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TRANSCRIPT
,4o,qA Wq -CM I I I
rimL w r i REST R IC TEDReport No. PU-1Oa
Thi rep or wasw prep aredforu use w ithi thl0 e Bank andf VIts a ffi iatedv V.rgan.zations
Th,e-y.do not accept responsibility for its accuracy or com"pleteness. The rep'ort may
L~. pU IS MC !. L. **.*J … n- &L.-..
noS be puiisleu' normay It be quotedu as repiesenti ng theiri Views.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
APPRAISAL OF THE
DOUAT.A AND YAOUNDE WATER SUPPLY PROJECT
_ A I. , r%f C %T
A. . 1 IA i 'a.
Public Utilities.Projects Department
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CAMEROON
APPRAISAL OF THE DOUALA AND YAOUNDE liATER SUPPLY PROJECT
TABLE OF GONTRNTS
Pave No.
<WLJ.Am,Wm,, J i
1. intro ducton 1
2. The Water Supply and Sewerage Sector in Cam.eroon 1A. Relation to Cameroon's Economy 2B.* Organ.izatinor and Asi+ano of' .M,-Ciipal
Water Supply in Cameroon 2
3. Existing Water Supply Facilities and DevelopmentrK-Jogrami 14
A. Douala0. YLou-aIe 4
C. Development Program 5
4~. The Project 6A. Description 6B. Cost of Project 6C. Design and Supervision of Construction 7D. Procurement and Disbursement 8
5. Justification 10
6. The Borrower 12A. Organization and Management 12B. "Concessions" and Related Government Control 13C. Financial Administration 15
Accounting 15Audit 16Reporting 16
D. Water Rates 16E. Water Rate ancl Cost Levels 17F. Taxes 18G. Financial Position 18
Balance Sheet 18Past Income 18Adoption of SNEC's Concessions 18
7. Future Finances 19A. Financing Plan 19B. Financial Projections 20
8. Conclusions and Recommendations 22
This report. Trnq prepared bh MIessrs. F H. Lams;nn-nrihnAer. A.F.D. Thvsand J-L. Ropiteau.
LIST OF ANNEXES
Annex
1 Data on Water Supply Systems of Cameroon
2 Existing Facilities
3 Water Consumption Statistics - Douala. Yaounde and Secondary Centers
L Descrintion of the Proiert
5 fot. Gost tiAmatpq enni Taibh1irsmrnnt. Snhizrbil
6( DTer.nTnion o%f e oreign WRerne Costs
-- n+- l+ -- c '-all.. s9wv^ .k
8 Douala Ppulation and Water - 1960 = 1980
0 V- o,-.A _m -,,.2 - 4. - 1C-- -I nSp9 YaondeU±U _ PpJVU.Lai.Lon anu 'wateUrI kJULOLUI11,jJLU±L L7960 - 17U8
1U U. LcreriLenai nt te of Return on rroposed PrVojec
11 Organization Chart and Manpower &--um-mary
12 SNEC - Water Rates - Past and Proposed
13 Sh'`Cw - Balance Sheet 1968
14 SNEC - Comparative Income and Expense Statements 1967 - 1968
15 SNEC - Estimated Income and Expense Statements 1969 - 1975
16 SNEC - Estimated Sources and Applications of Funds 1969 - 1975
17 SNv - Estimated Balance aheets 1969 - 1975
18 SNEC - Assumptions for Financial Forecasts
Map
1 Cameroon - Including Cities with Water Supplies
2 Douala - Existing Works and Proposed Project
3 Yaounde - Existing Works and Proposed Project
APPRAISAL OF THE DOUALA AND YAOUNDE TATER SUPPLY PROJECT
SLt1MAY
i. The Societe Nationale des Eaux du Cameroun (SNEC). Douala,Cameroon, has requested a Bank loan to assist in financing a projectto improve and expanrd the vater supnlv facilities in the cities ofDouala and Yaounde. The loan would be guaranteed by the Government ofGameroon. This report covers the appraisal of the nroposed nrnipnt.
ii. Thb proni+ lnas the h es,at+ pr,irit w in the n.er spnnlv and
sewerage sector in Cameroon. Present facilities in Douala and Yaoundecarno+ provide , wPi nt4
,4 + we .r-4 ,"Aa , ̂r4' of bigh Ac.ynrl eor
during the dry season. The project would provide additional capacitys.UP 4ficlient to meet est.ated Aerand .L LI.tl aboutAU L/ I 978=1,8.
iiiL4.. 57C.A'dJ.J L CZ L MLLLt.Ly cted.L WL LIL-JULJ.LL. corporatior.L .
for water supply in Douala, Yaounde and nine smaller cities. Electricite'u Ca1I1m r k% hJoAJV.Lds %JJRD oJ.L'4 AJ % S.CyapitlL. W i85ULs we.Ll. 4..agd adA
its management will be shared with SNEC. SNEC should be capable ofcarrv.ng ouot l the project dratin the system eofficietly.
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treatment plant with a capacity of 22,500 m3/day, reservoirs, distribu-tion mains and ancillary facilities. At Yaounde, the project wo-uld con-sist of an earth dam to provide for water storage, an additional 16,000m3jday water treatment plant, a transmission main to Yaounde, and reser-voirs, distribution mains, and ancillary facilities. Total cost of theproject is estimated at about -uS$ 7.0 million equivalent, inciudinginterest during construction and working capital.
v. The proposed loan of US$ 5.0 million equivalent, would coverabout 70% of the total cost of the project. Another loan from the CaisseCentrale de Cooperation Economique (CCCE) of US$ 1.6 million equivalent,would cover about 23% of the cost of the project; the balance of aboutUS$ 0.4 million equivalent would be obtained from SNEC's oam cash genera-tion. Total foreign exchange costs for the project are estimated at US$5.0 million equivalent, or about US$ 1.6 million less than foreignfinancing provided by the Bank and CCCE. The financing of localcurrency expenditures is proposed in this case based on the economicsituation in the country.
vi. All material and equipment as well as construction contractswould be placed after international competitive bidding. The project istechnically sound; estimated costs and the construction schedule arereasonable.
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vii. SNEC is in a satisfactory financial position, and water rates,which have recentlv been increased, are adequate. In the future, it isproposed that SNEC earn a return of at least 10% on net plant in use.Based on the nresent rates and new rates proposed in the future. therate of return on the incremental project investment is estimated to beabout 22% in Dfuala. 131 in Yaounde or 17% overall.
viii- With the a-reements reached mentioned in Daraeraph 8.03 ofthis report, the project would be suitable for a Bank loan of US$5.0million equivalent for a period of 20 vears. including a 3 year graceperiod.
(l A?1=T3f T
A "Tiri A tr I T fT^" Myn n,A I rVam,,, , n en,, rnh%,ILrr7Lahb1_V Ur Inrl JLUUAL,A AND Y'AWIMU'DE 'WAATn SurrPfi PR0JTCT
1. INTRODUCTION
1.01 The Societe Nationale des Eaux du Cameroun, (SNDCj), Douala,Cameroon has applied for a Bank loan to help finance a project to improveand expand the water supply facilities in the cities of Douala andYaounde. The loan would be guaranteed by the Government of Cameroon.
1.02 In January 1966, the Government of Cameroon requested that theBank consider financing a water supply project for the capital city ofYaounde. A Bank mission examined this proposal first in July 1966, andfound that an expansion of water facilities at Douala was also necessary.A principal problem evident at the time was that the future organizationof water supply in the two cities was not clearly defined. Another missionvisited the country in April 1967 to assist in clarifying the issues oforganizational structure and the status of a future water authority. SNECwas established soon thereafter, and has been managing the facilitiessince July 1967.
1.03 The main items of work under the project would include the con-struction at Douala of an additional water treatment plant with a capa-city of 22,500 m3/day, pumping stations, reservoirs, and additions tothe distribution svstem. At Yaounre. a tiam wonild be constructed to im-pound water during the rainy season; the treatment plant would be ex-panded to produce 16.000 m3 /mgv more TwAter, and an additional tranqmissionmain to the city as well as necessary reservoirs and distribution systemimnrovpments wnuld be cornsntriiucterd
1_0)1 The project is estim.ated to cost abouTT US 7.0 mnillinn equivalent, including interest during construction and increased workingcanYv1t.-9 I Vr~1 +hn~ Tn-*iV* --l*+ r S fu +fl+~_lA af, rcaitl,and isc the --i portio of a -oa eeo.n rsatetmato cost about US$ 10 million equivalent. Project financing is expectedto be covered byra BRnk loan of TTt 5 r.0 million equivalenrt, a loan fromthe Caisse Centrale de Cooperation Economique (CCCE) of US$ 1.6 millionequi vialntI , nd slf=genr f n ds-+-A -. TTof US$ 0. .iIon. IVhe +tt+l
amount of foreign finance from the Bank and CCCE of us$ 6.6 million
tures of Us$ 5.0 million equivalent for the project and some finance is:ncluded for oca eApiLUi.-ur-es.
1.05 This report is based on informration submitted to the Bank by theGovernment of Cameroon and SNEC, on consultants' reports and the findingsof Bank appraisal missions during Mlarch 1968 comprised of Messrs. Lamson-Scribner and Thys, during October/November 1968, comprised of Messrs.Lamson-Scribner, Thys and topiteau.
2. THE WATER SUPPLY AND SEWERAGE SECTOR IN CAMEROON
A. Relation to Cameroon's Economv
2.01 The Federal Republic of Cameroon was established in 1961 andconsists of two territories: - East Cameroon, formerly administeredby France and West Caineroon. formerlv administered bv the UnitedKingdom. It covers an area of about 475,000 kmn and is about the sizeof Flnain or Sweden, Total onnulation is estimated at about 5.4 millionin 1968. In recent years, population has increased at 2.1% annually.Population density is about 11.. per km2, but most of the neonle areconcentrated in the north, the south central and western areas.Density per km2 of agricultlwral land is 31. rameroon has a grossdomestic product of about US$ 860 million or about US$ 160 per capita.
2.02 In Cameroon, there has been substantial migration from ruralareas to the towns and cities. Urban populationr has increased from about13% of total in 1959 to about 18% today; population growth in urbanareas is estim-ated to average about 5%. The total pcpulationJof.ouala,the country's business and industrial center and principal port, is2L40,000; Yaounde, the coxixtryls capital since independence in 1960,has grown very rapidly to 140,000.
2.03 During 1963-1967, average annual growth for the overall economyhas been about 14.7% bbut gro-wth in manufacturing has averaged about 17%annually. With the exception of a large aluminum smelter at Edea, about100 km distant, manufacturing is concentrated in Douala, where industryis a relatively large consumer of water.
2.04 Due to rapid urban growth, the country is faced with the need toexpand or create water supply facilities in a number of towns. Basicdata on urban areas which have water facilities are given in Annex 1.For 13 small localities in East Cameroon, the Government has entered intoan agreement with Italy which provides for engineering studies andsupplier credit financing of water facilities. In West Cameroon severalcities have water shortages, and Government is enlisting the assistanceof West Germany for the engineering and perhaps the financing of enlargedfacilities in that part of the country.
2.05 There are no organized sewerage systems in Cameroon. In thecities, sewage is either disposed of by septic tanks, seepage pits, orthe storm drainage system.
B. Organization and Administration of lNunicipal lr.,ater Supplies in Cameroon
2.06 Originally, most of the water systems in Cameroon were developedby the Trusteeship Administrations, often using foreign firms under long-term "Gerance" or management contracts to build and operate the systems.In East Cameroon, where Douala and Yaounde are located, the Administrationprovided, through budgetary allocation or through foreign grants andloans, all funds needed for capital works. Under TGerance" agreements,
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Government retained full ownership of assets and was ultimately re-sponsible for profits and losses. The "Gerances" were remunerated forthe services performed of building the systems and producing and dis-tributing water, on a cost plus profit basis. The disadvantages ofthese agreements were that there were no incentives to reduce operatingcosts or construction c0sts since works were contracted to constructiondepartments of the same companies without any competitive bidding. Inaddition to all investments being Government financed, unprofitableoperations due to low tariffs often compelled Government to make upoperating losses.
2.07 In 196h, to try to improve the situation, the Government es-tablished "Societe Provisoire des Eaux du Cameroun" (SPEC), a corporationadministered by the Public lJorks Department with the assistance offoreign staff. SPEC was responsible for the water systems of Donala,Yaounde, Maroua, Nkongsamba and later INlbalmayo.
2.08 In 1965, the Government entered into a two-year "Gerance"agreement with an association of the two foreign firmips, Societe Enu etAssainissement (SOCEA) and. Caisse Centrale de Distribution d'Electriciteet d'Eau (GGDfE), which previo"3slv had operated the Douala and Yaoundesystems. This association operated the systems for SPEC. The watersvsterns in the smnlleir c-+tie of BaFnii,c!srn Tschang, Mknl Edea5__ ____……~~~~~~**~~ 4flJ~~~* ~ ~ W It _ .
Foumban and Kribi were managed under similar "Gerance" contracts byl-erntriritp ridu rm. T-rniin (fED).'
2.0Q Tn -Ainc 1967, Societe Nat-ionale Aes Eaux du C-mrou..t (SnNE)
the proposed Borrower, was created in order to regroup in a more orderlyand efficient .MIrMer t'he m,ajor walter supplies of East Cmeoo. SNE- --- C,ATg
which now operates under "concession" agreements with Government effectiveDecerber 1, 1968, started its operations in Juy 1967 by tak-ng ov-er the"Gerance" agreements for Douala, Yaounde and the nine secondary centersoperated bhyr rCCDEE=SOC1rTA an-, EDC.
2. 10~ Inuu± Isits VCa±te- ouppjly oyjUUris have been mainagedby the Department of Public IJorkcs of the West Cameroon Government. Fourcities in East Cameroon - Abong-Nbang, Bafang, Bafia and Garoua - stilihave municipally operated water systems. The status of all towns withat-Oer s ly s.ystMS isnoted on Na_ I and AnlInex 1-.
2.11 It is expected that NzEC will eventually take over a number ofthe other water supply systems in other cities and towns in Cameroon.howeever, SNECGs management desires to first establish itself firmly inDouala, Yaounde and -the nine secondary centers presently assigned. WThenthese units are operating satisfactorily and a good organization estab-lished, SNEC management will be agreeable to accepting responsibilitiesfor other systems. Such other systems probably would be operated on thebasis of concession agreements negotiated at the time.
3. EXISTING WATER SUPPLY FACILITIES AND DEVELOPMENT PROGRAM
A. Douala
3.01 Douala, economic center and main port of the Federal Republicof Cameroon, is the country's largest city and has a population estimatedin 1968 at about 240,000. Douala is located on the Wouri River, 20 kmeast of the Atlantic Coast, on the 4th parallel and has a humid equatorialclimate. The city area covers about 60 km2. Douala's water supply istaken from the Dibamba River, a large tributary of the Wouri. This sourceshould meet all forseeable future demands. The present water productionfacilities (described in Annex 2), located 12 km east of Douala, builtin 1950 and expanded in 1957, have a rated capacity of about 22,200 m3/day. An 800 mm transmission main extends to the city supplying storagereservoirs totalling 5,350 m3 and feeding about 35 km of distributionpipes ranging in size from 800 mm to 250 mm and 131 km of smaller pipes.
3.02 In Douala. although the system covers the entire area of thecity, only about 15% of the population lives in houses supplied withwater. The rest of the population is supnlied by carrving water frompublic taps. This is the result of the high cost of water connections,past management's reluctance to connect un lower-class houses because ofdifficulties in collecting accounts and restricted quantities of wateravailable, as well as relatively high water rates.
3.03 The nual ity of Douala water i ex aynl l-nt.- in the past, supplyhas been continuous and pressure in the system adequate. Due to thecity's inrhistriql anrd inhrbn growth+., +.ho wTlater imilr ct. rnorw rnnn
supply demand and both industrial and residential areas experience tem-npraryTv sho+rt,ages Water con,va¶m + stt sn+ic u+a4 paI++erns anA
service connections are shown in Annex 3.
