PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Report No.:AB6176
Project Name
Region
Country
Sector
Lending Instrument
Project ID
Parent Project ID
Borrower(s)
Implementing Agency
Environmental Screening
Category
Date PID Prepared
Estimated Date of Appraisal
Completion
Estimated Date of Board
Approval
Other Decision {Optional}
I.
EG- SECOND INTEGRATED SANITATION AND
SEWERAGE INFRASTRUCTURE PROJECT
MIDDLE EAST AND NORTH AFRICA
Arab Republic of Egypt
Sewerage (65%), Sanitation (35%)
Specific Investment Loan (SIL) with a Fixed Spread Loan
(FSL) To be confirmed
P120161
Ministry of Housing, Utilities and Urban Development, 12
Ismail Abaza Street, Cairo, Arab Republic of Egypt
Holding Company for Water and Waste Water (HCWW)
Contact Person: Eng. Mamdouh Raslan
Telephone No: +202-24583591
National Organization for Potable Water and Sanitary
Drainage
Contact Person: Eng. Samia Saleh
Telephone No: +202-33042933
[] A [X ] B [ ] C [ ] FI [ ] TBD
January 4, 2011
January 16, 2011
March 31, 2011
Country Context
1.
With a population of 84 million people, of which about half percent live in rural areas 1,
Egypt has achieved steady economic growth over the past decade. The recent international
economic slowdown has reduced the country’s GDP growth rate from over 7 percent in 20072008 to 4.5 percent in 2009. Regional disparities have marked Egypt’s development, with greater
poverty and less economic development in Upper Egypt compared to the heavily-populated
Delta region.
The Government of Egypt (GoE) has ambitious plans for economic development to improve
living standards in the country. The Introduction to the Sixth Five Year Plan1 specifies the
“prioritizing of public policies and investments and channeling them into two venues”:(i)
intensifying investments in infrastructure projects, where investments on potable water and
1
Preface to Sixth Five Year Plan, Ministry of Economic Development , Government of Egypt website.
2
sanitation would exceed a quarter of total investments and (ii) achieving regional balance by
allocating 42% of local public investments to fostering development in Upper Egypt
governorates as part of the national project for the region's development.
II.
Sectoral and Institutional Context
Water and Sanitation in Egypt
With almost full coverage of water supply in urban as well as rural areas, the safe disposal of
wastewater in Egyptian villages now represents a major challenge to the environment and public
health. In rural areas, while at least 85% of rural households have some type of sanitary facility
(usually a septic tank), only a limited percentage of villages have facilities for safe collection,
conveyance, and treatment of wastewater. Currently, wastewater is discharged (usually without
treatment) to agricultural drains and sometimes to canals. Such water pollution in drains and
canals is a grave threat to public health. Further, Further, higher subsurface water levels,
especially in the Delta, make most septic tanks an ineffective means of safe disposal of
wastewater.
GoE attaches high priority to safe disposal of wastewater in rural areas and has prepared a
governorate-wise “National Rural Sanitation Master Plan” which targets comprehensive
sanitation coverage to the populations of all rural Governorates by 2037 with a required
investment of 62 billion LE. In addition, the Government’s National Rural Sanitation Strategy of
2008 seeks to prioritize sector investments and provide a roadmap to comprehensive coverage of
rural sanitation. Thus, in recent years, significant investments have been made to bridge the gap
between supply and demand for wastewater treatment in rural areas, with the Government
committing to invest an amount of LE 20 billion in the period 2007-2012 exclusively for rural
sanitation. Despite these efforts, there is still a significant gap between urban and rural sanitation
coverage, estimated at 70% and 25% respectively.2
Provision of sanitation services, urban and rural, in Egypt is the responsibility of the Holding
Company for Water and Wastewater (HCWW), which was created in 2004 as part of the sector
reform agenda. This was followed by the creation of the Egypt Water and Wastewater
Regulatory Agency (EWRA). The reform agenda was taken forward recently with the approval
and announcement of the “Development Policies: Water and Wastewater Sector in Egypt” in
September 2010 which serves to provide a framework and direction for further sector
development and as a guide for institutions operating in the sector. One of the principal
objectives of the new policy is “to achieve financial sustainability of the service providers, so as
to enable them to improve their efficiencies and increase their levels of service”.3
In support of GoE’s sector reform agenda, the World Bank supported Integrated Sanitation and
Sewerage Infrastructure Project (ISSIP, USD 120 million IBRD Loan No. 7512, for $120
million), which became effective in January 2009, supports improvements in sanitation in the
Beheira, Kafr El Sheikh and Gharbeya Governorates (Delta region) through multi-village
2
NATIONAL STRATEGY FOR WATER SUPPLY AND SANITATION: Compilation of Water and Sanitation Master Plans, HCWW report
for the European Commission, May 2009.
