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The World Bank
FOR OFFlCaAL USE ONLY
RepwtoNo. 9166
PROJECT COMPLETION REPORT
COSTA RICA
SAN JOSE METr-0POLITAN AREA WATER SUPPLY PROJECT(LOAN 1935-CR)
NOVEMBER 30, 1990
Country Department IIInfrastructure and Energy Operations DivisionLatin America and the Caribbean Region Office
This document has a restricted distribution and may be used by recipients only in the performance oftheir oMcial duties. Its contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS(As of March 1990)
Currercy Unit Colon (C)US$1.00 - C 85.9
WEIGHTS AND MEASURES
1 meter (m) - 3.28 feet (ft)1 kilometer (km) = 0.62 mile (mi)1 millimeter (mm) = 0.039 inches (in)1 cubic m/s (cums) = 22.82 million US gallon/day1 liter (1) - 0.26 US gallons
GLOSSARY OF ABBREVIATIONS
AyA - Costa Rica - Water Supply an( Sewerage InstituteCDC - Commonwealth Development CorporationFRAU - Revolving Fund for Urban Water SupplyIDB - Inter-American Development BankMH - Ministry of HealthPAC - Community Self ProgramSENAS - National Service for Underground WaterSJMA - San Jose Metropolitan AreaSNE - National Electricity Service
T* W OPID FOR OFFCIAL USE ONLYWN"0on. OC. X033
U.S A
Office of Dtreet.rw-4gral
November 30, 1990
MEMORANDUM TO THE EYECUTIVE DIRECTORS AND THE PRESIDENT
SUBJECT: Project Completion Report on Costa RicaSan Jose MetroRolitan Area Water SuPDYl Project (Loan 1935-CR).
Attached, for information, is a copy of a report entitled 'ProjectCompletion Report on Costa Rica - San Jose Metropolitan Area Water Supply Project(Loan 1935-CR)" prepared by the Latin America and the Carribean Regional Officewith Part II contributed by the Borrower. No audit of this project has been madeby the Operations Evaluation Department at th4.s time.
Attachment
Tho Ooment bha vmuw dMaWsuo and may be and by mapW=Um y m Ub P.ifnmgd It"cfodIut is ^Zy nototin e hdacsd wtIoul World PmnSLDn.
FOR OFFICIAL USE ONLY_OSTA RICA
PROJECT COMPLETION REPORTSAN JOSE METROPOLITAN AREA WATER SUPPLY PROJECT
(LOAN 1935-CR)
TABLE OF CONTENTS
Page No.
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iEvaluation Summary . . . . . . . . . . . . . . . . . . . . . . . .
PART I PROJECT REVIEW FROM BANK'S PERSPECTIVE
Project Identity .1... . . . . . . . . . . . . . . . . . . .
Background . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Project Objectives and Description . . . . . . . . . . . . . . 2Project Objectives . . . . . . . . . . . . . . . . . . . . 2Project Description . . . . . . . . . . . . . . . . . . . . . 2
Project Design . . . . . . . . . . . . . . . . . . . . . . . . 3
Project Implementation . . . . . . . . . . . . . . . . . . . . 3Loan effectiveness and Project Start-up . . . . . . . . . . 3Implementation Schedule . . . . . . . . . . . . . . . . . . 3Procurement . . . . . . . . . . . . . . . . . . . . . . . . 4Project Cost . . . . . . . . . . . . . . . . . . . . . . . 5Disbursements . . . . . . . . . . . . . . . . . . . . . . . 5Loan Allocation . . . . . . . . . . . . . . . . . . . . . . 5
Project Results . . . . . . . . . . . . . . . . . . . . . . . 5Project Objectives . . . . . . . . . . . . . . . 5Financial Performance . . . . . . . . . . . . . . . . . . . 6Project Impact . . . . . . . . . . . . . . . . . . . . . . 6
Project Sustainability . . . . . . . . . . . . . . . . . . . . 7
Bank Performan_e . . . . . . . . . . . . . . . . . . . . . . . 7
Borrower Performance . . . . . . . . . . . . . . . . . . . . . 9
Project Relationship . . . . . . . . . . . . . . . . . . . . . 10
Consulting Services . . . . . . . . . . . .. , . . . 10
Project Documentation and Data . . . . . . . . . , . . . 10
PART II PROJECT REVIEW FROM BORROWER'S PERSPECTIVE. . . . . . . 11
This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
TABLE OF CONTENTS (Cont.)
Page No.
PART III STATISTICAL INFORMATION
Table 1. Related Bank Loans and/or Credits. . . . . . . . . . 1.2Table 2. Project Timetable. . . . . . . . . . . . . . . . . . 12Table 3. Loan Disbursements ................ . 13Table 4. Project Implementation . . . . . . . . . . . . . . . 14Table 5.A Project Costs ..... .. . .. . . .. . .. . . 15TRble 5.B Project Financing ................ . 16Table 6.A Project Results: Direct Benefits . . . . . . . . . 17Table 6.B Economic Impact . . . . . . . . . . . . . . . . . . 18Table 6.C Studies . .................... . 19Table 7. Status of Covenants .... . . . . . . . . . . . . 20Table 8.A Use of Bank Resources: Staff Inputs. . . . . . . . . 22Table 8.B Missions .2.3................... . 23
ANNEXES
ANNEX 1 Monitoring Indicators . . . . . . . . . . . . . . . . 24ANNEX 2 AyA Income Statements ... . . . . . . . . . . . . . 25
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COSTA RICA
PROJECT COMPLETION REPORT
SAN JOSE METROPOLITAN AREA WATER SUPPLY PROJECTLOAN; 1935- CR
PREFACE
1. This is the Project Completion Report (PCR) for the San JoseMetropolitan Area Water Supply Project in Costa Rica, which waspartially financed with Bank Loan 1935-CR in the amount of US$26.0million, approved on December 1980. The Borrower is the Costa RicanWater Supply and Sewerage Institute (AyA). The loan was closed on June1988, four years behind schedule. Disbursements against commitmentswere made until June 1989 and an outstanding balance of US$51,524 wascancelled.
2. The Infrastructure and Energy Operations Division, DepartmentII of the Latin American and the Caribbean Regional Office (LA2IE)prepared Parts I and III of the PCR based inter alia, on the StaffAppraisal Report; the Loan and Guarantee Agreements; supervisionreports; progress reports; correspondence between the Bank and theBorrower and; internal Bank correspondence. The Borrower prepared PartII of the PCR. Comments received from the Borrower on Parts I and IIIof the PCR were taken into account in this final version of the Report.
