(vieux fort water supply redevelopment) project
TRANSCRIPT
PUBLIC DISCLOSURE AUTHORISED
CARIBBEAN DEVELOPMENT BANK
TWO HUNDRED AND SIXTY-FOURTH MEETING OF THE BOARD OF DIRECTORS
TO BE HELD IN BARBADOS
DECEMBER 11, 2014
PAPER BD 87/14
PAPER BD 87/14 Corr.1
SIXTH WATER (VIEUX FORT WATER SUPPLY REDEVELOPMENT) PROJECT ‒
SAINT LUCIA
(President’s Recommendation No. 889)
1. The attached Report appraises a proposal for a loan to the Government of Saint Lucia
(GOSL) for the redevelopment of the Vieux Fort Water Supply System. The Project will comprise
the installation of new water production, transmission, and storage facilities, as well as non-
revenue water reduction measures for the Vieux Fort Water Supply System. Other project
components will provide technical assistance to enhance the operational efficiency of the Saint
Lucia Water and Sewerage Company through the preparation of an energy efficiency
improvement plan, and to improve the management of the Vieux Fort River watershed.
2. On the basis of the Report, I recommend:
(a) a loan to GOSL of an amount not exceeding the equivalent of nineteen
million six hundred and seventy-five thousand United States dollars
(USD19.675 mn) (the Loan) consisting of:
(i) an amount not exceeding the equivalent of thirteen million six
hundred and seventy-five thousand United States dollars (USD13.675
mn) from the Ordinary Capital Resources of the Caribbean
Development Bank (CDB) comprising:
(aa) an amount not exceeding the equivalent of one million six
hundred and seventy-five thousand United States dollars
(USD1.675 mn) from CDB’s Equity and Market resources; and
(bb) an amount not exceeding the equivalent of twelve million United
States dollars (USD12 mn) allocated from resources provided by
the European Investment Bank (EIB) to CDB under the Climate
Action Line of Credit; and
(ii) an amount not exceeding the equivalent of six million United States
dollars (USD6 mn) from CDB’s Special Funds Resources (SFR);
-2-
(b) a grant to GOSL of an amount not exceeding the equivalent of three hundred and
thirty˗five thousand United States dollars (USD335,000) (the Grant) from CDB’s
SFR to assist in financing consultancy services for capacity building of the Water
and Sewerage Company Inc. and the Water Resource Management Authority
and for evaluating the impact of the Project on gender relations in Vieux Fort and
its environs, on the terms and conditions set out and referred to in Chapter 7 of the
attached Report.
2. In addition, I recommend a waiver of CDB’s Guidelines for Procurement in respect of
procurement related to the Infrastructure Works and CDB’s Guidelines for the Selection and
Engagement of Consultants by Recipients of CDB Financing in respect of procurement related
to the selection and engagement of Engineering Consultants under the Project, to extend
eligibility to countries eligible for procurement under EIB-funded projects which are not CDB
Member Countries.
3. Funds are available within CDB’s existing resources and/or borrowing programme for the
relevant disbursement period.
PUBLIC DISCLOSURE AUTHORISED
CARIBBEAN DEVELOPMENT BANK
APPRAISAL REPORT
ON
SIXTH WATER (VIEUX FORT WATER SUPPLY REDEVELOPMENT) PROJECT ‒
SAINT LUCIA
Considered at the Two Hundred and Sixty-Fourth Meeting of
the Board of Directors on December 11, 2014.
(BD 87/14)
AR 14/7
DECEMBER 2014
This Document is being made publicly available in accordance with the
Bank’s Information Disclosure Policy. The Bank does not accept
responsibility for the accuracy or completeness of the Document.
Director (Ag.) - Andrew Dupigny
Projects Department
Division Chief (Ag.) - Daniel Best
Economic Infrastructure Division
Any designation or demarcation of, or reference to, a particular territory or geographic area in this
Document is not intended to imply any opinion or judgment on the part of the Bank as to the legal or
other status of any territory or area or as to the delimitation of frontiers or boundaries.
This Report was prepared by an Appraisal Team comprising:
L. O’Reilly Lewis, Operations Officer (Civil Engineer)/Coordinator; Alexander Augustine, Operations Officer
(Financial Analyst); Elbert Ellis, Operations Officer (Social Analyst); Valerie Isaac, Operations Officer
(Environment); Ann Marie Warner, Country Economist; Takem Enaw, Legal Counsel; Richard Look Kin, Risk
Management Officer; Joseph Williams, Energy Consultant; and Sonia Hampden, Coordinating Secretary.
CURRENCY EQUIVALENT
Dollars ($) throughout refer to Eastern Caribbean Dollars (XCD) unless otherwise stated.
USD1.00 = XCD2.70
XCD1.00 = USD0.37
ABBREVIATIONS
AGE - Acute Gastroenteritis BMCs - Borrowing Member Countries
BOD - Board of Directors
BOP - Balance of Payments CALC - Climate Action Line of Credit
CDB - Caribbean Development Bank
CGA - Country Gender Assessment CIS - Customer Information System
CVC - Climate Variability and Change
EEMs - Energy Efficiency Measures
EEOs - Energy Efficiency Opportunities
EIA - Environmental Impact Assessment
EIB - European Investment Bank EMP - Environmental Management Plan
ERR - Economic Rate of Return
ESRP - Environmental and Social Review Procedures
EWMP - Emergency Weather Management Plan
FDI - Foreign Direct Investment
FY - Fiscal Year
GCM - Global Climate Model
GDP - Gross Domestic Product GM - Gender Mainstreamed
GOSL - Government of Saint. Lucia
HDPE - High-Density Polyethylene
IDC - Interest During Construction
ig - Imperial Gallons
ISP - Implementation Support Plan
km - kilometres
l/s - litres per second LUCELEC - St. Lucia Electricity Services Limited
m - metres
MDD - Maximum Daily Demand
MDGs - Millennium Development Goals
mm - millimetres
mn - million
MOH - Ministry of Health, Wellness, Human Services and Gender Relations
N/A - Not Available
NRW - Non-Revenue Water
NTU - Nephelometric Turbidity Units NWSC - National Water and Sewerage Commission
O&M - Operation and Maintenance
OCR - Ordinary Capital Resources OIE - Office of Independent Evaluation
OLAF - European Anti-Fraud Office
(ii)
p.a. - per annum
PC - Project Coordinator
PCR - Project Completion Report
PLW - Project Launch Workshop PPES - Project Performance Evaluation System
PMWM - Project Manager of Watershed Management
PSC - Project Steering Committee
REOs - Renewable Energy Options
SCF - Standard Conversion Factor
SFR - Special Funds Resources SIA - Social Impact Assessment
SIMP - Social Impact Management Plan
SpCF - Specific Conversion Factor
TA - Technical Assistance
TAP - Trade Adjustment and Poverty
TOR - Terms of Reference
USD - United States Dollar
VAT - Value Added Tax WASCO - Water and Sewerage Company Inc.
WHO - World Health Organisation
WMP - Watershed Management Plan
WRMA - Water Resource Management Agency
WTP - Water Treatment Plant
MEASURES AND EQUIVALENTS
1 hectare (ha)
1 kilometre (km)
=
=
2.47 acres
0.621 mile (mi)
1 square kilometre (km2) = 0.386 square mile (mi2)
1 metre (m) = 3.281 feet (ft)
1 millimetre (mm)
1 square metre (m2)
= =
0.039 inch (in) 10.756 square feet (ft2)
TABLE OF CONTENTS
COUNTRY DATA: SAINT LUCIA
LOAN AND PROJECT SUMMARY
1. STRATEGIC CONTEXT AND RATIONALE
2. PROJECT DESCRIPTION
3 FINANCING STRUCTURE AND COSTS
4. PROJECT VIABILITY
5. RISK ASSESSMENT AND MITIGATION
6. IMPLEMENTATION AND PROJECT MANAGEMENT
7. TERMS AND CONDITIONS
APPENDICES
1.1 MACROECONOMIC AND MACROSOCIAL CONTEXT
2.1 DETAILS OF PROJECT 2.2 DRAFT TERMS OF REFERENCE ‒ CONDUCT OF ENERGY EFFICIENCY AUDIT
OF THE WATER AND SEWERAGE COMPANY LTD. FACILITES
2.3 DRAFT TERMS OF REFERENCE ‒ CONSULTANCY SERVICES FOR
PREPARATION OF A WATERSHED MANAGEMENT PLAN
2.4 DRAFT TERMS OF REFERENCE ‒ PROJECT COORDINATOR
2.5 DRAFT TERMS OF REFERENCE ‒ EVALUATION OF THE GENDER-SENSITIVE
SOCIOECONOMIC IMPACTS
2.6 DRAFT TERMS OF REFERENCE ‒ ENGINEERING CONSULTANTS ‒
CONSTRUCTION MANAGEMENT AND SUPERVISON AND CONDUCT OF
VIEUX FORT WATER AUDIT
3.1 PROJECT COST, PHASING AND FINANCING PLAN
4.1 FUNCTIONAL ORGANISATIONAL STRUCTURE 4.2 CURRENT TARIFFS STRUCTURE ‒ EFFECTIVE FOR THE TREINNIAL
SEPTEMBER 2012 TO AUGUST 2015
4.3 HISTORICAL STATEMENT OF INCOME AND EXPENDITURE FOR THE YEARS
ENDING DECEMBER 31
4.4 HISTORICAL BALANCE SHEET AS AT DECEMBER 31
4.5 HISTORICAL CASH FLOW STATEMENT AS AT DECEMBER 31
4.6 HISTORICAL FINANCIAL RATIOS AS AT DECEMBER 31
4.7 HISTORICAL PERFORMANCE INDICATORS AS AT DECEMBER 31
4.8 ASSUMPTIONS USED IN THE FINANCIAL ANALYSIS 4.9 PROJECTED STATEMENT OF INCOME AND EXPENDITURE FOR THE YEARS
ENDING DECEMBER 31
4.10 PROJECTED BALANCE SHEET AS AT DECEMBER 31
4.11 PROJECTED CASH FLOW STATEMENT AS AT DECEMBER 31
4.12 PROJECTED FINANCIAL INDICATORS AS AT DECEMBER 31
4.13 ASSUMPTIONS TO THE ECONOMIC ANALYSIS
4.14 CLIMATE VULNERABILITY ASSESSMENT
4.15 ECONOMIC RATE OF RETURN CALCULATION
4.16 SOCIAL IMPACT MANAGEMENT PLAN
4.17 GENDER MARKER ANALYSIS 4.18 GENDER ACTION PLAN
(ii)
6.1 THE EXECUTING AGENCY
6.2 PROJECT MANAGEMENT ARRANGEMENTS
6.3 PROJECT IMPLEMENTATION SCHEDULE
6.4 PROJECT IMPLEMENTATION SUPPORT PLAN
6.5 DUTIES AND RESPONSIBILITIES OF PROJECT STEERING COMMITTEE
6.6 ESTIMATED QUARTERLY DISBURSEMENT SCHEDULE
6.7 PROCUREMENT PLAN
6.8 REPORTING REQUIREMENTS
7.1 EXCLUDED ACTIVITIES
FIGURE
2.1 PROJECT LOCATION MAP
COUNTRY DATA: ST. LUCIA
2009 2010 2011 2012
PER CAPITA GDP (current market prices; $) 19,249 19,220 19,865 20,766
GROSS DOMESTIC PRODUCT (GDP) GDP at Current Market Prices ($mn) 3,170.9 3,182.7 3,359.2 3,511.8
Sectoral distribution of current GDP (%) Agriculture 4.2 2.9 2.5 2.9
Mining & Quarrying 0.3 0.2 0.2 0.2
Manufacturing 4.0 3.6 3.7 3.5
Utilities 4.3 4.1 3.8 3.7
Construction 9.2 8.0 7.9 7.6
Transport & Communication 17.6 19.0 19.0 18.1
Hotels & Restaurants 12.3 15.8 14.6 15.2
Wholesale & Retail Trade 8.1 7.6 8.8 8.5
Financial & Business Services 25.4 23.5 23.3 23.7 Government Services 12.7 12.7 13.0 13.3
Other Services 4.7 4.9 5.2 5.1
Less Imputed Service Charge 2.7 2.3 2.1 2.1
GDP at Current Factor Cost ($mn) 2,718.0 2,898.1 3,006.1 3,047.3
GDP at constant 2006 Prices ($mn) 2,534.7 2,529.1 2,562.8 2,530.6
Annual rate of growth in GDP (%) 0.6 (0.2) 1.3 (1.3)
MONEY AND PRICES ($ mn) Consumer prices (av. annual % change) (0.2) 3.3 2.8 4.2
Money supply (M1; annual % change) (2.0) (2.3) 6.5 2.6
Total domestic credit(net) 3,456.1 3,395.2 3,597.6 3,903.5
Private sector (net) 3,745.4 3,787.6 3,887.5 4,084.6
Public sector (net) 47.7 (52.0) (1.0) 162.4
Non-bank financial institutions (net) (337.0) (340.3) (288.9) (343.5)
Estimated Tourism Expenditure (USD mn) 415.6 555.6 575.6 593.5
CENTRAL GOVERNMENT FINANCES ($ mn) Current Revenues 759.6 787.8 836.0 812.9
Current Grants 0.0 0.0 0.0 0.0
Current Expenditures 686.8 742.7 776.6 865.4
Current AccountSurplus/ (Deficit) 72.8 45.1 59.3 (52.6)
Capital Revenue and Grants 67.2 86.7 79.1 68.8
Capital Expenditure and Net Lending 241.3 298.6 366.1 344.8
Overall Surplus/ (Deficit) (101.4) (166.8) (227.7) (328.6)
BALANCE OF PAYMENTS (USD mn) Merchandise Exports (f.o.b) 191.3 238.9 192.3 212.4
Merchandise Imports (c.i.f) 458.0 583.0 613.2 566.4
Trade balance (266.6) (344.1) (421.0) (353.9)
Net Balance on services account 162.6 165.5 177.6 206.1
Income (net) (45.2) (39.6) (19.8) (35.3)
Transfers (net) 12.4 15.4 20.5 6.3
Current Account Balance (136.7) (202.8) (242.7) (176.8)
Capital and Financial Account 185.5 211.6 244.1 203.3
Capital Account 25.8 43.8 34.0 32.9
Financial Account 159.6 167.7 210.1 170.4
FDI 146.4 121.3 80.9 73.6
Overall Balance 33.5 31.7 7.8 16.4
Change in Imputed Reserves (10.7) (31.7) (8.0) (16.4)
TOTAL PUBLIC DEBT (USD mn)
Total public debt 708.0 785.0 878.7 937.5
Domestic debt outstanding 334.7 392.0 462.3 505.2
Long term ... ... ... ...
Short term ... ... ... ...
External debt outstanding 373.3 393.0 416.4 432.3
Debt Service 41.7 63.2 71.2 92.6
Amortisation 24.8 47.5 34.1 51.8
Interest Payments 16.9 15.7 37.1 40.8
External debt service as % of exports of goods and services 7.7 10.1 7.0 14.0
Total debt service as % of current revenue 22.2 37.9 39.2 26.8
AVERAGE EXCHANGE RATE Dollar(s) per US dollar 2.7 2.7 2.7 2.7
Data for 2012 are provisional.
COUNTRY DATA: ST. LUCIA
2009 2010 2011 2012
POPULATION
Mid-Year Population ('000) 164.7 165.6 169.1 169.1
Population Growth Rate (%) 0.5 0.5 2.1 0.0
Crude Birth Rate 13.3 13.8 13.7 14.2
Crude Death Rate 7.6 7.6 7.6 7.1
Infant Mortality Rate 20.5 20.1 20.1 …
EDUCATION Net School Enrollment Ratio (%)
Primary
92.0
91.0
89.0
88.0
Secondary 82.6 83.6 85.0 85.0
Pupil-Teacher Ratio
Primary
20.0
19.0
18.0
17.0
Secondary 17.0 16.0 16.0 15.0
LABOUR FORCE
Unemployment Rate (%)
18.1
20.6
21.2
21.4
Male 16.8 19.5 19.2 19.4
Female 19.6 22.0 23.3 23.6
Participation Rate (%) 66.0 68.0 69.0 70.0
Male 72.0 75.0 74.0 76.0
Female 60.0 61.0 64.0 65.0
COUNTRY DATA: ST. LUCIA
1980 1990 2000 2010
INDICATORS OF HUMAN DEVELOPMENT
HEALTH AND EDUCATION
Life Expectancy at Birth (years) 67.000 71.0 74.0 77.0
Male … … … 74.3
Female … … … 79.9
Dependency Ratio 0.96 0.72 … ...
Male 1.01 0.73 … ...
Female 0.92 0.72 … ...
Human Development Index
…
…
0.772
...
HOUSING AND ENVIRONMENT Households with piped water (%) 38.8 62.6 80.9 87.4
Households with access to flush toilets (%) 18.5 38.4 52.5 69.4
Households with electricity (%) 44.8 … 86.6 92.7
Environmental strategy or action plan (year prepared):
Source(s): ECCB Research Dept.
… not available
Data as at November 11, 2013
LOAN AND PROJECT SUMMARY
Financial Terms and Conditions
Borrower: Government of Saint
Lucia (GOSL) Amortisation
Period:
Ordinary Capital
Resources (OCR): 17 years
Special Fund Resources
(SFR): 25 years
Executing Agency: Water and Sewerage
Company Inc. (WASCO) Grace Period: OCR: 5 years
SFR: 5 years
Disbursement
Period:
September 30, 2015 – June 30, 2018
Source
Amount
(USD’000)
OCR - Loan: Equity and Market
Tranche
1,675 Interest Rate: Equity
and Market Tranche 3.95 % per annum (p.a.)
variable
OCR Loan: European Investment
Bank (EIB) Climate Action Line of
Credit (CALC) Tranche
12,000 Interest Rate:
EIB˗CALC Tranche
(effective)
2.23 % p.a. variable
SFR – Loan 6,000 Interest Rate: SFR 2.5 % p.a.
Sub-Total Loan 19,675 Commitment Fee: 1% p.a. on the undisbursed
balance of the OCR Loan,
commencing from the 60th
day after the date of the
Loan Agreement.
SFR – Grant 335
Counterpart 4,160
TOTAL: 24,170
Risk Management Country Rating: Not Available (N/A)
Outlook: N/A
Limit: N/A
Overall Project/Entity Score: N/A
Public Sector Lending (as at October 31, 2014): Approvals:
Disbursements:
Repayments:
Undisbursed:
Outstanding Loans:
Availability (Adjusted for Approvals):
Availability (Adjusted for Approvals and
Disbursements):
(USD’000) 360,620 297,124
162,823
69,647
135,100 N/A
N/A
Incremental Capital Adequacy Charge: N/A
(ii)
Office of Risk Management Commentary:
Project Summary
Project Outcome and Description:
The expected outcome of the Project is an efficient, reliable, climate resilient and sustainable supply of
potable water to all of the residents and businesses of Vieux Fort and its environs by December 31, 2018.
The proposed project consists of the following components:
(a) Infrastructure Works comprising:
(i) water production facilities comprising: two river intake structures; treatment
plant, consisting of sedimentation tanks and rapid dual-media filters and
chlorination facilities; and three new pumping stations;
(ii) fifteen kilometres (km) of new high-density polyethylene (HDPE) transmission
mains [sizes 450, 350, and 300 millimetres (mm)];
(iii) three new storage reservoirs totalling 4,000 cubic metres (m3);
(b) Vieux Fort Non-Revenue Water (NRW) Reduction Programme;
(c) Capacity building of WASCO comprising:
(i) Technical Assistance (TA) to conduct an energy audit of WASCO facilities;
(ii) TA to conduct a water audit for the Vieux Fort Water Supply System.
(d) TA for the preparation of the Vieux Fort Watershed Management Plan;
(e) Project Management and Monitoring; and
(f) Engineering Services.
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
(iii)
Exceptions to Caribbean Development Bank (CDB) Policies:
A waiver of CDB’s Guidelines for Procurement (in respect of procurement related to the Infrastructure
Works) and CDB's Guidelines for the Selection and Engagement of Consultants by Recipients of CDB
Financing (in respect of selection and engagement of Engineering Consultants), to extend eligibility to
countries eligible for procurement under EIB-funded projects which are not CDB member countries.
CDB/Special Development Fund Contribution to Country Outcomes – Key Outputs:
CDB’s Results Framework
Capacity Development
(a) Water Resource Management Agency (WRMA) – enhanced data collection capacity.
(b) WASCO – enhanced operational efficiency.
Operational and Organisational Effectiveness – Key Outputs:
Project preparation and appraisal were complemented by staffing resources provided by EIB.
Gender Marker Summary
Gender
Marker
Analysis Data Engagement Response Score Code
1 0.5 0.5 1 3 GM1
1 GM – Gender Mainstreamed: Project has potential to contribute significantly to gender equality. See Appendix 4.17 for the
Gender Marker Analysis.
No. Indicator 2015 2016 2017 2018 2019 2020
1. Water: Installed water capacity (m3/hour) ‒ Rural/Urban
(To be disaggregated during
project implementation).
-
-
900
2. Water: Supply lines installed or
upgraded (length of network in
km) ‒ Rural/Urban
(To be disaggregated during
project implementation).
-
5
10
3. Water: Households with access to improved sanitation and water
supply (Number) ‒ Rural/Urban
(To be disaggregated during
project implementation).
-
-
-
8,600
1. STRATEGIC CONTEXT AND RATIONALE
LOAN REQUEST
1.1 By letter dated January 25, 2011, GOSL requested assistance from CDB in financing the
redevelopment of the Vieux Fort Water Supply System. The first stage of CDB’s assistance took the form
of a TA grant for design consultancy for the proposed works. This capital project is based on the
recommendations of the design consultancy.
MACROECONOMIC CONTEXT
1.2 Over the past five years, Saint Lucia’s economy has been affected by the global recession and
the impact of natural hazards, both of which constrained growth, contributed to high and rising
unemployment, and adversely impacted fiscal performance and debt dynamics. Following a 2.3%
contraction in 2013, indications are that Saint Lucia is poised for another year of decline, albeit at a
slower rate than in 2013.
1.3 Performance for 2014, on the whole, is expected to remain subdued with real Gross Domestic
Product (GDP) declining by around 1%. Thereafter, over the medium term, a pick-up of around 2% is
projected. While Saint Lucia’s growth prospects will depend on continued growth in major trading
partners and a positive spin-off for tourism, in the near term much of the outlook will depend on the
construction sector and the pace of ongoing private and public sector works. Notwithstanding the
assumption of economic growth over the medium term, further fiscal deterioration is expected on account
of a reduction in grant flows, with a concomitant negative impact on the debt trajectory. GOSL however,
has just completed its debt strategy which, inter alia, focuses on the use of concessionary debt in order
to reduce the debt service burden going forward.
1.4 There are major downside risks to the growth forecast, chief of which being a slowdown in the
growth rate of trading partners. Other risk factors include a greater than expected increase in commodity
prices, heightened geo-political tensions, travel concerns amidst the Ebola outbreak, and potential natural
hazards. Domestic risk factors include an escalation in crime and further fiscal deterioration. GOSL will
need to give further consideration to: (a) reducing the use of untargeted commodity price subsidies; and
(b) prioritising capital spending to focus on those projects and programmes with high development impact.
SOCIAL CONTEXT
Demographic Characteristics
1.5 Saint Lucia’s 2010 Census2 puts the total resident population at 166,526, an increase of 9.5% from
2001. This corresponds to a growth rate of 0.5% p.a., well below that of the other English-speaking
countries in the Region, which have an annual average increase of 1%. The population is almost evenly
divided between males and females, and is quite youthful, with about 50% under the age of 30.
The population in Vieux Fort, in particular, has been steadily increasing since the 1991 census. According
to the 2001 census, the population stood at 14,754. The 2010 census recorded an increase in population of
10.4% to 16,284.
2 STL 2010 Population and Housing Census Preliminary Report (Updated April 2011). Central Statistics Office, Chreiki Building,
Micoud Street, Castries. (www.stats.gov.lc).
- 2 -
Water Access
1.6 According to Saint Lucia’s Population and Housing Census (2010), just over 4% of households
(approximately 2,592 households) had access to water from a public standpipe. The census highlighted
significant water-access challenges faced by residents in Vieux Fort and surrounding communities, and
revealed that only one fifth of households were in a position to service their short-term needs. Only 20.8%
of the Vieux Fort households and 18% of the Laborie households had tanks at their homes. In this regard,
a substantive percentage of the households in the project area have limited backup storage when there are
water outages or prolonged periods of interrupted service. Survey data confirms that some poor and
vulnerable, and indigent households (including informal settlements) with limited or no access to potable
water due to shortages or other factors, resort to the river and other sources. In Saint Lucia, as in other
Borrowing Member Countries (BMCs), the fetching of water from alternative sources and its utilisation in
the domestic sphere are activities usually associated with women’s work and have time-use implications.
In poor households, in particular, where women spend significant amounts of time on household work, they
are less able to work in paid employment and to contribute to economic growth in the country.
1.7 Issues of water access also affect the business community in Vieux Fort. The challenges have
become more acute during certain times of the year, including periods of drought, excessive rainfall, and
hurricanes. The unreliability of the water supply system affects productivity and profitability with
implications for business growth, investment, and job creation.
1.8 The macroeconomic and social context of the Project is set out at Appendix 1.1.
THE WATER AND SANITATION SECTOR
Organisation and Structure
1.9 WASCO was incorporated on August 9, 1999. All shares of WASCO are owned by GOSL and
the seven members of the Board of Directors (BOD) have been appointed by GOSL. WASCO has
responsibilities for the provision of water supply and wastewater management services throughout the entire
island. WASCO’s position in the water sector is that of a monopoly. It is the only company engaged in the
business of supplying water services to households and businesses in Saint Lucia.
1.10 With regard to regulation, GOSL enacted the Water and Sewerage Act No. 14 of 2005 (the 2005 Act).
A body corporate and an agency, respectively, the National Water and Sewerage Commission (NWSC) and
WRMA, were created under the 2005 Act. WRMA, located in the Ministry of Sustainable Development,
Energy, Science and Technology, is responsible for the management of water resources. Its responsibilities
under the Act include, but are not limited to: (a) developing watershed management plans and facilitating
regulation accordingly; (b) promoting the sustainability of water resources; and (c) providing
recommendations concerning the declaration of water control areas and waste control areas. NWSC is
responsible for the economic regulation of the delivery of water supply and sewerage services in Saint Lucia.
It is a body corporate and its responsibilities include, but are not limited to, administering the provisions of the
2005 Act, and promoting economy and efficiency in the delivery of any services. The Ministry of Health,
Wellness, Human Services and Gender Relations (MOH) is responsible for the monitoring of drinking water
quality.
- 3 -
Water Resources Assessment
1.11 Saint Lucia is a volcanic island and is geologically composed of impermeable rock. This results
in a very limited movement of water into underground reserves. As a result, water resources are from
surface sources in rivers, wetlands, streams, and springs.
1.12 Water resources are unevenly distributed, temporally and spatially. This has resulted in a water
supply-demand deficit in parts of Saint Lucia. There has been no quantification of the renewable water
sources and there is a need to establish the extent of available water resources. Water demand continues
to increase rapidly, especially within the extreme north due to high infrastructural development and
migration into areas of the north, and other major centres of commercial activities in the south.
1.13 Watersheds in the north‐western corridor of the island, in particular the Choc and Castries
Watersheds, are characterised by their highly developed coastal areas which are significantly impacted by
activities in the upper watershed. The Soufriere watershed located within the south-western corridor, is rich
in coastal biodiversity which is also severely impacted by land‐based anthropogenic activities.
Water Supply and Usage
1.14 WASCO provides water services to an estimated 58,000 connections. Total island production is
estimated to be 1,050 litres per second (l/s), 100% of which comes from surface water sources. There are a total of 29 surface water intakes and 6 water treatment plants (WTP). The Roseau Dam is the main storage
facility in the north, with a design capacity of 3 million (mn) m3. There are approximately: (a) 80 storage
tanks totalling 36,000 m3; and (b) 1,080 km of transmission mains in the system, sizes varying from 250 mm to 600 mm. Ninety percent of the customer base is metered. Water usage has been classified (by
volumes) as follows: (i) domestic – 76 %; (ii) industrial – 5%; (iii) commercial and agricultural – 9%; and
(iv) tourism – 10%.
1.15 WASCO has instituted a number of management systems to support the operations of the network.
A Supervisory Control and Data Acquisition (SCADA) system forms part of the monitoring and operations
of the pumping stations. This system includes water tank level controls and full automation of WTP. There
are currently 17 stations within the north that are remotely operated. Approximately 90% of the water
system has been mapped.
The Vieux Fort Water System
1.16 The Vieux Fort water system serves Vieux Fort, Laborie, and their environs. The communities
served consist of approximately 8,600 households, with an estimated population of 19,500, as well as
institutional and commercial enterprises in Vieux Fort and the surrounding areas. The primary components
of the system include: (a) the Grace intake and treatment plant (79 l/s treatment capacity); (b) the Beasejour
intake and treatment plant (42 l/s treatment capacity); and (c) 12 storage tanks totalling 4,116 m3. The distribution network is 132 km of pipe, made primarily of polyvinyl chloride, with some cast iron (10%)
and galvanised iron (5%). Water is pumped from the treatment facilities to storage tanks at Beane Field
and La Tourney where it feeds the surrounding areas.
