Document of

The World Bank

FOR OFFICIAL USE ONLY

j/qiAv 3/57 _..- tL) Report No. 8088-TU

STAFF APPRAISAL REPORT

REPUBLIC OF TURKEY

ANKARA SEWERAGE PROJECT

NOVEMBER 30, 1989

Country Department IEurope, Middle East and North Africa Regional Office

This document has a restricted distibution and may be used by ecipients only in the performance oftheir officiul duties. Its contents may not otherwise be disclosed without Word Bank authoization.

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CURRENCY EQUIVALENTS

100 Turkish Lira (TL) = US$0.05451835 Turkish Lira (TL) = US$1.00

(as of January 1, 1989)

FISCAL YEAR

January 1 - December 31

WEIGHTS AND MEASURES

ha = Hectare (2.47 acres)km = Kilometer (0.621 miles)1 = Liter (0.264 US gallons)1/cd = Liters per capita per daym3 = Cubic meter (264 US gallons)m3/sec = Cubic meters per second

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

ASKI = Ankara Water and Sewerage AdministrationDSI = State Hydraulic WorksGDRS = General Directorate of Rural ServicesIB = Iller Bank (Bank of the Provinces)ISKI = Istanbul Water Supply and Sewerage

General DirectorateIZSU = Izmir Water Supply and Sewerage

General DirectorateKfW = Kreditanstalt fUr WiederaufbauMA.FRA = Min:istry of Agriculture, Forestry and

Village AffairsRWS = Rural Water Supply Department

OR OFFICIAL USE ONLY

REPUBLIC OF TURKEY

ANKARA SEWERAGE PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No.

LOAN AND PROJECT SUMMARY .......................... ............ ..... . i

I . INTRODUCTION ...................................... 4............. 1

II. SECTORAL CONTEXT ...... .. . . . .. .. ........ ... . 1

Country Background . ............................. ........ 1Water and Sewerage Service Levels ...................... .......... 2Future Urban Demand for Water and Sewerage .................. ... 3Future Investment in the Sector .............. ................. 3Sector Organization ................ .............. .............. 4Constraints to Development ...... .............. . 5Previous World Bank Involvement in the Sector ................... 6Justification for orrld Bank Lending . . 7

III. THE BORROWER ................................. ................... 8

Introduction ....... ................... ... *........ . 8Organization and Staffing ....... ..... . ...... .. . 8

Training ................................................................ 9Accotnting and Auditing . .... ..................... ...... . 9

Billing and Collection ... . ...... ..................... . 10Industrial Wastewater Management .. 10Insurance ....................... .................... .................... 11

IV. PROJECT AREA, SECTOR SERVICES AND DEMAND ....................... 11

Project Area ......... ............... ....... ......44 11Existing and Planned Water Supply Facilities ................. .. 12Existing Sewerage ......... ....................andDainage. 13Future Demand for Sewerage ...............4 ... . .. * ......... 14

This report was prepared by Messrs. Paul Bowron, Financial Analyst, andDavid Howarth, Engineer.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

Table of Contents (Cont'd)

Page No.

V. THE PROJECT ...... ........................ . ................ . 17

Background ......................... ............................. 17Project Objectives .......... *a..... ........ 18Rationale for World Bank Support for the Project ............... 19Project Description ....................... ........... 19Project Cost ........... . ................................ .. 22Project Implementation ...... ...... ...... ...... ... 24Land Acquisition ........ ............. .. 25Industrial Wastewater ....... .................. . 25Maintenance . ......... .. ....... ................. 26Project Related Training ........................ . 26Procurement .0..*........ ........ ...... 0* 27Disbursements ... ....................... . 29

VI. FINANCE ........... **,a .. * . . . . .o..#*.... 30

Past Performance and Current Financial Position ................ 30Financing Plan ............................. .... . .............. 30Future 7inances ...................................... 32Tariff Structure ....................**.......*.****... . .... ... 33Financial Reporting ................ ............................ 33

VII. ECONOMIC EVALUATION AND RISKS .............. ...................... . , 34

Project Benefits .................... ........................ 34Rate of Return ............................................. 34Affordability ........... .... ...........0................... 35Poverty Impact ..... ........................................ 36Environmental Impact ........ .................. ............ . . 36Risks .................... *.......... 37

VIII. AGREEMENTS REACHED AND RECOMMENDATIONS .......... ................... 37

Table of Contents (Cont'd)

LIST OF ANNEXESPage No.

1 - ASKI Organization Chart .*.......*...... ..... ....... 39

2 - Historical and Projected WaterSupply and Sewerage Data .. ....... ....... ....... .. 40

3 - Water Demand and Supply ...................... 41

4 - Selection of Sewage Treatment Process .............. o....... 42

5 - Operation and MaintenanceEquipment for Project ................................ 44

6 - Project Cost Estimates *................................ 45

7 - Project Implementation Schedule ........... 40* ....... .... 50

8 - Contract Procurement Schedule ............... 51

9 - Allocation of Loan Proceeds ..................... .... 52

10 - Loan Disbursement Schedule ............................. 53

11 - Monitoring Indicators .. ....... .......................... 54

12 - Income Statements, 1987-96 .......... ........ 0..0 ... 55

13 - Sources and Applications ofFunds Statements, 1987-96 ..... ... .. .......... .... ....... 56

14 - Balance Sheets, 1987-96 *.... .**.....0.0*000........ ........ 57

15 - Incremental Cost and Benefit Streams for InternalRate of Return ..... .. ...... *...... 58

16 - Selected Documents and Datain the Project File . . ... 59

MAPS

IBRD Nos. 21862, 21876 and 21905

REPUBLIC OF TURKEY

ANKARA SEWERAGE PROJECT

Loan and Projeet SummaM

Borrower: Ankara Water Supply and Sewerage Administration (ASKI).

Guarantor: Republic of Turkey.

Loan Amount: US$173 million equivalent.

Terms: Seventeen years, including 5 years grace, at the standardvariable interest rate.

Project The main objectives of the project are to provideDescription: facilities to: (i) eliminate the discharge of untreated

sewage to the Ankara River and its tributaries flowingthrough Ankara; (ii) extend sewerage to unserved personsand improve the present sewerage; (iii) reduce flooding inp"rts of the city that flood during heavy rainstorms. Thesewerage and drainage would enclose otherwise open flowsthrough the city, and thereby eliminate health hazards,odors, and flooding (including flooding now occurring fromtime to time with sewage-contaminated stormwater). TheProject includes sewage collection and treatmentcomponents; drainage; and technical assistance and trainingfor ASKI, the autonomous water and sewerage authority ofAnkara.

Beneficiaries The beneficiaries would be: (a) approximately 850,06Oand Risks: persons in and around Ankara (of which 500,000 low income)

who would receive sewerage service as a result of theProject; (b) an additional 500,000 persons (of which300,000 low income) already connected to sewers who wouldreceive improved service; (c) all residents of and visitorsto Ankara wlho would no longer encounter the pollutedenvironment found today. Also, the cleaning up of theAnkara River would make possible the use of its water byfarmers outside the City, as had been done in the past upto about 20 years ago. By the end of the projectimplementation period (planned for end 1996), approximately93% of the City's population would be sewered, virtuallyeveryone but persons, usually very low income persons,living on steep hillsides in squatter ("gecekondu") areaswhich are inaccessible for sewerage. Actions initiated tominimize risks and ensure successful implementation of theProject include the identification of and agreement tocorrect design deficiencies in ongoing works; and theincreasing of tariffs to enable self-financing by ASKI ofthe local currency requirements of its investment programincluding the proposed project.

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Estimated Project Cost: Local US TotalUS$ 'million------

Sewage Collection 165.6 103.7 269.3Sewage TreatmentCivil Works (including Land) 44.8 _ 44.8Equipment and Engineering - 73.0 73.0

Drainage 12.9 7.4 20.3Engineering for Drainage andSewage Collection 6.8 8.2 15.0Institutional Strengthening 2.4 7.8 10.2

Base Cost 232.5 200.1 432.6

Physical Contingencies 36.5 32.7 69.2Price Contingencies 31.4 23.6 55.0

Total Project Cost I/

Financing Plan

IBRD Loan 8.5 164.5 173.0KfW Credit - 91.9 91.9ASKI Internal Cash Generation 291.9 - 291.9

Total Financing NZA 2S. lua

Disbursements:

World Bank Fiscal Year1990 1991 1992 1993 1994 1995 1996 1997 1998

US$ million

Annual 4.5 17.3 27.4 30.8 30.8 24.0 19.0 14.0 5.2Cumulative 4.5 21.8 49.2 80.0 110.8 :34.8 153.8 167.8 173.0

Internal Financial Rate of Return: 1lS

MaRs: IBRD Nos. 21862, 21876 and 21905

1/ Figures include an estimated US$50.4 million equivalent in value addedtaxes.

882D

REPUBLIC OF TURKEY

AYKARA SEWERAGE PROJECT

STAFF APPRAISAL REPORT

I. INTRODUCTION

1.01 The proposed project is for the Greater Ankara Metropolitan Area,the Country's second largest, with a population of 2.6 million growing 3.42per year. Ankara is a cultural, commercial, t. financial center as wellas the national capital, and has important medium scale and light industry,ranking third in industrial employment among tt2 Country's metropolitanareas.

1.02 Most of the area is supplied by piped water, but in manydistricts, sewe:cage is lacking or unsatisfactory, and there is no sewagetreatment. Many of the water courses are open sewers, and many drainageworks carry sewage and are subject to overflows, at times causingcontaminated flooding.

1.03 Works to meet future growth in water needs are under construction,but solutions to major sewerage deficiencies have been held up because oflimited finances. The proposed project addresses present seweragedeficiencies and projected new sewerage needs.

1.04 The Project consists of sewage collection and treatmentfacilities, drainage facilities, sewerage operational and maintenanceequipment, and technical assistance and training. Ankara's water supplyand sewerage authority, ASKI, would be the Project's implementing agencyand owner and the Bank's borrower.

1.05 Detailed preparation of the pxoject began following an April 1988request of the Government for an advance cf US$1.5 million equivalent fromthe Bank's Project Preparation Facility. The field appraisal of theProject was completed July 6, 1989.

II. SECTORAL CONTEXT

Country Background

2.01 The population of Turkey at the end of 1987 was 54 million, with53S living in urban areas. Population growth averaged 2.52 per annumduring 1980-85 (42 for urban areas and 0.92 for rural areas). The overallgrowth rate is expected to decrease gradually, and the population by theyear 2000 to reach about 67 million. Movement from rural to urban areas isexpected to continue and to constitute a major cause of growing demand forwater and sewerage services in urban areas.

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Water and Sewerage Service Levels

2.02 Nationwide data on urban service levels for water and sewerage areavailable from 1983 and indicated below with corresponding 1988 figures forthe Ankara Municipality.

Table 2.1: Urban Water and Sewerage Service Levels

GreaterAnkara

Nationwide MunicipalityService Levels (% served) (1983) (1988)

Total Population ('000) 24,600 2,403Piped Water (%) 80 93Public Sewer Connection (X) 56 87

Water Production and Consumption

Number of Connections ('000) 4,565 430Persons per Connection 4.3 5.2Water Produced (Million m3) 1,380 176Water Sold (Million m3) 877 97Quantity Sold as X of Quantity Produced 64 55Water Sold per Connection (r3) 192 226Per Capita Sales including 122 118Industrial & Commercial (liters/day)

Estimated Per Capita Household 85 64Consumption (liters/dev)

Sources: State Institute of Statistics 1983 Gas and Water Data; ASKIStatistics.

2.03 Approximately 80% of the Country's urban population in 1983 wasserved by piped water to residences, but in many cities including the threelargest, widespread pressure drops and cutoffs were being, and still are,experienced from time to time because of source and distributionlimitations. Less than two thirds of the national total amount of waterproduced arrived at residences and was registered in sales, but it isbelieved that a significant unregistered quantity was consumed throughillegal connections and malfunctioning meters. Average daily per capitaconsumption (registered) was 122 liters, including users of all types, ofwhich it is estimated that household consumption on average amounted toapproximately 85 liters.

2.04 Consumption at this level ordinarily is sufficient for healthrequirements. Below average quantities and low pressures which occur,however, increase disease risk, particularly when low pressure allowsinfiltration of contaminated groundwater into water distribution pipesthrough openings which normally are points of outward leakage.

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2.05 Approximately 562 of the urban population had at least some typeof sewer pipe connection to their residences, but this must be interpretedwith the understanding that many such pipes, or the street sewers to whichsome of them are connected, discharge into nearby creeks and open drainagechannels, and that sewage treatment plants were, and still are, virtuallynon-existent. This remains the same today except in the case of IstanbuLwhere rapid progress has been made in recent years, and is continuing, inconstructing up-to-date collection, treatment, and disposal works, and inIzmir where similar effort is beginning.

2.06 Average 1988 water and sewerage served population percentages inAnkara exceed the 1983 national averages, reflecting the national capital'shigh living standard (on average). The relatively low citywide householdconsumption average, is a combination of low values from the approximately50% of the population who live in poor and unplanned ("gecekondu") areas,with the higher values enjoyed by the other 502

Future Urban Demand for Water and Sewerage

2.07 It is estimated that approximately six million of the Country'spresent urban population of 30 million do not have piped water; 13 milliondo not have adequate sewerage; and most except those living in Istanbul,Izmir, and Ankara neither have, nor soon plan to have, sewage treatmentfacilities for their communities. In addition, the urban population isexpected to increase to about 42 million by the year 2000, and withcontinued rapid economic development and increasing living standards, mostnew city persons as well as those not adequately served at present willrequire expansion of public water, sewerage, and sewage treatment anddisposal systems. It is estimated that water production for urban areaswill have to increase to 3.5 billion m3/year by the year 2000 (compared to1.4 billion m3/year in 1983), and that corresponding increases in watertreatment and distribution facilities will be needed together withproportionately greater increases in sewerage, and sewage treatment anddisposal facilities.

Future Investment in the Sector

2.08 Although current national and local budget tightening areaffecting investment in the water and sewerage sector along with otherareas of public investment, it is expected that the sector will continuereceiving priority emphasis so that present deficiencies will be eliminatedand increasing proportions of the growing urban population will be served.The increasing degree of self-financing being achieved in the sector ineconomically strong, larger municipalities is expected to be a majorcontributing factor to future investment emphasis in the largermunicipalities, and also in smaller communities. Furthermore,with the substantial reduction being achieved in the need for Governmentbudgetary support for the sector in the larger municipalities, the limitedbudgetary resources which are available may then be concentrated by theGovernment on the smallest communities still needing it.

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2.09 It is estimated that the capital cost of new and upgraded urbanwater, sewerage, and sewage treatment and disposal facilities in theCountry during the 1990's could be approximately US$8.5 billion equivalent(in 1988 prices).

Table 2.2: Estimated Urban Water Supply andSewerage Investment 1990-2000

US$ MillionWater Supply Equivalent

New Source and Distribution Works 2,850Rehabilitation of Existing Systems 450

Sewerage, Sewage Treatment and Disposal

New Systems 4,550Rehabilitation of Existing Systems 700

Total 8,550

In making the estimate, it was assumed that the level of residential pipedwater service would be increased to 90% of the urban population on average,that the average quantity of water sold would increase to 160 liters percapita per day (compared to the 1983 figure of 122); that 752 of the urbanpopulation would have a sewer connection (compared to 56% in 1983); andthat 502 of the urban sewage would be treated (compared to 0% in 1983).Most of the sewage treatment facilities would be located in Istanbul,Ankara, and Izmir, which are projected to have approximately 39% of thetotal urban population by the year 2000, and which cities would account forabout one half of the ten-year sector investment total.

Sector Orga-ization

2.10 With the exception of certain major water source operations, theprovision of public water supply and sewerage services in Turkey is aresponsibility of municipalities and village councils. Local financialresources and technical capabilities, however, have not been sufficient tosupport system development except recently in the cases of Istanbul, Izmir,and Ankara. Planning, design, and construction of new systems, therefore,have been, and are being carried out virtually entirely by three centralgovernment organizations, except for projects in the mentioned largestmunicipalities. The State Hydraulic Works (DSI) under the Ministry ofPublic Works is responsible for national water resources management, majorwater source development and operation, and water supply development forthe larger towns, excluding the largest municipalities. The Iller Bank(IB, meaning Bank of the Provinces), a semi-autonomous Governmentcorporation, is responsible for water supply development for towns with apopulation of less than 500,000, and for major sewerage development in allurban areas except Istanbul, Ankara, and Izmir. The General Directorate of

Rural Services (GDRS) under the Ministry of Agriculture, Forestry andVillage Affairs (MAFRA) is responsible for rural water supply programs,through its Rural Water Supply Department (RWS) and Research and PlanningDepartment.

2.11 In all but the largest municipalities, responsibility formunicipal water and sewerage operations is embedded within operatingdepartments which carry out a variety of other functions as well (e.g.,transportation, gas service). The first of the large municipalityexceptions is Istanbul. In 1981, the Istanbul Water Supply and SewerageGeneral Directorate (ISKI) was created by Law No. 2560 (approved November20, 1981 and amended by Law No. 3009, May 23, 1984) as an autonomous entityresponsible for the planning, design, construction, operation andmaintenance of all water supply and sewerage facilities in GreaterIstanbul. This was intended also to strengthen the sector's organization,and to enable an increasing share of the sector's investment for Istanbulto be financed with internally generated funds. The experience has beensuccessful (para. 2.17), and Law No. 3305 of June 5, 1986 authorized theestablishment of similar organizations in Izmir, Ankara, and Adana. Also,national legislation in 1981 defined Greater Municipal Areas, by whichadministrative responsibilities and organizations for water supply andsewerage services of many smaller municipalities could be taken over by anearby large urban center. In the case of Istanbul, 24 water supplyorganizations were merged into ISKI.

2.12 The ISKI-type water supply and sewerage organizations of Izmir,Ankara. and Adana now are established and functioning successfully, andthose of Izmir and Adana are receiving major lending support from the Bankas is ISKI in Istanbul (paras. 2.18 to 2.21). It is expected that the ISKIorganizational model, in due course, will be adopted by other cities seeingpotential benefits in taking greater responsibility locally for theirinvestment needs in the sector.

Constraints to Development

2.13 Funds for development in the sector in most cities have been andcontinue to be insufficient, in part because of the lack of recognition bylocal administrations of the potential for local resource mobilizationwithin the sector through charges to customers. With the exception of thelargest municipalities, virtually all local authorities look to the CentralGovernment as the primary and usually the only source for obtaining neededwater and seiarage works. The charges for water and sewerage services insuch localities typically cover no more than cash operating expenses atbest; and, thus, they generate few or no funds which could be applied toexpanding service and improving the quality of service. This andlimitations on Central Government funds are one of the sector's mostserious constraints.

