Business Case and Intervention Summary
Intervention Summary
Title: Bulawayo Emergency Water Augmentation Programme (BEWAP)
What support will the UK provide?
The UK Government through DFID will provide £3,500,000 between February and
December 2013 to a consortium of three NGOs led by World Vision to increase the
supply of clean water and adequate sanitation facilities to around 140,000 vulnerable
residents of Bulawayo, Zimbabwe’s second city, which is suffering from severe water
shortages. The rest of Bulawayo’s population (around 0.51 million more) will also
benefit, but less directly, from the programme. The intervention will be delivered
through: the construction and repair of boreholes; rehabilitation of water treatment
and sewage plants; construction of elevated water tanks and sanitation facilities;
replacement of pipes; education programmes; and a strategic appraisal and study.
Why is UK support required?
This programme was not envisaged under DFID’s 2011-15 Operational Plan for
Zimbabwe and reflects the City of Bulawayo is experiencing unexpected and chronic
water shortages with the problem exacerbated by an aging distribution system.
Bulawayo is located in the driest, most drought-affected part of Zimbabwe and by
the end of 2012 most of its reservoirs were dry. Following a 08 November 2012
appeal for assistance by the Mayor of Bulawayo from development partners in
addressing the chronic water shortage as evidenced by the 3 day water rationing, a
meeting was held in Bulawayo on 13 December 2012. The project proposal and
associated funding request received from the project partner, World Vision
International, captures much of their experience gained under the recently
concluded AusAID funded project in Bulawayo and was prompted by this 08
November letter. It contained convincing arguments for additional support in new
technical areas with an assessment of risks and benefits. Many of the WVI points
were captured in the Business Case. In addition WVI were in a position to respond
immediately to the urgency of the situation.
The rainy season of 2011-12 saw inadequate water flows in the catchment areas
feeding the reservoirs that supply water to Bulawayo’s treatment works. This
resulted in water and sewage was not being efficiently and safely transferred to or
from treatment works.
Up to 14 December 2012 only 51% of the seasonal average had fallen, suggesting
that this rainy season could be worse than last year. This is also the period of the
year when urban areas are most vulnerable to cholera and other water borne
diseases. On 17th January 2013, BCC’s deputy director of engineering services
advised the five supply dams had received a paltry 1,5% rain-fed inflows translated
to about four million cubic meters or 27 day’s supply of the city's average
consumption of 145 mega litres a dayi.
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In June 2012, the average daily consumption rate was 135 ML/day. This supply level
couldn’t be sustained through to the next rainy season so in July, Bulawayo City
Council (BCC) implemented 72 to 96 hours residential water rationing (water every
third or fourth day). This has brought usage down to 98 ML/day. Areas that have
major concentrations of industry, commercial centres or hospitals are exempt from
water cuts, but schools are not and the allocation for industry and commerce is 60%
lower than in June. Since the rationing program began, the percentage of processed
water lost due to infrastructure breakdowns has increased to 36% and the number of
pipe bursts to 4 per day.
In 2008/09 Zimbabwe had the worst recorded cholera outbreak in its history: over
99,000 cases; nearly 4,300 deaths and a case fatality rate (CFR) of 4.2%. In 2011
there were 1,140 cases and 45 deaths (CFR 4.0%) and in 2012 just 23 cumulative
cases and 1 death. But the countrywide breakdown of water and sewage treatment
systems means water-borne disease outbreaks remain endemic and an outbreak of
cholera is always a possibility. During the first 11 months of 2012 throughout
Zimbabwe there were 5,805 typhoid cases, 40,745 Dysentery cases (with 22
institutional deaths) and 437,985 Diarrhoeal cases (with 269 institutional deaths).
The actual numbers will be much higher taking into account non-recorded cases.
The reported cases of watery diarrhoea in the BCC administered health centres
(excluding the three Ministry of Health controlled City Hospitals).
Cases in Jan-13
Cases in Jan-12 for comparison
January -December 2012
Reported Cases in Bulawayo 13 Health Centres
Under 5 years
Above 5 years
Total
270
284
554
232
157
389
2,778
1,977
4,675
3,402
1,725
5,275
4,030
2,465
6,495
2,937
2,534
5,471
4,646
2,896
7,542
January -December 2011
January -December 2010
January -December 2009
January -December 2008
Water based cleanliness is vital for the suppression of cholera and other diarrhoeal
diseases, but is undermined where the supply is only at best 40% of requirement.
With rainwater often being the transmission vector for disease, plus unsanitary
conditions and a grossly inadequate supply of water, the likelihood of the return of
cholera is greatly increased by water shortages. The communities in the high density
suburbs (poorest areas) of Bulawayo have limited (if any) alternative safe sources of
supply and so are at greatest risk of being at the centre of any outbreaks of
waterborne diseases. A “Cholera Preparedness Assessment” (part of this project) is
due to start in January to determine how well positioned and equipped the health
services are to respond to an urban outbreak of the disease.
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What are the expected results?
By addressing infrastructure gaps and promoting hygiene education, this programme
will greatly reduce the risk of the return of cholera to Bulawayo in 2013. But should
cholera occur, then thanks to this intervention, the Health Services will be better able
to reduce the spread of the disease and related illness and fatalities. The additional
water and sanitation facilities provided and the repairs to the sewage reticulation
system will reduce the risk of return of cholera beyond 2013 (WVI will work with BCC
and other relevant parties to ensure operation and maintenance issues are
adequately addressed). The improved school sanitation will encourage attendance
especially of girls and disabled children. The specific expected results are:
1.
Rapid appraisal of the Cholera preparedness response of the 17 BCC health
facilities in terms of adequacy of medical stocks, equipment and training;
2.
Seven new high-yield (each expected to produce around 20 m3 per day)
boreholes constructed to augment current Bulawayo water supplies directly to 7
institutions;
3.
Seven existing high yielding boreholes upgraded(each expected to produce
around 20 m3 per day) to increase water supplies into the existing network;
4.
Bulawayo’s largest water treatment works (Criterion)restored to 100% capacity
thereby doubling its output to 180 Mega litres per day;
5.
Eighty elevated tanks (10,000 litre capacity each)constructed in 47
Government Primary Schools, 26 Government Secondary Schools, 7 Social Welfare
and community centres (including homes for the elderly, orphanages and facilities for
the disabled)and connected to the water supply mains and the institutions’ own water
system to ensure some supply is maintained during periods of water outage;
6.
60 to 70 kilometres of pipeline replaced to reduce bursts, leaks and losses;
7.
Three outfall sewers and two sewage treatment ponds rehabilitated;
8.
Improved levels of school sanitation through construction and repair of facilities
to ensure all 73 schools deliver a maximum user ratio and hand washing facility ratio
of 1 to 20 girls, and 1 toilet and 1 urinal to 50 boys, including a disabled toilet for both
boys and girls;
9.
Detailed study made of the groundwater potential in Bulawayo and adjacent
aquifers currently being used or earmarked for future city supplies, including a
geophysical survey to determine safe and sustainable extraction rates and any water
quality constraints; and
10. Sanitation and hygiene education programmes delivered to 76,000 children in
73 schools, and a water, sanitation and water conservation message to all Bulawayo.
92% of the results will be attributable to DFID as the NGO consortium will provide
£287,500 of their own funds for the programme. DFID will conduct regular monitoring
of progress and the post-completion assessment will confirm whether or not the
expected results were achieved.
Business Case
Strategic Case
A. Context and need for a DFID intervention
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The City of Bulawayo is experiencing its worst shortage of stored and supplied water
since 2008. During the current 2012-13 rainy season only 51% of the seasonal
average (up to 14th December 2012) had fallen and most of this will not be used to
recharge the empty or near-empty reservoirs. The lack of stored water has led to 7296 hour water rationing which is designed to maintain supply on a rotational basis.
But this rationing has brought with it three main related challenges.
