume that the levy and subsidy accounts aresettled at each year end.
12. Accounts payable reflect forecasts of retention moneys on contractsand appropriate amounts for material purchases and other operating charges.
ANNEX 17Page 1
TUNISIA
FIRST URBAN SEWERAGE PROJECT
Economic Justification
A. The Project
1.1 The project consists of a principal component to provide seweragefor Tunis District and minor components cover the establishment of a nationalsewerage authority, a start on urgently needed renovation and renewal ofsewer systems in other communities, studies for the preparation of sewerageprojects for the Fifth Plan and technical assistance to improve the capacityof the Tunisian construction industry. The project is part of a nationalprogram of sewerage works and its cost represents 51% of the total plannedinvestments in the sector to the end of 1981.
1.2 The improvement of sewerage facilities in the Greater Tunis isestimated to cost D22.02 million or 79% of the total project costs. The workscan be divided into two elements, works related to the secondary and tertiarysewer systems, which serve to evacuate the sewage from the built-up areas, andthe trunk sewers and sewage treatment plants which will reduce pollution ofthe receiving waters.
B. Economic Analysis of Pollution Control Works
The Project
2.1 Sewage carried by the secondary and tertiary collector system willbe intercepted by a system of trunk sewers and carried to one of the threetreatment plants included in the project. In addition canals will be builtclose to the shores of the Lake of Tunis which will intercept polluted surfacewater runoff and combined sewer overflow which will then be pumped into thenavigation canal and discharged in much-diluted form into the Gulf of Tunis.the cost of these works is estimated to be D19.52 million, which is 79.5% ofthe estimated costs of the Tunis District component.
2.2 The physical effect of the pollution control program will be toclean up the ditches and sebkhets (salt lakes) in the District as well as theLake of Tunis and the beaches on the Gulf of Tunis. At present sewage is dis-charged at these locations either untreated or only partly treated.
2.3 The most tangible benefits would accrue to owners and occupiers oflake-front properties, by eliminating the odor emenating from these sites andthe unpleasant visual effects of floating solids and discolored water. Althoughprimarily affecting riparian properties, these benefits, particularly in sum-mer when odors are strongest, would be felt widely throughout the District.
SNNEX 17Page 2
2.4 Economic benefits of the pollution control program are expected toresult in an increase in lake-front land values. Such an increase would re-present the present worth equivalent of the stream of utility that would beobtained over future years as a result of improvement in environmental quality.
2.5 Properties surrounding the Lake of Tunis will be most significantlyaffected by this phenomenon (Map 11175). Although it is expected that allproperty values within one kilometer of the shores of the Lake will experiencesome increase in value, it would be impossible to separate the influence ofthe polluted environment from other factors without an extensive study. How-ever, there is a strip of completely undeveloped land of varying width sur-rounding the Lake which serves for subsistence grazing or as an unauthorizedrefuse disposal area. The obnoxious condition of the Lake is described bylocal authorities as responsible for the failure to develop this land. Thepopulation of Tunis is growing at about 5% per year and there is an activedemand for land. There is an especially high demand for land in the centralarea of the city nearby the Lake on Boulevard Mohamed V where property valuesare highest. The strip of land surrounding the Lake was estimated by severalauthorities to have a value of only 300 millimes/m2 (US$0.07/ft2). Immediate-ly adjacent land in the Mohamed V area is selling for up to D50/m2 (US$10.93/ft2)with a general value of D15/m2 (US$3.28/ft2). Land in the area of Megrinewas reported to be worth D3/m2 (US$0.65/ft2). There are approximately 1,500ha of land in this strip around the Lake excluding those areas which havebeen created by filling the Lake. It is assumed that 25% of the registeredland area, when developed, will be used for streets and other uses not affect-ed by pollution, and that the average value of the land if the Lake were un-polluted would be D5/m2 (US$1.09/ft2). The area around the Lake representsabout 7% of the area of Greater Tunis and would be gradually introduced intothe marketplace. Since the demand elasticity is not known, it has been as-sumed to be minus one over the relative range, thus implying a 7% reductionin the price of land.
