Nigeria - Rural Water Suply and Sanitation Program - Appraisal Report

AFRICAN DEVELOPMENT FUND Language: English

Original: English

NIGERIA

RURAL WATER SUPPLY AND SANITATION SUB-PROGRAMMES IN YOBE AND OSUN STATES

APPRAISAL REPORT

Water and Sanitation Department (OWAS) May 2007

TABLE OF CONTENTS

SUB-PROGRAMMES INFORMATION SHEET, CURRENCY AND MEASURES, COMPARATRIVE SOCIO ECONOMIC INDICATORS, LOGICAL FRAMEWORK, EXECUTIVE SUMMARY

1 ORIGIN AND HISTORY 1 2 THE WATER SUPPLY AND SANITATION SECTOR 2

2.1 Water Supply and Sanitation Situation 2 2.2 Policy, Strategy and Legal Framework 4 2.3 Sector Organization and Institutional Framework 5 2.4 Constraints and Opportunities 7 2.5 Donor Interventions and Lessons learnt 9

3 THE RURAL WATER SUPPLY AND SANITATION SUB-SECTOR 11

3.1 The National RWSS Programme 11 3.2 Bank Group Strategy 14

4 SUB-PROGRAMMES IN YOBE AND OSUN STATES 15

4.1 Concept and Rationale 15 4.2 Area and Target Beneficiaries 16 4.3 Strategic Context 17 4.4 Objective 17 4.5 Description and Components 18 4.6 Impact on Environmental and Social Issues 21 4.7 Cost Estimates 23 4.8 Sources of Financing and Expenditure Schedules 24 4.9 Performance Indicators 26

5 SUB-PROGRAMMES IMPLEMENTATION 27

5.1 Executing Agencies 27 5.2 Implementation Arrangements 27 5.3 Supervision and Implementation Schedule 29 5.4 Procurement Arrangements 30 5.5 Disbursement Arrangements 33 5.6 Monitoring and Evaluation 34 5.7 Financial Reporting and Auditing 35 5.8 Partnership and Aid-Coordination 35 5.9 Sustainability, Risks and Mitigating Measures 36

6 IMPACT EVALUATION 37

6.1 Economic Impact 37 6.2 Sensitivity Analysis 38 6.3 Social Impact 38 6.4 Poverty Impact 39 6.5 Gender Impact 40

7 CONCLUSIONS AND RECOMMENDATIONS 41

7.1 Conclusions 41 7.2 Recommendations and Conditions for Loan Approval 41

List of Tables

Table 2.1 Gender Disaggregated Data in Yobe and Osun States Table 3.1 Cost Estimates of the National RWSS Programme in NGN million Table 3.2 Available Financing for Phase I Programme (2006-2010) Table 4.1 Financing of Yobe and Osun States Sub-Programmes in UA million Table 4.2 Summary of Cost Estimates by Component Table 4.3 Summary of Cost Estimates by Category of Expenditure in UA million Table 4.4 Sources of Financing Table 4.5 Sources of Financing by Components in UA million Table 4.6 Sources of Financing by Category of Expenditure in UA million Table 4.7 Expenditure Schedule by Source of Financing in UA million Table 4.8 Expenditure Schedule by Component in UA million Table 4.9 Expenditure Schedule by Category of Expenditure in UA million Table 5.1 Procurement Arrangements (UA million) Table 6.1 Sensitivity Analysis

List of Annexes Annex 1 Map of the Federal Republic of Nigeria Annex 2 Existing Water Supply and Sanitation Coverage by State (2006) Annex 3 The RWSS Situation in the Yobe and Osun States Annex 4 RWSS Sector Structures Annex 5 Summary of Bank Group On-Going Operations Annex 6 Summary of State Investment Sub-Programmes in NGN Annex 7 Technology Choices for Rural Water Supply and Sanitation Schemes Annex 8 Environmental and Social Management Plan Summary Annex 9 Detailed Cost estimates Annex 10 Provisional List of Goods, Works and Services (in UA) Annex 11 Expenditure Schedule by Component (in UA) Annex 12 Expenditure Schedule by Category of Expenditure (in UA) Annex 13 Implementation Arrangement Annex 14 Implementation Schedule Annex 15 Economic Analysis This report was prepared by Messrs. S. Wassel, Ag. Manager, OWAS.1 Division (Ext 2699), Mr. R. Sherman, Senior Procurement Officer (Ext 2307), Ms Aimee Bella, Senior Environmentalist (Ext 2649), and three consultants of Water and Sanitation Engineer, Financial Analyst and Socio-Economist following their mission to Nigeria in March/April 2007. Enquiries should be addressed to Mr. S. Wassel or Mr. K. Bedoumra, Director OWAS (Ext.2055).

i

AFRICAN DEVELOPMENT FUND

HEADQUARTERS TEMPORARY RELOCATION AGENCY 01 BP 1387, ABIDJAN BP 323-1002 Tunis Belvédère Côte d’Ivoire Tunisia Tel: (225) 20 20 44 44 / 20 20 48 48 Tel: (216) 71 33 35 11 Fax (225) 20 22 70 04 Fax: (216) 71 35 19 35

SUB-PROGRAMMES INFORMATION SHEET 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 sub-programmes approved by the Boards of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Borrower. 1. COUNTRY : Federal Republic of Nigeria 2. NAME : Rural Water Supply and Sanitation Sub-

Programmes in Yobe and Osun States 3. LOCATION : Yobe and Osun States 4. BORROWER : Federal Republic of Nigeria 5. EXECUTING AGENCIES : Rural Water Supply and Sanitation Agency

(RWASSA) is the executing Agency in Yobe State Ahmadu Bello Way, P.M.B. 1108 Damaturu Tel: +234 74-522210, Fax: +234 74-522210 Email: [email protected] / [email protected]

Osun Rural Water Supply and Environmental Sanitation Agency (RWESA) is the executing agency in Osun State Osun State Secretariat Complex, Oshogbo P.M.B. 4466, OSOGOB, Osun State Tel +234 80 3474 5942, +234 8034745946 Email: [email protected]

Federal Ministry of Agricultural and Water Resources (FMAWR) is the Programme Coordinator Old Secretariat, Block “A” Area 1, P.M.B. 159, Garki, Abuja, Nigeria Tel: +234 9 2342205 Fax: +234 9 2342895 E-mail: [email protected], [email protected]

6. DESCRIPTION : The components are: (i) Infrastructure Provision, (ii) Capacity Building, and (iii) Management Support.

ii

7. TOTAL COST : UA 69.22 million Foreign Cost : UA 33.13 million Local Cost : UA 36.09 million

8. BANK GROUP FINANCING

ADF Loan : UA 51.00 million

9. OTHER SOURCES OF FINANCE : Local Contributions UA 10.50 million EC (EUR 3.67 million) UA 3.24 million JICA (JPY 750 million) UA 4.22 million UNICEF (USD 0.4 million) UA 0.26 million

10. DATE OF LOAN APPROVAL : September 2007 11. ESTIMATED START DATE AND

DURATION : November 2007, 5 Years

12. PROCUREMENT OF GOODS AND

WORKS : Procurement of goods and works will be in

accordance with the Bank's Rules of Procedure for Procurement of Goods and Works or, as appropriate using the relevant Bank’s Standard Bidding Documents. Because the sub-programmes are community based and demand driven, procurement of goods and works shall also utilize the Bank’s Guidelines for Procurement Under Community-Based Investment Projects (CBIP). The procurement mode shall be a combination of International Competitive Bidding (ICB), National Competitive Bidding (NCB) and in accordance with CBIP, Local Competitive Bidding (LCB).

13. CONSULTANCY SERVICES : Procurement of services will be in accordance

with the Bank's Rules of Procedure for the Use of Consultants as appropriate, using the relevant Bank Standard Bidding. Services will be required for conducting studies, training and auditing exercises. Services will also include various community mobilization activities and the Bank’s Guidelines for Procurement Under Community-Based Investment Projects (CBIP) shall therefore be utilized in applicable cases. Firms will be recruited through competition on the basis of shortlists using the selection procedure combining technical quality with price consideration; whereas individual, institutions and agencies would be recruited in accordance with the specified Bank’s procedures.

iii

CURRENCY EQUIVALENTS

(As of April 2007) National Currency = NGN 1.0 USD = 128.00 NGN 1.0 UA = 1.51019 USD 1.0 UA = 191.482 NGN 1.0 UA = 1.13394 EUR 1.0 UA = 0.771248 GBP 1.0 UA = 177.674 JPY

MEASURES

m3/d = Cubic Meters per Day Km = Kilometer l/c/d = Liters per Capita per Day l/s = Liters per Second M = Meter m3 = Cubic Meter Mm = Millimeter Mm3 = Million Cubic Meter

Financial Year

January 1 to December 31

ACRONYMS AND ABBREVIATIONS

ADB African Development Bank ADF African Development Fund AWF African Water Facility BOQ Bill of Quantities CAP Community Action Plan CBO Community Based Organization CDO Community Development Officer CPRP Community-Based Poverty Reduction Project CSO Civil Society Organizations DFID Department for International Development DRA Demand-responsive Approach EIA Environmental Impact Assessment ESA External Support Agency EU European Union FGN Federal Government of Nigeria FME Federal Ministry of Environment FMAWR Federal Ministry of Agriculture and Water Resources GIS Geographical Information System GPS Global Positioning System HRD Human Resources Development HSDP Health Systems Development Project (IV) IEC Information, Education, Communication IWRM Integrated Water Resources Management IPSSP Independent Private Sector Service Provider JICA Japan International Co-operation Agency LEEDS Local Government Economic Empowerment and Development Strategy LGA Local Government Authority M&E Monitoring and Evaluation

iv

MDG Millennium Development Goals MIS Management Information System NAP National Action Plan NEEDS National Economic Empowerment and Development Strategy NFDP National Fadama Development Project NGOs Non-Governmental Organizations NPFSP National Programme for Food Security in Ekiti, Ondo and Cross River States. NWRI National Water Resources Institute O&M Operation and Maintenance PCR Project Completion Report PIU Project Implementation Unit PIM Project Implementation Manual RAMP Rural Access Mobility Project R&D Research and Development RWESA Rural Water and Environmental Sanitation Agency RWSSA Rural Water and Sanitation Agency SEEDS State Economic Empowerment and Development Strategy Sanplat Household Latrine with Sanitary Concrete Slab SAP State Action Plan ESIA Environmental and Social Impact Assessment SEEDS State Economic Empowerment and Development Strategy SIA Strategic Impact Assessment SOE Statement of Expenditure SWA Sector Wide Approach UA Unit of Account UNICEF United Nations Children’s Fund USD United States Dollar VLOM Village Level Operation and Maintenance WASCOM Water and Sanitation Committee WASH Water Sanitation and Hygiene WES Water and Environmental Sanitation WESCOM Water and Environmental Sanitation Committee WSP Water Service Providers WSSSRP Water and Sanitation Sector Reform Program WSS Water Supply and Sanitation

v

Year Nigeria AfricaDevelo-

ping Countrie

Develo- ped

CountrieBasic Indicators

AFR Area ( '000 Km²) 924 30 307 80 976 54 658Total Population (millions) 2005 131.5 904.8 5 253.5 1 211.3Urban Population (% of Total) 2005 47.8 38.9 43.1 78.0Population Density (per Km²) 2005 142.4 29.9 60.6 22.9GNI per Capita (US $) 2004 390 811 1 154 26 214Labor Force Participation - Total (%) 2003 40.0 43.4 45.6 54.6Labor Force Participation - Female (%) 2003 35.9 41.1 39.7 44.9Gender -Related Dev elopment Index Value 2003 0.439 0.460 0.694 0.911Human Dev elop. Index (Rank among 174 countries 2003 158 n.a. n.a. n.a.Popul. Liv ing Below $ 1 a Day (% of Population)* 2000 65.6 45.0 32.0 20.0

Demographic IndicatorsPopulation Grow th Rate - Total (%) 2005 2.2 2.1 1.4 0.3Population Grow th Rate - Urban (%) 2005 4.1 3.4 2.6 0.5Population < 15 y ears (%) 2005 44.3 41.5 32.4 18.0Population >= 65 y ears (%) 2005 3.0 3.4 5.5 15.3Dependency Ratio (%) 2005 89.7 81.4 57.8 47.8Sex Ratio (per 100 female) 2005 102.4 99.8 102.7 94.2Female Population 15-49 y ears (% of total populatio 2005 25.2 26.7 27.1 25.0Life Ex pectancy at Birth - Total (y ears) 2005 43.8 51.2 64.1 76.0Life Ex pectancy at Birth - Female (y ears) 2005 44.0 52.0 65.9 79.7Crude Birth Rate (per 1,000) 2005 40.5 36.8 22.8 11.0Crude Death Rate (per 1,000) 2005 18.8 15.0 8.7 10.4Infant Mortality Rate (per 1,000) 2005 110.6 83.6 59.4 7.5Child Mortality Rate (per 1,000) 2005 193.6 139.6 89.3 9.4Total Fertility Rate (per w oman) 2005 5.5 4.8 2.8 1.6Maternal Mortality Rate (per 100,000) 2000 800 622.9 440 13Women Using Contraception (%) 2003 13.0 26.6 59.0 74.0

Health & Nutrition IndicatorsPhy sicians (per 100,000 people) 2000 26.3 38.2 78.0 287.0Nurses (per 100,000 people) 2000 63.0 110.7 98.0 782.0Births attended by Trained Health Personnel (%) 2001 35.0 43.7 56.0 99.0Access to Safe Water (% of Population) 2002 60.0 64.5 78.0 100.0Access to Health Serv ices (% of Population)* 2000 67.0 61.7 80.0 100.0Access to Sanitation (% of Population) 2002 38.0 42.4 52.0 100.0Percent. of Adults (aged 15-49) Liv ing w ith HIV/AID 2003 6.3 6.4 1.3 0.3Incidence of Tuberculosis (per 100,000) 2003 518.0 406.4 144.0 11.0Child Immunization Against Tuberculosis (%) 2004 48.0 78.2 82.0 93.0Child Immunization Against Measles (%) 2004 35.0 68.8 73.0 90.0Underw eight Children (% of children under 5 y ears 2003 28.7 39.0 31.0 …Daily Calorie Supply per Capita 2003 2 714 2 439 2 675 3 285Public Ex penditure on Health (as % of GDP) 2002 1.2 2.7 1.8 6.3

Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2002/03 119.0 96.7 91.0 102.3 Primary School - Female 2002/03 107.0 89.3 105.0 102.0 Secondary School - Total 2002/03 36.0 43.1 88.0 99.5 Secondary School - Female 2002/03 32.0 34.6 45.8 100.8Primary School Female Teaching Staff (% of Total) 2002/03 48.0 44.1 51.0 82.0Adult Illiteracy Rate - Total (%) 2005 29.2 35.0 26.6 1.2Adult Illiteracy Rate - Male (%) 2005 22.4 26.9 19.0 0.8Adult Illiteracy Rate - Female (%) 2005 35.8 42.9 34.2 1.6Percentage of GDP Spent on Education 2003 … 4.7 3.9 5.9

Environmental IndicatorsLand Use (Arable Land as % of Total Land Area) 2005 31.0 6.0 9.9 11.6Annual Rate of Deforestation (%) 2000 2.55 0.70 0.40 -0.20Annual Rate of Reforestation (%) 2000 3.0 10.9 … …Per Capita CO2 Emissions (metric tons) 2005 0.28 1.0 1.9 12.3

Source : ADB Statistics Div ision databases; UNAIDS; World Bank Live Database and United Nations Population Div ision; Country ReportsNotes: n.a. Not Applicable ; … Data Not Available. * : latest data available within 1995-2000

COMPARATIVE SOCIO-ECONOMIC INDICATORSNigeria

Inf ant M ort alit y R at e ( Per 10 0 0 )

0

20

40

60

80

100

120

140

Nigeria Africa

GN I per cap it a U S $

0

200

400

600

800

1000

Nigeria Africa

Pop ulat io n Gro wt h R at e ( %)

2 .02 .1

2 .12 .2

2 .22 .32 .3

2 .42 .4

Nigeria Africa

Lif e Expect ancy at B ir t h ( years)

111213141516171

Nigeria Africa

vi

Nigeria: National Rural Water Supply and Sanitation (RWSS) Programme, Logical Framework

Hierarchy of Objectives Expected Results Reach Performance Indicators Target Indicators and Timeframe Assumptions and Risks

Sector Goal To improve the social well being and health of the Nigerian people towards poverty eradication through the sustainable development of WSS facilities.

Long Term Outcomes Reduced incidence of water related diseases as a result of improvement of water and sanitation services.

Rural People of Nigeria

1) Population with improved RWSS facilities. 2) Infant mortality rate per 1000 live births. 3) Under 5 mortality rate per 1000 live births. 4) Increase in school enrollment Sources: National Statistics, MOH reports, NEEDS Documents, LGA Reports, MDG Goals

1.1) Rural water coverage increased from 43% in 2006 to 80% by 2010 and 100% by 2015. 1.2) Rural sanitation increased from 32% in 2006 to 60% by 2010 and 90% by 2015. 2) Infant mortality rate decreased from 110.6 in 2005 to 30.3 in 2015. 3) Under 5 mortality rate decreased from 193.6 in 2005 to 63.7 in 2015. 4) Primary school enrolment increased from 67.7% in 1990 to 100% in 2015.

Government commitment to poverty reduction strategy maintained.

Programme Objectives 1) Provide adequate and safe water and sanitation service to the rural population in Nigeria 2) Strengthen sector capacity for programme implementation and effective operation and maintenance.

Medium Term Outcomes 1) RWSS programme activities implemented. 2.1) Capability of sector institutions enhanced. 2.2) Capacity of Communities, NGOs, Private sector and WASCOMs strengthened. 2.3) A Public Private Partnership (PPP) operationalised.

- Rural population of Nigeria. -Staff of RWSS agencies / FMAWR/LGAs. - Contractors, suppliers, NGOs.

1) Number of people with water supply and sanitation facilities. 2) Reliable service within walking distance. 3)Increase in water consumption 4) Improvement in functionality (number of RWSS facilities operating at a full capacity) as a result of capacity building. 5) Percentage of WASCOMs with active women membership. Sources: PCR, Audit reports, Coordinating Committees’ reports, RWSS agencies quarterly reports, LGA reports

1.1) 38.99 million additional people with safe water by 2010 and 28.55 million additional people by 2015. 1.2) 47.56 million additional people with hygienic sanitation facilities by 2010 and 34.71 million additional people by 2015. 2) Average distance to nearest water point reduced from >.15 km to < 500 m by 2015. 3) Per capita basic water consumption increased from <15 l/c/d to 20 l/c/d by 2015. 4) Functionality of RWSS facilities increased from <50% in 2006 to 100 % by 2015. 5) At least 30 % of WASCOMs positions filled by women.

Government efforts to allocate adequate resources and minimize bureaucracy.

Activities/Inputs 1) Procurement of pumps, supplies and equipment. 2) Rehabilitation and construction of RWSS facilities. 3) Training and sensitization campaigns.4) Conducting research studies to improve strategies, technologies and systems. 5) Establishment of Monitoring and Evaluation (M&E) system. 6) Provision of technical assistance.

Financial Resources UA billion Federal / ESAs 0.70 States 0.34 LGAs 0.28 Communities 0.07 Total 1.39

Short-Term Outcomes 1) Equipment and supplies procured and installed. 2.1) Conducting water points and sanitation survey. 2.2) Delivery of reliable RWSS facilities. 3.1) Carrying out participatory assessment of institutions capacities, roles and mandates 3.2) Establishment of children school environmental club and Parent-Teachers Associations 3.3) Competence of FMAWR & RWSS agencies, WASCOMs, Private, sector & NGOs built. 3.4) Effective community mobilization and hygiene promotion implemented. 4) Process, strategies and technologies improved through research studies. 5) M&E installed at National, States and LGAs. 6) TA consultants recruited and provided services.

FMAWR, RWSS agencies, LAGs, Communities, Training institutions, contractors.

1) Sector coordination effectiveness. 2) Policy and strategy implementation. 3) Institutions performance- M&E establishment 4)Number of RWSS Facilities implemented. Sources: Approved budgets, signed agreements, disbursement rates, audit reports, States and LGA quarterly progress reports, supervision mission reports.

By 2010 1) Coordination mechanisms in place and operating at Federal and State levels. 2) Water and sanitation policy and strategies adopted by 2009. 3) FMAWR RWSS Division equipped and operating. 4) 36 States’ RWSS agencies and 774 LGAs’ WASHs equipped and operating 5) National M&E system in place and operational at Federal and State levels . 6) 5,384 motorized BHs, 31,919 HDW, 46,801 BH/HP, 2,144,697 Sanplat latrines, 1,429,798 VIP latrines constructed/rehabilitated. By 2015 7) 3,823 motorized BHs, 24,489 HDW, 33,931 BH/HP, 2,602,967 Sanplat latrines, 1,735,311 VIP latrines constructed/rehabilitated.

- Financing availability for programme implementation. - Implementation capacity of State and LGA.

vii

Nigeria: Rural Water Supply and Sanitation (RWSS) Sub-Programmes in Yobe and Osun States, Logical Framework

Hierarchy of Objectives Expected Results Reach Performance Indicators Target Indicators and Timeframe Assumptions and Risks

Sector Goal To improve the social well being and health of the Nigerian people towards poverty eradication through the sustainable development of WSS facilities.

Long Term Outcomes Reduced incidence of water related diseases as a result of improvement of water and sanitation services.

Rural People of Nigeria

1) Population with improved RWSS facilities. 2) Infant mortality rate per 1000 live births. 3) Under 5 mortality rate per 1000 live births. 4) Increase in school enrollment Sources: National Statistics, MOH reports, NEEDS Documents, LGA Reports, MDG Goals

1.1) Rural water coverage increased from 43% in 2006 to 80% by 2010 and 100% by 2015. 1.2) Rural sanitation increased from 32% in 2006 to 60% by 2010 and 90% by 2015. 2) Infant mortality rate decreased from 110.6 in 2005 to 30.3 in 2015. 3) Under 5 mortality rate decreased from 193.6 in 2005 to 63.7 in 2015. 4) Primary school enrolment increased from 67.7% in 1990 to 100% in 2015.

Government commitment to poverty reduction strategy maintained.

Sub-Programmes Objectives 1) Increase and sustain provision of safe water and sanitation services to the rural population in the states of Yobe and Osun. 2) Build institutional capacity for effective operation and maintenance as well as manage the implementation of the sub-programmes.

Medium Term Outcomes 1) Access to water points and latrines in households and public places increased. 2.1) Institutional capacity of FMWR, RWSS agencies and LGAs strengthened 2.2) Capacity of WASCOMs, NGOs and Private sector strengthened.

- Rural population of Osun and, Yobe states -Staff of RWSS agencies / FMAWR/LGAs. - Contractors, Suppliers and NGOs.

1) Number of people with water supply and sanitation facilities. 2) Reliable service within walking distance. 3)Increase in water consumption 4) Improvement in functionality (number of RWSS facilities operating at full capacity) as a result of capacity building. Sources: PCR, Audit reports, Coordinating Committees’ reports, RWSS agencies quarterly reports, LGA reports

1.1) 2.56 million people in Yobe and 0.76 million in Osun with safe water by 2012. 1.2) 2.30 million people in Yobe and 0.68 million in Osun with hygienic sanitation facilities by 2012. 2) Average distance to nearest water point reduced from >.15 km to < 500 m by 2012. 3) Per capita basic water consumption increased from <15 l/c/d to 20 l/c/d by 2012. 4.1) Functionality of RWSS facilities increased from <50% in 2006 to 100 % by 2012. 4.2) At least 30 % of WASCOMs positions filled by women 4.3) 18 no training packages provided to staff from different institutions and 50 Private sector providers & 8 NGOs supported.

- Government commitment to RWSS continued. - Communities capacity for O&M improved and continued. Institutional reform Implemented.

Activities/Inputs 1) Procurement of pumps, supplies and equipment. 2) Rehabilitation and construction of RWSS facilities. 3) Training and sensitization campaigns. 4) Conducting research studies 5) Establishment of Monitoring and Evaluation (M&E) system. 6) Provision of technical assistance.

Financial Resources UA million ADF 51.00 EC 3.24 UNICEF 0.26 JICA 4.22 Yobe State 6.16 Osun State 3.68 FMAWR 0.66 Total 69.22

Short-Term Outcomes 1) Equipment and supplies procured and installed. 2) Delivery of reliable RWSS facilities. 3.1) Staff from sector institutions trained and sensitized. 3.2) Competence of FMAWR & RWSS agencies, WASCOMs, Private, sector & NGOs built 3.3) Effective community mobilization and hygiene promotion implemented. 4) Process, strategies and technologies improved through research studies. 5) M&E installed at National, States and LGAs. 6) TA consultants recruited and provided services.

FMAWR, RWSS agencies, LAGs, Communities, Training institutions, contractors.

1) Institutional performance of RWSS agencies. 2) Establishment of WASCOMs. 3) Operation of M&E 4) Number of motorized BHs. 5) Number of HDWs with HPs. 6) Number of BH with HPs. 7) Number of VIP latrines. 8) Number of water points and sanitation facilities in schools and public places. Sources; Approved budgets, signed contract agreements, disbursement status, audit reports, state, quarterly reports, supervision mission reports, LGAs reports.

By 2009 1) RWSS Agency, 17 LGAs with WASH units and 512 WASCOMs in Yobe state in place and operating 2) RWSS Agency, 30 LGAs with WASH units 146 WASCOMs in Osun state in place and operating. 3) M&E system in place and operational at Federal, Yobe and Osun states. By 2012 4) 309 motorized BHs, 1754 HDW, 1570 BH/HP, 142817 Sanplat latrines, 47091 VIP latrines, and 714 Water points &1758 VIP latrines in schools/public places constructed/rehabilitated in Yobe state. 5) 96 motorized BHs, 605 HDW, 542 BH/HP, 48412 Sanplat latrines, 11260VIP latrines, 220 Water points & 636 VIP latrines constructed in schools/public places in Osun state.

- Improvement of State `and LGA implementation capacity. - Trained staff is effectively working. - Potential private sector available and delivering services

viii

EXECUTIVE SUMMARY 1. Introduction 1.1 Nigeria ranks as one of the poorest countries in the world with more than 65% of the population living below the poverty line, despite the country’s endowment of abundant natural and human resources. The low coverage of rural water supply and sanitation is of high cost to the rural economy and its consequences are deeply felt by the rural poor, particularly women, as family-head, who cannot afford to buy water, and children who spend time collecting water instead of attending school. As a result, a majority of the rural population resorts to unhygienic sources of water, which have detrimental effects in terms of community health and productivity. 1.2 The population of Nigeria is estimated at about 140 million (year 2006), with about 70 million living in rural areas. Access to safe water facilities is estimated at 43% for rural areas and 71% for urban centers, with an average access rate of 54%. Rural sanitation coverage is 32% and urban 75%, with an average access rate of 53%. As a result of inadequate safe water supply and sanitation facilities, people suffer from water related diseases such as diarrhea, cholera, typhoid, and guinea worm in many communities. The mortality rates are consequently reported at an excessively high level of 110.6 for infants and 193.6 for under-five per 1000 live births, as compared to the average of 83.6 and 139.6 across Africa. 1.3 The Government has made appreciable efforts to improve the situation of rural water supply and sanitation. The 2005-2007 National Economic Empowerment and Development Strategy (NEEDS) placed high priority on the development of safe and adequate water supply and sanitation services as a key instrument for fighting poverty and accelerating socio-economic development. At present, Nigeria is in the process of reforming the water and sanitation sector through the development of a water resources policy, updating the water law and establishment of institutions that will promote stakeholders’ involvement. 2. National Rural Water Supply and Sanitation (RWSS) Programme 2.1 Based on the National Water and Sanitation Policy and Strategic Framework for Implementation (SFI) of RWSS operations as well as the NEEDS strategy, the Government has, through financial assistance from the ADB, prepared a National Rural Water Supply and Sanitation (RWSS) Programme and its Programme Implementation Manual (PIM) in consultation with stakeholders and donors. The National RWSS Programme included investment sub-programmes for the 36 states and the Federal Capital Territory of Abuja (FCTA). The Programme targets are to increase water coverage from the present 43% to 80% by 2010 and 100% by 2015. The sanitation coverage will be increased from the present 32% to 60% by 2010 and 90% by 2015. The Government and donors agreed in March 2007, through a joint Memorandum of Understanding (MOU), to adopt the National RWSS Programme in their interventions in the RWSS sector.

ix

2.2 The Nigeria RWSS Programme is in line with the Bank’s Rural Water Supply and Sanitation Initiative (RWSSI), developed to address the challenges of providing basic water supply and sanitation services to the hitherto forgotten population of rural Africa. The Bank intervention under ADF X will consider two states of Yobe and Osun, as recommended by the country. 3. RWSS Sub-Programmes in Yobe and Osun States

Objective 3.1 The objective of sub-programmes in Yobe and Osun states is to: (i) increase and sustain provision of safe water supply and adequate sanitation services to the rural population in the states of Yobe and Osun, and (ii) build institutional and sector capacity for effective management and implementation. The Sub-Programmes target will increase the water coverage from 46.40% in Yobe and 44.72 in Osun to 100% of the 2015 population and the sanitation coverage from 33.60% in Yobe and 29.20% in Osun, to 90% of the 2015 population. The target population is 3.32 million with water facilities and 2.98 million with sanitation services. The sub-programmes will thus contribute up to 3.60% to the national targets relating to the safe water supply in line with MDGs. Its contribution to the national sanitation target is estimated at 3.23 %.