First, when pipes are not supplying water, the water pressure in the pipes drops to
zero. The return of the water stresses the pipes through the sudden rise in air
pressure in advance of the returning water, causing daily leaks and bursts and
ultimately water loss and wastage. These surges in pressure are not normally a
problem for pipes in good condition, but in Bulawayo many of the pipes have outlived
their economic life and are weak and prone to bursts and should be replaced. These
daily leaks put a bigger burden on the emergency maintenance crew who already
have limited resources to respond. The opening on 26 November 2012 of the
Bulawayo City Council (BCC) “Call Centre” has increased the opportunity for the
public to report leaks, with a corresponding increase in expectations of a rapid
response. This has put the spotlight on the BCC to detail and report the time taken in
responding and repairing the leaks and times are reported in council meetings as a
monthly performance indicator.
Second, the design of the sewage system is based on all pipes receiving enough
water every day to flush out debris. This has resulted in the BCC promoting the
widely reported “Flush Hour” where all residents flush their toilets at the same time.
However, this will only work where there are no protracted delays in supply to
households and the 72-96 hour water rationing for most of Bulawayo undermines this
initiative. The lack of flows in the sewage pipes has led to solidification and
consequential blockage of systems, leading to overflows, bursts, and an increased
risk of contamination of water supplies.
Third, BCC has reported a decrease in revenue because of the reduced water sales
and a reduction in the satisfaction of customers in the levels of service and their
willingness to pay due to rationing, visible losses due to leaks and bursts, and the
failure of the sewage systems in residential areas. Less revenue means fewer
resources to invest in repairs and upgrades.
Overall therefore there is a significant and increased risk to residents’ health through
reduction in water supply and the possibility of ruptured sewage lines. Previous water
shortages in 1992 and 2008 led to increased cases of diarrhoea, typhoid, and
cholera. Without enough safe water, residents will use less water for sanitary
cleansing (prioritising instead the washing and preparation of food), and/or look to
unsafe sources to meet their needs which increases the risk of contracting diarrhoea
and other fast spreading enteric and waterborne diseases. Vulnerable groups such
as the elderly, disabled, sick and very young are at most risk as they are likely to be
less able to access clean water away from their homes.
School children are particularly likely to spread disease during play and other
interactions if they have inadequate sanitation facilities and water supply both at
home and at school. Schools in Bulawayo were not designed for the current number
of students enrolled and as a result the sanitation facilities are insufficient. Many
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schools operate double shifts of pupils so putting a greater strain on the infrastructure
and increasing the opportunity for disease transmission. Schools are not exempt from
the current water cuts and so may go without water supplies for 72 to 96 hours.
Urban schools do not generally have easy access to alternative water sources and
many have no facilities to store water when it is available in order to maintain
hygienic conditions at the schools when water is cut. There is therefore a great need
to provide permanent storage facilities at all 73 schools to help them cope with the
current and future water outages. Six social welfare institutions (including homes for
the elderly, orphanages and facilities for the disabled) and community centres are in
the same situation.
A further challenge is where Bulawayo’s water should come from in the long term.
Groundwater is considered the viable alternative to surface treated supplies.
Whereas there is potential for future extraction from underground, the recent capacity
of the aquifer to produce water given the low rainfall of recent years is uncertain and
so a better understanding of the sustainability and limits to extractions rates is
urgently required to help find a longer-term solution to the city’s water shortages.
Zimbabwe is a fragile and conflict-affected state that has experienced significant
violence along regional and ethnic lines in recent decades. Bulawayo and the
Ndebele people have been particularly affected. There is no evidence so far of the
current water shortages turning tensions among communities into conflict or violence.
But if the problems are left unaddressed or there is a major outbreak of fatal
waterborne diseases then that could change. The programme is therefore likely to
help reduce that likelihood and is certainly not expected to make things worse.
The Bulawayo City Council and the Ministry of Water Resources Development and
Management have been trying to address the deteriorating water supply situation,
but with very limited resources. In recent months senior figures in the Bulawayo and
central government have appealed to donors including the UK to provide urgently
support to address the long- and short-term water and sanitation needs of Bulawayo,
but none have responded with concrete offers. Although this programme was not
envisaged in DFID’s 2011-15 Operational Plan for Zimbabwe, water and sanitation is
a key pillar of DFID’s work in Zimbabwe (mainly in rural areas) and elsewhere in the
world. DFID has become increasingly active in the water sector in Zimbabwe in the
past 12 months and is well placed to respond. Our full-time infrastructure adviser
meets key government, donor and non-governmental players in the sector on a
weekly basis and has made several trips to Bulawayo in recent months.
B. Impact and Outcome that we expect to achieve
This programme will contribute to the achievement of the MDGs (see table below). At
impact level this programme will contribute to a reduction in morbidity and mortality
due to WASH related diseases such as cholera and diarrhoea in high risk areas of
Bulawayo. The programme also aims to significantly improve the lives of poor women
and girls through, for example, a reduction in water borne disease cases reported in
under-5s and an increase in water production and available for consumption by
90,000 m3 per day.
Millennium Development
Goal
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Project
Contribution
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1. Eradicating extreme
poverty and hunger,
minor
Assists in freeing time for
more productive activities.
2. Achieving universal
primary education,
important
3. Promoting gender equality
and empowering women,
important
4. Reducing child mortality
rates,
important
5. Improving maternal health,
important
6. Combating HIV/AIDS,
malaria, and other
diseases,
important
7. Ensuring environmental
sustainability, and
important
Attendance of children at
school–especially girls
expected to increase due to
improved water and
sanitation facilities.
Attendance of girls expected
to increase due to improved
sanitation facilities
Improved water quantities
and quality will reduce
incident of diarrheal disease.
Hygiene in health centers will
improve as a result of
increased water.
Reduction in stagnant
pooling of sewage will
prevent mosquitoes and
transmission of diarrheal
diseases.
Environmental pollution from
sewage spills controlled.
Correct extraction rates for
sustainability of groundwater
resources established.
8. Developing a global
partnership for
development
Not
applicable
As an outcome, the programme will enable communities to continue to have access to
water and sanitation facilities, practice improved health and hygiene behaviour and
benefit from improved collection and storage of safe drinking water, hand washing
and use of improved sanitation facilities.
The programme focuses on the needs of the poor and vulnerable (e.g. people with
disabilities, the aged and chronically ill) in the high density, low-income urban
communities in Bulawayo with the lowest WASH access who are at highest risk from
water borne diseases. But it will also campaign for behaviour change in high-income,
low density areas where large amounts of water are used for gardens, swimming
pools, car-washing etc. Any reduction in demand in these areas will increase supplies
in the poorer areas, even where such supplies are coming from privately owned
boreholes often in the belief that groundwater is unlimited and free.
Ward
Households
Pop
Primary
Sch
Sec
Sch
Children Enrolled
Boys
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6
Girls
Total
enrolled
year
2011
14 February 2013
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Totals
3,867
7,240
8,018
7,380
5,303
3,479
4,802
5,830
7,187
7,605
4,697
6,789
5,130
5,200
3,089
4,170
4,195
5,928
5,275
4,547
7,010
4,798
4,909
6,011
6,038
5,134
7,450
11,342
4,669
167,092
12,258
27,824
29,920
25,112
18,757
13,404
17,910
24,260
27,836
29,436
19,249
26,674
19,763
20,588
12,876
16,923
17,267
22,941
20,842
19,029
28,473
19,447
19,500
23,847
24,987
21,196
31,259
45,348
18,749
655,675
3
5
6
3
3
2
1
3
2
2
1
4
1
1
1
1
2
1
4
-
1
1
1
47
1
1
26
4
1
2
2
1
1
2
1
1
1
1
1
1
1
1
1
2,165
2,280
1,378
910
3,335
1,542
208
3,058
3,381
1,430
1,056
3,425
529
1,548
266
651
1,295
1,835
1,082
3,223
664
248
695
807
1,079
38,090
2,615
2,304
1,449
884
2,987
1,788
222
3,214
3,722
1,602
1,190
3,652
561
1,681
247
824
1,443
1,968
1,194
3,328
698
248
762
925
1,137
40,645
4,780
4,584
2,827
1,794
6,322
3,330
430
6,272
7,103
3,032
2,246
7,077
1,090
3,229
513
1,475
2,738
3,803
2,276
6,551
1,362
496
1,457
1,732
2,216
78,735
Specifically it is anticipated that the following results will be achieved:
1.
