AFRICAN DEVELOPMENT BANK GROUP Language ......i AFRICAN DEVELOPMENT BANK GROUP BP 323 – 1002 Tunis Belvédère Tel : 71 333 511 PROJECT INFORMATION Date : May 2007 The information

AFRICAN DEVELOPMENT BANK GROUP Language : English Original : French

BURKINA FASO -----------------------------------------------------------------

RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT IN THE CASCADES, WEST CENTRAL, SOUTH CENTRAL AND SAHEL REGIONS

APPRAISAL REPORT

WATER AND SANITATION DEPARTMENT (OWAS) JUNE 2007

TABLE OF CONTENTS Page PROJECT INFORMATION SHEET, CURRENCY AND MEASURES, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS, BASIC DATA, PROJECT MATRIX, EXECUTIVE SUMMARY i-x 1. ORIGIN AND HISTORY...................................................................................................... 1 2. THE WATER AND SANITATION SECTOR ........................................................................... 2

2.1 Characteristics of Sector ..................................................................................... 2 2.2 Organization of the Sector .................................................................................. 3 2.3 Sector Development Policy and Strategy ........................................................... 4 2.4 Opportunities and Constraints ............................................................................ 6 2.5 NDWSSP............................................................................................................ 7 2.6 Financing of Sector............................................................................................. 7 2.7 Lessons Learnt from Donor Intervention ........................................................... 8

3. RURAL DWSS SUB-SECTOR............................................................................................ 9

3.1 The Rural NDWSSP........................................................................................... 9 3.2 Bank Group Strategy ........................................................................................ 10

4. THE PROJECT................................................................................................................. 11

4.1 Design and Rationale........................................................................................ 11 4.2 Project Objectives............................................................................................. 13 4.3 Project Priority Intervention Areas and Target Communities ......................... 13 4.4 Strategic Context .............................................................................................. 15 4.5 Project Description ........................................................................................... 15 4.6 Impacts on Crosscutting Issues......................................................................... 17 4.7 Project Costs ..................................................................................................... 18 4.8 Sources of Finance and Expenditure Schedule................................................. 20 4.9 Performance Indicators..................................................................................... 21

5. PROJECT IMPLEMENTATION........................................................................................... 22

5.1 Executing Agency............................................................................................. 22 5.2 Steering Bodies................................................................................................. 23 5.3 Eligibility Criteria of a Project Site .................................................................. 24 5.4 Implementation and Supervision Schedules..................................................... 25 5.5 Procurement of Goods, Works and Services .................................................... 25 5.6 Disbursement Arrangements ............................................................................ 29 5.7 Financial and Audit Reports ............................................................................. 30 5.8 Partnerships ...................................................................................................... 30 5.9 Project Sustainability and Risks ....................................................................... 31

6. PROJECT IMPACT ANALYSIS .......................................................................................... 35

6.1 Economic and Financial Impact Analysis ........................................................ 35 6.2 Sensitivity Test ................................................................................................. 36 6.3 Analysis of Social and Health Impact .............................................................. 37 6.4 Analysis of Impact on Poverty ......................................................................... 38 6.5 Analysis of Impact on Women ......................................................................... 39 6.6 Analysis of Environmental Impacts ................................................................. 40

7. CONCLUSION AND RECOMMENDATIONS........................................................................ 41

7.1 Conclusion ........................................................................................................ 41 7.2 Recommendations and Conclusions................................................................. 41

LIST OF TABLES Page Table 4.7 (a) : Summary of Project Cost Estimates by Component 19 Table 4.7 (b) : Summary of Project Cost by Category of Expenditure 19 Table 4.8 (a) : Sources of Finance 20 Table 4.8 (b) : Sources of Finance by Component 21 Table 4.8 (c) : Expenditure Schedule by Source of Finance 21 Table 5.1: Procurement of Goods and Services 26 LIST OF ANNEXES Nb of Pages Annex 1 : Map of Project Area 1 Annex 2 : List of Bank Operations in Burkina Faso 1 Annex 3 : Organization Chart of Project Implementation 1 Annex 4 : Project Implementation Schedule 1 Annex 5 : Detailed Project Costs by Component 3 Annex 6 : Summary of ESMP 4 Annex 7 : Assumptions and Table of Cash Flows 2 This report has been prepared by H.M. CARIOU (Public Utility Economist, OWAS.1), K. BA (Financial Analyst, OWAS.1), C. AHOSSI (Procurement Specialist, ORPU), A. BELLA (Environmentalist, OWAS.) and J.N. ILBOUDO (Infrastructure Specialist, BFCO) and two consultants (OWAS.1). M. M’BAYE (Water and Sanitation Engineer, OWAS.1) also provided an input. For further inofrmation, please contact Messrs. K. BEDOUMRA (Director, OWAS), S. WASSEL (Acting Division Manager, OWAS.1), Mrs. A. DINGA-DZONDO (Resident Representative of the Bank in Burkina Faso) or the authors of the report.

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AFRICAN DEVELOPMENT BANK GROUP

BP 323 – 1002 Tunis Belvédère Tel : 71 333 511

PROJECT INFORMATION

Date : May 2007

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Donee. 1. COUNTRY : Burkina Faso 2. NAME : Rural Drinking Water Supply and Sanitation Project in

the Cascades, West-Central, South-Central and Sahel regions

3. LOCATION : 13 provinces, in the targeted regions (Cascades, West-

Central, South Central and Sahel) 4. BORROWER : Burkina Faso 5. EXECUTING AGENCY : Ministry of Agriculture, Water Resources and

Fisheries (MAHRH). 03 B.P 7005 Ouagadougou – Burkina Faso. Tel. : (226) 50 31 87 08 Fax : (226) 50 31 87 24

6. PROJECT DESCRIPTION : The main components of the project are: (A) Development of DWSS basic infrastructures; (B) Support to structures operating in the project; (C) Project coordination and management. 7. PROJECT COST : UA 34.97 million Foreign Exchange : UA 19.29 million Local Currency : UA 15.68 million 8. BANK GROUP FINANCING : UA 30.00 million ADF Loan : UA 20.00 million Grant from the RWSSI Trust Fund : UA 10.00 million

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9. OTHER SOURCES OF FINANCE : UA 4.97 million Beneficiary Communities : UA 0.63 million Government : UA 4.34 million 10. PROJECT APPROVAL DATE : July 2007 11. ESTIMATED DATE OF PROJECT

START-UP AND DURATION : Sept. 2007 and 40 months. 12. PROCUREMENT OF GOODS, WORKS AND

SERVICES : Procurement of goods, works and services financed by the ADF will be in accordance with the Bank’s rules of procedure for the procurement of goods and works or, where applicable, the Bank’s rules of procedure for the use of consultants, based on the Bank’s appropriate standard bidding documents. Contracts for private sanitation works will be based on the ADB procedures for community contracts.

13. CONSULTANCY SERVICES REQUIRED : Required for the Project

Management Unit, the supervision and control of water supply and sanitation construction works, for IEC campaigns on potable water and sanitation respectively as well as auditing .

14. ENVIRONMENTAL CATEGORY : II

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CURRENCY EQUIVALENTS

UA 1 = CFAF 743.816 (April 2007)

WEIGHTS AND MEASURES m = metre m² = square metre lm = linear metre m3 = cube metre km = kilometre Mm3 = Millions of cube metre km² = square kilometre m3/h = cube metre per hour l/s = litre per second l/d/cap = litre per day per capita

FISCAL YEAR

1st January – 31 December

LIST OF ABBREVIATIONS 2 IE (ex EIER) : International Institute of Water Engineering and Environment ADF : African Development Fund AFD : Agence Française de Développement (French Development Agency) AWS : Autonomous Water Station CCTP : Provincial Technical Consultative Framework CGCT : General Local Government Code CNEau : National Water Council CNP : National Steering Committee CREPA : Regional Centre for Low Cost Water and Sanitation CRP Regional Steering Committee CV : Curriculum Vitae CVD : Village Development Council DA : Sanitation Directorate DAEP : Directorate of Water Supply DEIE : Directorate of Studies and Information on Water DGRE : General Directorate of Water Resources DHPES : Directorate for Public Hygiene and Health Education DLSO : Directorate of Legislation and Monitoring of Basin Organization DRAHRH Regional Directorate of Agriculture, Water Supply and Fishery

Resources DWSS-CDP : Water Supply and Sanitation Communal Development Plan ESMP : Environmental and Social Management Plan EU : European Union FEER : Water Fund and Rural Equipment FFI/RWSSI : RWSSI Trust Fund GIS : Geographic Information System GVT : Government HFT : Hand Flush Toilet HP : Hand Pump HPB : Hand Pump-Equipped Borehole ICB : International Competitive Bidding IDB : Islamic Development Bank IEC : Information, Education and Communication IWRMAP : Integrated Water Resource Management Action Plan

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LDP : Local Development Plan LPDRDP : Letter of Decentralized Rural and Participatory Development Policy MAHRH : Ministry of Agriculture, Water Supply and Fishery Resources MATD : Ministry of Local Government and Decentralization MECV : Ministry of Environment and Living Conditions MFB : Ministry of Finance and Budget MWP : Modern Water Point NCB : National Competitive Bidding NDWSSP : National Water Supply and Sanitation Programme NGO : Non-Governmental Organization NPV : Net Present Value ONEA : National Water and Sanitation Agency Authority OPEC : Organization of Petroleum Exporting Countries PACVU : Project to Improve Urban Living Conditions PNGT : National Land Management Programme PSA : Sanitation Strategic Plan PTF Technical and Financial Partners PVC : Poly Vinyl Chloride RBCSP : Result-Based Country Strategy Paper SESA Health and Sanitation Education Department SP : Stand-pipe SPWS : Simplified Pipe-Borne Water Supply SYSCOA : Système Comptable Ouest Africain (West African Accounting System) UA : Unit of Account UFA : Unified Framework for Action (of the NDWSSP) UNESCO : United Nations Educational, Scientific and Cultural Organization VIP : Ventilated Improved Pit WHO : World Health Organization WSS : Water Supply and Sanitation WSUA : Water Supply Users’ Association

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MATRIX NAME : Burkina Faso : Rural WSS Project in the Cascades, West-Central, South-Central and Sahel Regions DATE OF INCEPTION : May 2007 DATE OF COMPLETION : December 2010

HIERARCHY OF OBJECTIVES

EXPECTED OUTCOMES IMPACT (beneficiaries)

PERFORMANCE INDICATORS

OBJECTIVELY VERFIABLE INDICATORS AND TIME FRAME

ASSUMPTION/ RISKS

PROGRAMME GOAL Provide a sustainable supply of drinking water and sanitation in rural areas aimed at improving the living and health conditions of the communities.

LONG TERM OUTCOMES By 2015 1) Achieving MDGs for water: rate of access increased to 80% ; 2) Achieving MDGs for sanitation : coverage rate increased to 54% ; 3) Infant-child mortality rate reduced to 133 per thousand; 4) Poverty index in rural areas reduced to less than 35%.

Additional rural population served (4 millions persons for drinking water and 5.7 million for sanitation)

1) Achieving MDGs for water and sanitation by 2015 ; 2) Under-5 mortality rate. 3) Rural poverty index; Sources : Statistics and reports: DGRE, DRAHRH, DHPES, MECV, MATD, CREPA, SESA and National Institute of Statistics and Development – INSD

By 2015 1.a) Access to drinking water increases from 60% (current) to 80% (+ 33%) ; 1.b) Access to sanitation increases from 10% (current) to 54% (+ 440%) ; 2) Reduction in infant-juvenile mortality rate from 169 per thousand to 133 per thousand (- 21%); 3) Reduction in incidence of rural poverty from 46% (current) to less than 35% (- 24%).

-Stable macroeconomic framework; - Institutional capacities of national and regional structures strengthened; - Reforms of the management of water structures by private operators implemented.

AIM OF PROJECT - Improve the supply of water supply in the 4 regions targeted by the project (Cascades, West-Central, South Central and Sahel) ; - Improve family sanitation and community services in the 4 regions targeted by the project.

MEDIUM TERM OUTCOMES By 2011 1) Rate of access by the targeted communities to drinking water is 61%, 69%, 80% and 72% respectively in the four 4 regions (Cascades, West-Central, South-Central and Sahel) ; 2) Rate of access to sanitation is 20% in each of the 4 regions 4 (Cascades, West-Central, South-Central and Sahel) ; 3) Average rate of prevalence of water-borne diseases and faecal peril is 7% in the 4 regions.

Additional rural population served in the 4 project regions (525300 persons for drinking water, 201000 persons for sanitation and 80500 for community sanitation)

1) Access to drinking water; 2) Rate of access to sanitation; 3) Average prevalence rate of water borne diseases and faecal peril in the 4 priority regions of the project; 4) Increase in the daily average consumption of water. Sources : DGRE, DRAHRH, DHPES, MATD, MECV, MS, CREPA, SESA et INSD.

By 2011 1) Average rate of access to rural drinking water in the 4 regions targeted by the project increases from 55% (current) to 71% (+29%) ; 2) Average rate of access to sanitation services in the 4 project regions increases from 10% (current ) to 20% (+100%) ; 3) Average prevalence rate of water-borne diseases reduced from 14% (current) to 7% in the 4 regions (-50%) ; 4) Increase in average water consumption from 13l/day/pers. for HPs and 4l/day/pers for the SPWS (current) to 20l/day/pers for all the systems.

-Stable macroeconomic framework; - Institutional capacities of national and regional structures strengthened; - Reform of the management of water structures by private operators implemented.

ACTIVITIES / INPUTS - DWS infrastructures constructed or rehabilitated in the 4 regions of the project (Cascades, West-Central, South-Central and Sahel) ; - Family and public sanitation carried out in the 4 regions of the project; - Strengthening of national and regional structures and project management; - Recruitment of consultants and auditors for the supervision of works, outreach/ awareness and auditing; - Recruitment of enterprises for the execution of works. FINANCIAL RESOURCES ADF Loan : UA 20,000 000 ITF Grant : UA 10 000 000 Government : UA 4 339 000 Beneficiaries : UA 628 000 TOTAL : UA 34 967 000

SHORT-TERM OUTCOMES By 2010 (end of project) 1) Drilling of 1345 new boreholes and rehabilitation of 50 boreholes; 2) Drilling of 16 new DWSS systems and rehabilitation of 5 DWSS; 3) Rehabilitation of 10 AWS ; 4) Establishment and training of 1080 DWSUA and 31 DWSS managers; 5) 20100 family latrines constructed; 6) 1150 community latrines constructed; 7) 200 mason artisans trained; 8) 200 teachers trained; 9) 400 female awareness agents put in place and trained.

Total rural population of the 4 project regions (2.8 million) Contractors, Consulting firms, NGOs, etc. Village public amenities Relevant structures (DGRE, DRAHRH, DHPES)

1) Number of DWSS and modern water points provided; 2) Number of family and community sanitation structures provided; 3) Number of awareness campaigns undertaken for the beneficiary communities ; 4) Number of persons trained in the intervention structures and village management associations of the facilities. Sources : Statistics and activity reports DGRE, DRAHRH, DHPES, MATD, MECV, CREPA, SESA and INSD.

By 2010 (end of project) 1) Implementation rate of boreholes (100%) ; 2) Rate of implementation of new DWSS systems (100%) ; 3) Rate of rehabilitation of AWSs (100%) ;. 4) Rate of establishment and training of DWS users associations and DWSUA managers (100%) ; 5) Rate of implementation of family sanitation structures (100%); 6) 200 mason artisans trained; 400 female outreach workers for hygiene awareness put in place.

- Institutional capacities f decentralized structures (DRAHRH) and local administrations strengthened ; - Timely mobilization of contributions by communities; - Reform of the management of water structures by private operators implemented.

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EXECUTIVE SUMMARY

1. ORIGIN AND HISTORY 1.1 The average rate of access to drinking water in rural areas of Burkina Faso is estimated at 60% and the rate for sanitation is 10%. In view of these low levels and the desire of the Government to achieve the Millennium Development Goals (MDGs) in the sector by 2015, set at 80% and 54% respectively, it has placed the issue of water and sanitation at the top of its priorities under the Poverty Reduction Strategy Paper (PRSP). 1.2 In this regard, in 2004 the Government submitted a request for the financing of a drinking water supply and sanitation (DWSS) project. In view of the non-existence of a sectoral strategy to achieve the MDGs in the water and sanitation sector and an associated investment programme, the Bank had previously recommended the preparation of a reference document in the form of a national sectoral programme and provided an ADF grant in 2005 for the purpose1. 1.3 The National Drinking Water Supply and Sanitation Programme – 2015 (hereinafter called “NDWSSP”) was thus developed and today constitutes the reference framework for the development of the DWSS sector and achieving the relevant MDGs. It was developed from March to September 2006 under auspices of the Ministry of Agriculture, Water Supply and Fishery Resources (MAHRH), through its General Directorate of Water Resources (DGRE), in line with the road map adopted through consultation between the MAHRH and the water and sanitation sector partners. The latter, after being involved in all the stages of design, adopted the NDWSSP in December 2006 and marked their support to the structured 3-phase investment programme (2007-2009; 2010-2012; and 2013-2015) in a memorandum of understanding for the implementation of the Programme signed with the Government in January 2007. The initial phase, which already includes activities financed as part of ongoing projects, will serve as a basis for preparing the donors for their intervention in the second phase (2010-2012), within the framework of a common sectoral approach (common financing mechanisms, common rules of procurement and disbursement procedures, etc.). 1.4 The present project is an integral part of the first phase of the NDWSSP (2007-2009). As such, it contributes to achieving the MDGs in the water and sanitation sector as well as to the objectives of the African Water Vision. Furthermore, it is in line with the strategic guidelines set out in the Bank’s RB-CSP 2005-2009 that defines water and sanitation as a priority sector for its interventions in Burkina Faso. 1.5 The present project is an integral part of the first phase of the NDWSSP (2007-2009). Thus, it contributes to achieving the MDGs in the water and sanitation sector as well as to the objectives of the African Water Vision. Furthermore, it is in line with the strategic guidelines set out in the Bank’s RB-CSP 2005-2009 that defines water and sanitation as a priority sector for its interventions in Burkina Faso.

1 The Bank has financed the inventory of water supply strucutres and the formulation of a national drinking water supply and sanitation programme in Burkina Faso.