2.14 The largest municipalities' demonstrations of ability to chargeand collect amounts close to long run marginal costs of their water andsewerage services should be persuasive, eventually, to other municipalitiesto attempt to do the same. With a-rerage charges at such levels, thelargest municipalities have means of self-financing their investments inthe sector so that they may fully serve their citizene by the late 1990's.

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2.15 A second constraint, which is related to funding limitations, isthe practice of overprogramming and overcontracting by the sector'snational agencies. Iller Bank and the DSI are compelled under widespreadpolitical pressure to program more projects for municipalities, and toaward more contracts, than can be efficiently carried out within overallfunding limitations. This causes significant economic losses through:(i) inefficiency due to work slowdowns and stopping and restarting afterperiods of inactivity because of insufficient funds; and (ii) the tying upof capital in delayed, unfinished work. Although the problem is recognizedby the authorities, prospects for improvement appear so far to be poor.

2.16 The lack of local technical and administrative capability fordevelopment in the sector increasingly will become a third importantconstraint. Local authorities who in the past relied on the sector's twonational agencies for sector planning and project administration (as wellas funding) will have to build local capability as they take overresponsibilities for their development needs in the sector. Valuableassistance in building capability should be available to local authoritiesfrom the two national agencies, the national technical universities, localconsulting firms, and the water and sewerage administrations of the largestmunicipalities which already have made the change from reliance on theCentral Government to self-reliance.

Previous World Bank Involvement in the Sector

2.17 The Bank made a US$37 million loan to the Government in 1972 forthe Istanbul Water Supply Project (Loan 844-TU), which was completed in1981. The Project included expansions of water treatment, transmission,pumping and distribution systems for the Istanbul metropolitan area. TheProject Performance Audit Report (No. 4853, issued in 1983), concluded thatthe main project objectives were achieved; water production was increasedto the levels anticipated at the time of appraisal, and a reorganization ofthe sector was achieved through the creation of the Istanbul Water Supplyand Sewerage General Directorate (ISKI). In 1982, a loan of US$88.1million was made by the Bank for the Istanbul Sewerage Project (Loan2159-TU) to improve sewerage and sewage disposal facilities, and toincrease the proportion of the City's population to be served by sewerage.Project works implementation has been satisfactory, and 99% of the loan hadbeen disbursed as of February 1989. The Project is eliminating dischargesinto the Golden Horn and Sea of Marmara amounting to about 30 percent ofIstanbul's wastewater, and an industrial pollution control program has beenput into operation.

2.18 Loan 2888-TU of US$218 million equivalent was approved in December1987 for US$570 million equivalent of additional water supply, sewerage,and sewage treatment works for Istanbul. All of the Project's majorsewerage and sewage treatment facilities have been designed, andconstruction contracts so far awarded amount to approximately 252 of theestimated total cost of the Project.

2.19 Loan 2818-TU of US$184 million was approved in May 1987 for awater and sewerage project for Izmir (estimated total cost of US$522million). An authority, IZSU, similar to ISKI, was established to

implement the Project and manage water and sewerage operations. All of theProject's major works except the water treatment plant have finisheddesigns, and equipment supply and works construction contracts awarded todate amount to approximately 34% of the estimated total cost of the Project.

2.20 ISKI and IZSU began experiencing severe financial difficultiesduring 1988 because their tariffs were not being adjusted to meet risingcosts during a period of inflation exceeding 702 annually, and, in ISKI'scase, because difficulties were experienced in billing and collection r

operations during a transition from the use by ISKI of a contract servicecompany for these operations to a system established within the ISKIorganization. ISKI's billing problems now are largely solved, itscollections are improving, and it increased its tariffs approximately 70?on average in December 1988 and 50% on average in June 1989. Its averagetariff now is slightly more than its long run marginal cost. ISZU's tariffaverage increased approximately 110% effective July 1989, to a level ofabout 90% of its long run marginal cost. IZSU is, however, facingincreasing difficulty in implementing the Izmir Project because of delay inthe provision of funds committed to the Project by the Izmir Municipality.Also, components of the Project being implemented for IZSU by the IllerBank and DSI have been delayed by Government funding limitations.

2.21 An Engineering Loan of US$9.2 million for water supply andsewerage studies for the Cukurova Region (Loan 2537-TU), was made in 1985.Thi.t was followed in May 1987 by Loan 2819-TU of US$120 million for amunicipal infrastructure project for the Cukurova Region (estimated cost ofUS$467 million), 47 percent of which is for water and sewerage. Anauthority similar to ISKI has been established for the largesc cityinvolved, Adana, and operationally autonomous water departments are beingestablished in four other towns in the Region. The Cukurova Project alsoaimed to build up the capacity of Iller Bank as a financial intermediary,and to that end established a unit within Iller Bank to appraise andmonitor municipal infrastructure works in the Cukurova Area. The Projectis having a slow start, and at present is under review by the Governmentand the Bank regarding possibilities for improving its administrativearrangements and modifying various components. Total World Bank lendingunder the ongoing loans for the urban sector in Turkey including watersupply and sanitation is US$522 million.

Justification for World Bank Lending

2.22 The first of the three main elements of the Bank's lendingstrategy for the sector in Turkey is to support the Government's objectivesof: (i) reducing inadequacies in water and sewerage infrastructure in themost cost-effective way possible, while also enabling the provision ofaffordable services to low income consumers; and (ii) protecting theenvironment against pollution from domestic and industrial wastes. Thesecond element of the strategy is to support the Government's policies forsector decentralization, local resource mobilization, and cost recovery,through assistance to autonomous water and sewerage organizations inmunicipalities which have strong self-financing potential, including,eventually, in medium-size cities. The third element of the strategy is tosupport the Government's objective of providing critically needed water and

sewerage facilities in coastal locations which are important for theCountry's tourism industry and for regional environmental interests.Lending for the proposed project is justified for reasons one and twoabove, and is of partict¶lar importance because of Ankara being the nationalcapital and Country's second largest city.

III. THE BORROWER

Introduction

3.01 The proposed borrower, implementing agency, and operatingorganization for the Project is the Ankara Water and SewerageAdministration (ASKI) of the Ankara Metropolitan Municipality. ASKI wasformed by combining water supply and sewerage staff and assets fromexisting service organ_zations within the Greater Municipal Area into aseparate, autonomous, administratively self-sufficient organizationauthorized by Law No. 3305 of June 5, 1986, anti defined by Law No. 2560approved November 20, 1981, which was amended by Law No. 3009, May 23, 1984(para. 2.11).

3.02 ASKI is responsible for the development and operation of allpublic water supply and sewerage for the metropolitan area eYcept its watersources outside the area which are developed and in some cases operated byDSI. ASKI receives water from surface reservoirs and well fields with ayield of approximately 780,000 m3 per day. In 1988, it distributed waterthrough 430,000 connections to approximately 2.2 million persons in an areatotalling about 185 km2, and handled the collection of sewage from 365,000connections.

Organization and Staffing

3.03 ASKI is administered by:

(i) a General Assembly consisting of the Metropolitan MunicipalCouncil;

(ii) a six-member Board of Directors, with the Mayor asChairman, which reports to the General Assembly; and

(iii) a General Director who is the Board's Vice Chairman and thechief executive officer responsible for day-to-dayoperations.

The General Director is supported by three Assistant Gencral Directors:one for Operations (all water supply and sewerage, including electrical andmechanical operations); one for Planning and Construction; and one forFinance and Administration. He also has a staff of advisors and small,specialized departments (e.g., Legal Department; Annex 1).

3.04 The General Assembly approves ASKI's investment plans and annualbudgets, staffing, tariffs and borrowings. The Board of Directors approvesoperating principles and regulations, matters to be submitted for final

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approval by the General Assembly, and appointments of senior officials andstaff other than the General Director and Assistant General Directors. TheGeneral Director is appointed by the Central Government (Ministry ofInterior) upon nomination by the Mayor. The Assistant General Directorsand Department Heads are nominated by the General Director and approved bythe Mayor of Ankara. Board Members, the General Director, and theAssistants are required under the ASKI Law to have professionalqualifications and experience in their fields.

3.05 ASKI's 2,910 employees include 93 management and senior advisorystaff, 167 engineers and technicians, 248 accounting and commercialoperations staff, 549 other office workers, and 1,853 unskilled andsemi-skilled service and maintenance workers. The total number ofemployees gives ratios of approximately 6.8 employees per 1,000 waterconnections (one employee for every 768 persons served), and 8.0 employeesper 1,000 sewerage connections. (ASKI also provides a cesspit emptyingservice to households not connected to the sewerage system.) These ratiosare satisfactory for organizations of this type. Staffing plans areprepared annually, and recruitment procedures are satisfactory. Staffturnover is low.

Training

3.06 ASKI conducts on the job training for its employees in operations,maintenance, and administrative functions. Responsibility fcr planning andadministration of training is decentralized to each ASKI department exceptfor overseas and other external training administered centrally by ASKI'ssenior management through the Personnel Department. ASKI also is receivingtraining assistance by means of "twinning" with the Stuttgart Water Companysponsored by the German Government through the KfW. Selected ASKI staffare sent to Stuttgart on training work assignments, and Stuttgartspecialists visit Ankara to support ASKI.

3.07 ASKI considers its training activities for the most part to besatisfactory, but the subject is undergoing detailed analysis andevaluation by specialist consultants engaged with Kuwait Fund financing(para. 4.05). The consultants are to provide by late 1989 their report andrecommendations for an expanded program of training, which program could besuitable for financing in part from the proposed loan from the Bank (para.5.19).

Accounting and Auditing

3.08 ASKI maintains accounts which are separate from those of theAnkara Metropolitan Municipality, and which in part are orientedcommercially. Accounting operations have been computerized since 1987, butmanual accounting is running in parallel while experience with the newsystem is building. Important deficiencies in the accounts are the lack offixed asset registers (currently being developed), the lack of fixed assetaccounts for sewerage and drainage facilities constructed prior to ASKI'sformation in 1987, and the lack of fixed asset revaluation accountsreflecting inflation, which has been and continues to be high, renderingthe original value accounts for fixed assets virtually useless for purposesof financial management.

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3.09 ASKI recently obtained a review and recommendations by consultantson its accounting and financial reporting, which confirm the above pcintsand also identify other deficiencies and advisable corrective measures,including appropriate training. The consultant concluded in addition thatimplementation of the improvements would not be possible without expansionof ASKI's computing/data processing capabilities, although this particularaspect was not analyzed in detail. ASKI has agreed to correct by December31, 1990 identified deficiencies in its accounting and financial reporting,including the revaluation of its assets, and provisions have been made inthe project and financing plan for related technical assistance, training,and computer capacity expansion (para. 5.18).

3.10 ASKI's accounts and financial statements are audited by itsinternal auditor, whose report is submitted to ASKI's General Assembly, theMetropolitan Municipal Council. The accounts and financial statements arereviewed also, together with the report of the internal auditor, by theAccount Examination Commission of the Metropolitan Municipality, theMunicipality's independent auditing authority, which reports its findingsto the Municipal Council. The most recent report of the internal auditorconcluded that ASKI's 1987 financial statements are consistent with ASKI's1987 accounts and that the accounts were correctly maintained. The reportof the Account Examination Commission indicates that the Commission acceptskey figures presented in the 1987 financial statements, although theCommission does not include an auditor's statement of opinion ir itsreport. The combination of the two reports does not cover the full auditscope and detail normally requested by the Bank, but it is considered bythe appraisal to be sufficient to recommend acceptance by the Bank for thepurpose of initiating lending with a new borrower.

3.11 Notwithstanding the conclusion above that the existing auditreports may be relied upon by the Bank at this time, ASKI has agreed toobtain independent audits in the future, beginning with the 1989 accountsand financial statements, according to the standards normally requested bythe Bank of its borrowers.

Billing and Collection

3.12 ASKI's sales are metered and billed every two months. The billingis computerized and satisfactory. Collection from residential, commercial,and industrial customers is strictly administered with good results.Collection from municipal and Central Government agencies, schools,hospitals, and other public organizations is, however, a serious problem,accounting for the bulk of ASKI's overdue receivables. ASKI has agreed toreduce its receivables during 1990 to the equivalent of two months ofbillings (para. 6.06), and the Government has stated that it will follow upso that the objective will be achieved.

Industrial Wastewater Management

3.13 ASKI is responsible for monitoring and control of industrialliquid waste discharges within Ankara according to the ASKI establishmentlaw, the national environmental law, and the law and recently approvedregulations of the Ankara Municipality. The latter are patterned onmonitoring and control regulations of Istanbul and Izmir which have beenconsidered satisfactory.

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3.14 The regulations require registration by firms; sampling andanalysis of discharges; construction by a firm (or firms) of a treatmentfacility where necessary to reduce pollutants to required standards(generally to concentrations equal to or less than domestic waste), or, asan alternative, payment of concentration-related and volume-relatedsurcharges to ASKI if standards are not to be met; and imposition of finesand shutdown of operation in cases of certain highly toxic pollutants ifuntreated. ASKI has a newly obtained testing laboratory and is beginningtesting (para. 5.31). After accumulating appropriate data on the wastes inquestion, ASKI will finalize standards to be applied, and its regulationswill come fully into effect. ASKI has agreed to put into effect and beginto implement by December 31, 1990 regulations and standards acceptable tothe Bank.

Insurance

3.15 ASKI has agreed to maintain appropriate insurance against fire,other forms of damage, theft, and potential liabilities; and to require itssuppliers and contractors to obtain adequate insurance for assets of theproposed project, and against risks related to its implementation.

IV. PROJECT AREA, SECTOR SERVICES AND DEMAND

Project Area

4.01 The project area, the area of the Greater Municipality of Ankaraand surrounding districts, is in and around the valleys of four majorcreeks and the Ankara River into which the creeks drain. The area has arelatively mild climate and an annual average rainfall of 350 mm; andsevere weather conditions occur rarely. Average temperatures in thecoldest and warmest months are -0.2°C (January) and 23.2°C (July). As thecity grew, its development progressed onto surrounding hillsides, with thepresent developed area of 19,840 ha extending from 785 m elevation to 1,280m above sea level. The large variation in ground level causes problems inthe distribution of water and in the collection and disposal of rainwaterand sewage, and heavy thunderstorms sometimes result in damage.

4.02 The main residential and commercial areas are generally classifiedeither as planned areas (these include many residential and most commercialareas) or unplanned, usually squatter/low income residential areas calledgecekondu (literally built overnight) areas. The latter make upapproximately 56 per cent of the City's residential/commercial area.Further expansion of gecekondu areas is now largely prevented by Governmentand municipal regulation. Recent development has been mainly in areasdesignated as new development areas, in the form of multi-story apartmentsusually built by co-operatives. Land availability is not a constraint toplanned development in the area, and residential developments both withinand nearby beyond the present city boundary are occupying about 600 new haper annum.

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Existing and Planned Water Supply Facilities

4.03 Ankara's present water supply is from various groundwater sourcesand four surface systems (Table 4.1). An extensive distribution networksupplies about 93 per cent of the City's population. Most large industrieshave their own supply source, usually groundwater. With the programs beingcarried out to reduce wastage and leakage (paras 4.04, 4.05), the presentsources are capable of meeting year 2000 demand (257 million cu.m/annum).A program of source development was prepared in 1985 by consultants (SUISProject Eng'neering and Consulting Ltd. Co.) for DSI. Table 4.1,summarizes the consultants' 1985 proposals. A chart of water supply sourcecapacity and water demand is at Annex 3. With the indicated capacities,the provision of adequate sewerage in the Ankara area would not beconstrained by the water system.

Table 4.1 Existing/Proposed Water Sources for Ankara

Actual(Proposed) CumulativeSource Year Completed Yield a/ Yield

- million cu.m/annum --

Existing Wellsand Springs Varicus 33 33

Kayas-BayindirReservoir 1964 11 44

Cubuk I+II Reservoirs 1936/64 36 80

Kurtbogazi Reservoir 1983 57 137

Camlidere Reservoir 1988 150 287

Egrekkaya Reservoir (1992) 80 367

Akyar Reservoir (2000) 47 414

a/ Average annual flow.b/ Under construction.

4.04 Work to expand and improve ASKI'S water distribution is beingcarried out supported in part with financing by the KfW, Kuwait Fund andEuropean Resettlement Fund, and is presently scheduled to be completed by1993. Leakage from water pipes and consumer connections is high, not onlydue to the hilly terrain of the city resulting in high and fluctuating waterpressure, but because of the past use of steel pipes whose corrosionprotection was poor. Of the approximately 4,300 km of water distributionpipelines and 440,000 consumer connections, some 2,300 km of pipeline and80,000 service connections will be replaced under the program. Also, to

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reduce high pressure in pipes (and hence bursts and leakage), it is intendedthat the existing distribution network of 17 separate zones will be furthersub-divided into 34 zones supplied by 25 pumping stations (13 existing) and53 distribution storage reservoirs (34 existing).

4.05 The pipe replacement program started in 1986 and is to be completedin 1992. Also, technical assistance is being provided to ASKI through theprogram in scheduling and control of construction, and in pipelayingpractices. In addition, under Kuwait Fund financing, consultants were engagedin August 1988 to study: (i) future extension of the water distributionnetwork; and (ii) the organization of ASKI. With respect to the distributionnetwork, the consultants will review and update existing studies, and theyalso will prepare detailed designs and carry out a comprehensive leakagereduction program including related training of ASKI staff. For their studyof ASKI's organization, the consultants will review ASKI's institutionalcapability and prepare a plan for strengthening ASKI (including training).The consultant's studies are to be completed during the first quarter of1990; design work and training will continue to 1992.

4.06 Unaccounted-for water in transmission and distribution of the totalamount produced at the sources is estimated to be about 42 per cent.Restoration of 24-hour supply to most of the distribution svstem in 1988,with the consequent increase in pressure duration, has resulted in increasesin leakage; this is being corrected gradually by the program of replacementof defective pipes and consumer connections (para 4.04). Leakage reductionis expected after the detection and repair program gets under way, and thedistribution system is re-zoned to reduce pressures (paras 4.04, 4.05). By1995, the unaccounted for water percentage is expected to be approximately 30per cent.

Existing Sewerage and Drainage

4.07 It is estimated that 79 per cent of the population of Ankara isserved by some form of piped sewerage, but there is a lack of information,particularly with respect to older sewers. Only separate sewerage anddrainage systems (i.e., foul and storm sewage conveyed in separate pipes) areunderstood to have been constructed since 1969, but prior to that date,combined sewers were installed in about 2,290 ha of the planned area of thecity. During heavy rainfall, the combined sewers overflow, causingcontaminated water to flow in the streets. Also, separate sewers constructedin 256 ha during the late 1940s which serve the main commercial area ofAnkara are now overloaded.

