AFRICAN DEVELOPMENT FUND LANGUAGE: ENGLISH ORIGINAL: FRENCH

REPUBLIC OF BENIN

RURAL DRINKING WATER SUPPLY AND SANITATION PROGRAMME

APPRAISAL REPORT

DEPARTMENT OF INFRASTRUCTURE OCIN CENTRAL AND WEST REGIONS June 2004

TABLE OF CONTENTS

Pages

Programme Brief, Currency Equivalents and Measures, List of Tables, List of Annexes, List of Abbreviations, Basic Data, Programme Logical Framework, Executive Summary i-x 1. INTRODUCTION 1 2. WATER AND SANITATION SECTOR 2 2.1 Sector Situation 2 2.2 Sector Organisation 4 2.3 Sector Constraints 5 2.4 Policy and Strategies 6 2.5 Donor Operations 7 2.6 Bank Group Strategy 8 2.7 Performance of Similar Projects 9 3. RURAL DRINKING WATER SUPPLY AND SANITATION SUB-SECTOR 10

3.1 Institutional Framework 10 3.2 Constraints and Opportunities in the Sub-sector 11 3.3 Gender Issues and Socio-economic Development 13

4. THE COUNTRY PROGRAMME 14

4.1 Design and Rationale 14 4.2 Goal and Objectives 16 4.3 Performance Indicators 17

4.4 Programme Description 18 4.5 Programme Costs 21 4.6 Sources of Finance 21

5. THE FIRST ADF SUB-PROGRAMME 22 5.1 Sub-Programme Area and Target Population 22 5.2 Description of the First Sub-Programme 23 5.3 Impacts on Cross-cutting Issues 27 5.4 Cost of the First Sub-Programme 30 5.5 Sources of Finance and Schedule of Expenditure 31

6. SUB-PROGRAMME IMPLEMENTATION 32

6.1 Executing Agency 32 6.2 Institutional Arrangements 33 6.3 Implementation Modalities 34 6.4 Supervision and Implementation Schedule 36 6.5 Procurement of Goods, Works and Services 36 6.6 Disbursements 42 6.7 Monitoring and Evaluation 42 6.8 Financial and Aud Reports 43 6.9 Partnership and Aid Coordination 43 6.10 Programme Sustainability and Risks 44

7. IMPACT ASSESSMENT 45 8. CONCLUSION AND RECOMMENDATIONS 46

8.1 Conclusion 46 8.2 Recommendations 46

LIST OF TABLES Table No. Title Page 4.1 Programme Performance Indicators 18 5.1 Equipment and Coverage Rate by Region 23 5.2 Cost Estimates by Component 30 5.3 Cost Estimates by Expenditure Category 31 5.4 Cost Estimates by Category and Source 31 5.5 Sources of Finance 31 5.6 Expenditure Schedule by Component 32 5.7 Expenditure Schedule by Source 32 6.1 Procurements Table 39

LIST OF ANNEXES No. Title No. of pages 1. Administrative Map of Benin 1 2. Cost by Component 1 3. Detailed Costs of Sub-Programmes 1 4. Organisation Chart for Programme Implementation 1 5 Implementation Schedule of Sub-Programme 1 6. Bank Group Operations 2 7. Summary of Environmental and Social Management Plan 4 8. Comparative Analysis of the Different Financing Mechanisms 1 This report was prepared by Messrs. K. BA (Financial Analyst) and L. JOOTTUN (Environmentalist), Mrs. R. BA (Gender Specialist) and a Consultant/Water Geologist following their mission to Benin from 13 June to 2 July 2004. Further information on this report may be obtained from Messrs. M. DOUMBIA, Division Manager, OCIN.2 (Ext. 2190) and G. MBESHERUBUSA, Director, OCIN (Ext. 2034) or the authors of the report.

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PROGRAMME BRIEF

June 2004 The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information may be obtained from the Executing Agency of the Borrower. 1 COUNTRY : Benin 2 NAME OF PROGRAMME : Rural Water Supply and Sanitation

Programme 3 LOCATION : Republic of Benin 4 BORROWER : Government of the Republic of Benin 5 EXECUTING AGENCY : Ministere des Mines, Energie et

Hydraulique (Ministry of Mines, Energy and Water Resources)

BP 385 Cotonou Tel: (229) 31 32 98

Fax: (229) 31 08 90

6 PROGRAMME COST : UA196.90 million 7 SUB-PROGRAMME DESCRIPTION : The sub-programme has the following components:

A. Development of Basic Infrastructure B. Studies, Works Supervision and

Monitoring C. Information Education and

Communication D. Institutional Support E. Sub-Programme Management

8 TOTAL COST OF SUB-PROGRAMME: UA12.67 million 9 SUB-PROGRAMME SOURCES OF FINANCE

ADF LOAN : UA 10.74 million GOVERNMENT : UA 1.50 million BENEFICIARIES : UA 0.43 million

10. APPROVAL DATE : October 2004

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11. PROBABLE START-UP DATE AND DURATION : January 2005 and 3 years 12. PROCUREMENT OF GOODS AND

SERVICES :

Works: Works contracts for the (i) drilling of new boreholes; ii) construction of village water supply systems (VWS) and extension of the SONEB network will be awarded through national competitive bidding. Construction works relating to institutional latrines will be in conformity with the procedure for community-based contracts. Services: Contracts for works supervision and monitoring will be awarded through shopping, in conformity with Bank rules of procedure. The recruitment of consultants and/or NGOs for IEC activities and the project studies will be through shopping in conformity with Bank rules. The study on IWRM will be awarded on the basis of a shortlist. Contracts for hydro-geological modelling and modernisation and extension of the SIG-EAU system will be awarded by direct negotiation. The audit firm will be recruited on the basis of a shortlist. Goods: Contracts for the supply of vehicles, computer equipment and water analysis laboratory, as well as contracts for the procurement of office equipment and other supplies required for the running of the Implementation Unit will be awarded through local shopping. 13. ENVIRONMENTAL CATEGORY: II

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CURRENCY EQUIVALENTS AND ACRONYMS AND ABBREVIATIONS

Currency Equivalents (June 2004)

Currency = CFA Franc (CFA F) UA 1 = CFA F 786.775

Measures m3 = cubic metre m3/h = cubic metre per hour l/s = litres per second

ACRONYMS AND ABBREVIATIONS ABE : Benin Environmental Agency ADB : African Development Bank ADF : African Development Fund AFD : French Development Agency BCEAO : Central Bank of West African States BD : Bidding Documents BP : Budget Programme CAA : Amortisation Fund CEPEPE : SME Promotion and Supervision Centre CNMP : National Public Contracts Commission CV : Curriculum Vitae DANIDA : Danish International Development Agency DDMEH : Departmental Directorate of Mines, Energy and Water Resources DDSP : Departmental Directorate of Public Health DE : Department of the Environment DGFRN : Department of Forests and Natural Resources DGH : General Directorate of Water Resources DGML : General Directorate of Equipment and Logistics DGR : Department of Rural Engineering DHAB : Department of Basic Hygiene and Sanitation DWSS : Drinking Water Supply and Sanitation EA : Executing Agency ECOWAS : Economic Community of West African States EIA : Environmental Impact Assessment GIS : Geographic Information System ICB : International Competitive Bidding IDA : International Development Agency IDWSSD : International Drinking Water Supply and Sanitation Decade IEC : Information, Education, Communication IWRM : Integrated Water Resources Management IWRM-CA : IWRM Coordinating Agency MDG : Millennium Development Goals MDR : Ministry of Rural Development MEHU : Ministry of the Environment, Housing and Urban Development MFE : Ministry of Finance and the Economy

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MISD : Ministry of the Interior, Security, and Decentralisation MMEH : Ministry of Mines, Energy and Water Resources MSP : Ministry of Health MTPT : Ministry of Public Works and Transport NCB : National Competitive Bidding NEPAD : New Partnership for Africa’s Development NGO : Non-Governmental Organisation PADEAR : Rural Water Development and Sanitation Support Project PADSEA : Rural Water Supply and Sanitation Development Support Programme PAG : Government Action Programme PEA : Independent Water Station (“Poste d’Eau Autonome”) PNHAB : National Basic Hygiene and Sanitation Programme PRSF : Poverty Reduction Strategy Framework SBEE : Benin Electricity and Water Company SDH : Regional Water Resources Service SDHAB : Regional Directorate of Basic Hygiene and Sanitation SIS : Social Intermediation Structure SONEB : Benin Water Board SYSCOA : West African Accounting System TOR : Terms of Reference UA : Unit of Account UEMOA : West African Economic and Monetary Union UNDP : United Nations Development Programme UNICEF : United Nations Children’s Fund VWS : Village Water Supply WHO : World Health Organization WUA : Water Users Association

FINANCIAL YEAR 1 January - 31 December

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Rural Drinking Water Supply and Sanitation Programme Programme Matrix

Hierarchy of Objectives (HO) Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Major Assumptions and Risks

Sectoral Goal: 1. Ensure sustainable satisfaction of the drinking water and sanitation needs of the rural population so as to improve their health and socio-economic conditions.

By 2015 1.1 Reduce the poverty index from the

current 29% to 15% 1.2 Reduce infant mortality from 166.5

per thousand to 90 per thousand.

1.National statistics 2. Socio-economic data

(Sector goal to overall objective):

Programme Objectives: 1. Improve the supply of drinking water to the rural population. 2. Provide adequate sanitation for rural communities. 3. Improve the performance of the rural drinking water and sanitation sub-sectors

By 2010, drinking water supply to the rural population increases from the current 36% to 50%, and coverage for sanitation services rises from 14% to 40%

By 2015 1. The percentage of the rural

population with access to drinking water rises from the current 36% to 67%;

2. The percentage of the rural population with access to individual sanitation systems increases from 14% to 66%;

3 All existing drinking water systems are functional, and quality control is undertaken at least once a year

1. Statistics and Activity reports of the DDMEH and DGH; 2.. Statistics and activity reports

of DDSP and DHAB

(Programme objective to sector goal): Reforms dictated by the decentralisation policy are being pursued New institutional framework for the sector is in place

Outputs: 1. At least one modern water

point is available for every 250 people in rural areas

2. An efficient sanitation system

is in all localities covered by the sub-programme

3. The services of water and

sanitation systems management structures are viable

By 2015

1. 14,800 water points are constructed

2. 2,400 institutional latrines and 36,000 family latrines are constructed

3. 360 sanitary officers, 180 health technicians and 2,400 health officers are trained

4. 2,000 masons and craftsmen are trained or retrained

5. 12 national surveys are conducted and a database on the socio-economic situation and the programme impact are available

6. A formal consultation framework for the sector is in place

7. Gender aspects are mainstreamed into all DWSS projects

1. Works acceptance report, field trip to programme site, programme completion reports by the country and the Bank

2. Works acceptance report, field trip to programme sites, programme completion reports by the country and the Bank

3. Works acceptance report, field trip to programme sites, programme completion reports by the country and the Bank

Outputs/ programme objectives 1. The population adheres to the programme .

Activities: 1.1 Competitive bidding, award of contracts 1.2 Studies 1.3 Training 1.4 Supplies/works

1 Resources Donors: UA 167.37 million Government and Beneficiaries: UA

22.53 million Implementation Unit Consulting Engineer Enterprises Sector NGOs and associations

1 Loan or grant agreements 2 Contracts signed 3 Disbursement status 3.1 Audit reports

1. Timely mobilisation of the population

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Rural Drinking Water Supply and Sanitation Programme Matrix of the First Sub-programme

Hierarchy of Objectives (HO) Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Critical Assumptions and Risks

Sector Goal: 1 Ensure sustainable satisfaction of the drinking water and sanitation needs of the rural population of Atlantique and Zou Regions in order to improve their living conditions

1.1 Reduce the poverty index from the current 29% to 15% in 2015

1.2 Reduce infant mortality from 166.5 per thousand to 143.5 per thousand

1. National statistics (Sector goal to overall objective):

Sub-Programme Objectives: 1 Improve the supply of drinking water to the rural population in Atlantic and Zou Regions 2. Provide adequate sanitation for rural communities in Atlantic and Zou Regions. 3 Improve the performance of the rural drinking water and sanitation sub-sectors.

By 2007 1.1. Access to rural drinking water

supply in Zou and Atlantic Regions increases from 26% and 32% to 32% and 40% respectively;

2.1 The coverage rate as regards school

latrines increases from 38% to 42% in Zou Region.

2.2 The percentage of the rural

population with access to individual sanitation systems increases from 14% to 25%;

3.1 All drinking water systems in the

two regions are functional.

1 Statistics and activity reports of DDMEH and DGH; 2.Statistics and activity reports

of DDSP and DHAB

(Programme objective to sector goal): Reforms dictated by the decentralisation policy are being pursued New institutional framework for the sector is in place.

Outputs: 1 At least one modern water

point is available for every 250 people in the two regions.

2 An efficient sanitation system

is all localities covered by the sub-programme

3 The services of water and

sanitation systems management structures are viable

In 2007, 1. In Atlantique region, 25 VWS and

36 IWS are constructed, improved or rehabilitated

2. In Zou region, 33 VWS are

constructed 3. 240 school latrines and four market

latrines are constructed in the 2 regions

4 100 sanitary officers, 15 health technicians and 200 health officers are trained

5 6 IEC campaigns are undertaken in the two regions

6 200 masons and craftsmen are trained 7 6 surveys are conducted and a database the socio-economic situation and project impact is available

1 Works acceptance report,

field trip to programme site, programme completion reports by the country and the Bank

2 Works acceptance report,

field trip to programme site, programme completion reports by the country and the Bank

3 Works acceptance report, field trip to programme site, programme completion reports by the country and the Bank

Outputs/ programme objectives 1. The population adheres to the programme .

Activities: 1.5 Competitive bidding, award of contracts 1.6 Studies 1.7 Training 1.8 Supplies / works

1 Resources ADF: UA 10.74 million Government and Beneficiaries:

UA1.93 million Implementation Unit Consulting Engineer Enterprises Sector NGOs and associations

3.2 Loan or grant agreements 3.3 Contracts signed 3.4 Disbursements status 3.5 Audit reports

(Activities compared to the outcomes) 1 Timely mobilisation of the population

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EXECUTIVE SUMMARY

1. Background 1.1 The Bank has launched an Initiative to accelerate access to rural water supply and sanitation in Africa. This Initiative is part of the Bank’s contribution towards achieving the Millennium Development Goals in the water sector and the African Water Vision through Integrated Water Resources Management (IWRM). It relies on rapid financing and implementation mechanisms, without losing sight of viability and efficiency. These mechanisms are based on the active participation of the rural population and local ownership. The initiative started off in five countries, and Benin is among the countries selected for the second phase. 1.2 Rural drinking water and sanitation coverage in Benin is relatively low, and is estimated at 36% and 14% respectively. Despite heavy current and past investments, the achievement of the millennium development goals requires not only the implementation of a vast DWSS programme for the 2004-2015 period, but also institutional capacity building in the sector. The Government of Benin and ADF will submit the programme to the donor community for financing. Furthermore, the ADF will finance the first sub-programme, and play a leading role in mobilising the necessary financial resources. 1.3 This drinking water supply and sanitation (DWSS) programme meets a dual objective: firstly, it addresses the desire of the Government of Benin to ensure equitable development of the different regions of the country and correct the identified inadequacies in accordance with the new decentralization and regional balance policy and, secondly, it is consistent the Bank Group’s desire to contribute to the achievement of the millennium development goals through the Rural Water Supply and Sanitation Initiative. The programme draws on the national rural water supply and sanitation strategy. It is consistent with the Bank’s Country Strategy Paper (CSP) for Benin for the 2002-2004 period, and with the Bank Group Strategic Plan for the 2003-2007 period. 1.4 The first sub-programme, which will be financed by the ADF, will constitute the launching of the Initiative in Benin. The structures and instruments required for the programme implementation will be established or strengthened during this launching phase. The sub-programme will focus on the hydrogeologically stressed areas of the Atlantique and Zou Regions, where access to water supply is rather difficult. It will lead to the construction or rehabilitation of Village Water Supply (VWS) systems as demanded by the population. Furthermore, it will support public and private agencies working in the sub-sector and develop the entire rural drinking water supply and sanitation system in the country. 2. Purpose of the Financial Contribution

The total cost of the programme is estimated at UA 196.90 million, and 85% of this amount will be financed by donors. The first ADF contribution will amount to UA 10.74 million.

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3. Sector Goal and Specific Objective of the Programme 3.1 The programme’s sector goal is to ensure sustainable satisfaction of the drinking water and sanitation needs of the rural population so as to improve their health and socio-economic conditions through accelerated access to viable drinking water and sanitation services. 3.2 The specific objectives of the programme are to: (i) improve the supply of drinking water to the rural population; (ii) provide adequate sanitation for the rural population; and (iii) help to improve the performance of the rural drinking water and sanitation sub-sectors. By 2010, the programme will: (i) supply drinking water to at least 50% of the rural population; and (ii) ensure adequate sanitation for at least 40 % of Benin’s rural population. By 2015, it will: (i) supply drinking water to at least 67 % of the rural population; and (ii) ensure adequate sanitation for at least 66% of Benin’s rural population. The specific objective of the first sub-programme is to ensure a rural DWS coverage rate of 32% for Zou region and 40% for Atlantique region, and 25 % sanitation coverage for Atlantique and Zou regions. 4. Brief Description of Programme and its Outputs

To achieve these objectives, the programme will undertake the following major activities: (i) capacity building for the various structures involved in the programme implementation; (ii) education, information and communication for the population, training for the various operators in the sector and supplementary studies for the preparation of sub-projects to be included in the programme; (iii) construction of new water points, including the related sanitation systems, and rehabilitation of old systems; (iv) construction of village water supply systems and independent water stations; (v) construction of sanitation systems; and (vi) establishment of a monitoring and evaluation system. 5. Cost

The present programme cost, net of taxes and customs duties, is estimated at UA 196.90 million. The cost of the first sub-programme is estimated at UA 12.67 million, comprising UA 5.38 million in foreign exchange and UA 7.29 million in local currency.

6. Sources of Finance 6.1 The programme will be financed by donors to the tune of 85% of the total cost, amounting to UA 167.37 million. The Government and beneficiaries will provide 15% of the cost, amounting to UA 22.53 million. 6.2 Financing for the first sub-programme will be provided by the ADF, the Government of Benin and the beneficiary population. The ADF loan will be for UA 10.74 million, representing 85 % of the total cost of the sub-programme, and covering 100% of the total foreign exchange cost and 73% of the local currency costs. The Government and the beneficiaries will contribute UA 1.93 million, representing 15% of the sub-programme cost.

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7. Implementation of the Sub-Programme

The Ministry of Mines, Energy and Water Resources (MMEH) will be the executing agency, and will create an Implementation Unit (IU) for the overall coordination of the sub-programme activities. The DGH and DHAB will implement the DWS and the sanitation components respectively, in close collaboration with the local authorities. They will act as the delegated contracting agencies for the local councils during the design and construction of structures. 8. Conclusion and Recommendation 8.1 Conclusion 8.1.1 The programme is consistent with the Bank’s operational strategy for Benin, which focuses on poverty reduction, in accordance with the guidelines defined in the poverty reduction strategy. The strategy seeks, in particular, to more appropriately meet the real drinking water and sanitation needs of the population, both in terms of quality and quantity, by involving the local communities and water users, encouraging the private sector to invest more in the sector, ensuring the effective transfer of powers from the State to the local councils, and strengthening the structures concerned. It will contribute to the attainment of the millennium development goals in the supply of drinking water and sanitation services to the rural population. The programme represents a vital contribution by donors to Government efforts towards providing sustainable water supply and sanitation services to the rural population. 8.1.2 The first sub-programme financed by the ADF is technically feasible, economically viable, socially justified and consistent with the priorities of the Government of Benin in the development of the water supply and sanitation sector. Measures to mitigate the environmental impact of the sub-programme, which is classified in Category II, have been taken into account, and their implementation will lay the groundwork for the success of the programme. The measures will also enhance the capacity of the DWS and sanitation systems in Atlantique and Zou regions. Furthermore, they will offer an appropriate solution that will sustain the Government’s policy in the rural water supply and sanitation sub-sector, and promote its decentralisation efforts.

8.2 Recommendation . 8.2.1 The Board is invited to take note of the existence of the rural drinking water supply and sanitation programme in Benin, as part of the efforts to attain the millennium development goals. The cost of the programme amounts to UA 196.90 million, of which UA 167.37 million will be financed by donors. 8.2.2 It is recommended that an ADF loan not exceeding UA 10.74 million be granted to the Republic of Benin for the implementation of the first sub-programme in accordance with the technical, administrative and financial modalities defined in this report and subject to the conditions that will be specified in the loan agreement.