Description and Components 3.2 The Sub-Programmes involve provision of water supply and sanitation facilities, as well as capacity building in parallel. In addition, support will be provided to enhance the process of mainstreaming sector policies, institutional strengthening at the federal, state and local government levels in order to manage implementation of the Sub-Programmes and ensure effective monitoring, evaluation and feedback. The Sub-Programmes have three components: (i) Infrastructure Provision, (ii) Capacity Building and (iii) Management Support. The expected main achievements are: (i) 2,359 hand dug wells, (ii) 2,112 boreholes with hand pumps, (iii) 405 boreholes with motorized pump, (iv) 191,229 household sanplat latrines, (v) 58,351 household VIP latrines, (vi) 934 water points in schools and public places, (vii) 2,394 latrines in schools and public places, (viii) 47 WES units in LGAs set up and equipped, (ix) 664 women empowered and trained to ensure hygiene in communities, (x) 18 training package conducted, and (xi) 8 NGOs and 50 private drillers supported and trained.

Cost and Sources of Finance 3.3 The total cost of the Sub-Programmes in Yobe and Osun states is estimated to be UA 69.22 million, out of which the ADF will fund UA 51.00 million, the EC UA 3.24 million, JICA UA 4.22 million and UNICEF UA 0.26 million. The local contributions including Federal Government, State Government, LGA and Communities amounts to UA 10.50 million, representing 15.17% of the total sub-programmes cost. The combined ADF and Government costs are UA 57.55 million, of which the local contributions amount to UA 6.55 million, constituting 11.40%.

x

Implementation Arrangements 3.4 The implementation of the Sub-programmes in Yobe and Osun follows the implementation arrangement set for the National RWSS Programme, which utilizes the existing institutional structures. The National Coordinating Committees, which are established at the Federal and State levels, will have overall guidance and oversight on the RWSS Sub-Programmes to ensure coordinated interventions by all donors and other stakeholders. 3.5 The Rural Water Supply and Sanitation Agency (RWSSA) of Yobe State and the Rural Water Supply and Environmental Sanitation Agency (RWESA) of Osun state will be the respective Executing Agencies under the auspices of the State Ministries of Water Resources. Following the demand-responsive process and decentralization policy, the Local Government Authorities (LGAs) in each state will execute projects in collaboration with communities with support from State. Communities will be involved in every phase of the project cycle through the respective Water and Sanitation Committees (WASCOMs), which will be strengthened to play important roles that include (i) needs identification, (ii) planning, (iii) contribution towards the capital cost, and (iv) operation and maintenance. At the national level, the Federal Ministry of Agricultural and Water Resources (FMAWR) will be responsible for the overall policy and regulatory framework and will be in charge of monitoring, evaluation, coordination and partnership with donors. 4. Conclusions and Recommendations 4.1 The present Sub-Programmes in Yobe and Osun will support Government efforts to eradicate poverty through the provision of basic water supply and sanitation facilities as underscored in the NEEDS and to allow meeting the MDGs. It will contribute considerably to achieving national targets set by the Strategic Framework for Implementation (SFI) of RWSS operations and the National RWSS programme by increasing the access to adequate and sustainable water supply and sanitation facilities to 100% and 90%, respectively, of the 2015 population. The implementation arrangements follow the Government’s decentralization policy and demand-driven approaches. The present sub-Programmes are in line with the Bank’s Country Strategy Paper (CSP) for Nigeria and the Bank’s strategic plan 2003-2007. 4.2 It is recommended that a loan not exceeding UA 51 million from ADF be granted to the Federal Republic of Nigeria for the purpose of implementing the RWSS Sub-Programmes in the two states of Yobe and Osun as described in this report.

1

1 ORIGIN AND HISTORY 1.1 Nigeria has a population of about 140 million (year 2005) with 70.30 million (52.2%), living in rural areas. Access to safe water facilities is estimated at 43% for rural areas and 70.6% for urban centers, with an average of 54.1%. The sanitation rural population coverage is 32% and urban 75%, with an average of 52.8%. The lack of safe water supply and sanitation facilities, people is the primary cause for water related diseases like diarrhea, malaria, cholera, typhoid and guinea worm, particularly in rural communities. This situation has resulted in a high level of infant mortality of 110.6 for infants and 193.6 for under-five per 1000 live births, as compared to the average of 83.6 and 139.6 across Africa. The water and sanitation services in rural areas fare worse than the urban areas. This lopsided development required the Government to address the RWSS sector on priority basis. 1.2 As part of its efforts to improve the situation of rural water supply and sanitation services, the Government has developed the National Economic Empowerment and Development Strategy (NEEDS) as the main instrument for fighting poverty and accelerating development. One key component in this strategy is the sustainable development of safe and adequate water supply and sanitation services. Together with development partners, the water and sanitation sector has gone through reform process to develop policies, strategies, and restructuring of institutions. A National Water Supply and Sanitation Policy has been adopted in year 2000 and a Strategic Framework for Implementation (SFI) of Rural Water Supply and Sanitation operations in 2005. A Water Resources Policy has been prepared and plans are underway to prepare an implementation strategy for WSS implementation and update the water law. 1.3 Following a request from the Federal Government of Nigeria in July 2003 to benefit from the Bank’s RWSSI, the Bank fielded an identification mission in December 2003 and then provided the country with a financial assistance to prepare a National RWSS Programme. Subsequently, the National RWSS Programme which included investment sub- programmes for the 36 states, and the Federal Capital Territory of Abuja (FCTA) together with Programme Implementation Manual (PIM), was prepared in consultation with all stakeholders and donors in 2005. In November 2005, a preparation mission was undertaken by the Bank to discuss the National RWSS Programme and Bank’s intervention. On 24 November 2005, a national water supply and sanitation workshop was organized by the FMAWR and attended by stakeholders from federal ministries, state ministries, donors, NGOs and civil society organizations. At the workshop, consensus by all stakeholders and was made on utilizing the programme as a framework for RWSS activities. Thereafter, a pre appraisal mission was undertaken in August 2006 followed by an appraisal mission in March/April 2007 to design and develop the Bank intervention in Yobe and Osun States in the National RWSS Programme. This has been carried out in collaboration with the relevant Government agencies, stakeholders and other multilateral and bilateral donors through donor meetings held on in August 2006 and March 2007. The National RWSS programme was then launched in a stakeholder meeting on 30 March 2007 during the appraisal mission, whereby all stakeholders and donors, through a joint Memorandum of Understanding (MoU), agreed to adopt the National RWSS Programme as a framework for RWSS interventions. 1.4 This report is the result of field visits and consultations with the rural communities, government authorities, other stakeholders and donors during various missions as indicated above. The proposed intervention in Yobe and Osun states will provide considerable support in achieving the sector goals, meeting the MDGs targets and fighting poverty in rural areas. It

2

is in line with the Bank’s Rural Water Supply and Sanitation Initiative (RWSSI) developed to address the challenge of providing basic water supply and sanitation services to the hitherto forgotten population of rural Africa. 2 THE WATER SUPPLY AND SANITATION SECTOR 2.1 Water Supply and Sanitation Situation 2.1.1 Surface Water Resource: Nigeria’s surface water resource is estimated to be about 267 billion m3/annum. However, only 15% of this potential resource has been utilized to date. There is a spatial and temporal variation in the occurrence and distribution of surface water; rainfall exhibits considerable variations with north experiencing the wet season from July to September and the South from April to November. Annual rainfall varies from 4000 mm in the southeast to below 250 mm in the extreme northeast. The average rainfall is about 300 mm/year in the northern areas while it is about 3000 mm/year in the south. 2.1.2 Nigeria has two major rivers. The Niger river entering the country from north west and the Benue river entering from the north east; together with their tributaries. The two rivers drain half the area of the country and they converge in Lokoja, Kogi state and eventually discharge into the Atlantic ocean. 2.1.3 Groundwater Resource: Nigeria has about 52 billion m3 of groundwater potential. However, the amount that can be exploited economically is not ascertained. About 60% of the country is underlain by crystalline rocks, 20% by consolidated sedimentary materials, and 20% by unconsolidated sedimentary materials. 2.1.4 Groundwater quality, quantity and depth are highly variable. By and large, groundwater is abstracted for rural and small towns water supply services. In some areas groundwater is of high iron, nitrate, fluoride, and hydrocarbon content. About 20% of the country is underlain by highly corrosive groundwater, and 40% by moderately corrosive groundwater. Well yields are unpredictable in the crystalline rocks found in many parts of the north; some areas may be suitable for operation of hand pump with a minimum of 10 litres per minute, but only at specific localities where deep weathering and underlying fracture coincide with yields likely to be sufficient for motorized pumping. 2.1.5 About 78% of boreholes sunk within sedimentary formations in the north, central and south regions of the country have depths less than 100 m below ground level. Over 52% of existing boreholes, mostly with yields more than 100 liters/minute, are located in the northwestern and northeastern parts of the country. The high number of boreholes in the north is a reflection of the importance of groundwater as a source of domestic and agriculture water supply. 2.1.6 Water Supply and Sanitation: Water supply and sanitation services are defined under three categories of settlement as follows: (i) Urban areas: are highly densely populated areas with population over 20,000, and predominant non-agriculture based economy, often requiring large scale water supply and sewerage infrastructure. Lack of adequate investment and poor operation and maintenance are the major challenges facing the urban WSS, (ii) Small towns: are semi urban settlements with population between 5,000 and 20,000 that have been relegated to the sidelines in earlier interventions. Recently more attention is being given to these small towns by the country and donors. The World Bank and EC have has taken up

3

projects in small towns in some states, and (iii) Rural areas: are defined as settlements, mostly scattered with agriculture based economy and low income, with population below 5,000. These settlements were marginalized. At present, several donors are providing support including the current substantial ADF intervention. 2.1.7 At present, water supply coverage is about 54.1% comprising 70.6 % of the urban/semi urban population, and 43 % of the rural population. The service level of these systems is not satisfactory because of lack of adequate regulation, standards, poor operation and maintenance, and insufficient follow-up on the quantity, quality and availability of the supply as well as lack of monitoring and tracking systems. The sanitation situation fares even worse. Currently, sanitation coverage is estimated to be about 52.8%, with 75.3% in urban/semi urban areas and 32% in rural settlements. In most rural areas domestic sanitation depends on traditional pit latrines and open defecation. 2.1.8 Rural Water Supply and Sanitation: The RWSS sub sector is characterized by low service coverage and poor operation and maintenance practices. This is compounded with the recent worrying trend of deterioration of services and the uncertainty on the operational status of the installed facilities. The reliability and quality of services is often dismal. Water quality has not been accorded enough attention, nor is the available supply always assured. 2.1.9 Coverage figures for existing rural water supply services (2006 estimates) varies from state to state with a range from 21.2 % in Rivers State to 63.2% in Jigawa. Sanitation coverage ranges from almost non-existent in Akwa Ibom to 51.2% in Gombe. In most states sanitation coverage falls behind water supply, with the exception of Adamawa, and Kaduna, where sanitation coverage is slightly higher than water. Here again, the anomaly may arise from the quality, standards and incompatibility of the derived information. In Yobe and Osun states, which are considered under this intervention, the water coverage is 46.40% and 44.72%, while the sanitation coverage is 33.60% and 29.20%, respectively. Rural water and sanitation coverage in all states is presented in Annex 2. Details on the existing RWSS situation in the Yobe and and Osun states are presented in Annex 3. 2.1.10 Available statistics indicate that about 64% of all rural water supply schemes are shallow boreholes fitted with hand pumps, 32% are motorized boreholes and 2% are other facilities including protected springs. Technology options for rural sanitation include flush toilet (5%), covered traditional pit latrine (33%), ventilated improved pit latrines (2%), open defecation (bush/river) (38%), and other (22%). 2.1.11 Gender Issues and Socio-Economic Development: Gender differences between men and women in terms of access to community resources have affected the water supply and sanitation sector. Women suffer disproportionately from the effects of poverty, low access to productive resources such as land (24.95% for female compared with 75.05% for male), livestock (8.71% for female and 91.29% for male), elective posts (1.6% female and 98.4% male) and decisions about women’s access to social services such as health (12.8% by wives and 73.4% by husbands), and education (literacy rate of 48.2% for female and 72.5% for male). The two states of Osun and Yobe differ in terms of gender indicators as shown in the table below. While Osun state is doing better than Yobe in terms of some human resource indicators, it is not same as regards to female circumcision.

4

Table 2.1: Gender Disaggregated Data in Yobe and Osun States Variables Osun state Yobe state Female Male Female Male Literacy rate 65.4% 85% 15.6 34.2 Secondary School 60.7% 64.2% 21.1% 23.5% Primary School Enrolment 82.1% 86.0% 34.6 36.4% Monthly Average Income N1815 N4530 N1252 N1555 Access to Credit 24.9% 24.9% 1.1% 2.8% * Extracted from the two state’s survey reports of 2006. 2.1.12 In relation to RWSS sub-sector, there are gender concerns in three broad areas: (i) at the policy level, (ii) at the level of RWSS institutions, and (iii) at the level of implementation of RWSS operations. The policy environment is conducive for gender sensitive program. National Women’s Policy was reviewed and a new Gender policy document was produced in 2007. However, an action plan on mainstreaming gender issues in the RWSS sub-sector is yet to be well articulated. The gender sensitive institutional arrangement of the RWSS is inadequate and male dominated. Woman presence in key decision making positions is low and the capacity of the RWSS staff on gender mainstreaming is inadequate. The implementation of RWSS still requires to consider certain gender issues including: (i) Women and men have different water requirements and benefits, (ii) Women and men often have different constraints related to participation in the management of a water system, (iii) Water charges may be high for women, (iv) The institutional structures and manpower of RWSS in most of the states were found to be male dominated, and (v) Level of women’s active and effective participation in water management is low. 2.1.13 It is in recognition of the above issues that the Federal Ministry for Women Affairs is prioritized as one of the key ministries for the attainment of MDGs and for poverty reduction. Efforts have been made in the past few years to address gender inequality at all levels of the Nigerian society. With the demonstrated political will, successes have been recorded. These included formulation of the National Gender Policy, appointment of more women into key positions, gender considerations in the National RWSS Programme, progressive legislations against female genital mutilation, widowhood practice, child marriage, yet to be passed bill on gender-based violence, and programs on women’s empowerment. 2.2 Policy, Strategy and Legal Framework 2.2.1 Policy: The National Water Supply and Sanitation (WSS) Policy, which was officially adopted by the Federal Government of Nigeria in 2000, enunciates the basic principles and defines the enabling environment for sustainable development of WSS. It stipulates provision of sufficient potable water of acceptable quality and adequate sanitation to all Nigerians in an affordable and sustainable way through participatory manner, consensus building, and consultative strategy and investment by the three tiers of government, the private sector and the beneficiaries. The main policy principles include (a) Water as an economic and social good, (b) Water as a baseline investment for socio-economic development, (c) Sustainable development, (c) Water management, conservation and protection, (d) Social equity and poverty alleviation, (d) Autonomy of Water Supply and Sanitation Services Providers, (e) Management at the lowest appropriate level, (f) Privates Sector participation, (g) Policy making and regulatory role of government. Steps are being taken to review the WSS policy with the support of the World Bank. The revised WSS policy is scheduled for approval by the Government in November 2007.

5

2.2.2 The National Water Resources Policy has been prepared and it constitutes the principal instrument for the sustainable development, administration, control, protection, and conservation of water resources, including master plan studies, river basin studies, integrated utilization of water resources, multi-purpose/sectoral planning, and rational water allocation. The Policy has the following components: (i) General issues including water resources assessment, dData and information management, human resources development and capacity building, transboundary waters, research and development, institutional development, legal and regultory framework; (ii) Cross-cutting issues including economics and financing of water services, private sector participation, monitoring and evaluation, operation and maintenance, compliance with environmental requirements; and (iii) Sectoral policies incorporating water supply and sanitation, dams and reservoirs, irrigation and drainage, and other uses. At present, the document has been reviewed by the Federal Executive Council and is expected to be approved by the Government in October 2007. 2.2.3 The National Environmental Sanitation Policy and the newly prepared National Water Sanitation Policy provide the principal guidelines for effective provision of dependable sanitation services. Sanitation in rural areas is, for the most part, a house hold chore. The responsibilities of the Government at different levels are that of regulation, facilitation, advocacy, sensitization, mobilization and incentive. The National Water Sanitation Policy is scheduled for Government’s approval in October 2007. 2.2.4 Strategy: A Strategic Framework for Implementation (SFI) of the RWSS operations has been adopted in 2005 to ensure co-ordination, streamlining and lending focus to all RWSS interventions. The objective is to move away from interventionist and supply driven approaches, and focus on programmatic and demand driven approaches. The strategies underpinning sustainable development under the SFI include (i) Community Ownership and Management, (ii) Demand Responsive Approach, (iii) Starting Small and Scaling up, (iv) Demonstrating and Piloting, (v) Partnership and Collaboration, (vi) Cost sharing. In addition, plans are underway to prepare an implementation strategy of the Water Resources Policy with EC funding. Furthermore, the FMAWR in collaboration with UNICEF has developed water quality standards, which were recently approved by the National Standards Council. 2.2.5 Legal Framework: Existing edicts for water supply and sanitation comprise the following acts and decrees: (i) Decree 101, the decree vests control of Nigerian Water Resources in the Office of the Federal Minister of Agriculture and Water Resources, (ii) Decree no. 35 of 1987, establishing the 11 River Basin Authorities, (iii) Edicts establishing State Water Agencies for the 36 States and the FCTA. The Policy development and institutional reform are accompanied with corresponding new legislation and regulations. At present, the FMAWR, with the support of the EC, is in the process of updating the water law; the final round of nation wide consultations has commenced and the Parliamentary approval is expected to be secured in December 2007. 2.3 Sector Organization and Institutional Framework 2.3.1 Federal Level: The public institution mainly responsible for water supply and sanitation development is the Federal Ministry of Agriculture and Water Resources (FMAWR). Its mandates include, (i) Water Resources Management, including assessment, study allocation and planning, (ii) Water Protection conservation and Quality Control, (iii) Policy making, standards setting, legislation and regulation, (iv) Coordination and facilitation, (v) Support & promotion of the involvement of different stakeholders and

6

Private Sector Participation (PSP), (vi) Development of technical manuals & guidelines and Water Quality Standards, (vii) Mobilization of national and international finance, (viii) Guidance and coordination of ESAs, and NGOs, (ix) development and management of Information Systems, and Monitoring &Evaluation, and (x) River basin master planning. 2.3.2 The FMAWR operates through eight departments, each of which is headed by a Director. The Federal level RWSS Deputy Director under the Water Supply and Quality control Directorate takes responsibility for overall guidance including policy, strategies, standards, regulations, quality control, and Monitoring & Evaluation. The National Water Resources Institute (NWRI) provides services relating to engineering research and training of professionals and technicians. The Utilities Commission, established in 1992, monitors and regulates utility tariffs. Sector institutional organograms are shown in Annex 4. 2.3.3 The Federal Ministry of Environment (FMEnv) is responsible for environmental policies, while the Federal Ministry of Health (FMH) formulates policy for the health sector, and is responsible for generating and disseminating data on environmental sanitation related diseases; controlling vector borne diseases, malaria, guinea worm, schistosomiasis, promotion of sound food hygiene; and capacity building and training of Environmental Health Practitioners. 2.3.4 The other sector Ministries, notably, the Federal Ministries of Education, Science and Technology, Women Affairs, Intergovernmental Affairs, Youth Development and Special Duties have a bearing on the effort to promote sustainable development of Water Supply and Sanitation services in Nigeria. 2.3.5 State Level: The State Water Resources Ministries (SMWRs) or State Ministries of Works (SMWs).are responsible for regulatory, policy making, strategy development, oversight, monitoring & evaluation, maintaining databases, and guiding the state WSS agencies. Water boards for urban areas serve as Public utility entities, directly managing the WSS service by collecting tariffs. Rural Water Supply and Sanitation (RWSS) agencies are responsible for planning, developing, and managing Rural Water Supply and Sanitation programs. They are accountable to either SMWRs or SMWs. All State Water Agencies (SWAs) depend on State Government subvention to cover part or all of their recurrent operating costs. Major capital investments are made with the support of State Government or External Support Agencies (ESAs). This situation has resulted in most RWSS agencies not being financially autonomous to make decisions regarding staff levels compensation, and tariffs. 2.3.6 The RWSS agencies exist in 22 of the 36 States. Each RWSS agency is managed by a Board comprising of appointed members by the State Government. The Chief Executive of the RWSS Agencies is normally a professionally qualified Engineer. The RWSS agencies used to be engaged in direct project implementation. With the new sector policy, state agencies are gradually being phased out from direct involvement in project execution. The functions of these agencies are changed to facilitation, supervision and coordination, and to encourage the active participation of private sector consultants, contractors and suppliers. The mandate given to RWSS agencies include: (a) database and inventory of facilities, (b) preparation of State plans and coordination of implementation, (c) Coordinate drilling and construction activities, (d) Advocacy, mobilization on water, hygiene, health, environment and sanitation, (e) provide intersectoral linkages and facility for program implementation, and (f) promote low cost and appropriate technologies.

7

2.3.7 LGA and Community Level: 774 Local Government Authorities (LGAs) are responsible for the provision of Rural Water Supply and Sanitation services within their areas of jurisdiction, though with limited existing capacity to meet the challenges posed by this responsibility. In some states, there is no water line department/unit at the LGA level; instead separate departments for environment and health are established, whose staff is supported through secondment. Various community organizations, including Water and Sanitation Committees (WASCOMs) are progressively being involved in community management of water and sanitation infrastructure. 2.3.8 Private Sector and NGOs: Private sector participation in the RWSS sub-sector has been limited. However, it appears there is a pool of engineering consultants, drilling and civil works contractors, latrine artisans, manufacturers and suppliers of hand pumps and spares ready to provide relevant services. Increasingly, NGOs are becoming more interested and committed to actively participate in the sub sector. An association of NGOs, NEWSAN, has been formed that seeks to collaborate with LGAs to improve on delivery of RWSS services in communities. 2.4 Constraints and Opportunities

Constraints 2.4.1 Capacity Building: Capacity building is in vogue today, albeit with non structured and ad-hoc approach focusing on training and neglecting other components. At present there are no objective-oriented and structured capacity building plans in the Federal Government and the states. All activities are improvised attempts usually emanating from donor interventions. Overall existing capacity in the water sector of Nigeria leaves much to be desired. The RWSS agencies and LGAs employ staff most of whom are semiskilled, with minimal or less relevant qualifications, mainly focused on project implementation and execution responsibilities. This is like a mismatch between reformed institutions and unreformed staffing. Some of the technically or professionally qualified staff in management positions lack management expertise due to limited management training or experience. The supervisory skills of line managers are often weak, thereby impacting on the operational performance of water supply schemes. The National RWSS programme has accordingly addressed the capacity building needs, which have to be taken in concert, as follows: (i) Training and Human Resources Development, (ii) institutional support, (iii) Equiping RWSS institutions. 2.4.2 Operation and Maintenance: Chronic O&M problems have rendered considerable portions of WSS systems unserviceable or made them function at limited capacities; with unacceptable rate of unaccounted for water, quality problems and service interruptions. The problem is further compounded with the lack of meaningful operation and maintenance Strategy. In rural areas, operation and maintenance activities suffer from poor community level organization and inadequate support to WASCOMs. The National RWSS programme addressed this issue through provision of training of WASCOMs, sensitization campaigns and preparation of O& M manuals. 2.4.3 Legislation and Regulatory Framework: There is a weak and ill-defined legal arrangement on institutional linkages vertically, laterally and functionally. This is especially true as it relates to the new WSS policies. Existing edicts, decrees and acts reflect centralized

8

planning and institutional arrangements and supply driven WSS interventions. Thus there is lack of legislation, regulations and procedures to effectively implement polices and project implementation through LGAs and Communities. Substantial support is provided in the National RWSS Programme to address the legislation and regulatory aspects. It is expected that the on going sector reform program, with support from donors including World Bank, EC, DFID and UNICEF, will improve this situation. 2.4.4 Information System and Monitoring & Evaluation: Overall information on water resources planning, sector data, information exchange and management including collection, transmission, storage, analysis, retrieval and dissemination capacity is at low level both at the Federal Authorities, the State Agencies, and LGAs. It is obvious that this inadequacy has a multiplier effect on the development of the sector. Thus, poor information on existing situation, population, mapping, water sources, technology choices, community capacity, affordability and ability to pay are detrimental to decision making as well as to overall planning and design of facilities. A MDGs Baseline Survey for the water sector has recently kicked of by the World Bank, with a completion timeline in 2007. This will improve the baseline data for both urban and rural WSS sub-sectors. In addition, establishment of MIS has been started in some states covered by EC/UNICEF intervention on pilot basis. The National RWSS programme requires to install a comprehensive MIS network building on the existing initiatives in this regard to link LGAs, States and the Federal Government. 2.4.5 Sector Coordination: The FMAWR is responsible for overall coordination of the sector. Likewise, State Ministries of Water Resources and Agencies are supposed to plan and coordinate all sector activities. Unfortunately, roles and responsibilities at all levels are not adequately and clearly defined. This has affected the sector planning and activities particularly in RWSS sub-sector. In order to enhance coordination mechanism in the sector, an M&E unit has been recently established at the FMAWR and some states, however, it still lacks the capacity to carry out surveys and manage generated data. When the on going M&E system, as recommended under the National RWSS Programme, becomes operational it will improve the coordination between Federal and States. 2.4.6 Investment Requirements: The present low coverage of rural water and sanitation requires huge investment to be made in the sub sector to enable achievement of the National targets in line with the MDG. Mobilization of resources by Nigeria is limited in amount compared to the total financial requirements. Some states/LGAs tend to budget and release funds in accordance with the plans and priorities of the RWSS sub sector. Otherwise, budgets are low and funds are released in an erratic manner. Support for Advocacy for resource mobilization from internal and external sources is provided under the National RWSS programme.

Opportunities 2.4.7 Political Will: The RWSS sub sector appears to enjoy adequate political will and support. This is attested by the recent moves to strengthen the FMAWR through the establishment of the RWSS division and RWSSS agencies. Also, a Presidential Water Initiative as a response to the need to meet the MDG targets has been launched in 2004, of which 48.28 billion NGN is planned to be spent in the RWSS component over a period of 5 years across the country. At present, the investment made in the past period from 2004 to 2006 by the 3 tiers of the Government is estimated at NGN 15.0 billion (USD 117.19 million), broken down into NGN 10.0 billion by Federal, NGN 4.0 billion by States, and NGN 1.0 billion by LGAs.

9

2.4.8 Enabling Environment: The availability of Policy and the Strategic Framework for Implementation (SFI) of RWSS will facilitate sub-sector development. The SFI emphasizes community participation and defines cost sharing arrangements including community contribution in capital and operation & maintenance costs. This provides communities with the opportunity to participate fully in making decisions and fosters a sense of ownership and assures the sustainability of RWSS services provided. 2.4.9 National RWSS Programme: Following preparation of the policy and SFI, the Government prepared a National RWSS Programme, which provides a platform and supports a programmatic approach for achieving better efficiency regarding allocation and use of available resources in a coordinated manner. The Programme determined the short to medium term and long term requirements regarding the water and sanitation infrastructure as well as the investment required to meet the MGDs. This provides an opportunity for the Government and all other stakeholders including donors to better plan and implement projects and programs in a reformed environment. 2.5 Donor Interventions and Lessons learnt

Donor Interventions 2.5.1 The major donors involved in the sector include WB, EC, DFID, JICA, UNICEF, ADB and NGOs like WATER AID. Until recently, most donor interventions have been in the urban sector. Donor interventions in RWSS sub-sector are limited in scope compared to the investment required to achieve the MDGs. These include support to establish relevant institutions and capacity building as well as provision of RWSS service. Nevertheless, there are signs that donors commitment is growing in RWSS sub-sector. This is true with the increasing commitments from donors and NGOs. 2.5.2 The World Bank is financing a small town water supply and sanitation pilot project in some States with the possibility of scaling up, as well as implementation of the National Urban Water Supply Project and the Urban Water Sector Reform Program (in six States) with a total cost of about USD 140 million. Additionally, the World Bank has plans to invest in the RWSS sector in the next few years. It is also providing support to conduct the MDGs baseline survey. The EC, in collaboration with the UNICEF, is financing a Water Supply and Sanitation Sector Reform Project, for the period 2006-2009, benefiting six states. EC funding on this project is estimated at EUR 87 million. Of this, approximately EUR 33.28 million is earmarked for improving rural water supply, sanitation and hygiene promotion delivery in six states. EC is also financing a Euro 15.00 million Small Towns Water supply and Sanitation Programme in three States. DFID in collaboration with UNICEF has provided a financial assistance of GBP 15.00 million for Improved Water Governance and RWSS facilities (2002-2007) in four states. JICA supported developing a Water Resources Master Plan for Nigeria in 1995. It also provided an amount of JPY 1.57 billion for provisions of drilling rigs and implementation of water wells in Oyo State (completed in 2002), Kano state and Yobe state. 2.5.3 UNICEF actively operates in six states with intervention in Water, Sanitation Hygiene, and Community Mobilization with a total amount of USD 20.00 million for the period 2002-2007. WATERAID is intervening in a project entitled “Improving Pro-Poor Access to Water, Sanitation and Hygiene” for the 2006-2011 period with an outlay of USD 20 million in six states for a total number of 30 LGAs. It also supported the formation of a

10

network of NGOs with an interest in RWSS activities – NEWSAN (Network for Water and Sanitation). UNICEF and WATERAID also serve as implementation arms of DFID and EC funding in RWSS. 2.5.4 Currently, the ADB has no active portfolio in water sector in Nigeria. The summary of Bank Group operations is shown in Annex 5. Earlier, the Bank water portfolio included eight projects with a total commitment of about USD 780 million. The projects included: First Multi WS Project, Plateau/Nassarawa States Water Supply Project, Niger State WS Project, Bauchi Township WS Project, Edo/Delta States WS Project, Anambra Rural Infrastructure Project, Ibadan Water Supply II project and Ibadan Emergency WS Project. The projects were mainly in the urban water sector, but one project in rural sub-sector in Anambra state. One of the key contributions to the sector, through the multi state WSS project, was the construction of four Regional and two Reference Laboratories for water quality monitoring in Akure, Enugu, Gombe, Kano, Lagos and Minna. The ADB also provided support to the FMAWR to prepare the National RWSS Programme.

