RETURN TO)REPORTS DESK RESTRICTEDJIjOqTS D K 'fElDV Report No. WH-200a

WITHIN FIL COPYjONE WEEK

This report was prepared for use within the Bank and its affiliated organizations.They do not accept responsibility for its accuracy or completeness. The report maynot be published nor may it be quoted as representing their views.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

ECONOMIC GROWTH OF COLOMBIA:

PROBLEMS AND PROSPECTS

(in XII volumes)

VOLUME IX

WATER SUPPLY

November 1, 1970

South America Department

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CURRENCY EQUIVALENTS

(Certificate Market Selling Rate of Exchange)

End 1968

1 US$ = 16.91 Pesos

1 Peso = US$0.05913

End 1969

1 US$ = 17.90 Pesos

1 Peso = US$0.05586

End-March 1970

1 US$ = 18.20 Pesos

1 Peso = US$0.05494

WATER SUPPLY

Table of Contents

Page

GLOSSARY

PART I. SECTOR ANALYSIS 1

I. CHARACTERISTICS AND POLICIES OFl RESPONSIBLEAGENCIES AND SUPPORTING INSTITUTIONS 1A. Organization of the Sector 1

Municipal Empresas 1National Institute for Municipal Development

(INSFOPAL) 2National Institute for Special Health

Programs (INPES) 3Regional Authorities and IndependentMunicipalities 3

Niational Planning Department (Planeacion) 4National Fund for Development Projects (FONADE) 5National Public Services Tariff Board 5

B. Appraisal of Past Growth and Present Situationof the Sector 6

Growth of Population and Services 6Foreign Loans, 1961-1969 8Sector Studies 8Human Resources 9Industrial Resources 10

II. SECTORt PROBLEMS, NEEDS AND CONSTRAINTS ONINVES TT4ENTS 12A. Administration and Management 12B. Financing 13

Investments, 1965-1969 13Comments on 1970 Budget and Projections of

Investment Programs, 1.971-1975 13Capacity for Internal Financing 16Needs for External Financing 16

C. Technology 18Water Quality Control 19Ground Water 19

D. Water Tariffs 20

III. SUMMARY AND CONCLUSIONS 22

PART II. PREINVESTMENT STUDIES 25

I. STUDIES COMPLETED OR IN PREPARATION 25II. PROPOSED STTJDIES 25

PART III. PROJECT LIST 27

Table of Contents (Cont'd)

ANNEX 1 - Municipal Public Utilities Operating in thle Water Supply/SewageDisposal Sector

ANNEX 2 - ACIJAS, Direcciones Seccionales and. Affiliated Water AgenciesUnder INSFOPA]

ANNEX 3 - Percentage of Population Wi.th Water Services - Ten Largest TownsUJnder the Jurisdiction of INSFOPAL, 1970

ANNEX 4 - Inter-American Development Bank's Loans- to Colombia in the WaterSupply/Sewage Disposal Sector, 1961-69

ANNEX 5 - International Bank for Reconstructionl and Development Loans toColombia in the Water Supply/Sewage Disposal Sector, 1961-70

ANNEX 6 - Preinvestment Program - Study Data Sheets

ANNEX 7 - List of Projects for Internal and External Financing

GLOSSARY

Colombian Institutions Referred to in the Report:

1. National Planning Department - Departamento Nacional de Planeacion

2. National Institute for Municipal Development - Instituto Nacional deFomento Municipal (INSFOPAL)

3. National Institute for Special Health Programs - Instituto Nacionalpara Programas Especiales de Salud (INPES)

4. Municipal Public Companies - Empresas Publicas Municipales (Empresas)

5. National Public Services Tariff Board - Junta Nacional de Tarifas deServicios Publicos

6. National Fund for Development Projects - Fondo Nacional de Proyectosde Desarrollo (FONADE)

7. Superintendency of Economic Regulation (Superintendencia de RegulacionEconomica)

8. ater Supply Corporations under INSFOPAL - ACUAS

9. Branch Offices of INSFOPAL - Direcciones Seccionales

1O. Inter-American Development Bank - IDB

11. U.S. Agency for International Development - US AID

12. U.S. Export - Import Bank - EXIMBANK

13. Colombian Water and Sewage Works Association - ACODAL

l14i. Industrial Development Institute - Instituto de Fomento Industrial (IFI)

:15. Institute for Property Development Credit - Instituto de CreditoTerritorial (ICT)

.16. National Council f'or Economic and Social Policy - Consejo Nacional deFolitica Economica y Social)

PART I. SECTCR ANALYSIS

I. CHARACTERISTICS AND POLICIES OF RESPONSIBLEAGENCIES AIM SUPPORTING INSTITUTIONS

A. Organization of the Sector

1. Mbst of the decisions affecting the operation and dbvelopmentof water supply and sewerage in Colombia are made by three agencies:thje municipal public companies (Empresas) in the larger cities; theNational Institute for Municipal Development (INSFOPAL), with jurisdic-tion over 769 urban communities; and the National Institute for SpecialHealth Programs (INPES), serving the rural population.

2. These agencies have their development plans and programs co-ordinated by the National Planning Department (Planeacion).

3. The 1970 population under the jurisdiction of the Exapresas,INSFOPAL and INPFS is shown in the table below:

Table 1. Population by Agency Jurisdiction - 1970

Agencies Population(in milWlions)

Municipal En2presas 7.2INSFOPAL 5. 8INPES 8.6

Total 21.6

4i. Municipal EmLpresas. There are 21 municipal public companiesoperating in the sector. They are under municipal control and providesuch services as water supply and sewerage, solid waste collection anddisposal, public markets, telephone and electric power service. TheEnpresas in the three major cities of Bogota, Medellin and Cali appearto be well managed and are coping to a fair degree with the problemsof these fast-grorwing urban centers. Barranquilla, the fourth city insize, is having serious problems of acbninistration and financing.

5. The 17 remaining Empresas, in the medium-size and smallercities, have experienced difficulties in providing adequate services.Seven cities in this group -- Bucaramanga, Cartagena, Manizales, Neiva,Palmira, Pereira and Tulua -- have completed feasibility studies finan-ced by USAID funds for expansion of water supply and/or sewerage.

6. Cali., Falmira and Bucarananga began negotiations for loansat the World Bank in Apr21. 1970. The five other medium-size citiesare expected to seek Baink assistance during fiscal 1571.

7. Annex 1 shows the municipal public conpanies operat;ing inColortbia, the estijmated population under the Jurisdiction of each,and the percentage of the population connected to the respectivewater supply system.

8. National Institute for Municipal Development (INSFOPAL). Bya Decree of Decesiber 26, 1968, INSF0PAL was transferred from the Minis-try of Development to the Ministry of Public Eealth and was to begin aninternal reorganLization designed to strengtheni its administration andincrease its capacity to invest. The Board of' Directors is chaired bythe Minister of Public Health and has representatives from Planeacioni,INPES, the Colombian Municipal Association, the Colombian Society ofEngineers, the Coffee Federation, and a personal representative of thePresident of Colonbi.a.

9. T VNSFOPAL's main1 functios are to --(i) Prepare public investment rlans in the water/sewer sector

for suLbmssion to the plarnning uni of the lQnist-ry of

-iealith. This unit, in turn, must seek the approval ofthe National Plamninlgl Board.

(ii) Build water supply and sewage disposal systemzs for conirm-nities of more th,an 2,5OO inhabitants5.

(iii) Establish, with the approval of the Ministry of Healfth,sanitary standards for construction and operation ofwater supply and sewage disposal systems.

(iv) Submit to the National Tariff Board the water supply andsewerage rate applications for those systems under itsjiurisdie tion.

(v) Operate and mrLaintain the systems under (ii).

l0. The prior recuirement of recovery oa' investments in Article 5of INiSFOPAI's former Decree of 1957, has bceen somewhat modified in the1968 reorganization Decree. Article 8 of the new Decree states:

INSFOPAL's investments for constructior and financing ofregional or local water supply and sewerage sys-tems mill bemade according to the procedures established by theDirecting Board. These procedures must be duly approved by-the Governernt and will govern whether loars are to be non-rsilbursable fLn&, whenever speci:-In circumstances justify,or reimbursable funds, whose terms and interest rates w4illbe established by the Board.

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11. INSFOPAL has suffered the consequences of frequent changes ingeneeral managers and conflicts between the central office and its regionalwat,er supply corporations, the ACUAS. With little supervision from thecentral office, the ACUAS took the initiative and sought political andeconomic support of the local government. The larger ACUAS stronglycriticized deficiencies in the central office and even defaulted on re-lending agreements with INSFOPAL of loans from the Tnter-American Develop-ment Bank to INSFOPAL for expansion of systems. A recent survey of theACTkS7 debts to INSFOPAI, revealed that a total of Col. $12.0 million waspast due in 1968, thus forcing INSFOPAL to se:rvice the IDB loans from itsown appropriated funds. At the beginning of 1968, Direcciones Seccionales(Branch Offices of INSFOPAL) were established to replace those ACUAS whichpresented difficult administrative and financ:ial problems. Of the original20 ACUAS, only 10 remain in 1970.

12.. Six towns -- Buenaventura, Giradot, Popayan, Pamplona, Santa Rosadel Cabal and Leticia -- have an agreement with INSFOPAL to operate andmaintain thei..r systems. A list of the ACUAS, Direcciones Secionales andaffiliated water agencies of INSFOPAL is shown in Annex 2. The percentagesof population served with water in the 10 largest towns under INSFOPAL'sjurisdiction are shown in Annex III.

13. National Institute for Special Health Programs (INPES). ThisInstitute, crea-ted by a Decree of April 2, 1968, is part of the Ministryof Plublic Health. Its main fields of activity are biomedical and epi-demi.ological research; training of professional and auxiliary personnel inthe public health sector; and rural sanitation, involving water supply andsewe-rage for communities with less than 2,500 inhabitants. The NationalHealth Laboratory operates within INPES' structure.

lh. Water supply and sewerage systems are constructed by departmentalbranches of TNPES, and priority of investment depends on local interest andwillingness to contribute with labor and materials. A survey of the partic-ular comrunity's economic condition is made and each family's monthly con-trihution to the system's costs is determined prior to construction. Partof the revenues are retained locally for salaries and maintenance; therermaindler amortizes a pre-established part of the capital investment (aboutthO percent). Although this program has not been in effect long enough tojudge whether debt service will be maintained, the approach taken appearsappropriate to the problem and the environment in which INPES must opera-te.