Rapid appraisal of the Cholera preparedness response of the 17 BCC
health facilities in terms of adequacy of medical stocks, equipment and
training;
2.
Seven new high yield boreholes constructed to augment current Bulawayo
water supplies directly to seven health facilities;
3.
Seven existing high yielding boreholes upgraded to increase water supplies
into the existing network;
4.
Bulawayo’s largest water treatment works (Criterion) restored to 100%
capacity thereby doubling its output to 180 Ml/day;
5.
80 elevated tanks (10,000 litre capacity each) constructed in 47
Government Primary Schools, 26 Government Secondary Schools, 7 Social
Welfare and community centres (including homes for the elderly,
orphanages and facilities for the disabled)and connected to the water
supply mains and the institutions’ own water system to ensure some supply
is maintained during periods of water outage. 80,000 people (including
76,000 children are expected to benefit);
6.
60 to 70 kilometres of pipeline replaced to reduce bursts, leaks and losses;
7.
Three outfall sewers and two sewage treatment ponds rehabilitated;
8.
Improved levels of sanitation through construction of facilities at 60 out of 73
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schools to deliver a maximum user ratio and hand washing facility ratio of 1
to 20 girls and 1 toilet and 1 urinal to 50 boys, including a disabled toilet for
both boys and girls;
9.
Detailed study made of the groundwater potential in Bulawayo and adjacent
aquifers currently being used or earmarked for future city supplies, including
a geophysical survey to determine safe and sustainable extraction rates
and any water quality constraints; and
10. Sanitation and hygiene education programmes delivered to 76,000 children
from 73 schools, and a wider water, sanitation and water conservation
message to the whole of Bulawayo.
Appraisal Case
A. What are the feasible options that address the need set out in the Strategic
case?
Option 1. The 7 December 2012 proposal from a consortium of NGOs
comprising World Vision International (lead), MedAir (Switzerland) and
Dabane Trust (Bulawayo) is financed through an Accountable Grant.
The work will be broken down into the 10 areas set out above and the work shared
out in the consortium according to their experience and expertise (details below).
It would take around a minimum of five months to run a competition and contract a
supplier. So open competitive tendering is dismissed given the urgency of the
situation. The consortium partners are well established with a proven history with
DFID or other funding mechanisms in Zimbabwe. Subsequent payments after the
initial advance will be linked to progress against delivery of results.
World Vision International
World Vision International has over four years’ experience of WASH programming in
Bulawayo and strong and active partnerships with BCC and other stakeholders,
enabling good coordination with partners and rapid implementation of planned
interventions. WVI is the chair of the BOWSER Steering Committee that will become
the Bulawayo Water Steering Committee. Through the BOWSER project WVI has
been working closely with National ministries, BCC, Bulawayo Sewage Task Force
(BSTF), the Dabane trust, twinning relationship with Ethekwini Municipality’s WASH
department (Durban) and private sector providers to reduce waterborne diseases for
450,000 people through improved sewerage and water supply systems as well as an
improved customer care and financial sustainability of BCC in the provision of such
services. In addition WVI has a strong WASH team including engineers and technical
advisors on the ground who are implementing similar projects and large grants. Under
this project WVI will be doing the major infrastructure activities, including rehabilitating
Criterion water works, replacing burst and aging pipes, and rehabilitating outfall
sewers and ponds. WVI also has a central Programme Partnership Agreement with
DFID Headquarters.
Medair
Medair has been implementing a wide range of both urban and rural WASH projects
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in Zimbabwe since 2010. In the town of Marondera, Medair rehabilitated the water
treatment plant providing 120,000 residents with clean water. In Gokwe District,
Medair rehabilitated the town’s water supply system, drilled boreholes and
rehabilitated wells in order to increase water supplies for 25,065 residents of Gokwe
town. In rural Gokwe, MedAir focused on rehabilitation and digging of new wells,
installing Rainwater Harvesting Systems at schools and conducting Participatory
Health and Hygiene Education (PHHE) thereby reducing the risk of water borne
disease for 32,580 beneficiaries. Medair is currently implementing a rural WASH
project in the districts of Mangwe and Bulilima in Matebeleland South (adjacent to
Bulawayo) by rehabilitating boreholes, providing rainwater harvesting systems at 30
schools and clinics and conducting PHHE in the schools in order to reduce the risk of
waterborne disease for some 126,000 beneficiaries. Under this project Medair will be
undertaking the installation of the water storage tanks at the strategic institutions as
well us conducting the PHHE within the schools.
Dabane Trust
Dabane has considerable capacity and experience with urban based WASH
initiatives. As a local NGO with a locally based Board of Management Dabane has the
capacity to engage in emergency initiatives, rapidly and positively. Dabane has very
well established links with local authorities including the Bulawayo Mayor, Town Clerk,
Bulawayo Governor, Ministry representatives, Bulawayo senior engineers and
implementing technicians. Dabane’s strength in effective operation and message
delivery lies in an ability to connect to and work with the local Ward Councillors and
Residents Associations. Dabane also has a strong practical and technical team with a
determined approach to delivering effective, quick and meaningful change. For
example, Dabane’s quick response to introduce high pressure jetting equipment to
significantly improve and increase the clearing of some 20,000 metres of the city’s
sewage reticulation system earned the praise and respect of residents and City Hall.
Dabane was a founder member of the Bulawayo Sewage Task Force (BSTF), an
amalgam of Bulawayo City Council, NGO’s and private industry which led to the
BOWSER programme. It has a place on the Water and Sewage Steering Committee
and continues to interact and co-ordinate with all main parties presently involved.
Under this project Dabane Trust will be conducting the groundwater survey as well as
completing school sanitation activities, including disabled students.
Option 2. Commit funding through GIZ/AusAID Programme
Since June 2012 the German and Australian Governments (through their
development agencies GIZ and AusAID) have been supporting the local authorities in
six towns and cities in Zimbabwe including Bulawayo to improve service delivery and
revenue collection. In Bulawayo the programme aims to: re-establish water and
sanitation services; and increase revenue collection for water, sewage and refuse
charges to 60% of that billed from the average 33%. The focus under the first
component is to use the ground water supply from the Nyamadlovu and Epping
Forest well fields more efficiently, but the improvements in pumping equipment and
storage will take more than a year to complete.
Option 3. Commit Funding through the “Zim-Fund”
A consortium of bilateral partners has contributed $120 million into the Zimbabwe
Multi-Donor Trust Fund (Zim-Fund) managed by the African Development Bank. DFID
with £20 million is the largest contributor. Zim-Fund is working to improve access to
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water in six urban centres in Zimbabwe, including Bulawayo. The Zim-Fund is not
however structured to provide a rapid response to challenges such as the current
water-shortages facing Bulawayo, something which the AfDB itself recognises.
Option 4. Engage a Private Contractor to provide these services.
This option would require the engagement of such an organisation based on detailed
Terms of Reference and the procurement of their services to follow competitive
tender processes. Experience in the Multi Donor Trust fund (Zim-Fund) has shown
that a competitive tendering process would take many months to complete and would
not see delivery on the ground until late 2013 at the earliest.
Option 5. Do nothing
For reasons set out above, Options 2 to 4 will not deliver improved water and
sanitation services in 2013. The national and local authorities are trying to improve
the supply of water to the city (for example through the Mtshabezi pipeline), but lack
sufficient resources to carry out other projects (the Insiza Dam duplication pipeline
has an estimated cost of $37 million). So the bottom line is that if DFID did not
support this programme, the WASH vulnerabilities of many of the poorer residents of
Bulawayo would remain unmet, leaving an ever increasing risk of disease for them.
