SUPPLEMENTARY FUNDING FOR THE RURAL WATER SUPPLY AND SANITATION PROJECT


Aperçu

  • Référence: P-GM-E00-006
  • Date d’approbation: 15/03/2017
  • Date de début: 15/03/2018
  • Date d'évaluation: 01/06/2016
  • Statut: ApprouvéAPVD
  • Agence d'implémentation: Ministry of Fisheries, Water Resources and National Assembly Matters
  • Emplacement: GAMBIA

Justificatif

4.1 The supplementary financing proposal was approved by the Project's Steering Committee of the RWSSP, after consideration of the sunk cost already incurred in the 3 communities and the importance of achieving the original objectives of the Project. 4.2 The Project is aligned with the pillar III of the Second Poverty Reduction Strategy Paper (PRSP II) (2007-2011) of the Republic of The Gambia which was updated into the Program for Accelerated Growth and Employment (PAGE) for the period 2012-2015. The Project is also aligned with the Joint African Development Bank World Bank Assistance Strategy (JAS/2008-2011). Finally, the project is aligned with the Bank's high five strategy namely the improve quality of life and light up Africa components. 4.3 This supplementary financing proposal meets the applicable general conditions and specific conditions for supplementary financing set out in the Bank Group Policy and Procedures for Supplementary Financing (ADB/BD/WP/97/83). The execution of the Project has commenced and is progressing satisfactorily from the technical perspective but will require additional resources to achieve its objectives and financing from the GoTG is not available. In this regard, the following factors should be taken into account in approving the supplementary financing: a.The original contract's cost estimates were done in 2012 and have not been updated since then to take into account price escalation. The delays due to the tendering process led the bid to be retendered three years later, in 2015. The only technically qualified bidder had a bid price in excess of the available budget. Although re-scoping is possible to match the available budget, this would result in the objectives of the Project not being met and in negative social impacts b.The removal of the three beneficiary communities from the Project would result in a significant proportion of the originally identified target communities being excluded with a corresponding reduction in the overall impact of the Project. c.The 3 water supply communities will be implemented by the same contractor under the conditions stated in his original Bid. d.There is a need to build upon the recent water supply and sanitation infrastructure already constructed in the said communities. A delay in the completion of the multi village water systems will have high tangible and nontangible economic and social costs, and will also result in the unrecoverable loss of the cost incurred in implementing the solar pumping systems in the 3 communities. It should be noted that the said communities also participated in the different awareness campaigns conducted by the consultants. e.The project is technically and economically viable even with the revised cost. The economic cost benefit analysis of the revised project has been carried out by comparing the "with" and "without" project scenarios. The revised Economic Internal Rate of Return (EIRR) for the project is 19.3% and the Net Present Value, NPV (at 10%) is US$ 2.34 million, which are lower than the appraised EIRR of 21.48% and NPV of US$ 2.10 million mainly because of the delay in the completion of the water supply subcomponent. However, the NPV is still positive with the EIRR is still higher than the opportunity cost of capital for similar projects estimated as 10%. As such, the project is still considered economically viable


Contacts clés

CISSE Bocar - RDGW2


Coûts

Source Montant
RWSSIUAC 398.276
TotalUAC 398.276