Lessons Learnt 2.5.5 Donors intervention takes several forms, including (i) Direct project execution, (ii) Area based intervention, and (iii) Activity based intervention. Most of the donor interventions have been limited in terms of the overall financial requirements of the sector. However, these interventions have been strategically targeted to assist Government in addressing problems related to institutional reforms, infrastructure provision and capacity building, in an effort to initiate a process for improved sector performance, such as the case with EC and UNICEF involvement. After the adoption of the National RWSS Programme, it is expected that donors’ support be sustained in effective manner. 2.5.6 Recent donor interventions in the sector have shown that the participation of communities in initiating and taking key decisions in RWSS projects, under a demand responsive approach, enhances sustainability. All future interventions would have to ensure adequate participation of beneficiary communities in order to ameliorate previous experiences that resulted in low disbursement as encountered in the ADB previous projects. 2.5.7 Specifically, pilot interventions from UNICEF/DFID/EC have shown that: (a) communities make good contributions towards capital cost and are also willing to cover operation and maintenance costs; (b) community level artisans selected and trained to perform various RWSS related functions are unable to sustain their livelihoods solely from their RWSS related work, as demand for their services is irregular, it is therefore essential to ensure that selected and trained artisans are already locally established and have other means of livelihood that would enable them to meet their basic needs. 2.5.8 Bank previous experience, in water supply and sanitation projects, which was mostly focused on urban areas, is of mixed results with projects that were successfully completed and are providing services as well as unsuccessful projects. One could observe that it has more success than failure despite the delays. For instance, the multi state water supply project has been successfully completed and its Cross river State water supply sub-project has been a show case for water projects in Nigeria in many ways. First the project achieved its objectives whereby water production increased from 50,000 to 438,000 m3/d serving over 6.4 million people and resulting in improvement of health condition and productivity of the people. The Public Private Partnership (PPP) arrangement through a management contract and private

11

operators of water kiosk is laudable on improving the financial performance of the water board as well as on poor urban through a cross-subsidized tariff. With the success of PPP, support is extended by the World Bank to the state. Under the same multi-state WSS project, six national/reference water quality laboratories have been established across the country, which have positive contributions not only in monitoring of water quality but also in research and collaboration with international and domestic institutions. The major reasons for having delayed and aged projects were utilization of loan balances after completion of the original projects, as the case with the Ibadan emergency water rehabilitation project and non-familiarity with the Bank’s disbursement and procurement procedures. The only project which was terminated before completion is the Anambra rural infrastructure, because of poor performance of the contractors. It is pertinent to mention that this project had a complex design, lacking detailed designs and involving multi sectoral activities of water supply, electrification and industrial estates and several executing agencies under a joint implementation unit. The division of Anambra state into three states (Anambra, Enugu and Ebonyi) during the implementation period increased the number of authorities from three executing agencies to nine ones with complications of activities divisions and project management. 2.5.9 The lessons learnt from previous Bank Portfolio experience, which are integrated in the design of the current intervention include: (i) The need to ensure quality at entry through proper design and appropriate implementation arrangement, (ii) Vigorous analysis of the implementation capacity of the executing agencies with a view to provide an appropriate package of institutional support, capacity building and technical assistance, (iii) Provision of appropriate training on procurement and disbursement procedures, a workshop was conducted in July 2007 by the Bank to the executing agencies’ staff including the executing agencies considered under the present intervention, (iv) provision to audit the project account using external auditors in collaboration with the Auditor General, and (v) Close supervision and monitoring of implementation with greater involvement of the ADB’s Nigeria Filed Office (NGFO); more delegation of authorities will be given to NGFO and it will be also provided with a long term water and sanitation consultant to ensure efficient involvement and timely commencement of the present intervention. 3. THE RURAL WATER SUPPLY AND SANITATION SUB-SECTOR 3.1 The National RWSS Programme 3.1.1 Nigeria, through a financial assistance from the Bank, has developed, in 2005, a National RWSS programme together with a Programme Implementation Manual (PIM). The National programme is a plan that consolidated on the existing instruments including policy, RWSS Strategic Framework (SFI), and poverty reduction NEEDS. The National RWSS Programme included detailed investment Sub-Programmes by State. It is a fully fledged programme that follows a staged implementation incorporating capacity building, institutional reform, facilitation, advocacy, and resource mobilization. The formulation of the programme was preceded by a preparation of a rapid water sector assessment, in 2003, which was financed by the Bank as well. The assessment enunciated the existing situation of water resources potential, cross cutting issues and development in water supply and sanitation. 3.1.2 The Programme design was based on demand responsive approach following the decentralization policy and focusing on the tripartite partnership involving (i) local Government, (ii) communities, and (iii) independent service providers, through consultative,

12

participatory and consensus building process. In addition, the programme design underpinned on community-based management and procurement arrangement to speed up implementation and enhance overall O&M performance, by adopting appropriate technologies suitable for rural communities. The programme supports the scaling up of RWSS operations presently pioneered by EC, DFID, UNICEF and JICA in some states to cover the whole country. 3.1.3 The RWSS Programme covers the entire rural areas in the 36 States and the Federal Capital Territory of Abuja (FCTA) with 774 Local Government Areas (LGAs). The country has high social and cultural diversity with more than 350 ethnic groups. There are also high disparities and uneven development between different States. The number of States to participate in the Programme depends on the availability of funds from internal and external sources, willingness of the States to participate and their fulfillment of the compliance criteria in line with the State Economic Empowerment Development Strategy (SEEDS). However, the selection of LGAs and communities in the participating States is an integral part of the Programme implementation and follows a process of demand-driven self-selection, as specified in the PIM. 3.1.4 A SEEDS benchmarking exercise was carried out by the National Planning Commission (NPC) as a guidance on states performance. During this exercise, all States were analyzed and rated against a set of 4 benchmarks viz: a) Policy (20 marks), b) Budget & Fiscal Management (40 marks), c) Service Delivery (20 marks) and d) Communication & Transparency (20 marks). The weighting accorded to each benchmark indicated the level of importance attached to it. The final outcome of this exercise concluded on 16 March 2006 that 13 States viz: Anambra, Cross River, Ebonyi, Enugu, Ekiti, FCTA, Jigawa, Kaduna, Kano, Lagos, Osun, Ondo and Yobe, emerged as meeting a minimum standard of 25% in all the 4 benchmarks. The selection of states for RWSS interventions is guided by the results of the SEEDS benchmarking exercise. 3.1.5 The Programme covers the period from 2006 up to 2015, in two phases of 5 years. It is assumed that all States would have to be phased in and capacitated to implement the programme at full-scale by the end of 2010. The targets are to increase water service coverage from 43% to 80 % and 100% for the years 2010 and 2015, respectively. For sanitation, the targets are to increase the coverage from 32% to 60% and 90% for years 2010 and 2015, respectively. Individual state targets follow the same national targets. The additional population to be served with improved water and sanitation facilities by the end of 2015 is 67.54 million and 63.30 million, respectively. 3.1.6 The key output areas identified under the National RWSS Programme are: (1) Institution Building, (2) Training and Competence Building, (3) RWSS Service Delivery, and (4) Research and Development. The water supply options will include individual household rainwater harvesting, dug well, borehole with hand pump, mechanized borehole scheme using wind, solar, diesel or electric power, and spring development with stand posts. The programme will encourage the construction of improved sanitation latrines with greater choice of technologies including Sanitary Platform (Sanplat), single deep pit VIP and traditional latrines. The unit prices of the technology options for different income groups are presented in Annex 6. The Programme is expected to provide the following facilities: (i) 56,408 hand dug wells, (ii) 80,732 boreholes with hand pumps, (iii) 9,207 boreholes with motorized pump, (iv) 4,747,664 household sanplat latrines, (v) 3,165,109 household VIP latrines. The total investment required for the programme to meet the 2015 targets is estimated to be about NGN 267.38 billions (USD 2.09 billions), as shown in table 3.1 below. The investment by state is shown in Annex 7.

13

Table 3.1: Cost Estimate of the National RWSS Programme in NGN million

Output 2006-2010 2011-2015 2006-2015 1 Institution Building 15,123.61 15,123.61 30,247.22 2 Training and Competence Building 760.38 760.38 1,520.75 3 RWSS Service Delivery 141,067.71 93,327.79 234,395.50 4 Research and Development 630,546.60 583.30 1,213.85 Total Cost in NGN 157,582.19 109,795.04 267,377.24 Total Cost in USD 1,231.11 875.77 2088.88

3.1.7 The implementation arrangement utilizes decentralized agencies and assigns regulatory, facilitative and planning roles for government at national and state levels. The Programme will be implemented by the participating states through the RWSS Agencies, in collaboration with the WES/WASH Departments/Units at LGA level and the WASCOMs at community level. The FMAWR will coordinate activities at national level. The National Water Resources Institute (NWRI) together with other training institutions will be used for training and studies. The communities will outsource support for programme implementation from NGOs and private service providers. The country has taken the following steps which will facilitate to expedite launch the programme implementation: • Established the Programme Coordinating Committees at the national level and the

participating state level. • Seconded procurement staff to the RWSS Agencies in the participating states. • Issued letters of commitment by the participating states to the Federal Ministry of

Finance through which they committed in advance a part of their budgeted resources to cover their contributions in RWSS activities under the Programme.

• The RWSS division in FMAWR has been set up using federal funds. 3.1.8 The total financing available to the Phase I RWSS Programme (2006-2010) amounts to USD 325.96 million (UA 215.87 million). The details of financing available are shown in table 3.2 below. This level of financing is far from adequate for meeting 2010 targets. The country should undertake an advocacy action to mobilize funds from internal and external sources in order to meet the financial requirement for the 2006-2010 period. The present intervention will assist the country in this advocacy action.

Table 3.2: Available Financing for Phase I Programme (2006-2010) UA million Areas

ADF 51.00 Yobe and Osun EC (EUR 33.28 million) 2005-2009 27.76 Anambra, Cross River, Jigawa, Kano, Osun and Yobe DFID (GBP 15.00 million) 2002-2008 19.45 Benue, Ekiti, Enugu, Jigawa, Borno, Ebonyi, Kwara and Zamfara UNICEF (USD 11.00 million) 2002-2007 7.29 Several States JICA (JPY 1.574 billion) 8.86 Oyo, Kano and Yobe Water Aid (USD 20.00 million) 13.25 Benue, Plateau, Enugu, Ekiti, Bauchi, and Jigawa Domestic Funding (NGN 16.90 billion) 88.26 31 States Total Available Financing 215.87 Required Investment (USD 1.23 billion) 814.57 Financing Gap 598.70

14

3.2 Bank Group Strategy 3.2.1 The present ADF financing is the first intervention of the Bank in the National RWSS programme and falls under the Bank’s Rural Water Supply and Sanitation Initiative (RWSSI). In line with the RWSSI, the interventions in National RWSS programme will allow to redress the existing lopsided development and investment favoring urban areas and to improve health conditions and eventually contribute towards poverty alleviation in rural areas of Nigeria. 3.2.2 In the past few years, Nigeria made appreciable efforts to fulfill the conditions required for launching the Bank’s RWSSI in the country including: (i) development of policy and strategy, (ii) implementation of institutional reform, and (iii) preparation of the National RWSS programme in consultation with all stakeholders and donors. As mentioned in paragraph 3.1.7 above, the country has taken several steps to consolidate the programmatic approach. In addition, the country demonstrated priority to the RWSS sub-sector, whereby spent in the period from 2004 to 2006 in this sub-sector amounted to NGN 15.00 billions (USD 117.19 million). 3.2.3 The Nigeria Country Strategy Paper (CSP) for 2005-2009 underscored RWSS provision as a key element to achieve the objective of its Pillar II ”stimulating non-oil growth through enhanced infrastructure and agricultural/rural development”, through a three-pronged approach of rehabilitation, expansion and construction of low-cost water schemes and sanitation facilities. This objective is in compliance with the priorities spelled out in the NEEDS and the National RWSS programme as well as in the Bank’s Strategic Plan 2003-2007. 3.2.4 From the strategy directions established in the CSP for Nigeria and the emerging lessons of the Bank’s last Country Portfolio Performance Review (CPPR) in 2005, the number of participating States to be considered by the ADF at any given time would need to be reduced to 2 maximum for effective management taking the following factors into consideration: (i) past Bank’s experience in the States, and (ii) complementarity with other on-going Bank interventions. 3.2.5 Based on the results of the SEEDS benchmarking exercise, the country recommended four states of Yobe, Osun, Cross River, and Jigawa for ADF intervention. It was assessed that this selection provides opportunity for complimentarity of the present RWSS intervention with HSDP in Yobe, CPRP in Osun, NPFSP and RAMP in Cross River and NFDP in Jigawa. Also, the recommended states by the country are in line with the CSP of Nigeria and the Bank’s CPPR of 2005 as mentioned in paragraph 3.2.4 above. Further review during the Bank’s pre-appraisal mission of August 2006 revealed that the two states of Yobe and Osun are ready for implementation on priority basis. The priority criteria as indicated in the National RWSS programme included: (i) Giving priority to RWSS in SEEDS, (ii) Streamlining all RWSS activities under the RWSS Agencies umbrella, (iii) Low access to safe RWSS, (iv) Prevalence of water and sanitation related diseases, and (v) Preparedness of Institutional reform. The Cross River and Jigawa states need to be further prepared in terms of institutional arrangement and capacity building for future intervention. It is relevant to mention that these two states are currently receiving assistance from EC/UNICEF/WATERAID, which is focused on institutional support. Moreover, they are expected to receive facilitation support from DFID. All these efforts will assist preparation of the Cross River and Jigawa States for the next ADF intervention.

15

4 SUB-PROGRAMMES IN YOBE AND OSUN STATES 4.1 Concept and Rationale 4.1.1 The sub-programmes in Yobe and Osun states constitute the first major undertaking towards operationalising the National RWSS Programme. The sub-programmes rationale follows the National RWSS Programme and is based on demand driven approach and decentralized implementation. Cost recovery principle will be adopted to ensure sustainability of services in the long run. Basically, communities will contribute about 5% of the capital cost of water schemes and undertake a full responsibility for household sanitation and O&M activities. The sub-programmes are designed to go beyond mainstreaming gender principle to plan strategic actions on how to integrate gender concerns at the level of policy, institutions and community organizations. To ensure efficient service provision, research studies will be undertaken on appropriate technologies, water quality issues, hygiene improvement models, sustainable O&M mechanisms, private-public partnership, impact on health and gender issues and environment. 4.1.2 The selection of the individual LGAs and within them Communities to benefit from the sub-programmes in Yobe and Osun states is an integral part of the implementation activities. It will follow demand-driven process of self-selection, as established in the National RWSS Programme and as presently being piloted under UNICEF-supported projects in Nigeria, whereby interested LGAs are informed and capacitated to make an initial assessment of their needs and priorities and submit a simple application to the State. Once LGAs have been selected, applying agreed criteria, the same process will be carried out at community level. The criteria to be used in the self-selection process for LGAs are establishment of WES unit and commitment to open a bank account. For communities, the selection criteria include commitment to form a WASCOM with a bank account. In order to ensure women participation and in line with the gender policy, at least 30% of the WASCOMs members are required to be women. The project cycle is detailed in the Programme Implementation Manual (PIM). 4.1.3 Lack of adequate sanitation facilities has been identified as one of the major factors contributing to poor health conditions. The Sub-Programmes will encourage householders, with due consideration to the poor and vulnerable groups, to build improved sanitation facilities. Support will be also provided to construct and manage school and public sanitation facilities. This will go hand in hand with the introduction of hygiene promotion covering hygiene behavior, solid waste management, drainage and other sanitary risks in rural areas. 4.1.4 Service delivery will be enhanced and accelerated with timely and results-oriented capacity building inputs, based on a participatory assessment of the existing situation including identification and subsequent definition of the appropriate roles and responsibilities of the public institutions, local private sector service providers, communities and civil organizations. The capacity building inputs will also support the process of mainstreaming sector policies. The service delivery will be also supported with a water points and sanitation survey to ascertain the situation on the ground in terms of community organization, service types, population served, affordability and functionality. This survey will result in establishment of a reliable data base, which will help verify the major rehabilitation and investment needs as well as develop a sustainable O&M system.

16

4.1.5 The Government has, with the assistance from UNICEF, standardized and started manufacturing two hand pumps (RUWATSAN I and RUWTSAN II). A group of suppliers are being encouraged to establish a distribution network system. The present intervention under ADF financing will supplement this initiative through establishment of a supply chain including manufacturers and suppliers/distributors of hand pumps and spare parts. 4.1.6 To accelerate the implementation, most of the procurement of goods, works and services will adopt National Competitive Bidding (NCB), National Shopping (NS), shortlisting, and Direct Purchase (DP) methods. Use will also be made of the Bank’s post review procedures for small contracts, which allow the Executing Agencies to proceed with procurement process without obtaining the Bank’s prior “no objection” for contracts award. Disbursements will be expedited through the use of Special Accounts and progress based replenishment. Technical Assistance (TA) will be provided to the Executing Agencies to ensure that the start-up activities are implemented in time. The Bank will launch the sub-programmes immediately after signing of the loan agreement and will carry out intensified supervision activities. The Bank’s Field Office in Nigeria (NGFO) will play a crucial role in monitoring and evaluation of the sub-programmes through providing technical advice and guidance to the Executing Agencies on the Bank’s loan administration procedures, particularly procurement and disbursement processes, and will participate in the annual review and maintain regular dialogue with the donors, Executing Agencies and Federal Government.

4.2 Area and Target Beneficiaries 4.2.1 The present ADF intervention covers two states of Yobe and Osun. Yobe is a northern state and has a land mass area of 47,153 Km2. The state has a flat terrain to the south west and scattered rugged hills to the south and south east. Yobe has a wide variability in climate, with its unique semi arid to the south and arid conditions to the north which are associated with sahel savannah and scrub vegetation. The state is divided into 17 LGAs, with the state capital in Damaturu, each headed by an executive chairman. Yobe is essentially an agrarian state with most citizens engaged in small scale farming and livestock. Current data indicate that health facilities are available to 58% of the urban and 29% of the rural population. Primary school enrollment is 60% of school age children. Rural water coverage is 46.4% and rural sanitation coverage is 33.6%. 4.2.2 Osun is located in the South western part of Nigeria; it covers an area of approximately 14,875 Km2. The state is made up of three senatorial districts that are further divided into 30 LGAs. The indigenes of the state belong to the Yoruba tribe and are composed of many sub- ethnic groups like Ifes, Ljesas, Oyos and Igbominas. There are more than 200 towns, villages and other settlements. The state capital is Osogobo. Current literacy rate is about 49 % with a high primary school enrollment rate of 91.75. The mainstay of the economy is agriculture and the farmers produce sufficient food and cash crops for domestic consumption and as inputs for agro allied industries as well as for export. The rural water coverage is 44.7% and rural sanitation coverage is 29.2%. 4.2.3 The immediate beneficiaries will be the rural population in the two states of Yob and Osun of about 3.32 million people (2015 population) comprising 2.56 million in Yobe and 0.76 million in Osun. The beneficiaries include subsistence farmers and rural underemployed people. The majority of the beneficiaries are rural people living below the poverty line, including poor women, children, youth and vulnerable groups. The other beneficiaries are the RWSS institutions through provision of institutional support and capacity building as well as NGOs and consultants/contractors who will be involved in implementation.

17

4.3 Strategic Context 4.3.1 The present intervention is part of the National RWSS Programme that provides a sector-wide programme to advocate mobilization of resources from stakeholders and donors towards the achievement of the national goals and MDGs towards the water and sanitation demands of a fast growing population. The sub-programmes will support policy adoption and reform implementation, including legal, institutional, financial and operational aspects. 4.3.2 The sub-programmes are in compliance with the States National Economic Empowerment Development Strategies (SEEDS), which emphasis sustainable service delivery of water supply and sanitation as an important element towards achieving improved health and labor productivity in fighting poverty. The sub-programmes are also in conformity with the National Water Supply and Sanitation Policy and National RWSS Strategic Framework for Implementation (SFI). 4.3.3 The sub-programmes are in line with the 2005-2009 Country Strategy Paper (CSP). It falls under the second CSP pillar “stimulating non-oil growth through enhanced infrastructure and agricultural/rural development” which aims at achieving rapid growth through increased water supply and sanitation services, thus contributing to the NEEDS’ higher level objective of creating a more conducive environment for private sector activity. The Government is expected to maintain priority support of the RWSS sector by providing adequate budgetary allocation. 4.3.4 The sub-programmes are in line with the Bank’s Rural Water Supply and Sanitation Initiative (RWSSI) and the Policy of Integrated Water Resources Management (IWRM). Furthermore, the sub-programmes are in line with the Bank’s Strategic Plan 2003-2007, which considers the water supply and sanitation one of the key sectors to strengthen the foundation for sustainable development. 4.4 Objective 4.4.1 The objective is to: (i) increase and sustain provision of safe water supply and adequate sanitation services to the rural population in the states of Yobe and Osun, and (ii) build institutional capacity for effective management and implementation. The sub-programmes will help provide 2.56 million people in Yobe and 0.76 million people in Osun with safe water supply; as well as 2.3 million people in Yobe and 0.68 million people in Osun with hygienic sanitation facilities. 4.4.2 The sub-programmes will increase water access rate from 46.40% in Yobe and 44.72% in Osun to 100% of their 2015 population, which accounts for 3.60% of the national water coverage. The sanitation coverage will be increased from 33.60% in Yobe and 29.20% in Osun to 90% of their 2015 population, with 3.23% contribution to the national target.

18

4.5 Description and Components

Overview 4.5.1 The sub-programmes of Yobe and Osun states will be supported through parallel financing from the ADF and other donors. Currently, donors actively involved in RWSS in Yobe state are EC, UNICEF and JICA. In Osun state, the active donors are EC and UNICEF. UNICEF is managing the EC funding. The interventions from other donors are on going and play an important role in establishment of decentralized services and strengthening local capacities. Primarily EC/UNICEF are involved in grass roots effort to establish and strengthen local village level WASCOMs and LGA level WASHs with support in facilities and training. JICA is focusing on groundwater development through providing a rotary drilling rig, complete with tools and the drilling crew. This will provide the opportunity for on-the-job training for the RWSS staff. The financing arrangement is shown in table 4.1 below.

Table 4.1: Financing of Yobe and Osun States Sub-Programmes in UA million

Yobe Osun FMAWR Total Total cost (NGN 13.25 billion) 48.11 17.92 3.19 69.22 ADF 36.53 11.94 2.53 51.00 EC (Euro 3.67 million) 2005-2009 1.07 2.17 ----- 3.24 UNICEF (USD 0.40 million) 2002-2007 0.13 0.13 ----- 0.26 JICA (JPY 750 million) 4.22 ----- ----- 4.22 Domestic Funding (NGN 1.98 billion) 6.16 3.68 0.66 10.50

*Funds by state are allocated on demand driven basis. 4.5.2 The scope of the sub-programmes for ADF intervention will involve various activities focusing on water supply and sanitation development, capacity building, community mobilization, sensitization, and hygiene education. At the federal level, support will be provided to enhance the process of mainstreaming sector policies, building capacity for coordinate interventions and effective monitoring and evaluation. The sub-programmes consist of three components: (i) Infrastructure Provision, (ii) Capacity Building and (iii) Management Support.

Component I: Infrastructure Provision 4.5.3 Water Supply: Rehabilitation and construction of new water facilities will be initiated and gradually accelerated in parallel with the training and institutional building activities which will be provided under the capacity building component of this intervention. A water points and sanitation survey using GIS system will be undertaken to verify requirements for rehabilitation and new construction of water facilities. The survey will include: (i) Identification of all rural water supply and sanitation schemes and their exact location using GPS for entry into a computerized GIS system, (ii) Establishment of the history of the present community ownership and management system in place for each scheme, (iii) Establishment of the functionality and rehabilitation needs of each schemes, and (iv) Analysis of data and affirmation of the rehabilitation and investment needs. The results of the water points and sanitation survey will be fed into the Monitoring and Evaluation (M&E) system as a baseline data. Under the Bank financing, the number and type of water schemes rehabilitated and constructed will be as follows: (i) HDW: 1754 in Yobe and 605 in Osun, (ii) BH/HP: 1570 in Yobe and 542 in Osun, and (iii) MBH: 309 in Yobe and 96 in Osun.

19

4.5.4 Household Latrines: the sub-programmes will encourage the construction of household latrines to align with water points. The sanitary platform will be made available through the sani-centers at an affordable price. Support will also be provided for the existing community sani-centres, managed as business, or to establish new ones, which will link up consumers with the service providers to ensure supply chain of necessary spare parts and materials. As indicated earlier, the water and sanitation baseline survey using GIS system will be undertaken to develop the sanitation database that will cover physical assets, their state of repair, and behavior patterns and attitude. Research into further sanitation technologies will be provided under the Management Support component. At the federal level, support will be provided regarding development of options and financial mechanisms for enhancing construction of low cost sanitation facilities. The number and type of household latrines to be constructed in the states are as follows: (i) Sanplat latrines: 142817 in Yobe and 48412 in Osun, and (ii) VIP latrines: 47091 in Yobe and 11260 in Osun. 4.5.5 RWSS in Schools and Public Places: Under this sub-component, provision will be made to construct water and sanitation facilities in schools and public places. This provision will be accompanied with hygiene education program for safe use and proper maintenance of the new facilities using the internationally-adopted approach of Focusing Resources on Effective Health (FRESH). This sub-component will also promote the establishment of children’s school environmental clubs. Training of actors including teachers, school Parent-Teachers Associations (PTAs), interest based associations and clubs on water and sanitation aspects will be carried out under the capacity building component. Under Bank financing the number and type of water points and sanitation facilities to be constructed in the states are as follows: (i) Water points (BH/HP) in schools: 357 in Yobe and 110 in Osun, (ii) VIP latrines in Schools: 879 in Yobe and 318 in Osun, (iii) Public water points (BH/HP): 357 in Yobe and 110 in Osun, and (iv) Public latrines: 978 in Yobe and 318 in Osun.

Component II: Capacity Building 4.5.6 Community Mobilization and Hygiene Promotion: This sub-component will involve support for community development including establishing community management structures, and training of communities. The training will include development of a comprehensive action plan, training on hygiene behavior, community training on gender issues in the operation and management of water systems and Operation & Maintenance of RWSS facilities. Provision of services for community mobilization, gender mainstreaming and hygiene promotion at the community level would be carried out by LGAs, NGOs and Community-Based Organizations (CBOs)’s personnel trained in participatory and social marketing techniques and methods. At the federal level, support will be given towards popularization and advocacy of Sector Policy and RWSS Programme as well as development of Information, Education, Communications (IEC) manuals and social marketing tools. 4.5.7 Institutional Support: Institutions at various levels will be capacitated and strengthened in terms of functional systems essential for sustainable and effective development of the water sector. Support will be also provided regarding development of collaboration mechanisms among Federal, States, LGAs, communities, NGOs and the private sector. The existing Water Supply and Sanitation Committees (WASCOMs) and new ones to be established will be strengthened in terms of board members, revenue collection, bank account, and legally registering as Community Based Organizations (CBOs). The WES/WASH units in the LGAs will be strengthened to upgrade skills in the field of planning and community mobilization. The RWSS agencies at state level will be enhanced regarding

20

organizational structure, their tasks and responsibilities in the implementation of the sub-programmes. At federal level, the RWSS Division of the FMAWR will be assisted in the overall coordination of the sub-programmes across Ministries and States including overall Monitoring and Evaluation (M&E), establishment of Management Information System (MIS), and carrying out nation wide studies & surveys. The public and private RWSS training institutes, such as the National Water Resources Institute (NWRI) and Polytechnics, will be also supported to take on their role in training activities. The training needs and equipment purchase for each participating institutions as well as re-organizations, revision of staffing structures and job descriptions will be based on Participatory Assessment of Capacities, Roles & Mandates which will be conducted under this sub-component. 4.5.8 Training and Competence Building: Support will be provided to have a comprehensive community development program for reorientation and upgrading of skills towards advocacy, strategies, gender sensitivity, gender approaches, mobilization skills, training of WASCOMs, participatory planning and monitoring. Training will be provided to RWSS Agencies and LGA staff on budgeting, planning and response to community applications as well as the means of collaboration with NGOs. NGOs will be supported to constitute themselves, consolidate their strategies and improve their competence. At the state level, the RWSS agencies managerial and administrative competence will be strengthened by providing appropriate training in the following areas: (i) Community mobilization including participatory methodologies, advocacy and planning, (ii) Water supply including hydrological surveys and appropriate water technologies, (iii) Sanitation including appropriate sanitation technologies, modern methods of hygiene promotion and community motivation, (iv) Approaches to mainstreaming gender including areas as gender monitoring tools and gender relation change indicators, and (v) Management including computer skills, GIS database, contract management, cost accounting, cash flow management and monitoring. At the federal level, the RWSS staff will be trained on institutional development, policy and strategy development, engineering economics, water resources management, donor coordination mechanisms, water quality management, capacity building, MIS, financial management, computer skills, planning, budgeting and advocacy skills. The capacity development will be carried out by training institutions and Polytechnics in collaboration with NGOs as Trainers of Trainers (ToT). The Community Development Officers (CDO) at LGA level will be reoriented and trained, who will in turn mobilize communities, train WASCOMs and follow-up community based O&M activities. Women members of WASCOMs would be also given a separate training to improve their capacities and skills to effectively participate in community decisions over water resource management.

Component III: Management Support 4.5.9 Technical Assistance (TA) and Consultancy Services: Long term technical assistance will be provided both at Federal and State levels to set up the implementation arrangements, procedures and guide the sub-programmes execution and support in capacity building. This will cover the following areas of expertise: (i) Management, financial, procurement, environmental aspects, and community development; (ii) Human Resources Development (HRD); and (iii) Participatory Assessment of Institutions Capacities, Roles and Mandates. To fast track the launching of the sub-programmes, the state governments and FMAWR through the federal government requested the Bank to use Advance Action for the Acquisition of consultancy services (AAA) to acquire the technical assistance to be financed by the ADF in the areas of programme management, financial administration and management information system and the Bank has approved the request. Short-term consultancy services will be provided in areas like design, establishment and operation of MIS.