Wastewater Management
1.17 Centralised wastewater collection in Saint Lucia is limited to an estimated 7% of the population.
The remaining wastewater disposal occurs through septic tanks, pit latrines and soak‐aways. There are two
centralised sewerage systems in Saint Lucia which are operated and maintained by WASCO. The Rodney
Bay system comprises collection, treatment and disposal, and serves primarily residential areas and hotels.
- 4 -
The treatment capacity of this plant is 90 l/s and treatment is through stabilisation ponds. The second system
is the Castries sewerage network which currently serves approximately 15% of the greater Castries area,
including the main business district. There is no wastewater treatment on this system, and untreated sewage
is discharged into the marine environment via a near-shore outfall.
Key Issues and Constraints
Vulnerability to Natural Hazards and Impacts of CVC
1.18 Detailed climate modelling projections for Saint Lucia predict an increase in average atmospheric
temperature; reduced average annual rainfall; increased sea surface temperatures; and the potential for an
increase in the intensity of tropical storms. Freshwater supplies on the island are highly susceptible
to CVC. During periods of below normal rainfall, drought conditions predominate. Extended dry periods
have been frequent occurrences since 2001. In 2010, during the first four months of the year, WASCO
experienced water shortages on most of its major systems. This resulted in significant rationing of the water
supply to many of its customers, including hotels, schools, and medical facilities.
1.19 On the other extreme of the weather spectrum, during periods of heavy rainfall, watercourses are
susceptible to siltation which impacts significantly on raw water quality. Further, heavy rainfall can trigger
landslides which have damaged several intake structures and transmission mains, leading to water outages
to major systems for periods as long three weeks, as was the case with Hurricane Tomas in 2010 and the
Christmas Eve trough in 2013. Whilst most of the systems have been repaired and are currently functioning,
they remain vulnerable to similar weather events.
1.20 This will exacerbate the potential impact of weather on the water supply of Saint Lucia, and
emphasises the urgent need for CVC considerations to be mainstreamed into the planning, construction,
and operations of the water supply infrastructure.
Watershed Management and Capacity of WRMA
1.21 There are a number of unregulated and unsustainable anthropogenic activities currently affecting
the quality of Saint Lucia’s rivers and other freshwater systems. These include: (a) housing and agriculture
on generally steep watershed slopes, which cause increased runoff and slope stability issues along the
river embankments, which in turn collectively cause siltation and high turbidity in the river water source
during heavy rainfall events; and (b) inappropriate sewage and solid waste disposal and pollutants from
manufacturing and river bathing, which are increasing the potential for domestic and commercial waste and
wastewater contamination, particularly in the lower reaches of the river system. River sand mining and
river alterations have, over time, led to removal of riparian vegetation and increased river bank erosion and
sediment loading. Water abstracted, therefore, requires thorough treatment.
1.22 Portions of forested upper watershed lands, and lands around some existing water intakes, are
privately owned and vulnerable to change of use. GOSL has purchased some areas in various watersheds
that are most critical for water production or storage. However, land purchase is costly, slow, and can
require relocation of residents. There is need for an integrated approach to watershed management to ensure
sustainability of water production and other ecosystem services of watersheds.
- 5 -
1.23 The ability to make adequate water available for domestic, agricultural, industrial, and
environmental use will depend on better management of water resources. The emerging challenges in the
Vieux Fort watershed is a reflection of the wider national challenges that confront WRMA.
1.24 Central to the management of water resources planning, is the ability to determine and measure
resource availability. This requires establishment of an adequate water monitoring network to facilitate
routine collection of reliable rainfall and data, on both quantity and quality of surface water resources.
Management of the water resources, therefore, requires a data-collection system which provides reliable
data and information to decision makers on the status and trends of the country’s water resources. WRMA
has been challenged to fulfill its legislative mandate due to: (a) an inadequate water monitoring network; (b)
the absence of historic datasets, current and historic rainfall, stream flow, runoff, water demand and supply;
2 a weak data management system; (d) inadequate monitoring equipment; and (e) limited capacity of
staff, particularly with regard to data collection, analysis and knowledge management .
1.25 GOSL received TA from AusAID to improve WRMA’s ability to monitor and manage the island’s
water resources through hydrometric monitoring of the water balance. Under the World Bank˗financed
Disaster Vulnerability Reduction Project and Pilot Project for Climate Resilience, some equipment will
be provided to WRMA to better undertake its duties. Despite this assistance, significant needs remain
including support to expand the water resources monitoring network and to improve the skills of technical
staff for data collection and analysis, and to generally plan and improve the management of critical
watersheds.
WASCO Operational Inefficiencies
NRW
1.26 WASCO estimates that it loses 40% to 60% of the water it produces, due to leaks and overflows
from deteriorating infrastructure; water theft; meter under-registration; database inaccuracies; and billing
discrepancies. It is essential that the high levels of NRW be addressed for the company to be an efficient
and sustainable operation. In this regard, WASCO is in the process of developing a national
NRW˗reduction programme which will include: (a) undertaking a complete asset inventory and condition
survey; (b) conducting water audits on the major water networks; (c) phased replacement of aged pipe and
storage infrastructure; (d) phased replacement of water meters; and (e) training of staff on leak detection
and NRW management.
Energy Efficiency
1.27 Energy cost is one of the highest operating costs of WASCO, second only to staff remuneration.
Electricity cost currently accounts for approximately 20-25% of its total operational budget. This is
significantly higher than many of the comparable utilities in the Region and, if not addressed urgently, will
continue to impact negatively on WASCO’s operations. There is a need for an energy audit of its operations
and the development of an energy efficiency improvement plan.
COUNTRY’S SECTOR STRATEGY
1.28 GOSL recognises the importance of an efficient and sustainable water sector to Saint Lucia’s
long˗term developmental goals, and is aware of the need for capital investment in the sector. The proposed
project supports the strategic development of Saint Lucia’s economy within the context of the growth
prospects in the south of Saint Lucia. GOSL has stated that the project area will be a focus for major
development over the next 10 to 20 years. GOSL’s development objective for the project area is to generate
- 6 -
development and employment opportunities in tourism, information communication technology, and
manufacturing. A reliable potable water supply system is critical for the development of the project area.
1.29 Saint Lucia’s National Climate Change Policy and Adaptation Plan identifies the need for
catchment protection in light of continuing degradation and recurring damage from exposure to natural
hazard events, including storms, intense rainfall, and landslides. These reports also indicate the need for
storage and distribution infrastructure to ensure quality-water availability during periods of droughts.
1.30 The proposed project represents an appropriate response to the imperative of proper water resources
management and water infrastructural development in Vieux Fort, and seeks to ensure that all citizens
benefit from safe and reliable access to the resource in order to achieve the high quality of health and
sanitation, so vital to all societies.
LINKAGE OF PROJECT TO CDB’S STRATEGIC OBJECTIVE AND POVERTY GOALS
1.31 The proposed project is consistent with:
(a) The Saint Lucia Country Strategy Paper (2013-2016) under the outcome of ‘improving
efficiency of social and economic infrastructure’.
(b) CDB’s Strategic Objective of supporting inclusive growth and sustainable development
within its BMCs.
(c) CDB’s Corporate Priority to strengthen and modernise social and economic infrastructure.
(d) The Strategic Objective identified in the Special Development Fund’s Contributors Agreement of enhanced environmental sustainability and disaster management, through
assisting BMCs in designing interventions which, among other things, increase access to improved water and sanitation services.
(e) CDB’s Climate Resilience Strategy 2012-2017.
PROJECT RATIONALE
1.32 The Vieux Fort community is on track to becoming a critical region for economic growth in
Saint Lucia. The international airport and national stadium are located in the town, and plans are well
established for a new cruise pier and the construction and operation of three hotels in the area. In addition,
projections for the future of the region suggest increased population size and industrial expansion.
1.33 Currently, there are widespread and debilitating issues related to the quantity and quality of the
water supply. The water supply in the south has been unreliable and inconsistent, in both the dry and rainy
seasons, due to the inadequacy of the system. During periods of intense rainfall, the turbidity of the raw
water rises significantly above an acceptable level. The membrane filter treatment plant at Grace is used
only intermittently by WASCO, due to its high operational and maintenance costs and, consequently, the
plant is often bypassed. In addition, during the dry season, the quantity of water available from the existing
intakes decreases significantly. This often leads to extended periods of water shortages in the area. These
water supply constraints in the area have, to a large extent, curtailed tourism and other industrial
development plans in the south. The Vieux Fort water supply system is in need of an urgent upgrade to
meet existing and projected demand, and to protect public health.
- 7 -
1.34 The Vieux Fort River is currently the most viable source of water supply for Vieux Fort and its
environs. Effective management of the watershed is an essential aspect of sustainable water resources
development in the region. A strategic approach to managing the watershed within the Vieux Fort River
catchment is therefore necessary, in order to optimise the availability of water resources. Additionally, as
discussed in paragraphs 1.25 and 1.26, respectively, reductions in NRW and energy usage by WASCO, are
key to reducing WASCO’s operational costs and improving its sustainability.
1.35 The Project will address these challenges by: (a) upgrading the major water production facilities;
(b) providing TA for the development of an energy efficiency enhancement plan; (c) providing TA for the
preparation and implementation of a Vieux Fort watershed management plan; and (d) reducing NRW in the
Vieux Fort water distribution network. The design of all aspects of the proposed infrastructure has been
assessed for the impact of CVC.
2. PROJECT DESCRIPTION
PROJECT OUTCOME
2.1 The expected outcome of the Project is an efficient, reliable, climate resilient and sustainable supply
of potable water to Vieux Fort and its environs by December 31, 2018. A Design and Monitoring
Framework is presented at Table 2.1.
PROJECT DESCRIPTION
2.2 Details of the Project are set out at Appendix 2.1. The proposed project consists of the following
components:
(a) Infrastructure Works comprising:
(i) water production facilities comprising: two river-intake structures; a treatment
plant consisting of sedimentation tanks, rapid dual-media filters, and chlorination
facilities; and three new pumping stations;
(ii) 15 km of new HDPE Transmission Mains (sizes 450, 350, and 300 mm);
(iii) three new Storage Reservoirs totalling 4,000 m3;
(b) Vieux Fort Water Supply System NRW Reduction Programme;
(c) Capacity building of WASCO comprising:
(i) TA to conduct an Energy Audit of WASCO Facilities (Appendix 2.2); and
(ii) TA to conduct a Water Audit for the Vieux Fort Water Supply System (Annex to
Appendix 2.6);
(d) TA for the preparation of a Watershed Management Plan and to improve WRMA capacity
for water resources monitoring in the Vieux Fort watershed (see Appendix 2.3);
- 8 -
(e) Project Management and Monitoring comprising:
(i) the engagement of a Project Coordinator (PC) (Appendix 2.4);
(ii) TA for the Evaluation of the Gender Impact of the Project (Appendix 2.5); and
(f) Engineering Services (Appendix 2.6).
A Project Location Map is located at Figure 2.1.
TABLE 2.1: DESIGN AND MONITORING FRAMEWORK Design Summary Performance Indicators/Targets Data Sources/Reporting Mechanisms Critical Assumptions
1. IMPACT:
To contribute to economic growth and public health in
Vieux Fort.
1. 10% increase in number of new business and householdconnections to water supply by December 31, 2022.
2. 50% reduction in reported cases of Acute Gastroenteritis
(AGE) in Vieux Fort by December 31, 2022.
1. Invest Saint Lucia Annual Reports.
2. Ministry of Health Annual Reports.
3. WASCO’s operational reports.
1. No major macroeconomic shocks occurs.
2. GOSL pursues sound social and economic
policies and maintains macroeconomic stability and favourable investment climate.
2. OUTCOME:
An efficient, reliable, climate resilient and sustainable
supply of potable water to all residents and businesses of Vieux Fort and its environs by December 31, 2017.
1. Reduction in NRW on the Vieux Fort water system from 56% to 35% by December 31, 2018.
2. Reduction in the number of turbidity readings in Vieux
Fort by more than 1 Nephelometric Turbidity Units
(NTU) from 30 per year to 6 per year.
3. Reduction of annual number of water outages to
households from 30 days in 2013, to 6 days in 2018.
4. 50% reduction in the number of persons engaged in
agricultural activity in the Vieux Fort watershed by
December 31, 2018.
1. WASCO’s operational reports (technical and financial).
2. WRMA operational reports.
3. MOH water quality monitoring statistics.
4. Customer surveys conducted by
WASCO.
1. GOSL has the resources to implement, the Watershed Management Plan.
2. All relevant agencies continue to collaborate
to improve watershed management practices.
3. Water-quality testing is carried out at regular
periodic intervals and systematic records of
test results are maintained.
3. INTERMEDIATE OUTCOME
1. Recommendations of TA Consultancies
implemented.
1. Energy efficiency improvement measures included inWASCO’s budget for 2016.
2. Vieux Fort catchment is declared a water-control area
under the Water and Sewerage Act 2005, by December
31, 2017.
1. WASCO Board and planning documents.
2. WRMA planning documents.
3. Reports and minutes from the ProjectSteering Committee (PSC).
4. OUTPUTS:
1. Water supply infrastructure installed and
commissioned.
2. Measures to reduce NRW in the Vieux Fort water network implemented.
3. Planning tools for WASCO completed in the areas of
improving energy efficiency and reducing NRW.
4. Feasible recommendations for improving the
management of the Vieux Fort River catchment
developed.
5. Gender Impact evaluation framework developed.
1. Laying of approximately 15 km of transmission pipe by
December 31, 2017.
2. Installation of approximately 4000 m3 of additional storage capacity by December 31, 2017.
3. Installation of water production facilities with 250 l/s
capacity by December 31, 2017.
4. WASCO Energy Audit completed by June 30, 2016.
5. Water Audit in Vieux Fort completed by June 30, 2016.
6. Vieux Fort River Watershed Management Plan completed
by May 30, 2017.
7. Project Gender Impact Evaluation Plan completed by
December 31, 2015.
1. Site inspections.
2. Engineering Consultant’s Completion
Reports.
3. PC’s reports.
4. TA consultants’ reports.
1. Participatory process to build consensus
among key stakeholders.
2. WASCO and GOSL accept recommendations of TA.
3. New infrastructure adequately maintained
and efficiently operated.
- 9 -
Activities/Inputs CDB
($’000)
GOSL
($’000)
Total
($’000) 1. Consultant’s Monthly Progress
Reports.
2. CDB site supervision visits.
3. PC Quarterly Reports.
1. GOSL counterpart contribution available.
2. No major adverse weather conditions.
3. Relevant stakeholders are committed tocollaborating to support all aspects of the
project implementation
1. Infrastructure 37,722 5,252 45,059 1. Consultant’s Monthly Progress Reports. 1. GOSL counterpart contribution available.
2. Services 4,851 4,258 7,024 2. CDB site supervision visits. 2. No major adverse weather conditions.
Sub-total 42,573 9,510 52,083
3. PC Quarterly Reports. 3. Relevant stakeholders are committed to
collaborating to support all aspects of the projectimplementation.
3. Physical and Price Contingencies 8,683 1,721 10,395
4. Finance Charges 2,773 - 2,773
Total 54,029 11,231 65,259
- 10
-
RESULTS MONITORING FRAMEWORK
Baseline
2014
Targets Report and
Frequency
Responsibility for
Data Collection Project Outcome Indicators 2015 2016 2017 2018
1. NRW on the Vieux Fort water system (5) 56 % 56% 56% 45% 35% Annually WASCO
2. Number of readings per year in Vieux Fort of more
than 1 NTU 30 30 30 30 6 Annually WASCO
3. Total annual water outages (day) 30 30 30 30 6 Annually WASCO
4. Reduction in agricultural activity in the Vieux Fort
watershed by December 31, 2018. No - - - Yes Annually WRMA
Intermediate Outcome
5. Energy efficiency improvement measures included
in WASCO’s budget No - Yes - - Annually WASCO
6. Vieux Fort catchment is declared a water-control
area under the Water and Sewerage Act 2005 No - - Yes - Annually WRMA
Outputs
7. Transmission pipe installed (km) 5 15 - Quarterly PC
8. Additional storage (m3) 0 0 0 4000 - Quarterly PC
9. Installation of water production facilities - - Intakes
completed Treatment Plant and
pumping station completed - Quarterly PC
10. Completion of WASCO Energy Audit No - Yes - - Quarterly PC
11. Completion of Vieux Fort River
Management Plan Watershed
No Yes - Quarterly PC
12. Completion of Vieux Fort Water Audit No Yes - - Quarterly PC
13. Gender Impact Evaluation No Framework
completed - Evaluation
completed Quarterly PC
- 11 -
- 12 -
LESSONS LEARNED
2.3 The lessons of experience in implementing water projects in Saint Lucia, and infrastructure projects
in general, which apply to this project, have been taken from CDB’s previous involvement in infrastructure
projects. These include:
(a) capital investment not accompanied by capacity building in key sector institutions can
negatively impact project and sector sustainability;
(b) the appropriate choice of technology is key to attaining a sustainable project outcome as it
impacts on operational and maintenance costs. This lesson is particularly relevant to this
project as the existing treatment plant (which was recently installed) is currently not utilised
because of high operational costs;
(c) the level of participation of the parent agency (responsible for operating and maintaining
the project facilities) in the design and implementation of the Project, influences their levels
of ownership of the Project; and
(d) institutional strengthening components should be delegated to appropriate government
agencies to reduce unnecessary delays in the completion of these components and to
facilitate ownership by the agencies.
2.4 These lessons have informed the design of this project as follows:
(a) the Project is designed to strengthen WASCO through TA interventions which address
operational effectiveness and efficiency;
(b) engineering design consultants worked closely with WASCO’s operational staff to ensure
that technologies adopted were appropriate for WASCO’s operational and maintenance
capacity;
(c) WASCO, the entity responsible for managing the project facilities, will be the
Executing Agency for the Project; and
(d) GOSL, through WRMA, will be integrally involved in the management of the watershed
management TA.
3. FINANCING STRUCTURE AND COSTS
3.1 The project cost is estimated at $65.26 mn which will be financed with resources from CDB and
GOSL. Cost estimates for infrastructure works were based detailed design specifications prepared by
engineering consultants. A summary of the Project Cost, Phasing and Financing Plan is shown in
Table 3.1 and a detailed Project Cost, Phasing and Financing Plan is presented at Appendix 3.1.
Cost estimates were reviewed by both CDB and WASCO staff and found to be acceptable. Estimates for
consultancy services associated with engineering services and TA are based on current rates for
professional fees. CDB staff are satisfied that adequate contingencies have been provided to ensure the
completion of the proposed components.
- 13 -
3.2 At its Two Hundred and Forty-Ninth meeting held on December 8, 2011, BOD of CDB
considered Paper BD 124/11 entitled “European Investment Bank – Loan to Caribbean Development
Bank: Climate Action Line of Credit” and approved CDB borrowing from EIB the equivalent of
fifty million Euros (EUR50 mn) (the EIB Loan) in United States dollars for inclusion in CDB’s OCR to
finance private and public sector climate action projects in CDB’s BMCs.
3.3 The finance contract between CDB and EIB was executed on December 29, 2011 (the Finance
Contract) and provides, among other things, for CDB to make the proceeds of the EIB Loan available to
CDB’s BMCs for Eligible Projects (as defined therein). The proposed project conforms to the relevant
eligibility criteria set out by EIB under the Finance Contract and it is proposed that an amount not
exceeding twelve million United States dollars (USD12,000,000) be allocated to this project.
In accordance with the Finance Contract, the interest rate payable by recipients of the resources provided
by EIB to CDB under the CALC shall consist of CDB’s OCR rate minus the relevant interest rate subsidy
applied to each disbursement made to CDB under the Finance Contract, varying between 0% and 3%
p.a., as calculated pursuant to Article 3.01 thereunder. The indicative interest rate subsidy is currently
calculated at 1.72%.
3.4 The proposed project will be financed by:
(a) a loan to GOSL of an amount not exceeding the equivalent of USD19,675,000 (the Loan)
representing 82% of project cost comprising USD6,000,000 from CDB’s SFR and
USD13,675,000 from CDB’s OCR. The OCR portion comprises:
(i) an amount not exceeding the equivalent of USD1,675,000 (the Equity and Market
Tranche); and
(ii) an amount not exceeding the equivalent of USD12,000,000 allocated from
resources provided by EIB to CDB under CALC (EIB-CALC Tranche).
(b) a grant to GOSL of an amount not exceeding the equivalent of USD335,000 (the Grant)
from CDB’s SFR, to assist with consultancy services for capacity building at WASCO
and WRMA, and for watershed protection; and
(c) counterpart funding of $11,231,000, representing 17% of project costs, to finance part
of the NRW Reduction Programme, capacity building, and counterpart staff for project
management.
3.5 The SFR portion will be repayable over a period of 20 years following a grace period of 5 years,
with interest rate fixed at 2.5% p.a. The OCR portion will be repayable in 12 years following a grace period
of 5 years. Interest on the Equity and Market Tranche of the OCR Portion is variable, and is currently
3.95%. The interest on the EIB-CALC Tranche of the OCR Portion is also variable and is currently
calculated at 2.23% p.a. being 3.95% minus the interest rate subsidy of 1.72% (indicative).
- 14 -
TABLE 3.1: SUMMARY OF PROJECT COST AND FINANCING
($’000)
Item
CDB
GOSL TOTAL OCR
SFR -
GRANT
OCR
(CALC) SFR
1. Infrastructure 3,201 - 22,590 11,931 5,252 42,974
2. Services 253 905 2,883 810 4,258 9,109
Base Cost 3,454 905 25,474 12,741 9,510 52,083
3. Physical and Price Contingencies 719 - 5,281 2,683 1,721 10,403
4. Finance Charges 349 - 1,646 778 - 2,773
Total Project Costs 4,523 905 32,400 16,201 11,231 65,259
USD Equivalent 1,675 335 12,000 6,000 4,160 24,170
Percentage (%) Allocation 7 1 50 25 17 100
4. PROJECT VIABILITY
TECHNICAL ANALYSIS
4.1 In 2004, GOSL commissioned a study3 to analyse the sustainability of the water supply in
Vieux Fort. The Report was updated in 2012, and recommended that new development on the current water
system should be undertaken, such as an additional river intake in the Vieux Fort River, additional storage,
and a new treatment facility. These recommendations were presented as medium-term solutions and in the
context where groundwater sources were explored and ruled out as an option. In 2012, GOSL also
commissioned an engineering design study (co-financed by CDB) which examined the feasibility of options
for new intake, storage, and treatment works.
Demand Analysis
4.2 A 20-year design period was stipulated by GOSL. In undertaking the demand analysis, census data
for 1980, 1991, 2001, and 2010, were assessed by the Engineering Consultants. A compounded annual
growth rate of 1.3% was calculated for the Vieux Fort region. This was applied to the estimated project area
population of 19,479, leading to a projected population of 25,220 by 2033. A per capita demand rate was
recommend by the Consultant of 311 litres/capita/day, taking into account estimated NRW (at 56%). An
assessment was then made of the demand of the existing major institutions in Vieux Fort, including the
Hewanorra International Airport, hospitals, schools, hotels, industrial areas, and commercial enterprises.
Demand of planned new development was also taken into account, including a cruise ship berthing facility
and three new hotels. The resultant project annual daily demand flow for 2033 was 139 l/s, a 55% increase
over the estimated 2013 demand. This translated to a maximum daily demand (MDD) flow projection and
design flow of 250 l/s.
3 Analysis for the Sustainability of the Water Resources and Supply of the Vieux Fort Region of St. Lucia, Frank Dale
Morgan, Brad Johnson November 2004. Update 2012 by Frank Dale Morgan, Burke Minsley, Earth Resources
Laboratory, Department of Earth, Atmospheric and Planetary Sciences, Massachusetts Institute of Technology
Cambridge, MA, USA.
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
- 15 -
Selection of Water Production Facilities
4.3 Decisions on intake and treatment site location were made in consultation with WASCO and
other GOSL officials, including WRMA. The Engineering Consultants concluded that utilising, as
much as possible, the existing water system in Vieux Fort was desirable, as it reduced the costs
associated with acquiring and developing new lands. Three options were assessed for: (a) the volume
of available water during the dry season; (b) the pumping requirements for raw and treated water; and (c)
intake water quality risks.
4.4 The solution selected comprise: (a) a new intake at elevation 33 m; (b) an emergency intake
to provide redundancy in the event of damage to the primary intake in heavy rainfall events; and (c) a
treatment plant at the Beausejour site.
Treatment Plant Design
4.5 Water quality information for the Vieux Fort River indicated a wide variation in water
quality between the wet and the dry seasons. The wide variation in turbidity, in particular, was creating
challenges for the existing membrane filtration plant at Grace. Based on lessons learned from operating
this plant in Saint. Lucia (high energy costs and inability to treat high turbidity water), membrane
filtration technologies were eliminated in favour of conventional media filtration treatment options. Slow-
sand filtration was ruled out because of the large-land footprint requirements, thereby leaving high-rate
media filters as the preferred option.
4.6 World Health Organisation (WHO) Guidelines for drinking water quality, guided the target
effluent water quality with the primary water-quality objectives being: (a) the inactivation of viruses,
bacteria, and other pathogenic organisms; (b) the removal of organic carbon; and (c) the reduction of
turbidity to below 1 NTU.
4.7 Based on these considerations, the main components of the proposed treatment works will
comprise: (a) a coagulation and flocculation tank; (b) two sedimentation basins; (c) four rapid-gravity
dual media filters; and (d) disinfection (chlorine gas).
Storage
4.8 The analysis of storage requirements by the Engineering Consultants indicated a storage
shortfall of 2,665 m3. A condition assessment of the existing storage tanks in the Vieux Fort system indicated that the existing water storage tank at Grace was badly corroded and required replacement.
Hence, the Project will be supplying an additional 2,800 m3 of new storage tanks, comprising of two
tanks at Beane Field and La Tourney. Grace storage tank (1,135 m3) will also be replaced. For the storage tanks, reinforced concrete and glass-fused steel were considered, however, glass-fused steel was
the preferred option due to its relative ease of installation and its satisfactory historical performance in Saint Lucia.
Transmission Mains
4.9 The capacity of the existing transmission mains is insufficient to address the new
production volumes to the storage tanks for distribution. As a result, new transmission lines will be
installed ranging in internal diameter size from 300 to 450 mm. The preferred pipe material is HDPE for
its high durability, resistance to corrosion, and ease of installation in the soil conditions of Saint Lucia.
-16-
River Abstraction Rates
4.10 Estimates of the flows in the Vieux Fort River were made using a flow accumulation model
and rainfall data, which was undertaken in the Dale Morgan Report. Wet season flows were projected
to be adequate to meet the 2033 demand, but the projected dry season flows resulted in a demand shortfall.
Based on WRMA recommendations, a maximum abstraction rate of 50% and a projected dry season flow
of 200 l/s from the Vieux Fort River, the dry season extraction will not be able to meet the projected MDD
(a shortfall of 150 l/s). Whilst this shortfall is only expected to affect Vieux Fort for brief periods of
the year, this highlights the vulnerability of the surface water systems in Saint Lucia to drought. These
impacts are likely to be exacerbated by the impacts of CVC. The long-term supply options open to GOSL
include bulk storage through the construction of a dam in the south, and desalination. Both of
these options are being investigated by GOSL, but will undoubtedly require very high levels of
investment. There is, therefore, critical need for GOSL to not only seek to increase the supply, but also
reduce system losses. This makes initiatives for reducing NRW, a critical part of sustainability of the
water supply system in Vieux Fort, and in Saint Lucia as a whole.
TA
4.11 The design of the TA activities in the project scope was guided by an assessment of the issues
and constraints in the water sector which could negatively impact the sustainability of the Project. The
proposed consulting services cover the range of support required to improve: (a) WASCO’s operational
efficiency; and (b) WRMA management of the Vieux Fort watershed. TA will also be provided to
assist GOSL and CDB in evaluating the impact of the Project on gender relations. This is expected to
benefit GOSL and CDB in improving the design of future water sector interventions.
INSTITUTIONAL AND FINANCIAL ANALYSIS
ECONOMIC ANALYSIS
4.29 The analysis assumes that the main quantifiable benefits associated with the Project will be derived
from:
(a) a reduction in household expenditure on bottled water for drinking and cooking;
(b) savings in health care cost due to a decreased incidence of AGE illness in the
project area; and
(c) a reduction of 20% in the level of NRW.
4.30 Survey results indicate that 72% of households have been affected by the inadequacy of the
water supply system, through water outages and high turbidity. Consequently, many residents have been
forced to rely on other sources of supply such as: bottled water; rain water harvesting; river water; and
collection and storage of water from WASCO’s supplies, to deal with these water supply challenges.
With respect to water used for drinking and cooking, the survey results indicated that approximately
45% of residents in the area relied on bottled water.