Evidence underpinning the theory of change
Zimbabwe has already experienced the disastrous consequences of failing to invest in
improved access to safe water and basic sanitation for the most vulnerable
populations. In 2008/9, lack of access to safe water and improved sanitation facilities
combined with poor hygienic practices contributed to a cholera outbreak that affected
all ten provinces of the country with more than 99,000 cumulative cases and 4,300
deaths being recordedii. Diarrhoea remains one of the top ten diseases affecting
children under-5 in Zimbabwe, causing around 4,000 deaths every year iii. Low water
and sanitation reliability and coverage, cholera proneness and high HIV infected and
affected populations are some of the key rationales accepted globally for targeting of
WASH interventions. As noted above, donors have contributed $120 million into the
Zimbabwe Multi-donor Trust Fund (Zim-Fund) to help address some of the funding
shortages crippling the restoration of urban water supplies. The projects being
financed are large scale rehabilitation projects with the purpose of restoring services
closer to former service levels. But the results are not expected to be seen before the
end of 2013.
Diseases associated with poor water and sanitation has considerable public health
significance. At a global level, improving water, sanitation and hygiene has the
potential to prevent at least 9.1% of the disease burden (in disability-adjusted life
years or DALYs, a weighted measure of deaths and disability), or 6.3% of all deathsiv.
In 2003, it was estimated that 54 million DALYs or 4% of the global DALYs and 1.73
million deaths per year were attributable to unsafe water supply and sanitation,
including lack of hygienev. According to the WHO Global Burden of Disease 2004,
4.9% of Zimbabwe’s total burden of disease as measured by DALYS was WASH
relatedvi.
Evidence of economic benefits arising from water and sanitation improvements
Research studies and anecdotal evidence have firmly established that poor access to
safe water, sanitation and hygiene is a cause for substantial economic losses. A
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recent studyviiestimates the economic loss of inadequate sanitation in Bangladesh to
be US $4.2 billion a year, equivalent to 6.3% of the country’s GDP in 2007. The study
estimates that the economic losses result from: a) premature death and morbidity)
water treatment costs and the time spent fetching water; and c) user preference
impact which considered the extra time needed for open defecation, and the time lost
by girls and women due to absence from school and work respectively. The study
also finds that measurable gains could be achieved by WASH interventions by
reducing premature death and related morbidity, eliminating domestic water related
costs and reducing absentee time at school and work places. The study found out that
61% of Bangladesh’s WASH related economic losses could be prevented. The
potential savings are equivalent to US$ 2.56 billion.
Another studyviii that estimates the economic costs and benefits of a range of selected
interventions to improve water and sanitation services argues that the potential
productivity and income effects of improved access to water, sanitation and hygiene
constitute a significant argument to leverage further resource allocations to water and
sanitation. The study identified economic benefits arising from water and sanitation
improvements under the following categories: health sector, patients, consumers and
agricultural and industrial sectors. Health sector benefits arise, depending on who is
paying, from less expenditure on treatment of diarrhoea diseases in the form of drugs
and use of hospital systems. The study also identified time savings related to water
collection or accessing sanitary facilities.
Bulawayo was founded in the 1840’s, and is the second largest city in Zimbabwe. It
developed as an important regional industrial and transport hub. It is the provincial
capital of Matabeleland and the centre of Zimbabwe’s largest minority ethnic group
the Ndebele. Some commentators argue that Bulawayo has been marginalized in the
past due to its political affiliations, including in recent times its strong support for the
MDC parties who have been the main opposition to President Mugabe’s ZANU-PF
since 2000. Bulawayo has always struggled to supply adequate water to its citizens.
Much of this is due to climatic factors: Bulawayo has an average annual rainfall of 590
mm, and is in one of the hottest and driest parts of the region. Given that the
combined yield of existing dams is 73.6 Mega litres/day (Ml/d) and the demand before
the current water shedding was 135 Ml/day it is clear that Bulawayo needs to increase
its water supply. The table below sets out the main options:
Sources
Surface
Ground
Water
Development Options Given to
BCC Meeting December 2012
•
Mtshabezi Dam
•
Insiza Dam
•
Gwayi-Shangani Dam
Detailed study of the groundwater
potential in Bulawayo and adjacent
aquifers
Revision V 12.1 (approved)
11
Comment
Large capital works projects
and outside this project.
Ministry of Water Resources
and Management leading.
BEWAP to carry out study.
Geologically Bulawayo is on
an extensive granitic outcrop
underlying a shallow layer of
immature soil. Groundwater is
found in fracture zones with
aquifers largely restricted to
river basins. Analysis of drilling
14 February 2013
Loss
reduction
Recycled
Effluent
•
Improve Nyamadlovu
Wellfield
•
Epping Forest Wellfield
•
Sandstone Creek
•
Sawmills Aquifer
•
Gwayi Siding
•
Nata River
•
Intundhla Siding
Bulawayo is more water efficient
than any other city in Zimbabwe so
not a lot of room for improvement
•
Master
Plan
proposes
indirect recycling of treated effluent
through Khami Dam.
•
Only 10% to 20% of sewage
generated in catchment flows to
the sewage treatment works,
balance spills from failed trunk
sewers into streams flowing to
Khami Dam
Until spillage of raw sewage to
Khami Dam is resolved, Master
Plan proposal for recycling cannot
be considered.
Revision V 12.1 (approved)
12
logs and existing records will
be
used
for
borehole
assessment and to provide
data
on
variations
in
groundwater
levels
with
mapping
and
yield
assessment in the high density
suburbs. The use of Geoeye
satellite data a 3D view of an
aquifer will be produced for
immediate use and for longterm
data
interpretation.
ArcGIS based 3D aquifer
water potential and lithological
model and AutoCAD civil 3D
based
aquifer
model
produced. The model will be
operated and updated by
ZINWA.
GIZ / AusAID.
GIZ / AusAID.
No development planned.
BEWAP will replace 60 to 70
km of mains with a predicted
8% reduction in the water
being lost.
BEWAP will rehabilitate 3
trunk
sewers
(Mpopoma,
Turnall
and
Mahatshula
Bridge) ensuring that the
sewage goes to the treatment
works (being rehabilitated by
AusAID/GIZ)
and
not
untreated into the Khami dam
14 February 2013
B. Assessing the strength of the evidence base for each feasible option
The table rates the quality of evidence for each option as; Strong, Medium or Limited.
Option
Evidence rating
1 BEWAP
Strong
2 GIZ/AUSAID
Strong
3 Zim-Fund
Strong
4 Private Sector Strong
5 Do Nothing
Strong
The evidence rating above reflects the confidence held in our assessment of the
capacity of each organisation to respond with the urgency that the project requires. All
the options other than “do-nothing” will have start up delays. Option 1 being the
consortium of three NGO’s currently active in Bulawayo gives the greatest confidence
for the early positioning of assets to execute the project. The “do-nothing” Option has
compelling evidence that the water and sanitation situation will not improve and very
likely deteriorate without this investment. The ten proposed activities have been
carefully chosen to supplement the programmes of other partners active in Bulawayo
and would have a much greater short-term impact than channelling money through
the Options 2-4.
What is the likely impact (positive and negative) on climate change and
environment for each feasible option?
Environmental Appraisal & Climate Change Considerations
The infrastructure activities under the programme will not significantly contribute to
climate change or environmental degradation, or lead to increased vulnerability of
communities. Drilling activities may see minor contamination of surface water from
drilled materials or drilling lubricants. In addition, open holes pose a danger to people,
poultry and cattle in the area. Therefore best practices must be applied to rehabilitate
and restore the drilling sites. Noise and dust during construction work is inevitable, but
it will be temporary and easily controllable by restricting working hours and ensuring
all material excavated from the boreholes is correctly disposed of. Overall any minor
degradation linked for example to drilling will be managed by an Environmental
Management Plan. Any negative environmental impact will be more than off-set by
improvements to the environment resulting from repaired sewerage system, with
fewer numbers of spills of untreated sewage into the residential community or water
courses. In addition the work to restore failed sewage transmission and treatment
facilities will help reduce the risk of contamination of groundwater by sewage, and
increase the amount of sewage reaching the sewage treatment works and the volume
of sewage effluent available for recycling. Replacement sewers will be designed and
sized to ensure adequate flows of water to ensure ‘self-cleaning’ and reduce the
likelihood of blockages.