1 INTRODUCTION 1.1 The African continent currently has about 300 million people without access to drinking water, and an even greater proportion of people do not have adequate sanitation systems. The rural population are the most affected, and are more vulnerable to diseases caused by lack of drinking water and; the time and efforts required for water supply prevent women from engaging in other economic activities, and children from going to school. These are problems that contribute to perpetuating poverty in rural areas. One of the objectives of the 2000 World Water Vision was to half the funding gap for water and sanitation infrastructure; this aspect has received even more prominence in the 2000 Millennium Declaration in which the United Nations set the goal of halving the number of people living without sustainable access to affordable and adequate drinking water by 2015. 1.2 The Bank Initiative to accelerate access to water and sanitation in rural areas in Africa is one of its contributions to the achievement of the millennium development goals in the water sector, and to the African Water Vision within the framework of integrated water resource management (IWRM). Its aim is to accelerate access to viable rural water supply and sanitation services through the following strategic actions:

a) Develop and use accelerated mechanisms for the preparation and implementation of operations in order to significantly activate national rural water supply and sanitation programmes;

b) Implement, with the participation of the beneficiaries, projects intended to extend and consolidate rural water supply and sanitation services coverage;

c) Promote appropriate technologies that combine the consensus of beneficiaries on acceptable level of service, with facility of utilisation as well as the local knowledge and skills required to ensure their functioning and maintenance; and

d) Mobilise more official development assistance (ODA), and promote and sustain local initiatives to finance rural water supply and sanitation services.

1.3 The Initiative was launched during the first Water Week organized in Tunis from 1 to 3 July 2004. The objective of the Initiative is to increase the coverage rate of rural drinking water supply and sanitation to 66% in 2010 and 80% in 2015. Five countries were selected for the first phase of the Initiative, on the basis of the following criteria: (i) the level of funding requirements; (ii) the implementation level of a satisfactory institutional framework, (iii) the existence of a country programme; and (iv) the political will to promote the rural water supply and sanitation sector. The countries chosen were Ethiopia, Ghana, Mali, Uganda and Rwanda. The Board of Directors of the Bank approved the first sub-programmes for Mali and Rwanda in December 2003.

1.4 Benin was one of the countries selected for the second phase of the Initiative on account mainly of: (i) ongoing reforms in its water and sanitation sector which are at a very advanced stage; (ii) the low coverage rate in rural areas, especially as regards sanitation services (14 %); and (iii) the fact that a programme is currently being prepared. In the short and medium term, one of the major objectives of the Poverty Reduction Strategic Framework (PRSF) in Benin is to create the conditions that would ensure and increase the minimum social conditions for the population, defined as the minimum requirements in terms of health, education, drinking water and food security. The Government aims to reduce the proportion of the population without access to drinking water by 50% by 2015.

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1.5 Water is a major problem for the population in Benin. Indeed, access to water remains difficult, supply points are poor managed, and the connection costs are high. About one in every three households does not have access to drinking water, and the problem is even more acute in rural areas. To remedy the situation, the Government has, since 1994, implemented a number of projects with the support of bilateral and multilateral donors; as at 31 December 2003 the drinking water coverage rate was about 36% in rural areas. The sanitation situation calls for more concern, as only about one third of the population of Benin have latrines. 1.6 Despite the efforts by the authorities of Benin, a number of challenges remain as far as rational management of water resources is concerned; particularly as regards enforcement of laws and regulations, knowledge of available water resources, elaboration of a master plan for integrated water resources management, as well as information and education of the population. Accordingly, Government has embarked on water supply and public hygiene policies through several actions, including the rural drinking water and sanitation development support project (PADSEA). According to the first report on the Millennium Development Goals, published in July 2003, if present trend in the implementation of the different programmes is maintained, Benin could, by 2015, attain the goal of 78% of the population with access to a drinking water source and salubrious environment.

1.7 As part of the programme preparation, the Bank undertook a mission in February 2004 and attended the meeting of water sector donors organized in Cotonou in May 2004. It also undertook an appraisal mission in July 2004. This report is the outcome of its field trips and consultations with the rural population, Government authorities, the other national operators in the water and sanitation sector, and donors during the different missions.

2. WATER AND SANITATION SECTOR 2.1 Sector Situation Water Resources 2.1.1 Benin has an average annual rainfall which varies between 800 mm in the North and 1 500 mm in the South. The potential of the waterways, excluding the Niger river, is estimated at 3,106 billion m3 per annum. The lakes and lagoons in the South of the country (Ahémé, Nokoué, Porto Novo) also constitute huge reservoirs of water. The annual refill rate of the groundwater reservoir is estimated at 1.87 billion m3, or 163 m3 per hectare. The coastal sedimentary basin, which represents 10% of the country’s land surface, contains about 32% of the underground water potential. However, though abundant on the whole, water resources are unevenly distributed in the country. The geological situation, with about 80% of crystalline basement, favours water runoffs to the detriment of infiltration, which should supply the water tables. 2.1.2 The level of water mobilisation and utilisation is still low, barely 2% of the groundwater reservoir and a few dams (DWS Parakou, Djougou and Savalou, Save Sugar Company). However, mobilising underground water is a real problem in the bedrock area where borehole water pressure is low. There is considerable pressure on water resources in both the urban and rural areas, and there is pollution of all types, which can jeopardize the use of some sites. The measuring networks are functional only in certain areas, and there is no regular follow-up.

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Urban Drinking Water Supply 2.1.3 Benin is estimated to have an urban population of 2.58 million people, representing about 38% of the total population. Seventy urban centres enjoyed water supply in 2002. The drinking water access rate in urban areas was estimated at 54%, calculated on the basis of one consumer (connection) serving 15 persons. An analysis of the current pattern of drinking water consumption shows demand as follows: (i) a concentration of demand in the country’s four largest cities (Cotonou, Porto-Novo, Parakou, Abomey/Bohicon), which between them, consume about 80% of the drinking water produced by the company responsible for urban distribution; (ii) a low supply rate, even though this varies from one locality to another; (iii) the use of alternative sources of water supply (wells, rivers, marshes, tankers); and (iv) a low drinking water consumption level per inhabitant. The demand for water is greatly influenced by socio-economic conditions, marked by low and unstable household income and consumption patterns. Rural Drinking Water Supply 2.1.4 Benin’s rural population is estimated at 4.28 million people living in more than 3,148 villages. The drinking water access rate in rural areas is about 36 % with an average consumption estimated at 20 litres per inhabitant. Despite this, several localities still obtain water supply from polluted surface water. Sanitation Solid Waste Management 2.1.5 Very few statistics exist on sanitation in general. Despite the bad practice of burying and incinerating wastes at home, solid waste evacuation rates are very low in large built-up areas. Because the public water collection, evacuation and treatment system is not operational, household waste is dumped on secondary roads and empty spaces. The situation is hardly better in rural areas. The Population and Health Survey (ESDB), conducted in Benin in 2001, shows a refuse collection rate of 39% in urban centres and 3 % in rural areas. Management of Domestic Wastewater and Excreta 2.1.6 Private onsite wastewater treatment is the most common form of wastewater disposal in Benin. According to the ESDB, only two out of one thousand households dispose of wastewater correctly. Water emptied into nature pollutes the environment and water tables. Bodies of water also become breeding sites for mosquitoes and other disease carriers, constituting nuisance to people and contributing to the high incidence of malaria (34% of medical complaints). The situation calls for concern particularly in Cotonou because of: (i) the very hydromorphic nature of the soil; (ii) the water table (0.5 to 3.0 m from the surface); and (iii) the high population density. The wastewater disposal rate is estimated at 0.2 % for the whole country. 2.1.7 Management of excreta is a very critical problem, particularly in the smaller towns. The coverage rate in the major towns is above 60%. A sewage network system is provided only in the major towns (Cotonou, Abomey-Calavi, Porto-Novo, Parakou, etc.). According to the Population and Health Survey carried out in Benin in 2001, the rate of access to an adequate excreta disposal system is 32.1%. There is a wide disparity between the coverage rate in urban centres (61.6%) and that in rural areas (14%).

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Stormwater Management 2.1.8 Since the 1990s, storm water management in big towns has been a major concern for the authorities, and considerable human and financial resources have been allocated to it, especially in Cotonou. As at July 2003, the total length of storm water drainage lines was estimated at 421 739 linear metres, comprising 305 059m for Cotonou, 85 000m for Porto-Novo and 31 680m for Parakou. The coverage rate in these towns is 25%, 50% and 50% respectively. Despite these efforts, flooding remains a serious problem in Cotonou, which is very marshy, flat and with a flush water table. In addition, normal drainage of water is impeded by the fact that people build their houses on the waterbeds. Apart from the multiple problems encountered in the maintenance of storm water drainage networks, the towns also have to cope with lack of civic responsibility among some members of the public who dump domestic solid wastes and wastewater in gutters. 2.2 Sector Organisation Legal and Regulatory framework 2.2.1 Benin has a series of texts on the management of the water and sanitation sector but these, more often than not, have been overtaken by events. The Water Code, the main document that provides guidelines for sector, was enacted by Law No. 87-016 of 21 September 1987, but no implementing decrees have been issued. Consequently, the texts relating to the different committees have never been issued. Far-reaching reform of the texts relating to water is currently being undertaken, with the assistance of sector donors. It is expected that the Water Code will be reformulated, taking into account issues relating particularly to decentralisation and deconcentration, integrated water resource management, procurement procedures, and strengthening of the role of women and the private sector. The document relating to the Water Code is being finalised, and should be submitted to the Assembly before the end of 2004. 2.2.2 As regards sanitation, Benin has a fairly impressive arsenal of legal and regulatory texts. Law No. 98-030 of 12 February 1999 relating to the outline law on the environment defines the bases for a national environmental policy and organizes its implementation, in accordance with the Constitution. The law is based on the application of the “polluter-pays” principle. Similarly, in 1987, the Government adopted and enacted the Public Hygiene Code. However, in view of the outline law on the environment, some of the provisions of this Code are obsolete and need to be updated. The regulations governing the management of biomedical waste were defined in Order 2002-484 of 15 November 2002; the Order specifies the various categories of biomedical waste, and reiterates the conditions and manner in which such waste should be treated. Finally, two Inter-Ministerial Orders regulate the collection, drainage, treatment and elimination of used oil, as well as the collection, disposal, treatment and elimination of solid waste. These have often proved difficult to apply strictly because of the lack of human, material and financial resources. Institutional Framework

2.2.3 Responsibility for the water sector lies with the Ministry of Mines, Energy and Water Resources (MMEH). The ministry is particularly responsible for defining the conditions for implementing Government policy in the sector, applying the policy and monitoring its implementation. It initiates, coordinates and regulates water resources activities. The MMEH is responsible for creating and managing a databank that could help to promote proper management of water resources and guide the national development policy.

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2.2.4 Since the December 2003 local council elections, the councils have been fully empowered by law to be the contracting authority in drinking water supply and distribution on their territory. They must, however, be guided by the sector strategy and national regulations and standards in force.

2.2.5 Up until June 2003, responsibility for urban drinking water supply and wastewater sanitation was vested in the Benin Water and Electricity Corporation (SBEE). Institutional reform carried out essentially separated the functions of water and electricity supply. The Benin National Water Corporation (SONEB) was established by Decree No. 2003-203 of 12 June 2003 to assume the responsibilities initially entrusted to SBEE as regards drinking water supply and sanitation. SONEB is a public industrial and commercial company, with a legal status and financial autonomy. It acts as public drinking water service provider in big towns and the secondary centres.

2.2.6 Three ministries are in charge of the sanitation strategy in Benin. The Ministry of Public Health (MSP) defines and implements the national basic hygiene and sanitation policy through the Department of Basic Hygiene and Sanitation (DHAB). The Ministry of the Environment, Housing and Urban Development (MEHU), through the Department of the Environment (DE) and the Benin Environmental Agency (ABE), is particularly responsible for defining the national policy on the prevention of pollution and environmental risks, improving the living environment and providing sanitation services. Lastly, the Ministry of the Interior, Security and Decentralisation (MISD) has supervisory authority over the local councils, which are responsible for: (i) the collection and treatment of solid non-industrial waste; (ii) the collection and treatment of liquid waste; (iii) the public wastewater drainage network; and (iv) the storm water drainage network.

2.2.7 Other ministries also intervene in the water and sanitation sector, in particular: (i) the Ministry of Rural Development (MDR) through its Department of Rural Engineering (DGR), Department of Livestock (DE), Department of Forestry and Natural Resources (DFRN), and the Department of Fisheries; and (ii) the Ministry of Public Works and Transports (MTPT) through its National Meteorological Service. All these ministries and their decentralized structures work in cooperation with the Non-Governmental Organisations (NGOs) and other private operators in the sector.

2.3 Sector Constraints

2.3.1 Until now, responsibility for the monitoring, tapping and protection of water resources, water distribution and prevention of water-related risks etc. in Benin has been shared between various institutions which have not always sufficiently cooperated with one another. Sub-sector policies and strategies have been prepared or are currently being prepared for each of the sub-sectors (urban and rural drinking water supply, sanitation and drainage, agriculture, stockbreeding, fishing, environment, industry, energy, mining and quarries, health, transport, civil protection, etc.) without regard for overall coherence. There is currently a glaring lack of coordination throughout the sector, resulting in the inability to control negative interactions between the different uses, roles and functions of water resources.

2.3.2 No document in Benin presents an overall analysis of problems related to water resources in the country. The information exists, but it is scattered in various documents and does not give a clear picture of the actual water situation. Furthermore, in certain areas such as water quality, hardly any information is available, and monitoring is inadequate. Clearly, however, accurate knowledge of available water resources is central to its integrated management.

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2.3.3 A diagnostic study of the water and sanitation sector carried out at workshops organised over the past few years has highlighted other constraints on the development of the sector in the following major areas: (i) the aging drinking water systems and the ever-growing amount of rehabilitation works required; (ii) the need for huge investments and substantial improvement of urban DWS management, with a relatively low coverage rate of 54%; (iii) the low private-sector capacity to cope with the rapid development in the sector over the last ten years ; (iv) the high unit costs of water –especially sanitation- equipment within the context of widespread poverty, particularly in rural areas; and (v) the cumbersome procurement procedures for works, goods and services, which constitute a major bottleneck in project implementation. 2.3.4 Capacity inadequacies are apparent in public structures, at both the central and decentralised levels. Capacities will need to be upgraded at the decentralised level and in local authorities in the areas of: (i) planning; (ii) procurements; and (iii) monitoring and regulation of water services. Other sector constraints are also related to the country’s economic and institutional environment, notably (i) inadequate financial resources; and (ii) delays in providing assistance towards decentralisation and deconcentration. 2.3.5 SONEB’s current water tariffing system is not appropriate, and water rates do not cover actual production and distribution costs. The pricing system is based on an internal cross-subsidy which allows small localities to continue to enjoy drinking water supply within a two-tier tariff system. To ensure effective DWS service, it is imperative to establish a management framework and mechanisms that will guarantee technical reliability of water facilities. Charging economic prices is crucial to ensuring the economic viability of SONEB management while providing drinking water to the disadvantaged sections of the population. A study on water pricing is being prepared with German Cooperation funding, and this should also help to guarantee drinking water supply to the underprivileged population through the introduction of a social bracket and appropriate management methods. 2.4 Policy and Strategies 2.4.1 An analysis of the current legal and institutional framework of the water sector in Benin shows that there is no water policy paper. Nonetheless, in the absence of an explicit document, what amounts to an “implicit” water policy can be gleaned from a variety of reference documents including: (i) the national water resource management strategy for Benin (1997); (ii) accession to the “Ouagadougou Declaration” (March 1998); (iii) accession to the Millennium Development Goals; (iv) the conclusions of the First National Water Forum (2001); (v) the draft strategy paper on the integrated management of humid areas in Benin; and (vi) the Second Government Action Programme (PAGII, 2001-2006). 2.4.2 In Benin, when it comes to balancing availability of water against development requirements, the problem is not so much a case of inadequate water resources (except in the central and northern areas of the country), as of insufficient capacity to harness the resource. To remedy the situation, the Benin authorities have very rightly sought to make the necessary transition from the present water management method (sectoral, technocratic, non-participatory) to an integrated water resource management, which is the only means of coping with the rapid increase in demand in its myriad forms and the challenges of making water a sustainable resource. The country has embarked on the establishment of a national integrated water resource management framework to facilitate the development and coordinated management of water, land and similar resources and ensure that the resulting positive impacts are shared equitably and without jeopardising the sustainability of vital ecosystems.

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2.4.3 The objective in the medium term is, firstly, to elaborate a paper on national water policy that outlines, in particular, the national IWRM. Another concern is to establish a formal framework for the coordination and monitoring of activities relating to IWRM (OC-IWRM). A study is being prepared in this regard as part of a review of the strategy, to (i) reformulate the Water Code; (ii) draft a national water policy paper; (iii) prepare texts establishing the OC-IWRM and defining its organisation and operation; and (iv) draw up a two year work plan for OC-IWRM, including a general IWRM framework for Benin. Evidence that all the implementing decrees relating to the Water Code have been issued not later than 31 December 2005 will be a condition for the present loan. 2.4.4 For better performance of urban water supply sub-sector, the Benin Government, within the framework of German cooperation and with GTZ support, adopted an urban DWS Master Plan for the 2003 – 2012 period. Its overall objectives are to: (i) develop the human and technical capacities for planning in the urban DWS sub-sector; (ii) define an investment policy based on the criteria of economic effectiveness and viable operation; (iii) establish suitable technical and economic tools for rollover investment planning; and (iv) put in place a dynamic investment policy for SONEB. 2.4.5 In 1992, the Benin Government adopted a strategy for the development of the rural drinking water sector. The strategy is highly-participatory and involves the communities at every stage of the project. Based on a demand-driven approach, its underlying principles are: (i) decentralisation of the decision-making process; (ii) involvement of communities in investment and the management of water points; (iii) reducing the construction and maintenance costs of structures; (iv) developing and promoting the private sector; and (v) making health education systematic. 2.4.6 As part of efforts to find lasting solutions to environmental problems in general, and those relating to sanitation in particular, the Government of Benin, in 1995, adopted a National Sanitation Policy. The policy is based on five fundamental principles: (i) the establishment of sustainable and efficient institutional structures for the management of sanitation services; (ii) the promotion of sanitation programmes developed on the express demand of the communities; (iii) community participation in the funding of structures, and in their use and maintenance; (iv) upgrading the skills of local entrepreneurs and craftsmen; and; (v) the promotion of technologies that are within the financial and managerial capabilities of the State, local councils and the beneficiaries. Additional concerns relate to the promotion of information, education and communication activities on hygiene and sanitation. 2.5 Donor Operations 2.5.1 Several donors are active in the water and sanitation sector in Benin, the most important being: DANIDA, GTZ, KFW, ADF, the Arab Fund. The Belgian, Dutch and Japanese cooperation agencies provide bilateral assistance, while the World Bank, European Union, WHO, and UNICEF provide multilateral aid. Most operate in rural areas under the Rural Water Supply and Sanitation Development Support Programme (PADEAR). The World Bank supports this programme in Zou and Atlantique regions, as well as ongoing reform of the urban drinking water sub-sector. The major bilateral donors in the sector intervene through the following programmes: (i) DANIDA, the most prominent donor in the sector, supports the second phase of PADEAR in Zou and Atlantique regions; (ii) the AFD, currently finalising its new operation, focuses on the Collines Region and semi-urban areas; (iii) KFW and GTZ provide support to SONEB and PADEAR in Mono and Ouémé regions;

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(iv) the Belgian Cooperation Agency is active in Atacora and Donga regions; and (v) the Japanese Cooperation Agency works mainly in the rural areas of Mono, Couffo, Ouémé, Plateau and Zou regions. The Kuwait Fund, the Arab Bank for Economic Development in Africa (BADEA) and the OPEC Fund also finance village water supply and pastoral projects. Lastly, UNICEF has been active in the sector, essentially in Zou Region, where it has drilled 200 boreholes. Its intervention in the water sector also extends to PADEAR, where the thrust of its activity is on the eradication of Guinea worm. UNICEF is also operating in the sanitation sub-sector in sensitization and monitoring. 2.5.2 Since 1993, the drinking water supply and sanitation sector in Benin has benefited from investments amounting to CFA F65, 22 billion (UA 82. 9 million), with 76 % financed by donors (UA 63.09 million) and 24 % by the national budget (UA 19.81 million). Aid coordination is very active in Benin. The budget-programme approach used in the sector since 2001 is another effective framework for successfully coordinating aid from the major donors. However, there is a wide disparity between the modes of intervention of the various donors. The World Bank provides untargeted budget assistance to the sector. The table in Annex 8 outlines the different financing mechanisms of the other donors. The AFD is currently preparing a new operation which will also use the budget- programme approach. 2.5.3 The annual reviews of the budget programme and the programme review missions will provide avenues for regular consultations between donors and the Government. Some bilateral donors (ADF, GTZ and DANIDA) have agreed on i) the need for a mechanism that will extend the geographical spread of institutional donor aid through regular consultations and status appraisals; and ii) the need to set up a multi-donor fund for i) joint studies; ii) mobilisation of expertise from all possible sources by using donors’ experts databases; iii) joint missions to organise trainings; iv) exchange of expertise where notable achievements have been made in certain regions or on certain topics and which can be distributed throughout the country (geographical extension). Within the bounds of its rules and procedures, ADF will provide funding for studies, which will be identified as part of concerted action by donors. 2.5.4 The first ADF operation was discussed with all the partners, and this not only made it possible to better target Bank assistance, but also helped to avoid overlaps. Continued coordination during the programme implementation will be ensured through joint supervision and mid-term review missions. 2.6 Bank Group Strategy The Bank’s Rural Drinking Water Supply and Sanitation Initiative for Benin is consistent with the strategy for Benin. The strategy aims to implement sectoral investment programmes that contribute to sustainable economic growth and, ultimately, to poverty reduction. In the water and sanitation sector, it reflects the Bank’s policy of integrated water resource management and aims to support actions to raise the living standards of the disadvantaged sections of the population, notably by financing the construction of collective social infrastructure in rural areas. This strategy is consistent with that adopted by Benin’s authorities for the development of water and sanitation sector. The priority areas in the Bank’s operational programme in Benin are: (i) rural development; (ii) basic infrastructure; and (iii) the social sector. These operations will receive additional capacity-development assistance and support to ongoing reform.