4.08 Over 992 of the planned areas and 60% of the Gecekondu areas areprovided with sewers. About 40% of the gecekondu properties rely on septictanks. The quality of the sewers in the gecekondu areas is shown to be poorby the many problems that occur. Most gecekondu sewers were laid by thelocal residents using pipes supplied by the Municipality. Most were laidwithout plans, and they often block and overflow. There are few manholes,and maintenance is almost impossible.

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Present Service Levels (1989)Area (ha) Population (%)

Planned Gecekondu Total Planned Gecekondu Total

Separate Sewers 7,220 6,680 13,900 42 28 70Combined Sewers/Drains 2,290 -- 2,290 14 - 14

Unserved 110 3,540 3,650 1 15 16

Total 9,620 10,220 19,840 57 43 100

4.09 None of the City's sewage is treated, and the majority of the sewersdischarge into the nearest water course or large, and in many cases open,drain. All of the sewage reaches and flows openly in the Ankara River.During dry weather, the flow in water courses in the area is mainly rawsewage. During summer, the sewage causes significant odor, and fly andmosquito problems, particularly in gecekondu areas.

4.10 For a city of Ankara's size, there is relatively little heavyindustry and industrial pollution. Water use by heavy industry in 1985 isestimated to have been about 150,000 persons equivalent. There is,nevertheless, a need for pre-treatment of effluent from a few industrialplants. Industrial waste guidelines approved by the city in January 1989provide the legal basis for ASK! to ensure that industries carry outappropriate treatment before discharge of their wastes (para. 5.31).

4.11 Stormwater in built up areas of the City is taken care of mainly byusing streets as drains, and by providing collectors to channel flows fromstreets to creeks and the Ankara River. The creeks accommodate most storms,as DSI has upgraded their flow capacity to carry the theoretical peak100-year storm. Most flooding that occurs is the result of rainwater runofffrom hill-sides before the water has reached the creeks.

4.12 Solid waste is collected satisfactorily and does not cause a problemwith respect to blocking sewers and drains.

Future Demand for Sewerage

4.13 Planning for the amounts and sizes of sewers and for the sewagetreatment facility to be installed by ASKI is based on estimates ofpopulation growth, future per capita use of water (including commercial andsmall industry use), large industry water use, the return factor (fraction ofwater used which enters the sewers), an allowance for infiltration ofgroundwater into the sewers, and the objectives set by ASKI for the districtsand percentages of the population which it intends to be able to serve. Withthe projected population growth and plans for serving additional areas andincreasing percentages of the population, 140,000 new sewer connections and912 km. of new network sewers are to be installed by the end of 1996 in theproposed project. The volume of sewage to be treated, on average, by the endof the year 2002, the capacity target date for the sewage treatment works tobe constructed in the project, is 8.9m3/sec. assuming that 882of the water consumed by users having sewer connections flows into thoseconnections.

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4.14 Total Population Growth. Ankara's population grew from 1927 to 1975at 6.0 percent per annum on average, from 1975 to 1980 at 2.3 percent, andfrom 1980 to 1985 at 4.0 percent. In 1984-85, the Middle East TechnicalUniversity (METU) I' made a projection of future growth of the GreaterAnkara area and population, taking into account increases in land values andsaturation densities, givin- the population figures shown in the tablebelow. This projection has been used in making the sewage flow estimates forthe proposed project.

Projected Year EndPopulation o4f Average Annual IncreaseGreater Ankara During Five Years Ended

(Million) __X1990 2.75 3.41995 3.19 3.02000 3.65 2.72005 4.11 2.42010 4.58 2.22015 5.05 2.02020 a/ 5.49 1.72025 a/ 5.92 1.5

a/ Extrapolated by ASKI.

4.15 Districts and Population to be Served. The present MetropolitanMunicipal boundary encompasses 70 Census districts. The METU projection wasfor these 70 districts plus 29 surrounding districts in which most of thegrowth of the Greater Ankara population is occurring and is expected tocontinue to occ'-r. Of the 29 surrounding districts, it is not desirable toinclude in the Project two which are not within the catchment area of theproposed sewage treatment plant and two which are outside the entire catchmentarea of the Ankara River. For the 25 other outside districts, present valueanalyses of the alternatives of connecting the sewerage system in eachdistrict to the Ankara sewerage system, and of constructing localizedcollection systems and treatment plants, show that connection to the Ankarasystem would be the least cost. The Project, therefore, is based mainly ondevelopment of sewerage in the 70 districts within the existing politicalboundary, but with sizing of the collector and interceptor sewers to carry thesevage flows from all 95 districts through the year 2025, by which time theoverall population growth rate is projected to have slowed to below 1.5% peryear and the population within the municipal boundary will have levelled off.

1/ Middle East Technical University report to the Municipality of GreaterAnkara, "Ankara from 1985 to 2015." This report has been adopted by theCity as the basis of its land use planning.

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Also, it is planned by ASKI that with the Project, ASKI will provide sewersconnected to the ASKI system for eight of the 25 outlying districts in 1992,and for another six in 1995. It is recommended that the signing ofappropriate local agreements for the provision of sewerage and sewagetreatment services by ASKI to the outlying districts included in the Projectshould be a condition of disbursement from the proposed loan of funds forconstructing sewers in these districts.

Population in ASKI's Total PopulationPresent Service Area Population in to be Served

70 Districts Outside Districts by ASK!Year To be Served To be Served

Total by ASKI Total by ASKI

1985 2,259,000 1,901,000 104,000 -- 1,901,000

1995 2,775,000 2,646,000 321,000 131,000 2,777,000

2010 3,403,000 3,274,000 973,000 519,000 3,793,000

2025 3,644,000 3,514,000 1,581,000 1,364,000 4,878,000

4.16 Of the population within the Ankara political boundary (ASKI'spresent service area), 932 are supplied with piped potable water by ASKI, andthis percentage is projected to increase to 972 by 1996. Under the Project,the percentage of the population in the gecekondu areas to be provided with apiped sewerage connection would be increased from 602 to 87 percent by 1996.In addition, the unsatisfactory situation that exists with respect toproblems in the present served gecekondu areas would be reduced by theProject through: (i) provision of manholes for maintenance; and (ii)replacing about 25X of the existing sewers. The sewered percentage of 99% ofthe 1.37 million population in the planned areas at present will remainunchanged during the project period, but sewer replacements are to be made inapproximately 152 of the network sewers in the areas, and an additional 14%will be benefitted by the separation of the at present combined sewers.

4.17 Roof drainage from most properties discharges onto the groundadjacent to the property. This rainwater is in part absorbed by the ground,and in part diverted to the nearest street. A particular problem in Ankarais that many apartment buildings have the lowest unit built below the 'evelof the street, and these units are at risk of flooding during thunderstorms.As many of these apartments are in combined sewer areas (para 4.06), backupsof floodwater into them may contain raw sewage. About 18% of the presentcity population resides in the 2,290 ha. of the City's planned area wherecombined sewers will be replaced by separate sewers under the Project.

4.18 Flooding in Ankara is localised, but many residents of the Citysuffer economic losses due to flooding. The losses vary depending on theseverity of the flood, from minor losses such as delays in travel, to majorlosses from damage to property and sometimes loss of life.

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4.19 Projected Per Capita Use of Water. Per capita daily water

consumption in Ankara based on metered water sales of 118 liters excluding

well water use by major industries, is estimated to have averaged 124 liters

in 1988. Projections for future water consumption in the City have been made

taking into account trends and projections for the two other major cities,

Istanbul and Izmir, as shown below, and the fact that Ankara's use until

recently was suppressed due to source constraints. It is projected that by

the year 2025, the average use will reach 245 1/cd. This projection has been

used in sizing sewerage components of the proposed project.

Water Demand (1/cd) Average Annual1985 2010 Increase (M)

Istanbul 152 230 1.7Izmir 113 214 2.6Ankara 1471' 206 1.4

a/ Includes 23 1/cd of well water for heavy industry.

4.20 The increase in Ankara would take place as part of the general trend

of improvement of living standards. The projection allows for projected

tariff increases (para 6.05), which would not be expected to have an

appreciable effect on demand because of the modest proportions of household

incomes which would be devoted to the services in question. It should be

noted, however, that in making financial and affordability analyses for the

Project, the possibility has been considered also that there might be little

or no further increase in per capita water demand (para 7.10).

V. THE PROJECT

Background

5.01 A water supply, sewerage, and drainage master plan for Ankara was

prepared in 1969 by a consortium of consultants, Camp (U.S.), Harris (U.S.),

and Mesara (Turkey). The sewerage and drainage parts of the plan %ere

undated by BMB - United Engineering Office Ltd. (Turkey) in 1979, a.Ad the

water sources part in 1985 (para 4.03) by the SUIS Project Engineering and

Consulting Ltd. (Turkey). Progress has been made and is continuing on

implementing water supply improvements (paras 4.03 to 4.05). Ongoing and

planned investments in the water system during 1989-93 are expected to total

approximately US$335 million equiivalent, an average of US$67 million per

year. Also, following the 1979 updating of the master plan, small portions

of the sewage and drainage collector works and 6.0 km of the major

interceptor sewer (para 5.11) were constructed under the administration of

the Iller Bank; and DSI made improvements to major creeks in the city.

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5.02 Most of the construction of the street network sewers and drainagefor new development areas has been carried out without consistent standards.For some developments, public agencies financed and administered theconstruction according to the standards of each, while for otherdevelopments, private developers have provided sewers and drains. Fewrecords exist of the sewers and drains that have been laid. Mapping ofexisting sewers and drains would therefore be carried out ear:y in theproposed project.

5.03 In February 1988, the Government indicated to the Bank that theprovision of sewerage and drainage systems for Ankara had been given highpriority. The Government requested that the Bank begin working with ASKItoward the possibility of providing Bank financing, and detailed preparationof the proposed project began following an April 1988 request of theGovernment for an advance of US$1.5 million equivalent from the Bank'sProject Preparation Facility.

5.04 A joint venture of Lavalin/CH2M Hill/Temel (L/C/T) consultants(Canadian/ US/local) was employed in September 1988 to update the 1969/1979master plan. At the same time, the KfW, which plans to finance the supplyand installation of electrical and mechanical equipment for the sewagetreatment pLAnt, financed the preparation of a pre-feasibility study of thetreatment plant by consultants, GKW Consult/Su Yapi (Germany/Turkey). TheL/C/T joint venture consultants submitted a draft final report in December1988 and a revised draft in March 1989. The GKW/Su Yapi report andrecommendations on the sewage treatment plant were submitted in April 1989.As a result of the recommondations of these reports combined with existingplans tor the water systet, ASKI's total investment program for 1989-96 hasbeen increased to approxi. tely US$990 million equivalent, including theproposed project total of US$556.8 million equivalent (para. 5.20).

Project Obiectives

5.05 The main objectives of the Project are to provide new facilities andto rehabilitate existing ones to bring about environmental improvements andreduce health hazards in the Greater Ankara area by:

(i) eliminating the dischargc of untreated sewage to the AnkaraRiver and its tributari4s;

(ii) extending sewerage service to approximately 850,000 persons andimproving the present sewerage service to approximately 500,000persons (of which approximately 500,000 and 300,000,respectively, are low income persons); and

(iii) reducing flooding in parts of the City that flood during heavyrainstorms.

In addition, technical assistance and training would be providec to ASKI tostrengthen the institution's capability to carry out its expanding operations.

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Rationale for World Bank Support for the Project

5.06 With the proposed loan, the Bank would continue its support fordecentralization of sector development responsibilities; establishment ofstrong local sector authorities; improvement of local resource mobilizationand cost recovery, and thereby obtaining reeaction of lIcal dependence oncentral government resources; implementation of least cost solutions;provision of affordable sewerage service to low income customers; andprotection of the environment against pollution from industrial wastes anddomestic sewage. The Bank has been carrying out this approach successfully inprojects in Istanbul and in Izmir. It is the success of the water andsewerage authority, ISKI, established in 1981 in Istanbul in connection withfinancing from the Bank, that led to the establishment of ASKI and similarorganizations in Izmir and Adana. ISK1 is demonstrating both the value ofusing a separate, autonomous organization to develop and operate city waterand sewerage systems, and the potential of the municipality to self-financethe bulk of its investment requirements in the sector. Of particularimportance in the case of Bank support for Ankara are: (i) the encouragementof local resource mobilization for the Project's local currency requirements,which it is believed would be addressed to the extent needed only ifsufficient foreign currency would be available; (ii) the Bank's influence onthe quality of the Project's design and implementation; and (iii) the Bank'sinfluence on implementation timeliness by assisting the authorities towardexpeditious action.

Project Description

5.07 The components of the Project are outlined below and indicated onIBRD Maps Nos. 21862, 21876 and 21905.

A. Sewage Collection

(i) Construction of network sewers (0.2 - 0.5 m. dia) for: newdevelopment areas within the existing city boundary (593.4 kmlength); new development areas outside of the boundary (169.3 kmlength); existing gecekondu areas (318.2 km of new sewers and342.7 km of replacement sewers); change of the existing combinedsystem to a separate system (377.7 km length); and replacementof parts of the existing system in planned areas (178.7 kmlength). In addition about 7,100 new manholes would beprovided, and 2,700 manholes would be reconstructed.

(ii) Construction of five major collector sewers (102.7 km length;0.5-2.0 m. dia) and two pumping stations to pump sewage from theoutlying areas of Golbasi (0.25 cu m/sec. pumping capacity) andYenikent (0.18 cu. m/sec. pumping capacity); and

(iii) Construction of two major interceptors comprising the SouthernInterceptor (27.0 km length; 2.4-4.0 m dia) and the Northerninterceptor (6.6 km length; 0.5-1.4 m dia).

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B. Sewage Treatment

(i) Construction of tanks for grit removal, the initial step of thetreatment process;

(ii) Acquisition of land for the treatment plant (130-135 ha).

(iii) Construction of a biological sewage treatment plant to treat aflow of up to 17.8 cu.m./sec., twice the projected average dryweather flow in the year 2002. Using the activated sludgetreatment process, the plant would comprise tanks and equipmentfor primary sedimentation, aeration, settling, and sludgedigestion. Following sludge digestion, the sludge would beconcentrated in drying beds.

C. Drainage

(i) Construction of collector drains (41.0 km of 0.5-2.0 diapipelines and 4.8 km of 2 m x 2m box culverts).

D. Other

Mi) 1 to 1,000 scale digital (computerized) mapping of ASKI'sservice area and sewage treatment plant site, including datacollection and recording of the existing sewerage and drainagesystems;

(ii) acquisition of operation and maintenance vehicles and equipment,including equipment for television inspection of sewers; and

(iii) technical assistance and training to strengthen theInstitutional capabilities of ASKI, including its capabilitiesfor operation and maintenance of sewerage and drainage systems.

5.08 Sewerage - The network and collecter sewers of the Project wouldprovide capacity to meet sewage flows thr-ough the year 2025. For reasons ofaccessibility for cleaning, the diameter of the network sewers is to be atleast 0.2m; approximately 80 percent of the network sewers are this diameter.A present value analysis of alternatives for sizing and staging the largernetwork and collector sewers has shown that there is no advantage in stagingtheir construction.

5.09 The network sewers included would: (i) meet the need for such sewersfor new development areas through 1996 comprising 2,910 ha. within the presentcity boundary and 830 ha. outside the boundary; (ii) expand sewerage coverageby 2,270 ha. in existing gecekondu areas and hence increase the populationserved in the areas from 60 percent in 1988 to 87 percent in 1996; (iii)provide a separate system in the 2,290 ha of the urban area presently servedby a combined sewerage/drainage system; and (iv) replace defective existingsewers in about 25% (1,680 ha) of the gecekondu areas presently served, andabout 15% (880 ha) of the planned areas. Also, there would be improvements toexisting network sewers through provision of 7,100 manholes in gecekonduareas, reconstruction of about 2,700 manholes in planned areas, and relief tothe presently overloaded system serving the central business district bylaying an additional collector (1.0 km of 0.8m dia).

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5.10 The planned collector sewers have been sized to ensure that thesewage flows from the network sewers will be conveyed safely to the two majorinterceptor sewers. Six major collectors would be constructed: Incesu(1.2-2.0 m dia); Hatip (1.0-2.0 m dia); Baglum (1.0-1.8 m dia); Macun (0.5-0.7mdia); Yenibent/Saray (0.5-1.0m dia). Also, 14 smaller collectors (0.5-0.9mdia) would be constructed. Pumping stations on the Incesu and Ova Creekcollectors would pump sewage from the Golbasi and baray/Yenikent areas.

5.11 Two major interceptors, both to be located adjacent to and parallelto the Ankara River, are to be provided to convey the sewage from thecollectors to the sewage treatment plant. Of the two interceptors, the onesouth of the Ankara River will carry most of the flow and will have a lengthof 33.0 km. Iller Bank awarded a contract in 1983 for construction of 14.0 kmof 3.0 m dia pipeline of this interceptor, but only 6.0 km have beenconstructed because of funding limits. There are defects in the constructionrequiring corrections which will be carried out by ASKI. Even with thecorrections, however, the 6.0 km section will be capable of carrying only year2005 flows. The balance of the 1983 contract for the 8.0 km of interceptorremaining to be constructed has been cancelled. The purpose of the NorthernInterceptor is to avoid the need for six crossings of the Ankara River bycollector sewers that would require frequent, costly maintenance.

5.12 Based on a present value analysis of alternatives, the least costarrangement of the interceptors would be:

Diameter of Designed to MeetLength Pipeline Flows to Year

Southern InterceptorIn Urban Area 8.0 km 2.4m 2010

Middle Section(constructed) 6.0 km 3.0m 2005

To SewageTreatment Plant 19.0 km 4.Om 2025

Total = 33.0 km

Northern Interceptor 6.6 km 0.5-1.4m 2025

Additional parallel sections will have to be added to expand the middlesection of the Southern Interceptor in the year 2005, and the urban areasection in the year 2010. This has been determined to be the least costsolution as compared to building the full 2025-year capacity now.

5.13. Sewage Treatment: To minimize pumping near to or at the end of theSouthern Interceptor, 11.0 km of the Interceptor ending at the treatment plantwould be a pressurized inverted syphon. In order to reduce operationalproblems in the pressurized section, preliminary treatment of the sewagecomprising bar screens and grit tanks sized to meet 2010 flows would beprovided before the section.