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
-17 –
4.31 In order to obtain a conservative estimate of the economic benefits of improved water quantity
from a rehabilitated water supply system, an assessment was conducted of the savings from reduced bottled
water purchases for drinking and cooking. A survey of households indicated that during the 4˗month dry
season, 14.1% experience water supply outages every day; 41.7% every week; 30.6% every month; and
6.3% more than once per month. This translates to approximately 30.1 days of water outages per
capita per year. The analysis assumes a project success rate of 80% in reducing water outages. As noted
earlier, there are other significant impacts of water supply outages in Vieux Fort, however, the savings in
bottled water purchases can be taken as a conservative estimate of benefits to be derived from
rehabilitation of the water supply system.
4.32 Improvements in water quality will be derived in the long run from implementation of the Watershed Management Plan and the ensuing protection of the watershed, improved storage facilities,
and construction of a new treatment plant. In order to capture the benefits that would result from improved water quality as a result of the Water Rehabilitation Project, an attempt was made to measure
the economic costs of AGE resulting from poor-quality potable water. Estimated AGE occurrence and
associated cost of treatment are based on a recent study4 in Saint Lucia. The results are summarised in
Appendix 4.13. In the “With Project” scenario, a reduction of 50% in AGE episodes in Vieux Fort is
assumed based on experience with similar scoped projects.
4.33 Benefits from a reduction in NRW will be derived from the proposed investments in distribution
system improvements in Vieux Fort. It is estimated that as a result of the Project, the level of NRW
will be reduced from 56.6% to 35%, by 2019. Consequently, the direct production cost of water is
projected to decrease by $7.1 mn (in present value terms) over the assumed project life of 20 years.
4.34 In addition to the benefits identified above, the Project is expected to generate additional
benefits due to the incorporation of certain CVC-adaptation measures (reference Appendix 4.14). These
include reduced downtime when the primary intake is damaged due to landslides; more consistent
effluent water quality due to enhanced treatment plant processes; and reduced downtime and cost of
equipment repairs due to landside and flood impacts on the transmission and treatment plant. Although
these benefits are difficult to quantify, they are significant in comparison to the risk of not implementing
measures to strengthen the climate resilience of the Project. The cost of CVC-adaptation measures
included in the Project is estimated at USD1.4 mn.
Incremental Economic Rate of Return (ERR)
4.35 The incremental ERR is estimated at 19% as shown in Appendix 4.15 and the
assumptions underlying the economic analysis are provided at Appendix 4.13. The ERR exceeds CDB’s
cut-off rate of 12%, and is based on conservative assumptions. Further, a number of positive impacts
have not been quantified, such as: (a) the creation of jobs in construction; (b) a reduction in the need to
fetch and store water; (c) benefits to existing businesses and schools that have been affected by
water quality and accessibility issues in the past; (d) increased energy efficiencies of the rehabilitated
system; and (e) the removal of water shortage/quality barrier to economic growth in terms of new
hotels and other commercial developments. These are discussed further in paragraphs 4.48 to 4.49.
Sensitivity Analysis
4.36 Sensitivity tests were carried out focusing on the impact of certain parameters deemed most
likely to affect project outcomes. The parameters considered were: (a) project costs increases; (b) a
failure to achieve the projected decrease in water outage days and incidence of AGE; and (c) the
combined impact of increases in project costs and failure to achieve projected water quantity and quality
-18 -
benefits. The results are shown in Table 4.1 and suggest that the ERR is quite resilient to increases
in project cost and to a reduction in the projected benefits. In the worst case scenario of both, an
increase in capital cost and reduction in anticipated savings from reduction in bottled water purchases
and the health care cost, the Project is still economically viable.
TABLE 4.1: SENSITIVITY ANALYSIS
Item Scenario ERR (%) Switching
Values (%)
1. Base 19.0 -
2. Project Cost Plus 10% 17.0 45.0
3. 70 % reduction in water outage days 15.0 55.0
4. 10% higher AGE Episodes 18.0 -
5. Combination of Items 2, 3 and 4 13.0 -
ENVIRONMENTAL AND SOCIAL ANALYSIS, RISKS AND SAFEGUARDS
Environmental Assessment
4.37 The Project is classified as Category “B” under CDB’s Environmental and Social Review
Procedures (ESRP) because of its limited potential for adverse environmental impacts that can be avoided
or mitigated by adhering to generally recognised performance standards, guidelines, or design criteria,
and proper environmental monitoring during project implementation. An environmental impact
assessment (EIA) and a draft environmental management plan (EMP) were prepared by engineering
consultants. The EIA concludes that there are no significant or irreversible environmental impacts
envisaged due to the project interventions and that net socioeconomic benefits will be positive.
4.38 The project sites are not located within protected areas, however, three bird species5 endemic
to Saint Lucia and protected under the Wildlife Protection Act, 1980, were identified during site
investigations in the forested/vegetated area in the vicinity of the main intake and pump station. The
International Union for the Conservation of Nature 2013 Red List does not include any freshwater fish
species known to occupy Saint Lucia’s rivers. As stated in paragraph 4.10, WMRA has limited
abstraction from the river to 50% of the river flows so as to reduce the impacts on river ecology and
downstream uses.
4.39 The raw water transmission line from the intake to the Beausejour WTP and 12 km of the
treated water mains from WTP are proposed to be laid through agricultural areas, which will include
private lands. A grant of an easement from landowners, will therefore be required. The other
transmission mains for treated water are routed along existing roads within the road reserves. Most of the
land required to construct the water supply infrastructure is owned by GOSL. GOSL will, however,
have to acquire a small lot of land for siting of the intake pump station. It will be a condition precedent
to first disbursement with respect to infrastructure works that GOSL acquires the land required for the
Project or, alternately, make arrangements that are satisfactory to CDB for entry into possession of
such lands for the purposes of the Project.
-19 -
4.40 The Draft EMP includes recommendations for mitigation measures to address construction
and operational-related impacts, such as: noise and dust; reduced downstream uses and water quality,
spoil and waste disposal and potential disruption of flows; removal of existing vegetation affecting
wildlife; health and safety concerns; traffic diversions; increased turbidity; potential dredging
operations during maintenance of intake facility; over-extraction of water from the intake site; and
improper handling and storage of chemicals.
4.41 The appropriate provisions of the Draft EMP will be included in the technical specifications of
the bid documents and itemised for contractor pricing in the Bills of Quantities of the bidding
documents for the Works Contract. The tender documents will require that the Contractor provide a site-
specific EMP for implementation of the Works. Environmental performance of the Contractor will
be monitored for compliance, and routine reports provided to CDB by the Engineering Consultants.
Natural Hazard Risks and CVC Vulnerability Assessment
4.42 Construction and operation of the proposed new intake and pump station, WTP, associated pump
station, and the proposed pipeline routing along the Vieux Fort River, can be potentially impacted by tree
and rock-fall hazards, landslides, coarse bed loads, sedimentation, scour and debris flows, and flooding.
The proposed new intake and pump station sites are on lands deemed to have a moderate risk of landslide
occurrence.
4.43 The mitigation of identified potential natural hazard impacts, will be addressed through design
and construction management considerations, watershed protection, and routine monitoring.
Anthropogenic events in the upper catchment also pose risks to the new intake. Watershed management
for source protection, has been included in the project design to contribute to the sustainability of the
project outcomes. This will involve preparation of a watershed management plan, and strengthening
hydrological data management systems and stream flow monitoring capacity.
4.44 An Emergency Weather Management Plan (EWMP) for the operations of the water production
facilities in the Vieux Fort water system was prepared by the Engineering Consultants. WASCO has
management plans and protocols for maintenance of critical water supply infrastructure during the
hurricane season and emergency events. This EWMP will strengthen the management and operation of
the Vieux Fort water system and will improve WASCO’s ability to facilitate a more coordinated response
when specific extreme weather conditions occur. The scope of the EWMP includes identification of lead
agencies and detailing of their functional roles and responsibilities. The Plan also details emergency
information and communications requirements. The EWMP will be integrated into WASCO’s operational
procedures. Four climate impact scenarios aligned to estimated climate projections6 for Saint Lucia, were
assessed on source water quality, and infrastructure performance (operations and maintenance). Higher
temperatures may induce water quality degradation in source waters and under periods of extreme heat,
may result in a reduction in the quantity of water available for withdrawal at the intake. Increases in
temperature may also lead to increased microbial populations with potential for negative human health
impacts. Chlorine dosing for disinfection is also dependent on temperature, with higher temperatures
requiring higher chlorine dosage.
________________ 4/ Estimating the Burden of Acute Gastrointestinal Illness: A Pilot Study of the Prevalence and Underreporting in
Saint Lucia, Eastern Caribbean (Journal of Health Population and Nutrition, December 2013).
-20-
4.45 Hurricanes and extreme precipitation events represent hazards posing significant potential for
climate impacts to drinking water infrastructure components. These conditions can result in increased
river discharge and stream flows, increased runoff, degraded quality of source water related to higher
sediment loads and turbidity, higher chemical burden in source water and potential damage to structures
and components induced by slope failure and landslides, wind damage, electrical service disruptions,
communication network disruption, debris flows, floods, river channel obstruction and channel alignment
alteration, site and maintenance access limitations, and staff-response limitations. Drought conditions, on
the other hand, are likely to result in decreased river discharge and stream flow, increased number and
intensity of wildfires, changes in watershed vegetation and forest cover, and higher water demand.
4.46 Climate change adaption measures have been incorporated into the project design process to
reduce the likelihood of significant damage to the project infrastructure from identified climate
variability and climate change impacts. These measures include:
(a) constructing redundant intake in an area less prone to landslides and heavy rainfall
events, to reduce downtime when primary intake is damaged or being cleaned;
(b) enhanced ventilation of electromechanical equipment within the intake pump house to
minimise cost of equipment repairs due to equipment overheating during periods of
extremely high temperature occurrences;
(c) raised elevation of WTP for protection during heavy rainfall events which could cause
flooding and will lower cost associated with equipment repairs due to flood damage;
and (d) trench armouring and resilient pipe material to mitigate landslide impact on
transmission lines during heavy rainfall events which could cause landslides, thereby
reducing cost of line repairs. A summary of the Climate Vulnerability Assessment and
the specific adaptation measures to increase climate resilience, are presented in Appendix
4.14.
Social and Gender Assessment
4.47 The Project is classified as category “B” under the Bank’s ESRP. Adverse social impacts are
likely to be minimal, mitigation measures can be implemented without inordinate difficulty, and
significant social risks are not anticipated. Positive social impacts are highly likely and significant social
benefits are expected to be widespread throughout Vieux Fort, its environs, and across sectors. The
project design benefitted from a Social Impact Assessment (SIA) which was conducted by consultants as
part of the Feasibility Study – Vieux Fort Water Supply Redevelopment Plan. A draft Social Impact
5 Saint Lucia Oriole (Icterus Laudabilis); the Saint Lucia Warbler (Dendroica Delicate); and the Saint Lucia Black
Finch (Melanospiza Richardsoni).
6 Scenario 1: projected increased temperature events, increased extreme daily maximum temperatures, increased
monthly maximum temperatures. Scenario 2: extreme precipitation events – increase in frequency of extreme
precipitation and increase in intensity of extreme precipitation, including flooding conditions. Scenario 3:
projected decrease in precipitation events, increased evapotranspiration and extended drought. Scenario 4:
increased annual basis of Cat V and IV hurricanes, with increased peak wind speeds and heavier storm
precipitation, including flooding conditions.
- 21 -
Management Plan (SIMP) was prepared as part of the SIA to provide a framework with institutional
responsibility for monitoring impacts during and post project implementation (see Appendix 4.16). The
Assessment took into account the perspectives and local knowledge of diverse stakeholders who would be
impacted by the intervention including, inter alia, community members being supplied by the current and
improved water system and project activities, business persons, and essential service providers. The
Assessment identified this intervention as critical to improving the reliability and resiliency of the water
supply system in Vieux Fort.
4.48 Under the Water Utility Reform Training Programme, a regional CDB-funded TA intervention will
be implemented during the period November 27-28 and December 1-5, 2014, to provide strategic support
to senior level and technical staff in water utilities in BMCs, to improve their knowledge and expand
awareness of the approaches to improving service delivery, and to increase their awareness of the
importance of gender mainstreaming and CVC in the utility’s operations. A methodology to enhance
gender mainstreaming in project implementation will be operationalised through a CDB-funded TA that
includes sensitisation, training, and capacity building in gender analysis for public sector employees in
Saint Lucia7. WASCO staff will benefit from this project which will be implemented over a period of 21 months, commencing in March 2015. The Project is entitled “Mainstreaming Gender Equality in Saint
Lucia’s Sustainable Development Plan” and the main outcome is gender justice prioritised and
mainstreamed in GOSL’s planning process. The implementing agency is MOH. This phase will focus on
gender analysis training with a focus on increasing gender responsiveness of organisational effectiveness
processes, sector policies, resource allocations, monitoring and evaluation, and evidence-based decision
making linked to sustainable development. The next step in the process will involve discussions with
WASCO to increase buy-in for gender analysis and mainstreaming and to identify key areas in which CDB
could provide substantive support, as necessary to develop: a gender-responsive human resource strategy;
sector/operational policy; a framework to incorporate gender in the institutional and operational aspects of
the utility; or other areas considered critical to improving gender-equitable outcomes linked to Saint Lucia’s
sustainable development.
4.49 Overall, the Project will contribute to improving the country’s performance on Goal 7 of the Millennium Development Goals (MDGs) and Caribbean-specific MDGs – Ensure Environmental
Sustainability8. Surveys conducted during the Trade Adjustment and Poverty (TAP) Study showed that
there are areas in Saint Lucia, including the south, that receive intermittent supply of water on a weekly basis (CDB 2007, 147). The findings of the SIA (2014: 35) emphasised that the proposed improvements
to the water system would address these concerns and move Saint Lucia even further along in the process of providing safe drinking water to 100% of its population, of which the diverse communities of Vieux Fort
are an integral part.
4.50 Operators of retail and small businesses in the adjacent communities, especially those that operate
food and beverage establishments are likely to benefit from increased business generated during the
construction phase of the Project. The construction phase will provide temporary, but welcomed,
employment for both male and female skilled and unskilled workers, and youth, particularly those in project
areas and neighbouring communities. These income-generating opportunities will provide an important
income source for poor households, particularly during this period of economic recovery in Saint Lucia.
7 Saint Lucia undertook a Country Gender Assessment (CGA) with CDB support in 2011. The CGA noted that
Saint Lucia does not have clear, comprehensive systems for integrating gender analysis into government
programmes. There is no system or process for gender budget analysis or procedures for gender monitoring and
evaluation. The training in gender analysis and capacity building was developed based on the recommendation that
emanated from that finding.
- 22 -
4.51 During the SIA, stakeholders at the household level informed about the differential impacts the
unreliable water supply had on their daily lives. These included: experiencing illness resulting from poor
water quality; increasing their household budget to purchase bottled water or to have water trucked to their
home; lowering productivity resulting from arriving late to work; and affecting their children’s education
because they arrived late to school or had to return home early because the school had no water. The Project’s outcome is expected to address the challenges that were identified. Based on research and
lessons of experience, improvements in water technology enable changes in household time-allocation
patterns and, thereby, productivity gains because of reduced time intensity of home-production activities
that are impacted by water (Meeks, 2012)9. Consequently, the improved system is expected to increase
male and female residents’ productivity resulting from a reduction or elimination in lateness and
absenteeism at the workplace. In addition, students should be able to attend school in a timely manner and
remain there for the requisite period of time necessary to enhance their educational experience and outcomes. The reduction of time spent by household members (mainly by women and girls) fetching and
storing water will allow members opportunities to make alternative use of that time for productive or leisure
activities. Households are expected to increase their disposal income, since the new system should reduce or
totally eliminate what they currently spend on purchasing water. Furthermore, water-quality related
illness should be drastically reduced/eliminated, improving the health of children and adults, and also
reducing the time and money adults spend on medical bills and providing care to sick children or other
relatives, the burden of care that is disproportionately borne by women. Ultimately, the quality of life
should improve across the communities, but especially for women who have primary responsibility for
managing the tasks requiring water in the household. The Project has been scored as Gender Mainstreamed,
details of this analysis and a Gender Action Plan for the Project may be found at Appendices 4.17 and 4.18,
respectively.
4.52 BNTF 7 investments in the water and sanitation sector in poor communities in Vieux Fort,
identified as a priority in the Country Portfolio of Projects, will complement GOSL’s overall efforts at
providing safe access for all, in keeping with the philosophy that recognises access to water and sanitation
as a basic human right. TAP Report (2007: Executive Summary) indicated that 19.5% of children ages 0˗14
who were classified as poor, were living in households in Vieux Fort. A large proportion of these children
are likely to be living in these informal settlements. The provision of access to the water system is expected
to result in a reduction in the numbers of males and females, boys and girls, fetching water from, and using,
the rivers in unsanitary ways, resulting in improved health and, at the psychological level, improved self-
esteem.
4.53 Currently, housing developments are stymied as a result of the absence of water distribution lines.
The Project, by improving access to safe and reliable water will contribute to future expansion of the
housing sector over time and enhance home-ownership opportunities, which will become critical in light of
the projected population increase. In addition, the Project is expected to deliver social benefits by
supporting investments in the tourism sector resulting from increasing investor confidence in Vieux Fort,
the southern quadrant of the country identified as a critical area for economic growth. Tourism and
industrial investments in Vieux Fort are necessary to stimulate the local economy and provide employment
opportunities that will generate income to assist in reducing poverty and vulnerability of male and female
household heads over the medium to longer term.
8 Goal 7 comprises Target 10: to halve, by 2015, the proportion of people without sustainable access to safe drinking
water and sanitation – with indicator as the proportion of population with sustainable access to improved water
source, urban and rural. 9 Meeks, R. (2012: 12-35). Water Works: The Economic Impact of Water Infrastructure. Harvard Environmental
Economics Program. July 2012 Discussion Paper, cited in SIA – Vieux Fort Water Supply Final Redevelopment
Plan.
- 23 -
SUSTAINABILITY
4.54 The sustainability of the project outcomes will depend on the effectiveness of the capacity building
TAs for the key sector institutions and the capacity of WASCO to maintain the newly constructed facilities.
4.55 The Project will support improvements in WASCO’s operational efficiency and development of a
gender-sensitive strategic framework for improvement of watershed management in the Vieux Fort River
watershed.
Maintenance
4.56 The Infrastructure Works design incorporates features that reduce maintenance requirements.
WASCO is implementing steps to improve its operational efficiency and reduce operational costs.
Financial projections (Appendix 4.9 to 4.11) demonstrate that current tariff levels are expected to generate
sufficient revenues to cover operating costs. It will be a condition of the Loan that WASCO adequately
maintains the infrastructure financed under the Project. As a further condition of the Loan, WASCO will
undertake an annual condition assessment of the project infrastructure, commencing six months after
the certificate of practical completion has been issued, and submit to CDB the report of that assessment
within one month of its completion.
- 24 -
5. RISK ASSESSMENT AND MITIGATION
5.01 A summary of key risks impacting the Project is outlined in Table 5.1.
TABLE 5.1: SUMMARY OF RISK ASSESSMENT AND MITIGATION
Risk Type Description Mitigation Measures Financial Credit ‒ Lack of counterpart
funding. Although the counterpart contribution is high at 17% of
project cost ($11.2 mn), the costs have been allocated in such
a way as to minimise the actual cash outlay for GOSL. Of
the total counterpart contribution, approximately $4.2 mn is
in-kind contribution. GOSL has committed to the
components requiring cash outlay, which are scheduled to
occur in 2016 and 2017. This will allow GOSL to budget
and plan for this expenditure.
Implementation Construction Risk ‒ Risk of
cost overruns or time
delays.
Adequate resources have been allocated to procure an
experienced PC and qualified engineering consultants to
oversee the implementation of the Project. The quality of
this oversight will contribute significantly to keeping the
work schedule on track.
Cost estimates for the Infrastructure Works are based on
detailed specifications. Adequate contingencies have been
provided to ensure the completion of the proposed
components.
The works and services contracts will be based on model
contracts which incorporate recommended practices for the
assignment of risk.
Operational Infrastructure Maintenance
Risk ‒ Inadequate funding
and design reduce the life of
the Project.
The infrastructure works design incorporates features that
reduce maintenance requirements.
WASCO is implementing steps to improve its operational
efficiency and reduce operational costs. Financial
projections (Appendix 4.9 to 4.11) demonstrate that current
tariff levels are expected to generate sufficient revenues to
cover operating costs.
Design Criteria Risk ‒
Uncertainty with respect to
predicted climate change
impact on project design
criteria.
CVC-adaptation measures have been incorporated in the
engineering designs, such as added intake redundancy, and
infrastructure protection measures against floods and
landslides.
CDB’s long-term engagement in Saint Lucia’s water sector
and its emphasis on promoting improved maintenance and
design requirements for construction projects will help to
inculcate CVC-adaptation consideration for the water
network.
- 25 -
6. IMPLEMENTATION AND PROJECT MANAGEMENT
GENERAL
6.1 The Borrower is GOSL and the Executing Agency is WASCO.
THE BORROWER
6.2 For the purpose of financing general development in Saint Lucia, under Section 3(1) of the Loans
(Caribbean Development Bank) Act 1972 (the Act), GOSL, acting on behalf of Saint Lucia, is authorised
to borrow from CDB such sums as may be required by GOSL.
6.3 Any agreement between GOSL and CDB in respect of sums borrowed from CDB pursuant to the
power conferred by the Act shall be applied and appropriated to the purposes for which they were borrowed
as specified in the agreement, provided that where any part of such sums cannot be applied to the said
purpose such part may be applied to such other purpose as may be approved by the Minister responsible
for Finance (the Minister) and CDB. Any such agreement must be made in the name of Saint Lucia, and
may be signed on behalf of Saint Lucia by the Minister or any other person authorised in writing by him.
A copy of any such agreement shall be laid before Saint Lucia’s House of Assembly as soon as practicable
after it has been executed.
6.4 GOSL can issue bonds, promissory notes, or other instruments in such terms as may be necessary
for the purpose of giving effect to the terms of any agreement which may be entered into with CDB pursuant
to the powers conferred by section 3 (1) of the Act. Any such bonds, promissory notes or other instruments
may be signed on behalf of GOSL by the Minister or any other person authorised in writing by the Minister.
6.5 All sums borrowed by GOSL, on behalf of Saint Lucia, pursuant to Section 3 of the Act, and all
interests and other charges payable on such sums, are charged on and payable out of the
Consolidated Revenue Fund and assets of Saint Lucia. CDB has so far approved loans totalling USD360.62
mn to GOSL and other statutory authorities, on behalf of Saint Lucia. The loans have been made under
Section 3 of the Act and guaranteed by GOSL under Section 7 of the Act.
Macroeconomic Impact
6.6 On the whole, this project is expected to play a transformative role in the economy as it will remove
a significant barrier to investment in the south of the island. While there may be some adverse impacts
initially on the balance of payments, mainly through the importation of materials in the construction phase
and on debt since the Project could add a further 1.5 percentage points to the debt˗to˗GDP ratio, there are
significant gains to be realised. In the near term, infrastructure works are expected to create employment
opportunities and impact favourably on economic activity. Over the long term, the Project will play an
important role in unlocking the potential of Vieux Fort to further investment by the private sector. This
part of the island has been ear-marked for several tourism sector initiatives, and ensuring access to safe and
reliable potable water will be critical in helping to create the necessary enabling environment. There is
therefore, scope for further job creation over the long term and favourable balance of payments impact
through an increase in tourism-related activity. Changes in household patterns could also provide further
benefits as households have more disposable income due to less water being purchased and productivity
gains through improved attendance at school and work.
- 26 -
THE EXECUTING AGENCY
6.7 The Executing Agency shall be WASCO. WASCO is an incorporated company with limited
liability. It was incorporated on August 9, 1999, pursuant to Saint Lucia’s Companies Act, 2008, and for
the purposes of the said Act it is registered as Company No: 136 of 1999. The powers of the company are
exercised by its BOD. Further details of the legal status of WASCO are set out at Appendix 6.1.
PROJECT MANAGEMENT AND IMPLEMENTATION
Project Management
6.8 WASCO has been integrally involved in implementing all water infrastructure projects in
Saint Lucia over the last two decades, and will be the agency responsible for operating and maintaining the
project facilities. WASCO, with the support of engineering consultants, will be responsible for planning
and managing the water supply infrastructure related aspects of the Project. This will facilitate coordination
of the operations of the water system in Vieux Fort with the proposed project activities. The proposed
arrangement will benefit WASCO, as it will encourage knowledge transfers between the project
implementation professionals and WASCO operational professionals.
6.9 Whilst WASCO is an engineering-based organisation with construction management capacity,
additional project management resources will be provided to WASCO to implement the Project. These
additional project management resources will be provided through a PC (to be financed by CDB) and
administrative staff (to be financed by WASCO). The PC shall report to the Managing Director of
WASCO, and be primarily responsible for supervising the implementation of the various components of
the Project through the various consultants, and for project reporting and record keeping. The terms of
reference (TOR) for the PC are set out at Appendix 2.4.
6.10 The Vieux Fort Watershed Management TA will be managed by WRMA. It will be condition
precedent to disbursement on the Watershed Consultancy, that WRMA assign a Project Manager (PMWM)
from its own staff. The PMWM will facilitate the work of the Watershed Management Consultant, and
make available all relevant studies, reports and data relevant to the completion of the exercise. PMWM
will also act as liaison between the Consultant(s) and GOSL officials and stakeholders. PMWM will report
to the Head of WMRA. The Head of WRMA will be a member of PSC, as discussed in paragraph 6.13,
and will be responsible for reporting on the Watershed Management Consultancy at PSC meetings. The
proposed management structure is presented in Appendix 6.2.
6.11 Engineering Consultants will also be engaged to assist WASCO during project implementation. In
particular, engineering consultants would be required to review bidding documents and specifications for
the Works required by the Project, and to supervise and certify the installation of various network
components. It will be a condition precedent to disbursement in respect of Infrastructure Works, that
WASCO, in accordance with the procurement procedures applicable to the Loan, select and engage
consultants to undertake the Engineering Services required during the implementation of the Project.
The costs of these services will be financed by CDB. The draft TOR for the Engineering Consultant are
set out at Appendix 2.6.
- 27 -
Implementation Schedule
6.12 The Project is projected to be implemented over a period of 36 months commencing from Board
approval. Implementation of construction/installation works is estimated to take 24 months, commencing
by the third quarter of 2015. The proposed Project Implementation Schedule is presented in Appendix 6.3
and the Project Implementation Support Plan is set out at Appendix 6.4.
PARTICIPATION OF BENEFICIARIES AND STAKEHOLDERS
6.13 The preparation and appraisal of this project benefitted from a gender-inclusive consultative
process which helped to identify and prioritise the key gender activities to be undertaken and monitored
during implementation, as well as the potential risks and benefits of the intervention. Meetings were held
with representatives of various Government Ministries including, inter alia, Finance; Infrastructure; Gender
Relations; and Tourism; male and female community members who will be impacted by the Project;
NWSC; Department of Planning and National Development; Saint Lucia National Trust; Sustainable
Development Unit; Saint Lucia Hotel and Tourism Association; Environmental Health Department; Invest
Saint Lucia; WASCO, including the Customer Service Department located in Vieux Fort; and the
Department of Statistics. A public consultation was also held in Vieux Fort during project appraisal in
which a wide cross section of stakeholders participated, including parliamentary representatives. Overall,
the discussions provided opportunities for feedback as stakeholders’ opinions and concerns were expressed
and, as necessary, are being incorporated in the project design. On the basis of these discussions, it is
evident that there is widespread support for the success of the intervention to improve WASCO’s systems
to effectively and efficiently manage the water system in Vieux Fort. This principle of stakeholder
participation, while already central to the process of inclusiveness, will be strengthened both during the
implementation and post˗implementation stages of the Project.
6.14 As a condition precedent to first disbursement of the Loan, PSC will be established to promote
participation of, and information sharing among, major stakeholders. It is proposed that, for the duration of
the Project, PSC comprise representatives of the Ministry of Tourism, MOH, WRMA, Vieux Fort Chambers
of Commerce, Department of Planning and National Development, and Government Press and Public
Relations. It is proposed that PSC be chaired by the Permanent Secretary, Ministry of Sustainable
Development, Energy, Science and Technology, with PC as Secretary. The Committee will be required to
meet quarterly and to submit reports of the meetings to CDB. The duties and responsibilities of PSC are set
out at Appendix 6.5.
DISBURSEMENTS
6.15 Disbursement of the CDB Loan will be made in accordance with CDB’s Guidelines for the
Withdrawal of Loan Proceeds. It is expected that the first disbursement from the Loan will be made by
September 30, 2015. The Loan is expected to be fully disbursed by June 30, 2018. An estimated quarterly
disbursement schedule is presented in Appendix 6.6.