3.04 ~Van ̂eA, cap-;+al1 of th Feea IRepubli 4c of C.roon -a - n
estimated population of 140,000. Yaounde is built on a series of hills-wlt-h an altit 4ude ,-,gng fror, 1720 r, 4o -0 r% ., and -a -- 1rpclcl,mWVJ. tL1 . LL .. U4.LU Ue~ rall.LL .1.r L.LUUI I CV III IA 7V- III, dtlLU lili:t a L,1VPUL±UCI,. L J.1 U -lcU e
but is somewhat cooler and less humid than Douala. The city's areacovers about I" i-2
3.05 Yvaoundes -water suppi-y is taKUen frrUMl thzie Miefou River at rlIop±ou,
about 7 km distant. During the dry season the low flow of the Mefoun±ver does not cover Yaounde's demand and shortages nave been experiencedin the last two years. The present water supply facilities (described: _ A _ __ _ . . . . - /_ _ % _i" annex 2) were constructed in 1950, ana expanded in 19o6-1Y94. Theyinclude production facilities with a 16,000 m3/day capacity at Mopfou,a 50U mm pipeline to the city, a booster pumping station, storage reser-voirs totalling 4,250 m3, 1 km of distribution pipes ranging in sizefrom 700 mm to 200 mm, and about 91 km of smaller pipes.
.vo nbou 20-4 nof ve _U"ab4 'an's iv4-e 4n house supidw+h a+
the remainder use public taps for similar reasons as in Douala (paragraph' Water cons-aziwipt±uon statistics (unlnex j3j) sbow tlJaL as iin £&Aual a,
municipal public taps and Government consumption represent about 45 to 50%of total consumption, thus stressing the importance of Governeritl andmunicipal accounts. In general, water quality is good, the exceptionbeing water taken from some badly designed public taps where pollutionmay occur. At present, a program of distribution works financed by theCCCE is almost complete and will extend the distribution network to newresidential districts. Water supply is continuous but pressure in partsof the system is low and water shortages will persist until the new pro-duction and transmission facilities, to be provided by the project, arecompleted.
C. Development Program - iater Supply
3.07 Over the period 1969-71, SNEC proposes to invest about US$ 10million equivalent to expand and improve its water supply systems and in-crease its working capital (see paragraph 7.01 for details). Except forthe project in Douala and Yaounde, no other firm plans have yet been made.The proposed project is the main component of the development programand represents about 70% (US$ 7.0 million) of the programt s cost. Thebalance is for buildings, small extensions of distribution networks andconnections (US$ 1.1 million), completion of a prior program (US$ 0.8million) and working capital of US$ 1.0 million in addition to that in-cluded in the project.
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4. THE pROJT'rT
A. Description
4.01 The proposed project, based on engineering and feasibilitystudies pr-epared by SNEC and t-wo French Consul tarits (Bureau Centrald'Etudes pour les Equipements d'Outre Mer (BCEOM), and Electricite deFrance (EDF), will expand and improve the water supply an'd distributionsystems of Douala and Yaounde. A detailed project description is givenin Annex 4; locations of the proposed works are shown on .`ap 2 forDouala, and Map 3 for Yaounde.
h.02 Tne Douala sub-project provides for expansion of the productionfacilities at Japoma and for additional reservoirs and main distributionlines. The capacity of the system will be almost doubled and shouldsatisfy Douala's demand up to about 1978. The works will include a treat-ment plant, nominallx designed for 15,000 m3/day, but with an effectivecapacity of 22,500 m-/day, low and high lift pumping stations, two 5,000m3 reservoirs with booster pumping stations, and about 7 km of distribu-tion pipe in diameters ranging from 350 mm to 500 mm.
4.03 The Yaounde sub-project provides for construction of a 15 mhigh earth dam to provide a 5 million m3 reservoir, a new 16,000 m3/daytreatment plant, a pumping station and an 8.3 km transmission mainto carry the water to the city,,a new booster pumping station, distribu-tion mains, and two new 3,000 m' reservoirs. The project will double thecapacity of the Yaounde water system and allow demand up to about 1980to be met.
B. Cost of Project
8.04 Total cost of the project is estimated to be about CFAF 1,737million equivalent to about US$ 7.0 million, including interest duringconstruction and increased working capital requirements due to theproject during the construction period (increased accounts receivableand inventories reflecting, expanded operations). Foreign exchange costsof the project represent about US$ 5 million equivalent or 70% of totalcost. Cost estimates, summarized below, are given in detail in Annex 5along with quarterly expenditures during the construction period.Assumptions used for estimating the foreign exchange component are shownin Annex 6.
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Local Foreign Total Local Foreign Total
- in millions CFAF- in millions US$ equiv.I. Vouala
Civil Works Contracts 99 173 272 0.b0 0.70 1.10Supply Contracts 7 139 146 0.03 0.56 n .. by
Sub-total 106 312 418 0.43 1.26 1.69
II. YaoundeCivil Works Contracts 226 384 610 0.92 1.55 2.47Supply Contracts 12 220 232 0.04 0.90 0.94
Sub-total 238 604 8b2 0.96 2.45 3.41
III. &Egineering & Supervision 25 75 100 0.10 0.31 0.41
IV. Contingencies & Escalation 62 158 220 0.25 o.64 0.89
TOTAL WORKS 431 1,149 1,580 1.74 4.66 6.4o
V. Interest During Construction - 86 86 - 0.35 0.35
VI. Permanent increase inWorking Capital 71 71 0.29 _ 0.29
rPn'P~~~AT DW 'rmI ,- -7 -i, - f'- i- r-I *-, ,- LTOT^T~~~~~~~ ~ ~ ~~~~~~~~ PP.u^ 50 1,23 1,D 20 .01 7.o4
Construction costs are derived from consultants detailed engineering studiesand are reasonrable, although somewThat conservative. gineering andsuper-vision include not only estimates of consultants' fees but also cost offnreigan personnel rdi rectfl iynn empl^ye fo-r prnonet. supervlioi n -Cnti ncrpni P..-provide a margin of 15% and price escalation of 4% per year has been added.Lyterest d-ing co'nstructionv of CGF.4Ft Rt mi-o,n , inclnc jntres on the
IBRD loan of CFAF 75 million and on the CCCE loan of CFAF 11 million. Thepermanent 4 in- 4 -or1kn capa1 i ncl d in project t AL, 7Hss s~~.Lll-sVWLs U| VO J.*1 tVJ. a.LLr .,L - Usb _L iL _Ls|A1 UCUa e.L X.%J q;% ,VovW D %D>vx I _L
million) covers increased accounts receivable and inventories during theconstruction periodu ouu±y. Tbe project is ex,,ected o Lbe iLlU by terLy
1971. The construction schedule is shown in Annex 7.
C. Design and Supervision of Construction
4.05 Detailed engineering and bidding documents have been prepared bytwo French consultants, BCEOM for the Douala and Yaounde wqater supplysystems and EuF for Mopfou Dam. 6CU, with the assistance of experienced
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staff from EDC, would handle bid evaluation and supervision of cons-trurtionn c!alling on ECEOM- EDF or other engineering firms as needed.This is considered satisfactory.
4.06 Management of the project would be the responsibility of SNECtsTechnical Director, who is alqn in nhirge of' the. Tpeehniral Tnlnartmentof EDC and ENELCAM (Energie Electrique du Cameroun) and who has developedan exvprienced teamn of enacn.earm anti te.hniGinns. Thp pasqt record ofthese companies in handling large civil works construction has been
L.07 onstrcetion w?old be d'ha hyone b cntractors, Th Ar 141V tobe local affiliates of foreign firms. It is therefore to be expectedtha.t con.tractor'S e-cuti4 anrd mv%¶,.ef t o+nff wo in4lld be e t
this is one of the reasons for the high foreign exchange component ofthe Ypro'Ject.
D. i,vcurrn' d DA e.r.t
L.+.- -l cor.tracts, ±w.hetu&O fLo goods or---- IJ± se "_es wo%.d
be placed after international competitive bidding in accordance with then-a"! Gu-deli,es. ThIere would be rno -loca-l ->F- ofeqimn.P=qualification of contractors and suppliers was completed in January 1969.Allot-at r eetdt be- fi--ze 1--- June '1969. SNy does _otA-k..LJ%. J±LWUI L.;0 (1±tu zAPtJOkUUU LjU Ut LJt .IIa.LJ.L U LJ)f U UWU .L7U.J7 * JiAJK S..LJ' J v'
intend to award contracts until the loans have been signed. It is recom-menLdUU thulat reJinesIinent for eNuAeUIIU.Jue zlUaue u±usru wd sVv I .Lu O.LrI,C;A
be limited to engineering costs of outside consultants incurred afterUU4LU-r>J a, 1969,1 iestimaieQ t.o be iess wiaii uoS$vu,uuu.
4.09 Financing for the project would be provided b-y both the Bankand CCCE. The Bank would perform its own loan supervision and contractapproval. Boh loans woulid be disbursed against all contracts, includingengineering consultants, on a pari-passu basis, initially 75% (Bank) to2,% (CCCE), the percentages subject to revision by mutual agreementu bO
assure simultaneous draw-down of both loans. Procedures for this haveLbeen agreed to.1111WD BDddJXM. CLAlU CLCE -w±±-i l hILLOUlle oUIher Q.f thei1Ur iL'UU±,JV-LtIo
to disburse as each request from SNEC is received. Disbursements wouldbe rmade again-st appropriate docuentation Of imported supplies andcontractors' bills as rendered for construction contracts. The Bank wouldalso disburse for interest during construction on its loan but CCCE wouldnot (see paragraph 7.04).
4.10 Engineering and supervision costs incurred for SNECts own staff,.lterest on the COCCE loan and working capital (a total of aboout US$0.14million equivalent) would not be covered by the loans, and would befinanced by SNEC. Although the Bank would not be financing more tnan thetotal foreign exchange cost of the project (us$5.0 million), because ofthe joint financing with CCCE, another foreign source, and the pari-passudisbursement, the Bank will in effect finance local costs amounting toabout US$1.1 million.
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4.11 SNEC is exermt from the uavment of import duties and similarlevies on all goods used for construction of facilities, whether cons-tructed by contractors or bv SNEC itself.
4.12 The Concession agreements between SNEC and the CameroonGovernment specifically grant to SNEC all water rights and water usagenrivileges. The ConneAsion agreempnts also state that the government;ill, for the benefit of SNEC, make use of its rights and privilegesreLardi_n. land and prypertv acqri i tionns. Tands nenessarv for thecarrying out of the Project have already been provided, or shall beprocured- -fnr the benefit of t.he nnrernwPr before the loan becomeseffective. The Government has also agreed not to permit any pollutionof the Miefou watersh.ed upstreanm of Mnf'ou danm nor of the Dibamba Riverwhich would andanger water quality.
4.13 If any surplus funds are available after completion of theproject, and if SN e-s reqi1_c+.gq 4i-. J the intention to financeadditional distribution works in Douala and Yaounde, subject to anevalaintion of the neds Ian the evX-isting situiation at that time.Such additions would not be undertaken without Bank approval; other-'Tr S 1 le hinrircf Q '-,if,1 rl ho e-nt'c1l 1 inr
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5. JUSTIFICATION
5.01 The Government gives high priority to the provision of ade-quate water supply to Douala as Cameroon's commercial and industrialcenter, and to Yaounde as its capita. TLn both cities the existing waterfacilities are fully utilized and shortages are experienced during themonths of high demand and periods of peak flows. Tne proposed projectwould nearly double water supply production facilities in each city, andmeet requirements until 1978-1980. if the wrater supply systems are notexpanded, Douala's industrial and commercial growth will be hampered, aswill also the capital's development. Lack of adequate water from a publicsystem would result in the outright elimination of some development andwould cause individuals or companies to attempt to obtain water in otherways and at higher gross cost to the country.
5.02 From 1956 to 1968, the population of Douala has increased atan average rate of about 5% per year, due to annual growth as well as in-tensive migration from other parts of Cameroon. During the last fiveyears, water demand has increased at a higher rate of about 8% annually,but in the last three years, the increase wqas more than 10% annually,primarily due to industrial development. About 34% of sales are to in-dustry. For the future, it is estimated that water demand will increaseat a rate of 9-10% annually in Douala. Past consumption and forecasts ofdemand are shown in Annex 8.
5.03 In Yaounde, ponulation growth since 1960 has been at an averagerate of about 8% per year, and water demand has increased comparably.This reflects the establishment of Yaotnnde as the nationts capital andintensive migration. It is expected that growth of water demand will con-tinue to hb at a rate of about 8%. Past consurunptinn and forecasts ofdemand are shown in Annex 9.
5.04 As mentioned in paragraph 3.02, in the past new connections tothe T.e.ar systems have been discoliraged. The in rpaqed canacitv of the
systems after expansion will allow SNEC to encourage new connections andmanagement inntends to promote cornections to lower lass houses, therebyincreasing the population served conveniently, as long as collectionsfrorM such customers are sat 4nofacto,r,y
ifO Rell t `able stati stics on diseases carri;edu b1y ir,sanitar wmate~r are-I2, .%J.J) Reli .LJ. u .. ~ LI u L.O.J. £ _ L J UV
not available in Cameroon and possible benefits of the project in thisregard cannot be quant4Ued. In general, however, -bo,- -e diseases dorepresent a problem and this problem would become progressively moreserious as populationd ipcroeases in iotara ante taounde, unlthe id wateed.systems are expanded to provide sanitary water to meet the increased needs.
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,.o6 As noted later in this report (paragraph 6.21), water ratesare expected to be increased substantially. It is unlikely that thiswill result in a reduction of demand of any significant magnitude. Memajority of the population obtains water from public taps and does notpay for water on a usage basis, although the municipality does.Domestic consumers normally have quite high incomes and are not ex-pected to reduce their usage as rates are increased. Industry andbusiness are also expected to maintain past water usage habits althoughit is possible that higher rates would result in some water conservationpractice on the part of industry.
5.07 Alternative sources of water for Yaounde were considered by theconsultants before deciding on the proposed project; for Douala, thepresent source is large enough to be utilized further. Selections of themany different components of the proposed project were based on economicevaluations of alternatives using a discount rate of 9%.
5.08 The incremental rate of return for the proposed project isestimated to be about 17%, about 22% for the Douala sub-project and 13%for Yaounde, (see Annex 10). These financial rates of return are calcu-lated by valuing the water sold at its proposed selling price. The project'seconomic return may exceed this since the value of water to most consumersis higher than its price. Consumers' alternative methods of obtainingwater are much more costly than the supply of water through the proposedwater system.
6. THE BORR0WE
A. Organization and Management
6.01 5i-EC is a corporation created in June 1967 to consolidate anumber of water agencies operating in East Cameroon. SNEC has a totalshare capital of CFA' 100 million and its shareholders are the CameroonGovernment and political sub-divisions (22%), CCCE (11%), and EDC (67%).The main shareholders of EDC are the Cameroon Government 51%, CCCE 37%and EDF 5%.
6.02 SNEC is administered by a board of 12 mambers elected by theshareholders. Government, through its direct holdings and its controlof EDC, can appoint the maj-ority on the Board. SNEC has entered intoa service contract with EDC whereby EDC's management is actually re-sponsible for SIEC operations, and SWEC will share staff with EDC withcosts prorated between the two organizations.
6.03 EDC was created in 1963, and has concessions for supplyingpower in the same municipalities as SNEC has for water. EDC also sharesmanagement with ENELCAM which produces electricity at a plant in Edeaand has only two customers, EDC and ALUCAM - an aluminum producer. Theintegration of personnel reflects the integration of the public utilitiessystems at the senior level of management, and the special relationshipsbetween EDC and SEC. The main advantages of these arrangements are toprovide SNEC with a highly competent management already successful inCameroon public utilities, to coordinate operations between water andpower seetors and to economize on overhead and operating costs of theorganizations.
6.04 Because of the SIEC/EDC service contract, the General Managerof EDO is also the General Manager of SNEG. MEDfl. Gfeneral Manager isappointed by the EDC Board, on the proposal of the Board member whorenresents EDF. (Actually; the General Manager is an EDF staff memberassigned to Cameroon on a long-term contract.) He exercises mostpowers on a day-to-day basis, and is assisted by three senior executives incharge of technical operations, finance, and administration. Since EDCO Smanagement is a knowm quan-tity and has performed well. it is to SNC' sbenefit that this management carry on its operations. It has been agreedth--t tl.e p- ,--en s-rlie cor.tract bet.en EDO and S.hTEC .2ii not bemodified or cancelled without Dank approval, and that changes of theGeneral 'I-Inger wil;l be nAde only after prior conaultation ith theBank.
6.05 SNEC employs 369 people including staff shared with EDC (and,through EDC, ENEIAM) . Ar. organization chart with a manpower smnmaryis given in Annex 11. Staff is sufficient and not excessive for thecontemplated level of operatiOnS.