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2. PURPOSE OF THE FINANCIAL CONTRIBUTION The Bank will finance the project through an ADF loan of UA 20 million and a UA 10 million grant by the Rural WSS Initiative Trust Fund. This contribution will be used to finance the construction and rehabilitation of water and sanitation infrastrucure in the four regions of the country. It will also provide institutional support to project management structures at national and regional level. 3. OBJECTIVES

The National Programme (NDWSSP) 3.1 The aim of the national programme is to halve the proportion of persons without access to adequate potable water and sanitation by 2015. The specific objectives of the rural component of the NDWSSP are to: i) improve access by rural communities to potable water; ii) provide adequate sanitation to such communities; and iii) contribute to improving the performance of the water sub-sectors. The Rural WSS Project in the Cascades, West-Central, South-Central and Sahel region 3.2 The sector goal of the project is to contribute to improving the socioeconomic and health conditions of rural communities. Specifically, it aims at the following priority objectives: (i) improve water supply and household sanitation in the rural localities of the four target regions (Cascades, West-Central, South-Central and Sahel); and (ii) improve community sanitation in the rural communities of these four regions. These objectives target a rural population estimated in 2007 to be 2.8 million. 3.3 The construction of water supply structures under this project will contribute to raising by 2011 the average drinking water access rate of the targeted communities from 55% to 71%, and thereby achieving nearly 70% of the MDGs for water in the four regions. 3.4 At the level of sanitation, the average access rate in the four regions is estimated at 10%. The project will contribute to raising this to 20%, and thereby achieving over 21% of the MDGs for sanitation in these regions. 4. BRIEF DESCRIPTION OF PROJECT OUTPUTS

4.1 The expected outputs of the project which is in keeping with the 1st Phase of the NDWSSP are as follows : (i) 20,100 new household latrines; (ii) 1,150 new multi-compartment community latrines, constructed in village public amenities (mainly markets, schools and health centres) ; (iii) 7000 new domestic drain-wells; (iv) 200 masons trained in the construction of latrines and 200 teachers in hygiene ; (v) 400 female intermediaries set up in villages to raise awareness on hygiene; (vi) 1,345 new modern water points (MWP) fitted hand pumps (HP) ; (vii) 16 new simplified pipe-borne water supply systems (SPWS) ; (viii) ) 50 boreholes equipped with HP rehabilitated, 5 SPWS rehabilitated and 10 autonomous water stations (AWS) rehabilitated; (ix) 1,080 water supply users associations (WSUA) put in place, run and trained in the management and maintenance of MWPs; (x) 31 SPWS managers trained and; (xi) training, outreach and awareness campaigns conducted in the villages concerned by the project regions.

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4.2 The implementation of these activities will directly address the needs of an estimated 525,300 individuals in access to potable water, about 201,000 individuals in access to household sanitation and 80,500 individuals in access to community sanitation.

5. COSTS The estimated cost of the project excluding taxes is UA 34.97 million, made up of UA 19.29 million in foreign exchange (55%) and UA 15.68 million in local currency (45%). It includes provision for physical contingencies of 10% and an annual price escalation of 2% for foreign exchange and 2.4% for the local currency. 6. SOURCES OF FINANCE The project will be jointly financed by the ADF, the Rural Water Supply and Sanitation Initiative, the Government of Burkina Faso and community beneficiaries. The total amount of UA 34.97 million consists of: i) UA 20 million in the form of an ADF loan (57.2% of the total project cost) ; ii) UA 10 million from the Bank’s RWSS Initiative Trust Fund (28.6%); iii) UA 4.34 million as the Government’s contribution (12.4%); and iv) UA 0.63 million as the beneficiaries’ contribution (1.8%). 7. IMPLEMENTATION MODALITIES

The project executing agency will be the Ministry of Agriculture, Water Supply and Fishery Resources (MAHRH). At the national level, the technical implementation of the project will be the responsibility of the General Directorate of Water Resources (DGRE) and, at regional level, of the Regional Directorates of Agriculture, Water Supply and Fishery Resources (DRAHRH), also attached to the MAHRH. The DGRE will be responsible for the coordination and implementation of the project and all the other activities carried out by the development partners under the NDWSSP. To support the DGRE in managing and monitoring the NDWSSP, consulting firms will be recruited to cater for the works control and supervision tasks. The information, education and communication (IEC) components intended for project beneficiary communities will be entrusted to NGOs or specialized consulting firms. 8 CONCLUSIONS AND RECOMMENDATIONS 8.1 The rural DWSS project in the Cascades, West-Central, South-Central and Sahel regions is in line with the Government’s strategies and those of the Bank aimed, inter alia, at reducing poverty and strengthening social amenities in the rural areas. The appraisal of the project was based on a concerted approach involving the major donors throughout. 8.2 The water supply structures will contribute to addressing the water supply and sanitation needs of the rural communities in the four target regions of the project. The project will contribute to improving the health conditions of the inhabitants, reducing health expenditures, promoting income-generating activities related to water and private sector development in the intervention areas. 8.3 To implement the project, it is recommended that an ADF loan and a RWSS Initiative Trust Fund grant not exceeding UA 20 million and UA 10 million respectively be awarded to the Government of Burkina Faso, subject to the fulfilment of conditions to be outlined in the loan agreement and the grant MOU.

1. ORIGIN AND HISTORY 1.1 The average rate of access to drinking water in rural areas of Burkina Faso is estimated at 60%; the rate for sanitation is 10%. In view of these low levels and the desire of the Government to achieve the Millennium Development Goals (MDGs) in the sector by 2015, set at 80% and 54% respectively, it has placed the issue of water and sanitation at the top of its priorities under the Poverty Reduction Strategy Paper (PRSP). 1.2 In 2004 the Government submitted a request to the Bank for the financing of a drinking water supply and sanitation (DWSS) project. But in view of the non-existence of a sectoral strategy for achieving the MDGs in the water and sanitation sector or an associated investment programme, as an initial step, the Bank recommended the formulation of a reference document in the form of a national sectoral programme. To this end, it provided a UA 1.49 million grant to finance an inventory of water supply equipment and the formulation of a national drinking water supply and sanitation programme in Burkina Faso. 1.3 Thus, the National Drinking Water Supply and Sanitation Programme – 2015 (hereinafter called “NDWSSP”) was developed and today constitutes the reference framework for the development of the DWSS sector and achieving the relevant MDGs. It was developed from March to September 2006 under the aegis of the Ministry of Agriculture, Water Supply and Fishery Resources (MAHRH), through its General Directorate of Water Resources (DGRE), in line with the road map adopted following consultation between the MAHRH and the water and sanitation sector partners. The latter, after being involved in all the stages of design, adopted the NDWSSP in December 2006 and marked their support to the structured 3-phase investment programme (2007-2009; 2010-2012; and 2013-2015) in a memorandum of understanding for the implementation of the Programme signed with the Government in January 2007. The initial phase, which already includes activities financed as part of ongoing projects, will serve as a basis for preparing the donors for their intervention in the second phase (2010-2012), within the framework of a common sectoral approach (common financing mechanisms, common rules of procurement and disbursement procedures, etc.). 1.4 The present project is an integral part of the first phase of the NDWSSP (2007-2009). As such, it contributes to achieving the MDGs in the water and sanitation sector as well as to the objectives of the African Water Vision. Furthermore, it is in line with the strategic guidelines set out in the Bank’s RB-CSP 2005-2009 that defines water and sanitation as a priority sector for its interventions in Burkina Faso. 1.5 The project was preceded by a preparation mission in August 2006 and an appraisal mission in March 2007. Its components were defined in consultation with the donors in the sector. The present appraisal report is the outcome of field visits and consultations organized with the beneficiaries, the authorities of Burkina Faso and development partners during the missions. 2. THE WATER AND SANITATION SECTOR 2.1 Characteristics of Sector 2.1.1 Water Resources. Most, if not all the water resources of Burkina, derive from rains that flow into three shared catchment areas (the Comoe Basin, the Volta Basin and the Niger Basin) or seep into aquifers of the crystalline and sedimentary basement. Rainfall patterns

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are characterized by high inter-annual variations and uneven spatial distribution. On average, annual rainfall varies between 500 mm in the North of the country and 1200 mm in the South. On an annual average, flows represent 3.6% of rainfalls and infiltrations 15.6%. These constitute the only supply sources for surface water and underground water reserves. 2.1.2 Usable water resources are estimated at 4.94 billion m3 on an average year and 2.32 billion m3 in a dry year. With a 52.5% utilization rate of exploitable resources, Burkina Faso has a high water-stress level which is defined by the United Nations Organization for Education, Science and Culture (UNESCO) and the World Meteorological Organization as a situation whereby over 40% of available water resources are used. Scarcity of water in this context hampers economic growth. 2.1.3 The major constraints affecting water resources are essentially related to: (i) the downward trend of rainfall marked by a north-to-south shift of the country’s isohyetal lines, resulting in the lowering of the water table, thus affecting the stock of underground water reserves and the level of replenishment of lakes; (ii) in the geological context marked by the predominance of crystalline rocks (about 82% of the territory) of low ground water potential and productivity; and (iii) the high evaporation rate of water bodies (1900 mm to over 2000 mm of water). 2.1.4 Access to Drinking Water. In the urban areas, the rate of access to drinking water in the centres managed by the National Water and Sanitation Agency (ONEA) was estimated in 2005 at 74%, made up of 40% through standpipes and 34% through individual connections. Efforts are needed to improve the rate of access, which is still low in the auxiliary centres, and the average specific consumption, which is also low, in view of the predominance of access through standpipes. 2.1.5 In the rural areas, since the start of the rural water supply, about 48,000 modern water points have been provided, 30,000 of which are operating. Thanks to these amenities, 60% of the rural population has access to drinking water. 2.1.6 Access to Sanitation. In the urban areas, the rate of access to sanitation in centres managed by the ONEA was estimated, in 2005, at 14%. It is 19% in Ouagadougou, 14% in Bobo Dioulasso and 10% on average in the other centres. These rates are relatively low as a result of the strict interpretation of quality standards and weak public sanitation coverage, which mainly focuses on the collection and treatment of industrial effluence. 2.1.7 Data on access to sanitation in the rural areas is relatively scanty. Although surveys show that the coverage rate in 2005 was about 1%, this may be raised to 10% considering that a portion of existing “traditional” household latrines (estimated user rate of 20%) meets the safety, effective use and sustainability criteria. The problem of rural sanitation is mainly related to inadequate management of excreta, coupled with insufficient sensitization of the communities. This has a significant health impact that accounts for most water-borne diseases and infant mortality. 2.1.8 Payment of Water and Sanitation Services. In the urban areas, in centres managed by the ONEA, the tariff policy follows the Council of Ministers decision of January 2002 and the last revised water rates in January 2003. With regard to potable water, three rate brackets apply, the first of which is referred to as a social rate and is intended for low-income households. Thus, the rates are respectively CFAF 188/m3 for the first bracket of 0 to 6 m3;

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CFAF 393/m3 for the second bracket of 7 to 30 m3 and CFAF 1040/m3 for the last bracket of over 30 m3. For standpipes that are managed by the ONEA, water is sold to standpipe operators at CFAF 188/m3. The latter retail the water to users at CFAF 5 per 20-litre bucket, CFAF 10 per 40-litre container and CFAF 60 per 220-litre drum, corresponding to a water retail price ranging between CFAF 250 and 275/m3. These rates have been in force since January 2003. 2.1.9 In the rural areas, with regard to hand pumps (HP), the per volume sale of water is generally not widespread. Often, the payment of water is based on a fixed monthly contribution that varies between CFAF 150 and 500 per household. However, for simplified water supply systems (SPWS), generally entailing a standpipe, the main method of payment used is the sale per volume of water. The commonest retail price of water is CFAF 5 per 10-litre bucket or CFAF 10 per 20-litre container representing a retail price of CFAF 500/m3. 2.1.10 Regarding sanitation services, in 1985 Burkina Faso introduced fees for sanitation services, which are collected by the ONEA through the m3 billing of water. These payments are used to cover the expenses of individual and public sanitation as part of the urban waste water and excreta management strategy. Revenues from these fees are used as subsidies to improve households traditional latrines, drain wells and wash tubs. The five-tier tariff system applied since 1994 for sanitation was reduced to a single rate for all categories of consumers, that is CFAF 21 per m3 of water consumed. 2.2 Organization of the Sector 2.2.1 It has undergone recent developments as a result of the progress in the decentralization process, implementation of the integrated water resource management action plan (IWRMAP) and adoption by the Government of the national water supply and sanitation programme (NDWSSP). 2.2.2 National Level. Responsibility for the definition of a general policy for the water and sanitation sectors, particularly waste water and excreta (in rural and urban areas) pertain to the Ministry of Agriculture, Water Supply and Fishery Resources (MAHRH), through the DGRE, in partnership with ministries in charge of health, finance and budget, environment and living conditions, local government and decentralization, economy and development, basic education and literacy. Thus, it is responsible for: i) the formulation of the legislation on water and sanitation and monitoring of its enforcement; ii) design and construction of water points and water supply amenities; iii) treatment of waste water and excreta; iv) assistance to local governments and government administrative units in the creation and use of WSS structures and infrastructure; v) implementation of the management and maintenance of WSS structures; and (vi) community water supply. The DGRE is responsible for the overall implementation of the NDWSSP, with responsibilty for the urban component behoving the ONEA through a planned implementation agreement with the Government. The organizational chart of the institutional arrangement is given in Annex 3. Additionally, among the national consultative frameworks, mention needs to be made of the National Water Council (CNO), created by decree on 27 November 2002 and established in December 2003. The CNO covers all the actors of the water sector (Government, local administrations and water users) and is consulted on fundamental orientations of the national water policy, planning and regulation of water resources, as well as any major measures having an impact on water resources.

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2.2.3 Regional Level. The MAHRH is supported by deconcentrated structures in the country’s regions, namely: the Regional Directorates of Agriculture, Water Supply and Fishery Resources (DRAHRH). Each of these comprises four departments: the water resources and fishery resources department (SREH), the agricultural development and production department (SAPA), studies and planning department (SEP) and administrative and finance department (SAF). They are responsible for the water policing, policy implementation, water information system and monitoring system, data collection and the evaluation, monitoring and supervision of projects and programmes. 2.2.4 Communal Level. Thirty-four (34) urban communes were created in the wake of the first municipal elections of 1995, followed by forty-nine (49) in 2000. The experience and lessons drawn from the ten years of operation led to the revision of regulatory instruments and the adoption of the General Code of Local Governments (CGCL: Act 055-2004/AN) devoted to the complete communalization of the country with the creation, following the municipal elections of 2006, of 302 rural communes. In view of the progress made and ongoing enhancement programmes, the Government will progressivley transfer 11 areas of competency to the local administrations, including responsibility for water supply and waste water and excreta sanitation. This will be backed by DWSS Communal Development Plans (DWSS-CDP) to be adopted for communal councils. Some communes already have the WSS-CDP. The WSS-CDP will be implemented through the Village Development Committees (CVD), legal village grassroots organizations and Water Users’ Associations (WSUA), comprising all users of modern water points (MWP) in an administrative village. These two types of organization operate on the basis of a delegation agreement, with the commune acting de jure as the assigning authority of water service. In this regard, it delegates the management of communal MWPs to WSUA, the maintenance of HPs to the communal repair operator and the management of the SPWS and AWS to a private asignee. 2.2.5 Private Sector and NGOs. The private operator serves as the assignee of the management of water services on the SPWS and is in charge of all the installations in the commune. Approved by the MAHRH, it provides water service at its risks and executes or has execute the maintenance and repair of the installations. The repair artisan of the HP has the exclusivity for HP maintenance and repair services in the commune. Approved by the MAHRH, he undertakes repairs on request for the WSUA and goes on regular monitoring tours on behalf of the commune. The numerous NGOs in the sector increasinly participate in the financing and provision of infrastructures, as well as the sensitization of the communities. 2.2.6 Lastly, other specific structures are also stakeholders in the institutional framework of the sector. They play a consultative, coordination, harmonization, orientation and advisory role. These are: (i) the Technical Water Committee (CTE); (ii) the permanent secretariat for the integrated water resource management action plan (IWRMAP); (iii) the consultative framework between the MAHRH and the water and sanitation sector partners (CCP-WSS); and lastly (iv) National Steering Committee (CNP) and Regional Steering Committees (CRP) of the NDWSSP. All the actors of the sector (public, private, civil society and development partners) are represented. 2.3 Sector Development Policy and Strategy 2.3.1 Policy. The national water policy, which was adopted in 1998, aims at contributing to sustainable development by providing appropriate solutions to water-related problems in order that they may not be a limiting factor but rather a resource for economic and social

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development. This overall objective is underpinned by four specific objectives relating to the sustainable supply of water, protection against water depletion actions, improvement of public finance and prevention of conflicts related to the management of shared waters. 2.3.2 The general approach to the implementation of the national policy is based on nine (9) principles, namely: the principle of equity, subsidiarity, harmonious regional development management by water catchment area, balanced management of water resources, protection of users and nature, user pays, participation and polluter pays. The guidelines place emphasis on management by basin, increased effectiveness and management capacity in the water subsector. 2.3.3 A number of reforms were undertaken to translate this policy into reality. Thus the reform of the system of management and maintenance of DWS infrastructure in rural and semi-urban areas is expected to result in a shift from an often deficient community management to delegated management to private operators in order to ensure the normal operation and the sustainability of the facilities. This reform has been undergoing trial since 2004 under the Reform Implementation Programme (PAR). Similarly, Burkina Faso has decided to implement an integrated water resource management programme since 1999, with the support of DANIDA, through the IWRMAP. 2.3.4 These sectoral policies were adopted in a national decentralization context. To achieve the set objectives, the regulatory decentralization guidelines and the letter of decentralized and participatory rural development policy (LPDRDP) were adopted in 1998 aimed at outlining the fundamental principles and the strategy for the implementation of decentralized rural development. 2.3.5 The definition of this sectoral policy has helped initiate, starting from 2005, the formulation of a national water and sanitation programme for 2015 (NDWSSP), which constitutes the reference framework by which Burkina Faso aims to achieve the MDGs for the water and sanitation sector (a description of programme is presented in section 2.5 below). It was formulated from March to September 2006 based on a participatory process that included all the stakeholders. The NDWSSP was adopted by the Government in December 2006 and subjected to a memorandum of understanding signed between the Burkina authorities and the technical and financial partners (TFPs) in January 2007. 2.3.6 Strategy. To guide the measures and actions for the implementation of the national policy, two approaches were adopted: the participatory approach and the programme approach. Furthermore, strategic orientations were adopted. Briefly, these entailed the approach per water catchment area, adopted as the appropriate framework for water planning and management, promotion of international cooperation, capacity building for the actors involved in the water policy, monitoring of the availability and quality of the resource and improved infrastructure management. 2.3.7 The strategy adopted for sanitation entails the involvement of local authorities in the planning and the sharing of responsibilities between the administration, the private sector, the civil society and grassroots communities and, lastly, make sanitation a specific component of the development programmes.