2.6 Assuming that the average new value of the land is 4.8D/n2 (US$1.05ft2), the benefit from cleaning up the Lake would be 1,125 ha at D4.7/m2 orD52.9 million (US$124.3 million). These benefits are expected to be realizedbetween 1979, the year following completion of the first stage of the project,and 1983. The second stage of the project, which will be built between 1982and 1986 is included in the costs because it will be required in order tomaintain the benefits.
2.7 Commercial fishing is presently carried out in the Lake. The annualcatch in recent years has been valued at D180,000 (US$423,000). During thissame period it has been estimated by the Mfnistry of Agriculture that fishhaving a net value D 30,000 (US$70,500) annually have died during the summermonths from lack of oxygen. It is expected that if nothing is done to haltthe discharge of sewage to the Lake, within 15 years there will be no fishingin the Lake. Cleaning up the Lake would therefore result in increased net re-venue from greater fish production, assuwed to vary from D12,000 in 1976 whenthe Cherguia plant will be operating properly to D 180,000 in 1990 and there-after.
INNEX i7Page 3
2.8 A further benefit from the treatment of sewage to prevent pollutionwould be through the sale of the by-products, treated sewage for irrigation andsludge for fertilizer.
2.9 Some of the treated sewage could be sold for irrigation in theSoukra region beginning in 1976. The Bank is presently considering financingan irrigation rehabilitation project which includes this region. It isestimated that by 1985 there would be 550 ha of citrus fruits producing a
surplus benefit of D42.5 per hectare and 250 ha of vegetables producing a netsurplus benefit of D85.1 per hectare, for a total annual surplus benefit ofD44,680. A water master plan for Northern Tunisia, Prepared by consultantsinitially under a Bank engineering credit, indicates that a further area would
be irrigated by treated sewage in the Lower Medjerda Valley. The net benefitfrom bringing this area into production would be D460/ha/yr. Construction ofthis irrigation project is forecast for 1986 and it is estimated that by 1990
sufficient treated waste water will be available to irrigate 3,700 ha, pro-ducing a net annual benefit of D1.7 million.
2.10 Sewage sludge produced by the treatment plants may contain an aver-
age of 6% nitrogen and 4% phosphoric acid. At 1974 prices of US$220/MT forurea (46.6% nitrogen) and US$43/MT for rock phosphate (33% phosphoric acid),
this sludge would be worth US$33.54/MT as fertilizer equivalent. However,the constant price of fertilizer is expected to decline to about half itspresent value by 1985, so that the sludge, in constant prices, would only be
worth about US$16.50/MT at that time. Moreover, the additional cost of haul-ing and spreading sewage sludge as compared to commercial fertilizers may befrom US$10/MT to US$60/MT. Finally the large percentage (75%) of completelyinert material in the sewage sludge may limit is suitability for continuousapplication to some soils. In view of the many factors which may affect theeconomic value of sludge as fertilizer, a value of 500 millimes/MT (US$1.17/MT)the price at which such sludge is presently sold in Tunisia, has been used incalculating the benefits.
2.11 Benefits of pollution control for public health have not been quan-tified directly: in part they would be reflected in the increase in landvalues. Similarly, recreational benefits likely to result from improving thequality of the Lake are not included since to do so might also involve anelement of double-counting.
2.12 The benefits used for purposes of this evaluation are understatedto the extent that they ignore increased property values other than those ofthe strip of undeveloped land surrounding the Lake, they ignore the tourismbenefits resulting from protecting the adjacent beaches of the Gulf of Tunisfrom pollution and they ignore the unquantifiable benefit to the quality oflife which will arise from ridding the whole District of the obnoxious odorfrom the Lake during the summer months.
Project Justification and Sensitivity Tests
2.13 Pollution control costs and benefits are given in Table I. Allvalues are at December 1974 prices, and costs are not of taxes (estimated tobe 10%) but including 15% physical contingencies.
