West Bank and Gaza Southern Area Water and Sanitation Improvement Project

cancelled

In April 1999, Geka, a joint venture between France's Vivendi Water (known as Veolia Environnement as of May 2003) and the local Khatib & Alami, was awarded a 4-year management contract for the water and wastewater services in the southern part of the territory controlled by the Palestinian Authority. Under the contract, Vivendi was to work as a shadow utility with the water operators of Bethlehem, with 87,000 consumers, and Hebron, with over 200,000, as well as nearly 30 small communities. Geka was to enhance efficiency and rapidly improve service quality and quantity of water supply and wastewater services. Bethlehem already had an operator, the Water Supply & Sewerage Authority (WSSA) within the Ministry of Local Government. Geka was to lead the continuing development of WSSA. Activities included leakage control, network rehabilitation, and a program to reduce unaccounted-for water from 50% to below 25% by replacing/repairing water meters and pipes. The cost of the management contract itself was estimated at US$11.8 million. The overall project was financed with a US$21 million loan from the World Bank and US$35.7 million loan from the EIB. In the first year of the contract, Geka installed about 600 water meters and made a similar number of service connections. Pumps were installed and rehabilitated at the Beit Fajar Well in Bethlehem and a new data processing system was set up. A laboratory was built to test water quality and chlorination units were introduced. Pressure sensors were placed in the network to control distribution and a big leakage campaign was launched with the focus on the bulk transmission line. Alongside the physical upgrade, attention was given to training local staff working for the client and local municipal bodies. New procedures were also introduced. However, Vivendi's contract was terminated by mutual agreement with WSSA (the owner) because of the deteriorated security situation in the contract area. Vivendi left on December 31, 2002. None None