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PROJECT COMPLETION REPORT
COSTA RICA
SAN JOSE METROPOLITAN AREA WATER SUPPLY PROJECT
(LOAN 1935-CR)
EVALUATION SUMIARY
Oblectives
1. The project's main objective was to provide additional safewater for the San Jose Metropolitan Area (SJiA) and to reduce watershortages in this area, especially ring the dry season. In addition,important project objectives were to evelop an economically andfiniancially sound sector investment program, improve the planning ofwater supply and sewerage services and strengthen AyA's management,-inancial and planning capacity. Also, the project aimed to make AyAfinancially self-sufficient and to establish the basis for futureinvestments outside the SJKA, where service levels are lower (para.3.01)
2. Wlile the physical targets of the project were achieved,although with delays, the project did not completely achieve itsinstitutional objecdives, which were too ambitious (paras. 3.02 and4.03); major managerial problems, which finally ended with areorganization of AyA, led to an adjustment of these initial objectives(paras. 5.02 and 6.01). The financial objectives were not met and thefinancial situation of AyA continues to be very weak (paras. 5.02 and6.02).
Implementation Experience
3. It took over eighteen months between loan signing andeffectiveness, mainly due to the delay in fulfilling conditions foreffectiveness requiring the obtention of a loan from CommonwealthDevelopment Corporation (CDC), and the non-compliance by AyA offinancial provisions under the Bank loan as well as delays in obtainingratification by Congress of the Bank and CDC loans. In addition to thisdelay, there was an initial delay in project execution, due tomanagement deficiencies, financial difficulties and procurement issues.Once these were solved, after about two years from the effectivenessdate, project execution moved smoothly. The project was completed inaccordance with the original scope, but 5.5 years behind schedule.Despite this delay, however, actual project cost (expressed in US$) wassimilar to the appraisal estimate because: (1) the original costestimate was too conservative; and (ii) the rate of devaluation of theColon did not keep pace with domestic inflation (para. 5.05).
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Results
4. The conntruCtion of the Orosi water scheme has solved the
water ratioining problem in the SJMA and has improved the water quality.
The expansion and rehabillitation of the distribution netw rk hasprepared the water system to cover the demands of the increasingpopulation. Major improvements in AyA's commercial and financial
management, providing an improved basis for the utility's future, havebeen achieved, even though the opetating and financial performance of
AyA has not improved as expected (para. 6.05). The actual rate ofreturn of the Cro4i water scheme is about 102, which compares reasonably
with a retutn on t.ice project of 12.42 estimated at appraisal (para.
6.04). Neither of these figures consider important benefits arising
from externalitiPs ancl constimet stitp]us, s5 that. it may be reasonablyargued that ex post the project remains economically justified.
Sustainability
5. Sustainahility of th9 Orosi water scheme will te sectured if
efficient operation antd maintenance practices are implemented and if the
distribution system can keep pace with population growth and increasing
water demands. In addition, a continued management effort in thecommercial, operation and maintenance areas is needed to reduce the
level of unaccounted-for water, so that the water produced through the
Orosi scheme fully benefits the population. Together with these aspects
and to ensure the financial viability of AyA, there is a need to improve
the operational performance of AyA, to increase tariffs and to establish
a mechanism for periodic tariff adjustments (para. 7).
Findings and Lessons Learned
6. In projects involvinig complex teclhnical works, procurement
issues should be discussed thoroughly (during project preparation and,upon agreemenit, immediate actions shouldl be taken to train the local
staff involved in the procurement process, to ensure that theyunderstanid the Batik's requiteinents. This is of major importance when
the Borrower has no experience with Bank operations, and local
procurement procedures differ substantially from Bank practices (paras.
5.03 and 8.02(a)).
7. Institutional development of borrowers or entities with a
large scope fot improvement should be sought by sharpening the focus of
the institutional development issues towards sustainability. Thus, a
water agency with a poor operational and financial performancE should
focus its institutiuoial developmenit program in an initial stage, on thedevelopment and implementation of an unaccounted-for water program
(para. 8.02(b) and 9.03(b)).
8. The use of the working ratiu as a financial covenant should be
considered when the water agency has been incurring operating losses for
a period of time and when there is not a formal methodology in thecounitry or agency for fixed assets revaluation (para. 8.02 (c)).
9. Greater attention should be given to the water supply and
demand estimations, particularly because they are so important to the
financial projections. In this project, they were both respectivelyunder and overestimated (paras. 6.02 and 8.02(d)).
COSTA RICASAN JOSE METROPOLITAN AREA WATER SUPPLY PROJECT
(LOAN 1935-CR)
PROJECT COMPLETION REPORT
PART I: PPOJECT REVIEW FROM BANK'S PERSPECTIVE
1. Proiect Identity
Name San Jose Water Supply Project
Loan No. : 1935-CR
RVP Unit : Latin America and Caribbean RegionCountry Department II
Country Costa Rica
Sector W zr and Sanitation
2. Backzround
2.01 The development of water supply and sanitation in Costa Ricais primarily entrusted to two Government agencies: the Costa RicanWater Supply and Sewerage Institute (AyA), which is the nationalinstitution responsible for urban and concentrated rural communities,and the Ministry of Health (MH), responsible for dispersed ruralcommunities. In addition to these two agencies there are alsoindividual municipalities that manage their own systems, as well as twopublic entities that play an important role in the Sector: the NationalElectricity Service (SNE), which regulates tariffs and administers theGeneral Water Law, and the National Service for Underground Water(SENAS), which carries out groundwater exploration and developmentprograms.
2.02 The Water Sector objectives at the time of project appraisalwere to: increase water and sanitation coverages especially for theurban and concentrated rural populations through house connections;improve the continuity of the water service especially in the capitalarea of San Jose where water shortages and intermittent service existed;improve the planning and allocation of public resources for water andsewerage services; strengthen AyA's managerial capabilities ininvestment planning, capital budgeting, financial and managerialaccounting and billing; reduce the levels of unaccounted-for-water;develop a water and sewerage master plan; and, develop a comprehensiveplan for the Revolving Fund for Urban Water Supply (FRAU), created bythe Government to support the municipalities with the construction ofwater supply and sewerage systems.
2.03 The San Jose Water Supply Project was the Bank's firsteffort to assist the Government in the development of the sector and hascontributed to the achievement of the sector objectives aforementioned.
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The construction components of the project have enlanced the water
supply service coverage in the capital area of San Jose and particularlyhave solved the continuity problem of the water service in this city.The institutional development component has enabled AyA to improve its
managerial capability, especially in the operational planning andcommercial areas. The master nlan project component has provided the
basis for future water supply and sewerage development in the San Jose
Metropolitan Area (SJMA). Tne project did not directly affect thesewerage service nor the Revolving Fund ior Urban Water Supply (FRAU)
because of its decapitalization during the period 1981-83.
3. Project Oblectives and DescriRtion
3.01 Project Obiectives: The main project objectives were to: (a)
develop an cconomically and financially sourd sector inve.stment program;
(b) strengthen AyA's management, financial and planning capacity; (c)
provide additional safe water for the San Jose Metropolitan Area (SJMA);
and (d) improve the planning of future water supply and sewerageservices. The Project would also help make AyA financially viable and
establish the basis for future investments outside the San Josemetropolitan area where service levels are lower.