ANNEX i 7Page 4
2.14 The internal rate of return for the pollution control elements ofproject is 24.9%. It would exceed 10% even if:
(a) costs of the pollution control works increased 50%;
(b) land values fall from D5/m2 to D2.9/m2.
C. The Sewage Collection (evacuation) System
3.1 Project costs related to the sewage collection system are estimatedat D3.88 million or 21.5% of the costs of the Tunis District project. Thisamount is divided equally between extensions and renovations or renewal ofthe existing tertiary and secondary collection system.
3.2 Extensions to the system would be paid in full by consumer contribu-tions at the time of construction. ONAS's other revenues, which would coverthe cost of the renovations and renewals of the existing collection system aswell as the operating and maintenance costs, would be generated by charges onwater consumed by those connected to the sewer system and from government sub--sidies. Revenues from the consumers would be more than sufficient to coveroperating and maintenance costs. However these revenues cannot be consideredas the benefits of the sewer collection system. This is because the pricethat consumers are willing to pay for water supply plus sewage collection mayrepresent the value they place on water supply alone. That this may indeedbe the case is evident from the fact that it has been suggested by ONAS thatfailure to pay the sewer charge result in cutting off of the water service.In the extreme case, if consumers place no value at all on the provision ofsewerage facilities, the additional amount they are called upon to pay forsewerage for a given rate of water consumption will merely extract part of theconsumer's surplus on water consumption that would otherwise have been reaped.
3.3 Thus the costs and benefits of sewage collection cannot be evaluatedseparately from those for water supply. In the case of Tunis, such an analysisof the combined systems would require several difficult judgments because:
(i) the water supply works for Tunis also serve other centers;
(ii) SONEDE being a national water supply authority the operatingcosts for the Tunis water supply system are integrated withthose of the rest of the country;
(iii) the tariff for sewerage will generate revenues from consumerswho are already connected to the sewer system and which willnot necessarily be related to the improved service they receive;
(iv) since ONAS is a national sewerage authority the operating costsfor Tunis are integrated with those for the other centers whichit serves.
ANNEX 17Page 5
Because of the uncertainty introduced by these judgments, such a calculationand the result thereof would be illusory.
3.4 The operating and maintenance costs for the sewer system will bemet by charges under the sewage tariff. Fronting proprietors will pay formost of the collector system. The unquantifiable benefits resulting from theconstruction of the sewer system will be improved public health and environ-ment within the project area.
TUNIMIA
FIRST URBAN SEWERAGE PROJECT
Pollution Control Costa & Benerits
(in D mlllion)
Costa Benerite
CSonstru pion Lncreaseea Ylsl Irrigation SLudge asYear Cost_1 Operating Total Land Values Production Water Fertilizer Total
Personnel Energy
1975 2.83 0.02 0.08 2.93 0.03 0.01 0.041976 4.22 0.02 0.11 4.35 0.01 0.03 0.01 0.051977 4.67 0.03 0.14 4.84 0.03 0.03 0.01 0.061978 4.02 0.04 0.17 4.23 0.04 0.04 0.01 0.091979 0.04 0.20 0.24 10.12 0.05 0.04 0.01 10.221980 0.04 0.24 0.28 10.12 o.o6 0.04 0.01 10.231981 0.04 0.27 0.31 10.12 0.07 0.04 0.0. 10.231982 3.56 0.04 0.30 3.90 10.12 0.09 0.04 0.01 10.261983 3.56 0.04 0.34 3.94 10.12 0.10 0.04 0.01 10.271984 3.56 0.04 0.37 3.97 0.11 0.04 0.01 0.161985 3.56 o.o6 0.40 4.02 0.12 0.05 0.01 0.181986 0.11 0.44 0.55 0.13 0.09 0.01 0.231987 0.11 0.47 0.58 0.14 0.51 0.01 o.661988 0.11 0.51 0.62 0.16 0.92 0.02 1.101989 O.11 0.54 0.65 0.17 1.33 0.02 1.521990 onwards 0.11 0.57 0.68 0.18 1.74 0.02 1.94
1 Factor Conte equal to 90% of total construction coste; construction costa include 15% contingencies.
4
TUN1ISIA
FIRST URBAN SEWERAGE PROJECT
THE TUNIS DISTRICT
1. To create an institutional structure within which the Tunis Metro-politan Areats development could be planned and guided as a whole, in 1972,the Government of Tunisia established the Tunis District. The District'sprincipal function is to plan, coordinate, and supervise public investmentat the metropolitan level. It is under the authority of the Governor-Mayorof Tunis, a Board of local representatives chaired by the Governor-Mayor anda ministerial level Council, chaired by the Prime Minister, exercising super-visory decision-making responsibilities.