6.o6 SNCII -a Ind IU tehia sevie are -eaaet reMC cct theuj.'J LflLu d4I U %£J.J 0 Ue IIL.41L;(d.J 0t.e.LV ±LL.e: di . a 0tPLL<U: iU ± L _L~ V A,S
technical difference between water and power operations. SNECfs technicaloper-atiOnS LcneILtrte.LL o1n Pr-VUcUUUIr duU U±tibUVUUU.LUIl Uo. VW ter UpJ UV
the individual connections. The installation of individual connectionscurrently performed by SNEC, is expected to be sub-contracted to localcontractors in the future. This will decrease the number of artisansemployed by Sli-.m In aondte, wnere many new connections ana extensions ariebeing made, total manpower of the center is scheduled to decrease from thepresent 152 to 77 by 1972. It is expected that this reduction wili beaacomplished through attrition and reassignment of personnel to other cities.
6.07 SNEC plans to use its staff for supervising project construction.Engineers will be those who supervised costruction of Mbakaou Dam for EDC.This small technical control department will be common to EDC and SNEC.
6.08 Most of the executives are French (a total of 31). All fourtop executives are French, as well as five of the other eight seniorexecutives. African foremen, however, about equal their foreign counter-parts. For upper levels, SNEC plans to recruit and train, in Cameroonand in France, African Personnel and hopes with time to reduce the numberof foreigners employed. To overcome difficulties in recruiting qualifiedAfrican personnel at low and middle levels, SNEC has created a school totrain water treatment technicians and plans to adopt the same methods oftraining now in use by EDC. EDC, in addition to its technical school(5 instructors teaching 3 to 6 month courses to 80 students per class),sends the best students to France to complete their studies in schoolsrun by EDF. These arrangements appear satisfactory and no funds are in-cluded for personnel training in the Bank loan.
6.09 Personnel recruitment goes through a Governmental Agency "Officecie la Main dIOPvrP"I whosep rioiihl pnrnnpos is to regu late. the emnlovmentbecause of the scarce demand and to limit the number of foreigners em-nlovpd. Salaritz anH war*.- are o.nntrolledl thrcamh eonventions signedbetween SNEC and Government. Personnel, in addition to their salaries,ennoy famnly allowances and libhral fringe bnnfits comparable to theFrench system. Because of the varied origins of the various wateragencies SNRr presently has three diffront. t.vnP of conventions bht.is in the process of adopting a uniform convention tailored after EDC's.The future convention is deemed at least as liberal as those used in
private industry.
U. !!Concessions"L dLanU lRelated lGoverniment Con U r.L
6.10 M -willoperate -ar.der il'oncess-onil agreem,ents. l,ese con-O .V w1dJ. W±LJ. UIut UILt,V UViI _~LUi d 1L~ iJ~D .
cessions are 40 year contracts with the Government, during which SNECtakes over UanU operaetai trhe watetr jrdu-uctiUon a-n d disuriu±ution sytstes o n
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a conmercial basis and with full legal and profit responsibility. Threeconcessions have been granted to SNEC - one for Douala, one for 7aoundeand one for the nine secondarv centers. Each concession states SNEC'srights and obligations to the Government and the customers. The con-cession documents, already reviewed bv the Bank. were signed NIovember 30,1968 and became effective December 1, 1968. Both Government and SNECwill guarantee that the concessions will not be cancelled or modified ornew concessions added without prior Bank approval. From all presentindications, evidenced bv EDOts performance SIEC will relieve the Govern-ment from past burdens of meeting operating deficits and should be ableto cover much of the new PA;ta+l inrestmnnt needed either from its ownself-generated resources or from amounts borrowed on its own performancerecord. S\C is a-lsn evnectet- to nay a dividend of 5 on its nominalshare capital of CFAF 100 million; Government, however, would not receivea retuirrn on assets contrbuted, valued at a-bout rFA 2,000Tn million.
0=11 Al+tiomah Ynnnnoerm-n+. mrill bereposil for RUFfq nnperations;Government can exert control through its nominees to the Board ofDirectors. Boand decisionn wounld also ref ec+ the participation of COCEand through the EDC participation, EDF. In the Government, the Ministrynf PlAn andA ThDm1vzImon+. i9, respnsible foP'r 1r+la.4rnr w4+rh Af li The
Ministry signs the concessions and receives monthly and yearly reports%-rh4i h innl',ire~ fNnnvrOis +v-, .,+isticn's a3,r.d imra Jf'r of
The Ministry of Public WXorks reviews technical aspects, and must approveoerrmroTn psnrograms as.well as o7n^r *on.i1i ;e hf'r'^ +.> nro ol nrCiin operation.
6.12 Although the present concession approach has the definite prac-tialadrtae f 4 r.g_ C& ervoon -e" -ft--A ulc *n+v ytm,i
has some disadvantages. First, there is an implicit rule that a conces--i-r%.ai sho n d. A cover V hLUIs cost4.s ou a. rfit. V ,h'I IiS ,h4m,
to adopt accounting practices which result in low reported earnings andhigh cash generatn 4 . .JO- Ai±UA, 4.e1,0 is -oUJ t.denc--y to overi est
since future cash flow is increased by the resulting depreciation andallowed rese4rves. mhird, ath.ough waer rat-es, an essential part of theconcession are related to investments and cost indexes, the concessiondoes r.ot ir.ro +1 -U. -ocp -v -h raeo-rtr in -Agn -- ForP 1-- 4
performance. With regard to the first point the Bank and SNEC will dis-'*V.A .4. tLLi, m U t .1.11± t CO nCe c 0csion aLL..LLangemm.nts in order UV , ove
them. As regards the second point, it has been agreed during negotiations+1-4t SKMrC -w1-1 sS-U-'t for 10r-1 aprov_isinves4re rora d4t+h1.11.5. ~Jiuuj VY_Lj.J. OUuLilI L .U.L ums" . LJ.XI. J.L-UVd.L. J.U -1. .LJ O .1110±11
41U FIU6,±CLII.LLL AA.416L VAIS'
construction period if it exceeds US$250,000 and after that, submit for4.0 4.11 1. .10 0.LIIUCJ L.IO UZJLI1.
1 .1Ji .LI,04 .L.L LIII±0J. VdLLEO0U U1J141..AJ', VSJ%J .. '.11. U144
third point, the rate of return concept has been introduced in the ratecove---4t ofP4U I-- -uh lo- agreemer.t '.J --Iiv thes -au4. --- rre,nt -h -'d -- 4---IoffseLtM.LL.1 WiU -L1.41. C%. d%4001I10LL.1. 110 Uth, limitatin iLInheirn tothLeconcesIsLon pIproUa.LLh
offset the limitations inherent to the concession approach.
C. Financial Administration
Accounting
6.13 As required by the Government, in 1968, SNEC presented separatefinsnc±al statements for each wa.ter operation and the Centra.l Servicesbut no consolidated statements. Under the "Gerance"' Statutes there wereeXtensive irlter=conpaqy transfers, the Central SerVice-s acting aS a bankfor the different centers. SNEC plans to eliminate inter-company trans-ers, correct certai accountjg miscornceptions (e.g., chnrging to income
amortization of long-term loans and introduce a better breakdown oftLh oper0at4L..0r '&a c. ouwnt 4 s \(wa.ve, 4Lbaincome from conn.ections, other.)
~ 1T3,. a-.... . ..4 41. n __r+a nvg-l t Will6.14~~vr T3de r th.,e terms3 of 4thLe con.ce3ssion aree.s ie seswl
be revalued annually using economic indices. SNEC plans to establishthr ough,I a p.;.-sical i..Ver.tIUoxr t.h14ue c-trrenlu ~valu ofase.
6.15 t~IL.Mr- of SIECIs accoun.t:.g operat-ion.s _areca ct 1- ly do-nea by, E.ncaCustomer's bills are common for both. Receipts at the centers areca rrL - j1 i £d In ED(is buuoo'_ic ar,d amj-IfJ..t,s du.e S,LTJ.iS are ltran.Se=ek 0r-- t;mesa month. Customer billing is done in Douala on EDCts IBM accountingequipr,mert. SQ1Y0C LS chargeud at, coust- 1"or the1-4se services.
6.16 Since July 1, 1968, collection of private b lls is either .ade
at the house by the meter readers or at the utility office. This experi-mentv has beern fairly successful, Ln lYaounde especially, but it is too
early for results to be fully conclusive. Outstanding receivables forprivate customers average about one mortlh due to a rigid SNEC/EDO policyof cutting water and power when bills are overdue. Such receivables aremore than covered by required customer deposits.
6.17 Bills rendered to Goverrment are settled slowly; in the past,an average of eight months receivables have been outstanding. The Centraland territorial Governments have normally paid more quickly than havethe municipalities. To facilitate and speed up the collection from theGovernmient, SNEC/LDC requested that the Treasury centralLize the paymentof its power and water bills. This was approved in October 1968. Govern-ment has agreed that governmental accounts for water billed by STNECbefore June 30, 1969 will be settled by December 31, 1969 and that in thefuture it will pay or cause to be paid promptly, its bills or the billsof its political subdivisions.
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Audit
6.18 SNEC s statutes establish that an auditing of the accounts mustbe done prior to the shareholdergs assemiblyv Thp sa-me anditing pro-cedure is required for EDC, which utilizes a French accounting firm,which sendq expnerts from Paris Trn the niuure , an al'di t by qulif ieindependent accountants satisfactory to the Bank is required. Thefirst audit of SNR J as the connpmmionnaire ui11 hp for the fri :"ai1 ye-arending June 30, 1969; SNEC will take steps immediately to appoint anauditor Ho that necessa-ry prelir-nary w-Terk can 'h dAne. An aiirit bythe Govemrment's Ministry of Plan (for SNEC and EDC) is also requiredwithin smi mwn+.+hs after th.e en.d of the fi8c!l "ear.
6.1 SNEC wf-ill ha-e monthly and yearly reprt fr 44""' 19 _urS, ~... 4 - 1-& 1 hs o A.Q hl . .IsO ., A _ O"_'A|-4 _4 |- 7
ment. Monthly reports will include an operating statement and salesand w^erat+-4lg costs 'b-y cenrter. Th.e yea.-' report . - ... Li .,".y theW
shareholders' report. In addition to the reports, SNEC will makesevra '-4- ''J -4-OUO Jtd.±.LLVb L,- - UU 4U.~~L ~L ~. 4U 4,CL4.--eeS forLecasts irLA,cLWA4-"J6 aL yUeLarny ir.-v-estUme.t forecastU, ar.d a devailed
monthly cash flow forecast. Identical reports and forecasts are al-reaAsrlr h ,4"n- n A - _- Lv, . .U., t- _ 7J 1Um. V i. Aim an J.-p esi_e ILA -I-a __d_ _
D .. _ Muvo
6.20 All water se.-vice conuections are Mreter-ed. Meters are eitherowned by or rented to the customers, but in the future customer owner-ship wl-l be abolished. The miet+er charge varies with Lhe size of themeter which in turn is determined by the size of the connection.Differen.t rate stu ructures apply to domestic connectionQ, industrialcustomers, public fountains and Government. Government and domesticrates are the sam-,e, with lower rates Ior puDiiC fountains and volumediscounts for industry. There are no exemptions from payment of ratesad rno discrimnatory prices.
6.21 tMTew rates ar-e incl-uded as part of cocesso-wreapproved on Movember 30, 1968 and became effective on December 1, 1968.Th&e new rates are about 30o0 zugiler than recent rates. Another rateincrease of about 40% is projected, at the time of project completion.D- 1973, projected rates will be sufficient to provide a return on netplant in service of about 12%, with increasing returns thereafter.r-oposed rates as well as past rates are noted in Annex 12.
t ne T__ 1 -_ _ __ . - I _ u .c* in the concession agreements, a eeiling water rate is establisned;this ceiling rate is adjusted according to a number of economic indices.SNEC can establish its rates at or below tnis ceiling at its discretionand in fact now projects that it will only charge 95% of the ceiling rate.
, '7
In tne zuuure, i; can 'e expected tnat if rates cnargea resuit inexcessive cash generation, water rates will be reduced below thoseused in projections (Government nas a major,ty on SNECs Boaral.
6.23 In the case of development of the distribution system, theinterested customers are required to both pay for the extension of thedistribution pipes in new areas and for the comnection to the main.As an alternative to paying for extending the distribution system,customers may sometimes guarantee minimum water sales for five years,based on the distribution pipe diameter.
E. Water Rate and Cost Levels
6.24 The water rates allowed under the concessions are very high,equivalent to approximately US$ 1.00 per thousand US gallons after projectcompletion, or over double the rates charged under comparable conditionsin most developing countries. This reflects a high general cost structurein Cameroon, and high estimates of costs by SNEC to be on the safe sidewhen past operating and cost data are either non-existent or of question-able accuracy. Power costs are high because of very high electricitytariffs. Chemical costs reflect the high cost of importation and merchantmark-up. Salaries, especially those for the foreigners, are high tocomnensate for the hiah cost nf living and to attract Euroneans to thecountry. Acministrative and general expenses reflect high general costlevel s. and t-he high nost of fringe henefits for nersonnel. Spare nartsand maintenance costs are a function of high investment costs and, inaddition. nrobablv have been over-estimated to provide a safety factor.
6=-25 T)Depreciantion charges are based on shnrt usef'ul lives for equip-ment and also reflect high past investment costs in Cameroon, which wereat least. *0% higher4 +thavn in Ew-uron feralnlll, m-nageTmPnt. is exYnectedi to
use resources (power, labor, chemicals, etc.) efficiently, but theseresotirces are costly in the eourntv-
6.26 The water rates proposed also result in 51sbistantial retr1-nsto SNEC (see paragraph 7.07), and, in addition, Government will benefitfror.receipts of incor.e taxes. T. ,AA4+4,;t lor. Thc1I v.,i 'l ecarry par+
of the costs of EDC management, EDCts overhead costs will be lowered_hich C 1,.- -4.. l...,., T+ T 1flr _w;ick A 14,y eve -ntually "Le reLm.ectVed in lower pV"tr aes t ''b
expected that if SNEC costs actually are less than projected or if thereisO no JL&ustAb.L4.Le r.eed o au LVgeneaoir'RV1ViorV-.VL aso note-, water rates wallbe lowered. It has been aGreed tilat the B,34c, Government and S-IT]C Till
discuss tari2 L policies a"T te time of proJect com.pletion and from timeto tine thereafter, after Inouledge of operating costs and needs foraCLdLdtona_l Linvestmenat are better klowni, to assure thatll wteUrl- rates C1-M
adequate but not excessive.
F. Taxes
6.27 SNEC as a corporation will be subject to income and othertaxes except import duties.
G. Financial Position
Balance Sheet
6.28 The estimated balance sheet as of June 30, 1968 is provided inAnnex 13. This balance sheet has been prepared from available data andhas not been audited; meaningful financial statements prior to 1968 arenot available. The balance sheet shows a satisfactory position. Long-term debt to lenders, other than the Government, total CFAF 54 millionon original loans of CFAF 196 million, or 3% of total equity. No majorborrowing was made between 1958 and 1967. The limited investments weremade through internal generation of cash or Government grant. The lasttwo borrowings were CFAF 9 million in 1967 for improvement of Mbalmayoand CFAF 190 million in fiscal 1969 for Yaounde. Both loans were madeby CCCE. The current ratio at 2.8 is satisfactory.
Past Income
6.29 Income statements for 1967 and 1968 are summarized in Annex 1L.Operations were barely profitable with return on assets in use onlyabout 1%.
Adontion of I\NEfl' Glonessions
6.30 'ovaymyent is now undertaking a settlement of all accourntswith the various "Gerances", which operated the systems up untilDeeQmhper 1968 Thins settlment is expected to take place over a periodof two years. During this period, SNEC will liquidate "Gerance" accountsfor the rinver.m.ent. Goverr-ent has a-reed tlr-t ar.r accounts to bntransferred to S;1C shall be subject to audit to verify value.
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7. FUTURE FINANCES
A. Financing Plan
7.01 A forecast of Sources and Application of funds for the years1969-1975 is attached as Annex 16. The Financing Plan for the years ofthe pronect imnlementation 1969-1971 is surmarized below:
Total TotalYnars ending June 30 196Q l970 1Q71 1969-71 1969-71
-C_F--------CArancs-Mlions -US$000 Equ.