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2.7 Performance of Similar Projects 2.7.1 Since it started operating in Benin, the Bank has financed 3 operations in the water and sanitation sector, a project and two studies, for a total amount of UA 10.17 million. The first loan to the sector was granted in 1979 for the financing of studies on water and electricity supply to 9 districts. In the same vein, the Bank in 1982 financed water and electricity supply to 9 Districts. It later financed a study on sanitation in Cotonou and Porto-Novo. All these Bank-financed operations have been completed and enjoyed a 100% disbursement rate. On the whole, Bank operations in the water and sanitation sector have had mixed results, mostly because of slippages in effectiveness. These operations also suffered from the cumbersome contract award procedures in Benin. 2.7.2 Several lessons were learnt from the results of the implementation of the 2003 budget-programme, and these have influenced the formulation of the water programme. Field visits conducted under the 2003 budget showed that the poor results recorded in certain regions were due to the fact that no social intermediation agency had been recruited. Social intermediary structures must be mobilised in all the regions, and all activities, including those financed from the national budget, must be based on studies and decision points (community-based initiative, environmental study, community–developed dossier) agreed for the sector. 2.7.3 Moreover, all indications suggest that most of the tools to facilitate the management and monitoring of the physical implementation of the programme budget are yet to be developed. However, some critical indicators of proper implementation have been developed and applied, notably those relating to the different stages of contract awards, and monitoring of unit costs. However, this indicator must take due cognisance of the preparation of BDs. Also, the cost of VWS, PEA, social intermediation and supervision must be factored into the monitoring of unit costs. 2.7.4 Presenting programme budgets by objective to fit in with the millennium goals should encourage greater rationalisation of activities and resources in the coming years and facilitate better assessment of monitoring and more effective means of achieving the millennium goals. In order to meet the 2015 target date, considerable financial resources will need to be allocated to the sector, and this concerns both investment and operating funds. However, because of the sector’s manifest low absorptive capacities- evident in the mediocre annual performance rate- the focus, will, a priori, be on removing bottlenecks so as to enhance its physical and financial capacity. These bottlenecks are partly administrative and technico-administrative in nature. The lengthy procurements procedure (mostly because of the number of signatures required at the MMEH/DGH and MFE) and the fact that expenditure commitment over several years was not allowed (e.g. for procurement of pumps) are two examples of these sticking points. On this last point, the structures operating within the sector have now been empowered to enter into pluri-annual contracts. 2.7.5 The performance of the sector is also limited in part by the capacity of the private sector. In keeping with the national strategy, the national market benefits from the small contracts (50 boreholes maximum). It would be desirable, as far as possible, for contracts to be big enough to attract regional (UEMOA) and even international companies. Opening up the market in this manner will have an undoubtedly positive influence on the unit costs of the structures.

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2.7.6 Work has already started on ensuring sustainability of investments, a programme having been introduced to replace obsolete pumps and so cut down the breakdown rate (20% at the moment). Nevertheless, more efforts are needed to provide the water points management committee with a monitoring/support system, and improve the management of structures by introducing professionalism into water supply services, especially the VWS. This calls for the development and introduction of a monitoring/support system for the management of water points, and new water management methods based on professionalism will need to be established. 3. RURAL DRINKING WATER SUPPLY AND SANITATION SUB-

SECTOR 3.1 Institutional Framework 3.1.1 The General Directorate of Water Resources at the MMEH is responsible mainly for proposing, in conjunction with all the other relevant national structures, Government policy in the water sector and overseeing its implementation. Its role is, in particular, to: (i) draft and propose regulations and standards for the mobilisation and management of water resources, as well as ensure that they are applied properly; (ii) coordinate activities relating to the different uses of water and IWRM; (iii) provide support and advisory services to local councils and other operators in the water sector by organising information, training, and technical assistance activities; (iv) ensure the implementation of the drinking water supply policy; and (v) help to prepare and implement the programme budget approach in the sector. The DGH is decentralised to the Regional Directorates of Mines, Energy and Water Resources through the water supply services. 3.1.2 The reorganisation of MMEH in 2004 created the Regional Directorates of Mines, Power and Water (DMEH). Ministerial Order No. 25/MMEH/DC/SGM/CTJ/SA of 24 May 2004 confers on the DMEH the responsibility of implementing Government policy in the three sectors, in conjunction with the relevant institutions in the regions. In the water resources sector, the responsibilities of the water resources section of MEH, are mainly to: (i) provide guidelines and coordinate Government activities in the sector; (ii) monitor the management of water infrastructure in relation to the different institutional partners; (iii) ensure the technical and financial monitoring of contracts for works or services; and (iv) provide support and advisory services to local councils in matters relating to DWS.

3.1.3 Within the new organisation structure of MMEH, the DGH may not be able to continue playing its role of coordinating the SDHs as in the past. In the new structure, the SDHs are under the Director of the MEH in the Regions, who reports to the Prefect, is under the immediate authority of the SG of the MMEH, and is on the same level as the regional directors even though there is no functional link between the SDHs and DGH in the organisation chart. This is cause for great concern and portends future problems with coordinating the entire implementation of the strategy, the global programming of objectives, the coherence of activities, the search for equitable water demand coverage, the monitoring of the databases, the coherent allocation of resources, and the monitoring of SDH activity programmes.

3.1.4 The cohesive network between DGH and the SDHs built with such effort over the past few years seems to be under threat. Allocation of budgetary aid might now be rendered more delicate by the fact that the mines, energy and rural and urban water supply would be competing for resources. Such difficulties were already beginning to surface even before the

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new organisation structure came into being. Benin’s authorities could re-establish the coordination function of the DGH by reiterating that, as far as applying the rural water strategy and the implementation and monitoring of corresponding works are concerned, the DMEHs are under the authority of the DGH.

3.1.5 The role of the DHAB at the MSP is to ensure the implementation of the national health policy on basic hygiene and sanitation. Basic sanitation encompasses all the autonomous systems, as well as the attitudes and practices required to promote adequate hygiene and environmental protection. It aims to provide health facilities and equipment in homes and public places. These concerns are reflected in the nature of the responsibilities assigned to the DHAB. The DHAB is decentralized to the Public Health Directorates (DDSP) in the Regions, through the hygiene and sanitation services. 3.1.6 The formal and effective installation of all the local and municipal councils in March 2003, affected the way responsibilities were assigned in the DWSS sector. Law No. 97-029 of 15 January 1999 organising local councils specifies that they have full powers in matters relating to the environment, hygiene and sanitation, which are related to the sector. Councils may, if necessary, seek help from Government technical services or the expertise of the private sector, or set up their own technical services to help them in their work. This has now repositioned the DGH, notably the SDHs, which now play a mainly support and advisory role, and sometimes act as delegated contracting authority. Councils do not have all the capacity they need to play their role, and these decentralised structures will need support through community development plans. 3.1.7 The users of water points and village water supply systems all come together within Water Users Associations (WUA). These associations supervise the management and maintenance of water supply equipment, and operate a Maintenance Fund from which they pay all expenses relating to the dewatering system. There is however a lot of debate surrounding the legal status of the WUAs. It is accepted that, once the deed of transfer and the operating contract have been signed, the WUAs become the owners of all the equipment, except the intake structure. Since the sale of water is a huge money spinner, how the considerable amounts generated will be managed is a subject of serious discussion between, (i) the WUAs and the mayors over the right of ownership and (ii) between the WUAs, and the State and within villages as to the right to use proceeds from water sales for purposes not directly related to the management of the VWS. 3.1.8 The private sector is the other major link in the chain within the sub-sector. Essentially, these are the consultancy firms, engineering companies and NGOs. There are about twenty consulting firms in Benin, which specialise in water and sanitation. There are, in addition, a large number of individual consultants operating within the sector. 3.2 Constraints and Opportunities in the Sub-Sector

Constraints 3.2.1 The main sector constraints relate to: (i) the relative weakness of the monitoring activities by the decentralized structures, especially in the DWS component; (ii) the fact that distributors of water pumps default on their commitments, resulting in the inability to replenish water pump stocks; (iii) the small number of operations funded by the national budget (35.6%) in comparison to those that are externally-financed (63%) due to the fact that the State budget commitment period is limited (April to November), while the period covers

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several years for donors; (iv) the meagre funds available for the maintenance of structures due to the non-systematisation of water sales; v) the extremely slow rate at which latrines are being provided in rural areas despite many efforts to promote hygiene education; and (vi) the fact that representatives of the communities are not involved in the processing of applications and contract awards. 3.2.2 Over the past few years, with the assistance of donors, essentially the World Bank and our institution, the Government has been carrying out a reform of its public procurement procedures to bring them in line with international standards. Nevertheless, despite some clear improvements, the system is still defective, notably as concerns transparency and the extremely cumbersome bidding procedures with its opaque division of responsibilities. A study carried out by DANIDA in 2003, within the context of assistance to the DGH, identified 30 stages between the preparation of bidding documents and advance payment for project start-up. On average, the contract award procedure takes 11 months. 3.2.3 A reform of the procurement procedure is in progress. With the assistance of the Bank and the World Bank, UEMOA has also embarked on a reform of the public procurement system with a view to establishing a single harmonised system across the sub-region. One of the planned innovations is to involve the private sector and civil society, which should promote transparency. Nonetheless, ways must be found to accelerate procurement procedures in Benin, especially within the context of the ongoing reform. 3.2.4 Consultancy firms operating in the sector continue to lack permanent human resources as a result of the unfavourable demand and supply situation, as well as the instability of the market and difficulties in financing and repaying huge IWRM investments (computers, vehicles and other technical equipment). As regards borehole and well drilling companies, it seems that the national capacity is above demand in terms of enterprises that bid for contracts. Such over-capacity appears to be due to the fact that many entrepreneurs operate in the water sector on an ad hoc basis without having the necessary equipment or staff. The result is poor quality services (technical quality and contract duration) and unstable unit prices. Compared to other countries in the sub-region, Benin has a large number of national NGOs. Most of them operate with very few permanent staff and use mostly temporary workers whose qualifications are not always adequate. Consequently, private-sector operators in the water and sanitation sector lack adequate capacity, and efforts should be made to increase their capacities.

Sub-Sector Opportunities

3.2.5 The national rural water supply and sanitation strategy has been implemented through the PADEAR. The mechanisms put in place helped to increase the number of water points from about 430 per year before 1990 to 550 per year between 1990 and 2001. Six years into its implementation, the programme’s strategic components for the development of the sector have become a reality, and most of the operators comply with them. About 9,000 water points were constructed in 2002; 7500 of these are functional (giving an estimated 23% pump failure rate). The infrastructure norm, which was one water point for 500 inhabitants, has been changed to one water point for 250 people, with a current need for 17,000 water points. The strategy also comprises a national maintenance policy which, when implemented, brought the failure rate down from 30% to 12% between 1990 and 1995; the current rate, however, is 23%.

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3.2.6 The strategy has helped to: (i) reduce the number of pumps used in Benin to a maximum of four; (ii) facilitate gradual State withdrawal from the implementation of programmes and the emergence of a private sector (building companies, consultancy firms, NGOs, local repairers and well constructors); (iii) mainstream gender considerations into water sector programmes; (iv) facilitate the systematic inclusion of hygiene education in these programmes and close working relations between the DGH and the DHAB; and (v) ensure the gradual strengthening of water associations. One of the major successes of the strategy has been to introduce the principle of the economic value of water to the communities. Users pay for the water they consume, particularly within the WUA. Payment for water from wells and hand-pumped boreholes is considerably less systematic. The principle of contributing financially towards the cost of infrastructure has also been introduced. 3.2.7 Nevertheless, the country must revisit and strengthen its drinking water strategy if it is to attain its millennium development goals by 2015. The new strategy should be based on the following principles: (i) increased technical and administrative decentralization of central administration’s role as the sector regulator, and establishment of functional relations between its decentralized structures and the councils; (ii) decentralisation of the decision-making process through the councils, which will plan based on the demand expressed by users and draw up a municipal development plan; (iii) involvement of users in financing, management, replacement of equipment, and monitoring of the structures; (iv) search for lower water costs by considering more lower-priced technical proposals and efficient management, and (v) privatisation of construction, operation, monitoring, and social intermediation with special emphasis on supporting professionalism among the local sector operators. In addition, cross-cutting issues will be taken into account because, even though they do not form part of the sector’s strategic components, they are essential in attaining the desired goals. Attention will therefore need to be given to: (i) the social objective of drinking water; (ii) the systematic inclusion of communication; and (iii) environmental and gender issues.

3.3. Gender Issues and Socio-economic Development 3.3.1 A close look at human development trends reveals remarkable differences between men and women in Benin. The differences always relegate women to the background. Women account for 51% of the total population, but the economic and social indicators for women in Benin are lower than the national average. The legal status of women is another major obstacle to their integration into the economic circuit. Their status militates against their advancement and their effective involvement in the process of national development, especially in rural areas. Despite several attempts since the 1990 National Convention to give them a higher profile in politics, they remain under-represented in the management of public affairs. On the other hand, however, they are much more visible in the liberal professions and technical branches where they account for 21.6% of the working population. A Family Code was adopted in June 2002, and it represents an important step towards improving the legal status of women. 3.3.2 As regards education, the proportion of illiterate women in 2001 was 76% as against 45% for men. The gross school enrolment for girls was 64% compared to 94% for boys. The health situation of women is precarious. Maternal, infant and child mortality remains high, 5 per1000 and 92.7 per 1000 respectively.

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3.3.3 With the implementation of PADEAR, women have become increasingly involved in the water and sanitation sector. Even though most of the water points are provided at the request of the men, women have a say in the type of structure to be built, and the application form for a water point must be signed by at least one woman. Membership of water points management committees comprises 39.5% of women. The one key position held by women on these committees is that of Treasurer, and as many as 40% of such positions are held by women in some regions. However, very few of them are water well drillers, and hardly any are to be found as service providers to Village Water Systems (VWS). Their secondary role in management structures is due as much to their timidity as to their lack of education. The decision as to the siting of structures remains the sole purview of the men because they, as landowners, decide on the transfer of land to the community.

3.3.4 Women are traditionally seen as being responsible for hygiene within the family and for ensuring hygiene around wells, as well as for the transportation, storage and consumption of water. Clearly, however, hygiene and sanitation concerns everyone - men, women and children. Some progress was made in PDEAR, which provided hygiene education for users of water points, schools and households. However, more efforts should be made to inform, sensitize, and train women, men, young people and children with a view to obtaining a long-term change in attitudes towards hygiene and sanitation. 3.3.5 As part of efforts to integrate the gender dimension into the water and sanitation sector, the MMEH has finalized an action plan in which the major objectives are to: (i) ensure that men and women participate equitably in resolving water and sanitation–related problems (design, procurement, management and utilisation); (ii) develop a training and information strategy for women and men on jobs that are available in the water and sanitation sector. To that end, a focal point has been established in the DGH to ensure the systematic inclusion of gender aspects, spearhead the incorporation of gender considerations in the strategy, and promote the consideration of gender issues in all DGH activities. 4. THE COUNTRY PROGRAMME 4.1 Design and Rationale 4.1.1 The proposed programme has been formulated to meet the basic drinking water and sanitation needs of the rural population. It should crystallise the country’s multiple experiences in DWSS project design and implementation, and support the national strategy in the area. The programme draws on the following principles: (i) the decentralisation of the sector; (ii) the beneficiary demand-based approach; (iii) the participation of the beneficiary population in infrastructure investment and maintenance; (iv) accelerated but transparent procurement procedures for goods and services; (v) support to the private sector, the decentralised technical structures in the sector, the local authorities and the beneficiaries; (vi) closer coordination between the various stakeholders; and (vii) promotion of a national sanitation policy closely linked to water. Socio-economic aspects have received special attention, with particular emphasis on gender issues so as to enhance the positive impacts of water and sanitation projects and improve their sustainability. 4.1.2 The overall programme was defined in conformity with the Government DWSS policy. By 2015, the population of Benin will have increased from 6 855 541 in 2002 to almost 11 000 000 inhabitants. Based on current population trends, the percentage of the rural population without access to drinking water will be about 8 000 000 inhabitants in 2015.

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Achieving the millennium development goals will require supplying water to 50% of that population without access to drinking water (4 000 000 inhabitants). Furthermore, based on the minimum norm of one modern water point for every 250 inhabitants, some 14 800 new water points will need to be constructed between 2005 and 2015, representing an average of 1 350 water points each year, which is more than double the current capacity estimated at between 550 and 600 water points every year. 4.1.3 The programme must thus help the sector to rise to two major challenges. Firstly, the water point construction capacity must double in the next 2 or 3 years, which will require (i) intensifying outreach activities; (ii) enhancing the capacity for social intermediation; (iii) increasing the capacity to process community applications; (iv) strengthening the capacity of local works enterprises; (v) opening the markets to regional and international enterprises; and (vi) strengthening the capacities of DGH, SDH and local councils. The second challenge will be to ensure sustainability of the water points. This will require the following actions: (i) rehabilitation of broken-down water points; (ii) strengthening the maintenance circuit; (iii) professionalising the management of water systems; and (iv) delegating the management of village water supply to the private sector. 4.1.4 As regards sanitation, the programme drew on the need to maintain synergy between drinking water and sanitation in the localities. The building of a water point is an excellent launch pad for promoting basic hygiene and sanitation since the beneficiaries ask for a water point because they want to improve their health and because easier access to water is a condition for better hygiene. 4.1.5 The operations must feature in the local development plans initiated by the local authorities. Programming of actions and planning of the sub-programmes will adopt a participatory approach involving the users, rural councils, the Government, support organisations, and private operators in the selection, design and management of the facilities. Projects initiated by the decentralised authorities based on a demand-related approach will be integrated into sub-programmes to be validated with the participation of beneficiaries. In conjunction with project implementation, IEC activities will be organised to create a conducive environment for the full involvement of local councils and water users. The programme has been designed to facilitate the transfer of authority for DWSS from the Government to the local councils by ensuring that the councils and village communities participate actively in sub-programme design, implementation and monitoring, and in capacity building activities for the councils and sector NGOs and associations. 4.1.6 As regards rural sanitation, the programme will draw on the PNHAB (National Basic Hygiene and Sanitation Programme). DWS works will systematically include equipment for draining the wastewater from dewatering or other activities. The sanitation aspect will focus on two strategic lines of action: (i) promotion of basic hygiene and sanitation in rural areas; and (ii) institutional support to the DHAB and its decentralised agencies. Information, education and communication activities will form the bases of all activities in the sector. The population, the women especially, will be involved right from the outset.

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4.1.7 The Bank’s first operation under the Initiative in Benin will target the hydro-geologically disadvantaged areas in Atlantique and Zou regions. These are regions with pockets of extreme poverty, which deserve improved water and sanitation services. The types of structures, their number, and the levels of service have been determined in accordance with the demands of the beneficiary population. The per capita cost of the structures is consistent with the national average (CFAF 25 000 per inhabitant). 4.1.8 Technical documents of the proposed structures for the first ADF sub-programme were based on the BOAD-funded preliminary design studies conducted in 2003 on (i) 45 VWS; (ii) 30 PEAs; (iii) 20 deep boreholes in sedimentary formations; and (iv) 40 boreholes in a basement zone. The technologies chosen for the sub-programme are current, cost-effective and familiar to the beneficiaries. The design of the structures takes into account the peculiarities of the regions concerned, where water is difficult to tap and where, in addition, communities are isolated and scattered. Deep high-pressure boreholes with strong waterflow and village supply facilities will be constructed. Great importance was also given to IEC activities and training courses for the various stakeholders. 4.1.9 Essentially, sanitation activities planned under the first sub-programme will involve the construction of school latrines and support to hygiene and sanitation promotion campaigns, with the support of NGO facilitators and MOH hygiene officers, as well as social marketing training for masons and craftsmen to facilitate the construction of family latrines for which demand should increase significantly at the end of IEC activities to be conducted in conjunction with the construction of experimental latrines. 4.1.10 Overall, the first sub-programme falls within the 2004-2006 programme budget which targets the following objectives: (i) provide 787 750 people in rural areas with access to drinking water points managed in conformity with the strategy, by constructing 2 515 new water points and 600 latrines, and rehabilitating 636 water points; (ii) improve knowledge on water resources in Benin to ensure sustainable and shared utilisation; and (iii) enhance the implementation effectiveness and capacity of the DH and SDHs in planning and monitoring activities through continued decentralisation and support to decentralisation. 4.1.11 The sub-programme components are in conformity with the PRSP and the programme budget. They contribute to the implementation of the PRSP and the Programme Budget, which form a series of measures for achieving poverty reduction. The sub-programme links the hygiene education activities to the construction of water points. Moreover, the construction of structures, conduct of studies and provision of other advisory services relating to the water and sanitation sector will be entrusted to the private sector in accordance with the national strategy. In order to make up for the continuing shortcomings of the private sector, which remain despite the progress over the last decade, the sub-programme contain activities to upgrade the quality of services and strengthen private operators in the sector. 4.2 Goal and Objectives 4.2.1 The programme goal is to ensure sustainable satisfaction of the drinking water and sanitation needs of the rural population so as to improve their health and socio-economic conditions. Its specific objectives are to ensure: (i) by 2010, a 50% DWS rate in rural areas and 40% sanitation coverage; (ii) by 2015, a 67% DWS rate and 67% sanitation coverage in rural areas; and (iii) better performance of the drinking water and sanitation sub-sectors.