2. Establishment of the District constitutes a major step towardsdecentralization and sets a precedent for the eventual regionalization ofpublic administration in Tunisia. Such fundamental change cannot easilybe put into effect. Practical measures to recruit a staff and ensure thatthe District has a major role in planning the public investment program forthe Tunis area, in preparing the state capital budget for Tunis and inpromoting and coordinating the execution of the projects falling within itsjuriadiction, have taken considerable time and effort.
3. The Tunis District Urban Planning and Public Transportation Project(Loan 937/Credit 432)±/ place particular emphasis on the effective establish-ment of the Tunis District. To assist the District to fill its role underthat project, a District Organization Decree was promulgated outlining theDistrict's organization, staffing, financial authority and relations withother agencies. Provision was made for technical assistance to prepare along-range comprehensive urban development strategy, to aid in identifyingand coordinating both short-term and long-term inter-sectoral investmentdecisions and to undertake special policy studies on transport, housing andpublic finance. A staffing pattern was also established. The District isto have three directorates, responsible respectively for planning and studies,programming and the public investment budget, and supervision.
4. Experience has shown that the District Organization Decree lackedthe specificity that is necessary to make the District fully effective. TheGovernment indicated to the Bank that it would issue administrative circulars(Circulaires d'Application) which would specify in greater detail the functionsand responsibilities of the District within its area of jurisdiction and specifyits relationship to existing public and quasi-public entities and organizations.Under the draft circulaires currently in progress, the District would: (î)examine before commitment any study proposal or infrastructure investment; (îi)participate with relevant agencies in the preparation of capital budgets; (iii)participate in decisions relating to industrial, public and private commercialprojects; (iv) control building permits within Greater Tunis District.
R1/ See "Tunisia, Appraisal ai Tunis District Urban Planning and Public TransportProject,t' Repart 157a-TUN dated July 25, 1973.
--t,t J --.- ,
5. During the past eighteen months, the Government has appointed theDistrict's first Director-General who has recruited the initial technîcalstaff. Difficulties have been encountered in recruiting additional staff ofthe calibre required. An inadequate salary structure is a principal reason.Only the planning and studies directorate has been established; the Districthas yet fully to emerge as a programming and a supervision agency.
6. The initial task of the District is to undertake a major program ofurban planning and policy studies, with technical assistance financed jointlyby the UNDP and the recent Bank/IDA loan credit; this is now underway. TheDistrict staff will identify, analyze and program the initial investment needsto implement a strategy of urban land use in the Tunis metropolitan area. Itswork program includes sectoral policy and project feasibility studies relatingto public transport policy, housing policy, and fiscal and financing problems;feasibility studies for development of new housing including site and servicesareas as well as possible urban renewal or rehabilitation of parts of downtowrnTunis are expected to follow. The Tunis District also exercises a supervisory-role over the public transport improvement program initiated under the BankUrban Transport Project. Under guidance from the District and its consultants,the Tunis municipality is undertaking an examination of short and medium termtraffic improvements, including a review of parking charges, and existingregulations and practice, with a view to introducing greater restraint ofautomobile usage in the central areas and to encourage more efficient use ofpublic transport.
7. The Tunis Urban Sewerage Project offers a logical opportunity tostrengthen the District. Its role under the project is considerable. Theeconomic justification of the pollution control works is based on the increasein riparian land values which will take place as the pollution of the Lake ofTunis is reduced. To ensure maximum benefit, land use studies must be carriedout to ascertain the best use of the land and a coordinated program of develop--ment must be formulated.