3
“Development Policies for the Water and Wastewater Sector in Egypt” MOHUUD, policy paper, September 2010
3
(centralized) sanitation systems in about 222 large villages within 14 clusters, and through
smaller (decentralized) sanitation systems in a proposed 120 individual villages with smaller
populations. In view of the continuing gap in safe sanitation access in rural areas, GoE has now
requested additional Bank support to the sector in two governorates in Upper Egypt (Assiut and
Sohag) and two governorates in the Delta Region (Menoufia and Sharkeya) through the proposed
ISSIP2 project.
Upper Egypt and the Nile Delta
Upper Egypt, and in particular rural Upper Egypt, has the highest incidence of poverty (34%) in
the country. In addition, while poverty fell between 1995/96 and 1999/2000 for the rest of Egypt,
it increased in rural Upper Egypt, clearly indicating that the region is not well linked to the
mainstream of the economy. The networked rural sanitation coverage in both Assiut and Sohag
is officially classified as 0%, with the corresponding coverage in Menoufia and Sharkeya in the
Delta Region not much better at 0% and 19% respectively4. While most rural households in both
Upper Egypt and the Delta region, have latrines or flush toilets connected to infiltration trenches
or septic tanks, most of the sewerage is discharged directly into nearby water canals and drains,
leading to environmental and health hazards in the vicinity. Comparatively higher poverty levels
in Upper Egypt have also led to worse conditions with respect to health and hygiene at both the
community and household levels.
The Second Integrated Sewerage and Sanitation Infrastructure Project (ISSIP2) is a direct
follow-on to the first ISSIP (ISSIP1). ISSIP1, which is under implementation, seeks to contribute
to sustainable improvement in sanitation and environmental conditions for the resident
communities as well as in the water quality in selected drainage basins within the Governorates
of Beheira, Gharbeya and Kafr El Sheikh in the Delta Region. ISSIP2 will similarly provide
improved sewerage and sanitation services to targeted villages in two Governorates in the Delta
Region: Menoufia and Sharkeya and two Governorates in Upper Egypt: Assiut and Sohag.
Population information for each project governorate as well as current rural sanitation coverage
and the project’s target population are provided below.
Population %
Rural
Menoufia
Sharkeya
3.3 million
5.2 million
75%
79%
Rural Sanitation ISSIP2 Target Population
Coverage
Networked/On-site
0% / 90%
271624 (4 clusters)
19% / 63%
311798 (4 clusters)
Assiut
3.8 million
70%
0% / 80%
337457 (7 clusters)
Sohag
3.7 million
78%
0% / 76%
387498 (5 clusters)
4
Egypt National Rural Sanitation Strategy, HCWW, June 2008
4
III.
Project Development Objectives
The Project Development Objective is to provide the targeted population in the governorates of
Menoufia, Sharkeya, Assiut and Sohag increased access to improved sanitation and sewerage
services.
IV.
Project Description
ISSIP2 will be implemented in two contrasting parts of the country, Upper Egypt and Lower
Egypt (Delta), which have significant differences in terms of overall development, climate and
topography, hydrology, and basic infrastructure, with Upper Egypt generally having more
adverse conditions. It will provide improved sanitation (mainly wastewater collection and
treatment systems in targeted clusters along with capacity strengthening of implementing
agencies across four large Governorates: two in the Delta (Menoufia and Sharkeya), and two in
Upper Egypt (Assiut and Sohag). The areas to be served under the project conform to the
Government priorities for high population concentration and high levels of water quality
contamination.
The project will adopt the cluster approach used in the ongoing ISSIP, i.e., connecting several
villages to a centralized wastewater treatment plant.
A.