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2.3.8 In the rural areas, the major factors of the intervention strategy for the sector hinge partly on the building of technical and planning capacities of village communities through village development committees (CVDs) and partly on the contribution to the creation of regional procurement commissions. In this regard and in accordance with the decentralization policy, the project hopes to entrust responsibility for the implementation whenever possible to the regions or rural communes through the CVDs by coordinating its actions with those of the decentralization support programmes such as the national land management programme (PNGT). 2.3.9 Strengths and Weaknesses. The strength of the institutional framework primarily resides in the existence of a national water policy related to other national policies and strategies. Furthermore, the creation in January 2007 of a Sanitation Directorate at the DGRE has now filled the institutional vacuum that previously existed and promote the sanitation sub-sector of Burkina Faso. The existence of the rural WS infrastructure management system, now upgraded to a national sectoral policy is also an asset for the institutional mechanism put in place. Besides, the adoption of regulatory instruments on the orientation of decentralization, notably the letter of decentralized and participatory rural development policy (LPDRDP), and the passing of the water management blueprint law are some of the elements that seek to strengthen the institutional framework of the sector. Lastly, the creation of the CNEau, in November 2002, and the adoption of the NDWSSP for all the sector stakeholders in December 2006, constitute fundamental milestones in the establishment of an institutional plan for the country’s water and sanitation sector. 2.3.10 In contrast, the main weakness of the institutional framework resides in the inappropriateness of the national sanitation strategy dating from 1996 to the present context. It was therefore revised in 2007 to reflect the national water policy adopted in 1998 and regulatory instruments on the General Local Government Code. This document will be submitted to the Government for approval by the end of 2007. 2.4 Opportunities and Constraints 2.4.1 The water and sanitation sector has been enjoying substantial advantages including: i) the legitimacy and solidity of the sectoral strategic framework based on two pillars, namely, the IWRMAP and the reform of the rural and semi-urban water structures, which are based on the Water Policy and Strategy Paper; ii) a clear definition of decentralization options, specifying the transfer to the local administrations of water and sanitation functions, although the absence of the implementing instruments (decisions, decrees, etc.) has not made this transfer effective; iii) the operating rate of water supply equipment, notably the HP (77%), in view of the relatively high average age of the equipment pool; iv) existence of a network of pump repairers and SPWS, and the clear perception that the communities have of the need to pay for water notwithstanding their poverty; v) existence in the sector of low-cost sanitation technologies as well as the ease of transfer of execution responsibilities of local masons enabling a rapid coverage of rural areas once the process has begun; vi) and, lastly, the presence in Burkina Faso of institutions and schools such as the Regional Centre for low-cost water supply and sanitation (CREPA) and the International Institute of Water and Environmental Engineering (IIIE) providing solid relevant technical skills. 2.4.2 Despite these opportunities, it is worth noting some constraints that beset the sector. These include: i) weak management and operating capacities of water supply structures; ii) the high rate of non-operationality of SPWS (34%) whereas the number of this type of

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infrastructure is expected to increase rapidly in the short term; iii) dispersal of some urban areas that are located in areas of unfavourable hydrological and hydrogeological conditions for the low-cost harnessing of water resources; iv) overlap of roles and responsibilities between various institutions, notably for sanitation between the MAHRH, the MECV and the Ministry of Health; v) and lastly, the lack of organization of the private sector and the considerable dispersal of corporate profiles that render the competition procedures ineffective. However, most of these constraints should be addressed with the implementation by the Government of the major measures backing the implementation of the NDWSSP. 2.5 NDWSSP 2.5.1 The National Water Supply and Sanitation Programme (NDWSSP) constitutes the only instrument by which Burkina Faso, in accordance with the PRSP, hopes to achieve the MDGs for the DWSS sector. Its formulation, financed by the Bank, was conducted from March to September 2006 under the auspices of the MAHRH, through its General Directorate of Water Resources (DGRE). The Government and all the water and sanitation sector stakeholders adopted the NDWSSP in December 2006 and indicated their support to the three- phase investment programme (2007-2009; 2010-2012; and 2013-2015) in a memorandum of understanding for the implementation of the Programme signed in January 2007. 2.5.2 The objective of the NDWSSP is to halve by 2015 the proportion of people without adequate access to potable water and sanitation. In the rural areas, the expected outputs are: (i) provision of potable water to an additional 4 million people that will raise the rate of access from 60% (2005) to 80% (2015); (ii) provision of sanitation to additional 5.7 million people that will gradually raise access from 10% (2005) to 54% (2015). In the urban areas, the expected outputs of the NDWSSP are: (i) provision of potable water to additional 1.8 million people that will raise access from 74% (2005) to 87% (2015); (ii) provision of sanitation to additional 2.1 million people that will raise access from 14% (2005) to 57% (2015). 2.5.3 The cost of the rural NDWSSP is estimated at CFAF 406 billion, including ongoing projects and programmes. Specifically, it comprises: CFAF 280.3 billion for potable water infrastrcuture; CFAF 64.4 billion for sanitation infrastructure; CFAF 24.3 billion for the common intervention framework (i.e. a set of implementation procedures and measures for capacity building); and CFAF 36.9 billion for contingencies and sundry items. The cost of the urban NDWSSP amounts to CFAF 137.8 billion, including ongoing projects and programmes. Specifically, it comprises: CFAF 86.9 billion for water supply infrastrcuture; CFAF 50.9 billion for sanitation infrastructure.

2.6 Financing of Sector 2.6.1 For the 1996-2003 period, the financing of the water sub-sector amounted to CFAF 152.2 billion (UA 204 million), with the Government contributing 7% and the major bilateral and multilateral donors of the sector contributing 93%. Among these, it is worth mentioning the French Cooperation, through the French Development Agency (AFD), German Cooperation (KFW), Danish Cooperation (DANIDA), Japanese Cooperation, Kuwait Fund, the Islamic Development Bank, the World Bank and the African Development Bank. Also, it is worth noting the significant intervention of several NGOs that contributed to the financing of sectoral projects. These include the Plan International, Water Aid, Eau Vive, Dakupa, Sahel Solidarité, Association Mains unies du Sahel or the CREPA.

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2.6.2 In the sanitation sub-sector, the World Bank and the AFD provided financial support for the implementation of sanitation strategic plans (PSA) in the city of Ouagadougou. Through the Project to Improve Urban Living Conditions (PACVU), the World Bank financed autonomous sanitation works in Ouagadougou, works for improving the management of waste water, human excreta, rainwater and household waste in the cities of Ouagadougou and Bobo Dioulasso as well as studies for the rain water drainage master plan for Ouagadougou and the updating of the Bobo Dioulasso rainwater drainage master plan. The findings of these studies led to the financing by the African Development Bank of school sanitation works in Ouagadougou and rain sanitation in Bobo Dioulasso. 2.6.3 Regarding the implementation of the NDWSSP for the water and sanitation subsectors, it is worth noting that part of the activities planned under the 1st phase of the Programme (2007-2009) is currently financed by the PTFs. Thus, out of CFAF 120.6 billion (UA 162 million) being the total financing cost of the 1st phase for the rural areas, over CFAF 56 billion (UA 76 million) have already been acquired for the ongoing development projects and programmes. 2.6.4 Since the start of its activities in Burkina Faso, the African Development Bank has financed six operations in the water and sanitation sector (three studies and three projects), amounting to a total UA 36.40 million. Three operations are currently ongoing (cf. Annex 2): the Water Supply Project for Ouagadougou from Ziga (UA 4.74 million); the Burkina Faso WSS Programme (UA 20 million); and the inventory of water supply structures and preparatory studies for the formulation of the NDWSSP (UA 1.49 million). These ongoing operations specifically aim at improving access to potable water and sanitation by urban and rural communities. In the urban areas, the Ziga Project aims at providing additional 16,000 individual connections in Ouagadougou. The DWSS Programme, on the other hand, aims at: (i) protecting 400,000 persons and their properties against the adverse effects of erosion and flooding through the development of 5 catchment areas, construction of 30 km of rainwater collectors and development of 17 km of associated roadways; (ii) constructing and/or rehabilitating DWSS structures in 172 public primary schools and 17,000 household latrines in 9 villages and 10 peri-urban districts of Ouagadougou; and (iii) providing 13 provinces with 780 boreholes, 120 AWSs and 13 SPWS. Lastly, the countrywide inventory of water points and the preparatory studies enabled the country to have a national water and sanitation programme for 2015 (NDWSSP). 2.7 Lessons Learnt from Donor Intervention 2.7.1 The experience of Burkina Faso in projects and programmes in the water and sanitation sector is rich with lessons. Firstly, it is worth noting that the outcomes of past and present interventions by the Bank in the country are generally positive. Indeed, the Rural Water Project (UA 8.52 million) and its supplementary programme, approved by the Bank in 1993 and 2000 respectively, enabled over 520,000 rural dwellers to gain access to potable water and thereby improve their living conditions. The last Bank portfolio review in the country highlighted the technical durability of the structures put in place under the project and underscored the sustainability of the management and maintenance system adopted. Similarly, in the case of the Ouagadougou-Ziga Project, the results obtained to date (completion of the setting up of the tertiary network and installation of nearly 6000 individual connections) are considered by the Bank to be highly satisfactory. Lastly, the execution of preparatory inventory studies for the NDWSSP was deemed to be “highly efficient” by the Bank portfolio review.

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2.7.2 Beyond these positive experiences, mention also needs to be made of difficulties encountered in the implementation of the DWSS Programme which is suffering a slippage of over two years in relation to the initial schedule. This significant delay in the implementation of activities is mainly attributable to: (i) time taken by the Burkinabe authorities to fulfil conditions for the effectiveness of the loan; (ii) lack of rigour in the preparation of some procurement documents; and lastly (iii) the lack of adequate knowledge of the Bank’s rules of procedures particularly with regard to procurement. These difficulties were analyzed and taken into consideration during the appraisal of the present project. The following elements will help overcome the major constraints encountered: (i) the empowerment law passed in 2005, mandates the Government to ratify loan agreements through the issunace of orders thereby reducing the time for the effectiveness of loans; (ii) a procurement specialist will be assigned to the DGRE to bolster the latter’s capcities; and lastly (iii) the proximity of the Bank’s country office in Burkina Faso, whose staff includes an infrastructure specialist and a procurement assistant as well as a disbursement assistant, will help provide better information to the project executing agency on the Bank’s rules of procedures and address its major concerns locally. 2.7.3 Apart from these sectoral experiences of the Bank, the interventions of the other TFPs provide useful lessons that the project has also taken into account. This is the case of the national land management programme (PNGT), financed by the World Bank, aimed at developing the capacities of villages by involving communities in the design and implementation of micro-projets. Thus the PNGT aims at making local communities the owners of the projects. The experience of the PNGT shows that the village land management committees need supervision in order to fully play their role. Their direct involvement in the procurement process at the local level, combined with the training activities, will contribute to improving their skills in financing management. 2.7.4 Lessons learnt from some projects also indicate that the fact of imposing unduly high contributions on the beneficiaries (5% or more of overall investment) could hamper the start of activities. Under the present project, the amounts of contribution required will be those defined in the NDWSSP, which are also be compatible with the incomes of the country’s rural communities. 2.7.5 Lastly, experiences conducted in the country show that the activities of donors operating in the rural water supply sub-sector were not sufficiently coordinated to yield a significant impact. Putting in place of a framework for consultation between the MAHRH and the TFPs operating in the sector in July 2005 paved the way for a gradual transition towards the programme approach. Moreover, the adoption by the Government and donors of NDWSSP investment plans and the commitment to organize annual joint programme monitoring reviews including all the partners, as stipulated in the memorandum of understanding signed in January 2007 have laid the basis for a unified coordination of the actors of the sector. 3. RURAL DWSS SUB-SECTOR 3.1 The Rural NDWSSP 3.1.1 The rural component of the Programme comprises three components, each made up of activities to be carreid out by 2015. The activities of the potable water infrastructure component comprise the following: i) new infrastructure development works: 17,290

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modern water points with hand pumps, 520 simplified water supply networks (SPWS) and 75 autonomous water stations (AWS); ii) rehabilitation works: 4,500 HP replacements, 11,000 superstructures, 1000 modern wells, 250 SPWS and 75 AWSs. The activities of the waste water and excreta sanitation infrastructure component comprise: i) construction of 395,000 household sanitation systems; ii) rehabilitation of 100,000 existing latrines; iii) construction of 60,000 wells for individual use; and iv) construction of 12,300 public latrine blocks. The unified framework of intervention component covers all the management capacity building activities of actors of the DWSS sector in Burkina Faso (central and deconcentrated structures) and the putting in place of the NDWSSP procedures and instruments. 3.1.2 The total cost of the rural NDWSSP is estimated at CFAF 406 billion (UA 546 million). The cost of the first phase of the rural NDWSSP (2007-2009), under which the present project falls, is estimated at CFAF 120.6 billion (UA 162 million), of which CFAF 56.4 billion (UA 76 million) is already secured under the ongoing projects and programmes. 3.1.3 Structures provided under this Programme will benefit an additional rural population of 4 million persons by 2015 for potable water and 5.7 million persons for sanitation throughout the country. 3.1.4 The rural component of the NDWSSP will be implemented through the DGRE. The latter consists of four technical directorates: the Water Supply Directorate (DAEP), the Studies and Water Information Directorate (DEIE), the Directorate for the Legislation and Monitoring of Water Resource Management (DLSO) and the Sanitation Directorate (DA) created in January 2007. This latter directorate was set up to manage and promote the sanitation sub-sector in order to make up for the delay that affected the water supply sub-sector. The senior management staff of the DAEP and the DA technical units include 8 engineers. The finance and administration department with a staff of 6, including two accountants, which manages the two financial and accounting support units of the IWRMAP does not have any accountant, or a procurement specialist. Since this department will be responsible for managing procurement and the accounts of the present project, as well as that of the NDWSSP, it is necessary to strengthen it by ensuring with an accounting and financial manager as well as a procurement specialist to be provided by the Government. 3.2 Bank Group Strategy 3.2.1 The present DWSS project forms part of the rural component of the NDWSSP and falls under the Bank’s rural WSS Initiative. The justification for focusing on the rural areas is to redress the imbalance resulting from the concentration of investments in the urban areas and at the same time contribute to reducing poverty in the rural communities. The Initiative started in an initial group of countries with an advanced institutional framework and a national DWSS Programme -2015 (14 countries have, to date, benefited from the Bank’s Initiative). A financial instrument, namely the Rural WSS Initiative Trust Fund, was put in place by the Bank to provide specific financing for activities earmarked under the Initiative in a given country (cf. the Box below). By instituting a national programme, Burkina Faso has consequently fulfilled the conditions for the start of the Initiative in the country.

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Box – the Bank’s Rural WSS Initiative Trust Fund To support donor contributions to the initiative, the Bank has se up a multi-donor trust fund. The WSS Initiative Trust Fund Agreement was signed by Denmark in February 2006 followed by France and the Netherlands in September 2006: The three donor countries, which share a common vision on the importance of water and sanitation in developing African countries, have contributed a total of € 90 million to the Fund in the form a grant (€ 40 million for France, 230 million Krones for Denmark and US$ 25.5 million for the Netherlands).

3.2.2 Development partners in the water and sanitation sector, meeting in March 2007 in Ouagadougou to review the NDWSSP start-up report, discussed and decided on the components of the present project thereby paving the way for its appraisal which was jointly undertaken with the Swedish cooperation agency (ASDI). The meeting also provided the occasion for the development partners to reaffirm their support to the new strategic orientations defined in the NDWSSP by the Government and assist the latter to fully implement the Programme in order to enable the country achieve the MDGs for water and sanitation. Furthermore, the main conclusions of the project appraisal were approved by all the development partners present during the subsequent validation meeting. 3.2.3 In order to consolidate the programmatic approach advocated by the Government and the development partners in achieving the objectives of the NDWSSP, the Bank and other donors in the sector initiated a discussion aimed at determining ways and means of gradually arriving at a harmonized financing mechanism for the Programme starting from its next two phases (2010-2015 period). The studies on the setting up of this commun financing mechanism will be undertaken by October 2007, with European Union financing. However, in view of the urgency needed to support Burkina Faso to achieving the targets set by the Programme, the financing of the present project will be based on mechanisms that are currently in force in the country.