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5.14 The sewage treatment plant would consist of a conventional activatedsludge secondary treatment system to produce a high quality effluent at BODand suspended solids standards of 30 mg per liter. The plant would have acapacity to treat the projected year 2002 average dry weather flow of 8.9 cu mper sec and peak flow of 17.8 cu m per sec. The GKW Consult/Su Yapi analysisof alternative treatment processes including aerated waste stabilization pondsand trickling filters, determined the activated sludge treatment process to bethe best technical and least cost choice. The plant would be close toself-sufficient in meeting its energy requirements through generation of powerby sludge digestion. Effluent from the plant is to be discharged to theAnkara River, and the sewage sludge, after digestion and settling, will be asuitable soil conditioner and is to be made available to farmers. The Riverwill again contain oxygenated water and will be able to support aquatic life,and will be usable for limited irrigation (i.e., for trees and foods to beconsumed cooked). The Sakarya River into which the Ankara River flows, andthe Sariyar Reservoir into which the Sakarya flows, will again become usablefor unrestricted irrigation.

5.15 Drainage - The drainage works to be provided in the Project wouldsupplement existing drains and reduce the chance of flooding during heavyrainstorms (the flooding threshold would be reached with peak storms at afrequency of 2 years in residential and low value commercial areas, and 5years in high value industrial and commercial areas). The works are to be forhigh priority areas, and comprise 41.0 km of 0.5-2.0 dia pipelines and 4.8 kmof 2.Om X 2.Om box culverts.

5.16 Other - Computerized mapping at a scale 1:1,000 of Ankara, theoutlying areas to be sewered under the Project, and the sewage treatment plantarea would be carried out under the Project. Sewers and drains would belocated and plotted on the maps in a computerized, digital format that allowseasy retrieval and updating of data.

5.17 Engineering consultants would assist ASKI in the detailed design andconstruction supervision of the project works (para 5.24).

5.18 Operation and maintenance equipment would be provided to enable ASKIto efficiently monitor, operate and maintain its sewerage and drainagesystems. Some of the equipment is required now to replace worn out equipment,and the purchase of other equipment will be scheduled later as needs increasewith the expansion of the ASKI system. Expansion of computer equipment willbe included. A list of the equipment is in Annex 4.

5.19 Training of ASKI staff will be obtained under the design andconstruction supervision contracts, and the equipment contracts. In addition,the Project includes technical assistance and training to strengthen ASKI inbilling and collection, management controls and systems, and contractadministration.

Project Cost

5.20 The Project's cost is estimated at $556.8 million equivalent(excluding interest during construction); the estimated foreign currencyportion is US$256.4 million equivalent (46% of the total). ASKI must pay a

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ten percent value added tax on its purchases other than land, and estimatedvalue added tax totalling US$50.4 million equivalent is included. Noallowance for duties and import taxes is included in the estimated costbecause ASKI is exempt. The estimated costs of engineering include US$0.50million already spent under the World Bank PPF advance provided to ASKIthrough the Government to obtain consultant assistance in preparing theproject (para 5.03). Professional man-months of consulting services otherthan those for the sewage treatment plant, which are to be financed by theKfW, are estimated at 1,800 man-months, of which approximately 772 would belocal consultants. The price estimates used in making the cost estimates havebeen obtained from existing contracts for similar works in Turkey, and fromdata and quotations from contractors and suppliers.

5.21 The cost estimate is summarized in Table 5.1. Base costs are inJanuary 1, 1989 prices. The total amount includes physical contingencies ofUS$69.2 million (15 percent of base costs for equipment, materials and civilworks) and price contingencies of $55.0 million (about 11 percent of the basecost plus physical contingencies. The assumed annual rates of inflation of USdollar prices are 8.4% for 1989, 0.2% for 1990, 1.71 for 1991, 2.2% for 1992,3.5% for 1993, 5.4X for 1994, and 5.51 for 1995 and 1996. A further breakdownof costs is presented in Annex 6. More detailed figures are in the ProjectFile.

Table S.1: Sunmary of Project Cost Estimate

ForeignLocal Foreign Total Local Foreign Total as X of

… -------- TL billion---------- ---------USS million - ---- Total

A. Sewers:

1. Network 240.0 148.2 388.3 126.3 78.0 204.32. Collectors 38.7 23.9 62.6 20.4 12.6 32.93. Interceptors 36.0 24.9 60.9 18.9 13.1 32.0

Subtotal: 314.7 197.0 511.7 165.6 103.7 269.3 38

B. Sewage Treatment:

1. Treatment Plant A/ 80.2 135.7 218.9 42.2 73.0 115.22. Land 4.9 0.0 4.9 2.6 ,.0 2.6

Subtotal: 85.1 138.7 223.8 44.8 73.0 117.8 62

C. Drainage: Subtotal: 24.5 14.1 38.6 12.9 7.4 20.3 36

0. Other:

1. Mapping 2.3 2.2 4.5 1.2 1.2 2.32. Engineering 12.9 15.6 28.5 6.8 8.2 15.03. Maintenance Equipment 1.5 9.3 10.8 0.8 4.9 5.74. TA and Training 0.8 3.4 4.2 0.4 1.8 2.2

Subtotal: 17.5 30.6 47.8 9.2 16.1 2S.2 64

TOTAL BASE COST (01/89 Prices) 441.5 380.4 821.9 232.i 200.2 432.6 46

Physical Contingencies 69.4 62.1 131.5 36.5 32.7 69.2Price Contingencies 1.297.2 967.8 2.26S.0 31.4 23.5 SS.O

TOTAL PROJECT COST 1.366.S b/ 1,029.9 3.218.4 b/ 300.4 b/ 256.4 556.8 b/ 46s=2==2= s=2== ======,=== ==== ===

A/ Includes treatment plant engineering.h/ Includes TL 292.1 billion (USS 50.4 million equivalent) of taxes.

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5.22 The proposed loan of US$173.0 million equivalent would finance anestimated 31 percent of the cost of the Project. It is intended that parallelfinancing in the form of a KfW mixed credit ror US$91.9 million equivalentwould finance the cost of the mechanical and electrical equipment for thesewage treatment plant and the detailed engineering design of the plant(para. 6.03). It has been agreed by ASKI that the allocation by the GermanGovernment of the mixed credit funds (expected by January 1990) is to be acondition of Loan Agreement Effectiveness of the proposed World Bank loan, andthat the subsequent effectiveness of the KfW financing agreement by December31, 1990, or the arrangement of alternative financing satisfactory to the Bankby that date, is to be a condition of the loan. The balance of the Project'scost, estimated at US$291.9 million, would be financed from charges tocustomers. The proposed project financing sources and amounts are summarizedbelow.

Table 5.2: Project Financing Sources

Local Foreign Total Percent of---- US$Million- Total

IBRD Loan - 173.0 173.0 31.0%KfW Mixed Credit - 91.9 91.9 16.5%ASKI Revenue 291.9 - 292.3 52.52

Total Sources 291.9 264.9 556.8 100X

Prolect Implementation

5.23 The Project will be managed by a Project Implementation Unit headedby a Director who at present is the Director of ASKI's Planning Department forSewerage (Annex 1). The Project would be the only responsibility of theDirector. The Project Implementation Unit will have qualified staff, and theDirector is experienced. ASKI plans to obtain engineer specialists from localconsulting firms to assist working within the Unit. It is estimated thatabout 180 man-months of specialist consultant services will be required during1990-95.

5.24 Design, provision of assistance in evaluation of bids, andconstruction supervision of the sewerage, sewage treatment, drainage andmaintenance equipment components of the Project would be carried out byconsultants. Consultants would be selected according to the Bank's Guidelinesfor the detailed design of the sewerage system and drainage works, andaccording to KfW procedures for the sewage treatment plant. These or otherconsultants, in due course, would be engaged to supervise the construction.For the mapping, including the collection and recording of data on existingsewers and drains (para 5.16), firms will be invited to submit proposals inaccordance with the Bank's Guidelines, and it is expected that work willcommence during the first quarter of 1990. Preparation of terms of reference,proposal evaluation, and award of contracts for consultant services andtechnical assistance and tr&ining would be carried out by the ProjectImplementation Unit.

5.25 The Project Implementation Unit would also have responsibility formonitoring project expenditures, preparirg requests for loan disbursements,

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and preparing reports on progress, in addition to its responsibilities foroverall project management and coordination.

5.26 It is anticipated that the project work and equipment supplycontracts would be implemented through 19 contracts (Annex 8). Recruitment ofthe consultants for the detailed design of the sewerage components of theProject is under way and should be completed during early 1990. Contracts forthe supply of sewer pipes and the first of the network sewer contracts shouldbe awarded within the third quarter of 1990. Final designs of the collectors,pumping stations and interceptors should be completed by end 1990. The designof 752 of the network sewers will be completed by the end of 1991, and theremaining network design will be carried out up to 1996 in phase withexpansion of the urban area. Consultants for the detailed design of thesewage treatment plant would be recruited under KfW procedures by late 1989 orearly 1990. The design should be completed by the end of 1990. Terms ofreference for technical assistance and training will be prepared by late 1990based on the resilts of a consultant's review and analysis of theinstitutional capabilities of ASKI (para 4.05). The planned Projectcompletion date is December 31, 1996. The project implementation schedule isat Annex 7.

Land Acquisition

5.27 ASKI has begun the process leading to expropriation of the 130-135ha. of land need for the sewage treatment facility (para 5.14). The site islocated beside and along approximately 2 km of the Ankara River, starting at apoint 11 km beyond and downstream from the present western boundary of theCity. The site is uninhabited farmland.

5.28 ASKI's Board of Directors has requested that the Governor of AnkaraProvince make the required decision for the expropriation process that theland is needed in the public interest for a sewage treatment facility. TheGovernor's decision is expected during 1989, following which an officialassessmert of prices is to be made by a committee to be appointed by theGovernor. The prices would be the opening basis for the acquisition, and areexpected to be set during 1989.

5.29 Under the expropriation law, ASKI would then deposit funds accordingto the assessment prices into accounts for the landowners, at which point ASKIcould take possession of the land. It is understood, however, that inpractice, ASKI would take possession only after the landowner accepted thefunds, or after any court dispute over the matter would be resolved in ASKI'sfavor. ASKI anticipates that the prices to be determined by the assessmentcommittee would not be accepted by some or perhaps any of the landowners, andthat a court settlement which would become necessary would award substantiallyhigher prices. For this reason, it has been assumed in the cost estimates andfinancing plan for the oroject that ASKI ultimately will be required to payUS$20,000 equivalent per hectare, even though it is understood that comparableland, but on a smaller scale, recently was sold for less than US$10,000equivalent per hectare.

Industrial Wastewater

5.30 Industrial wastewater discharges in Ankara are not large for a cityof its size, representing the equivalent of 150,000 persons, about 62 of the

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present population. It is projected that by the year 2025, wastewater fromindustries will increase to the equivalent of 460,000 persons, then about9 percent of the projected total sewer flow. None of the 14 major industrialfirms in the area now carry out full treatment of their wastewater. In ordernot to have a damaging effect on the sewage treatment process, four of theindustrial plants would need to pretreat for various toxic substances beforedischarge to ASKI sewers.

5.31 To enable ASKI to control industrial discharges, the City in January1989 approved regulations for the control of discharges to ASKI's sewers(paras. 3.13 and 3.14). A division for monitoring sewage discharges has beenestablished in the Planning Department. Under KfW financing, equipment for amonitoring laboratory has been provided, and laboratory staff are beingtrained by consultants.

Maintenance

5.32 ASKI carries out sewer maintenance with work crews organizedaccording to five geographic areas within the Greater Municipality. Atpresent, the number of crews is insufficient, and the majority of thepersonnel need additional training. In addition, the crews lack modernequipment, and most existing sewers in the gecekondu areas do not havesufficient manholes to permit periodic inspection and preventive maintenance.The crews conduct maintenance (mainly debris removal and repair of breakage)in about half of the city, but it is done inefficiently because of thetraining and equipment limitations, and is carried out usually in response toemergencies.

5.33 ASKI's recruitment and training are now emphasizing strengtheningmaintenance staff. The proposed Project will support up to date maintenancetraining and the provision of maintenance equipment. The Project alsoincludes the mapping of presently unmapped as well as all new sewers anddrains (para. 5.16), and the provision of adequate numbers of manholes on allexisting sewers (para. 5.09). As these features are being introduced,increased preventive maintenance will be carried out, eventually extending tothe entire sewerage and drainage systems. Regular inspections of largediameter sewers by means of remote control television units will be made, andfor all sewers, preventive flushing and cleaning out will be undertaken.

Proiect Related Training

5.34 ASKI has a training division within the Personnel Department. Sometraining of ASKI junior staff is carried out by the division. Training ofsenior staff has been largely through secondment to experienced water supplyorganizations outside Turkey. To date, most training has been on an ad-hocbasis. The only systematic training has been by a training unit ofconsultants under KfW financing for junior staff in pipelaying and leakagedetection.

5.35 The need for the introduction of programs of systematic training forall levels of staff is recognized by ASKI. Consequently the terms ofreference of the consultants provided under Kuwait financing (para 4.05)include the task of designing of a training program for ASKI. The designshould be completed by mid 1990. A provision is included in the proposed loanto assist in financing the training program.

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Procurement

5.36 Procurement arrangements are stunmarized in Table 5.3. An estimatedUS$6.7 million equivalent of goods would be procured through internationaicompetitive bidding (ICB) in accordance with the World Bank Guidelines.US$94.4 million equivalent of goods financed by the KfW would be procuredthrough KfW bidding procedures. The remainder would be US$0.5 millionequivalent of low cost items of operation and maintenance equipment to beprocured through international and local shopping for contracts not to exceedUS$150,000 equivalent. An estimated US$373.9 million equivalent of the civilworks would be for the main sewage collectors and drainage and network sewersto be procured through ICB in accordance with World Bank Guidelines. Anestimated additional US$44.9 million equivalent of sewage treatment plantcivil works financed by ASKI would be procured through local procedures-An estimated US$2.5 million equivalent of new manholes and rehabilitatedmanholes in existing sewers would be procured through LCB-'. The use of LCBis considered to be appropriate because of the lack of interest of foreigncontractors in contracts such as these because of inability to underbidTurkish contractors. Consultants for design, construction supervision, andtechnical assistance are being/would be engaged in accordance with the WorldBank Guidelines for the Use of Consultants, and with KfW procedures.

Table 5.3: Proiect Cost Estimate by Procurement Method a/(Current US$million equivalent)

-------- Procurement Method- -Project Element ICB LCB Other N/A Total

Goods 6.7 - 94.9 b/ - 101.6(5.9) - (0.4) - (6.3)

Civil Works 373.9 2.5 44.9 - 421.3(143.4) (1.0) - - (144.4)

Consultants - - 28.5 c/ - 28.5- - (19.8) - (19.8)

Technical Assistance & Training - - 2.8 d/ - 2.8- - (2.5) - (2.5)

Land Acquisition - - - 2.6 2.6_ - -_0.0) (0.0)

TOTAL 380.6 2.5 171.1 2.6 556.8(149.3) (1.0) (22.7) (0.0) (173.0)

a/ Figures in parentheses are estimated amounts for financing from theproposed World Bank loan.

b/ $94.4 million by KfW procedures; 0.5 million by World Bank procedures forinternatiotial and local shopping.

c/ $6.7 million by KfW procedures; $21.8 million according to World BankGuidelines.

d/ $2.8 million according to World Bank Guildlines.

Local procurement procedures used by ASKI and LCB procedures usedthroughout Turkey are generally consistent with the need for economy andefficiency in the execution of the proposed Project. There are, however,a few LCB procedures which are inconsistent with the ProcurementGuidelines of the World Bank, and there are others which requireclarification. The Government and ASKI agreed during Loan Negotiationson the changes needed to make the procedures acceptable to the Bank.

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5.37 KfW financing of US$91.9 million equivalent would be provided basedon estimates totalling this avAount for foreign currency costs for the sup_lyand installation of electrical and mechanical equipment (US$94.4 millionincluding VAT) for the sewage treatment plant, and the cost of consultants forthe design and construction supervision for the plant (US$6.7 millionincluding VAT). The equipment suppliers and the consultants would be German.The equipment suppliers would be selected through competitive biddingaccording to KfW procedures.

5.38 Contracts with an estimated aggregate value of UJS$6.7 million for thesupply of sewer maintenance equipment are likely to be won by foreignmanufacturers since these items are not presently manufactured in Turkey.Contracts for items of equipment with an estimated aggregate value of US$0.5million are expected to be won by local manufacturers. Qualifying localmanufacturers would receive a preference in bid evaluation of 15 percent ofthe CIF price or the prevailing import duty, whichever is less. Civil workscontracts with an estimated value of US$373.9 million equivalent are likely tobe won in ICB by local contractors who, in recent years, have been difficultto underbid in Turkey. Consulting contracts with an estimated total value ofUS$28.5 million equivalent (including an estimated US$6.7 million equivalentfor the KfW-financed consultants for the sewage treatment plant) are expectedto be won by foreign consultants in joint ventures with local consultants.The remaining US$2.6 million is the estimated cost of the land for the sewagetreatment plant.

Table 5.4: Expected Contract Amounts by Type ofProcurement and Location of Sunppier/Contractor(Current US$ million equivalent)

Probable Location of Supplier/ContractorLype of Procurement Local Foreign Total

Goods 0.7 100.9 101.6Civil Works 421.3 1/ - 421.3Design Consultants 2/ 10.2 18.3 28.5TA and Training 0.3 2.5 2.8Land 2.6 - 2.6

Total 431.1 121.7 556.8

1/ This amount includes approximately US$144.6 million of indirect foreigncost.

2/ Construction supervision included.

5.39 Tender documents and proposed awards for goods having an estimatedcontract value of more than Us$500,000 equivalent and for civil works havingan estimated value of more than US$1,000,000 equivalent would be subject toprior review by the Bank. Contracts for lesser amounts would be subject to

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ex-post review. These limits would result in prior review of contractsrepresenting about 95 percent of the procurement total amount to be financedby the proposed loan.

Disbursements

5.40 Disbursements from the proposed loan would be made for:

(a) 38 percent of expenditures for sewerage civil works;

(b) 100 percent of foreign expenditures and exfactory localexpenditures, and 65 percent of other local expenditures, forgoods; and

(c) 100 percent for consultants and overseas training.

5.41 Withdrawal applications would be supported by standard documentationwith the exception of applications in cases of local currency expenditures forcontracts valued at less than US$200,000 equivalent, which will be submittedon the basis of Statements of Expenditure (SOE). Use of the SOE procedure isjustified based on the appraisal mission's evaluation of ASKI's accounting andadministrative procedures, which were found to be satisfactory. The agreementof ASKI will be sought during Loan Negotiations that the SOE accounts would beaudited annually by an independent auditor satisfactory to the Bank, and wouldbe submitted to the Bank with the report on the audit at the time ofsubmission of the audit reports on ASKI's annual financial statements.