15.. Regional Authorities and Independent Municipalities. Besides theEMpresas, INSFOPAL and INPES, there are regional authorities and independerntmunicipalities operating in the sector.

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16. The Autonomous Regional. Corporation of the Bogota Plain,Ubate and Chiquinquira Valleys (CAR) is a planning arnd coordinatingagency for Greater Bogota, having jurisdiction in an area of 6,000 sqkm. CAR's fields of irnerest, iThude : water in its several aspects(potable and waste water, flood control, recreation, land reclamation),forestry and erosion control, electric power, highways and telephones.-n 1565 CAR firanced a regional water supply s-ystem for the towns ofZipaquira, Cogua and Nemocon, where salt mires represent an Aiportantfiscal resource as well as a source of employment, both for the minesand related industries, A second regional system (Nadrid-Mosquera-Fun-za) is being built, ancd studies am completed for a large regionalaqueduct serving the towns of Tabio, Tenjo, Cota, Chia and Cajic.a.These systems are independent of INSFOPAL and INPES.

27. The Cauca Valley Authority (CVC) has developed water supplysystems for commnities under its jurisdiction. The Institute forAgrarian Reform (ITCCRA) and the Cafcbe FedLeration have likewise builtsmall rural systems in areas of particular interest to their programs.

18. There is a group of towns where water supply and sewerageare operated directly by the municipality. The only large town inthis category is Bello. with a population of 1h0,000 within themetropolitan area of Medcllin. Once affiliated with AZUANTIOQTUIA,Bello withdrew from l13FOPA?L some years ago; due to internal difficul-ties, the ACUA management was not able to cope with the needs of thisrapidly growing municipality despite IfSFOPAL's intervention.

1. National Planning Department (Planeacion). The N7ationalPlanning Department wi- estabished ini 1955 and reorganized by Decree2996 of December l)?6. The Departmentts principal tasks are to re-cond procedures and standards to be followed by public and privateplanning offices; to coordinate development plans and programs; andto evaluate results achieved in the programs.

20. Planeacion is considering the establishment of regionalbranches to provide direct- support to the planning offices of thelarger towns, thus strengthening these local. unit in developingtheir plans and programs.

21. There are three sections of Planeacion directly involved inthe water supply and sewerage sector: the Infrastructure Unit -Sanitary Engineering Division; the National Public Services TariffBoard; and the Natioml ?und for Development Projects,

22. The Infrastructure Unit acts as a reviewing and coordinatingagency for public: utility sector investment, and the Sanitary EngineeringDivision carries out this function in the water supply and sewerage sectoras well as supervising feasibility studies financed by FONADE and shepard-ing projects for external financing.

:23. National Fund for Development Projects (FONADE). FONADE was-reated in October 1967 to finance economic and technical studies forsectors and specific projects. In its first year of operations, loanstotaling COL$74.0 million were authorized, out of which COL$18.5 mil-lion was used to finance the following water supply and sewerage stu-dies:

(i) COL$8.0 million for feasibility studies for Palndra,Tulua, Pereira, Bogota, Neiva, Cartagena and Manizales;

(ii) COL$2.5 million for sewerage and erosion control inBucaramange;

(iii) COL$3.0 million for studies of a new water source inMedellin; and

(iv) COL$5.0 million for Cali's water supply system expan-sion.

2h. Approximately 53% of FONADE's COL$74.0 million financedelectric power studies; 25% corresponded to water supply and sewerage;and the remainder was divided among studies for agriculture, fisheries,education, industry and regional development.

25. National Public Services Tariff Board. Prior to Planeacion's1968 reorganization, a unit of the Ministry of Development (Ministeriode Fomento) called the Superintendency of Economic Regulations wasresponsible for public utilities rates and policy. This function wastransferred to the National Public Services Tariff Board in December1968 in accordance with Decree 3069.

26. The Board's primary job is to review requests for rate chan-ges from the water, sewer and electric power utilities.

27. No rate change can be put into effect without the Board'sapproval and the Board is required to set guidelirnes for the frequencywith which rate increases should be sought, as well as the type ofdata which should be submitted in support of a rate change. Given thegenerally low level of rates for water and sewer services, most requestshave been for increases.

28. The present members of the Board, appointed by the President ofColombia are: the headof Planeacion, acting as Chairman; the chief of theInfrastructure Unit of Planeacion; and the Executive Director of FONADE.The Board's secretary is also the chief of the Economic Research Divisionof Planeacion.

B. Appraisal of Past Growth and Present Situation ofthe Sector

29. Growth of Population and Services. The revised 1964 Colombiancensus reported a mid-year population of 17.8 million. Due largely tointernal migration to urban centers, the growth of the urban populationhas been 5- 5.5% per year for the past five years. In contrast, therural population increased at an estimated annual rate of only 1.2%.

30. The table below shows the urban and rural distribution ofpopulation for 1965 and projections for 1970.

Table 2. Urban/Rural Distribution of Population(in millions)

Population 1965 1970

Urban 10.b 13.0

Rural 8.0 8e6Total 18. 21e6

31. The relative growth of the total population and the growth ofpopulation served -- i.e., connected to a system or with access towater services -- can be compared by grouping population according tothe agency with jurisdiction over water services, as shown below.

Table 3.

Estimated Population Estimated Population withunder Agency Jurisdiction Water Services

(milions) (millions)

Agency 1965 1970 Increase 1965 1970 Increase

Empresas 5.8 7.2 1.4 40 5.9 1.9

INSFOPAL 4.6 5.8 1.2 2.0 2.8 0.8

INPES 8.0 8.6 o.6 1.5 2.2 0.7

Total 18.4 7 21.6 3.2 7.5 10.9 3.

32. From the above, estimated percentages of population with waterservices can be derl ved, as show-n below.

-- -1

Table 4. Estimated % Population withn Water Serv:ices

.4gency 196S 1973 Increase

Tmpresas 69 82 13INSFOPAL 43 h8 5INPES 18 25 7

33. Even though the Putta del Este goals for 1971 of serving 70 per-cent of the urban population with water supply and sewerage were officiallyaccepted by Colomrbia in 1961, they are now considered as merely referencepoints.

34. INSFOPAL is making very slow progress in decreasing the backlogof unserved population and did not set goals for supplying water to anyspecific percentage of the population under its jurisdiction. The Empresasexceed the Punta del Este goal for 1971; however, some of the small ones(see Annex 3) are still well below that goal.

35. When one considers the rural population in two groups -- concen-trated (when a conmunity's population exceeds 100) and dispersed (when arural settlement has less than 100 people) -- then the total rural popula-tion of 8.6 million is divided as follows:

Population Est. Pop. with Est. % Pop.1970 Water Services with

Grouip (in millions) (in millions) Water Services

Concentrated 3.6 1.6 45%Dispersed 5.0 0.6 12%

[35* The Punt;a del Este Conference for the Latin American countriesset a rural goal of 50 percent of the population to be served by water suppland sewage disposal by 1971. INPES is still far from this target for totalrural population, but is closing the gap for the rural concentrated popula-tion. Serving the dispersed rural population is extremely difficult dule to,among other things, their itinerant characteristics and low income levels.

37. Investment in sewerage is being made at a much slower rate thanthat of population gro-uth. Figures for INSFOPAL show that expenditures forsewerage construction between 1964 and 1969 ranged from 10 to 14% of thedirect investment of the agency. The Tmpresas are in a better situation,particularly in Bogota, which is spending US $7.0 million this year forexpansion and improvement of its system.

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138. The mission was not able to obtain data for population servedwith sewer systems. Fromn the information collected it is estimatedthat about 50 percent of the urban population has access to sewers andless than 30 percent of the rural population is connected to septic tanksor latrines. Due to deficiencies in maintenance and expansion, manysystems are deteriorated and overloaded.

39. Foreign Loans, 19(1-1969. Beginning in 1961, the Inter-AmericanDeveloument Bank invested heavily for water supply in Latin America.Colombia, a major recipient of these TDB loans, has disbursed US $35.0million to date. Loans were made in 1961 ard 1962 to the cities of' Cartagena,Cucuta and Cali and to INSFOPAL. Cucuta and INSFOPAL experienced a seriesof administrative difficulties that resulted in extremnely long disbursementperiods. Medellin, on the other hand, had one loan signed in 1961, a secondin 1965 and a third in 1969, indicating a more efficient administrative andfinancial operation. IDB loans to Colombia are shown in Annex 4.

40. The policy of USAID has been to finance both water and sewerageprojects and pre-investment studies leading to projects to be financedby international, multilateral or bilateral credit institutions. Since1961, loans from USAID to Colombia total US $13.3 million.

h1. Thae World Bank made a US $14.0 million loan in 1968 to expand Bogota'swater supply system. This project was financed jointly by an EXIMBANK loan ofUS $3.0 million and a credit of TUS $1.0 from Kreditanstalt fuer Wiederaufbau.The Ban? has also made a loan in June 1970 of IIS $l8.5 million for Cali's w;atersupply and sewerage systems and projects for Bucaramanlga and Palmira are underconsideration.

42. Sector Stoudies. Recognizing ar urgent need for integrated plan-ning in the water supply/sewerage sector, Planeacion and TNSFOPAL jointlyprepared a study in 1968 to gather -nfformation on the foll owing areas:

(a) Status of the Eector.(b) Sectoral objectives, goals -nd criteria for priorities.(C) Coordination amofng agencies operating in the sector.(d) Efficiency in -the use of resources.(e) Rate policy employed by the agencies.(f) Appraisal of technological aspects of systems' design

and. operation.

43. The stud.y will stress criteria, as set out below, that alreadyhave been adopted by Planeacion for the utilization of financial resources.