4. THE PROJECT 4.1 Design and Rationale 4.1.1 The present project is a component of the 1st phase of the national programme (NDWSSP). It was formulated in consulttion with the major donors of the sector in order to address the fundamental needs of rural communities in the area of potable water supply and sanitation. It is based on the following principles: (i) the sector decentralization process; (ii) a demand-driven approach involving the beneficiary communities; (iii) contribution by the latter to equipment investment and maintenance costs; (iv) support to the private sector, central and deconentrated technical structures operating in the sector, local administrations and the beneficiaries; and (vi) closer coordination between the various actors of the sector. 4.1.2 Following the priorities defined in the NDWSSP, the project will focus on four regions which, taking into account ongoing projects, will have access rates below the national average of 68%. Furthermore, on the basis of programme approach henceforth adopted for the sector, the project will seek support from existing institutions in the country in order to avoid the multiplication of structures and ensure the ownership of this experience by the permanent entities. Past and present sectoral experiences in Burkina Faso however show that the public administration, at the national and regional levels, suffers from weak capacities, both in terms of human and technical resources. Consequently, the project will provide support to the DGRE and its technical directorates (DAEP and DA) as well as for regional

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directorates (DRAHRH) in charge of the effective implementation and coordination of the project. 4.1.3 The technical design of the present project is based on: (i) the reference framework of technical supply solutions identified for the NDWSSP; (ii) the basic planning established at a national level to formulate the NDWSSP investment plan aimed at achieving the MDGs; and (iii) programming of works based on the participation of and demand by users and local elected officials, in consultation with the relevant Government technical services. 4.1.4 With regard to DWS, a “technical package” of three preferential solutions for drinking water supply was adopted: (i) village boreholes fitted with hand pumps, (ii) simplified water supply, and (iii) an autonomous water station. These technologies were largely approved in Burkina Faso and closely reflect the demand, community practices and technologies that are best suited to the local geological context. Indeed, following the planning standards and criteria defined in the NDWSSP, the technical options on offer, based on the size of the recipient community, are underpinned by the following considerations: (i) for villages to be provided with boreholes fitted with hand pumps, the minimun flow rate of the boreholes should be about 1 m3/hour; this is largely covered by the average flow rates of the boreholes generally in the basement zone (about 2 m3/hour); and (ii) with regard to simplified DWS systems and autonomous water stations in urban areas, the minimun flow rate of the boreholes must be 5 m3/hour; these conditions are hard to meet in the basement zone and require the use of more advanced technical methods such as geophysical exploration. 4.1.5 For household sanitation, the benefciaries can choose from a variety of “improved” technologies comprising,: (i) double pit VIP latrine; (ii) single pit VIP latrine of the CREPA type; (iii) ECOSAN household latrine; (iv) hand-flushed toilet (HFT); and (v) the domestic drain-well (wash tub) for the evacuation of grey water, notably where water consumption and dwelling densities are high coupled with impermeable soils and average temperatures. The above options are standard low-cost structures that guarantee reasonable levels of durability and hygiene. The proposed public sanitation lavatories will be standard structures with multiple cabins (5 to 6 stalls) with flush toilets (HFT) and with separate male-female compartments, including urinals and two hand wash places. A single type will be used for all the structures of the project. These various technical solutions which will be proposed to the beneficiaries have been reviewed and discussed during the formulation of the NDWSSP and the appraisal of the present project. 4.1.6 With regard to sanitation, to address the problem related to: i) the lack of awareness of the impact of the sanitation systems on health; and ii) the lack of a support structure to take charge of the operational aspects (mobilization of the users’ contribution, information, monitoring of outputs, intermediation, etc.), the project design includes IEC campaigns aimed at sensitizing communities and assisting them to be aware of the fecal peril. This task could be entrusted to women’s outreach and awareness teams that will be involved in the construction of household sanitation structures. 4.1.7 The “logistical support” and “technical assistance” components of the project were defined in consultation with other development partners to take into account urgent measures related to the implementation of the NDWSSP unified framework of intervention as well as those to be identified by the DGRE and DRAHRH study on human resources, conducted

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within the framework of IWRMAP. A technical assistance fund was specifically provided by the project for that purpose. 4.1.8 The present report is the outcome of field visits and consultations with rural communities, governmental authorities, other national actors of the water and sanitation sector and donors during the various missions. It also took into consideration lessons learnt from ongoing experiences. The entire process leading to the preparation of this report was carried out together with the Government and the development partners in the sector. Indeed, the project components were discussed with the TFPs who validated the findings of the appraisal mission during a meeting organized for the purpose. 4.2 Project Objectives 4.2.1 The sector goal of the project is to contribute to improving the socioeconomic and health conditions of rural communites. Specifically, it targets the following priority objectives: (i) improve water supply and household sanitation in the rural localities of the four target regions (Cascades, West-Central, South-Central and Sahel); and (ii) improve the provision of community sanitation in the rural communities of these four regions. These objectives target a total rural population of about 2.8 million. 4.2.2 Overall, the construction of DWS structures under this project will contribute to raising by 2010 the average drinking water access rate of the targeted communities from 55% to 71%, and thereby covering nearly 70% of the MDGs for water in the four regions. 4.2.3 At the level of sanitation, the average access rate in the four regions is estimated at 10%, and the project will contribute to raising this to 20%, and thereby achieving over 21% of the MDGs for sanitation in these regions. 4.3 Project Priority Intervention Areas and Target Communities 4.3.1 The choice of the project intervention areas is justified by two major reasons: (i) the state of access to potable water and sanitation services in the regions of Cascades, in the West-Central, South-Central and the Sahel regions. Indeed, on the basis of ongoing projects alone, the rate of access by the people to potable water at the end of the 1st phase of the NDWSSP (2009), taking into account all supply solutions, would only be 62% in these regions, which will rank them a level lower than the national average (68%); and (ii) the high priority given by the Government to the poverty reduction programme in these regions that are among the most populated ones and to which the project will make a significant contribution in access to water and sanitation. 4.3.2 Physical Context. The priority intervention area of the project covers four regions: (i) the Cascades (capital of Banfora) at about 500 km to the South-West of the capital Ouagadougou; (ii) West-Central (capital Koudougou) situated at about 100 km to the West of the capital; (iii) the South-Central (capital Manga) at 120 km to the South of the capital; and (iv) Sahel (capital Dori) at about 300 km to the North of the capital. These regions have more or less similar hydro-climatological and geological features, characterized by a long dry season (8 months), the presence of seasonal water bodies that dry out during three (3) months after the rainy season and the existence of crystalline geological rock formations that are not suitable for the harnessing of ground water resources.

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4.3.3 The climate characterizing these regions is the Sudano-Sahelian type with rainfall ranging between 400 mm isohyetal lines for those located in the north of the country and 1000 mm in the south. The density of the vegetation increases from the north to the south. Rains are essentially concentrated over a short period in the year, generally from June to September. They also show high spatial variations. The relief is made up of a vast peneplain interspersed with mounds that hardly exceeds a few tens of metres in altitude. 4.3.4 The geological formations are essentially of the hard rock type (granite and related formations) that do not make for the existence of underground water reserves capable of sustaining high flow boreholes (case of SPWS) or wells. In such cases (SPWS), further exploration will be required, with the aid of geophysical probing to determine areas that are likely to be productive. Fortunately, this risk is low for most of the project structures (1,345 boreholes fitted with hand pumps) whose water requirements per structure (1 m3/hour) are largely covered by the average flows generally available in the basement area (about 2 m3/hour). In such regions, it is virtually impossible to forecast the location of future water points in relation to the recipient village since this depends on the existence or proximity of fractures or alterites likely to contain water to the locality. This situation accounts for the long distances covered to fetch water (over 500 m, or 1 km) that characterize these regions. 4.3.5 Socioeconomic Context. At the administrative level, the 4 regions contain thirteen (13) of the country’s 45 provinces, namely two (2) in the Cascades region, four (4) in the West-Central region, three (3) in the South-Central region and four (4) in the Sahel. The total rural population of the areas concerned has been estimated at 2.8 million inhabitants (2007), made up of: Cascades (408,000), West-Central (1,020,000), South-Central (483,000) and Sahel (907,000). The growth rate of this population contributes to increasing the poverty index. Indeed, average population growth rates per region are 2.7% for Cascades, 1.7% for West-Central, 1.6% for South-Central and 2.8% for the Sahel. 4.3.6 The health situation of the communities in the area is precarious and is characterized by average infant-juvenile mortality rates ranging between 105 and 190 per thousand, as against an African average of 137.7 per 1000 in 2006. Maternal mortality is about 1000 per 100,000 births as indicated by the population and health survey, a level which is well above the African average of 623 per 100,000. This situation is attributable to infectious and parasitic diseases and the spread of HIV/AIDS whose prevalence rate averages 2.3% in the project regions2. Lastly, the prevalence rates of diarrheoal (water-borne) diseases are on average 14% for the intervention regions. 4.3.7 The Poverty Reduction Strategy Paper (PRSP) indicates that the South-Central region is among the country’s regions that are most affected by poverty, followed by the West-Central and Cascades regions with a generally poverty level similar to the national average, while the Sahel region is in the third group of regions least affected by poverty. Poverty indices of the regions are 66.1% for the South-Central, 39.1% for Cascades, 41.3% for West-Central and 37.2% for the Sahel, as against the national average of 46.4%. These percentages indicate that most of the population live below the absolute poverty line estimated at an annual rate of CFAF 83,000 per adult (CFAF 230, about US$ 0.50, per day). Poverty is more pronounced in the rural areas than in the urban areas. The Poverty Reduction Strategy will necessarily have to focus efforts to reduce poverty in rural areas where nearly 90% of the country’s population affected by this scourge live.

2 Source: UN-AIDS;

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4.3.8 Target Communities. The priority beneficiaries of the project are the rural communities in the Cascades, West-Central, South-Central and Sahel regions that have expressed their needs and conveyed their request to the authorities. The recommended approach consists in giving preference to the localities in these regions that have the highest deficit indices. Demand for community sanitation structures expressed by schools, rural health centres, markets, road transport stations and various public places will also be taken into account. The maintenance and servicing of these public latrines will be the responsibility of infrastructure management structures that will be provided with these amenities, generally rural communes. 4.3.9 The activities identified by the project will help directly meet needs of about 525,300 individuals in terms of access to clean water, about 201,000 individuals to household sanitation and 80,500 individuals to community sanitation. 4.4 Strategic Context The project will be implemented in the context of the Poverty Reduction Strategy Paper (PRSP), of the NDWSSP and the action plan for the integrated management of the water resources (IWRMAP). As formulated in 2006, the PRSF outlines the priority development objectives for the coming years. It entails improvement in access by the poor to basic social services and social protection. Achieving this objective will require the prior satisfaction of water and sanitation needs for the communities concerned. The project is in line with the strategic orientations defined in the Bank’s Result-based Country Strategy Paper (RBCSP) 2005-2009 that defines water and sanitation as a priority sector in its operations in Burkina Faso. 4.5 Project Description 4.5.1 The expected outputs of this project whch is in keeping with the 1st phase of the NDWSSP, namely: (i) household latrines and domestic drain-wells (washbasins); (ii) collective multi-stall community latrines constructed within village public amenities (markets, schools, health centres and other public places); (iii) new modern water points (wells and boreholes fitted with hand pumps); (iv) simplified water supply networks and structures; (v) autonomous water stations; (vi) putting in place, strengthening and training of leading members of Water Users’ Associations (WSUA); (vii) support for the establishment of hand pump repairers and maintenance networks; (viii) support to the DGRE for the effective implementation of the reform for the management and maintenance of DWS water structures; (ix) establishment and initiation of women representatives for awareness about hygienic living conditions; (x) recruitment and training of masons in household latrine construction techniques; and lastly (xi) support for the strengthening of the DGRE, regional directorates of agriculture, water supply and fishery resources (DRAHRH) concerned by the project and rural communes in transferringt their powers to third parties for drinking water services. 4.5.2 The project comprises the following components: A) Development of Basic DWSS Infrastructure; B) Institutional Support to Structures Involved in the Project; and C) Support for Project Coordination and Management.

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Component A: DWSS Basic Infrastructure Development 4.5.3 Drinking Water Supply in the Rural Localities of the Project. This activity involves: (i) establishment of 1,345 new modern water points fitted with hand pumps; (ii) construction of 16 new simplified pipe water systems; (iii) rehabilitation of 50 boreholes fitted with hand pumps, 5 SPWS and 10 AWS; (iv) 1,080 water users’ associations (WSUA) put in place, trained in the management and maintenance of DWS structures; (vi) 31 SPWS managers trained, 170 communal councillors and 30 workers from regional directorates of basic education trained and; (vii) training, outreach and awareness and health education undertaken in concerned villages of the project regions. 4.5.4 Family and Community Sanitation in Rural Localities of the Project. The works proposed will help establish family and community sanitation systems for schools, health structures and village public infrastructure. The structures proposed are essentially: (i) 20,100 new family latrines; (ii) 7,000 domestic drain wells (washtubs with hand wash basins); (iii) 1,150 new multi-stall ventilated community latrines; (iv) training of 200 artisan-masons for the construction of household latrines; (v) training of 200 school teachers as vectors of hygiene awareness; and (vi) putting in place of 400 female intermediaries for hygiene awareness around village sanitation structures. 4.5.5 The semi-community sanitation structures will be constructed in schools, village health centres and markets, where generally, overcrowding fosters the occurrence and spread of water-borne diseases, notably as a result of poor hygiene conditions and environmental sanitation. 4.5.6 Control and Supervision of Works and IEC Campaigns of the Project. These activities consist of: (i) the control and supervision of construction works; and (ii) training, sensitization and outreach activities among the communities. Two engineering firms will be recruited for the works control and supervision together with assistance to technical directorates in relevant procurement procedures. Also, NGOs or specialized consulting firms will be recruited for the awareness and training activities in the project area with regard to problems of maintenance, hygiene and sanitation through information, education and communication (IEC) campaigns and through appropriate health education, for the efficient management of the operation, maintenance and servicing of water supply structures provided in order to ensure their durability, pursuant to the provisions of the reform (PAR). These activities will be conducted separately for potable water and sanitation. In view of the lag affecting the sanitation sub-sector combined with perception that the rural communities have of it, special emphasis and greater efforts will be made in this regard. Component B: Institutional Support to Structures Operating Under the Project 4.5.7 Building the Capacities of State Structures concerned by the Sector: the DGRE, the DRAHRH and the Regional Directorates of Health in the Project Area. The DGRE will be the delegated owner of the project through its technical directorates that will operate locally through the regional directorates (DRAHRH) in the project areas. To enable these structures in charge of the implementation of the project to be operational and fulfill their role in the field, they will be provided with support.

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4.5.8 This support will essentially consist of: (i) procurement of rolling stock for the DGRE and four DRAHRHs for monitoring and field supervision missions in the four regions of the project; (ii) procurement of office and computer equipment for the DGRE and the four DRAHRH; (iii) procurement of technical field equipment (water analysis kit, GPS equipment and piezometric probes) for the DGRE and the four DRAHRH; and (iv) procurement of field water analysis kit for the four regional health directorates in the project areas. 4.5.9 Support for the putting in place of WSUA and building their capacities. To ensure sustainable management and operation of the structures put in place by the project, support will be provided for establishing 1,080 WSUA in the Cascades and South-Central regions. The activities planned are the following: (i) information meetings in each province on the reform for the benefit of the members of communal councils and members of the CPEs in charge of the management of boreholes equipped with hand pumps; (ii) training of members of the WSUA executive members; and (iii) training of operators for the management of SPWS and AWSs. 4.5.10 Support for the Putting in Place of the Unified Framework for Action (UFA). The UFA entails the procedures for the implementation of the Programme and transfer of powers to the rural communes. In this regard, the project will finance: (i) reproduction of guides on DWSS and sanitation; and (ii) support for the formulation of communal development plans on DWSS (PDC-DWSS). Component C: Project Management and Coordination 4.5.11 This component comprises the following activities: (i) the management and general coordination of the programme; and (ii) auditing of the project accounts. 4.5.12 Management and General Coordination of the Programme. This will be carried out by the DGRE for all the activities undertaken under the NDWSSP up to its completion. At the regional level, it will be supported by the DRAHRH. To enable the DGRE to effectively carry out its management and coordination duties for the NDWSSP, it will receive support to cover: (a) the operating costs of the rolling stock during the monitoring and field supervision missions in the four areas. The DRAHRHs concerned by the project will also receive logistical and material support to carry out their implementation and monitoring activities in the project area; (b) the cost of study trip and stay in the region; and (c) the cost of travel and stay of the DGRE and the DGCOOP at the Bank’s headquarters. 4.5.13 Annual Audit. This activity concerns the financial audit of the project. An external auditing firm will be recruited to verify on an annual basis, the general accounts of the project and the corresponding bank accounts. The audit costs will be financed by the ADF and the report produced by the auditor will serve as a basis for the annual bipartite review (Government –Development Partners) of the status of the project. 4.6 Impacts on Crosscutting Issues 4.6.1 The project has been classified under the environmental and social category II, in accordance with the Bank’s environmental protection procedures. In view of their nature as described above, the DWS and sanitation works that will be undertaken in the rural areas will not have any significant and uncontrollable impact. The works will not affect any major or protected ecosystem, archeological or known religious site. Inconvenience created for the

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people will be largely insignificant in view of the socioeconomic and public hygiene benefits (decreased prevalence of water-borne diseases) that will stem from the operation of the networks and sanitation. 4.6.2 These inconveniences on the physical, natural and human environment will not be significant in view of the fact that the right-of-way of the intervention sites will be highly localized. The installation of new boreholes, laying of pipes and construction of public toilets (including septic tanks and drain-wells) will only entail minor damage to the ecosystems of the rural areas involved. The negative impacts will essentially consist of earthworks, generating localized disturbances to the soil structure, cutting of grassy and desert vegetations that some of which will be replanted or regenerated after the works, leakage of oil and fuel and emission of gas from the site machinery, onto the grounds, etc. The laying of pipes on the roadways will only entail minimum cutting of ornamental trees and the aesthetic impact will be negligible and temporary. The works will not affect any cultural heritage. The majority of these negative impacts which have been deemed to be insignificant and reversible will be mitigated through appropriate measures contained in the environmental and social management plan (ESMP). The overall cost of the environmental protection measures and monitoring of the quality of water from the water points has been estimated at CFAF 400 million. 4.6.3 As part of the formulation of the NDWSSP, it is important to know that a strategic environmental impact assessment (SEIA) has been prepared by a consulting firm for the entire programme. This study was validated by the Government and carried out using a participatory approach, including the involvement of all the stakeholders. However, in line with the Bank’s procedures, it was recommended to the Government during the appraisal mission to carry out a specific environmental and social assessment of the project, leading to the preparation of an environmental and social management plan (ESMP), a summary of which is given in Annex 6. 4.7 Project Costs The estimated cost, excluding tax, of the drinking water supply and sanitation project is UA 34.97 million; made up of UA 19.29 million in foreign exchange (55%) and UA 15.68 million in local currency (45%). It includes a 10% provision for physical contingencies and 2% for annual price escalation for the foreign currencies and 2.4% for the local currency. Tables 4.7 (a) and 4.7 (b) below provide a summary of the project costs by component and by category of expenditure.