3.02 Project Description: The project comprised the fo lowing
components:
(a) increase the capacity of the SJMA water system by 1.P
m3/sec through the construction of 28 km of raw water
transmission line; expansion and upgrading of the watertreatment plant, and reinforcement of the treated watertransmission system;
(b) replacement of old and undersized water mains serving theSJMA (24.5 km);
(c) purchase and installation of about 30,000 water meters
and accessories;
(d) preparation of a water supply and sewage services masterplan to the year 2000 for the SJMA; and
(e) strengthening of AyA's organization and management in thefollowing areas: (i) invastment planning and capitalbudgeting; (ii) supervision and administration of theRevolving Fund for Urban Water Supply (FPAU) and of theCommunity Self Help Program (PAC); (iii) standards used
for the design and construction of urban and rural watersupply and sewage systems, including subproject selection
criteria; (iv) accounting and billing; (v) organizationand management structures including decentralization and
regional operations; and (vi) training. In addition, it
included the improvement of AyA's program to reduce
unaccounted for water as well as the strengthening ofAyA's groundwater development program.
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4. Proiect Design
4.01 The conceptual foundation of the Project was provided by thestrategy established by the Bank to lend initially for a large priorityproject in the SJMA. The lesrccns to be learned were to be applied byAyA to its other systems and passed on to the municipally-operatedsystems through AyA trainirg programs. Although the project componentswere designed for the San Jose area, the loan agreemert included acovenant of "project preparation" for sixteen medium-and small-sizecities with water shortages outside the SJMA. AyA agreed to prepare thepreinvestment scudies for these sixteen cities.
4.02 T.ae scope and scale of the project were appropriate in lightof its objectives and recurring water shortages in San Jose. Atappraisal the project execution period was estimated to be 3 years.This timing was too optimistic, taking into account the complexity ofthe tasks, the financial weakness of AyA, and the lack of experience ofAyA with a relatively large project and with Bank operations (ingeneral, in Latin America the execution of water projects with similarcomponents takes around 6 to 7 years). During the preparation of theproject the need for cofinancing was established but the time needed forthe fulfillment cf cenditions of effectiveness Af the cofinancing agencywas not realistically assessed when processing the Bank's loan.
4.03 In retrospect, the design of the technical assistancecomponent was too general and ambitious and lacked a sense of priority,in an agency that had much scope for improvement.
4.04 AyA was responsible for the implementation of the project, andits staff carried out most of the preliminary and final designs of thewater supply and distribution project components, as well as thepreparation of the terms of reference for the technical assistance andmaster plan.
5. Project Jmplementation
5.01 Loan Effectiveness and Project Start-up: Although Loan1935-C., was signed in January 1981, it became effective only in August1982, a delay of over eighteen months. The main reasons for this delaywere the non-fulfillment of conditions of effectiveness requiring .heobtainment of a loan for £6 mill'on from the Commonwealth DevelopmentCorporation, CDC; the extended delays in obtaining Congress ratificationof Bank and CDC loans; and the non-compliance by AyA of covenantedf'.nanctal provisions.
5.02 Implementation Schedule: The appraisal report stated that theproject would be corpleted within 3 years of start-up, or by December,1983. However, the Project was completed in ac.-edarice with theoriginal scope in June 1989, a delay of 5.5 years. When the originalloan closing date expired on June 30, 1984, the project was about 3-1/2years behind schedule. The Bank extended several times this closingdate by six months or oiie year, in order to keep maximum pressure on AyA
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to improve its finances, its operational efficiency and to solve theprocurement issues in a reasonable period of time. Although there wasan initial delay in proiect execution because of the problems detailedbelow, once these were solved, after two years approximately fromeffect'.veness date, project execution began to move smoothly. The main
reasons for the initial delay were:
(a) Management deficiencies. Deterioration of AyA'smanagement began by early 1983 with changes in toppositions and in 1985 the Government suspended AyA'sBoard Lf Directors and appointed a "Junta Interventora"(Board of Overseers) which oversaw AyA major managerialdeci_ions until October 1988. During this period AyA wazreorganized, its senior managament was replaced andactions were initiated to improve its commarcial,financial and accounting systems that were then causingserious management problems.
(h) Financial situation. Throughout project implementationthis was a continiuous problem. It was aggravated in '985due to the unexpected breakdown of AyA's customer billingsystem, which precipitated a financial crisis andresulted in AyA relying on Government contributions topay its operating expenses. To address AyA's financialproblems, the Government and AyA, at ;he urging of theBank, implemented a number of measures including thereduction of staff, the improvement of AyA's billing andcollections, and adjustments in water tariffs.
(c) Procurement issues. Cumbersome and lengthy procurementprocess, because of locel procurement procedures andmechanisms, and lack of AyA's experience with Bankprocurement ptocedures.
5.03 Procurement: Procurement actions were slow and faced manyobstacles in the initial stages of project execution mainly due to theunfamiliarity of AyA and Government with Bank procurement requirements.Also, once AyA selected contractors and the Bank approved awards,bidders complained to the Contraloria General (this is allowed for, anda frequent practice, under t':e legislation of Costa Rica), whichultimately reversed awards. To expedite tne construction of the mainproject works, which were of highest priority to the Gove~rnment due to
increasing severe water shortages in the SJMA, the Government invokedits emergency powers and established a Special Emergency Commission inMarch 1984, chaired by the Vice President of the Country, with theauthority t-) award contracts directly without recourse to theContraloria. Once this Special Emergency Commission was established,procurement went smoothly and in accordance with Bank procedures.
5.04 Despit- the initial setbacks, the consultancies, services,goods and civil works were procured under procedures satisfactory to theBank and were mostly procured through ICB.
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5.05 Project Cost: The estimated co,t of the project at appraisal
was US$55.3 million, while the final cost according to AyA was US$54.3
million, as shown in table 5A of Part III. There were no major
variations between the appraisal estimate and the total actual project
cost (expressed in US$), even though the project was completed 5.5 years
behind schedule, the technical assistance component was modified during
project execution, and additional expansion and rehabilitation works
were included under the distribution network component. This was
possible because: (i) the original cost estimate was too conservative
and (ii) the rate of devaluation of the Colon did nlot keep pace with
domestic inflation. Because of the devaluation of the British pound
against the US dollar after project appraisal, CDC agreed to increase
its initial funding to AyA of £6 million to £9.1 million, equivalent to
US$12.8 million (approximately 24Z of the total cost), while the Bank
contributed with the financing of 482 of the total cost. wliich was the
percenitage estimated at appraisal.
5.06 Disbursements: The actual and estimated disbursements of the
loan are given in table 3 of Part III. As mentioned previously (para.
5.02), the disbursements were first delayed due to delays in loan
effectiveness and in project implementation. Disbursements against
commitment^ were made until June 1989 and an outstanding balance of
US$51,524 was cancelled.