(i) Concentrate funds in projects corresponding to developmentgoals and sub-goals, as determined by the Government'sregional development policy;

(ii) Establish rates on the basis of the economic capacity ofthe consumers;

(iii) Build regional water oupply systems, whenever feasible, and;

(iv) Complete as soon as po; ible tthe projects alread.y under way.

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44. In August 1969, questionnaires were sent by Planeacion to 799urban communities in order to ascertain --

(i) The existing water supply/sewage disposal system.

(ii) The systems under construction, and;

(iii) The backlog of services.

45. From the data received, Planeacion wrill estimate the presentdeficit in water supply and sewer services and obtain a first approximationof the financial resources needed to provide ininimiun services for Colombia'surban population. A final report is due in August 1970.

46. In April 1969 the National Tariff Board began a study of ratesadopted by the Empresas and INSFOPAL. The study's main objective was toconsider the feasibility of establishing rates that would cover operatingcosts and depreciation (based on replacement value) and provide a moderaterate-of-return. Guidelines for submission of information to the Board weredistributed to INSFOPAL and the Empresas requ-Lring them to revalue assetsand calculate depreciation. The larger Empresas complied with this request,but the smaller Empresas and INSFOPAL did not. The Board prepared new guide-lines which reduced the required information to a minimum and deleted allreferences to revaluation. The new request was sent to the same agencies inMarch 1970 and tabulation and analysis of data are to be made in August 1970.

47. Another study by the National Tariff Board was started in February1970; it is coordinated with the April 1969 study and requests informationon a system's operating costs and economic capacity of consumers.

48. The three studies described above will provide the basic infor-mation needs for a national plan for the urban water supply and seweragesector.

49. Human Resources. A check of the-membership of the Colombian Waterand Sewage Works Association (ACODAL) shows that the number of sanitaryengineers employed in the sector is close to 10O, corresponding to a ratioof one sanitary engineer per 200,000 inhabitants. This ratio is close tothe average for Latin America, but is only one-tenth the ratio for theUJnited States.

50. Many of the Colombian sanitary engineers were tirairied in theUnited States, Brazil and Mexico. Graduate-level eduication is now offeredat the Universidad Nacional in Bogota, but this course is not a regular oneand is not receiving the University's expected support. As a result, manyof the professors have left, aggravating an already difficult situation. Afour-year course at -the undergraduate level, offered by the Ilniversidad delValle in Cali, has graduated an average of 10 engineers per year in the lastthree years.

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51. All civil engineers trained in Colombia receive instruictionin sanitary engineering, and there are two to -three times more civilengineers than sanitary engineers who are active in the water suipplyand sewerage sector.

'12. The Pan American Health Organization is collaborating withthree Colombian universities to develop a program of continuing educationfor civil and sanitary engineers. Since 1967, 12 intensive courses witha total duration of ,(_00C) hours have been offered, covering the administra-tive and technological aspects of water supply and waste disposal.

'3. Training at the sub-professional le-vel is offered by the NationalTechnical Institute (Servicio Nacional de Aprendizaje, SENA), a highlyrespected institution ith branches in the larger Colombian towns. BothINSFOPAL and the BogDta Municipal Company have relied oIn SENA to organizeand develop a number of short courses for technicians and administrators.

54. The Ministry of' Public Health trains a small number of watertreatment plant operators, since Article 15 of the Colombian Sanitary Coderequires all plant operators to have a certificate of qualification issuedby the Ministry. However, training has not been offered by the Ministry ona regular basis. The quality of operators varies from very good, in thelarger Empresas, to poor in most of the smaller systems.

55. A comprehensive plan for training and educating professional andauxiliary personnel is needed if effective service is to be provided. Plan-eacion should survey the existing manpower and project needs, according tothe expansion plans of the Empresas, INSFOPAL and INPES, to guide the uni-versities and SENA in programming their courses. Assistance may usefullybe sought from the Pan American Health Organization to furnish instructors,equipment and supplies, as well as fellowshiDs for international training.

56. Industrial Resources. A large percentage of the constructionmaterials and equipment used in water and sewage works is manufactured inColombia. Eternit has a plant producing 40,000 tons of asbestos-cement pipeper year, in diameters ranging from 2 to 24 inches. The plant capacity isgreater than present internal demand, and exports have been made to CostaRica, Ecuador and Panama. The pipes are manufactured according to ISOstandards and prices are competitive in the international market, due tothe low cost of cement, which constitutes 85 percent of the pipe's rawmaterial. The remaining 15 percent is a mixture of asbestos fibers, corres-ponding to 25 percent of the pipe's sales price.

57. A Medellin company, Apollo, produces cast iron fittings to be usedwith Eternit pipes. American Pipe has a plant in Colombia, manufacturingmedium and large-size cement pipe, reinforced with imported steel plate.For diameters between 12 and 24 inches, prices are comparable to those ofasbestos-cement pipe. For diameters larger than 24 inches American Pipe isthe sole supplier of the market. Plastic PVC and polyethylene pipe is madeby four domestic firms; their prices are 40 percent higher than those forequivalent imported materials.

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58. Also manufactured locally are snall centrifugal pumps andelectric motors, drive mechanisms for flocculators, and dry feeders foralum and lime. This equipment needs improvement as quality control isstill primitive and industrial standards are tentative.

59. Water meters made by Kent Colombiana are not competitive inprice with those imported from Kent of England. Chlorinators of the V-notchtype have begun to be made by a local subsidiary of Wallace and Tiernan ofDNew Jersey and appear to be of good quality.

II. SECTOR PROBLEMS, NEEDS AND CONSTRAINTS ON INVESTMENTS

A. Administration and Management

60. The large public utilities, along with those operating inmedimi-size towns, show varying degrees of administrative efficiency,ranging from very high as in the case of Bogota, Medellin and Cali,to very low in the smaller Enpresas.

61. INSFOPAL has acute administrative problems in planning andprogramming, financial control and accounting. Specifically --

(i) There is no adopted procedure which takesinto account elements of program planning,as related to budgeted resources for achievingobjectives. A piecemeal approach to developingprojects still prevails. Whenever criticalsocial pressures arise due to water shortages,plans are hastily prepared to cope with theemergency; thus there is no long-term planningand few economic factors are considered inthe establishment of investment priorities.

(ii) A policy of moving systems under ACUAS ordepartmental branches toward positive ratesof return on assets has not been pursued.Locally generated revenues of the systemsusually cover only costs of operations,and the funds to service many of the ACUAS'debts come from INSFOPAL's budget. Initia-tive for a review of existing tariffs hasbeen minimal.

(iii) The financial division of the Sub-managementof Operation is too weak. No monthly state-ments showing the origin and use of funds areavailable, and strict control of the budgetis not enforced.

(iv) Accounting procedures are not uniform forall AWUAS. This is further complicated bya different system applicable to the depart-mental branches. Repetitive review of ex-penditures by several fiscal agencies delaysthe availability of accounting figures.

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B. Financing

62. Investments, 1965 - 1969. A comparison of sectors shows thatdirect Government investment for Colcabia is lower in water supply andsewerage than in the transport, energy and agriculture sectors, buthigher than investment in communications, housing, industry, health andromiaining sectors. This situation, which prevailed between 1965 and1969, is likely to continue through 1975, according to present Govern-meant plans.

63. The mission obtained investment figures for water supply andsewerage from 1965 to 1969, which are shown in the table below.

Table 5: Investment in Water Supply/Sewerage (millions of US $)External

Agency 1965 1966 1967 1968 1969 Total Financing

Ehpresas 15.1 19.6 20.5 28.0 31.9 15.1 25.0INSFOPAL 6.2 6.9 7.0 6.2 8.0 34.3 8.o:PES 0.3 0.6 1.2 2.1 2.5 6.7 -

Total 21.6 27.1 28.7 36.3 42.4 156.1 33.0

6t. Three of the largest BEnpresas -- Bogota, Medellin and Call --

are expanding investments at a rate which will provide adequate servicesto cover the population growth. Most of the smaller municipal publiccowpanies, on the other hand, face a difficult, problem since presentlevels of investnenx are not reducing the current deficit of populationserved.

65. INSFOPAL has maintained a fairly constant rate of invrestmentin the past five years, resulting in modest increases in the percentageof population with water services, as shown in Table 4. INPES is steadilyincreasing direct investments in rural camunities. In 1965 IPES' e-penditures were 5 percent of INSFOPAL's; in 1969 they were 32 percent,whereas the INSPOPAL to Eknpresas ratio of expenditures fell, from 40 per-cent in 1965 to 25 percent in 1969.

66. Comments on 1970 Budgetand Projections of Investment Programs,1971 - 1975. The total investment for improvement and expansion of watersupply and sewerage works for 1970, distributed among the three mainresponsible agencies, is shown below:

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Table 6: Investment Budgeted for 1970 (millions of US$)

Agency Amount

Municipal Public Utilities 37.5INSFOPAL 7.1INPES 3.4

Total 48.0

67. Bogota and Medellin account for 77 percent of the total invest-ment of US $37.5 million by municipal public utilities. Investment inthese two cities also accounts for 52 percent of the total sector invest-ment; of US S48.0 million. The 3.5 million population of Bogota and Medellinis 49 percent of the total population under the jurisdiction of municipalpublic utilities and 27 percent of the entire urban population of thecountry.

68. The 1970 INISFOPAL budget request to the central Government fordirect investrment was Col. $260.3 million, but only Col. $99.8 million wasapproved. Also approved was Col. $25.0 million for administration andCol. $16.5 million for debt service. INSFOPAL is counting on a specialsupplemental subsidy of Col. $30.0 million, to be used in the constructionof new systems. Thus, the 1970 budget for direct investments would be ofCol. $130.0 million. Operational costs should be covered by the ACUAS andDirecciones Seccionales, but past experience has revealed a number of caseswhere INSFOPAL was forced to cover their operation and maintenance costswith budget appropriations. This appears to be the case in this year also,at least with respect to the debt service.