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Table 4.7 (a): Summary of Project Cost Estimates by Component

CFAF Million UA Million Component

FE LC Total FE LC Total % of total

A. Basic Infrastructure Borehole drilling and rehabilitation works 8305.60 2076.40 10382.00 11.17 2.79 13.96 39.9%SPWS and AWS structures+ networks 1696.00 424.00 2120.00 2.28 0.57 2.85 8.2%Household latrines 0 2450.80 2450.80 0 3.30 3.30 9.4%

Community latrines 0 2875.00 2875.00 0 3.87 3.87 11.1%

IEC campaigns on WS structures 1000.20 250.04 1250.20 1.34 0.34 1.68 4.8%

IEC campaigns on sanitation structures 0 798.87 798.87 0 1.07 1.07 3.1%

Environmental monitoring 114.60 285.34 400.00 0.15 0.38 0.53 1.5%

DWSS works supervision and control 600.10 150.02 750.12 0.81 0.20 1.01 2.9%

Sanitation works supervision and control 0 319.55 319.55 0 0.43 0.43 1.2%

Sub-total/ Basic Infrastructure 11716.51 9630.03 21346.54 15.75 12.95 28.70 82.1%B. Institutional support DGRE & 4 DRAHRH rolling stock 191.00 0 191.00 0.26 0 0.26 0.7%Office & computer equipment for DGRE & 4 DRAHRHs 84.50 0 84.50 0.11 0 0.11 0.3%Field technical equipment 113.00 0 113.00 0.15 0 0.15 0.4%Support to local actors’ capacity building 0 178.00 178.00 0 0.24 0.24 0.7%Technical assistance and study fund 320.00 80.00 400.00 0.43 0.11 0.54 1.5%

Sub-total/ Institutional support 708.50 258.00 966.50 0.95 0.35 1.30 3.7%C. Project coordination and management Staff (Salaries and benefits) 2.40 267.10 269.50 0.00 0.36 0.36 1.0%Operating Costs 331.50 222.50 554.00 0.44 0.30 0.74 2.1%Annual project auditing 48.00 0 48.00 0.07 0 0.07 0.2%

Sub-total project coordination and management 381.90 489.60 871.50 0.51 0.66 1.17 3.4%

Base cost 12806.91 10377.63 23184.54 17.22 13.96 31.17 89.1%

Physical contingencies 1280.69 1037.76 2318.45 1.72 1.39 3.12 8.9%

Provision for inflation 256.14 249.06 505.20 0.35 0.33 0.68 1.9%

TOTAL PROJECT 14343.74 11664.46 26008.19 19.29 15.68 34.97 100.0%

Table 4.7 (b): Summary of Project Cost by Expenditure Category

CFAF Million UA Million

Expenditure Category FE. LC Total FE. LC Total

% in FE.

GOODS 388.50 0 388.50 0.52 0 0.52 100.0%WORKS 10001.60 7826.20 17827.80 13.45 10.52 23.97 56.1%SERVICES 2082.91 2083.87 4166.74 2.80 2.77 5.57 50.0%

OPERATION 333.90 467.60 801.50 0.45 0.66 1.11 41.7%

Base cost 12806.91 10377.63 23184.54 17.22 13.95 31.17 55.2%

Physical contingencies 1280.69 1037.76 2318.45 1.72 1.39 3.12 55.2%

Provisions for inflation 256.148 249.06 505.20 0.35 0.33 0.68 50.7%

TOTAL COST 14343.74 11664.45 26008.19 19.29 15.68 34.97 55.2%

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4.8 Sources of Finance and Expenditure Schedule 4.8.1 The project will be financed as follows: (i) the ADF will provide UA 20 million; (ii) the RWSS Initiative Trust Fund: UA 10 million; (iii) the Government: UA 4.34 million; and (iv) the beneficiary communities: UA 0.63 million. 4.8.2 The ADF financing will be used to cover: (i) 77% of the cost of the boreholes and rehabilitation works; (ii) 98% of the cost of the SPWS and AWS works, including the networks; (iii) 100% of the cost of works control for the SPWS and AWS; (iv) 100% of the cost of the institutional support to local structures involved in the project; (v); 100% of the cost of benefits (66% of project staff costs); 100% of the operating costs of the project; and 100% of the cost of the annual auditing of the project. The financing from the RWSS Initiative Trust Fund will be used to cover: (i) 91% of the cost of family latrine works; (ii) 100% of the cost of community latrine works; (iii) 55% of the IEC campaigns on the WS structures; (iv) 100% of the IEC campaigns on, and control of the sanitation works; and (v) 100% of the cost of the project environmental monitoring. 4.8.3 The Government’s contribution will amount to UA 4.34 million, equivalent to CFAF 3.23 billion (12.4%) of the total amount of the project budget. It will open an account at the Treasury in which it will lodge its contribution. The initial contribution representing the Government’s input for the first year (2008) will be UA 1.38 million, equivalent to CFAF 1.03 billion. The Government’s contribution will be used to finance the following operations: (i) 21% of the cost of borehole and rehabilitation works; (ii) 45% of the cost of the IEC campaigns for the DWS works; and (iii) 100% of the cost of salaries (34% of project staff costs). Tables 4.8 (a) and 4.8 (b) below give a summary of the sources of financing and their distribution by component. 4.8.4 Lastly, since the communities requested the intervention of the project for the construction of DWS structures, they will pay an initial contribution of about 2% of the amount of investments. But for the sanitation works (household latrines), this contribution will be 10% of the cost of the structure. This financial contribution will be mobilized by the beneficiaries in the form of initial savings and lodged in a savings account of a local financial institution opened by the Water Users’ Association (WSUA). The beneficiaries’ contributions will be paid as and when requests for the corresponding structures are made; however, these will necessarily be collected prior to the construction of the structure for which the request has been made.

Table 4.8 (a): Sources of Finance (UA million)

UA Million

Source of finance FE. LC Total

% of Total

ADF 18.51 1.49 20.00 57.2%

TRUST FUND 0.78 9.22 10.00 28.6%

GOVERNMENT - 4.34 4.34 12.4%BENEFICIAIRIES - 0.63 0.63 1.8%

TOTAL COST 19.29 15.68 34.97 100.0%

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Table 4.8 (b) Source of Finance by Component (UA million)

Component ADF Trust

Fund Gvt Benef. Total

A. DWSS Infrastructure

Borehole drilling and rehabilitation works 12.57 0 3.4 0.28 16.25DWS and AWS structures + networks 3.43 0 0 0.06 3.49Household latrines 0 3.03 0 0.29 3.32Community latrines 0 3.91 0 0 3.91IEC campaigns for WS structures 0 1.01 0.81 0 1.82IEC Campaigns & sanitation works control 0 1.51 0 0 1.51Environmental monitoring 0 0.54 0 0 0.54DWS works supervision and control 1.24 0 0 0 1.24

Sub-total/ Basic Infrastructure 17.24 10.00 4.21 0.63 32.08B. Institutional Support DGRE & 4 DRAHRHs rolling stock 0.31 0 0 0 0.31DGRE & 4 DRAHRH office and computer equipment 0.14 0 0 0 0.14Technical field equipment 0.19 0 0 0 0.19Support to local actors’ capacity building 0.33 0 0 0 0.33

Technical assistance and study fund 0.66 0 0 0 0.66

Sub-total/Institutional support 1.63 0 0 0 1.63

C. Project management and coordination Staff (Salaries and benefits) 0.25 0 0.13 0 0.38Operating costs 0.80 0 0.80

Annual project auditing 0.08 0 0 0 0.08

Sub-total/ Project management and coordination 0.60 0 0.13 0 1.26

TOTAL PROJECT COST 20.00 10.00 4.34 0.63 34.97

4.8.6 Table 4.8 (c) below provides a summary of the expenditure schedule by source of finance.

Table 4.8 (c): Expenditure Schedule by Source of Finance (UA million)

Source of Finance 2008 2009 2010 Total

ADF 6.35 9.72 3.93 20.00TRUST FUND 3.17 4.86 1.97 10.00GOVERNMENT 1.38 2.11 0.85 4.34BENEFICIARIES 0.20 0.31 0.12 0.63

TOTAL COST 11.10 17.00 6.87 34.97

4.9 Performance Indicators 4.9.1 The specific objectives of the monitoring-evaluation component under the NDWSSP are the following: i) provide decision-makers and actors the necessary information to assess the implementation and progress of the programme activities by measuring the quality and level of achievement of the expected outputs as well as the level of use of resources; ii) give an account of the quality of management and the effective exercise of responsibilities devolved to the various actors; iii) identify factors capable of influencing the implementation of the programme and propose necessary adjustments to ensure the

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achievement of the objectives; and iv) ascertain the relevance and realism of the policy and strategy underpinning the NDWSSP in conjunction with the results obtained. 4.9.2 The Borrower is in the process of preparing a monitoring-evaluation system for the NDWSSP with the financial support of the Bank. A monitoring-evaluation manual was prepared in February 2007 and submitted to all the stakeholders for approval. This manual is currently undergoing validation. Specifically, it is to be used as a guide in the implementation of the NDWSSP and in other sectoral projects and programmes at the national level. Easily quantifiable indicators have been defined (execution or performance indicators for the monitoring of activities; access indicators; impact indicators) taking into account the existing standards and criteria. These indicators will be used to measure, at any moment, the performance of the activities undertaken during the implementation of the NDWSSP. The performance indicators for the present project are fully aligned with those defined in the monitoring-evaluation manual and presented in paragraph 5.9.11 (project monitoring-evaluation) below. By virtue of its status as the national coordination structure of the NDWSSP, the DGRE will be in charge of managing and updating the monitoring-evaluation system. 5. PROJECT IMPLEMENTATION 5.1 Executing Agency 5.1.1 The institutional framework adopted by the NDWSSP is based on existing structures designed to ensure the ownership of the programme by the Government’s departments and affirm the role and missions of local administrations and other actors. 5.1.2 The technical and administrative supervising body of the NDWSSP will be the Ministry of Agriculture, Water Supply and Fishery Resources (MAHRH), which is the Ministry in charge of the Burkina Faso water sub-sector. In this regard, it will be the project executing agency. In accordance with the orientations of the institutional plan set out in the NDWSSP (cf. Annex 3), the General Directorate of Water Resources (DGRE) will carry out the technical implementation and management of the programme at the national level and the Regional Directorates of Agriculture, Water Supply and Fishery Resources (DRAHRH) at the regional level. The DGRE and the DRAHRHs will consequently be responsible for the implementation of the present project. They will be supported, at the DGRE, by the Sanitation Directorate (DA) for the implementation and monitoring of sanitation structures and by the Drinking Water Supply Directorate (DAEP) for the drinking water component. 5.1.3 Specifically, the DGRE will carry out the following tasks: (i) coordinate the activities of development partners under the NDWSSP in order to ensure compliance with the unified framework of intervention; (ii) ensure the fulfilment of Government’s commitments embodied in the Bank’s loan and grant agreement; (iii) prepare documents enabling the Government to ensure the effectiveness of the loan and those related to the conditions of the first disbursement; (iv) support the technical directorates (DA and DAEP) in the implementation of their components, notably the IEC and monitoring-evaluation activities; (v) ensure the preparation and/or carry out the quality control of the bidding documents prior to their submission to the Bank; (vi) have the regional directorates prepare the operations plan (procurement and disbursement) and monitor the latter; (vii) support the regional directorates in the processing of works in requests initiated by the communities, the selection of contractors, monitoring and control of works; (viii) ensure compliance with the schedule of

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execution of studies and works to be carried out by the regional directorates; (ix) prepare the project progress reports; (x) prepare counterpart budgets and ensure their availability within the timeframe set; and lastly (xi) carry out the financial management of the project (verification of detailed accounts, forwarding to the Bank of direct payments, management of ADF special accounts and counterpart funds) and ensure the timely submission of the accounting and financial audit reports of the project. 5.1.4 To carry out these project implementation and management tasks, and more broadly of the NDWSSP at the national level, the staff of the DGRE will be strengthened with two resource persons provided by the MAHRH: an accounting and financial manager and a procurement specialist whose CVs will have been submitted to the Bank for approval. Evidence of the provision by the Government of the two aforementioned managers will be a loan and grant condition (cf. § 7.2.4). The salaries of the central administration personnel (DGRE) will continue to be the responsibility of the Government. However, benefits will be paid by the project to persons who carry out the execution and coordination of the project activities right from the outset. 5.1.5 The project will also rely on deconcentrated structures of the MAHRH. In the four intervention regions of the project, the DRAHRH will be responsible for the monitoring and technical quality of the proposed activities in their area, with the assistance of the DGRE. The various Directors of the DRAHRH will prepare the bidding documents and monitor the execution of the activities in the project areas. The salaries of the staff of the deconcentrated administration (DRAHRH) will continue to be paid by the Government. However, benefits will also be paid by the project to persons carrying out the execution and regional coordination of the project activities right from the outset. 5.1.6 One of the major tools for the implementation of the NDWSSP is the Manual of the Programme Implementation. Financed by the Bank in conjunction with the preparatory studies of the NDWSSP and adopted by the CNP at its 1st session of 23 March 2007, it specifies the roles and responsibilities of the stakeholders in the programme cycles and activities and broadly outlines the execution procedures adopted for the implementation of these activities. The manual makes reference to specific documents that provide further details (the monitoring-evaluation manual, the regulatory instrument on transfer of ownership to the communes, specific technical prescriptions for each DWSS structure, etc.). 5.1.7 The administrative, financial and accounting manual of procedures of the NDWSSP (MPAFC), intended to clarify the modalities for the use of all the financial resources, including the ADF and the Initiative Trust Fund resources under the present project, is undergoing preparation with the Bank’s financing (the TORs were sent to the Bank for its non-objection). The MPAFC will present, inter alia, the modalities for the management of the special account intended to receive financing for support to the project implementation structures as well as community works undertaken under the project (construction of family latrines). This manual is expected to be completed and validated by the National Steering Committee of the programme in the 3rd quarter of 2007. 5.2 Steering Bodies 5.2.1 The NDWSSP is steered by the National Steering Committee (CNP), which translates the collegial responsibility of the national actors and partners concerned by the Programme. The CNP, which was established by decision in January 2007, is the

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consultative, monitoring and decision-making structure of the NDWSSP – 2015 at the national level. It is under the technical supervision of the MAHRH and the financial supervision of the Ministry of Finance and Budget (MFB). The specific mission of the CNP is to ensure the efficient implementation of the NDWSSP. In this regard, it has the following functions: i) approve planning and budgeting documents, including the startup reports of the components, annual work plans and corresponding budgets as well as periodic progress reports; ii) ensure that the approved annual budgets are consolidated and embodied in the finance act annually; iii) monitor the general progress of the Programme based on the progress reports; and iv) ensure consistency between the various components of the programme. The CNP is composed of: the Secretary-General of the MAHRH (Chair), the Secretary-General of the MFB (Vice Chair), the Director of the DGRE (Technical Secretary), the General Director of the ONEA (Deputy Technical Secretary), the technical directors of major ministries concerned by the Programme (basic education, health, cooperation, budget, etc.), the Representative of the Consultative Framework of NGOs operating in the WSS sector, the National Representative of the Private Sector in the WSS sector, the Representative of National Consumer Associations, Chairmen of Regional Steering Committees of the NDWSSP and a Representative per Technical and Financial Partner of the NDWSSP. 5.2.2 For consultation and monitoring at regional level, the CNP is supported by the Regional Steering Committee (CRP) of the NDWSSP, placed under the supervision of the Regional Governor. The specific mission of the CRP, also established by decision in January 2007, is to facilitate the efficient implementation of the NDWSSP activities in each region, in line with the guidelines and decisions taken by the CNP. The CRP is chaired by the Secretary-General of the Region and made up of the principal regional technical directors. 5.3 Eligibility Criteria of a Project Site 5.3.1 The eligibility of a site whose infrastructure will be financed under the Bank’s project is determined by “the demand approach” and the fulfilment of specific relevant criteria. The approach used consists in considering only the request made by beneficiaries. The consulting firm in charge of the IEC component will collate requests made by the communities and the local administrations, verify that they meet the criteria and forward them to the DRAHRH for validation prior to the start of works. The standards, criteria and indicators for the selection of villages will be those defined in the NDWSSP. Also, in order to ensure the viability of the system, the participation of beneficiaries will constitute a general principle that should accompany any investment in potable water and sanitation structures. 5.3.2 For drinking water facilities, the contribution requested of beneficiary households represents about 2% of the total cost of the structure. The other arrangements relating to the eligibility of a site are based on the following major principles: i) setting up of a Water Users’ Association (WSUA) for the management of the WS structures; ii) creation of viable conditions for the operation of the DWS structures at the technical and economic level, through payment for the water supply; iii) assignment of the job of standpipe operations to women on an equal basis in order to ensure their promotion in employment related to water management; and lastly iv) involvement of the private sector in the management and maintenance of structures through the contractualization between communes and private operators.