5.42 A Special Account would be opened for ASKI at the Central Bank ofTurkey with an initial deposit of US$10.0 million from the proposed loan(approximately four months of estimated disbursements, on average, during1991-94 when planned annual disbursements will range from US$27 millionequivalent to US$33 million equivalent; see Annex 13). ASKI would makewithdrawals for the Project from the Account based upon appropriatedocumentation. When disbursements from the Account would total aboutone-third of the initial deposit, ASKI would apply to the Bank forreplenishment of the Account. The agreement of ASKI will be sought duringLoan Negotiations to the Special Account being audited and also that thereport on the audit would be sent to the Bank together with the audit reportsmentioned above.

5.43 The proposed allocation of loan proceeds is shown in Annex 9. Theloan Closing Date would be December 31, 1998 based on ai estimateddisbursement period of 9 years, the period for general investment type loansin Turkey.

5.44 ASKI agreed during Loan Negotiations to submit to the Banksemi-annual reports (due February 28 and August 31) on the progress of projectimplementation during the preceding semesters ending December 31 and June 30,respectively. The reports would measure performance against the procurementand implementation schedules (Annexes 7 and 8), and the monitoring indicators(Annex 11). Also, ASKI's agreed that it would submit a Project CompletionReport to the Bank six months after the Loan Closing Date.

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VI. FINANCE

Past Performance and Current Financial Position

6.01 ASKI had good financial results in 1987 because of tariffincreases during the year and the preceeding two years which exceededinflaLion, and because of diaciplined billing and collection from householdand business customers. ASKI self-financed 30% of its 1987 investmentexper,diture, which was substantial and growing, given the financing whichASKI had obtained from the KfW and other sources for foreign currencycosts and some local currency costs for expansion of the water distributionsystem. During 1988, however, ASKI's tariffs were not adjusted despiteincreasing operating costs (with general inflation of 70%), resulting in areal terms decline in cash generation, and contributing in part to areduction in investment expenditure.

6.02 On January 1, 1989, ASKI put into effect tariff increases ofapproximately 502 in nominal terms as a step in restoring, and toward laterexpanding in real terms, its cash generation for the increasedself-financing envisaged in connection with the proposed project (paras.6.05 and 6.06). On June 1, 1989, the tariffs were again increased, theiraveraqe becoming TL 1,532/m3 (compared to the January-May average of TL954/m ), at which nominal level it is intended by ASKI that they shouldremain through the rest of the year (paragraph 6.07). With these actions,and given that ASKI's debt is relatively low (D/E ratio of 38:62) and inpart on concessional terms, ASKI is well positioned to begin carrying outits role financially for the project. Although, its receivables are high,approximately five months equivalent of current billings, the bulk of theseare due from Government and other public agency customers which theGovernment should require, in connection with the project, to begin payingpromptly to ASKI (paragraph 6.06).

Financing Plan

6.03 ASKI's 1989-96 financial requirements consist of: (a) funds forworks already being constructed, principally water distribution worksfinanced in part by credits from the KfW; (b) funds for the proposedproject; (c) funds for other new works, principally further expansion ofthe water system; (d) debt service; and (e) increases in working capital.The proposed financing plan calls for obtaining approximately 72% of theestimated US$1,542 million equivalent needed through charges to customers,and for the balance of the funds to be borrowed; 112 of the total would bethe proposed loan of US$173.0 million equivalent from the World Bank, and6% would be the proposed mixed credit for the Project from the KfW. Theproposed KfW credit for the project would be a Financial Cooperation Creditof DM 110 million at 22 interest, 10-year grace, and 30-year term; and aFinancial Credit of DM 64.5 million at 8% interest, no grace period, and10-year term. The plan may be summarized as follows (annual figures arepresented in Annex 13):

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Table 6.1: Financing Plan for ASKI, 1989-96

1989-96US$ MillionEquivalent

Financial RequirementsOn Going Works 330.2 21.4Proposed Project 5 5 6 .8a 36.1Other Works 101.8 6.6Debt Service 240.2 15.6Increase in Working Capital 312.9k' 20.3

Total 1,541.9 100.0

SourcesRevenue from Sales 1,039.9 67.4Customer Contributions 75.5 4.9Proposed World Bank Loan 173.0 11.2Proposed KfW Credits 91.9 6.0Other Borrowing co 161.6 10.5Total 1,541.9 100.0

a/ The source breakdown for the estimated project cost of US$556.8 millionequivalent is: $173.0 million, World Bank (31.02); $91.9 million, KfW(16.5%); and $291.9 million, revenue from sales and customer contributions(52.5%).

b/ It is likely that part of this amount will be used for as yet unidentifiedinvestment after 1993; if this should not happen, tariffs could then bereduced.

c/ Two existing and two new KfW credits, a loan from the EuropeanResettlement Fund, and a loan from the Kuwait Fund, each for waterdistribution expansion.

6.04 As indicated in Table 6.1, ASKI's "Other Borrowing" is expected toprovide approximately US$162 million equivalent during the period, whichincludes am unts of US$40 million equivalent from existing KfW credits, US$20million equivalent from the European Resettlement Fund, US$21 millionequivalent from the Kuwait Fund, and US$28 million equivalent from expectednew credits from the KfW for further expansion of the water system. ASKI hasexpressed interest in obtaining a simiiar amount of local currency financing,but has not yet determined whether this is feasible (para. 6.08). Theexisting KfW financing consists of mixed credits in approximately 54bconceseional/462 "commercial" proportions: the concessional part at 2binterest, 10-year grace, 30-year term, and the "commercial" part at acommercial, variable rate of interest, no grace, and 10-year term.

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Future Finances

6.05 Because of uncertainty about the impact on water consumption percapita of ASKI's recent tariff increases and possible future increases, ASKI'sfinancial requirements have been analyzed under varying assumptions regardingconsumption per capita and timing of the impleffentation of the proposedproject. Results of the analysis are presented for two cases: (i) a caseselected to show how ASKI might adjust to a halt in per capita consumptiongrowth combined with strong objection by customers to further tariff increasesin real terms; and (ii) the case of the financing plan indicated above (paras.6.03 and 6.04). The latter reflects ASKI's 1990-96 implementation plan forthe Project compared to 1990-98 stretched implementation in the caseillustrating an adjustment to lower than expected sales volumes and greaterthan expected resistance to tariff increase.

6.06 The revenue projection beyond i989 in the 1990-96 financing plan isbased on assumptions that: (a) ASKI's tariffs would be adjusted periodicallyfor inflation to maintain their value in real terms in re'lation to July 1989;(b) in addition, each January 1990, 1991, and 1992, the tariffs would beadjusted by 14% in real terms; and (c) by December 31, 1990 and thereafter,ASKI's accounts receivable would be the equivalent of two months of billings(Annexes 12, 13, and 14). These adjustments would produce an average tariffof US$1.18 /m3 equivalent (VAT included) by 1992 (TL 2,495/m3 in July 1989TL), which leve'- would be maintained in real terms thereafter, and wouldenable ASKI to self-finance the balance of its requirements not covered by theexisting and proposed foreign loans and credits indicated in Table 6.1. IfASKI should, however, face a prolonged period of flat sales per capita andgreater than expected resistance to tariff increase, then by extending theproject implementation over an additional two years, real terms tariffincreases of only 9S would be needed in 1990, 1991, and 1992. This wouldresult in an average tariff of US$1.03/m3 in 1992 (TL 2,185/m3 in July1989 TL). Affordability of the tariffs is discussed in paragraphs 7.08-7.10.

6.07 ASKI's annua. self-financing ratios under either of these cases(i.e., the percentage of the annual investment total financed with cashgenerated from customers, including their contributions, after covering cashoperating expenses and debt service) would average close to 552 during1990-93, and would be no less than 43% in any year. ASKI has therefore agreedto achieve self-finsncing of at least 452 of its annual investment expenditurein 1990 and 1991, and 60% in 1992 and each year thereafter. ASKI has agreedalso that it will reduce its accounts receivable to the equivalent of twomonths of billings by December 31, 1990. The reduction can be achieved byprompt payment to ASKI of outstanding ASKI bills to Government and otherpublic agency customers. The Government has stated that it will follow up sothat the objective will be achieved.

6.08 Although ASKI is prepared to self-finance its investments at theagreed levels, it would prefer to obtain local financing for a portion of itslocal currency requirements if that could be shown to be advantageous and theBank would agree. Possibilities being considered by ASKI for obtainingadditional local funds include ASKI bond issues and contributions ofmunicipality finids generated through real estate sales and rents. Details arebeing developed by ASKI, but it is too early to estimate amounts which mightbe obtained. ASKI has agreed that it would only undertake additional

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borrowing in excess of the total cumulative amount or US$5 million equivalentsub4ect to agreement of the Government and the Bank. In addition, ASKI hasstatad that 4ts desired use of local financing, at most, would be limited toamounts needed during each year so that tariffs would not require increases inreal terms. It is estimated that if ASKI should obtain sufficient local fundsfrom outside sources to permit it to limit further tariff increases only tocompensation for inflation, ASKI then would self-finance its investments at noless than 35% annually during the project implementation period.

Tariff Structure

6.09 As mentioned earlier (para 6.02), ASKI's tariffs were increased 602ron average in June 1989 to the following amounts:

Table 6.2: ASK! Tariffs (VAT not included)

Percentage ofTariff Total Consumption

Residences: (TL/m3 )

- from 0 to 5m3/month 247.5 25.6- from 5 to 10m3/month 825 15.4- above lO'/month 1,650 9.7

Other Customers 2,400 49.3a_

Weighted Average 1,532 100.0

-/ Approximately one-third industrial/commercial, two-thirds Government andother public institutions.

The rates apply equally to customers receiving water service only andcustomers receiving both water and sewerage service. Customers receiving bothservices, therefore, are subsidized by the water-only customers, although manyof the latter are benefitted by sewerage even though not connected to andusing it themselves. Significant subsidization is provided to residentSilcustomers by commercial, industrial, and governmental customers, with thegreatest benefit going to lower quantity, mainly low income, consumers. Asmay be seen in Table 6.2, the lower quantity consumers are charged much lessthan the overall average tariff, and as is explained later (para 7.07), muchless than the long run marginal cost of their services.

6.10 ASKI also applies a variety of charges, fees, and penalties coveringrepair and maintenance services, emptying of septic tanks, and reconnectingafter cutoff for non-payment of bills. In addition, ASKI soon will beginapplying special industrial waste surcharges in cases of high concentrationwastes (para. 3.14).

Financial Reporting

6.11 ASKI has agreed: (i) to provide to the Bank by May I and November 1each year two-year financial reports forecasting as early as possible

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significant variations from planned expenditures and financial objectives sothat, if necessarv. appropriate corrective action may be taken; and (ii) totake appropriate corrective action if the forecasts should indicate that ASKIwould not meet its financial objectives.

VII. ECONOMIC EVALUATION AND RISKS

Project Benefits

7.01 The Project would provide first-time sewerage for approximately850,000 people; it would rehabilitate or replace existing sewerage for500,000; and it would provide means to treat the City's sewage, which atpresent, flows exposed through parts of the City in tributary streams to theAnkara River and in the River itself (paras. 5.08 to 5.14).

7.02 The sewerage would enclose the otherwise open flows, and, togetherwith the treatment facility, would thereby eliminate health hazards, odors,and other pollution-related problems in the City and along the Ankara River tothe west outside the City. All inhabited areas would be provided withsewerage except for inaccessible squatter areas, which are relatively small,on the steepest hillsides. Without the facilities, and given the increasingpopulation densities, increases in the incidence of disease and deteriorationin other aspects of living conditions would occur.

7.03 In a,ddition, the Project would provide storm-water drainagefacilities to reduce and in most cases eliminate the possibility of floodingfrom otherwise storm-loaded creeks and sewers which can present healthhazards from sewage contamination as well as the threat of physical damage andloss of life due to drowning (as has occurred from time to time in areas oflow lying housing). This would be done by constructing new drainage works andby improving existing ones, and by eliminating present sewage discharges intoexisting works constructed only for drainage purposes and thereforeinappropriate as carriers of simultaneous flows of both types.

7.04 The Project also would result in future cost savings through bettermaintenance made possible through provision of manholes on existing sewers,maintenance equipment and technical assistance and training.

Rate of Return

7.05 Projected revenue attributed to sewerage and drainage operations hasbeen used as a benefit measure in calculating an internal rate of return forthe intended sewerage, sewage treatment, and drainage investment on the basisof the 1990-96 project implementation plan. The figures used are thedifference between projections of combined water, sewerage and drainagerevenue, and an attribution of revenue for water only calculated at themarginal cost of water (Annex 15). This difference is considered,accordingly, to be the portion of the combined revenue which may be attributedto sewerage and drainage.

7.06 The combined revenue through 1993 has been determined according toeach year's local currency financing requirement for the year's totalinvestwent in water, sewerage, and drainage (as in Annexes 12 and 13). Theamounts beyond 1993 have been projected at marginal cost rates, which are

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lower than the preceding years' rates, but are larger than needed to satisfythe projected financing requirements in those years. For the determination ofthe marginal cost of watet, it has been estimated that without the plannedwater investment, which includes rehabilitation works, the water sales volumewould decline at a rate of 3% per year through 1997 du:, to increasing leakage.

7.07 The resultant internal rate of return is 11X, which, being aninternal financial rate is very likely less that the "in principle" economicrate. It is considered impractical to quantify the project benefits (e.g.,health and health-related benefits, and aesthetic benefits) and calculate aneconomic return.

Affordability

7.08 It is estimated that Ankara household incomes averaged approximatelyUS$270 equivalent per month in 1988, with an estimated distribution asfollows:

Average Monthly IncomeHousehold Income Groups (US$ Equivalent)

Lowest 20% 7020 to 402 11540% to 60% 160601 to 80% 255Highest 20% 750

Average 270

Since, according to the 1985 census, the average of the number of persons perAnkara household is 4.3, and since, on average, there are approximately fivepersons per ASKI connection, it is assumed that averages of customer incomesat ASKI connections are no less than the above figures.

7.09 In the financial projections for ASKI, the tariff average isprojected to reach its highest value in real terms by 1992, which, dependingo.i the timing assumed for the implementation of the proposed project, would beapproximately TL 2,185/mi3 (US$1.03) or TL 2,495/m3 (US$1.18) (para.6.06). It is assumed that the tariff structure underlying the projectedaverages would be the same as today's structure, expanded to the followingamounts:

1992 Charge in TL per m3 (VAT included)W'Customer Categories Low Alternative-' High Alternative

Residences: 0-5m3/month 355 ( .17) 405 ( .19)5-10m3/month 1,175 (.55) 1,340 ( .63)lO+m3/month 2,355 (1.11) 2,690 (1.27)

Other Customers 3,420 (1.61) 3,905 (1.85)Overall Average 2,185 (1.03) 2,495 (1.18)

a/ Figures in parentheses are US$ equivalents.b/ The Low Alternative assumes project implementation is completed in 1998;

the High Alternati-e assumes 1996.

- 36 -

These amounts would result in monthly charges in the range of US$2-8 for mostresidential customers, but charges could reach the range of US$25-50 and morein cases of high quantity/high income customers.

7.10 In the case of a five-person customer with income of US$70 equivalentper month (i.e., the average of the lowest income group, well below thepoverty threshold), consumption of 7.5m3 per month (50 liters per capita perday, an adequate minimal amount) would cost US$2.25-2.80 equivalentapproximately 3-4% of the monthly income. This is more than double what suchcustomers pay today, but nevertheless could, by most developing countrystandards, be considered affordable. In the case of a five-person customerwith an income of US$115 per month, the average of the next to lowest group,consumption of 11.2m3/month (75 liters per capita per day, close to thepresent residential average) could be paid with approximately 5% of theincome, which could be considered to be the upper limit of afforddbility.There should, of course, be no question of affordability of the projectedrates to customers in higher income groups (the upper 60X).

Poverty Impact

7.11 It is estimated that about 35% of the Greater Ankara population atpresenit live in households with monthly incomes below the poverty threshold(household income of US$120 equivalent); and that, ae a first approximation,this proportion will continue through the project period because ofoffsetting, within overall averages, of increasing incomes of continuingresidents by incomes of recent immigrants to the city, most of which, onaverage, would begin working in the city in relatively low paid employment.With this percentage, it is estimated also, therefore, that by end 1996, theplanned end of the project period, some 950,000 persons will be iiving belowthe poverty threshold; and it is this group which at present suffers most frominadequate sewerage.

7.12 The greatest benefits of the project will be obtained by about800,000 of the above group who will receive first-time sewerage orrehabilitation/upgrading of present substandard sewerage. (The balance ofabout 150,000 persons would be those who live on steep hillsides inaccessibleto service, as mentioned in para 7.02). Substantial reductions in incidenceof disease should be expected, particularly among children. Also, in additionto this and other direct improvements in the group's quality of life, therewould be the positive effect on income for persons realizing greaterproductivity and earnings as a result of their avoidance of disease.

Environmental Impact

7.13 The project's environmental impact would be favorable in everyrespect but the need to use the 130-135 ha. of agricultural land outside thecity for the sewage treatment facility. Open flows of sewage andsewage-contaminated overflows of stormwater in the city would be eliminated,thereby eliminating related health (including insect) problems, odors, andother detrimental effects. In addition, water in the Ankara River, theSakarya River, and the Sariyar Reservoir below the City would become usablefor irrigation.

- 37 -

Risks

7.14 It is believed that the only significant risk for the project is thepossibility that significant delay in implementation could occur at some timebecause of a lack of local currency resulting from insufficient adjustment oftariffs to compensate for inflation. As previously mentioned, ASKI has agreedto procedures designed to focus attention well in advance on any need fortariff adjustment (para 6.09).