Application of Funds
Project - Fixed Assets 1488.3 91.7 1580.0 6398...r '.t
Constructionl/ 56.7 18.3 75.0 304Prior Progra,- 190. 19.0 76
Distribution Pipes/)Coririecons i - 1iV) 69. 8.o 155.3- 629 u-
Buildings 61.1 62.4 123.5 500Dividens U - - 5e .0 5. 20 Net Increase in Wiorking
Capital (excluding cash) - 48.4 91.6 140.0 567Increase (Decrease) in Cash 63.5 ( 9.6) 124.5 178.4 722
Total 253.5 1714.2 479.5 2447.2 9909
Sources of FundsInternal Cash Generation 105.6 166.0 414.4 686.0 2778Less Taxes 3.2 - 18.0 21.2 86Less Debt Service 38.9 46.1 112.9 197.9 8u0
Net Cash Generation 63.5 119.9 283.5 466.9 1892
Proposed IBRD Loan 1153.0 82.0 1235.0 5000Proposed CCCE Loan 372.0 28.0 400.0 1619
Prior Program CCCE Loan 190.0 - - 190.0 769Customers' Contribution - 69.3 86.0 155.3 629
Total 253.5 1714.2 479.5 2447.2 9909
1/ On IBRD Loan; CCCE interest of CFAF 11 million during the period ofproject inplementation is deducted from cash generation beforearriving at net cash generation.
= 20 -
7.02 Total requirements for the period 1969-1971 are estimated atOVAL 0). L 7 rl'ior.. _ M. The prpoe 'nk_ Io^ of -4 '^ O L Ie) r,lli Jon wou 'd%JVtX LL44 f 11LL±±±L_JiI * .LI.Lt- 1J9LVy3.UDU L±XIIM. ±U~.± V-L %dVLJV±4 .L) AILJLLfl W.LLJ'A.
cover 51% of requirements, CCCE loans of CFAF 190 million for prior.LaXUlLL±I.J. tCUL1±L1 I1U UJ. tjrJliX L4JV 1Ii±LL ±±0IiU ±LU.L- UL1#:L .L jf JJZ%;I WVUU.JAL IAJ
24% of requirements. Cash generated internally would amount to CFAF 467__ I -i rvff .L ___ _ t L 2T.I1 AAT,'1 r'r'm=''..Lon ku± .lyF ofL requir±enents), ari cusrioirLer cont,rLbutions (FrAr 1525
million) cover the balance. Requirements include a build-up of cash ofCFAr 178 million which provides a cushion if adverse events develop or ifexpansion programs must be undertaken in the secondary centers.
7.03 The proposed Bank loan of US$5.0 million is assumed to carryinterest at -< and be amortized over 20 years, including a grace periodof 3 years. The CCCE project loan is expected to carry 4h interest,with amortization over 15 years including 3 years grace; the CCCE projectloan on satisfactory terms and conditions would be a condition of effect-iveness.
7.o4 The proposed Bank loan includes interest during construction;CCCE policy does not allow for this and interest on its loans mustbe paid from operations. Interest during construction on the Bank loanis justified on the basis that were it not included, the funds wouldhave to be borrowed elsewhere to arrive at a conservative financial plan.
7.05 This financing plan is satisfactory. Government has agreedto make available or cause to be made available, on terms and conditionssatisactory to the Bank, any funds needed to complete the project inthe event of a project over-run or insufficient cash generation by SNEC.
B. Financial Projections
7.06 Estimated Income Statements are shown in Annex 15. The fore-casts are based on the water rates noted in Annex 12; assumptions forall financial forecasts are included in Annex 18. Included on Dages 2-4of Annex 15 are income statements for Douala, Yaounde, and the secondarycenters separately. Returns on assets are adequate for each city.
7.07 Estimated Balance Sheet Projections for 1969-1975 are shown inAnnex 17. These show the accounts projected under the concession agree-ments, and are not a carrv-forward of the 1968 statement.s whinh were on AtGeranceI1 basis. Valuation of fixed assets has been estimated and mustbe confirmed by a Dhvsical inventorv and val uatiAon which is to be completedby June 30, 1970. The financial position is satisfactory. Long-termdebt is not expected to exceed )i1 of' onanital and will decrease rapidyafter 1972.
7.08 If the water rates assumed are maintained, the return aftertaxes on net fixed assets (excluding distrhiio+rn pipes and conectionsfinanced by customers) increases substantially over the years from 10%in 1973. The flovPrnmPent nnd SNEC have agreed that the water ratesbe maintained so that a minimum return of 10% on net fixed assets(excluring customer contributed pipes and connectior.) be achieved
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after 1972. (The percent return required could be altered in the futurewhen valuation of assets and futiire financial rpniirmpents are known=)Net fixed assets are defined as assets in use at the beginning ofthe year and will be readjiusted in accordance with econoicndi49ces.The current value of SNEC's physical assets will be determined asTnAntiAnno in naragraph 7 to establish +he -t . ,,-1 1k
June 1970, in a manner acceptable to the Bank.
7.09 SNEC's cash position is more than sufficient. The currentratio is abovre 4.0 for the period 196,-1975. ,n the projections, pro-vision has been made for new investments which are not yet defined.
7.10 The debt service coverage as evidenced by the cash flow fore-cast in Annex 16 is abo-ve 2.4 for the period i969-i975; this is morethan adequate. For future programs, SNEC is not allowed to incurfuAUMe. deebt unfess past not. revenues after operating costs are atleast 1.5 times the maximum debt service requirement projected.
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8. CONCLUSIONS AND RECOMIYJENDATIONS
8.01 The proposed project offers the most practical and economicsonliition for the mater suiply problem..s in Til n andi Vaouinde, and nro-
vides sufficient water to meet requirements up to about the years1978-1980. The proposed project woulnd ield an additional suinppl of22,500 m3/day at Douala and 16,000 m3/day at Yaounde; it also would
c_fIrhVn +h rt ; r+ "AI- ;s+ ; Ir tor+ -me ;e -S+ ;+;AJ
W J ~ ILJ.V jJ. L)JVkL .LI VU U.Ulla Q4 CI .LV LCQ~UL±OLC J.LW, UL.L.
plan is satisfactory, and the construction schedule is realistic. SNECWJl.L VW. respor.sle .LVr constructJ.OL1 andU operat±LOi o.L fLaLi-LiLO, assistkd
by consultants as necessary, and should be able to carry out the projectsatisfactorily. SNEC has a rog asset base and reent icrl-eases in.water rates should provide for an adequate earnings position.
8.03 During negotiation of the proposed Bank loan, it was agreedthat
(a) S1iEC will have acquired all land necessary as a conditionof loan effectiveness; Government will not allow contami-nation of project wiater sources (paragraph 4.12);
(b) Changes in the General Manager position will be made onlyafter prior consultation with the Bank, and changes in theservice contract between ShTEC and EDC will only be madewith Bank approval (paragraph 6.04);
(c) Both Government and SNEC guarantee that the concessionagreements will not be increased, cancelled or modifiedwithout Bank approval (paragraph 6.10);
(d) SNEC will discuss the concession arrangements with the Bankfrom time to time in order to improve them. SNEC will submitits annual investment program to the Bank for approval duringproject construction and for comments thereafter (paragraph6.12);
(e) Government and its municipalities will settle their old billsoutstanding by December 31, 1969 and will keep accounts currentin the future (paragraph 6.17);
(f) Government has aereed that "Gerance"t or other accountsassumed by SNEC would be subject to audit when "Geranee"accounts are settled (paragraph 6.30);
(g) The loan from GCCE will be on satisfantorv terms and onnditionsand will be a condition of loan effectiveness (paragraph 7.03);
(j) SNEC and Government will discuss tariff policies with theBP2nk t the tinme of project completionn nd from timae totime thereafter (paragraph 6.26). Except as the Bank shall
- 23 -
othenrise agree, rates will be maintained so that aminimum return of 10% on net plant in use can be realizedafter project completion; SNEC iwill carry out a physicalinventory and valuation to establish the initial rate baseacceptable to the Bank no later than June 1970 (paragraph 7.08);
(kc) Except as the Bank shall otherwise agree, SNEC will not incurany debts in the future unless past net revenues are atleast 1.5 times the maximum debt service requirements to beincurred (paragraph 7.10).
8.04 The proposed project is suited for a Bank loan of US.$5 millionequivalent for a period of 20 years, including a grace period of 3 years.
April 14, 1969
CAMEROON
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
DATA ON WATER SUPPLY SYSTEM OF CAMEROON
Present WaterEstimate of Producticon Peak Water Peak Water Present Water Present Water Percent of Per Capita
Operated Estimated 1968 Popula tion Capacity Production Production As Procu'-:-icn Sales Unaccounted ConsumptionBy Population Growth % n /Day m
3/Day % of Caoacity Million m
3/Year Million m
3/Year for Water in l./Day
EAST CAMEROUN'1
Douala SNEC 242,000 5 22,200 22,200 100 6.29 4.88 22 55Ypoande " L40,000 8.4 6,0ooo 16,000 100 4.24 3.39 20 66Bifoussam " 36,000 7-8 1,000 1,000 100 0.31 0.27 14 20
Dschang 17,000 6-7 1,000 700 70 0.20 0.17 15 27
Ebolowa 15,000 3-4 1,000 650 65 0.16 0.13 17 24
Edea 20,000 3-4 2,000 1,700 85 o.48 0.37 23 50
Foumban 28,000 6-7 1,000 435 44 0.12 0.09 25 9Kribi " n.&. 3-4 60o 400 66 0.09 0.07 21 n.a.
Mproua 21,000 6-7 1,000 900 90 0.25 0.21 16 27
Mbplmayo " n.a. 6-7 800 270 33 0.08 0.07 12 n.a.
Nkongsamba " 53,000 2-3 TI.a.(springs) 3,700 n.a. 1.05 0.71 33 37Abong Mbang Municipality n.a. 3-4 450 n.a. n.a. n.a. n.a. n.a. n.a.Bpfang 19,000 6-7 700 n.a. n.a. n.a. 0.05 n.a. 7B,fia " 10,900 3-4 600 n.a. n.a. n.a. n.a. n.a. n..a
G,roua 30,000 6-7 2,900 2,,700 94 0.77 0.57 26 52
WEST CAMEROUN
B,menda Public Works 39,000 6.3 n.a. n a. n.a. n.a. n.a. n.aE. r.a.Buea 1 L4,000 8 n.a. n.a. n.a. n.a. n.a. n.a. rL.a.
Kumba 4 " 7,000 7 2,700 2,700 100 n.a. n.a. n.E. r.a.
Tiko C.D.C. 12,500 5 300 n.a. n.a. n.a. n.a. n.a. n.a.
Victoria Public Works 22,500 6 2.100 n..a. n.a. n.a. n.a. n.EL. n.a.
Janua.ry 3D. 1069
APRThTWY v
.ge -1 of 3
CA4EROON
DOUALA AND YAOUNDE TWATER JPPLY PROJECT
Existina Facilities
I. DOUALA
Douala, the principal city of the Federal Republic of Cameroon,had about 200,500 inhabitants in July 1-614 . Th recent years, ruiilation
has increased at a rate of about 5% per year. The port, on the mouth ofthe Wouri R.iver, services all of East Cameroon and a large part of theRepublic of Chad. In 1950 a modern water supply was constructed atJapoma, 12 k.- east of Tuala. .Preriously, te C41 - s ed Iy we lls.This limited source is used by the Cameroon breweries.
he water is take-n from the Dibamba River, a tributary of theWouri, whose large flow should meet all forseeable future demand.
The Japoma facilities consist of two treatment plants built in1950 and 1957. Tne first plant Dve remont), wqith eight pressure filters,was designed to treat about 7,200 m-/day. Pump sets include four bO1/second pumps.
The second plant (SOCEAj, designed for 15,000 ms/day, includesan intake structure, a 500 mm raw water main, a low lift station withthree pump sets of 90 !/second, a chemical building, two settling basins,each with a volume of about 1,000 m3, eight gravity filters with a totalsurface of 160 mi2 , a 500 m3 clear well, and a pumping station with three90 1/second sets pumping against a head of 50 m into the 800 mm trans-mission main to Douala.
B. Operation of Plant
In the SOCEA Plant, coagulation is obtained with aluminum sul-fate (25 grams/m3) and lime (8 grams/m3). Turbidity of the raw water isabout 15 and after filtration the effluent has a turbidity of 0.1. Washwater represents about 2.5% when the filters operate at a rate of 4 to 5m3/m2/hour. Tests with activated silica have demonstrated that a rate of8 m3/m2/hour could be achieved without affecting the water quality, butat this rate wash water losses are tripled. Power consumption in 1967was 0.285 kwh/m3. Chlorination requires about 2.5 grams of chlorine perm3 of water treated.
Page 2 of , pages
CTvr M 1 'Luy of the~ 1950 OL" pressure ,. fitrP-lC.lt Ls JIL.Ltor ZrratL-cL
Wash water losses and specific power consumption are also higher. PowerConsuuat o 4A- 04 7 t_t _ n lAe I-, /-' _ nt ._- _ -.L _.__,_.LLi 1.7rVZ tvlJI W no vJL eI' L1O XALS lJ U IL; IIUW UZ1Utj1'gUl± rFU-'pairs due to the severe corrosion of all filter bottoms, provoked by thelack of a proper liume feedUng system. Due to its higher operating costsand difficulty in keeping the quality of the effluent constant, this plantis used as a stand-.by unit.
c. Transmission and Distribution Facilities
An 800 mm cast iron transmission main, 9.8 km long, with twosurge towers, carries water from Japoma to the reservoirs at Douala-Bassa,water is pumped to the first surge tower, then goes on by gravity to theelevated reservoirs at Douala-Bassa.
Douala's storage facilities include:
two 1,500 m3 elevated reservoirs at Bassaone 1,500 min' " " Deidoone 350 m3 " " Bassa Industrial Areaone 500 mn' " " Koumassi
The distribution network consists of:
3.8 km of 800 mm cast iron mains4.7 km of 500 mm " " 5.1 km of hooin it 1"4.4 km of 350 mm " "2.7 km of 300 mm t " "
15.2 km of 250 mm " Iand 131. km of smaller diameter pipes.
II. YAOUNDE
Yaounde, capital of the Federal Republic of Cameroon, had about120.000 inhabitants in January 1966 and in recent years nonollation hasincreased at a rate in excess of 8% per year. The water supply of Yaoundewas built in 195O (SOcEA nlant.) and panded A in 1962 anti 19)1 (flJparpemnnfplants).
A. Production Facilities
The water is taken from the Mefou River at Mopfou, 8 km to thewest of Yaitnden The Mpefou River is a small stream with ar. nverage flo-wPof about 720 liters per second and a low flow of 140-150 liters per second.
A %RTVT'Vv ')
Page 3 of 3 pages
The Mopfou facilities consist of two treatment plants buut 'n1950 and 1962-1964. The first facilities (SOCEA) are of the same type asin Douala, but with only half the size and capacity (7,>00 m3 /day). Theyinclude: an intakq structure on the Mefou to take a minimum of 1401/second (12,500 mrn/day) even in the dry season; a low lift pump stationwith two 145 1/second pumps; a chemical building; two settling basinsand four filters. The recent addition (Degremont) designed for about8,000 m3 /day includes two upAlow floculat4on units and six filters with atotal filtering area of 72 me. Two 500 m; reservoirs provide for clearwater storage and wash water. A pumping station (elev. 699) with foursets of 60 1/second pump lifts the water about 60 m to Yaounde (Messa).
B. Transmission and Distribution Facilities
Facilities include a 500 mm oest iron transmission main, 7.8 kmlong, that carries water from Mopfou to Messa.
Storaee facilities include a 2.500 m3 ground reservoir at Messa(elev. 760.3); a 1,000 m3 ground reservoir at Atamenge (elev. 795), anda 750 m3 elevated reservoir at the Presbyterian Mission (elev. 799). Abooster station at Messa with four 40 1/second pumps supplies the reser-voirs at Atamenge and the Mission.,
G- Distribution Wetwnrk
T>Pre +.w% tw dc+.rhii+Ann zonAes; the low zone reDresentingabout 25% of consumption (elev. 725-740) is supplied by gravity fromMessa; the high zone (740-.795) is tr%T-%l hP the rAsArvnirs at Atamengeand the Mission. The network consists of about 14 km of pipes of 200 to
)lOt -T -. . 1L. . J -11 " -~=
D. VIUT-rks rL flogess
CCrCE:s 4S MA P C-' 100 m4114r.v pitire.+ wh ech Will imnroveJVV.W .1a L.LALC1h1i..J.&AL' W'J%L .LJ"/ k-~.l.3~* _ j - - -
part of the distribution system of the high zone by extending the system4to 4theO r.ew ub. areas f Feb ar. MU-- inga
- r.LLL rA,v Ul 1 LUe
Fire protection is provided by 250 fire .hydra.ts in Dusa a&nd 91in Yaounde. Distribution reservoirs are generally designed to providesufficient water for emergencies including reL. No addition,al plpe sizecapacity is provided specifically for fire fighting, partly because fire-prone materials are not prevalent and also because o0. the low deUs'ty ofconstruction. In the event of substantial fire load, water pressure inthe system would be expected to drop, reducing demand, and pressure wouldbe made up at the scene of the fire by fire truck pumping units.