Groundwater is the only realistic safe water supply option for meeting the dispersed
demand that characterises low density rural villages in the adjacent rural districts of
Bulawayo. Therefore access to groundwater by rural communities outside the city
should arguably take priority over extraction to supply the needs of large urban
centres like Bulawayo. The groundwater study to be carried out under this programme
Revision V 12.1 (approved)
13
14 February 2013
will help to establish what volume of water can sustainably be extracted. This should
help ensure that all future large-scale ground water extractions for Bulawayo are
sustainable, including in terms of their consequential impact on the rural areas around
the city. Looking ahead, while the use of water for irrigation has declined significantly
in the past decade or so around Bulawayo (linked often to land reforms), this pattern
could reverse and the balancing of the needs of agricultural and urban areas would
require careful management by the Zimbabwe National Water Authority (ZINWA).
The proposed construction/rehabilitation of 14 boreholes should have negligible
impact on groundwater levels under Bulawayo. This may well not be the case with the
proposed expansion of the Nyamadlovu wellfield and the development of Epping
Forest wellfield under the AusAID/GIZ programme which have the potential to
significantly lower the water table in the surroundings areas if the extraction rates are
not matched with recovery in-flows (with potential knock-on effects to the areas where
those in-flows come from). The proposed development plans and extraction rates
from the two major well fields are based on data that may be outdated or based on
outdated assumptions. Understanding the hydrogeology is the key to identifying how
the water point will behave under stress and also the long-term sustainability of
groundwater resources under the impact of drought and climate change, which once
again underlines the value of the groundwater study under this new programme.
No quality problems are expected from the water to be extracted from the new and
rehabilitated boreholes. But all of the boreholes will be tested and any appropriate
action taken. The boreholes will only be drilled where there is sufficient groundwater
to pump to storage tanks at institutions where the water can be chlorinated and
gravitated into the reticulation system. Protecting the groundwater under Bulawayo
and the surrounds requires resource management. Although groundwater is generally
well protected, the proposed increased development of local wellfields could have
impacts on quality issues. Extraction of water in areas that encourages the percolation
of water contaminated by industrial or mining wastes as well as avoiding problems
with using water with unsafe levels of naturally occurring chemicals can be identified
through the groundwater study.
As this is a fixed urban environment where the potential for future urban growth is
concentrated in the peripheral areas, there is limited scope for the outcomes to be
enhanced by improved management of natural resources and tackling climate
change. However all wetlands, important for flood attenuation and aquifer recharge
(as well as habitats for natural flora and fauna) will be mapped to feed into the
groundwater study.
The Participatory Health and Hygiene Education component should improve
community health and environmental hygiene. For example increase social
awareness of the need to dispose of garbage responsibly and correctly should have
positive effects on the environment. Messages will be conveyed through road shows,
fun days, creation of Health Clubs in schools, door–to-door campaigns, text
messaging, billboards and other material. Health and hygiene fun days will be
conducted at the time of the construction of school sanitation facilities at schools with
parents invited to raise awareness on health and hygiene practices. Environmental
health technicians and community volunteers will be involved in door to door health
and hygiene campaigns that seek to promote and enhance safe hygiene and health
Revision V 12.1 (approved)
14
14 February 2013
practices at household level.
Overall, there is limited scope for the project to help tackle climate change, build
resilience or reduce vulnerability to climate change or related shocks. But as noted
above it will help to improve the environment and its management.
As set out in a previous section, Options 2-4 are not realistic given the urgency of the
situation, therefore the summary table below only covers Option 1.
Option
1
Climate
change
and Climate
change
and
environment
environment
risks
and opportunities, Category (A, B, C, D)
impacts, Category (A, B, C, D)
Low Risk
Medium Opportunity
C. What are the costs and benefits of each feasible option?
Detailed cost benefit analysis was only undertaken for Option 1. Options 2-4 were
rejected as they would not be able to respond to the urgency of the situation in
Bulawayo. The programme considered in Option 2 has a longer time horizon with
valid commercial intentions to ensure sustainability but will be unable to respond
quickly enough. Option 3, ZIMFUND, has proved to be slower than expected in terms
of delivery on the ground while Option 4, engaging a private contractor, would also be
a lengthy process.
The contributions are as follows for Option 1 :Source
DFID Contribution to WVI
M&E (retained)
Contingencies (retained)
Total
WVI Contribution
Total support
Amounts
£3,420,766
+
£50,000
+
£29,234
£3,500,000
£287,500
£3,787,500
Water, sanitation and hygiene (WASH) have important social and economic benefits,
with implications for environmental cleanliness, health, poverty reduction and (gender)
equity. Access to safe water and improved sanitation will reduce the burden of
diseases arising from WASH related causes, especially by providing barriers to
transmission of diarrhoeal disease from the environment to the human body. This will
result in not only improved health status for the poor and vulnerable but also lead to
economic benefits realised through a number of channels such as: savings on health
expenditure; lower incidence of illness from water borne diseases which include water
treatment; time savings from reduced walking distances to fetch water; and improved
education outcomes particularly for girls when their attendance in school is improved
because the burden of fetching water will have been reduced.
1.
Costs
Table 1 below summarises the breakdown of annual costs to be incurred against
Revision V 12.1 (approved)
15
14 February 2013
programme activities including overheads. The total cost of the programme is GBP
3,787,500 (USD 6,060,000), with GBP 3,500,000 (USD $5,600,000) provided by DFID
and the balance of GBP 287,500 ($460,000) from the NGO’s.
Table 1: Project costs (US$)
Revised DFID 23 Jan 2013
USD (equivalent)
GBP
XR 1.6
Feb-13
£2,000,000
USD 3,200,000
Apr-13
May-13
£710,383
USD 1,136,613
Jul-13
Aug-13
£710,383
USD 1,136,613
Disburse Date
Total USD to WVI
(equivalent)
Total UKP to WVI from DFID
£3,420,766
Retained Funds by DFID
M&E
Contingencies 0.8%
Total DFID
£50,000
£29,234
£3,500,000
USD 5,600,000
£287,500
USD 460,000
£3,787,500
USD 6,060,000
WVI Contribution
Total Value of Project
USD 5,473,225
Table 2: Project costs (US$)
COSTS
1. Rehabilitation of Criterion water treatment works
to increase supply from 90 Ml/day to 180 Ml/day
2. Construction of 80 elevated tanks in institutions
3. Construction of 7 new high yield boreholes to
augment current Bulawayo water supplies
4. Upgrading of 7 existing high yielding boreholes to
augment current Bulawayo water supplies.
PARTNER
TOTAL
World
Vision
International
Medair
USD
814,903
Dabane
Trust
Dabane
Trust
5. Replace 60-70 km of pipeline to reduce the
World
number of bursts (and unseen minor) leaks where
Vision
pipe bursts are frequent and losses significant.
International
6. Repair and maintain sewage infrastructure
World
through the rehabilitation of three outfall sewers
Vision
and two sewage treatment ponds.
International
Dabane
7. Construct sanitation facilities at schools
Revision V 12.1 (approved)
16
USD
578,400
USD
127,453
USD
100,399
USD
1,384,507
USD
425,246
USD
14 February 2013
8. Carry out a detailed study of the groundwater
potential in Bulawayo and adjacent aquifers
9. Introduce sanitation and hygiene education
programmes to 76,000 children from 73 schools.
10. Rapid
assessment
Preparedness.
of
BCC’s
Cholera
Trust
678,792
Dabane
Trust
USD 73,618
Medair,
Dabane
Trust
World
Vision
International
USD
477,375
USD
334,507
4,995,200
Subtotal
Overheads
478,025
Total cost
5,473,225
Overhead costs payable to World Vision International will amount to USD 478 k or
9.5% of funds contributed by DFID to WVI over the duration of the programme.