69. INSFOPAL still has not been able to spend all the funds appro-priated for investments in recent years, as shown in the table below:

Table 7: INSFOPAL - Actual and Budgeted Investment 1966 - 1969(millions of COL$)

1966 1967 1968 1969

Actual 93.5 103.0 102.2 139.0Budgeted 124.8 113.9 125.9 150.4Ratio of Actual/Budgeted 74% 90% 81% 92%

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7T3. Projectiorns of invesbnent programs were made by the mission,with data available in the publication "Plans and Development Programs1969/72"' and with information obtained fran the agencies visited.

71. Firm expansion plans were not available from either INSFOPALor INPES. INSFOPAL prepared a tentative four-year plan to benefit 49comrunities that do not have water supply systems, 64 towns where servicesare extremely deficient, and 254 in need of sewerage.

72. INPES studied a 10-year plan involving construction of 3,150water supply and 1,915 sewage disposal systems for concentrated rural.communities, as well as 10,000 rudimentary water systems (wells andpublic hydrants) and 200,000 latrines for the dispersed population, witha total cost of us$50.0 million. An alternative four-year plan was alsoconsidered, having the same objectives as the 10-year plan. A six-yearplan is now being prepared, along the same lines as the other two plans.

73. Table 8 shows projections made by the mission for expendituresbetween 1971 and 1975; data from Tables 5 and 6 are included in Table 8as reference points. Expenditure estimates for INSFOPAL were based onthe tentative four-year plan (1971 - 1974) and projections for 1975 fol-lowed the rate of investments established for the duration of the plan.fDIPES expenditures reflect the possibility of accomplishLng the 10-yearplan in 6 years involving an average annual investment of US$8.5 million.Since no firm engineering or investment plans are available either inTISFOPAL or INPES, actual investments may be well below the amounts pro-posed.

74. ProJections for most Empresas are more realistic: tharn thosefor INSFOPAL and INPES, due to the existence of specific exoansion plansand investment programs. There is a moderate, acceptable increase intheir rate of expenditures for the period 1971 - 1975, compared withthe 1965 - 1969 period.

Table 8: Investments in the Water Supply/Sewerage Sector(millions of US dollars)

A c t u a l P r o j e c t e dAgency 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975

Empre.sas 15.1 19.6 20.5 28.0 31.9 37.5 41.0 44.5 45.5 49.0 53.0INSFOPAL 6.2 6.9 7.0 6.2 8.0 7.1 14.0 17.0 22.0 25.0 27.0INP&3 0.3 0.6 1.2 2.1 2.5 3.4 5.0 6.0 8.0 10.5 13.5

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75. Capacity for 1Initernal Financing. The capacity to finance invest-ment programs from internally generated resources is low. In addition towater revenues, INSFOPAL uses budget appropriations (Government grants) andcapital contributions, such as connection fees and ad-valorem taxes, tocover administration, oreration and maintenaince costs. The policy of thecentral Government should be geared to the granting of a fixed subsidy forsystem's expansion, but enforcing -the adoption by INSFOPAL of water supply/sewerage tariffs as a source of funds to pay not only operati3nal costs butalso part of a system' s improvements arid expansion. Thus, a basic capitalsubsidy would be maintained, following a pattern prevalent since the creationof INSFOPAL, but increases in investment above this subsidy would depend oninternal or external credit, to be reimbursed width funds generated by positiverates of returni on assets.

76. The larger Empresas are able to generate up to 25 percent of invest-ment needs, while the smaller ones use practically all their internally pro-duced resources for admrinistration, opera-tion or maintenance expenses andfor debt service. A few small short-term loans have been extended by localbanks for improvement and expansion of services, and some long-term loanshave been made by the Instituto de Fcmento Industrial (IFI). In a fewcities, the Instituto de Credito Territorial (ICT) also has financedwater supply/sewerage systems.

77. A practice still commonly adopted by the Empresas is to financea_theexpansion of water supply/sewerage systems with funds generated from otherservices such as electric energy or telephone service. Since most of theBhpresas operate in towdns of 70,000 iriabitants or more, it is very unlikelythat the economic capacity of the consumer should be considered an obstacleto the enforcement of a tariff policy consonant with the rate-of-return.oncept.

78. Needs for External Financing. Based upon projects being studiedby the World Bank and cost estimates of studies already completed or inpreparation, anticipated reques-ts for external financing between 1970 and1975 are shown in Table 9.

Table 9: External Financing for Water/Sewerage Projects(in millions of US dollars)

AyMency Purpose Total cost External credit

Empresa Bogota Water Supply 100.0 50.0Ehpresa Call Water/Sewerage 37.0 18.5Empresa Barranquilla Sewerage 2.0 1.0Empresa Bucaramanga Erosion Control 12.7 7.0Dnpresa Falmira Water/Sewerage 4.0 2.0Empresa Pereira Water/Sewerage 4.0 2.0Empresa Armenia water/Sewerage 3.0 1.5Empresa Villavicencio Water/Sewerage 2.0 1.0Empresa Manizales Water/Sewerage 2.0 1.0Empresa Tulua Water/Sewerage 2.0 1.0Empresa Neiva Water/Sewerage 2.0 1.0Eknpresa Cartagena Water/Supply 1.0 0.5INSFOPAL (19 towns) Water/Sewerage 10.0 5.0

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79. Besides the loans listed in Table 9, external financing will besought by Medellin, for further expansion of the water supply system.Studies have just started and no estimates of funds are available. Needsfor INSFOPAL are much beyond the 19 towns (See Annex 7) which have alreadybeen selected. As shown in Table 8, total investments for water supply/sewerage between 1971 and 1975 would be of US $100 million, out of whichUs '¢50 million might, be supplied by external credit based on a 50:50 costsharing formula. It, is the policy of the central Government to financeINPPES investments with budget appropriations, no external loans beingconlemplated.

80. Before external and internal financing can reach the expectedlevels, same aspects of the sector must be modified:

(i) An efficient mechanism for financing expansionsof the smaller Empresas depends on the possi-bility of channeling loan funds through a singlenational agency, acting as an intermediarybetween international credit institutions andindividual recipients of funds.

(ii) Assuming the availability of funds, loansare still dependent on a steady flow of high-quality feasibility studies to guide Planeacionin the selection of priority projects andsupport lending applications.

(iii) There is need for a national policy of watersupply/sewerage tariffs based on positive return,supported by changes leading to sound admin-istrative and managerial practices.

81. The first two points already have received the attention ofthe Colombian authorities. In "Development Plans and Programs, 1969/1972"t Planeacion submitted to Congress a proposal for the creation ofa National Fund for Public Investments. This Fund would be the financialand administrative agency supervising investments in the public utilitiesfield, operating within the framework of the National Planning Board.

82. The Industrial Development Institute (IFI) has been operatingas an intermediary between USAID and several Colombian agencies in theuse of USAID counterpart funds for loans. Until the establishment ofthe Fund for Public Investments, Planeacion might consider the con-venience of using the services of IFI as a central agency in the admin-istration of water supply and sewerage international loans.

83. INSFOPAL would be a convenient agency to administer watersupply/sewerage international loans for the medium-size and smallerDipresas. However, the apparent need for corrective action to improveINSI'OFPAL 's operational capability indicates that some time will berequaired until anl acceptable level of administration auld managenent isachieved.

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C. Technology

B1. INSFOPAL has provisional design standards for water sources,groundwater use, water quality, pumping stations, transmission pipelines,elevated tanks alnd distribution systems. These standards are now underreview and should be published, in August 1970. INPES does not haveofficial standards, even though criteria for clesign and construction areuniform in the rural water supply and sewerage program.

85. Standards for constructiorl materials are prepared by the InstitutoColombiano de Normas Tecnicas (INCONTEC), the national bureau of standards.Specifications for construction and equipment are based to a large extenton locally produced goods, American or European specifications beingadopted for the imported components of projects.

86. Recent studies to increase treatment plant capacity through higherfiltration rates have been undertaken in Bogota, Cali, Cucuta and Pereiraand one study is prograirmied for Popayan. The benefits of this type ofinvestigation cannot be overemphasized, since doubling the production offilters, as appears feasible in most plants, is a low-cost way to expandtreatment facilities.

87. Inlet and outLet structures of settling tanks in plants suggestperformance studies. Improperly designed perforated walls at the entranceand extremely high discharge rates (ratio of flow/unit length of weir) inoutlet weirs may substantially lower sedimentation efficiency.

88. A problem occurring in some towns is the small capacity of storagetanks which fail to meet peak demands.

89. Bidding procedures for construction in INSFOPAL were set out inofficial rules dated 1965. A mathematical formula relating INSFOPAL's costto bidder's cost establishes an "ideal" cost for the particular job. Thewinning bid is the one closest to this ideal figure. The result is thatthe lowest evaluated bid may not win the award and a formula is substitutedfor professional judgment. It bypasses difficulties experienced in the past,caused by bidders who were not qualified and who the evaluators did not feelable to eliminate.

90. Preventive maintenance is not practiced, even in many of thelarger Empresas. Because of the lack of maintenance, unaccounted for water(difference between water produced and billed) ranges from an estimated 30percent to 60 percent. Only Bogota is conducting a leak detection study tolocate and prevent excessive losses.

91. A typical example of large-scale loss occurs in the town of Armenia.Out of 1.2 million m3 of water produced monthly, only 612,000 m3 are accountedfor. The main causes of the situation, in order of importance, are leaks inthe system, defective or insufficient meters, and illegal connections. More-over, laxity in collection has caused an increase in the amount of delinquentaccounts.

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92. Production meters are generally not installed and many of thoseinstalled do not work properly. Therefore, neither production nor consump-tlon of water is known and losses can only be estimated. The missionstrongly recommends that this situation be corrected, at least in the largertow¢ns, where the dollar value of water losses is much higher than the costof corrective measures.

93. Water Quality Control. The 1953 National Sanitary Code of theMinistry of Public Health is currently under review by a group of specialistsappointed by the Government. Until a new Code becomes available, waterquality standards as described in Articles 8 and 14 of the 1953 Code, andp:rocedures for treatment plant operation control referred to in Articles 17andcl 18, constitute the basic references for water quality control. How-ever, neither INSFOPAL nor the Ministry of Public Health exert sanitarycontrol over water supply systems, due to lack of both facilities andstaff.