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5.3.3 For the sanitation structures, the main eligibility criterion is the consent of the beneficiaries to contribute to the financing of household latrines. The financial contribution requested from beneficiary households for a private structure is set at about 10% of the total cost of the structure. However, households can provide a contribution in kind (participation in the construction of the structure) in order to reduce their cash contribution. For community facilities (public latrines), the project will cover the entire cost with the commune catering for the maintenance on a sustainable basis. 5.4 Implementation and Supervision Schedules 5.4.1 The project will be implemented over a period of 40 months starting from September 2007. The works will begin in April 2008 and be spread over 30 months to be completed by the end of September 2010. The third quarter of 2010 will be reserved for the production of the Borrower’s completion reports. Concerning the implementation of activities, the Bank will undertake a launch mission as well as regular supervision missions in the country, in accordance with the current arrangements. 5.4.2 In order to shorten the time taken for processing documents and ensure compliance with the implementation schedule, the Bank’s Country Office Representative will play a key role in the approval of project documents and follow-up in Burkina Faso. More specifically, the Country Office will be the main responsible body for issuing non-objection opinions on the documents in close consultation with the Bank’s relevant departments and units. This responsibility is not limited and will grow in accordance with the delegation of powers to the national and regional offices of the Bank. This approach will facilitate the circulation of information between the DGRE, the regional directorates, development partners involved and the Bank, and thereby will help accelerate the startup and implementation of the project, in line with the measures of the ADB’s WSS Initiative. The indicative implementation schedule of the project, details of which are provided in Annex 4, may be summarized as follows. Activity Responsible BodDate /Period Loan approval ADF July 2007 Effectiveness ADF /GVT September 2007 Invitation for bids DGRE/ ADF August 2007 Evaluation and award of tenders DGRE/ ADF October to December 2007 Signing of contracts GVT January 2008 Mobilization of contractors and control firms GVT March 2008

Works GVT/Contractors April 2008 – September 2010End of project GVT December 2010 5.5 Procurement of Goods, Works and Services 5.5.1 The procurement of goods, works and services financed by the ADF will be in accordance with the Rules of procedure for the procurement of goods and works or, where applicable, to the Rules of procedure of the Bank for the use of consultants based on the appropriate standard bidding documents of the Bank. The table below provides the detail of the project procurement:

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Table 5.1: Procurement of Goods, Works and Services (UA million)

DESCRIPTION ICB

NCB Shortlist Other Total

A. WORKS 26.97 (22.94) Borehole drilling and rehabilitation 16.25 16.25 (12.57) (12.57) SPWS and AWS works 3.49 3.49 (3.43) (3.43) Household latrines 3.32 3.32 (3.03) (3.03) Community latrines 3.91 3.91 (3.91) (3.91) B. GOODS 0.64 (0.64) DGRE & DRAHRH rolling equipment 0.31 0.31 (0.31) (0.31) Technical field equipment 0.19 0.19 (019) (0.19) Computer and office automation equipment 0.140 0.14 (0.140) (0.14) C. SERVICES 6.18 (5.37) Suppport to local actors’ capacity building 0.33 0.33 (0.33) (0.33) Technical assistance funding 0.66 0.66 (0.66) (0.66) DWS works supervision and control 1.24 1.24 (1.24) (1.24) IEC for DWS 1.82 1.82 (1.01) (1.01) IEC & sanitation works control 1.51 1.51 (1.51) (1.51) Environmental monitoring services 0.54 0.54 (0.54) (0.54) Auditing 0.08 0.08 (0.08) (0.08) D. SUNDRY ITEMS 1.18 (1.05)

Coordination structure (salaries & benefits) 0.38

(0.25) 0.38

(0.25)

Operating costs (maintenance of equipment, supplies, telephone, electricity etc.)

0.80 (0.80)

0.80 (0.80)

Total 16.25 7.40 6.18 5.14 34.97 (12.57) (7.34) (5.37) (4.72) (30.00) − Amounts in parentheses are contributions by the Bank Group; − “Others” refers to national or international shopping, negotiation, procurement under community

participation projects, support to technical services involved and payment of benefits.

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Works 5.5.2 Procurement for the new and/or rehabilitated boreholes works amounting to UA 16.25 million, consisting of three (3) lots, will be by international competitive bidding (ICB), without pre-qualification. 5.5.3 Procurement for works relating to the construction and/or rehabilitation of SPWS and AWSs, including the networks, amounting to UA 3.49 million, consisting of ten (10) contracts depending on the volume of works by region, will be by national competitive bidding (NCB), with the maximum amount per contract not exceeding UA 500,000. The NCB procedure is justified in the present case by the existence of a sufficient number of qualified contractors at the national level to ensure competition. 5.5.4 Procurement for public sanitation works (community latrines), amounting to UA 3.91 million, consisting of eight (8) contracts depending on the volume of works per region, will be based on NCB, with the maximum amount per contract not exceeding UA 500,000. Indeed, the character, location and the size of works to be undertaken are not likely to attract external bidders. Additionally, there is a sufficient number of qualified enterprises in the country to ensure competition. 5.5.5 Procurement for household sanitation works (latrines and domestic drain-wells or washtubs with hand-wash basins), amounting to UA 3.32 million, will be in accordance with the Bank’s procedure for community contracts. These works will be subdivided into several lots in the four project regions. They will be carried out by local artisans (masons) from the regions. Goods 5.5.6 Procurement of technical equipment (water analysis kits, GPS equipment and accessories, piezometric probes), amounting to UA 0.19 million, will be by international shopping in view of the type of equipment involved. 5.5.7 Procurement of transport equipment for the national and regional coordination of the project (4x4 vehicles and motorcycles for the DGRE and the DRAHRH), amounting to UA 0.31 million, made up of two (2) contracts, will be by national shopping, in view of the existence of a sufficient number of qualified suppliers in the country to ensure competition. 5.5.8 Procurement of computer and office equipment as well as furniture, amounting to UA 0.140 million, will be by national shopping, in view of the fact that the amounts involved do not exceed UA 100,000 and the existence of a sufficient number of qualified suppliers in the country to ensure competition. The ex-post review procedure will apply for this procurement (cf. § 5.5.20). Services 5.5.9 Services will be procured on the basis of a shortlist. The consulting firms and NGOs, in charge of supervision and control of DWS works (UA 1.24 million), IEC campaigns for DWS structures (UA 1.82 million), IEC campaigns and control of works for sanitation structures (UA 1.51 million), support services for building local actors’ capacities

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(UA 0.330 million) and environmental monitoring services (UA 0.54 million), will be selected on the basis of the technical proposals with price consideration. The consulting firm(s) responsible for the auditing of the project accounts (UA 0.080 million) will be selected on the basis of shortlist and the lowest prices for comparable services. 5.5.10 Procurement of technical assistance services for training and technical assistance to be identified following the study on human resources to be conducted under the IWRMAP, amounting to UA 0.660 million, will be based on shortlists and evaluation of technical proposals with price consideration. The procurement advertisement will be limited to the country for technical assistance jobs whose fees will not exceed UA 100,000. 5.5.11 Procurement of individual consultancy services for periods of less than two months may be by negotiation. 5.5.12 For consultancy services (consulting firms) below UA 350,000, the publication of the advertisement may be limited to national and regional newspapers. However, any eligible consultant, regional or non-regional, may express interest in featuring on the shortlist. For services with estimated costs equal to or higher than UA 350,000, the advertisement may be restricted to the United Nations “Development Business” and the national press. Sundry Items 5.5.13 The total amount of the various types of procurement entailing various project operating costs is UA 1.18 million. This amount will cover the salaries (financed by the Government), the benefits and mission expenses of the staff as well as current operating expenses of the project (water and electricity, telephone, purchase of consumables, maintenance and servicing of equipment, etc.). Supplies and services required for the operation of the project amounting to more than UA 1,000 and less than UA 10,000, will be procured by national shopping. Procurement for supplies and services amounting to less than UA 1,000 will be by negotiation. The amount of the benefits and mission expenses of the staff involved in the implementation of the project will be defined on the basis of the country’s current conventions, which will be submitted to the ADF for prior approval. National Regulations 5.5.14 The country procurement analytical review (CPAR), jointly undertaken by the Bank and the World Bank in 2005, indicates that the national procurement system is adequate compared to international standards and, where necessary, may be used (cf. § 5.5.17) by the development partners. Furthermore, it is worth noting that a revision of the public procurement legal framework is currently underway. It aims at aligning the latter with future WAEMU community procurement legislation and the delegation of public services.

Executing Agency 5.5.15 As the project executing agency, the DGRE will be responsible for: (i) the procurement of goods for its own operation and support to regional directorates and other stakeholders concerned by possible capacity building efforts; (ii) recruitment of consulting firms and/or NGOs for the IEC campaigns on water and sanitation; and (iii) recruitment of consulting firms for works control and supervision services, auditing, support services for capacity building and the environmental monitoring. The secondment, by the Government, of a procurement specialist to the project will enhance the capacities of the DGRE in the area

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of procurement, and thus enabling it to manage competitive bids for the project more effectively, and more generally for the NDWSSP. 5.5.16 Furthermore and, in accordance with the decentralization policy, each of the regions concerned by the project will undertake procurement exercises through the regional tender award board. More specifically, the DRAHRHs will be responsible for procurement for WS and sanitation works undertaken in their respective districts, with the exception of works in several regions constituting a single lot. The tender award boards meet in the regional capitals under the chairmanship of the regional Secretary-General or his representative. 5.5.17 For all procurement, the DGRE and the DRAHRH will use the Bank’s standard bidding documents. Where the latter do not exist for some categories of goods or works, or where the amounts are too low, the DGRE and/or the regional directorates will use standard bidding documents of sister institutions or those used in the country that have been previously approved by the Bank. General Procurement Notice 5.5.18 The text of a General Procurement Notice (GPA), adopted together with the Government, will be issued for publication in the United Nations “Development Business” as soon as the project is approved by the Bank. Review Procedures 5.5.19 The following documents will be submitted to the Bank for approval prior to publication: (i) specific procurement notices; (ii) bidding documents or letters of invitation to consultants; (iii) evaluation reports on the bids by contractors and suppliers or consultants’ proposals including recommendations on the contract award and; (iv) draft contracts, where most incorporated in the standard bidding documents have been changed. The prior approval of the Bank on the technical analysis report on consultant services is not required. The Bank’s non-objection will be required following the technical and financial evaluations of the consultants’ proposals. 5.5.20 To ensure a rapid implementation of the project, all contracts valued at less than UA 100,000 will undergo the ex-post review procedure. This will specifically concern four (4) contracts for the procurement of computer and office automation equipment as well as furniture and part of the rolling stock (motorcycles), amounting to UA 140,000. The secondment to the DGRE of a procurement expert will help build the relevant capacities of the executing agency and ensure the conformity of the procurement with current rules of procedures. Furthermore, the proximity of the Bank Country Office will enable the use of the ex-post review with greater speed and effectiveness, contrary to the situation of countries without such offices where the review is undertaken by the Bank’s project officers during supervision missions causing considerable delay. 5.6 Disbursement Arrangements 5.6.1 Under the project, disbursements will be based on the following three methods: the special account method, the direct payment method and the repayment method. The direct payment method will be used by the Bank for the payment of contracts relating to: (i) borehole works, construction of DWS structures and networks, supply and installation of

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pumping equipment and construction of public latrines; (ii) procurement of rolling stock, field technical equipment, computer and office automation equipment; (iii) works control and supervision services, annual auditing of accounts and outreach/awareness (IEC campaigns) for potable water and sanitation. For all the other activities, namely, household sanitation works (family latrines and domestic drain-wells or washtubs), staff expenses and operating expenses as well as support to structures operating under the project (DGRE, DRAHRH and other services concerned), the Bank will use the special account method. 5.6.2 Two special accounts will be opened at the BCEAO to receive the loan and grant resources as part of the financing of the above-mentioned activities. The accounts will be replenished with an initial payment based on an expenditure plan not exceeding six (6) months of activities that will have received the prior approval of the Bank. The accounts will be replenished periodically following the presentation of a disbursement request and after the satisfactory justification of the use of at least 50% of the previous transfer and the totality of previous advances. Evidence of the opening of the two special accounts will constitute a condition precedent to the disbursement of the loan and grant resources (cf. § 7.2.4). 5.7 Financial and Audit Reports 5.7.1 The DGRE will produce quarterly reports on the status of the project to be forwarded to the Bank and the other donors at the latest one month after the end of the quarter concerned. These quarterly reports will provide information on the progress of the physical infrastructures of the project. 5.7.2 The project auditing firm(s) will be recruited on the basis of an annually renewable contract, for a maximum period of three years. The firm(s) will be responsible for the annual auditing of the project accounts. The annual audit reports will be sent to the Bank and other development partners at the latest six months after the closing of the financial year concerned. 5.8 Partnerships A framework for consultation between the MAHRH and all the development partners of the water and sanitation sector in Burkina Faso (CCP-AEPA) was established in July 2005 (Decision No. 2005/0045). The purpose was to facilitate the consultation of actors in the formulation of the NDWSSP which subsequently carried out March to September 2006. The preparation of the programme document was based on a participatory approach and at each stage (review of the DWSS sector; definition of objectives and strategy; formulation of an investment plan) a review and validation workshop was organized at the CCP-AEPA, involving all the stakeholders. This consultation will be pursued during the implementation of the NDWSSP itself. Indeed, the CNP set up under the Programme has been participating in the sectoral consultation effort by involving all the actors in the steering and strategic decision process of the NDWSSP. Furthermore, the Government and all the technical and financial partners will take advantage of the first phase of the NDWSSP to prepare a common sectoral approach (common financing mechanisms, common procurement and disbursement rules of procedures, etc.) for all the interventions starting from the second phase of the programme.

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5.9 Project Sustainability and Risks Costs Relating to the Operation of the Project Executing Agencies 5.9.1 Costs related to the operation of the coordination unit and structures operating within the project implementation amount to CFAF 992 million (excluding inflation and physical contingencies), equivalent to 3.2% of the project base cost consisting of: CFAF 218 million for salaries and benefits and CFAF 774 million for mission/travel expenses and miscellaneous management expenses. Costs Relating to Management and Maintenance of Structures 5.9.2 Estimates for recurrent costs and annual revenues of an WSUA were based on a without-risk scenario. The latter is based on quantitative data obtained in the field, partly depending on the type of structure (HP versus SPWS) and partly on the assumptions made for the simulation of recurrent costs in the reform implementation programme. The operating accounts presented below give a breakdown of the annual operating costs, revenues from the sale of water and the annual margin generated from the operation of the structures. 5.9.3 In the case of an WSUA using HP sytems, three cases were studied: the case of a village of 300 inhabitants (minimum equipment bracket defined in the NDWSSP), as well as two other cases corresponding to a village of 700 and 1,500 inhabitants respectively. A theoretical consumption of 20 litres/day/capita, corresponding to the standards defined in the NDWSSP, as well as a water retail price of CFAF 500/m3, corresponding to the CFAF 10 per 20-litre container price observed in the area, were used for the assumption. Furthermore, the effective supply rate to the population is estimated at 71%, representing the average access rate in the regions concerned by the project by 2010.

5.9.4 In the case of an WSUA using SPWS systems, three cases were also studied: the case corresponding to a system with a flow rate equal to 5 m3/hour (minimum flow rate for an SPWS as indicated in the NDWSSP) and two other cases corresponding to higher flow rate systems (7 and 10 m3/hour respectively).

Stand Pump (HP)OPERATING COSTS (In CFAF) Population supplied by HP

Drink Water ProductionPopulation 3 cases : 300 ; 700 ; or 1500 inhabitants. 300 700 1 500 of which supplied 71% 213 497 1 065Theoretic consumption l/d/inhabitant 20 20 20

Total m 3 to be produced per year 1 555 3 628 7 775

Operating CostsPreventive maintenancef 6 600 6 600 6 600Periodic maintenance Pumping tube, chain, bearings, brackets and/or other parts 100 225 100 225 100 225

Total Operating and Maintenance Costs 106 825 106 825 106 825

Resources Related to the Operation of the FacilityWater sales Price per M3

Number of m sold 3 1 555 3 628 7 775Income from sale of water 500 777 450 1 814 050 3 887 250

Provisional Operating Balance Excluding Depreciation 670 625 1 707 225 3 780 425

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5.9.5 These standard estimated operating accounts show that the operation of the project structures will yield a positive operating result. Indeed, revenues generated from the sale of water will cover the operating costs and yield a surplus balance. The communities could use this surplus to finance the construction and rehabilitation of other water supply structures and thereby enhance the chances of achieving the MDG for water. 5.9.6 However, it is worth noting that, for the SPWS, this simulation includes equipment renewal expenses (amortization), the operating account balance shows a deficit in the case of a system with a flow rate of 5 or 7 m3/hour. System of Recovery of Operating Costs 5.9.7 The method of management will be in line with the system recommeneded by the reform. Payment for water, which is a practice generally accepted by the rural communities, will be the rule at all the water points equipped with a HP, an SPWS system or a AWS, thereby enabling the recovery of the operating expenses of the structures. Payment for the HPs will be either on a per volume basis, by periodic contribution or by annual subscription, given that the latter system could be more effective in areas with highly competitive traditional water points. In localities with both HPs and an SPWS systems, the sale of water from the HPs will be preferably on a per volume basis and with the same tariff structures as those for the standpipes in order to avoid the opportunity effects of a system. At the SPWS

DWSS (THERMAL)PROJECTED OPERATING ACCOUNT (In CFAF) 5 m 3 /h 7 m 3 /h 10 m3/h

Production of Drinking WaterPopulation 3 500 3 500 3 500 3 500 of which inhabitants supplied 71% 2 485 2 485 2 485Theoretical consumption l/d/inhabitant 20 20 20

Total m 3 to be produced per year (including losses estimated at 5%) 19 048 19 048 19 048Pump production m3/hour 5 7 10

Total Operation in Hours of Generator 3 810 2 721 1 905

Operating CostsFuel Hours of operation 3 810 2 721 1 905 Total consumption in litres 6 476 6 803 4 762 CFAF price of gas-oil 680 680 680Total Fuel 4 403 788 4 625 828 3 238 079

Lubricant and Filter Changing oil, filtering oil, air filter 85 CFAF per hour 85 85 85Total Lubricant and Filter 323 808 231 291 161 904

Major Maintenance Replacement of injectors, valve grinding, regulating tippers... 110 CFAF per hour 110 110 110Total Major Maintenance 419 046 299 318 209 523

Personnel Months Manager, Station Officer 150 000 1 800 000 1 800 000 1 800 000 Mechanic 22 500 270 000 270 000 270 000 Payment of standpipe attendants (50 CFAF/m3 sold 3 7000 1 327 025 907 025 453 513Total Wages and Remunertion of Personnel 3 397 025 2 977 025 2 523 513

Misc. Management Costs Months Misc. supplies 10 000 120 000 120 000 120 000Total Other Management Costs 120 000 120 000 120 000

Total Operating and Maintenance Costs 8 663 666 8 253 462 6 253 018

Resources Related to Operation of Facility Water sales Price per m3

Number of m3 sold 18 141 18 141 18 141Income from water sales 500 9 070 250 9 070 250 9 070 250

Projected Operating Balance (excluding depreciation) 406 584 816 788 2 817 232

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areas, payment for water will be necessarily on a per volume basis, per container at the standpipe. The water will be retailed by the standpipe operators responsible for directly collecting the amounts corresponding to the price of the water. 5.9.8 On each site, the price of water will take into account all the operating and maintenance costs of the structures in use, including the staff expenses. This will be regularly updated to take into account changes in the economic environment and costs of inputs. This arrangement mainly concerns the management of the SPWS systems for which management delegation contracts will contain an updating clause to reflect measurable local indices (fuel price, local inflation, worker’s wages, etc.). The level of pricing applied will therefore make it possible to cover the expenses involved through sound management. Sustainability 5.9.9 The water supply arrangement will involve the commune, water users’ associations, private assignees of SPWS management and the communal operator responsible for the repairs of the HP, all bound by contractual ties. Thus, the WSUA will organize the HP water sales, collect and mutualize revenues and pay an annual fee to the commune for each HP to finance preventive maintenance. Thus, the HP repair artisan will undertake periodic technical monitoring tours on behalf of the commune and carry out repairs at the request of the WSUA based on a price list contained in the contract. The private operator in charge of the management of the SPWS will operate the water service and pay into a bank account opened by the commune a fee per m3 pumped to cover maintenance and renewal expenses. He will undertake or have undertaken by a third party the maintenance and repair of the installations. 5.9.10 This arrangement is based on a set of coherent organizational, technical and financial choices that guarantees the sustainability of the structures. These are: i) the legal recognition of WSUAs enabling them to gain access to credit; ii) issuance by the technical services of the ministry responsible for water supply of approvals to private operators and repair artisans guaranteeing their technical capacities in management and structure maintenance respectively; iii) contractualization of relationships between the actors including terms of reference; iv) preventive maintenance of structures at regular intervals; v) definition, for the private operators and repair artisans, of sufficiently wide intervention areas to create a level of activities that would ensure cost-effectiveness and economic viability; vi) integrated management of water services in the communes by the SPWS users’ associatios; vii) generalization of water sale and fixing of the price of water to cover operating costs; viii) replacement at the SPWS of the principle of remuneration of the active staff of the SPWS users associations with the repayment of operating costs; and ix) the high priority given to the training of the staff from the communes, The SPWS users associations, communal repair artisans and SPWS management assignee which has translated into the current implementation of the Reform Implementation Programme (PAR). Monitoring-Evaluation 5.9.11 In order to safeguard the sustainability of the measures implemented under the NDWSSP, a monitoring-evaluation system has been put in place, with the Bank’s financing, as part of the preparatory studies of the programme. This tool, embodied in a monitoring-evaluation manual for all the stakeholders, defines up to the year 2015 a set of quantifiable indicators that can be used to measure the performance of the structures provided. Thus, at the end of each phase of the programme, a performance assessment could be made and the necessary adjustments and corrective measures put in place. The DGRE will be responsible for this exercise.