VIII. AGREEMENTS REACHED AND RECOMMENDATIONS

8.01 The following agreements were reached during negotiations:

(a) The allocation by the German Government of the KfW mixed creditfunds for the sewage treatment plant is to be a Condition ofEffectiveness of the Loan Agreement for the proposed loan fromthe Bank, and the subsequent effectiveness of the KfW financingagreement by December 31, 1990, or the arrangement ofalternative financing satisfactory to the Bank by that date, isto be a condition of the loan (para. 5.22);

(b) The signing of appropriate local agreements for the provision ofsewerage and sewage treatment services by ASKI to outlyingdistricts included in the Project is to be a condition ofdisbursement from the proposed loan of funds for constructingsewers in those districts (para 4.15);

Cc) ASKI will put into effect and begin to implement industrialwaste management regulations acceptable to the Bank byDecember 31, 1990 (para. 3.14);

(d) ASKI will produce funds from internal sources enabling it toself-finance no less than 45S of its annual investmentexpenditure in 1990 and 1991, and 602 in 1992 and each yearthereafter (para. 6.06);

(e) Before May 1 and November 1 of each year, ASKI will reviewwhether it would meet the agreed self financing levels set forthin subparagraph (d) above on the basis of forecasts prepared byASKI and accepted by the Bank for the current year and thefollowing year; and if the review should indicate that ASKIwould not meet the agreed levels, ASKI will promptly takemeasures enabling it to meet the levels, including theadjustment of ASKI's tariffs (para. 6.09);

(f) ASKI will reduce its accounts receivable to no more than theequivalent of two months of current billings byDecember 31, 1990 (para. 6.06);

- 38 -

(g) ASKI will provide to the Bank by the end of February each yearfor review and comment by the Bank a report on the status of theASKI investment program (para. 6.06);

(h) ASKI will obtain the agreement of the Government and the Bankprior to contracting any debt in excess of the total cumulativeamount of US$5 million equivalent, other than the intended KfWcredit for the Project's sewage treatment facility, until thecompletion of the Project (para. 6.06);

(i) ASKI will correct deficiencies in its accounting and financialreporting, including the revaluation of its assets, byDecember 31, 1990 (para. 3.09).

8.02 In addition, ASKI agreed during negotiations on standardrequirements for: progress reports on the Project (para 5.42); annualaudits (para. 3.11); financial reporting to the Bank (para. 6.09);administration of a Special Account (para 5.40); use of Statements ofExpenditures (para 5.39); preparation of a Project Completion Report(para 5.42); and the use of Wcrld Bank Guidelines and changes needed tomake LCB procedures acceptable to the Bank (para 5.34).

8.03 With the above conditions and agreements, the proposed projectwould be suitable for a Bank loan of US$173.0 million equivalent to theAnkara Water Supply and Sewerage Administration for a period of 17 years,including five years of grace, at the standard variable interest rate.

(8732D)

- 39 - A

REPUBLIC OF TURKEY

ANKARA SEWERAGE PROJECT

ASKI Oft ization Chart

. _m

_liz'_~

I~~~ _'e-' I

t~ Gto t e

' ', I 'I I. j"| c^wt hd Is

spcial IntIJ Adt Pblic bl-tiors LoplAssistant$

I~~ ~~~~~~~~~ . I .t. Ii Directo Assistant General Directore Assistt Geeralortorl

Administration & Fina-te Ingi1eering ( operations & Naintenance

Persnel I _ f Wate and_

Demr As In

- Custir I IPluning. Studies _ &Water & Sewagel Service l | & Oes1.n Treatment Plants

oydet & Finance | Construction M| -|ukn

-_ Cequter Center

1 iro ntallsting a Central

REUBLIC OF TURKE

AM= SEWERG PROJECT

Historical and Projected Population tn ASKI Service Area and Perfons Served

1 199 m M m2 1993 1994 1995 1996 1999 2000 2010 2025a. PllPILtrllAi Fe. f DIstricts Iectivlag Service 2.403 2.453 2.504 2.56 2.737 2.801 2.967 3.000 3.067 3.134 3.203 3.271 3.340 3.403 5.224

U2 wpopletin Chugp Iillise. 0.049 0.050 0.051 0.032 0.191 0.04 0.066 0.133 0.067 0.067 0.069 0.06 0.069 0.416

il Popeltle Chup III 2.001 2.091 2.09 2.091 7.081 ?.341 2.J61 4.641 2.232 2.191 2.20M 2.121 2.111

3. IER s9 .T

3.1 Pol.tieD eved hdlear 11) 93.0t 94.01 95.02 96.01 %.5I 97.02 97.02 97.01 97.01 97.07 97.01 97.02 97.02 97.01 7.02

3.2 Populatiso SGeni KUtne (iulsimi 2.234 2.310 2.370 2.453 2.641 2.716 2.790 2.910 2.974 3.039 3.10 I .1i 3.239 4.245 5.067

1.3 P .lti. Serv"" Cng .lliol1 0.045 0.071 0.on 0.074 0.167 0.075 0.064 0.129 0.064 0.O 0.06 0.065 0.066

3.0 Peplatiom Slnai Chugs It) 2.11 3.21 32 3.21 7.U 2.91 2.4U 4.61 2.22 2.21 2.21 2.12 2.1U

.3 $Al" Per Capita llpedla fie 120 122 126 131 135 140 145 149 153 156 160 163 92 233

3.6 fit. tonswptim Per Capit llped) 124 130 133 136 139 142 145 149 152 156 159 162 166 194 235 g

3.J Totl Sales - bIllis. Cm.h.)I 96. 101.0 105.9 112.1 126.3 133.9 12.1 154.0 161.9 169.8 176.9 185.3 192.9 297.3 430.9

3.9 UatsrLassmlacl.aetend canu.) 45 42 401 391 3 352 331 302 m 251 252 252 252 25 252

3.9 loim Proced Iuillim co.6.Ia.1 176 174 177 195 204 206 212 220 222 226 236 247 257 397 375

C. a2M - VTER 1OK1I

C.l pulatim lered leaUlli 2.234 2.305 2.378 2.43 2.641 2.716 2.780 2.910 2.974 3.039 3.106 3.1n2 3.239 4.245 5.06)

L.2 Pwsn pr Connctio 5.20 3.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24

C.U 1I of (ectm Itbmsusts 429.7 440.0 453. 466.2 504.0 510.5 530.7 555.3 567.7 510.1 592.9 605.5 618.2 810.1 967.0

C.4 tCencttlo Chog Ith ts ) 51.0 10.3 13.9 14.3 35.9 14.3 12.2 24.6 12.4 U2.4 12.6 12.6 12.0

C. cEmestinm hue 12) 13.51 2.42 3.22 3.22 7.61 2.92 2.4t 4.62 2.22 2.n 2.22 2.12 2.12

3. I 11leis - $ElmE

3.1 Ppuatio msctled le 8n an m 9 911 92 9 m 922 2 m m m 911 9n3

3.2 ulatiom C(mcKtd tsillios 2.09 2.16 2.23 2.30 2.49 2.59 2.64 2.76 2.92 2.89 2.9 3.01 3.07 3.9 4.86

33 Person pr Cmuc oo 5.20 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24 5.24

3.4 sr' I cuit ctlmus Ithmsa.sl1 402.0 411.9 425.2 439.0 475.3 491.7 503.3 526.7 530.4 550.2 562.3 $74.2 596.4 ?"6.0 92.2

3.5 ConuM ChU g tth tudl 51.79 9.913 13.34 13.70 3.31 16.45 11.59 23.35 11.76 11.?$ 12.11 £1.93 12.11

1.6 CbsUo Chug III 14.8n 2.52 3.22 3.22 6.32 3.51 2.41 4.62 2.22 2.22 2.22 2.12 2.11

od. _

- 41 - ANNEX 3

Republic of Turkey

Ankara Sewerage Project

Water Demand and Supply

400

350 Egrekkaya (+80)

300

Existing Sources (287)

250

200

0

150

100

50

0 , * * * * * * * * l

1989 90 91 92 93 94 95 96 97 98 99 2000

Year

( ) Long Term Average Incremental Yield in Million Cu. M/Annum

Water Demand

- 42 -ANNEX 4Page 1 of 2

REPUBLIC OF TURKEY

ANKARA SEWERAGE PROJECT

Selection of Sewage Treatment Process

Background

1. In a 1969 study for the Turkish authorities, the joint venture ofCamp/Harris/Mesara (CHM) consultants (USA/USA/local) recommended that anactivated sludge treatment plant be built to treat Ankara's sewage. Theproposed plant was recommended to be sited adjacent to the Ankara River about2 km west of the present Greater Municipality boundary. The recommendationwas based on an analysis limited to two types of treatment plants: tricklingfilters and activated sludge. The analysis indicated that the activatedsludge plant would be the less expensive means of meeting the desired effluentquality. No action was taken on the recommendation because of lack offinancing.

2. In 1979, the local consultants BMB-United Engineering Ltd. (BMB)reviewed the CHM recommendations for the treatment process and plantlocation. The expansion of Ankara had occurred mainly in a westerlydirection, and the plant site recommended by CHM in 1969 was no longeravailable. BKB concluded that the most suitable location for the plant was 11km downriver from the western boundary of the city, and BMB reconfirmed theCEM recommendation of an activated sludge plant. Again, no further action wastaken.

3. A joint venture of Lavalin/CH2M Hill/Temel (LCT) consultants(Canadian/US/local) was employed by the Ankara authorities in September 1988,financed by a World Bank Project Preparation Facility advance, to review andupdate the previous recommendations and to prepare a recommended program forsewage collection works. At the same time, the KfW financed the consultantsGKW Consult/Su Yapi (German/local) to carry out a pre-feasibility study of thesewage treatment plant (KfW was considering the possibility of financing theplant's electrical and mechanical equipment). The new consultants confirmedthat the site recommended by BMB for the plant is still the best choice.Almost all of the sewage will flow to the site without pumping; access to thesite is through a narrow valley with the surrounding hills separating the sitefrom the Ankara urban area; and there is a considerable area of flat,uninhabited, low yield agricultural land available for the site.

4. In other key respects, however, preliminary conclusions reached inearly 1989 by the two consulting groups conflicted, the LCT analysis andrecommendation indicating stabilization ponds as the preferred solution, andthe GKW/SY group indicating the activated sludge process. A comparison of thework of the two groups showed significant differences in assumptions andcriteria, which led in turn to undertaking a joint exe.:ise in Ankara in May1989 by the consultants, Turkish authorities and Turkish technicalspecialists, and representatives of the World Bank and the KfW.

- 43 -ANNEX 4Page 2 of 2

Current Analysis and Conclusions

5. One of the main factors in the selection of the treatment process isthe potential use of the rivers and reservoir downstream from the treatmentplant. The most critical period is the summer, when the flow of the AnkaraRiver at the treatment plant will be, at its minimum, approximately only l..Om3/sec compared to the plant effluent of approximately 9 m3/sec.Simulation modeling was carried out by GKW/SY to estimate effects of theeffluent from various alternative sewage treatment schemes on: (a) the AnkaraRiver; (b) the Sakarya River (the Ankara River is a major tributary); and (c)the Sariyar Reservoir into which the Sakarya River flows. The modellingshowed that having effluent with no more than 30 mg/l of Biochemical OxygenDemand (BOD) and 30 mg/l of Suspended Solids (SS) is essential to the healthof the rivers and reservoir. It was concluded that the treatment process tobe selected should meet this standard.

6. Three treatment processes were evaluated: (a) waste stabilizationponds; (b) activated sludge; and (c) a hybrid of (a) and (b). The results ofthe evaluation were:

(a) Waste Stabilization Ponds would not meet the effluent criteriaunless a high degree of mechanical aeration would be used duringwinter when the biological processes are slowed due to thecolder temperature. Aeration to this degree would impose costsleading to a total cost which would not be competitive with thealternatives. The possible advantage of ponds in eliminatingpathogenic organisms by long detention of the organisms inmaturation cells would be offset by the property of growth ofalgae in the cells during summer, which would introduceunacceptable levels of algae-formed BOD. The cost of algaeremoval or land application of the algae-loaded effluent wouldbe prohibitive.

(b) The Activated Sludge Process is less affected by seasonaltemperature extremes, would have the advantage of relatively lowcivil works costs to offset in part its higher equipment costs,and, thus, was found to be the least cost solution. Another keyfactor leading to the least cost result is that the processwould include anaerobic digestion of sludge to produce gas forelectric power generation to supply virtually all of the plant'senergy needs.

(c) The Hybrid Plant comprising Primary Settling and SecondaryStabilization Ponds was determined to be more expensive than theactivated sludge solution for the desired effluent standard,mainly because of the costs of aeration during winter and ofalgae removal during summer.

- 44 - ANNEX 5

REPUBLIC OF TURYEY

ANKARA SEVERAGE PROJECT

OPERATION & uAINTEaNCms goUIPxENT

UNIT PRICE TOTAL PRICE

EQUIPMENT UNIT in Dollars in Dollars

Combined jetting/suction equipment 5 200,000 1,000,000

Truck mounted suction plant 5 100,000 500,000

Trailer mounted winching devices 8 26,000 208,000

Trailer mounted jetting machine 8 25,000 200,000

Rodding equipment 20 4,000 80,000

Crawler excavator 1 200,000 200,000

Rubber tire excavator 4 160,000 640,000

Compressor 5 20,000 100,000

Television truck complete 2 60,000 120,000

Four-wheel-drive vehicle for

trailer mounted equipment 4 25,000 100,000

Electronic flow monitors 5 4,000 20,000

Dumper truck (5 ton) 10 30,000 300,000

Dumper truck (10 ton) 2 45,000 90,000

Loader 2 140,000 280,000

Mobile crane (20 ton) 2 150,000 300,000

Mobile crane (50 ton) 1 200,000 200,000

Mobile crane (70 ton) 1 250,000 250,000

Truck with loading arm (7 ton) 4 40,000 160,000

Low bed lorry (40) 1 80,000 80,000

Mobile generator with light 2 30,000 60,000

Grader (medium size) 1 130,000 130,000Computer equipment & software - - 50,000

Miscellaneous equipment (about 2%) 102,000

TOTAL 5,170,000

- 45 -

ANNEX 6Page 1 of 5

REPUBLIC OP TUZREY

QN$ARA SEWERAGE PROJECT

Prolect Cost Estimates

1. Summary cost estimates by expenditure category, year and financingsource are in Tables A5.1 through A5.4. Detailed estimates are included inthe Project File. All of the estimates were prepared from January 1989prices, and the base estimates are presented in these prices.

2. Cost estimates for the sewerage and drainage civil works are based on ananalysis of the inputs (equipment, materials and labour) required to carry outthe work at Turkish rates. For the sewage treatment plant, the equipmentcosts are based on quotations from suppliers in Germany, and the civil workscost is based on recent bid prices for similar construction in Turkey.

3. The cost of consultants for project coordination, design, constructionsupervision, and technical assistance are based on man-month estimates and onrates charged by foreign and local consultants in Turkey.

4. Physical contingencies are 15 percent (except for land where 0 percentcontingency has been used). Value added tax of 10 on local equipment,materials and services is reflected in the local cost component of theaffected components. Import duties are not included since ASKI is exempt.

table A5.1 Project Cost Sy Coponent and Eaeoditure Category

(TL 8Illionl

Suer _Io Phiucal C taqmcisTreatmt blated

Iblut CollKtOrs Interceptors Plant Drainae Land lAptls a Total I Ammt333I333 3333333 333333333333 33333:33 333333333 =333333 3333333 33333 3333 3:333333

A. Civil torts

Loul 225.2 36.3 33. 66.3 23.2 0.0 0.0 384.4 15.0 60.IForeip W3.1 26.3 27.4 0.0 1.4 0.0 0.0 232.2 15.0 35.1

kb-Totals Civil Wts 3U.3 62.6 60.9 6.3 38.6 0.0 0.0 61.6 15.0 5.8

L. fleterials ad Eqeipet

Local 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.6 13.0 0.1Foreign 0.0 0.0 0.0 142.3 0.0 0.0 10.2 152.6 18.0 28.1

SToteIs Mat. & SeWI. 0.0 0.0 0.0 142.3 0.0 0.0 10.8 153.1 19.0 28.2

C. C0n'-itats

Local 8.1 1.3 1.2 0.0 0.8 0.0 2.4 13.9 15.0 2.1Foip 12.0 1.9 2.0 30.2 1.1 0.0 6.2 33.3 16.0 5.4

Skb-ntel: CenmtaFsk 20.1 3.2 3.2 10.2 2.0 0.0 8.6 47.3 16.0 7.5

l. and 0.0 0.0 0.0 0.0 0.0 4.4 0.0 4.6 0.0 0.0

ToliL. u in COSTS 4UE.3 6.0 64.1 210.1 40.6 4.6 19.4 821.6 16.0 131.4

Physical Cootinmias 61.3 9.9 9.6 41.7 6.1 0.0 2.9 131.5Price Cmstwuclus 134.1 204.1 209.1 383.3 79.6 0.0 44.8 2265.0

TIL FDE 51 191.6 279.9 2.8 643.8 126.3 4.6 61.2 3219.1

Tan 164.9 25.4 25.7 59.5 11.5 0.0 6.1 292.3

00%of Eagleela Eclie

Table 45.2: Project Cost by Expenditure Category and Year Including Contingencies

Totals Including Coatanqencis Totals Including Continq tfs

ITurtisi Lira Billin) (NUS lillion)

1m 199 1991 192 93 194 1995 199 Total 1no 10 lSSI 1m 2 "3 1994 1 1996 Total

222S 2222 C= 222 23 332_3 onto $.Cm* C3C3 33332 323 3222 233 2323 3232 C233 2332 2332 3C332

A. Cival brks

Loal 0.0 45.3 229.4 350.3 307.2 337.9 202.9 65.6 1619.9 0.0 14.6 55.4 66.5 60.8 46.6 25.7 7.6 277.2

forael 0.0 21.5 95.9 157.2 203.6 211.5 127.1 41.1 664.1 0.0 9.1 23.1 29.9 32.0 29.2 16.1 4.9 146.1

6blettal Civil borI 0.0 74.0 325.r 507.5 590.9 549.3 330.0 106.6 2493.5 0.0 23.7 70.5 96.3 92.9 75.9 61.9 12.4 421.3 1

D. ltabrials and Iquipat

LAel 0.0 1.5 11.1 9.6 12.3 12.4 7.2 0.5 54.5 0.0 0.5 2.7 1.6 1. 1.7 0.9 0.! 9.6

Ferige 0. 9.2 10.1 93.1 117.2 124.3 70.6 3. 527.1 0.0 3.0 26.3 17.8 19.4 17.2 6.9 0.4 91.9

sub-Total: ht. a Euip. 0.0 10.7 120.1 103.3 129.5 L36.7 77.9 3.6 591.7 0.0 3.4 29.0 19.6 20.3 19.9 9.1 0.4 101.5

C. biawltata

Local 3.9 0.5 7.9 0.0 7.3 6.7 5.2 5.5 52.9 1.7 2.7 1.9 1.5 1.2 0.s 0.7 0.6 11.2

ferip 6.9 15.2 13.5 SA 13.7 13.7 11. 7.3 ".3 3.1 4.9 3.3 2.6 2.2 1.9 1.4 0.9 20.1

Teta: C tueitmts t0. 23.7 21. 21.9 21.1 20.4 16.3 12.8 148.1 4.9 7.6 5.1 4.2 3.3 2.0 2.1 1.5 31.3