9h. The attit;ude of these two agencies toward water quality controlis passive; apparently they rely on the ability of a system's operators toproduce safe water. At the same time, many consumers are satisfied if wateris provided in some quantity and they do not worry about its quality.

95. The mission recommends that the Ministry of Public Health andIN,FOPAL seek the collaboration of the United Nations Development Programand the Pan American Health Organization to establish a central control andreference laboratory.

96. Besides performing normal functions in water quality control, thecentral laboratory should be a training and research center. The collaborat-ing international agencies would provide the experts, supplies and equipment,while the Colombian Government would provide the local staff and facilities.

97. Regional laboratories also should be established as the needarises, to form a network of water quality control agencies throughout theco ant ry.

98. Ground Water. Colombia has two large rivers, the Magdalena andthe Cauca, which drain a large portion of the country and provide readilyaccessible surface sources of water supply. However, in some regions groundwater should be a more economical source as surface waters are distant and/orli3mited. Ground water potential should be assessed in -the States of Guajira,Magdalena, Atlantico, ]Bolivar and Sucre. So far, only a few studies made byTN,ORiA in the Gua-jira peninsula, CVC in the Cauca valley and CAR in theBogota area have explored the possibility of econormically feasible groundwater use in Colombia.

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D. Water Tariffs

99. The tariff policy for water/sewer services was established inDecree 3069 of December 16, 1968, which created the National Public ServicesTariff Board (Junta Nacional de Tarifas de Servicios ?ublicos) as part ofPlaneacion. The Board is instructed to follow two criteria in setting thetariffs:

(i) Insure the protection of the entity's assets and generatenational saving (ahorro nacional) through tariff levelsthat cover real costs of services and provide a rate ofreturn on assets, with the objective of facilitatingfinancing of future programs.

(ii) Set tariffs which take into account the ability to payfor services in the different sectors of society, parti-cularly those with low incomes.

100. The practical result of applying both these criteria to urbanwater/sewer systems is a complex multiple-tariff system under which a minimumamount (usually 15-30 m3/month) of potable water is subsidized as a necessarysocial good; amounts above the mininum are considered an economic good, withthe tariff set to cover the total cost of production.

101. In the rural areas, with their very low per capita incomes, onlya portion of a systems capital cost is to be recovered from charges forservices. Depending on per capita income in each case, the element ofsubsidy ranges between 60 percent and 100 percent.

102. The basic mechanism for determining each class of consumer'stariff classification continues to be the assessed value of his property(avaluo catastral). Three classes of consumers are generally established:domestic, cornercial/industrial, and special consumers (official, non-profitinstitutions). For each class a number of categories is defined, accordingto the assessment of property valuation. The number of categories varieswidely, as indicated in the table below.

Table 10.

Town No. of Categories

Bogota 8Medellin 8Cali 12Barranquilla 26Cucuta 8INSFOPAL's towns 4 to 15

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103. Sewer tar-iffs are based on a variable percentage of the waterbill, ranging from 10 percent to 60 percent.

104. Of 300 to 400 tariff studies expected to be prepared by INSFOPALin 1969, not one was submitted to the Board. The Board took the initiativeto collect information in 86 systems of the Cundinamarca Sectional Branchof INSFOPAL, as well as in 40 other communities. Tariff studies for all126 systems were made by the Board's staff and are ready to be acted upon,once INSFOPAL submits a formal request on behalf of these systems.

105. After studying proposed tardiff increases, the Board recommendsthem to the National Council for Economic and Social Policy, which is empoweredby law to authorize the new tariffs. Implementation, however, is left to thediscretion of the municipal councils.

106. Some delegation of tariff-setting power to at least the largerEmpresas should be considered. Delegation of authority might be granted tomake changes within certain limits, with the Board retaining its right toreview all changes.

107. The main objective of the National Boardts tariff policy shouldbe the attainment of positive rates of return on net revalued assets, whichwould enable the financing of a system's expansion without budgetary sub-sidies. To achieve this objective, the Government should eliminate operatingsubsidies and limit construction grants. Authorization of external andirnternal financing could be used to enforce a tariff policy which wouldaccomplish this main objective. Excceptions from this policy should be con-fined only to special cases where for reasons peculiar to the localityopetrating costs are unusually high.

III. SUMMARY AND CONCLUSIONS

108. Four agencies determine the role of the water supply/sewagesector in the Colomibian economy:

Municipal Public Companies (Empresas)National Insti-tute for Municipal Development (INSFOPAL)National Institute for Special Health Programs (INPES)National Planning Department (Planeacion)

109. These agencies set policy, control investments, recommend tariffs,plan for future sector requirements, and design, build and operate systems.The last three named are agencies of the central Government, with their head-quarters in Bogota. Sevrenteen of the 21 municipal public companies are incities whose population exceeds 70,000. Communication among the four groupshas been poor until recently, making comprehensive national sector planningdifficult, if not impossible. In 1969 studies and surveys initiated byPlaneacion started a large-scale collection of information about the situa-tion prevailing in the sector, and nationwide planning objectives will beproposed late in 1970.

110. Sector plans must consider urban centers (defined as concentrationsof 2,500 persons and larger) as well as rural areas. Urban centers have anestimated 13.0 million people and are growing at a rate of 5-5.5% annually.Currently about 8.7 million urban residents have water service, with a smallerand undetermined number having access to sewage collection lines. About one-f'ourth, or 2.2 million, of the rural inhabitants have water service, withabout the same percentage estimated to have some type of sewage collectionfacilities. The rural population growth rate is estimated to be 1.2 percentannually. Thus, of the overall population, the number not served by anorganized water supply system is estimated to be 4.3 million in the urbancenters and 6.4 million in the rural areas.

111. In the larger cities served by municipal public companies, thebacklog of unserved population is slowly being reduced, even with the highpopulation growth rate. In the rural areas also the backlog is being re-duced, but at a slower rate. The critical portion of the sector is foundin the towns and smaller cities under INSFOPALts jurisdiction, where thebacklog of population not served is increasing.

112. The mission was not able to make estimates for sewer services.However, the investment needs for sewer services are thought to be in theorder of two times investment needs for water services.

113. The information required to make more precise estimates of thesituation in the sector is being gathered by Planeacion, in conjunction withother agencies. Questionnaires were sent to 779 communities in 1969 andreplies should be tabulated and analyzed by August 1970. The main objectiveof the survey is to quantify present deficits in water supply and sewerservices and make a first approximation of sector investment needs. Awater tariff study was begun in April 1969, but due to difficulties encountered,its scope was changed early in 1970; results are expected in July 1970.

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114. Investment in water supply/sewerage facilities increased fromUS $21.6 million in 1965 to US $42.4 million in 1969; three-fourths ofthe 1969 investments were made by the Empresas. According to Colombianp:Lans, investment in the sector should reach US $100 million for 1975.

L15. Factors adversely affecting a large number of agencies operat-ing in the water supply/sewerage sector are (a) the absence of programp:Lanning, as related to budget resources, to achieve proposed objectives,and (b) the absence of long-range engineering and investment plans andprograms. Projections for the Empresas are realistic, but expansion plansof INSFOPAL and INPES are based on rates of investments much higher thanthose maintained in the past five years.

116. The capacity to finance direct investment programs with intern-ally generated resources is low in the EMPPRSAS and nil in INSFOPAL, due*toD inadequate tariffs. Even if the tariffs were raised, there would stillbe need for external credit. For many systems, external assistance wouldhave to be mobilized through a single national agency, acting as an inter-mrediary between the international credit institutions and multiple individla.1recipients of funds.

117. The National Board's tariff policy should be geared to the attain-m3nt of positive return on net revalued assets, in order to finance expan-sion without excessive budgetary assistance. To achieve this objective, thecentral Government should limit construction subsidies to the agencies andeliminate operation and maintenance subsidies. The power to authorizeexternal and internal financing should be used by the Government as a meansto obtain adequate tariffs.

118. Interna-tional loans are also dependent on a steady flow of high-quality feasibility studies, which would assist Planeacion in the selectionof priority projects and would support loan applications.

119. With the exception of Bogota, direct investment for sewerage isbelow the needs of the rapidly growing population. Since sewage andindustrial wastes are not treated, the receiving bodies of water may becomeseriously polluted in the near future, particularly in the highly indus-trialized areas.

120. Technical assistance is required in most of the agencies operat-ing in the sector to correct design criteria and operation and maintenanceprocedures, particularly as reflected in the high percentages of unaccountedfor water and the low percentages of meters installed and working properly.

121. A comprehensive plan for training and educating professional ancl.auxiliary personnel is needed if the demand for services is to be met. Asurvey of the existing labor force should be made by Planeacion and projec-tions of needs, according to the Empresas' expansion plans and those ofINSFOPAI, and INPES, should guide the universities and SENA in the programmingof their courses.

122. Imported equiipment is used in the larger systems, particularlyin water treatment plants, pumping stations and special type facilities.A large percentage of construction material and equipment f'or medium-sizeand smaller systems is manufactured in Colombia; with few exceptions,quality appears to be good and prices are competitive with those in theinternational market.

123. The Ministry of Public Health and INSFOPAIL should seek thecollaboration of the LUTDP and PAHO in the establishmei-t, of a central convroland reference laboratory; besides performing the usual functions in waterquality control, -the proposea.l. laboratory shotuld. become a training andresearch center. Regional laboratories also should be established, as theneed arises, to f'orm a network of control units throughout the country.

PART II - PREINVESTMENT STUDIES

I. STUDIES COMPLETED OR IN PREPARATION

124. Since the cities for which preinvestment studies are completedor in preparation have water supply and sewage disposal systems, all pro-jects are expansions and improvements of existing facilities. In Caliand Medellin the studies are directed toward future water supplies inanticipation of continued rapid urban growth. In the other cities thestuclies are oriented, toward the task of eliminating the backlog of un-served residents and. businesses. Studies for 30 towns under INSFOPAL'sjur-iLsdiction are directed to correct situations of acute water and sewerageshortages.