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5.9.12 Under the present project, spread over a 40-month period starting in September 2007, a mid-term assessment will be conducted at the end of 2008. The following intermediate monitoring indicators could then be defined: Intermediate Monitoring Indicators for the Project Outputs by End 2008 (mid-term) Number of water points and piped water systems created and rehabilitated: 434 Number of adequate sanitation systems provided: 6375 Reduction of rate of breakdowns of SPWS: from 34% (current) to 20% Number of water points subjected to a potable water quality analysis: 434 Number of artisan masons trained: 200 Number of SPWS users’ association put in place: 864 Number of SPWS / AWS operators established and trained: 18 Number of women representatives for awareness on public hygiene: 400 Gender equality in the composition of WSUA (rule adopted by the NDWSSP) Effectiveness Indicators of the Project in terms of Impact on Development by End 2008 (mid-term) Reduction of prevalence rate of water-borne diseases: from 14% (current) to 10% Reduction of infant mortality rate: from 184 per thousand (current) to 166 per thousand

Project Risks 5.9.13 Three major risks have been identified for the achievement of the project objectives: i) weak institutional capacities of deconcentrated structures (DRAHRH) and local administrations (rural communes); ii) failure by beneficiary communities to make the requisite contributions; and lastly iii) the non-extension of the new management method to project structures, as planned in the reform of the management of the rural water supply systems. 5.9.14 Human and technical capacities of regional directorates (DRAHRH) and rural communes are insufficient. To make up for these weaknesses, the project will entail the strengthening of these structures in terms of material, technical and financial resources. Also, a study on the human resources of the DGRE and the DRAHRH, carried out under the IWRMAP, is currently ongoing. The findings will help identify the human resources needed to ensure the smooth operation of these structures. Thus, a technical assistance fund has been set aside under the present project to specifically address the capacity building needs identified by this study (§ 4.1.7). The other actors (NGOs, women’s associations, artisans and masons...) will be provided with training activities to be financed by the project to enhance their capacities to carry out the tasks devolved to them. 5.9.15 Concerning beneficiaries’ contributions, the levels proposed, averaging 2% for potable water structures and 10% for household sanitation, are acceptable in view of the past and ongoing experiences in the sector. Consequently, the communities’ contributions should not fail under the project all the more because, for the household sanitation, all or part of the latter could be provided in kind by the beneficiaries in the form of participation in unskilled works or by providing local materials to be used in constructing the latrines.

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5.9.16 Lastly, regarding the risk related to the management method, it is worth noting that this model constitutes, since November 2000, a fundamental option in the country’s DWS strategy. The application of the Reform Implementation Programme, which serves as a framework for the organization of water service in all the interventions to be undertaken in the rural water sector, constitutes a guarantee of its extension to the project sites. 6. PROJECT IMPACT ANALYSIS 6.1 Economic and Financial Impact Analysis 6.1.1 The aim of the economic and financial analysis of the rural water supply and sanitation project is to determine the overall economic benefits generated by the infrastructure put in place. The financial analysis as usually carried out for projects is restrictive: putting in place of sanitation structures, be they household and/or community, does not generate cash flows (expenses and revenues) to make a financial analysis possible. The latter can only apply to the potable water structures, for which the per volume sale of water generates financial flows. The approach used under the present project therefore consists in assessing the financial viability of a water users’ association (WSUA), based on accounting and financial field data, before making a wider analysis of the economic benefits measuring the impact of the project in the country on the whole. Indeed, for the economic benefits to be realized, it is important to demonstrate that the WSUA can be self-financing without a supplementary financial support from the project once the water installations have been provided. 6.1.2 Financial Analysis and Viability. The financial analysis leads to the conclusion that the watwe supply users’ association are effectively viable. Given a real discount rate of 10%, the net present value (NPV) generated for an WSUA of this type is about CFAF 1.4 billion over the 2008-2022 period. For all the WSUAs be put in place, the financial NPV, based on the same assumptions, is in excess of CFAF 44 billion. This exercise confirms the cost-effectiveness observed for the SPWS UAs. Furthermore, a sensitivity test on an WSUA of this type yields a minimum price guaranteeing the viability of the operation or the equilibrium price: this price is CFAF 60/m3 of water sold, that is a minimum selling price for the 20-litre container at CFAF 1.2. Details of the cash flow of the WSUA is given in Annex 7. 6.1.3 It is worth noting that the minimum price obtained through the simulation is far below the prices noted in the project areas where water is sold on a per volume basis: in the rural areas, the price of the 10-litre bucket is CFAF 5 or CFAF 10 for the 20-litre container, equivalent to CFAF 500/m3. This is accounted for by the fact that the per volume retailing of water in the country is essentially associated with the SPWS systems where the prices charged are supposed to cover the high operating costs (over CFAF 8 million per annum, cf. § 5.9.4). On the other hand, the sale of water involving HPs is often in the form of a fixed contribution, without any accounting relationship with the operating and maintenance costs (less than CFAF 107,000 per year, cf. § 5.9.3). Since the project will be financing a preponderant number of WSUAs using HPs compared to those with SPWS/AWS, the present financial simulation translates this reality through a lesser per m3 production cost of water.

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6.1.4 Economic Analysis. Since the financial analysis is applicable to WSUA, it is necessary to measure the impact of the project through an overall benefit analysis for the country. Indeed, in view of the nature and specific objectives of the project, only an economic analysis can reflect the benefits created by the project and the distribution of the latter among the parties. Given an economic opportunity cost of 12% for the investments, the analysis yields an economic NPV of over CFAF 51 billion, reflecting a significant impact and creation of sizeable benefits for the entire country. 6.1.5 These benefits – or positive externalities, generated by the implementation of the project are many. They include, firstly and above all, savings in time resulting from the supply of potable water and evacuation of excreta, estimated on average at two and a half hours (2:30) per day per household. Specifically, these benefits mirror the opportunity costs resulting from the savings in time by the beneficiaries following the provision of potable water in their localities and the availability of a sanitation system. They also represent, albeit marginally, the avoided costs related to the number of working days used by the parents to attend to their children fall sick. The time saved can be expressed in the hourly wages obtaining in the rural areas of Burkina Faso (CFAF 60/hour). The benefits stemming from the savings in time by the beneficiaries represent 60% of the overall benefits for the period under consideration. 6.1.6 Direct benefits derived from water and sanitation structures are also essential in the distribution of externalities related to the project. These express the value created for the beneficiaries through the new supply and/or improvement in access to potable water (that is, increase in the consumption and reduction of the price of water) and sanitation. These direct benefits from the water and sanitation structures represent 35% of the overall benefits generated by the project over the 2008-2022 period. 6.1.7 Furthermore, the project has a significant impact on the education sector. Savings in costs for the educational system, the communities and the pupils’ parents, consequential to reduced school absenteeism or the decreased cases of repetition represent some of the economic benefits generated by the project. These benefits represent 3% of overall benefits over the period under consideration. 6.1.8 Lastly, the project will have a positive impact on the health sector. Indeed, the reduction of the number of cases of water-borne diseases and their incidence at their impact on the health system (health workers’ time, use of medical facilities, medicines) as well as on the communities (medical expenses, time lost during consultations and examinations, lost working time) create economic benefits, albeit, small in scale, for the entire country. For the health sector, these benefits represent 2% of the overall benefits of the project.

6.2 Sensitivity Test 6.2.1 The sensitivity analysis identifies variables that have a significant impact on the financial and economic benefits generated by the project. The simulation made indicates that the most significant variables for the financial NPV are: (i) daily water consumption per person, hence the quantity of water sold by the WSUAs; (ii) retail price of water; (iii) price of fuel (key input for the operation of the boreholes); and to a lesser extent (iv) cost overruns related to the investments. Similarly, the sensitivity tests indicate that the most significant variables for the economic NPV are: (i) time saved as a result of the provision of water and sanitation structures; and to a lesser extent (ii) a reduction in the repetition rate; and (iii) decrease in water-borne diseases as a result of the project.

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6.2.2 The average financial and economic NPVs as well as their respective probable distributions are determined using a multivariable simulation. This simulation indicates that the financial NPV for all the WSUAs amounts to CFAF 41 billion compared to CFAF 44 billion for the basic assumptions (cf. § 6.1.2). Similarly, the average economic NPV created by the project yields CFAF 52 billion as against CFAF 51 billion for the basic assumptions (cf. § 6.1.4). This low margin between the average NPVs obtained with a multivariable sensitivity test entailing 1000 combinations and the NPVs previously estimated for the basic assumptions indicates that the latter are reasonable. 6.3 Analysis of Social and Health Impact Social Impact 6.3.1 At the level of education, the project will affect some structural constraints that hamper the enrolment of a sizeable population of children aged between 7 and 12. These constraints are related to the labour needed for domestic work and in particular for water supply that prevents girls especially from attending school or doing so in an irregular fashion thus leading to their early dropping out. Indeed for 2006, three intervention regions show low girl gross enrolment rates (GER) (Cascades 55.8%, West-Central 57.4%, South-Central 56.4%) comparable to the national average (55%); the Sahel region that has the least enrolment rate in the country falls far below this average (36.1%). Furthermore, it has been noted that one of the causes of absenteeism or complete dropout after registration relates to daily water collection. In a country where 40% of rural households live at over 1 km from a modern water point, fetching potable water requires time and effort. 6.3.2 The proximity to a water source in the village helps free part of the time pupils, and particularly girls devote to fetching water. It will also provide them with a better physical well-being resulting from the decrease in distances covered to fetch water. Similarly, the improved environment and the living conditions of schools with the provision of permanent access to sanitation structures (383 schools concerned) upholding quality and intimacy standards for all the children constitutes an incentive for an increase in school attendance and the retention of girls, in particular, in the schools. Indeed, a direct correlation has been noted between the quality of sanitation at schools and girl enrolment rates. The project will therefore strengthen the policy initiated in 2007 by the authorities3 in the area of girls’ education that introduced the systematic construction of a water point and separate latrines (girls / boys) in new schools as an incentive. Hence the projects will contribute to achieving the Government’s objective of raising girls’ GER to 65% by 2010. 6.3.3 Moreover, the project will have other positive effects on the socioeconomic conditions of the beneficiary communities. The most significant are: i) reduction in the workload related to fetching water from wells or at remote water points; ii) empowerment of the inhabitants of water points through the creation of water users’ associations (WSUA) directly involved either as water management bodies or as a structure to defend the interests of users against private operators; or iii) building the capacities of local administrations (communes) in planning and managing these WSS projects and infrastructure at the local level.

3 The Directorate for the Promotion of Girls’ Education.

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Health Impact 6.3.4 At the level of health and public hygiene, the consumption of clean water reduces the financial costs induced by water-borne diseases and dehydration. In the project intervention areas, the health situation is precarious in this regard. For the year 2005, among the diseases identified, malaria, intestinal parasitic diseases and diarrhoeal diseases rank 1st, 3rd and 4th respectively as the motives of consultation in the health facilities in the rural areas. The prevalence rate of malaria is 18% among the rural population in the Cascades region, 14% in that of the West-Central, 21% in the South-Central and 7% in the Sahel. The prevalence rate of intestinal parasitic diseases is 7% in the Cascades, 5% in the West-Central, 8% in the South-Central and 5% in the Sahel. Although bilharzia only affects a small portion of the rural population, it still rages in these regions. Overall, these diseases concern a rural population of about 580,000 inhabitants, equivalent to 20% of the total rural population of the regions concerned. 6.3.5 The household living conditions account for this high prevalence. Thus, the NDWSSP indicates the widespread lack of protective facilities for boreholes or hand-dug wells, a virtually 0 coverage rate for individual sanitation, a high level of pollution of public spaces in the villages with waste water from latrines and households, the virtual non-existence of septic tanks emptying activity, the limited use of soap and water in rural households and a low level of information on sanitation in households. 6.3.6 A significant increase in access to drinking water and adequate sanitation backed by a sustained health education campaign will contribute to reducing the prevalence rates observed through: i) the effect of more hygienic water supply conditions; ii) the improvement of domestic hygiene and the cleanliness of community facilities; iii) reduction of the pollution in streets, public places and the water table as a result of the good quality of the latrines and public lavatories; iv) the training in the use and maintenance of latrines in households, public places and schools; v) the acquisition of the habit of washing hands with soap and water after nature’s call and domestic tasks; and vi) healthier food for children below 5 years affected by the high mortality due to diarrhoeal diseases. 6.3.7 The impact of the decline in water-borne diseases on health expenditures will be significant in terms of monetary savings for the households and therefore a vector of changes in the living conditions of the communities targeted by the poverty reduction strategy. Indeed, the total average expenditure per sick person for the treatment of water-borne disease in the basic health facilities amounts to CFAF 2,250. Assuming that the provision of potable water and sanitation facilities under the present project will help halve the prevalence rate of water-borne diseases, the annual savings to be made will amount to CFAF 650 million in the four regions concerned. 6.4 Analysis of Impact on Poverty 6.4.1 Data from the Poverty Reduction Strategy Paper (PRSP 2004) show that poverty in Burkina Faso is essentially a rural phenomenon. Indeed, the share of the rural areas in the incidence of general poverty was 92.2% in 2003. The regional distribution of poverty indicates that the South-Central region, with an incidence of 66.1% clearly above the national average for poor people (46.4%), is the second region in the country most affected by poverty. Although the incidence of poverty in other regions is below the national average

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(Sahel 37.2%, Cascades 39.1%, West-Central 41.3%), they are still fall short of the Government’s objective, which is to reduce the incidence of poverty to less than 35% by 2015 (MDG). The incidence has even increased by 4.3 percentage points in the Cascades and 7.7 points in the South-Central region between 1998 and 2003. The continued reduction of this high prevalence of poverty has been guiding the Government’s economic and social policy for several years. Through this approach, which is also that of the Bank through the Initiative, the creation of new water points as well as the construction of family latrines will contribute, through the monetary effects induced, to reducing the level of poverty of the target population and thereby help achieve the MDGs. 6.4.2 The most significant specific impacts of the project will be: i) increase in the overall turnover of the sector, and thereby of creation of supplementary employment in the area of civil engineering and water resources. Furthermore, the annual planning of works will provide a better visibility of the works market to contractors and foster stable employment; ii) the gradual establishment of communal HP repair operators, together with the increase in the pool of HPs, will stabilize and subsequently strengthen the activities and incomes of repair artisans by providing them better working and pay conditions; iii) the progressive establishment of delegated management operators for the SPWS will generate new types of employment (maintenance workers, standpipe operators, temporary workers for the extension and connection works, ...); iv) the benefits drawn from the sale of water, if adequately managed by the WSUAs and the communes in the decentralized financing structures, could be effectively invested in the financing of economic micro-projects for the benefit of the local communities; v) the proximity of water points will enable the users and particularly women and women’s groupings to devote the time saved from fetching water to creating or revitalizing wealth-creating activities. Indeed, in all the targeted regions, a large number of rural women are engaged, either individually or in groupings, in market gardening around small dams and permanent water points, trading and handicrafts; but they are also engaged in other activities, depending on regions, such as poultry farming and pig raising (significant in the West-Central), fruit-tree cultivation (Cascades), logging (South-Central) and processing of agricultural produce (millet beer in the West-Central) or gathering (Arabic gum in the Sahel, cow peas and shea butter in the West-Central). The development of these activities will contribute to reducing poverty among women.

6.5 Analysis of Impact on Women 6.5.1 The implementation of the project will have positive impacts on various aspects of the living conditions of women and of young girls. Firstly, access to appropriate sanitation service in homes and schools will no longer constrain women to having to wait for nightfall and to leave their homes to attend to nature’s call. Access to this convenience, involving privacy, ease of use, proximity and security, primarily constitutes a factor of personal and social well-being in daily life. It also results in time saving (this has been assessed in the economic analysis of the project to be 30 minutes per day and per household). Access to water and sanitation will encourage an increased number of women to attend literacy and training courses. Indeed, although the literacy education of rural women has been on the increase in recent years, it is still impeded by the inability of many of them to pursue this training in view of the burden of domestic tasks they have to undertake, notably water fetching. Lastly, it will enable the training, under the IEC component of the programme, of 400 women intermediaries es in charge of hygiene education targeting women, since they are generally in charge of domestic tasks involving hygiene and education of children. The trained human resource represented by these women constitutes in itself a potential vector for the propagation of new positive health behaviours in the intervention areas.