February 18, 1969
DOUALA AND YAOUNDE WATER SUPPLY PRCJET
WATER CONMUlPTION STATISTICS - DOUALA, YAOUNDE AND SECONDARY CENTERS
1/1960 1961 1962 1963 1964 1965 1966 1967 1968
I. DOUALA
To+nl inna,rnntA nn 1n
million m3/year 3.00 3.14 3.36 3.31 3.44 3.60 3.94 4.78 4.88Domestic n.a. n.a. 1.44 1.46 1.54 1.58 1.83 1.97 0.97Industry n.a. n.a. 0.13 0.13 0.21 0.29 0.21 0.66 1.68 aGovernment n.a. n.a. 1.01 0.92 0.85 0.91 0.90 1.09 * 1.19Public Tnp n a. n.a. 0.77 0.50 o.84 0.92 1.00 1.06 1.04
Number of connections 3,221 3,352 3,547 3,759 3,890 4,138 4,602 4,786 4,577 /Water consumption perconnection in l/d 2,600 2,600 2,600 2,400 2,400 2,400 2,350 2,700 2,900
Per cspita consrnpmtionin I/d 52 52 52 L9 b8 h8 50 57 56
II. YAOUNDE
Total consumption in
million m3 /year 1.91 2.16 2.20 2.51 2.47 2.61 2.92 3.30 3.39Domestic consumption n.a. n.a. 0.81 0.90 0.90 1.04 1.22 1.48 1.54Industry n.a. n.a. 0.07 0.08 0.08 O.06 0.09 0.17 0.21Gove-rnmnt n.a. n.a. 0.77 1.00 0.94 0.95 1.06 1.07 1.05Public Taps n.a. n.a. 0.55 0.53 0.55 0.56 0.55 o.58 0.59
Number of connections 2,022 2,086 2,295 2,470 2,691 3,185 3,439 3,603 3,887Water consumption perconnection 2,6n00 Pnn 9 ,6n 2Rno 2,500 2,0 2,300 2,500 2,1400
Per carita consumnptionin 1/d 71 73 70 71 65 65 67 70 66
I. SIUONrAKa CFNrIERS
Total consumDtion in
million m3 /year 1.18 1.25 1.35 1.40 1.78 1.83 1.85 2.08 2.10Number of connections 700 720 1,080 1,260 1,700 1,940 1,990 2,039 2,213,iater consumption per
connection in lid. 4,600 4,800 3,400 3,000 2,900 2,600 2,600 2,800 2,600
7'n4 .Lo wX rUrl" I.LU±A mrn %tWasA1 ur Vf UiVN ur
(In litera per day per connecticn)S1CoUDARY
__ _____DOUALA ---------- _______YAOUNDE ______ --_--CENTERS_____
1966 1967 1968 1966 OAR67 -
Domestic 1,350 1,400 900g 1,100 1,300 1,250 900 800Industry 4,500 114,200 6,500 i/ 27,500 77,600 82,500 40,000 57,000Goverw,wnt 4,800 5,700 4,800 7,600 7,600 7,900 3,300 4,100Public taps 13,200 13.500 13,500 11;600 16;60D 17,000 12,0n0 11,300
1/ Calendar year until 1963, fiscal year ending June 30 from 196h on.
2/ Change in definition of industrial consumer.
3/ Change in definition of connections; previously all connections whether in serviceor not were counted.
January 30, 1969
ANibPage 1 oi ht pages
CAMEROON
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
fISGPTP'PTTm nOF T'Wi PT1iG.T
The project wrll expand anrd improv the water supply and dis-tribution systems of Yaounde, the capital of Cameroon, and of Douala,the- re-bic _ ,. _ -4 n ----- r. eo,-cert. T.leprdc i b;5^e
in two sub-projects - Douala and Yaounde.
-r T r1f-T AT A
doubling the existing 800 mm transmission main from Japoma to Bassa--nAaia) -nd for_ -onsrucior ofiJ-o bea,men - U' each o c,0 m3/kioua_±a) UQU .LVr U0nliibVUUb±OI1QJJ. U. WO bVLIUtLJFt;iU Ui.iL"UO UWd4LA V.1. 1JAJ4U/
day capacity, to give Douala a total production capacity of 45,000 m3 /day.
The project will achieve the same goals at a much reduced cost.1/Hydraulic capacity of the existing 800 mm transmission main will be in-creased to about 55,000 m3/day by construction at Bassa of a ground reser-voir with a booster pumping station. This increases the head availaniefor friction losses, and consequently the carrying capacity of theexisting transmission main. The second main will therefore not be needed.
The capacity of the existing treatment plant which had beennominally designed for 15,000 m3/day, can be increased to about 22,500 m3 !day by the use of coagulation aids. A duplicate unit will be built and,during the dry season when demand is highest, with coagulation aids, itscapacity will also be about 22,500 m-3/day. The increased capacity of theexisting and one new treatment unit make unnecessary the construction ofa second new unit.
The distribution system will be improved by the constructionof adequate storage capacity (10,000 m3) and by the installation of keysections of trunk distribution mains.
1/ About US$ 1.75 million will be saved.
ANNEX 4Page 2 of 4 pages
Works wi.ll be subdivided into several contracts as follows:
A. Civil Works at Japoma
Support piers for intake pipe,Enlargement of.low lift pumping station,A new 15,000 m./day filtration plant,A 500 m3 clear well,Enlargement of high lift pumping station,A transformer building,Supply and installation of various pipes, fittings
and measuring devices.
B. Civil Works in Douala
Construction of two 5,000 m3 ground concrete reservoirs withpumping stations at Bassa and Koumassi; supply and installation of allrelevant pipes and fittings to connect the reservoirs to the distributionsystem. Ground reservoirs were selected after an economic comparison withelevated reservoirs showed that for this canacity (5,000 m3), a groundreservoir and a booster station is more economical.
C. Electrical Pump Sets
Supply and installation at Japoma of two raw water pumps andtwo clear water high. l-ft prp,four booster puprps at K i .aSSj and qa+.T~.r~ r1 ~ tr~+~1,4 e, 14fl- ~ 'p~w. ~ r1mn~a-f- T rn,m- - n r4 A -
and necessary vacuum pumps, air compressors, and chemical feeders.
D. Electrical Equipment
Supply and installation of 400 kVA and 250 kVA transformers, anem…ergency …500 VA diesel power generator, electric control equipment- a…ndtelephone and telecontrol cables from Bassa to Japoma.
E. Distribution System
(i) Supply of pipes and fittings for about 2 km of 500 mm diameterpipe uuucuile iron) from Bassa reser-voir to the industrial area reser-voir; about 3.3 km of 350 mm diameter pipe from Bassa to Deido; andabouui, 1.y Km of u mm uiameter pipe ior bwo secui of tuhe ia±n uJa-
tribution trunk lines in the center of Douala.
(ii) Installation of all pipes and fittings.
.ABNJE bFage: of 4 pages
II. YAOUNDE
In Yaounde the source of supply will be a 5 million m3 reser-voir created by the construction of the Mopfou Dam on the Mefou Riverwhose regulated flow (after construction of a dam) is estimated at720 l/second (60,000 m3/day). The project includes the dam, a treat-ment plant of 16,000 m3/day capacity, pumping stations, a transmissionmain from Mopfou to Yaounde, reservoirs and some major distributiontrunk lines.
The source of supply, the Mefou River at Mopfou, was selectedafter a study of possible development of sources available showed thatprojected operating costs, as well as capital costs, were lower for theMopfou scheme than for any other scheme. This source of supply is ex-pected to satisfy Yaounde's demand until about 1986, when estimatedaverage raw water requirements are expected to reach 55,000 m3/day.Project facilities should satisfy demand for about 10 years, when,in asecond stage, treatment and transmission facilities will have to be ex-panded. After 1986, SNEC plans to use the Nyona River, 40 km south ofYaounde, as a source of supply.
A. Mopfou Dam
This structure designed by EDF consists of about 120,000 m3 ofcompacted laterite with a height of about 15 m. and a length of about200 m. A concrete structure built upstream of the dam will include amorning glory spillwav. an intake structure and sluice gates.
A e-onrerte aolley I j th raw water ei,ctsz o.rf_owj and sluiceducts will run under the dam to a control chamber. A ductile iron pipe-line will 1pply the treatment plant 900 m dow..enstream. * h.a work ;n-
clude clearing of about 100 ha. of forest, and supply and installationOr all oclayeupe.t
B. Ciil1 Works
(i ) Gonst+r1ctior. of Me-pSfou t.p+re_cm+.e plann+.t-^cr.sistingr of' twocoagulation-filtration units of 8,000 m3 /day capacity each, a clearwater well of about 600 Mi3, a ptatnping s in a cahemical -4'ding
and a 50o m3 wash water tank.
(ii) Supply and installation of the treatment plant's piping andeaqui-pament.a
(LL)J CorUL,stuction atU L U.L of a V 2,0 -mm3oncrteU grounU reser-voir
with a booster pumping station and all ancillary pipes and fittings.
A 11K1tvv 1.
Page of 4 pages
C. Pump Sets
Supply and installation for the Mopfou and Messa facilities ofthree raw water and three clear water pumps, two filter wash water pumps,one air compressor, chemical feeders at Mopfou and two booster pumps atMessa.
D. Electrical Equipment
Transformers and electric control equipment for the facilitiesat Mopfou and Messa and liaison cables between Mopfou and Messa.
E. Pipes and Fittings
(i) Supply of pipes and fittings for: about 950 m of 700 mm ductileiron pipe to convey raw water to the Mopfou treatment plant, about 8.3 kmof 600 mm ductile iron pipe for a transmission main from Mopfou to Messa,and about 600 m of 500 mm ductile iron pipe for modification to the existingtransmission main and connection to the main distribution trunk line. Allthese pipe sizes were selected after a comparison of alternatives showedthem to be the most economical solution using discount rates of 9%.
(ii) Installation of above.
F. Reservoirs
Construc+ion of a 3jQ00 m3 elevated cencrete reservoir and of a3,000 m3 concrete ground reservoir to provide Yaounde with an adequatestorage -apaci+ey*. TP selectiorn of the elevated reservoir was made aftereconomic comparisons showed that in Yaounde, an elevated reservoir of3,000 m3 is more economical than a 3,000 33 ground resertroir wTith a boosterstation.
G. Distribution System
(i) Supply of pipes and fittings for about 1.4 km of 600 mm ductileiron p4pe, 1.9 Ai- of 500 l p:pe, and 1.6 kme of 450 A. ductAle pipe. The
sizes of these pipes were determined for the Master Plan by computerMnL-s. S Lc le ase ra has been m.odified6., a new arnaly-sis 1 I lanaly * s. LLinJ1 c UIR: IMastr rU-a F.~11CI. L IIU L.L.L U, C 11GW W-L.La.
be undertaken and sizes or arrangements may be changed.
(ii) Installation of the distribution mains described above.
February 18, 1969
CAMEfWUN
DOUALA AND YAOUNDE WlATER SUPPLY PFJECT
.os5r EtflTES AND SrSInRsNENT SHEME
--1969 -- - 1 9 7 0 - ----------------- Total 1969-197C ------l-----------
3rd Qmarter Lth Quarter ITht Quarter 2nd, Quarter 3rd QuarterLocal F'oreign Local Forglen Local Paoran Loc al, Eor!cA Local --aLocal Foren Total Lccal Forign Tota1
I A (MilLion CAFranc)------------------- ------------- --Thousand ui.v.--
Intake, puwping and tmatmentfacilities 8.4 15.6 7.6 14 4 b 6 14.4 7.6 14.4 7.3 13.9 36.5 72.7 1.11.2 156 2¶As 450Reeervoirs and booster facilities 13.0 22.0 13.0 22.0 13.0 22.0 13.2 2o.4 - - 57.2 86.4 138.6 211 350 561
Pumps - 2,0) - 12.0 - - 1.0 5.0 - - I 3. 19.0 20.0 004 77 81Electrical equipauwntL 8.o - 48.o - - 3.' 1.4 - - 3.9 74.4 78.3 016 3o1 317Supply Of pipes Ond fittings - 5.0 - 30.0 2.4 10.2 - - - - 2.4 45.2 47.6 010 163 193Installation of pipes and fittings - _ - - 4.7 7.8 3.8 6.2 - - 8.5 14.0 22.5 034 - 57 91
Sub-Total 21.4 52.6 20.6 126,4 2,v1 54.4 29.5 64.4 7.3 13.9 106.5 311.7 a18.2 431 1 ,262 1,693
II. TAOUNDE
Mopfou dam 21 9.2 14.8 13.4 21.6 19.2 30.8 19.2 3D.8 19.2 30.8 80.2 128.8 209.0 325 52'1 846Pumping anc treatrnent fiacilities 18.o 32.0 19.8 35.2 19.U 35.2 15.7 29.0 - - 73.3 131.4 204.7 297 532 829Pumps - 2.0 - 12.0 - 0.9 4.0 - - 0.9 18.0 18.9 004 73 77Electrical equiprAnt - 3.0 - 18.0 - - 1.5 7.0 - - 1.5 28.0 29.5 006 113 119Supply of pipes and fittings - 14.0 - 84,0 7.0 33.0 - - - - 7.0 131.0 138.0 028 5,1 559Inbtkllaticin Of pipeliIe - - - - Y9. 16.1 9.9 165.1 - 19.8 32.2 52.0 080 111 211Reservoirs (distribLitioo) 11.8 19.2 11.8 19.2 11.8 19.2 9.7 Ii.1 - - h5.1 71.7 116.8 183 29o0 473Supply of clistrlbutitw pDipes St fittings - 23.o 2.4 2o.6 - - - - - - 2.4 43.6 46.o 010 176 i6Inst5+llat&on of distribution pipes - - - - 3.6 9.7 4.0 10.0 - * 7.6 19.7 27.3 031 Elo I1
and fittir4gs
Sub-Tctal 39.0 108.0 o r7.4 210.6 71.3 144.0 60.9 111.0 19.2 30.8 237,8 604.4 842.2 94 2,,7 3,41i
III, Engineerirn.g Uerltrin 4.4 13.3 8.1 24,3 5-6 17.2 5.3 15;.9 1.4 4.3 25.0 75-. 100.0 101 304 405
IV. Contiracies
Koenel 9.1 24.1 10.4 50.5 IL 9 28.2 13.6 26.4 4.0 6.8 52.0 136,0 388.o 2u1 550 761Fri3einlcnhfses(4% per year) _ - 1.5 6.8 3.0 5.7 3.6 7.3 1.5 2.5 9.6 22,.0 31.6 039 B9 128
Sub-Total 9.1 24.1 11.9 57.3 17.9 33.9 17.2 33.4 5.5 9.3 61.6 158.0 219.6 25o 639 889
Total Works 73.9 198.0 88.o 418.6 i2.( 2'49.5 112.9 224.7 33.4 58.3 430.9 14,49.1 L,58o.o 1,746 4A652 6 398
Interest. during Conutraction ------------------------- ---- - 86.0 o6.0 1'- 350 350
Workirg Capital ------------------------------.--- 71.0 210 _ . 288
IVTAL POJRECT --------------------- -__,____________,,__ 501.9 1231 1.737.0 2034 5OC 06
2/ CFAF 11 mLljioa 0h0' to be paid and CFOA 75 mil'Lion 1EIRD to be borrowed.
Pt A=evmes dam construvtion wilL be completed by September 1970. If bids are sub!,tantially hiTher for short. construction period,this time will be extended until May 1971.