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4.2.2 The sector goal of the first sub-programme is to ensure sustainable satisfaction of the drinking water and sanitation needs of the rural population in Atlantique and Zou Regions so as to improve their living standards. Its specific objectives are to help increase the rural DWS rate from 32% to 40% in Zou and Atlantique regions respectively, and the sanitation coverage in the two Regions to 25% by 2007. 4.3 Performance Indicators 4.3.1 The performance of the programme will be indicated, first and foremost, by the number of water points and DWS systems that are constructed or rehabilitated in comparison to the demand, and by the quality of their operation. The number of adequate sanitation systems will be another performance indicator. The prevalence rate of water-borne diseases is expected to drop accordingly. This rate will also serve to assess programme performance. The drinking water coverage rate should rise from 36% to 78% by the end of the programme. The pump breakdown rates, currently 20%, should drop to a maximum of 10%. The water points where drinking water quality is analysed are very few indeed. By 2015, quality analysis will be conducted at all water points twice a year. The percentage of households with adequate sanitation should increase from the current 15% to 66 %. 4.3.2 In addition, socio-economic indicators will also be taken into account: shorter distances to drinking water sources (for example the % of rural women who walk less than 1 km to a drinking water point), the number of people who use water for their income-generating activities, the efficiency of infrastructure management and maintenance systems (ability to respond rapidly should problems arise), the ability of the communities to pay taxes, and the number of economic activities created around DWSS. All the indicators set out in Table 4.1 below will be fine-tuned, monitored and analysed in the course of programme implementation as part of monitoring and evaluation.

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Table 4.1

Programme Performance Indicators

Indicators showing effectiveness of programme outputs Existence and efficiency of a water resource monitoring system Existence and efficiency of a DWSS infrastructure monitoring system Availability of study and preparation reports for the various phases

Number of water points and water supply systems created or rehabilitated Number of schools, markets, and health centres with DWSS Number of adequate sanitation systems created Quality of operation of the DWSS systems Number of water points with facilities for drinking water quality analysis, and frequency

Number of WUA members trained Number of users trained/percentage of women trained Number of persons sensitised / percentage of women sensitised Number of women water point managers Number of latrines built Average distance to drinking water point Drinking water demand coverage rate Percentage of households with adequate sanitation Number of sanitary latrines

Indicators showing programme effectiveness in terms of their impact on development Improved rural community health Rate of prevalence of water-borne diseases Morbidity rate Mortality rate Number of WUAs that are operational and financially sound Number of women members of the WUAs Number of private operators providing satisfactory services in the sector Capacity of users to plan, construct, manage and maintain DWSS systems Average drinking water consumption per inhabitant Capacity to carry out maintenance of infrastructure Number of economic activities generated by the DWSS.

4.4 Programme Description 4.4.1 The programme has the following components: A DEVELOPMENT OF BASIC INFRASTRUCTURE Construction of Water Points 4.4.2 The programme provides for the construction of 14 800 modern water points by 2015. The nature of the structures (wells, hand-pumped boreholes, autonomous water systems or village water works) will depend on the actual demand of the beneficiary population and on the technical constraints on accessibility to water in certain regions of the country. 4.4.3 The local councils will identify the schools and health centres without drinking water or where the water points are no longer functional. The construction of water points in these schools and health centres will be included in the council development plan. Financing

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will be provided for the construction of the water points. The programme provides for the construction of 50 water points, comprising 30 boreholes and 20 wells, in schools and health centres every year between 2005 and 2015. Construction of Institutional Latrines 4.4.4 For every water point built, appropriate surrounding sanitation structures will be provided in conformity with DHA standards. Their costs will be factored into the costs of the water points. The programme also provides for institutional latrines in health centres, schools and markets. Latrines in their family compounds will be constructed by the beneficiaries themselves. B STUDIES AND WORKS SUPERVISION AND MONITORING Functioning of “SIG-Eau” Database 4.4.5 To ensure sustainability of the investments, constant monitoring of the various equipment and activities will be needed. This will ensure that any necessary adjustments and adaptations needed to ensure optimum management of the entire sub-sector are carried out as quickly as possible. A functional working base will be provided by creating a data collection system and by training the staff that intervene at different levels (SDH, DGH and Councils) in how to use the database. A study of the groundwater situation in the project implementation area will be undertaken to gain a better insight into the volume of the resources and facilitate their management. The study findings will be entered into the “SIG – Eau” database. The sanitation component will also be incorporated in “SIG-Eau” database. Integrated Water Resource Management (IWRM) 4.4.6 Benin hopes to establish a national framework for integrated water resource management so as to facilitate the development and coordinated management of water, lands, and similar resources in its effort to guarantee better economic and social well-being for all while ensuring sustainability of vital ecosystems. Because Benin still lacks the necessary human resources and has not yet negotiated a financing plan with its development partners for IWRM activities, the cost of future activities in this respect has been built into the programme. C INFORMATION, EDUCATION AND COMMUNICATION Development of a Vast Information Campaign on Rural DWSS 4.4.7 The programme will finance the design and implementation of outreach activities on the new development strategy for the rural drinking water and sanitation sub-sector. The communication plan will target all sub-sector stakeholders (different ministries involved in the water sector, the technical and political decision-makers, technicians, mayors and council staff, Government decentralized services, the private sector and communities). Appropriate communication tools will be developed, and a specialist communication agency will be recruited to develop communication tools and activities. The communication strategy will develop tools to make the consultation framework functional at every level.

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Organise the Promotion of Basic Hygiene and Sanitation 4.4.8 Coordination will be established between the DGH and DHAB around the organisation of social marketing campaigns on specific issues: making water from wells and tanks drinkable, hygiene around water points, promotion of private sanitation structures in households, washing of hands with soap, etc. Communication tools will be developed for the target audiences, and the specialised agencies will conduct the communication campaigns. Links will be established with the communication programmes to be developed at the municipal level within specific sub-programmes. Develop AIDS Prevention Activities 4.4.9 Training and retraining will be systemically built into drinking water supply programmes for administrative staff, NGOs and enterprises, particularly the staff of drilling workshop. The training programme prepared by the DGH will include a module on AIDS. Similarly, the tools to be developed for the councils will contain an information sheet on AIDS prevention. Cooperation will be established with specialised health institutions, which will provide the training. The programme will bear the cost of these activities. D INSTITUTIONAL SUPPORT Increase the sub-sector’s implementation capacity 4.4.10 The programme will help to develop decision support tools that will enable the DGH to refocus on its regalian functions and thereby improve its efficiency, and that of the decentralised services and councils. It will also finance training cycles designed to strengthen the capacities of SDHs for the following responsibilities: data collection and operation of the database, procurement procedures, financial service, control, monitoring, etc. Council staff will also receive training to help them in their role of DWS delegated contracting authorities, in compliance with the texts on decentralisation. Private-sector Promotion 4.4.11 Pilot projects will derive from the programme, using simple affordable methods (casing, pile driving in the sedimentary layer) to encourage local enterprises to acquire more affordable equipment and enhance their capacity to respond to demand. Methods of providing cost-effective drinking water will also be tested with a view to attracting private-sector support in the area. The programme will also pay for studies on the possibilities of increasing access to credit for the private-sector and the communities for investment financing (or counterpart funding) or major repairs. Introducing professionalism into DWS management systems 4.4.12 The basic principle underlying the infrastructure management strategy is that of delegation for all types of drinking water structures. The programme will test the extent to which professionalism can be introduced into the maintenance chain (VWS, PEA, FPM and wells). Managers will be chosen to take care of a group of structures on the basis of a maintenance contract (similar to a lease) with the councils. The manager will be responsible for the operation, spare parts supplies, repairs, rehabilitation and management of proceeds from water sales.

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Organisation of consultation at different levels 4.4.13 For proper organisation of stakeholders in the sector, it is important to establish a formal framework for consultation (central, departmental, inter-municipal and municipal level) which will help to improve the flow and exchange of information and streamline approaches in regions. The operating costs of this consultation framework will be borne by the programme. Gender mainstreaming into all programme phases 4.4.14 Gender equity will be vital in the recruitment process at every level (DGH, SDH, private sector, water point management committee, water users associations) and in appointments to all posts, including executive positions. Shortlists shall comprise both men and women. All training modules will include tools to develop and strengthen women’s capacity to manage DWS. The number of “gender” focal points will be increased and extended to include NGOs and the SDHs. The cost of training for gender focal points in the ministries will be included in the programme. E PROGRAMME MANAGEMENT 4.4.15 The programme management component will comprise: (i) overall programme coordination; (ii) monitoring-evaluation; (iii) audit of the programme’s accounts. At the moment, despite the consultation framework among the donors, each has established its own self-financed management structure. In the future, through better consultation, it will be possible to ensure overall coordination of all the programme activities, and make better use of financial resources. 4.5 Programme Costs The cost of the programme (2004-2015) net of taxes is estimated at UA196.90 million, comprising UA 108.29 million (55%) in foreign exchange and UA 88.61 (45%) in local currency. The programme cost estimates are based on recent unit prices from similar ongoing projects and the implementation requirements of the 2005-2015 action plan. The cost of the sanitation component has been estimated on the basis of the national basic hygiene and sanitation programme and incorporated into the programme component designed to increase the impact of investments on drinking water. The detailed programme cost is presented in Annex 2. 4.6 Programme Sources of Finance 4.6.1 The programme will be financed jointly by the different donors and lenders, the Government, the local authorities, and the beneficiaries. The donors’ contribution, amounting to UA 167.37 million, will represent 85 % of the total programme cost. The Government, local authorities and beneficiaries will provide 15% (UA 29.53 million). 4.6.2 Financing will be provided under the programme budget. The Ministry of Mines, Power and Water Resources was chosen, as far back as 2000, to be part of the budget reform initiated by the authorities to switch from a budget based on resources to a performance-based budget. The budget reform is built around the unified budget, the General State Budget, which incorporates all domestic and external resources of the basis of coherent development

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programmes within a programmatic approach. Every year, the MMEH draws up a programme budget based on objectives for the medium term (2002-2004, 2003-2005, 2004-2006. etc.); the annual bands are in the General State Budget. The MMEH’s programme budget has four sub-programmes; one of them is the “Drinking Water Supply and Water Resource Management” sub-programme, which is implemented by the DGH and its technical services (SDH). 4.6.3 The programme for 2000-2015 will be partially funded to the tune of UA 38.24 million (23 % of donor contribution) by: (i) DANIDA, through PADSEA 2, for UA 15.63 million; (ii) by AFD, which will provide UA 5.87 million; (iii) JICA, to the tune of UA6.09 million; and (iv) the present ADF loan of UA 10.74 million. Thus, complementary funding amounting to UA 129.08 million will need to be sourced. Apart from its contribution, ADF will also take a lead role in mobilising the additional external financing for programme implementation. 5. THE FIRST ADF SUB-PROGRAMME 5.1 Sub-Programme Area and Target Population 5.1.1 The operation of the Bank’s first sub-programme concerns the hydro-geologically disadvantaged areas of southern Benin, which span Atlantique and Zou Regions. The Japanese and Danish Cooperation agencies operate in these two regions but their activities do not extend to these difficult areas where deep boreholes and water supply networks are required. 5.1.2 The climate in this area is sub-equatorial hot and humid, and has four seasons: a main rainy season from April to July, a short dry season in August and September, a short rainy season in October and November and, finally, the main dry season from December to March. Temperatures are 40°C maximum in March-April and 17°C minimum in December and February. Annual rainfall is between 900 mm and over 1400 mm. Rainfall increases from the North-West (less than 1100 mm at Abomey) towards the South-East, where it reaches the maximum level in the region of Porto-Novo and Sémé (over 1400 mm). An anomaly is observed in the Bopa-Athémé-Popo area, where less than 900mm rainfall is recorded; this area corresponds approximately to the Lama depression between the hills in the North and the plateaux in the South. 5.1.3 The programme area has a human poverty index, ranging from 42.8% for the Atlantique Region to 47.0% for Zou, as against a national average of 47.6%. The combined population of the two regions is 1.402 million, about 20.7% of the country’s total population. School enrolment for girls varies from 53.7% for Atlantique to 47.3% for Zou, compared to a national average of 45.3%. The proportion of the population that uses an unprotected water source varies between 33.1% for Zou region and 33.9% for Atlantique region. The national average is 35.8%. 5.1.4 A large proportion of the population do not have toilets. The figure varies from 65.1% in Atlantique region to 68.1% in Zou region, compared to a national average of 67.3%. The table below presents the village water situation by region at 31 December 2003. It shows that the area covered by the sub-programme has the lowest equipment and service coverage rates among the regions, except Ouémé.

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Table 5.1 Equipment and Service Rates by Region

Region Population in

2003 Equipment Rate (%) in

2003

Failure rate (%) in 2003

Coverage Rate (%) in 2003

Alibori 533 972 56 20 45Atacora 558 574 60 20 48Atlantique 833 928 37 15 32Borgou 741 975 48 14 42Collines 547 405 65 21 52Couffo 529 342 49 13 45Donga 358 010 47 23 36Mono 360 061 44 19 35Ouémé 731 906 21 19 17Plateau 414 393 39 12 38Zou 597 975 31 19.6 26Total 6 207 543 44 19 36 5.2 Description of the First ADF Sub-Programme 5.2.1 The sub-programme for first financing by ADF has the following components:

A. Development of basic infrastructure B. Studies, Works Supervision and Monitoring C. Information Education and Communication (IEC) D. Institutional support E. Sub-programme management

COMPONENT A: DEVELOPMENT OF BASIC INFRASTRUCTURE 5.2.2 To improve drinking water supply to the rural population in Atlantique and Zou regions, the sub-programme will finance village water supply (VWS) networks and independent water sources (PEA). This option is dictated by technical constraints. The low water level in the water tables, sometimes more than 200 metres, leads to extremely high water catchment costs, making it uneconomic for a small population. The extremely deep static level of the waterbeds, sometimes more than 50 metres, makes manual bailing from wells extremely difficult, especially for women, who usually carry out this task. In both Atlantique and Zou regions, the programme will finance rehabilitation, upgrading, extension, and construction of new PEAs and VWS. 5.2.3 In Atlantique region, the sub-programme will finance the construction, rehabilitation, strengthening and extension of 25 VWS and 28 PEA. In addition, in the lake areas, eight mini waterworks equipped with solar pumps will be rehabilitated and upgraded. Thermal pumps will be fitted instead of the solar pumps, which do not function well due to lack of maintenance and also because the sky is very often overcast in such areas. In Zou region, 19 VWS and 14 extensions to the SONEB network will be built to supply drinking water to the communities in the localities designated under the first sub-programme. Boreholes, pipes, pumping stations, reservoirs and public drinking fountains will also be provided.

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5.2.4 Funds from the sub-programme will also be used to finance sanitation works, particularly latrines in schools and markets. 120 modules of school latrines each are planned for Zou and Atlantique regions and, in a pilot experiment, latrine modules will also be built in two markets in each region to see how well they will be managed. COMPONENT B: STUDIES, WORKS SUPERVISION AND MONITORING 5.2.5 The Studies sub-component comprises: (i) the construction of hydro-geological models of the water table in Zou and Atlantique regions; (ii) promotion and inclusion of basic hygiene and sanitation in the “SIG-EAU” computerised geographic system; (iii) partial financing of IWRM implementation; (iv) partial financing of studies on water and sanitation projects for the preparation of future sub-programmes under the Initiative. 5.2.6 Modelling of the water tables in Atlantique and Zou regions will make use of computerisation tools (software and computers) and the skills available at the DGH, which are currently being used to simulate the operation of SONEB water catchment areas in the southern part of Atlantique region. The programme will finance data acquisition and recruitment of consultants to design models of the water table in Zou and Atlantiqe regions, and to train staff of the DGH and the SDHs in Zou and Atlantique regions on how to use the models. 5.2.7 The DGH already uses the “SIG-EAU” database designed mainly for water resources and catchment infrastructure management. Field measurements have been taken to draw the zero condition of the model in relation to water. For it to become a real water resource management tool, in terms of quality and quality, it is imperative that SIG-EAU be extended to cover basic hygiene and sanitation, in recognition of the close link between drinking water consumption, good hygiene practices and sanitation and public health. Supplementary modules for hygiene and sanitation will be included in “SIG-EAU” and a zero condition determined for basic hygiene and sanitation. Furthermore, in order to be efficient and more operational, "SIG-EAU" should be adapted to fit into the current decentralisation and deconcentration framework. Every region and every council should be involved. The sub-programme will finance all activities in connection with “SIG-EAU” at the central level and in Zou and Atlantique regions and their councils. 5.2.8 Because Benin is at the initial stage of its national IWRM process, it does not yet have the human resources for all the planned activities, and the country should therefore be assisted by consultants. Provision has been made for the recruitment of several consultants, including a socio-economist. DANIDA will pay for the services of the other consultants. 5.2.9 It will be necessary to prepare studies on the new projects, especially those for village waterworks (preliminary sketches or detailed preliminary studies) if their implementation is to proceed smoothly. Projects developed in response to beneficiaries’ explicit demand could be fine-tuned, appraised, and included in future phases of the Initiative. Budgetary provision for projects identified in Zou and Atlantique regions has been included in the first sub-programme.

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5.2.10 The sub-component on supervision and monitoring of all DWS works will be entrusted to consulting firms. NGOs will be recruited to oversee and monitor sanitation works. The consulting firms and NGOs will work in close collaboration with the relevant services responsible for water, hygiene and basic sanitation in the regions, who will act as the delegated contracting authorities. COMPONENT C: INFORMATION EDUCATION AND COMMUNICATION (IEC) 5.2.11 IEC and support activities will be organised for the population and structures involved in the programme. IEC activities will focus on the drinking water and sanitation aspects. Sensitisation, information, education, and communication campaigns will be organised for village communities and local officials throughout the programme duration, in order to guarantee its impact. Activities pertaining to sanitation will, first and foremost, stimulate demand for individual structures and help users to make informed choices about the most suitable sanitation structure for them. IEC activities under DWS will enable the population and rural communities to: (i) express an opinion on the technical choice of structures; (ii) discuss in what manner they will contribute to the construction and maintenance of the structure; (iii) form themselves into water point committees; (iv) encourage women to participate at every stage of DWSS programmes; (v) educate the DWSS related micro-enterprises (craftsmen, well drillers, masons, etc.) about the possibilities for micro-finance; and (vi) assess the impact that the structures have had on improving beneficiaries’ standards of living. Social intermediation procedure 5.2.12 Before programme activities begin in each area, mass mobilisation and training activities will be conducted to establish or consolidate local DWSS management structures (village development committees, village community development leaders, water management committees,) to remedy any shortcomings found in existing structures and provide structures where none exist. The stages in the implementation of Social Mobilisation will begin with steering committees set up to oversee the design and conduct of the process. The steering committee will recruit and train NGOs that will provide social intermediaries with the communities. After the information campaign, the communities will submit their applications for water and sanitation structures of their choice. Once this application is validated by the SDH or SHAB, the village is selected, the social mobilisation component of the sub-programme commences with a study of the area, supervised by the NGOs. Thereafter, the communities provide their contribution towards the investment, a management structure for the water structures and draw up management rules for their future water point. When the file is ready, the administration will invite bids, construction works on the structure will be awarded to the selected enterprises. Once the structures are commissioned, their financial, technical and administrative management devolves on the community. The success of this sector strategy can be measured not only in terms of the actual physical achievements but also, and even more importantly, in terms of the sustainability of the service. 5.2.13 The sub-programme will cover the cost of preparing and/or adapting teaching aids for IEC activities, the production costs of the materials, and expenses incurred on the campaigns. The teaching aids will be prepared in conjunction with the relevant services of the administration and the civil society. Training will be provided for water fountain operators, local generator-repairers, and masons for the latrines. Lastly, the programme will provide training for associations involved in the management of the sector. Women’s organisations

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will be given organisational and management training so that they can be more effective contributors to project implementation in the sector. In addition, users associations, water point committees and private service providers will be trained in the organisation and management of the structures, while those elected locally will receive training in project management and on how to implement water and sanitation projects. Promoting hygiene and sanitation in schools, health centres and public places will form part of this component. 5.2.14 The sub-programme will make use of NGOs and consulting firms to implement a training of trainers plan. This will entail: (i) introducing professionalism into the management of water points by delegating management or by setting up an operating post for the FPM and PM, and completing the administrative documents; (ii) signing of a management control contract between the enterprises and the communities, similar to maintenance contracts. Care will be taken to ensure the involvement of women service providers. Training will be in the areas of hygiene, management and organisation. It will focus especially on accounting and financial management, the role and functions of each member of the management team, spare parts inventory management, and equipment maintenance. COMPONENT D: INSTITUTIONAL SUPPORT 5.2.15 A significant institutional support component has been built into the programme to remedy the institutional inadequacies and develop the capacities of the different stakeholders, who will be involved. The programme will assist with capacity development for all water and sanitation sector stakeholders: the DGH, DHAB, SDHs and SDHABs in Atlantique and Zou regions, the municipal authorities in the two regions, the Ministry of Family Affairs, Social Protection and Solidarity and the private sector. 5.2.16 To enhance the capacity of the DGH to control the country’s water resources in terms of quantity and quality, the programme provides for: (i) financing of equipment for the DGH’s water quality analysis laboratories; (ii) computer equipment for the SDHs in Zou and Atlantique regions to enable them use the hydro-geological models of the water tables of the two regions; (iii) computers for the installation of “SIG-EAU”. 5.2.17 Institutional support to the DHAB will consist in: (i) the extension of SIG-EAU to include basic hygiene and sanitation; (ii) elaboration of a “zero condition” showing the current situation of sanitation and ongoing efforts to educate and enlighten the public to improve basic hygiene; (iii) procurement of office equipment, computers and vehicles needed for the coordination of the basic hygiene and sanitation component of the sub-programme. 5.2.18 The principal beneficiaries of the sub-programme will be the SDHs and SDHABs who will thus be made to play their full role as delegated contracting authorities. Their -programme budgets will be increased so that they can handle the monitoring and management of DWSS implementation in the two Regions They will receive support towards: (i) the installation of the models and SIG-EAU and training of their officers on how to use them; (ii) the procurement of computer and office equipment; (iii) the procurement of equipment for land survey, flow meters, level gauges, equipment for gross water analysis and (iv) partial funding of site visits. 5.2.19 The technical services of the councils in the two Regions, enterprises and NGOs in the water and sanitation sector will benefit from training to enable them carry out their functions more effectively. The Centre for the Development and Supervision of Small and

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Medium Enterprises (CEPEPE) will be assisted to enable it to provide support to the private operators involved in the preparation of their bidding documents, supervision of project sites, advisory services and management and training assistance. Similarly, the Ministry of Family Affairs, Social Protection and Solidarity will benefit from financing towards preparing an action plan that will take account of the gender dimension in the development of the rural water and sanitation sector. COMPONENT E: SUB-PROGRAMME MANAGEMENT 5.2.20 The sub-programme will rely on existing institutions, notably the SDHs in Zou and Atlantique Regions, and the DHAB and its decentralized services in the two regions. They will be responsible for implementing the different facets of the sub-programme, in conjunction with the Councils and act as delegated contracting authorities. A light-structure implementation unit will be set up for the technical and financial coordination of the sub-programme. The operating costs of the unit will be financed by the sub-programme. This component envisages the following activities: (i) coordination of the sub-programme; (ii) monitoring-evaluation; and (iii) sub-programme accounts audit.