8. Under the District Organization Decree, the District should concludeagreements with the public agencies undertaking investment programs in GreaterTunis. No such agreement has yet been concluded. The Urban Sewerage Projectprovides the framework for the conclusion of the first agreement, which willconstitute an important precedent. The Bank's cooperation with both partiesshould assist in this regard. The agreement should provide a continuing dia-logue between the two agencies and ensure that ONAS' capital budget is con-sistent with the overall growth pattern and strategy for Greater Turns, thuspermitting new sewerage proposals to Le annually reviewed.
9. The agreement should also contain reporting arrangements and pro-cedures for handling major changes in agreed programs and arrangements forthe District to ensure that investment execution follows agreed planning.The Tunis District will have a specific responsibility to plan the futuredevelopment of the Tunis Lake area without the constraint imposed by thelack of pollution control facilities. Its study would be undertaken withthe assistance of consultants; funds have been provided for this purpose
Page 3
in the cost estimates. Agreement has been reached that within three years ofthe date of the Loan Agreement, the District will review with the Bank land-use plans for the future use of the Lake area and that within the five yearsthe Government will take the legal action necessary to promulgate and there-after ensure that development proceeds in accordance with these plans (Plansd'Amenagement).
10. The detailed terms of reference for the land use studies will haveto be prepared by the District and the consultants. The terms of referenceshould:
(a) seek within broad limits to define the area of analysis;
(b) provide for physical and land use surveys of the Lake area;
(c) envisage discussions by the District with Government andmunicipal authorities on the development options for theriparian land;
(d) foresee preparation of detailed alternative proposals foroptimum economic land use;
(e) provide for preparation in detail of the chosen developmentstrategy with an accompanying justification for the use ofthe riparian land; establish a phased development programand undertake a cash flow analysis and prepare sketches andmodels describing these proposals;
(f) prepare proposals for any changes in organizational arrange-ments to facilitate development of the Lake area;
(g) prepare the supporting legislation which would be requiredto implement the proposals, including Plans d'Amenagement,foUowing the selection by the District's Council of thepreferred development option.
IBRD 11174a ;' 7 llo¢ 1,l; AUGUST 1974
FIRST URBAN SEWERAGE PROJECT Me diterranean Sea
LOCATION OF PROJECT ZONE
_St a < E gé~~~~~~~Bor9tb Bososb Gu/f -- ce
ofu/ sf Hammamet
:~~~~~~~~~~~~~~~ - oGansooada.
ll I E \< 0 A D />Ks~ourgu,baf
~~~~~~~~~~~AA. Drna Bel : /Kse rie -mne <
S J i / \ \ ,- ~~~~~~~~~~~~~~~~-'YKERKENNA: - .> t / o : fax ,>) rv 9~~~~~~~~ ISLANDS
D av
on thu nu,, O-~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~onsi
a0000 , -' a ,\ D a
NTL RNATI NAe AI-', K`,