ANNEX 6Page 1 of 2 pages
CAME;ROON
DOUALA AND YACUNDE WATER SUPPLY PROJECT
Determination of Foreign Exchange Costs
1. The proposed project would be implemented through fifteen con-tracts; eight civil work contracts and seven equipment supply contracts,
2. For civil work contracts, the foreign exchange cost componentwas estimated by computing the foreign exchange portion of each of themain parts of these contracts as follows:
a) Mechanical Earthmoving (for Mopfou Dam)
Foreign ExchangeCost as % of
% of Total Cost Total Cost
Foreign Labor 13 7Local Labor 10 -Earthmoving eauipment L3 36Fuel U 3Transport of Enuinment 8 8Contractors Profit 10 10Contractors Local Overheads _
TotAl 100n6
These perce.ntages were derived from acUual (1968) earthm"ovingcosts of contractors working for EDC - ENELCAM.
b) Earthmoving-Manual (for pipe trenches, foundations, etc.)
Local Labor 55Foreign Labor 20 i1Tools and Equipment 10 10Contractors Profit 10 10Contractors Local Overheads 5 -
Total 100 30
At T%T?Y 6
Page 2 of 2 pages
Vore-Ign Exchage
Cost as % of% of TotaIUdlo Cotl, Tot 'jU C0
c) Construction C8Sts
Local LaborForeign Labor 10 5Steel 20 20Cement 20 20Contractors Profit 10 10Contractors Local Overhead _ _
Total 100 55
3. For equipment supply contracts, the amount of foreign exchangecost represents the estimated C.I.F. DOUALA cost of the goods. This costrepresents 95% of the suDDlv contracts. The remaining 5% represents porthandling and local transport costs. These percentages were derived fromthe estimates of SNEGC and are based on EDC's past experience for similarwork.
4. The foreign exchange percentages, calculated as above, were thenanplied to the reAspective coomponrent of eaeh of the contracts to obtain theforeign exchange costs shown in Annex 5.
February 18, 1969
CAMEROONl: DOUALA AND) YAOUNDE WATER SUPPLY PROJECT
CONSTRUCTION SCHEDULI.
1968 1969 1970
LOCATION rTEM CONtRAcT -II II MDI]Z| ZI]IJ ZZEL ZJXW ZZW ]
1. SUB-PROJECT DOLIALA -_
TREATMAENT PLAEIT CVIL WORKS PO B E MIJAPOIAA PUMNRIG STATIODN, (ONE CONTRACT)
_ _ _ ,_ p~~~~~ f T
PQ B a, f F !S I IJAPOUA AND DOUAI.A PUMP SETS SIJPPLY ANI) INSTALLATION - - -- :I -F! … … -0- d | A
PQ B EB I1 F SI 1 & I DUALAJAPOMA AND DOUALA ELECT3CAL EOUIPMENIT SIJPPLY AND INSTALLATION _- -0- E3 _ PROJECT
1 I ~~~~~~~CrOMPLETED)
DOUALA BOOSlER STATION CVIL WORKS PO B .E3 NRESERVOIRS (ONE CONRArr)_
PO B ER P DOUALA DISTRIIIJTION PIPES SUPPLY P _ -3 E -M -
PQ B EB m :cTDISTRTIUTION PIPES INSTALLATION _
191(MAY)
11, SUB-PROJECT YAOUNDE ER PQ B ER M c
E,UTH DIKE - _ _-_ _--0- .MOPFOUI DAM & 0BE MOPFOU~~ DA NTAKE STRUCTURES S. MAIN _Q 3 EB hS _
C
I~~~ ~~ _ __T F
MOPFOU TREATMAENT PLANT P BI_vMOPFOU PUMPING STATION CIVIL WORKS P oA EB hl NMESSA BOOSTER STATICIN (ONE CONrRACT) _IT F ENW
l ~ ~~~~~ ~~~~ _-C if (IN rPERA310rN
MOPFOU AND MESSA PUMP SETS SPLY ANID .ISTALLATION ! G ES
MOPFOU AND MESSA ELECTRICAL EOUIPMENT SIJPPLY AND INSTALLATION a 3 EE. I _ F
Po B ER IF,SJMOPFOU -YAOUNDE TRANSMISSION PI PES SIJPPLY' - ---. 0--- - --- E0-. _+1
MOPFOU -YAOUNDE TRANSMISSION INPES INSTALLATIODN' - 3Q E c - -----
Po' B EB N YAOUNDE RESERVOIRS CIVIL WORICS _
YAOUNDE DISTRIIIUTION PIPES SUPPLY - - -4----- _ F S _
YAOUNDE DISTRIIIUlION PIPES: INSTALLATION _ 3 EB :CITrABBREVIATIONS,I PO - PREOUALIFICATION OF BIDDERS F FABRICATION EOU PMENT SYMBOLS
BIDDING S SHIPPING LY E P ACTIVrrYER EVALUATION BIDS AND AWARD CONTRACT I INS1ALLATION I
T TESTING AO, MOSILIZATION CIVIL CONFl i FLCIATI C CONSTRUCTION WORKS CONSTRAIJTS m
JANUARY 1969 IIRD -4216J
CAMEROON: DOUALA AND YAOUNDE WATER SUPPLY PROJECT)OlJAl A
POPULATION AND WATER CONSUIMIPTION25 ----- -r-r-r--r-- iv-v-r-- -F-vn- -- rr- 5iOO
20 _ ___ _-_ _ _- 400
w 10 X _ 7 /100 '__ ___ /> __ 0
OF~~~~~~~~-
Is ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-300 w
POPULATION 0 *
(RIGHT SCALE _0 ' I
-AICTUAI~~~~~~~~~~~~ool --- POJCED
o m
-j10 - - 200
WYATER PRODUCTION -. 00
yE-LEFT SCALE)
5 I'..-~ ;;;;;;j~*~~ •~ - - - - - -00
~WATER SALES AS IN FINANCIAL PROJECTIONSy-Et-LEFT SCALE)
195 5 1960 1965 1970 1975 19810~~~~~~~~~~~~~~~~~~~~~~~~~~z
- - ~ACTUAL --- -PROJECTED Z
iBRD-4 I 4
CAMEROONI: DOUALA AND YAOUNDE WATER SUPPIY PROJECTYAOUNDEPOPtJLArlON AND WATIER CONSUMPTION
15.0 13-- -r- r - - rv, v -, - 300
1 2.5- __t__ 1 250
10.0 - _ -- __ /200
w -c:
POPULATION I U(RIGHIT SCALE -- ) Zw C,
7.5 _ _ __ _ 150 0z /o ;;WATER PRODUCTION _-/
a /1(' LEFT SCALE) 00 z
'01~~~~~~~~~~~~~~~~
5.0 o - -100 GO
* * b _ < WATE:R SALES AS IN FINANCIAL PROJECTIONS2.5 -..------ - _ *-LEFT SCALE)
2.5 r. 0 - - _ _g
195j5 1960 1965 1970 1975 198C)
- ACTUAL - - - - PROJECTEID - z
IBRD -4215 x__ - _ . _ ._ _ _ ,to
CAM(KROF FPage 1 of 4 pages
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
C.REMENsAL RATE OF R =Luld, ON PROPOSED PROZJCT
1980o
1971 1972 1973 1974 1975 1976 1977 1973 1972 & Thereafter
----------------------------------------Mllion 3--
L.-rementa; water production 1.16 2.43 3.77 5.26 6.80 8.49 10.25 12.18 12.93 13.70
Incremental water sales 0.93 1.95 3.02 4.21 5.44 6.80 8.20 9.80 10.37 11.0'
------------------------------------.allion CFAF-------------- __-____-_-_-__-_-___-___
Increm.ental revem-e 64.9 133.8 205.2 282.9 352,4 450 58 52.Q 6hh.l 703. 7-4'
Incremental operaLing costs 34.2 44.9 57.1 70.7 84.9 103.8 117.5 134.2 141.6 i4?
Incremental operating cash flow 30.7 88.9 148.1 212.2 267.5 347.0 414.5 509.9 560.0 6C4s.3
FIxed Asset ---- Present Worthn 16---- ---- Present -Worth '18:----Invetstmnt
Operating Net Cash Discount Present Discount PresentYear Project Other Cash Flow Flow Factor 16% Worth Factor 18' Worth
1969 (773) (778) 1.000 (778) 1.00 (773)
1970 (802) (802) .862 (691) ,147 (680)
1971 31 31 .743 23 .'iA 22
1972 (25) 39 641 I, .;09 39
1973 (45) 148 103 ,-52 57 .516 53
1974 (45) 212 167 m476 79 .437 73
1975 (45) 268u 223 *aiO 91 .37 ,
1976 (45) 347 302 .354 107 .314 95
1977 (45) 414 369 .305 112 .266 98
197'3 (h5) 510 465 .263 122 .725 105
(20) 562 542 .227 123 .191 104
(20) 605 585 .l95 11- .l62 95
1931 to 9:'' 605 605 1.148 695 .*61 520
Incremental rate of return of the Project is about 17%.
Annex 10Page 2 o' IL pages
CA:MWON
DOUALA AND YAOUNDE TWZATER SUPPLY PROJECT
TNCRN,;AT RETURN ON PROPOSED SUB-PROJECT
Douala 19"3
1971 1972 1973 1974 1975 1976 1977 & Thereafter
---- =--------------------1- Milon m3 -_-_-_-_-_-_-_-_--_ ---- _
Lncremental water production 0.75 1.62 2.50 3.50 4.50 5.62 6.75 8.00
Incromental water sales 0o60 1.30 2.00 2.80 3.60 4.50 5.40 6.45
------------ ~~-i" lio OA-_ ._-- _____ ____ _-- --
klnc-er,ental reveniies 37.6 79.2 120.2 166.2 211.8 263.8 315.6 375.1FincreamenLa! Operating Costs
Incremental personnel 3.6 4.4 5.2 6.0 6.8 7.6 3.14 9.2
incremental power and chernicals 3.14 7. 12.14 17.7 23.3 29.14 37.7 1!,
IncreineL',al maintenance 7.7 7.8 7.9 8.3 8.7 9.1 9.5 9.9
Incremental Cdn:,i r,tivt c 2.0 4.0 6.0 8.0 10.0 12.0 14., 16.o
Total TIncremental Operating Costs 16.7 24.0 31.5 40.0 43.8 53.1 69.6 79.3
L cremselltrafli oasln LIoWr 20.9 55.2 88.7 126.2 163.0 205. 7 z46.o o95.°
Fixed Asset ---- Present Vlorth 22,;----- --- I'resont W4orth 74.--
InvestmentOpera Eng Net. ''ash Discount. Present Discolrnt Presen'
Project Other Cash Flow Flow Factor ?2% 'Jorth Factor 24' vlorth
1,69 (~~~273\ 1.000 (7)1.000(23
(262) .320 (215) . o6 (211)
21 21 *,2-72 14 .6'<0 114
172 (25) 55 30 ,551 17 ., '4 16
3. (25) '9 614 ,1451 29 ,142' 27
(25) 126 101 .370 37 ,3141 34
1, (25) 163 138 '303 42 ,275 3I
(25) 2065 131 .,49 45 ?29 140
197?, 7 (25) 2146 221 .204 45 .179 40
(25) 296 271 .167 45 .144 39
19 o ''°'')90 296 Ž96 .741) 221 .5914 1
7
Incremiental return is t.herefore 225.
Annex 10Page 3 oi 4 pages
C AXEROO^N
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
INCREMZNTAL RATE OF RETURN ON PROPOSED SUB-PROJECT
Yaounde1980
1971 1972 1973 1974 1975 1976 1977 1978 1979 & Thereafter
------------------------------- _--- llion m3-- ------------- - -------------------
Incremental water production 0.41 0.81 1.27 1.76 2.30 2.87 3.50 4.18 4.90 5.70
Increinntal water sales 0.33 0.65 1.02 1.41 1.84 2.30 2.80 3.35 3.92 4.56
--------------------------------- Mllion CFAF-------------------------------------
Incremental revenue 27.3 54.6 85.o 116.7 140.6 187.0 216.4 269.0 328.5 379.0
Incremental personnel 5.7 6.2 6.7 7.2 7.7 8.2 8.7 9.2 9.7 10.2
Incremental power and chemicals o.8 2.2 4.7 7.6 10.8 13.8 18.2 23.0 28.2 33.8
Incremental mainterunce 9.5 9.5 9.7 9.9 10.1 10.3 10.5 10.7 10.9 11.0
Incremental administrative amxenses 1.5 3.0 4.5 6.o 7.5 9.0 10.5 12.0 13.5 15.0
Total Incremental Operating Costs 17.5 . 25.6 36.1 4.9 62.3 70.0
Incremental operating cash flow 9.8 33.7 59.4 86.o 104.5 145.7 168.5 214.1 266.2 309.0
Fixed Asset ----- Present Wbrth 1i4%----- ---- Present Worth 12'----Investment
Operating Net Cash D4oont Prase_nt Dsonrnrt Present
Year Project Other Cash Flow Flow Factor 16% Worth Factor 12% Worth
1969 (505)% (505 1.00 I(5°5l~ ) I.0 55
1970 (540) (540) .877 (474) .893 (482)
1971 10 10 ,769 8 .797 8
1972 314 34 .'75 23 .712 24
197' (20) 59 39 .592 23 .636 25
1974 (20) 86 66 .519 34 .567 37
1975 (20) 105 55 .*456 -39 743
1976 (20) 146 126 .4oo 50 .452 57
1977 (20) 169 149 .351 52 .404 60
1978u (20) 2X4 A^7 ,08 e0,6i7k j L4 ~~~~7c4. .3u U u 70
1979 (20) 266 246 .270 66 .322 79
198C (20) 309 289 ,237 68 .287 83
19B1 to 2000 309 309 1.055 2.1 8 654ncremntl rateofreturnissghty bove 133
incremental rateof return ia slzightly aTbove 13%.
Ai\f\IRE~' 1 0Page Trf 4 pages
nrCTTAT A A TTT VA ATThTXnI T.TA M2 C7TTDPTV PTn_Tf.r.rP
Notes on Incremental Rate of Return
(1) The investment costs include distribution systue,m expenditures whichwill be necessary to serve new areas and increase water sales.
(2) Project costs include contingencies and price escalation.
(3) Retail water sales assume 20% unaccounted-for water which is theestimated loss at present.
(4) Incremental revenues have been calculated assuming the same averagerates as used in the projected income statements.
February 18, 1969
CANIEROON: DOUAILA AND YAOUNDE WATER SUPFPLY PROJECTSOCIETE NATIONALE DES EALIX DU CAMEROUN
Organization Chkra ot 11 Novembier 1968
E EC _ DC .SNEC _-
[II SCDT E ETSJTT [ DIDENC TO [PNACA _ _EECED
EEICCSNEC- j_EC -EEC ESDEC -I | EEC -1E3C -EE-
150,1 TSCM~~~~~~A, o
EMNES O NE D ECISIDO LiL CE_EO E
IL I I I - _IEDAWIISNITAII7 ED OCEUN .S 7 _ 7 FSNRICD ND _D_ _T _O_T
SEEVECES EDT.13 PEESATIN3 NNE I I .i N ESEAC E OR I: WADEDDDDDN( III 1211X S A. CODISOL 505 NECI DOEN J MEISM DE .