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6.5.2 Furthermore, the project will provide the opportunity for advocacy with the authorities aimed at widening the gender approach in the sector. At the institutional level, it will be worth embodying in the NDWSSP unified framework for action a gender approach to be used by all the actors operating in the sector together with a definition of objectives, monitoring-evaluation indicators and the analysis of impacts of the changes obtained. At the operational level, and under the present project, it will be worth including in the follow-up activities of the national and regional implementation structures (DGRE and DRAHRH) the production of disaggregated data in the following areas: composition by gender of the officers of WSUA, broken down by gender of the operational management staff (treasury, hygienist, standpipe operator, ...) in the SPWS systems managed by the private operators, the number of persons and groupings by gender that have started or resumed income-generating activities as a result of the availability of water (basket gardening, fruit-tree cultivation, ...), distribution by gender of trained school teachers as vectors of hygiene awareness. Lastly, on the basis of the results obtained, it will be worth fixing the gender objectives to be achieved by the end of the project including the relevant indicators in the project monitoring-evaluation system. 6.5.3 This advocacy with the authorities in charge of the DWSS sector in Burkina Faso will be supported by awareness activities in the WSUA, women’s groupings, school authorities as well as the SPWS management operators in order to persuade them to give preference to women in the operational aspects of water management (treasury, hygienist, standpipe operator). Indeed, the field surveys indicate that the representativeness of women at WSUA, for example, was over 40% in the case of the PIHVES project precisely as a result of the willingness of the project managers to ensure gender parity in the management of the systems. These surveys also indicate that women occupy half of the posts of hygienist and 30% of those of treasury. The present project follows this approach and has defined as an eligibility criterion for a project site the equal assignment of standpipe operators jobs to women to ensure their promotion in employment related to water management (§ 5.3.2). 6.5.4 The current representativeness of women in the management of water shows that their participation enjoys significant advantages in the country that can foster their development. These include: i) multiple initiatives aimed at achieving gender equality or positive discrimination in favour of women, carried out by managers of water or sanitation projects, communes, public services involved in the sector or NGOs; and ii) in the area of literacy and training, a sharp rise in the attendance rate by women in literacy and training centres, where they outnumber men (55% of the enrolment between 2000 and 2006). This result was obtained thanks to an enhanced targeting of women and the development of training modules on income-generating activities, sources of financing, water management and hygiene. In order to federate these initiatives in the area of water supply, there will be the need to formulate a coordination tool such as a national women’s promotion document in the domain of DWSS. Such a tool could serve as a reference document in the sector and help curb the latitude given to project and programme initiators to decide to take into account or otherwise specific aspects relating to women in the planning and implementation of operations. 6.6 Analysis of Environmental Impacts At the environmental level, the project has been classified under category II. It provides numerous environmental benefits and its negative impacts can be easily controlled with the implementation of appropriate mitigation measures. The environmental assessment

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indicates that the environmental impacts of the project will be mainly positive for the beneficiary communities. Indeed, the availability and proximity of water, as well as the existence of individual and community sanitation facilities, will foster: i) improved hygiene and environmental cleanliness in households; ii) greater involvement of women and children in the improvement of hygiene and the enhancement of inhabited and neighbouring village spaces (cleaning and maintenance, creation of nurseries, plantations of windbreakers, development of school premises, etc.). The installation of water and sanitation structures will create adequate conditions for achieving this: it will free part of the time devoted to the search for water, foster a physical well-being by reducing water fetching chores, facilitate the training of women and education of pupils on hygiene, and make free (in view of the reduction of the cost of water and health expenses) money supply that could be used to purchase environmental and sanitation maintenance products. Thus, the project has an overall positive impact on the environment and the living conditions of the beneficiaries. A summary of the ESMP is given in Annex 6. 7. Conclusion and Recommendations 7.1 Conclusion 7.1.1 The present project is based on the Bank’s strategy for Burkina Faso as defined in the Results-Based Country Strategy Paper (RBCSP) covering the 2005-2009 period that places the water and sanitation sector in the centre of the priorities. It constitutes the first large-scale action in the implementation of the NDWSSP. More broadly, the present project aims at reducing poverty and promoting sustainable economic development, in accordance with the Bank’s 2003-2007 strategic plan and the Government’s PRSP. It draws on the integrated water resource management initiative (IWRMI) and underscores environmental protection and the integration of women in the development and poverty reduction process. 7.1.2 The project is technically feasible, financially and economically viable, socially justified and in line with the Bank’s rural WSS Initiative and the Government’s development priorities in the water and sanitation sector within a decentralized management framework. The mitigative measures of the impacts on the environment of the project, classified as category II, have been taken into account. Its implementation will help lay the groundwork for the success of the NDWSSP and serve as a reference to the Government and the Bank and all the donors for the implementation of subsequent phases of the programme. It will also strengthen the institutional capacities of national and regional structures involved in the decentralization efforts initiated by the Government. 7.2 Recommendations and Conditions 7.2.1 It is recommended that an ADF loan and a grant from the Initiative Trust Fund not exceeding UA 20 million and UA 10 million respectively be awarded to Burkina Faso to implement the present project subject to the fulfilment of the following conditions: A. Conditions Precedent to the Effectiveness of Loan and Grant 7.2.2 The effectiveness of the loan agreement will be subject to the fulfilment by the Borrower of conditions outlined in Section 5.0.1 of the General Conditions. The grant agreement will enter into force upon signature.

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B. Conditions Precedent to the First Disbursement of Loan and Grant 7.2.3 The ADF shall effect the first disbursement of the loan and grant resources subject to the Borrower, apart from the entry into force of the Loan Agreement and of the Memorandum of Understanding of the Grant, fulfilling to the satisfaction of the ADF the following commitments and conditions: Conditions Precedent to the First Disbursement

i) Provide evidence to the ADF of the opening by the DGRE of two special

accounts at the BCEAO to receive the loan and grant resources for the financing of the project activities;

ii) Provide evidence to the ADF of the appointment to the DGRE of an

accounting, administration and finance manager and a procurement specialist (§ 5.1.4).

Other Conditions

i) Submit to the ADF, at the latest by the end of the 1st quarter following the previous financial year, the implementation indicators monitoring report of the present project (§ 5.1.2).

ANNEX 1

MAP OF PROJECT AREA

This map was prepared by the African Development Bank Group exclusively for the use of readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank or its members, any judgement concerning the legal status of a territory nor any approval or acceptance of the borders

ANNEX 2

LIST OF BANK GROUP ONGOING OPERATIONS IN BURKINA FASO

June 2007

ANNEX 3

SCHEMA INSTITUTIONNEL DE MISE EN ŒUVRE DU NDWSSP ET DU PROJET

ANNEX 4

ANNEX 5 (1/3) BURKINA FASO

RURAL DRINKING WATER SUPPLY AND SANITATION PROJECT IN THE CASCADES, WEST CENTRAL, SOUTH CENTRAL AND SAHEL REGIONS Detailed Project Costs by Component – Component A – Infrustructure Development

ANNEX 5 (2/3) Detailed Project Costs by Component – Component B – Institutional Support

ANNEX 5 (3/3) Detailed Project Costs by Component : Component C – Project Coordination and Management

ANNEX 6 Page 1/4

SUMMARY OF ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN

RURAL WATER SUPPLY AND SANITATION PROJECT IN THE CASCADES, WEST-CENTRAL, SOUTH-CENTRAL AND SAHEL REGIONS

1. Brief Project Description 1.1 The presnet project is a key component of the 1st phase of the National Water Supply and Sanitation Programme 2015 (NDWSSP). It aims to contribute to achieving the MDG targets in the water and sanitation sector. The project consists of three components namely, the development of basic DWSS infrastructure, institutional support to structures involved in the project and support for the coordination and management of the project. Consequently, the project will entail the implementation of the following: i) construction of new DWS infrastructure and rehabilitation of existing ones; ii) provision of family sanitation systems (latrines) as well as community sanitation structures in schools, village health centres and markets; iii) control and supervision of construction works and conducting of IEC campaigns, as well as training, awareness and outreach activities for the beneficiary communities; and iv) building the capacities of national and regional structures in the water sector. 1.2 The expected outputs are as follows: (i) 20,100 new family latrines; (ii) 1,150 new multi-compartment community latrines constructed in public village amenities (mainly markets, schools and health centres) ; (iii) 7000 new domestic drain wells; (iv) 200 masons trained in the construction of latrines and 200 teachers in hygiene; (v) 400 female hygiene awareness intermediaries in the villages; (vi) 1,345 new modern water points (MWP) equipped with human operated pumps (HP); (vii) 16 new simplified pipe borne water systems (SPWS) ; (viii) ) 50 rehabilitated boreholes equipped with HP, 5 rehabilitated SPWS and 10 rehabilitated autonomous water points (AWPs); (ix) 1,080 water users associations (WSUA) established, operational and trained in the management and maintenance of MWPs; (x) 31 SPWS trained and; (xi) training, outreach and awareness campaigns carried out in the relevant villages of the project regions. 1.3 The project has been classified under the environmental and social category II, in accordance with the Bank’s environmental protection procedures. In view of their nature as described above, the DWS and sanitation works that will be undertaken in the rural areas will not have any significant and uncontrollable impact. The works will not affect any major or protected ecosystem, known archeological or religious site. Inconveniences created for the people will be largely insignificant in view of the socioeconomic and public hygiene benefits (decreased prevalence of water-borne diseases) to be derived from the operation of the networks and sanitation). These positive and negative impacts and the relevant mitigative measures are described in the sections below.

2. Major environmental and social impacts 2.1 Positive impact : This category of impact is mainly socioeconomic and concerns: i) improved acces to potable water, ii) reduced water borne diseases and, consequently, reduced health care expenditures, iii) creation of employment during works and operating phase, iv) autonomy of women who will invest in income-generating activities as a result of time saved

ANNEX 6 Page 2/4

from reduced domestic chores, v) improved living conditions in schools, marketplaces and other pubic places, vi) improved decision making as a result of the availability of data, vii) ownership of the operation, maintenance and servicing of DWSS structures by the beneficiaries to ensure their sustainability. 2.2 Negative impacts: The few potential negative impacts resulting ffrom the implementaton of the project will occur during both the construction of DWS and sanitation structures and the operation phase. The execution of the various works will entail the following risks : i) spread of diseases (STIs/AIDS) during the establishment of living quarters in the locatlities due to the inter-mingling of people, ii) the loss of farm lands and plant resources under the DWSS component with a total estimated occupancy area of 42.5 ha, iii) outbreak of land conflicts related to infrastruture development, iv) dust emission and vaious forms of soil and water pollution by non-biodegradable wastes (filters, batteries, rubble…). During the operational phase of the DWS structures, problems of hygiene around the structures, in the conveyance of and conservation of water in the concession areas will arise. Furthermore, the consumption of water from the structures containing chemical substances (nitrates and arsenic) especially in the Sahel region could constitute a serious public health problem. 3. Improvement and mitigation programme 3.1 Impact improvement measures will partly relate to improved incomes of the beneficiaries stemming from the implementation of income-generating activities (IGA) for women and partly to the promotion of environment-friendly behaviours in the works enterprises. Specifically, emphasis will be laid on: i) diversification and intensification of market gardening near MWPs with high flow rates, ii) formulation of an environment insurance scheme for the entreprises, iii) formulation of a code of conduct for the observance of environmental guidelines by the contractors’ workers, iv) conducting of regular environmental supervision missions to ensure the effective implementation of mitigative measures. 3.2 The mitigative measures relate to both the biophysical and human environments. For the former, the measures will entail: i) control of dust emission and polllution caused by machinery and equipment particularly in the SPWS, ii) control of soil pollution by concrete mixers, iii) maintenance and refuelling of vehicles and machinery on the work sites, iv) collection and evacuation of non-biodegradable wastes (filters, batteries, rubble etc.) and burying of biodegradable wastes and incineration of work site wastes, v) reduction of the storage or spraying of toxic wastes within a radius of 200 m, vi) banning of the dumping or excavation at less than 15 m from a watercourse. 3.3 For the biological environment, the following measures are envisaged: i) raising the awareness of communities, contractors’ workers and local authorities on the problems, ii) use of felled trees as fuel wood by the local inhabitants, and in general, the passing on to the latter of uprooted trees for use, iii) replacement of felled trees, iv) involvement of communities in the formulation and applicatoin of the emvironmental management of the Project. 3.4 At the human level, the measures envisaged concern i) safety to prevent and avoid accidents among children and infants during the construction works, ii) awareness of beneficiairy communities on STIs/AIDS and on other themes such as environmental protection (planting of trees), anti-poaching measures and uncotrolled bush fires by the site

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workers, iii) putting in place of a network of measures and control of the quality of water as a permanent mechanism outside the controls conducted during acceptance of structures, iv) compensations to victims of destroyed goods (farms and plant resources). 4. Monitoring programme and suppplementary initiatives 4.1 The environmental monitoring programme is aimed at ensuring that the mitigation and improvement measures as described in the detailed environmental and social plan produce the desired results and that they are changed, suspened or replaced if they prove to be inadequate. Moreover, it assesses the conformity with national environmental and social standards as well as the environmental protection policies of the ADB and the Government. Implementation of the programme will be the primary responsibility of the DGRE with the support of its technical directorates through the environmental monitoring unit to be created at the DGRE. The operation of the monitoring unit will also require the mobilization of deconcentrated services at regional level through the DRAHRH and monitoring committes to be established in each intervention region. 4.2 Supplementary measures to be implemented comprise : i) the creation at the Project of contact points for the communities to provide a link between the communities and the works contractors, ii) priority to the recruitment of local inhabitants in the various work sites of the Project, iii) building of the capacities of hospitals and health centres operating in the four regions in the area of STDs and HIV. 5. Institutional arrangements and capacity building 5.1 From the institutional perspective, at the central level, responsibility for environmental monitoring will chiefly be the responsibility of the DGRE as the delegated project owner. At the operational level, the multi-discipliary environmental monitoring unit will be set at the DGRE with responsibilites for the collection and build up of data and information on the implementation of the ESMP. It will be assisted by consulting firms recruited for the control mission. Other intervening organizations such as the Directorate of Environmental Evaluations of the Ministry in charge of the environment will, inter alia, be responsible for the collection, accumulation of data and information on the implementation of the ESMP. It will be assisted by the consulting firms commissioned for works control. Other entities such as the Directorate for Environmental Evaluations of the Ministry in charge of environment will cater for the overall supervision of the implementation of the ESMP. The results should also be discussed and shared at the National Steering Committee of the Project for validation. 5.2 At the regional level, the supervision and monitoring arrangement defined at the central level will depend on the the Regional Directorate (DRAHRH) and other technical deconcentrated services. At the operational level, a monitoring committee will be created in each intervention region. Apart from the technical services in charge of water resources, the stakeholders at the committe level could come from technical services in the health, education, environmental, housing and economic sectors. 5.3 Capacity building activities to be carried out include training for the various actors to ensure the ownership of the content of the ESMP. They also concern support missions at regional level as part of the implementation of the environmental monitoring programme.

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6. Public consultation and information dissemination requirements 6.1 At the start of the project, the final version of the ESMP and its annual work plan will be presented to the National Steering Committee for consideration and approval. A review meeting with the Directorate Generate of Water Resources (DGRE) (including its technical directorates) as a national coordination and management structure for the project. The content of the ESMP will also be disseminated at the regional level through regional workshops on the awareness and ownership by the local actors. This will ensure greater empowerment in the implementation of eventual actions. also, special emphasis will be laid on the dissminiation of successful and innovative experiences at the environmental level with respect to water and sanitation among local actors through broad-spectrum local channels (local radios, posters, communiqués during market days, drama performances, fora, etc.). 7. Estimated costs 7.1 The cost of implementation of the ESMP measures are estimated at CFAF 400 000 000 broken down as follows: i) environmental studies for the feasibility studies on the structures: CFAF 30 000 000, ii) Measures on the biophysical environment: CFAF 20 925 000, iii) health programme: CFAF 15 000 000 iv) improvement of the conditions of women and poverty reduction: CFAF 13 875 000, v) ESMP monitoring programme: CFAF 40 600 000, vi) monitoring of the quality of water: CFAF 279 600 000. 8. Implementation schedule and reporting 8.1 The implementation of the environmental and social measures which will be pursued throughout the project cycle, will take into account the activities for the the measures proposed (improvement and mitigation), monitoring programme, consultations, supplementary intitiatives and institutional arrangements. This schedule has been set out in phases in conjunction with the overall implementation of the project plan. Under the monitoring activities, the environmental monitoring unit, regional monitoring committees and control missions will issue quarterly status reports on the ESMP..

ANNEX 7 (1/2)

CASH FLOW STATEMENTS OF AN WSUA

Assumptions used to calculate the financial viability of the project 1. The financial analysis was conducted over a 15-year period (2008-2022), representing the average life span of the water supply facilities of all kinds; 2. A simplified pipe-water supply system (SPWS) with a production of 5 m3/h is used as a unit of analysis. This is a water supply system designed for small towns of at least 3,500 inhabitants and considered to be the standard minimum to be applied in accordance with the standards, criteria and indicators defined in the NDWSSP ; 3. Daily consumption per person is fixed at 20 litres ; 4. The water produced is sold at an average price of CFAF 500 /m3, equivalent to CFAF 5 per 10-litre bucket or CFAF 10 per 20-litre drum; 5. Thermal pumping equipment (pumps and motors), estimated at CFAF 5 million must be replaced every 5 years; 6. Hand pumps estimated at CFAF 1.20 million must be replaced every 5 years; 7. The network, including the superstructures (water tower, supply points), has a life span of 25 years; 8. The borehole has a life span of 20 years; 9. Depreciation for these facilities will be on a linear basis. At the end of the period of analysis, the residual value of the structures will be equivalent to the non-amortized value, at the end of the depreciation period; 10. The 2% contribution of the WSUA to the financing of the infrastructure will be financed by the Burkina Faso authorities; and 11. The operating costs include the running costs of the pumping equipment (gas-oil, lubricants and other consumable), major maintenance of the pumping equipment, staff expenses (wages) and the various management expenses of the WSUA.

ANNEX 7 (2/2)