2. Benefits
We identify four types of economic benefits:
1) lives and productive time saved, which would otherwise have been lost due to
death and illness respectively as measured by Disability Adjusted Life Years
(DALYs);
2) health expenditure savings comprising of hospital treatment costs;
3) patient costs savings comprising of transport costs to access a health facility;
4) time savings arising from reduced time taken to collect clean water.
The valuation of health benefits (DALYs) in this appraisal was restricted to the burden
of diarrhoeal diseases among children under 5’s closely following the work of Haller et
al. ixand Hutton et alx.
The above identified benefits are certainly not the only benefits of the programme.
Due to computational limitations and the inherent difficulty to monetise some of the
benefits, not all benefits are accounted for in this appraisal. Some of the benefits that
this appraisal did not quantify include:
 The reduction in the diarrhoeal burden of diseases on the adult population. In
2008/9 poor access to water and sanitation resulted in a cholera and diarrhoeal
disease outbreak that killed 4 300 people.
 Reduction in water related diseases such as vector borne diseases which are
not accounted for under diarrhoeal diseases.
 Sanitation time savings arising from having a sanitation facility in the school
could not be accounted for because of lack of evidence to demonstrate the
amount of time spend looking for vegetation cover to openly defecate or
queuing to use the limited resources in the school.
Table 2 summarises the assumptions for the valuation of benefits and the data
sources for parameters values used in the calculation. A detailed explanation of the
assumptions and parameter values is given in Appendix 1.
Revision V 12.1 (approved)
17
14 February 2013
Table 2: Parameter values for computation of benefits
Benefit
Value of lossof-life avoided/
Time lost due
illness
Direct
treatment
expenditures
saved
Patient costs
Time savings
Salvage value
Variable
Diarrhoea
Disability
Adjusted
Life
Years (DALYs)
Gross National
Income
(GNI)
per capita
% of DALYs
saved
Unit costs per
treatment
Hospitalisation
costs(5 days)
Data values
16 /1000 capita/Year
Data Sources
WHO
Zimbabwe
Country profile (2009)
US$ 630
Own office calculation
(2011)
80% in population MOHCW,
WHO,
reached
UNICEF
5.5 US$ (Swaziland & Jamison et al. 2006
Malawi)
Hutton et al. 2004
110
US$
(SubSaharan Africa )
Number
of Cases by proportion Demographic & Health
cases saved
of
under-fives Survey 2010-111
reached (13%)
Case visits
30% of cases seek Assumption Hutton et
out patient care
al. 2004
Hospitalisation
8.2% of cases
WHO data
Transport costs US$ 1 per trip
Assumption based on
per visit
minimum
public
transport rates
% of patients 50%
Hutton et al. 2004
using transport
Water collection 0.5 hours
Assumptions
guided
time saved per
by
MIMs
2009,
households per
Nemarunde 2003
day (borehole)
Time
savings US$ 525
Calculation based on
valued
at
GoZ Poverty Datum
opportunity
Line for family of five
costs of time at
minimum wage
for
general
agriculture
As a conservative measure, the salvage value estimated at zero
for both boreholes and squat holes
Further assumptions
That around 20% of the Bulawayo population or 140,000 people would be reached
with a full package of benefits covering water, sanitation and hygiene education. This
assumes 10,000 people benefit from each borehole constructed or rehabilitated and
1
Demographic & Health Survey page 133 table 10.7 states incident ate in under 5 yo is 13.2%
Revision V 12.1 (approved)
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14 February 2013
45,000 people from each of the improvements to the sewage reticulation system.
In the central scenario, that the estimated average life span of a borehole is 20 years
and hence benefits will subsist for 20 years after funding has stopped, which gives an
appraisal horizon of 21 years including the one year of programme implementation. In
the valuation of time savings, it was assumed that average household income is US$
525 (GoZ Poverty Datum line for family of 5) which is shared between two equally
productive members of the household.
Undiscounted Benefits
Using the above assumptions, it was calculated that this programme will avert 16
DALYs per 1000 people per year. This was multiplied by the number of DALYs by per
capita GNI to get the discounted monetary value of DALYs. Health expenditure is
calculated by multiplying the number of diarrhoeal cases by the proportion of cases
that seek treatment and then by the average cost of treatment. The same applies to
hospital fees. Patient costs avoided are calculated by the number of cases that seek
treatment by the cost of a round trip to and from hospital. And finally the time savings
benefit is calculated by multiplying the total time saved due to having an improved
water source by the opportunity cost of time which is equivalent to household income
earnings obtained from the LIME (Longitudinal approaches to Impact assessment,
Monitoring and Evaluation) survey of May 2011 for lack of a better proxy for the
opportunity cost of women’s labour. Table 3 below outlines the computed
undiscounted incremental benefits from the programme.
Table 3: Undiscounted benefits (US$)
Benefit item
2014
Total (20 years)
1,792
Number of DALYs Saved
Value of DALYs saved ($)
1,128,960
Health Expenditure saved($)
30,030
Patient costs saved($)
2,730
Time savings ($)
3,675,000
Total benefits
4,836,720
35,840
22,579,200
600,600
54,600
73,500,000
96,734,400
3. Balance of Benefits and Costs
Table 4 below presents the balance of discounted benefits and cost for the base case
at a discount rate of 10% in line with DFID Zimbabwe’s discount rate estimates.
Table 4: Balance of Cost and benefits
Economic Indicator
Base case
Total discounted benefits
41,177,724
Total discounted costs
5,393,050
Net Present Value
35,784,674
Benefit Cost Ratio
7.64
Internal Rate of Return
89.7
The project has a Net Present Value (NPV) of US$ 35.8 million and a benefit-cost
ratio (BCR) of 7.64 which means that for every dollar invested in the BEWAP, a return
of at least US$ 7.64 is expected. The project has an Internal Rate of Return (IRR) of
Revision V 12.1 (approved)
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14 February 2013
89.7% which means that the returns realised from the BEWAP outweigh the
opportunity cost of capital by more than 7 times.
Sensitivity Analysis
In order to address the uncertainty surrounding some of the variables used, a
sensitivity analysis was conducted and Table 5 presents the scenarios used.
Table 5: Sensitivity analysis scenarios
Parameter
Base case
Lifespan of benefits
Minimum
costs
Projects benefits will last twenty (20) years after
programme funding has stopped
maintenance Zero maintenance costs, throughout the project but the
responsibility for O&M is found in the Log Frame
DALY valuation
DALYs saved valued at GDP per capita of US$ 630.
Efficacy of DALY savings
Efficacy of DALY savings pegged at 80%
All the sensitivity test scenarios insert a degree of caution to the central/base scenario
which has high positive returns. The results of the sensitivity tests are shown in table
6 below.
Table 6: sensitivity analysis results
Scenario
NPV ($)
Base
35.8 m
S1 – 10 year benefit flow
24.3 m
S2 – maintenance costs
34.3
S3 – Hh income ($250)
17.9
IRR (%)
89.7
89.5
89.7
53.8
BCR
7.6
5.5
5.9
3.6
As can be seen from Table 6, all the less optimistic scenarios of the BEWAP have
positive NPVs.
Even with the lifespan of project benefits reduced by 10 years in the 1 st scenario, the
project has a positive NPV of approximately US$ 24.3 million and a BCR of 5.5. While
maintenance costs were assumed to be zero in the base case, when maintenance
costs of 10% per annum from year 10-20 were assumed in the second sensitivity test,
the programme still registered a positive NPV of US$ 34.3 million and BCR of 5.9. We
also assumed in scenario three that the low end opportunity cost of labour used to
value DALYS is equal to the Household Income of about US$ 250, which represents
the minimum earnings of a poor household in Zimbabwe. The results show that the
programme is more sensitive to the value attached to the opportunity cost of labour.
However, even at this lower end opportunity cost of labour, the project still has
positive returns with a BCR of 3.6 which means that every dollar invested earns a
return of US$ 3.60 (NPV of $17.9 m).