5.2.21 Sub-programme Coordination Overall coordination will be the responsibility of the implementation unit (IU). It will operate from Bohicon in Zou region in office premises provided by the Government. Provision has been made in the sub-programme for the procurement of furnishing items and the equipment that it will require to function effectively. The IU will use contractual staff recruited on a competitive basis, in conformity with the procedure for the use of consultants. The sub-programme will pay staff emoluments. 5.2.22 Monitoring-evaluation: Regular monitoring and evaluation missions will be necessary to assess the quantitative and qualitative impact of the sub-programme. The monitoring evaluation system will comprise (a) surveys (including qualitative) at programme start-up, mid-term, and completion, (b) definition of monitoring indicators on a participatory basis; (c) recruitment of monitoring-evaluation experts for the programme implementation unit; and (d) training of officials who will work with the different stakeholders to collect and monitor data on their respective activities. NGOs or local consulting firms will be commissioned to carry out these programme impact monitoring and evaluation activities. The outcomes of the missions will be incorporated in the periodic reports sent to the Bank by the IU. They will also serve as input in appraisal missions by the Bank or the other donors and lenders. One crucial thrust of the monitoring – evaluation exercise will be to ensure effective involvement of women at every stage of the programme and in the elaboration of disaggregated gender indicators. 5.2.23 Audit. This aspect covers the financial and technical audit of the programme. Annual financial audit missions will be conducted by an external audit firm which will be recruited through competitive bidding on the basis of shortlists. The sub-programme will bear the cost of these audit missions. 5.3 Impacts on Cross-cutting Issues Environment 5.3.1 The sub-programme is classified in Category 2, and does not require prior impact assessment. Given the medium scale of its components (boreholes, construction of small pumping stations, small reservoirs and simplified networks), the programme should not have

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any significant negative and uncontrollable impacts. It offers many socio-economic benefits (public health, hygiene, poverty reduction, gender) which will enable it to meet the fundamental needs of the rural population as regards water and sanitation services. 5.3.2 There are three main types of environmental protection problems in Benin. The first relates to the intensive utilisation of underground water to satisfy the ever-growing needs of people in the sedimentary belt. More intensive water catchment may cause imbalances which will affect water quality and the environment and cause brackish or thermal water to flow into the waterbed. To avoid this, appropriate action must be taken, firstly, to obtain a more precise assessment of the hydrodynamics of each aquifer and, secondly, to put in place an optimum surveillance network for monitoring the way that water use and fluctuations in rainfall patterns affect the water table system. 5.3.3 The second problem relates to water quality throughout the country, and this aspect will also fall under the responsibility of the DGH, and specifically, its water resources department. The department carries out physical and chemical tests and bacterial tests at its laboratory and in other laboratories in the area, as well as physico-bacteriological analysis of the waters, and water quality control, studies and the necessary remedial measures to improve and protect water quality. The major handicap facing it is a lack of trained staff, and the material and financial resources to do the work properly. The sub-programme contains a capacity building component for the DGH. Assistance towards the implementation of these two components will be in relation to the monitoring of surface drainwater, monitoring of underground drainwater, monitoring of the quality of water resources, and protection of water supply sources. The DGH will be the principal beneficiary of support for these activities. 5.3.4 The third environmental problem in the sub-sector is the state of sanitation in rural areas, where very negligible results have been achieved. Progress made in most regions has been limited to the aspects of education, information, and communication. As a remedial measure, village sanitation measures will be undertaken in the implementation of the sub-programme in the following areas: strengthening individual, family and collective hygiene and promoting simple, affordable hygiene and sanitation methods and techniques for users. All projects and programmes earmarked for funding must emphasise hygiene in the immediate vicinity of the water points and protect water quality at every stage of the distribution chain. 5.3.5 The positive outcome will be considered in relation to the sub-programme’s contribution to (i) upgrading knowledge of the resource and its rational use, (ii) improvement of hygiene and public health, cleanliness at catchment sites, and heightened beneficiary awareness of environmental protection issues and water-borne diseases. The socio-economic effect is equally important as it will result in improved health for the population (less money spent on health, fewer cases of absence from school or work for medical reasons). The programme will also stimulate development of economic activities linked to regular water supply (livestock breeding, market gardening, traditional food industry, etc.…) which will, in turn, create jobs (construction work, management of water points, etc.). 5.3.6 Measures to mitigate the environmental impacts will consist in the piezometric monitoring of water tables to reduce the risk of over-exploitation of the resource and to allow for better assessment of renewable reserves. Once the piezometric monitoring is completed, regulatory measures will be taken to limit the maximum authorised drawdown at wells and boreholes, which shall not be more than half the thickness of the unconfined water, and the

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surplus from the confined groundwater. Regular monitoring of the catchment areas (chemical, micro- biological analyses, etc. …) and the health equipment will reduce the risk of water-related pathologies; current national standards will serve as quality benchmarks. Regular equipment maintenance will be ensured, and information, health and hygiene education will be provided in rural areas to communities living in the close vicinity. The companies’ specifications shall incorporate these sector-specific environmental concerns: waste management, building standards, soil conservation, and stabilisation. Poverty 5.3.7 The programme will contribute to improving the socio-economic status of poor households, and especially women by developing income –generating activities such as market gardening, and sale of water and its by-products. Improved drinking water and sanitation services to rural areas will result in: (i) improved health for the population, (ii) lower neonatal and child mortality and morbidity from the major illnesses, and (iii) relief from the deprivations suffered by the most underprivileged. Lastly, the poorest sections of the population will benefit from having to spend less on health, and from their enhanced productivity. 5.3.8 According to the statistics published by the National Hygiene Programme, three-quarters of illnesses in Benin are caused by poor hygiene. If one considers that a child living in the rural areas of Benin suffers from diarrhoea five times a year, and that a typical family has three children under the age of five, it means that a mother treats fifteen two to three-day bouts of diarrhoea every year, often involving visits to health centres and requiring the buying of oral rehydration packs. In addition, she must devote almost her entire time to nursing the sick child. These bouts of diarrhoea can cost the mother 30 to 145 days lost days a year, about the same number of days lost to malaria. In financial terms, each woman who is a mother records lost earnings of between CFA F60 000 and CFA F 90 000 FCFA per year, not counting the medical cost of treating these diseases. Gender (Women) 5.3.9 Training and awareness activities under the programme will improve the organisational capacity of the beneficiaries, most especially women’s associations in the two regions, who will be able to use the economic opportunities to their advantage and whose economic situation will improve as a result. Also, the proximity of water points will free up time that will be put towards income-generating activities, or to educating girls and women, on whom the task of water collection and transportation devolves. 5.3.10 A study carried out in 2002 in the rural areas of Zou, Atlantique and Collines regions showed that the majority of the women use leaves or oilcloth to stabilise water during transportation; 90% of households store drinking water in earthenware pots which are kept outside the huts, and 27% of these recipients are uncovered. Women spend 6 to 8 hours a day on household chores, mostly searching for drinking water or wood. Women, although the most concerned by drinking water supply in households (in at least 80 to 90% of cases), are under-represented within the structures responsible for the management of water points, and very rarely get to occupy positions of responsibility. Out of 56% of households with drinking water supply, 46% live in rural areas; 49% of the population are deprived of drinking water and 73% have lived in unhealthy conditions. Water collection in several areas of the country is the sole preserve of children and women, leaving them with very little time and energy to set about complying with minimum water intake of 20 litres/day/person recommended by the

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MMEH and WHO. The vast majority of the population used to fetch water directly from lakes, streams, and swamps. Water is badly stored and deteriorates in quality in the homes. Most households use traditional latrines but without observing standard rules of hygiene; these latrines are very often sources of contamination. Moreover, women and children, especially in Zou region, often have to contend with water scarcity and so must spend considerable time and effort each day fetching water and attending to persons suffering from diseases caused by dirty water and inadequate sanitation services. The result is that children cannot go to school and the women cannot engage in productive activities that can enhance their socio-economic status. All these problems contribute to perpetuate poverty in rural areas. Access to clean water and adequate sanitation will bring about significant health gains and free up time and resources that women and children can devote to reducing poverty. Participatory Approach 5.3.10 The participatory process underlying the programme will ensure broad stakeholder involvement and partnership among civil society institutions and the communities in the sense that it will ensure better representation and functionality of the management committees and improve the quality of participation in the local planning and monitoring of activities. These programmes contain actions that are socio-environmental in nature, and this will improve both the quality and extent of beneficiary participation, especially of women. The results will be: (i) enhanced sustainability of the structures and greater or better use by the beneficiaries; (ii) target groups are more willing to use collective or individual sanitation services; (iii) there will be capacity gains in terms of resource personnel, facilitator animation, management, maintenance of structures by stakeholders operating in the field; iv) better coordination of the actions of the different stakeholders; and (v) provision of effective monitoring-evaluation mechanisms that can correct or adapt the outputs to the prevailing needs and situation. 5.4 Cost of the First Sub-Programme 5.4.1 The cost of the sub-programme net of taxes is estimated at UA 12.67 million, comprising UA 5.38 million is in foreign exchange (42.50 %) and UA 7.29 million in local currency (57.50 %). A provision of 10% for physical contingencies and 3% for annual price escalation in foreign exchange and 6% in local currency has been factored into the cost. Detailed costs by component are given in Annex 3 and are summarised in Table 5.2 below.

Table 5.2 Cost Estimates by Component

CFAF Billion UA Million

Components

L.C. F.E. Total L.C. F.E. Total

A. Development of Infrastructure 3.05 2.39 5.44 3.87 3.04 6.91 B. Studies, Works Supervision and Monitoring 0.53 0.40 0.93 0.68 0.50 1.18 C. Information, Education and Communication 0.18 0.14 0.32 0.23 0.18 0.41 D. Institutional support 0.62 0.45 1.07 0.78 0.58 1.36 E. Management 0.19 0.15 0.34 0.24 0.19 0.43 Base Cost 4.57 3.53 8.10 5.92 4.37 10.29 Physical contingencies 0.46 0.35 0.81 0.59 0.44 1.03 Price escalation 0.61 0.45 1.06 0.78 057 1.35 Grand Total 5.64 4.33 9.97 7.29 5.38 12.67

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5.4.2 Tables 5.3 and 5.4 below give the cost estimates of the sub-programme by expenditure category and source of finance.

Table 5.3 Cost Estimates by Expenditure Category

CFA F Billion UA Million

Category of expenditure L.C. F.E Total L. C. F.E. Total Works 3.05 2.39 5.44 3.87 3.04 6.91 Goods 0.00 0.20 0.20 0.00 0.25 0.25 Services 0.95 0.52 1.47 1.32 0.55 1.87 Operating costs 0.57 0.42 0.99 0.73 0.53 1.26 Base cost 4.57 3.53 8.10 5.92 4.37 10.29 Physical contingencies 0.46 0.35 0.81 0.59 0.44 1.03 Price escalation 0.61 0.45 1.06 0.78 057 1.35 Grand total 5.64 4.33 9.97 7.29 5.38 12.67

Table 5.4 Cost Estimates by Expenditure Category and Source of Finance

(In UA million)

CATEGORY ADF GOVERNMENT BENEFICIARIES Total Works 6.04 0.52 0.35 6.91 Goods 0.25 - - 0.25 Services 1.64 0.23 - 1.87 Operation 0.79 0.47 - 1.26 Base cost 8.72 1.22 0.35 10.29 Physical contingencies 0.87 0.12 0.04 1.03 Price escalation 1.15 0.16 0.04 1.35 Grand Total 10.74 1.50 0.43 12.67

5.5 Source of Finance and Expenditure Schedule 5.5.1 The sub-programme will be jointly financed by ADF, the Government and the beneficiaries in accordance with the relevant country policy. Provisions for the positioning of financial resources required for sub-programme implementation are presented in Table 4.6 below. 5.5.2 The ADF contribution of UA10.74 million represents 85 % of the total cost. In addition to its contribution, ADF will play a lead role in mobilising additional external financing for the implementation of the programme. The Government will finance 12% of the sub-programme, amounting UA1.5 million, while the beneficiaries will finance 3% of the cost, amounting to UA 0.43 million.

Table 5.5 Sources of Finance

CFA F Billion UA Million %

Source L.C. F.E. Total L. C. F.E. Total ADF 4.12 4.33 8.45 5.36 5.38 10.74 85 Government 1.18 - 1.18 1.50 - 1.50 12 Beneficiaries 0.34 - 0.34 0.43 - 0.43 3 TOTAL 5.64 4.33 9.97 7.29 5.38 12.67 100

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Table 5.6 Expenditure Schedule by Component

(In UA million)

Component 2005 2006 2007 Total A. Development of infrastructure - 4.55 3.96 8.51

B. Studies, works supervision and monitoring

- 0.87 0.58 1.45

C. IEC 0.25 0.25 0.50

D. Institutional support 0.84 0.42 0.41 1.67

E. Management 0.16 0.19 0.19 0.54

TOTAL 1.00 6.28 5.39 12.67

Table 5.7

Expenditure Schedule by Source of Finance (In UA million)

Source 2005 2006 2007 Total

ADF loan 0.85 5.33 4.56 10.74 Government 0.15 0.72 0.63 1.50 Beneficiaries - 0.23 0.20 0.43 TOTAL 1.00 6.28 5.39 12.67

6 SUB-PROGRAMME IMPLEMENTATION 6.1 Executing Agency 6.1.1 The Ministry of Mines, Energy and Water Resources will be the executing agency of the sub-programme. It will set up an implementation unit, which will be based in the DDMEH in Zou region and will be under the immediate authority of the Director of the MEH in the region. Its role will be to i) manage, coordinate and plan the operations; ii) monitor and control activities for implementation under the programme, iii) keep the accounts and monitor disbursements; iv) carry out the audit of the all programme activities; and v) ensure the flow of information to the monitoring committee to which it will provide secretarial services. 6.1.2 The IU will be headed by a coordinator who will be a water and sanitation specialist, and will comprise two other experts (a socio-economist and an accounting officer), and support staff. The management staff at the IU will be recruited on a competitive basis, in conformity with the procedure for the recruitment of consultants. The officials must, if necessary, have requested to be released before they are recruited. The Government will provide the IU with functional office premises. The unit’s equipment and running costs will be borne by the programme. The Borrower will prepare a manual of administrative, financial and accounting procedures for the management of the programme, which will be submitted to the ADF for approval. The following will be conditions for the first disbursement of ADF resources: evidence of i) a ministerial order establishing the unit; ii) evidence of the recruitment, on a competitive basis, of the professionals whose CVs must have been approved by the ADF; and (iii) evidence that functional premises have been provided for the unit.

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6.2 Institutional Arrangements 6.2.1 To ensure linkage and synergise the sub-programme activities with the different sectoral policies and also to reinforce the participatory approach, a Programme Monitoring Committee will be set up. Its members will be the representatives of the Ministries responsible for water resources, sanitation, environment, finance, rural development, interior, public works, women affairs, decentralisation, the private sector, NGOs, water users associations, and women’s groups. The committee will provide multi-stakeholder coordination, particularly on cross-cutting issues, so as to ensure successful implementation of the programme. The committee, which will play an advisory role, will be chaired by a representative of the Minister responsible for the water sector. The sub-programme implementation unit will provide secretarial services to the committee. 6.2.2 The sub-programme will make use of existing institutions, notably the DGH and the DHAB and their decentralised structures. The DGH will ensure the technical quality of the Drinking Water Supply component while the DHAB will supervise the sanitation component. These Departments will receive logistical and financial support from the sub-programme. Their main functions, each in its own sphere of activity, will be to: (a) provide guidelines in the overall planning and annual programming of infrastructure delivery operations; (b) evaluate the implementation of their own component; c) assist the Councils to evaluate their sub-projects; d) through their regional directorates, act as delegated contracting authorities during the sub-project design and implementation, in consultation with the councils. 6.2.3 Pending the strengthening of the capacities of the Councils to implement DWSS programmes is completed, the water and basic hygiene and sanitation directorates in the Regions will, in their capacity as the regional representatives of the DGH and the DHAB, act as delegated contracting authorities for the councils during the design and construction phase. 6.2.4 Prior to the commencement of the programme, the staff of the regional directorates will be given training, and provided with the office equipment, computer equipment and the means to enable them carry out their mission. Their functions will include:

(i) selection of councils; (ii) Programme awareness campaigns in the selected councils; (iii) Assisting the municipal councils to screen applications from village

communities; (iv) Assisting the municipal councils to select the local initiative sub-

programmes; (v) recruitment of social and technical intermediaries, in close collaboration

with the national Directorates; (vi) preparation of bidding documents for the recruitment of consultants and

enterprises; (vii) supervision of intermediaries during the preparation of village community-

based sub-programmes; (viii) quality control of contractual services (technical assistants, technical, social

and technical intermediaries, enterprises, etc.); (ix) verifying conformity of works and structures with national standards; and (x) monitoring-evaluation and support training-facilitation of the participatory

process during programme implementation and beyond.

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6.2.5 As a general rule, each Regional Directorate will coordinate the programme work plan in its own region and will endeavour to educate and enlighten the administrative and political authorities and all other technical departments involved adequately on the objectives and projected outputs of the programme; they will also play a catalytic role of liaison between the regional stakeholders and between them and the national stakeholders. 6.2.6 As part of their routine duties, the technical decentralised services of the administrative services (SDA), the technical and administrative services, the sector ministries concerned by DWSS in the regions and their sub-units in the councils and at the grassroots will provide: (i) support-advice to the beneficiary communities and the parties undertaking the technical studies for sub-programme preparation and implementation, and (ii) ensure that the sub-programmes comply with the main aspects of government policy in the sector, so as to avoid duplication with any other project for which funding has already been secured. 6.3 Implementation Modalities 6.3.1 Implementation of the sub-programme will be in conformity with practical modalities already in place in the country, defined during the implementation of PADEAR and improved under the PADSEA programme. 6.3.2 The strategy revolves around a process of demand-based planning. The communities a can initiate their own projects and apply to the different regional water services for financing. Their capacities will be strengthened and they will be given staff with the right profile to handle their new role of promoters of the water and sanitation sector. NGOs will be recruited to assist the communities to organise their projects (preparation of community-based files). 6.3.3 The anchor principle in the demand-driven approach is that the communities contribute to financially towards the initial investments according their technological option and the level of corresponding service. This means that the communities can make an informed choice as to the appropriate structure since they make a commitment to invest in and maintain the particular type of structure chosen by them. 6.3.4 As the owners of the structures, the councils will assist the communities to set up the organs that will represent them and defend their interests, and will help them to raise the amounts that they will need to contribute. Where there are pockets of poverty, the council will help to raise the communities’ financial contributions. They will also provide the decentralised services of the ministries with all relevant data on the structures. 6.3.5 Once the applications/demands are approved in accordance with the existing provisions, the communities will incorporate them in the local development plans so that they can be programmed. The councils will compile all the community development plans into a municipal development plans. They will examine the community-based projects, using objective criteria to determine the choice and siting of projects developed by the ministry responsible for water resources. The DDMEH carries out the technical validation of the documents prepared in the councils.