PROCUREMENT
6.16 Procurement of consultancy services shall be in accordance with CDB's Guidelines for the
Selection and Engagement of Consultants by Recipients of CDB Financing. Contracts for capital works
to be financed by the Loan, will be procured in accordance with CDB’s Guidelines for Procurement,
except that, to comply with the requirements of the Finance Contract, the following is required:
- 28 -
(a) A waiver of CDB’s Guidelines for Procurement in respect of procurement related to
the Infrastructure Works and CDB’s Guidelines for the Selection and Engagement of
Consultants by Recipients of CDB Financing in respect of procurement related to
the selection and engagement of Engineering Consultants under the Project, to extend
eligibility to countries eligible for procurement under EIB-funded projects which are
not CDB member countries. The estimated value of the waiver being requested is
USD14.7 mn.
(b) Bidders for Infrastructure Works and Engineering Consultants must submit the
“Covenant of Integrity” in the form attached at the Annex to the Procurement
Plan provided at Appendix 6.7.
(c) Procurement notices shall be published in the Official Journal of the European Union.
MONITORING AND REPORTING
6.17 The results of the Project will be measured in accordance with the indicators set out in
the Design and Monitoring Framework at Table 2.1. It is also proposed that a consultancy will be
undertaken to establish a framework to evaluate the gender impact of the Project. It will be a condition
of the Loan that PC shall furnish or cause to be furnished to CDB, the reports listed in Appendix 6.8 in
such form or forms as CDB may require, not later than the times specified therein for so doing.
PERFORMANCE EVALUATION RATING
6.18 The composite performance rating based on CDB’s Project Performance Evaluation
System (PPES) has been estimated at 6.2. This is a ‘highly satisfactory’ rating, which suggests that there
is a good probability that the Project will achieve its objectives. The details of PPES are presented in
Table 6.1.
- 29 -
TABLE 6.1: PROJECT PERFORMANCE EVALUATION SYSTEM RATING
Criteria
Scores
Justification
Strategic
Relevance 8.0 GOSL has prioritised improvement of the water sector as it is critical
in the support of planned development in Vieux Fort. The Project is
consistent with CDB’s Strategic Objective of promoting sustainable
economic growth of its BMCs, and its Corporate Priority of
strengthening and modernising social and economic infrastructure.
Poverty
Relevance
6.0 It is expected that the Project will contribute to poverty reduction
through support for economic growth and job creation in Vieux Fort.
In particular, during the construction phase of the Project, temporary
employment opportunities will be available for skilled and un-skilled
men, women and youth in Vieux Fort and neighbouring communities.
Efficacy 6.0 The primary objectives of the Project are expected to be fully met
through the provision of enhanced water supply facilities and improved
management of the watershed. The project components will improve
infrastructure deficiencies, institutional operational efficiency, and
water resource management.
Cost Efficiency 6.0 The long-term benefits of the Project to Saint Lucia will outweigh the
costs. Based on conservative estimates, the Project generates an ERR
of 19%.
Institutional
Development
Impact
6.0 The Project seeks to support important sector reform. TA is provided
to support: (a) improvements in WASCO’s operational efficiency; and
(b) developing a gender-sensitive strategic framework for improved
watershed management in the Vieux Fort River watershed.
Sustainability 6.0 All of the institutional development initiatives outlined above, will
serve to improve the sustainability of the Project and sector.
Composite Score 6.2 Highly Satisfactory.
7. TERMS AND CONDITIONS
7.1 The proposed financing for the Project is as follows:
(a) a loan to GOSL of an amount not exceeding the equivalent of nineteen million six hundred
and seventy-five thousand United States dollars (USD19,675,000) to assist GOSL in
financing the redevelopment of the Vieux Fort water supply system, including the
construction and/or fortification of intakes, pump stations, storage facilities, and the
provision of project management and engineering consultancy services (the Loan
Component); and
- 30 -
(b) a grant to GOSL of an amount not exceeding the equivalent of three hundred and thirty˗five
thousand United States dollars (USD335,000) to assist GOSL in financing the
Energy Audit Consultancy, Watershed Management Consultancy, and Evaluation of
Gender Sensitive Impact Consultancy (the Grant Component) (together, the Project).
7.2 It is recommended that CDB lend to GOSL an amount not exceeding the equivalent of nineteen
million six hundred and seventy-five thousand United States dollars (USD19,675,000) (the Loan)
consisting of:
(a) an amount from CDB’s SFR not exceeding the equivalent of six million United States
dollars (USD6,000,000) (the SFR Portion); and
(b) an amount from CDB’s OCR not exceeding the equivalent of thirteen million, six hundred
and seventy-five thousand United States dollars (USD13,675,000) (the OCR Portion)
comprising:
(i) an amount not exceeding the equivalent of one million six hundred and
seventy˗five thousand United States dollars (USD1,675,000) (the Equity and
Market Tranche); and
(ii) an amount not exceeding the equivalent of twelve million United States dollars
(USD12,000,000) allocated from resources provided by EIB to CDB pursuant to
the CALC (the EIB-CALC Tranche).
to assist GOSL in financing the Loan component of the Project on CDB’s standard terms and conditions
and on the following terms and conditions:
(1) Repayment: Repayment of the Loan shall be made as follows:
(a) in the case of the SFR Portion in eighty (80) equal or approximately equal and
consecutive quarterly instalments commencing five (5) years after the date of the
Loan Agreement; and
(b) in the case of the OCR Portion in forty eight (48) equal or approximately equal and
consecutive quarterly instalments commencing five (5) years after the date of the
Loan Agreement.
(2) Interest: Interest rate to be paid quarterly:
(a) at the rate of two decimal five percent (2.5%) p.a on the amount of the SFR Portion
withdrawn and outstanding from time to time;
(b) at the rate of three decimal nine five percent (3.95%) p.a (variable) on the
Equity and Market Tranche of the OCR Portion withdrawn and outstanding from
time to time; and
(c) at the rate of two decimal two three per cent (2.23%) p.a (variable) on the
EIB˗CALC Tranche of the OCR Portion withdrawn and outstanding from time to
time.
- 31 -
(3) Commitment Charge: A commitment charge at the rate of one percent (1%) p.a shall be payable on the amount of the OCR Portion unwithdrawn from time to time. Such
charge shall accrue from the sixtieth (60th) day after the date of the Loan Agreement
and shall be payable quarterly.
(4) Disbursement:
(a) The first disbursement of the Loan shall be made by September 30, 2015, and
the Loan shall be fully disbursed by June 30, 2018, or such later date as
CDB may specify in writing.
(b) Except as CDB may otherwise agree:
(i) the Loan shall be used exclusively to finance the components of the
Project allocated for the financing by CDB as shown in the Project
Cost, Phasing and Financing Plan for the Project at Appendix 3.1 up
to the respective limits specified therein; and
(ii) total disbursements shall not exceed in the aggregate 82% of the project
cost.
(c) Disbursement shall be made rateably from the OCR Portion and the SFR
Portion in accordance with the respective amounts thereof.
(d) The Loan shall not be used to meet any part of the cost of the Project which
consists of identifiable taxes and duties.
(e) The Loan shall not be used to finance any activity set out in Appendix 7.1.
(5) Procurement:
(a) Except as provided in sub-paragraph (b) below, procurement shall be in
accordance with the procedures set out and/or referred to in the Loan
Agreement between CDB and GOSL, or such other procedures as CDB may
from time to time specify in writing. The Procurement Plan approved by
CDB is set out in Appendix 6.7. Any revisions to the Procurement Plan shall
require CDB’s prior approval in writing.
(b) In respect of procurement relating to Infrastructure Works and for
engineering services, country eligibility shall be extended to countries eligible
for procurement under EIB-funded projects which are not CDB member
countries.
(c) Procurement notices shall be published in the Official Journal of the
European Union and bidders for Infrastructure Works and for engineering
services must submit the “Covenant of Integrity” in the form attached at the
Annex to Appendix 6.7.
- 32 -
(6) Conditions Precedent to First Disbursement of the Loan:
(a) GOSL shall provide evidence acceptable to CDB that it has issued a licence
or licences to WASCO authorising it to provide water and sewerage services.
(b) GOSL shall procure WASCO to submit to CDB in form and substance
acceptable to CDB audited financial statements on its operations for the
years ended December 31, 2011 to December 31, 2013.
(c) PC, referred to in sub-paragraph 8(a) (iii) below, shall have been engaged.
(d) PSC, with the composition referred to in sub-para 8 (f) below, shall have
been established.
(7) Condition Precedent to First Disbursement in relation to Infrastructure Works:
CDB shall not be obliged to disburse any amount in respect of the Infrastructure
Works until:
(a) the engineering consultants referred to in sub-paragraph 8 (a) (ii) below shall
have been engaged; and
(b) GOSL shall provide evidence satisfactory to CDB that lands earmarked for
the infrastructure works shall have been fully transferred to GOSL, free
of encumbrances, covenants, conditions and stipulations, or alternatively,
GOSL must have made arrangements acceptable to CDB for entry into
possession of such lands for the purposes of the Project.
(8) Other Conditions:
(a) WASCO shall:
(i) select and engage according to procurement procedures applicable to
the Loan:
(aa) competent and experienced contractors to carry out the
Infrastructure Works;
(bb) engineering consultants to carry out the services set out in
the TOR at Appendix 2.6; and
(cc) the PC to carry out the duties set out in the TOR at Appendix
2.4. The qualifications and experience of any person
subsequently appointed to the position of PC shall be
acceptable to CDB;
- 33 -
(ii) fill the positions of Internal Auditor and Design and Construction
Manager in WASCO by June 30, 2015, or such later date as may be
specified in writing by CDB. The qualifications and experience of
the Internal Auditor and Design Construction Manager shall be
acceptable to CDB;
(iii) implement a fully functional CIS acceptable to CDB by December
31, 2015, or such later date as may be specified in writing by CDB;
(iv) ensure that the positions of Managing Director, Finance
Controller, Senior Manager-Operations, Internal Auditor, and posts of
comparable ranks, shall be held by persons whose qualifications and
experiences are acceptable to CDB;
(v) carry out the Project at all times with due diligence and efficiency in
accordance with sound technical, environmental, financial and
managerial standards and practices;
(vi) institute and maintain organisational, administrative, accounting,
and auditing arrangements for the Project acceptable to CDB;
(vii) execute, implement and operate the Project in compliance with
all laws and regulations, particularly environmental laws, to which
the Project is subject;
(viii) except as CDB may otherwise agree, establish and, during project
implementation, maintain a PSC to promote participation of and
information sharing amongst stakeholders, with composition and
responsibilities as set out in paragraph 6.14 of, and Appendix 6.5 to,
this Report;
(ix) adequately maintain the infrastructure financed under the Project;
(x) undertake an annual condition assessment of the project
infrastructure commencing no later than six months after the
certificate of practical completion has been issued and submit to CDB
the report of that assessment within one month of its completion;
(xi) furnish CDB with all the reports listed in Appendix 6.8 in such form or
forms and substance as CDB may require, not later than the times
specified therein for doing so; and
(xii) except as CDB may otherwise agree, WASCO shall contribute towards
the Project an amount not exceeding the equivalent of four million
one hundred and ten thousand dollars ($4,110,000), which shall be
expended on the components of the Project allocated for financing by
WASCO as shown in the Financing Plan for the Project.
- 34 -
(b) GOSL shall:
(i) except as CDB may otherwise agree, execute the Project through
WASCO;
(ii) maintain in force all rights of way or use or easement and all permits
necessary for the execution and operation of the Project;
(iii) warrant and undertake that it has not committed, and no person to
its present knowledge has committed, any of the following acts,
and that GOSL will not commit, and no person with its consent or
prior knowledge will commit, any such act, that is to say:
(aa) the offering, giving, receiving or soliciting of any improper
advantage to influence the action of a person holding a
public office or function or a director or employee of a
public authority or public enterprise or a director or official of
a public international organisation in connection with any
procurement process or in the execution of any contract in
connection with those elements of the Project financed by the
Loan; or
(bb) any act which improperly influences or aims improperly to
influence the procurement process or the implementation of
the Project financed under the Loan to the detriment of GOSL,
including collusion between tenderers.
For the purposes of this sub-paragraph, the knowledge of any employee
of GOSL involved as managers of the Project shall be deemed the
knowledge of GOSL. GOSL undertakes to inform CDB if it
becomes aware of any fact or information suggestive of the
commission of any such act;
(iv) acknowledge that CDB or EIB may be obliged to divulge such
documents relating to GOSL and the Project to the Court of Auditors
of the European Union (Court of Auditors), and/or European Anti-
Fraud Office (OLAF) as are necessary for the performance of that
party’s tasks under European Union Law;
(v) permit or procure WASCO to permit persons designated by CDB or
EIB or, as the case may be, authorised representatives of the Court
of Auditors and/or the European Commission and/or OLAF, to
visit the premises of WASCO and the sites, installations and works
comprising the Project, and to conduct such checks as they may wish
and GOSL shall provide or cause WASCO to provide them, or
ensure that they are so provided, with all necessary assistance for this
purpose;
(vi) retain, in a single location, for inspection during six (6) years from the
date of the Loan Agreement, the full terms of the Loan Agreement,
as well as all material documents pertaining to the procurement
process and to the execution of the contract and shall procure that
CDB and EIB may inspect the contractual documents that the
contractor is obliged to retain under its supply contract;
- 35 -
(vii) except as CDB may otherwise agree, furnish or cause to be
furnished to CDB within three (3) months of project completion, a
completion report on the implementation and on the early
operation stage of the Project, including its climate action
aspects, in content and in form specified in Appendix 6.8, or
otherwise as CDB may require;
(viii) unless CDB has given its prior consent in writing, retain title to and
possession of all or substantially all of the assets comprising the
Project or, as appropriate, replace and renew such assets and
maintain the Project in substantially continuous operation in
accordance with its original purpose, provided that CDB may
withhold its consent only where the proposed action would
prejudice CDB’s interests as lender to GOSL or would render the
Project ineligible for financing by CDB under the CALC; and
(ix) except as CDB may otherwise agree, contribute towards the Project
an amount not exceeding the equivalent of five million four
hundred thousand dollars ($5,400,000), which shall be expended on
the components of the Project allocated for financing by GOSL as
shown in the Financing Plan for the Project.
(c) Section 3.11 of the General Provisions Applicable to Loan Agreements with an
Executing Agency, which requires the Executing Agency to repay the Loan on
behalf of the Borrower, shall not apply to this Loan.
7.03 It is also recommended that CDB make a grant to GOSL of an amount not exceeding the equivalent
of three hundred and thirty-five thousand United States dollars (USD335,000) (the Grant) from CDB’s SFR
to assist WASCO and GOSL in financing the Grant Component, on CDB’s standard terms and conditions,
and on the terms and conditions set out below:
(1) Disbursement:
(a) Except as CDB may otherwise agree, and subject to sub-paragraph (c) below,
disbursement of the Grant in respect of the Energy Audit Consultancy, Evaluation
of Gender Sensitive Impact Consultancy, and Watershed Management
Consultancy shall be made as follows:
(i) an amount not exceeding the equivalent of fifty thousand United States
dollars (USD50,000) (the EAC Advance) shall be paid to WASCO as an
advance on account of expenditures in respect of the Energy Audit
Consultancy after receipt by CDB of:
(aa) a request in writing from WASCO for such funds;
(bb) a copy of the signed contract between WASCO and the
Energy Audit Consultant; and
(cc) evidence acceptable to CDB that the condition precedent to first
disbursement of the Grant set out in sub-paragraph (3) below have
been satisfied;
- 36 -
(ii) an amount not exceeding the equivalent of fifty thousand United States
dollars (USD50,000) (the EGS Advance) shall be paid to WASCO as an
advance on account of expenditures in respect of the Evaluation of Gender
Sensitive Impact Consultancy after receipt by CDB of:
(aa) a request in writing from WASCO for such funds;
(bb) a copy of the signed contract between WASCO and the
Evaluation of Gender Sensitive Impact Consultant; and
(cc) evidence acceptable to CDB that the condition precedent to first
disbursement of the Grant set out in sub-paragraph (3) below have
been satisfied;
(iii) an amount not exceeding the equivalent of fifty thousand United States
dollars (USD50,000) (the WMC Advance) shall be paid to GOSL as an
advance on account of expenditures in respect of the
Watershed Management Consultancy after receipt by CDB of:
(aa) a request in writing from GOSL for such funds;
(bb) a copy of the signed contract between GOSL and the
Watershed Management Consultant; and
(cc) evidence acceptable to CDB that the condition precedent to first
disbursement of the Grant set out in sub-paragraph (3) below have
been satisfied;
(iv) the balance of the Grant shall be paid to:
(aa) GOSL periodically after receipt by CDB of an account and
documentation satisfactory to CDB in support of expenditures
incurred by GOSL in respect of the Watershed Management
Consultancy; and
(bb) WASCO periodically after receipt by CDB of an account and
documentation satisfactory to CDB in support of expenditures
incurred by WASCO in respect of the Energy Audit Consultancy
and Evaluation of Gender Sensitive Impact Consultancy,
respectively.
(b) CDB shall not be under any obligation to make:
(i) the first such payment under sub-paragraph 1 (a) (iv) above:
(aa) in relation to the Energy Audit Consultancy until CDB shall have
received an account and documentation, satisfactory to CDB, in
support of expenditures incurred by WASCO with respect to the
EAC Advance above;
- 37 -
(bb) in relation to the Watershed Management Consultancy until CDB
shall have received an account and documentation, satisfactory to
CDB, in support of expenditures incurred by GOSL with respect
to the WMC Advance above; and
(cc) in relation to the Evaluation of Gender Sensitive Impact
Consultancy until CDB shall have received an account and
documentation, satisfactory to CDB, in support of expenditures
incurred by WASCO with respect to the EGS Advance above;
(ii) any payment under sub-paragraph 1 (b) (i) above until CDB shall have
received the requisite number of copies of the reports or other deliverables,
in form and substance acceptable to CDB, to be furnished for the time
being by the consultants to GOSL and WASCO, respectively, and CDB in
accordance with the respective TORs at Appendices 2.2, 2.3, and 2.5; and
(iii) payments exceeding the equivalent of three hundred and one thousand five
hundred United States dollars (USD301,500), representing ninety percent
(90%) of the amount of the Grant until CDB shall have received:
(aa) the requisite number of copies of the final reports or other
deliverables, in form and substance acceptable to CDB to be
furnished by the consultants in accordance with the TORs
mentioned in sub-paragraph (ii) above; and
(bb) certified statements of the expenditures incurred by GOSL and
WASCO in respect of and in connection with the Grant.
(c) The first disbursement of the Grant shall be made by December 31, 2015, and the
Grant shall be fully disbursed by March 30, 2017, or such later dates as CDB may
specify in writing.
(2) Procurement:
(a) Procurement of consultancy services shall be in accordance with the procedures
set out and/or referred to in the Grant Agreement or such other procedures as CDB
may from time to time specify in writing.
(b) The Procurement Plan is set out in Appendix 6.7. Any revision to this Plan shall
require CDB’s prior approval in writing.
(3) Condition Precedent to First Disbursement of the Grant:
The conditions precedent to first disbursement of the Loan shall have been
satisfied.
- 38 -
(4) Condition Precedent to First Disbursement in respect of the Watershed Management
Consultancy:
CDB will not be under any obligation to disburse any amount in respect of the
Watershed Management Consultancy until PMWM referred to in sub-paragraph 5(b) (ii)
below shall have been appointed.
(5) Other Conditions:
(a) Except as CDB may otherwise agree, GOSL shall carry out the Grant Component
relating to the Energy Audit Consultancy and the Evaluation of Gender Sensitive
Impact Consultancy through WASCO.
(b) GOSL shall:
(i) make the proceeds of the Grant relating to the Energy Audit Consultancy
and Evaluation of Gender Sensitive Impact Consultancy available to
WASCO for financing the respective consultancies;
(ii) cause WRMA, for the duration of the Project and exclusively for the
Project, to assign a member of staff with qualifications and experience
acceptable to CDB as PMWM, who will be responsible for the
administration and management of the Watershed Management
Consultancy, including the duties and responsibilities set out in
Appendix 2.3. The qualifications and experience of any person
subsequently appointed to the position of PMWM shall be acceptable to
CDB;
(iii) in accordance with the procurement procedures applicable to the Grant,
select and engage competent and experienced consultants to carry out the
services set out in the TOR at Appendix 2.3; and
(iv) within a time frame acceptable to CDB implement such recommendations
arising from the Watershed Management Consultancy, as may be
acceptable to CDB.
(c) WASCO shall:
(i) in accordance with the procurement procedures applicable to the Grant,
select and engage competent and experienced consultants to carry out the
services set out in the TORs at Appendices 2.2 and 2.5; and
(ii) within a time frame acceptable to CDB implement such recommendations
arising from the Energy Audit Consultancy and the Evaluation of Gender
Sensitive Impact Consultancy, as may be acceptable to CDB.
- 39 -
(d) Except as CDB may otherwise agree GOSL shall, with respect to the Grant
Component, meet or cause to be met:
(i) any amount by which the cost of the Grant Component exceeds the amount
set out in the budgets with respect to the Energy Audit Consultancy, the
Watershed Management Consultancy, and the Evaluation of Gender
Sensitive Impact Consultancy; and
(ii) the cost of any other items needed for the purpose of, or in connection
with, the Grant Component; and
shall provide or cause to be provided, all other inputs that may be required for the
punctual and efficient carrying out of the Grant Component not being financed by
CDB; and
(e) CDB shall be entitled to suspend, cancel or require a refund of the Grant, or any
part thereof, if the Loan, or any part thereof is suspended, cancelled, or called in,
except that GOSL shall not be required to refund any amount of the Grant already
expended in connection with the Grant Component and not recoverable by GOSL.
APPENDIX 1.1
MACROECONOMIC AND MACROSOCIAL CONTEXT
MACROECONOMIC CONTEXT
Overview
1. Macroeconomic fundamentals in Saint Lucia remain weak as the lagged effects of the global
recession, exacerbated by the impact of natural
hazards constrained growth, contributed to high and rising unemployment, and adversely impacted fiscal
performance and debt dynamics (see Chart 1).
Following a 2.3% contraction in 2013, indications are
that Saint Lucia is poised for another year of decline albeit at a slower rate than in 2013. For the first half
of the year, activity is estimated to have declined in
several sectors, namely agriculture, construction, distribution and manufacturing, which offset the
increase in tourism. Lacklustre foreign direct
investment (FDI); fiscal constraints which affected
the pace of capital works; weak consumer and business sentiment; and high and rising unemployment, were the likely factors that constrained output in the first half of the year. Consistent with depressed domestic
demand and a general easing in commodity prices, the moving average rate of inflation at the end of June
was estimated at 1.4%, compared to 4% at June a year earlier. Commercial banking operations came under pressure in 2014, as evidenced by sluggish credit amid weak economic conditions and depressed lending
opportunities. The prevailing economic conditions were also reflected in the external sector most notably
in the reduced demand for imports, although the rise in visitors and minimal discounting is likely to have resulted in an increase in tourism receipts.
Sectoral Analysis
Real Sector
2. Tourism improved by a further 6.6% in the first 8 months of 2014, after growing 3% for the
corresponding period in 2013. Increased airlift, particularly out of the United States of America, along with
some improvement in source market economies, were mainly responsible for this development. Cruise
passenger arrivals were also on the increase (up 4%) as the country benefitted from an increase in cruise ship calls. The agricultural sector turned in a mixed performance, as banana production reeled from the
effects of the Christmas Eve 2013 trough, declining by 20%, while non-banana agriculture benefitted from
investment initiatives. Construction output is estimated to have declined thus far for the year, as two main indicators, namely the imports of construction materials and growth in credit to construction, fell in the first
six months of the year. This is likely to have been the result of a fall-off in public and commercial building
activity. In the public sector, the completion of several bridges and the winding down of work on the St. Judes Hospital are likely to have contributed to the outturn, while work continued on the Ministry of
Finance Building, and road rehabilitation and construction. Commercial private sector activity is likely to
have deteriorated, consistent with weak FDI and a depressed business environment, while residential
construction may have benefitted from the stimulus programme. Similarly, output in the distributive sector deteriorated, likely as a result of generally weak business and consumer sentiment and a drop in disposable
income in the wake of rising unemployment. At the end of March 2014, the unemployment rate had inched
up to 23.8%, from 22.6% a year earlier.
APPENDIX 1.1 Page 2 of 8
Commercial Banking
3. Activity in the commercial banking sector remained depressed in the first seven months of the year amid declines in credit to the private sector. While credit to government and private individuals grew by
12.6% and 4.3%, respectively, lending to businesses declined by 4.9% following growth of 2.2% in the
previous year. This fall-off in credit to firms is likely reflective of lingering weak domestic demand and challenges in identifying viable lending opportunities. The rise in personal lending was attributed to a
combination of government’s construction stimulus package, as well as efforts by commercial banks to
restructure their portfolio in favour of more mortgage and retail-type activities. The rise in credit to
government reflected a notable increase in government activity in the commercial banking system, as there was also a significant drawdown in government deposits. Several factors could be responsible for
government’s increased commercial activity, namely, the need for resources, the ready availability of the
commercial system, and the use of GOSL deposits as part of the stimulus package. In addition to GOSL, business firms also drew down on their deposits, while holders of foreign currency deposits increased
holdings by 61% to give rise to a near 3% in total commercial bank deposits. These movements, however,
had a negligible impact on liquidity (easing by 0.04 of a percentage point to 114%).
Public Finances
4. Central government operations improved in fiscal year (FY) 2013/14 ending March, largely on account of an increase in revenue and some expenditure constraint. The primary fiscal deficit improved
from 5.7% to 2% of GDP, while the overall deficit narrowed from 9.2% to 5.8% of GDP. Total revenues
increased by 4.1%, reflecting administrative efforts to collect arrears, the effect of a full year’s collection of Value-Added Tax (VAT) and higher Pay-As-You-Earn from the wage settlement (4% for the triennium
ending 2012, and back pay which was awarded in 2013). Additionally, payments of property taxes based
on market valuations and the expiration of waivers under the Cricket World Cup incentives contributed to
an increase in property tax collections. Interestingly, revenue forgone under the construction stimulus package was estimated at $29.4 mn. On the expenditure side, total spending declined by 6.9% largely on
the basis of a 25% reduction in capital due to the winding down of several projects. Current expenditure
slowed to 0.4% owing to a fall-off in transfers and subsidies on flour, rice and sugar, and lower goods and services, while spending on other categories increased.
5. In May, GOSL presented its budget statement underpinned by a 5-pronged growth agenda:
(a) continuing investment in infrastructure;
(b) improving public and private sector competitiveness;
(c) fostering social inclusion;
(d) promoting fiscal and debt sustainability; and
(e) expanding employment opportunities.
6. The key fiscal measures announced in the budget were:
(a) the zero rating of VAT on prescription medication resulting in a revenue loss of $2.8 mn;
(b) applying VAT on the previously exempted goods of fish, butter, margarine, beans and salt;
APPENDIX 1.1 Page 3 of 8
(c) removing the subsidy of brown sugar so that the price-per-pound will increase from $0.90
to $1.00;
(d) raising the intake on excise taxes to $2.50 per gallon from the $1.71 collected on gasoline,
and $1.94 collected on diesel;
(e) increasing the rate on fuel purchased by St. Lucia Electricity Services Limited from
20 cents to 50 cents per imperial gallon;
(f) reducing the corporate tax rate for large businesses from 30% to 28% in the current fiscal
year, and to 25% in the following year;
(g) implementing a small scale business enterprise deduction of $10,000 for three years
starting from FY 2015. This should result in tax savings for businesses of approximately
$2.2 mn;
(h) increasing the threshold on the deduction for personal income tax from $18,000 to $21,000
(this will eliminate 2,100 persons from the tax roll) effective January 1, 2015; and
(i) reducing the tax bands effective January 1, 2015, from four to three as follows in Table 1:
TABLE 1: TAX BAND RATES
Chargeable Income (after allowances) Current Rate (%) Proposed Rate (%)
0 to 10,000 10,001 to 20,000
10 15
10
20,000 to 30,000 20 15 >30,000 30 28
7. Notably the effects of all of the measures were not quantified, so the net impact on the fiscal
position has not been ascertained. Additionally, given the fiscal situation and the relatively high ratio of
wages to current revenue (44%), GOSL was in dialogue with the unions about a reduction in salaries.
Subsequently, there was an agreement to freeze wages over the period April 2013 to March 2016. While this should provide some fiscal space, there is a concern that the measures announced in the budget may
not be far reaching enough to bring about meaningful correction in the government’s finances. For example,
the effects of the wage freeze could be offset to some extent by the raising of the income tax threshold and the reduction of income tax rates. While GOSL will need to systematically review its operations and seek
to reduce inefficiencies in all categories of revenue and expenditures, reviewing the list of VAT exemptions
and reducing the level of subsidies being provided, will be critical. Enhanced public sector investment programme planning and debt management will also be important, given the need to maintain some level
of capital spending on projects with a high development impact and, at the same time, minimise the debt
burden.
External Sector
8. Indications are that there may have been some improvement in the current account given movement
in key variables. Merchandise exports are likely to have declined on account of the contraction in banana
production, which saw export earnings decline by 16%, however, this is likely to have been offset by improved tourism earnings. Actual information for the first quarter indicates that earnings were up 7.8%.
APPENDIX 1.1 Page 4 of 8
On the demand side, growth in imports has been minimal, rising by around 1% in the first half of the year,
and this is therefore not likely to have negated the projected net increase in exports.