=SNEC -SO SNEC i SNEC f I. E t SNE-C ISNEC L0 DC1 Sr 71 CLSI Cl IT
EOTELEOEEASCN CE I 2YA AD lENDoil DCEASON SOC Il DECDCD-i ECTE MED 4MRC
_ - _ ,, OEANZIIN Sl0/l E-D - -liER0 1 0NE NC 5-f
_^E 1}" IVD _ II _ ID
CNE ROON _-_XU^]:.A AND YAOUNDE WATE,R SUPPLY PROJECT
SOCITETE NATIONALE DES EA.U. DU JCANEROIN
M-VTPOWER SUNMYARY
CSEI CE CA ME MA B.A OA EECCadres Super Cadres Cadres Ag4sde Maitrise AgtSde Maitrise! Employes Oavriers EDC EDC SNEC
Services _ Europeens Eurpeens .frica.ins Europeens Africains 4fricains Africains SNEC SNECEurcpean_
Senior European African European African African AfricanExecutives Execu-tives Executives Foremen Foremen Ep:Loyee s Workers
General Managrer 1 1
Adnini stration 1 2 1. :27 1 30
Technical Serwvices 1 1 2 4L 3 1 10
Finance-AccountingServices 1 1 1 2 L 1 8
Douala Operations 2 6 5 18 51 16 66
Yaounde OperzLtions 1 6 3 30 112 29 123
SQecondary Centers 1 3 8 23 L48 39 4L4
Sub-Total _5 211 _ __ _ . _ _ l liT1 11mTotal - 369 ------------- =-----369 - -369
CAMEROOl
D()UALA AIMh Y1,0i( T' WATER SUEL'LY P;2CJIŽc
SCCIETE NATIOIIALE DES EAUX DU CAMEROLN
Water Rates Past and Proposed
Douala Yaounde Dsch.T Edea Nkongsamba Fouzsban Maroua Mbalmayo BafousssLm Ebolowa KriDi
Jan. 1966 - Dec. 1966 - - - - - - - - - - - - - CFA Francs PePr Cubic Meter----
Private Custiomrs 32 35 32 35 20 75 62 50 110 100 100Govwernmen t. 25 2i 30 28 ].2 *45 60 50 100 100 100Public Fountains 28 19 27 28 12 4L5 55 35 100 50 50Industry 25 26 30 28 1.6 .J5 - - 100 100 10C
Jan. 1967 - Dec. 1968
Private Customers 36 4'5 32 35 35 75 62 50 110 100 100Gove mm0t, 36- 25 35 30 28 30 45 60 50 100 100 1C0
Public Fountains 28 24 27 28 17 L45 55 35 100 50 CiDIndustry 35- 23 30 3( 28 28 L45 - - 100 100 100
Jani. 1969 - June 1970
Pri nate Customers 46 55 __55 75 90Governmen 1; 46 55 55 75 90Public Fountains 35 4() 4 56 68Industry 40- 29 47 - 33 47- 33 64 - 45 77 -55
July 1970 - Forward ArAverage
Private Customers 70 82 ---------- ---------- -------------------- 75 ----- --Gcl e rrment. 70 B 2 75Public Fountains 52 62 56Industry 56 - L,3 68 - 52 61 - 47
Note: -Wlmere two nuwbers are given, price is reduced from higher to lcorer as increased amounts of water are used.
Where no Indc1strial Rate is shown, Industry is considered as Private Consurer.
I/ innex 15 is based on the following rates (9'>i o' approved rates).5oua Yaounde
Private Customers 7dOovernnent 66.5 78Public Founteins 49.0 59Industry 53-! 41 65 -49
(I.MwPQOON Annex 13
rAT'TA T A A?m V A fTnT=VU WA MPW ATTPPTPY P age of 2 nazes
SOCT&TE ~ ~ ~ ~ ~ EC Pagei^T 1E ofw 2T ^->T.0^n-i_mt' uV1KYAfThfTATV' MC~' IATTV flT r.AMA1'PATjh
Year Ending June 30
ASSETS Secondary-Dou^la Yaou.de enters Central Tctal
Fi*ed Assets ---------------- CFA Francs - Millions ------Piant in bervice 1,067-.4 0 -
Less: Depreciation 238.5 16o.3 138.0 536.8Net Plant in ervice .W9 392.R Land 6.6 - 6.6Work-in-Progress - - - -
Total Fixed Assets 928.9 3bg.4 392.8 1,591.1
Other Assets 102.7 3.1 4.3 .6 110.7Intra- Corporate Deposits 36.6 32.4 12.6 8 1A\ -
Total Other Assets 139.3 35.1 .09 0) 110.7
Current AssetsCash and Banks - - - 177.8 177.8
Accounts Receivable - Water 97.5 98.3 91.6 287.4- Other 29.9 142.5 83.3 - 155.7
Inventories 68.0 39.14 13.5 120.9Other - - o 28.3
Total Current Assets 195.14 4 206.1 770.1
TOTAL ASSETS 1,163.6 585.1 598.1 125.1 2,47I.9
LIABILITIES
Equity - Authorized Capital - - - 100.0 100.0
Government Contribution 806.7 363.9 345.9 - 1,516.5Renewal Fund 157.9 19.7 159.7 - 337.3Other _ _ _ _Earned Surplus (51) 12.0 5.8) _ 1.1Total Equity 959.5 395.6 499.8 100.0 1,954.9
Long-Term DebtG overnment 20.2 10.9 26.9 - 58.0CCCC and Others 33.9 - 20.3 - 54.2IBRDLess: Current Maturities (5.8) - (5.0) - (l1.8)Total Long-Term Debt 48.3 10.9 142.2 _ 101.4
Otfher Liahilities 70.2 12h.2 7.8 - 202.2
rGirrent .Thi 1 i ti esAccounts Payable 50.6 38.7 38.2 25.1 152.6
lstnTner AdYannnes 29.2 15.7 5=1 - 50.0Current Maturities 5.8 - 5.0 - 10.8
TOTAL LIABILITIES 1,163.6 585.1 598.1 125.1 2,471.9
Current Assets to Current Liabilities 2.3 3.3 3.9 8.2 3.6Debt and Other Tj abilities as% of'Total Capital 11% 25% 9% - 13%
ANNEX 13Page 2 of 2 pages
Notes on Balance Sheet - June 30, 1968
The Balarice "--eet as of Junle 30, 1968 was -establishe-1d fr-om
available data and is now being audited. Audit is not expected tochange the statements significantly. This balance sheet is on a"Geranceu" basis.
Plant in service has been carried at book value withoutreadjustments; the readjusted value could be 2uC nigher. At LIx±e
negotiations it must be agreed that SNEC will make a complete physicalinventory and revaluation of assets. Plant does not include distributionpipes and connections paid by the customers.
Accounts receivable are high. Other accounts receivable aremainly due to the "Gerances" by Societe Provisoire des Eaux du Cameroun(SPEC) or the Government because SPEC was a branch of the Government.These accounts are being settled along with the others since the con-cessions were signed. Other accounts receivable include also certainsums due SNEC by EDC.
Long-term debts include loans made by the Government atvarious stages of the "Gerances" history; these do not carry anyinterest. Terms of loans by CCCE are noted in Annex 18.
Other assets and other liabilities are principally accountswith Government or past "Gerances" which are expected to be settledover the next two years.
ANNEX 14
DOULA2LA Ai'w- YAUU'JL)IDE'AEnSPL RjC
Comparative Income and-Expense Statements -All Oeations
Year ending june 30, 1967;t' 196d='
CFA France Millions
Revenue
Water Sold 339.6 376.7Other 78.4 92.0
Total Revenuie 418.0 468.7
Operating Costs
Power 65.1 75.6Chemicals/Equiipment 79.1 87.7Waaes/Salaries 8o.4 111.7Administration 119.9 108.6
Total Operating Costs 344.5 383.6
Income before Depreciation and Interest 73.5 85.1
Depreciation 61.8 65.2
Income before Interest 11.7 19.9
Interest on Loans 1.9 3.1
Operating Income 9.8 16.8
Non-Operating Income - 6.4
Total- Income 9.8 23.2
Return on Net Plant 0.4% 1
n~~~~~~~ S_
ounur 'erance- arwngements -A AJ
February 18, 1969
ANINEX 15
CAMEROON
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
SOCIETE NATIONALE DES EAUX DU CAMEROUN
Estiomated Income and Expense Statements 1969-1975
A1 1 Concessions
Year Ending June 30
1969 1970 1971 1972 1973 197 5 0
Water Produced (million m3) 14.49 15.69 17.02 18.47 19.99 21.68 23.41
Iater Sold (million m3) 11.44 12.45 13.51 14.67 15.88 17.22 18.60IJnaccounted-for Wlater 21.1 % 20.7 % 20.6 % 20.6 % 20.6 % 20.5 < 20.5
Average Price CFrA Francs/m3 41.82 47.7 64.6 64.4 64.2 63.9 63.6
(CFA Francs - Millions)
Revenu_e-flillings 478.4 593.6 873.4 945.2 1,019.2 1,100.1 1,192.6Other 28.6 28.9 35.3 41.7 49.8 56.5 63.8
Total 507.0 622.5 908.7 986.9 1,069.0 1,156.6 1,246.1
x.pen ses-Power 67.9 74.4 68.o 73.7 79.6 86.4 93.7Chemicals 25.0 27.5 30.0 32.6 35.5 38.6 41.9Spare Parts 40?2 44L3 47.1 51=9 '5.6 60.5 62=2Labor - Production 28.6 31.1 38.3 39.2 4O.0 40.9 41.9
- Distribution 34.5 37.5 40.8 42.2 43.4 14.8 46.2M Production 8.9 11.2 10.3 20.7 21.5 22.5 21.8- Distribution 25.8 32.3 41.9 44.3 17.1 119.8 52.5
Administrative Salaries 9.8 11.6 12.0 12.4 13.0 13.7 14.14~~. .c 7.4 7,J4 ~ . o. u. 1.1Central SalariLes 51.2 57. 6.1 6286556.a7.Administrative Expenses 61.3 73.14 76.3 79.2 83.2 86.0 88.7Central Expenses 37.1 42.8 46.o 46.7 49.0 51.4 53.6Other i4.1 17.5 19.1 20.3 22.0 23.7 25.5
Total 401.4 461.0 498.9 526.o 555.4 586.7 615.5
Income before Depreciation 102.6 161.5 409.8 460.9 513.6 569.9 630.9
Deprec ation 62.8 115.1 131.6 136.3 139.2 1131.9 144 .9
Income before Interert 39.8 46.4 278.2 324.6 374.14 428.0 486.o
Interest on Previous Loans 8.2 7.2 6.2 5.1 4.1 3.2 2.5on Project Loans - 64.6 93.7 97.2 98-5. 90.8 86.9
~Opro3'inl Income 31.6 ( 25-4) 178.3 222.3 275.8 334.0 396.7
bon-:Thperating Income 3.0 4.5 4.6 4.9 5.o 5.2 5.6
!'servc for Caducite - 5.7 42.4 13.2 41.0 i,4.? 45='!
To xes 3.2 - 18.0 24.5 33.3 42.4 105.6
,et Incomc 31.4 ( 26.6) 122.5 159.5 203.5 251. 9 251.0
:v-turn on Net Plant. 1/ 1.°% 2. %y 13.2% 15.9O 107' 1'). a3.2
1/ Income before Interest and 'Caducite" and after taxes divided by Net Plant in Service at start of Year excludingezter.sions paid by Custoamers
ANNEX 15Page 2 of 4 pages
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
SOCIETE NATIONALE DES EAUX DU CAMEROUN
Estimated Income and Expense Statements 1969-1975
-'la Concession
Year Ending June 30
1969 1970 1971 1972 1973 1974 1975
Water Produced (million m3) 6.90 7.50 8.25 9.12 10.00 11.00 12.00
-~ec f _ ,,4_ ff l. A r)r, A An) 7.I A.,:;.ter Sold (,LiUI m3I-) 5.46 6.o 6.6 7-3 8.00 8.80 9.60Unaccounted-for water 21% 20% 20% 20% 20% 20% 20,,
Rates -Average price CFA Francs/m 3 36.21 41.22 58.97 58.64 58.29 57.86 57.46
(CFA Francs - Millions)
Rcvenues -Billings 197.7 247.3 389.2 428.1 466.3 509.2 551.6Other 10.3 10.3 12.5 15.2 18.0 21.1 24.3
Total 208.0 257.6 401.7 443.3 1484.3 530.3 575.9
ExpensesPower 21.0 21.0 22.8 25.5 28.3 31.6 35.1Chemicals 14.0 15.3 16.9 18.6 20.4 22.4 24.5Soare Parts 16.0 17.7 19.2 20.9 22.3 214.3 25.2Labor - Production 12.7 13.4 16.2 16.6 16.9 17.2 17.5
- Distribution 14.0 114.7 16.1 16.6 17.1 17.6 28.1Maintenance - Production 3.0 3.7 7.6 7.9 8.4 R.9 9.3
- Distribution 10.6 13.3 17.1 18.3 19.2 20.5 21.6Administrative Salaries 3.5 3.7 3.8 4.0 4.3 4.6 4.9Central Salaries 24.4 27.6 29.3 31.2 32.9 35.0 36.7AdniniFtrative Expenses 22.9 25=4 26.3 27.2 28.9 29.7 30.6
Central Expenses 16.8 19.4 21.2 21.2 22.2 23.3 24.3Other 5.3 6.6 7.1 7.5 8.1 8.9 9.5
Total 164.2 181.8 203.6 215.5 229.0 2414.0 257.3
Income before Depreciation 43.8 75.8 198.1 227.8 255.3 286.3 318.6
llenreciation 27.6 50.9 54.8 56.7. 57.7 58.6 58.5
opcr:dtirig Income 16.2 24.9 143.3 171.1 197.6 227.7 260.1
Ilon-operating Income 1.0 1.9 1.9 2.0 2.1 2.1 2.1t
Taxes / 1.6 - 8.7 12.1 16.5 .1.3 53.3
Incoui, 2/ 15.6 26.8 136.5 161.0 183.2 208.5 209.2
Return on Net Plant 3/ 1.6% 2.8% 14.6% 17.9% 14.4% 17.3% 18.2'%
1/ Faxes Allocated on Income Basis.7/ SYcudesTnterest, and "Caducite.'[
31 Income before Interest, and "Caducite" and after Taxes divided by Net Plant in Service atstart of year. Excluding extensions paid by customers.
ANNEX 15Page 3 of 4 -cres
CAMEROON
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
SOCIETE NATIONALE DES EAUX DU CAMEROUN
Estimated Income and Expense Statements 1969-1975
Yaounde Concession
Year Fnding June 30
19i9 1'70 1971 1970 1973 1974 7no7f
Water Produced (million m3) 4.50 4.88 5.29 5.69 6.15 6.664 7.18
W.iater Sold (million m3) 3.60 3.90 4.23 4.55 4.92 5.31 5.74Unaccounted-for water 20% 20% 20% 20% 206% 20% 20%
Rates -,vcrage Price CFil Francs/m3 43.0 52.62 73.80 73.96 73.88 73.86 73.67
(CFA Francs - Millions)
RevenuesBillings 154.8 205.2 312.3 336.5 363.5 392.2 422.9
h e r 11.0 11.5 1'-.' 17.5 0' 23,9 25.0
To0a1 166.0 216.7 326.7 354.0 384.4 ,l6.1 449.9
Ei-•enses -Power 20.8 25.3 15.7 17.1 18.7 20.6 22.7Chemicals 8.9 9.9 10.7 11.5 12.4 13.! 14 .5'irare Parts 15.0 16.7 17.3 19.2 20.6 22.3 22.9Lahor - Production 11.3 12.6 16.9 17.3 17.7 18.2 18.8
- Distribution 13.0 1)4.5 16.2 16.8 17.3 17.? 18.5Maintenance - Production 3.2 4.1 8.2 8.4 8.6 8.8 9.0
- Distribution 9.2 11.5 1649 174 18.4, 19.1 20n.Administrative Salaries 5.5 6.9 7.1 7.3 7.5 7.8 8.1Central Salaries 16.1 18.0 18.8 19.5 20.3 21.1 21.9
14.8 185 19.6 -0.£ 21.8 22.5 23-3411.11*01 L,11UVU h2'.p11ntes ±1. I..4. 1. I1 -_J. CI .1 IC)£.
Central Expqenses 13.4 15-4 16.9 16.8 17.6 18.5 19.3fCther 7.4 9.2 10.1 10.8 11.7 12.5 13.6
Tco':] 138.6 162.6 174.4 182.7 192.6 202.7 212.7
ln•0-.ac fe•Vre Denreciation 27.4 53.8 152.3 171.3 191.8 213.14 237.2
1Wonreciation 17.3 36.8 49.1 51.2 52.3 53.6 55.0
fW_ratifl lncomne 10.1 17.3 103.2 120.1 139.5 159.8 182.2
':an-(A}aratin, Tnrome 2.0 2.6 2.7 2.9 2.9 3.1 3.2
r;.::_/ 1- 64.7 7.9.1 12.l, 31.9 7
ncomri 2/ 11.0 19.9 99.2 113.9 130.0 147.0 1L5.7
,R' turn on l'at Plant 3/ 2.0% 3.3% 16.5% 20.0% 8.61% 10.3'Z lO. I%
I/ rryas allocated on Income Basis/ >xclude3 Interest and "Caducitc>IJU lncome beforc Interest and. 141a4u-.UUW -11t taxcs diOv*UeUUbyJ Net Plant ir Service
at start of year excluding extensions paid by customers.