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6.3.6 In that regard, the councils will sign a contract with the social intermediation agencies (SIS). These structures will assist the councils to prepare the municipal development plans and may also take charge of 3training, hygiene awareness activities in the vicinity of water points, and organising the maintenance of water points. The SIS will focus on promoting better quality water and sanitation and assist with the preparation of project documents. Social intermediary structures may be the relevant government institutions, private service providers (enterprises, consultancy firms, qualified persons), or NGOs. The councils will ensure that the documents meet the set criteria. 6.3.7 The SIS will have access to information about the principles underlying the strategy and on its implementation, and they would be able to respond to invitations to bid for work with the councils. The DGH has set specific criteria to determine the competencies and qualification of the SIS. Calls for expressions of interest and invitation for bids will show whether the SIS meets these criteria. 6.3.8 The SDHs will oversee the transfer of knowledge, and monitoring and control. They will monitor compliance with applicable legislation, and ensure that the structures are up to standard in terms of their design, construction and operation. At the behest of the councils, they provide support-advice in respect of their water supply programme (preparation of dossiers, preparation and evaluation of bids, drawing up of contracts for the management of the equipment….). In conformity with the law on decentralisation, the SDHs act as the authorised client representatives of the councils. To be able to carry out their client function fully, the councils will need to have an inventory and maps to provide it with an accurate assessment of the water resources in its territory. It is the responsibility of the SDHs and the other services involved to provide the Mayor with this working tool that is absolutely crucial for the planning of the investments. 6.3.9 The councils also delegate the client function to the DDMEH in matters relating to the organisation of bidding within the department and to construction works. For the implementation of civil works, the roles of control and client will be separated. Moreover, construction of the structures may be the subject of an agreement between the councils, as envisaged in the law on decentralisation. Given the present organisational structure of the councils, and their human, financial, and technical constraints, a progressive approach will be adopted with regard to the transfer of knowledge and provision of tools that will enable them, ultimately, to be completely familiar with the client function. This gradual approach should however not be allowed to slow down the pace of construction work. 6.3.10 Within the regions, the Prefects represent the authority of the Ministry of Mines, Power and Water Resources. Within the Regional Administrative Council, comprising all Directors and heads of the State decentralised agencies, they carry out their function of providing orientation and coordinating the activities of government within the region. The SDH acts as technical adviser to the Prefect, who is the decentralised authority in water-related matters, and assist him to carry out the duties now conferred on him by law. The minister in charge of water decides the scale of the structures and fixes a unit cost bracket for them. (based on previous programmes). 6.3.11 The ministry responsible for water resources will prepare modules for the transfer of skills to the SIS and the councils; such transfer will be done through its directorates. The SIS and the councils will bear the organisation cost of skills transfer. The SDHs will have a budget for organising training cycles as part of enhancing the capacity of the councils and the other structures to carry out their new functions.

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6.3.12 Learning from the lessons of the past, the management of the rural drinking water services will be based on the principle of delegation. Particularly, in the case of village waterworks, where the complexity of the systems calls for specialised skills, delegation of management can be conceded to a competent private-sector professional operating in the sector and approved by the technical ministry. Specific technical specifications must be drawn up for delegation of management (lease or concession). Private service providers will be recruited through competitive selection to manage the water systems. Special emphasis must be given to ensuring rigorous monitoring of the concession contract. 6.4 Supervision and Implementation Schedule

The sub-programme will be implemented over a period of 36 months, starting from January 2005. The Bank will monitor its implementation through half-yearly supervision missions, including an annual joint mission with the sector donors. Civil works will take 30 months, starting from July 2005. Annex 5 sets out the implementation schedule for the sub-programme. 6.5 Procurement of Goods, Works and Services National laws and regulations 6.5.1 Benin has a Public Procurement Code which came into effect in 1999 after a series of regulations were adopted. The Code applies to awards of contracts for works exceeding CFA F 30 million and contract awards for services exceeding CFA F10 million. A National Public Contracts Commission (CNMP) has been set up, with technical committees to evaluate bids for contracts financed by the State budget. Article 11 of the Public Procurement Code also provides for the establishment of a Regional Public Procurement Board in each region. The Councils may enter into contracts directly (by mutual agreement) for works, supplies and services for amounts below FCFA F 5 million. The sub-project appraisal mission has studied the different implementing decrees and Orders and the public procurement procedure in Benin is deemed to be still unsatisfactory. Executing agencies responsible for procurements 6.5.2 Procurement for contracts involving international competitive bidding and contracts relating to institutional support, studies and monitoring-evaluation will be the responsibility of the executing agency. Contracts which fall under the component “Development of basic infrastructure” will be awarded by the territorial administrations with the help and technical support of the regional offices of the SDH and SDHAB. These contract activities will be supervised by the local representatives of the CNMP. However, contracts procured through national bidding or consultancy services for CFA F50 000 or higher, approximately UA 64,000, will be done by the territorial administrations, with the technical support of the SDH and ADHAB regional offices, albeit under the supervision of the IU, which will be the approval body. In conformity with the provisions of the Public Procurement Code, such contracts fall within the purview of the National Public Contracts Commission (CNMP). General Procurement Procedures 6.5.3 Generally, bidding will be in conformity with Bank rules for rapid procurement so as to fast-track implementation of the programme and this particular sub-programme. This will involve mainly national competitive bidding, local and international shopping, mutual agreement, and a posteriori review. The use of these procedures will both accelerate the bidding procedure and ensure transparency.

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6.5.4 International bidding and recruitment of consultancy firms to be financed by the Bank will be subject to Bank rules for procurement. National procurement procedures will apply to national bidding. For consultancy services valued at UA 350.000 or below in the case of consultancy firms, and UA 100.000 for individual consultants, the Borrower may limit advertisements for the procurements to at least one national newspaper. Indeed, given the nature and the relatively modest amounts of these services, the selection of individual consultants and consultancy firms will target mainly national and regional consultants. For certain services, and depending on the number of contracts and the availability of qualified consultants on the national market, the procurements may, if necessary, be advertised in the press within the sub-region, notably the ECOWAS counties. 6.5.5 Whenever necessary, and in order to accelerate the bidding procedure for contracts for goods, works and related services, an a-posteriori evaluation may be used for contracts with a total value of UA 100,000 and below. This procedure will however not apply in cases of national competitive bidding, local and international shopping, procurements through specialised agencies or the United Nations procurement agencies. In accordance with Bank guidelines, a posteriori evaluation shall not be used in recruiting consulting firms. When using this procedure, the Bank will ensure that the implementing organs, the IU in particular, the territorial administrations, the SDHs and SDHABs, have the necessary capacity and public procurement experience, and also that the IU, the SDHs and SDHABs are familiar with Bank rules for procurement of goods and services. 6.5.6 Lastly, the direct negotiation (mutual agreement) procedure can be used for the recruitment of individual contractors for short-term missions (up to two months). As the Bank no-objection is not required in this case, the procedure may be adopted and the executing agency can select the qualified consultant. For long-term missions, individual consultants will be recruited in accordance with the normal shopping procedure and, unless otherwise stipulated, the Borrower will not need to obtain the Bank’s opinion until the evaluation of proposals is completed. At that point, the terms of reference, the consultant’s professional and academic references and the terms of employment will be submitted for the Bank’s approval before negotiation of the contracts. These recruitment procedures are in conformity with Bank rules of procedure for the use of consultants. Procurement Procedures under the First Sub-Programme 6.5.7 Contracts for goods, works and services financed by the Bank will be awarded as described in the general bidding procedures for contracts under the programme. To that end, the IU and territorial administrations, assisted by the SDHs and SDHABs, will use the standard Bank bidding documents for goods, works and services contracts financed by our institution. The manual of procedures described in paragraph 5.1.3 will set out the detailed bidding procedures. It will describe the different procurement methods used for this sub-programme. The manual will also specify procurement methods and the procedure for the review and approval of contracts by the different national and regional authorities. 6.5.8 Bidding for contracts pertaining to institutional support, IEC, studies and monitoring-evaluation shall be done by the SDHs and SDHABs, which shall also prepare the technical specifications. Procurements under the « Development of basic infrastructure » component will be done by the territorial administrations, with technical assistance from the water and sanitation services in the Regions.

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6.5.9 Given that these are routine works that do not call for a very high level of expertise, the components will be sub-divided in a way that will allow them to be awarded through national competitive bidding, since there are enough national and regional entrepreneurs to foster competition for both the borehole drilling and the construction of new self-contained waterworks. However, to guarantee enough competition, the invitation to bid will be widely advertised in the neighbouring countries, particularly in the ECOWAS zone. Local enterprises and foreign consultancy firms will also be greatly encouraged to form partnerships and alliances. Provisions relating to the procurement of goods, works and consultancy services are summed up in the table below.

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Table 6.1 Procurement Arrangements for Goods, Works and Services (in UA million)

Category ICB NCB Shortlists Other Total

A . GOODS 1. Vehicles 2. Computers 3. Laboratory equipment B. WORKS

DWS

1. Boreholes 2. VWS Atlantique 3. VWS Atlantique 4. VWS Zou 5. Extension Grid SONEB (Zou)

SANITATION

1. Latrines in Atlantique 2. Latrines in Zou C. SERVICES IEC 1. Atlantique 2. Zou STUDIES, WORKS SUPERVISION AND MONITORING a) Studies 1. Modeling 2. SIG EAU 3. IWRM 4. Project studies b) Works superv. and monitoring 1. Drilling of boreholes 2. Works VWS Atlantique 3. Works VWS Atlantique 4. Works VWS Zou 5. Extension SONEB network D. OPERATING COSTS 1. SDH Atlantique

2. SDH Zou 3. DHAB SDHAB Zou and Atlantique 4. Private sector 5. Ministry of Family Affairs 6. Sub-programme Management 6.1 Management staff IU 6.2 Local staff IU 6.3 Operation IU 6.4 Audit

TOTAL

0.14[0.12] 0.70[0.60] 3.86[3.28] 2.26[1.92] 1.09[0.93] 8.05[6.85]

0.18[0.15] 0.32[0.28] 0.09[0.09] 0.31[0.31] 0.02[0.02] 0.07[0.06] 0.39[0.33] 0.23[0.20] 0.11[0.09] 0,29[0,29] 0,07[0,07] 2.09[1.90]

0.08[0.08] 0.10[0.10] 0.07[0.07] 0.23[0.19] 0.23[0.19] 0.07[0.07] 0.14[0.14] 0.27[0.12] 0.32[0.15] 0.60[0.48] 0.30[0.30] 0.04[0.04] 0.01[0.01] 0.06[004] 2.53[1.99]

0.08[0.08] 0.10[0.10] 0.07[0.07] 0.14[0.12] 0.70[0.60] 3.86[3.28] 2.26[1.92] 1.09[0.93] 0.23[0.19] 0.23[0.19] 0.18[0.15] 0.32[0.28] 0.07[0,07] 0.14[0.14] 0.09[0.09] 0.31[0.31] 0.02[0.02] 0.07[0.06] 0.39[0.33] 0.23[0.20] 0.11[0.09] 0.27[0.12] 0.32[0.15] 0.60[0.48] 0.30[0.30] 0.04[0.04] 0.29[0.29] 0.01[0.01] 0.06[0.04] 0.07[0.07] 12.67[10.74]

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Civil works 6.5.10 Works in relation to the planned construction of nine new boreholes will be grouped into a single package amounting to UA 140 000 and procurement will be based on national competitive bidding. For construction works in relation to institutional latrines, amounting to UA 23 000 respectively in each region, the community-based contracting procedure will be used. These contracts will therefore be sub-divided into smaller packages to be implemented by artisan masons in each Region. Procurements for WS, independent waterworks and the extension of the SONEB network will be effected by the individual councils, assisted by the SDHs in Zou or Atlantique Region. The national competitive bidding procedure will be used since the maximum amount per package does not exceed UA 300 000. These works are in respect of 36 PEA, amounting to UA700 000, and 25 VWS valued at UA 3.86 million in Atlantique Region, and 19 VWS amounting to UA2.26 million, and 14 extensions to the SONEB network at a cost of UA1.09 million in Zou region. Goods 6.5.11 Contracts for the supply of 3 vehicles at a cost of UA80 000, computer equipment amounting to UA100 000, and water analysis laboratories amounting to UA 70,000, as well as contracts for procurement of equipment and other materials and supplies necessary for the operation of the IU, the DHAB, the SDHABs and the SDHs in Zou and Atlantique regions will be awarded through local shopping, because they are contracts for an individual amounts of small value. There are enough local suppliers or representatives of foreign suppliers in Benin to foster competition. Consultancy services and training 6.5.12 For greater efficiency, given the large number of consultancy firms that will be working concurrently, it will be necessary to split the functions of control and supervision of civil works between the two regions. These services, amounting in total to UA 0.8m will therefore be divided into five (5) packages. Supervision and monitoring of borehole drilling, at a cost of UA 20 000, will be entrusted to an individual consultant, who will be recruited in accordance with Bank rules of procedure. Consulting firms will be recruited in conformity with Bank rules of procedure, for contracts for the supervision and monitoring of PEA in Atlantique region, valued at UA 70 000, VWS works in Atlantique region valued at UA 390 000, VWS works in Zou region amounting to UA 230 000, and extension of the SONEB network at the cost of UA 110 000. The selection procedure for all these contracts will be based on the combined evaluation of technical proposals and the bid amounts. 6.5.13 The shortlisting procedure will be used for the recruitment of consultants/NGOs for IEC activities in Atlantique region (UA180 000), IEC activities in Zou region (UA320 000) and the project studies (UA 310 000). As these services target mainly national and regional consultants, advertisement of procurement notices may be limited to the national and sub-regional press. The study on IWRM (UA 90 000) will be subject to local shopping on the basis of a shortlist. The selection procedure for all these consultancy services will be based on the combined evaluation of all technical proposals and bids.

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6.5.14 Contracts in relation to the hydrogeological modelling studies, valued at UA 70 000, and for the modernisation and extension of the SIG-EAU system, at a cost of UA90 000, will be awarded through direct negotiation to experts already recruited by the DGH. These experts were recruited through a competitive process, with bilateral donor funds, to carry out the modelling of water tables in the southern part of Atlantique region, and to establish the SIG-Eau database throughout the country. 6.5.15 Procurement of an audit firm, for a contract amount of UA 70.000, will also be on the basis of a shortlist. Given the small amounts involved, the procurements may be advertised in the national press with a view to the preparation of a shortlist. The selection procedure will be based on evaluation of comparable technical proposals and selection of the lowest bidder. Operating Costs 6.5.16 In addition to the office supplies and equipment for which procurement procedures are as detailed in paragraph 5.5.11 above, the operation of the programme will comprise supplies for water and electricity distribution, telephone services and vehicle operation and servicing. Review Procedures 6.5.17 Where national bidding procedures are used, the following documents will be submitted for review and approval of the EA before promulgation. : (i) specific invitation to bid, (ii) bidding documents or letter of Invitation to Consultants, (iii) evaluation reports of the suppliers bids or consultants’ proposals comprising recommendations on contract awards. For the recruitment of consultancy firms, the prior opinion of the EA on the technical analysis report will be required. The draft contracts, where those included in the bidding documents have been amended, shall be subject to a non-objection clause by the IU. In addition, the unit will ensure that the different regional and local bid evaluation committees have been established and are functioning properly. 6.5.18 Prior to the definitive contract award and signing, the IU will obtain the Bank no-objection concerning the bid evaluation reports and the draft contracts in respect of national competitive bidding for amounts higher than UA100 000, and for the recruitment of consultancy firms. The a-posteriori review procedure will be used for contracts valued at UA 100 000 or below. For all the above procedures for procurement of consultancy services which will not be subject to a posteriori review, the Borrower will be authorised to conduct technical and financial evaluations without seeking the Bank’s no-objection concerning the evaluation of technical proposals. The Bank will ensure that the Coordinator to be recruited has the right qualification and experience and is familiar with the procurement rules of procedure of the Bank or other multilateral development banks. For the recruitment of individual consultants, the Borrower will be authorised to conduct the process up to the evaluation of bids without seeking the Bank’s no-objection. The consultant’s technical references and the terms of employment must be submitted for approval by the Bank before negotiations.

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6.6 Disbursements

Bank disbursements will be in conformity with the normal procedures of direct payments, reimbursement and advances from special accounts. The executing agency will open a special account at the BCEAO to receive the resources of the loan. For ease of operation, two other secondary accounts will be opened in commercial banks acceptable to the ADF one each for the water and sanitation aspects of the programme. The accounts will be provisioned from the special account opened at the CAA. Evidence of the opening of the three accounts will be a loan condition.

6.7 Monitoring and Evaluation 6.7.1 The DGH and the DHAB will each prepare quarterly progress reports on the implementation of all aspects of their own activities under the programme. All the reports must conform to the Bank format. These reports shall be sent to the implementation unit, which will collate them and forward them to the ADF every quarter. The reports will focus particularly on the level of programme implementation, expenditures, commitments and disbursements by component and by source of finance. They will also highlight any difficulties that might constitute potential bottlenecks. These difficulties will be discussed extensively during the supervision missions by lenders and the Government of Benin, and efforts will be made to find appropriate solutions. 6.7.2 Programme monitoring will be ensured through the activity reports of the IU and the supervision missions by donors. The supervision reports will cover the structure’s every activity (budget, programming, implementation, bidding, disbursements, relations with the consultancy firms and the beneficiaries, challenges and recommendations). 6.7.3 All the projected programme outcomes will be consistently monitored throughout project implementation on the basis of the performance indicators. Monitoring-evaluation will involve a close analysis of the programme envisaged to help assure the decision makers of speedy and regular feedback on the status of the programme to enable them take appropriate corrective measures. 6.7.4 A mid-term review will be carried out in the course of project implementation. It will be based on the results of socio-economic surveys and the monitoring of the indicators. From the diagnostic study that will be done, the review will underline the problems and proffer the corrective measures that must be taken to assure attainment of the programme objectives. The mid-term review will examine: (i) the continued relevance of the programme (approach, objectives, implementation modalities, etc.) viewed against the prevailing conditions; (ii) the outcome measured against the indicators of the current level of activities or, where these are not available, the final outcomes; (iii) effectiveness of the approach used to obtain these outcomes; (iv) effectiveness of the management – particularly the use of inputs, in terms of the quality, quantity, swiftness and the control system ; (v) transfer of competencies to the nationals ; (vi) the views of the direct beneficiaries on the preliminary outcomes and the consultative process set up for the programme. The mid-term review will highlight problems and obstacles to the attainment of objectives and will propose immediate remedial measures. The programme will pay for the recruitment of specialist firms to undertake monitoring-evaluation.

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6.7.5 The Bank will undertake half-yearly supervision missions. These should be and the missions should last a minimum of 15 days so that they can examine every aspect and carry out field trips. Because of the programme’s complexity, the Bank will maintain constant dialogue with the relevant institutions in Benin to ensure implementation of all the programme components, including amendments that will be required during implementation. 6.8 Financial and Audit Reports

6.8.1 Accounting under the programme will be centralised by the implementation unit which will carry out the usual administrative controls. The SYSCOA accounting system/plan in place in Benin will be used. Separate accounts for each sub-programme will give a clearer indication of expenditure by component, category, and source of finance and by currency.

6.8.2 An accountancy firm will be commissioned to perform the annual financial audit of the programme. The financial and audit reports will be submitted to the donors within three (3) months of the close of the accounting year. 6.9 Partnership and Aid Coordination

6.9.1 The CAA in the Ministry of Finance and Economy will be responsible for aid coordination. During the preparation and appraisal missions, meetings were held with the principal donors, notably the Danish, German, Belgian, Dutch, French, Japanese cooperation agencies and the World Bank. Thus, there is already close cooperation between donors operating in the water and sanitation sector, and this will be maintained and strengthened to ensure continued financing of the programme. 6.9.2 Increasing the consultation framework between the Government and donors will also make it is easier to synergise the different actions in the sector. The PADEAR already offers a foundation on which to base the Initiative in Benin. The appraisal mission on the budget-programme of the DGH undertaken as part of PADEAR in May 2004, highlighted, inter alia, the: (i) strategies that will need to be adjusted or applied to attain the millennium objective goals for water and sanitation, due account being taken of constraints in the sector; (ii) sectoral aspects that need to be updated or reforms to enable attainment of these objectives; (iii) conditions that will ensure successful passage from a dispersed approach to a coherent, global approach per programme for the development of the sector in Benin and, particularly, how this should be implemented ; and (iv) the tools required to monitor whether the outcomes match the objectives. Resource mobilisation 6.9.3 After the Bank Initiative in July 2004, the next fund mobilisation meeting to leverage financing for the Initiative will be an opportunity to heighten donor awareness of the programme. The major donors in the sector will thus have been involved in the programme preparation.

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6.10 Programme Sustainability and Risks Cost recovery 6.10.1 The rural communities are expected to make an initial contribution towards the investment costs, in accordance with the national rural DWSS strategy. Maintenance and operation costs will be clearly detailed during the planning phase, and this will be one of the elements that will inform the decision of water users. They are expected to formulate and adopt adequate cost recovery measures in their demands for projects.