Prospects
9. Performance this year is expected to remain subdued with real GDP declining by around 1%.
Thereafter, over the medium term, a pick-up of around 2% is expected (see Table 2). While Saint Lucia’s growth prospects will depend on continued growth in major trading partners and positive spin-off for
tourism, in the near term much of the outlook will depend on the construction sector and the pace of ongoing
private and public sector works. The agriculture sector should continue to benefit from investment initiatives, while banana production should recover from the Christmas Eve trough and reap gains from
efforts to improve productivity and address the effects of Black Sigatoka.
10. There are, however, major downside risks to this forecast, chief of which being a slowdown in the growth rate of trading partners and reluctance to travel given concerns about the Ebola disease. Other risk
factors are a greater than expected increase in commodity prices, heightened geo-political tensions, and the
onset of a natural hazard. Domestic risk factors include a resurgence of Black Sigatoka, an escalation in crime, and increasing fiscal constraints. Returning the finances to a more sustainable path is essential for
both short and long-term stability. GOSL will need to give further consideration to: (a) streamlining the
list of tax exemptions; (b) reducing the use of untargeted commodity price subsidies; and (c) prioritising
capital spending with a view to, inter alia, scaling back some of the short-term employment programmes and focussing on those projects/programmes with high development impact.
TABLE 2: KEY MACROECONOMIC INDICATORS
Indicators 2011 2012 2013 2014 2015 2016 2017
% Change
Real GDP
Consumer Prices
1.3
2.8
(1.3)
4.2
(2.3)
1.5
(1.0)
2.5
1.9
2.8
1.8
2.8
2.0
3.0
% of Nominal GDP
26.0
24.7
25.6
25.5
23.7
23.0
23.0
(FY basis)
Revenue and Grants
Expenditure 32.5 33.9 31.4 30.8 30.4 30.7 30.8
Primary balance (3.5) (5.7) (2.0) (1.7) (2.8) (3.2) (3.1)
Overall balance (6.5) (9.2) (5.8) (5.3) (6.7) (7.7) (7.8)
Public Sector Debt 65.5 72.1 73.6 76.8 78.5 84.3 89.9
% of Labour Force
Unemployment Rate
21.2
21.4
23.3
N/A
N/A
N/A
N/A
APPENDIX 1.1 Page 5 of 8
MACROSOCIAL CONTEXT
Demographic Characteristics
11. Saint Lucia’s 2010 Census1 puts the total resident population at 166,526, an increase of 9.5% from
2001. This corresponds to a growth rate of 0.5% p.a., well below that of the other English-speaking
countries in the Region, which have an annual average increase of 1%. The population is almost evenly
divided between males and females and is quite youthful, with about 50% under the age of 30.
The population in Vieux Fort, in particular, has been steadily increasing since the 1991 census. According
to the 2001 census, the population stood at 14,754. The 2010 census recorded an increase in population of 10.4% to 16,284. Table 3 below provides details on the demographic characteristics of the project areas.
TABLE 3: DEMOGRAPHIC CHARACTERISTICS OF VIEUX FORT
Vieux Fort:
16,284 (increase by 10.4% from 14,754 in 2001 census) Total population
Males 8,166
Females 8,118
Households 5,740
Buildings 6,872
Business places 1,175
Population density 964 (increase from 873 in 2001 census)
Percentage of households with water tanks 20.8%
Toilet Facilities:
4.9% Linked to sewer
Septic tank 62%
Pit latrine 25%
Other toilet facility 0.1%
No toilet facility 7.1%
Source of Water Supply:
0.1% Private piped into dwelling
Private catchment not piped 0.6%
Public piped into dwelling 79%
Public piped into yard 10.8%
Public standpipe 5%
Other 4.5% Source: Saint Lucia Census Report 2010 cited in Social Impact Assessment, Vieux Fort Water Supply Final Redevelopment Plan
(SIA, 2014: 162).
1 STL 2010 Population and Housing Census Preliminary Report (Updated April 2011). Central Statistics Office, Chreiki Building,
Micoud Street, Castries. (www.stats.gov.lc).
APPENDIX 1.1 Page 6 of 8
Poverty and Human Development
12. In Saint Lucia, good social indicators (including low levels of maternal and infant mortality,
universal primary education, low fertility, and increasing life expectancy) exist alongside high and increasing levels of poverty: 25 % in 1995; 29 % in 2005/06; and a likely increase since 2008, as a result
of the impacts of the global recession and its lingering effects. In most countries around the world, children
bear the brunt of poverty (CGA, 2011: 21). In Saint Lucia, over 50% of the poor are under the age of 20 and the incidence of poverty is higher among children than adults. The incidence of poverty among
female˗headed households (21.2%) is about the same as among male-headed households (22%). According
to 2010 census data, 41% of households are headed by men and 27% by women2. In country, poor living conditions (including lack of water and sanitation) require additional labour on the part of parents and
caregivers to feed and care for families. These living conditions have significant gender implications for
time use in households. The CGA highlighted that men and children who do not have basic amenities spend significant amounts of time on household work and are less able to work in paid employment and contribute
to economic growth in the country (Ibid, 2011:21).
Water and Sanitation
13. In 2010, 23% of households had pit latrines and 6% have no toilet facilities3. Just over 4% of
households (approximately 2,592 households) had access to water from a public standpipe. While some
of these households may have rainwater storage, the collection of water or the use of river water4 can be
extremely time consuming, especially for women who are responsible for household activities requiring water for cooking, cleaning, and laundry. At the time of the census interview, only 20.8% of the Vieux Fort
households and 18% of the Laborie households had tanks at their homes. This means that a substantive percentage of the households in the study area have limited backup storage when there are water outages
or prolonged periods of interrupted service. The majority, 79% in Vieux Fort and 77.4% in neighbouring Laborie, have water piped into their dwellings. A further 10.8% and 12.6% have water piped into their
yards in Vieux Fort and Laborie, respectively. Almost 5% in each location use other means – which could include rainwater or the rivers. TAP ‒ Saint Lucia 2005/06 Report demonstrated a correlation between
poverty and access to pipe borne water. It stated that: “... pipe-borne water from public sources was the most frequently cited main source of water supply in spite of household socioeconomic status.
Nonetheless, it is worth noting that the proportions of households that relied principally on a public supply of water in a yard or from a standpipe increased with declining socioeconomic status” (CDB, 2007: 84).
14. According to the 2010 Census Report, septic tanks account for two thirds of the toilet facilities in Vieux Fort. However, there are still 25% of households in Vieux Fort which rely on pit latrines, and there
are 7.1% of households that have no toilet facility. This would correlate with the fact that there are still
households that do not have access to a piped-in water supply, as well as reports about the level of informal settlements and the challenges faced by these households in project areas. The members of these
households are therefore likely to be using alternative means, which would include rivers. It is noteworthy
that TAP Report demonstrated a linkage between poverty in Saint Lucia and access to toilet facilities with water closets. The Report stated that: “the proportion of households with water closets decreased with
declining socioeconomic status so that while 93.0 percent of all households in the wealthiest quintile used
toilet facilities with water closets, the corresponding proportion for the poorest quintile was 31.0 percent”
(CDB, 2007: 83). TAP Report also stated that in communities where residents rely on rivers for their water
2 According to the Statistics Department, household head is determined by the census respondents. In the experience of the Statistics Department, generally the owner of the house (male or female) is considered the head; in the case
of joint ownership they found that the man is usually marked down as household head. 3 Saint Lucia Population and Housing Census 2010. Table 21. 4 Women were observed to be washing laundry in the river during the mission.
APPENDIX 1.1 Page 7 of 8
supply, they were concerned about stagnant water and pollution of the river (Ibid: 86). The Report also
confirmed that “with respect to the amount of time consumed in gathering water, relatively greater numbers
of households from the poorest quintile relied upon such means as a public standpipe, a public well, tank or truck, or a private catchment area, which involved more time in gathering water than compared to
households in the wealthier quintile groups (CDB, 2007:84).
Water Availability and Supply
15. Results from the survey administered as part of SIA showed that 72% of households had been affected by the water supply system. The main problems they experienced were water outages (79%) and
cloudy water (68.6%). A bad taste was an issue for 22.5% of respondents and another 12.5% stated that
the water had an odour (SIA, 2014:171). Other problems related to the water supply included, inter alia,
dirty water, muddy water, too much chlorine, and poor water quality. Figure 1 below shows the ways in which the water supply system has directly impacted households – the main effect being that persons must
pay for water (other than distribution by WASCO). Other challenges faced include:
(a) having to stay up late at night to get water;
(b) problems with flushing toilets;
(c) being forced to buy bottled water;
(d) not being notified of outages; and
(e) the inconvenience of doing chores.
FIGURE 1: IMPACTS OF THE WATER SUPPLY SYSTEMS
(%)
Source: St. Lucia Social Impact Assessment, Vieux Fort Water Supply Final Redevelopment Plan (SIA, 2014:172).
16. In terms of the frequency with which households are affected by the water supply in project areas, 41.7% said it was every week and 30.6% stated it was at least once per month (see TABLE ). Most persons,
72.9%, suggested that they were more affected at specific times of the year. Of those who specified a
timeframe, 38% said that it was worse during the rainy/hurricane season; while the dry season was
70 62.5 n=198
60
50
40
30 27.8
25.7 20.8
20
10
0
Makes me late for Makes the children work late for school
I have to pay for water
School has to close
APPENDIX 1.1 Page 8 of 8
problematic for 17.7%. Information received highlighted challenges experienced when the river was dirty,
thus confirming that the lack of adequate infrastructure to ensure supply and quality is a critical issue that
has to be addressed in order to improve reliability for all users.
TABLE 4: FREQUENCY OF BEING AFFECTED BY WATER SUPPLY
(%)
Frequency
Everyday Every week Once per month >Once per month >3 times per year
18.1 41.7 30.6 6.3 3.5
N=198 Source: Saint Lucia Social Impact Assessment, Vieux Fort Water Supply Final Redevelopment Plan
(SIA, 2014:26).
17. Households dealt with the water challenges in a number of ways. The majority, 59.7% and 56.9%,
indicated that they collect/store rainwater and WASCO water, respectively. Containers used to collect/store
water included drums, buckets, plastic bottles and containers, and barrels and bins. Going to the river was
a course of action for 13.9% of households; and of the 7% that installed a water purification system, 4.9% had it on their kitchen taps and 2.1% had it on their bathroom taps. The fact that 45% use bottled water for
cooking and drinking indicates that this is a significant household expense within these communities. It was
also noticeable that 27% have installed rainwater harvesting systems, since the use of alternatives is seen as critical by the stakeholders who were interviewed. Other methods of sourcing water included using
springs and hydrants. See TABLE for the full list of methods.
TABLE 5: METHODS OF DEALING WITH WATER CHALLENGES
Methods Percentage (%)
Collect/store rainwater in other containers 59.7
Collect/store WASCO water in other containers 56.9
Use bottled water for drinking and cooking 45.1
Collect and store rainwater in tank 41.0
Collect/store WASCO water in a tank 41.0
Install rainwater harvesting system 27.1
Go to the river 13.9
Pay someone to transport water to home 7.6
Install a water purification system on the tap 7.0
Install a water purification system at the curb side 1.4
Install a water purification system at the curb side ‒ WASCO 0.7
N=198 – respondents were permitted multiple answers. Source: Saint Lucia Social Impact Assessment, Vieux Fort Water Supply Final Redevelopment Plan
(SIA, 2014:27).
18. The respondents purified rainwater in a diversity of ways. Thirty-five of the respondents boiled
their rainwater, seven respondents used chlorine/bleach as a means of purification, and others resorted to
filtering. Regarding the activities for which persons used the river, 25.3% and 24.7% informed that it was
used for washing clothes and bathing, respectively. A significant majority of persons (99.9%) interviewed, who use river water for cooking or drinking, stated that they purified it first using methods such as boiling
and powder chemicals. It is within the context as highlighted above, that the intervention will be designed
to address the challenges identified and to improve the water supply to diverse stakeholders in Vieux Fort.
APPENDIX 2.1
DETAILS OF PROJECT
1. INFRASTRUCTURE WORKS
(a) New Intake at Elevation 33.0 m in the Vieux Fort River and WTP at Beausejour: the design flow of 250 l/s includes the construction of the intake weir, intake piping, and treatment
plant for 2,033 treatment flows. In addition to the new construction, repair and fortification
of the existing Beausejour intake and pump station, located in close proximity to the existing and proposed treatment plant, is included as a back-up to the new intake location.
The existing intake at Beausejour is considered a backup due to the ability to access the
intake quickly after a significant rainfall event, adding redundancy into the system.
Estimated Base Cost (USD)
(b) 15 km of HDPE transmission mains from Beausejour Pump Station to: (i) the Beane Field
Storage Tank; (ii) Augier Storage Tanks; and (iii) the La Tourney Storage Tank: immediate upgrade of the existing Beane Field transmission main as it is required as a
direct function of the water system in conjunction with the new treatment plant at
Beausejour.
Estimated Base Cost (USD)
(c) 4,000 m3 of additional storage: new glass-fused steel water storage tanks at three locations:
(i) existing Grace storage tank replacement; (ii) new storage at Laborie; and (iii) new storage at La Tourney.
Estimated Base Cost ( USD)
2. WASCO CAPACITY BUILDING
(a) Energy Audit: TA to conduct an assessment of WASCO’s energy usage and the preparation
of an energy efficiency improvement plan.
Estimated Base Cost (USD)
(b) Water Audit: TA to conduct a validated water audit of the Vieux Fort water supply system,
utilising the American Water and Wastewater Association methodology, and the preparation of a Vieux Fort water supply system NRW reduction plan. This TA will be
included in TOR of the Engineering Consultants.
Estimated Base Cost (USD)
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 2.1 Page 2 of 2
3. PREPARATION OF A WATERSHED MANAGEMENT PLANNING AND MONITORING
FRAMEWORK FOR VIEUX FORT RIVER
TA to GOSL in the preparation of a collaborative watershed management plan for the purpose of
declaring the appropriate sections water control areas, and establishing sustainable hydrological and
pollutant load monitoring regimes, including opportunities for community involvement and watershed education. The expected outcome is evidenced-based decision making by WRMA and policymakers, users,
and residents, on managing land and water resources within the Vieux Fort watershed. Provisions are also
made for the purchase of hydrometric equipment.
Estimated Base Cost (USD)
4. VIEUX FORT WATER SUPPLY NRW REDUCTION PROGRAMME
The details of this component will be finalised based on the findings of the Water Audit TA.
The works envisaged include: (i) phased replacement of aged-pipe infrastructure; (ii) phased replacement
of water meters; and (iii) training of staff on leak detection and NRW management.
Estimated Base Cost (USD)
5. PROJECT MANAGEMENT AND MONITORING
(a) PC: Estimated Base Cost (USD)
(b) GOSL and WASCO counterpart staff and facilities:
Estimated Base Cost (USD)
(c) Gender Impact Evaluation Consultant:
Estimated Base Cost (USD)
6. ENGINEERING CONSULTANTS
Construction supervision services, quality control, and assisting GOSL in procurement of main
infrastructure works contractor.
Estimated Base Cost(USD)
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 2.2
DRAFT TERMS OF REFERENCE
CONDUCT OF ENERGY EFFICIENCY AUDIT OF
THE WATER AND SEWERAGE COMPANY LTD. FACILITIES
1. BACKGROUND
1.1 The Government of Saint Lucia has applied for financing from the Caribbean Development Bank (CDB) towards the cost of the provision of technical assistance to assist the Water and Sewerage Company
Ltd. (WASCO) in reducing its energy cost.
1.2 The cost of energy represents a significant proportion of the operating costs of WASCO.
The electricity cost currently accounts for approximately 20-25% of WASCO’s total operational budget
(second only to salaries and wages) and, if not addressed urgently, will continue to impact negatively on its sustainability. The management of WASCO has therefore identified reduction in energy costs as a priority.
There is a need for an energy audit of its operations and an energy efficiency improvement plan to be
developed.
2. OBJECTIVE
2.1 The objective of the consultancy is to assist WASCO to identify feasible energy cost-saving
measures in key areas of its operations and to develop an implementation plan.
Specific Objectives:
(a) identify the full range of energy efficiency measures (EEMs) and renewable energy options (REOs) which may be relevant for implementation at WASCO facilities1;
(b) establish technical, economic and financial feasibility of implementing renewable energy
and EE technology options identified; and
(c) develop a plan for implementation of identified feasible EE and renewable energy
technology options giving due regards to the level of investments required and the level of
difficulty for implementation, as well as the time horizons ‒ short, medium and long term.
3. SCOPE OF WORKS
3.1 A Comprehensive Level (Investment Grade) Energy Audit be conducted on WASCO’s facilities ‒
pumping systems, including pumping stations, auxiliary equipment, and the office and operations and
maintenance buildings. Emphasis will therefore be placed on pumping systems operation and maintenance
(O&M), including optimisation of pumping systems, for potable and wastewater systems (primary and secondary), as well as buildings. Also, the focus of the Energy Audit will be on energy efficiency
opportunities (EEOs) to include, improvement in O&M practices, equipment replacement, and upgrade.
However, it is recognised that there may be opportunities for integration of renewable energy, especially in the form of solar photovoltaic to displace the cost of electricity supplied from the grid, therefore the Audit
will also seek to identify feasible renewable energy options (REOs) in this regard.
3.2 The Audit will not cover energy use for WASCO’s vehicle fleet. Also, the Audit will not include
leak detection or reduction measures for the water distribution-network, nor demand-side efficiency
1 Facilities include pumping stations (potable water and waste water systems), treatment plants, and buildings (office, O&M, including plant buildings).
APPENDIX 2.2 Page 2 of 8
measures (consumers’ water loss reduction or water efficiency measures), however, obvious leaks or
water˗loss issues in vicinity of the plants and buildings would be addressed.
3.3 The Consultant(s) will provide all necessary tools required for executing the Energy Audit.
3.4 The Energy Audit may be performed in the three following stages:
(a) Pre-Site: the Consultant(s) will conduct an energy/utility billing analysis, off-site review
of relevant background information, as these are available.
(b) On-Site: the Consultant(s) will consult with key stakeholders and actors, and conduct onsite
data collection, including relevant electrical and mechanical measurements, as well as relevant analyses on-site.
(c) Post Site: the Consultant(s) will perform detailed analysis and development of energy
efficiency recommendations, investment packages, and implementation plan. The Consultant will prepare an energy audit report and develop presentation.
3.5 The Scope for some key elements are outlined below:
(a) Utility Analysis
The Consultant(s) shall conduct a detailed utility analysis for all purchased energy
(electricity, and liquid petroleum gas). Where feasible, the utility analysis shall be
conducted as a desk˗study activity prior to the site visit, so that issues flagged as part of
such review may be probed during consultation. The Consultant(s) shall request all
relevant documentation and gather any missing information during the site visit. The utility
analysis should cover the following:
(i) identification of historical use patterns over a five-year period (but at minimum, a three˗year period), through the tabulation of historical data and trend analyses,
as well as normalisation to identify anomalies;
(ii) identification of applicable electricity tariffs for WASCO’s operations;
(iii) establishment of Facility Energy Performance Index ‒ total annual energy usage
measured against the size or water production of the facility, pumping stations, or buildings and size;
APPENDIX 2.2 Page 3 of 8
(b) Stakeholder Consultation and Document Review
The main aims of the initial consultation with WASCO staff, are to establish:
(i) historical energy consumption data (electricity and liquid petroleum gas bills), the
water and waste-water production records (if these were not provided ahead of site visit or pre-site visit analyses);
(ii) operating characteristics of key water and waste-water operation plants
(or stations), and buildings (office and operations and maintenance);
(iii) energy system specifications;
(iv) existing operation and maintenance procedures and human resources;
(v) priority areas of investigation, operating constraints, and opportunities;
(vi) future plant expansions or changes; and
(vii) any other specific concerns related to facility operations.
(c) General Data Collection
In general the Consultant(s) will, through the site visit(s), seek to:
(i) collect, review, and assess all relevant reports of studies, equipment performance
specification (relevant pump curves), operation performance data, maintenance records, for the last five years, including existing mechanical, electrical, and
architectural drawings, plans and maps, etc., related to the individual pumping
stations and booster stations;
(ii) inspect and observe the relevant facilities, energy use flows, and their operations,
including architectural, lighting and power, mechanical, and process energy systems and inspect water storage facilities for obvious losses based on water
balance (input/output) data;
(iii) make necessary field measurements, including:
(aa) plant or whole facility electricity profile measurement:
(i) to capture kilo-Watt hour, kilo-watt, kilo-Volt-Ampere, Kilo-VaR
and power factor at 15 minute intervals for at least eight consecutive days of logging; and
(ii) electrical energy use for the entire period of measurement;
(bb) electricity profiles of major pumping systems, for at least eight
consecutive days of logging, to capture typical profile;
APPENDIX 2.2 Page 4 of 8
(cc) relevant parameters to estimate the efficiency of operation of the pumping
systems (pressure and flow); and
(dd) profile measurements of air conditioning and lighting circuits to establish
operating times and share in the energy and demand distributions;
(iv) appropriate temperature measurements to evaluate the performance of the
air˗conditioning systems:
For buildings, place special emphasis on the analysis of the air-conditioning systems given
their estimated large contribution to the overall energy use. In this regard, the following estimates will be required using established methodologies/tools:
(i) cooling load of the buildings;
(ii) adequacy of the air-distribution;
(iii) efficiency of the air-conditioning plants as well as air distribution system; and
(iv) efficiency of the control system for air conditioning.
(d) Analysis and Development of Energy Efficiency Recommendations
The Consultant(s) shall:
(i) identify any opportunities under the electricity tariff options and establish whether
WASCO accounts are billed under the correct classes;
(ii) bench mark facilities with respect to their energy performance levels (energy use
per volume of water pumped (kWh/m3) or energy use per unit area (kWh/m2). If possible, regional and global comparisons should be established;
(iii) develop Energy and Demand balances for WASCO facilities to account for energy
purchases and consumption;
(iv) identify EEOs and REOs related to, but not limited to, improvements in motor
drives and pumps energy efficiency, pumping system controls, power factor;
lighting, ventilating and air conditioning; building envelope; building control systems; and REOs, etc.;
(v) identify optimal operating parameters for pumping operations as part of energy
efficiency analyses;
(vi) conduct initial screening and ranking of EEOs or REOs, based on overall simple payback of better than five years, ensuring that design and project management
costs are capitalised in the payback analysis; and
(vii) conduct further appropriate detailed financial analysis to judge the feasibility of
the various options (including pay-back period based on Net Present Value,
Internal Rate of Return, sensitivity analyses, and cash flow projections), categorise
APPENDIX 2.2 Page 5 of 8
and list all EEOs and REOs considered, tabulate those that were considered but are
not viable, and give reasons for their non-viability.
(e) Recommendations
The Report shall incorporate a summary of all the activities, efforts and costs needed for achieving the expected improvement of energy efficiency of the building and water
facilities. For each recommended measure (EEMs2 or REOs), the Consultant(s) will
provide:
(i) a description of the recommended measure that will achieve verifiable energy
savings or achieve verifiable greenhouse gas emissions reductions. This should also include the scope of work for the retrofit, where relevant, and adequate
descriptions and references must be provided where innovative measures are
recommended;
(ii) overall project cost estimate, as well as breakdowns showing design, project
management, materials/equipment (including quantities), labour, commissioning,
training, and taxes components (identifying source or basis of quoted or estimated prices);
(iii) projected annual energy savings, demand savings, cost savings and other benefits,
eg operations and maintenance and water cost savings;
(iv) projected avoided greenhouse gas emissions;
(v) projected Simple Payback, Internal Rate of Return, Return on Investment, stating
all assumptions; and
(vi) life cycle cost/benefit analysis.
Preparation of an Energy Audit Report:
The Consultant(s) shall prepare an energy audit report that shall include the
following:
(i) Executive Summary (compiled by completed the summary table attached).
(ii) Introduction.
(iii) Glossary of Terms.
(iv) Utility Billing Analysis.
(v) Description of Existing Systems – including energy balance and
benchmarks.
2 Once screened and recommended, EEOs are referred to as EEMs.
APPENDIX 2.2 Page 6 of 8
(vi) Analyses of EEOs and REOs; recommended EEMs and REOs for
implementation (estimated energy and cost savings, and associated
implementation costs, economic and financial analyses on life cycle basis).
(vii) Conclusions.
(viii) Appendices (inventory of equipment, measured data, model of energy use;
reference data for analysis presented in the report).
The Report should be as such, as to enable the Project Manager to clearly relate
the presentations to each specified pumping station, building or installation and
provide a reasonable basis for the compilation of a Scope of Works for the implementation of recommended energy efficiency measures.
Inter alia, the Executive Summary shall include two key tables viz:
(aa) table summarising facility details, utility analysis data, rates used
in savings analysis, and energy end-use breakdown may be
expressed graphically; and
(bb) table summarising recommended EEMs and REOs, and economic
and financial metrics.
Development of an Implementation Plan
Develop an implementation plan, giving due regard to the level of investments required and level of difficulty for implementation as well as time horizon, short,
medium and long term:
(i) priortised and rank EEMs and REOs for implementation identifying short,
medium and longer-term measures (also on the basis of low investment,
medium investment and high investment, where appropriate);
(ii) establish targets for implementation and key performance indicators;
(iii) identify areas for staff training, especially related to O&M; and
(iv) identify public and private sector partnerships, where appropriate, to
achieve the best results.
4. DURATION OF THE CONSULTANCY
4.1 The consultancy is expected to be conducted over a period of approximately six months.
APPENDIX 2.2 Page 7 of 8
5. REPORTING REQUIREMENTS
5.1 The Consultant(s) will present six (6) copies of each report, four (4) copies to WASCO and two (2) copies to CDB. The reports shall also be submitted in PDF, as complete documents, as well as in
Microsoft Word and Excel, and/or other formats used in their creation. A copy of all data used in the
preparation of the reports shall also be submitted to CDB. These reports are as follows:
(a) Inception Report: The Inception Report will be presented within 14 days after the signing
of the Contract, and it will include:
(i) initial findings;
(ii) the consultant(s)’ detailed work schedule and methodology, including the schedule
and scope of all surveys, investigations, and tests, etc., to be conducted;
(iii) a programme for the use of resources including personnel, equipment, and
materials, etc.; and
(iv) a proposed outline for the Final Report.
(b) Draft Final Report: The Draft Final Report will be presented within 18 weeks after the
signing of the Contract and it will include, as a minimum:
(i) details of all analyses and evaluation of option for EEMs;
(ii) recommendations with justification and cost estimates of proposed measures; and
(iii) an implementation plan.
(c) Final Reports: The Draft Final Report will be presented within four (4) weeks after
receiving comments from WASCO and CDB.
6. QUALIFICATIONS AND EXPERIENCE
6.1 All members of the Consulting Team must have excellent communication and interpersonal skills
and must be fluent in English. The key experts required for the Consultant’s Team, and their minimum
qualifications and experience, are as follows:
Key Expert No. 1: Energy Specialist (Team Leader)
(a) Education: MSc. in Electrical engineering or mechanical engineering or energy related
field.
(b) Experience: A minimum of 10 years’ of working experience in energy management in
commercial and industrial context, including energy assessments of motor-drives, water supply, and water treatment systems. Specialised training/certification on water energy
management or building energy management, inspection and assessment of energy
performance and/or extensive proven experience of the same.
APPENDIX 2.2 Page 8 of 8
Key Expert No. 2: Water Operations Engineer
(a) Education: MSc. in Civil or Environmental Engineering
(b) Experience: Ten years’ experience in water supply operations, including extensive
experience in pump operations, and water or wastewater treatment plant operations.
The candidate must have performed this role on at least two projects of this size and complexity within the past five years.
Key Expert No. 3: Financial Analyst
(a) Education: MSc. in Finance.
(b) Experience: Ten years’ experience in conducting financial analysis and feasibility
studies. The candidate must have performed this role on at least two projects of this
size and complexity within the past five years.
7. COMMENTS BY THE CONSULTANTS
7.1 The Consultant(s) are required to make any comments on, and suggestions for, improvements to
these Terms of Reference. The financial implications, if any, of these recommendations should be indicated in the Financial Proposal.
8. COORDINATION AND FACILITIES
8.1 WASCO is the Executing Agency for the Consultancy. The Consultant(s) shall report to the Project
Coordinator located within WASCO. WASCO will facilitate the issuance of any permits required for the
Consultant(s) to carry out their duties and make available all relevant reports, documents, maps, and data. The Consultant(s) team members are expected to bring their own computers. WASCO shall designate
counterpart personnel whom the Consultant(s) shall mentor in all aspects of the assignment.
BUDGET
(USD)
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 2.3
DRAFT TERMS OF REFERENCE
CONSULTANCY SERVICES FOR PREPARATION OF
A WATERSHED MANAGEMENT PLAN
FOR VIEUX FORT RIVER
1. BACKGROUND
1.1 The Vieux Fort water catchment is a 28.99 kilometres square (km2) watershed and is the only source
of water to the Beausejour and Grace water treatment plants, which supply water to the communities of Vieux Fort, Laborie and their environs. The communities served consist of approximately 8,600
households, as well as the hospital, international airport, national stadium, and commercial and industrial
enterprises.
