Urban Infrastructure & Service Delivery Project

closed

The objectives of the Urban Infrastructure and Services Delivery Project are threefold: a) improve the availability, quality, and reliability of basic municipal services, in particular, water supply and sanitation; b) strengthen the ability of cantonal, and municipal governments to improve management, and institutional capacity for infrastructure development through Urban Management Development Plans, and, c) as possible, foster deeper social cohesion, through improvements in living conditions. Project components aim at: 1) supporting financial management, and training to strengthen, and build institutional capacity; drafting annual business plans for each utility; training for the preparation of Urban Management Development Plans. A study on the institutional capacity and Government's role will focus on appropriate capacity building; 2) financing the preparation of Urban Management Development Plans in selected areas, to identify priorities, improving operations and maintenance, and maximizing investment benefits. These Plans would analyze current operational efficiency; detail existing maintenance; identify physical assets to be rehabilitated; and, determine service demands. Also financed will be investments in selected service sectors; 3) financing least-cost priority investments, based on system improvements, lowering energy usage, including related investments to water supply and sanitation utilities. The Utilities will be grouped in three categories: Group A, will consist of three Utilities that have undergone financial, institutional, technical, environmental and social work during project preparation; Group B Utilities, will be expected to reach financial viability, and cover all operation and maintenance costs, by 2009; and, Group C would target areas lacking social cohesion, or affected during the postwar period, provided with small amounts of IDA credit, in addition to grant financing from other donors; 4) financing the planning and design, engineering for the preparation of final designs and bidding documents, and, assistance with procurement and supervision of construction for investments; and, 5) financing incremental operating costs, salaries, audits, as well as guidance and training for Utilities and local governments on project implementation. A stakeholder education campaign on linkages between improved service and willingness to pay, will be supported.