125. In most instances the studies for the medium-size cities coverthe technical aspects of the problem well and the administrative, financialand economic situation less adequately.

126., All studies were prepared by consultants, usually in a jointventure between a Colombian and a foreign firm.

127.. Severe administrative and financial problems are a factor inthe possibility of support of INSFOPAL. However, the Colombian Governmenthas indicated a desire to seek external financing for all projects resultingfrom the studies listed.

128. Medellin's plans are not known with certainty, but previousassistance from IDB indicates the Empresa may seek additional assistancefrom that institution. Studies for Cartagena, Manizales, Pereira, Neivaand Tulua have been reviewed by the Bank and may be appraised in late 1970.

129. Annex. 5shows a complete list of studies recently completed orin preparation.

II. PROPOSED STUDIES

130. Study data sheets and data supplements shown in Annex 6 corres-pond to four studies investigating aspects of water/sewerage systems, whereefforts are urgently needed to improve the existing situation.

131. INSFOPAL's administrative rationalization is the most urgent stepto be taken towards the improvement of the institution's operational capacity.Without organizational changes it would be difficult for INSFOPAL to assumethe responsibility of providing services at the rate needed to decrease theexisting backlog of water supply and sewerage systems under its jurisdiction.

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132. Santa Marta and its neighbor Rodadero are important tourist areaswith inadequate water distribution and sewerage facilities, although watersupply is reported sufficient. Immediate works are needed to remove themost pressing deficiencies.

133. Ground water supply should be a less expensive source for theAtlantic Coast than surface supplies, which are limited and/or distant inmost of the area. However, little is known of the quality or quantity ofavailable underground waters and an exploratory study is necessary, thescope of which must be ascertained by a preliminary field investigation.

134. Also proposed by the mission is a survey of water losses in thesystems of the 10 largest towns under INSFOPAL. The reduction in waterleakage should pay for this study on a reasonable time basis.

135. It is expected that the Comprehensive Tourism Survey of Colombiawill identify major environmental sanitation needs and the scope of therequired feasibility studies necessary to plan and justify remedial works.These studies would then be undertaken as one or more water supply andsanitation studies.

PART III - PROJECT LIST

136. Annex 7 lists projects submitted to the National Planning Depart-ment requiring both internal and external financing.

137. Project Chingaza I has been prepared to supplement water supplyfor the Bogota's metropolitan areas. The design contemplated three stagesof construction to be completed in 1975.

138. The second stage of the Bogota Public Utility's sewerage planwill be financed with internally generated funds. The first stage, whichis now completed, was partly financed with $ US3.5 million of AID counter-part funds.

139. Cartagena's water supply project should reduce the existing seriousdeficit in the population served. The transmission line will be increased incapacity, intermediate pumping stations will be built, and distributionsystem and treatmen-t facilities will be expanded. This project may be partlyfinanced by industrial consumers, since industrial needs demand immediateattention. Feasibility studies were completed in September 1969.

140. Manizales financed equipment for a water treatment plant and pipesfor a transmission line, through a loan from the Federal Republic of Germany.Colombian funds are needed for construction work and a new loan is requiredfor expansion of the water distribution and sewage collection systems.Feasibility studies for the sewerage system were completed in October 1969.Those for the distribution network are expected to be available in 1971.

141. Pereira's project covers the expansions of water treatment facilities,as well as extensions in the water distribution and sewerage collection systems.Funis requested for the first stage of the project are urgently needed, sincethe installed capacity of the water treatment plant is already exhausted. Feas-ibi:Lity studies were approved by National Planning Department in November 1969.

142. The water treatment plant in Neiva is operating well above itsrated capacity. An agreement with INSF:F'T-calls for this agency's assistancein the construction of the new intake structure, transmission line and excpan-sion of the water treatment plant. The proposed loan covers extensions andimprovements in the water distribution and sewerage systems. Feasibilitystudies were finished in October 1969.

143. The Tulua project proposes the construction of two pumping stations,as well as expansions in the water distribution network and sewerage system,to eliminate existing service deficits, which affect primarily new urbandevelopments. Feasibility studies have been approved since late 1968.

144. Studies for 19 towns under INSFOPAL's jurisdiction have been pre-pared and were recently submitted to FONADE for review and approval. Accordingto Annex 7, page 2, 15 projects are for water supply and the remaining 4 arefor sewerage systems.

145., In Armenia, a new river intake structure, a transmission line andan increase in treatment facilities are needed. Also the Utility must replacecorroded cast iron pipes and make large extensions both of the water distribu-tion network and sewerage system. Feasibility studies started in December1969 and should be completed by the end of 1970.

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146. A critical water shortage exists in Villavicencio, due to a rapidpopulation growth. The capacity of existing sources of water is now in-adequate, particularly in the dry season, when a large percentage of thepopulation does not have service. A water treatment plant is needed, aswell as expansions in the distribution system and sewerage system. A feas-ibility study is in progress and should be available in June 1970.

147. Engineering studies have been made in Barranquilla for sewagecollection and disposal, as well as for storm water drainage. Even thoughflood damage is substantial, the project submitted to the National PlanningDepartment covers only the expansion of the sewerage system.

148. A sewerage master plan for Medellin was prepared in 1965, but nolarge scale construction has been started to date. The present system istotally inadequate, covering only a small part of the urban area. TheMedellin Municipal Public Utility recognizes the need for external financing,but has not yet decided to submit a request for such assistance to theNational Planning Department.

ANNEX 1

Municinal Public Utilities Onerating in thew'ater Sunnly/Sewage DisDosal Sector

T,stimated PoDulation under ' PopulationUtqLiIty Jurisdiction (thousands) Connected

Bngot,a 2,4h0 80.0

T4edellin 1,025 77.0

Cali 950 80. 7)

Barranquilla 640 B4.0

Bucar'amanga 305 82.0

Cartagena- 295 90. 9

'..ani.zales 270 52.D

2ucuta 29- 8- 1

e-eira 200 79.9

Armenia 18o 67.0

.almira 14• 89.O

1onteria 115 60.0

Neiva 110 83.0

Buca 91 7T. 9

'ulua 77 72.D

Cartazo 72 75.'

'Tillvicencio 79 79

cwa.m,so h8

ailrca 39

-. a 22

Garzon 17

ANNEX 2

AGUAS, Direcciones Seccionales andAffiliated Water Agencies Under INSFOPAL

ACUAS Number of Subscribers - Dec. 1969

1. Acuantioquia 47,3032. Acuatlansa 1,,3963. Acuabol 6,927

4. Acuacordobo 1D,113. Acuadelma 23,971

6. Acuanarino 22,9097. Acuanorte 11,759d. Acuasur 27 ?,60)79. Acuatolima 36,3721). Acuavalle 24,710

Direcciones Seccionales

1. Boyaca 21,2092. Caldas 13,16!3. Caqueta 3,1784. Cauca 8,283

Cezar 9,6916. Cundinanarca 26,284

7. Choco 2,2098. Guajira 8,271g. Huila 9, 841%. ?leta 3,39011. ^uindio 3,37612. Risaralda 3,310

13. San Andres r

lLt. Sucre 7,926

Affiliated ,NWater Agencies

1. Ponayan 10,176

2. Girardot 7,8083. Buenaventura H,573

L. Santa Rnsa del Cabal 3,h89.. Parn1ona 3,12D

6. Leticia 636

ANMEX 3

Percentage of Population With Water Services - Ten LargestTowns Under the Jurisdiction of INSFOPAL, 1970

Estnmated 1)?7) Population ')oculation''-'GIS Is (thousands) with services

I'tL ^ue 183 6).

Sant,a .larta 133

Itami ~~~~~~~131,1

iasto 11) ! J

13:1rLaventura n.6

Va l].edunar

Bao •rancaberneja 88 6).)

Gi ~ardot 88

!-'o.-yan 7 Y 90.!)

iZw'i.Cracto 67

ANNEX 4

Inter-American Development Bank's Loans to Colombiain the Water Supply/Sewage Disposal Sector, 1961-69

Loan Contract Agency Purpose Amount (US$)

1. 6-OC/CO Empresas Publicas de Medellin Water supply 5,230,724

(June 6, 1961)

2. 9-OC/CO Empresas Publicas Municipales Water supply and 6,000,000

(October 17, 1961) de Cartagena sewage disposal

3. ll-TF/CO Empresas Municipales de Cucuta Water supply and 5,183,000(February 3, 1962) sewage disposal

4. 9-TF/CO Empresas Municipales de Cali Water supply 2,454,000(April 9, 1962)

5. 23-SE/CO INSFOPAL Water supply and 2,500,000

(August 21, 1962) sewage disposal

6J. 37-TF/CO INSFOPAL Water supply and 8,095,379

(August 21, 1962) sewage disposal

55-SF/CO Empresas Publicas de Medellin Water supply 4,750,000

(September 30,1965)

179-OC/CO Empresas Publicas de Medellin Water supply 3,300,000(October 11, 1969)

9. 22a-SF/CO Empresas Publicas de Medellin Water supply 5,700,000

(October 11, 1969)

COMPLETED ANDM CURRENT PREINVESTMENT STUDIES

STUDY.N1ME OFl STnTnv BTTTflY SP0f\TRSCn TTMTITG TTPTTP(V AVATTABT. R.FPORTS

AND SPONSOR'S IDENTIFICATION DOMESTIC FOREIGN START COMPL. (US$ EQ.) LANG. VOL'S. STAT.