5.07 Loan Allocation: The original, revised and actual allocations
to the various project components are shown in table 5B of Part III.
The original allocations were revised in 1987 and 1988 to include the
financing of goods and works needed to protect the Orosi pipeline and
the surrounding environment; the addltional works on the distribution
network; and the extension of the termination date fnr the
capitalization of interest accrued during constructian.
6. Project Results
6.01 Project Objectives: The physical targets of the project were
substantially achieved, as shown in table 4 of Part III. The overall
increase of the water services in the SJMA as a result of the project is
more than expected at appraisal; the results are given in table 6 of
Part III. Thus water rationing is no longer a problem in the SJMA and
water qu1ality has also improved. Nevertheless, the objectives of the
technical assistance component in organization and management were
adjusted during project execution, due to the fact that the priority
needs of AyA had changed from the time of appraisal to the time of
implementation. Thus, the objective of this component became to develop
and implement new computerized systems for customer billing and for
accounting. The computerized billing system was completed in 1q89, and
the new accounting system is expected to be operational by end 1990.
The preparation of the water and sewerage master plan fcr the SJMA,
which was incluidedI under this project, was financed by che IDB and
completed in December 1989.
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6.02 Financial Performance: The income statements including bothappraisal estimates and actual results for FY80-88 are given inl Annex 2.As shown in this annex, the financial performance of AyA duting projectexecution was unsatisfactory and AyA never complied with the covenanteufinancial tate of return on tevalued assets. The main differencesbetween the appraisal and actual olperational and financial results are:(i) local inflation was underestimated, thus generating anunderestimation of the total operational costs; (ii) water demand forthe SJMA was overestiimated by approximately 35% (Actual: 34m3/mo./conn.; Appraisal: 46 m3/mo./conn.) thus generating anoverestimate of SJMA revenues; (iii) higher than expected operatingcosts per connection (actual operating costs per connection exceedecdapptaisal estimates by 116Z), thus generating an Underestimate of thetotal operational costs. The actual personnel costs are 70% of thesetotal operational costs (a ratio that is excessively high for a utilitycompany), even though measures were implemented during project executionto reduce tthem.
6.03 In addition to these facts, the Government on severalinstances delayed the approval of tariff increases needed in order tokeep tarif's in line with inflation and the expected reduction of theunaccounted for water did not occur, (Actual: 422; Appraisal: 252),thus the financial position of AyA dicd not improve during projectexecution. Nevertheless, despite AyA's poor financial performance, theexecution of the project was not adversely affected as the Governmentprovided the necessary counterpart funds in a timely manner. After anew Government took office, in May 1990, water rates were increasedsubstantially and AyA's financial prospects have IIow improved.
6.04 The rate of returni on the investment in the Orosi water supplyscheme and associatecd listribt iIon works is now estimated at albout 10!,as showni in Table 6B of Part III. This compares reasonably with a
return on the project of 12.4. estimated at appraisal, given the lowerwater consumptions and( tariffs, higher operational costs and delays inimplementation. Neither of these figures takes into account consumersuLplus or exteLnalities, such as liealth ancd envitonmental. benefits, soin that sense both underestimate the econoniic worth of the project. Thedata available does not presently allow a more comprehensive estimate.
6.05 Project Impact: The project made a major positive impact onthe water sector of the SJMA ancd is considered a major accomplishmenitfor the country, as for the first time in recent history, there are nowatet shortages in the SJMA cduiring the (Iry season. In addition, it haspermitted the extension of setvices to cover the demands of theincreasing urban development of the SJMA. From a technical point: ofview, the construction of the Orusi water supply pipeline was a complextask as it involved the installation of 28 Km of 1100mm ldiameter wstermain through virgin juntgle uith steep slopes and very rough terrains.Thie project also supported major improvements in AyA's institutionaldevelopmnent. The design andl implementation of a new computerizedbilling ancd accounting systems. together with thie purchase of computerequipment, has allowed AyA to handle its commercial and financialmanagement in a more efficient way and thus improve its overallmanagement. Nevertheless, as evidenced from the financial performance,the operating performanlce of AyA did not improve as expected:
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uniac counted for water hlas noit bePen re(lt' ed- to t he ex'P(cted levels(althouglh improvements have b)een made in the ident if iat ion of thecauses, whi(h will facilitate thie formtlattion of a better focusedunaccounted for water program): and the number of employees stillremains higli, although measures were taken in order to suspend thlehiring of new personnel. Basic monitorinig indicators are given in Annex1. Also, the preinvestment studies for sixteen medium and smalL sizecities prepared under this project have served as the basis for theexecution of an IntLeramerican Development Bank (IDB) financed project.
7. Project Sustaimiability
7.01 The major accomplishments uf the project have been to increasethe quality and coverage of the water service in the SJMA, especiallyduring the dry season and to strengthen the commercial and financialmanagement of AyA providing an improved basis for the utility's futuregrowth. Sustainahility of these accomplishments will be secured ifefficient operation and maintenatnce practices of the Orosi water supplyscheme are maintained and the distribution system (network plus storage)is expanded in accordance with the future population growth and theincreasing water demands. A continued management effort, especially intt'? commercial, operation and maintenance areas is needed, in orcier toreduce unaccounted fot water level so water producecl through the Orosisclheme fully benefits a larger number of the population which willreceive the services and thus generate the expected revenues. Togetherwith these aspects and to ensure the financial viability of AyA, thereis a need to review the tar iff policy, tariff levels and structure, andto establish a mechanism for periodic adjustments of tariffs to reflectthe economic cost of providing these services. Actions taken recentlyby the Government are a satisfactory first step in this direction (para.6.03). AyA has incdicated its interest in further Bank assistance toconsolidate the institutional stLengthening gains achieved with thisproject, to continue the improvement and expansion of t.he water supplyand sewerage svstems, and to improve the unaccounted-for-water levels.
8. Bank Performance
8.01 The Bank made a positive contribution to the physical andinstitutional develoipment of tlhe SJMA water sector, even though theachievements in tlhe financial area and in the institutional improvementof AyA felt short of those expected. Bank performance was generallysatisfactory: though it is possible that a more thorough preparationeffort coul(d have helped to avoid some of the problems t-hat were facedlater. Bank staff contributed since project preparation withprofessional advice that led to the identification of the Orosi waterscheme as the least cost solution to solve the water shortages of theSJMA. During implementation, the Bank demonstrated its willingness tosupport AyA by extending the closing date while pressing for tariffincreases and operational efficiency improvements; advisinig AyA on thescope and priorities of institutional development actions and supportingthem with detailed discussion of terms of reference and the procurementof new computer eqtuipment and the services of international consultantsfor the new billing and accountinig systems: allowing AyA to use otherfunds to tinianice the preparation of the water and sewerage master plan;showing flexibility to solve the problems generated by the appeal of
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awards and supporting AyA and the Government in the search for ways toreevaluate bids in a manner consistent with Bank's ProcurementGuidelines while avoiding rebidding, which would have been very timeconsuming.