21

4.5.10 Studies and Research: This sub-component will include various studies with a view to develop and improve on sub-programmes processes, strategies, technologies and systems. The areas of focus will be: (i) Appropriate water supply and sanitation technologies for application in various hydrogeological and socio-cultural settings, (ii) Water quality issues, (iii) Hygiene improvement models, (iv) Development of new and improved tools, (v) Public Private Partnerships (PPP) for hygiene promotion, and (vi) Impact of water supply and sanitation interventions. The implementation of the studies will be decentralized involving NWRI, universities, polytechnics, NGOs and private institutions. 4.5.11 Monitoring and Evaluation (M&E): Funds will be provided to develop MIS and monitoring system, water points and sanitation survey, periodic review and workshops, joint evaluation exercises with stakeholders, database development, WASH clinic meetings and impact evaluation. 4.5.12 Management Expenses: Funds will be allocated to cover operating costs and various expenses of sub-programmes management at Federal, State and LGA levels relating to office rental, office equipment, office furniture, staff allowances and other logistic support. Staff salaries will be met by the relevant Government institutions at the relevant levels. 4.6 Impact on Environmental and Social Issues 4.6.1 The sub-programmes will contribute to a rural community development and lead to an overall environmental and health-improvement. In accordance with the Bank’s environmental and social safeguard policies, the rural water supply and sanitation sub-programmes have been classified under category 2. As a consequence, an environmental and social management plan (ESMP) has been prepared by the country through a consultant in accordance with the national policies and the Bank’s environmental and social safeguard policies and guidelines. The document has been disclosed in the country for 21 days in accordance with the legal national requirements and in the Bank’s public information center for 30 days prior to Board approval. Annex 8 provides a summary of the ESMP.

Positive and Negative Impacts 4.6.2 Provision of adequate potable water and improved sanitation facilities as well as promotion of hygiene education, environmental awareness, protection of catchment areas, sensitization of the population on water borne diseases, and promotion of water conservation will contribute to improve the living standards of the rural population of Yobe and Osun. Therefore, implementing these sub-programmes through the construction of physical facilities including motorized and hand pump boreholes and sanitation facilities including household latrines and public latrines will lead to improve the health standards of selected communities. During the field appraisal and discussions held with all stakeholders, it was concluded that the sub-programmes will invariably contribute to the improvement of the physical and social environment and the living conditions of the communities at large. 4.6.3 Implementation of the sub-programmes will lead to limited negative impacts. These impacts are of the following nature: i) impacts mainly occurring during construction phase - air pollution through dust, land surface pollution through flooding, damage to existing paved and unpaved roads, soil degradation/erosion, noise pollution and occasional destruction of property due to drilling of water wells e.g., loss of cash crops, trees, vegetation and natural

22

habitats, loss of jobs to water vendors; and ii) impacts observed during opera–ion - over-exploitation of groundwater resources leading to lowering of the water table and possible shift in groundwater equilibrium, land subsidence and soil instability, inadequate drainage and spillage leading to creation of unhealthy environment around the water and sanitation facilities, pollution of the groundwater if the sanitation facilities are not well sited and located at an appropriate distance from water points, and inability of the poor and economically weak segment of the population to pay for the water they consume. These impacts could be easily mitigated by well defined mitigation measures.

Mitigating and Enhancement Measures 4.6.4 During the implementation phase, the mitigating measures will include the proper design and ensuring that wells and boreholes are protected and the latrines are properly sited and constructed. All the boreholes and standpipes will be integrated with adopted standard-designed well pads and drainage channels to carry wastewater into soak away. Monitoring of the aquifers will ensure avoidance of over-exploitation of the groundwater and prevent soil subsidence. Regular water quality analyses will be undertaken by accredited state laboratories on behalf of the RWSS Agencies in compliance with the national and state wide potable water standards. Intensive sensitization programs have been incorporated into the sub-programmes to ensure adequate capacity building of the rural communities in general and women and school children and teachers in particular, on environmental health and impact of water-borne diseases and their prevention. These awareness and capacity building programs will empower communities to better manage and maintain their water points and toilet facilities. The program will also cater for the management of catchment water basins through the support to communities with appropriate tree species. The basin management activities will assist to contain soil erosion and help to sensitize the population on the significance of these environmentally sensitive catchment areas and the need and methods for its protection. This initiative will complement the efforts being made by the Forestry Departments in the Ministries at the State level to arrest the problem of desertification and deforestation as well as environmental degradation. The cost of environmental mitigation in Osun and Yobe states are estimated at seven hundred thirty seven thousand and eight hundred fourteen USD (USD 737,814) and one million two hundred fifty three thousand and nine hundred seventeen USD (USD 1,253,917), respectively. The total cost for the two states is estimated as one million, nine hundred ninety one and seven hundred thirty one USD (USD 1,991,731). The cost for mitigation of social capacity building, training; awareness campaigns; management and monitoring is included under relevant components of the sub-programmes.

Institutional Arrangement and Capacity Building 4.6.5 In order to reinforce the follow up of the environmental and social impacts, a Community Development/Environment Technical Assistants (TAs) will be recruited by the sub-programmes to train the Environment and Sanitation Officers, posted at the RWSS Agencies, and those at the WES Departments and the WASCOMs. These TAs will also monitor and supervise, together with the environmental health officers the implementation of the ESMP as well as the preparation and supervision of the environmental health and sanitation sensitization campaigns. He/She will also prepare, in collaboration with the State Environmental Protection Agencies and Department (SEAD) and the Federal Ministry of Environment (FEMA), a detailed checklist and environmental and social monitoring program, with clearly defined indicators for implementation. He/She will also be responsible for guidance and supervision of the WASCOMs (Water and Sanitation Committees) to draft guidelines and rules for accessing and

23

protecting the water facilities, preventing inappropriate wastewater disposal and encouraging household members to build and use latrines. The SEAD would be solicited to advise on some unexpected impacts that could ensue during the sub-programmes implementation. 4.7 Cost Estimates 4.7.1 The total cost of the sub-programmes under ADF intervention, excluding taxes and customs duties, is estimated at UA 57.55 million (NGN 11,015.28 million), comprised of UA 25.32 million (44%) in foreign exchange and UA 32.23 million (56%) in local currency. The reason for the high local cost is that most of materials and equipment will be sourced from the local market. It is also expected that substantial services will be sourced locally. The cost distribution between Yobe state and Osun state, and the FMAWR is based on activities required for each entity as well as population of the states. Table 4.2 below presents the summary of the sub-programmes costs. The detailed cost breakdown is given in Annex 9. For the purpose of presenting the costs in accordance with Bank formats, all items have been priced in USD and converted into NGN and UA at the April 2007 exchange rate. Physical contingency has been calculated based on 10% annual rate and 3% price escalation throughout the implementation period.

Table 4.2: Summary of Cost Estimates by Component

Components NGN million UA million % F.C L.C Tot F.C L.C Tot 1 Infrastructure Provision 3,072.33 4,298.81 7,371.15 16.05 22.45 38.50 81.88 1.1 Water Facilities 2,953.62 3,230.39 6,184.01 15.43 16.87 32.30 1.2 Sanitation Facilities 93.46 841.14 934.60 0.49 4.39 4.88 1.3 Environmental Works 25.25 227.28 252.54 0.13 1.19 1.32 2 Capacity Building 490.86 478.33 969.20 2.56 2.50 5.06 10.76 2.1 Community Mob and Hyg Promo 35.24 317.17 352.41 0.18 1.66 1.84 2.2 Institutional Support 118.86 112.23 231.09 0.62 0.59 1.21 2.3 Equipping RWSS Institutions 287.38 31.68 319.06 1.50 0.17 1.67 2.4 Training 49.39 17.26 66.64 0.26 0.09 0.35 3 Management Support 399.98 261.80 661.79 2.09 1.37 3.46 7.36 3.1 Monitoring and Evaluation 65.56 39.22 104.77 0.34 0.20 0.55 3.2 TA and Consultancy Services 156.98 46.29 203.27 0.82 0.24 1.06 3.3 Studies and Research 32.13 139.97 172.10 0.17 0.73 0.90 3.4 Management Expenses 145.32 36.33 181.64 0.76 0.19 0.95 Base Cost 3,963.18 5,038.95 9,002.13 20.70 26.32 47.02 100.00 Physical Contingencies 396.32 504.52 900.84 2.07 2.65 4.72 Price Contingencies 488.18 624.33 1,112.51 2.55 3.26 5.81 Total Cost 4,847.68 6,167.80 11,015.48 25.32 32.23 57.55 Yobe State 3,405.01 4,452.08 7,857.09 17.79 23.25 41.04 71.31 Osun State 1,126.61 1,424.27 2,550.88 5.88 7.44 13.32 23.15 FMAWR 316.06 295.45 611.51 1.65 1.54 3.19 5.54

4.7.2 Table 4.3 below presents the summary of the costs by category of expenditure. The details are shown in the Provisional List of Goods, Works and Services in Annex 10.

24

Table 4.3: Summary of Cost Estimates by Category of Expenditure in UA million Categories Yobe Osun FMAWR Total F.C. L.C. Tot. F.C. L.C. Tot. F.C. L.C. Tot. F.C. L.C. Tot. 1 Works 14.88 20.74 35.62 4.81 6.78 11.59 0.00 0.00 0.00 19.69 27.53 47.22 2 Goods 1.17 0.13 1.30 0.48 0.05 0.54 0.15 0.02 0.16 1.80 0.20 2.00 3 Services 1.39 2.29 3.68 0.54 0.59 1.13 1.17 1.44 2.61 3.10 4.32 7.42 4 Miscellaneous 0.35 0.09 0.44 0.05 0.01 0.06 0.34 0.08 0.42 0.73 0.18 0.91 Total Cost 17.79 23.25 41.04 5.88 7.44 13.32 1.65 1.54 3.19 25.32 32.23 57.55

4.8 Sources of Financing and Expenditure Schedules 4.8.1 The ADF will fund UA 51.00 million and the local contributions will be UA 6.55 million, as shown in table 4.4 below. The ADF contribution represents 88.6% of the total cost covering UA 25.32 million (100%) of the foreign cost and UA 25.68 million (79.68%) of the local cost. The local contributions exceed 10% of the total cost and will cover the remaining local cost including part of the physical costs and management expenses. The local contributions follow the Nigerian cost sharing formula for capital cost stipulated in the national water supply and sanitation policy: 50% Federal Government, 25% States, 20% LGAs and 5% Communities. Community contribution will be provided in any combinations of cash, kind or labor. In line with the National RWSS Programme, the financing strategy for household sanitation in rural areas is the responsibility of individual families. The present sub-programmes will promote and generate demand for improved household sanitation as well as supporting the intermediary of the san-centers/artisans to provide concrete platform at affordable prices for widespread construction of latrines.

Table 4.4: Sources of Financing Source NGN million UA million % F.C L.C Total F.C L.C Total Yobe ADF 3,405.01 3,589.28 6,994.29 17.79 18.74 36.53 89.00 Federal Government 0.00 427.40 427.40 0.00 2.26 2.26 5.50 State Government 0.00 215.70 215.70 0.00 1.13 1.13 2.80 LGAs 0.00 172.56 172.56 0.00 0.90 0.90 2.10 Communities 0.00 43.14 43.14 0.00 0.23 0.23 0.60 Total 3,405.01 4,448.08 7,857.09 17.79 23.25 41.04 100.00 Osun ADF 1,126.61 1,159.80 2,286.41 5.88 6.06 11.94 89.60 Federal Government 0.00 132.24 132.24 0.00 0.69 0.69 5.20 State Government 0.00 66.12 66.12 0.00 0.35 0.35 2.60 LGAs 0.00 52.89 52.89 0.00 0.28 0.28 2.10 Communities 0.00 13.22 13.22 0.00 0.07 0.07 0.50 Total 1,126.61 1,424.27 2,550.88 5.88 7.44 13.32 100.00 FMAWR ADF 316.06 168.82 484.88 1.65 0.88 2.53 79.30 Federal Government 0.00 126.63 126.63 0.00 0.66 0.66 20.70 Total 316.06 295.45 611.51 1.65 1.54 3.19 100.00 Total ADF 4,847.68 4,917.90 9,765.58 25.32 25.68 51.00 88.60 Federal Government 0.00 686.27 686.27 0.00 3.61 3.61 6.30 State Government 0.00 218.82 281.82 0.00 1.48 1.48 2.50 LGAs 0.00 225.45 225.45 0.00 1.18 1.18 2.10 Communities 0.00 56.36 56.36 0.00 0.30 0.30 0.50 Total 4,847.68 6,167.80 11,015.48 25.32 32.23 57.55 100.00

4.8.2 The sources of financing by component and by category of expenditure are presented in table 4.5 and table 4.6 below. The financing of part of the local costs by the ADF is justified

25

on the following ground: (i) The nature of the activities requires inputs that are largely available locally, and (ii) Domestic resources are far from adequate and the country’s capacity to finance sub-programmes of this size is limited.

Table 4.5: Sources of Financing by Component in UA million Components Yobe Osun FMAWR Total

Tot ADF Loc Tot ADF Loc Tot ADF Loc Tot ADF Loc 1 Infrastructure Provision 29.06 26.20 2.86 9.43 8.51 0.92 0.00 0.00 0.00 38.50 34.72 3.78

1.1 Water Facilities 24.47 21.69 2.78 7.82 6.94 0.88 0.00 0.00 0.00 32.30 28.64 3.66 1.2 Sanitation Facilities 3.76 3.76 0.00 1.12 1.12 0.00 0.00 0.00 0.00 4.88 4.88 0.00 1.3 Environmental Works 0.83 0.76 0.07 0.49 0.44 0.04 0.00 0.00 0.00 1.32 1.20 0.12

2 Capacity Building 2.62 2.15 0.47 0.85 0.73 0.11 1.59 1.24 0.35 5.06 4.13 0.93

2.1 Community Mob & Hyg Promo 1.18 0.75 0.42 0.27 0.17 0.10 0.39 0.25 0.14 1.84 1.18 0.66 2.2 Institutional Support 0.21 0.17 0.04 0.07 0.06 0.01 0.92 0.74 0.19 1.21 0.97 0.23 2.3 Equipping RWSS Institutions 1.08 1.08 0.00 0.45 0.45 0.00 0.14 0.14 0.00 1.67 1.67 0.00 2.4 Training 0.15 0.14 0.01 0.05 0.05 0.00 0.14 0.12 0.02 0.35 0.31 0.04

3 Management Support 1.84 1.49 0.35 0.58 0.49 0.09 1.03 0.84 0.19 3.46 2.82 0.64

3.1 Monitoring and Evaluation 0.33 0.28 0.05 0.03 0.03 0.00 0.19 0.16 0.03 0.55 0.47 0.08 3.2 TA and Consultancy Services 0.55 0.51 0.04 0.31 0.28 0.03 0.20 0.18 0.03 1.06 0.96 0.10 3.3 Studies and Research 0.54 0.35 0.18 0.12 0.08 0.04 0.24 0.17 0.07 0.90 0.61 0.29 3.4 Management Expenses 0.42 0.34 0.08 0.12 0.10 0.02 0.41 0.34 0.07 0.95 0.78 0.17

Base Cost 33.52 29.84 3.68 10.85 9.73 1.12 2.62 2.08 0.54 47.02 41.67 5.35 Physical Contingencies 3.36 2.99 0.37 1.09 0.98 0.11 0.26 0.21 0.05 4.72 4.19 0.53 Price Contingencies 4.16 3.70 0.46 1.38 1.23 0.15 0.31 0.24 0.07 5.81 5.14 0.67 Total Cost 41.04 36.53 4.51 13.32 11.94 1.38 3.19 2.53 0.66 57.55 51.00 6.55

Table 4.6: Sources of Financing by Category of Expenditure in UA million

Components Yobe Osun FMAWR Total Tot ADF Loc Tot ADF Loc Tot ADF Loc Tot ADF Loc 1 Works 35.62 32.12 3.50 11.59 10.46 1.13 0.00 0.00 0.00 47.22 42.58 4.64 2 Goods 1.30 1.30 0.00 0.54 0.54 0.00 0.16 0.16 0.00 2.00 2.00 0.00 3 Services 3.68 2.76 0.92 1.13 0.89 0.24 2.61 2.03 0.58 7.42 5.69 1.73 4 Miscellaneous 0.44 0.35 0.09 0.06 0.05 0.01 0.42 0.34 0.08 0.91 0.73 0.18 Total Cost 41.04 36.53 4.51 13.32 11.94 1.38 3.19 2.53 0.66 57.55 51.00 6.55

4.8.3 Table 4.7 below presents the expenditure schedule by sources of financing. The expenditure schedules by component and by category of expenditure are shown in table 4.8 and table 4.9 below. Detailed expenditure schedules by component and by category of expenditure are given in Annex 11 and Annex 12.

26

Table 4.7: Expenditure Schedule by Sources of Financing in UA million Source 2007 2008 2009 2010 2011 2012 Total Yobe ADF 0.05 4.81 8.29 10.06 6.90 6.40 36.53 Federal Government 0.03 0.49 0.88 0.70 0.18 0.15 2.26 State Government 0.00 0.17 0.27 0.31 0.20 0.08 1.13 LGAs 0.00 0.13 0.21 0.25 0.16 0.05 0.90 Communities 0.00 0.03 0.05 0.05 0.04 0.04 0.21 Total 0.08 5.63 9.70 11.37 7.48 6.57 41.04 Osun ADF 0.06 2.21 3.16 3.23 1.98 1.30 11.94 Federal Government 0.00 0.22 0.15 0.14 0.10 0.09 0.71 State Government 0.00 0.12 0.08 0.07 0.05 0.04 0.36 LGAs 0.00 0.09 0.05 0.05 0.03 0.02 0.24 Communities 0.00 0.02 0.02 0.01 0.01 0.01 0.07 Total 0.06 2.66 3.46 3.50 2.17 1.56 13.32 FMAWR ADF 0.04 0.56 0.60 0.64 0.40 0.31 2.53 Federal Government 0.01 0.14 0.16 0.17 0.10 0.09 0.66 Total 0.05 0.70 0.75 0.81 0.50 0.40 3.19 Total ADF 0.15 7.58 12.05 13.93 9.28 8.01 51.00 Federal Government 0.04 0.85 1.19 1.01 0.38 0.33 3.63 State Government 0.00 0.29 0.35 0.38 0.25 0.12 1.49 LGAs 0.00 0.22 0.26 0.30 0.19 0.07 1.14 Communities 0.00 0.05 0.07 0.06 0.05 0.05 0.28 Total 0.19 9.02 13.92 15.68 10.15 8.59 57.55

Table 4.8: Expenditure Schedule by Component in UA million

Component 2007 2008 2009 2010 2011 2012 Total 1 Infrastructure Provision 0.00 6.56 11.38 13.07 8.70 7.51 47.221.1 Water Facilities 0.00 5.39 9.36 11.17 7.21 6.49 39.621.2 Sanitation Facilities 0.00 0.85 1.62 1.49 1.25 0.77 5.981.3 Environmental Works 0.00 0.32 0.40 0.41 0.24 0.25 1.622 Capacity Building 0.00 1.55 1.65 1.65 0.80 0.48 6.132.1 Community Mobilization and Hygiene Promo 0.00 0.45 0.56 0.56 0.34 0.33 2.242.2 Institutional Support 0.00 0.37 0.37 0.36 0.22 0.15 1.472.3 Equipping RWSS Institutions 0.00 0.60 0.60 0.60 0.20 0.00 2.002.4 Training and Competence Building 0.00 0.13 0.12 0.13 0.04 0.00 0.423 Management Support 0.19 0.91 0.89 0.96 0.65 0.60 4.203.1 Monitoring and Evaluation 0.00 0.13 0.13 0.27 0.07 0.07 0.673.2 TA and Consultancy Services 0.13 0.39 0.19 0.19 0.19 0.19 1.283.3 Studies and Research 0.00 0.22 0.33 0.27 0.16 0.11 1.093.4 Management Expenses 0.06 0.17 0.24 0.23 0.23 0.23 1.16 Total Cost 0.19 9.02 13.92 15.68 10.15 8.59 57.55

Table 4.9: Expenditure Schedule by Category of Expenditure in UA million

Categories 2007 2008 2009 2010 2011 2012 Total 1 Works 0.00 6.56 11.38 13.07 8.70 7.51 47.22 2 Goods 0.00 0.60 0.60 0.60 0.20 0.00 2.00 3 Services 0.14 1.72 1.76 1.83 1.07 0.90 7.42 4 Miscellaneous 0.05 0.14 0.18 0.18 0.18 0.18 0.91 Total Cost 0.19 9.02 13.92 15.68 10.15 8.59 57.55

4.9 Performance Indicators The Sub programmes have established a set of Performance Indicators covering technical, management, financial and social performance aspects, which are classified into two groups: (i) Achievement Indicator, and (ii) Impact indicators, as described below.

27

(i) Achievement Indicators: (a) Water and Sanitation facilities constructed and rehabilitated, (b) Increase in functionality of WSS systems, (c) Number of water quality tests undertaken, (d) Number and type of training provided, (e) Planned and actual disbursement of funds, (f) Existence of WASCOMs, (g) Total number of beneficiaries, (h) Quantity of the water used per person, (i) Availability of spare parts, (j) Amount of community contribution; (k) Water tariff, (l) Number of households with latrines, (m) Number of women attending WASCSOM meetings regularly, (n) Training of stakeholders in water operation and management accomplished, (o) Number of community members sensitized over gender-related water issues, (p) Number of sensitization seminars and campaigns conducted, and (r) Training of local artisans in the construction of improved latrines.

(ii) Impact Indicators: (a) Reduction in Water borne diseases, (b) Reduction in infant

mortality, (c) Increase in enrollment in Primary schools, (d) Percentage of women in WASHs and WASCOMs, (d) Number of water related economic and social activities, (e) Reduction in the walking distance to collect water, and (f) Population served with sustainable water supply and sanitation facilities.

5 SUB-PROGRAMMES IMPLEMENTATION 5.1 Executing Agencies The Rural Water Supply and Sanitations Agency (RWSSA) of Yobe state and the Rural Water Supply and Environmental Sanitation Agency (RWESA) of Osun state respectively, will be the Executing Agencies under the auspices of the respective State Ministries of Water Resources. At the National level, the Federal Ministry of Agriculture and Water Resources (FMAWR) has the mandate to guide all water sector activities in Nigeria and it will assume the role of coordinator for coordination and facilitation of the sub programmes in the two states and the country at large. The FMAWR has gained experience in managing projects and in procuring civil works and consulting services as well as disbursement procedures under various programmes and projects particularly for the ADB and the World Bank. 5.2 Implementation Arrangements 5.2.1 Implementation at all levels will utilize existing institutional structures with overall guidance from the existing Coordinating Committees at Federal and State levels. The Committees are placed under the Federal/State Ministries of Agricultural and Water resources and included representatives from all stakeholders including the MOF, MOWR, MOH, MOE, and MOENV. The committees will ensure the linkage of current interventions and future activities as well as consistency with policy and sector activities by other donors supporting the RWSS programme. The implementation arrangement of the sub-programmes is presented in Annex 13. 5.2.2 Implementation will be the responsibility of the State RWSS agencies, through utilization of PSP, LGAs, Communities, CBOs and NGOs. All procurement and reporting requirements including disbursement, accounting and auditing shall be the responsibility of the RWSS agencies. In Yobe, the RWSSA has 230 staff consisting of few engineers, hydrogeologists, technologists and a large number of technicians. The RWSSA has adequate capacity for sub-programme management and scaling up UNICEF pilot projects. In Osun, the RWESA has 90 staff with a mix of professionals and technologists. RWSSA and RWESA each established a procurement unit with at least one local Procurement Expert.

28

5.2.3 The sub-programmes managers of RWSS agencies will assume the day-to-day business of monitoring and management and will be responsible for the performance of the sub-programmes implementation. RWSS agencies will sign a performance contract with the managers. The contract will include relevant indicators for assessing the performance of the manager including: (i) Effectiveness date to ensure fulfillment of loan conditions and start up of the physical implementation in time; (ii) Quality of monitoring of procurement plan; (iii) Follow-up and support to the supervising consultant for the execution of different contracts; (iv) Quality of monitoring of the effective implementation of the tasks assigned to staff; (v) Quality of and timely submission of reports; (vi) Quality of monitoring the disbursements including time-limit for processing payment applications, deadline for application payments by the Bank and Government; (vii) Quality of financial and accounting management including internal control, reliability of accounting information system, financial statements and timelines of audit reports., and (viii) The formulation and implementation of Strategic Gender Action Plan by the two states. 5.2.4 The RWSS agencies in collaboration with the participating LGAs will prepare bidding documents and follow up on physical execution. The RWSS agencies have seconded procurement specialists who have experience in procurement activities and management from similar interventions by other donors. The sub-programmes will provide RWSS agencies with logistics and financial resources to enable them fulfill their duties. In addition, technical assistants using AAA in the critical areas of management, procurement and finance will commence once the loan is approved. These technical assistants are justified on the ground that the RWSS agencies are newly established entities and have limited qualified staff. 5.2.5 With the support of the State Government, LGAs lead sub-programmes development and assume management through the WES/WASH units. LGAa will establish Coordinating Committees headed by the LGA chairmen and composed of representatives from relevant department in the respective LGA, State RWSS Agencies, community leaders, WASCOMs and women group. These committees will coordinate all activities and sub-projects in their areas. The LGAs will be supported to build their capacities for better planning and effective management of their water and sanitation activities. Technical assistants shall be also provided to LGAs, as appropriate, to increase their capacities and ensure timely launching of the projects. 5.2.6 Communities will be involved in every phase of the project cycle through the established WASCOMs. The WASCOMs will be responsible for mobilizing the community contribution towards the capital cost as well as operation and maintenance of the provided facilities. The sub-programmes will strengthen WASCOMs to efficiently play their roles including identification, planning, implementation, and make informed choices as to the type of facilities and levels of service they can afford. In addition provision is made to ensue adequate gender mainstreaming that incorporates the appointment of women to important executive positions as well as tailor made training and advocacy to promote women participation in WSS activities. To ensure that women have an equitable representation in decision-making positions and desired participation in the RWSS schemes, at least 30% of the WASCOMs members will be women in line with the gender policy.

29

5.2.7 At the national level, the Federal Ministry of Agricultural and Water Resources (FMAWR), through the RWSS Division within the Water Supply and Quality Control Department, will be the policy-level focal point for the sub-programmes. Its broad responsibilities include monitoring and evaluation of all RWSS interventions and coordinating partnership with donors. The FMAWR advises the states and ministries on both capital budget and it has the mandate to obtain information from states and ministries. The FMAWR will provide monitoring and evaluation guidelines of the RWSS operations and ensure that: (i) Advocacy of sector policy and strategy, (ii) Advocacy of RWSS programme, (iii) Development of Information, Education, Communications (IEC) social and social marketing at national level, (iv) Common accounting procedure and formats produced for all states and regular financial reports and semi-annual audits, (v) Quarterly and annual reports received from state-level to be synthesized into single integrated reports, and (vi) Common monitoring process and evaluation procedure developed and used to facilitate impact assessments. 5.3 Supervision and Implementation Schedule 5.3.1 Given the decentralized nature and wide range of activities, close and frequent supervision missions, at least twice a year, in particular during the initial stage of implementation, will be carried out by the Bank. To the extent possible, these missions will occur jointly with development partners. The Bank together with development partners will also undertake a mid-term review to assess sub-projects participatory processes, performance of institutions at the federal and state levels, performance of intermediaries, cost-effectiveness, quality of financial, procurement and accounting practices and implementation issues. The mid-term review will recommend any necessary modifications to the operation manuals or institutional arrangements, and will be conducted in close co-ordination with all stakeholders. Sub-programmes supervision will also be greatly facilitated by the Nigeria Field Office (NGFO). This will allow regular and sustained contact between the federal institutions, donors and the Bank and more frequent supervision missions to the state-level institutions. 5.3.2 The sub-programmes will be implemented over 5 years period, commencing with expected loan signing date of October 2007. The details of implementation schedule are given in Annex 14. The key dates for the implementation of the sub-programmes are shown below:

ITEM TIMELINE Loan Management Loan Negotiations Loan Approval Signature of Loan Effectiveness of Loan Disbursement of Funds Mid-Term Review Completion of the Sub-Programmes

July 10, 2007 September 5, 2007 October 30, 2007 October 31, 2007 November 1, 2007 July 15, 2010 December 31,2012

TA and Consultancy Services Shortlist and RFP Issued (using AAA) August 30, 2007 Proposal Received, Evaluated and Approved September 31, 2007 Services Commenced November 30, 2007 Services Completed November 30, 2012 Works and Good Contracts Bidding Bids Invitation Started March. 1, 2008 Bids Received, Evaluated and Approved Completed June 1, 2008

30

Bids Awarded Completed August 1, 2008 Construction Activities Execution Commenced August 15, 2008 Rural Community Water Points November 30, 2012 Rural Household Sanitation Facilities November 30, 2012 RWSS facilities in Schools November 30, 2012 RWSS facilities in Public Places December 31, 2012 Defects Liability Period expires December 31, 2013

5.4 Procurement Arrangements 5.4.1 Procurement arrangements are summarized in table 5.1 in the next page and shown in detail in the Provisional List of Goods, Works and Services in Annex 10. The procurement of goods, works and services financed by the Bank will be in accordance with the Bank's Rules of Procedure for Procurement of Goods and Works or, as appropriate, Rules of Procedure for the Use of Consultants, using the relevant Bank Standard Bidding Documents. However, because the sub-programmes are mostly community based and demand driven, procurement of goods and works have been packaged into groups of various sizes based on the availability of goods, capacity to carry out procurement activities, and impact on sustainability if contracts are kept small to involve communities. Consequently, the procurement of goods, works and services shall also utilize, to a large extend, the Bank’s Guidelines for Procurement Under Community-Based Investment Projects (CBIP). In some cases, it would be most expedient to apply the National or States’ procurement laws and regulations. The Nigeria’s national procurement laws and regulations and those of the two Sates have been reviewed and determined to be acceptable. 5.4.2 The RWSS Agencies of Yobe and Osun states will be responsible for implementing all procurement arrangements as appropriate and will monitor implementation through communication with their LGAs and WASCOMs. Because of the numbers of procurement that are expected to be executed, each Executing Agency (EA) established a procurement unit with at least one local Procurement Expert. In addition, each participating State and FMAWR will be strengthened through the acquisition of a Procurement Specialist (Technical Assistant) and resources to be financed using the Bank’s rules under this intervention.