Project components
ISSIP2 will be implemented in two contrasting parts of the country, Upper Egypt and Lower
Egypt (Delta), which have significant differences in terms of overall development, climate and
topography, hydrology, and basic infrastructure, with Upper Egypt generally having more
adverse conditions. It will provide improved sanitation (mainly wastewater collection and
treatment systems in targeted clusters along with capacity strengthening of implementing
agencies across four large Governorates: two in the Delta (Menoufia and Sharkeya), and two in
Upper Egypt (Assiut and Sohag). The areas to be served under the project correspond to the
Government priorities for high population concentration and high levels of water quality
contamination.
The project will adopt the cluster approach used in the ongoing ISSIP, i.e., connecting several
villages to a centralized wastewater treatment plant.
The three components of ISSIP2 are:
Component 1: Wastewater treatment in rural areas within the two Governorates of
Menoufia, Sharkeya (Estimated cost $150 million).
Component 1 will provide wastewater treatment systems for households within the targeted
areas, using a demand-responsive approach and appropriate technology. It will include
centralized wastewater treatment systems comprising namely the construction of wastewater
5
treatment plants and/or additional network connections (gravity sewers and pump stations) for
villages within 10 clusters in the two project governorates of Menoufia and Sharkeya.
Component 2: Wastewater treatment infrastructure in rural areas within the two
Governorates of Assiut and Sohag (Estimated cost $150 million).
Component 2 will provide wastewater treatment systems for households within the targeted
areas, using a demand-responsive approach and appropriate technology. It will include
centralized wastewater treatment systems and comprise namely the construction of wastewater
treatment plants and/or additional network connections (gravity sewers and pump stations) for
villages within 11 clusters in the two project governorates of Assiut and Sohag.
Component 3: Project Management (Estimated Cost $10 million).
Component 3 will finance (i) project management costs at the HCWW and subsidiary water and
sanitation company levels; (ii) construction supervision; (iii) the implementation of the
Environmental and Social Management and Monitoring Framework (ESMMF) and; (iv) Training
and capacity building activities.
V.
Financing
Borrower
IBRD
Total
VI.
110 million USD
200 million USD
310 million USD
Implementation
The project will be implemented through the following institutions at the national and
local levels:
2.

A Project Steering Committee will provide coordination, oversight, and overall
direction. The Steering Committee will be headed by the Minister of Housing, Utilities,
and Urban Development or his delegate, and will be made up of representatives of
HCWW, NOPWASD, Assiut, Sohag, Menoufia, and Sharkeya water and sanitation
companies (WSCs), EWRA, MWRI, MOHP and representatives of the local popular
councils from each of the four Governorates. The Director of the PIU in the HCWW will
act as the Secretary.

The Project Implementation Unit (PIU) will be housed in HCWW. It will be headed by
a PIU Manager and supported by engineering, financial management, procurement and
environmental/social staff from HCWW, along with a team of long-term and short-term
technical assistance specialists, who will work closely with NOPWASD and the four
WSCs.
6
VII.

A NOPWASD ISSIP2 Unit will be responsible for design and implementation of all
new wastewater treatment plants under the project.. This unit will be headed by a senior
NOPWASD official, supported by a team of specialists covering technical, procurement
and financial management aspects of wastewater treatment plant design and construction,
and supported by technical assistance as needed.

Rural Sanitation Units (RSU) will be created within each of the four WSC’s. These
teams, with engineering, financial management, procurement and environmental/social
specialists, will also be supported by long and short-term technical assistance in the
different fields.
Safeguard Policies (including public consultation)
Safeguard Policies Triggered by the Project
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples (OP/BP 4.10)
Forests (OP/BP 4.36)
Safety of Dams (OP/BP 4.37)
Projects in Disputed Areas (OP/BP 7.60)*
Projects on International Waterways (OP/BP 7.50)
VIII.
Yes
No
X
X
X
X
X
X
X
X
X
X
Contact point at World Bank and Borrower
Contact: Mr. Parameswaran Iyer
Title: Senior Water and Sanitation Specialist, Task Team Leader
Tel: (202) 458-7185
Email: PIyer@worldbank.org
Implementing Agencies
1.National Organization for Potable Water and Sanitary Drainage (NOPWASD)
Arab Republic of Egypt.
Contact Person: Ms. Samia M. Saleh Badr El Din
Telephone No.: +202-33042922
2. Holding Company for Water and Waste Water (HCWW)
Arab Republic of Egypt.
Contact Person: Eng. Mamdouh Raslan
Telephone No.: +202-24583591
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas.
7
IX.
For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Web: http://www.worldbank.org/infoshop