1.2 The water supply in the south has been unreliable and inconsistent in both the dry and rainy seasons.
During periods of intense rainfall, the turbidity of the raw water rises significantly above an acceptable level. In addition, during the dry season the quantity of water available from the existing intakes decreases
significantly. As flood, droughts, changes in precipitation and temperature, and other impacts of climate
variability and climate change projected for Saint Lucia, affect water quality and quantity, the need for
proper watershed management will increase. These impacts will exacerbate existing conditions and create new challenges for the Saint Lucia Water Resources Management Agency (WRMA) with responsibility for
managing the island’s water resources and the Water and Sewerage Company (WASCO), the sole water
suppliers, to overcome.
1.3 Only a small portion of the intake – approximately 5.5 km2 (of the 29.9 km2) falls within forest reserve lands where no anthropogenic activities are permitted. Ideally, the watershed should be under
protected forest by statute, whether state or privately owned, however acquisition of the watershed by the
Government of Saint Lucia (GOSL) would be a very costly option. The watershed has experienced some degradation over the years primarily due to agricultural activity on slopes and along the riverbanks.
Housing has gradually expanded along the watershed divides and the potential for domestic waste and
wastewater contamination is increasing, particularly in the lower reaches of the river system.
1.4 These activities cause increased runoff and slope stability issues along the river embankments,
which in turn collectively cause siltation and high turbidities in the river water source during heavy rainfall
events. As the residual stream flows necessary to support aquatic biota has not been determined, it is possible that current abstractions may, in some cases, exceed that required to sustain environmental quality.
Inadequate public education and participation in protecting water resources and ecosystem conservation
efforts, have contributed to the problems encountered within the Vieux Fort watershed.
1.5 WRMA’s functions under the Water and Sewerage Act (2005) include, among others: granting
abstraction licenses, use permits in control areas, and permits for waste discharge; promoting the sustainability of water resources; undertaking water resources assessment and planning, including
surveying, monitoring, research and development; developing watershed management plans and facilitating
regulation accordingly; advising the Minister in relation to water control areas and waste control areas; and advising the Minister in relation to water-related emergencies. The Agency is challenged to carry out its
functions due to, among other things, inadequate availability of required data (e.g. current and historic
rainfall, stream flow, runoff, water demand and supply); inadequate monitoring equipment; and limited
capacity of staff, particularly with regard to data collection and analysis.
1.6 The Vieux Fort River watershed is not adequately instrumented and consequently there is no
long˗term record of stream flow. Spot measurements are currently being made by WRMA in an attempt to estimate the relative variation between dry season and wet season flows. The unreliability of stream flow
APPENDIX 2.3 Page 2 of 10
and other data, as well as the limited monitoring programme, pose one of the greatest challenges to
improved water resource management. Both WASCO and WRMA have expressed the need for stream
flow gauging stations at the Vieux Fort River.
1.7 GOSL anticipates that the Vieux Fort community will become a critical region for economic growth
in Saint Lucia. Plans are proposed for a new cruise pier, and the construction and operation of three hotels
in the area. In addition, projections for the future of the region suggest increased population size and industrial expansion. The issues surrounding the quantity and quality of the water supply, without
intervention, will be exacerbated by future population growth. Further, the water supply issues in the area
have, to a large extent, curtailed tourism and industrial development plans in the south.
1.8 Saint Lucia’s National Climate Change Policy and Adaptation Plan as well as the First and Second National Communications on Climate Change identify the need for catchment protection in light of
continuing degradation and recurring damage from exposure to natural hazard events, including storms,
intense rainfall, and landslides. Building resilience to climate variability and change (CVC) is one way that
water resources managers can proactively begin to cope with the impacts of climate change and ensure that watersheds continue to provide the services upon which human and natural communities rely.
1.9 Water resources of the Vieux Fort Basin were assessed in 20121 towards finding feasible solutions
for the current water problems in Vieux Fort. The Forestry Department in the Ministry of Agriculture,
WASCO and WRMA, as well as a study of the water resources in Vieux Fort2, all recommended the
development and implementation of a watershed management plan, hydrologic and pollutant loading monitoring programmes, water conservation programmes, and increasing public awareness and education,
as some of the immediate interventions.
1.10 Proper management of the watershed is an essential aspect of sustainable water resources
development in Vieux Fort and environs. A strategic approach to managing the watershed within the
Vieux Fort River catchment is therefore necessary, in order to mitigate the effects of land use to an acceptable level and to optimise the availability of water resources. This is also crucial to protecting the
proposed investment and sustaining its anticipated benefits.
2. OUTCOME
2.1 The expected outcome of the technical assistance is that evidenced-based decision making by
WRMA and policymakers, users, and residents, on managing land and water resources within the
Vieux Fort watershed is improved. This will be achieved through the preparation of a collaborative and
integrated watershed management plan to, among other things, inform the declaration of water control areas; establish sustainable hydrological and pollutant load monitoring regimes, including opportunities for
community monitoring; and watershed education.
1 FB Morgan et. al. 2 Analysis for the Sustainability of the Water Resources and Supply of the Vieux Fort Region of St. Lucia, Frank Dale
Morgan, Brad Johnson November 2004. Update 2012 by Frank Dale Morgan, Burke Minsley, Earth Resources
Laboratory, Department of Earth, Atmospheric and Planetary Sciences, Massachusetts Institute of Technology
Cambridge, MA, USA.
APPENDIX 2.3 Page 3 of 10
3. SCOPE OF WORK
3.1 The scope of services includes, but is not limited to:
(a) Watershed Management Plan
Approach and Planning Process
(i) The Vieux Fort River Watershed Management Plan is to be developed collaboratively with input from all levels of government and affected stakeholders,
including residents within the plan area. The purpose of the Plan is to establish a
strategy and recommendations regarding the management of water and land
resources in the area for the benefit of the users of those resources, while maintaining the integrity of the natural environment. The Watershed Management
Plan will link the issues of water quality, water quantity, and riparian habitat
protection with the watershed's economic, environmental, and social priorities and community values. The Plan will provide management direction in the form of
recommended actions based upon collaborative stakeholder and broad community
deliberation of the issues facing the watershed.
(ii) The Vieux Fort River Watershed Management Plan is to be completed in two
phases.
(b) Phase 1: Characterisation of Existing Watershed Conditions
(i) Preparation of a "State of the Vieux Fort River Watershed Report” which describes
in detail the current status/conditions of the watershed in terms of, but not limited
to: potential and current land use, land cover, forests and protected areas;
identification of significant ecosystems and ecosystems services; population; economic activities; and institutional arrangements to manage the environment.
(ii) The water resources component should include surface water quantity, quality, and habitat/riparian areas water needs. This should consider impacts of land use
throughout the watershed on water resources; causes and sources of pollution;
estimation of pollutant loading into the watershed and the expected load reductions; management measures that will achieve load reductions and
availability of a secure water supply; CVC impacts on the water cycle in the
watershed; maintenance of adequate in-stream flows for fish and other aquatic
organisms; protection and restoration of habitat and riparian areas; and constraints associated with limited water resources.
(iii) Diagnostic analysis, identifying existing or potential conflicts in natural resources management (water, land, forests, ecosystems).
(iv) Information should be quantified as far as possible. Survey and collect data in the field where information gaps exist.
(v) The Report should include information documenting the data sources used to
compile the information contained in it, as well as identification of data gaps with a discussion of technical information related to the watershed which is not readily
available.
APPENDIX 2.3 Page 4 of 10
(c) Phase 2: Watershed Planning
Upon completion of Phase 1, the watershed planning phase will begin. Stakeholder
participation during this phase is required and considered to be essential to the development
of an effective watershed management plan. A high degree of attention to stakeholder consultation during this phase of the planning process is necessary to ensure that adequate
input is obtained and that the Plan reflects public attitudes and concerns.
Establish Goals and Objectives of the Plan
(i) Based upon the information provided during Phase 1, stakeholders will work to
establish achievable goals and objectives which will provide the basis for the
recommended actions generated by the planning process.
Issue Identification
(ii) Identify a set of priority issues that are to be addressed through the planning process. A broad range of potential solutions should be explored, including but
not limited to: land use planning and land use restrictions; economic incentives;
regulations; infrastructure works; management options; institutional
arrangements; innovative governance structures for selected issues; etc.
(iii) Discussion of these issues should take into account the differential needs of men and women.
Issue Characterisation
(iv) Characterise each priority issue in order to develop an adequate understanding of each issue to provide a sound basis for considering alternative solutions.
Information and analysis may address:
(aa) the underlying causes of each issue;
(bb) who is involved or affected;
(cc) short-term manifestations;
(dd) long-term trends;
(ee) geographic distribution and severity across the plan area;
(ff) upcoming actions or decisions related to the issue;
(gg) ongoing activities that address some or all of the issue;
(hh) related programmes and plan;
(ii) information available and missing; and
(jj) prioritisation of issues (high, medium, and low).
APPENDIX 2.3 Page 5 of 10
The information gathered during Phase l will be utilised to analyse the extent,
nature, and severity of each issue to be addressed. Basing the analysis of the issues identified upon any factual data accumulated as part of the assessment of existing
conditions, will help in prioritising issues based upon their actual importance to
the health of the watershed, rather than their perceived importance.
Identification of Options for Addressing Each Issue
(v) For each issue, a set of potential solutions should be identified. Both short and long˗term approaches should be considered.
Evaluation of Options and Selection of Recommended Actions
(vi) Evaluate the alternatives/options for recommended action. For each alternative the
Consultants will prepare a profile with: detailed description of the alternative;
expected costs and benefits, including the identification of who benefits and who pays; institutional requirements; a risk identification table; identification of
budgeting, implementing and management responsibilities; sources of funding;
and advantages and disadvantages. The Project Steering Committee (PSC), as well as key stakeholders, will be engaged to determine the preferred actions to be
pursued.
Design and Implementation Programme
(vii) The Watershed Management Plan (WMP) will include an implementation programme which specifies: the actions to be undertaken; the
agency/organisation(s) responsible for undertaking those actions; and the general
timeframe required to undertake them. Public awareness and education programmes shall be included as an integral part of the programme.
The Implementation Plan should include a results-based approach to monitor
performance of WMP and to ensure that the Plan’s outcomes are achieved.
Relevant outcomes (including intermediate outcomes) with associated indicators should therefore be provided (note that outcomes should be clearly distinguished
from the outputs). The Implementation Plan should also identify lead agencies,
resources, timelines, and budgets for implementation and monitoring changes/benefits due to plan implementation.
Resource Mobilisation Plan
(viii) Prepare a resource mobilisation plan as a complement to the Implementation
Programme to facilitate sustainable finance of the Implementation Programme.
APPENDIX 2.3 Page 6 of 10
(d) Stakeholder Consultations
Stakeholder Consultation and Communications Plan
(i) Develop a detailed stakeholder consultation and communications plan to guide
implementation of the consultation process. The details of this plan will be developed in consultation with WRMA and PSC.
(ii) The stakeholder consultation process will:
(aa) promote effective communication between government agencies responsible for water resources management and supply; watershed
management; planning and development; local government; social
transformation; agriculture and forestry and other identified stakeholders,
including residents, to identify the best management strategies for the watershed;
(bb) solicit input from stakeholders at key stages of the process; and
(cc) provide residents and stakeholders with an opportunity to understand the issues and resource management challenges being faced; and incorporate
community values into the planning process, together with the analysis
done under Phase 1.
(iii) Conduct consultative and participatory stakeholder meetings periodically at
appropriate points of the process with: community leaders; community groups;
residents; stakeholders living and working in the watershed; farmer cooperatives; and ministerial departments and agencies, including, but not restricted to, public
works, physical planning, finance, forestry, agriculture, industry, the
National Emergency Management Organisation, water utility, and any other
relevant parties.
(e) Capacity Strengthening for Sustainable Hydrometric Monitoring, Data Collection
and Analysis
(i) Design of an environmental and hydro-meteorological monitoring network as required, including institutional arrangements and the identification of financial
alternatives.
(ii) Prepare a monitoring plan aimed at generating the data and information required for fact-based decision making in reference to natural resources, including land, water,
forest and key ecosystems and ecosystem services required by the community.
Installation of a Stream Flow Gauging Station at the Vieux Fort River
(iii) review of existing documents on ongoing projects related to hydrometry and the installation of stream flow gauging equipment and other related documents;
APPENDIX 2.3 Page 7 of 10
(iv) determine the optimal locations for the installation of stream flow gauging stations
at the Vieux Fort River;
(v) select and provide specifications of the gauging equipment for the gauging station;
(vi) design of the civil structures required for the gauging stations, including drawings
and a description of the operation and maintenance procedures;
(vii) elaborate the technical specifications of the civil works; and
(viii) assist WRMA with the establishment of a tender dossier for the gauging station
equipment and for the civil works and equipment installation, and installation of
the gauging station equipment and its commissioning.
Capacity Building Workshop for Sustainable Hydrometric Station Design
(ix) prepare training materials and conduct a two-day workshop for WRMA, the
meteorological office, and other government agencies, local contractors and
engineers, on designing durable, cost-efficient civil structures for stream flow gauging stations and its related equipment; and
(x) the Workshop should address aspects such as: selection of the design flood
discharge for the station; selection of appropriate gauging technology; design of
the related control structures; addressing the structural stresses at the civil structures by the floods; design of proper station foundations; and economising
station design without compromising station integrity. The Workshop should
include hands-on sessions to deepen the participants’ understanding.
Capacity Building Workshop for Data Collection, Management and Analysis Improvement
(xi) prepare training materials and conduct a two-day workshop for staff of WRMA in
the collection and analysis of stream flow and rainfall data in order to develop
rating curves and intensity duration frequency curves; and
(xii) the installed stream flow gauge will be used during the training for practical
demonstration.
(f) Water Resources Management Education and Communication
(i) develop a design concept for the production of a documentary video and other
outreach materials on water resources management, non-point sources of pollution
and community monitoring specifically targeted at: landowners; residents and commercial operators; schools (upper primary and secondary) in Vieux Fort and
its environs; and the media. The concept should be cognisant of the creole
language spoken in the targeted communities; and
(ii) produce a video and outreach material package which should include, but not be
limited to, documenting the watershed management planning process including the expected outcomes and accountabilities; the purpose for and the process of
APPENDIX 2.3 Page 8 of 10
installing hydrometric equipment, e.g. stream flow gauging station; and
subsequent monitoring and the benefits to the target groups.
3. IMPLEMENTATION ARRANGEMENTS
3.1 The development of the Vieux Fort River Watershed Management Plan process will be led by the
Director of WRMA supported by PSC established for the Vieux Water Supply Redevelopment Project. WRMA will appoint a Project Manager from its own staff who will have the responsibility to provide
guidance and support to the Consulting Team.
3.2 WRMA will facilitate the work of the Consultant(s) and make available all relevant studies, reports
and data relevant to completion of the exercise and will act as liaison between the Consultant(s) and GOSL
officials and stakeholders.
3.3 Stakeholders will include, but not be limited to, representatives from the various government
agencies having jurisdiction in the watershed, as well as other representatives from the following sectors:
agriculture; industry; recreation/tourism; and environment.
4. QUALIFICATIONS AND EXPERIENCE
4.1 The Consulting team should consist of persons having a Master’s Degree and minimum of 10 years’
relevant experience in the areas of hydrology and/or hydrometry and hydrological assessment, physical
planning, disaster risk management/climate change adaptation, environment/natural resources management, community education, and in the application of community participatory methods,
developing communication tools for non-technical persons. Specific experience in community
development in the Caribbean will be an asset. Ability to communicate in Kweyol will also be an asset.
5. REPORTING ARRANGEMENTS/OUTPUTS
5.1 The Consultant(s) will present five (5) copies of reports, three (3) copies to GOSL and two (2) copies to the Caribbean Development Bank (CDB). Electronic submissions of all reports should also be
made in “pdf” format. These reports are as follows:
(a) Inception Report: initial findings including any comments on these Terms of Reference
(TOR); the Consultant(s) detailed work schedule and methodology; a programme for the
use of resources including personnel, equipment, materials, etc., within two (2) weeks of
the signing of the Contract. GOSL and CDB will provide comments on this Report within two weeks of receipt of the Report and the Consultant(s) will adjust the ongoing work
according to the comments received.
(b) Draft State of the Vieux Fort River Watershed Report: within three (3) months of signing
of the Contract. The Report should include the site characterisation, flood hazard and vulnerability analysis; and flood risk mapping, and options for cost-effective priority river
and drainage rehabilitation works. GOSL and CDB will provide comments on this Report
within two (2) weeks of receiving the Report. The Consultant(s) will revise the Report
within two (2) weeks of receipt having regard to the comments received. Three (3) and two (2) copies, respectively, of the Final State of the Vieux Fort River Watershed Report
must be submitted to GOSL and CDB.
APPENDIX 2.3 Page 9 of 10
(c) Draft Stakeholder Consultation and Communications Plan: within three (3) months of
the signing of the Contract. GOSL and CDB will provide comments on this Report
within two
(2) weeks of receiving the Report. The Consultant(s) will revise the Report within
three (3) weeks of receipt having regard to the comments received. Three (3) and two (2) copies respectively of the Final Stakeholder Consultation and Communications
Plan must be submitted to GOSL and CDB.
(d) Draft Watershed Management Plan: inclusive of a Draft Resource Mobilisation Plan
within six (6) months of the signing of the Contract. GOSL and CDB will provide
comments on this Report within two (2) weeks of receiving the Report. The
Consultant(s) will revise the Report within three (3) weeks of receipt having regard to the comments received. Three
(3) and two (2) copies respectively of the Final Watershed Management Plan and
Resource Mobilisation Plan must be submitted to GOSL and CDB.
(e) Workshop Reports: within two (2) weeks of completion of each Workshop on:
Sustainable Hydrometric Station Design; and Data Collection, Management and
Analysis Improvement.
(f) Stakeholder Consultation Reports: within two (2) weeks of completion of each
stakeholder meeting.
(g) Draft Documentary Video and Outreach Materials: within nine (9) months of
signing of the Contract. GOSL and CDB will provide comments on this Report within two (2) weeks of receiving the Report. The Consultant(s) will revise the
Report within one (1) month of receipt and having regard to the comments
received. Three (3) and two (2) copies respectively of the Final Documentary
Video and Outreach Materials must be submitted to GOSL and CDB.
6. DURATION
6.1 The Consultancy is to be implemented over a period of 10 months.
7. COMMENTS BY THE CONSULTANTS
7.1 The Consultant(s) are requested to make comments on, and suggestions for, improvements to these TOR. The financial implications, if any, of these recommendations should be indicated
separately in the Financial Proposal.
BUDGET
(USD)
This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 2.4
DRAFT TERMS OF REFERENCE
PROJECT COORDINATOR
1.1 The Project Coordinator (PC) will report to the General Manager of the Water and Sewerage
Company Ltd. (WASCO). He/she will be responsible for coordinating and monitoring all aspects of the
implementation of the Project. PC shall be assigned exclusively to the Project and will be supported by the administrative staff. PC’s duties will include, but will not be limited to:
(a) managing the selection and engagement of technical assistance consultants and supervising
these consultancies;
(b) facilitating the procurement of the engineering consultants and construction contracts;
(c) overseeing the engineering consultancy and construction contracts;
(d) advising WASCO on cost variations;
(e) expediting the submission to the Caribbean Development Bank (CDB) claims for
disbursement/reimbursement;
(f) liaising with CDB on all technical and administrative aspects of the Project;
(g) preparing and submitting to CDB, a Quarterly Report on the Investment Cost of the Project
in the form specified by CDB, within two (2) weeks after the end of each calendar quarter,
commencing with the quarter following the commencement of the assignment;
(h) keeping separate accounts for project-related expenditures and disbursement activities;
(i) submitting to CDB, within two (2) weeks after the end of each month, the monthly reports
prepared by the Engineering Consultants;
(j) submitting to CDB, reports on the results of the Design and Monitoring Framework;
(k) submitting to CDB, the Completion Report within three (3) months after the date of issue
by the Engineering Consultants of a certificate of practical completion of the Contract; and
(l) preparing and submitting to CDB, a Project Completion Report, within three (3) months
after practical completion of the works.
1.2 Prospective candidates should have a minimum of the following qualifications:
APPENDIX 2.4 Page 2 of 2
(a) a Masters Degree or equivalent in Civil Engineering, Construction Management with a
minimum of 15 years’ experience in the management and implementation of civil
engineering projects; or
(b) a Bachelors Degree or equivalent in Civil Engineering, Construction Management or
Project Management with a minimum of 20 years’ experience in the management and implementation of civil engineering projects. Water supply project implementation
experience will be considered an asset.
BUDGET]
(USD)
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 2.5
DRAFT TERMS OF REFERENCE EVALUATION OF THE GENDER-SENSITIVE SOCIOECONOMIC IMPACTS
1. INTRODUCTION
1.1 This consultancy is aimed at evaluating the results of the anticipated gender-equitable social
impacts of Saint Lucia’s Sixth Water (Vieux Fort Water Supply Redevelopment) Project (hereafter “the Project”).
2. BACKGROUND
2.1 The water supply system which serves Vieux Fort, Laborie, and environs comprises of water abstracted from the Grace and Beausejour intakes on the Vieux Fort River. The communities served consist
of approximately 4,300 households. Raw water is pumped to a storage tank at Grace, chlorinated, and then
distributed to the various communities.
2.2 The Government of Saint Lucia prepared the National Vision Plan, stating its vision for the
development of the country for the next 10-20 years. The Plan places a major focus on the development of
the south of the island, with the intention of creating a second city in Vieux Fort. It is suggested that the upgrade of Vieux Fort, from town to city, will be achieved through major developments which will catalyse
the growth and expansion of the south in general. The development objective for the southern quadrant is
to generate new sources of wealth and employment opportunities in tourism, information communication technology, and manufacturing. As a result of these planned developments, an adequate and reliable water
supply service will become a critical factor, having the ability to retard the growth of the country.
2.3 The water supply in the south has been unreliable and inconsistent in the dry season, as well as the
rainy season, due to the vulnerability of the systems to climate variability impacts. During periods of
intense rainfall, the turbidity level of the raw water rises significantly above acceptable levels, making it
difficult to disinfect. The present infrastructure is incapable of ensuring a consistent quality of potable water to customers during high turbidity conditions. In addition, during the dry season, the quantity of
water available from the existing intakes decreases significantly. This often leads to extended periods of
water outages in the area.
2.4 Quality, accessibility, and affordability of water represent critical elements for people to improve
livelihoods, sanitation and a range of quality-of-life indicators and for business expansion linked to job creation and economic growth. Infrastructural improvements that are designed to enhance water resource
reliability must, of necessity, consider the perspectives and inputs of a wide range of primary and secondary
stakeholders, including men and women in local communities who will be impacted by the intervention. Gender-sensitive project design increases the likelihood that the Project would achieve its objectives and
contribute to equitable access to the benefits of the Project.
2.5 Saint Lucia has acceded the Convention on the Elimination of All Forms of Discrimination Against
Women in 1982. The country’s Constitution prohibits all forms of discrimination and guarantees
fundamental rights and freedoms to all citizens. The Equality of Opportunity and Treatment in Employment
and Occupation Act prohibits discrimination and sexual harassment, mandates equal pay for work of equal value and permits special measures to accelerate the achievement of equality between men and women.
A Country Gender Assessment conducted by the Caribbean Development Bank (CDB) in 2011, makes
recommendations concerning strategic entry points and mechanisms to promote, support, and integrate gender mainstreaming initiatives in Saint Lucia.
APPENDIX 2.5 Page 2 of 4
2.6 The Project has projected a number of gender-sensitive socioeconomic benefits and impacts
resulting from implementation, which will be supported by a Gender Action Plan. The impacts include,
inter alia, improved time use and reduction in the burden of care in households, particularly those that are female-headed; improved health indicators for residents in project communities; increased productivity of
workers and school children, resulting from reduction in absenteeism from the work place and school,
respectively; increased disposable income, resulting from the reduction/total elimination of households’
current expenditure related to the purchase of bottled water; increased employment opportunities for skilled and unskilled male and female workers in the project, and neighbouring, communities during the
construction phase of project implementation. The achievement of these benefits is expected to contribute
to poverty reduction.
2.7 Given the focus on gender equality within this economic infrastructure project, CDB will assess
the extent to which the above-mentioned benefits have been realised as a result of project implementation, in line with the established project outcome.
3. OBJECTIVE
3.1 The aim of this consultancy is to conduct a: (a) formative evaluation to assess the extent to which
gender-sensitive socioeconomic benefits and impacts projected under the Project are likely to be realised;
and (b) summative evaluation to assess the extent to which the benefits have been realised as a result of
project implementation.
4. METHODOLOGY
4.1 The consultant team will perform all investigative work, analyses and compilation of gaps, lessons
learned and good practices of the previous experiences in the country to realise the objective stated above.
Based on the results set in the Project's Results Matrix and the anticipated gender-equitable socioeconomic
benefits and impacts, the Consultant(s) will: (a) use participatory and consultative methodologies in working closely with the Water and Sewerage Company Ltd. (WASCO); the Ministry of Health, Wellness,
Human Resources and Gender Relations; women and youth groups and other civil society groups; and other
stakeholders to assess the qualitative and quantitative impacts of the projected benefits to be realised.
5. SCOPE OF SERVICE
5.1 The consultancy will involve desk and field work, consultation with relevant persons within, as well as outside, the sector. The Consultant(s) is expected to design an evaluation methodology and set up
a framework to monitor progress towards the achievement of the targets set in the Project’s Results
Framework. The Consultant(s) will be required to:
(a) at the outset of the consultancy, submit an overall evaluation strategy with baseline
methodology and work plan for the evaluation process, specifically to:
(i) assess the appropriateness of the results framework, including outcome and output
indicators and targets to measure performance and status of implementation, as
well as the quality of the data to be generated;
(ii) assess the responsiveness of the infrastructure design to increasing accessibility of
households to WASCO water;
APPENDIX 2.5 Page 3 of 4
(iii) define the evaluation questions based on international best practice and identify
qualitative and quantitative aspects to be monitored and evaluated; and
(iv) undertake a baseline study to collect data necessary to inform the evaluation
framework.
(b) one year after project implementation, undertake formative evaluation to assess the extent to which project benefits are likely to be realised and submit an Interim Evaluation Report
that includes:
(i) a comprehensive interim review of project outcome in relation to the expected
gender-equitable socioeconomic benefits anticipated from project implementation
based on the methods and data defined at the outset, and in full alignment with the project results; and
(ii) identification and documentation of good practices, interim lessons, gaps, and
recommendations of necessary corrective action, to support achievement of benefits and impacts.
(c) three months after completion of project implementation, undertake summative evaluation to assess the extent to which project benefits were realised and submit a Final Evaluation
Report, including:
(i) a full final evaluation of the project outcome in relation to the expected gender˗equitable socioeconomic benefits anticipated from project implementation,
based on the methods and data defined at the outset, and in full alignment with the
project results; and
(ii) identification of good practices, lessons, gaps, and recommendation of strategies
for future replication to ensure gender-equitable socioeconomic impacts for household beneficiaries in the water sector.
6. TIMING AND QUALIFICATIONS
6.1 It is expected that the consultant team will comprise one lead consultant and one local researcher,
who will conduct the research; develop the evaluation methodology and strategy; conduct the baseline,
interim and final data collection; analyse the data; and produce the corresponding reports under the guidance of the Lead Consultant.
6.2 The qualifications, composition of the team, and duration of the assignment should be:
(a) Lead Consultant: a combination of a relevant postgraduate degree and at least eight years
of work experience in the areas of evaluation of development programmes and projects
aimed at promoting gender equality, with focus on quantitative and qualitative methods, community participation, gender-responsive data collection and gender analysis, and
management. This professional will dedicate a maximum of 30 person-days to the
evaluation design; interviews with project consultants, senior government officials and
contractor managers; coaching of the local researcher; data analysis; and report writing.
APPENDIX 2.5 Page 4 of 4
(b) Local Researcher: a combination of a relevant bachelor degree and at least five years of
experience in research and compilation of data, data analysis, conducting interviews, and
applying other research methods, with focus on community development, data collection and gender analysis. This professional will dedicate a maximum of 20 person-days
conducting field research, compiling data, and supporting the Lead Consultant in data
analysis and report writing.
7. REPORTING
7.1 The Technical Proposal of the selected consultants shall have already outlined a work plan and
approach to the assignment, the scope and methodology, the tasks and responsibilities, and a time schedule
for the completion of the assignment. The following deliverables shall be submitted at the times indicated below:
(a) An Interim Evaluation Report as described in item 5.01 (b) within 12 months of commencement of the assignment.
(b) A Final Evaluation Report as described in item 5.01 (c) within three months of completion
of the assignment.
7.2 CDB and WASCO will provide feedback to each of the deliverables described in 7.01 above within
ten working days of receiving the report.
7.3 All reports shall contain sex-disaggregated data and critical gender and social analysis of the
information presented.