3. Lad 0.0 2.5 2.5 0.0 0.0 0.0 0.0 0.0 5.0 0.0 1.3 1.3 0.0 0.0 0.0 0.0 0.0 2.6

_ ~~~~- - - - - - - _- - - -_-- - -_- - -- --- - -- - - - -_-- - - - -- - _ _ _ _ _

ILT ffa. CEOT C7 10.4 110.9 49.1 62.7 741.4 706.5 424.1 123.1 3i.3 4.8 36.0 114.0 120.0 116.5 97.5 53.1 14.3 556.0

322223 322222 3:2*= 2S232z 323323 33322 32223 m22333 3annot 3a333s :=33 =2 =3=32 123 =32c23

0Q10%

o

fable A5.3: Project Cost by Component and Tear Inciudtng Contingencies

Totals Including Contigencnes Totals Includiag Cotlogencinilurkish Lira Billmonl (Ul9 lSillin)

_ _ . _ _ _ _ _ _ _ . _ _ _ _ _ _ _ ____ ___ --- - -- --

1m 10 1991 1m m3 1994 15 1996 Total IM I90 I" IM I93 I I9 199I Total333s 33,3 3sm3 8330 #33 =33 a33 333 3 3 3 33

A. sm

Uetaehk 0.0 46.2 145.0 248.8 349.8 443.4 278.0 106.7 1657.9 - 14.9 35.0 51.0 58.1 61.2 35.2 12.4 267.?calluctor% 0.0 15.9 33.1 36.9 62.4 58.7 34.0 0.0 241.0 - 5.1 9.0 7.0 9.6 9.1 4.3 42.3latnrtepts 0.0 11.9 32.3 52.7 65.6 47.1 19.2 0.0 227.7 - 3.6 7.9 10.0 10.3 6.5 2.3 - 40.7

Sb-Total Sers 0.0 74.0 210.4 350.4 491.7 549.2 330.1 106.7 2126.6 0.0 23.7 50.4 69.0 78.2 75.8 41.6 12.4 350.7

6. k_ge Treateat

Treatmt Plant al 2.5 5.0 1I9.1 I9.9 185.2 142.7 79.0 0.0 810.0 1.1 1.6 47.1 37.9 29.1 19.7 10.1 - 146.6 Lad- 2.5 2.5 - - - - - 4.9 - 1. 1.3 - - - - - 2.6

ub-Total Sm. Tr. 2.3 7.5 197.5 199.9 185.2 142.7 79.s 0.0 81S.0 1.1 2.9 4.4 37.9 29.1 19.7 10.1 0.0 149.2

C. kraloa

Sub-TotIa rlaimp 0.0 0.0 41.0 53.2 33.7 0.0 0.0 0.0 129.0 - - 9.9 10.1 5.3 - - - 25.3

t. hlated Inpts

appog 4.2 2.9 0.0 0.0 0.0 0.0 0.0 0.0 7.1 1.9 0.9 - - - - - - 2.9E". otr Sm. I Dr. 4.0 15.6 15.3 14.8 12.1 10.1 8.7 9.5 90.1 1.8 5.0 3.7 2.6 1.9 1.4 1.1 1.1 16.6hlint. Eqlpt 0.0 10.6 2.9 3.7 9.5 0.0 3.2 3.4 3.4 - 3.4 0.7 0.7 1.J - 0.4 0.4 7.1TI a traein 0.0 0.0 2.1 3.2 3.8 4.3 2.4 2.6 18.4 - - 0.5 0.4 0.6 0.6 0.3 0.3 2.9

bTotal bl. oute 8.3 29.0 20.3 21.6 25.5 14.5 14.2 15.5 149.9 3.7 9.3 4.9 4.1 4.0 2.0 1.6 1.9 31.6

TOTA PUIT COST 10.7 110.5 469.2 633.0 742.1 706.4 424.1 122.2 3219.4 4.8 35.9 114.0 120.1 116.6 97.5 53.7 14.2 556.6

a ledn Elnoeerio

af

0

Table A5.4 Project Cost by Component and Source of Funds

(USC Nilion Equivalent)

srUl Ink tt Wt Total Local~~~~~~~~~~~~~~-- ------- Freip (EtKl.

Amount 2 Amoft I ASount I Amont 2 Eacanp laesl Tax"3#3333 3323 333333 222 32333 S3323 3,2C33 332 *3232233 333333 ao*=

bllue 101.6 3.2 - - 164.5 61.8 266.1 47.3 101.6 140.3 24.2bhlltws 11.4 .2 - 26.5 61.3 42.9 7.1 16.4 Z2.6 31.Intmnaptors 17.1 40.9 - - 24.1 32.1 41.7 7.5 17.1 20.9 3.8

ub-Total Sms 135.0 3.5 - - 215.7 61. 350.7 63.0 135.0 183.3 31.9 350.7

3. inege l int t

Tretumt Plot a - - 91.9 62.8 54.5 31.2 146.4 26.3 91.9 41.2 13.3Land - - - - 2.6 100.0 2.6 0.5 - 2.6

mb-Total so. Tr. - - 91.9 61.7 51.2 38.3 149.1 26.8 91.9 43.9 13.3 149.1

C. kaim

Sub-Total raIagp 9.5 37.5 - - 15.8 62.5 25.3 4.5 9.5 13.5 2.3 25.3

I. elated lgts

Npinng 2.7 ".9 - - 0.3 9.2 3.0 0.5 1.5 1.2 0.1

Eg. for Sg. a Dr. 17.1 90.9 - 1.7 9.1 18. 3.4 10.3 6.9 1.7Nalot. Eqpmt 6.2 9.2 - - 1.0 13.8 7.2 1.3 0.4 6.1 0.7TA 6 TraIning 2.5 91.0 - - 0.3 9.0 2.3 0.5 0.2 2.3 0.3

5b-Total hi. Ipts 2. 89.8 - - 3.2 10.2 31.7 5.7 12.4 16.5 2.9 31.7

TUTU P T CTlI 11.0 31.1 91.9 16.5 291.9 52.4 556.8 100.0 248.8 257.6 50.4 556.7

J Inlde bla gerin

REPUBLIC OF TURKEV

ANKARA SEWERAGE PROJECT

Project lmplesmntation Schedule -- Cumulative Completion Ill

___~~ ~ ~ ~~~~~~ -_ - - - - -- - - - - - - -- - - - - - - - - -- -- -- - -_ - - ------ _. - ___ ---- --- - _ _ __-_

I SI m I IS0 1 1991 1: I 1993 14 2 19 ms 96 :ICotr&ct (Project Copoont) I-- ---------- --- ---------- - - -------------------------- - ------ ------- II IV t 1111 I 11111I IV:I I it1111 IV: 11 HI1 IVY: I 11111 I IY I 11111 IV I I II III IV: I It1 I V I

t_______ _ _ _-~ ~ ~~~~ ~~~~~~- --------- : -- - - - - --- -:---- 1------ - ------

lappi * IbataCoIllectin I I10 30 67 761 4 92 100 I Is I MIEnginering -Smn Drains 10 27 24 31 3 1 43 53 58 62 66 70 73 : 76 78 809 3 85 97 0S 90 I92 93 949 5 197 98s loo

lEnbinring -m B I I 10 2 35 42 50 52 55 5 U60 651 6 70 72 75 178 0 82 05 90 92n 95:9 9 100

IlIlaterceptars t t 1 20 30 40 50 60 60 76:94 92 96 100 II I tt::

SlCotecturs COetract 1 I 1 13 26 1 36 46 56 66 t 75 93 92 100I I I I Cmmtract 2 1 : 13 26 36 46 56 66 1 75 83 92 100 I I S

Contract 3 I 1 1 112 24 35 46 255 64 73 82 7 92 6100 1 o

lletmutlerk SM CntctK 1 I S 1 910 29 39 49 602 0 100 I 2 1 2I Contrct 2 t 1 19 1 29 39 1 4 60 80100 I 2 t COntrct 3 1 1 29 19 29 39 49 60 90100 1 I 2 I I COntrKt 4 I I 1 10 201 31 42 53 64 1 76 100 1 I II Centract 5 2 10 20 131 42 53 64 t76 8 100 I 1 II Cntract 6 t I 1 28 141 54 67 0 I S9 5 100I tCntract 7 S 1 2040 60 10 90 90 1002 I 1 I III I 1*IISmage Tr. Plant - Civilleurkts It 20 30 40 50 60 70 80 190 100 I 1I: ap lr. Plant - Equipmt I :1 15 30 30 30 55 90 8E o 0095 9 9090 95 100 1 1

*tlOrainaup I I I 10 20 30 40 150 60 70 90 90 100 I I 1Ilaiotmauce Equipet I I15 25 35 50 150 50 50 0150 60 60 60 60 75 900 I S9 90 SO 90 S S5 95 95 5100 :TA Training I 1 I 10 20 20 120 30 40 40 40 50 60 60 160 70 90 90 2 90 R5 9 90 919095 100

tI This work covered undr Teroms t Refererce for Consulting Services for Detailed Designand Construction Soivisdow of hSa Collection and Dkainage Marks

REPURLIC Of TURKEy

ANKARA SEWERAGE PROJECT

Contraet ProcurgTnt Sehgdule

Contract (Project -.umponent) Amount Bids/Contract Financed Type of Procurement Number of Documents Proposals Contract ContractValue A" by Bank Contract Method Contracts Ready ' Invited *'i Signed 5' Completed c"

----(US $ million)---

Mapping 8 Data Collection 2.9 2.7 Consultant Guidelines 6-" 1 10/89 11/89 02/90 06/91

Engineering: Sewers 8 Drains 18.8 17.1 Consultant Guidelines E/ 1 08/89 08/89 10/89 12/96Treatment Plant 5.4 - Consultant KfW Procedures 1 10/89 11/89 02/90 06/96

Interceptors 41.7 17.1 Works ICs 1 11/90 12/90 03/91 12/93

Collectors Contract 1 15.0 5.7 Works ICe 1 01/91 02/91 06/91 11/93Contract 2 15.0 S.7 works ICB 1 01/91 02/91 06/91 11/93Contract 3 12.9 4.9 Works ICe 1 11/92 12/92 02/93 12/95

Network Sewers Contract 1 60.0 22.9 Works lCD 1 05/90 06/90 09/90 06/92Contract 2 50.0 19.0 Works Ice 1 07/90 08/90 11/90 12/92Contract 3 50.0 19.0 Works ICB 1 07/90 08)90 11/90 12/92Contract 4 40.0 15.2 Works LCB 1 04/92 05/92 08/91 08/93Contract 5 40.0 15.2 Works LCB 1 04/92 05/92 08/92 08/94Contract 6 23.6 9.3 Works LCB 1 06/94 07/94 10/94 09/96Contract 7 2.5 1.0 Works LCB 1 11/90 12/90 04/91 11/92

Treatment Plant- Civil Works 45.5 - Works LCB 1 01/91 02/91 05/91 06/93- Equipment 95.8 - Goods KfW Procedures 1 01/91 02/91 OS/91 08/94

Drainage 2S.3 9.5 Works ICa 1 11/90 12/90 03/91 06/93

Maintenance Equipment 7.2 6.2 Goods ICB, LCB, Several 11/90 12/90 02/90 05/96Shopping

TA 8 Training 2.8 2.5 Consultant Guidelines El Several 10/90 11/90 02/91 08/96

Total 554.2 ° 173.0

A/ Including contingencies and VAT.S/ Dates refer to first contract when there is more than one contract.C/ Dates refer to last contract when there is wore than one contract.D/ Procurement costs only. Other project costs include land acquisition (US $ 2.6 million). IF/ Guidelines for the use of Consultants by World Bank Borrowers.

- 52 -

ANNEX 9

REPUBLIC OF TURKEY

ISTANBUL WATER SUPPLY AND SEWERAGE PROJECT

Allocation of Loan Proceeds

Amount of theLoan Allocated X of

(Expressed in Dollar ExpendituresCategory Equivalents) to bhe Financed

(1) Civil Works 131,000,000 38X

(2) Goods 5,000,000 1001 of foreignexpenditures; 1001of localexpenditures (ex-factory cost) and651 of other localexpenditures

(3) Consultant servicesand overseas training 20,000,000 100X

(4) Unallocated 17,000,000

173,000,000

- 53 -

ANNE 10

REPUBLIC OF TURKEY

APKARA SEWERAGE PROJECT

Loan Disbursement Sched1eA

QuarterlyBank Fiscal Year Disbursement ,Cumulative Disbursementand Ouarter Ending lUSS million) CUSS million X of Total

£YF990September 30. 1989 O.S / 0.5 0.5December 31, 1989 o.le/ 0.6 0.8March 31, 1990 1.7 2.3 1.6June 30. 1990 2.2 4.5 2.6

£FY19nSeptember 30. 1990 3.4 7.9 4.6December 31. 1990 3.5 11.4 6.6March 31. 1991 5.2 16.6 9.6June 30. 1991 5.2 21.8 12.6

September 30. 1991 6.0 27.8 16.1December 31. 1991 6.1 33.9 19.6March 31. 1992 7.6 41.5 24.0June 30. 1992 7.7 49.2 28.5

FYmmSeptember 30, 1992 7.7 56.9 32.9December 31, 1992 7.7 64.6 37.4March 31, 1993 7.7 72.3 41.8June 30. 1993 7.7 80.0 46.3

94September 30, 1993 7.9 87.9 50.8December 31, 1993 8.0 9S.9 55.2March 31. 1994 7.5 103.4 59.7June 30. 1994 7.4 110.8 64.1

FYlI99September 30. 1994 6.1 116.9 67.6December 31. 1994 6.1 123.0 71.1March 31, 199S 6.0 129.0 74.6June 30. 199S 6.0 135.0 78.0

FY1996September 30, 1995 5.2 140.2 81.0December 31. 199S S.1 145.3 84.0March 31, 1996 4.3 149.6 86.5June 30. 1996 4.2 153.8 89.0

EY19m7September 30, 1996 3.6 157.4 91.0Decamber 31. 1996 3.6 161.0 93.0March 31, 1997 3.5 164.S 9S.1June 30. 1997 3.3 167.8 97.1

msmsSeptember 30. 1997 1.8 169.6 98.0December 31. 1997 1.7 171.3 99.0March 31, 1998 0.9 172.2 99.sJune 30. 1998 0.8 173.0 100.0

el Based on disbursement profile for general investment type loans for Turkey.h Advances from the Project Preparation Facility.

-54-

ANNEX 11

REPUBLIC OF TURKEY

ANKARA SEHERASE PROJECT

Nonitorang Indicators

1987 IM 1989 199 190 1991 1992 1993 1994 1995 1996

OPERATIONAL

Pop. of Districts Receiving Mater Service(xlO^l6 2.354 2.403 2.453 2.504 2.556 2.737 2.801 2.867 3.001 3.067X of Population Served (later) t21 93.0 93.0 94.0 95.0 96.0 9.5 97.0 97.0 97.0 97.0Served Population (tlOt6) 2.189 2.235 2.306 2.379 2.454 2.641 2.717 2.781 2.911 2.975Sales Per Capita Ipcd 114 118 120 122 126 131 135 140 145 149Total Sales le3uxlOA6) 90.7 96.6 101.0 105.9 112.9 126.3 133.9 142.1 154.1 161.8Unaccounted later (1) 52.0 45.0 42.0 40.0 39.0 39.0 35.0 33.0 30.0 27.0Voluse Produced (a3ulOV6) 199.0 175.6 174.1 176.5 195.0 203.7 206.0 212.1 220.1 221.6bate, Peters (loszx3) 399.6 426.0 440.0 454.0 469.3 504.4 519.5 530.7 555.5 567.7I of Population Sernd (Serage) (1) 06.0 87.0 08.0 09.0 90.0 91.0 92.0 92.0 92.0 92.0Served Population Swerage (ulOA6 2.024 2.091 2.159 2.229 2.300 2.491 2.577 2.638 2.761 2.822Connected Sewerage (Nosx1OA3) 350.2 402.0 412.0 425.3 439.0 475.3 491.0 503.4 526.9 530.5

FINANCIAL a/

Ove'all Average Tariff L/83) 343 521 1430 1954 2092 2393 2464 2464 2464 2464Docestic Lu Tariff (TL431 438 494 565 582 592 582 502Dosestic High Tariff MTI3) 1746 1971 2254 2321 2321 2321 2321Industrial/Couercial Tariff (TL/3) 2911 3284 3757 3069 3060 3868 3068

ROR or Net Revalued Asuts (SI 30 9 20 24 23 20 16 17 20 19

Annual Contribution to Inveostmt (21) 30 40 07 62 43 59 70 110 19 270

a/ July 199 TL tor 191 and sbse4bnt yeas.

REPUBLIC OF TURKEY

ANKARA SEIERAGE PROECT.......................

Income Statemnts 1987-96 (USS Niltion Equivalent)..................................................

1987 a/ 1988 I 1989 199n 1991 1992 19 1994 1993 1996.. .......... ................. .... ...... .... ..... ---- ..... ---- ----.. ----

operating Raveiue.................

Water Sales Voltue (3 dlttion) 90.6 96.6 98.5 105.9 112.8 123.8 131.2 139.3 151.1 158.0 a/ Actual; breakdo°m of oWeting expensesbetween water wnd seweraep Is estimated.Avergep Tarifff (US$1.3) 0.40 0.37 0.65 0.88 1.01 1.18 1.22 1.29 1.36 1.44/Esiatd

Revenue from Sates 34.1 33.7 63.6 92.7 114.5 146.2 160.5 179.6 205.6 226.7 c/ Charges for mintaining conmections andemptying septic tanks.faintenance Revenue c/ 3.2 1.r 3.2 4.6 5.7 7.3 8.0 9.0 10.3 11.3 d/ service ctosfns afd -eapenifg dags

Other Operating Reveme d/ 2.1 1.0 1.9 2.8 3.4 4.4 4.8 S.4 6.2 6.8 and penaltles.- .. . . . ..... ..... . ----- ... ... .... . . .. ..... ..... . ..... -----.......... ...... ... ..

Total Operating Revenue 39.3 36.4 68.7 100.1 123.6 157.9 173.3 194.0 22.1 244.8 ve Based on revatued assets.

Operatfng Expenss f/ Totot operating expenses as a.................. p............. Fercentage of totat perating revenue.

Water:Operating Persoimet 6.1 7.2 7.4 8.2 9.2 10.3 11.3 12.6 14.4 15.9 S/ net inem from operations as aEtectricity end Fuet 6.7 9.3 9.2 10.0 10.8 12.1 13.3 14.6 17.0 18.7 pereentage of average ne fixed assets n

atintenance and Materials 2.8 2.7 2.7 2.9 3.1 3.5 3.8 4.3 4.9 S.4 In operation.Adinistration 1.1 1.2 1.2 1.3 1.4 1.6 1.8 2.0 2.3 2.5 1Depreciation e/ 0.8 2.4 4.2 6.2 9.2 11.7 14.1 15.9 16.7 17.s

..... ..... ..... ..... . ..... ..... . ..... ..... . ..... ...... .. ... .. ......... .. ... ..