Civil Works 5.4.3 Procurement of civil works for Borehole drilling estimated at UA 37.28 million in aggregate utilizing a maximum of twenty-eight (28) contracts will be carried out under International Competitive Bidding (ICB) procedures. At least sixty-four (64) contracts at an aggregate value of UA 2.33 million and one hundred and twenty-nine (129) contracts at an aggregate value of UA 3.51 million for Hand Dug Wells and Household Latrines civil works respectively, will be carried out under CBIP Local Competitive Bidding (LCB) procedures. Also, sixty (60) contracts at an aggregate value of UA 2.48 million for Public Latrines will be carried out under National Competitive Bidding (NCB) procedures. Environmental works valued at UA 1.62 well be implemented as part of the various contracts previously discussed.

Goods 5.4.4 Procurement of Goods, estimated at UA 2.00 million in aggregate utilizing at least of seven (7) contracts for the purchase of Operational Equipment, IT Equipment and Office Equipment and Supplies, will be carried out under National Competitive Bidding (NCB) procedures.

31

Table 5.1: Procurement Arrangements (UA million) Categories ICB NCB Other* Shortlist** NBF*** Total 1. Civil Works 1.1 HD-Wells Rehab and Constr.

Yobe State 1.78 (1.33) 1.78 (1.33) Osun State 0.55 (0.41) 0.55 (0.41)

1.2 BH Rehab and Constr. Yobe State 28.23 (25.28) 28.23 (25.28) Osun State 9.05 (8.10) 9.05 (8.10)

1.3 Household Latrines Yobe State 2.73 (2.73) 2.73 (2.73) Osun State 0.78 (0.78) 0.78 (0.78)

1.4 Public Latrines Yobe State 1.86 (1.86) 1.86 (1.86) Osun State 0.62 (0.62) 0.62 (0.62)

1.5 Environmental Works Yobe State 1.01 (0.92) 1.01 (0.920 Osun State 0.61 (0.55) 0.61 (0.55)

2. Goods 2.1 Equipment and Supplies

Yobe State 1.30 (1.30) 1.30 (1.30) Osun State 0.54 (0.54) 0.54 (0.54) FMAWR 0.16 (0.16) 0.16 (0.16)

3. Services 3.1 Comm. Mobiliz and Hyg Promo

Yobe State 0.31 (0.25) 1.13 (0.69) 1.44 (0.94) Osun State 0.06 (0.06) 0.26 (0.16) 0.32 (0.22) FMAWR 0.03 (0.02) 0.45 (0.26) 0.48 (0.28)

3.2 Institutional Support Yobe State 0.26 (0.21) 0.26 (0.21) Osun State 0.09 (0.07) 0.09 (0.07) FMAWR 1.11 (0.90) 1.11 (0.90)

3.3 TA and Consultancy services Yobe State 0.67 (0.61) 0.67 (0.61) Osun State 0.37 (0.34) 0.37 (0.34) FMAWR 0.24 (0.21) 0.24 (0.21)

3.4 Monitoring and Evaluation Yobe State 0.16 (0.14) 0.24 (0.20) 0.40 (0.34) Osun State 0.02 (0.01) 0.02 (0.02) 0.04 (0.03) FMAWR 0.09 (0.08) 0.14 (0.12) 0.23 (0.20)

3.5 Studies and Research Yobe State 0.65 (0.44) 0.65 (0.44) Osun State 0.15 (0.10) 0.15 (0.10) FMAWR 0.29 (0.20) 0.29 (0.20)

3.6 Accounts Auditing Yobe State 0.09 (0.08) 0.09 (0.08) Osun State 0.08 (0.08) 0.08 (0.08) FMAWR 0.08 (0.07) 0.08 (0.07)

4. Training 4.1 Training and Compet. Building

Yobe State 0.11 (0.09) 0.07 (0.06) 0.18 (0.15) Osun State 0.04 (0.04) 0.03 (0.03) 0.07 (0.07) FMAWR 0.10 (0.09) 0.07 (0.06) 0.17 (0.15)

5. Miscellaneous 5.1 Staff Allowances

Yobe State 0.31 (0.25) 0.31 (0.25) Osun State 0.06 (0.05) 0.06 (0.05) FMAWR 0.39 (0.30) 0.39 (0.30)

5.2 Operating Cost Yobe State 0.12 (0.10) 0.12 (0.10) Osun State 0.01 (0.01) 0.01 (0.01) FMAWR 0.03 (0.02) 0.03 (0.02)

Total 37.28 (33.38) 4.48 (4.48) 9.30 (8.22) 6.49 (4.92) 57.55 (51.00) Total Yobe State 28.23 (25.28) 3.16 (3.16) 6.53 (5.81) 3.11 (2.29) 41.03 (36.54) Total Osun State 9.05 (8.10) 1.16 (1.16) 2.13 (1.91) 1.00 (0.80) 13.34 (11.97) Total FMAWR 0.00 (0.00) 0.16 (0.16) 0.64 (0.51) 2.38 (1.82) 3.18 (2.49)

*Other: may be Local Competitive Bidding (LCB); Direct Purchase (DP) National Procurement (NP). **Short list: applies to the use of national and /or Local Consultants only. ( ) ADB Contribution., *** NBF means “Non-Bank Funded”.

32

Consultant Services and Training 5.4.5 Consultant Services/Technical Assistance for the EAs should consist of a minimum of 20 contracts at an estimated aggregate value of UA 1.28 million. Also considered under services are a minimum of seventy (70) contracts for Community Mobilization and Hygiene Promotion at an estimated aggregate value of UA 2.24 million; a minimum of fifty-two (52) contracts for Institutional Support at an estimated aggregate value of UA 1.46 million; a minimum of fifteen (15) contracts for Monitoring and Evaluation at an estimated aggregate value of UA 0.67 million; a minimum of thirty-seven (37) contracts for Studies and Research at an estimated aggregate value of UA 1.09 million, a minimum of six (6) contracts for Auditing of Accounts at an estimated aggregate value of UA 0.25 million and a minimum of fifty-four (54) contracts for Training and Competence Building at an estimated aggregate value of UA 0.42 million. 5.4.6 Firms will be recruited through competition on the basis of shortlists using the selection procedure combining technical quality with price consideration; while individual consultants for specific assignments will be selected following the Bank’s procedures for the use of individual consultants. Depending on the availability of the service providers, NGOs and national institutions may be selected through short list or Direct Purchase. Services for community based training, seminars and workshops will be provided by NGOs and consultants (individuals and or firms including national educational institutions). Radio and printing services for announcements, promotions and related activities will be obtained through Direct Purchase with the responsible national authorities. For contract services costing less than UA 100,000 for individuals and UA 350,000 for consulting firms, the Borrower may limit the publication of the advertisement to national / regional newspapers.

Miscellaneous 5.4.7 Procurement under the activities of staff allowances and operating cost, amounting to UA 0.76 million and UA 0.16 million respectively, will be carried out using the National Procurement laws and regulations. 5.4.8 Procurement Review: In view of the many small contracts that will be processed and the need to maintain sustained implementation, contracts for goods and works up to an amount of UA 100,000 will be approved by the EAs, and will be subject to post review by ADF. Procurement documents, including solicitations of price quotations, evaluation sheets and contract awards will be kept at the EAs for periodic review by ADF supervision missions. Six months after effectiveness, the EAs will employ independent procurement consultants, under terms of reference agreed with ADF in accordance with the provisions of the Appraisal Report, to review at least annually, the correctness of the procurement activities. However, the Bank reserves the right to conduct its own procurement audits at any time during the project implementation. This review will determine the need for modifications and improvement of the procurement arrangements. Information on procurement processing will be collected by the EAs quarterly and shall be included in detail in the Project Quarterly Progress Report to be submitted to ADF. 5.4.9 General Procurement Notice: The Borrower requested and received the Bank’s approval for the use of Advance Action for the Acquisition of Consultancy Services (AAA) in acquiring the services of three Project Managers (TAs), three Procurement Specialists (TAs) and three Financial Managers (TAs). Therefore, the text of a General Procurement Notice (GPN) has been agreed with the Rural Water Supply and Sanitation Agencies and it has to be issued for publication in Development Business.

33

5.4.10 Review Procedures: The following documents are subject to review and approval by the Bank for contracts subject to prior review:

• Specific Procurement Notices (SPN); • Expression of Interest (EOI) • Prequalification invitation documents (if appropriate); • Tender documents or Requests for Proposals from consultants; • Tender evaluation reports or reports on the evaluation of consultants proposals,

including recommendations for Contract Award; • Draft contracts, if these have been amended from the drafts included in the tender

invitation documents 5.5 Disbursement Arrangements 5.5.1 The disbursements will be made through the Special Account method and Direct Payment method. The Disbursement to contractor, supplier and consultant will be based on the direct payment method where the amount exceeds the equivalent of UA 20,000. The small contracts below UA 20,000 may be paid from the special account following the Bank approval. The Yobe state, Osun state and FMAWR shall open Special Accounts denominated in foreign currency for this purpose in banks acceptable to the ADF. The opening of the Special Accounts will be a condition precedent to first disbursement. The Special Accounts will require an advance, based on an annual work plan covering six months approved by the Bank in ahead. The submission of the work plan will be part of the other conditions. The Special Accounts will be replenished periodically upon justification of the use of at east 50% of the previous transfer and that the other advances have been fully justified in accordance with the Bank’s procedures. 5.5.2 There will be subsidiary agreements between the Federal Ministry of Finance, the participating state Governments as well as the Federal Ministry of Agricultural and Water Resources (FMAWR) on transfer of the entire proceeds of the loan to each of them. The submission of these subsidiary agreements will constitute part of the loan conditions precedent to first disbursement. 5.5.3 Regarding counterpart funding, Yobe State and Osun state have issued letters of commitment to the Federal Ministry of Finance in which they committed in advance deductions at source of counterpart funding required for these sub-programmes to be deposited in dedicated account. A similar letter of commitment was issued by the FMAWR to the Federation. Local currency accounts shall be opened by the Yobe and Osun state Governments as well as the Federal Ministry of Agricultural and Water Resources (FMAWR). The opening of the Local Currency Accounts will be a condition precedent to first disbursement. The disbursement from each account will follow the existing financial procedures and managed through separate pools of signatories. Evidence on depositing 15% of the total local contributions by the participating states and FMAWR will be part of the other conditions.

34

5.6 Monitoring and Evaluation 5.6.1 A results-based M&E system based on a comprehensive Management Information System (MIS) will be developed under this intervention with the aim of linking LGAs, States and the Federal Government. The established Results-Based M&E System will utilize the Performance indicators designed for the sub-programmes as mentioned in section 4.9 above and will rely on the activities of the sub-programmes in real-time; information from LGAs and state levels will be submitted to the FMAWR, which will compile all information in a periodic status report. The water points and sanitation survey to be carried out under this intervention will allow to update baseline data for RWSS MIS. The input to establish the MIS will build on initiatives by other donors including the World Bank MDGs baseline survey and the pilot MIS implemented through EC/UNICEF financing in some states. The M&E will involve: (i) Monthly/Quarterly reports on: (a) progress in project construction, consultations,

mobilization, (b) Water and sanitation coverage of communities, and (c) status of capacity building,

(ii) Periodic inspection visits from FMAWR and RWSS agencies to monitor the reality on the ground and verify adherence to performance targets and standards.

(iii) Joint evaluation exercise involving FMAWR and ESAs. 5.6.2 Under the results-based M&E system, the performance indicators as described in section 4.9 will form the basis for recording, reporting and processing data at the lowest level. In this process, the performance of the sub-projects will be evaluated to measure achievements and eventually impact of the intervention in the lives of the rural population of the two states. The duties entrusted to the agencies at different levels in connection with M&E include: (i) National Level: The main responsibilities at the national level through the M&E

division of the FMAWR include: (a) Design and install the national M&E system and serve as its custodian, (b) Collect, store and analyze data (c) Monitoring and track the processes and achievements, (c) Evaluate the monitoring information, and (e) disseminate results and best practices in the construction, O&M, mobilization, sanitation and hygiene fields, thereby feeding inputs for policy modifications.

(ii) State Level: RWSS agencies will be engaged in real time data collection, supervision

and deployment of staff, storage and review workshops. With the assistance of the LGAs, the system will make it possible to follow closely the implementation of the different components of the sub-programmes in terms of rehabilitation activities, construction of new facilities and funds spent.

(iii) Community Level: Community Based Monitoring will follow Community Action

Plans that will reflect the shared responsibility amongst LGAs and WASCOMs on the projects performance and implementation progress.

35

5.7 Financial Reporting and Auditing 5.7.1 The participating states and FMAWR will produce quarterly progress reports and submit them to the Bank no later than one month following the end of the quarter. The reports will provide status on physical implementation as well as financial situation including disbursement from local counterpart funding. 5.7.2 External auditing firms will be recruited each for Yobe state, Osun state and FMAWR on renewable contract for a maximum period of three years to carry out the annual auditing of the accounts. The state Auditor General will be involved in recruitment of the external auditors. The same auditors will be responsible for carrying out other regular auditing every six months and unplanned auditing, as and when required. The annual audit reports including financial statement will be submitted to the Bank no later than six months after the closure of the fiscal year. The other audit reports will be submitted to the Bank no later than one month after its formulation. 5.8 Partnership and Aid Coordination 5.8.1 Donors coordination is carried out by the FMAWR through its Donor Coordinating Unit. The FMAWR coordinates donor involvement through a Donor Roundtable Water Thematic Group meeting on a quarterly basis involving all stakeholders. The Bank’s country Office in Nigeria maintains continuous dialogue with the donors. The main issues addressed by the donors meetings were: (i) avoid and minimize duplication of efforts, (ii) stream line policy and strategies, programs, approaches and standards, (iii) learn from best practices and share ideas on innovative strategies and other means of enhancing sector performance, (iv) galvanize public awareness and donors interest for WSS and (v) discuss on innovative technologies and initiatives. 5.8.2 As regards RWSS sub-sector, four national donors meetings/workshops held in December 2005, April 2006, August 2006, and March 2007 where donors were sensitized about the National RWSS programme and the implementation arrangements. ADB participated actively in these workshops. At the donors meeting of 30 March, 2007, in which the appraisal mission participated, the National RWSS programme was launched and all stakeholders and donors agreed, through a joint MOU, on the adoption of the programme as a framework for RWSS activities. 5.8.3 The financing of the present sub-programmes from various donors is based on parallel arrangement. Partnership will be ensured with donors involved in the participating states in this intervention particularly EC, UNICEF, JICA and WATER AID through utilizing recent experience and established decentralized execution arrangements and structures. Collaboration will be also made to ensure effective capacity building and training program. Taking experience of NGOs in grass root activities, collaboration with NGOs will be intensified at community level in the areas of community mobilization and development. In addition, DFID and the Bank discussed during the appraisal mission of March/April 2007 the possibility of collaboration on supporting the two states of Cross River and Jigawa regarding implementation of their RWSS sub-programmes in subsequent stage. Donor partnership and coordination at Federal, State and LGA level will be pursued and strengthened to avoid duplication of efforts, streamline procedures and stimulate donors’ interest for RWSS.

36

5.9 Sustainability, Risks and Mitigating Measures 5.9.1 Recurrent Costs The recurrent costs of the sub-programmes are mainly consisting of operation and maintenance and will be entirely covered by the communities. The operating cost of the sub-programmes is estimated to be about USD 135,200 or NGN 17.6 million in the initial year. The estimated tariff of USD 1.50 per m3 of water is slightly higher than tariff in neighboring countries such as Senegal, which has an estimated price of USD 1.13 per m3. However, with the willingness to pay and the communities’ ability demonstrated in on going operations the tariff is proved to be affordable and the operating costs are expected to be sufficiently covered. 5.9.2 Sustainability 5.9.2.1 The sustainability of the sub-programmes can be explained by its demand driven approach in which the felt need of the communities are well incorporated all through the setting of priorities, preparation, appraisal, implementation and operation processes. The existence of the community Water Supply and Sanitation Committees (WASCOMs) is a corner stone of the sub-projects implementation and operation. It is a community organ which is responsible for the overall operation of the project and it is also an engine for mobilizing the community for sustaining the project. The committees are empowered to collect community contribution on regular basis. This approach, therefore, can be referred as a good foundation for the sustainability of the sub-programmes. 5.9.2.2 Experience gained from interventions through some donors indicated that communities are willing and have ability to pay for water services. The beneficiaries are also highly enthusiastic to build their own latrines. The communities’ readiness for contributing 5% of the capital cost of the water supply facilities, majority of costs of sanitation facilities and for covering fully the operation and maintenance costs are positive determinant factors for sustaining the sub-programmes. 5.9.2.3 The utilization of local resources for the construction of water points such as hand dug wells, spring development and water harvesting, as well as of sanitation facilities such as traditional latrines and VIP latrines will be one of the effective bases for the sustainability of the sub-programmes. This also ensures availability of the necessary spare parts for the operation and maintenance and thus sustainability of the provided facilities. 5.9.2.4 The availability of spare parts in the local market is another major guarantee of sustainability. The efforts made by the Government to standardize and manufacturing hand pumps will motivate local distributors to invest in regular supply of spare parts. The measures provided under the present intervention to support establishment of a supply chain including suppliers/distributors will also guarantee the sustainability of the provided facilities. 5.9.2.5 The high commitments shown at the Federal, State, States, Local Government Areas (LGAs) and Communities levels are good indicators for the future success of the sub-programmes implementation and operation. On top of this, RWSS Agencies, LGAs and communities in the participating states have gained experiences in implementing and operating similar sub-projects funded by different donors such as the European Union, DFID and UNICEF.

37

5.9.3 Risks and Mitigating Measures 5.9.3.1 One of the risks relates to the ability of the poorest household or members of the community to give financial contribution towards the operation and maintenance of the water and sanitation facilities provided. Although there is high level of enthusiasm in all the communities visited to contribute towards the sustainability of the facilities, the poorest members of the community may find it difficult to make regular financial contributions. There are two possible outcomes if that happens; the poorest may be denied access to the services of the facilities and forced to access water from an unsafe source, or they are allowed access but excluded from decisions over the operation and management of the facilities which will further entrench poor people’s level of exclusion and discrimination. The mitigating measure is for WASCOMs to build it into its consultation and dialogue with the community to identify and agree if poorest can be accommodated with social tariff and agree on what action to be taken. Sensitization campaigns will also address this issue 5.9.3.2 The second risk is over the institutional capacity of RWSS agencies and the LGAs in terms of staffing, knowledge and experience to implement specific activities in the sub-programmes particularly a gender sensitive sub-programmes. This risk will be mitigated through training with separate package on gender balance and local consultants will be engaged as the need arises to provide expertise in that direction. 5.9.3.3 There is also a risk over the capacity of WASCOMs to manage the facilities. The success of the sub-programmes is largely dependent on the performance of WASCOMS and their quality and capacity should therefore be confirmed. To mitigate this risk, a considerable support is provided under this intervention for WASCOMs structure as well as training on development of action plan, hygiene behavior and operation & maintenance. Related to this is the concern over the effective participation of women in the WASCOMs because of the entrenched gender ideology that decisions over the management and leadership of community resource such as water is men’s responsibility in some places in the country, this is more so in Yobe state. The advocacy and community sensitization components of the sub-programmes, if well implemented will mitigate this risk. 6. IMPACT EVALUATION 6.1 Economic Impact 6.1.1 Access to services such as water and sanitation is linked to cost and affordability. The cost of water is sufficiently high particularly in Yobe state that it makes more economic sense for the majority of the population of many rural communities to use their time fetching water rather than engage in income generation. The Bank’s intervention is expected to increase the supply of water, and thus, put downward pressure on the price, making safe water accessible and affordable to households served. 6.1.2 Provision of water points in the rural communities would have a positive multiplier effect on the local economy. The first sector of the local economy to benefit is agriculture, particularly livestock rearing, vegetable, and tree planting. Other economic activities that would receive a boost once an accessible water point is put in place include the building and construction industry, as well as the local food processing and beverages industries. It is expected that these benefits will positively impact on rural un-employment levels, and that

38

the time saved will reduce absenteeism at work, thereby increasing productivity and average household income. The sub-programmes will also improve upon the existing local skills level in the management of the water points and construction of improved sanitation facilities. Other skills such as basic book-keeping and accounting required to manage the facilities can be transferred and be used in other economic activities. Water and sanitation sub-programmes may have undesirable economic consequences such as lost of jobs for water vendors and women who may also lose as a result of lack of gender sensitivity in the design and implementation of the water schemes. 6.1.3 An economic analysis to assess quantifiable benefits associated with the present intervention by the Bank in the targeted states was conducted, and the results and assumptions for calculating the Economic Rate of Return are shown in Annex 15. The cost streams consist of the capital cost inclusive of physical contingencies, with the benefits being determined on the basis of: (i) time savings made on collection of water and reduced absenteeism from work and school due to a reduction in water related diseases, (ii) shadow income related to improved health and sanitation benefits, and (iii) longer-term benefits in community-wide productivity related to education benefits. Field investigations indicated that women and children would spend approximately thirty minutes per day to gather water compared to the approximate five hours currently spent. The ERR has been determined at approximately 23%, which is a level consistent with required economic parameters to justify the Bank’s intervention, and which exceeds the opportunity cost of capital in Nigeria, which is estimated at 10%. 6.2 Sensitivity Analysis Adverse variations tested against ERR are: (i) delays in implementation resulting in increase in investment costs, (ii) a decline in benefits, and (iii) a combination of two adverse conditions. The results of the sensitivity analysis are summarized in table 6.1 below. A 10% increase in investment costs due to delays in implementation lowers the ERR from 23% to 20% and a 10% reduction in benefits lowers the ERR from 23% to 19%. A combination of the 10% increase in investment costs and a 10% reduction in benefits lower the ERR from 23% to 17%, with the results being more sensitive to a decline in benefits. Effectively, the sub-programmes remain economically viable despite concurrent adverse conditions, as the returns exceed the economic opportunity cost of capital in Nigeria of 10%.

Table 6.1: Sensitivity Analysis Adverse Variation ERR (%) i. Base case 23 ii. 10% increase in investment costs 20 iii. 10% reduction in benefits 19 iv. Combination of the two adverse variations 17

6.3 Social Impact 6.3.1 The different components of the sub-programmes would greatly impact positively on the social conditions of the people in the selected communities in such areas as health, education and community development. The provision of safe drinking water, sanitation facilities and hygiene education components would impact on the health conditions of the rural population of the two states in several ways as follows: (i) Reduce the incidence of water borne diseases of 10,200 and 17, 4722 for diarrhea, 687 and 1,063 for cholera and 55,783, and 37,497 for malaria in Osun and Yobe states, respectively, and (ii) Reduce the under five mortality of 113 per 1000 birth for Osun state and 260 per 1000 birth for Yobe

39

state. The provision of water points within a short distance would reduce the absenteeism in school, particularly the girls who are more likely to be overburdened by domestic chores, particularly in Yobe state that has very low rural enrolment figure of 23.6%, female enrolment of 39% and rural school completion rate of 2.3%. In addition, the RWSS in Schools will improve girl’s schooling as lack of latrines in schools was reported to be one of the reasons for girls’ absenteeism in schools in Yobe state. 6.3.2 The involvement of the community in the sub-programmes and its capacity building component would result in the development of community structures and people in Osun and Yobe states thereby improving the social indicators in several ways as follows: (i) awareness raising on social issues such as gender equity, and hygiene education, (ii) Skills acquisition in operation, maintenance and management of the water points and latrines, (iii) Improvement of the employment opportunities as people learn the basic skills and art of book and record keeping, and (iv) Enhancement of local governance democratic structures of the communities where decisions about water and sanitation in the communities are taken through consultations. 6.4 Poverty Impact 6.4.1 Water supply and sanitation sector is the key to the achievement of MDGs because of its cross-cutting impact towards eradicating extreme poverty and hunger, achieving universal primary education, promoting gender equality and women’s empowerment, reducing child mortality, improving maternal health and improving environmental sustainability. It is in recognition of the central role of the sector that the Federal governments of Nigeria prioritize the sector among the 9 ministries benefiting from the gains of Nigerian debt relief, by being allocated largest share of the fund, second to the health. At the policy and program levels, the commitment of the government towards poverty reduction in Nigeria is expressed in the core policy documents of the National and States Poverty Eradication policy in NEEDS and SEEDS. It is on the basis of these documents that the national and state level poverty eradication programs are being implemented in Yobe and Osun with strong water supply and sanitation service provision. For example, out of the 674 approved community projects of the Yobe State Agency for Poverty Reduction as of 31st March 2006 (under CPRP project financed by the ADB and World Bank), 397 are water provision and rehabilitation projects and 13 projects are toilet construction in schools, hospitals and market places. 6.4.2 Available statistics indicated that Yobe state is one of the states with the highest incidence of poverty in Nigeria with 83.2% in 2004. The poverty incident in Osun State is estimated at 32.35% in 2004. Considering the high level of poverty in Nigeria and the concern that Nigeria may not be able to meet some of the MDGs targets, provision of safe water and improved sanitation services are critical input to the economic development of a nation and an important entry point for the achievement of MDGs. The different components of the RWSS sub-programmes in Yobe and Osun states will greatly improve the human development indicators of the population of the affected communities, particularly the health indicators of the poor. Compelling evidence has shown that improving access to safe water and sanitation facilities will radically reduce the incidence of water borne related diseases and illnesses among the population thereby reducing morbidity rate, especially among children by 21%. This means reduction in the household expenditure on health related cost; the savings can be invested in children’s education and other development activities. The time gains can be productively invested to increase household income, particularly the income of mother and father.

40

6.4.3 The sub-programmes would have impact on poverty through its economic impact of: (i) generating employment as a result of RWSS civil work activities which will make significant contribution not only to household income but also to strengthening the private sector at the community level; (ii) decline in unemployment by as much as 12 percent; and (iii) the establishment of micro-enterprises and income generating activities such as raising livestock, food and drink processing, petty trade, basketry, embroidery and ceramics. The training and sensitization activities would have also impact on poverty through: (i) improvement in the income generation capacities of communities will accrue from acquiring basic skills in finance and record keeping; (ii) emergence of new local democratic structures as a result of more literate, sensitized and conscious citizens and elders who would sustain the community’s water and sanitation infrastructures and other community based infrastructures; and (iii) enhancement of the status of the less powerful and more vulnerable groups such as women and children through their involvement in decision makings on important male and adult dominated resource like water. 6.5 Gender Impact 6.5.1 Women are the beneficiary of the RWSS sub-programmes more than any group because they are the primary users of water. The activities under the present sub-programmes would positively impact on the status and living conditions of women and children in many ways. They would lighten the burden of women through improved access to water for drinking, latrines, and hygiene practices. The time women and children spend collecting water is expected to be reduced from about 3 hours in some cases to 30 minutes; thus allowing improved management and productive use of time gains in economic activities. The capacity building component would empower the women to occupy leadership position in the water management arrangements. 6.5.2 The national gender policy of 2007 provides the basic principle for women involvement in water management. The present RWSS sub-programmes will encourage and support this principle through the following measures: (i) Preparing a strategic action plan on mainstreaming gender covering such areas as: (a) Gender monitoring tools and gender relation change indicators, (b) capacity building to improve women’s capacities and skills to effectively participate in community decisions over water resource management such as WASCOM, (c) raising the level of men’s awareness on gender issues, and (d) strong community mobilization that covers advocacy and sensitization on gender mainstreaming, approaches and sensitivity for both men and women; (ii) Provision of water and toilet facilities in the women’s income generation centers e.g. cassava, bean and palm oil processing centers; (iii) Commissioning of Gender base-line survey for monitoring purpose and for the development of gender monitoring tools; and (iv) Improving institutional capacity of the state and LGA Ministries for Women Affairs through training to enable them effectively monitors the gender aspects of the RWSS operations.

41

7. CONCLUSIONS AND RECOMMENDATIONS 7.1 Conclusions 7.1.1 The sub-programmes in Yobe and Osun states will support Government efforts to meet MDGs for RWSS. The sub-programmes are consistent with the Bank’s strategy for Nigeria defined in the Country Strategy Paper (CSP) for 2005-2009 under the second pillar namely “Stimulating non-oil growth through enhanced infrastructure and agricultural/rural development”. This pillar aims at achieving rapid growth through increased RWSS services, thus contributing to the NEED towards poverty reduction. The sub-programmes are also in line with the Bank’s RWSSI and the Bank’s strategic plan for 2003-2007. 7.1.2 The sub-programmes are technically feasible, economically viable and socially justified. The ERR has been determined at approximately 23%, which is an acceptable indicator of the merits of this intervention from an economic perspective. Down case scenarios demonstrated sufficiently robust ERR levels as well. Mitigating measures have been taken into account to attenuate the environmental impacts of these sub-programmes, which are classified in Category II. The implementation of the sub-programmes will improve the RWSS in the two states of Yobe and Osun, thereby raise the standards of living of rural communities. 7.2 Recommendations and Conditions for Loan Approval In the light of the above, it is recommended that a loan not exceeding UA 51.0 million from ADF resources be granted to the Federal Republic of Nigeria for the purpose of implementing the RWSS sub-Programmes as described in this report, subject to the following conditions: (A) Conditions Precedent to Entry into Force of the Loan

The entry into force of this Loan Agreement shall be subject to the fulfillment by the Borrower of the applicable provisions of Section 5.01 of the General Conditions.