BUDGET
(USD)
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 2.6
DRAFT TERMS OF REFERENCE
ENGINEERING CONSULTANTS
CONSTRUCTION MANAGEMENT AND SUPERVISION AND
CONDUCT OF VIEUX FORT WATER AUDIT
1. BACKGROUND
1.1 The Government of St. Lucia (GOSL) has received/applied for financing from the Caribbean
Development Bank (CDB) towards the cost of the upgrade of the Vieux Fort water supply system.
1.2 The works will include, among other things, the following:
(a) construction of two river water intake structures;
(b) construction of a new water treatment plant;
(c) construction of approximately 15 kilometres of High-Density Polyethylene transmission
mains ranging in sizes 450-300 millimetres; and
(d) installation of three glass-fused steel storage tanks.
1.3 The works will be bid under International Competitive Bidding open to prequalified bidders and bid as one design and build contract. GOSL, through the Water and Sewerage Company Ltd. (WASCO),
wishes to engage the services of consultant(s) to provide construction supervision services as detailed in
these Terms of Reference (TOR).
2. OBJECTIVES
2.1 The objectives of the assignment are as follows, to:
(a) ensure that high-quality construction is achieved and that all work is carried out in full
compliance with the engineering design, technical specifications, and other contract documents;
(b) provide support to the Executing Agency in the execution of its project management functions, including its monitoring and evaluation functions; and
(c) lead the conduct of a water audit and the preparation of the Non-Revenue Water (NRW)
Reduction Plan for the Vieux Fort water supply system.
3. SCOPE OF WORKS
3.1 The Engineering Consultant(s) will undertake the following tasks:
(a) review of the technical information prepared in respect of the Project and submitted in
consultancy reports, drawings, and correspondence to ensure the adequacy of all aspects of
the design and tender documents;
(b) provide assistance to WASCO in the prequalification of contractors;
APPENDIX 2.6
Page 2 of 6
(c) issue the Order to Commence to the contractors;
(d) approve the contractor's work programme and source of materials;
(e) explain and/or adjust ambiguities and/or discrepancies in the Contract Documents;
(f) approve contractors' working drawings;
(g) approve the setting out of the Works;
(h) approve the contractors' key superintendence personnel, construction programmes, land to
be occupied by the Contractor, materials and sources of materials;
(i) order special tests of materials or completed works and/or removal and substitution of
improper materials and/or work, as required;
(j) check all quantity measurements and calculations required for payment purposes and
ensure that all measurements and calculations are carried out in a manner and at the
frequencies specified in the Contract Documents;
(k) control and appraise the progress of the Works; order suspension of the Works; and
authorise, with the employer’s approval, extensions of the period for completion of the
Works;
(l) issue variation orders, evaluate variations, fix rates for unpriced work, all after obtaining
prior approval of the employer, and/or to make recommendations to the employer regarding alternatives;
(m) issue interim certificates for payment to the Contractors to certify the completion of the Works, or parts thereof;
(n) inspect the Works periodically, during the construction period and the Defects Liability
Period, and to issue Defects Liability Certificates after the rectification by the Contractor of possible defects;
(o) supervise the Contractor in all matters concerning public safety and care of the works and, if required, request the Contractor to provide any necessary lights, guards, fencing, and
watchmen;
(p) carry out generally all the duties of the Engineer as specified in the Contract, within the
limitations specified therein;
(q) advise the employer on all matters relating to claims from the Contractor and to make
recommendations thereon, including the possible recourse to arbitration;
(r) participate in community meetings throughout project implementation to ascertain and
inform, among other things, communities’ views on the Project, and implementation
progress and impacts;
(s) monitor adherence to the approved Environmental and Social Management Plans;
APPENDIX 2.6
Page 3 of 6
(t) preparation of a Completion Report on construction of the Project, and as-built drawings,
within three months after the date of issue of a certificate of practical completion of the
Project; and
(u) undertake a water audit in accordance with Annex A of this TOR.
4. DURATION OF THE CONSULTANCY
4.1 The consultancy is expected to be conducted over a period of approximately two years.
5. REPORTING REQUIREMENTS
5.1 The Consultant(s) will present six (6) copies of each report, four (4) copies to WASCO and two (2) copies to CDB. The reports shall also be submitted in “pdf”, as complete documents, as well as in Microsoft
Word and Excel and/or other formats used in their creation. A copy of all data used in the preparation of
the reports shall also be submitted to CDB. These reports are as follows:
(a) Inception Report: The Inception Report will be presented within 21 days after the signing
of the Contract, and it will include:
(i) Initial Findings.
(ii) Consultants’ detailed work schedule and methodology, including the schedule and scope of all surveys, investigations, and tests, etc., to be conducted.
(iii) A programme for the use of resources including personnel, equipment, and
materials, etc.
(iv) A proposed outline for the Final Report.
(b) Monthly Reports: The Consultant(s) will, no later than the specified date of each month,
prepare a progress report summarising the work accomplished for the preceding month. The reports will outline any problems encountered (administrative, technical, or financial)
and give recommendations on how these problems may be overcome. The reports will
detail progress of ongoing works, include analysis and summaries of all test results, and
shall record the status of payment of all contractors’ monthly certificates, of all claims for cost or time extensions, and of actions required of WASCO, other GOSL agencies, utility
companies or other stakeholders to permit unconstrained works implementation.
(c) Contract Completion Reports: The Consultant(s) will prepare a comprehensive Contract
Completion Report for each of the two construction contracts which reaches substantial
completion during the period of the services. These reports, which must be submitted immediately after the taking over of each contract, shall summarise the method of
construction; the construction supervision performed; actual implementation progress and
costs compared to planned progress and costs; quality assurance and quality control results;
technical issues addressed; and recommendations for future projects of similar nature to be undertaken by the Employer.
(d) Project Completion Report: The Consultant(s) will prepare a single Project Completion Report to consolidate information from the two Contract Completion Reports.
APPENDIX 2.6
Page 4 of 6
6. QUALIFICATIONS AND EXPERIENCE
6.1 All of the members of the Consulting Team must have excellent communication and interpersonal skills and must be fluent in English. The key experts required for the Consultant’s Team and their minimum
qualifications and experience are as follows:
(a) Key Expert No. 1: Water Supply Operations Engineer (Team Leader/Resident
Engineer):
(i) Education: MSc. in Water Supply Engineering.
(ii) Experience: At least 15 years’ experience in water supply infrastructure and
construction with at least 5 years’ experience in developing countries.
The candidate must also have at least five years’ experience as a Team Leader
working on projects in developing countries and must have performed this role on at least two projects of this size and complexity within the past five years.
The candidate must have been a registered professional engineer for a minimum
of 10 years and be a corporate/chartered member of international civil engineering professional organisations. The Team Leader will reside in Saint Lucia full time
throughout the period of the services. The candidate must have excellent technical,
management, and communication skills, and must be fluent in spoken and written English.
(b) Key Expert No. 2: Electro-Mechanical Engineer:
(i) Education: MSc. in Electrical or Mechanical Engineering.
(ii) Experience: ten years’ experience in process electrical control system design and installation with at least two years’ experience in developing countries.
The candidate must have been a registered professional engineer for a minimum
of six years and be a corporate/chartered member of international civil engineering
professional organisations. The candidate must have performed this role on at least two projects of this size and complexity within the past five years.
(c) Key Expert No. 3: Civil Engineer:
(i) Education: MSc. in Civil Engineering.
(ii) Experience: 10 years’ experience in civil engineering project design and
construction, with at least 2 years’ experience in developing countries.
The candidate must have been a registered professional engineer for a minimum of six years and be a corporate/chartered member of international civil engineering
professional organisations. The candidate must have performed this role on at least
two projects of this size and complexity within the past five years.
(d) Key Expert No. 4: Water Network Specialist:
(i) Education: BSc in Civil Engineering.
APPENDIX 2.6
Page 5 of 6
(ii) Experience: ten years’ experience in water supply network operations, with at least two years’ experience in conducting water audits. The candidate must have
performed this role on at least two projects of this size and complexity within the
past five years.
6.2 It is envisaged that part-time inputs would be required from the following other experts:
(a) Surveyors;
(b) CAD Technicians;
(c) Environmental Specialist;
(d) Financial Analyst; and
(e) Sociologist.
7. MANPOWER, SCHEDULING AND COSTS
7.1 In estimating man-month requirements and costs of the services, the Consultant(s) should ensure
that the proposal takes full account of all of the above requirements and the following items:
(a) consultant(s) fees;
(b) consultant(s) out-of-pocket expenses;
(c) support staff services;
(d) equipment hire;
(e) report production, documentation, and communication costs; and
(f) survey costs.
8. COMMENTS BY THE CONSULTANTS
8.1 The Consultant(s) are required to make any comments on, and suggestions for, improvements to
these TOR. The financial implications, if any, of these recommendations should be indicated in the Financial Proposal.
9. COORDINATION AND FACILITIES
9.1 WASCO is the Executing Agency for the Consultancy. The Consultant(s) shall report to the
Project Coordinator located within WASCO. WASCO will facilitate the issuance of any permits required
for the Consultant(s) to carry out their duties and make available all relevant reports, documents, maps, and data. The Consultant(s) team members are expected to bring their own computers. WASCO shall designate
counterpart personnel whom the Consultant(s) shall mentor in all aspects of the assignment.
APPENDIX 2.6
Page 6 of 6
BUDGET
(USD)
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
ANNEX TO APPENDIX 2.6
CONDUCT OF WATER AUDIT
VIEUX FORT WATER SUPPLY NETWORK
1. BACKGROUND
1.01 WASCO estimates that it loses 40% to 60% of the water it produces, due to leaks and overflows from deteriorating infrastructure; water theft; meter under-registration; database
inaccuracies; and billing discrepancies. It is essential that the high levels of NRW be addressed for
the company to be an efficient and sustainable operation. In this regard, WASCO is in the process of developing a national NRW reduction programme which will include: (a) undertaking a
complete asset inventory and condition survey;
(b) conducting water audits on the major water networks; (c) phased replacement aged pipe and
storage infrastructure; (d) phased replacement of water meters; and (e) training of staff on leak detection and NRW management.
2. OBJECTIVE
2.1 The objective of this consultancy is to conduct a validated water audit of the Vieux Fort
water supply system, utilising the American Water and Wastewater Association methodology.
3. SCOPE OF SERVICES
3.1 The scope of services of the Consultant(s) will include, but not be limited to:
(a) an analysis of WASCO production and sales information for Vieux Fort to validate
the handling of consumption data within the billing system;
(b) an assessment of apparent loss volumes due to meter reading and billing system
data handling errors;
(c) conduct a validation/testing exercise of field production and revenue meters; and
(d) preparation of a NRW reduction action plan for the Vieux Fort network, which
clearly outlines recommendations for WASCO to improve its management of NRW, the training needs of staff, and an indicative implementation programme and
associated costs.
APPENDIX 3.1
PROJECT COST PHASING AND FINANCING PLAN
($’000)
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.1
L
APPENDIX 4.2
CURRENT TARIFFS STRUCTURE
EFFECTIVE FOR THE TREINNIAL SEPTEMBER 2012 TO AUGUST
2015
Category
Previous Rates
Per 1,000 Gals
66.15%
Increase
New Tariff
Per 1,000 Gals
Water
7.35
4.86
12.21
A. Domestic Customers
First 3,000 gallons
In excess of 3,000 gallons 15.00 9.92 24.92
Minimum Charge - 2,000 gallons 14.70 9.72 24.42
B. Commercial/Industrial
20.00
13.23
33.23
C. Hotel
22.00
14.55
36.55
D. Government
14.00
9.26
23.26
E. Ship
40.00
26.26
66.26
Sewerage
Previous Rates
Per 1,000 Gals
0.51
Increase
New Tariff
Per 1,000 Gals
A. Domestic Customers 5.45
2.77
8.22 First 3,000 gallons
In excess of 3,000 gallons 10.35 5.26 15.61
Minimum Charge - 2,000 gallons 10.90 5.54 16.44
B. Commercial/Industrial
13.70
6.96
20.66
C. Hotel
14.60
7.42
22.02
D. Government
8.50
4.32
12.82
APPENDIX 4.3
HISTORICAL STATEMENT OF INCOME AND EXPENDITURE
FOR THE YEARS ENDING DECEMBER 31
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.4
HISTORICAL BALANCE SHEET
AS AT DECEMBER 31
This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.5
HISTORICAL CASH FLOW STATEMENT
AS AT DECEMBER 31
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.6
HISTORICAL FINANCIAL RATIOS
AS AT DECEMBER 31
This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.
HISTORICAL PERFORMANCE INDICATORS
AS AT DECEMBER 31
AP
PE
ND
IX 4
.7
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.8
ASSUMPTIONS USED IN THE FINANCIAL ANALYSIS
This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.9
PROJECTED STATEMENT OF INCOME AND EXPENDITURE
FOR THE YEARS ENDING DECEMBER 31 ($ '000)
AP
PE
ND
IX 4
.9
This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.10
PROJECTED BALANCE SHEET
AS AT DECEMBER 31
($'000)
AP
PE
ND
IX 4
.10
This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.11
PROJECTED CASH FLOW STATEMENT
AS AT DECEMBER 31 ($ '000)
AP
PE
ND
IX 4
.11
This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.12
PROJECTED FINANCIAL INDICATORS
AS AT DECEMBER 31 ($'000)
AP
PE
ND
IX 4
.12
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
APPENDIX 4.13
ASSUMPTIONS TO THE ECONOMIC ANALYSIS
1. The project life is assumed to be 20 years.
2. Benefits and costs are calculated at 2014 constant prices.
3. The historic compounded annual population growth rate of 1.3% for Vieux Fort is used as the basis for future population based demand coefficient calculations.
4. The Standard Conversion Factor (SCF) for Saint Lucia was estimated at 0.92.
5. Conversion factors used for the different cost components are provided in Tables 1 to 2 below.
TABLE 1: CONVERSION FACTORS FOR COST ADJUSTMENT
Item
Shadow
Rate
SCF
Specific
Conversion
Factor (SpCF)
Skilled Labour 1.00 0.92 0.92
Unskilled Labour 0.70 0.92 0.64
Local Materials 0.80 0.92 0.74
Imported Materials and Equipment 1.00 0.92 0.92
TABLE 2: DERIVATION OF SpCFs FOR WORKS
Item
Labor
Labor
Materials
Materials
and
Equipment
SpCF
Base Factor 0.92 0.64 0.74 0.92
Water Production Facilities 0.40 0.25 0.05 0.31 0.84 Water Transmissions Mains 0.47 0.24 0.02 0.27 0.85
Water Storage Reservoirs 0.26 0.38 0.02 0.34 0.81
Vieux Fort NRW Reduction Programme 0.14 0.09 0.17 0.60 0.86
WASCO Capacity Building 0.62 0.05 - 0.33 0.91
Vieux Fort River Water Shed Management 0.85 - - 0.15 0.92
Engineering Services 0.90 - - 0.10 0.92
Project Management and Monitoring 0.90 - - 0.10 0.92
6. The overall conversion factor has been estimated at 0.86. This was used to convert the investment
cost components of the Project to their border price equivalents. The calculations are shown in Table 3.
APPENDIX 4.13 Page 2 of 3
TABLE 3: OVERALL CONVERSION FACTOR FOR THE PROJECT
Base Factor + Physical Contingences Financial
Cost
SpCF
Economic
Cost Item
Water Production Facilities 31,289 0.84 26,368
Water Transmissions Mains 6,494 0.85 5,519
Water Storage Reservoirs 4,357 0.81 3,535
Vieux Fort NRW Reduction Programme 7,092 0.86 6,126
WASCO Capacity Building 2,335 0.91 2,116
Vieux Fort River Water Shed Management 903 0.92 831
Engineering Services 3,229 0.92 2,971
Project Management and Monitoring 3,735 0.92 3436
Total Base Cost and Physical Contingencies -59,432 50,901
Overall Conversion Factor 0.86
7. The project benefits include:
(a) a reduction in household expenditure on bottled water for drinking and cooking;
(b) savings in health care cost due to a decreased incidence of AGE illness in the project
area; and
(c) a reduction of 20% in the level of NRW
8. Based on survey data it is estimated that 45% of Vieux Fort’s population rely on bottled water to deal with the intermittency of water supply in the area. Accordingly, to provide some indication of the
economic scale of these supply issues, an assessment was conducted of the savings from reduced bottled
water purchases resulting from implementation of the proposed water supply project. The assumptions used are as follows:
(a) 2015 Vieux Fort population of 20,010, increasing by 1.3% annually over the 20-year life of the
Project;
(b) residents using bottled water for cooking and drinking during WASCO supply outage: 45.1%;
(c) frequency of water supply outages without the Project during the 4-month dry season is estimated at 30.1 days annually, based on survey data;
(d) cost of bottled water: $2.10/1.5 litres;
(e) WHO definition of basic water needs for drinking and cooking: 20 l/capita/day (WHO, 2003);
(f) cost of obtaining WHO basic access through bottled water: $28/capita/day; and
(g) project success rate in reducing water outages: 80%.
APPENDIX 4.13 Page 3 of 3
9. The economic impacts that would result from improved water quality as a result of the water
rehabilitation project were estimated by comparing the economic cost of treating incidence of AGE resulting from poor quality potable water, with and without the Project.
10. The incidence of AGE in Saint Lucia is estimated at 0.52 episodes per person, per year. The average number of days an individual suffered from AGE symptoms is 3.8 days and, of the reported cases, 18.1%
sought medical care, 83% stayed at home due to illness, and 26.5% required other individuals to take care of
them1.
11. Public health care cost of treating an AGE episode is provided in the table below:
TABLE 4: AVERAGE COST OF AN AGE EPISODE
Category of Cost Public Health Care
($)
Medical Visit 20.00
Analgaesic/Antipyretic 5.00
Oral Rehydration Salts 5.00
Medication: Antibiotics 15.00
Gravol 8.75
IV 175.00
Lost work (3 days) (middle income) 275.00
Caregiver 150.00
Total 653.75 Source: Gabriel et al, 2013.
12. Incremental cost saving from reduction in NRW is equal to estimated reduction in losses (gallon)
times the variable operation and maintenance cost. In the “Without Project” scenario, NRW is estimated at
56%. It is assumed that this will decrease to 35% after project investments. Variable operating and
maintenance cost is projected at $6.28 per imperial gallon. These benefits are assumed to accrue from 2019.
1 Estimating the Burden of Acute Gastrointestinal Illness: A Pilot Project of the Study of the Prevalence of
Underreporting in Saint Lucia, Owen Gabriel et al, 2013.
APPENDIX 4.14
CLIMATE VULNERABILITY ASSESSMENT
1. The Project is included as a pilot project for financing under a Line of Credit from EIB to CDB,
specifically targeting climate action lending. The EIB-CALC provides concessionary financing for investment activities of up to USD12.5 mn for an individual sub-loan that explicitly address issues of
climate change adaptation and or mitigation. In keeping with the requirements of the EIB-CALC, a climate
vulnerability assessment was specifically carried out as part of project design process. The overall objective
of the Climate Vulnerability Assessment, is to provide climate-resilience measures that deliver a degree of climate proofing commensurate with the level of acceptable risk, taking into consideration least cost
considerations and the design life for each specific physical project component.
2. Data necessary for a quantitative climate vulnerability assessment for this project was very limited.
In absence of sufficient quantitative data, a qualitative climate vulnerability assessment was conducted based upon standard and accepted approaches to risk assessment adapted from CAN/CSA-Q850-97
(R2009) and HB 436 Guidelines to Risk Management Companion to AS NZS 4360-2004. Qualitative risk
assessment is suitable where numerical data are inadequate or unavailable for more quantitative analysis,
and can be useful the purposes of identifying vulnerabilities and risk reduction measures when comprehensive numerical datasets are not available.
3. The Qualitative Climate Vulnerability Assessment was conducted on the proposed infrastructure element designs, to evaluate the impacts on system performance for the following climate hazard scenarios
projected for Saint Lucia:
(a) projected increased temperature events, increased extreme daily maximum temperatures,
and increased monthly maximum temperatures;
(b) extreme precipitation events – increase in frequency of extreme precipitation and increase
in intensity of extreme precipitation, including flooding conditions;
(c) projected decrease in precipitation events, increased evapotranspiration and extended
drought; and
(d) increased annual basis of Category V and IV hurricanes, with increased peak wind speeds and heavier storm precipitation, including flooding conditions.
4. Saint Lucia is already experiencing some of the effects of CVC through damages from severe weather systems and other extreme events, as well as more subtle changes in temperatures and rainfall
patterns. Detailed climate modelling projections for Saint Lucia predict an increase in average atmospheric
temperature; reduced average annual rainfall; increased Sea Surface Temperatures; and the potential for an increase in the intensity of tropical storms.
5. Modelled projections indicate that mean temperatures will increase up to 3.6ºC in Saint Lucia over
the 21st century. The Global Climate Model (GCM) projections from a 15-model ensemble indicate that Saint Lucia should warm by up to 1.2ºC by the 2030s, 1.8ºC by the 2050s, 2.1ºC by the 2060s, 3.1ºC by the
2080s; and 3.6ºC by the 2090s, relative to the 1970-1999 mean. Warmer air temperatures will result in warmer water bodies, especially during low-flow periods. . While warmer waters will hold less dissolved
oxygen, higher temperatures also cause an increase in respiration rates for living organisms within the watercourse. Low oxygen levels are detrimental to a healthy aquatic system for supporting biota reliant
upon adequate dissolved oxygen. Lower oxygen levels also decrease the self-purification capabilities of rivers. Warmer water temperatures also foster harmful algal blooms and alter the toxicity of some
APPENDIX 4.14 Page 2 of 4
pollutants. Other indirect effects of projected higher temperatures include changes in watershed vegetation
and forest cover, higher domestic water demand, and higher agricultural demands from irrigation.
6. The Inter-governmental Panel on Climate Change indicates that future hurricanes of the north
tropical Atlantic will likely (>66%) become more intense, with larger peak wind speeds and heavier near˗storm precipitation. Models are strongly divergent, with some recent studies indicating that frequency
of storms may decrease, while others indicating a potential increase resulting in 3-4 category V and IV
hurricanes on an annual basis by 2025, up from the previous longer-term average of 1.4 category V and IV
hurricanes on an annual basis in the Atlantic Basin. GCM projections of rainfall extremes are mixed across the ensemble of models, with projections indicating both increases and decreases of all measures of extreme
rainfall.
7. Hurricanes and extreme precipitation events represent hazards posing significant potential for
climate impacts to drinking water infrastructure components. These conditions can result in increased river
discharge and stream flows, increased runoff, degraded quality of source water related to higher sediment
loads and turbidity, higher chemical burden in source water and potential damage to structures and components induced by slope failure and landslides, wind damage, electrical service disruptions,
communication network disruption, debris flows, floods, river channel obstruction and channel alignment
alteration, site and maintenance access limitations, and staff response limitations.
8. Source water at the Vieux Fort River was evaluated as highly sensitive to hurricanes and extreme
precipitation events, with severity of impacts rated as being major related to surface water degradation from high sediment and debris loads resulting in main intake blockage and serviceability issues resulting from
potential river crossing washout, leading to inaccessibility under high water levels. To increase redundancy
and to allow service on the main intake, a secondary emergency intake is provided (the refurbished existing
Beausejour intake is designated to function as an emergency intake in the proposed design).
9. While the emergency intake is subject to similar impacts as the new water intake system, there is
better accessibility for the emergency intake site and it can be cleared more rapidly than the main intake system. The siting of the new intake site was intended to optimise both water availability and to avoid
non˗point pollution sources located downstream of the new intake. The new source water intake weir will
be subject to debris and accessibility issues from high water levels under extreme precipitation events, with
an impact severity assessed as being major. The provision of an emergency intake system will allow faster resumption of water withdrawal to supply the treatment plant.
10. The intake pump station is considered to be operationally sensitive to impacts of hurricanes and extreme precipitation events, with an impact severity of this climate interaction evaluated as being
moderate. The adaptation to reduce this impact is a provision for a higher elevation site for the location of
the pump station, requiring land acquisition for this safe siting. Pumps inside the pump station may
experience increased wear caused by silt levels under extreme precipitation, however, this impact will be managed through requirements for more frequent and aggressive maintenance programmes. The intake
main to intake pump house is subjected to excess stream and runoff flows resulting from extreme
precipitation events, causing a major impact severity, if left unprotected. The proposed design therefore calls for pulling the main alignment of the intake main away from bends in the river, and to enhance
protection of the main using armouring and anchoring in order to protect sections along the riverbank.
11. WTP and all treatment processes within are considered potentially impacted by extreme
precipitation events with a severity of impact rated as moderate. The design implements higher elevation
for the new treatment plant than the existing water treatment plant as a protective measure against events
of projected increased rainfall. The internal treatment systems are likely to experience temporary disruption
APPENDIX 4.14 Page 3 of 4
resulting from shutdown of the treatment process if filtering screens protecting these systems are defeated
due to excess debris accumulation.
12. The elevated storage tanks are impacted by hurricanes and extreme precipitation events through
access impairment due to road washouts, resulting in an impact severity rating of being major. Road
washouts will require rehabilitation, likely requiring days to complete, and will limit accessibility to storage
tanks until road segments are restored to provide necessary access to the tanks.
13. Conditions related to decreased precipitation, increased evapotranspiration, and extended drought
conditions are possible in Saint Lucia’s projected future climate. Projected changes include total annual rainfall decreases and potential for longer dry periods, possibly accompanied by a shorter and more intense
rain season. Regional Climate Model projections of rainfall project less rainfall for all seasons by the
2080’s with large proportional decreases of -48% for March, April, and May and -46% for June, July, and August. These conditions are likely to result in decreased river discharge and stream flow, increased
number and intensity of wildfires, changes in watershed vegetation and forest cover, and higher water
demand.
14. The Vieux Fort River source water, intake weir, emergency intake and emergency pump station
were rated to experience impacts at major and moderate severity levels. For the river source, conditions
resulting in insufficient flow may occur, with a consequence of temporary shutdown of the treatment plant and supply issues throughout the distribution network. Low river levels will likely make extraction of water
at the intake more difficult and require consideration of minimum stream flow requirements for riverine
environments. For the intake weir, flow monitoring must occur in order to adjust withdrawal rates in a
manner that will allow adequate flow for riverine uses.
15. Drought conditions can give rise to wildfires and other uncontrolled burn events. A large fire event
under drought conditions would impact source water quality, with effects potentially lasting for years depending upon damage to vegetative cover in the river basin. If allowed to occur, these changes in source
water quality may drive a need for more intensive water treatment processes and supplementation of the
treatment process. Enforced watershed management and land use regulation are measures considered helpful in managing against this contingency.
16. The transmission mains will be equipped with flush-out points for low-point sedimentation control
at three locations along the main. All the transmission mains were rated at moderate severity for hurricanes and heavy rainfall events due to the design’s implementation of perimeter drains and trench armouring, and
resilient pipe materials to maintain transmission main integrity. While maintenance of the trench armouring
system will be required, the system is expected to offer reasonable protection to the transmission main itself. No adverse impacts are expected from projected increased temperature events or projected decrease
in precipitation.
17. The specific adaptation measures to increase climate resilience considered are presented in Table 1
below, for the principal project components. The incremental costs associated with the water production
changes are estimated at USD1.43 mn (see Table 1 below).
18. Despite the appropriateness of the climate resilient design, the effectiveness of its design will be
initially determined by the quality control during construction to ensure achievement of the design specifications. The quality of independent engineering supervision will therefore be of critical importance
for successful project outcomes. In addition, routine maintenance such as clearing culverts of debris and
silt will play an important role in ensuring that the structures perform in accordance with the design specifications. WASCO already has management plans and protocols for maintenance of critical water
supply infrastructure during the hurricane season and emergency events.
TABLE 1: SAINT LUCIA SOUTHERN WATER SUPPLY REDEVELOPMENT PROJECT CLIMATE ADAPTION MEASURES
Projected Climate
Scenarios
Temperature Increase
Extreme
Daily/Monthly
Maximum and
Duration
Extreme
Precipitation Event:
Increase in
Frequency and/or
Intensity
Decrease in Precipitation,
Increased
Evapotranspiration and Extended Drought
Increased Annual Basis of Cat. V and
IV Hurricanes with Increased Peak
Wind Speeds & Heavier Storm
Precipitation
Incremental Cost
(USD)
Infrastructure
Components
1. New Source Water Intake System (intake structure, pump house, and raw water mains).
1. Increased ventilation for heat control in the intake pump house. Overheating alarm, and ventilation
provided.
2. Additional intake constructed to adapt to project water quality deterioration.
Pull main alignment away from any river bends, mitigate with armouring and anchoring to protect
sections along riverbank.
Existing intake refurbished to serve in cases of emergency.
Emergency intake constructed. 700,000
2. WTP at Beausejour. WTP will function to treat
minimum available flows.
1. New plant constructed at higher
elevation and increased setback from river.
2. Designed to withstand Category V Hurricane.
3. Process tanks size increases.
400,000
3. Transmission Mains Perimeter drains and
trench armouring, resilient pipe materials to maintain line integrity.