Total Water Expnses 17.4 22.9 24.8 28.S 33.7 39.2 44.2 49.6 55.3 60.i

Sewerage:operating Personet 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5Electricity and Fuel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Mainternee end Materiats 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1Adinistration 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.Depreclation e/ 2.4 2.4 2.4 2.4 2.7 2.7 8.2 8.2 8.2 8.2

- .. ... ..... ..... . - .. . . .. ..... ............... .. ............ .........

Total Seweree Expnses 2.9 2.9 2.9 3.0 3.2 3.2 8.7 8.7 8.9 8.9

Total Operating Expenses 20.3 25.8 27.7 31.5 36.9 42.4 52.9 58.3 64.2 69.0

set income frm Operations 19.1 10.6 41.0 68.6 86.? 115t. 120.4 135.? 1s7.9 175.8..........................

Interest 3.0 3.5 6.8 9.5 12.1 1S.2 18.2 20.3 20.7 18.9

Net Io 16.1 7.2 34.2 59.1 74.6 1O0.3 102.2 11S5.4 137.2 1s6.9

aperating Ratio (5) f/ S1.s 70.8 40.3 31.s 29.8 26.8 30.5 30.1 28.8 28.1

Average Net Fixed Assets in Operation 62.9 121.9 209.9 291.4 377.6 583.1 m.9 793.1 795.0 948.6

Rate of Return () 9/ 30 9 20 24 23 20 16 17 20 19

REIUBLIC oF IUIIE1

AWA SEIUER PA CT.......................

s_wc a qIicstlio of Psuc tI 9 CM ittIllion ulvaent)..................................................................

t17r 11t3 bh 1"DP t19 1991 1902 t1n 1994 1995 1906.. ........................... .... ..... .... ..... .... ..... .... ..... ....

sines of Ftwab..............

2 Incm from otciOn 20.? 10.6 41.0 68.6 86.7 115.5 120.4 133.7 157.9 175.8 of Actwl.D lprecition 0.3 4.8 6.6 8.6 11.9 14.4 22.3 24.1 24.9 2s.?

''''' ..... '''-' ..... ..... ..... '''5' ''''' ..... .*..' bJ Estieted.GMs I-nto Iel CeA 21.s 1S.4 47.6 77.2 9s.6 129.9 142.7 1S9.8 162.8 201.5

cI incldl II. aietleN *t t Uo a K IM credtts,0550w Contrelutlms 0.3 2.9 6.3 3.9 7.8 11.1 11.2 9.5 13.3 12.5 a loan frm tbe Itopes R tamnt fund.

.d a lowi from the inssts Faaw.p Wtd d Cu* Loan for Project 0.0 0.5 3.3 17.5 27.5 33.5 3S.s 31.0 1T. 6.5 d Ft s inct CQMMtM% fee.

PrFs f1 Credit fw Project 0.0 0.0 1.0 1.5 26.6 17.9 17.9 17.8 9.2 0.0eI Crs intern cash plus custosr contribtiolmr

other Lou erd Cedits cU 45.1 9.6 24.2 20.6 26.8 21.8 14.8 0.0 0.0 0.0 Ledebt service as a percetage of total.... . ..... .. .... .. .... .. .... .. .... .. .... .. .... .. .... nnt

TOTAL #ES C.9 28.5 82.4 128.9 187.3 214.2 222.1 21L8. 223.0 220.5..... -m mm 3mm - -m... -3.33 .3. m -. *f/ Gros intsnt cab divided by debt srvice.

A 1icstia of Fusid.....................

P s Project:wortd * Piwiced 0.0 0.5 3.3 17.5 27.5 33.5 35.5 31.0 17.7 6.5

KfI Finuiced 0.0 0.0 1.0 1.5 26.6 17.9 17.9 17.8 9.2 0.0ASIt Cash 0.0 0.0 0.5 17.0 59.9 68.6 63.1 48.7 26.6 7.3

.... . .. .... . ... .... . ... .... .. .. ..... ..... . ..... ..... . ..... ...... .. ......... ..

Tot Project 0.0 O.S 4.8 36.0 114 0 120.0 t16.5 97.5 53.? 13.8

0ther i.westmnte 51.7 28.0 42.6 69.8 8t.R 8U.1 e0.5 24.2 26.2 49.4---. ... ... W... ... ................ .. .... ..... ...... ..... ...... ..... ...... .....

Total Imntmnt 51.7 28.5 47.4 105.8 195.4 200.3 177.0 123.7 19.9 63.2

Debt Service,

Propsd wtd e Lomn: Intest d/ 0.0 0.0 1.4 2.2 3.7 5.8 8.2 10.5 12.0 11.7Prmncipst 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14.5 14.5

PIo e Kf Credits, Intert 0.0 0.0 0.0 0.3 1.3 2.5 3.2 3.6 3.8 3.6Principal 0.0 0.0 0.0 0.0 4.1 4.8 4.8 4.6 4.8 4.8

Other L- wd Cred4ts 6.5 6.9 11.4 12.7 13.3 12. 14.0 13.9 12.7 8.8-.... ... ..... ..... ... ...... . ... .... ..... ..... ... ii.. .... ...... ii... .. ........

Totat Debt Service 6.5 6.9 12.8 15.2 22.4 25.9 30.2 32.8 47.8 4.4

h in Worlin Capital 8.7 *6.9 22.2 7.9 .30.5 -12.0 14.9 61.6 95.3 113.9.... .... ..... .... .... ...... ..... ...... ..... ...... ..... ............... .. .........

TOTAL APPICmATIns 46.9 28.5 82.4 128.9 187.3 214.2 222.1 218.1 223.0 220.5

Sl'-Finacing Ratio (1) .1 29.6 40.3 86.7 62.3 43.0 s5.s 69.9 110.3 185.6 269.9............................Debt Skvie Coeae Ratio */ 3.3 2.2 3.r 5.1 4.4 5.8 5.3 5.2 5.$. 4.7

...............................

UEPKIBC Of TWIcE?

ANITA SE EUCE POICT.......................

Btace Sheets 19W-96 CMSO Nitin Eq1lvtaent)...............................................

19W 18 Is bv 1969 199 1991 199 199 1994 199 1,996.. ........................... .... ..... .... ....... .... ....... .... ....... ....

;ttr bWpt e Fixed AseGross In qsrtion @1 82.9 143.4 206.1 310.2 392.4 473.1 533.6 559.6 s5s.1 612.9 t Actuat; vatue of eae xed asse

Acatatead Ospreciatlon *sM. -21.2 -25.4 -31.6 -40.8 -52.5 -66.6 -82.5 -99.3 -116.8 not Included...... . .. ... ...... ..... ...... ..... ...... ... ...... ...... ....... ............ .................

tet In 4erataln 64.1 122.2 182.7 276.6 351.6 420.6 467.0 477.3 46.S 496.2 bi Estlated.

Work In Progres 54.7 22. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 cl Inctudes trd...... .... ... ..... . ..... ..... . ..... ..... .... ............ ....... ............ .................

Total Vlote rWky Fixed Assto 1l8.8 144.4 12.7 278.6 351.6 420.6 467.0 47r.3 466.8 496.2 di tess wurent mturities.

Sewre hmets t Totat teng tem dabt .mludtop ae rent

Gress In Oprwticn ct 0.0 120.0 u2.0 159.4 18.9 0 425.4 425.4 425.4 42.4 716.s mturitles In ptrporton to totat eqjlty.

Accumatted DepreciatIGn 0.0 -62.4 4.8 -67.2 -69.9 -*2.6 -80.1 -87.6 -95.1 -102.6-- - ----.... .... ----- .... Sewerae fixed asst not Inctuded.

let In 9i atIe 0.0 87.6 5.2 92.2 115.0 352.6 345.3 337.9 330.4 615.7

Wktt In Progress cf 0.0 0.5 4.5 39.0 133.3 0.0 112.2 209.5 255.8 0.0... ........ .. .. .. ....... .... ..... ..... ..... ..... ..... ..... -----. ........ .......

Total Sewere Fised Aset 0.0 56.1 61.7 131.2 246.3 352.6 457.S 547.4 5 61 615.7

Totat Water Suqty Ord Sawe fliod Asets 118. 202.5 24.4 409.6 599.9 73.5 924.5 1.024.? 1 0n.0 o M.9

Currmnt AetsCOA 2.1 3.1 22.2 57.2 19.8 1.1 9.2 "4.2 t21.1 213.1

tcom RStcelndbte 14.2 14.2 2r.6 16.Z 20.0 25.6 20.1 30.8 34.3 36.8

Iqutoy 2.3 2.0 1.7 1.6 1.4 1.6 1.8 2.o 2.2 2.5

other 2.9 2.7 1.9 1.1 1.1 1.1 M.1 1.1 1.1 1.1.... ... ..... ..... . ........ ..... ..... ..... ..... ..... ...... .. ............... ..

Total CLrrnt Aets 21.5 21.9 53.6 76.1 42.3 29.4 40.2 76.0 158.7 253.5 VI

Total Assets 14.3 224.3 298.0 465.6 642.2 602.8 964.7 1,102.7 2 1.31.7 i.365.4

EpiIty and .ilftlties

Capbt t d Riserves 68.6 143.0 147.7 163.2 1761 104.8 19.r 19.3 196.4 1981Surts 0.9 8 -i 65.6 16,13 2sr 6 362.- 466r 579. r n.8 M5e2

Totat Equity 6.5 1S1.1 213.3 324.5 433.8 546.9 657.S 774.1 905.2 1.018.3

two ler Debt d/Existing Eou nd CredIt. s1.1 53.0 59.3 104.1 10oo.l 10.1 104.8 92.6 82.3 75.5

Naw XCI Credits Water) 0.0 0.0 0.0 5.4 15.6 25.4 24.0 22.6 21.2 19.8

posed Wortd oan Loon 0.0 O.S 3.3 21.2 48.6 81.9 11s 149.3 152.7 145.0

Praped Xtf Credits 0.0 0.0 0.8 1.2 4.3 3.8 9.5 10.4 11.8 10.9... ........ .. ........... . .... .;... ... ..... ... ..... ----- ..... ..... ..... .....

total Lte ere Oebt S.1 5.5 .5 132.0 168.5 211.2 256.0 274.9 266.0 251.2

Custt_r Oepasfts 2.8 s.7 9.8 12.1 16.5 22.9 29.2 34.6 42.6 49.8

Currut Lialtfooes:Ac_mts Payabl 9.8 9.7 8.2 15.0 22.1 21.8 22.2 19.1 16.0 16.0

Current Poetion of LoeM Teo Debt 6.2 6.3 6.9 8.4 8.8 10.1 10.7 25.0 21.9 22.2

Short Tar Lowi Ord CredIts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0ote*r 6.9 4.3 3.3 2.3 1.3 0.0 0.0 0.0 0.0 0.0

Totat Current LiAtititIes 22.9 20.2 184 25.7 32.2 1.9 2.9 44.1 37.8 38.2..... . ..... .... ..... .. ... , ..... .. .... . ,...... ....... ........ .o

Total Eqity .d LIabitIties 46.3 Z0.6 305.0 494.3 661.0 812.9 - 975.4 1 127.6 1.253.5 136.6 -

Ratio of ODbt to EWity ew 41:59 f/ 23:77 30:70 36862 3St65 33:67 32:6s 29:71 27:13 2M6

REPUBLIC OF TURKEY

ANKARA SEWERAGE PROJECT

Cost and Benefit Streams for Internal Rate of Return

WaterWater Costs Water Sales Volume Revenue Protected Revenue SeweraaeIncremental Incremental Without With at Marginal Water & Incremental Net

Investent ODnration az Total Investmnt Investmt Insreintal ......Cost el SabqrAaa I/ Seweraae u/ Costs f. Benefts 9A/----- (US (M million) ----------- ---------- mS million) …--------------------------------

1989 40.9 - 40.9 98.5 98.5 - 64.0 61.0 (3.0) 4.4 (7.4)

1990 61.5 1.7 63.2 95.5 105.9 10.4 68.8 88.8 20.0 57.4 (37.4)

1991 77.4 3.4 80.8 92.7 112.8 20.1 73.3 107.8 34.5 112.8 (78.3)

1992 74.4 5.6 80.0 89.9 123.8 33.9 80.5 134.7 54.2 98.8 (44.6)

1993 53.8 7.1 60.9 87.2 131.2 44.0 85.3 142.9 57.6 99.9 (42.3)

1994 22.2 8.8 31.0 84.6 139.3 54.7 90.5 126.7 36.2 82.3 (46.1)

1995 21.0 11.2 32.2 82.0 151.1 69.1 98.2 137.5 39.3 36.7 2.6 un00

1996 20.4 12.6 33.0 79.6 158.0 78.4 102.7 143.8 41.1 10.8 30.3

1997 - 13.9 13.9 77.2 164.4 87.2 106.9 149.6 42.7 2.5 40.2

1998-2019 - 13.9 13.9 77.2 164.4 87.2 106.9 149.6 42.7 2.5 40.2

a/ Incremental cash costs of operation. NPV of Costs ($ million) b/:h/ USS of January 1989. Water 349.0r/ Calculated for the projected water sales volume (*With Investment" case) Sewerage/Drainage 346.7

at a price of $0.65im3, the calculated marginal cost of water.d/ Based on project financing requirements through 1993. and after then on NPV of Sales Volume (mi3 million) b/:

marginal costs. Incremental Water 533.9i/ Projected water and sewerage revenue minus water revenue calculated at Total Water; Incremental Sewerage 1/ 1,330.4

marginal cost.fi Includes costs of drainage (US$23 million). Marginal Cost (5/m3):S/ Projected sewerage revenue minus sewerage incremental costs. Water 0.65hi Opportunity cost of capital assumed to be 10.0%. Sewerage 1/ 0.26y/ On basis of sewerage charge applied against volume of water sold.

Sewerage Internal Rate of Return 0.1187820-21

- 59 -

ANNEX 16page 1 of 2

REPUBLIC OF TURKEY

ANKARA SEWERAGE PROJECT

Selected Documents and Data in the Project File

1. Water Supply, Sewerage and Drainage Master Plan for Ankara; Camp,Harris, Mesara Engineers; August, 1969.

2. Ankara Sewerage and Drainage Master Plan and Feasibility Report;BMB-United Engineering Ltd.; 1979.

3. Ankara 1985 Census of Population Social and Economic Characteristics;State Institute of Statistics; October 20, 1985.

4. Ankara from 1985 to 2015 (English Summary); METU City and RegionalPlanning Dept.; 1987.

5. Appraisal of Ankara Water Supply Project Phases II and III; KfW;March 25, 1988.

6. Interim Report on Technical Review and Project Preparation;Lavalin/CH2M/Temelsu Engineers; November 4, 1988.

7. Draft Final Reports on Technical Review and Project Preparation;Lavalin/CH2M Hill/Temelsu Engineers; December 1988, March 1989, andJuly 1989.

8. Ankara Sewerage Project Concept Report (for Sewerage Treatment); GKWConsult and Su Yapi Engineers; March 1989.

9. ASKI 1987 Audited Financial Statements and Auditor's Report; April1988.

10. ASKI Detailed Financial Projections, 1987-1996.

11. Detailed Project Cost Estimates.

12. Ankara Water and Sewerage Administration-Recommendations onAccounting, Control, and Reporting System; Price Waterhouse;December 31, 1988.

13. Minutes of Meeting of ASKI, World Bank, KfW, and Consultants on AnkaraSewage Treatment Plant; May 24, 1989.

- 60 -

ANNEX 16

page 2 of 2

14. Draft Terms of Reference for Detailed Design and ConstcuctionSupervision of Sewage Collection and Drainage Works for the AnkaraSewerage Project; August 1989.

15. Contract and Terms of Reference for Consultant Services forRehabilitation and Extension of Greater Ankara Water DistributionNetwork; August 1988.

16. The Final Design of Distribution System and the Domestic andIndustrial Water Supply Project of the City of Ankara (InterimReport); SUIS Project Engineering and Consulting Ltd.; August 1984.

(87820)

*~~ mIBRD 21862

T U R K E Y

ANKARA SEWERAGE PROJECTS

1,~~~~~~~~~~~~~~~~~~~12

Bay nIr

MILES

KILOMETERSSCALE: APPROXIMATELY 1:1 79,000

PLANNED AREAS (EXISTING) SEWERAGE I S m SCALE:APPROXIMATELYt:179,00

PROJECT EXISTING MOGAN ad RAIAGECEKONDU AREAS (EXISTING) INTERCEPTORS LAKE U.S.S.R

ROADS COLLECTORS RE

RIVERS AND STREAMS PUMPING STATIONS b*,<

MUNICIPALITY V/// TREATMENT PLANT SITE UT t.R C I REROP

_~ CYPRUSx s ARAB. IRAQPE

NOVEMBER 1989

to istan&dTo C&,kW

TURKEY (SKi

ANKARA SEWERAGE PROJECTProjected High Growth Districts \I UftJK

Surrounding the Ankara 9SMetropolitan Municipality

rD Ara /M RT t

0 5 10 tS 20 1 94

KI_OMETERS MtJAN A t SA"S-¢

DISMctr, to be r-onwaed by 1,sw

Districts to be Connected by M9

90 Disrcts to be conneced by 2010

91 J18_ Districts outside of Projected Service Area

-Roads

CA ro f5fteN ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Ankara metropolittank Area|Ka1~~~~~I A{{O rlfrtgOI |

86 93 ~~~~~~~~~~~~~~~~~~~~~~- District Boundaries [5* 6e5.A& aM. '-'M. .&.....Mo ^0~

- A nkara Munidpality Bnu3daryso~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r J0Y

T U R K E YANKARA SEWERAGE PROJECT IBRD 2190

YIIkseitepe YkOtp

s~~~~~~~~~~~~~~~~~~~~~Uu

rk~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r

DRAINAGE SEWERAGE PROIECT

Planned Areas (Existing) PROIECT: Planned Areas (Existing) --.- Interceptor

Gecekondu Areas (Existing) Collectors Gecekondu Areas (Existing) Collectors

Major Roads EXISTING Major Roads EXISTING:- Collectors Interceptor

Rivers and Streams ~ Rivers and Streams - Collectorso i 2 ~ ~ ~~~~~~ ~~3 4 0234

I I 2 3 I MILES o I 2 MILESr I I KILOMETERS , , I I KILOMETERSo 1 2 3 4 s 6 0 1 2 3 4 s 6

NOVEMBER 1985