DRC: Scaling-Up Water Supply and Sanitation Access in Kinshasa Project

pipeline

The Project aims to increase access to drinking water supply and sanitation (WSS) services in underserved areas in the city of Kinshasa, the capital city of the Democratic Republic of Congo (DRC). The project intends to leverage financing from IDA, as well as mobilize private capital for water supply production. The aim is to provide safely managed drinking water services to previously unserved populations and to improve the quality of services from basic to safely managed drinking water services in Kinshasa through safe and reliable water access through household connections. Moreover, the project will improve access to safely-managed sanitation through the construction of fecal sludge treatment plants (FSTP), and increasing access to water, sanitation, and hygiene (WASH) facilities in selected schools and health centers within the city. Aligned with the regional Multi-phase Programmatic Approach (MPA) design, the proposed components are the following: Component 1: Strengthening Governance and Reforms and Improving the Performance of Service Providers. Subcomponent 1.1. on Governance and Reforms (mapped to pillars 1 and 2 of the MPA) finances technical assistance, training and equipment to address governance bottlenecks and support the implementation of reform measures including for the mobilization of private capital for WASH. This includes the development of regulatory instruments and policies, tariff studies, transaction advisory services, capacity development for sector ministries, and the national water and sanitation regulatory entity. Subcomponent 1.2. on Service Providers Performance Improvement, which is mapped to pillar 3 of the MPA, finances works, equipment, technical assistance, training for the national water utility REGIDESO. This covers support for the implementation of REGIDESO's Performance Improvement Action Plan, including Non-Revenue Water, digitalization, and water quality management improvements and social connection subsidies. Component 2: Leveraging Financing for Resilient Investments to Expand WASH Access (mapped to pillar 4 of the MPA). Subcomponent 2.1 finances infrastructure investments in climate -resilient urban water production and distribution systems for Kinshasa, including viability gap financing for the construction of new bulk water treatment plant(s). A Build-Operate-Transfer (BOT) arrangement is proposed for these water production plant(s), blending public and private funding to ensure an affordable tariff for REGIDESO as the off-taker, and to the households as end-consumers. IDA financing would support the viability gap financing, as well as the completion of the rehabilitation and expansion of the existing Ndjili water treatment plant, and expansion of REGIDESO’s water distribution network to maximize impact on the population. MIGA de-risking instruments will be brought as appropriate. The IFC role would be to provide debt and mobilize other lenders (either through co-development with value-for-money assurances or through a competitive process). Subcomponent 2.2 finances construction of one or more fecal sludge treatment plants (FSTPs) in Kinshasa, as well as technical assistance and support to strengthen the liquid sanitation collection, conveyance, treatment and reuse chain. This component will also provide support for climate-resilient WASH facilities in schools and health centers. Component 3: Project Management and Coordination. This component finances the overall project management, monitoring and coordination costs, including operating costs. It also finances costs related to land acquisition and resettlement related to the project. The total project cost estimation is US$500 million, of which US$200 million to be financed by IDA, US$200 million by other development partners and US$100 million in private capital mobilization.