(B) Conditions Precedent to First Disbursement of the Loan

The first disbursement of the loan shall be subject to entry into force of the loan, as set out above as well as to the following conditions: (i) Executed subsidiary agreements between the Federal Ministry of Finance and

each Participating State and the FMAWR, whereby the entire proceeds of the Loan will be transferred to them on terms and conditions acceptable to the Fund (Para. 5.5.2).

(ii) Documentary evidence that Special Accounts have been opened by each

Participating State and the FMAWR for the deposit of proceeds of the Loan with banks and on terms acceptable to the Fund including confirmation that funds on deposit with such banks will not be subject to set-off or blocked (Para. 5.5.1).

(iii) Documentary evidence that Local Currency Accounts have been opened for

the deposit by each Participating State and the FMAWR of their counterpart

42

funds contributions for the sub-programmes with banks and on terms acceptable to the Fund including confirmation that funds on deposit with such banks will not be subject to set-off or blocked (Para. 5.5.3).

(C) Other Conditions

(i) Submit within four months after first disbursement a work plan acceptable to the Fund by each Participating State and FMAWR for the first year of operations (Para. 5.5.1).

(ii) Provide evidence within four months after first disbursement that the

counterpart funds have been deposited into accounts by the Participating States and the FMWR to cover at least fifteen percent (15%) of their contributions to the Fund to finance activities for the first year of operations (Para. 5.5.3).

(iii) Hire a Procurement Specialist for each Participating State and FMAWR within

five months of first disbursement (Para. 5.4.2).

Annex 1

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Map of the Federal Republic of Nigeria

This map was provided by the African Development Bank exclusively for the use of the 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 and its members any judgment concerning the legal status of a territory nor any approval or acceptance of these borders.

Annex 2

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Rural Water Supply and Sanitation Coverage by State (Year 2006)

State Rural Population Water Coverage Sanitation Coverage million % % 1 Jigawa 2,141,512 63.20% 33.60% 2 Kaduna 3,003,681 22.04% 23.04% 3 Kano 3,612,000 42.20% 36.00% 4 Katsina 2,763,077 42.20% 42.40% 5 Kebbi 1,874,600 50.60% 24.80% 6 Sokoto 2,673,580 42.20% 24.80% 7 Zamfara 1,146,633 42.20% 42.40% Total North West 17,215,113 42% 32% 8 Benue 3,009,160 38.00% 20.40% 9 FCT Abuja 269,780 38.00% 21.28% 10 Kogi 1,495,438 50.60% 24.80% 11 Kwara 1,651,200 50.60% 29.20% 12 Nasarawa 1,098,758 33.80% 33.60% 13 Niger 2,472,000 29.60% 11.60% 14 Plateau 1,724,768 42.20% 29.20% Total North Central 11,721,104 40% 23% 15 Adamawa 1,513,251 43.88% 49.44% 16 Bauchi 1,744,200 60.68% 49.44% 17 Borno 1,964,935 38.00% 24.80% 18 Gombe 1,501,632 50.60% 51.20% 19 Taraba 1,633,142 57.32% 49.44% 20 Yobe 2,050,000 46.40% 33.60% Total North East 10,407,160 49% 42% 21 Ekiti 1,469,767 54.80% 33.60% 22 Lagos 4,401,808 42.20% 24.80% 23 Ogun 1,766,347 38.00% 38.88% 24 Ondo 1,439,620 33.80% 24.80% 25 Osun 589,216 44.72% 29.20% 26 Oyo 2,705,915 46.40% 29.20% Total South West 12,372,673 43% 29% 27 Akwa Ibom 1,681,164 29.60% 0.00% 28 Bayelsa 1,278,436 46.40% 38.00% 29 Cross River 1,329,126 50.60% 33.60% 30 Delta 1,881,789 32.85% 18.09% 31 Edo 1,634,439 46.40% 29.20% 32 Rivers 1,562,391 21.20% 11.60% Total South South 9,367,345 37% 30% 33 Abia 1,607,347 42.20% 30.96% 34 Anambra 1,971,958 47.24% 41.52% 35 Ebonyi 1,959,035 48.08% 40.64% 36 Enugu 1,959,035 45.56% 33.60% 37 Imo 1,770,762 43.88% 33.60% Total South East 9,268,137 46% 36% Total 70,351,532 43% 32% Source: National RWSS Programme Document

Annex 3 Page 1/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

The Rural Water Supply and Sanitation Situation in Yobe and Osun States 1. Yobe State 1.1 Existing Situation: A northern Sahelian, arid State with a rural population of about 2 million in 17 LGAs, is of predominantly livestock and agricultural based economy. State Economic Empowerment and Development Strategy (SEEDS) is based on the Yobe State Economic Reform Agenda (YSERA), focuses on community based poverty reduction program supported by ADB/WB and recognizes the importance of water supply and sanitation (WSS) sector. Total state budget is about 38 billion NGN, in which water accounts for about 5% (1.9 billion NGN), is to be increased. 60 million NGN is earmarked for recurrent budget of which half is for RWSS O&M. Budget deficit is financed from internal sources; banks and bonds. Desertification, deforestation, lowering of water levels, and the need for reliable hydrogeological groundwater maps are identified as the main constraints for the water sector development. Rural Water coverage is 46.4%, with rural sanitation less than 34%. Half of the population uses rivers, streams and ponds for domestic water use. Institutional sanitation coverage is 50%. WSS is third priority after Education and Health. There are about 1000 boreholes fitted with hand pumps, 40 hand dug wells, and 181 motorized boreholes. Functionality of the systems is not clearly known. 1.2 Public Organizations: The Ministry of Water Resources as the regulating body and the RWSAA as the parastatal responsible for overall development of RWSS are established by state decrees. MOWR formulates and interprets policy, provides regulation and follow-up on implementation of decisions of the Federal and state governments, supervision of the Urban Water Board and the Rural WSSA agency. The state has established a steering committee and a Project Monitoring and Implementation Committee. There are plans to accelerate establishment of WASHs and WASCOMs before end of October 2006. In Yobe the RWSSA, under one General Manager, has 4 technical departments: (i) Technical services, (ii) Rural water, (iii) Rural sanitation; (iv) internal audit for water quality; and three support services that include Finance & supply, Planning research and statistics, and personnel management. Hygiene and Community mobilization comes under the sanitation division. 1.3 Capacity Building: At present there are about 230 staff in the RWSS consisting of few engineers, hydrogeologists, technologists and a large number of technicians. The RWSSA has adequate capacity for sub-programme management and scaling up UNICEF pilot projects. The Agency owns 2 functional drilling rigs, with compressors transferred from the former water corporation, which have drilled 38 deep wells. There are about 112 water wells sunk by the Ministry of Water Resources. Communities are involved in every phase of the project cycle and O&M, to ensure sustainability and reliability of services. The quality of construction is good. However, the state faces capacity building limitations in terms of facilities and systems. The state has relatively better capacity for water than sanitation. The Water laboratory is attached with the Urban Water Corporation. The RWSSA laboratory is under construction. Presently there is no consolidated capacity building plan on HR, and institutional strengthening. The need for service rig for O&M is urgently required. The new RWSSA building is to be completed by the end of 2006. 1.4 Donor Involvement: EC/UNICEF intervention in 6 communities, in 3 LGAs, is going well. At present most communities have established WASCOMs. EC support is also on institutional reform program. JICA is to provide 2 rigs and drill about 100 boreholes 1.5 Operation and Maintenance: Only 10 of 30 motorized boreholes functional. 20 water harvesting schemes are in good shape. A lot of communities can not handle O&M costs and activities. Operators trained in house are employed by agency to handle O&M. This practice is not in line with Government Policy, and needs to be changed. O&M manual for hand pumps is available. LGA provides diesel to communities and takes responsibility for boreholes sinking and O&M. Supply of spare parts and tools is availed using local businessmen, artisans or by direct order from Kano city. Price is affordable to communities. The state utilizes, to a limited extent, local contractors for drilling of wells.

Annex 3 Page 2/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

The Rural Water Supply and Sanitation Situation in Yobe and Osun States 1.6 Sanitation: In the LGAs, sanitation falls under the health department with activities that include construction of VIPs, household latrines, promotion of hygiene, training of teachers, and orientation of WASCOMs. Currently sanitation activities are being implemented in pilot schemes in 6 communities in 3 LGAs, selected by UNICEF self selection criteria, with plans to scale up to additional 6 LGAs and more Communities. Sanplat is distributed freely to households willing to build their own latrines. 2. Osun State 2.1 Existing Situation: A southern state with a rural population of about 589,216 people in 30 LGAs, has 44.7% water, 29.2% household sanitation and 55% institutional sanitation coverage. Elaborate SEED and Budget documents are prepared at the state level. The state attaches great importance to water supply and sanitation, considered as a prime mover for socioeconomic development. Recently, the following have been completed: (i) 520 boreholes fitted with hand pump, (ii) 70 motorized boreholes, (iii) 307 hand dug wells, and (iv) 20 protected springs. 30 water schemes were recently completed by LGAs. 2.2 Public Organizations: The Ministry of Water Resources and Rural Development is the regularity body with the Rural Water Supply and Environmental Sanitation Agency (RWSEA) as the parastatal responsible for implementation of water and sanitation programs. The RWESA is administered by the sub-programme Manager, as the CEO and there are two main departments (i) WSES, and (ii) Finance and Administration. Under the WSES department there are 5 divisions catering for water supply, sanitation, works & maintenance, planning monitoring and evaluation, hygiene/community health. The RWESA has signed MoUs with LGAs for the establishment of WES units, management and training. 2.3 Capacity: The RWESA has adequate staffing, numbering 90 with a mix of professionals and technologists. Additional required staff is about 8. The state also has better qualified professionals and other staff. The state has low capacity specifically, lack of (i) systems for hydrogeology, technology, finance, admin M&E, (ii) facilities, including f vehicles and Motorcycles for LGAs, computer and software,(iii) training on the systems, is a major problem. At present Osun has no structured capacity building plan. 2.4 Donor involvement: EU and UNICEF, are implementing programmes utilizing existing structures and employing consultants to promote sensitize and mobilize communities side by side with the project implementation, 2.5 Water Quality Management: The state has started a water quality pilot study in 2 LGAs. The RWESA laboratory has meager facilities. Sampling is conducted with WES departments. MOH provides surveillance support. 2.6 Sanitation: the introduction of affordable sanplat platform (average cost about NN1000), has improved situation. The state has decided to increase state budget for sanitation. There are plans to construct latrine in schools, markets health centers, as part of the piloting and mobilization process. The state Ministry of health intervenes in regulation, advocacy and popularization campaigning. 2.7 Operation & Maintenance: Osun is the only state that provided crude figures for functionality of systems, which is about 50 %. O&M is mostly the responsibility of communities. Current constraints include shortage of fund for training, supply of tools; spare parts and artisan training. Rural water service is 80% had pump based. The state provides training and tools to community level operators.

Annex 3 Page 3/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

The Rural Water Supply and Sanitation Situation in Yobe and Osun States 2.8 Monitoring & Evaluation: The Baseline survey with benchmarking has restarted with EU programme. Knowledge, Attitude and Practices (KAP) studies are undertaken in the 52 selected communities for EU/UICEF funding. The M&E division in the RWESA requires capacity building in terms of training, HR, and facilities. 2.9 Private Sector Participation: Locally available service from artisans, mechanics and small business is utilized to a limited extent. The state is also conducting training for local contractors and other service providers. Over 50% of the water budget is earmarked for implementation through the private sector. Supply chains utilize local businessmen and artisans with the support of UNICEF. 3. General 3.1 The planning and implementation of RWSS activities is ad hoc. For instance, Units or Departments for RWSS in LGAs have been established in accordance with the Edicts or Bye Laws of the LGAs. Most staff of such Units or Departments is staff seconded from other sector departments and therefore owe allegiance to their parent organizations. The LGAs are responsible for the implementation of RWSS projects at the community level, and therefore it is necessary that their capacities are built to achieve this objective. Present capacity in terms of human resources, facilities, finance and systems is invariably severely limited. 3.2 Until recently, the majority of communities were provided with RWSS facilities based on a top down approach, with little or no community participation. The difficulties encountered with regard to the operational management of the facilities provided, and recent experience under both Government and Donor interventions have prompted policy shift towards community participation and ownership. Several communities have established Water and Sanitation Committees (WASCOMs) through interventions by donors. However the number of WASCOMs established to-date is not adequate. 3.3 Communities are the center piece of rural development including RWSS. In the National RWSS Programme, communities will be the owners, operators and maintainers of the WSS facilities. At this level communities will make informed decisions through their representatives in a consultative, participatory and consensus building exercise involving communities, Government (LGAs) and service providers (locally based CBOs and NGOs). Currently, because of limited capacity, low level of awareness, mobilization, and advocacy; very few WASCOMs are established. This will hopefully change with the development of the National RWSS Programme at the grassroots level on institutional capacity building, mobilization, promotion and advocacy.

Annex 4 Page 1/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

RWSS Sector Structures A RWSS Structure at Federal Level

FFFeeedddeeerrraaalll MMMiiinnniii ssstttrrryyy

ooofff AAAgggrrriiicccuuulll tttuuurrreee aaannnddd WWWaaattteeerrr RRReeesssooouuurrrccceeesss

DDDeeepppaaarrrtttmmmeeennnttt ooofff WWWaaattteeerrr SSSuuupppppplllyyy aaannnddd QQQuuuaaalll iii tttyyy

CCCooonnntttrrrooolll

OOOttthhheeerrr

DDDeeepppaaarrrtttmmmeeennntttsss

UUUrrrbbbaaannn wwwaaattteeerrr

SSSuuupppppplllyyy

SSSmmmaaalll lll TTTooowwwnnnsss WWWaaattteeerrr sssuuupppppplllyyy aaannnddd sssaaannniii tttaaatttiiiooonnn

RRRuuurrraaalll WWWaaattteeerrr SSSuuupppppplllyyy aaannnddd SSSaaannniii tttaaatttiiiooonnn

QQQuuuaaalll iii tttyyy CCCooonnntttrrrooolll

Community

Mobilization/ hygiene

promotion

Sanitation

Development

Rural Water

Supply

Monitoring and

Evaluation

Annex 4 Page 2/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

RWSS Sector Structures B RWSS Structure at Osun State

C RWSS Structure at Yobe State

SSStttaaattteee mmmiiinnniiissstttrrryyy ooofff wwwaaattteeerrr

rrreeesssooouuurrrccceeesss

RRRWWWSSSSSS AAAgggeeennncccyyy

WWWaaattteeerrr sssuuupppppplllyyy

CCCMMM &&& HHHggg... ppprrrooommmooottt iiiooonnn

SSSaaannniii ttt aaa ttt iiiooon

AAAuuudddiiit

WWWaaa ttteee rrr

QQQuuuaaa lll iii tttyyy

PPPlllaaannnnnniiinnnggg

RRReeessseeeaaarrrccchhh &&&sss tttaaa ttt ...

FFFiiinnnaaannnccceee &&&

sssuuupppppplllyyy

TTTeeeccchhhnnniiicccaaa lll ssseee rrrvvviiiccceeesss

RRRWWWEEESSS AAAgggeeennncccyyy

FFFiiinnnaaannnccceee &&& aaadddmmm

RRRWWWEEESSS DDDeeepppttt ...

WWWaaattteeerrr SSSuuupppppplllyyy

SSSaaannniii tttaaattt iiiooonnn

CCCooommmmmmuuunnniii tttyyy mmmooobbbiii lll iiizzzaaattt iiiooonnn///hhhyyygggiiieeennneee ppprrrooommmooottt iiiooonnn

PPPlllaaannnnnniiinnnggg aaannnddd

MMM&&&EEE

WWWooorrrkkksss aaannnddd

MMMaaaiiinnnttteeennnaaannnccceee

State Ministry of Water

Resources

Annex 4

Page 3/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

RWSS Sector Structures D RWSS Structure at LGA Level

E RWSS Structure at Community Level

LLLGGGAAA

CCChhhaaaiiirrrmmmaaannn

PPPHHHCCC

WWWooorrrkkksss

RRRWWWSSSSSS

(((WWWEEESSS///WWWAAASSSHHH)

AAAgggrrr iiicccuuulll tttuuurrreee

EEEddduuucccaaattt iiiooonnn

FFFiiinnnaaannnccceee &&&

AAAdddmmmiiinnniii sssttt rrraaattt iiiooonnn

WWWaaattteeerrr SSSuuupppppplllyyy

SSSaaannniii tttaaattt iiiooonnn

CCCooommmmmm... MMMooobbb...

HHHyyygggiiieeennneee ppprrrooommmooottt iiiooonnn

MMM&&&EEE

TTTrrraaadddiii ttt iiiooonnnaaalll LLLeeeaaadddeeerrr

CCCDDDAAA

WWWAAASSSCCCOOOMMM

CCCBBBOOOsss

WWWaaattteeerrr SSSuuupppppplllyyy/// WWWeeelll lll

DDDiiiggggggeeerrr

PPPuuummmppp MMMeeeccchhhaaannniiicccsss

LLLaaattt rrr iiinnneee AAArrr ttt iii sssaaannnsss

SSSaaannniii tttaaattt iiiooonnn aaannnddd

HHHyyygggiiieeennneee ppprrrooommmooottt iiiooonnn

Annex 5

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Summary of Bank Group On-Going Operations

Project name Source of Finance

Approval date

Signature date

Closing date Effective date

Last Disb. Approved Amount

Undisb. Balance

Total Disb

Net Loan

Disb Rate (%)

Sector: Agriculture

1 Community- Based Agric. & Rural Development Project

ADF Loan 11.09.03 12.12.03 31.12.2011 040504 27.04.06 13.00 12.48 0.52 13.00 3.93%

2 Institutional Support to Agric. & Rural Institut. ADF Grant 27.04.05 17.05.05 31-05-09 17-05-05 06-06-07 3.00 2.92 0.76- 3.00 2.54%

3 National Fadama Development Project (NFDP) ADF Loan 10.12.03 12.12.03 31.12.2011 03-05-04 18-01-07 22.00 19.20 2.80 22.00 12.74%

4 Support to the Nat. Progr. for Food Security in Ekiti, Ondo and CRS States (NPFS)

ADF Loan 18.10.06 26.02.07 31.12.13 -------- ----------- 22.00 22.00 - 22.00 0.0%

Sector : Environment 5 Niger Delta Social and Environmental Study ADF Grant 30.06.04 29.07.04 31-10-07 29-07-04 10-07-07 1.70 0.19 1.51 1.70 89.09%

Sector : Transport 6 Olokola Seaport & Free Trade Zone Study ADF Grant 27.04.05 17.05.05 31.12.2008 --------- ----------- 1.20 1.20 - 1.20 0.0%

Sector : Social

7 Community-Based Poverty Red. Project (CPRP) ADF Loan 03.11.00 02.02.01 31.12.2007 11.09.02 21-05-07 20.00 12.97 7.03 20 35.15 8 Health Systems Development Project (IV) (HSDP) ADF Loan 11.09.02 15.10.02 31.12.2008 16-12-03 22-06-07 34.74 21.51 13.23 34.74 38.09%

Sector : Multi-Sector 9 Skill Training and Vocational Educ. Project ADF Loan 27.07.05 22.05.06 31.12.11 ------- ------ 30.00 30.00 30.00

10 Institutional Support for Governance and Capacity Building

ADF Grant 18.10.01 07.12.01 31-12-07 26-04-02 09-03-07 4.00 2.29 1.71 4.00 42.75%

Multinational Project

11 NEPA-CEB Power Interconnection ADF Loan 27.11.02 25.03.03 29-09-03

30.06.07 08.12.03 01-01-04

10-07-07 04-10-06

11.87 0.69

4..32 0.18

7.55 0.51

11.87 0.69

63.61% 73.95%

12 Capacity Building Inter-African Coffee Organization (IACO)

ADF Grant 23.07.03 09.10.03 31.12.07 11.10.03 28-06-07 1.54 1.29 0.25 1.54 16.38%

13 Invasive Aquatic Weeds Project ADF Loan 22.09.04 11.02.05 31.12.11 18.07.06 25-05-07 1.61 1.50 0.11 1.61 6.57%

14 NERICA Dissemination Project ADF Loan 26.09.03 12.12.03 31.12.10 05.02.05 08.07.05 5.57 5.30 0.26 5.57 4.7%

TOTAL 172.92 137.35 35.56 172.97 20.56%

Annex 6

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Technology Choices for Rural Water Supply and Sanitation Schemes

Rehabilitation cost USD Construction cost USD Water Technology Hand dug wells with hand pump/ spring 468.75 976.46 BH with hand pump 468.75 5507.81 Motorized BH 1562.50 63,778.75 Sanitation Technology Sanplat- household Latrine 9.38 Household VIP Laterine 42.18 Multi compartment VIP Latrine 1171.88

Type of Technology Economy /Income Population (000s) Livestock Low Medium High <.5 0.5-1.0 1.0-2.0 >2.0 1 H.D.W+ HP √ √ √ 2 S.W+HP √ √ 3 S.W+MP+ER √ √ 4 S.W+MP+DS √ 5 S.W+MP+E.R+C.T √ 6 Sp O.S.D √ √ 7 Sp(Gravity ) √ √ √ 8 Sp+ MP+D-S √ √ √ 9 B.H on spot √ √ √ 10 B. H+ MP+R+D-S √ √ 11 B.H +MP+R+DS+W.P √ √ 12 Ponds √ √ √ 13 Pond +W.P √ √ √ 14 Cistern √ √ √ √ 15 Roof catchments √ √ √ √ 16 Sub surface dam √ √ √

Acronyms & Abbreviations H.D.W = Hand dug wells H.P = Hand pump S.W = Shallow well M.P = Motorized Pump E.R. = Elevated reservoir C.T = Cattle trough BH = Borehole D.S = Distribution system R = Reservoir

(P) W.P = (Public) Water Point I.P = Internal plumbing Y.C = Yard connection O.S.D = On spot distribution T.P = Treatment plant I.G = Infiltration Gallery Sp = Spring G = Gravity S.I = surface intake

Annex 7

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Summary of States Investment Sub-Programmes in NGN

State 2006-2010 2011-2015 Total 1 Jigawa 2,930,649,882 3,334,674,897 6,265,324,7792 Kaduna 10,387,814,214 5,031,768,207 15,419,582,4213 Kano 9,675,023,788 6,752,287,352 16,427,311,1404 Katsina 5,733,850,973 3,905,943,845 9,639,794,8185 Kebbi 3,997,603,899 3,272,502,683 7,270,106,5836 Sokoto 4,040,078,615 2,806,119,452 6,846,198,0677 Zamfara 2,900,917,435 1,998,541,524 4,899,458,958 Total North West 39,665,938,807 27,101,837,960 66,767,776,7678 Benue 8,171,181,771 5,010,483,439 13,181,665,2109 FCT Abuja 937,583,918 770,001,919 1,707,585,838

10 Kogi 3,401,152,739 2,788,062,528 6,189,215,26711 Kwara 3,571,118,438 2,988,109,315 6,559,227,75312 Nasarawa 3,016,777,445 1,900,410,311 4,917,187,75613 Niger 8,174,150,285 4,555,104,202 12,729,254,48714 Plateau 2,741,411,287 1,894,968,720 4,636,380,006 Total North Central 30,013,375,883 19,907,140,434 49,920,516,317

15 Adamawa 3,547,170,247 2,557,333,297 6,104,503,54416 Bauchi 2,358,113,959 2,424,591,220 4,782,705,17917 Borno 4,491,274,831 2,813,519,890 7,304,794,72218 Gombe 1,207,397,340 1,091,677,261 2,299,074,60019 Taraba 3,109,789,675 2,975,439,431 6,085,229,10620 Yobe 4,790,967,118 3,436,401,105 8,227,368,223 Total North East 19,504,713,169 15,298,962,204 34,803,675,373

21 Ekiti 2,000,456,753 1,802,212,012 3,802,668,76522 Lagos 6,832,591,399 5,894,797,934 12,727,389,33323 Ogun 5,146,307,122 3,210,961,478 8,357,268,60124 Ondo 4,396,828,166 2,662,888,350 7,059,716,51625 Osun 1,663,733,544 1,245,999,031 2,909,732,57526 Oyo 3,457,976,560 2,555,328,180 6,013,304,739 Total South West 23,497,893,544 17,372,186,985 40,870,080,529

27 Akwa Ibom 5,999,112,162 3,334,515,393 9,333,627,55428 Bayelsa 3,087,123,809 2,347,100,276 5,434,224,08529 Cross River 2,943,036,050 2,388,560,389 5,331,596,43930 Delta 6,412,556,465 3,719,065,864 10,131,622,32831 Edo 3,982,994,131 2,984,693,638 6,967,687,76932 Rivers 5,936,026,183 3,031,242,354 8,967,268,537 Total South South 28,360,848,799 17,805,177,913 46,166,026,713

33 Abia 2,779,329,880 1,922,559,036 4,701,888,91634 Anambra 2,513,671,564 1,964,180,332 4,477,851,89635 Ebonyi 4,087,213,679 3,112,409,825 7,199,623,50536 Enugu 2,464,437,342 1,819,595,910 4,284,033,25237 Imo 2,631,969,308 1,938,648,317 4,570,617,625 Total South East 14,476,621,773 10,757,393,421 25,234,015,194 Total 157,582,199,372 109,795,035,858 267,377,235,229

Annex 8 Page 1/4

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Environmental and social Management Plan Summary Project Title: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Country: Nigeria Project Number: P-NG-E00-002 Department: Division: OWAS 1

1. Introduction 1.1 The sub-programmes will be implemented in two relatively stable zones (Osun and Yobe), contribute to a rural community development and lead to an overall environmental and health-improvement. In accordance with the Bank’s environmental and social safeguard policies, the rural water supply and sanitation program has been classified under category 2. As a consequence, an environmental and social management plan (ESMP) was prepared by the Government through a consultant in accordance with the national policies and the Bank’s safeguard policies. The ESMP has been disclosed in the country for 21 days in accordance with the legal national requirements and in the Bank’s public information center for 30 days prior to Board approval of the sub-programmes in July 2007. 2. Brief Description of the Sub-Programmes

2.1 The sub-programmes involve provision of water supply, sanitation and hygiene education and capacity building. In addition, support will be provided to enhance the process of mainstreaming sector policies, institutional strengthening at the federal, state and local levels to manage implementation of the sub-programmes and ensure effective monitoring, evaluation and feedback. The sub-programmes comprise three components, namely: (i) Infrastructure Provision, (ii) Capacity Building and (iii) Program Support. 3. Major Environmental and Social Impacts

Positive Impacts 3.1 Provision of adequate potable water and improved sanitation facilities as well as promotion of hygiene education, environmental awareness, protection of river basin catchment areas, sensitization of the population on water borne diseases, and promotion of water conservation will contribute to improve the living standards of the rural population of Yobe and Osun. Therefore, implementing these sub-programmes through the construction of physical facilities including motorized and hand pumps boreholes, rural community pipes schemes, sanitation facilities including household latrines, public latrines, septic tanks, and provision of rain water harvesting tanks will lead to improve the health standards of selected communities. During the field appraisal and discussions held with all stakeholders, it was concluded that these sub-programmes will invariably contribute to the improvement of the physical and social environment and the living conditions of the communities at large. The sub-programmes targets are to increase the water coverage from 46.4% in Yobe and 44.72% in Osun to 100% of the 2015 population. The sanitation coverage will be increased from 33.6% in Yobe and 29.20% in Osun to 90% of the 2015 population.