8.02 However, in retrospect, the following lessons may be learntfrom the experience in the project:
(a) The Bank underestimatecd the capacity of AyA to handle acomplex technical work and the time relquiePd to conductprocurementt. itl the country. Procurement proceduresshould he discussed thoroughly during project preparationand, upon agreement, immediate actions should be taken totraiti the local staff involved in the procurement processin the formulation of the bidding documents, to ensurethat they meet tthe Bank's requirements.
(b) The objectives of the institutional development componentwere too broad and very optimistic, if one takes intoconsideration that AyA had much scope for improvement andthat the Bank had little experience with this agency.Although the results obtained under this component havehad a positive impact in AyA's management, the challengefor the future would be to sharpen the focus of theinstitutional developmenit issues towards sustainability.
(c) It does not seem adequate to establish a financial rateof return on revalued assets covenant when the wateragency has been incurring operatinig losses and whenchanges in the rate base are likely to arise from changesin the methodologies applied for the revaluation of fixedassets. This was the case of AyA, teat showeu atappraisal negative net incomes for previous years, andduring project execution varied its procedures for therevaluation of its fixed assets. In this case, theworking ratio, i.e.: the ratio of operating expenses(excluding depreciation) to operating revenues would havebeen a more appropriate reference fer a financialcovenant than the one actually used.
(d) Another aspect which should have deserved greaterattention, because it is so important to the financialprojections were the estimations of the water demand andof the water produced whiclh in this case wererespectively over and underestimated significantly, asstated in para. 6.02.
-9-
9. Bot rower Performnance
9.01 After a slow start, with strong intervention of the
Governrmlent, AyA was able to bring together a maniagerial team that
provided solid leadership in tle areas of project execution,illstitut ional dpvelopenpnt and commercial practices. The Gnvernment
futther domonstrat ed its conunitment to the project by providing the
needed counterpart funds and by assuming in 1987 AyA's debt seLvice
payments on external borrowings.
9.02 During project execution, A-m was unable to submit to the Bank
its external audit report in a timely nianner nor in general were the
external auditors able to give a fully untualified opinion of AyA's
year-end firancial results. Delays and problems in the preparation of
the external audit reports can he traced to (i) AyA's accounting system
which was overly complicated and ill-suited for the needs of the
company, thus making it difficult for AyA to close its book promptly at
year end so that the external auditors could prepare their reports by
the date covenanted in the Bank's loan agreement; (ii) a disagreement
during 1984 and 1985 between AyA and the Government over the appropriate
methodology to be used in revaluing AyA's fixed assets-- an issue which
was subsequently resolved to the satisfaction of both parties; and (iii)
the collapse of AyA's billing systpm in 1985 which made it impussible
for AyA and its external auditors to establish accurately the level of
AyA's accounts receivable. The Bank repeatedly urged AyA to take
actions to address the above-mentioned problems, so that AyA could
comply with the Bank's audit covenant. In response, as mentioned
previously, AyA has developed and implemented a new computerized billing
system and is in the process of installir.g a new accountinig system.
With the introduction of these new systems, AyA and external auditors
are expected in the future to be able to prepare satisfactory audit
reports.
9.03 However, in retrospect, the following lessons may be learnt
ftom this project:
(a) Internal cash generation of AyA is weak and needs to be
strengthened through tariff adjustments, reductiotns in
operating costs and the establishment and application of
a consistent cost recovery policy. In this regard the
Governmenit's past commitment to basing tariffs on
economic criteria has been weak, and often influenced by
other short-term considerationus.
(b) AyA should give priority to the implem, tation of its
unaccounted-for water program, in order to improve its
opetational performance.
- 10 -
10. Project Relationship
10.01 Bank relationship with Government and AyA has been good,despite the initial high turnover in AyA's management. The projectrequired heavy supervision effort by the Bank to ensure that, oncestarted, project execution remained on track. Bank relationship withthe cofinancing agency, CDC, was very smooth and mutually supportive,and in general the two institutions carried out simultaneous supervisionmissions.
11. Consulting Services
11.01 Project consultants provided valuable assistance to AyA inproject implementation, particularly for the development andimplementation of a new computerized hilling and accounting systems, aswell as in the definition of the new hardware needed for theseapplications. The project supervision engineers also provided inputsand support in guarantying that the works were completed on schedule andwithin budgPts. In addition to these consultancies, a team of
international consultants prepared for AyA the master plan study and theseveral engineering designs of the Orosi scheme. In general, theperformance of the consultants was satisfactory.
12. Project Documentation and Data
12.01 The legal agreements for the project were adequate, exceptthat the covenanted financial rate of return on revalued assets does notseem to have been the more appropriate covenant, as stated in para. 8.02
(c))
12.02 Original project documentation was satisfactory; however, theoperational ancd financial forecasts macle at appraisal covered only 3years, while ac;tual project execution lasted 7 years. Thus, theappraisal estimates were not fully ade(quate for the preparation of thePCR.
12.03 Although most of the data relevant to the preparation of thePCR was available, its access was niot simple because AyA's audit andprogress reports and Bank supervision reports were not consistent. Easyaccess would he possible if after each supervision mission, the ProjectImplementation File is updated in all its Sections, even if no majorprogress has been achieved in ea(h one of them and if the Borrowerfollows a consistenit presentation of its audit and pLogress reports.
-11-
PROJECT COMPLETION REPORT
COSTA RICA
SAN JOSE METROPOLITAN AREA WATER SUPPLY PROJECT (LOAN 1935-CR)
PART II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE
1. Evaluation of World Bank participation in the project.
a) We consider the Bank's participation in all the stages of the projectto have been very opportune and of great value and assistance tocarrying out the project and institutional strengthening.
b) Communications between the Bank and the Institute were smooth andfree of problems.
c) Once the project was identified, the Bank's participation was veryvaluable not only in choosing alternatives but in discussions withAya before the local authorities to decide the best project. Hadthis not been the case, it would have created great difficultiesfor the Institute.
d) It is important to highlight the improvement in the commercial,financial, and operational areas as a result of the institutionalstrenghthening components of the project.
e) With regard to supervision, around 1984 there were obstacles andinterference, especially in procurement, which were subsequentlyresolved and supervision of the project was considerably helpful,not only for the project but also for the improvement of Aya.
2. Evaluation of Aya's Participation
a) Project identification and preparation by Aya's professionals weregood and were accepted by the Bank.
b) In the execution stage of the project there were problems ir. 1984related to local procurement procedures that delayed the works.This situation was not adequately managed by the Institute. Afterovercoming these problems, project execution moved quickly andsatisfactorily.
c) Supervision of works and the consultants' contracts for thedevelopment of the commercial and financial components, as well asimplementation of the same, are proof of successful participationon the part of tU Institute's staff.