ANNEX 15Pg4of 4 pages
CAMEROON
DOUALA AND YAOUNDE WATER SUPPLY PIROJECT
SOCIETE NATIONALE DES EAUX DU CAMEROUN
Estimated Income and Expense Statements 1969-1975
Secondarv Centers
Year Ending June 30
1969 1970 1971 1972 1973 1971 1975
Water Produced (million m3 ) 3.09 3.31 3.48 3.66 3.84 4.014 4.23
llater Sold (-illion r 3) 28 2 2.68 2.82 2.96 3.11 3.26
Unaccounted-for water 23% 23% 23; 23% 23% 23,, 23
Rlates -
Average Price CFA Francs/m3 52.9 55-33 64.114 64.0oL 63-99 63.89 63.83
(CFA Francs - Millions)
Revcnuuc -Billings 125.9 141.1 171.9 180.6 189.4 198.7 208.1
Other 7.1 7.1 8.4 9.0 10.9 11.5 12.5
,otal 133.0 148.2 180.3 189.6 200.3 210.2 220.6
Exoanses -Ilower 26.1 28.1 29.5 31.1 32.6 34-2 35.9
Ch:.Liieals 2.1 2.3 2.4 2.5 2.7 2.8 2_°
Fcare Parts 9.2 9.9 10.6 11.8 12.7 13.9 14.1
Labor - Production 4.6 5.1 5.2 5.3 5.4 5.5 5.6
- Distribution 7.5 8.3 8.5 8.8 9.0 9.3 9.6
Maintenance - Production 2.7 3.4 3.5 4.4 4.5 4.8 5.5
- Distrihutinn 6.0 7.5 7.9 8.6 9.5 10.2 10.8
Administrative Salaries 0.8 1.0 1.1 1.1 1.2 1.3 1.4
Central Salaries 10.7 11.8 12.0 12.1 12.3 12.3 12.5
Admirir--trative Expenses 23.6 29.2 30.14 31.4 32.5 33.8 314.8
Central Expenses 6.9 8.0 7.9 8.7 9.2 9.6 10.0
Other 1.4 1.7 1.9 2.0 2.2 2.3 2.4
Total 101.6 116.6 120.9 127.8 133.8 140.0 145.5
lncome Derore Depreciation 31.4 31.6 59.4 61.8 66.5 70.2 75.l
c17.9 27-4 07.7 2R 90.2 297 31.14
Tox s l/ .5 - 2.6 3.3 14.4 5.2 12.6
Tncorie 2/ 13.0 4.2 29.1 30.1 32.9 35.3 31.1
tcturri oni Ifet Plant 3/ 2.8% .9% 6.3% 6.6% 7.4% 8.2% 7.14%
1/ Taxes allocated on Income Basis.7/ Zxcludes Interest and "Caducite".
,>/ Income before Interest and ';Caducite:: and after taxes di-vLded by Net Plant i-n service at
start of year excluding extensions paid by Customers.
Fcbruary 18, 1969
Annex 16
CAKMEION
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
QnrIETE NATIONAAT-1 DES Z.UX DUJ GAMT mTIN
Eatimated Sources and A1pp1ications of Funds 1969 - 1975
Year Ending June 30
1969 1970 1971 1972 1973 1974 1975
Sources of Funds (CFA Francs - Millions)
Income before Depreciation,Interest and Taxes 102.6 161.5 409.8 460.9 513.6 569.9 630.9
Non-Operating income 3.0 4.5 4.6 4.9 5-° 5.2 5.6
CCCE Loan for Yaounde Extension 190.0 - - - - - -
Project Loans - CCCE - 372.u 0. - - -2-
IBRD - 1,153.0 82.0 - - - -
Customer Contribution - 69.3 86.0 72.0 76.0 78.0 80.0Increase in Current Liabilities
other than Current Maturities - 11.6 13.4 14.4 15.4 16.4 17.4
Total Sources of Funds 295.6 1,771.9 623.8 552.2 610.0 669.5 733.9
Application of Funds
investment ProgramProject - Fixed Assets - 1,488.3 91.7 - _ _ _
- Interest during ConstructionFor I.B.R.D.'s Loan - 56.7 18.3 - - - -
Prior Program 1/ 190.0 - - - _- -
Distribution Plpes and Connections 2/ - 69.3 86.0 72.0 76.0 78.0 80.0
Buildings 3/ - 61.1 62.4 17.7 15.1 15.5 15.8
Total Program 190.0 1.675.4 258.4 89.7 91.1 93.5 95.8
Available for new Programs - - - 200.0 250.0 300.0 300.0
Debt ServiceInterest on prior loans 8.2 7.2 6.2 5.1 4.1 3.2 2.5
Interest on project loans - CCCE - 7.9 16.8 17.0 16.2 15.1 114.0- IBRD - _ 58.6 80.2 78.3 75.7 72.8
Total Interest 8.2 15.1 81.6 102.3 98.6 94.0 89.3
Amortization on prior loans 30.7 31.0 31.3 30.3 27.9 22.3 19.0Amortization on project loans - CCCE - - - 12.3 25.4 26.5 27.6
- IBRD - - - 19.8 40.8 43.2 45.7
Total Amortization 30.7 31.0 31.3 62.4 94.1 92.0 92.3
T,otal Debt Service 38.9 46.1 112.9 16L.7 192.7 186.0 181.6
Income Taxes 3.2 - 18.0 24.5 33.3 42.4 105.6U- Vidends LW
5.0 5.0
Increase in Current Assets - 60.0 105.0 30.0 30.0 35.0 35.0
Total Application of Funds 232.1 1,701.5 1499.3 513.9 602.1 661.9 723.0
Cash Surplus for Year 63.5 ( 9.6) 124.5 38.3 7.9 7.6 10.9
Cash at Beginning of Year 40.4 103.9 94.3 218.8 257.1 265.0 272.6
Cash at End of Year 103.9 94.3 218.8 257.1 265.0 272.6 283.5
Debt Service Coverage V 2.7 3.6 3.7 2.8 2.7 3.1 3.5
1/ Yaounde Extension7/ Financed by Customers3/ Financed by SNEC4/ Dividends of 5% on Paid-In Capital/ Income before Depreciation, Interest and Taxes divided by Total Debt Service
Annex 17
CAMEROON
mDUALA AND YAOUNDE WATER SUPPLY PROJECT
SOCIETE hAWOWATV2 DES EAT DU? rrvCArMnrU
Estimated Balance sheets 1969-1975
Year Ending June 30
1969 1970 1971 1972 1973 1974 1975
-------------------------- CFA Francs - Millions ---------------------ASSETS
Fixed AssetsPlant in Service
Project - - - 1,580.0 1,580.0 1,580.0 1,580.0Other nF,. I n7l: -n I 09R QQ 1 '42Fct_ 1_~ 1 J<7 R R.'l.. R.Sll.1 1 9.
Total Plant in Service 3,075.0 3,199.3 3,285.3 4,937.3 5,013.3 5,091.3 5,171.3
Less Depreciation ( 735.0) ( 848.4) ( 974.9) (1,102.6) (1,231.8) (1,362.1) (1,494.0)
Net Plant in Service 2,340.0 2,350.9 2,310.4 3,834.7 3,781.5 3,729.2 3,677.3
Other Fixed Assets - l.1 13.5 136.2 151.3 166.8 o82.6
Less Depreciation - C 1.7) C 6.8) ( 15.4) ( 25.4) ( 37.0) ( 50.0)
Net Other -FiJw-d Assets _ g.. 66.t 120.8 1251C.9 0 21.8 132l 6
Work in ProgressProject - 1.,88.3 1,580.o - - - -
Other 55.0 50.0 50.0 5.0 5.0 5.0 5.0
Available ror new Programs - - - 200.0 450.0 750.0 t,O50. 0
Total Work in Progress 55.o 1,538.3 1,630.0 205.0 455.0 755.o 1,055.0
Total Net Fixed Assets 2,395.0 3,898.6 4,007.1 4,160.5 4,362.4 4,614.0 4,864.9
Current AssetsCash 103.9 94.3 218.8 257.1 265.0 272.6 283.5Accou-.ts Reeivable 170.0 220 o 32040 345.o 370.0 400.0 430.0
Inventories 130.0 140.0 145.0 150.0 155.0 160.0 165.0
Total Current Assets 403.9 454.3 683.8 752.1 790.0 832.6 878.5
TOTAL ASSETS 2,798.9 4,352.9 4,690.9 4,912.6 5,152.4 5,446.6 5,743.4
LIABILITISS
wuity i-i. 0 100 0 100l0 iO. n iOl. 100.0
Government Contribution 1,935.0 1,935.0 1,935.0 1,935.0 1,935.0 1,935.0 1,935.0
Customers' Contribution 4oo.o 469.3 555.3 627.3 703.3 781.3 B61.3
Cadclite Reserve - 5.7 5L8.1 91.3 135.3 180.2 225.9
Retained Earnings 31.4 h.8 122.3 276.8 475.3 722.2 968.2
Total Equity 2,466.4 2,514.8 2,760.7 3,030.4 3,348.9 3,718.7 4,090.!
Long-tarn debtGove rnmenb57.9 57.9 57.9 57.9 57.9 57.9 57.9
Loans prior to Project 218.8 187.8 156.5 126.2 98.3 76.0 57.0
Projsect Loans - CCCE - 372.0 400.0 387.7 362.3 335.8 308.2- IERD - 1,153.0 1,235.0 1,215.2 1,174.4 1,131.2 1,085.5
(TLes '-,rent Ma+t,. -4te ( in3 t 31.31 r 62.4) 94.1) ( 92.0) ( 92.3) ( 94.9)
Long-term Debt 245.7 1,739.4 1,787.0 1,692.9 1,600.9 1,508.6 1,413.7
Current LiabilitiesCurrent Payables 4.0 5.0 10.0 15.0 20.0 25.0 30.0
Customer Advances 48.0 60.0 65.5 71.5 78.0 85.0 92.5
Current Maturities 31.0 31.3 62.4 94.1 92.0 92.3 94.9
other 3.8 2.4 5.3 8.7 12.6 17.0 21.9
Total Current Liabilities 6a.B 98.7 143.2 189z3 202.6 719=i 239.3
TOTAL LIABILITIES 2,798.9 4,352.9 4,690.9 4,912.6 5,152.4 5,446.6 5,743.4
Debt as % of Total Capital 1/ 9% 41% 39% 36% 32% 29% 26%
Current Assets to Current Liabilities 4.7 4.6 4.8 4.o 3.9 3.8 3.7
Net Plant in Service 2/
Douala 951 938 898 1,276 1,206 1,151 1,096
Yaounde 611 603 571 1,505 1,424 1,361 1,298
Secondary centers 473 463 453 443 433 423 413
Total 2,035 2,to4 1,922 3,224 3,063 2,935 2,807
1/ Long-term Debt divided by E4uity plus Long-tem rebt
2/ Excluding customers contribution
ANNEX 18Page 1 of 2 pages
CA}IMOON
DOUALA AND YAOUNDE WATER SUPPLY PROJECT
SOCIETE NATIONALE DES EAUX DU CAMEROUN
Assumptions For Financial Forecasts
1. All income and balance sheet forecasts were generally based onprojections developed by SNEC and reviewed at the time of the appraisalmission.
Income Statements
2. Unaccounted-for water is the difference between water producedand water sold.
3. In addition to revenues based on consumDtion. other revenues tocover maintenance of connections and rental and maintenance of meters areincluded. Revenues from meters increase sienificantlv (from CFAF 5. mil-lion in 1970 to CFAF 28.8 in 1975) as meters now owned by customers areprogressively replaced. SNEC's rental and maintenance charae is mlGhhigher than past maintenance charged on customer owned meters. In addi-tion, SNEC collects an installation fee for the new meters. Extensionof distribution systems and new connections are paid by the customers.Returns from those works are estimated at 14% of the total cost to thecustomers; these profits are included in non-operating income.
4. Power costs are based on 1968 price levels with quantities ad-insted to reflect increased or decreased power requiremer.ts. Po-er costincreases slightly in Douala after 1970 to reflect the increased powerrerni-ired to rnim,p increased water thro m> t-e - s+ing tra.mission line.1- 1 -_- C - - UC. -_ f.JA U'a. .L.L.L
At Yaounde, power cost decreases after the completion of the Mefou Damsince the wat-er levrel will be rv-4 sed and less po1e r f ,r ip n-gp in 4 re,,-e-.
5. GChemical cost forecasts are b-sd on 1068 pric-e level's wt- -- .. - - ~L.L ~ S .A.-_.L' --- . ±" "k_ - -'-
quantities adjusted to increased production The costs are similar inDoual _- an-d v.a'o unde. Th.Lese C09tS are netlu of duLtieJK1s as thel duty exem,ptshould be extended to SNEC under the concession agreements.
6. Spare parts and maintenance reflect SNEC's intent to introduceextensiv pentive ,mairntenarce --ain-enan -s irncreased propor'oioatelyto totali ve pvent.V M Lce. fie11a-aL1Lks1seits.i LS O-Lto total fixed assets.
ANNEX 18Page 2 of 2 pages
7. The projections of labor costs are based on nresent staffinglevels. These costs are increased 5% per year to reflect promotionalincreases.
8. Administrnt4ve exynPnses and qAArioq are increased 7% a yr-Total central administrative expenses and salaries are increased 15% ayear to take acrouint of the increasing num.ber of accounts annd newaccounting, billing and collecting systems. Central expenses andsalaries are allor.te tio eaerh cnter on +.he basi Oi f the' Gent'srevenues.
9. Depreciation averages 3.5% of total gross assets. In addition,there isq a Gduie o < ofr all- assetso 4"-+^'1'eA by- CIPr. Ml-- pr4n=… .... ju~~~ -.J - - -- -- - .&J - .J -JfV-. J41 P~A , LJ.&I
ciple of "Caducite" is to recover the investment made by SNEC over thecor.cession eriodA because +`1,4s .-estmen4 -11 f"ir.'"y be turned over to~~ ~~. - W1J. L I U U*&LlU "J...LL1."Ly u
the Government at the end of the concession in good operating condition."Ga^i+e"apples t bot proect orks.d f>Yenew Linves -,en s.~~ ' .. F' A Q U%.J LJJUL *J11 .JJ U '~J U A. %A L'L~JLU. L U U4 LW .J L4IIL 1 u .
10. The balance sheet t UUconider that thu concessions have been signed.The 1969 base balance is estimated but audit would not be expected to change
±1. r~lnt in service is Dasea on the DOOK value oI tne plant carrieaadjusted for cost increases. This new value does not, however, correspondto a replacement value and must be reassessed after complete physical in-ventory. Total plant includes also distribution pipes and connections atcost paid by the customers.
12. Inventories will be transferred to SNEC by the Government but SNECwill not receive past accounts receivable. Accounts receivable are conser-vatively forecast based on past experience: private and industrial accounts -2 months; Government - 8 months. More prompt payment by Government asrequired under the loan covenants would reduce accounts receivable andincrease cash balances.
13. Of total equity, only CFAF 100 million has been paid in by share-holders and will be eligible for dividends of 5%. The balance representsmainly assets contributed by Government and customer contributions withretained earnings increasing over time.
14. SNEC carries all long-term debts contracted by the "Gerances" butnone of the past current liabilities. The various loans are:
1954 - CCCE Loan CFAF 100 million at 3% and 20 years for Douala.1957 - CCCE Loan CFAF 53 million at 3% - 14½ years for Ebolowa.1958 - CCCE Loan CFAF 34 million at 2.5% - 1h½ years for Kribi.1967 - CCCE Loan CFAF 9 million at 5% - 7 years for Nbalmayo.1968 - CCCE Loan CFAF 190 million at 3.5% - 10 years for Yaounde.
Februarv 18, 1969
CCEDERAI REPUBLOC -t I L. OP L.r% PI Ji. %1Nr.U . A
OF CAMEROONFORT-tAMY
|RAILWAYS MAIDUGRI_,=.&
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FEbRUARlY 1'3tY 3.240
MIE ROI O N
DOUALA AND YAOLJNDE WAT ER SUPPLY F'ROJECT-/ D)OUALA
EXISLING PROJEC: I.EGE NO
~~~~ it OL…P~~~~~~~~~~~~- -- --.- ESERVOIR65, NU~~~~~/.MIN
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RESERVOIRS 5000O. Nk BRoosER T-. EXC ST NG SURGE TDAERS ( ~?
INDUSTRIAL AREA TREATIENT PLANT
SCALE10 5 0 I 3En
FEBRUARY 196Q IORD 2L62R
CAME R OO N
DCiUALA AND YAOUNDE |
/ (s \ MESSA FACILITIES f 4>l X I / ~~~~WA rER SrUPPL_Y PRtOJEC,TMESSA ACIITIES
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FEBRIIJARY 19;69 IBRD 24,61R