362,000
AP
PE
ND
IX 4
.14
Page 4
of 4
APPENDIX 4.15
ECONOMIC RATE OF RETURN CALCULATION
($'000)
Year
Capital
Cost
Incremental
Operating
Cost
Benefits
from
Improved
Water
Quantity
Benefits
from
Improved
Water
Quality
Cost
Savings
from
Reduction
in NRW
Net
Benefits
2015 4,000 - - - - (4,000) 2016 18,063 - - - - (18,063)
2017 20,291 - 3,512 824 - (15,955)
2018 8,454 - 7,116 1,668 - 330
2019 324 7,208 1,690 896 9,471 2020 324 7,302 1,712 907 9,597
2021 324 7,397 1,734 918 9,725
2022 324 7,493 1,757 928 9,854 2023 324 7,590 1,780 939 9,986 2024 324 7,689 1,803 950 10,119 2025 324 7,789 1,826 962 10,253
2026 324 7,890 1,850 973 10,390
2027 324 7,993 1,874 985 10,528
2028 324 8,097 1,899 996 10,668
2029 324 8,202 1,923 1,008 10,809
2030 324 8,309 1,948 1,020 10,953
2031 324 8,417 1,974 1,032 11,098 2032 324 8,526 1,999 1,044 11,246
2033 324 8,637 2,025 1,057 11,395
2034 324 8,749 2,052 1,069 11,546
2035 324 8,863 2,078 1,082 11,699
ERR Calculation 19%
Net Present Value 17,009
APPENDIX 4.16
SOCIAL IMPACT MANAGEMENT PLAN
1. This is an initiative that will offer significant benefits to the residents and businesses in Vieux Fort.
Moreover, the improvement of water infrastructure is one critical pillar in securing investment in tourism and other commercial expansion in the south. As a consequence, GOSL should engage in a public
information process to raise awareness of the residents and other critical stakeholders regarding the
proposed development.
2. Notwithstanding the benefits, there are some possible undesirable effects that could occur in the
short term that must be addressed. In addition, it is important that the requisite agencies monitor the Project
and ensure that the potential benefits are realised. To this end, an impact management plan has been drafted that identifies the agencies that would be responsible for monitoring and ensuring that the mitigation
measures are implemented and effective. Table 1 displays the proposed Impact Management Plan.
TABLE 1: PROPOSED IMPACT MANAGEMENT PLAN
Description of impact Management
Task
Responsible
Agency
Monitoring Responsibility Creation of construction- related jobs.
Ensuring that some of the jobs are accessed by male and female residents in Vieux Fort and its environs.
The Contractor and GOSL.
The Contractor and the Ministry or Department of Labour should ensure that the employment process is conducted in a fair manner according to the Laws of Saint Lucia and in a gender-responsive manner, and that the residents in the immediate community are duly informed so that they can take advantage of opportunities.
Potential health impacts from dust vibrations and noise.
On-site management of dust, noise, and vibrations.
The Contractor responsible for building at the site.
1. The developer should prepare a site management plan for approval, monitoring and enforcement by the Development Control Authority.
2. The Ministry responsible for Public Works
and Transport, in collaboration with the Labour Department, should ensure that the site is managed at a level commensurate with local safety and health requirements.
3. The agency with responsibility for
environmental protection should respond to
any complaints that are raised.
Risks to the workers and the public in the construction areas.
On-site safety for construction workers and the public.
The Contractor. The Labour Department should conduct inspections.
Benefits to residents – elimination of fetching and storing water; increased productivity at home and at work; reduction/elimination of the cost of buying bottled water; improved health.
Ensuring that access to the water supply is improved for male and female-headed
households and businesses.
WASCO Inspections should be conducted by the Ministry of Social Transformation and Environmental Health Department in communities that are known to experience
water supply challenges, to ensure that these have been reduced/eliminated.
APPENDIX 4.16 Page 2 of 2
Description of impact Management
Task
Responsible
Agency
Monitoring Responsibility Continued use of rivers for potable water as well as for bathing, washing, and as toilet facility.
Developing and implementing a plan to address the informal housing development.
Ministry of Physical Development and Housing, Ministry of Social Transformation, Local Government and other related
agencies.
Enforcement of the Plan and monitoring to ensure that there is a reduction in unregulated housing.
Benefits to the education system. No more early closure because of water outages; and children attending school on time and with frequency.
Ensuring that access to the water supply is improved to schools in the affected areas.
WASCO Inspections should be conducted by the Ministry of Education and Environmental Health Department in schools that are known to experience water supply challenges, to ensure that these have been reduced/eliminated.
Benefits to businesses – improved productivity and
cost savings on purchasing of water.
Ensuring that access to the water
supply is improved to businesses in the affected areas.
WASCO Inspections should be conducted by the Development Control Authority and the
Ministry of Physical Development and Housing in areas that are known to experience water supply challenges to ensure that these have been reduced/eliminated.
Benefits to housing development – access to distribution lines would facilitate housing and the construction sector.
Ensuring that access to the water supply is improved in the areas earmarked for development.
WASCO Inspections should be conducted by the Development Control Authority and the Ministry of Physical Development and Housing in areas earmarked for housing development to ensure that these have adequate water supply and distribution.
Benefits to tourism – the new system will support some of the proposed development in the south and could enhance investor confidence.
Ensuring that access to the water supply is improved in the areas earmarked for development.
WASCO Inspections should be conducted by the Development Control Authority, Invest Saint Lucia, and the Ministry of Physical Development and Housing in areas earmarked for proposed development, to ensure that these have adequate water supply and distribution.
APPENDIX 4.17
GENDER MARKER ANALYSIS
Criteria Score Description/Code
Analysis
1
Social and gender analysis conducted during preparation and relevant findings of CGA (2011) and social data
from the Trade Adjustment Report duly incorporated into
the appraisal document.
Data 0.5 Sex-disaggregated data included in context analysis.
Engagement 0.5 Representatives from Ministry of Social Transformation (Department of Gender) included in PSC.
Response 1.0 Gender Action Plan included to support implementation to
achieve gender equitable outcomes.
Total 3.0 Code: GM
APPENDIX 4.18
GENDER ACTION PLAN
Project Outputs Activity Planned Responsibility
Overall 1. Consultation meetings are held
for men and women. Separate
meetings will be held with
women, as needed.
2. Data is disaggregated by sex,
for gender monitoring, where
appropriate.
3. Skilled and unskilled work
related to the Project to be
encouraged for women and
youth from affected
communities.
4. Equal pay for men and women
for work of equal type.
5. Safe working conditions for
both men and women workers.
WASCO, consultants.
Consultants.
WASCO, contractors.
Contractors.
WASCO, contractors
Outputs 1-3: Infrastructure developed and
installed.
Project evaluations (formative
and summative) undertaken to
assess extent to which
households (male and female-
headed) in project areas experienced equitable access to
WASCO water.
Consultants.
Outputs 4 and 5: Improved NRW management
and water shed management plan developed.
1. Events held in Vieux Fort
raising awareness about NRW, watershed management, and
gender outcomes (including,
inter alia, health, reduced labour burden, sanitation, and
family nutrition).
2. Behaviour change campaigns
are gender-sensitive and
monitored.
WASCO, WRMA, consultants.
WASCO, MOH
APPENDIX 6.1
THE EXECUTING AGENCY
LEGAL STATUS
1. WASCO was incorporated, as a limited liability company on August 9, 1999,
pursuant to the Companies Act 2008 (the Act). For the purposes of the Act, it is registered
as Company No: 136 of 1999. WASCO has a separate and distinct personality from those
of its directors and shareholders. As an incorporated company, it has the capacity, rights,
powers, and privileges of an individual, save for those commercial activities which are
mentioned in Paragraph 5 of its Articles of Association (the Articles) dated August 9,
1999. WASCO can sue and be sued, and can own and dispose of property in its own name.
MANAGEMENT AND SHAREHOLDING
2. The powers of WASCO are exercised by BOD, who are responsible for the
management of its business and affairs. According to the Articles, WASCO must have a
minimum of two and a maximum of nine directors. It currently has seven directors that
make up its BOD. The directors come from different occupational or professional
backgrounds, however, they have all been appointed by GOSL. WASCO has the authority
to issue unlimited number of shares, and all the shares which it has issued so far are owned by
GOSL.
BOARD OF DIRECTORS
3. In addition to the general management powers given to the BOD above, the BOD has
specific powers given to it in the Schedule to the Articles to borrow money upon the credit
of the company; issue, re-issue, sell or pledge the debt of WASCO; guarantee in the name of
WASCO the performance of an obligation of another person; and encumber by mortgage or
hypothec all or part of the property, present or future of WASCO to secure obligation.
GOVERNMENT CONTROL
4. Although the members of the BOD are appointed by GOSL, and are therefore
remunerated by it, GOSL does not have day to day control over WASCO and there is no
particular Ministry or Minister that overseas WASCO’s day-to-day management, however,
once GOSL has set its national agenda, strategy, and policy on the water sector the BOD
will endeavour to align WASCO’s policy and strategy with that of GOSL.
APPENDIX 6.2
PROJECT MANAGEMENT ARRANGEMENTS
Project Coordinator
Permanent Secretary –
Ministry of Sustainable
Development
Project Steering Committee
General Manager ‒
WASCO
Project Manager ‒
Watershed Management
Manager of Operations ‒ WASCO
Watershed
Management Consultant Project Administrative
Staff
Energy Audit
Consultant Water Audit/
Engineering Consultants Gender Impact
Evaluation Consultant
ID Task Name
1 Board Approval
2 Sign Loan Agreement
3 Project Management
4 Satisfy Conditions Precedent
5 Appoint Project Steering Committee
6 Engage Project Coordinator
7 Engage Engineering Consultants
8 Engineering Supervision
9 Engage Works Contractor
10 Contruction Works
11 Construct Water Production Facilities
12 Construct Transmission Mains
13 Install Storage Tanks
14 Capacity Building
15 Engage Energy Audit Consultants
16 Conduct of Energy Audit
17 Engage Watershed Mangement Consultant
18 Conduct Watershed Management Study
19 Conduct Water Audit
20 Non-Revenue Water Reduction
21 Project Closure
PROJECT IMPLEMENTATION SCHEDULE
2015 2016 2017 2018
Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3
12/11
Project: Vieux Fort Water Suppl
Date: December 2014
Summary Project Summary Manual Task
AP
PE
ND
IX 6
.3
APPENDIX 6.4
PROJECT IMPLEMENTATION SUPPORT PLAN
1. CDB has had considerable experience in the water sector in Saint Lucia and other BMCs within
the Organisation of Eastern Caribbean States. This experience provides the basis for providing implementation support to GOSL. The implementation support will be provided as part of CDB’s project
supervision functions, and will include, among other things:
(a) reviewing implementation progress and achievement of project outcomes;
(b) addressing implementation issues;
(c) monitoring systems to ensure their continued adequacy through monitoring reports, audit
reports, and field visits; and
(d) monitoring changes in risks and compliance with legal agreements, as needed.
The Implementation Support Plan (ISP) will be reviewed annually to ensure that it continues to meet the implementation support needs of the Project. In addition to reviewing implementation progress, ISP aims
at providing technical support to Saint Lucia in the achievement of the results.
2. The strategy for implementation support has been developed based on the design of the Project, its
risk profile, and an assessment of the Borrower (Saint Lucia) and Executing Agency (WASCO).
The strategy remains a flexible tool that may be amended during project implementation in response to the changing needs of the Project and the Borrower/Executing Agency.
Strategy and Approach for Implementation Support
3. Supervision of the Project will be undertaken by a team comprising the lead supervisor, supported
by legal counsel and specialists in the areas of environment; procurement; financial analysis; and social
analysis. Formal supervision and field visits will be undertaken at least semi-annually during the
implementation phase of the Project.
4. The first formal supervision activity will be the Project Launch Workshop (PLW). The objective
of PLW is to review the implementation arrangements, train the project management in the use of CDB’s fiduciary management and procurement systems, and discuss project supervision issues. PLW is scheduled
for the second quarter of 2015, and arrangements will be finalised in consultation with GOSL when
necessary conditions have been satisfied,
5. The training provided during PLW on the Bank’s financial management and procurement
procedures and guidelines will be augmented during the semi-annual supervision visits and support will be
provided on a timely basis to respond to client’s needs.
6. PC will coordinate CDB’s team to ensure that project implementation is consistent with the
requirements as specified in the Procurement Plan, Terms and Conditions and other legal documents. The supervision team will prepare annual Project Supervision Reports identifying the status of project
implementation and any issue requiring the resolution of management. On the completion of the Project,
or after 90% of the funds have been disbursed, Staff will conduct an Exit Workshop to assess project results, discuss implementation issues, and identify lessons. A Draft Project Completion Report (PCR) will be
prepared and discussed with the client during the Exit Workshop. The Final PCR will be validated by the
Office of Independent Evaluation (OIE). Staff will prepare a management response to OIE’s Validation
APPENDIX 6.4
Page 2 of 3
Report. The Validation Report and management’s response will be presented to the Audit and Post-
Evaluation Committee.
TABLE 1: STAFF SKILLS REQUIRED
Period
Focus
Skills and Resources Estimate
January –
December
2015
Specific 1. PLW 2. Support in satisfying Conditions
Precedent.
3. Review of contract documents, evaluation reports, and draft
contracts.
4. (4) Provide procurement support relating to draft procurement
notices, resolving procurement
bottlenecks, etc.
General 1. Monitor Project Budgeting and
Allocations. 2. Monitor Project Physical Works
progress and quality, including
field trips. 3. Monitor Project Results
Framework.
4. Provide technical support to PC and Executing Agency.
5. Preparation of annual Project
Supervision Report.
6. Review and certification of
requests for disbursement.
7. Review of TA reports. 8. Review of Monthly and Quarterly
Reports.
Lead Project Supervisor 6 weeks
Legal Counsel 1 weeks
Financial Analyst 1 weeks
Environmental
Specialist 1 week
Social Specialist 1 week
Gender Specialist 0.5 weeks
Procurement Specialist 1 week
Administrative 2 weeks Assistant
Divisional Secretary 1 weeks
APPENDIX 6.4
Page 3 of 3
Period
Focus
Skills and Resources Estimate
January –
December 2016
General 1. Monitor Project Budgeting and
allocations.
2. Monitor Project Physical Works
progress and quality, including field trips.
3. Monitor Project Results Framework 4. Provide technical support to PC and
Executing Agency. 5. Preparation of annual Project
Supervision Report.
6. Review and certification of requests for
disbursement.
7. Review of TA reports. 8. Review of Monthly and Quarterly
Reports.
Lead Project Supervisor
Legal Counsel
Financial Analyst
Environmental Specialist
Social Specialist
Gender Specialist
Administrative Assistant
Divisional Secretary
8 weeks
0.5 weeks
0.5 weeks
2 weeks
2 weeks
0.5 weeks
2 weeks
1 week
January
2017–
June 2018
Specific 1. Review PC and consultants final reports. 2. Conduct Exit Workshop and complete
PCR.
General 1. Monitor Project Budgeting and
Allocations.
2. Monitor Project Physical works progress
and quality, including field trips.
3. Monitor Project Results Framework. 4. Provide technical support to PC and
Executing Agency.
5. Preparation of annual Project
Supervision Report. 6. Review and certification of requests for
disbursement.
7. Review of TA reports. 8. Review of Monthly and Quarterly
Reports.
Lead Project Supervisor
Legal Counsel
Financial Analyst
Environmental Specialist
Social Specialist
Gender Specialist
Administrative Assistant
Divisional Secretary
10 weeks
1 week
2 weeks
2 weeks
2 weeks
0.5 week
2 week
1 weeks
APPENDIX 6.5
DUTIES AND RESPONSIBILITIES OF PROJECT STEERING COMMITTEE
1. OBJECTIVE
1.1 PSC is to provide a mechanism for support, feedback, guidance, stakeholder participation and inter˗agency coordination during project implementation, and to act as a catalyst for an ongoing
coordination mechanism after implementation has been completed. The Committee will be required to meet
as required, but not less than quarterly.
2. SCOPE OF SERVICES
2.1 The duties of PSC shall be as follows:
(a) familiarisation with the arrangements for project implementation, including the intended
project outcome, outputs, scope, financing arrangements, reporting requirements,
implementation schedule, and other details contained in the appraisal report and financing agreements;
(b) monitor progress in implementation of the Project towards achievement of the project output and project outcome;
(c) ensure that potential threats to timely project implementation are identified and addressed;
(d) facilitate the taking of policy decisions by the relevant authorities to ensure timely fulfillment of loan conditions;
(e) review work plans on a semi-annual basis and ensure that recommendations with respect
to adequate budgetary allocations are made, procurement activities are executed as scheduled, and that adequate controls ;
(f) ensure that stakeholder participation is appropriate and sustained throughout implementation and that stakeholder expectations are addressed;
(g) ensure that the Project remains aligned to the policy and strategic objectives of GOSL;
(h) discuss the perspective of the entities from which its members are drawn on various issues,
informed by the consultation of PSC members with their respective organisations;
(i) monitor the performance of the Project Implementation Team; and
(j) champion the Project, advocating for achievement of the project outcomes.
3. COMPOSITION
3.1 PSC, for the duration of the Project, will be chaired by the Permanent Secretary, Ministry of
Sustainable Development, Energy, Science and Technology. In addition, for the duration of the Project, PSC shall comprise the following members:
(a) PC;
(b) Managing Director, WASCO;
APPENDIX 6.5 Page 2 of 2
(c) Head of WRMA, or his/her nominee;
(d) Permanent Secretary, Department of Planning and National Development, or his/her nominee;
(e) Permanent Secretary, MOH, or his/her nominee;
(f) Permanent Secretary, Ministry of Tourism, or his/her nominee;
(g) Representative, Vieux Fort Chamber of Commerce; and
(h) Representative, Government Press and Public Relations.
APPENDIX 6.6
ESTIMATED QUARTERLY DISBURSEMENT SCHEDULE
($'000)
Year
Quarter No
OCR
Grant
OCR
CALC
SFR
Finance Charges
Total
Cumulative
IDC CF -
2015 2 - - - - - 77 77 77
3 - - 1,489 662 11 73 2,235 2,312
4 - - 1,489 662 22 69 2,242 4,554
Sub-total - - 2,978 1,324 33 219 4,554 4,554
2016 1 348 102 2,666 1,256 45 72 4,489 9,043
2 348 102 2,666 1,256 68 65 4,505 13,547
3 348 102 2,666 1,256 92 57 4,521 18,068
4 348 102 2,666 1,256 115 50 4,537 22,605
Sub-total 1,391 406 10,665 5,024 320 244 18,051 22,605
2017 1 338 125 3,106 1,577 143 41 5,330 27,934
2 338 125 3,106 1,577 170 33 5,349 33,283
3 338 125 3,106 1,577 198 24 5,368 38,651
4 338 125 3,106 1,577 226 15 5,387 44,037
Sub-total 1,351 499 12,424 6,309 737 113 21,433 44,037
2018 1 716 - 2,343 1,383 253 8 4,703 48,740
2 716 - 2,343 1,383 280 (0) 4,723 53,463
3 - - - - 282 (0) 282 53,745
4 - - - - 284 (0) 284 54,029
Sub-total 1,432 - 4,687 2,767 1,099 8 9,991 54,029
Total 4,173 905 30,754 15,423 2,189 584 54,029 54,029
APPENDIX 6.7
PROCUREMENT PLAN
This information is withheld in accordance with one or more of the exceptions to
disclosure under the Bank’s Information Disclosure Policy.
ANNEX TO APPENDIX 6.7
COVENANT OF INTEGRITY
to the Government of Saint Lucia
from a Tenderer, Contractor, Supplier or Consultant to be attached to its Tender
(or to the Contract in the case of a negotiated procedure)
“We declare and covenant that neither we nor anyone, including any of our directors, employees, agents,
joint venture partners or sub-contractors, where these exist, acting on our behalf with due authority or
with our knowledge or consent, or facilitated by us, has engaged, or will engage, in any Prohibited Conduct (as defined below) in connection with the tendering process or in the execution or supply of any
works, goods or services for [specify the contract or tender invitation] (the “Contract”) and covenant to
so inform you if any instance of any such Prohibited Conduct shall come to the attention of any person in
our organisation having responsibility for ensuring compliance with this Covenant.
We shall, for the duration of the tender process and, if we are successful in our tender, for the duration of
the Contract, appoint and maintain in office an officer, who shall be a person reasonably satisfactory to you and to whom you shall have full and immediate access, having the duty, and the necessary powers, to
ensure compliance with this Covenant.
If: (i) we have been, or any such director, employee, agent or joint venture partner, where this exists,
acting as aforesaid has been, convicted in any court of any offence involving a Prohibited Conduct in
connection with any tendering process or provision of works, goods or services during the five years immediately preceding the date of this Covenant; or (ii) any such director, employee, agent or a
representative of a joint venture partner, where this exists, has been dismissed or has resigned from any
employment on the grounds of being implicated in any Prohibited Conduct; or (iii) we have been, or any of our directors, employees, agents or joint venture partners, where these exist, acting as aforesaid has
been excluded by the Caribbean Development Bank (CDB), the European Union institutions or any major
Multi-lateral Development Bank (including World Bank Group, African Development Bank, Asian
Development Bank, European Bank for Reconstruction and Development, European Investment Bank or Inter-american Development Bank) from participation in a tendering procedure on the grounds of
Prohibited Conduct, we give details of that conviction, dismissal or resignation, or exclusion below,
together with details of the measures that we have taken, or shall take, to ensure that neither this company nor any of our directors, employees or agents commits any Prohibited Conduct in connection with the
Contract [give details if necessary].
In the event that we are awarded the Contract, we grant the Government of Saint Lucia (GOSL), CDB,
the European Investment Bank (EIB) and auditors appointed by any of them, as well as any authority
or European Union institution or body having competence under European Union law, the right of
inspection of our records and those of all our sub-contractors under the Contract. We accept to preserve these records generally in accordance with applicable law but in any case for at least six (6) years from
the date of substantial performance of the Contract.
ANNEX TO APPENDIX 6.7 Page 2
For the purpose of this Covenant, Prohibited Conduct includes3:
(a) Corrupt Practice is the offering, giving, receiving or soliciting, directly or indirectly, of
anything of value to influence improperly the actions of another party;
(b) Fraudulent Practice is any act or omission, including a misrepresentation, that
knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation;
(c) Coercive Practice is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of any party to influence improperly the actions of a
party;
(d) Collusive Practice is an arrangement between two or more parties designed to achieve
an improper purpose, including influencing improperly the actions of another party;
(e) Obstructive Practice is: (a) deliberately destroying, falsifying, altering or concealing of
evidence material to the investigation; and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or
from pursuing the investigation; or (b) acts intended to materially impede the exercise of
CDB or the EIB’s contractual rights of audit or access to information or the rights that any banking, regulatory or examining authority or other equivalent body of the European Union
or of its Member States may have in accordance with any law, regulation or treaty or
pursuant to any agreement into which the EIB has entered in order to implement such law, regulation or treaty;
(f) Money Laundering as defined in EIB’s Anti-Fraud Policy;
(g) Terrorist Financing as defined in EIB’s Anti-Fraud Policy;
(h) Corrupt practices, fraudulent practices, collusive practices and coercive practices as
defined in CDB’s Guidelines for Procurement; and
(i) Project Owner means GOSL.
3 Most definitions are those of the IFI Anti Corruption Task Force’s Uniform Framework of September 2006.
ANNEX TO APPENDIX 6.7
Page 3
Note: This Covenant must be sent to CDB and EIB together with the contract in the case of an
international procurement procedure (as defined in CDB’s Guidelines for Procurement). In other cases, it must be kept by GOSL and made available upon request from CDB or EIB. The Covenant is not mandatory for
contracts awarded prior to CDB or EIB involvement in the Project. Nevertheless, recipients of CDB financing
who are seeking or may seek to utilise resources provided by EIB to CDB in a project, are advised to include it in
order to promote integrity among the tenderers/contractors. This is particularly relevant in the case of a recipient of CDB financing who has already implemented a number of previous CDB-financed projects and is considering
further CDB financing utilising resources provided by EIB to CDB.
Name:
In the capacity of:
Signed:
Duly authorised to sign the bid for and on behalf of:
Dated on: day of
APPENDIX 6.8
REPORTING REQUIREMENTS
Report Implementation Frequency Deadline for Submission Responsibility
1. Monthly progress reports on
Infrastructure Works components
by the Engineering Consultants.
Monthly Within three weeks of the end of each
calendar month commencing one
month after engagement.
PC
2. Monthly reports on progress of
project implementation, prepared
by PC.
Monthly Within one week of the end of each
month, commencing one month after
appointment of PC.
PC
3. Report on Investment Cost (Sample
Guidelines in Annex 1).
Quarterly Within six weeks of the end of each
quarter commencing with the quarter
following the appointment of PC,
until construction is completed.
PC
4. Consultants Reports for the
implementation of Water Audit,
Energy Audit, and Watershed
Management TAs.
- Within one week after the submission
deadline stipulated in the respective
TOR and contracts.
PC
5. Completion Report for
Infrastructure Works prepared by
the Engineering Consultants
(including as-built drawings).
- Within three months of the date of
issue of a certificate of practical
completion for infrastructure contract.
PC
6. PC’s Project Implementation
Completion Report.
- Within three months of practical
completion.
PC
7. Report on Condition Assessment of
Infrastructure Works.
Annually Commencing six after certificate of
practical completion issued.
WASCO
REPORT ON INVESTMENT COST OF PROJECT
($’000)
Elements of Project
Expenditure
for this
Quarter
Cumulative
Expenditure
to Date
Projected Expenditure for
the Quarter
Estimated
Expenditure
to Complete
Project
Latest
Estimate of
Expenditure
Project
Estimate
as per
Appraisal
Report
Variance
Favourable/
(Adverse)
Comments/Reasons
for adverse
Variance and
Financing
Proposals to Meet
Cost Overrun
Ending
Ending
Ending
(1) (2) (3) (4) (4) (4) (5) (6) (7) (8) (9)
1. Infrastructure 42,974
2. Services 9,109
Sub total 52,083
3. Physical and Price Contingencies 10,403
4. Finance Charges 2,773
Total Project Costs 65,259
AN
NE
X T
O A
PP
EN
DIX
6.8
ANNEX TO APPENDIX 6.8
Page 2
GUIDELINES FOR COMPLETION OF
REPORT ON PROGRESS OF INVESTMENT COST
1. Elements of Programme - The elements of the Programme as outlined in the Appraisal Report
must be recorded in this column. If it becomes necessary to further sub-divide the main elements
of the Programme, then the sub-elements should be grouped to facilitate the determination of the
expenditure related to the main elements identified in the Appraisal Report.
2. Expenditure for this Quarter - The expenditure incurred in the quarter to which the report relates
in respect of each element of the Programme must be recorded in this column.
3. Cumulative Expenditure to Date - The expenditure incurred in respect of each element of the
Programme from the commencement of the Programme to the end of the quarter to which the
report relates must be recorded in this column.
4. Projected Expenditure for Quarter - An estimate of the expenditure to be incurred in each of the
next three quarters must be recorded in the columns 41, 42, and 43.
5. Estimate of Expenditure to complete Programme - This column should be completed only in
respect of those elements of the Programme, construction/installation of which stretches beyond
three quarters from the end of the quarter to which the report relates. Where a programme
extends over more than one year - four quarters - an estimate of the expenditure to be incurred in
the period subsequent to the year must be recorded in this column.
6. Latest Estimate of Expenditure - The amounts to be recorded in this column should be derived by
adding columns 3, 4123, and 5. The amounts recorded in this column should be the best estimate
of expenditure to be incurred in respect of each element of the Programme. These amounts may
be less or greater than the appraised expenditure.
7. Programme Estimates as per Appraisal Report - The estimate of expenditure to be incurred in
respect of each element of the Programme, as outlined in the Appraisal Report, must be recorded
in this column.
8. Variance - The difference between columns 6 and 7 must be recorded in this column. Where the
amount in column 6 is less than that in column 7, a favourable variance results. An adverse
variance results where the amount in column 6 is greater than that in column 7.
9. Comments - An explanation should be given for each variance which is more than 10% of the
programme estimates as per Appraisal Report.
APPENDIX 7.1
EXCLUDED ACTIVITIES
GOSL shall not finance, with the proceeds of the Loan, any activity involving:
(a) ammunition and weapons, military/police equipment or infrastructure. Includes explosives
and sporting weapons;
(b) projects which result in limiting people’s individual rights and freedom, or violation of
human rights, as per EIB’s Statement of Environmental and Social Principles and Standards, in particular 6, 46 and 47;
(c) projects unacceptable in environmental and social terms, such as projects in protected
areas, critical habitats and heritage sites or without adequate compensation/mitigation, as per EIB’s Statement of Environmental and Social Principles and Standards, in
particular 58, 71 and 72;
(d) ethically or morally controversial projects, such as sex trade and related infrastructure,
services and media, animal testing, gambling and related equipment, hotels with in-house
casinos or tobacco;
(e) activities prohibited by national legislation (only where such legislation exists); and
(f) projects with a political or religious content.
FIGURE 2.1
PROJECT LOCATION MAP
Vieux Fort Water Supply Area