-12-
PROJECT COMPLETION REPORT
COSTA RICA
SAN JOSE METROPOLITAN AREA WATER SUPPLY PROJECT (LOAN 1935-CR)
PART III: STASTISCAL INFORMATION
1. Related Bank Loans and/or Credits: None.
2: Project Timetable
Date Date DateItem Planned Revised Actual
- Identificat4on 01/80
(Executive ProjectSummary)
- Preparation 04/80
- Appraisal Mission 05/80
- Loan Negotiations 10/80 10/80
- Board Approval 12/80 12/80
- Loan Signature 01/81 01/81
- Loan Effectiveness 05/81 7/81; 10/81; 4/82; 08/82 1/7/82
- Loan Closing 06/84 06/85; 12/85; 6/86; 06/886/87
- Loan Completion 12/83 9184; 3/85; 12/86; 06/89 2/12/87
1/ Delays in effectiveness were due mainly to legal and financialprovisions not complied by AyA.
2/ The actual loan completion is the date of final disbursement.
3. Loon Disbursements
Cumulative Estimated and Actual Disbursements---------------------------------------------------
(US$ Millions)FY 1981 1982 1983 1984 1985 1986 1987 1988 1989------------------------------------------------------------------
Appraisal Estimate 4.7 16.9 24.9 26.0 - - - _ _
Actual - - 0.9 1.6 2 9.9 19.2 22.7 25.9
Actual as Z of Estimate 0 0 4 6 8 38 74 87 100
Date of Final Disbursement: June 5th, 1989.
TIMELINE OF PLANNED, REVISEDAND ACTUAL DISBURSEMENT SCHEDULES
Million USS
25
10
1980 1961 1982 1983 1984 198 1988 1987 1988 1989
=Actual =Revised E 3Appraisal
-14-
4. Project Implementation
AppraisalIndicators Estimate Actual
Indicator 1 28 km. of raw water 28 .5 km.transmission line.
Indicator 2 Expansion of 1.5m3/sec. of the Expansion 1.8 m3/Sec.Tres Rios water treatment plant.
Indicator 3 11.3 km. of treated water 25.7 km.transmission pipe.
Indicator 4 Replacement of 24.5 km. of water Not executedmains and 2,600 water connections.
Indicator 5 Purchase and installation of 30,000 60,000 meters.water meters.
Indicator 6 Water and sewerage master plan Completed by December 1989.until year 2000. With outlook to year 2010.
N.A. - Information not available
5. Project Costs and Financing
A. PROJECT COSTS
(U S M I L L I O N)
Appraisal Estimato Actual
Local Foreign
Item Costs Exchange Total Total 2/Costs
1. Orosl Water Supply 16.3 18.2 84.6 84.0
Schem
2. Dltribution System 0.6 0.7 1.2 10.0Rehabilitation
3. Water Mators 0.7 0.7 1.4 1.4
4. Master Plan Study 0.4 1.1 1.5 1/ 0.0
S. Technical Asslitance 0.3 1.0 1.8 3.9
6. Contingencies 2.0 6.6 8.6 0.0
7. Interest A Financial 0.0 8.9 6.8 6.0Charges
TOTAL: 20.2 35.1 65.3 54.8
1/ Was financed by IDB.
2/ Informtion provided by AyA as of September 1988, Breakdownbetween local and foreign costs Is not available.
-16-
8. Project Financing
Planned I I ISource Loan I Revised
Agreement I (2-08) I Final
------------------------------------- ---------------- ------------------- ___
I (US8'M) # I (US'M) x I (USS'lM) x I
I1PRD | | |
I--! I IPipes, materials, 10.0 16 i 14.1 26 l 16.9 29
meters A equlpment
ICivil works 8.6 7 I 6.4 11 6.4 12
Consultnnts 3.0 6 l 2.1 4 l 1.1 2 l
llrtereot A other 4.8 8 3.4 6 2.5 6 lcharges on the loan l l
I~~~~~~~~~~~
lUnollocatod 6.1 9 - _ I _ _
I Sut-Total 2e.0 47 l 26.0 47 l 26.9 48 l
I I I IICo-Finnncing l
I Institutions I I I
. CDC 1/ 18.8 2/ 26 l 138. 26 I 12.8 8/ 24 l
1 Domestic 16.5 28 1 15.6 28 1 1.65 28 1
I ________________________________________________ _ ____________ ~____l___________________ll TOTAL: 5663 100 l 66 a.3 10 54.a looI
1/ Coeonweslth Dovolopment Corporation.2/ Equivalent to L 6 millions (1USS = L 2.8) In November 1980.
8/ Equivalent to L 9.1 millions In 1988.
-17-
6. Project Results
A. Direct Benefits
Appraisal Estimated at Estimated at fullIndicators Estimate Closing Date Development
- Additional population 193,000 103,000 2/ 366,000served (persons) 235,000 3/
- Additional connectionsWater 17,700 21,500 2/ 73,500 4/
46,300 3/
- Additional water 1.8 1.8 -produced (M3/sec)
- Additional water 1.5 1.5 -treatment (M3/sec)
- Connections metered 100 80 -in SJMA (Z)
- Connections metered 38 47 -in Regions (Z)
- Urban poor beneficiaries 143,000 75,000 -(persons) from watershortages
- Total beneficiaries 478,000 450,000 -(persons) from watershortages
1 By year 1991.2I Estimated by initial closing date of 1984.3/ Es:imated by actual closing date of 1988.4/ Consider.i-.g the expansior of the water production (Orosi pipeline) for
the SS9A.
*18-
B. Economic Impact
Appraisal ActualEstimate (At Final Development)
Econon,icRate of Return 12.4Z 9.8Z
Assumptions
Project Life 30 years 30 years
Full Development 1984 1989
Average Tariff C3.39/m3(US$0.28/M3) C18.7/m3 (US$0.23/M3)
Commentr
The main factors contribut-ing to lower IRR than estimated at appraisal havebeen implementation delays, higher operational costs, lower water consumptionand lower water tariff.
C. Stud)es
Purpose asDefined at Impact of
Appraisal Status Study
1. Weter and s-wage master plan Completed In Dec. 1909. Will permit the identificatlon
for SJMA until yoer 2000 and set the priority for water
end sewoge works In the SJMA
togethor with tho level of
nvoetmonts needed.
2. AyA'e organization and Now billing and accounting Improvemnt has beon achieved
manege"mnt lmprov-ent. systoms were completed In the comworcial and financial
by early 1999. monogement of AyA.
S. Control for unaccounted for Although the results expectod
water, have not been achieved, a
major accomplishment of tkii
otudy Is that it has permitino
AyA Ider.tify the priority
projecto to be carry out to
roeuice the unaccounted
for water.
4. Continuation of preliminary Fully completed.
investigation program for
ground water development.
-20-
7. Status of Covenants
Section Condition Status
L.A. 3.04.(i) Prepare terms of reference Terms of reference of a new billingfor organization and and accounting systems were carried out.
management study.