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D. What measures can be used to assess Value for Money for the intervention?
Component
Number
Item
Unit
Cost
Per
Item
USD
1. Increase Criterion WTW
production 90 Ml/day to 180
Ml/day
90,000
m3 per day
0
0.02
267
Not
applicable
6
Not applicable
814,903
2. Construct 80 x 10,000 lt tanks.
80
tanks
7,230
Not
applicable
189
7,230
7
Not applicable
578,400
3. Construct 7 new high yield
boreholes
7
Borehole
18,208
To
be
advised
42
18,208
13
Not applicable
127,453
4. Upgrade 7 existing boreholes
7
Borehole
14,343
To
be
advised
33
14,343
10
Not applicable
100,399
5. Replace 70 km pipe reduce
losses by 10 %
70,000
m
20
Not
applicable
453
Not
applicable
10
$27,000
per
day (Rate $1
per m3)
6. a Repair and maintain three
outfall sewers
3
repairs
255,14
8
To
be
advised
139
85,049
3
Not applicable
To
be
advised
139
85,049
2
Not applicable
Cost per
item per
year USD
Cost USD
Per Daly
averted
Cost USD
per
institution
Cost per person
improved WASH
behaviour USD
Cost
USD
economies in
water usage
Total Cost
USD
1,384,507
425,246
6. b Repair and maintain sewage
infrastructure rehabilitation of two
sewage treatment ponds.
2
repairs
170,09
8
7. Construct sanitation schools
60
sanitation
upgrade
9,299
To
be
advised
222
9,299
9
Not applicable
678,792
8. Study groundwater potential in
Bulawayo and adjacent aquifers
1
Study
73,618
Not
applicable
Not
applicable
Not
applicable
Not applicable
Not applicable
73,618
9. Hygiene education programmes
76,000 children from 73 schools.
76,000
Child
6
Not
applicable
156
6,539
6
Not applicable
477,375
10. Rapid assessment of BCC’s
Cholera Preparedness
1
study
334,50
7
Not
applicable
Not
applicable
Not
applicable
Not applicable
Not applicable
334,507
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E. Summary Value for Money Statement for the preferred option
The preferred option for this project is Option 1 principally because it allows a rapid
response to the critical situation in Bulawayo while still offering strong Value for
Money. Option 1 also allows DFID to engage the consortium under an Accountable
Grant that limits how the funds will be spent to various categories but gives freedom
for funds to be moved around within those categories. Detailed cost benefit analyses
for options 2-4 were not undertaken.
Option 5 “Do-nothing” is the counter argument to Option 1 giving reasons for not
implementing Option 1.
The appraisal demonstrated that Option 1 offers good value for money. A benefit cost
ratio (BCR) of 5 to 6 and an internal rate of return (IRR) of 54% to 89%.
This level of return is consistent with returns of similar interventions in Zimbabwe and
elsewhere. Even when some parameter values used in the calculation of benefits
were lowered in the sensitivity test the BCRs remained above unit, implying that
benefits outweigh costs even under less optimistic scenarios.
Commercial Case
Direct procurement
A. Clearly state the procurement/commercial requirements for intervention
The funding is being provided in response to a proposal made by World Vision
International (WVI) and its partners MedAir and Dabane Trust, all of whom are notfor-profit organisations. The Appraisal Case gives details of their work and experience
in Zimbabwe and the proposed division of labour between them.
This programme will not involve any direct procurement by DFID. All procurement will
be indirect and through WVI. WVI will act as the managing agent for this programme.
There will be an Accountable Grant signed with WVI. There will be the standard
requirements for joint reporting and oversight to minimise transaction overheads to all
parties.
We anticipate disbursing funds in advance and on a quarterly basis. They will be
subject to the appropriate statements and reports as set out in the Accountable
Grant. Disbursement schedules will be agreed within the Accountable Grant
negotiation process and contingent upon satisfactory performance. None of the funds
will be earmarked.
B. How does the intervention design use competition to drive commercial
advantage for DFID?
The provision of goods will be from the local markets and procured by tender based
on WVI’s procurement rules. As part of the procurement process WVI will assess the
quality of goods against price and will select based on the lifetime cost for the goods
Revision V 12.1 (approved)
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being installed.
Labour engaged for installation will be directly supervised by WVI or its associates
and will be contracted on a daily basis or by contract labour supply organisations.
World Vision UK’s position on “Value for Money, Principles, management practices
and plans for measurement” can be viewed on http://www.worldvision.org.uk/whatwe-do/impact/
C. How do we expect the market place will respond to this opportunity?
The market will respond to increase demand for goods and services. Through the
tendering process, goods may be imported but due to the urgency to improve the
supply of services it is anticipated that goods will be obtained locally or regionally.
The may be an increase in daily rates for the costs of labour but this is likely to be
insignificant due to the high unemployment rates in Bulawayo.
D. What are the key cost elements that affect overall price? How is value added
and how will we measure and improve this?
Most of the goods to be procured are locally available, supplied from local sources or
imported (most likely) from neighbouring South Africa. There is less control over costs
of imported goods and exchange rate fluctuations may have an influence but prices
will be fixed in USD at time of ordering.
Wherever practicable, labour-intensive methods of construction will be employed
maximising the retention of funds in the local community.
E. What is the intended Procurement Process to support contract award?
There will be direct negotiation with World Vision International for these services.
F. How will contract & supplier performance be managed through the life of the
intervention?
Bulawayo City Council will create a Project Steering Committee to meet monthly to
discuss progress and provide support. DFID will be represented on that committee as
will local community representatives.
Simple Monthly reports will be produced by WVI listing progress against targets and
disbursements against targets. Quarterly reports will be produced giving detailed of
expenditures to allow replenishment of funds.
Indirect procurement
A. Why is the proposed funding mechanism/form of arrangement the right one
for this intervention, with this development partner?
Due to the urgency to progress the project, there is no alternative other than to
directly negotiate with World Vision International. They are a leading player in the
WASH sector in Bulawayo and this is project they can take on with little delay in
recruitment or delays due to establishment.
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We have not received any other proposals of this kind from CSOs and going out to
tender is likely to delay work starting by at least six months, a delay which is not
acceptable given the urgency and the severity of the situation facing the most
vulnerable people in Bulawayo.
WVI and its partners enjoy effective and proven relationships with Bulawayo City
Council that will be key to successful implementation and they also know the city and
the locations where much of the improvements are to be focused.
B. Value for money through procurement
WVI will be expected before undertaking any procurement activity to familiarise and
ensure all procurement conforms to the code of conduct of the UK Chartered Institute
of Purchasing and Supply (CIPS) code. The key issues to be addressed by WVI are
below but apply equally to DFID staff and are:a. Declaration of interest. Any personal interest of any WVI staff (including
other implementing partners in association) which may affect or be seen by
others to affect WVI’s impartiality in any matter relevant to any WVI
procurement should be declared to DFID. Personal interest expressly includes
any DFID or WVI friends or family that are thinking of bidding for work. In this
situation, DFID will decide on an appropriate response and will inform WVI in
writing of the action to be taken.
b. Confidentiality and accuracy of information. The confidentiality of
information received in the course of this project should be respected and
should never be used for personal gain. Information given in the course of duty
should be honest and clear. The details of one supplier’s quotation should
never be released to another supplier.
c. Competition. The nature and length of contracts with suppliers can vary
according to circumstances. These should always be constructed to ensure
speedy deliverables and maximum benefits. Arrangements which might in the
long term prevent the effective operation of fair competition should be avoided.
d. Business gifts. - Business gifts, other than items of very small intrinsic value
such as business diaries or calendars, should not be accepted.
e. Hospitality. WVI staff should not allow themselves to be influenced or be
perceived by others to have been influenced in making a business decision as
a consequence of accepting hospitality. The frequency and scale of hospitality
accepted should be managed openly and with care and should not be greater
than WVI is able to reciprocate.