Annex 8 Page 2/4

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Environmental and social Management Plan Summary

Negative Impacts 3.2 Implementation of the sub-programmes will lead to limited negative impacts. These impacts are of the following nature: i) impacts mainly occurring during construction phase - air pollution through dust, land surface pollution through flooding, damage to existing paved and unpaved roads, soil degradation/erosion, noise pollution and occasional destruction of property walls due to drilling of water wells e.g., loss of cash crops, trees, vegetation and natural habitats, loss of jobs to water vendors; and ii) impacts observed during op–ration - potential over-exploitation of groundwater resources leading to lowering of the water table and possible shift in groundwater equilibrium, possible draw-down of existing water sources, upset in regional water balance and distortions in surface water, land subsidence and soil instability, inadequate drainage around the water supply points, spillage and creation of unhealthy environment around the water and sanitation facilities due to pool of water around the water points, pollution of the groundwater if the sanitation facilities are not well sited and located at an approve distance from streams and rivers, and uncontrolled discharge of septic tanks carelessly emptied into the drainage systems, and inability of the very poor, infirm and economically very weak segment of the population to pay for the water they consume. Above impacts could be easily mitigated by well defined mitigation measures. 4. Enhancement and Mitigation Measures 4.1 During the implementation phase, the mitigating measures will include the proper design and ensuring that wells and boreholes are protected and the latrines are properly sited and constructed. All the boreholes and standpipes will be integrated with adopted standard-designed well pads and drainage channels to carry wastewater into soak away. Monitoring of the aquifers will ensure avoidance of over-exploitation of the groundwater and prevent soil subsidence. Regular water quality analyses will be undertaken by accredited state laboratories on behalf of the Rural Water Supply and Sanitation (RWSS) Agencies with respect of the parameters required for monitoring and compliance with the national and state wide potable water standards. 4.2 Intensive sensitization programs have been incorporated into the sub-programmes to ensure adequate capacity building of the rural communities in general and women and school children in particular, on environmental health and impact of water-borne diseases and their prevention. These awareness and capacity building programs will empower communities to better manage their water facilities and operate and maintain their safe drinking water facilities and toilet points. The program will also cater for the groundwater basin monitoring and management of catchment water basins through the support to communities. The basins management activities will assist to contain water and soil erosion and help to sensitize the population on the significance o environmentally sensitive issues and the need and methods for their protection. This initiative will complement the efforts being made by the various Forestry Department in the Ministries at State level to arrest the problem of desertification and deforestation as well as environmental degradation. 5. Institutional Arrangements and Capacity Building Requirements 5.1 In order to reinforce the follow up of the environmental and social impacts, a Community Development/Environment Technical Assistant will be recruited by the program, to assist and train the Environment and Sanitation Officers, posted at the RWSS Agencies, and those at the WES Departments and the WASCOMs, for the supervision and monitoring of the environmental measures and for the preparation and supervision of the environmental health and sanitation sensitization campaigns. He/She will supervise, together with the environmental health officers, the implementation of the environmental mitigation measures elaborated in the Environmental and Social Management Plan and well as the Resettlement Policy Framework. He/She will also prepare, in collaboration with the State Environmental Protection Agencies and Department (SEAD) and

Annex 8 Page 3/4

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Environmental and social Management Plan Summary the Federal Ministry of Environment and Housing (FMEH), a detailed checklist and environmental and social monitoring program, with clearly defined indicators for implementation. He/She will also be responsible for guidance and supervision of the WASCOMs (Water and Sanitation Committees) to draft guidelines and rules for accessing and protecting the water facilities, preventing inappropriate wastewater disposal and encouraging household members to build and use latrines. The SEAD would be solicited to advise on some unexpected impacts that could ensue during the program implementation. 6. Monitoring Program and Complementary Initiatives 6.1 Environmental monitoring needs to be carried out during the construction as well as operation and maintenance of the projects in order to measure the success of the mitigation measures implemented earlier. The objective for monitoring is to determine whether the mitigation measures designed into the Osun State RUWESA and Yobe State RUWASA project activities have been successful in such a way that sub-programmes environmental and social conditions have been restored, improved upon or worst than before and to determine what further mitigation measures may be required. 6.2 It is planned that the environmental and social impacts and their designed mitigation measures are to be monitored during implementation (construction/rehabilitation works) and operation including maintenance) stages of the agencies projects’ activities. The roles and responsibilities for monitoring impacts and mitigation measures will be as follows: the State RWSS agencies (Osun State RUWESA and Yobe State RUWASA) will monitor and evaluate the environmental and social impacts of project activities and the mitigation measures designed, regularly and as frequently as specified in the sub-programmes ESIA and will maintain suitable records to be made available to their respective SEPA. 6.3 Therefore, wherever environmental and social impacts are attributable to their sub project activities, the appropriate mitigation measures will apply consistent with the sub project ESIA, and they would be responsible for monitoring and evaluating the same. The agency will report to their agencies and to the Federal Ministry of Agriculture and Water Resources (FMAWR). Key indicators will be used to determine the status of affected people and their environment. Sub-programmes specific activities will set each three goals by which their success or otherwise can be evaluated: affected individuals, households, and communities are able to maintain or improve upon their pre sub-programmes standard of living, the sub-programmes environmental state of natural resources, bio-diversity and flora and fauna, been maintained or improved upon; and local communities remain supportive of the sub-programmes. In order to assess whether these are met, the sub-programmes will indicate parameters to be monitored, institute monitoring milestones and provide resources necessary to carry out the monitoring activities. 6.4 A comprehensive training needs assessment and development of a training strategy and plan will be carried out. There is a provision for technical assistance to provide training and capacity building to the staff of the Rural Water Supply and Sanitation Division (RWSSD), state agencies Osun state RUWESA and Yobe state RUWASA; and their respective LGA RWSS staff. Environmental and social specialists from the Federal Ministry of Environment and Housing (FMEH) would be seconded to the Federal Ministry of Agriculture and Water Resources (FMAWR) to help build the capacity of the Rural Water Supply and Sanitation Division (RWSSD). During the course of sub-programmes implementation, an Environmental sub-unit would be established within FMAWR. This unit would be assigned the responsibility of overseeing the overall implementation of the ESMP in the two states. 6.5 At the state level, Osun and Yobe states’ RWSS agencies would have environmental and social specialists also seconded from their respective State Environmental Agencies (SEPA), who would assist to build the capacity of their environmental sanitation and health officers. The objective is to equip these technical staff with the necessary skills to implement the ESMP thereby ensuring that the project activities

Annex 8 Page 4/4

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Environmental and social Management Plan Summary under the sub-programmes are environmentally sustainable. At the Local Government level, environmental, social and sanitation issues are domiciled in the Water and Environmental Sanitation unit (WES). Environmental Health officers in each WES would be trained to adequately administer and use equipments for testing at sub-project sites. At the community level, the WES/WASH, WASCOM, WESCOM and community members would be trained on how to screen projects activities, implement and monitor environmental management plans. 7. Public Consultations and Disclosure Requirements 7.1 Public participation and consultations would take place through workshops, meetings, radio programs, public readings and explanations of project ideas and requirements, as needed to meet the above objective. Public documents would be made available at the, federal, state and local levels at suitable locations like the offices of the FMAWR, the SEPA’s (OSEPA and YSEPA), Osun State RUWESA, Yobe State RUWASA, local RWSS departments and at Osun and Yobe states’/public libraries, complying with federal and state laws regarding disclosure of public documents. These measures would take into account the low literacy levels prevalent in these communities by allowing enough time for responses and feedback. 7.2 Consultations will be monitored by FMEH, OSEPA and YSEPA who will set their own verifiable indicators to assess the degree of participation of the key stakeholders during all phases of sub-programmes implementation. 8. Estimated Costs 8.1 The cost of environmental mitigation in Osun and Yobe states are seven hundred thirty seven thousand and eight hundred fourteen US dollars (USD 737,814) and one million two hundred fifty three thousand and nine hundred seventeen US dollars (USD 1,253,917), respectively. The total cost for the two states is estimated as one million, nine hundred ninety one and seven hundred thirty one US dollars (USD 1,991,731). The cost for mitigation of social capacity building, training; awareness campaigns; management and monitoring is included under relevant component of the sub-programmes. 9. Implementation Schedule and Reporting 9.1 The ESMP will be implemented through the use of existing local government, regional and national structures. However, these institutions need strengthening through training to build their capacities. Successful implementation of the ESMP and reporting will require dynamic and multi-disciplinary professionals that have general knowledge in environment management and specific skills in the use of the ESMP and the screening process. Short and tailor-made training courses and seminars will be required to reinforce the capacity and skills of the key stakeholders and officers, to carry out the environmental management activities of the ESMP. In particular, the key stakeholders participating in the RWSS programme will require capacity building. 9.2 For the purpose of the implementation of the ESMP, there is a lack of awareness and well-trained personnel to grapple with the environmental, social and health impacts of the RWSSP. Intensive awareness campaigns and capacity-building programmes been incorporated into the overall design. Emphasis would be made at the rural community level to impact this knowledge to all stakeholders most especially school children and women which are most vulnerable. Due to the size of the communities and intensity of the campaign, Environmental health officers of the Health Departments in the Osun state RUWESA; Yobe state RUWASA; OSEPA; YSEPA; LGAs, WES/WASH, WASCOM, WESCOM, CBOs and NGOs will be used to adequately carry out these campaigns.

Annex 9

Page 1/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Detailed Cost Estimates

Components NGN UA F.C. L.C Tot. F.C. L.C Tot. 1 INFRASTRUCTURE PROVISION 3,072,334,502 4,298,811,568 7,371,146,070 16,045,030 22,450,212 38,495,243 1.1 Water Facilities 2,953,621,015 3,230,390,185 6,184,011,200 15,425,058 16,870,464 32,295,522 1.1.1 HDW Rehabilitation and Construction 1.1.1.1 HDW Rehabilitation(, spring and others 19,944,000 46,536,000 66,480,000 104,156 243,031 347,187 1.1.1.2 HDW Construction 159,666,893 135,302,427 294,969,320 833,848 706,607 1,540,455 1.1.2 HP-BH Rehabilitation and Construction 1.1.2.1 HP-BH Rehabilitation 33,336,000 77,784,000 111,120,000 174,095 406,221 580,316 1.1.2.2 HP-BH construction 806,002,629 683,010,171 1,489,012,800 4,209,287 3,566,968 7,776,255 1.1.2.3 HP-BH public 32,923,500 296,311,500 329,235,000 171,940 1,547,464 1,719,404 1.1.2.4 HP-BH Schools 32,994,000 296,946,000 329,940,000 172,309 1,550,778 1,723,086 1.1.3 M-BH Rehabilitation and Construction 1.1.3.1 M-BH Rehabilitation 74,640,000 174,160,000 248,800,000 389,802 909,537 1,299,339 1.1.3.2 M-BH construction 1,794,113,994 1,520,340,086 3,314,454,080 9,369,622 7,939,859 17,309,481 1.2 Sanitation Facilities 93,459,660 841,136,940 934,596,600 488,086 4,392,773 4,880,859 1.2.1 Sanplat Household Latrine 22,958,520 206,626,680 229,585,200 119,899 1,079,092 1,198,991 1.2.2 VIP Latrine Household 31,531,140 283,780,260 315,311,400 164,669 1,482,021 1,646,690 1.2.3 Multi Compartment VIP Latrines public 19,485,000 175,365,000 194,850,000 101,759 915,830 1,017,589 1.2.4 Multi Compartment VIP Latrines schools 19,485,000 175,365,000 194,850,000 101,759 915,830 1,017,589 1.3 Environmental Works 25,253,827 227,284,443 252,538,270 131,886 1,186,976 1,318,862 2 CAPACITY BUILDING 490,862,239 478,332,837 969,195,076 2,563,490 2,498,056 5,061,547 2.1 Community Mobiliz.and Hygiene Promotion 35,240,600 317,165,400 352,406,000 184,041 1,656,372 1,840,413 2.1.1 Community Management Structure 2,306,730 20,760,570 23,067,300 12,047 108,420 120,467 2.1.2 Project launching (State, LGA and Communities) 6,907,330 62,165,970 69,073,300 36,073 324,657 360,730 2.1.3 Advocacy of Policy and RWSS Programme 4,702,555 42,322,995 47,025,550 24,559 221,029 245,587 2.1.4 IEC and Social marketing 6,087,885 54,790,965 60,878,850 31,794 286,142 317,935 2.1.5 Hygiene promotion 11,129,300 100,163,700 111,293,000 58,122 523,097 581,219 2.1.6 Start up of Regular WSS publications 1,878,400 16,905,600 18,784,000 9,810 88,288 98,098 2.1.7 Manuals , guidelines, etc 1,060,000 9,540,000 10,600,000 5,536 49,822 55,358 2.1.8 Workshops, Seminars, Consultative Campaigns 111,650 1,004,850 1,116,500 583 5,248 5,831 2.1.9 Support Youth / Women Clubs on WSS 212,000 1,908,000 2,120,000 1,107 9,964 11,072 2.1.10 Dedicated Radio and Newspaper Programs on WSS 331,250 2,981,250 3,312,500 1,730 15,569 17,299 2.1.11 Completion and Updating of Water-Sanitation Policy 198,750 1,788,750 1,987,500 1,038 9,342 10,380 2.1.12 Policies and Strategies Implementation Guidelines 314,750 2,832,750 3,147,500 1,644 14,794 16,438 2.2 Institutional Support 118,857,425 112,227,825 231,085,250 620,724 586,101 1,206,825 2.2.1 Hydrogeological Management system 2,516,325 1,078,425 3,594,750 13,141 5,632 18,773 2.2.2 Programme Management System 2,516,325 1,078,425 3,594,750 13,141 5,632 18,773 2.2.3 Contract Management System 11,371,325 4,873,425 16,244,750 59,386 25,451 84,837 2.2.4 Financial Management System 11,336,325 4,858,425 16,194,750 59,203 25,373 84,576 2.2.5 Technical and Engineering System 24,172,400 10,359,600 34,532,000 126,238 54,102 180,341 2.2.6 Personal Management System 11,371,325 4,873,425 16,244,750 59,386 25,451 84,837 2.2.7 Information Management System 11,371,325 4,873,425 16,244,750 59,386 25,451 84,837 2.2.8 M & E System 19,341,700 8,289,300 27,631,000 101,011 43,290 144,301 2.2.9 Advocacy and Mobilization System 1,624,475 14,620,275 16,244,750 8,484 76,353 84,837 2.2.10 Operation and Maintenance System 2,365,900 21,293,100 23,659,000 12,356 111,202 123,557 2.2.11 Water Resources Administration 8,855,000 3,795,000 12,650,000 46,245 19,819 66,064 2.2.12 Programme and Project cycle Management System 8,855,000 3,795,000 12,650,000 46,245 19,819 66,064 2.2.13 Water Quality Management System 1,580,000 14,220,000 15,800,000 8,251 74,263 82,514 2.2.14 Donor Coordination and ESA Financial Assistance 1,580,000 14,220,000 15,800,000 8,251 74,263 82,514 2.3 Equipping RWSS Institutions 287,377,573 31,682,683 319,060,256 1,500,807 165,460 1,666,268 2.3.1 Operational Equipment 2.3.1.1 Four wheel drive Vehicles 15,951,397 1,758,603 17,710,000 83,305 9,184 92,489 2.3.1.2 Motor Cycles 279,262 30,788 310,050 1,458 161 1,619

Annex 9

Page 2/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Detailed Cost Estimates

Components NGN UA F.C. L.C Tot. F.C. L.C Tot. 2.3.1.3 Safety Gears and First Aid Kits 1,106,510 121,990 1,228,500 5,779 637 6,416 2.3.1.4 Mobile Workshop (all terrain) 34,226,600 3,773,400 38,000,000 178,746 19,706 198,452 2.3.1.5 VLOM Tools 13,378,322 1,474,928 14,853,250 69,867 7,703 77,570 2.3.1.6 Operation and Maintenance Manual 7,160,565 789,435 7,950,000 37,395 4,123 41,518 2.3.1.7 Lab Equipment 37,670,931 4,153,129 41,824,060 196,734 21,689 218,423 2.3.1.8 Geophysical Instruments 1,844,562 203,358 2,047,920 9,633 1,062 10,695 2.3.1.9 Water Level Indicators 243,459 26,841 270,300 1,271 140 1,412 2.3.1.10 Sounding Wires 189,767 20,921 210,688 991 109 1,100 2.3.1.11 G.P.S. 2,280,670 251,438 2,532,108 11,911 1,313 13,224 2.3.1.12 CCTV Cameras 1,134,882 125,118 1,260,000 5,927 653 6,580 2.3.1.13 Flow Meters (Digital) 631,562 69,628 701,190 3,298 364 3,662 2.3.1.14 Logging Instrument 2,169,651 239,199 2,408,850 11,331 1,249 12,580 2.3.1.15 Engineering Software 7,782,048 857,952 8,640,000 40,641 4,481 45,122 2.3.1.16 Survey Equipments 55,483,120 6,116,880 61,600,000 289,756 31,945 321,701 2.3.2 IT Equipment 2.3.2.1 GIS System 4,953,850 546,150 5,500,000 25,871 2,852 28,723 2.3.2.2 Satellite Imagery Facilities 2,815,588 310,412 3,126,000 14,704 1,621 16,325 2.3.2.3 Cameras (Video and Digital Camera) 1,790,141 197,359 1,987,500 9,349 1,031 10,380 2.3.2.4 Lap Tops 1,898,847 209,343 2,108,190 9,917 1,093 11,010 2.3.2.5 Computers and Software 8,895,088 980,662 9,875,750 46,454 5,121 51,575 2.3.2.6 LAN Server and System 9,711,302 1,070,648 10,781,950 50,717 5,591 56,308 2.3.2.7 WAN Facilities 9,248,095 1,019,580 10,267,675 48,297 5,325 53,622 2.3.3 Office Equipment and Supplies 2.3.3.1 Printers 633,233 69,812 703,045 3,307 365 3,672 2.3.3.2 Photocopiers 759,393 83,721 843,114 3,966 437 4,403 2.3.3.3 Scanners 435,362 47,998 483,360 2,274 251 2,524 2.3.3.4 Fax machines 572,845 63,155 636,000 2,992 330 3,321 2.3.3.5 Internet Facilities 28,642,260 3,157,740 31,800,000 149,582 16,491 166,073 2.3.3.6 Flash Disks 253,142 27,908 281,050 1,322 146 1,468 2.3.3.7 Power Point Projector 542,425 59,801 602,226 2,833 312 3,145 2.3.3.8 Power Sources (Generators) 4,520,703 498,397 5,019,100 23,609 2,603 26,212 2.3.3.9 U.P.S. 4,988,527 549,973 5,538,500 26,052 2,872 28,924 2.3.3.10 Video Conference Facility 2,386,855 263,145 2,650,000 12,465 1,374 13,839 2.3.3.11 Vehicles 16,149,551 1,780,449 17,930,000 84,340 9,298 93,638 2.3.3.12 Completion of Project Office 6,647,058 732,822 7,379,880 34,714 3,827 38,541 2.4 Training and Competence Building 49,387073 17,254,942 66,591,788 257,910 89,807 346,726 2.4.1 Community Mobilization-LGA and Communities 1,703,432 425,858 2,129,290 8,896 2,224 11,120 2.4.2 Hydrogeology-State and LGA 1,006,000 251,500 1,257,500 5,254 1,313 6,567 2.4.3 Project Management and Supervision 1,006,000 251,500 1,257,500 5,254 1,313 6,567 2.4.4 Training of Trainers (TOT) 1,060,000 265,000 1,325,000 5,536 1,384 6,920 2.4.5 Training on Software Application 616,000 154,000 770,000 3,217 804 4,021 2.4.6 Advocacy Promotion and Sensitization 1,702,744 425,686 2,128,430 8,892 2,223 11,116 2.4.7 Operation and Maintenance 1,006,000 251,500 1,257,500 5,254 1,313 6,567 2.4.8 Computer Hardware and Software Maintenance 1,006,000 251,500 1,257,500 5,254 1,313 6,567 2.4.9 Training for Local Informal Sector Entrepreneurs 3,837,656 959,414 4,797,070 20,042 5,010 25,052 2.4.10 M & E 2,811,800 702,950 3,514,750 14,684 3,671 18,356 2.4.11 Financial Management 1,978,200 494,550 2,472,750 10,331 2,583 12,914 2.4.12 Procurement and Supply Management 1,748,000 437,000 2,185,000 9,129 2,282 11,411 2.4.13 Sanitation 2,959,888 739,972 3,699,860 15,458 3,864 19,322 2.4.14 G.I.S/MIS Training 2,490,848 622,712 3,113,560 13,008 3,252 16,260 2.4.15 Appropriate Technology Training 2,343,144 585,786 2,928,930 12,237 3,059 15,296 2.4.16 Support to Potential Professionals in Schools 2,988,000 747,000 3,735,000 15,605 3,901 19,506 2.4.17 Support Public and Private Training Institutes 9,985,200 2,496,300 12,481,500 52,147 13,037 65,184 2.4.18 Support NGOs 3,720,000 930,000 4,650,000 19,427 4,857 24,284 2.4.19 Seminars and Workshops 3,060,800 765,200 3,826,000 15,985 3,996 19,981 2.4.20 Policy and Strategy Development 308,250 719,250 1,027,500 1,610 3,756 5,366 2.4.21 Institutional Development 228,750 533,750 762,500 1,195 2,787 3,982 2.4.22 Engineering Economics 278,250 649,250 927,500 1,453 3,391 4,844 2.4.23 Water Resources Management 192,000 448,000 640,000 1,003 2,340 3,342 2.4.24 Legislation, Regulation and Water Law 278,250 649,250 927,500 1,453 3,391 4,844 2.4.25 Water Quality Management 1,071,429 2,500,001 3,571,430 5,595 13,056 18,652

Annex 9

Page 3/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Detailed Cost Estimates

Components NGN UA F.C. L.C Tot. F.C. L.C Tot. 3 MANAGEMENT SUPPORT 399,982,613 261,803,681 661,786,294 2,088,878 1,367,250 3,456,128 3.1 Monitoring and Evaluation 65,557,714 39,217,280 104,774,994 342,370 204,809 547,179 3.1.1 Water Points and Sanitation Survey 13,905,252 8,318,261 22,223,513 72,619 43,441 116,061 3.1.2 WASH Clinic Meetings 1,647,925 985,805 2,633,730 8,606 5,148 13,754 3.1.3 Develop and Install MIS 16,812,428 10,057,362 26,869,790 87,802 52,524 140,325 3.1.4 Annual and Midterm Reviews 13,057,577 7,811,173 20,868,750 68,192 40,793 108,985 3.1.5 Joint Evaluation Exercises with Stakeholders 14,956,357 8,947,043 23,903,400 78,108 46,725 124,834 3.1.6 Strengthen Donor Coordination Unit 5,178,175 3,097,636 8,275,811 27,043 16,177 43,220 3.2 Technical Assistance and Consultancy Services 156,976,010 46,288,991 203,265,000 819,795 241,741 1,061,536 3.2.1 Community Development Consultancy Services 26,712,000 6,678,000 33,390,000 139,501 34,875 174,377 3.2.2 Environmental Assistance 13,704,000 3,426,000 17,130,000 71,568 17,892 89,460 3.2.3 Institutional Consultancy Services 27,432,000 6,858,000 34,290,000 143,262 35,815 179,077 3.2.4 Financial Management TA 14,940,000 3,735,000 18,675,000 78,023 19,506 97,529 3.2.5 Procurement TA 21,468,000 5,367,000 26,835,000 112,115 28,029 140,144 3.2.6 MIS operation TA 32,488,000 8,122,000 40,610,000 169,666 42,417 212,083 3.2.7 Project Management TA 5,449,847 3,260,153 8,710,000 28,461 17,026 45,487 3.2.8 Policy and Strategy Consultancy Services 6,335,213 3,789,788 10,125,000 33,085 19,792 52,877 3.2.9 Water Law and Regulations Consultancy Services 4,223,475 2,526,525 6,750,000 22,057 13,195 35,251 3.2.10 Water Economics consultancy services 4,223,475 2,526,525 6,750,000 22,057 13,195 35,251 3.3 Studies and Research 32,133,690 139,968,610 172,102,300 167,816 730,975 898,791 3.3.1 BP Pump Initiative 1,372,050 7,774,950 9,147,000 7,165 40,604 47,770 3.3.2 Hygiene Improv. Options in Rural Communities 878,100 4,975,900 5,854,000 4,586 25,986 30,572 3.3.3 Appropriate Technology 4,780,733 27,090,818 31,871,550 24,967 141,480 166,447 3.3.4 Hydrogeological Survey and Study 1,669,155 9,458,545 11,127,700 8,717 49,397 58,114 3.3.5 Water Quality Management 1,470,105 8,330,595 9,800,700 7,678 43,506 51,183 3.3.6 Traditional Aspects for Rural Sanitation 857,625 4,859,875 5,717,500 4,479 25,380 29,859 3.3.7 Groundwater Mapping 2,177,685 12,340,215 14,517,900 11,373 64,446 75,819 3.3.8 Translation of Manual into Local Languages 784,050 4,442,950 5,227,000 4,095 23,203 27,298 3.3.9 Local Hand Jetting Tip Tip Initiative 1,335,338 7,566,913 8,902,250 6,974 39,518 46,491 3.3.10 Research on CBOs/NGOs 808,575 4,581,925 5,390,500 4,223 23,929 28,151 3.3.11 Study on Informal Sector Service Providers 661,545 3,748,755 4,410,300 3,455 19,578 23,032 3.3.12 Shallow Wells and Spring Develop. Technology 980,085 5,553,815 6,533,900 5,118 29,004 34,123 3.3.13 Integrated Survey of EM and Resistivity 612,555 3,471,145 4,083,700 3,199 18,128 21,327 3.3.14 PPP/PSB 1,109,400 6,286,600 7,396,000 5,794 32,831 38,625 3.3.15 Water Use Efficiency 795,000 1,855,000 2,650,000 4,152 9,688 13,839 3.3.16 VLOM Technology and Management 2,976,000 6,944,000 9,920,000 15,542 36,265 51,806 3.3.17 Water Quality Management 2,385,000 5,565,000 7,950,000 12,455 29,063 41,518 3.3.18 Water Fees/ Charges 1,389,060 3,241,140 4,630,200 7,254 16,927 24,181 3.3.19 O&M Strategies 1,272,000 2,968,000 4,240,000 6,643 15,500 22,143 3.3.20 Water Sector Code of Practice 1,434,750 3,347,750 4,782,500 7,493 17,483 24,976 3.3.21 WSS Intervention Impacts 1,311,720 3,060,680 4,372,400 6,850 15,984 22,835 3.3.22 WSS Standards and Manuals 1,073,160 2,504,040 3,577,200 5,604 13,077 18,682 3.4 Management Expenses 145,315,200 36,328,800 181,644,000 758,897 189,724 948,622 3.4.1 Auditing of Accounts 30,720,000 7,680,000 38,400,000 160,433 40,108 200,541 3.4.2 Personnel allowances 94,869,600 23,717,400 118,587,000 495,449 123,862 619,311 3.4.3 Operating Expenses 19,725,600 4,931,400 24,657,000 103,015 25,754 128,769 Base Cost 3,963,179,354 5,038,948,086 9,002,127,440 20,697,399 26,319,518 47,016,917 Physical Contingencies 396,317,935 504,525,534 900,843,469 2,069,740 2,651,736 4,721,476 Price Contingencies 488,182,497 624,331,962 1,112,514,459 2,549,495 3,260,526 5,810,021 Total Cost 4,847,679,786 6,167,805,582 11,015,485,368 25,316,634 32,231,780 57,548,414

Annex. 10 Page 1/2

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Provisional List of Goods, Works and Services (in UA) Categories Total ADF Gov’ts/ Beneficiaries

F.C L.C Tot F.C L.C Tot F.C L.C Tot YOBE STATE 1 Works 14,880,895 20,742,557 35,623,452 14,880,895 17,240,181 32,121,076 0 3,502,376 3,502,376 HDWs 875,715 907,935 1,783,650 875,715 453,968 1,329,683 0 453,968 453,968 HP-BHs 4,281,097 6,470,292 10,751,389 4,281,097 5,176,234 9,457,331 0 1,294,058 1,294,058 M-BHs 9,163,159 8,316,013 17,479,172 9,163,159 6,652,810 15,815,970 0 1,663,203 1,663,203 Sanplat Latrine 110,050 990,446 1,100,496 110,050 990,446 1,100,496 0 0 0 VIP Household Latrines 163,290 1,469,608 1,632,897 163,290 1,469,608 1,632,897 0 0 0 VIP Public Latrines 93,155 838,393 931,547 93,155 838,393 931,547 0 0 0 VIP School Latrines 93,155 838,393 931,547 93,155 838,393 931,547 0 0 0 Environmental Works 101,275 911,478 1,012,753 101,275 820,330 921,605 0 91,148 91,148 2 Goods 1,169,712 128,958 1,298,670 1,169,712 128,958 1,298,670 0 0 0 Operational Equipment 774,906 85,431 860,337 774,906 85,431 860,337 0 0 0 IT Equipment 123,441 13,609 137,051 123,441 13,609 137,051 0 0 0 Office Equip and Supplies 271,365 29,917 301,283 271,365 29,917 301,283 0 0 0 3 Services 1,385,965 2,292,679 3,678,644 1,385,965 1,375,607 2,761,573 0 917,072 917,072 Comm Mob and Hyg Promo 143,652 1,292,869 1,436,521 143,652 775,722 919,374 0 517,148 517,148 Institutional Support 146,375 108,617 254,993 146,375 65,170 211,546 0 43,447 43,447 Training 148,134 37,033 185,167 148,134 22,220 170,354 0 14,813 14,813 Monitoring and Evaluation 251,711 150,576 402,287 251,711 90,346 342,056 0 60,230 60,230

TA and Consultancy Services 532,821 133,205 666,026 532,821 79,923 612,744 0 53,282 53,282

Studies and Research 97,765 554,001 651,766 97,765 332,401 430,165 0 221,600 221,600 Accounts Auditing 65,507 16,377 81,884 65,507 9,826 75,333 0 6,551 6,551 4 Miscellaneous 345,832 86,458 432,290 345,832 0 345,832 0 86,458 86,458 Personnel allowances 244,117 61,029 305,146 244,117 0 244,117 0 61,029 61,029 Operating Expenses 101,715 25,429 127,144 101,715 0 101,715 0 25,429 25,429 Total Cost - Yobe State 17,782,405 23,250,652 41,033,057 17,782,405 18,744,746 36,527,151 0 4,505,906 4,505,906 OSUN STATE 1 Works 4,809,024 6,782,845 11,591,869 4,809,024 5,650,050 10,459,074 0 1,132,795 1,132,795 HDWs 280,800 263,921 544,721 280,800 131,960 412,760 0 131,960 131,960 HP-BHs 1,461,422 2,126,162 3,587,584 1,461,422 1,700,929 3,162,351 0 425,232 425,232 M-BHs 2,869,755 2,604,726 5,474,481 2,869,755 2,083,781 4,953,536 0 520,945 520,945 Sanplat Latrine 37,375 337,624 375,000 37,375 337,624 375,000 0 0 0 VIP Household Latrines 39,183 353,954 393,137 39,183 353,954 393,137 0 0 0 VIP Public Latrines 30,449 274,944 305,393 30,449 274,944 305,393 0 0 0 VIP School Latrines 30,449 274,944 305,393 30,449 274,944 305,393 0 0 0 Environmental Works 59,591 546,570 606,161 59,591 491,913 551,504 0 54,657 54,657 2 Goods 483,221 53,427 536,649 483,221 53,427 536,649 0 0 0 Operational Equipment 362,432 40,072 402,505 362,432 40,072 402,505 0 0 0 IT Equipment 44,987 4,974 49,961 44,987 4,974 49,961 0 0 0

Office Equipment and Supplies 75,802 8,381 84,183 75,802 8,381 84,183 0 0 0

3 Services 540,746 589,177 1,129,923 540,746 353,506 894,252 0 235,671 235,671

Comm0. Mob and Hyg Promo 32,757 295,827 328,584 32,757 177,496 210,253 0 118,331 118,331