L.A. 3.04.(ii) Submit to Bank conclusions Terms of reference of a new billingof the organization and and accounting systems were carried out.management study.
L.A. 3.04.(iv) Catry out recommendations Design and implementation of aof the organization and new billing and accounting systems weremanagement study in carried out.accordance with atimetable satisfactoryto the Bank.
L.A. 3.05. Carry out a study of In compliance.tariff fees and othercharges.
L.A. 3.06.(a) Furnish targets for In compliance. However, these targetsachieving reductions in were not met throughout projectmeter reading and implementation and Bank continuallyinvoicing time, the asked AyA to adddress these issues.level of accountsreceivable, the amount ofunaccounted-for-water andthe ratio of employees towater connections.
L.A. 3.07. Carry out a program for In compliance. However, AyA expandedthe installation of the program to 60.000 meters.30,000 meters on water Bank had no objection to the program'sservice connections expansion.and standpipes.
L.A. 3.09.(b)(iii) Submit to the Bank In compliance.(quarterly) a reportof project implementation.
L.A. 3.11. Furnish terms of reference, In compliance by December 1989.interim reports and thedraft final report forthe Master Plan Study.
L.A. 5.02. Submit to the Bank See para. 9.02 of PCR.(annually) independentlyaudJited financialstatements.
-z1-~~~~~~~~~~~~~
Section Condition Status
L.A. 5.03.(b) Review with the Bank In compliance.(annually) financing ofAyA's overall investmentprogram.
L.A. 5.04.(a) Maintain rates required Not met.to produce an annual rateof return of not less than1.02 in 1981t 5.3S in 1982;3.52 in 1983; and 4.52in subsequent years.
L.A. 5.04.(b) Review with the Bank not Tariff levels were reviewed but,later than June 30 and their application was generallyDecember 30 of delayed and their effecteach year tariff levels. did not keep up with the expected
rate of return.
L.A. 5.05. Incur no new debt unless In compliance.service ratio is greaterthan '.3.
L.A. 5.08.(a) Furnish terms of reference In compliance.for preinvestmentstudies of 16 medium-and-small size cities.
L.A. 5.08.(b) Furnish to the Bank In compliance.for review and commentpreinvestment studies inabout 16 medium-and small-size cities.
G.A. 2.02.(b) The Government shall AyA cut back its investment programmake equity contributions as a result of the economic situation into AyA as needed for Costa Rica, but cuts did not affectcarrying out its program implementation of Bank project.during the 1980-83 period.
G.A. 2.02.(c) The Government shall provide Government provided funds for PAC program;funds for administration however limited funding of FRAU programand operation of the PAC forced cut back of its operations.and FRAU programs.
G.A. 2.02.(d) The Government shall These studies were finallyprovide adequate fund financed by IDB.for preinvestment studiesin about 16 medium- andsmall-size cities.
-22-
8. Use of Bank Resources
A. Staff inputs by Stage of Project Cycle(Staff Weeks in Field)
Project Cycle Final
Through Appraisal 20
Appraisal through -Board Ap,-oval
Board Approval 7ThroughEffectiveness
Supervision 42.5 (6 yrs.)
TOTAL 62.5
B. Missions -23-
Stags of Month/ Number of SW Specialization Performance Rating Types ofProject Cycle Year Persons In Field Represented a/ Status b/ Problemm c/
-- __-_..----------------------_--___-----------------------------------__----__-----------__---__--------------------
Through Approlool
Identification 12/79 3 6 2 EIF
Preparation 03/80 2 4 1EIF
Appraisal 0/60 4 11 1 EIF
1 EC
IC------------------------------------------------------------------------- __--__--------------------------------------
SUG-TOTAL% 20
Supervision
Supervislon 1 04/t1 3 3 1 E 2 UIF p
IT
Supervlbs n 2 11/61 2 2 1E 1IF
Supervision 3 04/t2 2 2 1 E 3 FiF
Supervision 4 10/62 a 5 2 E 2 UiF
Supervielon S 11/S2 1 1 1 E ISupervision 6 02/83 2 2 1E 2 m
IF F
Superviolon 7 00/6J 2 2 1 E 2 UIF F
Supervision 6 01/04 2 2 1 E 3 UiF F
Supervision 9 09/84 2 4 1 E 21F
Supervision 10 0/S6 2 3 1 E N.R d/IF
Supervision 11 09/S6 1 2 1 F 3 F
Supervision 12 12/86 1 0.5 1 E 3 F
Supervision 13 03/66 1 1 1 F 3 FSupervision 14 07/66 1 1 1 F 2 FSupervision i6 11/so 2 2 1 E 2 F
IFSupervision 16 04/97 a S 1 E 1
2F
Supervilion 17 06/07 1 1 1 FSupervielon 10 01/6S 2 2 1 E 1
IFSupervision 19 12/S3 2 2 2 F 1
SUB-TOTAL: 42.S
TOTAL: 62.6-----.---------------------------------------------------------------- __-----__-.-----------------------------------_
o/: F, Flnancial Analyst; E, Engineer; EC, Econome;t; T, Training specialist
b/: 1, Problem Free or mlnor problems ; 2, Moderate Problems; 3, Msjor Problems
c/: U, Managerial; F, Financial; P, Political
D/: Non Rated.
COSTA RICASAN JOSE METROPOLITMN AREA WATER SUPPLY - LOAN 19135-CR
MONITORINC INDICATORS
PROJECT COMPLETION REPORT
1930 1981 1932 1938 1984 1 95 1936 1937 198a
App. Act. App. Act. App. Act. App. Act. App. Act. App. Act. App. Act. App. Act. App. Act.
SA JOSE METROPOLITMNAREA (SJMA)
Water Produced (Millions MI) 75.7 - 75.7 38.6 73.2 91.5 36.7 91.3 92.2 93.6 98.1 101.0 102.9 108.4 108.2 n.o. 112.7 n.-.
Water Sold (Millions M) 47.0 - 49.2 51.5 58.2 52.6 60.5 58.0 65.5 1.4 70.6 56.0 75.1 58.4 30.1 n.s. 34.6 n.o.
Unaccounted for Water (1) U8 - 35 42 32 48 80 42 29 43 26 46 27 44 26 45 2S 42
Water Connections (000's) 106.6 - 109.8 114.0 113.0 119.4 118.6 128.2 122.8 126.1 180.0 129.2 186.4 140.8 143.4 142.7 149.4 150.9
Sewer Connections (000's) 67.7 - 62.8 60.7 67.8 75.1 72.7 81.0 73.5 n.a. n.o. n.s. n.a. 99.0 n.o. 99.8 n.a. 103.4
No. Inhob/Connection 5.8 5.8 n.o. n.o. n.o. n.o. n.r. n.s. n.s. n.e. n.o. n.m. n.S. n.o. n.o. n.s. n.o. n.o.