Sustainability 6.10.2 The sustainability of rural DWSS services in Benin depends on effective implementation of decentralisation. Effectively transferring human and financial resources to the territorial administrations and enhancing their role in planning and designing the engineering structures will ensure that investment decisions taken will match the demands of the population. The Orders transferring the authority of the State to the territorial administrations have been passed since June 2002, especially in respect of rural and urban water systems. The programme also makes provision for greater support to the territorial administrations to enable them play their role fully. 6.10.3 The second factor of sustainability concerns the readiness and the capacity of rural populations to manage and maintain the facilities provided. Beneficiary ownership of the facilities will be greater when they are directly involved in formulating the demand and take part in preparing the proposal and when they contribute in cash and kind to cover part of the investment. The measures envisaged under the programme are i) to ensure representation of women in the management committees; ii) provide training to guarantee sustainability of the positive outcomes of the programme. 6.10.4 The extent to which spare parts can be obtained on the local market is another crucial determinant factor of programme sustainability. The number of brands used for the programme will be limited in order to create a large market that will make it a worthwhile investment for their local representatives to continue to stock spare parts. The most popular brands already have a spare parts sales network in most areas of the country. Risks 6.10.5 One major programme risk has to do with the institutional capacity of the national Directorates (DGH et DAHB) and the local governments. The transfer of skills is effectively a fait accompli in the water sector. All the Directorates within the various regions have the minimum human, technical and financial resources and already play an advisory role in the communities. In addition, the programme envisages an enhancement of the human, technical and financial capabilities of these structures. For all the other stakeholders, (building contractors, consultancy firms, NGOs, women’s associations, artisans and masons….), funding for training activities to enable them to carry out their assigned tasks has been built into the programme. 6.10.6 Another risk is the possibility that the beneficiary population will not adhere to the programme and this would be serious inasmuch as they are expected to finance the family latrines. However, this is unlikely to be the case because of the participatory approach that

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underlined the programme implementation, and because the communities have expressed their desire to be involved. The IEC activities planned will encourage the communities to build facilities that meet the recommended standards, within the limits of their financial capabilities, and to maintain them, in their capacities as the owners of the self-contained systems. 6.10.7 Slippage in the provision of the financial contributions of the communities and users is another project risk. The enlightenment campaigns for the community leaders envisaged at the beginning of the programme will help to ensure a better inflow of contributions. Similarly, slippages in the provision of financing by the development partners may compromise attainment of the programme objectives. The Bank and the Government will undertake mobilisation activities in an effort to minimise this risk. 7. IMPACT ASSESSMENT 7.1 By increasing beneficiary participation in, and access to, the decision making process and by improving the organisational capacity of the communities and water users, the programme will play a major role in training and in the development of the social capital. It will promote decentralisation by boosting the work of the management committees and the decentralised organs, especially the Regional offices, and the participatory approach which will be used will provide training for those who play a role in decentralisation. The programme will thus impact on self-development of rural communities by assigning them more responsibilities and will help to develop human resources. The programme will ensure that the communities have the necessary technical assistance and will run training courses at every phase designed to enable the stakeholders assume their new functions. 7.2 Water and sanitation access by the population is one of the indicators of poverty reduction. It means that several hours usually spent on water collection can be saved and this welcome effect is of greater importance to the women and children. Women can devote the time thus saved to other tasks while the children, young girls especially, have more time for their school work. It is a well-known fact that a high proportion of young girls drop out of school in order to help out with families with domestic chores, including water collection. Households also sometimes use water from lakes, rivers and streams. Clearly therefore, drinking water access eliminates these inequalities, improves school enrolment, and promotes gender equity. 7.3 Between 2005 and 2007, about 150 000 in the rural areas will have access to drinking water and sanitation services through the sub-programme. Women can use the time saved for income-generating activities that can help raise their standard of living and improve the health and well-being of their families. 200 masons and craftsmen and 200 health officials will also be trained during the period. 7.4 The most common water-borne diseases caused by poor quality water in Benin are diarrhoea, bilharzias, cholera, typhus, and eye infections. Those due to poor sanitation are mainly malaria and parasitic diseases. These diseases are on the increase, firstly because the proportion of the population that uses unsafe water is still high and, secondly, because even the water distributed is sometimes of dubious quality. Ensuring water supply of adequate good quality water by improving coverage and rehabilitating the VWS networks will help to significantly reduce the incidence of water-borne diseases. This will translate into better health for the population in general and, in particular, reduced infant morbidity and mortality and higher life expectancy at birth.

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7.5 Bringing water close to homes will take the chore out of water collection, and men too will be able to take part in that activity. The programme will be relatively more beneficial to women since they constitute one of the most vulnerable groups in the society. Its implementation will create jobs, both in terms of the provision of infrastructure (HIMO activities) and in the management, servicing and maintenance. Female head-of-households and the unemployed in the rural areas will also have a chance to increase their income. 7.6 One other area that deserves mention, along with the other sectors of activity, is the increase in the demand for the supply of hydraulic equipment, a fact which should augur well for businesses in the upstream water sector, at least for the programme period. By the end of the programme the central and a decentralised administration, NGOs and consulting firms will have benefited from an enhancement of their technical capacities and expertise. 8 CONCLUSION AND RECOMMENDATIONS 8.1 Conclusion 8.1.1 The programme is consistent with the Bank operational strategy for Benin, which focuses on poverty reduction. The strategy seeks, in particular, to better satisfy the acute water and sanitation needs of the population in terms of quantity and quality, by involving the local communities and water users, encouraging further private-sector investment in the water sector and strengthening the structures concerned, thus ensuring effective transfer of authority to the provinces. It will contribute to the attainment the millennium development goals by satisfying community demands for drinking water and sanitation. The programme is a significant contribution by donors and aid agencies to Government efforts towards providing sustainable drinking water supply and sanitation to the rural population. 8.1.2 The first sub-programme financed by the ADF is technically feasible, economically viable, socially justified and consistent with the Benin Government’s priorities in the development of the water and sanitation sector. Measures to mitigate the environmental impacts of the sub-programme, classified under category II, have been taken into account, and their implementation will lay the groundwork for the success of the programme. The measures will also enhance the capacity of DWS and sanitation systems in Atlantique and Zou regions. Furthermore, it will offer an appropriate solution that will sustain Government policy in the rural water and sanitation sector, and promote decentralisation.

8.2 Recommendation 8.2.1 The Board is invited to take note of the existence of the rural drinking water supply and sanitation programme in Benin, as part of the efforts to attain the millennium development goals, and which shall be implemented in conformity with the technical, administrative and financial modalities defined in this report. 8.2.2 It is recommended that an ADF loan not exceeding UA10.74 million be granted to the Republic of Benin for the implementation of the fist sub-programme as described in this report. The loan shall be subject to the following conditions.

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A. Conditions precedent to loan effectiveness 8.2.3 The loan agreement effectiveness shall be subject to the Borrower’s compliance with the provisions of section 5.01 of the General Conditions. B. Conditions precedent to first disbursement 8.2.4 Precedent to the first disbursement of the resources of the loan, the Borrower, in addition to the entry into force of the loan Agreement, shall: Conditions precedent to first disbursement

i) Provide evidence of the establishment of the Programme Implementation

Unit (para. 6.1.1 et 6.1.2);

ii) Provide evidence of the recruitment, on a competition basis, of a Coordinator, water and sanitation specialist, a socio-economist, and an accounting and finance officer for the Programme Implementation Unit; their CVs shall be submitted to the ADF for prior approval (parag. 6.1.2);

iii) Provide evidence that the EA has been allocated functional office premises (parag. 6.1.2);

iv) Provide evidence of the opening of a special account with the BCEAO and two secondary accounts with a commercial bank acceptable to the Fund, to receive the resources of the loan for the water component and for the sanitation component (parag.6.6.1);

v) Submit the manual of administrative, financial and accounting procedures of the programme to the Fund for approval (parag 6.1.2);

vi) Provide the Fund with evidence of the establishment of Monitoring Committee whose members shall be the representatives of the Ministries responsible for water resources, sanitation, environment, finance, rural development, internal affairs, public works, women affairs, decentralisation, the private sector, NGOs, water users associations, and women’s associations (parag. 6.2.1).

Other condition

i) Provide the Fund with evidence, not later than 31 December 2005, that all implementing decrees relating to the Water Code have been issued. (parag. 2.2.1 and 2.4.3)

Annex 1

RU A

This map has been prepared by the ADB Group’s The denominations used and the boundaries showlegal status of any territory or any endorsement or

REPUBLIC OF BENIN RAL DWSS PROGRAMMEdministrative Map of Benin

staff exclusively for the convenience of the readers of the report to which it is attached. n on this map do not imply on the part of the Group and its affiliates, any judgement on the acceptance of such boundaries.

Annex 2

REPUBLIC OF BENIN

RURAL DWSS PROGRAMME

Cost by Component

In CFA F billion

In UA million

L. C. F.E Total L. C. F.E. Total

Main Components

A. Development of basic infrastructure A.1 Construction of water points 41.15 50.29 91.44 52.30 63.92 116.22 A.2 Construction of institutional latrines 0.18 0.22 0.40 0.23 0.28 0.51 Sub-total component A 41.33 50.51 91.84 52.53 64.20 116.73 B. Studies, works supervision and monitoring B.1 Studies 0.19 0.23 0.42 0.24 0.29 0.53 B.2 Works supervision and monitoring 3.29 4.02 7.31 4.18 5.11 9.29 Sub-total component B 3.48 4.25 7.73 4.42 5.40 9.82 C. Information, Education and Communication C.1 General awareness campaign 0.04 0.04 0.08 0.05 0.05 0.10 C.2 Hygiene and sanitation promotion activities 0.04 0.05 0.09 0.05 0.06 0.11 C.3 AIDS prevention activities 0.01 0.01 0.02 0.01 0.02 0.03 Sub-total component C 0.09 0.10 0.19 0.11 0.13 0.24 D. Institutional framework D.1 Strengthening of sector capacity 0.13 0.17 0.30 0.17 0,21 0.38 D.2 Private sector development 0.20 0.25 0.45 0.26 0.31 0.57 D.3 Professionalisation of DWS management systems 0.06 0.08 0.14 0.08 0,10 0.18 D.4 Organisation of consultation 0.03 0.04 0.07 0.04 0.05 0.09 D.5 Gender mainstreaming 0.08 0.09 0.17 0.10 0.12 0.22 Sub-total component D 0.50 0.63 1.13 0.65 0.79 1.44 E. Programme Management 2.35 2.87 5.22 2.98 3.65 6.63 Base cost 47.75 58.36 106.11 60.69 74.17 134.86 Physical contingencies 4.77 5.84 10.61 6.07 7.42 13.49 Price escalation 17.19 21.01 38.20 21.85 26.70 48.55 GRAND TOTAL 69.71 85.21 154.92 88.61 108.29 196.90

Annex 3 REPUBLIC OF BENIN

RURAL DWSS PROGRAMME Detailed Costs of Sub-programmes

In billion CFA

In million UA Components

LC F.E. Total LC F.E. Total A. Basic Infrastructure A.1 Drinking water supply (DWS) A.1.1 Atlantique

• VWS 1.42 1.12 2.54 1.80 1.42 3.22 • PEA 0.25 0.20 0.45 0.32 0.25 0.57

A.1.2 Zou • VWS 0.81 0.64 1.45 1.03 0.81 1.84 • Extension SONEB 0.39 0.31 0.70 0.50 0.40 0.90

Sub-total DWS 2.87 2.27 5.14 3.65 2.88 6.53 A.2 Sanitation A.2.1 Atlantique 0.09 0.06 0.15 0.11 0.08 0.19 A.2.2 Zou 0.09 0.06 0.15 0.11 0.08 0.19

Sub-total Sanitation 0.18 0.12 0.30 0.22 0.16 0.38

Total Basic Infrastructure 3.05 2.39 5.44 3.87 3.04 6.91

B. Studies, works supervision and monitoring

B1 Studies B.1.1 Modelling 0.03 0.02 0.05 0.04 0.03 0.07 B.1.2 « SIG-EAU » 0.05 0.04 0.09 0.06 0.05 0.11 B.1.3 « GIRE » 0.03 0.03 0.06 0.04 0.04 0.08 B.1.4 Project studies 0.12 0.08 0.20 0.15 0.10 0.25 Sub-total « Studies » 0.23 0.17 0.40 0.29 0.22 0.51 B.2 Supervision and monitoring of DWS works B.2.1 Atlantique 0.10 0.08 0.18 0.13 0.10 0.23 B.2.2 Zou 0.20 0.15 0.35 0.25 0.19 0.44

Sub-total works supervision and monitoring 0.30 0.23 0.53 0.38 0.29 0.67

Total Studies, works supervision and monitoring 0.53 0.40 0.93 0.68 0.50 1.18

C. Information, Education and Communication

C.1 Atlantique 0.07 0.05 0.12 0.09 0.06 0.15

C.2 Zou 0.11 0.09 0.20 0.14 0.12 0.26 Total Information, Education and Communication 0.18 0.14 0.32 0.23 0.18 0.41

D. Institutional support

D.1 Water laboratory at the DGH 0.03 0.03 0.06 0.04 0.04 0.08

D.2 Support to SDH Atlantique 0.10 0.07 0.17 0.13 0.09 0.22

D.3 Support to SDH Zou 0.12 0.09 0.21 0.15 0.12 0.27

D.4 Support to DHAB and SDHAB Zou and Atlantique 0.23 0.17 0.40 0.29 0.21 0.50

D.5 Private sector 0.12 0.08 0.20 0.15 0.10 0.25

D.6 Ministry of Family Affairs 0.02 0.01 0.03 0.02 0.02 0.04

Total Institutional support 0.62 0.45 1.07 0.78 0.58 1.36

E. Sub-programme management

E.1 Executing agency 0.14 0.11 0.25 0.18 0.14 0.32

E.2 Audit 0.05 0.04 0.09 0.06 0.05 0.11

Total Sub-programme management 0.19 0.15 0.34 0.24 0.19 0.43

Total base cost 4.57 3.53 8.10 5.92 4.37 10.29

Physical contingencies 0.46 0.35 0.81 0.59 0.44 1.03 Price escalation 0.61 0.45 1.06 0.78 0.57 1.35 GRAND TOTAL 5.64 4.33 9.97 7.29 5.38 12.67

Annex 4

BENIN: DRINKING WATER SUPPLY AND SANITATION PROGRAMME

ORGANISATION CHART FOR PROGRAMME IMPLEMENTATION

Monitoring committee

Accts. and Finance Expert Socio-Economist

Programme Coordinator

Regional Director MEH/DDMEH

Minister of Mines Power and Water R)

esources (MMEH

Consulting firmsNGO

Enterprises & Labourers

Enterprises

SecretariatSect

Local Authorities

SDHSDH

Mgt. & ImplCompon.

Sanit.

Mgt. &Saniimple. t

SDHAB SDHAB

DGHDGHDHAB DHAB

LocalGovernment

Annex 5

REPUBLIC OF BENIN RURAL DWSS PROGRAMME

IMPLEMENTATION SCHEDULE OF SUB-PROGRAMME

Task NameLOAN APPROVALBoard PresentationSignature of Loan AgreementLoan EffectivenessIMPLEMENTATION UNITInvitation to BidDeadline for BidsContract AwardDuration of Service

CONSULTING FIRMSInvitation to BidDeadline for BidsContract AwardInformation, Education, CommunicationStudiesSupervision AtlantiqueSupervision ZouAudit 1Audit 2Audit 3ENTERPRISESInvitation to BidDeadline for BidsContract AwardWorks AtlantiqueWorks ZouProject Completion

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O2005 2006 2007 2008

REPUBLIC OF BENIN

RURAL DWSS PROGRAMME BANK GROUP OPERATIONS AS AT 30 APRIL 2004 (in UA

SECT0R/PROJECT/STUDY Source of finance

Approval date

Signature date

Deadline for last disbursement

Effectiveness date

Amount approved

Amodisb

AGRICULTURE 1 IRRIGATION OUEME VALLEY ADB 19/10/72 24/04/73 31/12/73 20/11/73 310 000 2 SADEVO II ADF 19/09/75 25/11/75 31/12/82 01/06/76 3 223 682 3 DEVELOPMENT ANIMAL PRODUCTION PHASE 2 ADF 26/10/87 04/12/87 31/12/96 31/10/89 12 894 728 4 DEVELPT.ANIMAL PRODUCTION ADF 29/06/78 29/07/78 31/12/85 04/07/79 4 144 734 5 INTEGRATED RURAL DEVELOPMENT IN OUEME ADF 17/06/85 16/08/85 31/12/98 09/09/86 8 123 679

6 PLANTATIONS FUELWOOD SOUTH BENIN ADF 27/08/82 12/05/83 31/12/98 04/06/84 11 052 624

7 INT. RURAL DEVELOP.MONO ADF 28/04/88 28/12/89 30/06/99 20/12/91 11 973 676 8 PROJ. BOIS DE FEU - PHASE II (PBF II) ADF 31/10/01 21/12/01 30/06/08 31/12/02 10 000 000

9 FOREST DEVELOPMENT PROJECT ADF 20/01/00 24/03/00 31/12/05 18/04/01 10 540 000 10 LIVESTOCK PROJECT III PROJET ELEVAGE III ADF 15/12/97 05/02/98 30/12/04 26/11/99 8 000 000 11 SUPPORT TO TRADITIONAL FISHING PROGRAMME ADF 27/11/02 23/12/02 31/12/09 10/01/04 7 310 000 12 RURAL DVLPT IN MONO REGION (PHASE II) ADF 07/10/99 13/01/00 31/12/06 01/01/02 11 680 000 13 APPUI AU DEVEL. RUR. DU MONO ET DU COUFFO (PADMOC) ADF 18/04/01 30/05/01 31/12/09 29/12/98 9 130 000 14 STUDY ON DVLPT. WATERWAYS IN SOUTH BENIN ADF 16/07/97 24/10/97 30/06/01 16/04/99 1 085 000

Sub-total 109 468 123

TRANSPORT 15 Redevelopment Project Djougou-Ndali road ADF 22/07/03 12/01/04 31/12/07 11 110 000 16 Redevelopment Project Djougou-Ndali road FSN 22/07/03 12/01/04 12/01/07 4 000 000 17 BRIDGE AND DAM S-COTONOU LAGOON ADB 17/01/75 06/06/75 30/09/79 08/07/76 4 000 000 18 DEVELOPMENT SAVE-PARAKOU ROAD ADF 20/11/85 6 550 000 19 CONSTRUCTION PARAKOU-SAVE ROAD ADF 20/11/85 17/12/85 30/12/96 28/07/86 7 368 416 20 CONSTRUCTION OF DOGBO-AZOVE-ABOMEY ROAD (UPEETR) ADF 03/12/81 8 000 000

21 COTONOU ACCESS AND CROSSING ADF 21/04/92 08/10/92 31/12/99 22/11/94 11 973 676

22 REHABILIT. OF PORTO-NOVO-POBE ROAD ADF 26/10/87 26/02/88 31/12/96 05/06/90 7 230 258 23 CONSTRUCTION DOGBO-AZOVE ROAD ADF 23/11/77 21/12/77 30/06/82 06/08/79 7 368 416

24 CONTRUCTION POBE-KETOU ROAD ADF 27/11/80 11/12/80 31/12/84 22/04/82 7 368 416

25 STUDY ON ABOMEY-BOHICON-KETOU-ILLARA ROAD ADF 19/11/84 30/11/84 30/06/94 03/04/86 874 999

26 "STUDY, ACCESS, CROSSING OF COTONOU" ADF 19/08/87 07/10/87 30/06/94 25/07/89 709 210 27 STUDIES DOGBO-AZOVE ROAD ADF 22/03/74 13/11/74 31/12/75 12/10/76 147 368

28 REHABIL.PARAKOU-NIKKI-SEGBANA ROAD ADF 28/08/91 12/05/92 30/06/97 25/10/93 1 381 578

29 CONSTRUCTION COTONOU PORT ADF 17/10/78 31/10/78 31/12/83 02/01/80 2 420 000

30 PROJET D'URGENCE DE REAMENA.RTE COTONOU-PORTO NOVO ADF 11/09/96 23/09/96 30/09/04 03/03/99 10 000 000

31 STUDY POBE-KETOU-ILLARA ROAD ADF 07/10/99 13/01/00 15/12/04 21/04/00 590 000

32 COTONOU-PORTO-NOVO ROAD EMERGENCY REDEVLOPMT PROJECT ADF 04/09/96 23/09/96 30/09/04 29/03/99 6 000 000

Sub-total 97 092 337

COLLECTIVE FACILITIES 33 SANITATTION COTONOU - PORTO N. (DON) ADF 30/10/91 12/05/92 30/06/98 03/12/93 1 289 473 34 SECOND RURAL ELECTRIFICATION PROJECT ADF 29/10/03 12/01/04 31/12/08 12 320 000 35 ELECTRICITY (INITIAL LOAN) ADB 05/04/74 16/08/74 30/04/78 11/12/75 1 600 000 36 ELECTRICITY (SUPPLEMENTARY LOAN) ADB 20/12/76 10/03/77 31/12/77 31/01/78 1 900 000 37 ELECTRIFICATION CEMENT FACTORY ADB 17/10/78 31/10/78 31/12/82 31/12/79 5 000 000 38 WATER&ELECTRICITY SUPPLY TO 9 DISTRICTS ADB 18/03/82 06/01/83 30/06/94 19/09/83 8 289 468 39 STUDY ON RURAL ELECTRIFICATION PROGRAMME ADB 12/11/97 13/01/98 30/06/02 22/10/99 700 000 40 RURAL ELECTRIFICATION PROGRAMME ADF 28/06/00 26/07/00 31/12/04 29/12/98 4 800 000 41 TELECOMMUNICATION DEVELOPMENT PROJECT ADF 18/04/90 30/11/90 30/06/98 13/10/92 6 926 311 42 MAINTENANCE TELECOMMUNICATION NETWORK ADF 26/10/87 26/02/88 31/03/99 22/01/90 10 721 045 43 STUDY RURAL TELECOMMUNICATION ADF 09/05/93 05/08/93 31/12/97 19/12/94 690 789 44 TELECOMMUNICATION DEVELOPMENT FSN 18/04/90 30/05/90 30/06/98 24/02/93 7 000 000