Au, <tt F«n RsQ tf ptlth C | -\ IVER
LARES ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ISAD
t§<RrS[,8uittttttdBett9tet tt_f I- -- -INENTOA BOUOAIE
X/ \ | . ! RA~~~~~ ~~ ~~~~IES Y Reoohoin ada
It f f \ 4 PORTS I / > /->-~Gul of abe
I 9, C0 AKES OF
Q~~ ... 4 INTERNATIONAL 80UNDARIES DJERB
RAKILOMETERS t +
.NTERNATONAL __IRPOR ITS - :
IBRD 11175R
ARIANA ~
TUNISIA
-*-INT8R NAT ,'A ~IjByA8"BOURN
The boeoodl ow on hU fp dv flot
onePIY endoflrs W nir -ccpta- by the
horeddine f~~~~~~~~~~~~~~old~ Bo-k en is offi1Wcoo
FIRST URBAN' SEWERAGE PROJECILAND AREAS BORDERING L(AKE OF TUNIS
O ~~BENEFITTING DIRECTkY FROM PRQJECT
~A BNEFITTING
R~ieD APRE A NS1DERb B
ROADS
MEGRINE ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~RAiLW6A<$
KIL0METERS 2 3~
MILESDECEMBER 1974
Abu~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
_ -- n -'1
/ g t :5l' i f H \: C 5 W CY /....*
I V f d ; ; f * O I E > .I _ Sg Et X f ;U , )A~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -"G-E
: ; : 1 X 1 1 1 R y Ç ; g m ,SS a C O -N`'eWL:E~~~~~~~r* p:"* l 0 ;9
5: : y: >,
1:'-l `,- zf I~
IBRD 11212(~~~~~A NOUB /LE ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~LA ~~~NGOULJETTE OPEBR17
J X ~~~~~~~~~~A D \L ok o! :florna t - ys,
`/ > '"`'"oX, ""\s\S ,TUNIS ' ( ,
,, \ \ / R ~~~~~~~~~~~~~~~~~~~~~~~~~MÎIN f /
IBRD 11213 L FOUCHANAE
! /~C3
É, ' ' 2 `.La Mao7R '-N.) TJl<S e EXISTING PROJECT
NORTli COASTAL ZONE "Z | ,OLE3 6 SEEWENs TUNISIASE E COES MAI RO … - ______
_TREATEDSEWAGEDISCHARGE _FIRST URBAN SEWERAGE PROJECT= / ,' v 9 } I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~STORMORAINS ......
I O SEO,MTATIUNS TUNIS DISTRICT, SOUTH COASTAL PART!EIAo~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I
C~ ~ ~~ ~,p~ .A F.: < `t TUNISIS., \INER EPINSTTI FLRST STAGESEWUSETOREATUENT PLANT l S TGU N 1 S 1 A l~~~~~~~~~~ITESEFPTOR CNALNS -
IBRD 11212 STSEM*_TER_OESCELMS E* STOREMUTER O FO
TOR ;i'ROVES 0 1 2 3 4
oF .- ~~~~~~~~~~~~~~~~~~~~~~ T..... OURIS. PROUEC ZON E 90USUUS- (EUNIS SOUTH) 1iLO ER
- IUSORIT BOUNUARIES MILES.L, t \ 9 X, rUNv1T 2Z Y A MUNICIPAL BOUN9ARIES M
-~ i ESOUTH I1 L I B Y A EUILT UPAEAS
_ .-SOU11211Tg ZCLNE ` S T $ X TS r R 2 | e RAILPOADS
RD 11211 ) ZONE~~~~~~~~~~~~~~~~~~~~ERUU
IBRD 11213.; . t:H5 ;n;:1 ,:ge!f: :82 Xg / ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~SEPTEMEER 974IBRD 11213 IBRD 1i / */S
N ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~UI
N HOASTAL : ti NA!, ym/\\ <.. < ;`.ZONE
0
T11
'N 1 S 1
IBRD 11212 jf 0 3-
ASTAL h 1 g L , I N /, \
TUNISIA N GP 10
FIRST URBAN SEWERAGE PROJECT /TUNIS DISTRICT, CENTRAL COASTAL PART -/
FIRST STAGE _ - \EXISTING PROJECI --
- GRAVITYCOLLECTORSEWERS - /
--- …--- SEWERFRCE MAINS ------ ARIANATREATEDSEWAG DISCHARGE - \ r/
SOTONU RAINS .....-.
PUMPINdSTATIONS
SEINAAETREATMENTPLANSTS siÇ "INTEOEPTOR CANALS El Aouino
ARCHIIMEDEASOESCROWPUMS | //*\ » ror, i
STORMWlATERD VERLOWS *\* ff OZfORRPEOASS<1
...TOURISMPROJECTZONE OSNOARY (TUAIS NORTIHI
M - NNICIPAL SOUNWA 5
BUILO-URAREAS . L* o T s
RAI I Rl RA,
d d7->T, /' \ ' m %,f1P: 2 j: :::; ' :4, :: ES i x i :\O I TI , I \M
A\ / .'E:,'E":-:S2pla tnr
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