to Develop Bankable Water and Sewerage Proposals for Water Service Providers for Aid on Delivery (AoD) Financing

Project Objectives and Outputs

The project objective is to provide affordable, economically viable and sustainable access to safe water supply and basic sanitation services to the urban poor.

This project objective contributes to the overall development goal of improving the living conditions and health of the urban population.

On a wider scale this project will thus contribute to the objective of reaching the Sustainable Development Goal No. 6 (“Clean water and sanitation”) with its specific targets 6.1 (“achieve universal and equitable access to safe and affordable drinking water for all”) and 6.2 (“achieve access to adequate and equitable sanitation and hygiene for all …”).

Through the AoD component, private sector participation in the sector will be promoted.

The objective of the consultancy services (the Services) is to prepare ‘bankable’ projects by:

1)     Performing project preparation surveys and preparing detailed engineering designs and drawings

2)     Preparing detailed bills of quantities and engineer’s cost estimates

3)     Developing financial and technical analysis and business plans

4)     Supporting WSPs to obtain loans for up to 90% of the total eligible project costs

5)     Prepare an ESIA Report for each project with clear project details, anticipated impacts and associated mitigation measures as well as detailed ESMP. The ESMP will provide key environmental and social issues and preventive actions to address the ES risks, responsbilities, timeframes and cost estimates for the actions on the specific project. The ESMP will provide for development of management plans for specific environment and social aspects including but not limited to the following:

§  Stakeholder engagement plan (SEP) and communication strategies

§  Environment, nature protection and biodiversity needs

§  Resettlement Action Plan (RAP)

§  Waste management Plan

§  Environment health and safety (EHS) Plan 

§  Occupational health and safety (OHS) Plans

§  Grievance Redress Mechanisms (GRMs)

§  Child Protection Plan

§  Gender Management Plan (including VIMs, PWDs)

§  Labour Influx Plan

6)     Preparing tender documents for works, including evaluation criteria and standard works contracts

7)     Providing project management, construction supervision services, operator training and preparation of completion reports

The expected main project outputs are as follows:

·        Successfully submitted Bankable proposals acceptable by commercial bank

·        Tender documentation completed and made ready for bidding, evaluation and awarding.

·        Water supply facilities in target areas are completed and functioning

·        Sanitation /waste water/ sewer facilities in target areas are completed and functioning

1                The Project

1.1           Project Approach

The WSTF uses a demand-driven “Call for Proposals Approach” to invite all Water Service Providers (WSPs) that work within the urban areas to apply for funding. Only those project proposals that meet the set criteria in the Aid on Delivery (AoD) Manual will be supported.

In the context of AoD Manual, WSTF.

·        defines standards for the financed infrastructure,

·        supports in capacity building of the WSPs,

·        supports in hygiene sensitization campaigns,

·        monitors the implementation of the project measures,

·        monitors the operation of the financed infrastructure

Table 2: List of WSPs in Lot 1 and Lot 2

1.2           Project Components

The Aid on Delivery (AoD) comprises investments in medium size infrastructure for water and sanitation services within the service area of WSPs via a result-based approach.

Aid on Delivery (AoD) encourages private sector participation through commercial financing to medium sized water and sanitation projects. It closes the gap between the small investments funded through WSTF components UPC and UBSUP and the big investments funded through the Water Works Development Agencies.

The projects are pre-financed by WSP equity and loans from commercial banks for implementation. A result-based grant/subsidy is paid after completion and achievement of agreed targets by KfW through WSTF.

In the framework of project preparation, the number of projects expected to be implemented within Phase IV under this AoD modality is estimated to be up to seven (7) projects.

AoD supports three categories of scopes of work; water supply, sewerage and customer service, all of which aim to improve the WSPs service delivery. While AoD offers a degree of flexibility with the scope of works of the proposed projects considered to be suitable, it is essential that these are directly linked to one or more of the intended impacts summarised in the table 3 below.

Project Components

The potential project measures to be financed by this Project may comprise:

Water supply:

Sewerage:

Customer Care

2                Scope of Consulting Services

The consultant is required to support the WSP in two phases in :

Phase I : Preparing bankable proposals,

Phase II : Supervision of the implementation

2.1           Scope of Consulting Services in Phase I

The scope of services to be provided by the consultant in Phase I as reflected in 4 task areas as follows:

Task  1: Technical Services (Design preparation)

Task 2: Financial Services (Preparation of bankable proposals for commercial lending)

Task 3 : Social/Environmental Services

Task 4: Tender document preparation

2.1.1     Task 1 Technical Services Design Preparation

The consultant will provide the services and deliverables as described in the table below:

Table 4: Task 1: Technical Services (Design preparation)

2.1.2     Task 2 Financial services  

The consultant will provide the services and deliverables as described in the table below:

Table 5: Task 2 Financial Services

The consultant will be provided with the initial draft Financial Viability Assessment and Technical Viability Assessment. The consultant will review, update and develop these documents as necessary.  

2.1.3     Task 3 Environmental, Social and Health and Safety Safeguards  

The consultant will provide the services and deliverables as described in the table below:

Table 6: Task 3 Environmental, Social and Health and Safety Safeguards