Palmira Water & Sewerage (Fondo Fonade AID Aug. Sept. 72,000.00 SpanishNacional Para Proyectos De '67 '68 & one complDesarrollo) English

Tulua Water & Sewerage (Fonade) Fonade AID Mar. Sept. 66,000.00 Spanish'67 '68 & one compl

English

Bucaramanga Sewerage and Erosion Feb. Nov. 146,250.00 SpanishControl (Fonade) Fonade ATD '68 '68 & two compl

English

3rd Stage Water for Cali (Fonade) Fonade - Feb. Sept. 296,000.00 Spanish six part'69 '69 compl

Pereira Water & Sewerage (Fonade) Fonade AID Feb. Nov. 103,100.00 Spanish'68 '69 & two compl

English

Neiva Water & Sewerage (Fonade) Fonade AID Feb. Oct. 50,000.00 Spanish'68 '69 & two compl

English

Cartagena Water (Fonade) Fonade AID Feb. Sept. 104,600.oo Spanish'68 '69 & one compl

English

Manizales Sewerage (Fonade) Fonade AID Feb. Oct. 42,000.00 Spanish'68 '69 & two compl

English

New Water Sources for Medellin Fonade AID May Apr. 161,000.00 - - in pre-(Fonade) '69 '71 paration

(D

COMPLETED AND CURRENT PREINVESTMENT STUDIES (Cont'd)

STUDYNAME OF STUDY STUDY SPONSORS TIMING BUDGET AVAILABLE REPORTS

AND SPONSOR'S IDENTIFICATION DOMESTIC FOREIGN START COMPL. (US$ EQ.) LANG. VOL'S. STAT.

Villavicencio Water & Sewerage Fonade AID Dec. Jun. 52,800.00 - - in pre-

(Fonade) '69 '70 paration

Armenia Water & Sewerage (Fonade) Fonade AID Dec. Dec. 111,200.00 - - in pre-'69 '70 paration

Palmira Water & Sewer Designs Fonade - Apr. Dec. 124,400.00 - - proposed

(Fonade) '70 '71 beingstudiedD.N.P.

Manizales Water Dist. Network Fonade - Jun. Jun. 27,800.00 - - to be

'70 '71 contrated

Towns of INSFOPAL Fonade - 65o,ooo.oo to be

(Fonade) contracted

rORM No. 386 INTERNAT'eONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ANNEX 6(11-69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION Sheet 1

PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: 6_1 (1)

IArea: Country: Sector(s):

South America |Colombia Water Supply and Sanitation

1. NAME OF PROPOSED STUDY: INSFOPAL ORGANIZATION AND OPERATIONS STUDY

2. PURPOSE:

To rationalize administrative, managerial and technical aspects of INSFOPAL'soperations and organization.

3. SCOPE:(a) Analyze the present organizational structure, staffing, operation and finances of

INSFOPAL.(b) Identify deficiencies and assess alternative methods of improving the efficiency

and effectiveness of INSFOPAL.(c) Prepare a phased program for organizational changes needed to improve operations.(d) Recomnmend methods and criteria for general and cost accounting, financial analysis,

billing and collection, water and sewerage rates, data processing, personneladministration, procurement and stores, planning and programming, bidding andcontracting, standards and specifications, construction control, operation and maintenan e.

(e) Prepare an operational manual for use by INSFOPAL staff, covering its most importantfu~nctions.

L. BACKGROUND: (a) Related Studies (b) Other Available Data {c) Expected Data Problems

Water Distribution Systems Performance (6-4)

5. TIMING: (a) Duration and Phasing of Study 17 months (b) Desired Starting Date 1970

(1) Diagnosis: 1 month (5) Observation: 6 months(2) Recomiendations and Manual: 2 months (6) Evaluation: 1 month(3) Implementation of recommendation: 6 months(h.) Review of Manuals: 1 month

6. COMMENT ON POTENTIAL STUDY SPONSORS:

This study may be sponsored jointly by INSFOPAL and FONADE. The Pan American HealthOrganization might collaborate with the Colombian agencies.

7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known):

(a) Description (b) Estimated Investment (US$ equivalent)

Major projects in water supply and sewagedisposal in urban communiities under the (c) Financing Need and Potential Source

jurisdiction of INSFOPAL.

8. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): Sheet Prepared by: I. Duarte Filho

$2Z5o,ooo Dept. or Agency: PAHO cons. to IBRD/PUPDDate: June 11, 1970

9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Sheet Revised by: J.F. Hurlebaus

H-igh priority should be given to the study due to Item(s) Revised: 3(a) and 6basic deficiencies existing in INSFOPAL, which am Dept. or Agency: P UT P WS IIa major obstacle for investments. .a.

f Date: Oct. 5, 1970.1~_

FoRM No. 385.01 INTERNATIONAL DEVELOPMENT NTERNATIGAL BANK FOR . INTERNAT7ONAL FINANCE AtEX 6( 1 1-69) ASSOCIATION RECONSTRLCOTIQN AND DEVELOPMENT CORPORATION sheet 2

PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT Ho.: 6-1 (2)(to be filled in when possible)

1. TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months

(a) Foreign Professional Staff:PrOjeCt Manager 1 16Organization Specialist 1 2Personnel AdTinis-rstioen Specialist 1 2Data Processing Specialist 1 3Procurement & Stores Specialist 1 2Planning & Programming Specialist 1 3Bidding & Contracting Specialist 1 2(x) See below 7 (x) i6 (x)

Total: 46

(b) Local Professional Staff 14 46

(c) Local Supporting Staff : _

2. TENTATIVE STUDY BUDGET (USt equivalent) Foreign Local TotalCurrency Currency Toa

(a) Professional Staff Casts : US$200,000 $50,000 $250,000(b) Equipment. _ _(c) Other (Travel. non-prof, staff, etc. ): - _

(c) Total Us$200,000 $50,000 $250,000

3. OTHER COWMENTS (x) continued from item 1 above: TotalNumber of Team N;an-Months

Standard & Specifications 1 2Construction Control 1 3Operation & Maintenance 1 3Accounting 1 2Financial Analyst 1 2Billing & Collection 1 2Water & Sewerage rates 1 2

7 16

Supplement Prepared by: J. Duarte FinhoCept. or Zgency:FAHC -cons. To 13BrFLTE'Date: june 11, 1970

Supplement Revised by: _

Item(s) Revised:

Dept. or Agency:

Date:

fRr! No 386 INTERNATiONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ANNEX 61 t 1- 691 >ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION Sheet 3

PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: 6-2 (1)

,Area: Country: Sector(s):

South America Colombia Water Supply and Sanitation

I. NAME OF PROPOSED STUDY: WATER SUPPLY AND SEWERAGE, SANTA MARTA - IMMEDIATE MEASURES

2- PURPOSE: To determine the water supply and sewerage works which are urgently requiredin the cities of Santa Marta and Rodadero.

3. SCOPE:7 (a) Assess existing water supply and sewerage facilities.(b) Project immediate and near term demand for these services.1c) Identify most urgent existing deficiencies, study alternative solutions and select

project elements.(d.) Prepare preliminary engineering designs with estimates of construction cost

(25~ accuracy), time schedule for implementation, economic analysis and financialforecasts.

'4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems

(3) Existing studies by INSFOPAL.(2) Conrorehensive Tourism Survey of Colombia (Study 9-1).

5. TIMING: (a) Duration and Phasing of Study (b) Desired Starting Date 1970

Collection of field data: 2 monthsStudy of solutions: 2 monthsPrenaration of project and report: 1 month

Total 3' months6. COMMENT ON POTENTIAL STUDY SPONSORS:

Fan-American Health Organization; INSFOPAL; FONADEThis study can probably be undertaken most expeditiously by a Colombian counselling firm.

7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known):

(a) Description (b) Estimated Investment (US$ equivalent)

Wlater supply and sewerage project.(c) Financing Need and Potential Source

8. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): Sheet Prepared by: I. Duarte Filho

$330300 Dept. or Agency:PAHO cons. to IBRD/PUFDDate: May 1970

9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Sheet Revised by: C. MorseSanta Marta and environs have enough supply but Item(s) Revised: allinadequate distribution and storage facilitiesrestrict service and hamper tourist development. Dept. or Agency: PUPD

Date: June 11, 1970

FoRP'. No. 386.01 INTERNATIONAL DEVELOPMENT INTERNATIONAL BMAK FOR INTERNATICNAL FINANCE A(11-69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION Sheet 4

PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 6-2 (2)(to be filled in when possible)

i. TENTATIYE STAFFING Type of Specialist Number on Team Total Man-Months

(a)XIof.io Professional Staff: Sanitary Engineer 2 10

Total:

(b) Local Professional Staff

(c) Local Supporting Staff : Ihraftsmsn, et al 3 15

2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local TotalCurrency Currency

(a) Professional Staff Costs 26,000(b) Equipment 2, 000

(c) Other (Travel, non-prof. staff, etc.): 2,000

(d) Total 30,000

3. OTHER CGt4EHTS

Supplement Prepared by: I. IDuarte FilhoDept. or Agency: PAHO cons. to IBRD/'FUPDDate:-May 1970

Supplement Revised by: C. Morse

Iten(s) Revised: all

Dept. or Agency: PUJPD

Date: June 11, 1970

ANNEX 6FCR:,.i No. 386 INTERNATtONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE

11-691 ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION Sheet $

PREINVESTENT PROGRAM - STUDY DATA SHEET No.: 6-3 (1)

Area: Country: Sector(s):

South America Colombia Water Supply and Sanitation

1. NAME OF PROPOSED STUDY: GROUND WATER DEVEOPMENT IN THE ATLANTIC COAST

2. PURPOSE:

To assist the Colombian Government in assessing ground water resources in the states ofGuajira, Magdalena, Atlantico, Bolivar, Sucre and Cordoba.

3. SCOPE: This study would cover the provinces mentioned in 2 above, excluding the area tobe covered by Study 6-5. Phase I would assess the need for the groundwater study,establish its scope, and prepare terms of reference and cost estimate for Phase II, whichr would include the following types of works:(a) Fiel]. investigation to collect hydrologic, meteorologic and hydrogeologic data.j (P' Analy-ses of water quality.(c) Test drilling for depth and productivity of wells.,d) Training of well drillers.(e Selection of communities which would use ground water for their supply.

4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems

(I) The proposed study supplements thosemade by INCORA and INDERENA in verylimited regions of the Atlantic Coast.