Population Served (000'.) 56S - 532 604 599 633 618 663 646 663 689 686 723 744 760 756 792 300
Total Population (000'o) 659 - 613 - 631 - 65o - 710 - 762 - 734 - *09 - 834 -
Water Produced per Capita 867 - 86u 402 853 893 334 a83 390 404 890 412 890 831 890 n.a. 390 n.m.
(1/p/d/)Water Consumd/Connection U8.7 n.s. 37.8 37.6 89.2 86.7 48.2 36.8 44.6 34.0 46.3 U6.1 46.9 34.7 46.5 n.o. 47.1 n.o.
(Mg/Month)
TOTALS
No. Employee 2720 - 2720 2754 2560 2358 2390 2934 2240 2653 n.o. 2659 n.o. 8024 n.o. 2627 n.*. 2713
Enployeee/1000 Connect. 16.4 - 16.0 14.7 14.7 14.6 18.4 14.3 12.1 12.3 n.s. 12.5 n.o. 13.6 n.o. 11.0 n.o. 11.0
Total Water Connections (000's) 165.4 - 169.6 187.6 174.0 196.0 -178.7 202.1 135.8 206.3 n.o. 212.0 n.o. 224.7 n.o. 238.3 n.o. 247.5
Total Seoage Connections (000's) 66.4 - 71.9 65.7 77.3 31.1 34.8 91.3 91.2 87.9 n.s. 97.0 n.a. 102.3 n.m. 111.8 n.o. 118.5
Total etbr Produced 117.5 - 117.5 141.7 120.0 161.9 128.6 162.8 138.9 174.8 n.s. 136.7 n.o. 175.0 n.o. 175.0 n.o. 175.0
(Msllions MI)Total W0ter Sold 67.6 - 70.1 72.6 74.6 71.9 82.3 97.1 87.8 94.2 92.9 102.7 97.4 93.8 102.4 96.0 106.3 101.0
(Mi lion. M)Unaccounted for Water (3) 42 - 40 49 a8 se 86 40 U4 46 - 45 - 4C - 46 - 42
Water Consme_d/Connection 34.1 n.s. 84.4 82.2 35.7 80.7 38.4 40.0 89.4 38.0 n.s. 40.4 n.o. 85.9 n.o. U3.2 n.o. 34.0
(M1J/Month)
n.*. a Mon avilable.
COSTA RICA
SAN JOSE METROPOLITAN AREA WATER SUPPLY - LDAN 1906-CR
AyA INCOME STATEMENTS(IN MILLION OF COLONES)
PROJECT COMPLETION REPORT
1 9 3 0 1 9 6 1 1 9 6 2 1 9 6 1 9 6 4 19 65 a/ 1 9 6 6 1 9 6 7 1 9 6 6
FINANCIAk DATA Appr. Act. Appr. Act. Appr. Act. Appr. Act. Appr. Act. Appr. Act. Appr. Act. Appr. Act. Appr. Act.
Average WIter Tariff C/Md 1.6 1.3 2.7 2.4 t.7 6.0 8.7 6.1 4.3 7.9 n.x. 10.4 n.n. n.m. n.n. 14.9 n.x. 15.J
Average Sewage Tariff C/MI - - - - - - - 1.6 - 2.6 - 3.4 n.m. n.s. - 3.0 - 2.4
Local Inflation (5) 50.0 J3.0 20.0 87.1 6.0 90.1 7.0 82.6 n.m. 12.0 n.s. 15.0 n.n. 11.6 n.n. 16.8 n.m. 20.6
Exchange Rate (C/USS) 12.0 3.6 11.0 21.6 13.0 87.4 11.0 41.1 13.0 44.6 n.n. 60.6 n.m. 56.0 n.m. 62.6 n.a. 76.6
REYENUESWater 119.0 - 166.4 152.6 273.6 117.2 30r,.3 516.6 160.6 616.6 n.n. 961.7 n.a. n.x. n.s. 1281.1 n.m. 1483.6
Sewage 16.7 - 10.5 16.4 46.4 19.4 66.9 69.1 72.4 74.2 n.s. 106.9 n.a. n.o. n.m. 150.6 n.m. 114.6
Others 3.1 - 6.6 2.6 7.6 0.0 9.5 7.1 11.9 7.9 n.o. 10.0 n.m. n.m. n.x. 0.0 n.m. 0.0
TOTAL REVENUES: 189.0 146.7 221.6 178.4 129.7 156.6 370.7 596.0 464.0 760.9 n.s. 1070.6 n.s. n.m. n.m. 1411.6 n.a. 1691.0
COSTSPersonnel n.x. - n.s. - n.m. - n.m. 306.4 n.S. - n.r. 32J.0 n.s. n.a. n.m. 673.0 n.n. 901.9
Energy n.s. - n.s. - n.s. - n.m. 87.3 n.s. - n.s. 141.0 n.s. n.m. n.s. 166.9 n.m. 191.1
Others n.s. - n.s. * n.s. n.m. 146.7 n.m. - n.s. 184.6 n.o. n.m. n.s. 142.1 n.m. 204.7
TOTAL COSTS: 150.6 121.2 157.6 160.J 176.9 810.6 204.3 542.4 259.2 674.6 n.m. 663.6 n.n. n.m. n.m. 961.0 n.m. 1301.7
Operating Income beforeDepreoiation 6.4 23.5 86.7 (7.4) 153.8 46.6 166.4 52.6 226.6 176.1 n.n. 216.9 n.s. n.m. n.m. 410.6 n.m. 296.1
Depreciation U6.0 35.0 63.0 61.3 68.6 90.9 69.9 144.1 106.2 234.0 n.s. 160.6 n.e. n.m. n.s. 239.0 n.a. 364.0
Operating Income (Loam) (29.6) (11.5) 12.7 (U6.7) 35.2 (46.1) 76.6 (91.7) 117.4 (57.9) n.s. 16.1 n.s. n.o. n.o. 141.6 n.s. (67.7)
Financial A Other Incmmee (26.1) 0.0 (43.7) (1.3) (43.3) (10.1) (64.7) (16.6) (96.7) (22.3) n.o. (9.0) n.a. n.s. n.m. 44.6 n.s. 117.6
and Expenoe (Not) -------------------------------------------------------------…------------------------------------------------------- - --
NET INCOME: (57.7) (11.5) (11.0) (62.0) 41.9 (56.2) 21.6 (107.1) 21.7 (60.2) n.m. 27.1 n.m. n.n. n.s. 136.2 n.m. 29.6
Revalued Fixed Asete 964 1216 1266 2516 1690 3696 2136 3919 2610 4447 n.m. J154 n.s. n.n. n.s. 9370 n.m. 12439
Rate of Return (3) (3.1) (1.6) 1.0 (1.5) 6.3 (1.3) 1.6 (2.7) 4.5 (1.9) n.r. 1.1 n.m. n.o. n.m. 2.1 n.s. 0.1
n.s. a Non Availablo/ Not-Audited