Institutional Support 51,932 38,693 90,626 51,932 23,216 75,148 0 15,477 15,477 Training 52,577 13,182 65,759 52,577 7,909 60,487 0 5,273 5,273 Monitoring and Evaluation 23,771 14,268 38,039 23,771 8,561 32,332 0 5,707 5,707

TA and Consultancy Services 291,437 81,351 372,788 291,437 48,811 340,247 0 32,540 32,540

Studies and Research 22,764 129,421 152,185 22,764 77,653 100,416 0 51,768 51,768 Accounts Auditing 65,507 16,436 81,943 65,507 9,861 75,369 0 6,574 6,574 4 Miscellaneous 50,635 12,704 63,339 50,635 0 50,635 0 12,704 12,704 Personnel allowances 46,505 11,668 58,173 46,505 0 46,505 0 11,668 11,668 Operating Expenses 4,130 1,036 5,166 4,130 0 4,130 0 1,036 1,036 Total Cost - Osun State 5,883,626 7,438,154 13,321,780 5,883,626 6,056,984 11,940,610 0 1,381,170 1,381,170

Annex. 10

Page 2/2

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Provisional List of Goods, Works and Services (in UA)

Categories Total ADF Gov’ts/ Beneficiaries

F.C L.C Tot F.C L.C Tot F.C L.C Tot FMAWR 1 Works 0 0 0 0 0 0 0 0 0 2 Goods 147,537 16,312 163,849 147,537 16,312 163,849 0 0 0 Operational Equipment 0 0 0 0 0 0 0 0 0 IT Equipment 77,874 8,610 86,484 77,874 8,610 86,484 0 0 0 Office Equip and Supplies 69,663 7,702 77,365 69,663 7,702 77,365 0 0 0 3 Services 1,166,445 1,442,204 2,608,650 1,166,445 865,323 2,031,768 0 576,882 576,882 Comm. Mob and Hyg Promo 48,073 434,145 482,218 48,073 260,487 308,560 0 173,658 173,658 Institutional Support 554,680 565,638 1,120,318 554,680 339,383 894,063 0 226,255 226,255 Training 108,705 58,107 166,811 108,705 34,864 143,569 0 23,243 23,243 Monitoring and Evaluation 140,930 84,587 225,517 140,930 50,752 191,682 0 33,835 33,835 TA and Consultancy Services 165,238 77,718 242,956 165,238 46,631 211,869 0 31,087 31,087 Studies and Research 83,312 205,574 288,886 83,312 123,344 206,657 0 82,230 82,230 Accounts Auditing 65,507 16,436 81,943 65,507 9,861 75,369 0 6,574 6,574 4 Miscellaneous 336,620 84,457 421,077 336,620 0 336,620 0 84,457 84,457 Personnel allowances 316,277 79,353 395,630 316,277 0 316,277 0 79,353 79,353 Operating Expenses 20,343 5,104 25,447 20,343 0 20,343 0 5,104 5,104 Total Cost - FMAWR 1,650,603 1,542,974 3,193,576 1,650,603 881,635 2,532,238 0 661,339 661,339 TOTAL 1 Works 19,689,920 27,525,402 47,215,321 19,689,920 22,890,231 42,580,150 0 4,635,171 4,635,171 HDWs 1,156,515 1,171,856 2,328,371 1,156,515 585,928 1,742,443 0 585,928 585,928 HP-BHs 5,742,519 8,596,454 14,338,973 5,742,519 6,877,163 12,619,682 0 1,719,291 1,719,291 M-BHs 12,032,914 10,920,739 22,953,653 12,032,914 8,736,591 20,769,505 0 2,184,148 2,184,148 Sanplat Latrine 147,425 1,328,070 1,475,495 147,425 1,328,070 1,475,495 0 0 0 VIP Household Latrines 202,473 1,823,562 2,026,034 202,473 1,823,562 2,026,034 0 0 0 VIP Public Latrines 123,604 1,113,337 1,236,940 123,604 1,113,337 1,236,940 0 0 0 VIP School Latrines 123,604 1,113,337 1,236,940 123,604 1,113,337 1,236,940 0 0 0 Environmental Works 160,867 1,458,048 1,618,914 160,867 1,312,243 1,473,110 0 145,805 145,805 2 Goods 1,800,471 198,698 1,999,168 1,800,471 198,698 1,999,168 0 0 0 Operational Equipment 1,137,338 125,504 1,262,842 1,137,338 125,504 1,262,842 0 0 0 IT Equipment 246,302 27,193 273,495 246,302 27,193 273,495 0 0 0 Office Equip. and Supplies 416,831 46,001 462,831 416,831 46,001 462,831 0 0 0 3 Services 3,093,157 4,324,061 7,417,217 3,093,157 2,594,436 5,687,593 0 1,729,624 1,729,624 Comm. Mob and Hyg Promo 224,482 2,022,841 2,247,323 224,482 1,213,705 1,438,187 0 809,137 809,137 Institutional Support 752,988 712,949 1,465,936 752,988 427,769 1,180,757 0 285,179 285,179 Training 309,416 108,322 417,738 309,416 64,993 374,409 0 43,329 43,329 Monitoring and Evaluation 416,412 249,431 665,842 416,412 149,658 566,070 0 99,772 99,772 TA and Consultancy Services 989,496 292,274 1,281,770 989,496 175,364 1,164,861 0 116,910 116,910 Studies and Research 203,841 888,996 1,092,837 203,841 533,398 737,239 0 355,598 355,598 Accounts Auditing 196,522 49,248 245,770 196,522 29,549 226,071 0 19,699 19,699 4 Miscellaneous 733,088 183,619 916,707 733,088 0 733,088 0 183,619 183,619 Personnel allowances 606,899 152,050 758,949 606,899 0 606,899 0 152,050 152,050 Operating Expenses 126,188 31,569 157,758 126,188 0 126,188 0 31,569 31,569 Total Cost 25,316,634 32,231,779 57,548,414 25,316,634 25,683,365 50,999,999 0 6,548,415 6,548,415

Annex 11

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Expenditure Schedule by Component (in UA) 2007 2008 2009 2010 2011 2012 Total

YOBE STATE 1 Infrastructure Provision 0 4,925,069 8,573,445 9,869,004 6,579,997 5,675,935 35,623,451 1.1 Water Facilities 0 4,076,560 7,077,981 8,466,694 5,465,272 4,927,703 30,014,211 1.2 Sanitation Facilities 0 645,958 1,242,276 1,149,122 962,812 596,319 4,596,487 1.3 Environmental Works 0 202,551 253,188 253,188 151,913 151,913 1,012,753 2 Capacity Building 0 796,203 868,029 868,029 402,111 240,977 3,175,351 2.1 Comm. Mobiliz. and Hyg. Promo. 0 287,304 359,130 359,130 215,478 215,478 1,436,521 2.2 Institutional Support 0 63,748 63,748 63,748 38,249 25,499 254,993 2.3 Equipping RWSS Institutions 0 389,601 389,601 389,601 129,867 0 1,298,670 2.4 Training and Competence Building 0 55,550 55,550 55,550 18,517 0 185,167 3 Management Support 92,311 487,745 478,728 526,596 340,734 308,144 2,234,255 3.1 Monitoring and Evaluation 0 80,457 80,457 160,915 40,229 40,229 402,287 3.2 Technical Assistance and Consultancy Services 66,603 199,808 99,904 99,904 99,904 99,904 666,026 3.3 Studies and Research 0 130,353 195,530 162,941 97,765 65,177 651,766 3.4 Management Expenses 25,708 77,127 102,837 102,836 102,836 102,834 514,176 Total Cost – Yobe State 92,311 6,209,017 9,920,202 11,263,629 7,322,842 6,225,056 41,033,057 OSUN STATE 1 Infrastructure Provision 0 1,639,641 2,806,925 3,198,926 2,116,554 1,829,821 11,592,070 1.1 Water Facilities 0 1,319,437 2,280,115 2,702,656 1,741,978 1,562,598 9,606,786 1.2 Sanitation Facilities 0 198,972 375,270 344,730 283,652 176,299 1,379,123 1.3 Environmental Works 0 121,232 151,540 151,540 90,924 90,924 606,161 2 Capacity Building 0 269,096 285,525 285,525 123,123 58,351 1,021,618 2.1 Community Mobilization and Hygiene Promotion 0 65,717 82,146 82,146 49,288 49,288 328,584 2.2 Institutional Support 0 22,656 22,656 22,656 13,594 9,063 90,626 2.3 Equipping RWSS Institutions 0 160,995 160,995 160,995 53,665 0 536,649 2.4 Training and Competence Building 0 19,728 19,728 19,728 6,576 0 65,759 3 Management Support 44,543 171,672 138,238 138,238 111,606 103,997 708,092 3.1 Monitoring and Evaluation 0 7,608 7,608 15,215 3,804 3,804 38,039 3.2 Technical Assistance and Consultancy Services 37,279 111,836 55,918 55,918 55,918 55,918 372,788 3.3 Studies and Research 0 30,437 45,655 38,046 22,828 15,218 152,185 3.4 Management Expenses 7,264 21,791 29,057 29,059 29,056 29,057 145,080 Total Cost – Osun State 44,543 2,080,409 3,230,688 3,622,689 2,351,283 1,992,169 13,321,780 FMAWR 1 Infrastructure Provision 0 0 0 0 0 0 0 2 Capacity Building 0 475,722 499,833 499,833 273,447 184,365 1,933,196 2.1 Community Mobilization and Hygiene Promotion 0 96,444 120,555 120,555 72,333 72,333 482,218 2.2 Institutional Support 0 280,080 280,080 280,080 168,048 112,032 1,120,318 2.3 Equipping RWSS Institutions 0 49,155 49,155 49,155 16,385 0 163,849 2.4 Training and Competence Building 0 50,043 50,043 50,043 16,681 0 166,811 3 Management Support 49,447 251,220 268,816 299,475 202,932 188,487 1,260,380 3.1 Monitoring and Evaluation 0 45,103 45,103 90,207 22,552 22,552 225,517 3.2 Technical Assistance and Consultancy Services 24,296 72,887 36,443 36,443 36,443 36,443 242,956 3.3 Studies and Research 0 57,777 86,666 72,222 43,333 28,889 288,886 3.4 Management Expenses 25,151 75,453 100,604 100,603 100,604 100,603 503,021 Total Cost- FMAWR 49,447 726,942 768,649 799,308 476,379 372,852 3,193,576 TOTAL 1 Infrastructure Provision 0 6,564,709 11,380,373 13,067,932 8,696,553 7,505,756 47,215,320 1.1 Water Facilities 0 5,395,997 9,358,097 11,169,350 7,207,251 6,490,302 39,620,997 1.2 Sanitation Facilities 0 844,929 1,617,547 1,493,853 1,246,465 772,617 5,975,409 1.3 Environmental Protection and Compensation 0 323,783 404,729 404,729 242,837 242,837 1,618,914 2 Capacity Building 0 1,541,020 1,653,386 1,653,386 798,680 483,693 6,130,165 2.1 Community Mobilization and Hygiene Promotion 0 449,465 561,831 561,831 337,099 337,099 2,247,323 2.2 Institutional Support 0 366,484 366,484 366,484 219,890 146,594 1,465,936 2.3 Equipping RWSS Institutions 0 599,750 599,750 599,750 199,917 0 1,999,168 2.4 Training and Competence Building 0 125,321 125,321 125,321 41,774 0 417,738 3 Management Support 186,301 910,639 885,780 964,307 655,270 600,629 4,202,929 3.1 Monitoring and Evaluation 0 133,168 133,168 266,337 66,584 66,584 665,842 3.2 Technical Assistance and Consultancy Services 128,177 384,531 192,266 192,266 192,266 192,266 1,281,770 3.3 Studies and Research 0 218,567 327,851 273,209 163,926 109,284 1,092,837 3.4 Management Expenses 58,124 174,373 232,495 232,495 232,494 232,495 1,162,480 Total Cost 186,301 9,016,368 13,919,539 15,685,625 10,150,503 8,590,078 57,548,414

Annex 12

Page 1/2

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Expenditure Schedule by Category of Expenditure (in UA)

Categories 2007 2008 2009 2010 2011 2012 Total YOBE STATE 1 Works 0 4,925,069 8,573,446 9,869,004 6,579,998 5,675,935 35,623,452 HDW Rehabilitation and Construction 0 178,365 356,730 535,095 356,730 356,730 1,783,650 HP-BH Rehabiltation and Construction 0 2,150,278 3,225,417 2,687,847 1,612,708 1,075,139 10,751,389 M-BH Rehabilitation and Construction 0 1,747,917 3,495,834 5,243,752 3,495,834 3,495,834 17,479,172 Sanplat Household 0 110,050 275,124 275,124 275,124 165,074 1,100,496 VIP Latrine Household 0 163,290 408,224 408,224 408,224 244,935 1,632,897 Multi Compartment VIP Latrines public 0 186,309 279,464 232,887 139,732 93,155 931,547 Multi Compartment VIP Latrines schools 0 186,309 279,464 232,887 139,732 93,155 931,547 Environmental Protection and Compensation 0 202,551 253,188 253,188 151,913 151,913 1,012,753 2 Goods 0 389,601 389,601 389,601 129,867 0 1,298,670 Operational Equipment 0 258,101 258,101 258,101 86,034 0 860,337 IT Equipment 0 41,115 41,115 41,115 13,705 0 137,051 Office Equipment and Supplies 0 90,385 90,385 90,385 30,128 0 301,283 3 Services 70,697 829,504 870,697 918,566 526,518 462,663 3,678,644 Community Mobilization and Hygiene Promotion 0 287,304 359,130 359,130 215,478 215,478 1,436,521 Institutional Support 0 63,748 63,748 63,748 38,249 25,499 254,993 Training and Competence Building 0 55,550 55,550 55,550 18,517 0 185,167 Monitoring and Evaluation 0 80,457 80,457 160,915 40,229 40,229 402,287 Technical Assistance and Consultancy Services 66,603 199,808 99,904 99,904 99,904 99,904 666,026 Studies and Research 0 130,353 195,530 162,941 97,765 65,177 651,766 Auditing of programme accounts 4,094 12,283 16,377 16,377 16,377 16,377 81,884 4 Miscellaneous 21,615 64,844 86,458 86,458 86,458 86,458 432,290 Personnel allowances 15,257 45,772 61,029 61,029 61,029 61,029 305,146 Operating Expenses 6,357 19,072 25,429 25,429 25,429 25,429 127,144

Total Cost – Yobe State 92,311 6,209,017 9,920,202 11,263,629 7,322,842 6,225,056 41,033,057 OSUN STATE 1 Works 0 1,639,640 2,806,926 3,198,927 2,116,554 1,829,822 11,591,869 HDW Rehabilitation and Construction 0 54,472 108,944 163,416 108,944 108,944 544,721 HP-BH Rehabilitation and Construction 0 717,517 1,076,275 896,896 538,138 358,758 3,587,584 M-BH Rehabilitation and Construction 0 547,448 1,094,896 1,642,344 1,094,896 1,094,896 5,474,481 Sanplat Household 0 37,500 93,750 93,750 93,750 56,250 375,000 VIP Latrine Household 0 39,314 98,284 98,284 98,284 58,971 393,137 Multi Compartment VIP Latrines public 0 61,079 91,618 76,348 45,809 30,539 305,393 Multi Compartment VIP Latrines schools 0 61,079 91,618 76,348 45,809 30,539 305,393 Environmental Protection and Compensation 0 121,232 151,540 151,540 90,924 90,924 606,161 2 Goods 0 160,995 160,995 160,995 53,665 0 536,649 Operational Equipment 0 120,751 120,751 120,751 40,250 0 402,505 IT Equipment 0 14,988 14,988 14,988 4,996 0 49,961 Office Equipment and Supplies 0 25,255 25,255 25,255 8,418 0 84,183 3 Services 41,376 270,274 250,100 250,099 168,396 149,679 1,129,923 Community Mobilization and Hygiene Promotion 0 65,717 82,146 82,146 49,288 49,288 328,584 Institutional Support 0 22,656 22,656 22,656 13,594 9,063 90,626 Training and Competence Building 0 19,728 19,728 19,728 6,576 0 65,759 Monitoring and Evaluation 0 7,608 7,608 15,215 3,804 3,804 38,039 Technical Assistance and Consultancy Services 37,279 111,836 55,918 55,918 55,918 55,918 372,788 Studies and Research 0 30,437 45,655 38,046 22,828 15,218 152,185 Auditing of programme accounts 4,097 12,291 16,389 16,389 16,389 16,389 81,943 4 Miscellaneous 3,167 9,501 12,668 12,668 12,668 12,668 63,339 Personnel allowances 2,909 8,726 11,635 11,635 11,635 11,635 58,173 Operating Expenses 258 775 1,033 1,033 1,033 1,033 5,166

Total Cost – Osun State 44,543 2,080,409 3,230,688 3,622,689 2,351,283 1,992,169 13,321,780

Annex 12

Page 2/2

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Expenditure Schedule by Category of Expenditure (in UA)

Categories 2007 2008 2009 2010 2011 2012 Total

FMAWR 1 Works 0 0 0 0 0 0 0

2 Goods 0 49,155 49,155 49,155 16,385 0 163,849

Operational Equipment 0 0 0 0 0 0 0 IT Equipment 0 25,945 25,945 25,945 8,648 0 86,484 Office Equipment and Supplies 0 23,210 23,210 23,210 7,737 0 77,365

3 Services 28,393 614,625 635,279 665,938 375,778 288,637 2,608,650

Community Mobilization and Hygiene Promotion 0 96,444 120,555 120,555 72,333 72,333 482,218 Institutional Support 0 280,080 280,080 280,080 168,048 112,032 1,120,318 Training and Competence Building 0 50,043 50,043 50,043 16,681 0 166,811 Monitoring and Evaluation 0 45,103 45,103 90,207 22,552 22,552 225,517 Technical Assistance and Consultancy Services 24,296 72,887 36,443 36,443 36,443 36,443 242,956 Studies and Research 0 57,777 86,666 72,222 43,333 28,889 288,886 Auditing of accounts 4,097 12,291 16,389 16,389 16,389 16,389 81,943

4 Miscellaneous 21,054 63,162 84,215 84,215 84,215 84,215 421,077

Personnel allowances 19,782 59,345 79,126 79,126 79,126 79,126 395,630 Operating Expenses 1,272 3,817 5,089 5,089 5,089 5,089 25,447

Total Cost - FMAWR 49,447 726,942 768,649 799,308 476,379 372,852 3,193,576

TOTAL 1 Works 0 6,564,709 11,380,372 13,067,932 8,696,552 7,505,757 47,215,321

HDW Rehabilitation and Construction 0 232,837 465,674 698,511 465,674 465,674 2,328,371 HP-BH Rehabilitation and Construction 0 2,867,795 4,301,692 3,584,743 2,150,846 1,433,897 14,338,973 M-BH Rehabilitation and Construction 0 2,295,365 4,590,731 6,886,096 4,590,731 4,590,731 22,953,653 Sanplat Household 0 147,550 368,874 368,874 368,874 221,324 1,475,495 VIP Latrine Household 0 202,603 506,509 506,509 506,509 303,905 2,026,034 Multi Compartment VIP Latrines public 0 247,388 371,082 309,235 185,541 123,694 1,236,940 Multi Compartment VIP Latrines schools 0 247,388 371,082 309,235 185,541 123,694 1,236,940 Environmental Protection and Compensation 0 323,783 404,729 404,729 242,837 242,837 1,618,914

2 Goods 0 599,750 599,750 599,750 199,917 0 1,999,168

Operational Equipment 0 378,852 378,852 378,852 126,284 0 1,262,842 IT Equipment 0 82,049 82,049 82,049 27,350 0 273,495 Office Equipment and Supplies 0 138,849 138,849 138,849 46,283 0 462,831

3 Services 140,466 1,714,403 1,756,075 1,834,602 1,070,692 900,980 7,417,217

Community Mobilization and Hygiene Promotion 0 449,465 561,831 561,831 337,099 337,099 2,247,323 Institutional Support 0 366,484 366,484 366,484 219,890 146,594 1,465,936 Training and Competence Building 0 125,321 125,321 125,321 41,774 0 417,738 Monitoring and Evaluation 0 133,168 133,168 266,337 66,584 66,584 665,842 Technical Assistance and Consultancy Services 128,177 384,531 192,266 192,266 192,266 192,266 1,281,770 Studies and Research 0 218,567 327,851 273,209 163,926 109,284 1,092,837 Auditing of accounts 12,288 36,865 49,154 49,154 49,154 49,154 245,770

4 Miscellaneous 45,835 137,506 183,341 183,341 183,341 183,341 916,707

Personnel allowances 37,947 113,842 151,790 151,790 151,790 151,790 758,949 Operating Expenses 7,888 23,664 31,552 31,552 31,552 31,552 157,758

Total Cost 186,301 9,016,368 13,919,539 15,685,625 10,150,503 8,590,078 57,548,414

Annex 13

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Implementation Arrangements

Level of Entry Institutions/Linkages Responsibility/Input Service Providers

Federal Level

Policy, Regulation Standards MIS

International Consultants, and Bulk suppliers National Contractors, Consultants, suppliers

State Level

Planning, Support Supervision, facilitation M&E

State Consultants, Contractors, suppliers

LGA Level Sub-Programmes Implementation Mobilization

CBOs, NGOs, Informal sector entrepreneurs, artisans, Suppliers

Community Level Project implementation, sensitization

Operation and maintenance service providers, Facilitation Service providers

FMAWR

RWSS Agencies

WES/WASH

WASCOM

National Coordinating Committee

State Coordinating Committee

Coordinating Committee

Sub Committees

Annex 14

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Implementation Schedule Activ ity

Loan Process ingLoan NegoitationsLoan ApprovalSiganature of LoanLoan ef fectivness

TA & Consultancy Se rvicesPreparation of BDs & Invitaion to bidBid evaluation & approvalContract signature Mobilization Carrying out Services

HDW-HPPreparation of BDs & Invitaion to bidBid evaluation & approvalContract signature Mobilization Carrying out Services

BH-HPPreparation of BDs & Invitaion to bidBid evaluation & approvalContract signature Mobilization Carrying out Services

Motorized BHPreparation of BDs & Invitaion to bidBid evaluation & approvalContract signature Mobilization Carrying out Services

Sanitation Work sPreparation of BDs & Invitaion to bidBid evaluation & approvalContract signature Mobilization Carrying out Services

Capacity BuildingPreparation of BDs & invitaion to bidBid evaluation & approvalContract Signature Mobilization Implementation of serv ices and supply of good

Audit Activitie sCommissioning of audit f irmsApprovalSigining of Audit ContractAuditing of Accounts

Sub-Programmes ManagementManagement and SupervisionM & E / Progress ReportsAnnual ReviewMid term Review

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2007 2008 2009 2010 2011 2012

Annex 15 Page 1/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Methodology and Assumptions for Economic Analysis

(1) The economic assessment of the sub-programmes is based on economic pricing in which the measurement is from perspective which measures net benefits to the Nigerian economy as a whole. Here distortions exist, to convert financial prices to the real resource values of inputs and outputs, appropriate adjustments are made to reflect economic values. (2) Benefits such as health, education impact and time savings have been quantified using the following assumptions:

(i) Willingness to Pay

Maximum willingness to Pay for Water Services 0.0015 USD/liter (1.5 USD/m3)

Proportion of house users buying water from private vendors 10% of all consumers

Estimated coping costs for well users (without project) 0.90 USD/m3

Estimated coping costs for other users (with project) 0.10 USD/m3 Willingness to Pay for Sanitation Services 0.001 USD/Day

Daily water consumption per capita in terms of liters 20.00 Liter/Day

(ii) Health Impact

Growth Rate of diarrhea infections (without project) 2% per year

Expected reduction in infections due to project 10% Rate of diarrhea infections (with project) 1.8% of rural pop/year Average consultation charges 0.15 USD/patient

Consultation charge for Infants 0.10 USD/patient Consultation charge for Adults 0.20 USD/patient

Medicine costs 0.50 USD/disease Transportation cost (to and from health centers) 0.10 USD/visit Non-health care patient costs 0.05 Cost per episode Total Costs 0.80 USD/visit (iii) Education Impact Percent of targeted population with School Age Children 15% of population School Enrollment Rate 50% of school age children

Female 46% of enrolled children Male 54% of enrolled children

Annex 15

Page 2/3 Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States

Methodology and Assumptions for Economic Analysis

Repeaters rate 15% of enrolled children Female 10% of repeaters Male 20% of repeaters

Expected reduction in repeaters rate 5% of existing repeaters Public Schools cost/pupil 90.00 USD/year Public Schools cost/pupil 0.25 USD/schooling day

% of cost paid by individuals 5% % of cost subsidized by government 95%

(iv) Time Savings Water collection time saved for better external access 4.5 hours/household/day Number of people in household 8 people/household

Minimum Wage in Nigeria1 0.04 per hour 12000 Nat'l Min. Wage of N5,500.00 per month established. 40 hour work week. 4.3 wks per month=>172 hours per month. Foreign exchange is 130. 1Field observation/discussion revealed outlying rural areas receive 15% of the published national minimum wage. It is assumed that growth rate is 1% beginning 2011. (3) Other Key Forecast Assumptions, corresponding to foot notes are:

(i) Base targeted (not total) population in Yobe is 1.3 million; Osun is 378 thousand and will grow at 4.2%. (ii) Base estimated forecasted water consumption is 20 liters per capita per day (population*20 l/c/d*365 days). (iii) Investment costs are linked to Cash Outflows worksheet. (iv) Operation & Maintenance costs are assumed to be approx. 3% of infrastructure through 2012, declining to 2% thereafter. (v) Replacement costs occur after 10 years, given avg. equipment life and assumed to be 10% of the average initial outlay. (vi) Residual value is estimated at 15% of total investment amount and is added to Net Benefits in the terminal year. (vii) Direct Benefits are captured as revenue related to provision of water services, and assumes communities would receive this rev. (viii) Sanitation Benefits: Derived from consumers' willingness to pay, and an assumed growth rate of 4.2%. (ix) Education Benefits: See Economic Parameters

(4) The following are assumed:

(i) Number of days in a Year 365 (ii) Number of schooling days in a Year 250 (iii) Number of hours in a day 24 (iv) Number of hours in year 8,760 (v) Number of schooling hours per day 6 (vi) Number of working hours per day 8

Annex 15 Page 3/3

Nigeria: Rural Water Supply and Sanitation Sub-Programmes in Yobe and Osun States Economic Analysis (USD thousands)

Year Target Pop1 Wat Consmpt2 Investment O&M Replace Total Direct Sanit Educat Health Time Total

(million Liters) Cost3 Cost4 Cost 5 Cost Benefits Benefits Benefits Benefits Saving Benefits 2008 1,704,788 12,445.0 (10,431.9) (135.2) --- (10,567.1) 18.7 143.4 1,726.1 408.1 5,432.6 7,728.92 2009 2,002,125 14,615.5 (15,657.6) (337.9) --- (15,995.5) 21.9 162.9 2,027.2 623.9 6,171.0 9,006.81 2010 2,337,293 17,062.2 (24,598.4) (608.2) --- (25,206.6) 25.6 183.7 2,366.5 847.6 6,956.1 10,379.51 2011 2,517,338 18,376.6 (22,673.7) (810.9) --- (23,484.6) 27.6 191.4 2,465.9 1,079.6 7,025.7 10,790.18 2012 2,705,109 19,747.3 (11,808.3) (815.0) --- (14,326.6) 29.6 199.4 2,569.5 1,320.2 7,096.0 11,214.65 2013 2,900,885 21,176.5 0 (831.3) --- (831.3) 31.8 207.8 2,677.4 1,569.5 7,166.9 11,653.34 2014 3,104,955 22,666.2 0 (847.9) --- (847.9) 34.0 216.5 2,789.8 1,827.8 7,238.6 12,106.72 2015 3,317,617 24,218.6 0 (864.8) --- (864.8) 36.3 225.6 2,907.0 2,095.3 7,311.0 12,575.25 2016 3,350,794 24,460.8 0 (882.1) --- (882.1) 36.7 235.1 3,029.1 2,372.4 7,384.1 13,057.35 2017 3,384,301 24,705.4 0 (899.8) (1,703.4) (2,603.2) 37.1 244.9 3,156.3 2,659.2 7,457.9 13,555.48 2018 3,418,144 24,952.5 0 (917.8) --- (917.8) 37.4 255.2 3,288.9 2,956.1 7,532.5 14,070.16 2019 3,452,326 25,202.0 0 (936.1) --- (936.1) 37.8 266.0 3,427.0 3,263.3 7,607.8 14,601.92 2020 3,486,849 25,454.0 0 (954.8) --- (954.8) 38.2 277.1 3,571.0 3,581.1 7,683.9 15,151.29 2021 3,521,718 25,708.5 0 (973.9) --- (973.9) 38.6 288.8 3,606.7 3,616.9 7,760.7 15,311.67 2022 3,556,935 25,965.6 0 (993.4) (1,703.4) (2,696.8) 38.9 300.9 3,642.7 3,653.1 7,838.4 15,474.03 2023 3,592,504 26,225.3 0 (1,013.3) --- (1,013.3) 39.3 313.5 3,679.2 3,689.6 7,916.7 15,638.39 2024 3,628,429 26,487.5 0 (1,033.6) --- (1,033.6) 39.7 326.7 3,716.0 3,726.5 7,995.9 15,804.81 2025 3,664,714 26,752.4 0 (1,054.2) --- (1,054.2) 40.1 340.4 3,753.1 3,763.8 8,075.9 15,973.31 2026 3,701,361 27,019.9 0 (1,075.3) --- (1,075.3) 40.5 354.7 3,790.7 3,801.4 8,156.6 16,143.94 2027 3,738,374 27,290.1 0 (1,096.8) (1,703.4) (2,800.2) 40.9 369.6 3,828.6 3,839.4 8,238.2 16,316.73

(85,170.0) Residual Value6 12,775.5 NPV $17,467.8 ERR 22.9%