'2) Comprehensive Tourism Survey (9-1).(3) Morth Coast Region Water and Sanitation

Plan (6-5)

5. TIMING: (a) Duration and Phasing of Study (b) Desired Starting Date 1 971

?hase_: 3 monthsIPhase IT: about 36 months

'otal : 42 months (including 3 months for contract preparation prior to Phase II)

6. COMMENT -ON POTENTIAL STUDY SPOHSORS:

INSP?OPAL and appropriate Municipal Public Companies, UNDP in conjunction with Pan AmericanHealth Crganization.TNCE!0IINAS for Phase II

7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known):

(a) Descrip'ion (b) Estimated Investment (US$ equivalent)

Water supply for towns in Atlantic coast regionin the INSFOPAL program, as well as Municipal (c) Financing Need and Potential SourcePublic Utilities in the area.

8. ORDER OF MACNITUDE OF STUDY COST (US$ equivalent): Sheet Prepared by: I. Duarte FilhoPhase I ?37,000 Dept. or Agency: PAHO cons. to IBRD/PUPD

I Phase II to be determined by Phase I Date: June 11, 1970

9. STAFF'S CO0IENT ON PRIOR TY RANKING OF STUDY: Sheet Revised by: J. F. Hurlebaus

In view of the economic importance of the Atlantic Item(s) Revised: 3(a) & 6coast, particularly the seaports and tourist resorts, Dept. or Agency: PUTP WHIIthe study should receive a high priority ranking. Date: October 5, 1970

Date:I Ocoer5 17

PrcM No. 386.01 INTERNATIONAL OEVELOFQMENT INTERNATIONAL BA'N FOR INTERNATr(AL FOXANCE A NNX 6r:1 69i ASSOCIATION REC:ONSTRUTICT1 AND CEVELOPM_NT CORPOSATI Ie 6

Sheet -6PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 6-3 (2)

(to be filled in when possible)

I. TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months

(a) Foreign Professional Staff:

Hydrogeologist 1 3Sanitary Engineer 1 3

Total: 2 6

(b) Local Professional Staff : 2 6

(c) Local Supporting Staff : _

2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local TotalCurrency Currency

(a) Professional Staff Costs : US$24,000 $6,000 $30,000(b) Equipment _ _ _

(c) Other (Travel, non-prof. staff, etc.): 5, 0O0 2,000 7,000

(d) Total US$29,000 $8,000 $37,000

3. OTHER COMMENTS

Fhase IT rnight cost $2,000,00D including drilling equipment and take three years toc omnle te.

Supplement Prepared by: I. Du.arte FilhoDept. or Agercy: PAHCj cons. TBIRD/PUPIDate: Juie 11, 1970

Supplement Revised by:|

Item(s) Revised-

Dept. or Agency:

Date:

FIRkM No. 386 INTERNATIONAL DEVELOfPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ANNEx 611- 69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION Sheet 7

PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: 6-1i ( 1)

Area: Country: Sector(s):

south America Colombia Water Supply and Sanitation

1. NAME OF PROPOSED STUDY: 'WATER DISTRIBUTIONS SYSTEMS PERFORMANCE

2. PURPOSE: 7o evaluate the performance of water distribution systems in the ten largesttowns uncder the jurisdiction of INSFOPAL, by identifying the amount of water losses andlocation of main leaks.

3. SCOPE: This study comprises water distribution system surveys in the towns of Ibaque,Santa Marta, Itaqui, Pasto, Buenaventura, Valledupar, Barrancabermeja, Girardot, Popayanand Env:`gadc. The scope of work to be performed includes:(aK ReviE!w of procedures and criteria used by INSFOPAL in the selection and use of water

meters.(h) Installation of production and domestic meters as needed.(c) Comparison of production and consumption of water to obtain losses.(d) Preparation of a program for leak detection and correction.Ke) Ana:Lysis of quality of water in distribution system.

4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems

IN'FOPAL organization andoperations study (6-1)

Tl\.IING: (a) Duration and Phasing of Study (b) Desired Starting Date 1971(1) Review of procedures & criteria: 2 months

(2) %:eters installation: 3 months(3) Observation of production &k consumption: 10 months(14)) Preparation plan of operations & report: 1 month

Total i 16 months6. CO!MMENT ON POTENTIAL STUDY SPONSORS:

Study may be sponsored jointly by INSFOPAL and FONADE.

7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known):

(a) Description (b) Estimated Investment (US$ equivalent)

Projects for expansion and improvement ofwater/sewerage systems in all of the ten (c) Financing Need and Potential Sourcetowms inirolved in the study.

8. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): Sheet Prepared by: I. Duarte Filho

Dept. or Agency: PAHO cons. to IBRD/PUPD

o 09 00W Date: June 11, 1970

9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Sheet Revised by: J. F. Hurlebaus

Item(s) Revised: 3(e) added

Dept. or Agency: PUTP WS II

Date: October 5, 1970

VORy No. 3.01 iNTEPNAT\NAL DEVELOJPMENT iTERATIONAL Btr FOR INTEPNK'CI'NAL FINkNCE ANEX 6(i1-69) ASSOCIATION RECONSTRUCTINtJ AND-DEVELQPMENT CORPORATION Sheet &

PREINVESTMENT PROGRAM - STUDY DATA SUPPLENENT No,: 6-4 (2)(to be filled in when possible)

1. TENTATIVE STAFFING Type of Specialist uhurber en Tean Total Han-Months

(a) Foreign Professional Staff: Project Manager 1 16Water ietering 5 30Leakage detection 2 12

Total: 8 _a

(b) Loca\ Professional Staff : 8 5B

(c) Local Supporting Staff

2- TENThTIVE STUDY BUDGET (US$ equivalent) Foreign LocalCurrency Currency Total

(a) Professional Staff Costs US$ 230,000 S 60,000 $8290,000(b) Equipment * 120,000 70,0DO 190,300(c) Other (Travel, n3n-prof. staff, etc.): 10,003 10,000 20,009

(d) Total D s$360,0o0 $1o0,000 $$oo,ooo-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

3. OThER COMMEFTS

(*,) feters and tools.

The implementation of the program of leak detection and connection will requireexpenditure by the water supply systeT -for personnel on a permanent basis.

Supplement Prepared by: I. Duarte FilhoDept. or Agency: PA}(0 cons. to IBRD/FUFDDate: Apr1l 16, 1970

Supplement Revised by:

Dtepts. Revised:

Dept. or Agency :Rate

FoRU No. 386 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ANNEX 6(1 -69I ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION M.heet 9

PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: 6-5

IArea: Country: Sector(s):

South America Colombia Water Supply & Sanitation

I. NAME OF PROPOSED STUDY: WATER SUPPLY AND SANITATION IN NORTH COAST REGION

2. PURPOSE: To determine the technical and economic feasibility of high priority water supplyand sanitation projects in the North Coast Region of Colombia, as needed to upgrade healthand environmental conditions for the tourism trade and for the resident population of urbanand rural areas in the region.

3. SCOPE: Tha scope of these studies is to be determined by the development program for theNorth Coast Region, to be prepared by the COMPREHENSIVE TOURISM SURVEY OF COLOMBIA(Study 9-1). The studies may cover the expansion and improvement of municipal and ruralwater supply and sewerage systems, beach and bay pollution control measures, food marketingand distribution, methods and facilities for solid waste disposal, vermin control, andother san*aitation provisions required in the areas where tourism development is contemplated,from Cartagena Bay to Santa Marta, including Barranquilla and the smaller communitieswithin lD miles of the sea shore.

'The approach to each project analysis should include study of alternatives,selection of projects for preliminary engineering design, and preparation of feasibilityreport, including full financial proposals and projections.

1. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems(l) Jlater Supply and Sewerage

Santa Marta - Immediate Measures* (Study 6-2)

(2) Comprehensive Tourism Surveyof Colombia (Study 9-1)

5. TIMING: (a) Duration and Phasing of Study (b) Desired Starting Date 1972

To be deternined by Study 9-1

6. COMMENT ON POTENTIAL STUDY SPONSORS:

7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known):(a) Description (b) Estimated Investment (US$ equivalent)

(c) Financing Need and Potential Source

8. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): Sheet Prepared by: C. Morse

To he determined by Study 9-1 Dept. or Agency: IBRD/PUFD

Date: May 27, 1970

9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Sheet Revised by: J.F. HurlebausThese studies should follow immediately Item(s) Revised: 5(b)upcn completion of Study 9-1.

F ~~~~~~~~~~~~~~~~~~Dept. or Agency: PUTP WS II

l Date: October 5, 1970, _______________________

ANNEX 7Page 1

LIST OF PROJECTS FOR INTERNAL & EXTERNAL FINANCING

"OWln Project Duration Est mated Cost External FinancingLi(100 dollars) (106 dollars)

Bogota Water supply (ChingazaI) 1971-1975 50.0 20.00

Bogota Sewage dispcosal 1971-1975 14.0 O

Cartagena Water supply 1971-1973 1.0 0.50

Manizales Water supply & sewerage 1971-1973 2.0 1.00

Pereira Water supply & sewerage 1971-1973 4.0 2.00

Neiva Water supply & sewerage 1971-1973 1.5 0.75

Tulua Water supply & sewerage 1971-1973 1.3 o.65

19 tomis See attached list 1971-1973 10.3 5.15under INS

Armenia Water supply & sewerage 1972-1974 3.0 1.50

Villavicencio Water supply & sewerage 1972-1974 2.0 1.00

Barranquilla Sewage disposal 1972-1974 2.0 1.00

Medellin Sewage disposal 1972-1974 5.0

/1 Of the external financing, it is estimated that 50% will correspond to foreign exchangecost.

ANNEX 7Pag-e 2

PROJECTS FOR 19 TOWNS UNDER INSFOPAL'S JURISDICTION

Town Project

1. Puerto Berrio Water supply

2. Maganque Sewerage

3. Tunja Water supply

4. Belalcazar Water supply

5. Popayan Sewerage

6. Valledupar Water supply

7. Facatativa Water supply

8. Riohacha Water supply

9. Neiva Water supply

10. Cienaga Water supply

11. Santa Marta Sewerage

12. Tumaco Sewerage

13. Ocana Water supply

14. Santa Rosa del Cabal Water supply

15. Valez Water supply

16. Sincelejo Water supply

17. Ibague Water supply

18. Cartago Water supply

19. Buenaventura Water supply