Financial Case
A. What are the costs, how are they profiled and how will you ensure accurate
forecasting?
The expected costs are set out below. Subsequent sections provide more details
about profiling and forecasting.
COSTS
USD
1. Rehabilitation of Criterion water treatment works
Revision V 12.1 (approved)
24
814,903
14 February 2013
2. Construction of 80 elevated tanks in institutions
578,400
3. Construction of 7 new high yield boreholes
127,453
4. Upgrading of 7 existing high yielding boreholes
100,399
5. Replace pipeline to reduce the number of bursts (and unseen
minor) leaks etc
6. Repair/maintain sewage infrastructure through the rehabilitation
of three outfall sewers and two sewage treatment ponds.
1,384,507
425,246
678,792
7. Construct sanitation facilities at schools
73,618
8. Carry out a detailed study of the groundwater potential in
Bulawayo and adjacent aquifers
9. Introduce sanitation and hygiene education programmes to
76,000 children from 73 schools.
10. Rapid assessment of BCC’s Cholera Preparedness.
Subtotal USD
Overheads 9.5%
477,375
334,507
4,995,200
478,025
Total Cost
USD 5,473,225
GBP 3,420,766
B. How will it be funded: capital/programme/admin?
Programme Resource.
C. How will funds be paid out?
It is anticipated funds will be disbursed as follows:
Disburse Date
GBP
Feb-13
Apr-13
May-13
Jul-13
Aug-13
USD
£2,000,000
USD 3,200,000
£710,383
USD 1,136,613
£710,383
USD 1,136,613
Total USD to WVI
(equivalent)
Total UKP to WVI
£3,420,766
Retained Funds by DFID
M&E
Contingencies 5%
Total DFID
£50,000
£29,234
£3,500,000
USD 5,600,000
£287,500
USD 460,000
WVI Contribution
Revision V 12.1 (approved)
USD 5,473,225
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14 February 2013
Total Value of
Project
£3,787,500
D. What is the assessment of financial risk and fraud?
USD 6,060,000
The risks are considered to be small, with the funds only being channelled through
WVI with approved financial management and audit systems. WVI has a Programme
Partnership Agreement with DFID and has worked successfully with DFID Zimbabwe
in other sectors. WVI Zimbabwe has recently been awarded a contract under DFID’s
Girls Education Challenge Fund whose selection process included an assessment of
the organisation’s financial management controls. Expenditure will be carefully
monitored to ensure it is being used for the defined purposes, in line with acceptable
accounting procedures, representing value for money.
E. How will expenditure be monitored, reported, and accounted for?
This contribution is not considered sensitive, novel or contentious and will be funded
from programme resources that have been budgeted for in DFID Zimbabwe’s
Operational Plan. Expenditure will be carefully monitored to ensure it is being used for
the defined purposes, in line with acceptable accounting procedures, representing
value for money.
DFID Zimbabwe’s Programme Manager will ensure forecasting, monitoring and
accounting of expenditure using DFID financial management systems. The
Accountable Grant will govern disbursement and be agreed beforehand with WVI.
The Programme Manager will conduct quarterly meetings with WVI partners to review
project progress, monitor expenditure trends against forecasts and assess overall
compliance. Monthly coordination meetings will be held in Bulawayo with the main
relevant parties and field visits carried out to cross-check against financial reports.
WVI will supply audited statements of account. Financial records will be audited in
accordance with the globally established procedures and financials rules and
regulations. Any capital assets procured will be treated in accordance with DFID
procedures.
Management Case
A. What are the Management Arrangements for implementing the intervention?
For the reasons outlined earlier we recommend WVI to manage this programme,
working with Medair and Dabane Trust.
B. What are the risks and how these will be managed?
Risk
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Probability Impact
26
Mitigation
14 February 2013
Political and economic Low
situation worsens to civil
conflict or collapse of
BCC services to sectors.
High
Change of political
leadership in BCC
following elections in
2013.
Low
Medium
WVI
is
unable
to Low
effectively work with all
partners,
including
Government, as well as
having full site access to
implement and monitor
the programme.
WVI’s
internal Low
procurement
systems
are unable to effectively
expedite and manage
large scale expenditures
at the start.
Change of leadership Low
within WVI or partners.
Medium
Overall
costs
of Low
procurement of goods
and services escalate
beyond
reasonable
levels.
Medium
Significant tensions arise Low
between
the
collaborating
partners
with WVI or BCC.
Medium
Revision V 12.1 (approved)
27
Because the programme is
Bulawayo based it is subject to
all the problems associated
with urban political tensions.
The programme has little
political
overtones
and
therefore should be immune to
targeted
violence
or
interference.
The project is not seen to have
a political context but the
political reality is that any
change of leadership (even
from within the same political
party) will view any on-going
projects with a degree of
caution. Early meetings with
any change of political elite will
be necessary.
Bulawayo City Council is a key
partner but once the launch
has occurred support from
BCC is only required at the low
level technical level as part of
the implementation.
Medium
WVI to ensure procurement
capacity available in early
phase of the project.
Medium
Ensure any proposed changes
to staff have an adequate
handover
and
the
replacements staff is as wellequipped and motivated as the
staff departing.
As
a
principle
local
procurement is encouraged to
develop the local economy
wherever possible but WVI to
manage
the
risk
of
compromising implementation
quantity or quality.
Agreements to be signed
(MoU’s) between implementing
partners to emphasize the
need to work together, commit
to a transparent process free of
14 February 2013
politicization.
C. What conditions apply (for financial aid only)?
Does not apply
D. How will progress and results be monitored, measured and evaluated?
The project budget includes £50,000 to cover the cost of field visits and reporting.
£29,234 has been set aside for contingencies as approved by DFID.
Monitoring and evaluation will take place quarterly to ensure that evidence is gathered
regarding the impact of the various interventions included in this business case. This
will serve to potentially assist to direct future WASH interventions as some of the
benefits accrued in urban settings are poorly argued due to lack of supporting
evidence.
The monitoring and evaluation will also serve to increase understanding of the
challenges of engaging in WASH urban activities. DFID will work with WVI to develop
a communication and dissemination strategy for the key monitoring and evaluation
findings. We will work with WVI to build in appropriate beneficiary feedback into our
monitoring and evaluation plans. This will complement the other aspects of the
monitoring and evaluation plan by providing grassroots information on the impact of
the programme on the lives of the poor.
Standard DFID programme management practises for monitoring and evaluation will
be implemented and agreed in the Accountable Grant.
There is requirement before the disbursing of the 2 nd and 3rd payments that the
outputs for milestones in the Logframe are substantially achieved.
Logframe
Quest No of logframe for this intervention: 3845406
Bulawayo dams record 1. 5% inflowsi http://bulawayo24.com/index-id-news-sc-local-byo-25088.html
ii Ministry of Health and Child Welfare (MOHCW) Epidemiology Bulletin, 2008/9
iii Multiple Indicator Monitoring Survey (MIMS), 2009, a household survey undertaken by the Zimbabwe Statistical
Agency (ZimStats) in conjunction with UNICEF.
iv Pruss-Ustun A, et al, Safer water, better health: costs, benefits and sustainability of interventions to protect and
promote health. World Health Organization, Geneva, 2008.
v Hutton G et al, ‘'Economic and health effects of increasing coverage of low cost household drinking-water
supply and sanitation interventions to countries off-track to meet MDG target 10. WHO 2007.
vi
The global burden of disease: 2004 update, WHO publication 2008.
“The Economic Impacts of Inadequate Sanitation in Bangladesh”
viii “Evaluation of the Non-Health Costs and Benefits of Water and sanitation Improvements at a Global Level”
WHO 2004, by Hutton G and Haller L
ixHaller L, Hutton, G & Bartam J. 2007. Estimating the costs and benefits of water and sanitation improvements at
global level. Journal of water and health 05. 4:467-480
xHutton G& Haller L. 2004. Evaluation of the Costs and Benefits of Water and Sanitation Improvements at the
Global Level. WHO, Geneva
vii
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