Sub-total 61 237 086

Annex 6 Page 1/2

)

unt ursed Net amount

Disbursement rate Status

310 000 310 000 100.00 COMP

3 080 370 3 080 370 10.,00 COMP

12 893 845 12 893 845 100.00 COMP

4 144 734 4 144 734 100.00 COMP

8 055 750 8 055 750 100.00 COMP

10 961 626 10 961 626 100.00 COMP

11 267 676 11 267 676 100.00 COMP

0 10 000 000 0.00 OnGo

1 947 109 10 540 000 18.47 OnGo

6 247 784 8 000 000 78.10 OnGo

195 501 7 310 000 2.67 OnGo

1 284 007 11 680 000 10.99 OnGo

389 912 9 130 000 4.27 OnGo

1 072 309 1 072 309 100.00 COMP

61 850 623 108 446 310 0.57

0 11 110 000 0.00 APVD

0 4 000 000 0.00 APVD

3 852 452 3 852 452 100.00 COMP

0 0 0.00 COMP

7 332 137 7 332 137 100.00 COMP

0 0 0.00 COMP

11 710 342 11 710 342 100.00 COMP

7 110 069 7 110 069 100.00 COMP

7 150 725 7 150 725 100.00 COMP

7 376 502 7 376 502 100.00 COMP

1 046 201 1 046 201 100.00 COMP

710 307 710 307 100.00 COMP

147 368 147 368 100.00 COMP

872 110 872 110 100.00 COMP

2 409 499 2 409 499 100.00 COMP

7 664 920 10 000 000 76.65 OnGo

252 723 590 000 42.83 OnGo

4 323 895 6 000 000 72.06 OnGo

61 959 250 81 417 711 0.76

1 169 785 1 169 785 100.00 COMP

0 12 320 000 0.00 APVD

1 600 000 1 600 000 100.00 COMP

1 900 000 1 900 000 100.00 COMP

4 999 999 4 999 999 100.00 COMP

8 289 468 8 289 468 100.00 COMP

666 638 700 000 95.23 COMP

818 035 4 800 000 17.04 OnGo

6 426 187 6 426 187 100.00 COMP

10 636 396 10 636 396 100.00 COMP

482 406 482 406 100.00 COMP

6 716 557 6 716 557 100.00 COMP

43 705 471 60 040 798 0.73

REPUBLIC OF BENIN RURAL DWSS PROGRAMME

BANK GROUP OPERATIONS AT 30 APRIL 2004 (in UA)

SECTOR/PROJECT/STUDY Source of finance

Approval date

Signature date

Deadline for last disbursement

Effectiveness date

Amount approved

Amount disbursed Amount net

Disbursement rate Status

SOCIAL

45 DEVELOP. TECH. TRAINING - PROFESSIONAL ADF

29/08/90 30/11/90 31/03/99 30/10/92 9 477 625 9 326 036 9 326 036 100.00 COMP

46 POLYTECHNIC ADF

26/04/79 17/05/79 30/06/91 19/05/83 7 368 416 7 368 416 7 368 416 100.00 COMP

47 DEVELOPMENT MEDICO-SANITA SERVICES ADF

27/06/77 29/07/77 31/12/81 22/04/83 4 605 260 4 605 260 4 605 260 100.00 COMP

48 INSTITUTIONAL DEVELOPMENT HEALTH SECTOR ADF

24/10/85 17/12/85 30/06/94 14/09/87 676 052 603 212 748 891 80.55 COMP

49 STUDIES HEALTH SECTOR ADF

24/10/85 17/12/85 30/06/94 29/10/87 419 079 345 685 345 685 100.00 COMP

50 DEVELOP. TECH EDUCATION - PROFESSIONAL (GRANT) ADF

29/08/90 20/10/90 31/03/99 25/11/92 2 785 261 2 721 800 2 721 800 100.00 COMP

51 EDUCATION IV ADF

04/12/02 23/12/02 31/12/08 12/02/04 12 000 000 0 12 000 000 0.00 OnGo

52 PROMOTION ECONOMIC ACTIVITIES WOMEN OUEME ADF

12/12/96 07/02/97 31/12/03 07/12/98 2 000 000 487 848 2 000 000 24.39 OnGo

53 EDUCATION III PROJECT ADF

15/12/97 05/02/98 31/12/03 03/02/00 8 000 000 4 904 292 8 000 000 61.30 OnGo

54 HUMAN RESOURCE DEVELOPMENT PROGRAMME ADF

15/03/00 11/07/00 31/12/05 06/12/01 10 000 000 884 450 10 000 000 8.84 OnGo

55 HUMAN RESOURCE DEVELOPMENT PROGRAMME ADF

15/03/00 11/07/00 31/12/05 06/12/01 2 000 000 404 416 2 000 000 20.22 OnGo

56 CONST. REGIONAL INSTITUTE. OF PUBLIC. HEALTH COTONOU ADF

02/05/91 09/05/91 30/03/03 20/05/94 9 210 520 8 647 912 9 210 520 93.89 OnGo 57 HEALTH PROJECT II ADF 31/08/93 20/01/94 30/06/03 13/06/95 7 370 000 5 743 979 7 370 000 77.94 OnGo

Sub total 75 912 213 46 043 305 75 696 608 0.61

BANK AND INDUSTRY 58 LINE OF CREDIT I (BBD) ADB 16/07/76 10/03/77 31/12/79 30/11/77 1 000 000 1 000 000 1 000 000 100.00 COMP 59 LINE OF CREDIT II ADB 30/03/81 11/05/81 31/12/84 05/05/83 2 500 000 2 110 946 2 110 946 100.00 COMP 60 FLUDOR BENIN S.A. ADB 08/12/97 13/03/98 31/12/99 04/05/99 1 407 385 2 083 000 2 083 000 100.00 COMP

Sub total 4 907 385 5 193 946 5 193 946 1.00

MULTISECTOR 61 POVERTY REDUCTION STRATEGY SUPPORT PROG ADF 10/12/03 12/01/04 31/12/06 23 290 000 0 23 290 000 0.00 APVD 62 POVERTY REDUCTION STRATEGY SUPPORT PROG ADF 10/12/03 12/01/04 31/12/06 1 000 000 0 1 000 000 0.00 APVD 63 STRUCTURAL ADJUSTMENT PROGRAMME (SAP) ADF 14/03/90 03/04/90 30/06/94 28/08/90 11 052 624 11 052 634 11 052 634 100.00 COMP 64 STRUCTURAL ADJUSTMENT PROGRAMME II ADF 25/11/91 27/12/91 31/12/95 14/04/93 13 815 780 13 815 780 13 815 780 100.00 COMP 65 WATER AND ELECTRICTY SUPPLY SYSTEM STUDIES ADF 22/03/79 17/05/79 31/12/92 05/05/82 691 710 662 125 662 125 100.00 COMP

66 INSTIT. SUPPORT MINISTRY FINANCE PLAN ADF 25/05/92 08/10/92 31/12/03 14/11/95 3 592 103 3 591 926 3 592 103 100.00 COMP

67 BUDGET SUPPORT PROG. FOR POVERTY REDUCT. ADF 09/05/01 30/05/01 30/12/03 15/11/01 14 000 000 13 988 168 14 000 000 99.92 COMP

Sub- total 67 442 217 43 110 633 67 412 642 0.64

TOTAL 416 059 361 261 863 227 398 208 015 0.66

Annex 6 Page 2/2

REPUBLIC OF BENIN RURAL DWSS PROGRAMME

SUMMARY OF ENVIRONMENTAL AND SOCIAL MANAGEMENT P 1. Brief Description of the Programme and Principal Environmental and

Components 1.1 The first phase of the programme will be based in the Atlantique and Zou rwill have the following components: (i) development of basic infrastructure; (works supervision and monitoring; (iii) information, education and communica(iv) institutional support; and (v) programme management. The environmental thrust of the project will be on improving drinking water and sanitation services rural populations, improving their health situation, monitoring and implemeenvironmental measures, promoting awareness of the environment, STD/AIDS, mother water-borne diseases, environmental protection and management, and suppoto improve the living conditions of the population. 1.2 Because of its moderate size, its location in relatively stable areas, the menvironmental and social benefits derivable, and the fact that the environmental effeasily addressed, the project is classified as a Category II project. An appraenvironmental conditions, carried out during the site visits, indicates that its impaclikely to be beneficial, and the few negative effects that may crop up during constuse of the infrastructures will be easily remedied by implementing mitigating memonitoring them.

2. PRINCIPAL ENVIRONMENTAL AND SOCIAL IMPACTS

2.1 The programme will help to improve the supply of drinking water to peopAtlantique and Zou regions and to reduce the incidence of water-borne diseases siparticularly among children. Better drinking water supply, especially in rural areasthe work of women easier. Children will enjoy better health and do better in school

2.2 The programme will have major positive impacts, such as: improved drinsafety, lower water tariffs, fewer cases of water-borne diseases, and improved stquality of life for rural populations. Its greatest social challenge will be to improvesituation of the people in its intervention area after the implementation of the pIndeed, the incidence of malaria, cholera, gastro-intestinal complications, eyeinfections and other water-related diseases will diminish significantly with betteand water quality. Children, who are very often in charge of fetching water will time to devote to their school activities. The programme will promote pridevelopment by encouraging the use of craftsmen in the construction and mainwater and health infrastructure. 2.3 The most serious negative impacts which might occur will be: the inccaused by dust and smoke during construction work; the risk of contamunderground water by infiltration under non-watertight works, inadvertent land make way for civil works, the danger of soil pollution by liquid (used oil) and sothe risk of water pollution during the development, higher risks of contagious disea(STD/AIDS) with the influx of foreign workers, lowering of the water tabovercapacity of water resources, the unpleasant smells caused by poor siting, mand management of latrines, and contamination of the water table.

Annex 7 Page 1/4

LAN

Social

egions and ii) studies, tion (IEC); and social delivery to ntation of alaria and

rt measures

ultitude of ects can be isal of the ts are more ruction and asures and

le living in gnificantly, , will make .

king water andard and the health rogramme. and skin

r sanitation have more vate-sector tenance of

onvenience ination of clearing to lid wastes, ses le through aintenance

Annexe 7 Page 2/4 3. Mitigating Measures and Compensation Programme

3.1 Mitigating measures that will be taken during construction work will be to: sprinkle water frequently in residential areas to counter the clouds of dust that accompany building works, regulate engine combustion of machines being used, and plant trees around the structures to replace those that were felled. The waterworks will be fitted with rainwater and spill water evacuation systems. 3.2 The project will also install surveillance systems to keep track of fluctuations in the pizometric level of the water table in order to cut down the risk of over-utilisation of the resource, and to enable better assessment of renewable reserves. Regulatory measures will be taken to establish the maximum authorised level of wells and boreholes, which must not be more than the depth of the unconfined water and the surplus from the captured water. Also, measures will be taken to enable a more accurate reading of the hydrodynamic features of each aquifer and, secondly, to install an optimum surveillance network to monitor changes in the water tables caused by use and variations in rainfall. To ascertain the drinkability of the water, physical, chemical and bacteriological analyses will be carried out by the water resources department of the Water Resources Directorate at the Ministry of Mines, Power and Water Resources and by the Basic Hygiene and Sanitation Division of the Ministry of Health. The standards applicable in the country will serve as quality benchmark. The equipment will be maintained regularly. All these concerns will be taken into account and the companies’ specifications must contain appropriate provisions for their implementation. 3.3 With regard to sanitation, with the participation of the beneficiaries, the project envisaged the construction of 240 institutional latrines in Zou and Atlantique regions. These latrines will be designed, located and built to avoid odour emissions and pollution. Their retaining capacities, treatment of used oil, and pest control at the sites have been taken into account. Awareness campaigns will be organised among the people on hygiene and cleanliness, health, protection of foodstuffs, hand washing with soap and water, construction, the use and maintenance of public places, in homes and in schools, construction and use of domestic wastewater evacuation systems, solid waste management, STD/AIDS, water-borne diseases, protection of water quality, rational use and conservation of water, and protection of the environment. In addition, the project includes activities designed to promote hygiene and sanitation including competitions for the “Cleanest Village”, and “Cleanest School, training of school health committees, and training in food hygiene for food sellers in schools. 4. Follow-up Programme and Complementary Initiatives 4.1 The Environmental Unit (CE) of the Water Resources Directorate of the Ministry of Mines, Energy and Power will monitor implementation of the mitigating and compensation measures and compliance with applicable regulation. It will work in close cooperation with the control mission, which will make available an environmentalist for 30 days every quarter, throughout the project duration, to support the IU. This officer will train the management staff at the IU on how to prepare an environmental and social impact study, follow-up action on mitigating measures, drafting monitoring and performance indicator reports, environmental audit. Monitoring indicators shall be in relation to water quality, lowering of the water table, drinking water and sanitation access rate, reduction in cases of water-borne diseases, rate of improvement in the living conditions and standards of the project beneficiary populations, etc. With the help of this environmentalist, the IU will implement the PGES, manage the building sites, undertake works that are specifically environmental and social in

Annexe 7 Page 3/4 nature, and resolve any environmental issues that may crop up. The Basic Hygiene and Sanitation Divisions (DHAB) in the Ministry of Health will oversee implementation of measures relating to sanitation and hygiene, and awareness activities. The unit will define pollution indicators. Also, the Benin Environment Agency (ABE) will be approached for advice and for assistance in solving any major environmental and social issues. 4.2 The Government and ADF will carry out a detailed study of the implementation of the ongoing project. The reports of the unit must set out the physical status of construction work, the technical and environmental problems encountered, the solutions envisaged, the efficacy of the environmental and social measures, other potential problems, possible solutions and other relevant recommendations. These quarterly reports will be sent to the Bank regularly. 4.3. Site visits and technical studies indicate that there will be no expropriation of land or houses. The PGES preferred the option of avoiding expropriation. The villages will provide to the project, free-of charge, sites for the self-contained water systems and the village water supply systems. 5. Institutional Arrangements and Capacity Building Needs 5.1 The Ministry of Health, Housing and Urban Development (MEHU) defines, applies and monitors implementation of the Beninese government policy in the areas of territorial development, sanitation, environment, protection of natural resources, delimitation of borders, housing, urban mobility, cartography. MEHU comprises the Cabinet of the Minister, the Directorate of Internal Inspection and Verification, the Permanent Secretary, the Central Directorates, Technical Directorates, regional DIIVISIONS, and the companies or organisation under tutelage. The Environment Directorate prepares government policies and strategies pertaining to the environment and the protection of natural resources, in collaboration with all the institutions concerned for monitoring and overseeing all environment – related development activities, including the control of all forms of pollution. The Benin Environment Agency (ABE) implements government policy within the framework of the general development plan. By Order No 2001-095 of 20 February 2001, an Environmental Unit (EU) was established in the different Ministries, and in each prefecture in every region. The Environmental Unit is a functional unit within its host administration and acts as an interface between the ABE and public and private promoters. A regulatory framework for the Environmental Impact Studies was also established via Order No. 2001-235 of 12 July 2001. 5.2 The Ministry of Health sets and implements national policy on basic hygiene and sanitation. The Directorate for Basic Hygiene and Sanitation (DHAB) is one of the seven technical directorates of the MOH. Its role is to oversee implementation of the country policy as relates to basic hygiene and sanitation. The DHAB is set up at the central and decentralised levels. Within the Regions, the DHAB is represented by the Basic Hygiene and Sanitation Division. At the level of the health area, hygiene and sanitation activities are supervised by technicians, and at municipal level, hygiene officials carry out hygiene and sanitation awareness activities. 5.3 Under the project, the IU in the Water Directorate of the Mines, Power and Water Resources Ministry will be responsible for implementing the mitigating and compensation measures and ensuring compliance with applicable regulations. It will work in close cooperation with the control mission, which will make available an environmentalist for 30

Annexe 7 Page 4/4 days every quarter, throughout the project duration to support the IU. This officer will train the management staff of the IU on preparing an environmental and social impact study, follow-up action on mitigating measures, drafting of monitoring and performance indicator reports, environmental audit. Monitoring indicators shall be in relation to water quality, lowering of the water table, drinking water and sanitation access rate, reduction in cases of water-borne diseases, rate of improvement in the living conditions and standards of the project beneficiary populations, etc. With the help of this environmentalist, the IU will implement the PGES, and carry out management of the building sites, undertake works specifically environmental and social in nature and resolve any environmental issues that may crop up. The Basic Hygiene and Sanitation Divisions (DHAB) in the Ministry of Health will oversee implementation of measures relating sanitation and hygiene and awareness activities. The unit will define pollution indicators. Also, the Benin Environmental Agency (ABE) will be approached for advice and for assistance in solving major environmental and social issues. 6. Public Consultation and Information Dissemination Requirement The project is a community-based and demand-driven, and the population has had to be involved and their concerns taken into account. The resident population, NGOs in the area, local authorities, village heads and the institutions concerned were all consulted during the preparation of the project through seminars and personal contact. The same procedure will apply when the environmental and social measures are applied. 7. Estimated Cost The cost of the environmental protection measures that will be required -redevelopment of project sites, plating of trees, pollution control, and nuisance control during construction work have all been factored into the building costs. Other costs are estimated as follows: awareness activities CFAF 62,100,000; monitoring implementation of environmental and social measures CFAF 60,000,000. 8. Implementation and Reporting Deadline

Implementation of environmental and social measures will be a continuous process at every stage of the project cycle. The project implementation unit will prepare quarterly project implementation status reports. These will be sent to the Programme Coordination Unit (PCU), which will forward them to ADF every quarter. These reports, in addition to showing project physical achievements, will indicate the efficacy of the environmental and social measures, the problems encountered and proposed solutions.

REPUBLIC OF BENIN

RURAL DWSS PROGRAMME

Comparative analysis of the different financing mechanisms used

Donor Budget Head Type of Account Decentralisation Expenditure Circuit

DANIDA PIP

PIP/National budget solely for country counterpart funds DANIDA contribution appears only in the Budget Programme

Accounts in commercial banks for DANIDA financing. For the counterpart funds, have negotiated a call for funds 2ce a year (account replenished after a posteriori justification: effects of budget cycle mitigated

At present, no account in the department but account planned under PADSEA 2

Extra-budgetary circuit (private bank credit) thus not bound by constraints inherent to the annual national budget (except for the country counterpart funds, but facility for call up of funds 2ce a year)

DANIDA Technical assistance

Extra-budget. Accounts and circuits specific to DANIDA

DANIDA budgetary aid

Included under PIP (15% of total PADEA funds)

Country budget circuit (equivalent to national counterpart funds)

PADEA GTZ (technical assistance)

Extra-budget GTZ -specific accounts and circuits solely for technical assistance, expertise, studies

PADEA KFw Country counterpart funds only included under PIP. Like DANIDA, external funding S

Accounts in commercial banks for financing component, to avoid constraints inherent to the annual national budget

No account in the regions for the time being

PHPA BOAD (structures in several regions)

Included in the PIP: State, communities (beneficiaries) and BOAD

BOAD: account at the DH, via CAA Counterpart National Budget: Same expenditure as BOAD: a % of all expenditures

No accounts in the regions as at now All contracts signed by the DH

DH signs contracts; claim deposited at the SDH or DH, monitored by the consulting firm, then transmitted to the CAA for payment (BOAD). For the NB, programmed in SIGFIP by CDAF, sent to financial controller MFE, then to Treasurer for payment (longer than CAA)

Project Netherlands Project with « budgetary aid to provinces »

A priori, included in the PIP National Budget

Budgetary aid, so NB but closely targeted: funds are for communal accounts and for the accounts of decentralised structures providing services

Completely decentralised funds are targeted at councils although provision made for funds for the support role of decentralised structures

National budgetary circuit but with a commitment to allocate resources to the target councils (sole risk: same fund for all users and competing users).

Belgian PADEA Project Atacora-Donga

A priori included in the PIP but only the country’s contribution only, if any, since the CTB finances most intervention, including their operation, from extra-budgetary accounts and circuits (« special »)

Accounts in commercial banks for CTB financing, to avoid constraints inherent to the annual national budget cycle (e.g. DANIDA)

Decentralised: CTB replenishes the accounts at the DH, which itself replenishes the working account in the region managed by the project manager, which replenishes 2 SDH accounts and one SHAB account

Project-specific extra-budgetary circuit, thus very short. N.B.: Despite these shortcuts, the project documents state that facilities will only be ready for handing over to the community 16 to 22 months after they make their demand

Annex 8